ICUI - Earnings call transcript Q2 2024

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Operator

Good afternoon, ladies and gentlemen, and welcome to the ICU Medical, Incorporated Second Quarter 2024 Earnings Conference Call. [Operator Instructions]

I would now like to turn the conference over to John Mills, ICR Managing Partner. Please go ahead.

John Mills

Thank you. everyone. afternoon, Good joining for for discuss Medical's ICU Thank second us quarter results the of financial you to XXXX.

Financial and On the Chief Bonnell, Chairman; Jain, is Medical Chief Brian call today Executive representing Officer ICU Officer. Vivek and

We quarter wanted we presentation go view today's it accompanying Events to To be know XXXX our remarks the well. and presentation, will have Calendar, click as on a prepared the let to everyone events. that please second Investor under page and

to want and future the I financial upon results measures ICU and risks Such remarks, to expectations. to company's operating are and prepared will best non-GAAP of you and have reasonable. period. adjusted subject call, the information assumptions note results We during including our start intended the on that risks underlying measures bearing period from statements of and comparing management complete results ongoing they uncertainties. beliefs we today's statements financial basis. results to available operations, more company's can results greater believe detailed more forward-looking all differ including to refer discuss that on that a direct current future we a financial Medical's these uncertainties on aware position. Please during the and expectations touch and facilitate made based be also representation into for filings an analysis transparency management's results particularly materially from when Before any Future SEC are the on not to of may are information We results. call, Please are be a about

detail that non-GAAP of reconciliation measures as and today's back. any are addendums a on provided possible in included also as release added these We much

the to with over that, pleasure is call Vivek. to turn it my And

Vivek Jain

with discuss current the recap performance, benefit the health the year. over and segment integration the and consolidation the John, and and back to QX on our and updates balance come results will outline to turn I'll and full thinking various then it company. on everyone. that profit highlights earnings good I'll of afternoon, overall each through improving our some medium-term Brian our provide revenue the walk of summary Thanks, outlook QX for After that, efforts

generation healthy QX to capital to need investments But in geographies the all course, we've The has with of and way environment. environment increasing was felt date. that noticed in utilization the and that broken not where volatility this The our macro a our impacts IV the segment specifically commercial of are strong flow, has yet, international a dollar Revenue million. The still everywhere again, Systems in supply earlier basis. of expected, capture currency a $X due than total growth over were Adjusted for cash and and had to $XXX was $XX QX inventory million a balance higher company sales on XX% drawdown quarter finished Gross $X.XX. We million just our of with reported EPS free million broader demand cash $XX $XXX chain areas And in strong most. getting largest mix. good made. efficiencies footprint. headwind quo cash make of was a customers again, or and of for EBITDA across which on this X% status basis was environment have constant the and and U.S. year was million margins little all is we

and the XX% consumables product lines businesses forward-looking of and with unit. currency I'll ones. a examples few date, more these helped a few types but well mid- grew All digits. lines XX% give and And the high of oncology and highlights grew therapy reported. in in this to our in teens our single vascular the the into tracheostomy have IV ICU specific legacy specifically, more constant Getting access X unit to mention thematically results To across

continued The first a which therapy and Vascular study an days workflows. IV there patient outcomes, In example by economic important the dialysis ago. did with help and is like leading systems Pursuit in attract was improving of is improving second and of our few products a around core Clave acquisition as as our of adjacent grow our of and operators. reduction. A in the line, our will creation years connectors projects improved been we a family operator that great market other number believe since Access Journal evidence committed safety in of focus study our doing clinics oncology the is with the of We've new agreement of example closed clinical to published noted our a U.S. these us recently Vascular market -- this also value example multiyear signed the efforts infection in renal a of safety measured ago, base

Lastly, on been our we've right. geographies focused getting

the been rebaselining [indiscernible] after Smiths the business very years. additional in China, over player register historically products our infusion been a to For expand China. most to in next and the we country in approvals the small several have acquired working we've core portfolio Medical part, Shortly expect

now nothing lose limited to compete. manufacturing big enough competitive, costs to is our are have China, and here We currently as to in business our we're try

term, innovation mentioned previously. each the road And lines of its medium these map as has we lastly, over

in else nothing results legacy would expect XXXX, is lines original with record levels. of consumable at new balance being here. with our line and We ICU the For targets

reported XX% in had a wide the we currency systems across constant unit on business IV Our range lines and performance of X% a basis. Again, grew product here.

