LeMaitre Vascular, Inc.

Welcome to the LeMay-Vascular Third Quarter 2021 Financial Results Conference Call. As a reminder, today's call is being recorded at this time. I would like to turn the call over to Mr. JJ Pellegrino, Chief Financial Officer of LeMay-Vascular. Please go ahead, sir.

Thank you, operator. Good afternoon, and thank you for joining us on our Q3 2021 Conference Call. With me on today's call are our Chairman and CEO, George LeMaitre, and our President, Dave Roberts. Before we begin, I'll read our safe harbor statement. Today, we will make some forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995, the accuracy of which is subject to risks and uncertainties. Wherever possible, we will try to identify those forward-looking statements by using words such as believe, expect, anticipate, pursue, forecast, and similar expressions. Our forward-looking statements are based on our estimates and assumptions as of today, October 28, 2021, 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. 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.lamate.com. I'll now turn the call over to George Lamate.

Thanks, JJ. On today's call, I'll cover three topics. Number one, Q3 sales of $38.4 million were up 5%. Number two, the impact of the Delta variant. And finally, number three, Our progress rebuilding headcount and the sales force. Sales of 38.4 million were up 5% versus Q3 2020. Sales grew 5% in the Americas, 5% in Europe, and 16% in APAC. Autograph, allografts, and valvetomes led sales growth. Autograph sales of 6.3 million were up 15% year-over-year. We also posted record bovine carotid patch sales as Zenasur's CE mark issues resolved in Q3 and our Japanese launch showed momentum. Biologics comprised 49% of our sales in Q3. Due to the Delta variant, many hospitals deferred elective surgery and prioritized COVID treatments. The variant may also have caused patients to defer procedures. From a personnel perspective, 43 employees have been infected since the pandemic began. Approximately 85% of our employees are fully vaccinated, and we await OSHA guidance on the U.S. vaccine mandate. As of today, we have 103 sales reps on payroll, with six more offers signed and 17 more territories being recruited. Soon, we will surpass our high watermark of 112 reps. With 440 employees on our payroll, we are now back to pre-COVID levels. Partly due to the competitive hiring landscape, We recently instituted an across-the-board $20 minimum wage for our North American employees, and we increased our North American entry-level sales rep pay by about $10,000 a year. Hiring picked up in September and October, possibly due to these two changes. Despite the chaotic environment of the last 18 months, our business is emerging stronger and more profitable, and our business plan remains unchanged. We're growing our sales force, maintaining high op margins, generating cash, and investing in acquisitions. I'll now turn the call over to JJ.