Financial Data and Key Metrics Changes - Total revenue for the first quarter of 2025 was $112 million, representing a decrease of 5.2% in reported rates and a decline of 4.1% in constant currency [18] - Adjusted EBITDA was $17.6 million, translating to a 15.7% adjusted EBITDA margin, reflecting a 41% increase year-over-year [21] - Adjusted earnings per share attributable to continuing operations was $0.27, a 238% increase from $0.08 in the prior year [22] Business Line Data and Key Metrics Changes - Dental implant sales declined low single digits in Q1, consistent with the overall market performance, but showed improvement in March and April [9][10] - Biomaterials portfolio grew just over 1% during the quarter, reflecting ongoing investments in innovation [12] - Digital dentistry business, excluding oral scanner sales, grew high single digits, with the implant concierge service growing 11% year-over-year [13] Market Data and Key Metrics Changes - U.S. net sales were $65.8 million, a decline of 2.8% compared to the prior year, driven by lower implant sales and oral scanners [18] - International net sales were $46.2 million, a decrease of 8.5% on a reported basis, impacted by lower implant sales and headwinds from various factors [19] - The company emphasized a focus on the Japanese market, which is seen as a significant growth opportunity with a healthy premium implant market [43] Company Strategy and Development Direction - The company is focused on improving and streamlining manufacturing and supply chain processes, reducing corporate infrastructure, and refocusing on proprietary premium products [6][8] - A strategic acquisition of a distributor in Costa Rica aims to enhance local market presence and reduce third-party selling costs [15][23] - The company plans to continue prioritizing debt reduction while remaining open to opportunistic acquisitions [24] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the dental market's resilience and the potential for growth in dental implants, which are still considered under-adopted [68] - The company anticipates a moderate market recovery and successful execution of commercial strategies in the latter half of 2025 [25] - Management is confident in their manufacturing capabilities and flexibility to mitigate tariff impacts [59][61] Other Important Information - The company has incorporated the estimated $3 million annual tariff costs into their guidance and has plans to mitigate these costs [6][25] - The company reiterated its full-year 2025 revenue guidance range of $445 million to $460 million, reflecting a potential decline to moderate growth [24] Q&A Session Summary Question: Can you provide more details on the uptick in implant units sold in April? - Management noted that April showed resilience with improvements in same-store sales and the success of the new immediate molar implant launch [31][32] Question: What is the current pricing trend in the dental market? - Management indicated that the premium implant market has been less price competitive, allowing for selective pricing strategies to offset tariff impacts [34][36] Question: What are the reasons for the greater decline in international sales compared to the U.S.? - Management highlighted several headwinds affecting international sales, including foreign exchange impacts and a focus shift away from China [40][41] Question: What is the opportunity size for the implant concierge service in Japan? - Management believes the implant concierge service could significantly enhance revenue growth in Japan, improving workflow and accelerating implant adoption [43][44] Question: What actions have been taken to strengthen the supply chain? - Management expressed confidence in their manufacturing capabilities and flexibility, having moved significant operations to mitigate tariff risks [59][61]