Good day, ladies and gentlemen. Welcome to the LivaNova PLC third quarter 2022 earnings conference call. My name is Charlie, and I'll be the coordinator for today's call. You'll have the opportunity to ask a question at the end of the presentation. If you'd like to register a question, please press star followed by one on your telephone keypad. As a reminder, this conference call is being recorded. I'd now like to introduce your host for today's conference, Mr. Matthew Dodds, LivaNova's Senior Vice President of Corporate Development. Please go ahead, sir. Thank you, Charlie, and welcome to our conference call and webcast discussing LivaNova's financial results for the third quarter of 2022. Joining me on today's call are Damien McDonald, our Chief Executive Officer, Alex Shvartsburg, our Chief Financial Officer, and Briana Gotlin, Director of Investor Relations. Before we begin, I would like to remind you that the discussions during this call will include forward-looking statements. Factors that could cause actual results to differ materially are discussed in the company's most recent filings and documents furnished to the SEC, including today's press release that is available on our website. We do not undertake to update any forward-looking statement. Also, the discussions will include certain non-GAAP financial measures with respect to our performance, including, but not limited to sales results, which will all be stated on a constant currency basis. Reconciliations to the most directly comparable GAAP financial measures can be found in today's press release, which is available on our website. We have also posted a presentation to our website that summarizes the points of today's call. This presentation is complementary to the other call materials and should be used as an enhanced communication tool. You can find the presentation and press release in the investor section of our website under News, Events, and Presentations at investor.livanova.com. With that, I will now turn the call over to Damien. Thank you, Matt, and thank you to everyone for joining us. Welcome to our conference call for the third quarter of 2022. I'll start by discussing our third quarter results and reviewing our strategic portfolio initiatives. After my comments, Alex will provide additional details on our results. I will wrap up with closing comments before moving on to Q&A. In the quarter, we achieved 5% revenue growth, reflecting solid execution in neuromodulation and cardiopulmonary. Advanced circulatory support remains unfavorably impacted by a significant decline in severe COVID cases and hospital-related challenges. More broadly, as a company, we continue to navigate macro headwinds, including supply chain, inflation, and foreign exchange volatility. Now turning to segment results. For the cardiopulmonary segment, revenue was $121 million, an increase of 7% versus the third quarter of 2021. Oxygenator revenue grew in the high single digits, driven by continued procedure volume recovery. Heart-lung machine revenue increased in the mid-single digits, led by growth in the Rest of World region. We now expect cardiopulmonary revenue to grow 8%-10% for the full year. This range considers the strong performance in the first 9 months of the year and continued demand for the S5 HLM, particularly in the Rest of World region. Epilepsy revenue increased 11% versus the third quarter of 2021, with growth across all three regions. This performance was primarily driven by replacement implants, as well as improving market dynamics and focused commercial strategies. U.S. epilepsy revenue increased 9% year-over-year, with total implants up mid-single digits, with price contributing the balance. Similar to prior quarter trends, total implant growth was driven by replacements which continued to benefit from a catch-up in procedures deferred due to COVID-related challenges. Additionally, both new patient and replacement implants improved sequentially. U.S. epilepsy results continue to be supported by our go-to-market initiative, which currently encompasses 14 dedicated CEC teams. These teams accounted for 22% of U.S. implants in the quarter as compared to 20% on a same account basis during the prior year. This key commercial strategy continues to deliver implant growth above the baseline business. Epilepsy revenue in Europe grew 6% versus prior year, primarily led by the Nordic region as acute pandemic impact softened. The Rest of World region achieved 28% growth led by Brazil. For the full year, we now expect global epilepsy revenue to grow 6%-8%. Our forecast includes sequential growth in new patient implants in the fourth quarter as we expect healthcare-related challenges to modestly improve. In addition, we anticipate a continued tailwind in replacement implant related to the backlog created during the pandemic. We're pleased with the progress of the go-to-market initiative