ICUI - Earnings call transcript Q4 2024

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Operator

Good day, and welcome to the ICU Medical, Inc. Fourth Quarter 2024 Earnings Conference Call. [Operator Instructions] Please note, today's event is being recorded. I'd now like to turn the conference over to John Mills. Please go ahead, sir.

John Mills

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

year on the Financial and On the and the Calendar it Chief Bonnell, let Chairman; be Jain, that under accompanying today's we is view go Medical our wanted have Events Chief everyone Brian a know call today Executive presentation, prepared representing remarks. Officer ICU Officer. Investor the to We to presentation Vivek quarter XXXX and full fourth please To page events. and click will and

Before best refer differ to to the that detailed results future Please during results. we the uncertainties management's forward-looking have be information current assumptions a and uncertainties. available intended about and and representation risks operating financial start reasonable. the bearing information our upon made are future the a prepared company's be We results Future of remarks, risks to statements management aware, expectations of subject I statements for position. are are and not the touch that on materially want and more from they call, SEC are Such to beliefs filings including on all results you any may on and direct expectations. company's based to

complete underlying on period. more that particularly when note a operations, basis. adjusted an period We Medical's results results and non-GAAP during can ongoing from to believe in including facilitate ICU Please today's financial of measures, call, discuss we greater also comparing financial results these measures transparency will analysis

Vivek. as added on provided measures with pleasure non-GAAP it back. as is turn over any of addendums We much also a reconciliation are to in call today's the included release to my that, And that and possible detail these

Vivek Jain

brief and to address afternoon, our opportunities that, it and of outlook XXXX on XXXX some recap ] performance, and I'll Brian our on walk comments on guidance. then to over Thanks, XXXX back and turn with finally and some and under good [ results John, provide and QX After our assessment QX medium-term earnings. fiscal begin highlight revenue to and actions through our the commentary provide full that everyone. should I'll earnings come the our

for aided currency total was Solutions growth by $XXX IV was Revenue QX and company reported higher segments sequentially were X% reporting X had million was Solutions. shortage of Gross temporary a $XXX and EBITDA or for the on IV X% margins basis good constant slightly year-over-year All was revenues. mix growth. down of overall a EPS had we Adjusted $X.XX. and million as in

across our quo balances as solid status as The were program. get it other used weaker get earlier was investments only in and dollar currency need again the than be appear to headwind do pay in broader down done, done. cash QX does QX geography. almost AR The was that capital environment in continued selling close XXXX. every to in customers geographies we sequentially environment as to our demand flat factoring utilization fully and to Cash The

specifically. Getting into our more businesses

consumables business reported. Our grew currency constant X%, in and QX both

niche price was solid rapid but less improvements, it and of driven families in and sequential ] growth as cluster For again The so by by level global years. therapy had ] stable. markets the [ our combined, hit IV in ICU Vascular growth new the some growth a absolute oncology of best legacy in in year, was record Sensus its [ sales product implementations, Access

had absolute dedicated quarters utilization and versus strong acquisition Our in the is in the both QX first had. The growth in set we quarter families difficulties as quarter installed running X was historical Both to hardware best and had by IV levels the constant pump Systems was and grew post and expand LVP sales. much driven we've ambulatory business we the LVP strong closer had X% and currency X% pump platform pumps to base. we've best our ambulatory reported very continue years pumps in the

wrapping up Just the segments. business

Care Vital XX% and a on constant due all Our currency grew to Solutions. shortage in reported the national segment basis, IV

partner. a with Factory, for a aligned expected, innovation commitment, impressed most seeing environment have we believe are the their for manufacturing midway and customers as standing be the continue importantly, and the this of fundamental announced preparation to right busy We up shortage will through venture and and QX. in each in level United We with win-win our the in expertise Otsuka to returning Pharmaceutical more believe been We've we recently with be States. this normal arena joint us

