LMAT - Earnings call transcript Q2 2020

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Operator

Welcome to the LeMaitre Vascular Q2 2020 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.

Joseph Pellegrino

Josh. you, Thank thank XXXX and joining on us Good call. you QX conference our afternoon, for With call on and me today's our George and President, LeMaitre; CEO, Dave Roberts. are our Chairman

statement. forward-looking Wherever I'll which to our those forward-looking begin, to is by within of Reform subject Securities meaning possible, risks words try such U.S. the will identify the Act we Before of statements Safe Harbor XXXX, we make using Today, will read statements believe, forecast some Private Litigation uncertainties. anticipate, expect, the and and we accuracy of expressions. similar as pursue,

from risk use forward-looking today, could any refer Please forward-looking the statement on July recent the Our be and subsequent the our regarding of cautionary and to disclosure XXXX assumptions results SEC of and cause should factors not to as representing expressed based on are XX-K information XX, as of relied in date. estimates most statements including materially upon or filings, and implied. estimates our those subsequent that our factors the differ

this as LeMaitre. www.lemaitre.com. During this now discussed measures website, operating as discuss we Relations reconciliation over A and which financial in turn to related of income release acquisition available excluding charges. well EPS, certain associated on the press adjusted section growth and George I'll sales in GAAP call, is include organic measures, to non-GAAP our will the numbers call is contained Investor in call the non-GAAP

George LeMaitre

tested will like most known COVID, of employees report. related are the Artegraft positive our five the fully my on discuss on JJ and discuss we await results. I'll QX Dave focus issues call, LeMaitre’s first. today's and and have recent Six will topics. to QX to guidance while address On remarks recovered for JJ. Thanks, health I'd news and acquisition, XXX COVID have

in the recently LeMaitre’s employees our the have has remotely, devices our and and to switch I'm pandemic and humbled sacrifice, travel most wristbands. the a surgeons, making. has workplace, perspective, our temperature significantly, have geography, by I two reduced and continue and By procedures implemented surgical and sales effort Despite QX which life- similar changes see distance dedicated tracing including sales wearing, workforce working shifts, By our down employees XX%. limb-saving sales Americas restrictions, were grateful and Africa many Middle to story we've sensing fortunate the in was worldwide. by all products XX%, patients are declined distancing, been that QX. in and to mask a product, XX%, a Europe, in respected We as East, supply was to Asia-Pac social to by able declined the nearly hospitals, flat. the while From pandemic, checks,

and in XX% X% down were sales in in XX% quarter, the May June. Within up down April,

are patient hesitant deferred hospital old, were most age our products to but susceptible patients core used or QX, to only in canceled group Our generally the setting. Not elective surgeries was in over most the XX enter likely COVID. years

pre-COVID not corporate staying than in month that unclear estimate May, happen the will been visitors made hospitals remains hospitals per that away was visits have hospital welcome our from have needed and and July reps total into Prior many total policy to we reps in X, It go did. America sales Our Europe also of a from combined. North become to and I'd days. QX. approval what the in of less in April in RSM XX as crisis height At

rep the of answer the impacted distributed. has job Suffice in normal how affected USA will widely until Our two. to and normality, less is certainly North European about remains number be bit seem reps of the a whereas be back welcome vaccine America, getting they perhaps operating to and device it to by that hospitals be some is semblance sales activity, say been a will of significantly in medical wave it description unclear a XX%

profit the as we we we early half As know responded organization are the oriented would the declined bottom pandemic during of We of aggressively honestly a stage and saw in the XX% April. where did you not know, first sales be.