and plan to add two additional dedicated teams in the fourth quarter. ACS revenue was $9 million in the quarter, representing a decrease of 44% from the third quarter of 2021. Results were impacted by a continued reduction in severe COVID cases, hospital-related challenges, and product mix. Our field data suggests ACS case volumes related to COVID declined more than 90% year-over-year as fewer hospitalized patients progressed to a severity that required ECMO therapy. Notably, ACS non-COVID case volumes increased more than 20% year-over-year. Results in the quarter were modestly impacted by a field action relating to the LifeSPARC Controller. Before turning to the ACS outlook, I wanted to provide a brief update on the field action and related Class I recall. In July, we notified customers regarding modifications we made to the operations manual for the LifeSPARC Controller. This addressed situations during which certain users were incorrectly stopping the pump in response to a screen error message. At the end of September, the FDA classified this as a Class I recall. Importantly, the FDA is not requiring that we remove the product from the field, and the device is considered safe for use when used in accordance with the operations manual. Patient safety is our top priority, and before year-end, we expect to release a software upgrade to address the screen error message. Now turning to our revised outlook for the ACS business. For the full year 2022, we now expect ACS revenue to be down approximately 30%. Our forecast has been updated to reflect the disappointing third quarter results and the impact of the FDA recall. Turning now to our strategic portfolio initiatives. DTD revenue for the third quarter was $2.1 million. For 2022, we are now anticipating DTD revenue of approximately $8 million. The RECOVER study continues to advance. The randomized controlled study is designed with frequent interim analyses that will assess if predictive probability of success has been reached or if the study should continue enrolling. As stated previously, we believe a series of interim analyses is likely needed as we collect patient follow-up data over time. Our interim analysis for the Unipolar cohort to date have confirmed the study's continuation, with the next interim look at 400 patients expected by the end of this month. We still anticipate a transition to the prospective longitudinal study for the Unipolar cohort in late 2022 or early 2023. In heart failure, the ANTHEM-HFrEF U.S. pivotal trial continues to advance. The Independent Statistical Analysis Committee will conduct the next interim analysis after the 500th patient is enrolled, which we anticipate will occur in the fourth quarter, with a readout early in the first quarter of 2023. If the all pre-specified conditions are met, including safety, a trend towards the primary composite endpoint, and success in the three functional endpoints, we would expect to submit the functional data to the FDA. Moving to OSA, the OSPREY trial continues to progress. All 20 study sites are active in recruiting patients. We still assume submission for FDA approval to occur in the latter half of 2023, with a decision anticipated in 2024. Finally, I wanted to provide a brief update on the SNIA litigation. As planned, the Supreme Court hearing took place on October 5th regarding the appeals of liability and damages. We anticipate a decision in the first half of 2023. With that, I'll turn the call over to Alex. Thanks, Damien. During my portion of the call, I'll share a brief recap of the third quarter results and provide commentary on the full year 2022 outlook. Turning to results. Revenue in the quarter was $253 million, a 5% increase versus 2021. Foreign exchange had an unfavorable year-over-year impact of approximately $14 million or 5% of revenue. Adjusted gross margin as a percent of net revenue was 70%, which was in line with third quarter of 2021. Adjusted gross margin was favorably impacted by product mix, offset by supply chain challenges and inflationary pressures. Adjusted R&D expense in the third quarter was $42 million, compared to $37 million in the third quarter of 2021. R&D as a percent of net revenue was 16%, up from 15% in the third quarter of 2021. While sequentially flat, the year-over-year increase was driven by lower spend in the prior year period. Adjusted SG&A expense for the third quarter was $98 million, compared to $93 million in the third quarter of 2021. SG&A as a percent of net revenue was 39%, up from 37% in the third quarter of 2021. Similarly, the SG&A increase was driven by lower spend in variable expenses and marketing costs in the prior year period. Adjusted operating income was $37 million, compared to $46 million in the third quarter of last year. Adjusted operating income margin was 15%, down from 18% in the third quarter of 2021. The adjusted effective tax rate in the quarter