Merit Medical Systems (MMSI) 25 Oct 182018 Q3 Earnings call transcript

Company Profile

Participants

Brian Lloyd	General Counsel
Fred Lampropoulos	Chairman and CEO
Raul Parra	CFO
Adam Maeder	Wells Fargo
Cecilia Furlong	Canaccord Genuity
Matthew O’Brien	Piper Jaffray
Jayson Bedford	Raymond James
Jim Sidoti	Sidoti & Company
Mike Matson	Needham & Company
Mike Petusky	Barrington Research

Call transcript

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Operator

Good day, ladies and gentlemen, and welcome to the Merit Medical Systems Incorporated Third Quarter 2018 Earnings Call. [Operator Instructions] As a reminder, today's conference call is being recorded. I would now like to introduce your host for today's conference, Mr. Fred Lampropoulos, Chairman and CEO. Sir, please go ahead.

Fred Lampropoulos

gentlemen, you and us. joining ladies afternoon, and for thank with Good

to out are offices Brian Lake in like corporate at Lloyd City. the a would We Harbor our day discuss on our assembled provision. General having by our lovely Safe fall We start Counsel, meeting Brian? Salt

Brian Lloyd

Fred. Thanks

annual not today, aware be information are uncertainties made and on discussion other and and not such purely historical that events, differ Many our Form is materially filings call which made purely our those historical. projections, reports Securities this anticipated our involve considered and with that We on unanticipated our actual available statements. During be be results to reference are to may Exchange report could Please cause statements in all risks, website. other risks Commission forward-looking events, you caution of XX-K may in or forward-looking anticipated which statements. these the statements that from in discussed

our of Any or except such our distributed today’s this only to and risks information entitled we future of with release important by result in required connection of in and of slide call. presentation as Some statements, identified Disclosure statements to call events refer for press update do are new are date this Regarding regulation, Statements made made as law regarding or any presentation not forward-looking whether in assume obligation these section the information, such Forward-Looking any as a statements. otherwise. Please

the which United principles with in are States. accepted financial prepared statements Our accordance generally accounting in are

tables the refer information to GAAP financial non-GAAP of for forth for provide Financial underlying operations measures can set to Measures measures to discussed our some to, measures regarding The of the Readers reconciliations sections included performance useful trends Notes However, with we business in regarding statements. prepared our believe entitled non-GAAP and discussed items addition of and reporting net certain financial financial corresponding non-GAAP measures call on this comparisons income. non-GAAP operations. and a release financial financial Please be investors Measures call. this and supplemental such Financial financial ongoing These data and period-over-period in with accordance non-GAAP information GAAP. exclude in as consider not non-GAAP on our substitute that for affect presentation measures important should useful

titled Finally, these calculations similarly may companies. be not measures other with comparable of

Fred Lampropoulos

and And very you ladies thank for much. thank Brian, you us. gentlemen, again joining

reading quarter. quarter report I opinion was a third my can our think that by the see in great you

As side. of and from on you very well. that revenue go every all weather, know, summer they with year unpredictable and testy, will some into quarters little This year little factors a do our remember to lot we lot were a of I are patterns, last always buying projections a we things year has think the at internal least slow people did very, are

get or board. to growth moment point interesting across that also contributed I'll gross margins which less to think to again the in another area the think one that's I this which one note, a was

like Some our these Guidewires up were of up XX%, product thrombolytic are our our catheter Fountain catheter XX%. are

business ago is which DualCap that acquired antiseptic over XX%. year a well cap we Our up of a was over

time. all groups, these product And and so an so coming it's all geographies from are exciting

it. to quite excited about be and continues business robust Our we’re

I know as Merit. think of think you for and be turn Just that strength will the core many who of have Raul as the the then of years growth over I you to couple Parra. followed of many things But company I'll sometime a interest know

in our activity. lot in that stands research on and of of France, a it a robust development be activity out number locations one whether have my out these the of of be it There's is the Ireland the is we differentiating in And in maybe Singapore. Netherlands, As together whether be going it worldwide new business. really number really really I point comments, a most this in and whether just U.S. in and things the when features And think introduce come products. of I we facilities

and In immediately addition to wonderful and and unlock those you acquisitions where and that after these companies potential know research starts and have come their have as in the either - active less they to all have stymied or development. bolt-ons that, close up those been many almost also almost dates our of Merit’s with anniversary innovating for reasons this

to that from margins of first we’d also another me with that improvement And your little again non-GAAP half we you now. things on else I'm you your robust everything the we and that in points I And back the stealing the that that this given our around. I Raul, and at improvement So how answer. basis can that from this you'll maybe and a we points just mosaic basis the well asked sequential guys you’ll with pipeline, in about. way these last that points think and are the is what basis then continuous often XXX basis. quarter the we call of quarter is be stay the I recall Raul do connects ties all it and in that a we XXX XXX you as part of in something It almost and believe XX up year Merit take do see were last fact up said gross thunder, recall the but business quarter I’m Raul here on we’re it’s I pride talked

a straight I’ll to the and to the our just doing me I talk a before the Financial of in you of terrific tell business. think sometime I’m eye doing But more that, we little job. are I I well, look internal think that Parra, Raul let business further Raul you some over issues Chief and So Officer product bit about is think turn types the you do going driving

has team wanted helping your you're that terrific think my to and business doing you’re want investors I understand work is to personally, and doing. pleasure I to been and together and appreciation my our and the just with my put shareholders team you I our express you the

So with that said speechless your I think.

