Integra LifeSciences Holdings Corporation

Good day and welcome to the Integra Life Sciences second quarter 2021 financial results call. Today's call is being recorded. At this time, I'd like to turn the call over to Mike Volliou, Director for Investor Relations. Please go ahead.

Thank you, Stephanie. Good morning and thank you for joining the Integra Life Sciences second 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 second quarter 2021 financial results. Along with the release, an earnings presentation, which we will reference during the call, is available at IntegralLife.com under Investors, Events and Presentations, and the file named Second Quarter 2021 Earnings Call Presentation. Before we begin, I'd like to remind you that statements made during this call may be considered forward-looking. Factors that could cause actual results 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'll make reference to both reported and organic revenue growth. Organic revenue growth excludes the effects of foreign currency, acquisitions including ASEL, divestitures including the sale of our extremity orthopedics business, as well as discontinued products. The list 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 8K filed today with the SEC. With that, I'll now turn the call over to Pete.

Thank you, Mike, and good morning, everyone. I'm pleased to report strong results this morning, reflecting the continued momentum in the business, which enabled us to raise our full year guidance. If you'll turn to slide five in the deck, I'll begin with a review of our second quarter performance. Total revenues were $390 million, representing reported growth of 51% and organic growth of 49% compared to the prior year. Our growth rates were above the high end of the guidance we provided in April and represent organic growth of approximately 3.7% compared to 2019. The gradual recovery in our business, coupled with growth acceleration in products launched over the last 18 months, drove much of our strong performance in the second quarter. Sales were particularly robust across a vast majority of our franchises in both segments. Sales of capital equipment and products in some of our indirect markets are still early in their recovery and showing encouraging trends. Based on feedback from our commercial teams, we expect year-over-year improvement in the second half, especially with respect to capital. Profitability was also very strong in the second quarter, with EBITDA margins of nearly 26% and adjusted earnings per share of 79 cents. Higher revenue, favorable mix, and integration savings drove much of our performance, offset somewhat by normalization of our expenses. As a result of our first half performance and our expectations for our recovery to continue through the second half, we're raising our full-year 2021 revenue guidance by $15 million and our full-year adjusted earnings per share guidance to a new range of $2.98, to $3.05. At our May 20th Investor Day, we laid out a path to achieving our long-term targets. Following the Codman integration, the divestiture of the extremity orthopedics business, and most recently, the integration of Acell, Integra is at an inflection point with two highly focused business segments in neurosurgery and regenerative tissue technology. I'd encourage you to visit our website and watch our Investor Day webcast, Members of our leadership team presented detailed strategies, market opportunities, and catalysts to support our long-term targets. As we illustrated in our presentation, our operating model drives how we run the company on a day-to-day basis and ensures alignment of priorities and consistent execution. The company is in a strong position both strategically and operationally. Please turn to slide six. On June 24th, we announced a leadership transition. After an incredible 11 years, I'll be stepping down as president and CEO of Integra to run the healthcare business at GE. Our board has appointed a special committee, retained an executive search firm, and initiated a formal process to identify a successor, including both internal and external candidates. The process is moving swiftly, and we remain committed to a seamless transition by the end of the year. The company has an outstanding leadership team capable of executing our strategic plans, and we have a deep pipeline of new products to drive market growth and market expansion for years to come. Our strategy, which was developed by this management team and has the full support of the board, is backed by a strong operating model, and we have the financial strength and flexibility to successfully execute our plan. I'm confident that this strategy, coupled with this management team, will deliver a faster top line growth, and consistent profitability. And with that, I'd like to turn the call over to Glenn to discuss our accomplishments and performance in the second quarter in more detail.