was 8%, compared to 10% in the third quarter of 2021. The lower tax rate is attributable to changes in discrete items and geographic income mix. Adjusted diluted earnings per share was $0.58, compared to $0.66 in the third quarter of 2021. Lastly, in the quarter, we recorded charge for the ATS reporting unit to reflect current market conditions, which is excluded from our non-GAAP results. Now turning to our balance sheet. Our cash balance at September thirtieth was $506 million, up from $208 million at year-end 2021. Our current cash balance includes $275 million of restricted cash held as collateral for the SNIA litigation guarantee. Total debt at September 30 was $540 million, up from $240 million at year-end 2021. The increase is primarily related to the $300 million initial term loan facility that we executed in July. Net debt, including restricted cash at September 30 was $95 million. Adjusted free cash flow for the quarter was $41 million compared to $40 million in the prior year period. Capital investments were $17 million in the first nine months of the year, compared to $18 million in the prior year. Now turning to our 2022 outlook. We're maintaining our guidance ranges shared in August as we continue to navigate supply chain challenges, inflationary environment, and anticipated foreign currency headwinds. We expect constant currency revenue growth between 4%-6%, excluding heart valves, an adjusted earnings per share range of $2.25-$2.45, and an adjusted free- Ladies and gentlemen, we have lost connection to our speakers. Please pause as we reestablish their connection. We now have the speakers back with us. I'll hand back over to the team to continue with the presentation. Welcome back. I don't know about this technical glitch, but Alex, why don't you talk about guidance again, and then we'll put to questions. Sure. We are maintaining our guidance range as shared in August as we continue to navigate supply chain challenges, the inflationary environment and anticipated foreign currency headwinds. We expect constant currency revenue growth between 4%-6%, excluding heart valves, an adjusted EPS range of $2.25-$2.45, and an adjusted free cash flow range of $60 million-$80 million. Our outlook now assumes a 5% revenue headwind and approximately a $0.35 EPS headwind from exchange rates. Back over to you, Damien. Okay, let's open it up for questions, Charlie. Of course. Thank you. If you'd like to register a question, please press star and the number one on your touch-tone telephone. If your question's been answered or you wish to remove yourself from the queue, please press the pound key. As we enter the Q&A session, please limit yourself to one question and one follow-up question and then return to the queue if you have additional follow-ups. As a reminder, that's star followed by one on your telephone keypad now. Our first question comes from Rick Wise of Stifel. Rick, your line is open. Please proceed. Thank you. Good morning, Damien. Good morning, everybody. Let me start off with your epilepsy performance. Obviously, it was a very solid. Help us understand again as we get, as you work through your backlog, how much is left, and how we make, what kind of transition you're expecting, growth transition you expect as the replacement backlog gets worked down. Hey, Rick, it's Matt. Good to hear from you. Let me start with kind of the trends. You know, overall, I'd say first and foremost, you know, the market we do think improved a bit in the third quarter. You know, some of the bottleneck at the EMU, we think loosened up a bit. Still an issue, but we think it improved a bit. You know, your question on our go-to-market, we increased the implants from 22% to 20%, so that drove a higher number than the overall business. I would say, you know, looking at what we have left on the EOS, again, it's not perfect math, but our algorithms show that we have about 300 patients left. As you can tell from the quarter, EOS was very strong, both year-over-year and sequentially, but we still think we have 300 left. For next year, we're not giving guidance yet on any specifics, but as I think you can surmise, you know, we do not expect EOS to have quite the same performance in 2023. So we're looking for the new patient growth to accelerate next year. Both in the community and the CECs, which is why, you know, we're pleased with the continued pod structure performance. It's still outperforming the baseline business considerably. We're going to add another two this quarter and, you know, that'll bring us to 16. You know, the coverage now is increasing. I think we're at, you know, roughly 30%-35% of the CECs are covered. And that's up again another couple of percentage points. We're really pleased with how that's growing. Okay. So many things to talk about. I guess it's hard to resist asking a little about 2023. I know you're not ready to give guidance, you