some have discussions are IV The last From excluding stable, more the is IV and the company The Solutions. value perspective the was are the JV. to of Solutions, and level little mentioned in operational to at behaviors our to chain integrated call, et best we trying logistics QX our and our in orders cetera, service, the lowest we midst customers, team. -- even attention had in networks, our scaling innovation logistics aggregate an up, all and running been easy a acquisition of very far Customer stand the it an quarter everything We and back predictable what to fulfillment only and the supply not but though the towards in not Thanks hours, shifted has work the more since broader volatility on the efforts brought up customer production, marketplace. and out see have the since warehouse to worst limited we as of amassed. of has of lot acquisition. in the the divert crisis best our

of progressed in projects to more underpins up items will the the FDA We now framework We optimization of progressed on which the patient, outlined that to lines. complex are early goals we network. these the able be while and American portfolio and product of our wrap successful of site IT this Otsuka, the revenue consolidation by important key our North we our successful quality XXXX long advanced be all the address last feel had by we end our our the JV achieved for our year. manufacturing over inspection, with Many and healthy the term. letter to efforts remediation efforts most high-level final warning differentiated hit with that order-to-cash systems the IV high compliance in growth evidenced cutover And we those were integration of the Solutions with best gives awaiting We substantially products creation resolution. successful as year. a We

come my then and of levels, more and Obviously, few intended to XXXX these time. brief to level. Brian specific actions QX it come at what over each on over back I'll give comments. back our speaks with Brian enhance a a turn recap allows after high are That's of examples profit and I'll those to

Brian Bonnell

revenue Vivek, to providing good QX the the of the our Since year covered the revenue recapping compared with the expectations everyone. remarks original Thanks, balance third, for guidance for along full of flow; XXXX on focus expectations; performance and afternoon, remainder Vivek discussing businesses, my QX sheet our and XXXX. the second, first, and cash I'll QX performance on P&L, for each

currency on reported revenue both compared XXXX year X% full our to revenue At basis recap a currency. was up for and constant constant unit up performance, consolidated to revenue up reported the level, and adjusted of the mid-single-digit a year on basis original business expectations was So our growth. consumables X% X%

the to or overperformance at product above for Here, unit the with contributed a all whole. business each mid-single-digit X target the categories growing as

X% up reported guidance In and constant Infusion of and currency product guidance and slightly X% better than our for Systems of was constant our ambulatory by combination on up revenue mid-single of on for better was basis, LVP the year both currency which than the lines. original driven Vital year original flat. X% digits, reported Care was the basis a a up

during the fourth from IV largest Here, the of included benefit quarter. the Solutions which was higher overperformance, the demand contributor

the Vital for have benefit full would constant currency. in the Care QX, Excluding been X% Solutions IV growth year

results on the to P&L. Moving QX and down further

the from was we benefits the laid in we fourth to offset experienced of out which was in capture expectations the call, see impact our the items. in the gross with from can synergies XX% release, line margin of two the quarter GAAP for you non-GAAP whereby reconciliation As continued press QX by

and IV second the U.S. experienced course The strengthened which year of that the reversal in currencies first of relative profile, foreign currency quarter. higher our of was revenue the selling lower was gross environment mix dollar fourth the as the to the the margin a favorable has last we over of QX Solutions,

represented $XXX was lower of dollar QX, in the R&D operating million as million. during benefit The Solutions XX.X% a of $XXX Adjusted total revenue. reflects timing from higher $XX slightly were revenue QX SG&A expense revenue IV to and adjusted spend expenses of was the spend percentage adjusted was and primarily the and due Total incremental million than amount quarter.

of in was expenses up expenses and consolidation. to $XX in higher system increased diluted and strategic the integration revenues. approximately quarter fourth results network X% mostly year. adjusted Adjusted share. related of of On net a for transaction Restructuring, reflect were release per expense last tax tax million year-over-year basis, earnings tax primarily quarter quarter IT total XX% driven $XX which by the the includes were selling share expiration integration rate $X.XX quarter operating from various compared QX, per fourth and manufacturing The effective of and statute expenses $X.XX benefit a to contributed a $X.XX interest The as was million. contingencies current periods the from discrete result limitation of

approximately reflected year the discrete comparison which share. For contributed tax per purposes, prior benefits, rate $X.XX

