LeMaitre Vascular Inc (LMAT) 2024 Q2 法說會逐字稿

Welcome to the LeMaitre Vascular Q2 2024 financial results conference call. As a reminder, today's call is being recorded. At this time, I would like to turn the call over to Mr. JJ Pellegrino, Chief Financial Officer for LeMaitre Vascular. Please go ahead sir.

歡迎參加 LeMaitre Vascular 2024 年第二季財務業績電話會議。提醒一下，今天的通話正在錄音。現在，我想將電話轉給 LeMaitre Vascular 財務長 JJ Pellegrino 先生。請先生繼續。

Good afternoon, and thank you for joining us on our Q2 2024 conference call. With me on today's call is our CEO, George LeMaitre, and our President, Dave Roberts. Before we begin, I'll read our Safe Harbor statements. Today, we will make some forward-looking statements within the meaning of the US Private Securities Litigation Reform Act of 1995, the accuracy of which is subject to risks and uncertainties, wherever possible, we will tried to identify those forward-looking statements by using words such as believe, expect, anticipate, pursue, forecast and similar expressions.

下午好，感謝您參加我們的 2024 年第二季電話會議。與我一起參加今天電話會議的是我們的執行長 George LeMaitre 和我們的總裁 Dave Roberts。在我們開始之前，我將閱讀我們的安全港聲明。今天，我們將做出一些1995年美國私人證券訴訟改革法案含義內的前瞻性陳述，其準確性受到風險和不確定性的影響，在可能的情況下，我們將嘗試使用以下術語來識別這些前瞻性陳述：諸如相信、期望、預期、追求、預測等詞語以及類似的表達方式。

Our forward looking statements are based on our estimates and assumptions as of today, August f1, 2024 and should not be relied upon as representing our estimates or views on any subsequent date. Please refer to the cautionary statement regarding forward-looking information and the risk factors in our most recent 10-K and subsequent SEC filings, including disclosure of the factors that could cause results to differ materially from those expressed or implied.

我們的前瞻性聲明是基於我們截至今天（2024 年 8 月 1 日）的估計和假設，不應被視為代表我們對任何後續日期的估計或觀點。請參閱我們最近的 10-K 和隨後的 SEC 文件中有關前瞻性資訊和風險因素的警示聲明，包括揭露可能導致結果與明示或暗示的結果有重大差異的因素。

During this call, we will discuss non-GAAP financial measures, which include organic sales growth as well as operating income, operating expense and EPS excluding special charges. A reconciliation of GAAP to non-GAAP measures discussed in this call is contained in the associated press release and is available in the Investor Relations section of our website, www.lemaitre.com. I'll now turn the call over to George LeMaitre.

在本次電話會議中，我們將討論非公認會計準則財務指標，其中包括有機銷售成長以及營業收入、營業費用和不包括特殊費用的每股收益。本次電話會議中討論的 GAAP 與非 GAAP 措施的調整表包含在相關新聞稿中，並且可以在我們網站 www.lemaitre.com 的投資者關係部分中找到。我現在將把電話轉給喬治·勒梅特。

Thanks, JJ. Q2 was an excellent quarter, featuring 12% organic sales growth and 44% EPS growth. I'll focus my remarks on our top-line sales force and the MDR CE marks. Our 12% organic growth in Q2 was broad-based, with 7 of our 12 product lines posting records. RestoreFlow allografts were up 30%, bovine patches, 12%, and shunts 22%.

謝謝，傑傑。第二季度是一個出色的季度，有機銷售額成長 12%，每股收益成長 44%。我的發言重點是我們的頂級銷售團隊和 MDR CE 標誌。第二季 12% 的有機成長是廣泛的，我們的 12 個產品線中有 7 個創下了記錄。RestoreFlow 同種異體移植物增加了 30%，牛補片增加了 12%，分流術增加了 22%。

APAC was our strongest region, again, up 20%, thanks to Thailand and Korea, our recently converted direct markets. EMEA sales were up 13% in Q2 while the Americas were up 10%. Two of our larger subsidiaries continued to excel in Q2. Canada was up 33% and the UK was up 27%, both benefited from exceptional RestoreFlow growth.

亞太地區再次成為我們最強勁的地區，成長了 20%，這要歸功於我們最近轉變為直接市場的泰國和韓國。第二季度，歐洲、中東和非洲地區的銷售額成長了 13%，而美洲地區的銷售額成長了 10%。我們的兩家較大子公司在第二季繼續表現優異。加拿大成長了 33%，英國成長了 27%，這兩個國家都受益於 RestoreFlow 的出色成長。

We added seven reps in Q2, ending the quarter with 144, and we're now targeting 155 to 160 at year end. This midyear expansion is largely about North America, where the territories remain too large. Astro International sales offices, we continue to hire staff into the new Paris office, and we've begun scouting for an office in Zurich.

