NuVasive, Inc. (NASDAQ:NUVA) Q2 2017 Earnings Conference Call - Preliminary Transcript

Jul 27, 2017 • 04:30 pm ET


NuVasive, Inc. (NASDAQ:NUVA) Q2 2017 Earnings Conference Call - Preliminary Transcript


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Greetings, and welcome to the NuVasive, Inc. Second Quarter 2017 Conference Call. (Operator Instructions) As a reminder, this conference is being recorded. I would now like to turn the conference over to your host, Carol Cox, Executive Vice President, External Affairs, and Corporate Marketing. Thank you, Carol. You may begin.

Carol Cox

Great. Thank you, Kevin, and welcome to NuVasive's second quarter 2017 earnings call. The company's earnings release, which we issued earlier this afternoon, is posted on our website as is an Investor presentation, both of which have been filed on Form 8-K with the Securities and Exchange Commission. We've also posted 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 may follow along.

Before we begin, I would like to remind you that the discussions during today's call will include forward-looking statements, which are based on current expectations and involve risks and uncertainties, assumptions and other factors which, if they do not materialize or prove to be correct, could cause NuVasive's results to differ materially from those expressed or implied by such forward-looking statements. Additional risks and uncertainties may affect future results as described in our news releases and periodic filings with the Securities and Exchange Commission. NuVasive assumes no obligation to update any forward-looking statements or information, which speak as of their respective dates.

This call will also include a discussion of several financial measures that are not calculated in accordance with Generally Accepted Accounting Principles, or GAAP. We generally refer to these as non-GAAP financial measures. These measures include our cost of goods sold, gross margin, sales, marketing and administrative expenses, research and development expenses, operating margin, non-GAAP earnings per share, free cash flow and EBITDA.

Reconciliations to the most directly comparable GAAP financial measures may be found in today's news release and in the supplementary financial information, both of which are accessible from the Investor Relations section of NuVasive's website.

Joining me on today's call are Greg Lucier, our Chairman and Chief Executive Officer; and Quentin Blackford, our CFO.

Greg Lucier

Thank you, Carol and good afternoon, everyone. Today, we are in Dayton, Ohio, hosting our quarterly Board of Directors meeting and celebratory opening of our state-of-the-art 180,000 square-foot facility with local officials who are essential in our decision to further build out our capabilities in the Dayton area. These officials, along with our board, received an overview of our newly installed equipment, digital capabilities and learned more about the training programs we are implementing to ensure we have the advanced manufacturing skillsets required to produce ever-more sophisticated designs with novel materials. I'm proud of our operations, engineering, R&D and HR teams who have collaborated over the last 18 months to bring this project to life in record time.

Before I cover the results of the quarter, I would like to say a few words about the organizational updates we just announced.