Zimmer Biomet Holdings, Inc. (NYSE:ZBH) Q3 2019 Earnings Conference Call - Final Transcript

Nov 05, 2019 • 08:30 am ET


Zimmer Biomet Holdings, Inc. (NYSE:ZBH) Q3 2019 Earnings Conference Call - Final Transcript


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Good morning, ladies and gentlemen, and welcome to the Zimmer Biomet Third Quarter 2019 Earnings Conference Call. [Operator Instructions] I would now like to turn the conference over to Cole Lannum, Senior Vice President, Investor Relations and IRO. Please go ahead, sir.

Coleman N. Lannum

Thank you, operator, and good morning everyone. Welcome to the Tuesday Morning edition of Zimmer Biomet's third quarter earnings conference call. I'm joined by Bryan Hanson and Suketu Upadhyay. Before we get started, I'd like to remind you that our comments during this call will include forward-looking statements. Actual results may differ materially from those indicated by forward-looking statements due to a variety of risks and uncertainties. Please note that we assume no obligation to update these forward-looking statements even if actual results or future expectations change materially.

Please refer to our SEC filings for a detailed discussion of these risks and uncertainties in addition to the inherent limitations of such forward-looking statements. Also, the discussion on this call will include certain non-GAAP financial measures. Reconciliation of these measures to the most directly comparable GAAP financial measures is included within the earnings release found in our website at zimmerbiomet.com.

With that, I'll now turn over the call to Bryan. Bryan?

Bryan C. Hanson

All right. Thanks, Cole, and I want to say again, thanks for joining the call today. We delivered, as probably everyone has seen already with the press release, pretty strong quarter for Zimmer Biomet in the third quarter with better-than-expected revenue growth, driven by improved performance across all of our geographies and across all of our businesses. Our team remains focused and engaged in our key priorities and we continue to make progress in each of these critical areas. Although there is clearly still much to be accomplished, I'm pleased with the team's momentum thus far.

In terms of supply, we have been able to meet customer demand and improve service levels, which further enhances the confidence of our sales teams around the world, putting them back on the offense. We still have plenty of opportunity to decrease the complexity and increase the efficiency of our supply chain. But again, to give the team credit, I'm happy with the progress thus far. Our quality remediation efforts at the Warsaw North Campus remain on track. We continue to keep the FDA updated on our progress and are highly confident in our path to full remediation.

To instill further confidence in our progress, we have engaged independent third parties to conduct comprehensive mock-audits of our remediation work and the feedback has been positive. Additionally, we are seeing the benefits of our global roll out of the Quality Begins With Me Program, which is focused on driving a solid and sustainable quality culture. This program supports an environment of empowerment and accountability for all of our manufacturing team members ensuring that every individual feels personal ownership of the quality process.

Progress we are making in quality remediation is also would then free up engineering time and allow many of these R&D team