LeMaitre Vascular (LMAT) 28 Oct 222022 Q3 Earnings call transcript

Company Profile

Participants

J.J. Pellegrino	Chief Financial Officer
David Roberts	President
Michael Sarcone	Jefferies
Brooks O’Neil	Lake Street Capital
Purnima Malik	Stifel
Michael Petusky	Barrington Research
James Sidoti	Sidoti & Company
Scott Henry	ROTH Capital
Javier Fonseca	Spartan Capital

Call transcript

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good day, and welcome to the LeMaitre Vascular Incorporated's Third Quarter 2022 Earnings 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 LeMaitre Vascular. sir. ahead, go Please

J.J. Pellegrino

is thank last call. joining call With Roberts; birth and President, and call on QX to due is on XXXX Dave the CEO Chairman LeMaitre, conference me his George to you afternoon be us the daughter for of our our unable week. Good on today's

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

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

of sales reconciliation and is non-GAAP available discuss measures, this we website, the release Roberts. over press this in I'll our call, section to associated www.lemaitre.com. the discussed During call will call in of non-GAAP in Investor which growth. include measures financial now to organic Dave A GAAP is Relations turn contained the

David Roberts

up MDR X% growth two and second, cover and XX%, on From by our up $XX posted sales On Catheters decreased QX of increase. up also benefited Artegraft Shunts a call, X%. organic up up competitor third, was key Embolectomy due a Embolectomy and from a XX% Europe up X%; organically X%, organic was sales in XX% We XX%, order. Allografts requirements, exiting offset led were X% competitor's the benefited quarter, These increases perspective a biologics; in and stringent I'll Valvulotomes, product Shunts growth. grew flat partially organic Americas Catheters XX% reported and a our Carotid J.J. but QX, of XX%, EMEA CE the up first, Biologic organically. sales. devices focus topics: drove APAC, QX areas. million while today's Thanks represent more hiring on in by the back three basis, continued from of were which growth to

sales made In to recently new also continue Japan XenoSure we Germany, We regulatory our Korea key for increase reps focused indication And and year application direct Allografts, employees, hospital expect shipping labor. for begun QX in XX% the our we in filings. had November. invest to two submitted first areas: we of We've and there in two we an XX, our XenoSure. in in hiring XXX biologics approvals. to carotid September submitted We year. over key On direct and sales

a record XX% sales record quarters while in by and profitability labor XXX. direct same increased period, rep to headcount the initiatives our sales headcount to XX% by Over drive These should increased ahead. XXX, the

We I'll that, to With over XXX JJ. year expect the it sales to end turn with reps.

J.J. Pellegrino

and X% FX to sales headwinds Thanks, million, XXXX. on were in to million due lost QX increase and dollar QX continue strengthening QX. in versus $XX an we X% Dave. sales of the substantial reported XXXX organically $X.X a basis be

margin will efficiencies. million to organically full year average The we lose points a of For while XXXX posted grow our by will basis XXXX we and sales dollar. unfavorable due XXX sales was the and prior-year sales points, basis that XX.X%, manufacturing versus the strengthening the a mix decreased strong in quarter. decrease estimate offset by dollar $X.X gross In price we versus gross XXXX, X% XX QX increases of margin

Dave XXXX we've direct transition positive or sales of regulatory XX%. labor an impact operating MDR income $X.X particularly many mitigate expenses also continue supply have of increase potential our headcount XX% size was chain should in on QX, This reflecting Increased Operating a and manufacturing our half should output margin invest as in we departments. issues. areas, team. increased operating the the first and XXXX. and QX mentioned, million, increased hire in of our any As gross margin to

XXXX. intend MDR Before CE products mark we building submitted for to on additional submit five we applications in year-end seven the

$X.X cash XX% shows operating Our an The reflects balance XXXX increase QX and efforts the million. by with guidance since $XX.X sheet year. million, grow. 'XX increase driven We was The operations an $X.X of $X.X of QX. margin beginning by QX QX our versus ended $X.X offset million million from cash the in these dividends on of partially largely revised and million, to of continues

represents QX to which at of reported expect we organically. million, midpoint $XX.X X% million of sales Turning X% XXXX $XX.X a and increase the to guidance,

expect decrease also XX% represents million, the $X.X of of We at to midpoint. operating million which a $X.X income

Our $X.XX EPS per share of of QX per decrease XXXX represents and guidance a midpoint $X.XX X%. share of implies a to $X.XX

Medical. President member life Martha up Q&A, joined XX over recently and currently operator it to the that in sciences Orthopedics has turn who back over welcome on will and of that, She experience, and September. With of CEO years it I as opening Rotation for most questions. newest I'd of prior Before Shadan like to the CVRx to Miach AdvaMed. serves Martha our to us Board Boards