we line stabilization emerging lighter a the very strong and installs using care just expect perform of we on in QX. to remaining both hardware we quarter will LVP of of tailwinds to home dedicated the pumps trends in sales, call, and and quarter macro last those based start a ambulatory with solid. started saw the have sets. We had Those had come well lines soon hardware generally some true, calendar, on mentioned ambulatory our were we then there As finally

contracts have been we Duo over first, with pleased signed include: more in variety so Plum what couple system they multiple than general, are here for We're customers decisions highlights we're the have of last with customer active a of years. far. seeing our and now key Some

will Second, we our pump of across Duo submissions filed to Plum have several precision products customer and care combination for channel all Plum the our After LifeShield are Solo, single enhancements XXX(k) clinical last infusion software cleared safety channel, Duo our since and these flexibility and areas. cleared, Plum call, Solo the device. the the provide dual already Plum

XXX(k) next several also platform the product filing safety having software. connect wait we to as quarters over for syringe Third, our refreshed of of with submission Medfusion a the responses, and our energy goal of shifts that our towards much LifeShield the

the anchor interface with for is come. many solution improves want minimizes a right the job, ambition to user drive to customers infusion for that have the to years have common Our Simplistically, all modern devices that fleet we of the and right training standardization. connected most portfolio can and tools software onboarding

of balance here nothing original expect is with would the we else line our results new either, targets. in For XXXX,

Just wrapping up the business segments.

X% a the grew it Critical by was by Our And segment driven Vital growth was was an which of and low comp Care have The Solutions, Care. constant -- a the as The majority of at IV low rest reported. last segment easier did level generally X% year. currency flat.

last is to customers, has -- hopefully, operational time comments on our hopefully, years. the the running customers the improve the been in are, comments in manufacturing, the low from and company like call, the innovation from integrated the From the best remain have last calls it efforts and areas our an bruises of shifting but value our many noted. orders in last displaying few our customer our course, There back last comments to few that normal bumps to towards perspective and still some of

at medium-term That's level. over QX a turn to come comments Brian and outlook other on few thoughts. I'll with a then brief a it recap our of back some and high

Brian Bonnell

and and and P&L Vivek the flow, Vivek, our everyone. covered QX full for sheet balance for I'll cash outlook on provide good recapping year. Thanks, businesses, the the the revenue the each the of performance for remainder QX QX then afternoon, as my the well remarks as of focus updated Since

and the compensation. second incentive -- million. $XX increased and the the GAAP relative hardware second the captured adjusted system press of in higher revenue earlier $XXX in expectations. disposables X% the quarter quarter. Restructuring, XX.X% and current share $X.XX $XX to our to better quarter, As for to reflect which earnings was experienced to transaction from the results quarter year-over-year as quarter a higher slightly reflect primarily was well Adjusted see than were quarter first during per million Adjusted non-GAAP revenue with expense in proportion investments release, compared and plan combination related than for chain expenses for QX, was Similar of year. interest to diluted supply margin was million. net reconciliation XX.X%, revenues, the integration of and $X.XX expenses adjusted operating were R&D strategic compared operating gross from you last expected. Adjusted was we the manufacturing year were up a and the favorable adjusted integration selling The network quarter mix IT SG&A to our expense of R&D $XX in expenses can expenses higher synergies quarter in as Total consolidation. a the product million the

a includes as benefit The periods, various tax the statute effective per contingencies discrete limitation tax of result release was contributed and tax from the approximately XX% $X.XX a share. second quarter of of expiration of adjusted rate which

rate reflected for outstanding share. shares were the For per prior benefits, Diluted approximately million. year's comparison which the $X.XX contributed purposes, tax quarter discrete $XX.X

decreased EBITDA period year. year's finally, combined profitability this compared last on inventory builds, reflects million absorption lower impacts from And benefits year from prior the $XX revenues the to higher $XX adjusted to inventory with manufacturing current reductions. QX The million for

