Financial Data and Key Metrics Changes - In Q1 2025, the company's revenue was $879 million, representing a decline of 7.7% year-over-year. Organic sales decreased by 4.4%, impacted by a negative 4% BiTE effect [23][24]. - Adjusted EBITDA margins expanded by 220 basis points, benefiting from lower operating expenses and transformational savings [25]. - Adjusted EPS for the quarter was $0.43, up 3.7% from the prior year, primarily due to higher adjusted EBITDA margins and a lower share count [25]. Business Line Data and Key Metrics Changes - Essential Dental Solutions segment saw organic sales increase by 0.4%, driven by growth in Europe and the rest of the world, despite lower volumes in the U.S. [26]. - Orthodontic and Implant Solutions segment experienced a significant organic sales decline of 17.7%, largely due to a negative BiTE impact and a loss of a DSO customer in the U.S. [27]. - Connected Technology Solutions segment had a slight organic sales decline of 0.5%, primarily due to CADCAM declines in the U.S., although imaging performance grew across all regions [28]. Market Data and Key Metrics Changes - U.S. organic sales declined by 14.9%, primarily due to a negative 9.8% impact from BiTE, while imaging growth was noted [30]. - Europe saw organic sales increase by 1.1%, driven by strong performance in Germany, which posted growth for the second consecutive quarter [33]. - The Rest of World segment experienced organic sales growth of 3.1%, with notable growth in imaging and WellSpec in China [34]. Company Strategy and Development Direction - The company is focused on driving reliable and sustainable performance, emphasizing customer-centric product innovation and operational efficiency [7][10]. - The strategy includes enhancing the digital ecosystem through the DS Core platform, which has gained traction with over 42,000 unique users [14]. - The company aims to improve customer engagement and experience through revamped websites and a new e-commerce platform [19][20]. Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges posed by global trade situations and tariffs but expressed confidence in the company's ability to navigate these risks [6]. - The outlook for 2025 remains unchanged for organic sales and adjusted EPS, with reported sales revised to reflect foreign currency changes [12][35]. - Management noted stable patient volume and procedure utilization, despite some concerns among U.S. dentists regarding economic conditions [11]. Other Important Information - The company is actively managing its balance sheet and has taken steps to strengthen its position, including entering into a bridge loan agreement [25]. - The company has completed the closure of 10 manufacturing and distribution sites as part of its supply chain optimization efforts [23]. Q&A Session Summary Question: Can you expand on the tariff impact? - Management indicated that tariffs have been factored into guidance, estimating a $0.10 impact, with an annualized exposure of about $50 million [47][48]. Question: Update on the CFO search? - Progress is being made with several candidates in the late phases of the process [50]. Question: Insights on the orthodontics side? - Management noted the need to reengage with the orthodontist community and improve user experience with SureSmile [56]. Question: Context behind EBIT margin? - The improvement in Q1 EBIT margin is seen as a reasonable run rate for the rest of the year, with a focus on judicious SG&A management [62]. Question: Cash flow and CapEx expectations? - CapEx is expected to improve as ERP projects roll off, leading to better free cash flow [107].