Operator

Jefferies. Michael from comes Your the Instructions] of [Operator first from line Sarcone question

line open. Your is

Michael Sarcone

Thanks. congrats addition the the family. new Thanks to questions, to taking Hi, the J.J. and on for George Dave. Hi

growth Do I can throughout the and on how drove guidance was for what on in around XQ, you you organic about versus Just XX% a think and talk had just the maybe think question expectations activity X%. shortfall came at comment quarter? you trended

J.J. Pellegrino

story, the big Sure. obviously, of question, Mike. going everything days. these the part FX through, Thanks for is one And

than on more XXX,XXX by XXX,XXX FX And so. maybe or so hurt XXX topline the we or grand us versus when guided,

So XXX we we story. happen grand or And an of Valvulotomes of, sometimes. of gave sort thinking had that than would guidance. air maybe when that's a piece XXX I say And quarter a and pocket light less as just sort the had they that well, were

those quarter bit Europe it the issue there. we why was high digits of of a September, single sort a of so, something double like our And a us order low little that in as And in quarter had sort I one the also light missed. with in hurt of through low was of and rates. The in back And little then digits then of product that of bit lines growth well. think were August a and topics and low-single sort around cadence July, terms we sort digits and

wasn't pattern of a there defending really glean So increasing that that. or sort necessarily you clear could from of

but say, it X% organically, in we lighter historically little where in we've rate. up sort thought, still overall, yes, is So a which or pretty X% much growth that been than was would I X% line with of

Michael Sarcone

talk the to, trended Sure. quarter? fourth talk confidence really That's has in how your and organic as Thank a Europe. you I accelerating I'm -- about, getting from to back you around And guess, the in how you. helpful. X% follow-up, order about do you activity issue can I guess, October X% just in I through guess can

David Roberts

it we're as that suffice of for procedures Mike, JJ said, organic Yeah, in we're Thanks all the pattern that. months to a really a that, obviously, to up could the for glean guiding and Yes, there question. Dave. that But QX. to wasn't that much little about rate X%. is bit we And the reluctant reason it's from talk for growth say

we're quickly we've as the our course, of the prepared we feeling force we're to up year-over-year. fairly XX% sales that and, figure So one reps, talked with about good is sales remarks, up topics that, that's XXX grown of in

few these And QX. the in able will part so, we're these traction increase of us gain pass to giving reps to to growth the be hopeful confidence months organic that's continue rate that and more what's as

J.J. Pellegrino

from fill that story some but you typically QX QX, you more bit of rates, And in Mike, give from the QX, flux as of I get how can to little year-over-year a on color sequential next. about and we know asked one going you help the a QX you're here. just than little growth sort to a I might lighter maybe so of sort little is and

hurt up QX volume but from Valvulotome have QX that in a can QX, seasonality, than will You nice we help there piece pick expect the we that so and nice to little a us to that a QX, as actually little I'm uptick to talked also, little bit days earlier us Valvulotome rebound us we'll in well. about as days FX a guess a -- going from had is hurt QX bit and usual might fewer in going

Michael Sarcone

thanks all color. the for Great,

Operator

KeyBanc. the [Operator Instructions] is question next from line Your Matt from of Mishan

open. line Your is

Unidentified Participant

is Matt. this on [indiscernible] guys, for Hey today

Just guidance, the touched wanted around to revenue, some I around follow-up think you of on they issues on and FX sense valvulotome. just

a seems guys. looks at like you was down it definitely trough looking step though, Just local margin for it and a like

quantified, of macro specifically, some the term sequential about then supply chain we of near impacting maybe thinking should broader and decline? outside around wondering Just that be And how bigger what that FX of giving which around a maybe sense some us you inflation the headwinds pieces moving the impacting trends?

J.J. Pellegrino

Sure. Yeah.

A weaker delta than piece And say the you that we or probably is and gross talked of clearly X.X% see the guidance in gave we So X.X% we of I'm since there last yeah, is about FX can that. when time. margin FX thought. going to that. came X.X

small of was really in nice a margin. valvulotomes Mix a So part answer. answer the part -- come with [indiscernible] not gross of larger the

margin. weaker in so when you have the gross And do feel you quarter, that valvulotome a

then X.X% mix manufacturing mean, so had of a of or scrap we've inventory yield that or were talking delta had And I big little topics we valvulotomes maybe bit piece total of the in that. a inventory write-offs typically. on in terms that about. And probably more was than we're side topics third-ish a or

got done a I And a a of level hire get was to think is part hiring the got and line. talked -- more were earlier, little get labor that them they the our is And the got you of going thought to then and a is so, they which of bit you on piece an probably to story gross to you then We've them lot I piece going And piece direct margin little probably Dave more what more important do the and high story. quickly. forward about a trained. efficient, little

that it's And of and taken in gotten a given door, efficient them number bit had get folks longer little the thought. we've trained the to I I so think than

down that's guidance. margin in our on think dragged I gross answer versus so, And QX