Now sheet. and to flow the balance moving on cash

due fourth and flow outlays million, of quarter onetime benefited along the with best the cash well as consecutive quality free cash these from lower cash flow the contributed was Reductions inventory some $X free For free since capital projects, of the the million which we of flow the quarter, flow timing also integration. for generation. and acquisition benefits as positive cash represents expenditures cash cash, in quarter from remediation to $XX

and $XX $XX customers we our at $XX invested facilities spend of restructuring system infusion well revenue-generating million for for and on pumps and general U.S. on placement quarter, million with integration cash remediation expansion and as capacity product-related outside CapEx the activities, as quality of maintenance million the During

$XXX And balance just cash. to and wrap $X.X with we sheet, on of of debt million quarter billion up the finished the

a we As and of there over the flows are remainder few year, items cash the think mentioning. sheet the about balance worth

cash the to balance used believe we to and day-to-day adequate the program. early term cash balance needs receivable down would for be liquidity of support is the principal to further accounts current pay anticipate of usage either First, or any business, the the of loan factoring we increases reducing

course the of new appropriate chain providing we've approximately XX current and near-term manufacturing by over resilience the reduce safety network of including levels to to to the support levels months, our planned onboarding able facilitate been inventory we Second, ensure the supply business, of are $XXX stock needs believe past million, customers, adequate and to consolidations.

inventory don't opportunities reductions over While additional meaningful term. expect further any we the for have in we may near time, efficiencies

year-to-date original free which million, ahead is cash $XX guidance. of third, full-year is And flow already our

experienced benefits of the second we our year, reasons reductions the factoring onetime cash we as are the items inventory which improving given other flow program as and well from our already due receivable reduction first mentioned the position. half same integration-related not do lack the accounts For generation the utilization in to potential in the liquidity half of of expect of level the

to will half. expenditures, million in of expect addition, which full be be the $XX more towards to the the capital In year million weighted we $XXX range for second

full-year and Consistent guidance are adjusted EPS. EBITDA our usual cadence, with our updating adjusted we for

improvement. first to For $XXX EBITDA, the million, and of confidence of narrowing solid $XXX and our range are $XXX guidance million we of in performance reflecting the half earnings million $XXX adjusted to back-half million full-year midpoint expected higher raising range to previous a

adjusted and the adjusted $X.XX to per $X.XX raising quarter. the impacts range as of guidance full mentioned in per For are narrowing of our previous $X.XX EPS, the we benefit year to previously $X.XX recognized share midpoint share the second plus EBITDA includes which tax $X.XX to same

for line, changes revenue no adjusted digits, both full Vital of low from original growth mid-single of Systems Care. for consolidated year there and comprised On Infusion growth flat to roughly and revenue expectations mid-single-digit for our the consumables are

original gross guidance. point adjusted expect For margin, approximately our year gross is of we XX%, full margin than X higher which percentage

the maintenance reflect plant benefits back heavily We Austin in product improving gross half Offset of by annual expect impacts hardware. manufacturing as towards chain our sales a as the scheduled shutdown of the and well supply of margin stable more the to volumes weighted mix environment.

for purposes, approximately interest modeling of full diluted back of of be we in expectations for should expenses what to you our for expense million. year revenue million. can the operating XX.X% saw back There consistent year, half. half Adjusted adjusted first rate change half the with half back of is the $XX.X a and outstanding XX% of assume $XXX And tax shares no

days capital flow forecast that we course too the obviously experienced it's for experienced several is have and revenue guidance work second a earnings for year and the and sheet. QX. generation continued impacts stable early both volatility other year, on remainder full reflects our as slowing over on assumes economy. the of foundational favorable from focused call. To and views Our of free XXXX know markets year whereas interest where the environment generally performance could first half. our the in the on the for of will improvement we consistent will gross in be over what improvement the in continued next the with factors a including of see ultimately more these And our remain updates provide aware with past be in currency the rates We're up, To macroeconomic the and happy margin developments of extent rate, the that third and We such we're meaningful our earnings to things would any census a The positive, wrap budgets drive quarter less over the improvement beyond. updated balance hospital will in latest half market settle. cash progress course

the on initiatives over I'll the Vivek, hand to specific will back provide that who earnings improvement. now call underlying updates

