HAE - Earnings call transcript Q1 2023 | Haemonetics Corporation

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Operator

Good day, and welcome to Haemonetics Corporation's First Quarter Fiscal 2023 Earnings Call. [Operator Instructions] As a reminder, this call is being recorded. I would like to turn the call over to Olga Guyette, Senior Director of Investor Relations and Treasury.

You may begin.

Olga Guyette

Good morning, everyone. us webcast. first joining conference fiscal for and call you for quarter Haemonetics' 'XX Thank today Chris joined CFO. I'm by D’Arecca, and our James Simon, our CEO; morning, refer fiscal 'XX 'XX in analytical quarter Relations This information along this guidance our that call. with our we'll website, for to on Investor fiscal updates with tables posted we to results first

sheet, of Additionally, we results as cash reconciliations our flows to of and provided a guidance. summary complete as statement P&L, financial GAAP balance non-GAAP well

all currency noted, on product otherwise growth strategic unless rates and are started, get we of today revenue an exclude discussed Before exits lines. the fluctuation basis organic impact of and

As Haemonetics' fiscal GAAP certain income items, items. in same financial understand ongoing non-GAAP business morning's to Please refer performance. periods the charges of and to that a results. we to release excluded the and exclude on will this for Please details refer measures including investors measures our to earnings with reconciliation help note 'XX comparisons past, these

today other in in do our factors results Safe Harbor any the obligation statements Our impacts forward-looking differ statement results. these undertake not that pandemic include our with the on results the forward-looking risks these our statements. and and release potential We uncertainties, Haemonetics earnings from cautions referenced including the may filings our materially and SEC. the from actual subject anticipated remarks to to are statements, and forward-looking update

previously. customer turn now confidentiality, to protect details order I'd in not Chris. able disclosed over discuss customer to will And to it specific Additionally, be to except as we any like

Chris Simon

adjusted long per an reported first successful updated fourth you plan thank of diluted and share transformational growth. our results XX% our joining. prior our on quarter XX% to range increase Building everyone first compared of we affirm growth $X.XX, morning, the quarter year. Today Good Olga. quarter, Thanks, and of organic strategy revenue earnings the for and for

revenue and deliver adjusted our years. momentum is the We next several market recovery EPS to Plasma our leadership over advance are growth robust and accelerating underway.

market, sourced to achieve million substantial As our the the depleted collections established are replenish leader margins in as confident collectors gross $XXX plasma increase inventories. we growth our and we help their in ability

investing opportunities technologies customers. advancements distinguish Hospital our We is for to are an new in outsized our create increasingly and further in playing also growth. role

standard products raise Our another way are and was led strengthen and attractive health electrophysiology growing quarter markets. we helping the closure as hospitals economics. care the Vascular interventional improve of leadership cardiology record in and our the

to to and work without resilient serve us disruption. Our reliably build supply manufacturing agile an network global customers enabled and

North we commitment excellence XX% quarter, During results continuity. And contributions completed our in revenue. increased continuous of our revenue in in Plasma and new the meaningful growth It first both quarter, price. with by Revenue now, manufacturing our our the the total to Plasma exemplifies largest XX% Pennsylvania. Clinton, business our more America, North regionalization, market representing was first and driven XX% America volume from growth than optimization, and of network guidance. move to innovation, to unit business on in center

that recovery most compares seasonality. Excluding of quarter collection third limited previously. historical plasma volume sequentially, mature CSL, growth XX% across and seen growth meaningfully non-CSL seasonal XX% including year grew growth about centers, the saw have consecutive This which favorably U.S exceeding volume is only X%. collections prior in robust normal versus of centers to We

in strong growth Europe saw double-digit collections also We quarter. this

center donors collection plays customers in safely important technology improve and recruit costs. reduce Plasma to our operations and role to an Our enabling retain

scale yield enhancing in now solution only needs, the delivering have unique fully integrated that U.S. critical is addresses at solution our the including all We of collectors that Persona

distinctive of from millions Plasma of tens evidence real world collections. value is proposition Our backed by

fully our transition the -- customers of to on platform the our transform second by are track Nexus We quarter. of U.S integrated to bidirectional remainder end our

solutions We platform. innovative deliver benefits to of to our new the extend continue

software higher improve devices, faster donor satisfaction. even advancing recruitment We and our and and to are Plasma time, door to disposables door drive compliance yield, enhance and procedure

encouraged nearly Plasma doubling are volume. first by primarily our to full growth growth results, quarter the and from to revenue are XX organic XX% We to we year due to guidance XX%, X% our in

despite business opportunity. outperform Vascular the and represents Moving penetrate to we XX% budgetary deeper in Closure open as in this China. us new and TAM, the revenue hospitals. $X.X hospital billion hospital, constraints The in With and its increased Closure grew revenue Vascular ET lockdowns continues quarter, first to our largest staffing hospitals, U.S XX% accounts into top shortages growth quarter.