just said it, and nor should you. It's hard for us not to think about the setup for next year. Just at a high level, maybe Damien, you could talk through. I mean, Matt just highlighted some factors helping us think about the epilepsy business next year. At a high level, based on what you know now, what are you more optimistic about and what should we be optimistic about? What are, from a growth perspective, where are you more concerned? A little touchy, feely, but hoping you can give us something as we start to revisit our models today. Unusually touchy feely from you. I would say this. I think we overall expect and anticipate improving procedure trends on a global basis. We've seen it opening up in the U.S., as Matt just said, the EMUs are putting patients through a little more proactively. International is opening up. I think overall, I'd say procedure trends are looking positive. I think, you know, the macro factors are going to continue to remain challenging, the supply chain, inflation, foreign exchange. We know we won't guide until the fourth quarter earnings call in February. The trend in the NPIs is progressing well in U.S. epilepsy, and we know that that's an important factor for us. That heart-lung machines in Rest of World continue to track well. Even though we're launching Essenz, the Rest of World, most of those markets don't come online for Essenz until 2025, 2026. You know, seeing the continued growth of HLMs there is important. Procedure volumes around oxygenators continue to be key for us. I'd say looking at the consensus for 2023, though, I don't believe people have fully factored in the foreign exchange impact on the current rates. Maybe you could expand on just that last point. Yeah. Hey, Rick, it's Alex. I can take that one. Just looking at sort of the timing of when the FX really started to trend in the wrong direction for us, you know, in terms of sort of the estimates, we see a potential of, you know, $0.05-$0.10 EPS impact in terms of the negative FX. Thank you. Thanks, Rick. Thanks, Rick. Thank you. Our next question comes from Mike Polark of Wolfe Research. Mike, your line is open. Please proceed. Good morning. Thank you for taking the questions. I'm curious on the Essenz launch, NextGen HLM. I didn't hear if you said anything, I missed it. I didn't hear anything in the prepared remark about, you know, any updated thoughts there. Obviously, building a lot of product, ahead of that, I presume. And, you know, the supply chain is tricky. So, you know, still on track there, any kind of challenges to call out that you're navigating? And can you just remind us on, you know, what's happening now in the second half, in the fourth quarter and what you expect to happen, next year? Yeah. Hey, good morning, Mike. All our verification and validation steps, we still expect the first clinical cases to occur before year-end. They'll be in Europe. In terms of supply chain, we're actually pretty confident about the material for the first units, both through the clinical cases and then the limited commercial release. I think that's progressing well. We will expand into the U.S. in the new year, after the European expansion. The follow-up on ACS. You know, understand the kind of evolving case mix dynamics. Looking at the revenue sequentially, you know, down a bit, but round numbers kind of in the $9 million a quarter range. Can you describe your level of confidence or conviction that this is kind of the, you know, at or near the trough and, you know, from here, a growth pattern can be restored? Sure, Mike, it's Matt. When you look at the third quarter, you know, as Damien highlighted, we were down 44%. We think based on third-party data, the market was down 30%, so we were down a little more this quarter. Remember last year, we said COVID was 40% of the procedures in the third quarter of 2021. That's down all the way to 5% this quarter. That was obviously a huge impact. Non-COVID was up over 20%, so we caught some up. I would say the other couple of things that impacted the quarter, you know, the issue we had with the reclassification that came at the end of the quarter, but the sales force was dealing with it because we put the letter out in July. There was a modest impact from that. I'd say finally, there's been some additional competition on the cannula side that's impacted us a little bit. Those are some small pieces. For the fourth quarter, you know, we do expect probably a modest improvement. We're not factoring any benefit from flu. That could be upside, but we're not factoring that in. The FDA classification again came out at the end of the quarter. There'll probably be some impact from that in the fourth quarter. We anniversary the COVID impact really at the end of the first quarter, expect to see the growth pick up a more meaningful amount. Thanks for taking the questions. Thanks, Mike. Cheers. Thank you. Our next question