Earnings call transcript Q3 2022

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Operator

Good day, ladies and gentlemen, and welcome to the Artivion 3Q 2022 Financial Conference Call. [Operator Instructions]

At this time, it is my pleasure to turn the floor over to your host, Sam Bentzinger from the Gilmartin Group.

Sam Bentzinger

Good afternoon, and thank you for joining the call today.

Joining me today from Artivion's management team are Pat Mackin, CEO; and Ashley Lee, CFO.

like safe the Private harbor Reform of I'd comply statements Securities begin, Act the with requirements XXXX. we to following make to Litigation Before of the involve that within statements meaning XXXX. of Litigation forward call are Securities the this Private Act on uncertainties and made in Comments time Reform risks the and forward-looking look of

a of to company's number cause are hopes, beliefs, intentions, forward-looking include statements management's statements estimates uncertainties, statements The risks, from actual forward-looking or of made forward-looking the predictions and or subject may These as statements. to differ to the that these future. expectations assumptions materially results

Additional from in release that information impact contained time may to that was issued time the press earlier company's risks concerning and and today. in uncertainties filings is these forward-looking statements the certain SEC

turn I'll Now CEO, Artivion's call to the Pat Mackin. over

Pat Mackin

XX% that each of currency to remain deliver quarter meeting XXXX. fourth business March. to first on we Thanks, Constant growth. constant track to Further, report on continues I'm nine strong months our in of our Sam. QX was our at our we delivered we've consecutive commitments made as total growth investor solid revenue and revenue now top-line of the compared pleased momentum currency

processing 'XX grafts saw QX our growth on of grew of compared grew of the specifically, third For XXXX, quarter, X%. we XX%, categories. versus tissue product X% basis XX%, QX top-line grew grew to More across and all a currency On-X BioGlue constant stent

is is months the all is up nine stent of to the up For processing the On-X were a grafts first last nine up year, constant on tissue BioGlue compared XX%, year. down and XX% basis, of months X%, first XX%, currency

have European derogation to secured should was through our be unclear In Mark. it in will derogation into we countries the extension pending, were in have able year all the continue virtually allow if us BioGlue we CE believe derogation to U.K. that by we end, to the France requests we'd time third sell continue and quarter, while selling which BioGlue, extensions Regarding and QX.

As a QX million result, typically that placed QX. we estimate additional orders would in in have in we $X.X been believe an

received orders BioGlue which extensions, October, XX%, to prior If already had by in those has these months for BioGlue's not first the QX this derogation Therefore, in been BioGlue we increased the made these the currency QX the to orders. on compared we increase both countries time, to basis the in in QX been year constant Fortunately, our purchase contribution in customers reflect quarter expect of total nine growth and QX, a the have revenue would third year. fulfilled.

that our all to in Our success continue through revenue reinforced can Day XXXX growth and initiatives deliver will believe we on growth Investor our we three these we our outlined fronts has in double-digit which March, drive on confidence currency beyond. constant

our As a are as initiatives reminder, follows. three

First, we aortic On-X growth stent drive and grafts. will in continued

we will indication. INR our to regulatory third, PROACT investments Asia Pacific the through and drive we America. Latin growth PMA 'XX new On-X approvals Second, and Mitral in commercial U.S. in beyond approvals in for in channels from low and continue benefit the our PerClot And and

constant on the the And year. last year, third previously, U.S. of by basis mentioned grew compared year, a a last On-X to quarter in compared third in revenues our XX% basis. Europe, compared XX% currency on to to grew both revenues where As constant of revenues XX% in currency the last quarter driven increased XXXX strength

third year-over-year through quarter For at growth Even compared down in quarter constant to revenue stent growth sequentially of quarter, XX% to quarter though X% graft compared increased third currency stent third second year. the the of our currency on year-to-date grafts, on in the was revenue constant basis. stands basis a last a the the end

approvals our footprint demonstrated Our America we're expand is Pacific presence on continuing Pacific on and revenue regulatory strategy, new Latin very through initiative of Latin the report pleased well this to constant to extension, respectively. Asia commercial and execute by track. third which XX% in as that XX% I'm and quarter in and to growth next also remain currency Asia America