Unidentified Participant

increasing talking was like does the as MDR little hit approvals. the year, -- some could nature. you're international are for of helpful. pushing more All pieces the have count be initiatives like really a is you like were feel some just as the about those in about And short-term levels place. right number then right. those it That's talking the thinking to might product of may in of I be faster? of you be given guys be like accelerating time some And your bit just sounds forward it Why now of like rep you planned investments kind you already the exiting it or moving about the longer-term feels that making well investments? submission, And

J.J. Pellegrino

that, last day can to day on It's there timetable last can Europe products question, sell the in is MDD a -- May in is with a them May good we XXXX. XXXX, we obviously, we Europe MDR ship is

glide at MDR next applications on submitted right we'll months of news the more. So we're last good obviously this seven the slope we're good submit year within on the we've and five MDR about, end feeling year of couple is,

XXXX. I just two one think, in leave I'll or

So we're feeling really good about that.

the timing always spend, of is which explains regulatory that the think I planned.

asset of been think this force years the expansion, terms sales company. LeMaitre years I In would it's the principal the of a for and say maybe investing, for really has I investment solid

$X.XX of the end And mentioned, XXX get so, the of medtech of in million a territories. sort get moment to course, XXX to -- I And often the in do expect LeMaitre year. we territory hear about to even At average terms the LeMaitre $X when -- be an as we by sales we of million. typical will

the reps, the that reps lot will we become. and So a is the we I of for like hear geographies, too so to still of in think it be our a appealing example get of Allografts, good do think lot reps. small where there territories, reps could and We sales we shrinking I sales because far instances should territories more address more the where territories job feel it's away cases, for also frankly, the size terms help And expand. a positive that. in more able territory are hiring their will many aren't be The retaining interesting retain have the

J.J. Pellegrino

And COVID we One concepts now. about all as headcount the cut sharply on back too went is, pretty sharply. I why other had two through probably we areas, in

rebound and I and that going. of reps but in this regulatory as to And a that areas so And to deals, quality we needed really other get in little in took in decided and the time a year, think just lot really organization fill areas, not admin. hiring well

every the to for years. do from sales generally, us so I an pretty in the operational keeps stocked is, up well done welcome would an was standpoint And we thing the lucky And say, it's reps, on have operationally organization. to it couple And we acquisition I Dave deal. a of then a necessarily. sort the haven't of right for good focus haven't it on year can which building think answer was focus reps time so we team. that the of a And that two, with we that device year in kind the maybe or one got don't rep for sense new had

time that maybe a was as good so And well.

Unidentified Participant

All Thanks very appreciate guys. it. I right. much

Operator

Lake Your Brooks O'Neil next the question Capital comes line of Markets. from from Street

open. line is Your

Brooks O'Neil

mentioned buildup Good and cash afternoon, the notable the everyone. J.J. Obviously, is acquisitions. just

business. are investing Maybe in you, is environment out now? guys acquisition allocation there and time now, about heavily you capital good a the looking David, how be curious it what's the to like just So to thinking

David Roberts

Yeah. Thanks, hear Brooks. your voice. Good to

as has for to successful cash, this the We're an cash there two we've probably looks whatnot. me we and of are do targets it our for it's my So in front, to And maybe a obviously the cash, one a in we And our generate long But half needs signals is, time. focus moment. don't at that, is proud been to acquisitions leverage. is from would generate after allocating Achievers dividend cash dividend. course, very commitment say return I and report yeah, profitability. perspective since Index acquisitions operating and done strategy other then that we're our of ongoing a the taken two looking run there out have acquisition. been years and have acquiring smaller on CapEx And months, last the pipeline at many like definitely and distributors or good. anything two, But to we're at to

the products same the vascular open or course, generally $X for revenues in of minimally Of surgery. is million which was with criteria million looking $XX

about bit do in sales we and look XX% we Although or little at surgery our endovascular of cardiac derive cardiac. a XX%

two we'd Now low an number of it really another niche is important where be the aspect, or rivalry like one number piece our to space. in

it. hunt to the say, with larger of I've optionality who on balance do course, I as it greater team, And and -- solid on work we've really I we're cash a us deals. builds, gives got would So got the

good hunting. time deal we're IHI it's there a year-to-date, cetera. the good a just terms down to Valuations a yeah, there that little of in And some real buy might slowed banks house, like bit, estate reporting. a to company But et XX% with a flow valuations out are out of a are are in at time little and be maybe when down, acquire we're general, course point. So hunting maybe what down bit

