LeMaitre Vascular, Inc.

Welcome to the LaMate Vascular Q4 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. J.J. Pellegrino, Chief Financial Officer of LaMate Vascular. Please go ahead, sir.

Thank you, Vanessa. Good afternoon, and thank you for joining us on our Q4 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 risk 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, February 24, 2022, 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 organic sales growth. 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.lomate.com. I'll now turn the call over to George Lomate.

Thanks, JJ. On today's call, I'll cover three topics, Q4 sales, the impact of Omnicron, and finally, our continued headcount growth, including sales reps and production personnel. Sales were up 5% to $39.5 million in Q4. Sales grew 8% in the Americas and 1% in Europe, while APAC was down 3%. Artographed and Xenosure led Q4 sales growth. Artographed sales were up 16% year-over-year to $6.4 million, and we posted record ZenaShare sales. We believe Omicron and associated staffing shortages decreased sales in Q4 as hospitals deferred elective surgeries. At Lemaitre, about 10% of our 450 employees contracted the virus in the last three months. As a result, we implemented additional safety measures, including work from home, free rapid tests, free N95 masks, and $100 booster bonuses. Also for a second straight year, our January sales kickoff meetings were virtual. About 95% of our employees are fully vaccinated and will soon offer on-campus booster clinics. We're currently at a high watermark of 498 employees with most of the increases coming in sales and production. We have 107 reps on payroll today and will likely be adding another 10 in H1. In manufacturing, we continue to hire as we recommit to no back orders and combat any potential supply chain issues. Today's 177 direct labor employees is also a high watermark. Internationally, we continue to grow our sales footprint and our facilities. With the recent hiring of a Korean country manager, we expect to open a Seoul office in Q2. This will enable us to sell Zenasher in Korea in 2022 and most other products to follow in 2023. Korea will join Japan, China, Australia, New Zealand, Singapore, and Malaysia as our seventh direct market in APAC. Korea was our second largest distribution market in 2021. In 2021, we also expanded our warehouse and office facilities in Japan, Italy, and England to ensure adequate product supply and timely delivery. Notably, we installed a cryo-freezer in our Hereford, England facility and in Q1 received UK tissue bank approval for our allografts. The UK will be our third country with an allograft approval, joining the US and Canada. Deliveries to UK hospitals should begin soon. Despite increased headcount and Omicron challenges, we posted a 21% Q4 op margin and end of the year with $70 million of cash. We also increased our dividend for the 11th straight year, underscoring Lemaitre's focus on profitability and cash generation. As you've seen, we like to use this cash for acquisitions, dividends, and distributor buyouts. I'll now turn the call over to JJ.