LeMaitre Vascular, Inc.

Welcome to the LeMaitre-Vascular Q2 2023 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 LeMaitre-Vascular. Please go ahead, sir.

Thank you, operator. Good afternoon, and thank you for joining us on our Q3 2023 Conference Call. With me on today's call is our President, Dave Roberts. Our CEO, George LeMaitre, is not feeling well and will not be on the call. 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, August 1, 2023, 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 organic sales growth, as well as operating income, operating expense, and EPS excluding special charges. 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.limate.com. I'll now turn the call over to Dave Roberts.

Thanks, JJ. Q2 sales grew 19% on a reported basis and 16% organically to a record $50.1 million. Growth was spread across all products and geographies. Our five largest products led the way. Bovine patches were up 16%, valvulotomes 18%, bovine grafts 13%, carotid shunts 22%, and allografts 18%. By geography, EMEA was up 26%, APAC 21%, and the Americas 16%. All three regions set records. We continue to benefit from two macro tailwinds in the quarter. Hospital procedure volumes have remained strong as COVID fears have diminished, and this helped drive 7% unit growth. Also, the best CLI trial results may be contributing to valvulatome growth. This trial demonstrated the superiority of surgical vein bypass over endovascular intervention as a first-line treatment for critical limb ischemia. Indeed, valvulatomes were the product most responsible for our 9% blended ASP increase in Q2. We ended the quarter with a record 133 sales reps, 20% more than a year ago. In retrospect, our 2022 rep surge seems well-timed to support our 2023 top-line growth. We plan to end the year with 135 to 140 reps. Three of those reps will be in Thailand. We just opened our sales office. In the next 12 months, we expect high sales of $1.5 million. Including Bangkok, we now have sales offices in 13 countries and sell direct to hospitals in 29 countries globally. Regulatory approvals should also drive international growth. In Japan, we recently received approval for Zenasur with a carotid indication. and sales have now begun. Approval of Xenosure with ephemeral indication drove growth there for the last three years. The new carotid indication may have similar potential. In China, we expect to receive Xenosure cardiac approval in 2024 and peripheral approval in 2025. In Europe, we expect to receive our Allograft approval in either Ireland or Germany in 2024. Finally, in Europe, we also expect to file for CE approval of Artagraft this December. With that, I'll turn it over to JJ.