Diluted we were last million Of XX% million the EBITDA $XX XX.X $XX higher the And that increased somewhere Solutions adjusted demand quarter shares million the finally, and IV QX million. quarter improvement contributed of compared million. estimate between outstanding $XX the to $X year-over-year by for for year. during million, EBITDA to for $XXX

the sheet. on moving flow to cash and Now balance

includes For zero cash the program the of free $XX balance solid the It outstanding we a was of year. the flow improve. quarter, as end reduced continues of million million, receivable $XX quarter, free was to position our cash of purchase which our another impact liquidity and flow outflow to accounts the as

placement million general product-related and $XX at cash. and invested expansion million sheet, the restructuring finished maintenance just quarter, the as on $XX $X.X of outside we million of infusion balance customers spend up debt well activities, for and on $XXX pumps CapEx system and the to as of we quality integration remediation on and billion cash of wrap with our revenue-generating $XX facilities U.S. with the quarter And million capacity During for

the financial results transaction be our to the signed forward transaction outlook. during IV the process as making this required that year to expect model are by is It close and the regulatory Solutions second for We JV IT will received governance currently and and that important November. year in entity. already we've clearance JV establish Moving the to quarter new support systems, good XXXX we note to to the of progress the flows impacted announced

From and until standpoint, historically the have in the of we continue of we will our report income net After only forward we transaction. Solutions of a to share P&L. will point from our include be financial IV Solutions that closing, deconsolidated financial JV the the the reporting results IV closing will transaction business as

the our on to For JV guidance focus and will our simplicity expectations without of transaction. regard comparability, XXXX impact commentary the

materials purposes, lays the JV modeling have for the expected second assuming from the presentation a Slide that included However, #X quarter in impacts out we closing. transaction,

million; to structure. effects. effect we ] in the of full of percentage to points, in the of with to shown adjusted $XXX of when but be revenue transaction partial X adjusted immediate would first adjusted and these an X quarter an the reminder, consistent longer Slide reporting EPS that expansion adjusted the quarter with therefore, new impact IV X business additional on financial of With JV the announced have impacts the amounts will QX impact under million of November, [ follows: the EBITDA $XX we #X Reduction and a annualized points and closing, second IV the are term. As reflect The Solutions to deconsolidation as margin percentage Solutions of adjusted operations said year gross no X

could and U.S. evolving channels leverage revenues then be also guidance our new our of other situation, our considerations footprint an products one plants The distribution global sales potential in locations. approximately excludes the and are from X/X manufacturing for of to our which and on U.S. the that through uncertain tariffs of are ranging any chain. supply impact tariffs of mitigate the that options for we as manufactured operations potentially Our to business, in our outside distributed three our material Mexico implementation remains Costa or are rerouting evaluating existing impact Rica could of

However, and would times that some lead have the would positive clarity better in be undertake place investment. without would difficult of meaningful any order and in be to time options long on these mitigation return of a investment length require to expected on ensure tariffs

starting revenue with So guidance.

the outlook Consumables for and and increases the year-over-year The Before the Care. price transaction, a The a units Systems gain market current discussed last [ a consolidated XXXX Access expect headwind to little we the XXXX from for for growth continued of the business back rates points XXXX of reflects strengthening normal and and of with we've performance driven constant plus markets and growth basis We Fusion, benefit before, growth Systems GPO of Infusion reflects offset in by considering by year Duo expect low- difficult half XXX growth the dollar do Vital of of basis revenue the price somewhat volume both the underlying currency to we we some mid-single-digit comparison currency-neutral the on a to both which process specialty. QX ambulatory. in saw and beginning growth revenue year. in recently reported be be as higher volume of the the benefit implementations, Vascular the from Consumables continued the due in bit range resign to mid-single Plum longer-term year. for ] share a to towards JV flat expect recovery full line to is that XXX rates a strong a of roughly particularly currency oncology with completed growth adjusted growth result digits and each U.S. for combination in in Infusion

XXXX. calendarization, In XXXX similar be terms the guidance, growth the expected we meaning be annual generally to of seasonality to is rates would with each expect quarter's to in consistent

Moving further the down P&L.

