Haemonetics Corporation

Thank you for standing by and welcome to Humanetics Corporation's first quarter fiscal year 2025 earnings conference call. At this time, all participants are in a listen-only mode. After the speaker presentation, there will be a question and answer session. To ask a question during the session, you will need to press star 1 1 on your telephone. To remove yourself from the queue, you may press star 1 1 again. I would now like to hand the call over to Olga Gayet, Vice President, Investor Relations and Treasury. Please go ahead.

Good morning, everyone. Thank you for joining us for Humanetics first quarter fiscal year 2025 conference call and webcast. I'm joined today by Chris Simon, our CEO, and James Durecka, our CFO. This morning, we posted our first quarter fiscal year 2025 results to our Investor Relations website, along with our fiscal 2025 guidance. Before we begin, a quick reminder that all revenue growth rates discussed today are organic, unless specified otherwise, and exclude the impact of currency fluctuation and acquisitions. Our organic revenue growth guidance for fiscal year 2025 incorporates 15 weeks of revenue from opsense. due to the acquisition closing date being in December 2023. We'll also refer to other non-GAAP financial measures to help investors understand Humanetics' ongoing business performance. Please note that these measures exclude certain charges and income items. For a full list of excluded items, reconciliations to our GAAP results, and comparisons with the prior year periods, please refer to our first quarter fiscal year 2025 earnings release available on our website. Our remarks today include forward-looking statements, and our actual results may differ materially from anticipated results. Factors that may cause our results to differ include those referenced in the Safe Harbor Statement in today's earnings release and in our other SSC filings. We do not undertake any obligation to update these forward-looking statements. And now, I'd like to turn it over to Chris.

