Good morning, ladies and gentlemen, and welcome to the Avanos Second Quarter 2025 Earnings Conference Call. [Operator Instructions] I would now like to turn the conference over to Scott Galovan, Chief Financial Officer. Please go ahead, sir.

Good morning, everyone, and thanks for joining us. It's my pleasure to welcome you to Avanos 2025 Second Quarter Earnings Conference Call. Presenting today will be Dave Pacitti, CEO, who will kick off the call by sharing a few leadership updates. Dave will then provide a high-level overview of our second quarter results before turning it over to Jason Pickett, who has been serving as our Interim CFO. Jason will share additional details on these topics, provide an overview of our financial results and affirm our 2025 planning assumptions, inclusive of the impact of tariffs. We will finish the call with Q&A. A presentation for today's call is available on the Investors section of our website, avanos.com. As a reminder, our comments today contain forward-looking statements related to the company, our expected performance and current economic conditions, including risks related to ongoing tariff negotiations and our industry. No assurance can be given as to future financial results. Actual results could differ materially from those in the forward-looking statements. For more information about forward-looking statements and the risk factors that could influence future results, please see today's press release and risk factors described in our filings with the SEC. Additionally, we will be referring to adjusted results and outlook. The press release has information on these adjustments and reconciliations to comparable GAAP financial measures. Now I'll turn the call over to Dave.

Thanks, Scott, and good morning, everyone. I'd like to begin today by addressing the leadership changes that we announced earlier this morning. First, it's my great pleasure to announce that Scott Galovan, previously our SVP of Strategy and Corporate Development, has been appointed Avanos' new Chief Financial Officer. In his 12-plus years with the company, Scott has been instrumental in executing our strategy, identifying and pursuing strategic acquisitions and divestitures to strengthen our portfolio and keeping Avanos focused on the future. His extensive experience in navigating complex transactions will be absolutely critical as we build on our transformation efforts. We're excited to welcome him to this role and look forward to his dynamic leadership and valuable contributions. I'd also like to take this opportunity to thank Jason Pickett for serving as our interim CFO, while we conducted our search to fill this role. We greatly appreciate his leadership and his commitment to keeping us on the right path during this transitional period. Jason will continue to lead our tax, treasury and accounting functions. Finally, I'm honored to announce that I've been appointed to Avanos' Board of Directors, working alongside our Board members to guide Avanos' strategic direction and focus on delivering long-term shareholder value will truly be my privilege. Now we will shift our comments to our quarterly results and outlook. Building off our first quarter results, we delivered a strong second quarter, anchored by continued healthy performance of our life-sustaining Specialty Nutrition Systems segment, along with continued progress in our opioid-sparing Pain Management and Recovery segment. The demand for our products remains robust, and I'm pleased with the foundation laid out by our 3-year transformation efforts. During my first 100 days, I reviewed the initiatives that we were identified and implemented within the transformation journey. I'm encouraged by the…

Thanks, Dave. I'll spend the next few minutes discussing our second quarter results at the segment level. Our Specialty Nutrition Systems portfolio continues to deliver above-market results, growing 5% organically versus prior year, reaffirming our #1 position in long-term, short-term and neonatal enteral feeding. Demand for our long-term enteral feeding products remain strong, and our underlying growth continues to beat market levels. However, as anticipated and shared during our first quarter earnings call, our second quarter performance was tempered by the timing of distributor orders captured in our first quarter results resulting from our go-direct transition in the United Kingdom. Our short-term enteral feeding portfolio posted another quarter of double-digit growth globally during the second quarter. These results were fueled by the continued expansion of our U.S. CORTRAK standard of care offering, inclusive of our newly launched CORGRIP tube retention system designed to reduce the risk of tube migration and dislodgement. Finally, our neonatal solutions business delivered another excellent quarter, growing greater than 12% compared to the prior year. As we had previously signaled, we anticipate lower but still above-market growth for our NeoMed product line over the next few quarters as we enter the late stages of the ENFit adoption cycle in North America. From a profitability standpoint, operating profit for our Specialty Nutrition Systems segment for the second quarter was nearly 18%, reflecting the impact of tariffs and transient unfavorable cost absorption. We believe the dynamics we have just discussed provide a foundation for us to deliver mid-single-digit organic revenue growth for our Specialty Nutrition Systems portfolio in 2025, driven by core commercial execution, new product innovations and further global market expansion opportunities. Now turning to our Pain Management and Recovery portfolio. Normalized organic sales for this quarter were up 3.4%, excluding the impact of foreign exchange and…

[Operator Instructions] And we now have our question. This comes from Dan Stauder from Citizens JMP.