Raul Parra

currency and And the And of approximately revenue over a XX% on $XXX I provided with look you earlier, to you XXXX quarter constant what XX.X% and our of increase $XXX as Year-to-date guidance. to what said XXXX XX.X% currency the and core to the a like. $X I XX% margin for thank X%, million publicly amazing basis. period improvement to XX.X% the for and revenue improvement. start with back approximately period comparable that’s growth dealers QX, period will to currency but from so worldwide on strong you organic expectations million QX an them. line I’d on up basis XX% compared gross still XXX constant QX currency the was constant thank U.S. reported guess currency the for XXXX. Yes comparable like just continue some compared of increase a on a the to highlight there, and The constant team approximately comparable include XX revenue XX.X% a the revenue organic an the up period, as basis basis, quarter a constant Revenue an daily doing overall up am, strong are direct in competitor opportunity growth XX.X% XX.X% growth. a the reported, was for XX.X% EMEA team million have strong return that margin mentioned growth and improvement to previously to basis, of Year-to-date non-GAAP thank they we a highlights XX% OUS U.S. opportunity up on organic our basis. revenue Fred. XX up great really and our at that for and XX%, they previously non-GAAP so XX% been job was OEM discussed organic Gross in excluding they was had deliver basis both added point point margin, my you was margin that's to XX% as comparable

continue leverage efficiencies, obsolescence manufacturing with our and improved product margin mix. We to

margin line compared with in the guidance option to strong The operating from tax was range our in period XX earnings in reach benefit given increased XXXX performance. continue they QX nothing stock We $X.XX of QX, earnings expectations expansion OpEx $X.XX overall and for XXXX operate revenue of expect our us, in again the increased to drive so margin expense our of to XX% were $X.XX discipline for previously points. our really revenue same were to XXXX. to EPS, our for XXX our there. basis significant

that of business As strong. like our look during strength had the our continues to a updated we point into as the reminder, just remainder out factored guidance year we be that call. forward QX I the to

middle Given labor, robust pretty and headwinds we elections, with the feel around markets of business our all our of place in guidance. tariffs, FX taking discussions updated range and right now comfortable the the

constant revenue. what reminder to growth a a approximate and it. for guidance the for currency it's $X.XX on $X.XX XXX basis XX% million as year, XXX million to the year, of Just XX% midpoint to EPS that’s Core in that looks of like

Fred Lampropoulos

while pleasing finalizing measure it on Cianna. as I Well and the and very that reminder a working and again is history in transaction also everybody running any by Merit’s all were of I we business, this think the Raul comment on going we’re largest on with to just was

we is, forecast that to think happens give be that sometime November. you it in when next of our just very but know it's don't we be expectation November Now when we’ll that close the in we know when kind it's will and our in to able likely call,

way step. did job last as that is the Asia performing look Southeast think if at think good Asia, even I particularly you all really, is and I really their geographies business a quarter I Europe. mentioned, the picking U.S. that the Europe up but this

look board OEM of at so just very well. So, kind our is business the is business very, the doing strong just as we across

tax you we color briefly something a want relatively and talk about had rate the do quarter this maybe that's Raul. it because little rate I on think low because just to I think just tax

Raul Parra

XX make liabilities. we for in - in that which options look stuff rate we typically those a off sure lower anticipate a we to that's that the to And because getting. excluding also benefit between then forecast hard for had forecast. rolls to from we XX% just QX one quarter FIN arranged with a any so to we of stock have what think know benefit quarter it. tried people on some XX% exercise us we just fourth to forecast I the have continue We Yes, as for for again the to at benefits work and And that essentially have tax people do that’s we’ve the rate option fourth somewhere so stock are want don't forward

Fred Lampropoulos

And whole the we the Canaccord, that take of that was we'd out someone's James, by All-in-all at mention Company me. to be be a remiss as number during for leave and somebody million a to important $XXX been Piper I'm have also if I to quarter the did or well. we very again, is and going long But think folks. going that's strong. of so involved was mad an and who Raymond Fargo about time, business in note equity give raise headed Wells that people didn't bunch

trying under it facility what in about, excited additional full. to the to that'll which we're new very press is I in EmboCube, is. March. the here. one come a probably release have give made the We to R&D well on comments as pipeline I The about construction I'm look think capacity, - other up us got

