NuVasive, Inc. (NASDAQ:NUVA) Q4 2016 Earnings Conference Call - Final Transcript

Feb 09, 2017 • 04:30 pm ET


NuVasive, Inc. (NASDAQ:NUVA) Q4 2016 Earnings Conference Call - Final Transcript


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Greetings, and welcome to the NuVasive, Inc. Fourth Quarter and Full Year 2016 Conference Call. (Operator Instructions) As a reminder, this conference is being recorded.

I'd like to turn the conference over to your host, Carol Cox, Executive Vice President, External Affairs and Corporate Marketing. Thank you, you may begin.

Carol Cox

Great. Thank you, Matt, and welcome, everyone, to NuVasive's fourth quarter and full year 2016 earnings call. Today, we've issued our earnings release, which we issued early this afternoon. It's posted on our website in our Investor Relations section along with a presentation, and as well as we've filed our Form 8-K with the SEC. We've also posted our supplemental financial information on the IR website to accompany today's discussion.

On the call, we will be covering information that is included in the investor presentation, and I encourage you to access these materials so that you can follow along. (Forward-Looking Cautionary Statements)

Joining me on today's call are Greg Lucier, our Chairman and Chief Executive Officer; Jason Hannon, our President and Chief Operating Officer; and Quentin Blackford, our Chief Financial Officer.

With that, I'll turn the call over to Greg.

Greg Lucier

Thank you, Carol, and good afternoon, everyone. By all measurements, 2016 was another dynamic year for NuVasive. Our talented global team executed on our strategy to launch game-changing products and systems, expand into new markets and geographies, drive operational efficiencies throughout the business and improve our capital structure to support long-term growth.

We are extremely pleased to report the fourth quarter and full year 2016 results that exceeded our expectations. On today's call, I will provide an overview of our results for the full year 2016 and share some color on Q4 revenue drivers. And then Quentin's going to review our fourth quarter 2016 performance in more detail and provide our 2017 guidance expectations.

Our revenue performance for 2016 delivered growth at multiples of the market and reflected strength across our business and geographies, ending the year at $962.1 million, representing year-over-year growth of approximately 18.6% on an as-reported basis. On an organic basis, our revenue grew 8 -- approximately 8%. Throughout the year, we saw strong acceptance of our Integrated Global Alignment platform, or iGA, across core product areas, including our ReLine posterior fixation system, ALIF, Bendini and integrated operative solutions.

In particular, the adoption of ReLine within iGA is leading to greater penetration in the deformity market. Results were also driven by the integration of MAGEC for early onset scoliosis and PRECICE technology for limb lengthening, both acquired with Ellipse technologies in February 2016 and are now part of NuVasive Specialized Orthopedics or NSO.

In the U.S., revenue growth in the fourth quarter of 2016 continued to reflect strong procedural volume and another sequential increase in revenue coming from new surgeon conversions, where our strategy to focus on bringing new surgeons into the NuVasive family is really taking hold and contributing to results.

Additionally, we are very pleased with the pull-through we are seeing in our NuVasive Clinical Services