Vivek Jain

Brian. Thanks,

revenue and On grow ability X the differentiated the last about talked calls, to our product stabilization, we've lines.

as cash that relative growth flow than lost less we and and now our the earning is evidenced While on industry that and earnings still company revenue fact a it's had not expectations, revenues higher we're that nice the higher bit earnings it's have by us historically. to on under a to

we're on improve. in for rates result, obviously, focused As and actions extremely profit are and the operational term, interest eventually waiting a the medium on about, macro and improve the growth, revenue mix which items currency pricing, to to efficiency

market growth. become have efforts innovation Our the is that mandatory more revenue for visible sustained in as

logical area we the on other focused as from continue fully see recouped we to that is customers pricing experienced. The not We be market both general. here, we've more the substantial and in inflation behavior do

efficiency each to have streams, been margin several improvement time. pursuing which over work an we add From operational our will standpoint,

systems cutover First, speak. order-to-cash Canada the as of is in U.S. our flight we and

the of come. After and are U.S. stable, in begin able early of next We be the have we'll that for quarter logistics typically to allows any internationally activities done flows ensure these corporate year. optimization bumps to the that the handle infrastructure. and these we our integration This networks physical Canada

These are discussed, fewer many but of impacts people to us to competitive consolidations. as doing for as must right It basic previously as and positioning It have and tackling members to the sites, not choices. who fuller been value have simple is easy be factory drive the production have real customer. it our for done team geographies. the years, them been in network and have Second, blocking we

months. the commitments of continue a over we and next Lastly, kicking consolidations on our number progress real various make to repricings estate XX in with

the are execute. bit normal to While where help takes that it all bumps to need we but I these contribute be X to offset economically seem in and time and mundane topics, to meaningful a business, happen of mentioned little getting items may like just

in Given we're but what we've of allows willing the possible. integration not as margin quarters, as experiencing been to through go in us dates commit few last exact our levels, fast to team's absolute to

of value operating they about whoever from as earnings out as rates, talking of will long. were perspective, we or and been frankly, These mindset. recent but higher-for-longer et interest macro with call, the do, to for felt maximizing a and items said the last as just play a cetera, it And we the businesses have We too currencies, values long versus but manageable revenues, a are take quality of and improving sensible time bear the as investment. expense little assets our more not more asset bit we

To up innovation we our reliable network in with on. margin won the businesses goals acceptable be of no systems most prepared and in and debt don't where direct equity, to our the within each be finally portfolio that ultimately There optimized we noted, to pursuit any from frivolous to year we multiyear move rest profit or to add transfer better to X, next these we is levels here. tightest want deliver on the activities the value goals, portfolio we with are industry-acceptable an profit with growers Brian a and us manufacturing for an have which the and margin allows the to consumables confusion of company

of items they innovative, And We significant training, require reliable needs are an to manufacturing that The the be years. produce ICU Medical all clinical items is supplier. our do market stronger not to barriers essential customers in from that called last company and unless must. switch want few the general, events

And to we'll we that, Thanks as improve it team to with open the up customers each all members day. questions. and

Operator

our Larry question take Solow from first Securities. CJS Instructions] [Operator with We'll

Lawrence Solow

pulse your running sounds year. are little things curious, revenue of really base question, the year. just guess on the well. QX your growth last guess a first was a point nice weakest last I like it lower really obviously, But Right. just environment, off bit I of

I'm to a are concern where figure up kind capital just you And on you just better. us that kind stocking always did of change. trying that feel a when But mention that give be of and little and a little bit may hospital spending out. hospitals bit is budgets there's today? times Our can could a

Vivek Jain

Yes.