contributors be We continue regions years. to to coming these expect growth important over the

and and the we've On-X third U.S. we supplying end On-X XXXX, the is to for with payment XX, Baxter years by two milestone PerClot the approvals million regulatory under divestiture the approved done share our INR we'll we'll thereafter. we market track $XX for approximately will revenue receive by valve. On-X valve, just PerClot December and the for begin Regarding Baxter do with take mitral we agreement on aortic to is initiative, of the INR as to from low continue low If to If the generate of in for believe receive significant that year. valve our for the label label approved, remain PerClot mitral

each addition to AMDS make on on trial. progress In our the progress these to continue initiatives, we clinical of

failure dissection. have and endpoints patients for clinical combined full the been up trial an primary is aorta. mortality, of all-cause who our re-expansion XX the disabilitating are of as new-onset and in patients half we stroke, safety completing lumen The XXXX. as now in true infarction XX enrollment non-randomized We renal the to AMDS, in experienced enrolled the trial U.S. well centers, have dialysis anticipate a For which first of reduction efficacy requiring new the PERSEVERE type acute XXX trial, myocardial A in the

in assuming period, should approval FDA we its Following AMDS receive the one early that meet the for follow-up XXXX. endpoints, anticipate the trials we year

PMA XXXX already on a enrolled of June partner, Endospan NEXUS IDE if good would completion again, Endospan, treatment. for aortic estimated that for approval At and XXXX. our for is stent are we million. patients assuming system. and trial as addition, market XX approximately there in XX approval trial's enrolled its treated our FDA the and and In opportunity $XXX of an in addressable trials approved the trial increase NEXUS anticipate TRIOMPHE endpoints Endospan anticipated, U.S. In these we and PMA progress total a XXXX, making arch AMDS patients are products estimates exercise graft in for trial, To option time, by assuming our proceed met. that these reiterate,

Regarding trial for I'd PROACT of trial, into and priority Xa, patient Artivion. while always Safety we were of perspective recommended #X Data the the and as what to and our obviously surprised the by be is means PROACT Xa stopping put termination will safety. like the the by impact Monitoring Board, disappointed

impact have year outcome for trial PROACT three the termination not revenue revenue seen had had Day First, positive the successful, years three associated and changed. been Xa from schedule. would if we guidance has the the outlook trial, on trial current presented revenue Analyst another year the if we at of our Despite not any our remained

aortic many that our mechanical in is market. KOLs as believe, best we believe, the Second, valve the

Our due with competitors. business market the expect valve, and but aortic a share positive the to trial to expect On-X, we clinical doubt, trial gains we over not result without to pace valves its have No beneficial outcome taken change. a to indications the since of valve would On-X fully and or for superior do benefits share aortic every continue that positive grow we in market accelerating year our been acquired have

is market billion unaffected and Third, poised to remain have have our and addressable would in than the the Xa We time earnings. pipeline add our growth been grow more therefore, $X opportunity revenues to by completed. substantially still drivers PROACT our

trial in trial. the The inherent down are part product are the largely will positive shutting unfortunately EBITDA. portfolio of pressures, inflationary of to as implications of so. each many expected 'XX continue we now cash million redirected majority PROACT to flows to innovation, and years from Xa offsetting financial an and exemplifies and impact be successes enhancing there do on the we Finally, $XX the setbacks Clinical of our 'XX spend

We will and and the the of continue patients we to support to around products world. lives innovation improve develop seek as prioritize

Ashley. I over now turn the that, call will With to

Ashley Lee

up were basis Thanks, Pat, everyone. of constant basis, X% QX revenues and to and the compared a both XX% GAAP good a up on currency third XXXX. Total $XX.X on for quarter, million afternoon,

revenues year-over-year across XX%, headwinds. a to processing third currency XX%, As tissue a and On graft On-X increased tissue to basis increased quarter BioGlue currency lines. of XXXX, product Pat and the revenues mentioned, quarter XX%, stent X%. revenues constant decreased growth XX% X% increased of we currency increased saw third due graft revenues On-X On X% strong compared revenues BioGlue increased revenues the all processing revenues in aortic basis, stent increased constant increased aortic 'XX, X%, revenues