comes from Matt Taylor of Jefferies. Matt, your line is open. Please go ahead. Hi. Thank you for taking the question. Excuse me. I just wanted to ask a question about the RECOVER study and the next interim look. I guess maybe you could offer some thoughts about, you know, why we haven't seen the curve separate or that statistical analysis result in a conversion yet versus what you might have thought, you know, six or nine months ago? Yeah. Yeah. Matt, at 375, just based on the trial design, there has to be some separation. You know, what's occurred is we haven't had enough separation to stop early. You know, overall, when you look at it, you know, the trial was designed to run at the full 500 patients and still hit the statistical significance. For stopping early, yeah, the original paper did suggest that, you know, there were odds of this, but we've always assumed it would occur later in the year. Overall, we still think there's a very good chance we stop early. Again, we have very high confidence that even if we have to go the full 500, that we would hit statistical significance. Yeah. Just as a clarification, what happens after 500? If we don't stop early, we would essentially have to run the full 512 months. Okay. That would be the main difference. You know, at this point in time, you know, we're not certain that we would be allowed to shift to a registry, but that's not clear. Okay. Okay, great. Thank you. Thanks, Matt. Thank you. Our next question comes from Mike Matson of Needham. Mike, your line is open. Please proceed. Yeah, thanks. I guess I'll start with the ACS business. Just given the headwinds there and the decline that we're seeing, are we at risk of seeing some turnover in the sales force? Are you doing anything to try to retain the reps there? Yeah, that's a great question. We've done a lot of work to make sure that team is intact. The non-COVID business is actually progressing rather well. That's up, you know, 20% year-on-year. We're very pleased with that progression. It's not like, you know, their activity has disappeared. The cardiac and the non-COVID respiratory cases are still very much in focus. We have made changes to that business, you know, to face the reality of the new market. We've taken out head count in non-commercial spaces. We've recently replaced the leader of that business. And I'm looking forward to that business getting back to double-digit growth in the new year. Okay, thanks. Then, you know, your SG&A and R&D or I guess OpEx overall was up a fair bit. You know, I heard Alex the explanation was that it was lower last year, but I guess conversely, it was higher this year. Why was it either so much lower last year or so much higher this year? Yeah, Mike. So if you recall, last year, we were sort of heading into the Omicron, you know, stage of the pandemic. We were seeing some softness in our business throughout Q3. You know, we basically deferred spending into Q4. If you look, it's really just a phasing and timing of spend. Mike, we did highlight that last year on the question of, you know, when we hit the third quarter, we did say some of the third quarter expense will move into Q4 at that point. Okay, thanks. As far as sleep apnea goes with OSPREY, if you're submitting the data, I think you said you expect to submit it late next year. At what point would we see the data? Or would the data be made public, or would it not happen till after the FDA reviews it? Because it's a pivotal, it'd have to be in line with the FDA approving, you know, and then, you know, finding a venue for that at the appropriate sleep apnea conference. Okay. All right, thank you. Cheers, Mike. Bye. Our next question comes from Adam Maeder of Piper Sandler. Adam, your line is open. Please go ahead. Hi, guys. Good morning or good afternoon, perhaps. Wanted to start with just Neuromodulation and was hoping to flesh that performance out a little bit more. Good performance in the U.S. and Rest of the World, but was hoping to put a finer point on NPIs versus replacements in Q3 and kind of exactly, you know, what those figures look like. How do we think about NPIs versus replacements in Q4? I had a follow-up. Thanks. Yeah. End of service outpaced NPIs as Matt said. They grew low double-digit year-on-year and above the 2019 levels, which was important. NPIs were roughly flat year-on-year. They're still below 2019, but importantly, they grew sequentially. They were up about 8% for the quarter, and that for us was an important step. I think the best NPI performance year-on-year for this year-to-date. The progression there as well, again, you know, the CEC pods are the ones that are performing well there and above the baseline. Overall, I continue to expect the NPIs to improve sequentially. We think replacements will improve sequentially, and that's why we've been more confident about what the full year looks like for total epilepsy. That's