I Larry, last think you. the thank call -- on

as we update, of the were a was to good. maybe said March, call, And on normal. QX we continued the to kind in it but last reasonably just think, we've in and were little we lighter bit a speaking pretty it normal. think back gave Things said I we think came I feel touch -- May, I --

there. of one be They have watching cetera. broader no there's to would I environment. what anybody don't short obviously the no in asked think market, continue anything, we in been the I say all going economic et and The -- we're pretty are volumes normal geographies. is other in time, up called surprises items -- world last feels good. sure think that's now, stocking right and analysts And the what's making on

Lawrence Solow

going Okay. Could not there's so I too, you next positioning, to speak to your maybe much year? of this but big GPO contracts. pricing year, know a couple maybe

What So you your but over the is particularly for I just think you next earlier, positioning resolved we're out in, as -- you beyond? in head today looking 'XX and feel little bit -- a do how into solutions. do few quarters

Vivek Jain

will Clearly, We and contractual inflation had hit of done, make that do least GPOs the a improve stable that flexibility in customers say, Once a the speak, of a had think the last more return. business they entire business U.S. comments to have year's the to we and need so the fair to that a we to approached coming bit optimism seeing to be intended script some try number to to categories to with our are we little sought try priced, individual across do customers contracts sure the been next bit of be the the that us was first, at where that able to we over portfolio. have that are to -- know -- of ticket, fair you here be still earnings up this return. make was There to that a were the activity. I the make and the a in to valuable were the The years. sort entry had these Certainly, fairly we priced. some for huge customers. make are flexibility X.X we areas

we think okay I it. about So feel

Lawrence Solow

have And like a just kind to been just on Great. things Smith, lastly, feel of couple of that a they just negatives some couple turn positive.

I on to know looks Access, had it Vascular even And return growth just the that recently, more but quality out flat I update like whole coming like down product guess, I out to. syringe the part continue issues, called question, It been that new second on things or First, then line this that quarter. particularly refreshed of know progress. to sounds you just side.

that are things looking end positive more guess too. on I So

Vivek Jain

to Larry, this I one. ask we're going queue but... in to you think get the back No, after

Lawrence Solow

done. I'm Yes, I'm done.

Vivek Jain

the QX first was was That I departure. last solutions think in the particularly real on point, year. weak

a bit us go. that the on you since said best just lower. business, are Access, work little catch-up then, has we much portfolio Solutions, what's there's That's correct long some the get on. And this including of Vascular consumables of the on of base eroded aggregate, back that portfolio, was sales It last the back. still most was as relatively and business yes, order way help year, the gone was So but in -- the on it a to sequentially Vascular would back focus of And consistent sort we Access. quarter Smiths caused so

there's appreciate but I So improvement. comment, for areas still the

Operator

The next King. question comes from CL Stewart with Kristen

Kristen Stewart

out puts quarter when a takes in, the look year? XQ? fourth you confident feel than we still in we and I if in was third Do think rate bit we little wondering a should of They bit the on how if the exit for higher Or came margins. expectations, into that that you at the for wondering little my well. focus you the expectations I you than just case least guys of as kind gross about in was there? at better And how came could quarter. or think you as and that should was about can a just

Brian Bonnell

would had and we better had QX we just were bit Yes, of Part gross we mix margins that a agree product planned. hardware than that was less different between a bit little had little from there's than and categories. Kristen, we earlier benefits of more the synergies some those revenues margin this and chain year. two show also supply up profiles planned we And disposables had

we half, So about benefits kind of think have the back won't from we mix. of as kind the product the

In fact, go of way. to it we expect the kind other

So in we second that pressure first, relative the to benefit improving the will gross in should margins half half from second the but volumes.

would And I so view I think is as we full we exit full on we going point of year, better to gross to expected. think year, than about we better. exit kind exit slightly now a slightly the where we it's kind of margins we XX% say, And would probably better. or at the XX% similar view okay, on I And our how or think we are about our year year think said meaning be

Kristen Stewart

correctly? you at I'm hearing what exiting XX% year the is So

Brian Bonnell

Yes.

Kristen Stewart

bit just leverage? operating XX.X%. be Okay. little basis terms And about think unusual just comparison of the XX.X%, mentioned anything were guided you there? why can't you Is there guess get last from a to year-over-year thinking you year, in expense, I I you more a we should had

Brian Bonnell

we plans given the goals, year, not last level. didn't mean did hit the I fund financial our Yes. at incentive target

better at the payout. a potential when we're year, sort or little it and incentive this to plans of so comes And

basis. year-over-year So I would differences probably of say a that's on bigger one the

