NuVasive, Inc. (NASDAQ:NUVA) Q1 2019 Earnings Conference Call - Final Transcript

May 01, 2019 • 04:30 pm ET


NuVasive, Inc. (NASDAQ:NUVA) Q1 2019 Earnings Conference Call - Final Transcript


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Greetings and welcome to the NuVasive First Quarter 2019 Earnings 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, Suzanne Hatcher, Vice President Internal and External Affairs. Thank you. You may now begin.

Suzanne Hatcher

Thank you, Rob. Welcome to NuVasive First Quarter 2019 Earnings Call. The company's earnings release which we issued earlier this afternoon is posted on our website and has been filed on Form 8-K with the Securities and Exchange Commission. We have also posted supplemental financial information on the IR website to accompany our discussion.

Before we begin, I'd 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 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 margins, 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 NuVasive's website.

Joining me on today's call are Chris Barry Chief Executive Officer; Raj Asarpota Chief Financial Officer; and Matt Link, President.

With that I'd now like to turn the call over to Chris.

Chris Barry

Thank you Suzanne. Earlier this afternoon, we reported first quarter 2019 revenue results of $274.8 million representing 5.5% reported growth or 6.4% constant currency growth over prior year. These results were attributable to a solid performance from U.S. Spinal Hardware, improved billings and collections within NuVasive Clinical Services or NCS business and our double-digit year-over-year growth in the international business. Overall, I'm pleased with the start of the year.

Now, let me elaborate on first quarter revenue results. U. S. Spinal Hardware revenue increased 4.5% year-over-year. In particular we saw a healthy uptick in our XLIF and ALIF franchises from the momentum gained in a lateral single-position Surgery solution now branded as the X360 System. With this growing demand the clinical and professional development team has increased the velocity of training to meet surgeon demand and accelerate the adoption of this procedure to continue driving minimally invasive surgery. New product introductions from