Integra LifeSciences Holdings Corporation

Ladies and gentlemen, good day and welcome to the Integra Life Sciences first quarter 2021 financial results call. At this time, I would like to turn the conference over to Mr. Mike Boullier, head of investor relations. Please go ahead, sir.

Thank you, David. Good morning, and thank you for joining the Integra Life Sciences first quarter 2021 earnings conference call. Joining me on the call are Peter Arduini, president and chief executive officer, Glenn Coleman, chief operating officer, and Carrie Anderson, Chief Financial Officer. Earlier today, we issued a press release announcing our first quarter 2021 financial results. The release and corresponding earnings presentation, which we will reference during the call, are available at IntegralLife.com under Investors, Events and Presentations in the file named First Quarter 2021 Earnings Call Presentation. Before we begin, I'd like to remind you that many of the statements made during this call may be considered forward-looking statements. Factors that could cause actual results to differ materially are discussed in the company's Exchange Act reports filed with the SEC and in the release. Also, in our prepared remarks, we will make reference to both reported and organic revenue growth. Organic revenue growth excludes the effects of foreign currency, acquisitions including ASEL, divestitures including the recent sale of our extremity orthopedics business, as well as discontinued products. Unless otherwise stated, all disaggregated and franchise-level revenue growth rates are based on organic performance. Lastly, our comments today will include certain non-GAAP financial measures. Reconciliations of any non-GAAP financial measures can be found in today's press release, which is an exhibit to Integra's current report on Form 8-K, filed today with the SEC. With that, I'll now turn the call over to Pete.

Thank you, Mike, and good morning, everyone. If you turn to slide four, I'll begin with a review of our first quarter performance. Total revenues were $360 million, representing reported growth of 1.6% and organic growth of 2.9% compared to the prior year, and were above the high end of the guidance we provided in February. This also represents organic growth of approximately 3% compared to 2019. First quarter revenues in both our Codman specialty surgical and tissue technology segments reflected a gradual recovery in our procedure-based market, as well as an improvement in hospital capital spending. Notable strength came from both small capital used in neuro procedures and international sales of CUSA, particularly from Japan and China, as well as global sales of instruments. First quarter adjusted earnings per share were 69 cents, representing an increase of over 40% compared to 2020 and 6% compared to 2019. This reflects our prudent spending approach as we navigate the remaining uncertainty related to the pandemic's impact on surgical procedure volumes. Taken together, our revenue and earnings for the first quarter represent a very good start towards achieving our 2021 financial targets. Based on our first quarter performance, we're increasing the low end of our revenue guidance to a new range of $1.525 billion to $1.535 billion, and now expect full-year 2021 adjusted EPS to be at the higher end of our previous guidance range of $2.86 to $2.93. Turning to ASEL, our most recent acquisition, first quarter sales were in line with expectations and we also completed the commercial integration ahead of our initial plans. We expect to have the remaining critical integration activities behind us by the end of the second quarter, and we continue to be optimistic about the addition of ASEL to our tissue technologies portfolio and remain confident in achieving our previously discussed goals for this business. We also continue to prepare our global commercial organizations for the mid-year launch of Serolink, our next generation ICP monitor, which will further enhance our neuromonitoring global portfolio. This launch follows the launch of several other products, including our new hydrocephalus programmable valve for Japan, and our new electrosurgery generator and associated irrigator, and a number of reusable bipolar forceps products. We expect our new product launches and sales growth of products recently launched to fuel an acceleration in revenue over the course of 2021. Later this year, we're also planning a controlled release and clinical evaluation of the Aurora Surgiscope for minimally invasive treatment of brain tumors, an exciting program that has the potential to impact the practice of neurosurgery. With respect to COVID, we're encouraged by the gradual improvements in procedure volumes and hospital discretionary spending. However, we remain cautious and expect some variability to continue through the second quarter as vaccinations roll out at different rates globally. Nevertheless, we feel confident a global recovery will continue, and following our first quarter performance, we remain well positioned to achieve our full year 2021 financial target. Finally, as a reminder, we will be hosting a virtual investor day on May 20th. We look forward to providing you with a detailed review of our strategies for both of our global segments and visibility into our path to achieving our long-term financial target. We hope you're able to join us. And with that, I'd like to turn the call over to Carrie to discuss the details of our first quarter performance. Carrie?