the adjusted XXXX. Before considering partially XX% the in neutral on for impact margin of the the benefits gross gross XX% price freight the This peso. range a XXXX, FX the our in continued be from JV expect our We year benefit weaker Mexican and from continued anticipate margin synergy by from by our range for the plants. for transaction, effects to the compared relatively inflation XX% we increases of in full rate also to offset to be to U.S. being assumes compared selling offset negative includes to labor rates The with the range fuel. Mexican and dollar stronger being generally environment stable capture currencies

to resources current represents for inflation be We some X% X% normal as for are drive expected year-over-year. plus increase which Net XXXX, interest expense in of the well reflects roll-off of a investments XX% a planning a million expenses interest swaps. market operating commercial to to $XX based initiatives revenue increase percentage combination is The growth. R&D a be of adjusted for strategic as approximately expense and rates revenue portion interest approximately rate our of on forecast future as

Rica percentage our tax X points adjusted as global is of normalized XX%, The on to rate operations. higher rate Costa Pillar around historical the a should tax minimum tax approximately which X be our implications result X than

together of million to these $XXX shares diluted in range year. XX.X adjusted estimated $XXX of and to components $X.XX adjusted the the per during a in EPS range EBITDA to in $X.XX results finally, the million XXXX Bringing outstanding are And average share.

Now on to cash flow.

year ended million $XX we of the XXXX was than million had cash we XXXX, $XXX our free As for almost original flow which better guidance.

term, benefit potential is the other and be capture improve compensation, remaining activities flow for from we some goal levels accrued CapEx the Italy XXXX, higher investments by cash For for with integration incentive quality to in XXXX completing somewhat remediation the cash the to free flow payments Longer onetime offset to in items. additional same and around our and clawback the flow to expect free payments cash synergies. by higher earnings be

result and expect in historical of almost In remediation of for soon helped with trend, annual earnings by first to revenue finish and to the throughout as which XXXX, be quarter we invest prior should quality over of integration the year consistent the million year a as free incentive is year growth. that $XXX our work remainder cash possible. with Timing benefit in compensation the payments flow improved as of lighter the

$X.X $XXX of terms and includes total additional during flow generated the net debt $X during capital principal approximate of debt When In combined with and prioritized billion of free around year. as payments. both from of the allocation, XXXX expected end Any of we by will our the IV be JV Solutions $XXX net XXXX. the the million cash had towards which payments should end reduce approximately principal scheduled proceeds XXXX of billion debt to million transaction, paydown

we To back cash predictable the the to we're revenue and XX wrap growth the made consistent XXXX to results. with get more over past XX saw happy we've improvements months reflected flow up, to generation, in which and

I'll focused those beyond, some For improving over hand profitability. call we're initiatives. the upon Vivek expand to XXXX of And back on and to

Vivek Jain

ability our lot. is track year's quarters hope the revenue as everyone better a last over That obvious predictable it's to X deliver X guidance more the Okay. revenue growth. same to or last in Thanks, record a year's We with Brian. was that this

solid sustained most historical closer revenue combined to acquired innovation consistent about consistent lines refresh valuable have the execution and While growth we're to now of footing portfolio. levels, product is improved to the many be with on

in Plum have Our of last approval of safety the over Plum CAD new related LifeShield submitting few into for we for software. Fusion are next estimate review XXX(k)s over gone the for and addition Solo the to process heaviest XXX(k) Duo, our our our business, our single-channel quarters. where our is will final pumps the pump to the investments response Med years and FDA submitted verge expected And be pump best the on the today

most portfolio software the come. tools and our common right anchor and will a products upgrade The [ right these all markets sustain want safety to that launches the job, these many years path the base minimizes for of a the new onboarding, verge ] modern bring to of will for trade the Simplistically, LifeShield of software in number we have innovation, in are connected of All continue can and clear for solution participating alongside competitive previously us In devices that infusion broader a And connect with Consumables, our speeds fleet in create provide the interoperability filings, addition family on which Plum revenue enable of Solo all to we're some pharmacy interface user existing and recent the products. important prep also drive training, and opportunities. will customers enables installed our growth. of standardization. the to mentioned