So, the mini-stents.

another was that thing. So

well for the I and latter if of a endoscopy but are it half the half year the there. we've the The bunch There latter rolling the look was with apologize I is of and products pipeline that of products think I business, well. NinePoint our at the you done year very, new with take in focus, some hesitation product very, in soft full, a think the that very very is of out. done a new But the first-half. little

we Pursue We new introduced access new kind see promote steam our we ago a doing device, move long expect A that new is very and device, of as some inflation vascular microcatheters, to just well. not forward.

we're Board a I we're mean I across I And good So, just the job. think think playing ball. doing

that I and to staff all - we doing So a kind and out job sales the point operations my they're talked great about want stuff. but of because to

someone and various do of is with build the and issues to it to got properly involved manufacturer. are going ship and build stuff well Someone's this a medical it. all And it

is superb Our job. a doing operations group

down on but everybody product - with guide the numbers. the We well across the side. to in because and in this thanks forward. never like all of We say of going the the Board groups look pleased those we always and it, third something you're at awhile the exceeding again, know you of earnings in you So, this. hope know staff all that in summer, the summer, happens the quarter once that or think that I business hitting every all look quite can't geographies side bodes numbers just I as you for expected the -

I being that generally that said, quarter. with covers So comments the our think in

any good or on for to of the the take here be our for will two questions And pleased issues. I answer we're to now and your best this Raul reminder, time clarifications ability. a a following As hour to

So administrator over we'll Thank and calls go very for to we'll ahead take start your the the and time now. turn your we'll our calls. you and much taking attendance

Operator

Biegelsen [Operator comes first line Instructions] Our Wells with from Fargo. of the Larry question

now is open. line Your

Adam Maeder

taking the from It's that the into Adam Maeder with not Cianna, thanks guidance. Larry. XXX Congrats just I range want the does XXX start is for The questions. account I on quarter guess to correct? contribution for clarification to any XXXX on that and take quick one on

Fred Lampropoulos

closing Adam, the correct. we That's know don't date.

why. so that soon the we so update and we year And that this reason as that's as know can for

Adam Maeder

about I ask want Terumo. then to And

follow-up. any So, capacity? when you I Terumo QX the on wanted benefit at or latest QX, ask and it then be about you $X million full call I And thinking and will to your on beyond? how in So sense heard a strength just are back have about supplies for sneaking disruption

Fred Lampropoulos

reps heard I We we asked out We Yes, it's July, be there. all to a the that try and but question course get September, what first time of is the then the then coming then August, opportunity know cautious. market June, hear now line and new that But is many and I'm so the from they problems reorders say intelligence, continue, some field our sales seeing in but ways. bottom these are and anecdotal is orders. it's are

does Guidewires. of it torque or accounts. pulls thing into lot but how They devices, along than into what they're - think, allow much neat So go it's than I've it's us and are I to the it and on it's Adam, to get this microcatheters, not some about and these long Guidewires. longer that's in future. just - - line said the think think, asked non-Hydrophilic some And seen have not gone? this, of other the it are the away I this have is go substantially the again me but difficult the including you a you really want these people wires just other bottom now that, People benefit things is our it's how more business do These to

to sales shut of force. quarter. in shut think summer Places I So, being that issue. going then the And They out down. think still European opportunity didn't we critical it back that's our the there. force of saw about were the comment sales the in advantage terms there, helps took And but they down just and our I us

And a away. on. come going company they'll there, Merit great is but not continues So, problem is still the it back, it's

Adam Maeder

to And then for for included can in guidance I what Terumo? the just QX maybe push is

Fred Lampropoulos

let going go I'm ahead Raul. on Well, you comment that and to

Raul Parra

guidance. in million $X our about included we updated Yes,

Adam Maeder

sorry I'm in. to squeeze more one And maybe

takes then, puts know of to I it next but what growth comp Terumo of terms constant you as for of calls from currency in the XXXX, you'll organic would in call about X% quarters And benefit year-over-year to a some are start we year? have Just LRP and theory regards think standpoint. the about in two

higher about than So, next something starting is still be point thinking potentially should for growth a constant organic currency taking X% the year Thanks we good that? questions. or

Fred Lampropoulos

we're just - at I'm that and are think to up numbers XX.X. - look what here came I quarter looking with if I going organics listen, toward here the mean these this Well, you you

little So do to benefits. a kind about we're running the the of strongly nice feel hot, very is which a bit we organic business thing and and

is what at come the Cianna have quarter, look full have another we'll there. do I We'll quarter, out think include we'll We'll we'll give intelligence. we'll this of quarter and in the Terumo.

