CONMED Corporation (NYSE:CNMD) Q4 2022 Earnings Call Transcript

Operator: And one moment for our next question. And our next question comes from Matthew Mishan from KeyBanc. Your line is now open.

Matthew Mishan: Hey, guys. Thank you for taking the questions guys. Most of mine have been asked and answered probably several times at this point. So I’ll just go with this one, I think you guys said the overall environment has more stability. I think that’s the first time I’ve heard you guys like say something like that probably in several years. Could you just expand on kind of what you’re seeing in the overall environment that you’re seeing and that’s given you the opportunity to kind of, to feel better about the overall macro?

Curt Hartman: I think there’s a couple of answers to that question, Matt. I start on the commercial side, it’s both factual and anecdotal, how our selling organizations feeling about the marketplace procedure volumes they’re seeing, they’re participating in. How are the data around procedure trends and surgical staff and hospital staff levels moving. And all the data that I’ve seen on that would show net adds to those elements. And then there’s just calm conversations that the entirety of the executive team has with health system administration and folks that operate at a different level within the health delivery network. And all of those conversations are lining up to show that the fourth quarter showed improvement and we’re coming into the New Year with those things stable to moving in a more positive direction.

The other side of this is what Todd was talking about is more in the manufacturing environment. We are not back to normal, I don’t want to imply that, but there is more in the manufacturing environment and supply chain, notwithstanding some of the issues that are going on in China. But I think the basics of supply are returning slowly to normal. I want to be careful here, there are certain electronic components that are still under a constrained approach. And if you have older electronics under a more constrained approach, because everybody’s moving towards new electronics. And I think you’ve heard that from several people, but there is a more sense of normality there as well. So on both sides of the business, we feel like things are stable to improving, notwithstanding a few outliers.

Not — the world is not perfect, but it’s not getting worse and it shows signs and is moving in a more favorable direction.

Matthew Mishan: Okay. Excellent and then last — go ahead. Sorry, Todd.

Todd Garner: You’ll appreciate this, Matt. I was going to say it’s the first time we’ve said it in three years because it’s the first time it’s been true in three years.

Matthew Mishan: I think, that’s pretty fair too. And just last one for me, just I know a lot of you’re going at the AOS in March. You got two new acquisitions on the ortho side. Like anything you want to kind of preview or kind of highlight that you’ll be showing or showcases with those acquisitions?

Todd Garner: That’s a great question. We will have one physical booth presence this year that will be inclusive of the In2Bones organization, as well as the Biorez as part of CONMEDs orthopedic business and the bio braced technology. And we will do our normal surgeon presentation in the booth and we haven’t formally published that schedule yet, so I don’t want to get ahead of the organization. But suspect we’ll have sessions that focus on foot and ankle and bio brace from leading surgeons. And we’re super excited about that agenda. We’re super excited about having both of those as part of the offering. And then you should assume that the core of CONMED’s orthopedics business will — we’ll also be highlighting newer products in the portfolio.