Thanks, Olga. Good morning, and thank you all for joining. Today, we reported first quarter revenue of $336 million, growth of 8% on a reported basis and 3% organically, and adjusted earnings per diluted share of $1.02, a 3% decrease from a strong first quarter in the prior year. The start of our fiscal year reflects the strength in the breadth of our product portfolio, our capacity for continued innovation and growth, and the resilience of our business to succeed in dynamic markets as we navigate ongoing geopolitical challenges. We advanced the delivery of plasmapheresis technologies proven to safely lower the cost to collect, reinforcing our status as the leader in addressing the industry's most critical needs. Our blood center solutions are enabling self-sufficient global plasma supply and helping meet increased demand for platelet therapies. In hospital, we are integrating recent acquisitions, launching new products, and extending our reach and relevance in attractive markets while delivering robust growth in the rest of the portfolio. Our results underscore Humanetic's ability to create significant value for our customers and our shareholders. We remain committed to accelerating revenue growth, expanding our margins, and enhancing productivity, and we are confident in our strategy for sustained profitable growth. Turning now to our business unit results. Plasma revenue declined 3% in the first quarter after growing 35% last year. North America disposal revenue was down 5% driven by CSL's planned transition. Excluding the transition and an unforeseen temporary customer Plasma Center outage, US collection volume growth was in the high single digits. North America software and Europe disposable revenue each grew double digits in the quarter. Strong end market demand for IG replacement therapies and the planned expansion of fractionation capacity across the industry support long-term growth in the plasma collection market. Near-term, customers have a heightened focus on lowering cost per liter. We have completed more than 30 million persona collections and have compelling real-world evidence of safe and consistent yield enhancements. Full market release of our Express Plus technology is now underway, significantly improving collection time, door-to-door time, and center throughput. We plan to upgrade the remainder of our Nexus customers to Express Plus and Persona before the end of this fiscal year. Our advanced technology is an enabler of profitable growth for us and our customers. We expect to gain additional market share in the U.S. and globally to continue to deliver revenue growth that outpaces the plasma collections market. We reaffirm our plasma revenue growth guidance for FY 2025 in the range of negative 3 to negative 6%. driven by the previously announced customer transition. Blood center revenue decreased 2% in the quarter. Apheresis revenue grew 3% driven by continued demand for plasma across several markets and red cell collection share gains in the U.S., partially offset by order timing among distributors. Whole blood revenue declined 14% as we continue to rationalize the franchise to optimize durable contribution as part of our company-wide margin expansion. The increasing focus on plasma self-sufficiency continues to drive international demand for source plasma. We are strengthening our global customer relationships to expand Nexus's reach. Our FY 2025 guidance for blood center revenue growth is unchanged in the range of negative 5, negative 7%. Moving to our hospital business, first quarter revenue grew 31% on a reported basis, including our newly acquired sensor-guided technologies, and esophageal protection device, and 13% organically. Our interventional franchise has been busy. The commercial team completed comprehensive training across our expanded product portfolio, swiftly adapted to evolving market trends, and ensured sufficient commercial and clinical support throughout our U.S. account network. We achieved 68% revenue growth on a reported basis and 19% organic growth. With training and integration largely completed, the team is focused on hitting individual product targets and selling the entire interventional technologies portfolio across both electrophysiology and interventional cardiology. Growth in the quarter was driven by continued penetration of the top 600 US accounts with our vascular closure devices and increased emphasis on utilization across addressable procedures. The limited market release of ASCADE MVP XL which features a 58% larger collagen plug, was a success, with very positive results across procedures and highly encouraging responses from early adopters. This new device allows us to successfully participate in the rapidly growing market of pulse-field ablation and increase adoption in procedures like left atrial appendage exposures, where we've seen minimal usage with Bescade MVP. With full market release underway and an ongoing development program to expeditiously expand the label to larger access points, we are further strengthening our leadership in enabling treatment of atrial fibrillation regardless of the ablation technology used. We are making significant progress internationally as well, having established our presence in over 100 accounts in Japan with further plans to enter additional European markets this year. We are strengthening our field for support to convey our unique clinical and economic benefits over the competition. And we expect to sustain 20% plus growth in the vascular closure business and further expand our leadership position in this 2.7 billion dollar market. Our newly acquired products delivered a total 18 million dollars in revenue, further accelerating growth of this franchise. It's early days, but we feel good about the progress we have made, and the business case for these acquisitions is intact. We are excited to launch SavvyWire in Europe in the coming months and extend the unique benefits of this guidewire to more patients by broadening our market access. We are also highly encouraged by the progress and positive feedback for Enzo ETM, with its considerable clinical benefits, including reduced esophageal injury during radiofrequency cardiac ablation, It presents a compelling market opportunity as a reliable, safe, and significantly more cost-effective alternative to emerging catheter-based technologies to safely and effectively treat atrial fibrillation. Our blood management technologies franchise also had a strong first quarter with 10% revenue growth. In the States, this management delivered double-digit growth in North America driven by strong capital sales and increased disposable utilization on the TAG6S platform. Our new heparin neutralization cartridge is helping clinicians serve fully heparinized patients and enabling deeper penetration into accounts performing adult cardiovascular surgeries and liver transplantation. Success in the U.S. was partially offset by geopolitical market challenges in China. Transfusion management benefited from new account openings for SafeTrace TX and BloodTrack in North America and EMEA. We invested in additional channel expansion and further enhanced the platform, positioning us to win share. Cell salvage also had an impressive quarter across all markets with additional upside from last time buy orders in our older generation device. We are excited about the opportunities ahead of us and expect growth in our hospital business to accelerate in subsequent quarters, driven by new product launches, sales synergies from newly acquired products, and improving efficiency of scale. We reaffirm our previously issued guidance and expect hospital reported revenue growth of 27 to 32%, and organic revenue growth of 13 to 16% in FY 2025. We expect a strong year ahead as we continue to refine our portfolio to drive sustainable revenue growth at attractive margins. For the total company, we continue to expect reported revenue growth to be in the range of 5 to 8%. and organic growth to be flat to 3% for FY 2025. Now, I'll pass it over to James to discuss the rest of our financial performance and fiscal year 2025 guidance.