Halyard Health, Inc. (NYSE:HYH) Q1 2015 Earnings Conference Call - Final Transcript

May 04, 2015 • 09:00 am ET


Halyard Health, Inc. (NYSE:HYH) Q1 2015 Earnings Conference Call - Final Transcript


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Good morning and welcome to the Halyard Health First Quarter 2018 Earnings Conference Call. All participants will be in listen-only mode. (Operator Instructions) Please note this event is being recorded.

I would now like to turn the conference over to Dave Crawford, Vice President, Treasurer and Investor Relations. Please go ahead.

Dave Crawford

Good morning, everyone, and thanks for joining us. It's my pleasure to welcome you to the Halyard Health first quarter earnings conference call. With me this morning are Joe Woody, CEO; and Steve Voskuil, Senior Vice President and CFO.

Joe will begin with a brief review of our financial performance and provide an outlook for business and progress toward our 2018 priorities. Then Steve will review our results and offer additional detail on our financial performance and earnings outlook for 2018. We'll finish the call with Q&A. A presentation for today's call is available on the Investors section of our website, halyardhealth.com.

As a reminder, our comments today contain forward-looking statements related to the Company, our expected performance, economic conditions, and our industry. No assurance can be given as to future financial results. Actual results could differ materially from those in forward-looking statements. For more information about forward-looking statements and the risk factors that could influence future results, please see today's press release and our prior filings with the SEC.

Additionally, we will be referring to adjusted results and outlook; both exclude certain items described in this morning's press release. The press release has further information on these adjustments and reconciliations to comparable GAAP financial measures.

Now, I'll turn the call over to Joe.

Joe Woody

Thanks, Dave. Good morning, everyone, and thank you for your interest in Halyard Health.

Let me begin by saying that we are off to a strong start to the year as we continue our sales execution and top-line momentum, delivered another quarter of solid earnings, closed the S&IP divestiture, and began reshaping our cost structure with initiating the installation of our new IT system. We are in an excellent position to continue to deliver on our four goals for 2018 that I outlined on last quarter's conference call.

First, we've seen continued top-line momentum with 6% organic sales growth for the quarter. And as a more focused company, we're well-positioned to continue to enhance our commercial execution. Multiple factors drove growth, including continued double-digit demand for COOLIEF and interventional pain. Solid demand for our CORPAK portfolio continued to drive digestive health sales. And last year's oral care contract, along with a more severe cold and flu season, drove growth in respiratory health.

In surgical pain, two factors impacted ON-Q pump volume for the quarter. First, the industry-wide bupivacaine shortage, which is expected to continue through the second quarter; second, a key pump fellow's inability to fill pumps due to the findings from their FDA audit. Despite these headwinds, our outlook remains positive as we continue to convert new accounts and deepen surgical penetration with our increased sales focus on educating surgeons. Our outreach highlights the efficacy