我們在第二季度增加了 7 名銷售代表，本季末增加了 144 名銷售代表，現在我們的目標是年底增加 155 至 160 名銷售代表。今年年中的擴張主要是關於北美，那裡的領土仍然太大。Astro International 銷售辦事處，我們繼續在新的巴黎辦事處招募員工，並且我們已經開始在蘇黎世物色辦事處。

We also continue to evaluate go-direct opportunities in Europe, including Portugal, Czechia, Poland and Greece. Turning to regulatory, since our last call we received 11 more MDR CE March, bringing our total to 14 of the 22 approvals were seeking. These eight remaining CE-marked should be received in 2025. Some analysts believe that only 70% of all MDD cleared devices industry-wide will eventually receive MDR CE mark.

我們也將繼續評估歐洲的直接機會，包括葡萄牙、捷克、波蘭和希臘。談到監管，自上次電話會議以來，我們在 3 月又收到了 11 個 MDR CE 批准，使我們正在尋求的 22 個批准中的總數達到 14 個。其餘 8 個帶有 CE 標誌的產品將於 2025 年收到。一些分析師認為，全行業所有 MDD 批准的設備中只有 70% 最終會獲得 MDR CE 標誌。

Europe's regulatory barriers have been raised and it's allowing us to capture share. As an example, we now have approximately 90% of the European shunt market due to Bard's CE driven exit. One of the CE marks which we expect to receive in 2025 is Artegraft, our largest American product. We have also submitted Artegraft applications in Thailand, Malaysia and Singapore, and we plan to make filings by year end in Australia, Canada and Korea. Bringing this device to international markets was a key consideration at the time of the 2020 Artegraft acquisition.

歐洲的監管壁壘已經提高，這使我們能夠佔領市場份額。例如，由於巴德 CE 驅動的退出，我們現在擁有約 90% 的歐洲分流器市場。我們預計在 2025 年獲得的 CE 標誌之一是 Artegraft，我們最大的美國產品。我們也在泰國、馬來西亞和新加坡提交了 Artegraft 申請，並計劃在年底前在澳洲、加拿大和韓國提交申請。將這款設備推向國際市場是 2020 年 Artegraft 收購時的關鍵考慮因素。

With respect to RestoreFlow, we now believe our Irish and German approvals will be received in 2025 and 2026, respectively. RestoreFlow needs to be approved by each individual country as there is no pan-European approval. We currently have approvals in just three countries, the US, the UK and Canada, where the combined sales category has been 23% since the 2016 RestoreFlow acquisition.

關於 RestoreFlow，我們現在相信愛爾蘭和德國將分別在 2025 年和 2026 年獲得批准。RestoreFlow 需要每個國家的批准，因為沒有泛歐洲的批准。目前，我們僅在美國、英國和加拿大這三個國家獲得了批准，自 2016 年收購 RestoreFlow 以來，這些國家的銷售類別合計佔比為 23%。

I'd like to welcome back analyst, Jason Witty ROTH Capital who reinitiated coverage in May of this year. In 2014, Jason initiated will make coverage while at another firm with an $11 target and three headlines. Owning a niche, disciplined acquisitions and international expansion. To conclude my remarks, 2024 is shaping up to be another year of healthy sales and profit growth. With that, I'll turn the call over to JJ.

我要歡迎分析師 Jason Witty ROTH Capital 的回歸，他於今年 5 月重新開始報導。2014 年，Jason 在另一家公司時發起了報道，目標是 11 美元，並獲得三個頭條新聞。擁有利基市場、嚴格的收購和國際擴張。最後，我想說的是，2024 年將是銷售和利潤健康成長的另一年。這樣，我就把電話轉給 JJ。

Thanks, George. And Q2 2024, we continued to execute to the main playbook. The targeted call point niche markets and a focus on the bottom line. We posted a gross margin of 68.9%, up 490 basis points year over year. The increase was driven by productivity improvements and higher ASPs. Productivity improvements were driven by higher direct labor utilization, lower times to build and lower quality costs.

謝謝，喬治。2024 年第二季度，我們繼續執行主要劇本。目標呼叫點利基市場和對利潤的關注。我們的毛利率為 68.9%，年增 490 個基點。這一增長是由生產力提高和平均售價提高所推動的。更高的直接勞動力利用率、更短的建造時間和更低的品質成本推動了生產力的提高。

ASP increased 10% in Q2, driven by our highly differentiated Artegraft Valvulotome and shunt devices as well as our supply constrained RestoreFlow. Our gross margin was 68.1% in Q4, 68.6% in Q1 and now 68.9% in Q2. Operating expenses in Q2 2024 were $24.1 million, an increase of just 6% versus Q2 2023. This compares favorably to last year's 20% operating expense increase, reflecting our shift from significant post COVID rehiring to a more restrained hiring posture.