Intel. So - million, the going made I comment made lay and another Raul about think of I quarter $X or - out the we the he rather mean that with other we're whole wait to so then until can February plan than than that

do So proper do to thing I that's think well, and to Adam. the conservative as thing the important and

Operator

comes next SunTrust line the from Humphrey. Nudell Our with question Robinson of Bruce

now is open. line Your

Unidentified Analyst

Hi, my for taking this Root] is [Spencer Bruce line for Thank you questions. Nudell. the on

some the your revenue So expectations Bard? excluding and modeling are just wanted questions BD, for to of BD, out get way. What XXXX current Bard, for acquisition

Raul Parra

to million $XX is gave. million to the million another updated And $XX $XX guidance $XX on we then that our million other.

Unidentified Analyst

FX full And Okay. impact? year

Raul Parra

around somewhere range. had $X to We million $X million

Unidentified Analyst

you can on automation there that of I there? manufacturing Bard BD, commented to your the update facilities? products opportunities believe just And an you were previously provide transition And

Fred Lampropoulos

are on scope BSI I received of broadening Yes, to schedule. of approval the first actually of from We schedule all ahead just - of think we our the facility.

requirements in so, the regulatory there. I the phase next to actually will first start of the start production. all or have week we we'll So produce We think of

probably year. then - we're I go of March. to early and up next I'm I'm say sorry, going think that going starting we're to quarter So third

careful be I CNC equipment, phrase we anyway than to more but efficient how we on along issue. new purchased - - have updated think automation purchased the equipment. expected to and want expected again, we better it's so this I new as And And moving I

are think - output to our the opportunities think one So, coming I surprise the done. to things done but maybe we we've a in expected big and I don't of that be and because the of that little the call I we've we purchased and costs going think we've of a equipment of our efficiency better it than one bit want is the that training

Operator

Mills comes Canaccord Genuity. Our question from next Jason with

is line open. now Your

Cecilia Furlong

M&A Cecilia seeing to you’re Fed acquisition, afternoon, touching topline just you’re and guess guys Jason. I balancing right and Raul, Cianna fabulous thoughts was now ask, front focused expansion your and on but you as I it's And what when good your wanted market prospects? just about forward the do growth what looking Hi, for on margin the on acquisition

Fred Lampropoulos

Listen, continues the industry to consolidate. business the

that think our I complement the critical contribute has the and mosaic. the issue whether Cianna’s things the key always do deals, fits has business model. that to Merit be it the Merit for discipline something model or that the fit the our has or all along deal is BD to and after to with of has goes scalable But any you to that and that at

those I we So think look that for. are would the things

on As get just today, I one seeing or day we’re opportunities this mentioned almost there my two them of passed, are meetings things but every call most and in there. out

our will the of financially fits, going look look things. these as and We it overall be at by sales it and can to profile meets scalability business the and look our continue those to force at we’re absorbed at if

we right to businesses a be for meet profiles. So that continue those buyer the

Cecilia Furlong

comment is taking from conversion. driving or company was flow for question one cash focus progress thank on you if And around just your on you lot now then question. hear wondering a I improvement. could right my improvements or investors within And we free just

Fred Lampropoulos

going going our one means the to than That were think everybody and year we it’s three asked good double rate. Cecilia to XX%. and like but would half you question that with rule if our I growth do is that to be under XX in remind to overall this growth a business able better years is up get I that keep a

in run but we’re capacity some into that of of Mexico, a acquisitions. little started a Now capacity capacity We’ve in here. little bit terms running issues include to we does plenty have out course of

automation finish it near into construction talking million. the the started go a we’re the the is facility Salt on And new growing Mexico that here things remember or the of a dramatically. Salt that we that to type plus Lake automation, go to Lake different have products have up are additional $X about we campus So issues

about to So to with the XX in CapEx been XX we be XX at we’re past we've as look years going few the at year. this we’ve acquisition XX to closer talked to

we’re higher year I think things a have as the other that of doing. we’re because little and we're looking projects going the next to bit

So understand so. growth capital we and that a the issue, company also we have to but and fund but do growth we it are takes to

said being thoughts. Mr. that Parra Now your

Raul Parra

said you it think I perfectly. Yes

trying We are capital on our efficiencies working to working to there. find

below covered we increased that we’re expenses overall So an other us our and I how think I on be I it's everything. think buildings think for focus trying do smarter - Fred than to

Operator

comes from question Matthew next Our O’Brien Jaffray. with Piper

Your open. now line is

Matthew O’Brien

on Three the am you around something an billion math I from along I being the basis just questions right $X.X lines. as Terumo annual had doing those think me, mentioned something Fred

means it even math forward you an so So right. $XXX about million is and And they expect this share the we forward? market, as should level about more X% percent in then it you about its that back of was that this we X opportunity as that that more think is share the on should captured get the quarter possible about or capturing is million going in area and accelerate