Congrats on the great quarter. And Scott, congratulations on the new role. First one, just on the 2025 guidance. You reaffirmed full year on the sales line, and that's inclusive of the HA divestiture. So that's impressive and great to see. But I was hoping you could just give us some more high-level color on what you had previously assumed for HA in the second half of '25 and what that implies for S&S and Pain Management as we model out the back half of the year?

Sure. Thanks, Danny. So yes, we're pleased to be able to affirm the year, inclusive of the impact of HA. Obviously, there's 5 months of revenue that we're not going to be able to recognize in that business due to the sale. So we're pleased with the performance of our -- of SNS and PM&R. Those businesses have continued to perform well. We're not disclosing exactly what the impact would be of the foregone HA revenue, but we are comfortable reaffirming guidance for the top line and bottom line.

Yes. Danny, I also add, currency headwinds are not as material as we'd anticipated. So that's been a great answer that allows us to follow up with that growth in the strategic segments that we have.

Okay. Great. Appreciate that. And then I guess a little bit more specific on the RF ablation business, really strong quarter. You touched on some of the dynamics there, but would still love some more color on what's driving growth there? And how sustainable do you feel this is in the second half of '25 and into '26. Just anything you're seeing? Any more color would be great.

Yes. Danny, this is Dave. A couple of things. One, I've had a chance to be out there with the team and also have attended a couple of pain conferences. So I've got a really good better understanding of the market. And as I spent time with physicians and our customers as well as our team in the field, I think more and more customers see us as an RF solution company, very dedicated in that area. There's companies with a broader different offerings in pain. but we're very focused on RF ablation. We have a 3-tiered offering, which I think also is very complementary to what physicians are trying to do when you look at our total portfolio. So given the fact that we're dedicated to the space, we've been in the space a long time, we now have the 3-tiered offering. And there's a lot of momentum there on the RF ablation side. And we see that momentum continuing. We're very pleased with the execution of the team in the field and the portfolio and the progress that we're making. So yes, we -- I would say, feel very good about it and feel good about heading into next year as well. And I do think because we are dedicated to the space. As you know, there's other companies that are doing -- have a broader offering, as I mentioned. But given the fact that we're so focused on it, people see us as the RF company, at least that's the takeaway I have from being in the field. And the offerings are really quite good in terms of having a 3-tier solution.

Yes. And I think from a numbers perspective, you can see 13.8% growth quarter-over-quarter for the RFA. And what we're seeing is with our increase in our generator sales, which is a great answer, we're also seeing material pull-through. So when we sell the generator, we're actually selling the higher-priced margin probes that we have. And we're seeing that not just with -- if you sell our generators, but we have people that keep those generators and they're continuing to buy from us. So again, that comes back to the sales team that's going out there servicing the customers and just being able to differentiate our products from what's out there.

Great. And just one last one for me. Again, on HA divestiture. I guess just how should we think about how this impacts the income statement longer term, specifically on the gross and operating margin lines? -- we appreciate that you reiterated the bottom line guide here and understand that there are some other moving parts for the rest of 2025. But as we look out further, what do you feel is more steady state without HA as far as the margin level looks like? Or is it pretty neutral given some of your initiatives that you have in place?

Yes. What I would say, Daniel, is when we looked at what was coming in the back half of the year, as we've mentioned to you that we were running the business more from a cash perspective. So we were trying to maintain the revenue. We were potentially lowering our sales prices to make the business work. So ultimately, when we look at the financials for the rest of the year, not a material impact on the bottom line when it comes to the HA divestiture. We're able to make up anything that we are losing there or on the revenue side with our strong strategic performance in those segments. So HA, not a material number that we're seeing all the way down to the bottom line.

Yes. The challenge in that business was not volumes. It was more price. And so obviously, from a profitability perspective, as we continue to see pressure on margins in HA, the impact there going forward from just EPS and EBITDA perspective is limited.

And no further questions that came through at this time. I'll now turn the call over back to David Pacitti -- I mean Dave Pacitti for closing remarks. Please go ahead, sir.

Yes. Thanks, everyone. Thanks for the questions today. In closing, I'm really proud of the progress Avanos has made in transforming our business as demonstrated by our hyaluronic acid divestiture. I'm generally pleased with our bright future, driven by the dedication of our teams and the vital role our products really play with our customers, which is great to see and really getting back to patients and back to things that matter. So we appreciate your continued interest in Avanos, and thanks again for the questions.

Thank you. This concludes our conference call for today. Thank you all for participating. You may now disconnect.