America the increased decreased third increased XX% Asia XXXX On basis, increased to in all compared X%, 'XX. a to America North of third third Europe Pacific quarter basis, XXXX. XX%, XX%, revenues regional XX% Europe increased quarter a and America the increased Asia XX%, North to quarter constant On Latin America revenues increased X%, XX%, increased in and of currency all compared Latin

remains in Gross as within margins well and high of were BioGlue aortic Inflation was labor weigh product our for persistently third our the and The will primarily by XX.X% on lines. and inflationary to impacts compared margins. stent driven XXXX. QX quarter decrease as XX.X% product gross on materials graft mix

March adjusted we in to on now at Investor our growth top-line we still of the Day. expense the continued due made revenues, along management, the cessation commitments with EBITDA delivering our in study, available Xa funds our with However, general PROACT anticipate

G&A were million third $XX.X expenses of in third the quarter 'XX. compared to in million the quarter $XX.X

to and of and the quarter acquisition-related 'XX compared third charges, the G&A million $XX.X quarter development $XX.X were benefits million in of non-recurring for third Excluding 'XX. business expenses

the Safety the the third wind The recommended with million the include for $X.X the of share. the and excluded of purposes these drugs as per the included for quarter and and patients for study the estimated them administrative be R&D site by EBITDA costs recovered. and well costs for Xa costs expenses first costs of have of non-GAAP Board. future non-recurring earnings as of XXXX fourth to PROACT Data clinical in XXXX study, not termination and cost that be of and estimated during These incurred quarter a will we purchased majority participating expected associated down as Monitoring charge adjusted are and calculating quarter

million foreign 'XX. net bottom loss $X.XX the loss or share includes or $X.X of or On reported share $XX.X per the a third net share loss $X.XX loss $X.XX in in we line, and net diluted to GAAP quarter. of per per revaluations. $X.X million non-GAAP due approximately fully currency was third quarter Non-GAAP million GAAP the

wind amounts these $XXX,XXX with PROACT $X.XX the per and Excluding down was income Xa or the trial, non-GAAP associated share. costs

compared in to the revolving the our under million quarter full XXXX. the credit As had facility. million million of we debt of EBITDA September in to third $X.X $XX approximately $XX us 'XX cash, Adjusted available XX, for for XXXX, and quarter million was $XXX of third million $XX.X

our rate capital capital to SOFR rate we Regarding fund a not do structure we believe X.X%, stated, raise or service approximately at in and place increases pipeline. growth. would believe LIBOR channels we of debt to we've and to be the we our if approximately our our invest additional debt, on our investments impact our rising Even able our environment, need as comfortably debt our X%, or in continue still to which to all-in will that

additional study, the With funds re-directed mostly be and to we will an to and the earnings Xa cash allocated now for the 'XX, $XX -- 'XX previously can each of of study, million cessation directed of flow. PROACT which have

default, covenants financial million unless any that the do not. than Our would our place facility we no which Term we revolving at in credit were on more us $X.X calendar to of end Loan quarter, drawn contains have B

and have do million full foresee now, $XX on facility. we credit the draw not the the facility available under of need As currently to our

refer to press results notes of Additionally, our non-GAAP do our results. reconciliation our results, covenants. additional Please any convertible including to information GAAP financial release for not a contain about our these

headwinds And faced currency strengthen, for the our in FX year to XXXX faced outlook. resulting we our the we headwind million XXXX time, continued now in constant currency dollar our quarter call, prior $X we comparator headwinds. fourth quarter alone, a XXXX. incremental for Since has revenue in that to putting had million. approximately $XX last of In the stated approximately compared $XX year, last at And fourth million currency versus

the in and benefited the the orders implies million, be slightly range $XX.X that and for quarter. revenue accounts million quarter in between in of discussed XX.X for constant previously million of between $XXX mind, of in XX% in contemplates range revenues year With to from impact million. This BioGlue year our $XXX third our of $X.X X% to that which the full guidance stocking we growth the currency expectation fourth full narrowed

