LeMaitre Vascular, Inc.

based on our estimates and assumptions as of today, October 29, 2020, and should not be relied upon as representing our estimates or views on any subsequent date. Please refer to the cautionary statement regarding forward-looking information and the risk factors in our most recent 10-K and subsequent SEC filings, including disclosure of the factors that could cause results to differ materially from those expressed or implied. During this call, we will discuss non-GAAP financial measures, which include EBITDA and non-GAAP outstanding debt. A reconciliation of GAAP to non-GAAP measures discussed in this call is contained in the associated press release and is available in the investor relations section of our website, www.lemaitre.com. I'll now turn the call over to George Lemaitre.

Thanks, JJ. On today's call, I'll review COVID's impact on our company as well as Q3 sales and profits. In light of the recent escalation of COVID, we must redouble our commitment to the health and safety of our employees. We now know of 12 employees who have contracted the virus. Ten have recovered, and we await word on the most recent cases. In addition to requiring masks and temperature checks, in September we provided distance-sensing watches to all Burlington employees. The watches beep when employees are six feet apart, saving this information for future contact tracing. In Q4, we'll expand this watch program to our three other production facilities and our European headquarters. Perhaps due to these safety measures, we're currently experiencing no manufacturing or logistical issues due to the virus. 95% of our production personnel have remained on campus throughout, and approximately 50% of our administrative personnel have returned. While elective surgeries have recovered for now, the job description of a sales rep has changed in the time of corona. Access to hostels and surgeons' offices has been restricted. Visits often require an advanced appointment or invitation and adherence to other safety measures like temperature checks. Like all of us, sales reps have leveraged available email and video technology, but there are limits to this. And with another COVID wave upon us, we expect rep access to continue to be challenged. As to our financial results, we posted sales of $36.4 million in the quarter, up 25% versus Q3 2019. Geographically, sales were up 37% in the Americas, 12% in Asia Pac, and 6% in Europe. The three recent acquisitions, Artigraph, CardioCell, and EasySight, and the return of elective surgery drove growth in Q3. These record sales, combined with headcount reductions, produced strong bottom line results. We generated $10 million of op income in Q3, EBITDA of 12.6 million, and EPS of 37 cents a share. With that, I'll turn the call over to JJ.

Thanks, George. Gross margin in Q3 was 62.3%, down from 69.3% in Q3 2019. The decrease was driven largely by autographed purchase price accounting, as well as manufacturing inefficiencies. We do expect a rebound to 65.5% in Q4, as autographed accounting normalized it. Operating expenses in Q3 were $12.7 million, down 11% versus Q3 2019. The decrease was driven by reduced selling and marketing expenses, down 31% year over year. Fewer reps, fewer trade shows, and less travel drove the decline. Manufacturing transfer costs also declined as the factory integrations of OmniFlow and Sintel were completed in Q2. Operating expenses also benefited from a $470,000 gain on the sale of our recently closed OmniFlow manufacturing facility in Australia. It seems like Q3 is an operating expense low watermark, and our guidance reflects this. We reversed COVID-related salary reductions on September 1st, and we are cautiously hiring more sales reps. The newly acquired Artograph product line is performing above expectations and generated $5.4 million in Q3 revenue and $950,000 of operating income. Our Q4 guidance includes Artograph sales of $5.6 million and an EPS contribution of 5 cents per share. We ended Q3 2020 with $34.4 million in cash, an increase of $9.3 million versus Q2 2020. increase was driven by $14.1 million of cash from operations, $2 million from the sale of our Australian building, and $1.2 million in stock option exercises. This strong cash generation enabled us to repay $4.5 million of our autographed acquisition debt, and we ended the quarter with a debt balance of $60.5 million. You may recall that we experienced CD mark issues with some of our devices recently, including Dacron grafts and bovine patches. We are pleased to report that in Q3 we received temporary authorizations allowing us to sell the grafts and patches to at least Q4 2020 in 12 European countries. Any impact related to this issue is included in our Q4 guidance. At the midpoint, our Q4 sales guidance represents an increase of 19% versus Q4 2019, and our Q4 operating income guidance represents an increase of 70%. At the midpoint, our Q4 EPS guidance of 30 cents per share represents an increase of 32%. With that, I'll turn it back over to Laurie for any questions.