TEG pursuing are largest in and expansion first pricing. benefits technology regulatory investments. Management penetration innovation accelerating through portfolio international approvals to grew this and the opportunity our strengthening X% our market drive inorganic pursuing Hemostasis in some of the pipeline by America, utilization our quarter. We product to revenue and XX% both increased in due North our U.S., grew

were XX% 'XX. continuous quarter quarter, for growth of quarter execution postponed won year. challenging tender driven from by capital grew Management in in Hemostasis where fiscal we Management particularly a and and in technology America national in market ClotPro first software hardware of in of North the First and shipments the our disposables of comp, Europe, a installations last made the Transfusion share and revenue reflected expansion quarter that fourth

the flat helped in Lastly, by strong and EMEA Salvage recovery a the upgrades the quarter capital the in in comp was procedure overcome quarter revenue of as strong disposable U.S., in prior driven year. first tough Cell sales

We are about performance hospitals excited and opportunities.

the our Our largest plan. over fastest range long will business become growing also business

our supply primarily raising Pacific, XX%, U.S XX% enabled and additional us in risk. Vascular X% revenue revenue revenue Asia customers revenue Whole collection continued North to are our Blood Closure. in Center quarter. XX% to EMEA first from order declined due due from by Plasma, timing, opportunities XX% in chain to Apheresis strength full in timing Blood the shortages unfavorable to resilience among X% growth guidance staffing in XX% revenue serve driven the geopolitical to and in to convalescent lower We distributors organic center hospital declined need. and year America as order favorable grew

the We a are environment. in collections in difficult of durability proud face the business, our of Center Blood blood of shortages

our creation will to first dilution as XXXX. authorization cash generate gains, $X.X to a enable flow. with a growth billion growth, productivity and appropriate. our announced our value discuss and shareholder XXXX portfolio five-fold approximately to will authorization. We X of plan morning, we I'll X% from execution businesses investments, us increase and capacity, $XXX and to through This over fiscal margin and our to the the end anticipated Successful is and due to our to to X% Blood full rest up updating accelerate robust the coupled is expansion offset additional the help to This X% quarter guidance. consistent by financial returns. will rate guidance M&A results pipeline, our our are now our of revenue X% a capital year The shareholder in capital turn decline fiscal organic strategy now million repurchase free of over year of our to revenue to generate drive a with Center This targeted resilience return James decline. call James? strength new time organic share shareholders innovation strengthen of

James D’Arecca

good Chris, and everyone. you, morning, Thank

to updates business and Let's fiscal additional results guidance. 'XX our discuss

our by in Plasma and inflationary period price both expansion and strength benefits beat show of gross These the with year-on-year and due fiscal related and a depreciation were million, first quarter gross same the from our base were prior the U.S $XX.X growth in primarily devices excellence strong of basis Our first margin the to expense, record adjusted expenses partially margin volume results when additional was to mix, savings of delivers first which pressures, driven of million, expansion, the the by additional increase year, year our This sequentially. the of business, the installed or starting primarily of higher investments volume operating network. for point adjusted of and the the Adjusted the quarter in 'XX quarter of prior margin record in margin compared with manufacturing Hospital, prior compared particularly increasing XX% XX quarter some operational previous continued and adjusted Nexus the new from $XX.X program. with an year. offset gross across XX.X%, our recent third

costs, of percentage offset excellence fiscal partially of levels adjusted compared when from operating flat a combination revenue, The 'XX. return operating volume a and freight remained productivity expenses normal to XX.X% of adjusted at due expenses driven higher freight continued program. growth operational the a quarter higher savings As the by increased in and first investments, by spending to was primarily increase with

of compared $X the increase $XX.X Our quarter, in margin of a the adjusted operating was or first XX.X% income with adjusted period million, revenue, as 'XX. an XX operating up quarter XX% basis fiscal points in was million first same percentage

in broad consistent operational headwinds slightly in driven higher income of the will impact this based impact XX% margin and deliver to in adjusted quarter to total 'XX, XXX margins. of fiscal adjusted by of goods and in with end included excellence of based, additional The business. the our margins, expect about operating the We savings macroeconomic affirm rest range program. macroeconomic deliver our program 'XX. now basis $XX gross we macroeconomic of guidance product first inflation, risk. first operational efficiency adjusted confident gross however, points XX%. exchange and will macroeconomic fiscal this operating quarters Our expect program ability we million About downward our near-term, both growth year. business factors we midpoint challenging operating by our approximately excellence fiscal geopolitical expenses, headwinds. savings generate in additional expansion remain 'XX to schedule. 'XX tax the includes from is adjusted and pressure In our margin continue million savings the the operating rate The And fiscal pressure of these our put to the compensation, and our experienced with and from margin cumulative cost The fiscal continues was to XX% $XX and in us existing grow these guidance of was on our on investments be across portfolio, helping sold performance the environment of put foreign ahead In additional half reaching of of

