Selected Quarterly Financial Data (Unaudited)

Selected quarterly financial data for 2014 and 2013 are as follows:



	Three Months Ended
	March		June		September		December
2014
Net sales	$	181,941	$	188,150	$	174,961	$	195,003
Gross profit	102,582		101,028		96,414		104,033
Net income	8,626		10,255		1,972		11,339
EPS:
Basic	.32		.38		.07		.41
Diluted	.31		.37		.07		.41



	Three Months Ended
	March		June		September		December
2013
Net sales	$	187,014	$	192,993	$	179,255	$	203,442
Gross profit	102,682		102,916		95,424		111,395
Net income	10,492		9,533		5,687		10,227
EPS:
Basic	.37		.35		.21		.37
Diluted	.37		.34		.20		.36

Items Included In Selected Quarterly Financial Data:

2014

First Quarter

During the first quarter of 2014, we incurred $0.9 million in costs associated with the moving of additional product lines to our manufacturing facility in Chihuahua, Mexico; consolidation of our Finland operations into our Largo, Florida and Utica, New York manufacturing facilities; consolidation of our Westborough, Massachusetts operations into our Largo, Florida and Chihuahua, Mexico manufacturing facilities and the consolidation of our Centennial, Colorado manufacturing operations into other existing CONMED manufacturing facilities. These costs were charged to cost of sales – see Note 15.

During the first quarter of 2014, we recorded a charge of $0.7 million to other expense related to consolidating certain administrative functions - see Note 11 and Note 15.

During the first quarter of 2014, we recorded a charge of $1.9 million to other expense related to legal costs associated with a patent infringement claim that we settled, including $0.9 million in settlement costs - see Note 10 and Note 11.

During the first quarter of 2014, we recorded a charge of $0.6 million to other expense related to consulting and legal costs associated with shareholder activism - see Note 11.

In New York State, corporate tax reform enacted in March 2014 changed the tax rate of a manufacturing company such as CONMED to essentially 0%. Previously recorded New York State net deferred tax assets of $2.3 million have been written off as a non-cash charge to income tax expense - see Note 6.

Second Quarter

During the second quarter of 2014, we incurred $1.4 million in costs associated with the moving of additional product lines to our manufacturing facility in Chihuahua, Mexico and the consolidation of our Centennial, Colorado manufacturing operations into other existing CONMED manufacturing facilities. These costs were charged to cost of sales – see Note 15.

During the second quarter of 2014, we recorded a charge of $0.5 million to other expense related to consolidating certain administrative functions - see Note 11 and Note 15.

During the second quarter of 2014, we recorded a charge of $1.4 million to other expense related to a legal matter in which we prevailed at trial and consulting fees - see Note 11.

During the second quarter of 2014, we recorded a charge of $0.9 million to other expense related to consulting and legal costs associated with shareholder activism - see Note 11.

Third Quarter

During the third quarter of 2014, we incurred $1.4 million in costs associated with the moving of additional product lines to our manufacturing facility in Chihuahua, Mexico and the consolidation of our Centennial, Colorado manufacturing operations into other existing CONMED manufacturing facilities. These costs were charged to cost of sales – see Note 15.

During the third quarter of 2014, we recorded a charge of $0.6 million to other expense related to consolidating certain administrative functions - see Note 11 and Note 15.

During the third quarter of 2014, we recorded a charge of $2.4 million to other expense related to consulting and legal costs associated with shareholder activism - see Note 11.

During the third quarter of 2014, we recorded a charge of $11.0 million to other expense related to costs associated with restructuring of executive management. These costs include severance payments, accelerated vesting of stock-based compensation awards, accrual of the present value of deferred compensation and other benefits to our then Chief Executive Officer as defined in his termination agreement; accelerated vesting of stock-based compensation awards to certain members of executive management and other benefits earned - see Note 11.

During the third quarter of 2014, we recorded a charge of $0.3 million to other expense associated with the purchase of EndoDynamix, Inc. - see Note 11 and Note 16.

Fourth Quarter

During the fourth quarter of 2014, we incurred $1.9 million in costs associated with the moving of additional product lines to our manufacturing facility in Chihuahua, Mexico and the consolidation of our Centennial, Colorado manufacturing operations into other existing CONMED manufacturing facilities. These costs were charged to cost of sales – see Note 15.

