NuVasive, Inc. (NASDAQ:NUVA) Q3 2017 Earnings Conference Call - Final Transcript

Oct 24, 2017 • 04:30 pm ET


NuVasive, Inc. (NASDAQ:NUVA) Q3 2017 Earnings Conference Call - Final Transcript


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Greetings, and welcome to the NuVasive, Inc. Third Quarter 2017 Conference Call. [Operator Instructions]

I would now like to turn the conference over to your host, Carol Cox, Executive Vice President, External Affairs. Thank you. You may begin.

Carol Cox

Thank you, Damien, and welcome everyone to NuVasive's third quarter 2017 earnings call. The Company's earnings release, which we issued earlier this afternoon, is now posted on our website as is Investor presentation, both of which have been filed on Form 8-K and with the Securities and Exchange Commission. We've also posted supplemental financial information on the Investor Relations website to accompany our discussion today. On the call, we will be covering information that is included in the Investor presentation, and I encourage you to access these material 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 that may affect future results are described in NuVasive's 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 the supplementary financial information, which are accessible from the Investor Relations section of the NuVasive website. Joining me on today's call are Greg Lucier, our Chairman and Chief Executive Officer; and Raj Asarpota, our Chief Financial Officer.

With that, I would like to turn the call over to Greg.

Greg Lucier

Thank you, Carol and good afternoon, everyone. On today's call, we will be covering our results for the third quarter, providing an update to our 2017 guidance and providing some initial thoughts on 2018. I want to welcome Raj to his first earnings call with NuVasive as our Chief Financial Officer. He brings over 25 years of experience and a proven track record of driving operational improvements and supporting market expansion at medical device and life sciences companies. I am pleased to have his skills and guidance on our leadership.

Now earlier this afternoon, we reported third quarter results including revenue of $247.4 million, representing year-over-year growth of approximately 3% on an organic basis. We also reported non-GAAP operating profit margin of 17.6%, a 150 basis points increase over prior year and non-GAAP earnings per share of