在我們高度差異化的 Artegraft Valvulotome 和分流裝置以及供應有限的 RestoreFlow 的推動下，第二季的平均售價增加了 10%。我們的毛利率在第四季為 68.1%，第一季為 68.6%，現在第二季為 68.9%。2024 年第二季的營運費用為 2,410 萬美元，與 2023 年第二季相比僅成長 6%。這與去年 20% 的營運費用成長相比是有利的，反映出我們從新冠疫情後的大規模重新招募轉向更克制的招募態度。

As a result, Q2 2024 operating income increased 52% year over year to $14.4 million and operating margin of 26%. Our operating income was $10.1 million in Q4, $11.9 million in Q1 and now $14.4 million in Q2. We ended Q2 2024 with $113 million in cash and securities, an increase of $4.8 million in the quarter. The increase was driven by cash from operations of $9.6 million and was partially offset by dividends of $3.6 million.

因此，2024 年第二季營業收入年增 52% 至 1,440 萬美元，營業利潤率為 26%。我們第四季的營業收入為 1,010 萬美元，第一季為 1,190 萬美元，現在第二季為 1,440 萬美元。截至 2024 年第二季度，我們的現金和證券為 1.13 億美元，本季增加了 480 萬美元。這一增長是由 960 萬美元的營運現金推動的，並被 360 萬美元的股息部分抵消。

With regard to guidance, sales growth in the back half of 2024 should accelerate into the mid-teens, while operating expenses increased moderately as we continue to build out the sales channel and invest in new regulatory approvals.

就指導而言，2024 年下半年的銷售成長應加速至十幾歲左右，而隨著我們繼續建立銷售管道並投資於新的監管審批，營運費用將適度成長。

As a result, we have increased our full year 2024 sales guidance by $3.8 million and our full-year EPS guidance by $0.07 per share. Our guidance implies an operating margin of 23% for 2024 and 19% -- versus 19% in 2023. For more details, please see today's press release, but a few Q3 highlights include sales growth of 14% organically, gross margin of 68%, operating income of $12 million, up 31% and EPS of $0.44 per share, up 32%.

因此，我們將 2024 年全年銷售指引提高了 380 萬美元，將全年每股收益指引提高了 0.07 美元。我們的指導意味著 2024 年的營業利益率為 23%，2023 年為 19%，而 2023 年為 19%。欲了解更多詳情，請參閱今天的新聞稿，但第三季度的一些亮點包括銷售額有機增長14%、毛利率68%、營業收入1200 萬美元，增長31%，每股收益0.44 美元，增長32%。

With that, I'll turn it back over to the operator for questions.

這樣，我會將其轉回給接線員詢問問題。

(Operator Instructions) Rick Wise, Stifel.

（操作員說明）Rick Wise，Stifel。

Thank you and good afternoon, George. Great to see this excellent quarter. Thank you. Let me start off -- there's a lot to chew on here. I think let me start off with the sales force expansion. I mean this is a meaningful step up and you're raising the bar again, just a couple of questions surrounding it, and I'll let you take it away.

謝謝你，下午好，喬治。很高興看到這個出色的季度。謝謝。讓我開始吧——這裡有很多值得深思的地方。我想讓我從銷售隊伍的擴張開始。我的意思是，這是一個有意義的進步，你再次提高了標準，只是圍繞它提出了幾個問題，我會讓你把它拿走。

Just help us understand your thinking behind the raising that bar for the rest of the year, and you were particularly emphatic about North America and the territories being too large, implying I assume the opportunity to split them and help drive increased sales. Just talk us through some of those factors in your thinking.

請幫助我們了解您在今年剩餘時間內提高標準背後的想法，您特別強調北美和地區太大，這意味著我認為有機會分割它們並幫助推動銷售成長。請告訴我們您的想法中的一些因素。

Okay, thanks for the question, Rick. It's George. Yeah, and I got out a little bit of this last time. And as you're pointing out correctly, I feel like there's an expanded feeling of that -- this -- at this call where we really have opened up a bunch of new territories. It's the same thing which is the years go by and you get this 10%, 12%, 14% organic growth.

好的，謝謝你的提問，瑞克。是喬治。是的，我上次就講了一點。正如你正確指出的那樣，我覺得在這次電話會議上，我們確實開闢了許多新領域，有一種擴展的感覺。隨著時間的推移，你會得到 10%、12%、14% 的有機成長，這是同樣的事情。

And I feel like we never really not recovered because it's a good thing but we never really got the sizes down following the Artegraft acquisition in 2020. So we're still playing around with these $2 million territories in the US and they're just too big geographically and financially.