$XX the we’ve of downdraft basis, QX operating base XX% these and implemented down reduced million, combined result, temporary a reductions As headcount, year-over-year. On expenses natural a reduced salary expenses. benefited to adjusted down from

line has our acquire dividends, additional insights debt-funded into employee raise enabled to quite he this XX%. some As bottom XXXX. This adjusted our versus north in QX margins time. salaries. point, the income operating a so our turn operating by and QX result, it QX you pay Delivering our was profits shareholders Healthy allow been increased X% a our can margin on companies, to important acquisition. over solid In times, for XXXX, Artegraft I'll star normal us give Dave, At transaction. focus to this

David Roberts

Thanks, for payments On George. $XX.X earnout in $XX.X cash, potential we plus XX, Artegraft million June million. acquired of

took end to from the on they of the million. the sales Artegraft's that million. access hospital continue ended the pre-COVID terminated LeMaitre’s estimate were acquisition, grew product sells carotid Prior sales and to the through after XX same Artegraft through XXXX. year. XX% were XX, sold only offering. reps, unit biologic For May arteries. We approximately cornerstone June level days distributors is the on XX, closing. We for of sales The Artegraft dialysis now U.S. period. that it's July in device and X, for to months processes the in whose in six focus were will were estimate sales the through XXXX line units XXXX vascular Artegraft period, $XX sales sold grafts $XX.X contracts bovine independent trade $XX.X and XX% million derived We Artegraft’s in be

gross remainder Pre-acquisition, least expect its LeMaitre. we to had and carry operating that margin gross due Artegraft of we Artegraft's margin XXXX, With the XX% approximately manufacturing continue that Artegraft's margin years. of margin the For that, accounting. for a a of Artegraft's New of XXXX, facility In to X.X gross call turn I'll deal, of to we contribution to the JJ. Jersey LeMaitre of terms purchase roughly will expect operate to to over XX%. Through approximate in at exceed

Joseph Pellegrino

Dave. Thanks,

Given items. sequentially the to I significant the pandemic like to In is impact of particular, results think than I COVID-XX it our more compare year-over-year. on would financial touch following results, the on pertinent rather

XXXX. Our impact February on decrease April, in XX% as well salary our temporary QX these expenses results, and as QX $XX.X In were results per programs total, finally, QX $X.X Decrease expenses operating QX sheet, reduction the initiated a our approximately program operating month. was and of in our Artegraft guidance. balance by driven by our million, QX and financial versus million April. layoffs decreased

were In rep addition, entertainment QX light. as well travel commissions understandably and sales expenses as

million, income QX reduced acquired amortization per Artegraft income costs or in revenue GAAP $X QX and was net product $X.X million one-time expenses, increased versus The XX% line generated QX $X.XX XXXX, operating XX%, XX%. $X.X $XXX,XXX XX% income As from operating incremental approximately operating increase a and by million newly QX in EBITDA QX increased to result, Artegraft our sequentially. XXXX a our and was sequential in QX. share. in Net margin in acquisition-related Including

million minimis. fund $XX our of the million with and used the rate $XX We $XX.X five is fully ended drawn interest we To $XX the of the million $X.X own Artegraft Excluding XXXX years. million and and revolver. transaction, a current acquisition-related form of term loan QX one-time was $XX impact borrowed of cost, and debt. million cash term million in de in the EPS The X.X%, is the loan a cash

body. driven interest At expense the million of sales guidance COVID for per principal and represents in midpoint, approximately recovery quarter sales next assumed sequential related notified of new assumed and by a increases to $X.X This Mark is declines year. to CE QX increase million These expect $X.X as to hospitals to per million reopen. million to offset be a versus our by transitioning $XXX,XXX are QX continue We $XXX,XXX the in Artegraft partially a increase be approximately QX. delay $X.X $X.X quarter payments our sales largely of

the an companies from many effectively one Marks. XX device without LRQA, recall, and notified you business, other exit leaving As CE us three our made of bodies, of our marketing CE abrupt

million categories. operating income of TUV in well full versus inclusion have patch a by salary graft guidance $X.X number XX% or quarter of Artegraft-related in our of reobtained as And employee the for subsequently in we body, these midpoint, QX bovine XXXX. expense process the income is guidance. expenses. Increase increased partial elimination included increase of profit in from in $X.X year-over-year will XX% increase reductions application At We Mark that SUD. increased QX QX are gross represents our operating million, of represents the This QX. operating the of the a in approximately We QX notified commissions. selling a sequential CE a reduce issue CE QX increase estimate with million and and a operating driven issues sales devices. of $X.X principally is Dacron as expenses million additional increase result by new the The the is Marks remaining QX in $X.X

