Greatbatch, Inc. (NYSE:GB) Q4 2015 Earnings Conference Call - Final Transcript
Feb 29, 2016 • 05:00 pm ET
Welcome everyone to the Fourth Quarter 2015 Greatbatch Incorporated Conference Call. Before we begin, I would like to read the Safe Harbor statement. This presentation and our press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and involves a number of risks and uncertainties. These risks and uncertainties are described in the company's annual report on Form 10-K. The statements are based on Greatbatch Incorporated's current expectations and actual results could differ materially from those stated or implied. The company assumes the obligations to update forward-looking information, included in this conference call to reflect change assumptions, the occurrence of unanticipated events or changes in future operating results, financial conditions or prospects.
I would now like to turn the call over to today's host, Vice President, Business Development and Director of Investor Relations, Tony Borowicz.
Thank you, Karen and hello everyone and thank you for joining us today on our fourth quarter 2015 earnings call. With us on the call today are Thomas J. Hook, our President and Chief Executive Officer and Michael Dinkins, Executive Vice President and Chief Financial Officer. As we have done in the past, you can go to our website and see our slide visuals that will accompany this presentation, and afterwards these will be on our website at greatbatch.com for future viewing. Once Tom and Michael have completed their presentations, we will then open up the call for Q&A. Note that both Michael and I are available to take questions following this call. You can reach me on my mobile afterwards.
So, let me turn the call over to Tom Hook.
Thanks, Tony. Starting on Slide 5, 2015 marks the completion of several key strategic milestones. At the top of the list was the completion of the transformative acquisition of Lake Region Medical. The acquisition is highly complementary with few overlapping products between the company and was strategic for many reasons. First, it expands our full medical device capabilities by expanding our product offerings in vascular and orthopedics. It also expands our reach into the advanced surgical market with a portfolio of minimally invasive devices used in laparoscopic and drug delivery applications. Second, the acquisition has significantly expanded our global manufacturing footprint. This increased scope and scale presented tremendous opportunity to leverage the expertise of both companies. Third, we have a much broader and diversified revenue base which will provide a greater opportunity to extend our partnerships with our OEM customers. And then fourth, the medical device market is growing approximately 4% annually with many sub-sectors expanding at an accelerated pace. Our OEM customers have had to minimize supply chain and regulatory risk by focusing their supplier base of higher quality partners. And additionally, clinical market pressure is driving OEMs to reduce costs which drive outsourcing demand.
The second major milestone was obtaining an original FDA PMA approval for our Algovita spinal cord stimulation device. This represents the culmination of 7 years of dedicated effort by the QiG Group