Brooks O'Neil

you assume went I the in guys about shutdown France plant expected? of as Absolutely. the

David Roberts

Yeah.

has, your you through make way legal process it's is formalities sold that is But, over shut France. building. actually sure whole and building there We got there. yeah, the work whole a to dance sold. I it you in over think also a and And that recently

quarter with So going we you But we a of be in the is last right about feel it, answer. over France. call folks done million manufacturing a gave on that southern negotiating severance. number kind handful are still of few, like we We're to $X.X

J.J. Pellegrino

we add -- of get have because QX, And $X.X in to last QX. unable end the we're in deducted for were close quarter, but the happens million were tax so reasons the quarter able to on, just to closure that we to that

an low you that's effective in So see QX. tax why XX% abnormally rate

Brooks O'Neil

And you. weakness. J.J. valvulotomes the you mentioned Thank Cool.

You the nothing kind There's would guys business? in ebbs the just of the you flows of point think ongoing that's underlying to for that any market change and would those? suggest

J.J. Pellegrino

a would a don't topic and they that lead is you say obviously, in there more our Yeah, And really I company very it’s beginning systemic happen rebounds, while. portfolio around, important remains particular and been this the some that the in valvulotomes see of in part to in air that the an well. it sweep well of felt time just like every there, franchise quarter then and as performed it's recently since once anything pocket time. an over me has It with to of

in So topics staffing not US. case there XX% of terms And geographies maybe procedures, in some in plus in hospitals, different maybe sales the geographies. COVID broader topics different in of remember are our

around this So I sort products large by served us get fund And valvulotomes from mutual swing well. can has necessarily and case those not dip, think did a the you time-to-time, sort approach little of topic but a that's take but of in and going of forward.

Brooks O'Neil

my taking for questions. much very you Thank Great.

Operator

Your next from of from question comes line Rick the Wise Stifel.

now Your open. line is

Purnima Malik

whether pressures you're any this that proceed additionally, going Purnima which idea know an your sales you this the decision sales Rick on sounds affected you're like have of hiring was general, to your might XXX you do is and macro lot focused wondering want quarter planning And might might reps as I hiring at and XXX in to force force you've on acquired as about of to representative how It headcount? could year. And mentioned have in was in Malik I that wondering then in elaborate This I XXXX XXXX? increase for you like the of into are hiring. then year be in you you on where rate whether call Wise. Hi. reps the this far this be under you least ballparking, sales geographically? where

David Roberts

it's questions. Purnima, Hi Dave. Yeah. Great

switching lot immune macro, and been for a In months, terms and all done of to not difficult say to of people the I'd of course, are We've months headlines LeMaitre we've is has how been of that. reading months, lot how the it in hire jobs. hiring.

high little for had a Burlington the we've sales from we've a lived below been standpoint DO, rep time. However, I'd the turnover even has though say company-wide in voluntary is with X% X% force. in bit turnover here a sales our benchmark. But or long our something turnover in

part I is that more turnover. reps there of our think to amount coping So of response a be hire certain expecting will

the -- the of So the our of their and piece does our and access that's is, either traction affects and we turnover have macro room the gain reps reps less the -- to with number operating since physicians. cadence. to frankly to affect that had another the And reps COVID hire ability our or

has the this course, is by and China. limited. course, of large access cities But Of has are hospitals itself, better. gotten rep isolated lot like Japan or There COVID countries the and maybe still better but ORs and open, gotten a in

little their I training a job fair a has that think -- maybe our access rep bit. slowed to training, the COVID of amount on So with that reps limitation

next lot we in this sales earlier around been underrepresented. doing China there. of -- and represented a say US very two Korea, Korea, we hiring would there, of in in and a one -- the and are we second to course, approvals went month only the limited and asking hear the that Artegraft, to number have were product. we well have of you three world due reps device have terms on we there the question, keep should sales in I if missing the to product part a a where might but we mean, two. largest market be been direct yet in frankly there. medical year. hiring haven't We've So rep solid add then promote look reps able is we the or of acquisition expect sold but you And sales just but has regionally, I just to We I be world. we or reps in ground, the which

is the say a I'd level, expanding at high continue want And little APAC US US a for us. maybe bit -- we in the then as in So well. under-represented expand to

Purnima Malik

one Great. even Where the do how macro from so Thanks. That company question. stabilizing every pressures heard affected business sense. have we've their And far see Virtually pressures or I makes more that has you macro performance. then discussed have improving?