Fred Lampropoulos

- words from that excuse Matt that top number. think talk me Let top number I from

period. for that million particular number million we be in think In five, estimate that thought the million. that on month So see press will Guidewires a lines, we we that $XX is and four out was and I forth. there lose market all from they product came of so in it release somewhere this they the to about opportunity $XXX revenues. Merit million would around products over a They case, of XX hydrophilic for so was the $XXX indicated that their it is catheters, this press think there said see market $XX microcatheters, somewhere their We was

out think Merit are a I And also in terms get numbers numbers opportunity. of longer those I term reasonable this. will of what it’s believe

think it Ninja. the to Merit their have. doesn't new Terumo Things allows wares I include the Pursue things like microcatheters and show that

our greater our so think very and some to for placing I us from buying things and Guidewires candidly before broader we we cases of Some devices an that. appreciation can helps even just you provide. of some customers audience have other and products torque our the couldn't it a that just get though were view, In devices in this

I it to a gives great like is was So an it company, I think deal problem us go opportunity. opportunity to a they Cook there had Cook just was the more and like Cook. a company back great Terumo

were the we numbers were in very summer numbers in we remember about it the a that’s started think I as our talked deal. big still conservative

expect it first would to and the I improve. see fourth so in And the quarter quarter continue this we’ll

the I intelligence I that today. based on that point at ground relative I the say in confidence can this have with think

XX% catheters on thought product everybody at a includes thing XX% over this for increase on the into of there because side also if year, we're catheters hydrophilic catheters. our Cook Well product we would talking about increase. hydrophilic the Now Impress and line year-to-date. the that that instances look are And for be a and Catheters the some whole plays which

Kool-Aid a source. been of So, over One have this, other summer looking of be the single saline look customers point for in if this and look a a the there provider very they're at source. look and drinking go if situation, long you go people last backup in others. are But terms from the by haul, past and for lot take not on look party at a my a looking we Terumo Cook take will at at you candidly

the all source and maybe so product my compliance hospital a five only for had have backups. are something I those just four pricing and I think of done and the or shareholders those issue from a of not the the hospitals one over my to I or I biggest different everybody from days days have it’s But board over me, is have If smart. done. single else over years drive benefits because supplier are last a and component, single

So and think and biggest they’re up, these seeing that listen I benefit they has are that’s products. long-term an this. to have mainly rising the that Merit they audience I Is alternatives that audience, have think a are from will bigger

So is long-term to almost why I treat on long us answer opportunity question. that's think a this your a

Matthew O’Brien

So sequentially just bit $X to million million QX midpoint the clear the range about up Terumo, too $X out little the guidance of sequentially take only it's extra a if from at and the for increase a that given all little the strength I we slow last actually you’re time And of down QX a given from that year would bit was seeing, be saw this last pretty know big year sequentially. QX.

is to trying of conservatism to layer a you're point account it just So is in to or for specifically anything in there there? that there

Fred Lampropoulos

FX think think we’re been to Well we something has about I so concerned have about. that is there -

hear room. ourselves I want make we want allow to think to to don’t conservative. be We we in are or fact can’t trying something some we changes, something

I and have we into we’re take think the So FX issues. account conservative I being to think

Matthew O’Brien

going couple of gross that we’re for year-over-year the line new that And drove that quarter kind strong should account to margin facility the for quite on for? the then are headwind great this margin have the with quarters Raul, a we any in of higher factors gross and basis. then of see obviously some the one talk finally on to bit was a Can about little a different you

Raul Parra

that factored guidance. our we No, into updated

factors know a think we story same I You manufacturing it's continue to drive efficiencies.

to helping. that really really think line. driving release we new in And that as and pretty we focus this mix good I sure then that on needed, we obsolescence overall three those Our factors is sales was and the continue making keep departments quarter products our of product

Operator

question with comes from Our Raymond next Jayson James. Bedford

open. now is line Your

Jayson Bedford

couple what third follow-ups of in maybe comment gross fourth for quarter you're the on quarter? the is there. Just like you strength given can looks a Raul just margin your the expectation or

Raul Parra

updated guidance our I and that give we we’d that quarterly think said be we on We guidance, we range. hit don’t had given but in did

somewhere range we So - ballpark. its somewhere you guess in I gave the that I think

Fred Lampropoulos

Raul, boy Good well done.

Jayson Bedford

Okay.

Fred Lampropoulos

And that probably helps I think you.

those know would quarter, we we gave I think of to that. we XXX you have recall think operate year I we nice we updated XXX, these the and of there last job. you said efficiencies in have I guidance, think that that - on in the we're and half the basis this that But did you'll a

Raul Parra

help bit. this you Maybe will a little

that our XX.X half And XX.X year. then we XX.X the gross updated essentially is to would range. XX.X operating the we said the what for of guidance to margins second I think included be in

that it narrow you. hopefully So down for helps

Jayson Bedford

of terms million Terumo here, $X XXX? mentioned the benefit in or is of in that of you annual part to quarter million guide fourth in the Terumo the is And XXX $X

Raul Parra

was it and fourth. Yes, third

Jayson Bedford

Okay.