helpful, Damien. Thank you. For the follow-up, I'll ask about the heart failure program and ANTHEM pivotal trial. Sounds like we're still on track to get another look at the data in Q4 of this year. You know, what are the expectations for this look? Do you expect the interim analysis to be positive? Just maybe level set us there and then any color on pathway forward. Thank you. Yeah. That's progressing well. That team is executing with their implant rate. The expectation is that we hit the 500-patient somewhere in the mid- to late Q4. We'll have the data. The analysis here is a longer step up than the depression study, so it takes, you know, six to eight weeks. In January, we'd expect to have the results. What we're looking for here is the nine-month. You've got to hit the five green lights. The nine-month safety data, the primary endpoint, advancing on the composite mortality and morbidity, and the functional endpoints, which are left ventricular ejection fraction, six-minute walk and quality of life. We don't know which of the five, if you get a red light, you don't know which of the five is the red light. You know, we're again very confident about safety given we've implanted over 125,000 of these. It's really the other four that we're looking for a green light this time. We can't handicap that in any way. Understood. Thank you. Welcome. Good to hear you. Cheers, Adam. Thank you. Our final question of today comes from Amit Hazan. Amit, your line is open. Please proceed. The question. A few follow-ups, if I could. The first one was the 23% FX comment sounded specific to EPS. From a sales perspective, does it seem like numbers are being contemplated properly? Is it kind of in the 250 to 300 basis points headwind range right now from what you guys are looking at? That it's probably a bit higher, Phil. That, you know, it's again, we're sort of lapping the, I'd say, the first half of the year, which was probably less impacted by FX. Okay. All right. That's helpful. Flipping back to the RECOVER trial, I'm interested kind of more qualitatively what the implication is of the trial running a little bit longer before early completion versus what you kind of messaged previously in that 325-375 range. I guess the question is, if statistical significance is reached at any point, is that really what you guys are focused on or do you think there's a qualitative element to this that's gonna be important down the road as commercialization becomes more in focus? Thanks for taking the questions. Sure. A couple of things on that. You know, in terms of, you know, where we are in the trial versus the original trial design, because of COVID, you know, where we are in the average follow-up number of patients that have reached 12 months, we're still a little bit behind at this stage at 375, where we thought we would be in the original design. That impacts the statistical power. I'd say the second thing is, you know, what we're focused on here for stopping early is an endpoint called time and response. It's unique in depression trials because usually don't have trials going on this long. You know, you can't look at time and response and the different percentages between a control arm and a therapy arm versus other depression trials because nobody else has used that. We still think that, you know, the spread or the difference between the two arms can be very powerful in any of the three scenarios we laid out. Overall, it's just that, you know, you need to see the full data set ultimately to I think better compare it to other depression trials. Patient months, even though we're at 375 or approaching 400, the number of patient months accrued is a little bit lower than what you would have anticipated previously because of the impacts of COVID. It sounds like there's still some, you know, definitely feel like the potential for the powering of the study, if successful, is still there with some compounding factors through the last couple of years. Yeah. That and the number of patients that are at 12 months completion, you know, or completers as the PIs call it. Both numbers are still slightly behind. Again, I think it's important, you know, the study was powered to run to 500 patients. The early stop was really about patients being on a sham controlled arm with a device that's already approved. The greatest statistical success of the program was powered for 500 patients. That's helpful. Thanks. Cheers, sir. Thank you. At this time, we have no further questions, so I'll hand back over to Damien McDonald for any closing remarks. Thank you, Charlie, and thank you for everyone joining the call today. On behalf of the entire team, we appreciate your support and interest in LivaNova, and we look forward to updating you on the Q4 results in the new year. Cheers. Bye. Ladies and gentlemen, this concludes today's call. Thank you for joining. You may now disconnect your lines.