expect reduced XX%. to $XXX,XXX reduce we be we op by and Artegraft and gross interest margin. QX, to is accounting. the add margin QX for corporate QX, $X.X income The approximate we gross to income million our approximately the by expect net due to expect Artegraft be As QX margin $XXX,XXX sales In expense. gross of temporarily to approximately margin After purchase Artegraft, gross

questions. Artegraft LeMaitre long-term. Dave operating similar margin for margins the that, turn Josh we I'll With gross to As mentioned, over to and the contribution it do expect have in to

Operator

comes [Operator you. with Genuity. Thank first Our Instructions] Cecilia Canaccord question Furlong from

proceed may question. your You with

Cecilia Furlong

ramping shift you're you're the bringing thinking expectations I How a cadence direct for And the sales your about then And to guess fully really forward. wanted a taking longer-term distributor really about near-term view model Thanks you on our Hi. just terminations? your in-house, impact from but how standpoint? start under full thinking umbrella? it's sales it going the question. Artegraft, I to how the really once just shift, from

David Roberts

Thanks Cecilia, Dave. it's Yes. for Hi, those questions.

have closing. discussed their gone independent whose terminations distributors, terminated contracts sold roughly five generally the would smoothly. Artegraft units days say following of we XX% the were through the in as those So on call, I had

know, we've plus They we're not Artegraft's all sold we, acquisition from the you being their channel. part them. inventory the out as Sales. of of sales That might VP said, in of of received the as some of have it that six sure reps hired back Although,

and the reps, sales reps, let's while LeMaitre from year, call bounty all Starting a continue on getting be the selling will year, next Artegraft XX entire X be those to the the but bag, or so, remainder roughly through we sales. sales expecting bonuses of will expect U.S. U.S. LeMaitre product reps so to the just we're of the selling them sales sales Artegraft selling individuals bag. this be January the in And the legacy Artegraft

think is XXXX will. we a back if So half you the transition of period,

not $XX as for expecting a in obviously, breaking XXXX, just, is And except, – of quarter, because in of really sales on are $X.X million we really revenue. And me, talking we're I to excuse appreciate, As you from this say down COVID. difficult tight cadence, make sales projections time can dollars then in Artegraft. by we're XXXX about million or QX, would

going. like so for to useful all And we guideposts – some would where business instinctive felt give be you see we it the but

about say cadence would say the that's can I what So at we moment.

Cecilia Furlong

just indirect and you, beginning and thinking Artegraft the Artegraft sales up about product just pull-through following bag now bring going curious Thank impact point, you're your guess the the going you're of and XXXX direct strategy cross-selling to really from your sales I'm how I broad really that reps on opportunities. in and thoughts in Artegraft how on around with forward, Great. David. kind

David Roberts

We're ProCol, our cornerstone in know, is Right. really question, to say you of access graft access. I good it allografts. Artegraft's. question. for Implicitly, of product We It's Artegraft would obviously, is grafts the dialysis have as and And delighted like types becoming is access offerings. Artegraft, the the product some even a the LifeSpan dialysis other U.S. bag. the sell of a for in LeMaitre's

So I would those. say competes Artegraft sort with of

But in offer, that procedure. dialysis maybe per graft is who one specifically products Artegraft use only to learn other surgeon interested using given the access we about a space. You'd

de line AnastoClip which creation fistula think, our as used in of to as embolectomy product I and well the fistulas. catheters, particularly grafts used are clot

which are there could So products, same complementary procedures. some or be on used nice different the

whom XXX-plus we we're Artegraft had certainly, were in customers I'll many LeMaitre hopeful some some And that we so whom the could U.S. over time, customers, see of of not. add pull-through. – that that were but

for some these for door time, to be And And a complementary selling so maybe, opener this start opportunity over then us. we an see products. of

Cecilia Furlong

color. Great. Thank the for you

David Roberts

You’re welcome.