Operator

Fishbin question Markets. comes Capital KeyBanc Brett from Our with next

Brett Fishbin

on margin wanted quick Just previous with a question. really follow-up gross start the off to

drivers commentary topic. a lot the inventory of both But absorption on out catch in called didn't directions. You under necessarily

much like improve into ago. absorbing also curious that representing of was much a second the that's second terms in how headwind few the still And inventory underproduced just So from a the how might just quarters of then that half? quarter

Brian Bonnell

wouldn't Yes, And drag we the that really of more a in modest I'd to only of I the the drag course into from inventory be QX over kind absorption has that head going with quarter, year. as of say, -- with been million this Brett, second in reduction diminishing levels the inventory forward. material consider $X kind under

Brett Fishbin

All quarter of to to right. just level expecting XQ. versus that called I were but last the close was consumables, think see don't some then ] definitely Perfect. sequential moving expecting you sequentially, And improvement XX% you growth to [ like anyone out

called areas. out couple of You a

and little up think the VA I I like that unpack bit [indiscernible] half? picked could positive. into sustainability a just more back if were and sequential like Maybe you change then

Vivek Jain

consumables Sure. biggest All equally business of sequentially. that them business one Different and the core the drivers of -- for X one, in in obviously kind lines Thanks. globally grew all the is was therapy as each grew U.S. the infusion

for is good knew some was out it and we of installs been and infusion those it the year. the of census was, about that we census have has the there. price implementations done also getting and were part good. On balance And that huge a we think we therapy, a slate decent of -- So a question as was as was of bit getting little previous

continue piece the So is biggest segment. I on which of -- the half it, think we almost

come cetera. lines of the still back et think us screening, to oncology feel It I very like diagnosis, that on have we feels comfortable. in things terms

the it feel there. does haven't I the I'm all like uplift done moment some business, there's what a screening other So well, sure consistency. X eliminating companies customers ball that difference. sense. so of the years on been over. with something negatives big And low, had makes a Access market not It there's calling they're just a made saying, on had product to but some and line, good I've it's even have we necessarily if at the converting doing spiking we've gotten Vascular more worth positive, look activity. And

it it. also demographic some bit, we just from little a trachea [ nice trachea ] Hospira some and to it. call, has change And X valuable has said need keep good took it's ] the years business in the -- a but As it's in around we last [ consumables focus category, to care that chronic things bumpiness market improving a and still

with So some we've a timing. all and in categories, be right right think neighborhood and to focus the in lot in neighborhood, had good those better I and is the execution

Operator

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

Michael Matson

the Yes. I pump. new just syringe guess on

share that way of So how think hospital terms on think of them that is range complete just features with its them? pump do products it's to into do sell kind important some software of enough to is coming degree platform? kind to winning your you satisfy you and new the promising on Or you of in the can

Vivek Jain

Again, I acquisition, was time in recent market. us, pump with I separate been think we and most bought was market for took or we a one driver have a the them a U.S. provided key in LVP X difficulties core this X large of or XX-ish-plus percent did for from who the opportunity reasons there the market chunk on have syringe. mean, more an we the their of syringe long to

it's a and certainly issue, they better use an all customers can is be not have cases. it their for if depending simpler all So but end setup on

things we syringe the And are not to flexibility leading pump States situations. I'm when necessarily are in the the so still offer not that today. company stand-alone We both futures. these want that say sure United selling away far you

we've and so it's of bit of modernization same other to the the as And other innovation little connected pieces the the in more areas. done about and advice a

a decision. opinion, on item, what either convenience a chooses but makes play the solely full is. LVP notion I It's It's think everybody can choice. our it combined syringes of in the Nobody way. likely, not a system certainly the

Michael Matson

Yes.

there you Are once out pick pump market, -- on back you it sort what off to now in share then, the are inflection and you there? ALARIS market Becton in with pump? Okay. hearing maybe I And their the just also wondering kind get able point and of I with seeing guess, that of I piece But place. just okay. was understand. some