So third $X and million $X was that the in fourth, for third recognized of million quarter?

Raul Parra

right. That's we Again, - and make orders there's we a lot just and conservative. have we see of we ability the were we the to but demand don't wanted sure

Fred Lampropoulos

orders think, Jayson, I the seeing not off. we're And fall

the then seeing reorders and also we're So business. new seeing we're

how see than could is that, But So with I than it more feel that. that any momentum we'll comfortable less be see But there shakes. that. I don't

Jayson Bedford

confusion there around and and. Okay. was little then million in Yes, in quarter third just incremental $X fourth I an think the a $X million

in growth organic is that implied the So correct? quarter about is fourth the XX%,

Raul Parra

maybe Yes, a bit little higher.

Operator

Jim next comes from Company. with Sidoti Our & Sidoti question

Your line is open. now

Jim Sidoti

just for said the this what's remind products. about you in in there sales there of quarter Can were the quarter? $XX you products Becton, million acquired in Dickinson So, besides

Fred Lampropoulos

some Yes, deal did on a balloons. we

of was the call isn't [Firstcall], think I the business? it name that

Raul Parra

DirectACCESS.

Fred Lampropoulos

DirectACCESS.

some that. in there's So, What else? balloons for

Raul Parra

ITL.

Fred Lampropoulos

in which ITL, down Australia. was

Raul Parra

big and A ones. BD bit NinePoint. two are of little NinePoint Laurane, Really, the

Jim Sidoti

what is on deal, an you're that, was when $XX million it seems of think I basis, was Because Okay. you that BD did really you correct? like running said ahead annual the

Raul Parra

$XX guidance updated million included our original our $XX BD XXXX. $XX So, for million to And to million. million included in then $XX guidance

Jim Sidoti

but year. million? this On thought Right, was annual $XX around you that just basis for I were

Fred Lampropoulos

side of That was the the range. top

expectations I our that's it's and is the would there. think important thing exceeding numbers here be

Jim Sidoti

get trying I what was That was to out.

growth the On XX% that endoscopy growth the with CRM with products? had XX% business, all growth business. you organic new Is the

Fred Lampropoulos

like some things continue some balloons, elation go and business our endoscopy in are there that. the there balloons there's NinePoint, side, mean, No, in there to the I are were so from of over nicely, there things

I what was the the think the other area sorry, Jim? and you of some you look take areas endoscopy. - I'm a other go was when that at mentioned,

Jim Sidoti

timeless the business, business. CRM The

Fred Lampropoulos

Transseptal it's system, Worley the many coronary hearts is of the the the sinus Needles, which listen, guides, Well it's sheets, that's band.

I So nothing then in These the have on. valve we to this long have summer. snap, with and be was do runway peelable are just And that that a mean, Terumo. again, that would shape. is our products These the

robust. is business So,

Jim Sidoti

Since me. stack by third from give the the you what two last completed can be? share full offering the should way the expense the just you then what's count through interest of quarter, quarter And for me

Raul Parra

expense interest the million expense for will the be we quarter. about $X.X count interest about Share what is say

Jim Sidoti

about fourth how share quarter? for the And the count

Raul Parra

So, for the it'll fourth fully so quarter it'll in be there, X shares. be million

Fred Lampropoulos

of X million the… top on additional Of

Raul Parra

We X.X QX. in about million shares have

Fred Lampropoulos

X.X in the fourth. third and million the X in

Operator

Company. & Matson of Mike question [Operator from Needham Instructions] Our the with next line comes

open. now is line Your

Mike Matson

I just of kind wanted of a things start macro to couple things. with

kind a of the the year currencies first in a you be bottom headwind that dollars line have or from something been moving, So, perspective? on remainder and then so. the expect either XXXX strengthen Is to of top

Raul Parra

is comfortable we - in our why expecting the we guidance kind of on you getting about the felt that's rates mentioned QX. headwinds. as saw middle we reported We of dollar and right impact there they're just updated for revenues at the $X.X well, now million that Yes, And look stronger. are being with because the those

us to - updated that and comfortable we're we it's we gave. guidance guidance anticipated feel so again, our pretty the when but think with the So impact we in I going we QX,

Fred Lampropoulos

natural a hedge. is lower. look note, dollar Ireland, we're of have And euro have the the we stronger at will take operating - we substantial still manufacturing euro hedged a headwinds. the on almost of we partially just as a those But advantages seeing one in have another weaker of But expenses. those Mike, amount manufacturing and be and on we

sides so to silver linings speak that's So two

Mike Matson

rate. And the think kind I variable of I floating guess your of thing debt other some is, is

interest going rates the have spin the up. up, So gone

it's bit mean that headwind or…? as could a a of I XXXX something So be that well for little

Raul Parra

have coverage payment because Right the and we XX% so hedge hedge offering. with a now about there. we've place the did of Well, we we're got in

now, rate - interest talk X.XX we right effective So, X.XX.