Operator

from Stifel. Thank you. comes Instructions] question [Operator with Wise Our Rick next

You may proceed with your question.

Andrew Ranieri

It's Hi Ranieri for question. Rick tonight. Drew guys. taking for Thanks the Thanks. on

Just back to you XXX% start are you sense you seeing volumes now? maybe as expecting areas or steady-state they terms of to are talk more kind second to running pressure XXXX a are that of your Are getting where of the of kind yet? in from vascular in some of of And thinking what volumes, terms country we're surgeon their resurgent levels? levels half in the or customers, pre-COVID procedure near

George LeMaitre

Okay.

it I'm a that we about sales was of So you, try questions the Drew, procedures, part to very in second have that this May, the When X% in happens word a lot here, June felt talking in very But U.S., talk all that I country. is know. answering was below going don't I perspective not procedures about I'm localized question, What It George. wave you cadence We're think take answer got bad to what happens question. and next What northeast got that There's there. in gave that our it our and I X% I'll happens we I terms of nervous the in something better it our It like like was other people. really from in U.S. we to see, want June. normal, okay use this, procedures. of that And your and the April. the to above on in of next? kind about given in those about heard really normal,

trying the there's know April for know help reps watch So some decreased other that. In were ask a between us surgeons. surgeon that's they and now these the But May. the on of was on pressing the good the And and shipping. about all I invitation course, the and to of pretty and rep in that their been point can't talk call there here end case. sales what think, get is past, be into all our reps and now the phone June some have we to in and discussing the interaction as a way typical case markedly that's today in surgeons And will procedures to an now results, possibility a come part We the is I is one. and made job hospitals, case, a we're the sales reps interaction or just how cases missed catch-up with we for doing of it's present the more of much will do to basis.

And lot less so on, lot a about now going you have answers a that what's I of information questions. hope your but

Andrew Ranieri

yes, Yes. kind – It of was and just helpful sure.

Joseph Pellegrino

this is more a give little JJ. color, just to Drew,

the So just on our that but sales. million QX sequentially about of guidance. based of It's in if increase a to guidance, will. Artegraft, in is $X.X $X.X bounce, million $X my in million COVID so comments, $X.X I you million sort another our is mentioned

have do we to resurgence somewhere, there some there's of in our we guidance, a maybe anywhere optimism built that take bounce. So of may but be think as answer. be I certainly there, that in be will And some, else there into we terms in think a some aware Europe much but as

Andrew Ranieri

Got it.

you're your you're procedures states just they of or with an and to COVID you're manage Or just see seeing this a curious Are But recovering. they somewhat if able on increases. of that? being down? influx able I to – able they step Are through kind able volume? certain second about case if to to were of any do seeing customer patients that for optimistic in, resurgence So hear get sticking topic a taking a them level you keep to just

George LeMaitre

Right.

X don't want of to asking. and let's this know X, call July, not that's or I exactly is so you're of talking as into all July it. And about I sort what new get But

So last this we terms, going piece here. about talk happened to is say to I new is in But that that will what the in June us. stuff general be

Andrew Ranieri

sales And recovery, like Got just sales more and your reps per Should maybe It but not in to XXXX, just about calls. on thinking been you recently XXXX just year? procedure adding in volume participating at it. hiring as and about how seems lastly, and get the any thinking talking kind we of beyond? think mean, force. recovery, five I And force you on be ahead you've back even profitability you are look ahead

George LeMaitre

safe what a always do think stay. We'll sales-driven That happens. to to going organization. be of we've But sort thought out a place were figure have maybe to we I

this a strange for a So us of is in. bit place to be

we going right time a maybe would discovered change it's this for got I distributed think And a I things is and I to once say in vaccine six it right months. change widely, now, here but lot. think clearly

Andrew Ranieri

Thanks guys. for questions taking the

George LeMaitre

Drew. Thanks

Operator

you. Thank

Our with Lake O'Neil Street next question from Capital. Brooks comes

with proceed question. your may You

Brooks O'Neil

afternoon. you. bit David, talk Thank little I Good just about a a you have couple. could this. maybe

to the with away? that distributor Artegraft, regard of it your business? What just some XX% What Does arrangements, in are your your you expectation Artegraft. sales? to the On that's pick of sales the direct is it Do of you termination thinking? up hope go