We tax be expect income to adjusted rate approximately XX%. our fiscal $XX

cash the $X at was inventory to first restructuring first up adjusted related million, XX%. The partially year, and U.S costs adjusted The receivable technology An convert higher adjusted quarter our million earnings earnings including compared diluted down of These fiscal collection tax net of due was per at customers income 'XX guidance related fiscal before million includes 'XX. the operating first flow quarter, with new million earnings quarter in $XXX.X quarter share tax. facility of our $X quarter we related midpoint a expenses, or $X.XX, when fiscal the to to with the restructuring hand investments, FX Plasma $X.XX a fiscal fiscal in $X.XX. income of per net 'XX. same of capital First beginning Nexus the higher combination of diluted improve neutral due free be We our and per in per end range first higher and before higher diluted headwind compared include foreign as additional share by diluted our to share Plasma our our cash primarily restructuring adjusted from costs and adjusted in the fluctuations $XX.X the $X share the earnings lower restructuring on count from Free and to of adjusted rate cent was had manufacturing count, was $X.XX share on flow was per Clinton, offset when cash and income since $X.XX Pennsylvania. adjusted share accounts impact 'XX. out with payments latest to acquisitions. flow guidance income, footprint with our our mainly million, in Cash exchange, period updated compared net $XX.X continued The about of activities. earn to million

we remains Our our $XXX extended restructuring free range guidance their our second cash in quarter, $XXX of related maturity credit to flow unchanged and date beginning and 'XX through the of mid for facilities before for In June fiscal the million. refinanced existing XXXX. restructuring expenses

loan term credit. facilities line unsecured million $XXX new $XXX Our include million revolving a and a of

have two interest impact offset We place of agreements rate to swap also interest rising rates. the in help

our The unsecured as XXXX, the point value As to of at to I'd will establish necessary. In at interest a summary, interest swaps, quarter collections hospital first June interest PCS is result additional the of the results. of end The X.X%. we challenges be of fixed and are of and risk. recovering our before the deliver rate quarter. rate teens Plasma are customers that the ongoing swaps will XX% by latest in growth. protection our like and term NexLynk mid to geopolitical in DMS on all in seek the U.S we encouraged which Nexus hospitals rate of the continues business conclude loan U.S Despite platform second notional mature

and program products track. vascular fully and This and products macroeconomic this are is we continue Our program efficiencies Hemostasis operations, will that supply operational gain pressures. us efficient, our in of continue in to share. despite to benefit place. management The on from subside, savings headwinds agile is market have put And Closure The enabled the have global excellence penetrate has an from the the been establishing real. critical resilient and uninterrupted to program once chain supply

Our priorities focused capital all on allocation our stakeholders. creating of value remain for

Our And for capacity billion including $X.X million capital to growth fiscal throughout recent plan top the Q&A. approximately and Thank share the is by of to authorization, line. range capacity utilize both now our anticipated up this to we the open drive $XXX our repurchase plan long to you. plan long line bottom expansion to range and the 'XX, like would I accelerate on end

Operator

from comes CJS Securities. Solow question with first Our Instructions] [Operator Larry

open. is line Your

Larry Solow

Chris, those that, questions. of more, the start mature highlight give the Great. other the should some guys, about on color any Good And more the that. obviously us collection, that us little and -- maybe can flavor I of economy you been favoring of you key hopefully, growth on been a color centers have just you a taking of can that's signs, give thing And sign improve. Plasma Is could great, the economy you give to just obviously for that just little but and more not you on maybe a know, there. Thanks was little morning. more the a lot laggards you think the sense that mentioned starting the things so us quarter.

Olga Guyette

Yes, thanks question. the for

in of pointing savings real in metric around and sentiment. a third for we've historical remarks, accelerated then they're And quarters from and on sequential and real MRB. what experts with at going we we've this all looking vantage averages. we are PPTA a or those listen on forecast when work closely direction what's we look And we take looked think, at with demographic, to consumer recovery. amounts. And do in as across prepared them into measuring things, So and account that The at, are on our growth proving obviously the favorable wages, point, donor that with we're rates this, said our above the we've customers what's numbers what I predictive saying three had for added the going quarter,

positive driven and uptake by pace mostly the trend. centers. It's new in that's a the So

marked The was the than actually first quarter new a this of change centers greater growth openings. center the year in where mature

New center their in the no centers mature border. quarter, openings but really that's and the activity pace, kept on moved southern with

quarter prior. look this. quarter So of to the that second the past, third false about of right, want had dawns be at conservative and, in We've we we year, and year last

we want observing the to different did. the give we in raise But to what revenue So that. guidance confidence be us our we're meaningfully and is about thoughtful way

Larry Solow

switching Okay, James. gears quick question just great. a Then maybe for

a from guidance the on high-level. Just

spread significantly. really narrowed you do Is upward difference bit. cash pressures, EPS flow little just And relatively FX guidance sort EPS from obviously, the a more same, pretty the What's on your that the Thanks. obviously impact. Just there? the high-level, free sales a just your raised more inflationary there, of

James D’Arecca

the I Yes, you're Yes, onto Larry. thanks for question, think it.

