RTI Surgical Inc. (NASDAQ:RTIX) Q4 2019 Earnings Conference Call - Final Transcript

Jan 14, 2020 • 08:30 am ET


RTI Surgical Inc. (NASDAQ:RTIX) Q4 2019 Earnings Conference Call - Final Transcript


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Good morning, ladies and gentlemen, and welcome to the RTI Surgical Holdings Conference Call. [Operator Instructions] I would now like to turn the call over to our host Mr. Jon Singer. Please go ahead.

Jonathon M. Singer

Good morning, and thank you for joining the call to discuss the sale of RTI's OEM business and the Company's preliminary fourth quarter and full-year 2019 revenues. I am Jon Singer, RTI's Chief Financial and Administrative Officer, and I'm joined by Camille Farhat, our President and Chief Executive Officer.

After our prepared comments, Camille and I will be available to take questions. Before we start, let me make the following disclosure and it's long. The matters we will be discussing on this conference call will involve statements that are forward looking. These statements are based on our management's current expectations, but they are subject to various risks and uncertainties associated with our lines of business and with the economic environment in general. Except for historical information, any statements made on this call about anticipated financial results, the implementation of RTI's strategic initiatives, the potential financial impact of the transaction, shareholder and regulatory approvals, satisfaction of the closing conditions, and the completion of the transaction also are forward-looking statements.

These statements are not guarantees of future performance and are subject to risks and uncertainties. Our actual results may vary from our statements concerning our expectations about future events that are made during this call. We make no guarantees as to the accuracy of these statements. Accordingly, we urge you to consider all information about the Company and not to place undue reliance on these forward-looking statements.

In addition, during the call, we may also present certain financial information on a non-GAAP basis. Management believes that non-GAAP financial measures taken in conjunction with U.S. GAAP financial measures provide useful information for both management and investors by excluding certain non-cash and other expenses that are not indicative of our core operating results. Management uses non-GAAP measures to compare our performance relative to forecast and strategic plans to benchmark our performance externally against competitors and for certain compensation decisions.

Reconciliations between U.S. GAAP and non-GAAP results are presented in tables in our financial statements filed with the SEC, which can be found in the Investor Relations sections of our website. Now, I will turn the call over to Camille. Please continue.

Camille I. Farhat

Thank you, Jon, and good morning, everyone. We are nearly three years into a strategic transformation for RTI and in that time, we have reduced the complexity of the Company to focus on OEM and Spine. We have driven operational excellence across our manufacturing sites and successfully monetized $25 million in costs from our operations. We have also rebuilt top leadership roles in both the customer-centric and growth-oriented culture. And when you look at the OEM business, the team has returned this business to growth, invested heavily in customer intimacy securing long-term contract for 70% of its revenues, and has established a pipeline of both new customers and focused products.