UFP Technologies, Inc.

Good day, and welcome to the UFP Technologies first quarter of 2025 earnings call. All participants will be in a listen-only mode. And should you need any assistance on today's call, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star, then one on your telephone keypad. To withdraw a question, please press star, then two. Also, please be aware that today's call is being recorded. I would now like to turn the call over to the Chief Financial Officer, Ron Latai. Please go ahead, sir.

Thank you, Operator. Good morning, and thank you for joining us on our first quarter 2025 earnings conference call. With me on today's call is our CEO and Chairman, Jeff Bailey. Today, we will be making some forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995, the accuracy of which is subject to risks and uncertainties. Wherever possible, we will try to identify those forward-looking statements by using words such as believe, expect, anticipate, pursue, forecast, and similar expressions. Our forward-looking statements are based on our estimates and assumptions as of today and should not be relied upon as representing our estimates or views on any subsequent date. Please refer to the Questionary Statement regarding forward-looking information and the risk factors in our most recent 10-K, including disclosure of the factors that could cause results to differ materially from those expressed or implied. During this call, we will discuss non-GAAP financial measures, which include organic sales growth, adjusted operating income, SGA and EPS, and EBITDA and adjusted EBITDA. A reconciliation of gap to non-gap measures discussed in this call is contained in the associated press release and is available in the investor relations section of our website. I'll turn the call over to Jeff.

Thank you, Ron, and thank you to everyone joining the call. UFP had a strong first quarter. Revenue grew 41%. Operating income increased 45%. and EPS grew 35% to $2.21. Our medical business grew 50%, driven by strong demand in the safe patient handling space, which has grown significantly since UFP acquired AJR. This growth was the result of winning new market share combined with higher overall market demand. This is now our second largest segment behind robotic surgery. We also saw impressive growth in our interventional and surgical, infection prevention, orthopedics, and advanced wound care segments, which all grew by more than 25%. The scale and rapid growth of our safe patient handling business are strategically important as it adds a new high-growth market segment to our medical portfolio and further diversifies our company. Our recent acquisitions have performed very well. Our integrations are on track and they have been solid contributors to our growth. Our organic growth was 2.3%. 5.4% growth in MedTech was offset by a 16.3% decline in advanced components as we continue to focus our resources on our fastest growing MedTech opportunities. This was in line with our expectations for the quarter. Robotic surgery, after multiple years of 20% plus growth, declined 6% in Q1. It is anticipated to have only modest growth in 2025, following the completion of an inventory build by our largest customer in 2024. Our robotic surgery business remains an exciting long-term growth opportunity. We have two major new programs launching later this year. We are in ongoing discussions with our largest robotic surgery partner on ways to support more of their needs that are covered in our current agreement. During the quarter, we continue to make progress on our key strategic initiatives. Highlights include signing a key customer agreement in a safe patient handling space, which provides exclusive manufacturing rights through mid-2030. UFP and our customer will both invest during the contract period and share the savings that are anticipated upon transfer of the programs to our lower cost Dominican Republic location. This agreement supports a large portion of the revenue acquired with the AJR business, which also has a projected above average market growth rate. During the quarter, we also made progress on our Dominican Republic expansion plans. We took occupancy of a new leased facility in Santiago, roughly doubling the size of our operation and have equipment on order to accommodate the growing book of safe patient handling business covered in our new exclusive agreement. We also completed the installation and qualification of new equipment for our two new robotic surgery programs scheduled to launch later this year. In addition, we have a few other approved robotic surgery programs beginning to scale. Finally, Building preparations are underway for the fifth facility in our La Romana robotic surgery campus. The new building includes an expanded R&D lab, engineering offices, and warehouse space. We expect to take occupancy in the coming months. Our expanding Dominican Republic manufacturing and design capabilities are a key competitive differentiator and important component of our growth strategy. Looking ahead, we continue to be bullish about our future We do not anticipate a material impact from the tariffs. Ron will expand on this in his comments. We continue to execute our two-pronged growth strategy focused on expanding our business in the best fit growth markets and searching for strategic acquisitions that increase our value to customers. We are in active discussions with multiple acquisition opportunities as we speak and have recently completed a small fold-in acquisition in St. Charles, Illinois that provides additional manufacturing space capacity, and direct labor talent to help meet the growing needs of our safe patient handling business. In addition, we will continue to expand our product development capabilities, maintaining innovative culture that has driven our success to date. And finally, we are focused on continuously improving all aspects of our business, increasing our efficiency, and reducing our costs. We're pleased with our progress and excited about our future. I'll now hand it back over to Ron to give a bit more color on our results.