Last week we shared some pretty fiery correspondence that was made public by ConMed shareholder Voce Capital. Ten days later we see a response from ConMed, which has been filed with the SEC as part of the company’s fiduciary duty. Find the response here.
Voce Capital Management’s J. Daniel Plants cited a number of beefs in its poison pen letter to the board of ConMed last week. Find that piece here. The main issue was the perceived subjugation exercised over the company by one family, the Corasantis. Perhaps unsurprisingly the filed response makes no mention of that issue, nor the suggestion that it should be looking for a sale of the company. Instead it focuses on the positive aspects of its performance, namely cash generated from operating activities of $251.8 million from January 2011 through September 2013, a 12.3% return on sales for the period. It also points out that ConMed has increased adjusted earnings per share 30% in 2010, 15% in 2011 and 20% in 2012, expanded adjusted EBITDA margins 410 basis points in the three years ended December 2012 and reduced overhead costs by consolidating 4 factories and by employing lean manufacturing practices.
In terms of what they’ve done for shareholders, the letter points to ConMed’s delivery of 2%+ cash dividend yield share repurchases of over $63 million during the last three years. Including the cash dividend, total shareholder return for the ten-month period ending October 31, 2013 was 31.9%, according to letter author Mark E. Tryniski, a lead independent director.
Source: US Securities and Exchange Commission