NuVasive, Inc. (NASDAQ:NUVA) Q4 2017 Earnings Conference Call - Final Transcript

Feb 26, 2018 • 04:30 pm ET


NuVasive, Inc. (NASDAQ:NUVA) Q4 2017 Earnings Conference Call - Final Transcript


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Greetings and welcome to the NuVasive, Inc. Fourth Quarter Full Year 2017 Conference Call. At this time, all participants are in a listen-only mode. A brief question-and-answer session will follow the formal presentation. (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. Thank you. You may begin.

Carol A. Cox

Thank you, Varen (ph) , and welcome to everyone to NuVasive's Fourth Quarter and Full Year 2017 Earnings Call. The Company's earnings release, which we issued earlier this afternoon is posted on our website and there 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 our discussion.

For today's 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 today, I would like to remind you 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 SEC. 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.

Reconciliation 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.

With that, I'd like to turn the call over to our Chairman and CEO, Greg Lucier.

Gregory T. Lucier

Thank you, Carol, and good afternoon, everyone. Earlier today, we reported fourth quarter and full-year 2017 results in-line with the preliminary results we announced in January. On today's call, I will provide an overview of our full year 2017 results and a high-level commentary regarding outlook for 2018. Then, Raj will give a detailed review of our fourth quarter 2017 performance and provide detailed guidance for 2018.

In 2017, our global revenue grew 7% on a reported and constant-currency basis to $1.30 billion. On a pro forma basis, revenue grew approximately 3.5%. These results were primarily driven by international sales growth in excess of 20% across key regions, strength in our US hardware business and strategic and tuck-in acquisitions. Internationally, we continue to see success with our strategy