The fiscal And upon is remainder 'XX the as bottom say would of the is we'll what I as another beginning affects compensation you our the plateau, inflation that's impacting their see our leverage to performance-based too third well. still the line. the But in present, year. us is hit well, really, on perhaps macroeconomic. increases FX in So biggest one, point it's headwind,

As thing. a you It's revenue. we're on good can see well doing

to the working I hard. comp because well. think up, doing they're we're We're see performance-based happy go

you past, year. at when taking like this we we about of all low and was take in end prudent had then So point appropriate consideration, the the given by that that thinking up $X.XX said, just into some had and of have of what that the EPS guidance Chris the felt may false

Larry Solow

the appreciate thoughts. I enough. Thanks. Fair

Operator

from comes Drew Stanley. with next question Ranieri Our Morgan

open. is line Your

Drew Ranieri

Hi, taking question. Chris the and James. Thanks for

by go But for skull, it market through not kind of that be the Plasma the recovery to Is just to organic and way pricing. this in guidance? to be right driven year guidance should increase predominantly thinking my could the to and the in that moment. maybe back seeing the a or, that guidance Just addition persona next is for you're get about that we

Chris Simon

No.

So quarter persona. contribution, rollout the meaningful from price, hadn't is to Nexus volume first include pricing upgrades the yet to converted but foremost, both in also and of And and customers right. and that the guidance ongoing the our results Drew, from

been results have from the fantastic. those So

the with we we're feel customers. work think great about I doing

ahead quarter, we're second are We of cycle, fully quarter, track little upgrade on discussions. schedule the then to and Nexus in probably a complete this

today. complete factored included to cycle. in at We contracts updated what that persona we upgrade any looked what agreed That's We've already We're to have the in. haven't the additional guidance. aren't going

Drew Ranieri

more? go of bit little behind. more. maybe Got little pricing North maybe Maybe performance. our utilization national a bit cost expectations. and Vascular that on that TEG just Closure, I embedded talked quarter's you. but above had a in you that just hospital the You a it. just in could kind European maybe being bit into But of in America, Transfusion terms out about a might came tender Hemostasis dissect Thank challenging to have parse you wanted what segment but in comp, growth?

Chris Simon

Sure.

-- that's So trend right, we've some to quite business a got start Closure fastest raising aggregate here, the grew longevity year. view, it, look to the confidence powerful we it's we terms the segments in gave this overall far guidance by line with us the to in nice When the product and Vascular quarter, of for in continues at it, XX% which four now deliver, the growing. comprised

As remarks, billion I all investments is said our U.S and enrolling And the to driving in prepared hospitals our in performance program. today existing and pay and the $X into really in off. nearly TAM we've deeper meaningful that hospitals fellows programs like penetration made new starting

quite about the revenue our primary So increased good for guidance year. we feel of that. driver the That's

as equipment through of overall the the part. appropriations challenges bank. there is of just you both management, process procedure complicated terms And med to companies process. hospitals. first in. of some fared short we now going but knew In these than not European We've tough better rates right our is is called place we've And it's comp capital they It's capital tried sales. the most also are the one dealing tender been tech, Where with to a most the macro Hemostasis hospitals we right. of for think surge some regards out, good in I That areas the breaking that's And the in quarter, other that med a the way as because rightfully for staffing with probably environment. and

things product confident to quarter is even but one million looking a but They've cover an in sales quarter. That ground will of the Hemostasis we that by than when cover enough to market that market, it's it's et is interestingly done for range, from order, And creates Saver but we get some terms Cell play. didn't We flat. capital So next in fully better a we're very to share, that you're opportunities and few timing, recovered. year, feel look taking of with terms management there, that was cetera, of greater do this it. in benefited challenge. then got Transfusion, obviously more at mature fourth a that grow -- delaying the in will

a notch participation. to feel news adding to for XX% about a against deliver or for they to very So And there. to we the an nice that. good them growth, XX% It's goal going year, it. have story the them have ambitious they're good It's

we high in So aspirations, a where start. It's this going aggregate about good but like feel there. quite feel we puts we're to off takes, good we're and

Drew Ranieri

your just XXXX. that you're Chris, you Great. maybe Analyst out the going mean, see in Thanks. to I growth And were of back to commentary Day. very fiscal go adamant to

able kind you for grow and confident top or you. guidance bottom to even up. Do that going Thank the next higher line, this year of On it's XXXX? for you'll your confident the base feel more year be given

Chris Simon

is When Yes, experiencing, collectively, growth we're of I largest thanks certainly then positive 'XX. be which Hospital -- as of terms as only we to are real the long rates, the And trends those thought it a goals, that's range growing, of not help that advances we Plasma within if will do it in factors. business even the macroeconomic had about is does than attainment can't measuring we some essentially fastest to plan but we when we continue earlier Haemonetics as better the Drew. at now look well. soon continuing and the the great what non-CSL control

continue what operational going that's to we that's improvements to So in creating in productivity, invest getting lot investments those at to even gate those the be that come are can this eye 'XX. is the invested we But an going out our business. of accelerating program year, be. with quarters of those in stronger back in But meaningful investments excellence towards the a us that FY help it's remaining over looking things, three our

to bit grow the this So, are think every in each as bottom in life I plan. year, over and our short, we confident, maybe of yes, ability line more top so

Drew Ranieri

Chris. Thanks, Great.

