RTI Surgical Inc. (NASDAQ:RTIX) Q1 2020 Earnings Conference Call - Final Transcript

Jun 30, 2020 • 09:00 am ET


RTI Surgical Inc. (NASDAQ:RTIX) Q1 2020 Earnings Conference Call - Final Transcript


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Good morning, ladies and gentlemen, and welcome to the RTI Surgical Business Update Conference Call. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session and instructions will follow at that time.

I would now like to turn the call over to Mr. Jon Singer. Please go ahead.

Jonathon M. Singer

Thank you. Good morning and thank you for joining RTI's business update conference call. Joining me today on the call is Camille Farhat, our President and Chief Executive Officer. Before we start, let me make the following disclosure. The earnings and other 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. They are subject to various risks and uncertainties associated with our lines of business and with the economic environment in general. 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 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.

During the call, we will 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 accompanying our earnings release, which can be found in the Investors Relations section of our website.

Now, I will turn over the call to Camille. Please go ahead.

Camille I. Farhat

Thanks, Jon and good morning everyone. As you all likely aware, we have been very busy since our last call in January. The goal of our call today is to provide you with an update on all developments in the business, both completed and ongoing, before providing an overview of our recent financial and operational performance. Specifically, we will review the filing of our 2019 Form 10-K, as well as the 2018 Form 10-K/A as part of our completed financial statement restatement, which Jon will discuss in more detail, also, the status of the sale of our OEM business, an update on Spine as we prepare to go forward as a pure-play global spine Company, the impact of COVID-19 on our business, and our first quarter 2020 performance.

Starting with the status of the sale of our OEM business, as we announced previously, we amended the purchase agreement with Montagu, adjusting the total consideration to $440 million from $490 million. All required government and regulatory approvals have been received and the last remaining step in the process is shareholder approval. As of the time of this call, applicable shareholders should have