J.J. Pellegrino

interesting That's an one.

got think you again by I for us, look to geography.

feels maybe it rep like could there US, bit. the stories little shortages. about UK in so the heard In it improve And being the we a

little bit there improvements And so, maybe of potentially. there a outsized is

I think fairly topic was the Japan that recently. had a COVID lockdown

there And though so is perspective breathe is a product our XenoSure they a Maybe lockdowns. pressure of to well there more there in Japan bit macro Japan. even room doing line in as out get little been very from has

really So to maybe answer some almost that. But highlights. those are of it's the country-by-country

Purnima Malik

last one one And Great. me. from Okay.

like And last it on that potential see to interest quarter, business when So going forward? you decisions evaluation how to comes think you M&As. sensitive are candidates decisions said your increasing, I I and just know M&A obviously were that you tie then this rates do affecting something to

coming towards be your sweet you that spot? are So coming are when might then, the down you finally that they are And seeing do evaluations those think case.

David Roberts

is It's further obviously, cash. how I we've of of rising, much interest cash means that to trajectory to of acquisitions, already. generating income terms that's extent the like. interest for that $XX million hard the fund really down say, almost rising that predict $XX rates reliably happy, with we're be. having debt terms silver secondly, leverage, the and valuations would it working which on rates to we're to predict thread no But of use. using interest shareholders, depressed a amount certain we a operations lining have But actually that all is we not what $XX want in Obviously, market debt Yeah, hand mentioned cash, sort hand valuations to hard our capital. used really to needle. and sort But as it's is probably looks that million use of could are it million debt. we that go We our leave of Well, on first, we to of of cash what in used mode then, at and debt to

And so we're probably in a little of bit leverage more cautious And would higher. the cost we then about debt acquisition. be how that use would much an

have and term, I are they as always as want worth factor are rule, to less, in can But probably we we but may yes, medtech getting to want owners the us, owners to potential the public the right target businesses win -- don't we day. that every our the and company So look strategic their emails long more But at heading more very we and say, I conscious admit fit. it terms are for strategically because when valuation out long-term meantime sensitive we're important or shareholders of the who targets but a that do reluctant would than they -- importantly, time market that down. win. in always find we stock well. is are be we think And the private of And price to to factor necessarily in carve up sooner they of valuations we company the clearly try down, in say going I

on. that's So we're what really focused

J.J. Pellegrino

I know on our I is cash. don't you income rates increased the if if interest excess our you repeating. apologize for bright this, did said side But interest of

$X.X per million we've now interest for which so we're nice is at year rate where over historically. improvement And a income, of a sort run been

there. there a is So silver lining

Purnima Malik

Okay. color. Great. Thank excellent you. That's

Operator

next question Petusky the line of Barrington Michael from comes from Your Research.

now is line open. Your

Michael Petusky

given Hey, I -- guys. you do give you've cash J.J missed comp could you it? have and it, stock flow that from me ops, CapEx already if

J.J. Pellegrino

[indiscernible] and Mike. you $X.X comp for didn't you prepare one stock these amortization, [indiscernible] quarter, every million million, that Depreciation prepare want Yes. I $X.XX another faithfully

Michael Petusky

CapEx [Multiple Speakers]

J.J. Pellegrino

Yeah, $XXX,XXX.

Michael Petusky

flow ops. And from what cash with

If you have it?

J.J. Pellegrino

saying flow, cash you you're want? Cash flow, what free

Michael Petusky

No. CapEx. Cash flow before from operations

J.J. Pellegrino

$X.XX million -- $X.X million

Michael Petusky

the you have -- anything catch during didn't performance I XenoSure quarter. guys on disclosed

J.J. Pellegrino

XX% organically, grew It X% reported.

Michael Petusky

what in like actual And reported was something like the Valvulotomes, X% or down that. decline

J.J. Pellegrino

flat Yeah. reported organically, X%. Valvulotomes were down

Michael Petusky

confirm, the to before you some of year. some And price I thought, think guys make Did last you that maybe your since of to sort you we're hope against or price adjustments but did leaning Okay. just guys guys had typical first given raising commented.