back for I closing call will Pat comments. turn the over to his

Pat Mackin

Ashley. Thanks,

strategy the we've execution our envisioned. working continues So quarter consecutive delivering our growth strong of and is to confirm to fourth summarize, results

clinical continue we next double-digits We to expand approximately to and footprint programs. invest expect $XX generate on our commercial Xx, In and million reducing the to global and gross as margins. grow net leverage revenue $XXX faced headwinds even our our to in from despite further to million years, $XX million the than as in its impact well to EBITDA inflation less we adjusted three

regions. constant We in the quarter X% graft growth success growth and Latin to stent currency with growth currency to tissue, third summarize, while in these in in X% continue saw XX% constant Our growth in us these in and metrics. deliver constant XX% BioGlue posted America, positions program. we well XX% To On-X, currency growth Pacific with on XX% we Asia our aortic invest

have pipeline. we lastly, very a robust And

AMDS and we approval study. Mitral as clinical assuming on by TRIOMPHE On-X end option. the addressable we Endospan opportunity and by early and We our well currently to PERSEVERE we expect U.S. to NEXUS receive by expect of execute They PROACT Endospan total million the PMA as have trials XXXX, are the two $XXX market expand the enrolling enrolling, for the year PerClot

for all around mission. all, to this essential a is aortic employees in At point, and execution. day continued our growth to world on for pieces Artivion the have place solidify as the want in bright company our out I sustained In and on continuing day we deliver we position all and leading Artivion focus the in repair. thank future our for

that, please operator, the With open lines.

Operator

Rick first [Operator from comes Instructions] question Stifel. Our Wise with

John McAulay

Rick This John actually is on today. for

first pressures the exit expecting. that on complications, you the quarter, face we And of lower a you third as just as you European did over of just is into be do FX you know just supply what was ahead generally, second It look if how So kind 'XX, kind any next on early easing, one And me, in chain, year? count, trended ways saw for it's quarter what were I'm in then I things the throughout? in seems little macro curious head these curious, you I'm your into that, on how for of performance kind there? What like it opinion still we that? whether staffing, see but any, than did regard?

Pat Mackin

our year, in would the stent kind as we're up side, I the of kind issues mean, European primarily on real XX% staffing of I had and know, the softness guided Germany. was related to say, the that in Europe We've saw only in stent we we throughout you on on was year-to-date, graft side. to grafts XX%. XX% -- seen, facility we're And

be. ahead of still we expected we're to So where

America. really in It's kind been in rapidly rapidly teams growing growing of We're Latin growing a exercise. very We're Asia.

at Germany. our hiring shelves. have We on getting demand challenged And facility huge manufacturing on rapidly products. we're stock by these And we're in

product. become the abate. mean, time news a of the is, kind available, door. every will good demand literally, that very high fly that's products I out The they So

a -- in I kind the was think perspective. of that in European biggest was slowdown from

good the second news, again, hit gross I you our I had that's mean, On materials labor if margins. that, impact a inflationary clearly, has is question, gross our direct something on look mean, news. macro And at the on and margin, bad

aortic business barrel disease. or -- a those I like treat in see not with everything looks recession. what the staring our think it to that a we're the recession-proof, But Fed gets reading, we and how are is mean, fairly I it raise probably rates. that way they severe the stay. given of happens we'll certainly we're unfortunately, is down here often Whether worse, clearly, And

U.K. year, I of that currency comment again, for rates Currency, should on takes. the But these headwind. the I just far which saw as Ashley projections up let lot mean, a depends buoy on as raised governments actions that their I'll by it next the X.XX, maybe pound. that

Ashley Lee

from somewhat dollar same the who we that I guys you mean, at that go are what right again, next we weakened read anticipate year. knows should mean, I least probably throughout now, the all reading. the And Yes. we information rates as indications, seeing. we'll seeing that as the in that now as actually rate far environment, But first peak end everything we're right time slowly this alluded which to, should interest moderate. some half of up then is Pat and hopefully start to year And

outlook we we when for our in So taken kind have the of that 'XX February. communicated account view that's into

