LeMaitre Vascular, Inc.

Welcome to the Lemaitre Vascular Q2 2024 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 for Lemaitre Vascular. Please go ahead, sir.

Good afternoon, and thank you for joining us on our Q2 2024 Conference Call. With me on today's call is our 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, August 1, 2024, 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 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.lemaitre.com. I'll now turn the call over to George Lemaitre.

Thanks, JJ. Q2 was an excellent quarter, featuring 12% organic sales growth and 44% EPS growth. I'll focus my remarks on our top line, Salesforce, and the MDR CE marks. Our 12% organic growth in Q2 was broad-based, with seven of our 12 product lines posting records. RestoreFlow allografts were up 30%, bovine patches 12%, and shunts 22%. APAC was our strongest region again, up 20% thanks to Thailand and Korea recently converted direct markets. EMEA sales were up 13% in Q2, while the Americas were up 10%. Two of our larger subsidiaries continued to excel in Q2. Canada was up 33%, and the UK was up 27%. Both benefited from exceptional restore flow growth. We added seven reps in Q2, ending the quarter with 144, and we're now targeting 155 to 160 at year end. This mid-year expansion is largely about North America, where the territories remain too large. As for our international sales offices, we continue to hire staff into the new Paris office, and we've begun scouting for an office in Zurich. We also continue to evaluate go-direct opportunities in Europe, including Portugal, Czechia, Poland, and Greece. Turning to regulatory, since our last call, we've received 11 more MDRCE marks, bringing our total to 14 of the 22 approvals we're seeking. These eight remaining CE marks should be received in 2025. Some analysts believe that only 70% of all MDD-cleared devices industry-wide will eventually receive MDR CE marks. Europe's regulatory barriers have been raised, and it's allowing us to capture share. As an example, we now have approximately 90% of the European chunk market due to BARD's CE-driven exit. One of the CE marks which we expect to receive in 2025 is Autographed, our largest American product. We have also submitted Autographed applications in Thailand, Malaysia, and Singapore, and we plan to make filings by year end in Australia, Canada, and Korea. Bringing this device to international markets was a key consideration at the time of the 2020 Autographed acquisition. With respect to RestoreFlow, We now believe our Irish and German approvals will be received in 2025 and 2026, respectively. RestoreFlow needs to be approved by each individual country, as there is no pan-European approval. We currently have approvals in just three countries, the U.S., the U.K., and Canada, where the combined sales CAGR has been 23% since the 2016 RestoreFlow acquisition. I'd like to welcome back analyst Jason Wittes of Roth Capital, who reinitiated coverage in May of this year. In 2014, Jason initiated late coverage while at another firm with an $11 target and three headlines, owning the niche, disciplined acquisitions, and international expansion. To conclude my remarks, 2024 is shaping up to be another year of healthy sales and profit growth. With that, I'll turn the call over to JJ.