We're think well it's very at rate. actually mean So, even I think level mean a still I maybe within I treasury - on good I that.

Mike Matson

deals. And Cianna on question just then

mean what you be So who once call products selling would physicians is close then and point, which are I the the those products who real deal? are using those forces your of the sales

Fred Lampropoulos

their the procedures those are are biopsy radiologists. that we that surgeons did, breast and surgeons we radiologist devices. and breast entire are force, do using capped things essentially selling they those and is just specialty of these of But Mike, types sales they surgeons that also to one So

they'll they products of we our products wrong the So But force go in more that then in sales future. will and and our that enhance put additional the of with hires use and that’s model. ahead end our use many will

the destroy lot we've things think is So with is, we think from I what of very we a momentum. from history important of to just learned didn't team very, some want a

in it kept we've place. So

Now different of pleasing looking excited to the force is we have the XX things think one this of letters management team, the be been other forward has or the and a from sales receive saying I probably to I how think they to senior I letters. part are they're me very Merit of XX number but that.

I've But or part had you there. with their me forward on so share that that me one almost of essentially the everybody looking Merit. send here sales past, And and I've to - note yes and haven't a two being and in excitement team, they're get had

opportunity. about excited we're So that

Mike Matson

question, well, made some of procedures, much one the one like Transseptal is I business those of me within your just heart you that growth? things if like TAVR how kind then and acceleration Watchman And of kind space seeing which radial, mentioning with in prior - PCI I then trends helping complex to of kind of and growth growth is the and cardiology that. mean that and just the - the these about that mean of secular wondering trends Needles your that we're of here, as questions - things exposed and think is you're some final think structural

Fred Lampropoulos

the of start the call the has side adoption and Let of one been a with of in it. Merit radial big radial what candidly I the revolution. me leaders proponent very

in it ago, needle know to and a little his little he XX%. You next in me levels I procedure radial to had may a he maybe It's looked don't cost XX%, put places five he some the States had stent a X%. is years operating high was and this I that And on and or mine why this recall pointed - get prick. bonafide savings went it a in the ago four are that band aid Fred, had at a Asia. me excess you said cake. nick I five "You be like feel Europe in friend and years of a anecdotally in and had and business?" I in long of as it's in and just piece to in you will put XX% see I this It's United talking These was in not and a like of

one somebody we're of "Well, we've is the and been of out devices. and So sync. I This very the kind one active from in is is area know this you like actually prelude seeing that of said there areas leaders the that that you're of area." one in this closure is our that Now rolling

longer catheters new have radial. for up, coming the lengths We

We have new sheet.

part a that's big of it. So

to go CRM Now over side. let's the

have is Merit OEM million we OEM We that $XXX major about you recall, Mike, sell business that also force sales through pieces we're And basis. from a our conversations our of that but an provider on and direct two has that business.

we we to see products Jude, Medtronics, So else products provide we to, Biotronic, Boston. have, we provide provide who products to St.

Merit. the that and use the side And and sell products distributors their that And it's work on providing things force growing have all tools are very not physicians of direct. procedures. heart - in just that we armament doing the for we're those for also we structural those so then products we're So, products they nicely but use

Operator

from Our comes next Petusky with Mike Research. question Barrington

open. now is line Your

Mike Petusky

struggling companies to thought Couple or still are previously maybe expect of questions. of it you of forward look in QX said Raul, of dial could forward as for maybe in that effective rate of as the mean, look the are a being sort do basis lower maybe kind or but to had actually guess, you what you kind expectation you ends like as up beyond are far points and couple through effective dial I a you as if tax repeat tax I seems able working than number QX, you that? XXX rate that you actually you

Raul Parra

- lot with through still on to it. a lot working There's why of continues we're think I seeing you're the I think of that's that so tax kind guidance struggle reform, a come out of just people and it's when to going are to a to changing in exercise. because options, what's And people obviously are anticipate blackout just it things or on to I can't basis. if be elect happen going going daily we're or a stock

I to a variables maybe And that we're we given a some pretty is had add these the to items it bit of I expected. excluding kind that hard two than forecast. know and lower little so you think number have close of but range

Mike Petusky

I'm QX - you sorry, did expectation? did for the you what then And say what

Raul Parra

to XX%. XX%

Mike Petusky

And could have then any you DNA, and by do share? chance you stock CapEx, comp that