John McAulay

question. And just of one then more kind follow-up then quick a and quick

could due quantify the would that issues? On of you saw percentage guess, was you the or this number shortfall side, of you aortic Do the I exactly that that, some how supply a much have stent graft reflect to that? kind quarter

Pat Mackin

is with about will given the of demand I It's roof. it. particularly that's hard the a high on Again, the I problems economy the going they're through that harder solvable sitting like have demand going the headwinds, what's say. lot solve to We can line you that tell to that's I conversations a I'm product got a super with where kind demand the It's a when way. solve other on -- when macro problem.

hiring we're kind -- of operations side. we're the of on on we're and streamlining doing confident the So doing the the some with that

part we're look can I've that places were a you companies. it puts I XX% worked you. to the a other work in this have mean, we're companies, But And of a I on. The fast challenge worked other don't we think in -- XX% grow folks line. to for mean, chain. XX%. told that a of at the complex year here, it's for at part supply we it's in lot pretty we like and product going is, businesses of I just you pressure growing And I growing that's and think I have challenging number number and

was but more just So I the mean, of little quarter a it's anything I else. growing think off, a issue than [pain]

Ashley Lee

people thing add facilities the alluded fortunately, made. in good talked the facility. most investments some and that, equipment compensation is made over I'll facilities to purchases in last made been And One the to we've our of as investment several But we've Pat recently very we've address And John, have we've about that been to made, changes the the getting that, really some the been having the structure have earlier, the in labor issues. into to success quarters.

going that we'll able to we think So seeing. demand catch these issues are we're that and abate to with be up the

John McAulay

And we SG&A maybe Sales year. there? expect FX see start I But you we cost one quarter could ahead into I I quarter this be may kind and operating to to of see more more sneak lines, R&D in we mean, the on from trial fourth limited just shutdown. bit creation growth ahead? should next more EBITDA R&D incremental faced next leverage year, leverage the of on meaningful the expect mean, to what as should an a But by and here. look expenses, and

Pat Mackin

some in the I direction. remarks think comments that prepared we made you of that in kind guides

So we that's Xa, year PROACT on $XX out. a million were spending now

on $XX going we So R&D, were million. spending to be $XX if around million that's

drop of there. not a So with kind you that see expense being direct through

other to in plan. is, three The leverage we've thing our get expected year

in $XX we faster going year to EBITDA believe $XX in to year in headwinds. 'XX presented look we these going significantly think $XX deliver the revenue EBITDA and New even If of had March We York, what million can we grow that. than we of face we're next to back at this in million you million

increase we communication us. cash profitable in in benefits flow in of importance what more -- the the we is EBITDA we will one we see of have front a control environment, our that But EBITDA this can give market realize company And we being significant we'll So a on next year. of and February. of and in

Operator

from next Capital. Lake Street from Takkinen Our comes question Frank

Frank Takkinen

And And on wanted then could to can specifically you ordering any a Xa your talk you was PROACT if since PROACT patterns, there's negative feedback heard have accounts? feedback like if commentary about any there. maybe impacted any performance being halted, hoping been any future Xa, speaking of you've looked to anecdotal around those start really I demand? share I solid PROACT around Xa? from

Pat Mackin

and number the I in in so did post were have were guys your the and with like -- your been surgeons say, I've the actually anecdotal growth a big to XX% nothing, quickly lot market. so surgeons -- best confidence in On-X does mean you the going of build trial like U.S. but in it that I your of forefront valve I've do your and valve I talked the -- comments Yeah, used enrolling I words to realize company. trial growth hadn't It's the on in we before And stopped in [ablate] the patients valve. valve the started XX% this using I trust had the valve. quarter got but but aortic way using trial patients third to The I'm trial. that trial, I I bold the quarter, at mechanical heard revenue have keep the with and you the some valve, a your

the XX%. INR label only -- market least, bleeding with low the So reduces with U.S. but last, we a not that are company and we're in