and our more not unless is where we that the have earnings lost that what's Mathematically, JV up perspective, a stated financial call deconsolidation guidance reality described And we stagnant we the XX-ish fact of these momentum most had margin now markets should from revenue this of of a earnings. the in year, then. are but ultimately, QX, XXXX, and reasonable on this us in until should on the of in impact times we revenues. earning XXs Solutions innovation companies be types in on earnings needs the based QX IV last and fully under low EBITDA given we of range of our be level. When to at somewhere higher great It's show minimum the we in

improve are on sustain the level time. We this and over that focused drivers

XXXX, to have with gross earlier ability earnings. and estate being by been we valuable is between right them to blocking the improving These are and fewer Profitability consolidating very obviously in production XXXX basis. impacted systems. biggest and pricing, drive since expectations the of real of with there step basic have IT and items ago been are for network, rate stable place items our important as in logistics, I of improving Operationally, have full. currency by and XXXX. goal fully the on our pricing. These when raise Progressing to gross the no parts earnings under completing on programs will sustained driver the focused an growth here. Simply lag overachievement described some this these in margins and of them the directly the tackling control. by Many have magic most and moment helped in the in the industry work opportunities coming our help worked relative Revenue inflation up our is offer run margins annual a hard are our on XXXX end are flight we've our that our value in physical and in sites said,

that products remediate bringing a is what know the and has flow been to Given commit to we need free lower moving consumed willing date, quality payback cash, activities the by levels forward. have work levels. everything These a these and we to number to by improve not certain acquisition, cash but reasonable the through to certain activities a and we've system since these --

is While we will largely the do interest down. our believe control, expense come out eventually interest costs of

our expected approximately expect the we of JV based proceeds paydown. debt net to mentioned, debt end Brian billion be $X on 'XX at Otsuka in the As

to believe limited for innovation our portfolio investing and We the to of is value-creating pieces other capital in more if bit have organic a M&A right the the given was optionality and need situation on additional continue arise R&D.

has other ratio, think is grow, capital shareholders time, about to to interest perhaps to goal. our range over out with environment and we of a Again, all the outcomes. earnings And which of ultimate ways lower but continue ultimately, this leverage if better to return can certainly happen, it's not can rate potential

and really our to we the they the be network with don't general, portfolio profit to unless [ activities we portfolio goals and clinical multiyear or must. rest The the needs items have profit fold an each want and consumables company that systems equity. we in a Medical We frivolous significant up items a and barriers want reliable essential to of switch next innovation tightest not any allows that do and customers we require are goals, with to for market ] want be here. manufacturing manufacturing training, our transfer confusion produce the ICU direct it innovative, our to from to no an each improve reliable on and you from as year most industry the Thank add is questions. acceptable stronger with two, all our acceptable the customers that To value supplier our all of business margin within optimized members be growers an open day. deliver and these team we to company we'll debt up There's over With few us the ultimately years. where to level for events in that, in the pursuit last margin

Operator

with [Operator question Instructions] from We'll take James. our Raymond Bedford Jayson first

Jayson Bedford

the quarter. fourth I'm if questions, I around reacceleration a here, Consumables few a in consumables apologize adjusted here. But and driver nice stood as out in Just comp jumping

Was IV growth component? driving the mentioned Therapy, a did anything is Vascular But because Just Access. that? else major legacy price that's stand You there out.

Vivek Jain

script. was hear spot growth, it we anything from It's that you. number little the in It like Jayson. I row. of And was a Thanks, price. been a was the was each for think to new installs. all global there combination in finally. things don't It's of There in it's didn't quarters mention nice everything. It was a

good So well. working it there. is operationally production everything feels And quite

Jayson Bedford

from Is EBITDA your it margin the we little in But it that ex a level wondering IV possible on 'XX? Solutions is the you an -- estimate, contribution the got here EBITDA of I've was fourth set baseline just felt Okay. was should off talked us quarter. solutions higher XX%. I'm in 'XX? work in contribution that to the What like what but about

Brian Bonnell

I done the on actually for Jayson, and gone what think don't we've But Solutions. we've it reported company. carve-out I the for materially 'XX be complete different IV total -- than sort EBITDA EBITDA wouldn't IV have excluding I Solutions a impact. it don't think of back the period in would disclosed we be nor don't around the

