Enovis Corporation

Good day and welcome to the ANOVA's fourth quarter 2024 earnings conference call. All participants will be in a listen-only mode. Should you need assistance, please signal a conference press list 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 touch-tone phone. To withdraw your question, please press star then two. Please note this event is being recorded. I would now like to turn the conference over to Kyle Rose, Vice President of Investor Relations. Please go ahead.

Thank you, Danielle. Good morning, everyone, and thank you for joining us today for our fourth quarter 2024 results conference call. I'm Kyle Rose, Vice President of Investor Relations. Joining me on the call this morning are Matt Traritola, Chair and Chief Executive Officer, and Ben Berry, Chief Financial Officer. Our earnings release was issued earlier this morning and is available in the investor relations section of our website, Inovus.com. We will be using a slide presentation in today's call, which can also be found on our website. Both the audio and the slide presentation of this call will be archived on the website later today. During this call, we'll be making some forward-looking statements about our beliefs and estimates regarding future events and results. These forward-looking statements are subject to risks and uncertainties, including those set forth in the Safe Harbor language in today's earnings release and in our filings with the SEC. Actual results might differ materially from any forward-looking statements that we make today. The forward-looking statements speak only as of today, and we do not assume any obligation or intend to update them except as required by law. For further details regarding any non-GAAP financial measures referenced during the call today, the accompanying reconciliation information relating to those measures can be found in our earnings press releases and in the appendix of today's slide presentation. With that, let me turn it over to Matt, who will begin on slide three.

Thanks, Kyle. Hello, everyone, and thanks for joining us this morning. Let's start on slide three. 2024 was a transformational year for Inovus, with significant progress toward our long-term strategic goals, and I'm excited about the future of our high-value medtech growth company. In the fourth quarter, we reported growth of 23% and 7% on a constant currency comparable basis. We made tremendous progress on the integration of Lima, exceeding all of our year one goals, and we exited 2024 on a strong commercial and operational trajectory. We expanded our adjusted EBITDA margins by 210 basis points, reflecting the mixed impact of recon, the step change impact from Lima, and EGX-driven productivity improvements. Overall, we're pleased with our execution in 2024 and are confident that we'll have the exit trajectory. We have the exit trajectory, new product pipeline, and commercial teams in place to deliver healthy acceleration in 2025. On to slide four. In recon, we delivered 59% reported global revenue growth. Recon grew 10% on a comparable basis in the quarter with double-digit global growth in both our HIPNE and extremity segments. In the quarter, U.S. recon grew 7%, including 10% growth in U.S. extremities and 8% in hips and knees. Our U.S. business accelerated through the quarter in line with our expectations. In international, we grew 13% while we continued to execute our integration plans. We exited the fourth quarter with healthy momentum from recent new product launches across recon and a growing impact from cross-sellings. We're approaching a very exciting period of new product impact across our recon business as we leverage the power of a broader product and technology portfolio. We're ramping our commercial launches of revision cones in knees, augmented glenoid systems in shoulders, and the Prima shoulder. We also have key launches planned in hip implants and in enabling technology, including the next generation of Arvis in knees and the initial rollout of Arvis in the shoulders. These new product launches will be complemented by an aggressive ramp of cross-selling opportunities. Turning to slide five, the Lima acquisition has been a key part of building our great recon business. The first year of the acquisition has been a huge success. We exceeded our revenue and profit goals and have successfully executed on the channel and organizational integrations. We remain confident in our three-year financial goals, and have robust plans to deliver substantial long-term strategic value. I got to join the team's annual sales kickoff in Prague a few weeks ago. It was incredible to see and feel the positive growth energy and excitement in our combined commercial team. I was also so impressed with the cohesiveness of the teams and the clarity of the growth plans. This is a tribute to the well-executed integration process, as well as the cultural fit and talent of the leaders. Turning to slide six, in P&R, our 3% growth reflects a stable market environment and disciplined execution. We continue to strengthen our market-leading positions by driving operational improvements, new innovations, and strategic shaping. EBITDA margins in this segment expanded by 130 basis points year over year, securing a full year improvement of 40 basis points as we continue to leverage EGX tools to drive consistent productivity gains, and improved portfolio mix. Overall, I'm pleased with our performance and the momentum we built in 2024. 2025 is off to a great start. We have a robust lineup of important new innovations across our business, and our commercial teams are poised to deliver another year of above-market growth. Now I'll let Ben take you through the P&L details and our 2025 guidance. Ben? Thanks, Matt.