CONMED Corporation

Good day, and thank you for standing by. Welcome to the second quarter fiscal year 2021 ConMed earnings conference 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 the session, you'll need to press star 1 on your telephone. If you require any further assistance, please press star, then zero. I would now like to hand the conference over to ConMed for a brief announcement.

Good afternoon, everyone. Before the conference call begins, let me remind you that during this call, management will be making comments and statements regarding its financial outlook and its plans and objectives, which represent forward-looking statements that involve risks and uncertainties as those terms are defined under the federal securities laws. Investors are cautioned that any such forward-looking statements are not guarantees of future events, performance, or results, and the company's actual results may differ materially from its current expectations. Please refer to the risks and other uncertainties disclosed under forward-looking information in today's press release, as well as the company's SEC filings for more details on the risks and uncertainties that may cause actual results to differ materially. The company disclaims any obligation to update any forward-looking statements that may be discussed during this call, except as may be required by applicable law. You will also hear management refer to certain non-GAAP adjusted measurements during this discussion. While these figures are not a substitute for GAAP measurements, management uses these figures to aid in monitoring the company's ongoing financial performance from quarter to quarter and year to year on a regular basis, and for benchmarking against other medical technology companies. Adjusted net income and adjusted earnings per share measure the income of the company excluding credits or charges that are considered by the company to be special or outside of its normal ongoing operations. These adjusting items are specified in the reconciliation supporting the company's earning releases posted to the company's website. With these required announcements completed, I will turn the call over to Curt Hartman, Convets Chair of the Board, President and Chief Executive Officer for opening remarks. Mr. Hartman.

Thank you, Jonathan and Julie. Good afternoon, and thank you for joining us for ConMed's second quarter 2021 earnings call. With me on the call is Todd Garner, Executive Vice President and Chief Financial Officer. Today, we will walk you through our second quarter results and provide an update to our full year outlook. We'll then open the call to your questions. Turning to our results, total sales for the second quarter were $255.2 million. representing a year-over-year increase of 61.7% as reported and an increase of 58.2% in constant currency versus the same quarter in 2020. Given the COVID impact on the markets in Q2 of 2020, I wanted to also note that relative to the second quarter of 2019, sales increased 7.1% as reported and 6.7% in constant currency. In that view, we feel this was a solid quarter considering that various factors like vaccination rates and sporadic COVID shutdowns and disruptions impacted the Q2 of 2021 surgical schedules. From an earnings perspective during the second quarter, our gap net income totaled $13.3 million. This compares to a net loss of $27.4 million in the second quarter of 2020. Excluding special items that affected comparability, our adjusted net income was 22.2 million during the quarter, and our adjusted diluted net earnings per share were 71 cents, each of which increased meaningfully versus our COVID-impacted results in the prior year. Our global orthopedic business is improving as we projected. As expected, sports-related procedures overall still remain below the pre-COVID levels. The international export markets remain the most challenged relative to 2019, while international direct markets and the domestic business showed continued improvement in procedure-specific results. As we said in our January outlook, we think our sports medicine business will take longer to return to historical procedure levels than the rest of our business. Global general surgery again demonstrated strong results, growing when compared to both 2020 as expected, but also against 2019. We remain very happy with our global results of both AirSeal and Buffalo Filter, and we anticipate continued strong performance from each of these products. General surgery performance remains in line with our January comments that indicated general surgery would recover faster than sports medicine. Overall, we delivered a very good quarter that aligned with our original guidance considerations, which included, number one, Q1 seeing the biggest adverse impact from COVID disruption, with that impact lingering into Q2. and we believe that was accurate. Further, while we are dealing with the impact of the Delta variant to include select market slowdowns, we believe governments and healthcare systems recognize that a measured slowdown is a far better approach than implementing broad procedure cancellations when dealing with the spread of the virus. We also stated that global vaccine disbursement would take months. We believe good progress has been made, but there has been market variability in terms of both availability and acceptance of vaccines. And finally, we felt 2021 would be a transition year. We believe this remains true as markets navigate the impact of the Delta variant and perhaps potential future strains. In closing, I'm proud of the ConMed team and the progress we made during the quarter. More directly, my global leadership team has performed exceptionally well, and while you always have areas of opportunity, the executive alignment has never been stronger at ConMed. Given the near and longer-term opportunities and the strength of the business, we made a decision during the second quarter to accelerate sales force expansion across our business in select international markets and both the domestic general surgery and orthopedic markets. This work began in the second quarter and will be essentially completed in Q3. We've also increased our outlook to reflect the strengths we see in our business. Todd will provide more during his review of our outlook. The significance of that news should serve to underscore our confidence in our future and my confidence in this leadership team. I'll now turn the call over to Todd, who will provide a more detailed analysis of our financial performance and walk you through the increase to our outlook. Todd?