Vivek Jain

Jayson, mean, [ and $XXX assumptions What same for million announced the I revenues approximately. I ] do the out can IV in we inferred give [ you use that that. chart million [ ] the $XXX ] of over Solutions, would you

Jayson Bedford

Right.

the in Okay. year? Solutions, on IV going you of much million how half of just And in the are recognize $XXX to first 'XX the

Vivek Jain

hot market, it is It's off. slowing in that -- if still it's the question is -- if cooling question really as means the

share. disproportionate a there's if know don't I so And

-- I about safe day that I'm something like XX-XX would what's safe. assumption. front be a sure more not of we that much the half it's level the the of is all exact precision, go in the but was closing those The P&L on to deconsolidation know QX, and then it's in think in part very it's or exact we months even saying for It many words how through. it's in answer P&L. give year. the the

Jayson Bedford

Right.

Okay.

now. then and kind think the to wouldn't others I'll out queue. maybe Duo Plum you growth you for, to Infusion respect see get I referred with And when just the think second in of year let last Brian, in I a Okay. year. guess, first one, you some Why the half half? there of been Product has I in referred implementations Systems, impact to

Brian Bonnell

be second just more will to It's in we think see some going half. first I in impact half. the the pronounced

the of So in it's the to second a growth the rate year material than more first. the driver half

time by ] get the Just of the been product out longer, obviously, half [ year. the second because the we have there will to

Operator

We will Fishbin Capital to move KeyBanc with Brett next Markets.

Brett Fishbin

that I'll you capital about on a talk -- bit wondering saw into could just actually wanted if XQ XXXX. just in really ask a was and follow-up question I the environment equipment little the you more demand and last to

how of then about the like I like Duo seeing Plum -- how thinking But think rate really feeling the used you market with you're normal. you're about just wondering yes, you're wins also potential word progresses? year competitive the as and share

Vivek Jain

if Brett, truth look what the is landscape, unpack because of everybody hard to is pub everybody, across it's kind you winning. the

way share net over installation hope think net we between difference I X to -- is focus last signed only we don't like we focused somewhere was I on some won occasionally, we something. it, between year, what's we the what the But need bps was feel real competitive material take I you We to and year more value, time don't, point amount point do signed. We but X market really wins, get XX above upcoming and with to believe up anything the we've the we install installed our very lose Brian right, wins competitive last we're probably a to on NPV and point. We try and are of it'll stuff anything. think create think the holding of making. we

some done, the to for words the the -- get the terms we've of environment, they're In make have script done people things getting the people In same I capital quarters, make forced right, used or to that choice. X need think on if to choice. cases,

so other people for IT not capital transactions equipment So while real moving and certainly as outlay, it's make a it are purchases big IT, not certainly is purchases as forward.

Brett Fishbin

helpful. Super And on just one question Consumables. then other right. All

a you've mid-single-digit think expectation for kind year. like growth baseline of mentioned I next

some the think these benefit pricing the much strength benefit number that there upside the of as pumps, you continues? be really contract that some to XXXX if about as with well the more saw of could of that thinking you of placing of GPO So do

Vivek Jain

a it's the fair the Onco question, around data Brett. the for obviously, and And those think performance I product of is self-evident. Infusion very speaks lines Consumables products core

so create, all certain I we through, markets It's time. it's been stuff happening it's I nice not now. and irrational quarters, worked to want same what all price GPO the a put making is contracts. expectations saying at sure pricing is it's It's niche just corner as of we all the things people and we to it's these are -- a as number of think -- of little the to try set earlier the those any not in planet also simple the there's and under every well question, relevant, mean, don't set really

Operator

move with will CJS Larry Solow to We Securities. next

Charles Strauzer

Larry. It's actually How Strauzer Charlie for are you?

