Emergent BioSolutions Inc.

Thank you for standing by. My name is Chris, and I will be your conference operator today. At this time, I would like to welcome everyone to the Q3 2024 Emergent Fire Solutions Inc. Earnings Conference Call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press star, followed by the number one on your telephone keypad. And if you would like to withdraw your question, press star one again. Thank you. I would now like to turn the call over to Frank Vargo, Assistant Treasurer. Please go ahead.

Good afternoon, everyone. Thank you for joining today as Emergent is discussing their operational and financial results for the third quarter 2024. As is customary, today's call is open to all participants, is being recorded, and is copyrighted by Emergent BioSolutions. In addition to today's press release, a slide presentation accompanying this webcast is available to all webcast participants. Turning to slide three, during today's call, Emergent may make projections and other forward-looking statements related to their business, future events, their prospects, or future performance. These forward-looking statements are based on their current intentions, beliefs, and expectations regarding future events. Any forward-looking statement speaks only as of the date of this call, and except as required by law, Emergent does not undertake to update any forward-looking statements to reflect new information, events, or circumstances. Investors should consider this cautionary statement as well as the risk factors identified in Emergent's periodic reports filed with the SEC when evaluating their forward-looking statements. During today's call, Emergent may also discuss certain non-GAAP financial measures that involve adjustments to gap figures in order to provide greater transparency regarding emergence operating performance. Please refer to the tables found in today's press release. Turning to slide four, the agenda for today's call will include Joe Papa, President and Chief Executive Officer, who will provide an update on the company's multi-year plan progress, key product highlights, and turnaround actions. Rich Lindahl, EVP, Chief Financial Officer and Treasurer, will speak to key achievements in the third quarter, the financial results for Q3 2024, as well as full year guidance. This will be followed by Q&A. Finally, for the benefit of those who may be listening to the replay of this webcast, this call was held and recorded on November 6, 2024. Since then, Emergent may have made announcements related to topics discussed during today's call. And with that, I'd like to now turn it over to Joe Papa for opening remarks. Joe?

Hello, and thank you for joining us today to discuss our third quarter results in our 2024 financial outlook. I'm joined today by Rich Lindahl, our Chief Financial Officer. Following my opening remarks, Rich will detail our quarter three performance as well as our full year guidance update. I would close the call with a discussion of our path forward as we continue to make significant progress on our turnaround efforts. Then we'll open up the call for questions and answers. Earlier this year, we embarked on a multi-year plan to stabilize, turn around, and ultimately transform the emergent business. Based on the great efforts of the entire emergent team, I am pleased to share that we have now completed our first phase, the stabilization phase, ahead of our expectations. Emergent is now embarking on the next phase, or turnaround, as part of our multi-year plan to transform and strengthen our business. I'd like to recognize all of our Emergent team members who have demonstrated their commitment to delivering against our multi-year plan to stabilize, turn around, and transform the business. This stems from our collective passion to Emergent's mission to protect, enhance, and save lives against leading public health threats around the world. we plan to continue our operational improvement initiatives and focus on driving profitable growth to create sustainable value for shareholders. Beginning on slide six, I will review several important updates from the third quarter as well as the full year efforts. First, The third quarter was another strong quarter and paired with a great first six months of 2024, we are very pleased with the results year to date. I'd like to emphasize that Emergent finished the quarter in its strongest financial position since 2021. Reflecting on our strong third quarter financial performance, we are once again raising the revised midpoint for our 2024 revenue and raising our adjusted EBITDA 2024 full year guidance, which will walk us through the details. We have strengthened our balance sheet and will exceed our expectations to reduce our net debt by more than $200 million this year. We successfully refinanced our debt, closing a new credit facility agreement with Oak Hill Advisors for a term loan of $250 million and using a portion of that capital to repay all amounts of outstanding under the senior bank term loan facility. We entered into a new agreement with Wells Fargo and our ABL facility that will provide revolving loan commitments and an aggregate principal amount up to $100 million. We continue to improve working capital driven by increases in both revenue and cost savings, and we implemented a leaner, more flexible organization by streamlining our site network, including several asset sales. From an operational standpoint, we also made great strides in the execution of our strategic priorities during the third quarter. Through our relentless commitment to combat the overdose epidemic and help save lives, as we expected, Narcan nasal spray volumes increased year-to-date, and we continue to meet the increased demand of nasal naloxone for our customers. We received FDA approval for ACAM 2000 to include the MPOCS expanded indication in August 2024 as the public health outbreak continues across Africa and other regions. We secured a number of contracts for our medical countermeasures business as a result of increased clarity from the U.S. government as well as international government's plan to procure medical countermeasure products. Also, we announced on Monday we appointed a new head of R&D and chief medical officer, Dr. Simon Lowry, who brings decades of biotech and pharma experience to redefine eMERGE's scientific platform for growth. I'm also pleased to announce that Jessica Pearl has been promoted to our general counsel and corporate secretary. Both will be critical leaders on the executive management team as we move the company forward. Lastly, we've made substantial progress on certain legacy compliance and legal matters, including resolving our Jensen settlement for which Emergent received a $50 million payment. Also, following a successful FDA inspection at the Canton facility, which we have now divested, but importantly, the site. received NAI status. As we continue to operate our operations, we expect to remain well positioned to help deliver value for our customers, patients, and shareholders, all while striving to instill the highest standards of patient safety, quality, and compliance in our work every day. I know the question of the day is, how does the election impact your business? We are confident that what we do at eMERGE has broad-based bipartisan support. We help governments protect from catastrophic public health threats, including opioid overdose deaths and biodefense. Both of these programs transcend political parties. With that, I'll hand it over to Rich to review our financials in more detail.