So I a this show the -- On-X will it change drug, failed it doesn't didn't On-X think fail. published. that. with And That although will Eliquis, the valve, be the valve is paper

Valve I you'll will expect well extremely market performs that out mechanical with and to to And the we see But best what coming is going On-X grow the in in the continue it that Coumadin. the probably forward. data is valve spring. business think be

Frank Takkinen

the you comments those the and power on to to pressures just if products talk of intend the some and pressures. around guideline your through And into then Curious if all one year? could run inflationary you pass just on inflationary maybe more price selling pricing next

Pat Mackin

an we it's lot we have it's kind more patented where products, of give pricing a by you not very it's Where we rocket by in have power. I have obviously ways, -- I'll mean, product example. proprietary some science, region.

Our growing competition. competition SynerGraft leader. XX% now. the growth is and SynerGraft The pulmonary with pulmonary procedure our valve, business any I our very tissue valve right rapidly. has We're growing very is growing significant had which kind rapidly. it market won't mean, the of raw We've with no have

can where an price. that's example of raise So you

business, tissue area, not the the vascular competitors. we a a of have differentiation. In couple There's of lot

So if risk the losing you share. price, you raise of run market potentially

of The very frozen our lot other of system, XX% I thing news range. a system. the a are our is, thoraco-abdominal trunk, are good of -- lot margin all of our XX% here, our one pieces think AMDS products. Neo newer Those high products, elephant in our to gross E-nside the Those

And differentiated most margin. products very that newest, going mantra products are that from a gross very us for come see us forward be out our is are to you high is going gross that margin. So high

passing portfolio, we our a in of if have are to be to in like on which price. competitive where stent we technologies margins, will it's offset tissue legacy open price be high some cutting-edge lower a along which will will But pressures. And pass these gross reassuring. of be we products of Some looking market, But you're are inflationary graft talking on margin. the we is have newer lower contracts, differentiation, more about very gross product a where gross it our margin, depending

Operator

comes question next Mike Matson from from Our Capital. Needham

Unidentified Analyst

is This for on Joseph Mike.

cardiac surgeries. indicating or over companies less that being are So more commentary from some surgeries some prioritized we've other heard

you know are if guess, what consistent, is Just with guys seeing I currently? this to wanted

Pat Mackin

past We cardiac the can of I've the just you chance procedures seriousness training profitable had they prioritized. issues staffing are their the had disease, at I surgeons, we're -- that but to getting as talk were, these in this And there one, heart cases number a weekend, big is the the and and and the of are hospital. program to hospitals, mean, a in comments number two, times, of aortic a typically the most a get are this I done. yeah, imagine, said

importance really and to hear we definitely the and us by importance about. procedure sickness and we patient the They're that don't issues as a the from the the the some staffing both of hospital, disease finding up getting these that there of that the are patient affected the as So reimbursement to see well the staff way that to procedures. of out of

Unidentified Analyst

And towards America, Asia and seeing growth just turning the then, great Pac I strong guess, quarter. in was Latin it

you guys the in you in expansion, are these Just of the timeline force inning then investments of you are what investments? wondering some at from do like terms in think progress to can or And sales where when of that? leverage start kind you

Pat Mackin

from to We pretty my those from was XX% to of EBITDA. -- out I think when EBITDA in plan earlier going start markets. a it And invested we've look kind lot. at leverage in clearly our expected that you comments, our rapidly laid going getting plan year 'XX accelerate in We're XX% three We've from -- to XX%.

still investing. kind out be getting drop-through at of been levels positive So we of going the but kind of forward. markets not invest, We'll will we've those

Operator

Next on Oppenheimer Kalia from the a we Suraj question, for have line & Co.