David Roberts

very to offer would sales I base graft. that one consistent, majority a of say is is history of are our products like that in a would to xenograft has of There also But group dedicated Brooks, PTFE pick with Artegraft the customers. mentioned, product building which I stable vast a fairly products, I used. a had we competitive a allografts of Cecilia we ones LifeSpan, world. ProCol, There're expect it. say long competitive are consistent, up like, a

relying So to that. we're on going I think be

Sometimes I'm go this some far, it will smoothly. generally the exit, distributors, that I hoping have generally as will they say, has. so shenanigans. would

So reason year is $XX.X why we're expect most which we'll have revenue, call that of saying about were Artegraft million we're do XXXX. sort But of at at to at be June and year we'll of the million of advancing And XX sales year it, more, capture the but month. or the a see. XX, ended hospital. part a We May we'll think ended of the let's that revenue I $XX million The for $XX revenue. by

be think most that. I So we ought to capture to able of

Brooks O'Neil

good. then you That's historically And is a too think funny. Okay. focused on guys high-return you slightly just in don't your question. Hopefully, generating a on capital invested different have business. But this obviously,

You've done and impact do job the terrific Artegraft acquisition that you longer of maybe a How the of on about the metric in short think the that. term?

Joseph Pellegrino

Yes. this question. the so Thanks Brooks, for JJ. is

debt equity, that be net nice it So has generally impacts. in down. I depending as sort in denominator, then to you in want well, that different and income know the increase of the time, include if and short-term, you metric. net should But on very don't the sort ROIC, so this to over acquisition numerator the should acquisition going define include hurts very QX, your in how we do thing you But think accretive a to did you're you goes the because speaking, then income, of it long-term,

the it return equity, the in mid-teens. highest cost a for debt in. And If debt using it whatever, the that cost the changes X% in here is is blended theoretically, all certainly you is But plus or of call investors debt. I then The the anyway, include bit. denominator, of X% X.X% think little

can pretty pretty the of it's was Even sustainability you and through drawing that we debt if down is covenants debt cash, of deal pretty and core the great the wasn't a – a and think the core then highest find fund off to fact pretty this debt, to that highly tough you fund environment, pay I profitability debt in like readily, cheapest what think it a the speaks readily your we a business most LeMaitre – and this that way and the lot the of return were that's it where environment. handle So way did. I But able it. though one through

business through think So Truist great the more us. could profitable process with both I much they forward this be core KeyBank and understood the going were business And working that and combined. acquired

the think it, that's efficient do I and so And that's did. what to most we way

Brooks O'Neil

Right.

you great Is So give what the think a sounds X.X% to like down us three-year rate. to do you rough you a it five-year, would that – this be might pay or a able willing be Do when debt? idea you think? you

Joseph Pellegrino

a it's Yes, five-year term.

start the to end have, to revolver what paying be going guess we're create over going powder But the a a And then for the payments higher And maybe dry of either and goal the think think next little cash I'm then over of and million $XXX,XXX of during couple amortization at for and I bit required. for in that that so have term, range, first XX able we're $X which a sort we going down is. months $X.X Brooks, to And are that years then bullet than will more acquisition. that's of million that, some it's the quarter, remainder. staying excess I to the a then

I the probably Right say, of the towards as about as required or a $XXX,XXX the for We'll payments quarter so, the answer as And due. So we million well, of million down have $XX think get cash. I is you pay million down pay excess interest the $XX could or cash, by that interest. the pay think, with $XX we'll in then due, $XX million put we'll now could cash, or debt. you

of debt could away. of the right some down to funds internal use pay You your some

how wait it there that. are options to there. So not do looks and But to going I feels. and we're some We're think going see

Brooks O'Neil

another acquisition want road, you I pretty good. That's the quickly. get Dave doing to on Roberts back

Joseph Pellegrino

Yes. more give Absolutely, him powder. we dry to got

Brooks O'Neil

questions. much very you Thank for taking my Right.