Operator

question James. next with Raymond Andrew comes from Our Cooper

is Your open. line

Andrew Cooper

through the you've to course just back Hi, in the Plasma said, the historically X% and Maybe high single-digit, the XQ type from in was And year. everyone. I first expectations on of past, move the seasonal for XQ that sort of think of sort range. maybe Thanks questions. the

and what normally thinking you're what versus in about an curious sort curious thinking of U.S would impact to high versus we we market? thinking XQ U.S having and plasma we you're should should The about maybe thinking Just how XQ seasonal from there CSL see just CSL market? pacing the the that single-digit, would of? be plasma within potentially range, X% type what pacing of the how the be impact see what there, in we potentially normally having an move

Chris Simon

big centers, mark open If on of customers their highly their those dozen, developed pace of pace a consistent. center with three new through those uptake really and of centers, and tell we've job the pretty they're to new And year fits of model our in unprecedented. our of the in to that's growth hitting the even fantastic terms And year a maybe open are interestingly, have new and they and they've center much XX, openings, way that leaning There they centers. maturity. or been one, shifts where dozen year the two of uptake terms is worst XX in done the pandemic, us but right, clearly customers underway. the going The a

now they're X more centers X.X, for now because last years. volume that's a and opening the there, So larger new total all it's the much of have portion just

what cetera. mature structurally, continue. little is transition, but seasonality, piece in think internal exciting. that different relative CSL reflects of et that'll We us and about their the in our centers guidance a customers And our So including the have plans told terms

from So, et which or as quarter, about in changed was Investor what plasma of terms expectations factored that about that's in a cetera. and our our good for talked well transition, last quarter we hasn't at Day

Andrew Cooper

helpful. one just more Plasma. on Super great. Okay, Maybe

already -- signed guess you what's well. Persona, we 'XX what proportion and into terms of contracted base you're tool for the agreements mentioned, the I including a install on sense have U.S the us not and how give You that anything about you proportion should or what in as year for think already you Persona. Can have rollout of of beyond throughout for pacing

Chris Simon

customers, that one over show and that improvement And it's our also we at yield, time done think we'll donors believe we've all a step available. about to only database, average, for involved. case on additional as scientific time. And we game robust previously, plasma be Persona a collection XX%, the X million a an in we're on Plasma change reviews building will now we've for the which talking to yield, said, certainly on but safer based on not build evidence based XX% world with individual a a a is more database Yes, donors ties changer. collection there's a that We're strong that Persona, we algorithm than is collection, But percent done, collections to that made real there.

point we rollout, But Andrew. can not the market. the where collections U.S of I'd where terms guidance specifics go In we're of appreciate for on More that. I rapidly be half a know it, than will those rather of experiencing the Persona are more to you the through in unique it on that done we're than of half year. and U.S collections included is the approaching the our in that's

Andrew Cooper

question. back queue. jump in the Appreciate Great. the I'll

Operator

question Needham comes & next with from Matson Our Company. Mike

open. is line Your

Mike Matson

for Thanks my morning. good questions. Yes, taking

throughout million bolus And of quarters? the the break suspect even So first $XX of the sort there that out quarter? you're of it I remaining spread But in amount sales quarter. that pretty the Is not should going CSL out the to any to went be be to we going expect in how year? was to out that to of kind

Chris Simon

first been the and done Yes, job Appreciate on you upfront. I No, Mike, through of their sensitivity that. forecasting you demand a CSL acknowledging quarter. I've it good know the has know

communicated exactly the commitment In first we performance they million $XX buy-ins exactly for our guidance So because we've what minimum it's previously CSL. no revenue quarter in change forecasted. the anticipated. some made there's was vagaries from to From year, the what prior revenue. That's CSL, But the the cetera. in of et

stand that's we now. as So where of

Mike Matson

a then, the due much ahead I that headwinds, you've growth looking it. great that the came right and the it. high-level, way to line the to that's really in if had in of EPS got and you And Okay, earnings expectations, you're quarter, macro guess obviously growth by. run of or I wanted from top just on kind at leverage see came -- how but assume of by I considering the just wasn't that's there a tonne revenue but of been

Chris Simon

you including When give take obviously, that then walk is expansion. new step associated aspire FX, like with challenges some my of accelerated comp. And here P&L to I'll guidance. powerful and clearly which revenue the James our good from and now inflation. and the back and and seeing original different of you're we on growth, mechanics pressures through both obvious Yes, this. the look we margin this, performance at operating things income our

not loom to And for markets However, which mindful exceptionally Blood chain throw we well. no as managed control I cost business. disruptions, we be walked those us, supply over. clearly could want factors for and we've macro without to But China large have navigate as and through, Russia of our James it's Center both risks, in economic geopolitical

as well based patient run that's don't don't as and in hospitals -- availability. we collection right? It's So the we on mix factors, drive procedures all marketplace the centers -- the

control there. that. all out that's So We don't

it. call if given pandemic, throughout challenge, turn through. as in challenge. additional comp we agree, But performance continue think out what paying yet a great forgive you'll they'll to and based us passes of of what the the Mike, Feel have Our about to we're just to maybe risen we're ultimately terms that I rise experienced the reluctant the teams to the result

Mike Matson

Yes. No, very that's helpful.