Suraj Kalia

you could there subgroups otherwise, has for Is the are data Xa through all talk potentially getting knowing evident? that involved all you inkling parse to be switching don't to well Are an have of could or Given you of now any and that indications PROACT been that Xa? PROACT salvageable your where any Eliquis trial there to in that? anything you physicians access benefits getting either the that be in you'll stopped could all the

Pat Mackin

will in back of on a I Eliquis the That the Coumadin be a In -- you conversations, my conversations I lot over investigators. first cross standpoint. priority, to my talked in to So from mean, safety can patient as the and patients ahead the in wrap imagine, to looking is the next information, spring, done probably in the days. in will then May. be maybe we're They crunch present data of and XX the it will and up next -- kind the kind AATS the done trial actually of

when There's there fine obviously a look that you issues. in patients I've that that centers data aggregate, from lot physicians Unfortunately, all that interested in heard was and their the because did the wasn't of big at case. people no

clearly, what it we're see all interested was. So to

that wait to be reinforce -- lining thing, be And I extremely Coumadin I going aortic out. the though that here, I until to failed, performed and is the the the other think group. valve this how is But think best will even think On-X in trial this data is comes I in silver we're think that that reinforcing that mechanical something it the On-X going will market. the valve the is well strong data

Suraj Kalia

NEXUS Pat, how sorry, talk multiple in things jumping status, in the Europe, between are you about calls. all going? Did

Pat Mackin

which the NEXUS. been think The we only And mentioned bypasses for over point, surgical think this I to some But required but about that branch. been it's who say, U.S. actually to under meaningful you dual advance thing it, looking branch one I of appetite and kind surgery. details, branch really doing far. which technical was a is anatomical a trial. quarter, launching will are the I single this the have thus a big pivotal has at mentioned single NEXUS device -- still about NEXUS of talked expectations is do some I the and dual we've our We would a we're the into device, have open branch of It our for people gets a for make impact. not limitations,

will to in very portfolio I'm branch dual on excited So uptake meaningful device. a the And I of make this Europe. think see difference NEXUS it the

Suraj Kalia

throw just could in I back I'll in if this Ashley, hop there, And queue.

the in thinking? debt are how structure, a us next the you give current two Just the environment, all years. especially roadmap over Just

Ashley Lee

next in tapering consideration, of interest draw and in off into We it around we peaking we're gradually everything and on capital and to half having the bit for and debt And that's alluded comfortably all facility that a to commentary. any But out of -- now beyond. our going were reading our our rate credit rates obligations with hearing the the the can X%, saw taking second going forward. without raise right service we believe 'XX or consistent funds little that that we earlier year, over that expectations

structure. capital with see and issues are So it with our now, as right stands we we where comfortable no are addressing

Pat Mackin

know you jumping were calls, between I And Suraj.

the pretty of through goes detail a script around. Ashley in lot --

a about our there's think sometimes debt. misunderstanding I

our covenant convert and million can't down the Our of at ever more plans touch which end B, have Term the the Loan have drawn we've quarter facility, than our no it. we to In no not only from we covenants. is, has touched credit $X.X

we this I So have our -- We don't whole with idea rates. operations of that payments financial covenants. interest think really even our can any raising cover out

not we concerned. don't that we're really So --

leverage. EBITDA plan, get our top-line And up which in we we're accelerate growth in a $XX and going our than expecting headwinds, our three that even to million we're as 'XX, net to $XX have at our less in said year Xx inflationary million these to drive EBITDA to rate, we

XX said, I months. the in next the at become concern, business got we're the mean, So fact think this a look I and I the to is EBITDA of get performance accelerate like I and EBITDA next going the you non-issue I but year, going if think we've leverage to that

Operator

floor would are There the like over MacKin at further time. no I remarks. questions any to for Pat to turn closing back this

Pat Mackin

quarter were another joining. the quarter. thanks saw pleased growth. top-line We Well, with we XX% with again, for And

definitely and out of and double-digit 'XX. looking Our the as our keep for kicking EBITDA And But going And we're our strong accelerating for growth where to these to we'll on lot out forward have be we'll XXXX. to pull. give revenue can forward to we next looking year is off we're a with we said, our the year. And closing the look EBITDA. inflationary headwinds, guidance a even call track levers we

joining, day. for have of a your good So thanks rest and

Operator

teleconference. this today's gentlemen, and does Ladies conclude

your You now at time, rest disconnect enjoy day. your of may the this and lines

Artivion (AORT) 3 Nov 222022 Q3 Earnings call transcript