J.J. Pellegrino

made our standpoint we're adjustments, out a to didn't we beginning like wanted a transitory not makes X%, corporate know, higher sort sweep then in to I of figure a We've -- you I price of of to to topics overreact sort sticking getting businesses want hike presentation look that X%, of that already at price at worldwide. blended and think that annual pretty see sense longer didn't X%, -- at we any I we and time felt year level over what and year from perspective. don't X% of and sort the We're aggressive a from look

the has of will for we're that remain I So cadence processes same process, this year. feel -- the like and that

Michael Petusky

with pricing to bit hitting little more fair it in that of inflation that aggressive of everybody guys at or heard sort Is how the a no? say year you the terms maybe of first

J.J. Pellegrino

of more topic is sort bear we It's number consideration changes as the buy of into two that a nice geographies. what's come but of cost market and on will of their data competitors going this we pieces, what makes terms in market. do mentioned the I and play, by specific I topic obviously, what of topic, to vis-a-vis sort and guide the in that's really opposed would a pricing strategy pricing say sense to rely base a on cost buy, first maybe we on pieces And topic market fairly and that. When us and lot try share

Michael Petusky

I six mean, terms -- up up color number, hiring move another do seven number is about was you In the by that any labor right is XXX, number more of year-end. on sales, that do said to rep need direct or you The labor, or great material the the could there. it direct sales were and

David Roberts

Hi, I say we that. little more, good would a that plateau sort nearing -- would do level. is Maybe say a near-term could Mike, Dave. bit of XXX I it's a on I frankly, think we're but

now focus we getting in labor ones a direct have bringing Our employees more frankly the trained lot is and productive. getting more on them up than

XX%. so, our of hiring And has And XX% year-to-date, direct up a we're been up rate pretty versus we're ago. year yes, labor dramatic,

up we're hand are it hire not inventory obviously, a have reps on stock to as for for still to build to able prepare of that. more -- like There plenty So And supply bit. important little expecting transitions. MDD need available be reasons anything it's go have but is that, to difficult, to we could to that chain still to extent the stock

say point So -- we've most the done would this but I at of hiring

Michael Petusky

to numbers like the maybe the not labor of that of being to sort sort some about, sort newer I'm sales against last XX-day hires and I wanted direct this just area the of hiring side be comments, feels on in about, buck -- slower as forward. But and side, mean or gotten in through the a you I to the it on if Just they listening productive either either hiring less and things it alluded both suggests, number. like, gross you have improvement you snapshot what, sort year, and ask to high of last sort especially point compare the all of fair coming maybe really access of well, may turnover on understand sort of initiative, the to really not the snapshot going and feels to margin XX-day of I say of hasn’t them also haven't a up. causing then when for sort the of sort the driven improve [indiscernible] sort mean rep that's talked and and the little the bank I the it's to maybe coming meaningfully this sales

J.J. Pellegrino

I Mike, Yes, think right. that's

bit counts and And sort getting but the generally think to our remarks, we're into on that’s to translate the strategy a in bit in directionally know for little we're that this is trying prepared I that think little taking of that answer both get say is, results. to, right to right longer I which a right. we we're

not you're over say, increase you it's percent up certainly in and answer. and percent the growth correlation but of so right then is is trying count and the medium time in well, and always is as that long-term it so, always it, rep term to this and want we sweep this know direct should the And organic the

access to hospitals for wait hampered training COVID yes, reasons also so, little reasons for And and staffing think well. to been sales other reps maybe longer. got for we hospitals by a bit in reasons maybe and has we That some as

some along and quickly so make way. the when hire -- maybe you And mistakes also you

some similar piece, in of And maybe there so we know are but themes probably the that they done has And these as direct before well. well. both of labor gone worked we've strategies and

So that this confident we feel right the is direction.

Michael Petusky

Okay.

key just productive any to difficult effectively. guys lost that reps. or three Just on mean, I been the real like have super to the quick replace replace reps past have six months over you sales

J.J. Pellegrino

rep. always something do we reps lived they been a plan reps. turnover lose never never we since course, lose like we've -- lose with if them, sales had to like isn't just so a a to Mike, performing has -- we mean, this and -- but ever I I the we usually rep of rep we on is

non-good the curve And and so in some it's rep probably, probably we reps. no ones, and sit Yeah, except than here lost have a that ones, some diversified good turnover some really ones. numbers have bigger -- good upset that. but we're we about lost we've past, are we're rep lost it's one left, our and bell we we the gosh about oh diversify very reps. Nash with don't I teeth I mean sales we really, and think because different more XXX

firing we're on XXX a pistons. So

replace them decides so and leave if And will to one person. their prerogative that's of that we

Michael Petusky

All right, very good. Thank you.