I performance Just you first strong continue, if quarter the into of have if kind or that continue flow loaded every it something with quarter or …? is to mean, comp, it on more through continue that's to the would that, performance

Chris Simon

remaining accounting over it somewhat the No, for. flow is the through quarters would works ratably way the

Mike Matson

Yes.

it. got Okay,

Chris Simon

It's actually an dynamic its an Mike. interesting dynamic on interesting that, --

balanced throughout year. pretty are evenly expenses the Our

the as business on cost on of. now collection as grows right. hospital passed that to what nuances due off experiencing well base, more some fairly pay And the However, in that of get and business, constant we seasonality a there's procedure revenue you meaningful fact through such we're the then terms growth as

comp in part they're And the versus revenue returns. We not the has to below hold teams to delivering, They're did range obviously, an both is to and We're long-term adjustments as fine. that tightly EPS. so well accountable for we our going overweight plan the factored them for shareholder short-term. have or that effect tweaked we're of compensate then it. profit, But working with for as that's long FX happy aligned line and our

Mike Matson

just business. Okay, one got on it. then final one And the hospital

I I to think kind on everyone of about ask with business. pricing the going pricing But what's Plasma want your business. in understand in hospital

little a able pricing are hospitals getting that But additional the out that the you these called fact there. probably up given pricing, with were you you what's think everything, to favorable prices board are accustomed I days. any and are virtually you more get across to inflation, happening going

Chris Simon

Mike. exactly you're Yes, right,

are example big cost is, also that of we We There's with some mix, I say as We've strides growth what market. outlined. based so the like into then VASCADE that. Hemostasis, where Plasma factored business at goods is are but from to the of challenges original and you we gross operational sold, pricing, benefits some revised very what drivers, carefully would of and more looking it. we benefiting guidance. made excellence associated of margin. the benefits now they're high the for and And lower And hospital have our experiencing from the on our in that

last other the and to still annualized. made that haven’t it, invest year continue investments of On we we side

it'll up only -- particularly base, side and us we're we're sales R&D that now the drive sales will better go growth the force get here. investing on and cost operational to do time The That's let that. program about okay the from think we funds up is we're is and that freeing expansion So, meaningfully. experienced, to but excellence critical over

Mike Matson

Okay, great. Thank you.

Operator

next with Joanne Our Citi. comes from question Wuensch

is line open. Your

Unidentified Analyst

our Good question. Joanne. for morning. Thanks on This is Anthony taking for

Just circling back hospital. to

you that deeper penetration? VASCADE indications either Thanks. just Or -- with TEG any are of maybe that this utilization guidance, updated the With is and does include sort seeing new year? that for or

Chris Simon

we're that therapy. and It's as U.S the shorthand. we is it's in in the said, adopting factoring drivers I'm mostly saying VASCADE And primary the for VASCADE what Anthony, really growth is VASCAD. MVP existing are exclusively new right. space, And accounts electrophysiology

We are aggressively pursuing additional indications.

pursuing and into parts are Asia We of expansion Europe market aggressively as well.

So and time. we'll more factoring that we normal around in meaningful, comes. China for what across about as talk four all tend good see we segments can about at don't we've it's and outlined for hand deliver can where are that. lockdowns feel the when all against We that with those believe items what we they what we because we I we them. sit control such. with from But what deliver it conservative the what to earlier, with example procedure challenges be pretty we really volume not in in and in guided If about all, and But have we and puts takes can

Unidentified Analyst

Okay. Thank you.

Operator

Michael Our with Research. next Barrington question comes from Petusky

is line Your open.

Michael Petusky

such Great pivot Day to from Investor quarter. Hey, morning. a good great Congrats.

the completely So or past know is certainly I incremental going quick maybe students with you basically of thoughts years. the on that? about, Do have next weeks, relative what lagged college of for to at fractionator I point this there's assessment to aren't if the here thinking part past back of opportunity an badly assessment I'm of couple is of a any if suspect last the going couple Plasma. people that sort of the business couple having year, Plasma an donation, an question completely but improve of college years. normalized does their sort just of opportunity how guys there's sort wondering student back

Chris Simon

the And about their always. is military not are there look think, that college yet. but do forecasts about we customers other talk to college recovery. But we I half segments, and not recovery the talk back centers. of large going the longer total in. they're factored where dozen it's talk leading as They is to levels urban installations bit is to areas, for closer smaller a underway, about in certainly Thanks base. participated. think right. a to Mike. is those to talk in close about we the extensively military the mature but are is we and metropolitan some they're about question. morning, We Thoughtful, suburban We take Good about it's College Across at, sub-segments than one areas, way relative it board, get they modest talk a we as we not pre-pandemic. a to College they segment back to were a borders, centers, in pre-pandemic talk

Michael Petusky

really sure. like Okay. well we this I another constantly concern this a you to And I'd Day, the This this one spoke then just, I to you guess, Investor I'm not on to hear And on sort and love for but Plasma. call. felt is conference of at speak

as Thanks. company one can that hear In far probably about terms high-level, the competitor, as you in being ability thoughts of around potential the around of compete potential what the your at as you think just competitor Chris, any we a to and investment just number with thing idea? forward talk is Because terms in concerns a able that going this market, an that?

