ZimVie Inc.

Good day, and thank you for standing by. Welcome to the ZMV second quarter 2022 earnings call. At this time, all participants are in listen-only mode. After the speaker's presentation, there will be a question-and-answer session. To ask a question during this session, you'll need to press star 1-1 on your telephone. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker today, Marissa Beisch, Investor Relations. Please go ahead.

Hi, and thank you all for joining today's call. Earlier today, Zimdy released financial results for the quarter ended June 30, 2022. A copy of the press release is available on the company's website, Zimdy.com, as well as SEC.gov. Before we begin, I'd like to remind you that management will make comments during this call that include forward-looking statements. Actual results may differ materially from those indicated by the forward-looking statements due to a variety of risks and uncertainties. Please refer to the company's 2021 Form 10-K and subsequent SEC filings for a detailed discussion of these risks and uncertainties. Additionally, the discussion on this call will include certain non-GAAP financial measures. Reconciliations of these measures to the most directly comparable GAAP financial measures are included within the earnings release and or the investor deck issued today found on the investor relations section of the company's website, Zimdy.com. This conference call contains time-sensitive information and is accurate only as of the live broadcast today, August 10, 2022. ZMV disclaims any intention or obligation, except as required by law, to update or revise any financial projections or forward-looking statements, whether because of new information, future events, or otherwise. And with that, I will turn the call over to Vafa Jamali, President and Chief Executive Officer of ZMV.

Good afternoon, and thank you all for joining us. I'm on the call today with Rich Heppenstall, our Chief Financial Officer. I'd like to kick off our call by reacquainting investors with who we are at Zimbi, including our dental and spine businesses, and then reviewing our financial performance for the quarter ended June 30th, 2022, our first full quarter as a newly independent company. Zimbi is a global medical technology leader dedicated to restoring life for dental and spine patients. and we participate in a $20 billion global market opportunity across those markets. We are the number five largest player in the worldwide dental market and the number six in spine. We have over 20 brands trusted by clinicians and surgeons worldwide. We operate in 70-plus countries, and we have approximately 2,700 team members. Our vision is that everyone deserves to feel better, healthier, and stronger. Our mission is to advance clinical technology foundational to restoring daily life. As I mentioned earlier, we have the fortune of being a leading player in two substantial and growing markets. Our product platforms address a broad set of critical patient needs across those markets and are substantially differentiated from competitive solutions in several cases. Our dental business is very well positioned in the growing global dental, implant, and biomaterials market. Within this segment, we continue to operate in three key categories, dental implant solutions, which is our largest contributor, biomaterials which support the implant, including its durability and sustainability, and digital dentistry. Digital dentistry is an emerging technology that provides significant workflow support to the clinician across their office and, derivatively, both improves the quality of the implant while reducing the time that a patient spends in the chair. As we scale our digital dentistry solutions, we are also driving strong adoption and pull-through of our implant business. In the second quarter, I'm especially pleased to highlight our launch of the T3 Pro tapered implant and the ENCODE Emergence healing abutment, designed to optimize restorative care and aesthetics. Both the T3 Pro and ENCODE Emergence reflect significant innovation to ZymV's previous products and promise an optimized implant experience for both dentists and patients. Both products have recognized strong early traction, with T3 Pro receiving positive feedback on primary stability and favorable reception to encode emergence centered on seeding at the tissue level, enhanced ease of use, and eliminating the need for bone profiling. Based on recent market data, we see T3 Pro capturing modest early share in the premium implant segment. Our spine business comprises a broad portfolio of spine implants, instruments, and biologics, as well as bone healing solutions. In addition to our largest spine segment of core and complex solutions, we also have exposure to two exciting emerging categories, motion preservation devices and minimally invasive surgery. Motion preservation is an area we are actively leading and remain very excited about, including MobiSea, the market-leading cervical disc replacement, and the Tether, a novel treatment for pediatric scoliosis. Minimally invasive surgery, which typically benefits from the addition of enabling technology, is an area in which we intend to further expand. Regarding our motion preservation solutions, I'm excited to highlight our recent receipt of a positive policy decision from Anthem for the tether device, which expands potential treatment eligibility to patients indicated for anterior vertebral body tethering, or AVBT, within the 30 million plus members covered under Anthem Blue Cross Blue Shield. We have seen firsthand the positive impact that the tether has had on the lives of children and their families, and we're optimistic that this decision will pave the way for additional favorable policy changes to continue expanding therapy access. Turning to our performance as we exit the first full quarter as an independent company, I would like to reiterate that it remains very early days at Zimbi. Nonetheless, I'm pleased to announce we recognize $233.4 million in total net sales for the second quarter, declining roughly 8% year-over-year on a constant currency basis, but offering the baseline against we are confident we can grow over time. Our results in the quarter were impacted to some extent by shortage of facility staffing and the elective nature of some of our procedures, dynamics which many of our peers have also stated. However, we are not allowing a challenging macro environment to detract from our focus on strengthening our foundation and positioning to drive future growth. For example, by launching two new products in dental, which I referred to earlier, the T3 Pro and the Encode Emergence and Healing Abundant, we intend to stay at the forefront of the premium implant digital dentistry markets by delivering a cadence of dental product enhancements over the coming year and beyond. As I touched on earlier, we saw the culmination of years of our team's work driving awareness of the tether's value in pediatric scoliosis in the form of a positive policy decision from Anthem. Although the Tether contributes a smaller piece of our spine portfolio today, insurance coverage has proven the greatest headwind to adoption in the past, and we expect the Tether to grow meaningfully as access improves over time. I would also like to highlight that we improved our cash balance by approximately $25 million sequentially from first quarter end through second quarter end, closing June with $130 million in cash and equivalents. We drove cash flow improvement through greater fiscal discipline, including spending scrutiny and monetization of certain aspects of our balance sheet, as Rich will detail shortly. As we said during our analyst investor day earlier this year, we are committed to advancing our operational efficiency of our business, including improving cash flow and reducing leverage over time. We are pleased with our early progress to increase cash, providing greater forward flexibility and confidence in achieving those goals. I will now hand the line over to Rich Heppenstall, our Chief Financial Officer, to review more details of our second quarter performance and financial outlook.