NuVasive, Inc.

Good day, ladies and gentlemen, and welcome to the Newvasive first quarter 2023 earnings conference call. I would now like to introduce your host for today's call, Ms. Juliette Cunningham, Vice President of Investor Relations at Newvasive. Please go ahead, Ms. Cunningham.

Thank you. Good afternoon, everyone. With me today are Chris Berry, Chief Executive Officer, and Matt Harbaugh, Chief Financial Officer. Chris will provide an overview of NuVasive's first quarter 2023 business results and trends, as well as innovation highlights. Matt will review our detailed financial results and full year 2023 outlook, and then we'll host a question and answer session. The earnings release, which we issued earlier this afternoon, is posted on the IR section of our website and has been filed on Form 8K with the SEC. We have also posted supplemental financial information. As a reminder, this call is being recorded and an archive will be available on our IR website later today. Before we get started, I'd like to remind you that our comments during this call will include forward-looking statements, which are based on current expectations and involve risks and uncertainties, assumptions and other factors, which could cause actual results to differ materially from those expressed or implied by such forward-looking statements. The factors that could cause actual results to differ materially are described in new bases and news releases and periodic filings with the SEC. Except as required by law, we assume no obligation to update any forward-looking statements or information which speak as of their respective date. In addition, this call will include certain non-GAAP financial measures. Reconciliations of these measures to the most directly comparable GAAP financial measures are included in today's earnings release and the supplemental financial information, both of which are accessible on Nuvasiv's website. And with that, I'd like to introduce Chris Berry.

Thank you, Juliette, and good afternoon, everyone. Earlier today, we reported first quarter 2023 financial results. On today's call, I'll review our performance for the quarter share how our continued growth positions us well for the proposed merger, and discuss the next steps in our pending combination with Globus Medical. After my remarks, Matt will share additional financial details on the quarter. NuVasive delivered first quarter 2023 net sales of $307.7 million, an increase of 5.8% on a reported basis or 7.7% on a constant currency basis compared to the prior year period. Our company's performance reflects increased procedure volumes and continued surge of demand for our innovative portfolio. In particular, our U.S. business had a strong quarter, including approximately 9% growth in U.S. spinal hardware, led by Thor Columbar, and more than 20% growth from Cervical for the sixth straight quarter. In our international business, we achieved 8.3% growth on a constant currency basis compared to the prior year period. This performance was driven by core spine, resulting in double-digit growth in Europe and solid growth in Asia Pacific, offset by reimbursement pricing headwinds in Japan. We remain focused on the three fundamentals of our growth strategy, core growth, intelligent surgery, and market opportunities, while improving our financial profile over time. Starting with core growth. we have significant opportunities in key procedural segments that we continue to target with our 360 portfolios, X360, C360, P360, and Complex. Our innovation gives us a strong competitive position to extend our leadership in Interior and take share in segments where we historically have been underrepresented. In Interior, we continue to celebrate 20 years of our flagship XLIP procedure and five years of our X360 procedure. As the leader in lateral, with more than 500 peer-reviewed publications and more than 60 products launched, XLIFT continues to demonstrate superior and more predictable outcomes than traditional spinal fusion procedures. Just as we proceduralize XLIFT, we're also taking our know-how and experience and applying it to additional opportunistic segments, including cervical, posterior, and complex. In cervical, our C360 portfolio continues to deliver well above market growth. Not only has the simplified cervical disc consistently performed, but we saw impressive year-over-year growth in the entire C360 portfolio. The launch of Reliant Cervical is driving double-digit growth within the posterior cervical fusion subsegment. The additional occipital system enhancement has been receiving positive feedback since its launch in the fourth quarter of 2022. Following a targeted commercial launch in Japan with the Canberra Laminoplasty System, we recently introduced Canberra in the U.S., and are receiving positive feedback in the beta launch. This is a prime example of our globalization strategy, providing prioritized regional markets with the differentiated solutions they need to compete locally and identifying how to scale those unique solutions to additional markets. We continue to see definitive procedural pull-through in hospitals that have adopted PULSE. While our surgeons can use PULSE in 100% of spine procedures, We're committed to innovating the platform to provide more intelligent surgery and improve clinical, operational, and financial outcomes to better support our customers and patients. The next system-level software release for Pulse has received positive feedback from our initial sites, giving surgeons and their OR teams enhanced line of sight for navigation, new instrument compatibility, improved remote support and services, and a further streamlined OR team experience. The commercial rollout will begin this summer. In our invasive specialized orthopedic business, recent achievements include the Precise System received pediatric clearance in the U.S., and the Precise Bone Transport System was commercially launched in several countries in Europe. These are key milestones for NSO, and with the support of more than 100 peer-reviewed studies, the business is well-positioned for long-term growth. Turning to our planned combination with Globus Medical, we are pleased that both Nuvasim and Globus Medical shareholders approved our proposed merger to create an innovative global musculoskeletal company. As demonstrated by the overwhelming support of the merger by both company shareholders, the pending combination greatly accelerates our near and long-term strategy. With a presence in more than 50 countries and supported by more than 5,000 employees, the new organization will advance patient care around the globe and deliver on our commitment of prioritizing compelling market opportunities. As it relates to the antitrust approval, we recently received a second request from the U.S. Federal Trade Commission regarding our HSR filing. As a result, the expected close of the merger has shifted from mid-2023 to the third quarter of 2023. While the timing may have changed slightly, our commitment to the deal is steadfast, and our belief that this merger will benefit our stakeholders remains unchanged. As a reminder, this complementary combination expands our reach to surgeons and patients around the world with limited commercial overlap in key markets, creates a comprehensive portfolio of innovative spine and orthopedic technologies, furthers our commitment to meaningful innovation, expands our operational capabilities, and creates a strong financial profile and value creation opportunity for our shareholders. We remain confident in the future vision of our combined company. and the opportunity provides superior service to our surgeon and hospital partners to advance patient care. Now, I'll turn the call over to Matt.