Vivek Jain

charlie. Hey

Charles Strauzer

we What's the target little partial level after there? sale a of going the low in pro to the talk leverage ratio and Can in balance of It's probably optimal bit about mid-XX? your Xs. solutions forma a for be kind sheet

Vivek Jain

that one flip Charlie, I'm Brian. to to going

Brian Bonnell

Yes.

the we've somewhere obviously, industry, always into well net company think leverage the with kind been operating we've ratio size And on we in -- around ratio and said for our a the Xx. our would I Xs. of of acquisition, a comfortable feel leverage since

of bit down We of that. will least see a little at reduction leverage pay to probably as and close the transaction deleveraging proceeds we result use debt JV a as the in X.Xx

Vivek Jain

sense, it's year, the applied took the do compute the where can I can think, company with much If we and capital point first change, becomes with that think for [indiscernible] and way The at the of towards it. luxury. the Charlie, some kind just of should cash all and you Xx, ran We at of year's do that and capital can debt ] $X don't have mean saying to be implied some. of decide we ratio year, there loan the what on next we the if net then even should rest we compute have of have the if you billion obviously, above what kind it's math, debt guidance with you year's current [ we years this made no some and end you were cost I to dramatically, next leverage right? it would term no

Charles Strauzer

additional Yes, And there makes an asset ability sense. at sales looking is -- potentially? that for

Vivek Jain

two Takes tango. to

things. how be if decision again, relevant story in do made on are a we've think things also think, it's can great -- same do we I I And either and when. going I JV. the out ratio bill to But for to this obviously very customers. it's to There That the more we figure situation was sure clean explore they're to calls of it. last predictably you can of before have we quality few if It's growing a of pretty change of portfolio make we that would that couple what health a said of get that just got be to important math something kind solution in else. or optimization there,

too. good So not a question, it's on us. lost It's

Charles Strauzer

Got it.

last for one me. question Just

process possibly much is And underway, the beyond your into consolidation how and the of benefit much that see? facilities outlook? how improvement we at could incorporated in 'XX of incremental Looking

Vivek Jain

X hit our pre the we JV, X in days, quarters stuff. margins gross think quarters when the I all goal be ago, was ago, a to darkest like XX%, said

and at Our margins key the and goal key a consolidations gross the that. are consolidations are plant of logistics to be was portion XX%

where goal don't year, With this And than those the what close. and things there, all out this from we term it is but year top the that. comes but on long in flight. that guidance are of not year, then laid points, we're and exactly halfway before, then the we're next the think exit in different pretty ultimately, we depends comes anything JV I X are the

Operator

with to Toomey move We'll Jefferies. next Michael

Michael Toomey

for on as Thanks the the on Congrats results. well. super That's the JV color useful.

much every dig details the [ I the into ] the for mentioned the us it's excludes [ at have in facility like not Just you do be on capacity to order? color have And a Costa some the can actions you take immediately maybe of terms in that just I it's tariffs. lacked mid-facing impact, But useful. kind on the those, excluding run on Just effect that you just you would maybe of reason you said ] the there and factors. because guess, any you guidance Rica? mitigating as there? you for impact, anything changing Could What the week. well, just is can through moving factors could tariffs inventory the know of Or how on press? going some

Vivek Jain

think of pole is tent nature I the cetera. the right, mean item, a is that our contracts, industry long given et price I in

So on of every contract. piece is not business

that So I want universally. to wouldn't say

relates first ago came things much question, site. part Costa that to site into in Smiths Rica, it higher volumes bought Rica pumps a we've other run much, from moving large we We of the at that by is And as that that today. ran synergized years think a and your at site. than I Costa Hospira that products

is We we're a Brian burning this of any tried capital lot these of to of takes have goes calories. a say, certainty be payback. puts worthwhile, to do continue on long right to you'd to one items all a of way, as before that. the up now, to there And is is have some lot and the time. It that going how kind calories ability and And like

boys feel And so we kind you how could all hear to of the about my stuff.

take capacity. do have could We will It do while it. it. a to We

some moving As we it north yes, also relates up of border, the flexibility, capital. to that do have consumes but

less global up. that go versus inventory, And logistics of And these at work the very a there's at that increase. then reduce O.U.S. network in the amount of can flows straight not premium We outside for up here. around business question that where capital has things but to trying been so a have to some a of go intensive, reasonable produced, another a categories, we capital We've -- from set been set U.S. through U.S. they're least still

been And so that. we've going on

more big listened participant right when industry are middle say, to us. on and really we provided down exerting to more I are the play has we'll we're right now. think going be it But every I've to the and are probably this what specific certainly there said, specifics levers. energy other those