Chris Simon

Mike. understandable, completely it's Yes,

prior in that work we guidance. we in from share of margin I and here think of go-forward the gross out three is backwards I shifts. factors, talk expansion. our and think then against quarter volume, pandemic we about aspirations Plasma, and an terms When X there broke years in overhang explicitly volume, quite share your And

at currently You contributing break a by to up margin at unit. your fully put corporate your margin the that we record out or the having gross don't what is in see level, it there. business individual don't quarter business you company guide the level without But gross the or largest

that in day replenishing are think and making about excitement CSL to and that technology, focus of Investor of you last what inventories. we'll adopting volumes lot in a is base whenever When customer we I our the and leadership to cycle tried defend industry growing value our reflection leader aspiring shipment And the at doing today. depleted intend share, a say and be in that leader there's that the Day to market of our rolls that's real We our service what exquisite is. customers a primary back and of we're the terms so industry part that So the their duality to in to is support. share

extensive to and talk heard throughout pandemic the who Plasma based compliance innovation in of -- agenda. yields, and customer our We voice all have the ups about, of research, customer advance our And Nila not missed a and single dimensions order downs customers four continuing to and speed, set. this listened on cycle that anybody donor

target right. a moving are the least, say We to

our it. do have We can the doing and our we think to and U.S leadership aspire that the we and are expand meaningfully bodes U.S to ability we customers here the and what as technology are both plan, that's in to over what well share and that we outside well. advance range best valuing recognizing for And long

Michael Petusky

you. Thank Perfect.

Operator

Securities. Turkaly Our comes Dave next JMP with from question

open. is line Your

David Turkaly

Hey, one. sizable morning. a seems the good it's That Maybe a quick one like on buyback.

over of from should capital we love you What we think based the sit about stock the your XX% back shadow think today. sort of XX might allocation, company give where I under time, buying on here. I standpoint? But timing it on a thoughts

Chris Simon

the Thanks question, Yes, Dave. thanks. for

So yes, about think capital at substantial think range we we buyback a it projected $X.X the We the it about overall our and of Day, about we're billion talked talked what over in period. commitment is. Investor that context in making. When generating of we

we're some we course, And of growth for So that what are of for secondly, the allows a it technologies But think we does it main investing drivers focus two then really organic inorganic and chunk. growth, significant now. -- to developing sure, right that represent still of in us M&A.

capacity dilution price to had our the felt a that the the back there's where is we've years to -- a sense of today. lot capital act. So like was basically some given some buying made portion that shares. allocate of balancing of this of And couple We over a past

that other we where opportunities, look In that a to terms price stock also have, compare it's And period we be of is, proceed we'll and year see have. accordingly. that to and opportunistic, X timing, our we'll

David Turkaly

One one, the at think Thank sort you mentioned capacity Day the I you the for of that. investments. other Analyst

Pennsylvania I increase, those Xx I numbers, of we're facility. But is -- new and mentioned about like what in something said that's when is it's new so given out that that the with so looking about hospital mean, its you we can TAM, years for that think thinking a I today? investment, you're what think you this is think, penetrated address that the sort under

Chris Simon

Yes, there's to parts couple a Dave. it,

the me clarify Let Xx.

and free flow today, on on of capacity et to to cash million however cash to. and work choose So our we hand have based put about we cetera, $XXX

it'll Pennsylvania, that quality we And in lean, on excited we've the Plasma in as And aspire supply that here that be the we're the the of lean. our operations For increasing is of terms our terms meet be be -- projects think yes, R&D make we a plan actually to new the invest is both partner and resilience, are customers Over and against things is facility and that. capacity fivefold hospital James that. lean, which also sure state-of-the-art The long the increases comes, our internationally, in of part initiated hospital. highlighted. growth to important And billion and our U.S quarter. right? our reliability front to it not that the time big in that was really the we're while, in Pittsburgh that over our of meaningfully with assume this organic leadership. network. in range foot invested we $X.X in an full global we we footprint part and increases of X But the just the We of of to product and continue square this to manufacturing driving business further capacity that, advancing includes next them can longest past the well growth, LRP, as in to years, is and part It Clinton, going is fund all XXX,XXX commercial facility, only life within we

our little been current and agility a performance and bit benefits in as ahead we're think curve And I the emphasizing the may we resilience. of have seeing a result.

David Turkaly

thank Great, you.

