Zimmer Biomet Holdings, Inc. (NYSE:ZBH) Q1 2015 Earnings Conference Call - Final Transcript

Apr 30, 2015 • 08:00 am ET


Zimmer Biomet Holdings, Inc. (NYSE:ZBH) Q1 2015 Earnings Conference Call - Final Transcript


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Good morning. I would like to turn the call over to Bob Marshall, Vice President, Investor Relations and Treasurer. Mr. Marshall, you may begin your call.

Robert J. Marshall

Thank you Julie. Good morning and welcome to Zimmer's first quarter 2015 earnings conference call. I'm here with our CEO, David Dvorak; and our CFO, Jim Crines. As a reminder, our earnings release and related financial information is available on our investor relations website at investor.zimmer.com. A replay of this call will also be made available on our website.

Before we start, I would like to remind you that our discussions during this call will include forward-looking statements. Actual results may differ materially from those indicated by forward-looking statements due to a variety of risks and uncertainties. Please refer to our SEC filings for a detailed discussion of these risks and uncertainties.

Also, the discussions during this call will include certain non-GAAP financial measures. Reconciliations of these measures to the most directly comparable GAAP financial measures are included in financial materials we have posted to our website.

Additionally, all sales variances will be stated on a constant currency day-rate growth basis. The results in the company's earnings release this morning reflect constant currency growth rate including the extra billing days in the first quarter of 2015 that resulted from the change in our interim quarter-end closing convention for the majority of our international reporting unit from March 25 to March 31 as referenced on our previous earnings call.

With that, I'll now turn the call over to David Dvorak. David?

David C. Dvorak

Thank you, Bob; and good morning, everyone. Before I review our first quarter financial results, I'd like to take a few moments to share our vision for the future of Zimmer Biomet. I'll then discuss our first quarter performance and Jim will provide further financial details. As Bob has just noted, I'll state all sales variances on a constant currency day-rate basis and all earnings results on an adjusted basis.

During the first quarter we were pleased to announce that the European Commission and the Japan Fair Trade Commission granted clearance of Zimmer's planned combination with Biomet. We now expect to close the transaction during the month of May as we work towards clearance from the US Federal Trade Commission.

If we've communicated previously the rationale behind this merger has always been about enhanced scale and the opportunity to accelerate the pace of innovation across our musculoskeletal portfolio. We think that in the wake of this historic combination we'll be well-positioned to capitalize on future growth opportunities.

Zimmer Biomet's comprehensive and diversified portfolio of musculoskeletal conditions will offer more scalable and predictable revenues, as well as immediate cross-selling opportunities. Our enhanced scale and broadened product portfolio will also enable us to enter exciting new product categories such as sports medicine, as well as continuing to expand our participation in key emerging markets around the globe.

There are also a number of financial and operational synergies connected with this transaction that are highly consistent with Zimmer's