Raul Parra

stock million X.X. is depreciation was So, amortization. And $XX comp

Mike Petusky

And you the CapEx mentioned didn't may up. earlier, I have catch

Raul Parra

XX.X. CapEx was

Mike Petusky

as this needle of nature? incremental could are last product And you of XX are terms months things mean, next game I changer. question, or there product then say on launches years over next more hey that Thanks. feel, at things launches just mover, potential a a be in to of look a like R&D, there real terms they be guys the are in kind couple of pipeline I you guess working Fred, of you the this the that that could a internal XX in Are

Fred Lampropoulos

that think a active products Michael. R&D we of I Well, number very in pipeline, have a

and Lake that's projects. And locations, - of think recall in and number in goes have as full. we development and R&D you'll number and research in Texas on I goes and XX Pennsylvania Salt on our Ireland in City and Texas

think product, conferences we're Rhapsody. about very stent the a that is that stent. one vascular talked and is about This I at we've excited the new

And I process and in we're then in we or also then to within we'll first getting man course a going few Mark PMA of the of go in going conduct in the conduct to have in United States. next our through month to weeks then CE are think the Europe. the Europe a

conversations of on better Europe, talk formally So February. probably but contribution listen years to we’re going have the about and and we roll this feel a start in should worked five it's for our as we it will to when and we talk have more in more from We about about accessories to Merit out but this That being products committed time therapeutic they many, that transition take so over it’s of also is disease states part going years. is and going many there take to and primary still money. this more greater transition place reward said

XX that are line product that there that part years. on for are even So will of several go products

we one away that that's we coming is then So of file go. Mark there's stuff man lot for and away right CE a essentially which and approval that's will the safety study in first

one excited things listen most up. led but So that all I’m the all that’s these

the I say or we course Terumo or understand situation of to products then me it of here you someone the had microcatheter just that say whether about five very a or talk all And this, nice people out users. who pieces you understood with I've never complement with and pieces. mosaic six address leadership not really business microcatheters product. think but that start or this, we we’re the recently developing might XX a you of little this, these come But seven compete now your puzzle. and Maestro now business have say, I excited. to shortage these into Pursue, Mike all these focus this, develops if little you I in to Merit position starts SwiftNINJA we okay to And this have or to sudden too that things, this understand all are The to then

and the and business lot of has we R&D which to bolt-ons growth on that our this built been core coming right additions tradition a then things business. So of types

Operator

like this turn time. And Lampropoulos the I'm to questions in queue back showing closing I'd not for remarks. any at further call Mr. to

Fred Lampropoulos

much. Well very thank you

we day, So and you ladies thank a your lot in ask calls to want out call questions. out the for a busy of time gentlemen lot of it’s activity and taking and a and there, to

hours, As our the couple Raul I I mentioned do and will next to best we’ll clarify. for of here be

We will not offer any new or inappropriate.

Listen ask So South we a products that are that Central in business global a appropriate we States, Europe, don't have of answer. will we questions be the have us those great happy United has kinds that in to things a have geographic business, America. business, in regions,

We have coming. we have new the products right products

got have things to We the got infrastructure we've that we’ve distribution, we this need build business.

years this that, So I'm No the would proud and together that expenses. of proud those I And we have means grow had those and put discipline that that is us plan to spell that profits. line better team the that the on guys better grow our hit margins, last really we’re that four helps how one said going as for out in topline, of what we the margins. doing and I'm do numbers. in we think a mentioned we stay to discipline we we're of what see call,

the opportunities think I and the opportunity, about here. so getting we're excited excited very about we’re And Dickinson move Becton in

previous one questions. to back going have we is have we thing the of One of the

have improved best-in-class devices. We new four biopsy

improve that isn’t think in we we there. and market market really had as we our enhance the to buy are out it’s big So and we some share I mentioned something it don't buy market and a biopsy this going it exciting just wonderful, I things

on things. So, started getting just we’re these

So business the on capacity. other one is in thing good shape and

guys as facility about headquarters half We have building tilt have we're like mentioned one but our using cost new up, you corporate Raul the it's that seen.

but So at be CapEx fall thoughtful more we’re going prudent on more same into of. time are trying not we this trap to I to the and think our

the and do that we CapEx business You you have shouldn’t to can't and your do and can't because build invest. you this

and to that doing profits to improve allocate margins things future have our will the committed capital the we’re We to to grow and help over the that. business

we’ll very to our plan We’ll that our spell to So time. results you and look you’ll appropriate out intriguing. February then in you which think the giving I do again year-end at find forward to thank forward look

very sweep sign Sox evening. a City, you all to going We’re wishes Lake best the all four from wishing best Salt and it games. evening Red the wishing in Good to good you off Boston to

Operator

and and the day. program today's conference. you Everyone gentlemen, great have participation you now concludes in may for disconnect. Ladies thank This a

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