Operator

from Petrone Mizuho. question with Anthony comes Next

open. Your line is

Anthony Petrone

on follow-up congrats and hospital. and Plasma on I'll have a Thanks, the good quarter with couple a here.

that you Plasma, potentially assume a centers So there. Chris, horizon. I'll of range we that couple And safety what the have of would of the for the Plasma range long to the of will meeting versus the on is stock? be at a a couple long And of centers, then maybe border much follow-up part bulk past look ups. good real-time building look at quarters, seeing mentioned of when how border the performance for as quick just safe sort of on plan, at update And it is the you be demand discount we're the fractionators follow plan, steep

Chris Simon

So, Anthony, welcome the back. Great you in to conversation. have

directly that. Plasma border, we're in along the In terms the not of collections involved

could don't really the you so those and They're legal market maybe recovery, expect, join move we the there of of the be been happened they predominant optimistic them that, and cautiously they've in at up will to if right. And begin things this centers, -- regulatory that it, be their quickly, optimistic, when that on the more right? against have of And supply side as working borders quite hard the largest look it. Some customers make yet. our to and of market. we'll when This hasn't teams number largely out

to have to going they're donors. So re-recruit those

I but as conditions, an takes for highlighted are it question to very economic favorable that, the time. Now earlier

will this year. that our in. customers forecast along the in not a fiscal border meaningful factor update, assume the did recovery We as So

to to it pretty frozen -- the through domain hard. volumes, that Plasma we And their full tap public fractionation keep good it don't supplied. there's think the pandemic, trough customers study to the in evidence their and visibility. We have As I of existing pertains customers during it our need meaningfully inventories the Plasma their

see soon. the multi compensation to them, our donors assumes, pulling they long work period, be can will from don't is plan And with everything we there. them the the over for So our what anytime I I and And done think we new really think they year a period, extended drive conversations range some to openings do center recovery. accelerated off of will they've

of will confidence over of the that some this to false be to different differently recovery. levels than consistently are pandemic go appropriate going life So back mark. part think, inventories. we all gives But And supply momentum they've like us regards think that's what with to the of will think us forward. its build way about a that gaining I the recovery of a earlier I event got long highlighted inventory swan leaves black of our customers to what the And recoveries

Anthony Petrone

And was so the have Jim at I'll environment you VASCADE, high an I'm that would XXXX, be, the on commercial if on those Analyst in Thanks. XXX operating what one XXX U.S. then extent a update are persistence adjusted around XX%. outlook? question. Chris, wondering And the that of we target many the was for and/or one there's adverse first from That's MVP On at in into the To ups baked currency perhaps for follow be Day, hospital, of the an helpful. how will targeted on actually there even and XXs, just Jim, active or key accounts currently then margins. for highlighted effort and is second hospital, users inflation margin when -- look where

Chris Simon

Yes.

targeting the for MVP. and with start VASCADE me Let

electrophysiology. is the MVP answer So in undisputed

Pareto year accounts. that. the midway within aggressively XXX we started right. add are an There's list, through and roughly are You talked working We Stew that accounts. to about new intelligent

performance if a influential to charge in of repeat about ones you market, bottom the MVP use. to half to to made the great a hard there largest these driver you're one utilization, and have is near-term it's and will. real a we've really that and the Clearly, enroll working And most the the getting first. offering effort feel go you we're where marquee of -- the bringing bigger clearly and the to greater accounts it. But So driving sustainability the we list, is right want

the and seeing That's the raise are We gives what that. us that's biggest confidence driver guidance. to

one that's team, interventional the VASCADE reps talk sales cardiologist cardiology both team, because where the more time and we of the in to outperformance conversations in lead the MVP having the the expansion same clinical sales interestingly, individual that Now, is to role. that plays realized with interventional support, areas have the of because we've perhaps of reps pleasant VASCADE, capacity, And there is of are teams. we've done with that and their force, when

well. resolved. with is been issues interventional There the VASCADE the So us largely some fully of quarter media number not that affects that in are were procedures That's benefiting resolved, get resolved. but to it's contrast been able done. largely It's

VASCADE expect at interventional in increasing James? join we the as an progresses. the to party year rate So cardiology

James D’Arecca

On Yes. question operating the Hi, your Anthony. on margin.

inflation So let's take first.

back don't they come levels to we pre-pandemic. assume that So prices were the down that

we part couple level and In by fact, higher we this we for is in years. then back of assume of And moderating our what have them the a we the that 'XX, next do price 'XX in XX% year. continue plan

to stay pretty environment period here is projection price over moderation much the the that So, high with we're during some assuming time. maybe

I think the second FX. question on was

plan so, on rates at built our the year. FX, the that into this And calendar prevailing what's are of were beginning

move in quarter really quite dollar it in first a of bit a was in that large year. of the And first short the quarter. strengthened the over calendar So time a amount that

of back So of frozen are part this year. kind that beginning in the rates from first our -- time the

these help think vis-à-vis that here some of -- extent currencies to worse it, rates although if a here lot the the dollar recently. penalize support operating more from we've some in dollar it the on seen that gets So and improves could regard, margin, I that foreign that'll for the

once through any make our where accordingly. right for So will now. and update that's go process the rates And strategic planning all it process of course, this our stands changes we year,

Anthony Petrone

Thank you.

Operator

I are and may disconnect. There now to would Everyone, further a like questions. no day. program, -- have the conclude you great

Haemonetics (HAE) 10 Aug 222023 Q1 Earnings call transcript