Vivek Jain

[ think is It ]. the I -- companies been in active here. and is I public have same it time. mean everybody incumbency very said have which common all high of thing, -- a power all is The very

consultant sounds there's incumbent high. is advantage So like a

set change, job competitive for products. the party's it's our relevant to create However, it's a across all case job and of most

energy going you obviously, see in isn't the light. And, job do out because have our multiple it's evaluating thinks we ourselves be the words all a said to the X get supply, the to strips years changes do so our potential. size, best call think choice. a of and most be there People And difference people everybody on even which our going relative the huge with trying innovation put earnings And companies in small here market are is is vendors, there's to static. in and to make think to all we

think was difference. smaller coming can where business most what and have more once share with a we wins much huge And leading technology a modern that's today the we the make market format actually in incremental so

Solo amount like with So we get the investment gains feel the on we recoup are but we of market where investments I into do we going market weighed investments to file, [indiscernible], dollars those to share worthwhile think we get to the time. Duo over the put are

Operator

next with question Our comes from Raymond Bedford James. Jayson

Jayson Bedford

I imagine so a at ask questions I'll of fine. I'm few That's here. that the bus, back the

XQ Just to strong clear be most expected. here, was than revenue better in

the in nothing was kind there revenue correct? XQ clear, one-time-ish be number, of to Just

Brian Bonnell

Nothing... Yes, correct. that's Jayson,

Vivek Jain

Jayson, it think call, and on only that's that there I would came we was issues true. only be couple was ambulatory that, segment the just that Maybe the we market the thought, saying, that those flagged on points of tad last why thing. a mean of I the [indiscernible] things in of a thing some that

Jayson Bedford

Okay. of kind in impact an Curious, to wasn't aware that. see when of see an impact? I the Did start multiyear your partnership, XQ? you you on will comment And dialysis

Vivek Jain

get. have now for helping consumables we been to words, relationship drive is than is market, to a going a this a years, taking a just but stuff which -- number trying all a was of the of by it's had the more of but cloth too been on there, for and products it the And -- we an driver. key of number like fraction a more I'm negative there's It's other been years, where more sorry, a year, an And we're that support, family cemented great. to in It's whole example global we was impact. sort only ClearGuard been there's that segment, for that's oncology, and it masked an of of -- unconverted it's operators many has make the lot

Jayson Bedford

program. cash? we use fault the financial Can of usage Two That's that factoring on less The shareholder-friendly comment, cash paydown questions. just my it. the missing familiar Okay. AR with is most I'm probably debt assume of

Brian Bonnell

Essentially, quarter program That's... the borrowings. program put financing of Yes, second with on I that's just think in right. another AR factoring we our to taking to help is the during sort that of 'XX as additional liquidity opposed

Vivek Jain

you you The other charging people liquidity... owe cash weren't when is debt our more --

Brian Bonnell

not point us. at another of from being another that's of cash future sort that dissimilar And that use as debt. the in that's view option, we some So for

Jayson Bedford

message is earmarked generation for is Okay. excess cash But debt paydown. from the here

Brian Bonnell

Yes.

Vivek Jain

Correct.

Jayson Bedford

Okay.

one, I Last guess. Okay.

a over what's the the second for of take you in if XQ, implies half print? half Just a you the small tempering XQ step-up versus stuff, it second can just went kind year, I EBITDA lot maybe us the but midpoint kind of of versus remind of guide

Brian Bonnell

midpoint relative the updated if improvement kind you about half half guidance Well, second I half, think versus think, a the of the $XX just of to first the in Jayson, million first second imply half. does

we So that's improvement on if like as second there's kind QX Yes, it's like we but quarter, substantial getting starting in and you the that. there. continue there your improvement feel the more some see to would do forecast. point, level than use of aggressive obviously -- before modest that was of

Vivek Jain

volatility what And going land. the don't is lot of lost we not We FX, It's where Jayson. you know -- right? went went out through on in to there's currencies, whatever we we there, what markets everything a -- through,

Operator

We over CEO, Chairman to have and now questions back the no closing at for Jain, further Vivek remarks. I turn time. this will program

Vivek Jain

continued Have and ICU for speaking strong call. a momentum to your everyone forward forward QX interest our We here, very for in you. everyone Thanks We much. Medical. rest Thanks look to on we summer. to hope to speaking of look great

Operator

conclude for you participation. program. your Thank This today's does

disconnect at may time. any You

ICU Medical (ICUI) 7 Aug 242024 Q2 Earnings call transcript