During the fourth quarter of 2014, we recorded a charge of $1.5 million to other expense related to consolidating certain administrative functions - see Note 11 and Note 15.

During the fourth quarter of 2014, we recorded a charge of $0.1 million to other expense related to legal costs - see Note 11.

During the fourth quarter of 2014, we recorded a charge of $1.5 million to other expense related to costs associated with restructuring of executive management. These costs include accelerated vesting of stock-based compensation awards to certain members of executive management, consulting fees and other benefits earned - see Note 11.

During the fourth quarter of 2014, we recorded a charge of $0.3 million to other expense associated with the purchase of EndoDynamix, Inc. - see Note 11 and Note 16.

2013

First Quarter

During the first quarter of 2013, we incurred $1.6 million in costs associated with the moving of additional product lines to our manufacturing facility in Chihuahua, Mexico; consolidation of our Finland operations into our Largo, Florida and Utica, New York manufacturing facilities and consolidation of our Westborough, Massachusetts operations into our Largo, Florida and Chihuahua, Mexico manufacturing facilities. These costs were charged to cost of sales – see Note 15.

During the first quarter of 2013, we recorded a charge of $1.6 million to other expense related to consolidating certain administrative functions - see Note 11 and Note 15.

During the first quarter of 2013, we recorded a charge of $0.2 million to other expense related to legal costs associated with a patent infringement claim - see Note 10 and Note 11.

During the first quarter of 2013, we recorded a $0.3 million loss on the early extinguishment of debt related to write-off of unamortized deferred financing costs under the then existing senior credit agreement - see Note 5.

Second Quarter

During the second quarter of 2013, we incurred $1.6 million in costs associated with the moving of additional product lines to our manufacturing facility in Chihuahua, Mexico; consolidation of our Finland operations into our Largo, Florida and Utica, New York manufacturing facilities and consolidation of our Westborough, Massachusetts operations into our Largo, Florida and Chihuahua, Mexico manufacturing facilities. These costs were charged to cost of sales – see Note 15.

During the second quarter of 2013, we recorded a charge of $1.6 million to other expense related to consolidating certain administrative functions - see Note 11 and Note 15.

During the second quarter of 2013, we recorded a charge of $0.5 million to other expense related to legal costs associated with a patent infringement claim - see Note 10 and Note 11.

Third Quarter

During the third quarter of 2013, we incurred $1.1 million in costs associated with the moving of additional product lines to our manufacturing facility in Chihuahua, Mexico; consolidation of our Finland operations into our Largo, Florida and Utica, New York manufacturing facilities and consolidation of our Westborough, Massachusetts operations into our Largo, Florida and Chihuahua, Mexico manufacturing facilities. These costs were charged to cost of sales – see Note 15.

During the third quarter of 2013, the Company discontinued a patient monitoring product offering and incurred $2.1 million in costs which were charged to cost of sales - see Note 15.

During the third quarter of 2013, we recorded a charge of $3.1 million to other expense related to consolidating certain administrative functions - see Note 11 and Note 15.

During the third quarter of 2013, we recorded a charge of $1.5 million to other expense related to legal costs associated with a patent infringement claim - see Note 10 and Note 11.

Fourth Quarter

During the fourth quarter of 2013, we incurred $2.1 million in costs associated with the moving of additional product lines to our manufacturing facility in Chihuahua, Mexico; consolidation of our Finland operations into our Largo, Florida and Utica, New York manufacturing facilities and consolidation of our Westborough, Massachusetts operations into our Largo, Florida and Chihuahua, Mexico manufacturing facilities. These costs were charged to cost of sales – see Note 15.

During the fourth quarter of 2013, we recorded a charge of $2.4 million to other expense related to consolidating certain administrative functions - see Note 11 and Note 15.

During the fourth quarter of 2013, we recorded a charge of $1.0 million to other expense related to legal costs associated with a patent infringement claim - see Note 10 and Note 11.

During the fourth quarter of 2013, we recorded a $1.4 million pension settlement expense to other expense - See Note 9 and Note 11.