Operator

Company. of from Sidoti Sidoti line next Your question the is Jim and from

open. is line Your

J.J. Pellegrino

here you. can’t we Jim,

can. Now we

James Sidoti

Okay.

cut as sure or the moderator you out I me just not. the Sorry, name. if it say was wasn't

earlier the order a quarter, and in the little shipped the there in resolved was December You issue back will that quarter? that mentioned is a call product now in that

J.J. Pellegrino

transferred It's were you yes, will we remember, resolved in the here speak. Omniflow, QX. getting shipping And grafts, Burlington it (ph) be they in It's [O -- their line] of manufacturing. as to terms

wasn't learning is less start-up be. little it's manufacturing there the of process efficient -- it always want always a so and that curve to you And a that

started we as So that our a Jim. working back up a we way it of of little yes, bit created order. But, out we're

James Sidoti

to light you you remind process. the come in that Okay. tunnel down XXXX with that at then and what think end in just that sounds for the is should spending the you it And us MDR Do can spent XXXX? regards a of there like

David Roberts

question. the first of take that part I'll

a a clinical So dossier two bodies MDD us, obviously, so work our make of ramped end at to clearly bit or earlier the ramped it and change and that. applications But with MDR time we develop because MDR lot investments a year had on and notified for to the report spending ago seven ‘XX of evaluation filing there's development. started approvals the for to we has over little

expect whatnot. to So it plateau and five it And requirement down. near start sometime start was to I that we another the we're the maybe and in year. applications certainly XXXX we plateau but this ramping if get it the approval near I now not still XX and in the a it clinical going there's XXXX by once at declines would XX we our it so of say hope the at not and then data would spend to But getting ongoing sort but we again, with we're we're go say the we're come approval away, high, lot, months. -- if for doesn't would end of or an is next are then year,

David Roberts

more a MDR Jim, the to Mark replaced and cynical through we we about of with new to -- was that CE going and it little to come to bunch spend a I'm to MDD, be got going with had got something up issues we number and going like, well, that we it, money be on. spent I'm one, and somebody is

year going $X.X yes, $X.X give but and be you about see, down, million, replaced we'll million spend I'm I'll regulatory in will down, to three get assumptions if handle what not those $X.X yet, and know talking and MDR spend in up, come the was now but can numbers. the don't next to -- you quarters we'll right, on see with, So that we're it's you so and But about given spend left, that can where the going asked and whether say, but from what all a the make quarters, last goes. million percent, that I three you about clinical

James Sidoti

do are if year, hit Okay. next then past think based lines And recession of do recessions, we or any think resistant? are your procedures that of most your do you a -- on vulnerable just product pretty you recession

J.J. Pellegrino

it's month it point. or month foot or the after next we got after, get this bit little non-discretionary at get five a or have the you feel to in at you it more procedures, doesn't largely four got tingling, your is I blockage like it if controversial. to leg, a get one I'm is doesn't on -- some maybe be point, your to have are some done months fixed to but

you're procedure fix store lead the And that at at that. means so, all to a to roads some LeMaitre typically and point device a buying

we with COVID would non-discretionary, right. are do And they say, but ebb and they that I so largely yes, saw flow and

have have weak pent-up demand, and a a quarter stronger have we then We then quarter. and we

with could economics work to that I'm we topics go going sort as forward so or same otherwise. dynamic be at And other of say

James Sidoti

Okay. right. Thank you. All

Operator

Capital. Your next Henry Scott from from line question Roth comes the of

Your line is open.

Scott Henry

to congratulations had that's exciting. just a of pretty Thank you. couple And very Good afternoon. questions. first, George, I brief

noise is factor, we forward, there the dollar trending XX% currency about basis, about think trend constant based to about I that if just XX% we between and currency. line think when gross more in should that think a mix obviously, strong get First, it idea the an looking think think creates also at the on higher when or margins, line a and but the to going constant we around at a lot mix, about trying it how being and should of of bouncing

David Roberts

Yeah.

right. you're So

question. -- great And so

be set piece level by guess something that. hurt the first X.X%, of X.X% this year-over-year would gross like So, that I FX margin

So of apples XX.X%, we put came to prior it to with can but really add apples year. in a that percent with the couple to you

material money. size that And we of forward. I sourcing increasing goes it like, talked help the think switch of we that help from we're dollar weakens, we can you and there the feel and say, XenoSure ongoing labor are going cost from some that I be our Australia QX, going can extent as within just point, gross cost-saving that and on going sales But US of terms sales, amount we've where otherwise, that cost calls, about that the in it that topics at of that to around could direct how aren’t forward, sourcing move cost pieces relief obviously the exclusive happened, you margin of forward. the to in tissue So guiding the you this line FX and magnitude substantial with prior that are of is from would team but make that the some have Australia forward. on could we told versus we in saving shipping conceptually And giving of team, that other think going of

there would regardless a But topic. ton So that to and is gross the improve forward, can of get of frustrated at you [indiscernible]. takes in and puts FX we're level into margin, work with we're we're the hard to say going going that I

Scott Henry

you. currency. investment? is which maybe to mean payoff little, be, lot also that would then, that question is, Thank should we pronounced sales a kind year's of in of year, The investments? from color. get really of leverage to added kind when sounds more impact? similar question of by half you've like Just reps, a a in it has declined a second margin start you've the a added but of expect investment expect picture. that we employees, pretty for hurt but kind XXXX to Would ‘XX first this ‘XX sense And I trying of a I Thanks heavy bigger was more from operating Great. guess, half see or the of Okay.