David Roberts

Thank Brooks. you,

Operator

you. Thank

Petusky with Mike Barrington Research. from comes question next Our

question. with You may your proceed

Michael Petusky

let on what to number evening. missed people reps? Hey, but if miss sales that ago, you commentary, had guys. current started folks And reps? the you I just Thanks. bringing was and speak just you in to your go this, can around months did sales a or roles? have those filling general, I that, in this, of may back have particular Or few Good

George LeMaitre

is Mike, question. the Thanks for George. this Sure.

questioner So in last we now will in had at hiring down I clarity. At LeMaitre's for freeze wave And or thinking general, what XXX get reps forward? the rehiring? wait some still we until we as more right reps, asked, now generally maybe at we what this see like. reps a got got then as about XX until at to XXX We're three to have we or XXXX, of and point. March right point, of QX should Drew comes next a looks We wait the but hiring we And question, might One, the started we we expect perhaps think be to had XXXX, quarters. company four the X/XX vaccine to haven't before, yet. measuring your going in perhaps

Michael Petusky

way you look and the these of like, some what's in being Florida time now, revenue in your they're for of that really real terms sort states and exposure Got overrun these to, just slice George, there of it. any to say, is getting some dice states right And trouble of your like where anyway? in and they're California, for of Texas exposure like sort

George LeMaitre

is I know say about Florida Stroke happening a I Belt a top will, known it's business. of the fingertips. that XX% question. always you offhand. are big It's on my good Well, can right tell at don't I'd hot I by. that spots, that's of just have that you that if the that's also piece real our

of surgery is Kansas of vascular happening. to Stroke as the kind exactly through then there, happens Belt this is all where the lot because is that's country Stroke Texas. to referred and And go North west a and way So Carolina, quadrant that go the Belt the down of

for. got we Again, this. would stuff, two U.S. this wave something to did. we gave the is know that COVID about did the I We make we to to unknown real know that all in So and you all we watch everyone. guidance a this But is enough say

So baked goal we field slightly that, that's think quarter. we you this gave guidance. wider into a But

gave also competitor million you the tighter. unsure from $XX.X to for giving little guidance. And how are it's many companies think going We're that uncertainty around to be of million our And we guidance. I the a we of $XX.X because pandemic. did usually,

So we figured, least on to back give guidance. at get and track

Michael Petusky

spots terms of some apply getting hot are these that, time sort things of access more that Again, absolutely. New to of the the you can things through there reps ask obviously there, New in during you Can in that of just now? there, learned particularly learned up period went you in that guys – Northeast. that docs – of sort your in Boston, I it, Are Jersey, York, particularly on up headlines just right

George LeMaitre

of it's there's all say, low able other. out text strings. has house get really their into each on and talk hospitals. learning reps pretty going They the to I mean, But been speaking, amongst chatter They aren't generally the to amount would going always the of have on, when certainly, reps. I because

So in is experience the rep your would And is the U.S. experience right the down question, upside say I whole the gets part a right now. RSM upside hope now. Mike. lot. that It's I down of changed

Michael Petusky

share comp you And CapEx No. have then, for I missed that. stock-based JJ, the may and Absolutely. can quarter?

Joseph Pellegrino

I have ready them you, for Mike.

Michael Petusky

you. Thank

Joseph Pellegrino

amortization, comp, and $X.X $XXX,XXX. $XXX,XXX; CapEx, million; Depreciation stock-based

Michael Petusky

through in Hey right. Thanks. managing of guys, job a QX. All heck

Joseph Pellegrino

Thanks, Mike.

Operator

Sidoti from comes our And question with Company. next you. & Sidoti Thank Jim

may You with proceed question. your

James Sidoti

you Can me? afternoon. hear Good

George LeMaitre

Yes, we can.

