Integer Holdings Corporation

Ladies and gentlemen, thank you for standing by. My name is Brent and I will be your conference operator today. At this time, I would like to welcome everyone to the Integer Holdings Corporation's second quarter earnings 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 at that time, simply press star followed by the number one on your telephone keypad. If you'd like to withdraw your question, again, press star one. Thank you. It is now my pleasure to turn today's call over to Tony Borowitz, Senior Vice President of Investor Relations. Sir, please go ahead.

Good morning, everyone. Thank you for joining us and welcome to Integer's second quarter 2022 earnings conference call. With me today are Joe Disick, President and Chief Executive Officer of and Jason Garland, our Executive Vice President and Chief Financial Officer. As a reminder, the results and data we discussed today reflect the consolidated results of Integer for the periods indicated. During our call, we will discuss some non-GAAP measures. For reconciliation of these non-GAAP measures, please refer to the appendix of today's presentation, today's earnings press release, and trending schedules, which are available on our website at integer.net. Please note that today's presentation includes forward-looking statements. Please refer to the company's SEC filings for a discussion of the risk factors that could cause our actual results to differ materially. On today's call, Gil will provide his opening comments and an update on the execution of Vintajer's strategy. Jason will then review our adjusted financial results for the second quarter 2022, provide additional insight on our product line performance, and review our full year 2022 guidance. Joe will come back on to provide his closing remarks, and then we'll open up the call for your questions. With that, let me turn the call over to Joe.

Thank you, Tony, and thanks to everyone for joining the call today, especially the integer associates who have continued to execute our strategy through these dynamic times. In the second quarter, we delivered financial results in line with our expectations shared during our last earnings call. Sales grew double digits versus last year and the first quarter of this year. Our adjusted operating profit grew 28% versus the first quarter and was about flat versus last year, as the current labor and supply chain environment had minimal impact on our second quarter results last year. We have increased our full-year sales outlook by $14 million, to deliver 12% to 14% growth year-over-year. We expect adjusted operating profit to grow 10% to 16% year-over-year as gross margin improves through the second half of this year. We continue to make progress in executing our strategy to accelerate our top-line growth. We are executing structured and disciplined product line strategies to deliver sales growth. Integer is uniquely positioned to serve our customers across the full continuum of the product technology lifecycle, from emerging technology to high growth and finishing with the mature phase. We offer differentiated technology for the emerging phase, can scale production during high growth, and can vertically integrate and simplify our customer supply chain during the mature cycle. Our organic and inorganic investments are focused on adding capabilities and capacity concentrated in the higher growth in markets of electrophysiology, structural heart, neurovascular, and neuromodulation. We are delivering faster organic growth this year, now 6% to 8% as a result of these strategies. We expect faster second-half organic growth from the new product introductions that continue to ramp the rest of this year and into next year. Our acquisitions are delivering as Oscar's sales are ahead of plan by $5 million and the integration of Aaron is on track. Oscar has a strong pipeline of opportunities and has partnered extremely well with our operations and supply chain teams to deliver more than planned at the beginning of the year. We are generating strong engagement from strategic customers on the combined capabilities of Aaron and Integer and are excited about these new opportunities. as well as Aaron's existing strong pipeline. We remain focused on executing our strategy to deliver on our financial objectives. I'll now hand the call over to Jason.