David Roberts

DO question. personnel, And It's we're think quickly No, they great not good doing and we're as the its say have like. would this necessarily, all other yet? paid we reps making investments. of frankly, Dave. would I we and hiring a -- off not Scott, the obviously they're because as

like Of taking doing we longer would a it's so their have course, that. feel we thought. little But job we and everyone bit is appreciate than

for timing our anything, make of predictions QX. to if -- see And next a taught it's payroll. get reluctant guidance boy, I'm year, you your own at happens us the so, can you what COVID into little bit

question. maybe we so would can on that pass say I a take And

we and on XXXX. clear, right that productivity will next get the at think flip in of And a be We is good team calendar sense. we focus I on full-year when we QX, position guidance us But you you'll point, report now, year. entire give for to -- the our will our the to well as have work

Scott Henry

you the Thank Great. for Okay. taking questions.

Operator

Next Fonseca question from from Spartan of is Capital Securities. Javier the line

is line open. Your

Javier Fonseca

And news. And and question obviously, my J.J.. look for earnings lines more commercial performance Mark follow-up, Artegraft so the to on performance was George file previous also in commercial its Hello, having does congrats far. mentioned Dave management's call, is the remains same. the intent growth to it for a how Artegraft on in as and of along overall Thanks given the for CE quick the impressive me business and as of ’XX, the

J.J. Pellegrino

on sure cetera, et animal Artegraft the to application point, exactly Frankly, product, submit we CE not XXXX at a so some Yes, in biologic the Mark, expect origin. MDR do it's when. CE

So get we to two to expect a or it take approval. year would

to the priority obviously, had feel with we've bring Artegraft we the US, it's a to success in with this Europe. like So

in little of about revenue. that a we're building submission. frankly off terms excited And terms it's in on of model, into ways so your But

David Roberts

there around Javier, And And its within been And that of of is would pricing reps move done a but say, going growth seen far nice a that less, at has the hikes, in to terms lot less in. don't going as see a pricing we've a that because that we've of price of severe, think pricing competes shift topic become improve so necessarily I hopefully little and more. over we going some bit know unit having to in put accounts. out that defending price guys corporate And out on with the I to more and the line new it the guess, these busy its and you're they're to forward little of the bit and go success value, get as defensive, say I'll working instead I I'm the time the guess, growth units normalized. increases time device Artegraft. more devices that of been we've The And in that. category moves should

J.J. Pellegrino

a which we've XX% channel, US line Artegraft just would sales expanding currently. one that been product to add I as our concept other And is,

for a I it's been either product of our time. but the We've or number I in sales the dramatically. two on size US and Americas some number line increased line. product think believe force bag is one the it's be And in may focus Artegraft they New has approved Zealand,

to expanding the continue vascular been reps gaining in space, a of that are success where So line we that focus even focused very rep we be lot on about and product dialysis access go. peripheral our have to it can It's trauma. and historically some excited out but

very be continue we line. product So that excited about to

Javier Fonseca

guess these -- the only went great on of that would other deal are going forward some I obviously any very but there to on to [indiscernible], going better environment, on difficult dollar. the the foreign FX be this just on measures current additional it's -- my color. on, And headwinds would exchange risk with commentary mitigate question or changes That's Excellent. strengthening

J.J. Pellegrino

and historically we've and hedging about We decided. it looked we've into

topics, these here sell devices and to what, medical medical great here devices we're know You be to patients. bring against to not hedging we're

hedged feel we've the like bottom from We line. do generally top line that. not XX% the And of so, we're and sort done

That's XXX, that's say it's have the a we is a hedge impacted So reach nice to by that let's us. natural XX. line part got built-in for and And that by of if topline be. international kind at place the bottom nice of

we've been with content so that historically. And

Javier Fonseca

for taking my Excellent. Thanks questions.

Operator

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

We use cookies on this site to provide a more responsive and personalized service. Continuing to browse, clicking I Agree, or closing this banner indicates agreement. See our Cookie Policy for more information.