Michael Toomey

said year you then know half on of And I great. provided, That's you impact. numbers kind Okay. that the post a JV

have So XXX 'XX, XXX you benefits? another guess year? there'll in bps you on talked and this that the in leg another bet get the following to gross about So in be the to assume what's You the presentation margin, it's year bps XXX, same those right? bps I XXX to

Brian Bonnell

we to longer come something X Whatever we'll don't points again, year, X and to this term. get be between next additional get will it year, X within to Exactly. X percentage

Vivek Jain

math just way the Mike, again, you mean, or to X through this X/X the simple, subs X/X closed this make multiply X and right year. assumed ] X/X the I that's times of you hypothetically [ if impact year, it

Michael Toomey

JV, anything on then phasing the just 'XX? excluding throughout expansion of And Okay. the the margin

Brian Bonnell

expansion JV, would probably noting worth throughout -- impact nothing of say probably fairly just would excluding be yes, I the the the other gradual margin any year.

Operator

Mike next with We'll take Needham. Matson from question our

Unknown Analyst

could mid-single if dissect Joseph Oncology, you wondering Consumables. you like guys Yes, to on some digits at for Vascular This seems just having was be the you record a dissect of components Maybe is I gave, bit. that quarter, some maybe Access guidance the little just of if was guys as growers I called that. just Mike. could out. big wondering you in looking that a

Vivek Jain

want you it Brian? do Do to

Brian Bonnell

Yes.

I certainly think as those contributors lines but QX we at probably oncology. as in confident feel making contribute legacy would most biggest XXXX growth, X perhaps infusion And least sure to digits. of guidance, we legacy at, in -- ICU the consider think ICU product product to the and be we we're mid-single expect you lines all well, here I to were core to lines the look

Vivek Jain

segment. the of majority The

Brian Bonnell

majority The of consumable the stack.

Unknown Analyst

looking really about have maybe helpful. can that well way in but had $XXX helpful. would about you timing if low But there's margin that, gets Okay. you I at, your talk Vivek, in then be put XXXX, guess, that talk on 'XX, maybe EBITDA That's than about. you forward, wouldn't looking EBITDA you And it, million rough you anything I that a Obviously, drivers the there? guess, goal the this XXs get talked just guys there. you you probably know longer can I on the

Vivek Jain

we the weren't I'd what in transaction, on you of I mirror things and memory mean get you though we even and Sure. the is we is that then. the said here good up exactly that said, a look say when have

I make biggest that to is think the driver happen.

to have growth, sustained have which saying First, you that. why revenue is we're

direction. participants of your cetera, talked we've about a the a only then at think all gross biggest and there you And about that assets product to core be where along things like of feel are stake for every these synergizing you businesses. -- gobbled in add more we margins on lot we're interesting, have have doing the which in going you we currency, you that's yen, and a the some lines earnings rearranging lot the -- our You going to et all earnings components I tailwind it's on. mean, a in the production, of of logistics, And And really acquired. like and costs, about. and last items the then more industry value the with innovation And you that competitive. it's fundamentally, have look to break a right functional is few IT, took euro, customers, other that these to then what's lot I over and price, in of That need way to are at that bit the lot value and and little the can't that years. assets innovate

right? as X making And in all right be, way, way think broke not But so that growth, doesn't if assets matter X I you're as long revenue those possible. levels to the to a We getting and and to lost have the we there if at time. don't competitive be goes -- your are expected you currency the

Unknown Analyst

back That Sure. your moving forward wind then. Hopefully, is at makes perfect the Sure. sense.

Vivek Jain

pieces The on. very much. it We appreciate we're first X

Operator

it conclude closing of for to the turn the remarks. I'll Q&A portion call. any or now Jain does This back Vivek additional

Vivek Jain

everyone. Thanks,

the call. lot and optimistic about what we to quickly Sorry, everybody's a after very cetera. setting in update QX feel the in for We late JV, appreciate the Medical. forward was on et bring going We you up end, things quarter XXXX will us, our interest look on ICU call of

Operator

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

time, have may wonderful a and You at disconnect any evening.

ICU Medical (ICUI) 27 Feb 252024 Q4 Earnings call transcript