James Sidoti

Great.

can quarter. things some little I are you you July, in about you And talk Europe? talked procedures don't bit seeing a during how back things on levels pre-COVID to about to understand but You comments there the yet? U.S. and went want too much there give how us Are the

George LeMaitre

Yes.

of, the last say would would but back pay getting employee the y. would we're France a I and a a where on And we that's time. and can what is the salary, conjunction time. reduction are salary In our, say, of things feeling a and I In government script, here. part from the And exact more programs I reps getting Germany underneath then I will in that are Italy mandates towards the can the x Europe, of of And they government but our sort the guess question, from wouldn't normal, back so comment chasing XX% work said percent bit work something lot we're XX% pay your only like Spain normal. of my government getting just and little with that were the from XX% think programs of only of from

So back "Hey, abandon us I we they've need and back your visit they're to – and that's want program Europe go been saying, just restrained and towards indicator hospitals." can us so more, they And out in so let's they government go for edge normal, leading to that that far. pushing think

those. some to So we as lift starting we're a had also, UK program well. of there

James Sidoti

to recovery? So the of U.S. say and is terms that Europe are of in fair UK the the it the slightly ahead

George LeMaitre

it's in now. in I so website all newspapers I'm those It over that do, and that talk New better over they where you better be imagine much about Times cases, like right over would just to and mean, hard read all than the Jim, it is it's the just U.S. I there. countries York country not

James Sidoti

then question All guidance. And right. on the

sales XX.X%, uncertainty specific be What margin in margin the of gave you why And guidance when which related on that number? gave pretty on wide million pretty of But understandable, revenue, guidance so on variability You sounds to considering confidence $X line? gross gives you have pandemic. is which some you gross the the the specific.

Joseph Pellegrino

round around Jim, for for I million or discussed. That's for to in the you. I you negative margin. and coming say. XX%. only so a got here I worked lamenting coming I Well, something it'll on through new impact that's But then inefficiencies in gross quarters, two some And it of math revenue I as way didn't corporate we've that at well. high-level $X is as we margin answer round QX you me X% revert for will That's didn't the there, that the guys. This me. JJ. the was is think you've got got But out then

that So think that's less which can how precise. we we being get of XX%, as low down number, to

James Sidoti

I'm million, had couple And lower Artegraft all be the the have that sound it a doesn't doesn't revenue little quarter considering like next and would you channel? of distributors, you've some down than expect aggressive to Dave, times that got today just much And $X.X in they you a stayed seem inventory to shut be said about which been it's independent. that asking, these of there's from

David Roberts

the distributors, I have there I will returned think perfectly inventory. are some, we But we've run believe haven't. some guidance mean out And eventually, I of that I Yes. that Jim, so is is but no, believe reasonable. pockets There provided that. mean, they – the

James Sidoti

No. right. All Okay.

see reasonable. quarter? number sounds – to that any bit little one, inventory. the for for number of the surprised was very XXXX a third the think last the take you I money the because It's that just in I did And quarter PPP then

Joseph Pellegrino

So JJ, Jim. this is

most the have. we question, have don't too, month, that recent prior you from So obviously, information on that

PPP, probably as the To that as applied guidance helps the well. we Yes, it. to for So us the for yes, answer QX question it. of your we piece got Artegraft inform

It's three $X.X it like something or or you're just a and you. think $X million $X.X I publicly revised this like said not for treasury company, million issued the is guidance basically traded their was days that. if later, million to

it gave later. we three so days about And back

James Sidoti

Okay.

none didn't money? So were by that, your you that of margins take any affected of

Joseph Pellegrino

or or days that. money. like We for did of any took four not take We days something it that three

James Sidoti

I mean it? wasn't the There in you reported. there benefit what one-time But like PPP the Okay. from wasn't any margins are –

Joseph Pellegrino

no. No, No.

James Sidoti

for Okay, right. it me. All That's you. Thank good.

George LeMaitre

Thanks Jim.

Operator

like and may you. Ladies day. would you you a Have your now that for thank conference. great participation, gentlemen, to concludes disconnect. I and Thank today's

LeMaitre Vascular (LMAT) 23 Jul 202020 Q2 Earnings call transcript