我覺得我們從未真正恢復過，因為這是一件好事，但在 2020 年收購 Artegraft 後，我們從未真正縮小規模。因此，我們仍在考慮美國這些價值 200 萬美元的地區，它們在地理和經濟上都太大了。

So about 12 months ago, we teed ourself up for all this by having a sort of a reorg in the sales force where we got for area sales managers. We had never had those before watching over what was then 10 or 11 regional managers.

因此，大約 12 個月前，我們對銷售團隊進行了某種重組，任命了區域銷售經理，為這一切做好了準備。我們以前從未有過這樣的人來監管當時的 10 或 11 名區域經理。

And before that he was the VP of Sales and then nine regional managers so I think we're better equipped structurally to handle it now. And so yeah, we've launched a bunch of these things, and we'll see when they come onboard at the interestingly enough, the hiring is you read in the newspaper, it's easier to hire. These is we're not exactly finding that it's still hard to hire for us in the sales.

在此之前，他擔任銷售副總裁，然後擔任九名區域經理，因此我認為我們現在在結構上更有能力處理這個問題。所以，是的，我們已經推出了很多這樣的東西，我們會看到它們什麼時候加入，有趣的是，招聘是你在報紙上看到的，招聘更容易。這些是我們並沒有完全發現在銷售方面仍然很難為我們招募。

And Rick, this is JJ. From a financial perspective as well. I mean, it's a nice time to fit them into the P&L and you can see op income going to $12 million in Q1 and $14.4 million in Q2, up 50% -- 52% for both quarters year over year. And so it's just a nice time to slot those investments also into the P&L story that we have going on.

瑞克，這是 JJ。從財務角度也是如此。我的意思是，現在是將它們納入損益表的好時機，您可以看到第一季的營運收入達到 1200 萬美元，第二季度達到 1440 萬美元，兩個季度同比增長 50% 至 52%。因此，現在正是將這些投資納入我們正在進行的損益表的好時機。

That's great. And turning to the operating margins, JJ, you were very clear in reminding us that you're basically assuming you hit your targets, I personally like a 400 basis points a step up year over year or '24 versus '23 in operating margins.

那太棒了。至於營業利潤率，JJ，您非常明確地提醒我們，您基本上假設您達到了目標，我個人喜歡營業利潤率同比上升 400 個基點，或者「24 與 23」。

A couple of things. I guess two questions related to that. One help us think about the sustainable drivers there. Obviously, volume mix price, you talked about the gross margin productivity, but how do we start thinking about '25, '26 and beyond in terms of where actually you could what kind of operating margin potential left? And how do we think about them? Is it just doing what you're doing and just help us think through that?

有幾件事。我想有兩個問題與此相關。其中之一可以幫助我們思考那裡的可持續驅動因素。顯然，在銷售組合價格方面，您談到了毛利率生產力，但我們如何開始考慮「25」、「26」及以後的實際情況，即您實際上可以留下什麼樣的營業利潤潛力？我們如何看待他們？難道只是做你正在做的事情並幫助我們思考這個問題嗎？

Yeah, I know that's a tough one, obviously, because you're looking way out there and we don't we have guidance that far out. But I would say, if you remember from way back when we used to say 10%, 20% off, we're going to grow the top line 10% and the bottom line, 20%. And if you do that, you get leverage on the bottom line in terms of an op margin story. Now I'm not saying we're 10%, 20% anymore.

是的，我知道這顯然是一項艱難的任務，因為你正在尋找更遠的目標，而我們卻沒有那麼遠的指導。但我想說，如果你還記得很久以前我們常說的 10%、20% 折扣，我們將把收入成長 10%，利潤成長 20%。如果你這樣做，你就可以在營運保證金方面獲得底線槓桿。現在我不再說我們是 10%、20%。

And we've certainly been beating that recently and who knows where we're going to go beyond this year because we haven't talked about that. But I would say if you kept having nice top-line growth numbers and keep a lid on OpEx, you're probably going to get a good answer there.

我們最近確實已經超越了這一點，誰知道今年我們會在哪裡超越，因為我們還沒有談論過這一點。但我想說，如果你保持良好的營收成長數字並限制營運支出，你可能會得到一個很好的答案。

That said, I mean, if you have a 30% (inaudible) margin number that you're thinking of way out there? I'd be like. No, I don't think that's who we want to be really maybe we could, if you said to us, do that tomorrow and do it for 1.5 year.

也就是說，我的意思是，如果您有 30%（聽不清楚）的保證金數字，您正在考慮如何解決這個問題？我會喜歡。不，我不認為這就是我們想要成為的人，如果你對我們說，我們可以明天就這樣做，並持續 1.5 年。

We could certainly do that by pulling back on expenses. But if we want to keep investing in the medium term and long term with the business, which we do, obviously, then you're going to sort of stay range-bound to some extent. So I would say that without totally answering your question, that sort of the bench post for you.

我們當然可以透過削減開支來做到這一點。但如果我們想繼續對業務進行中長期投資（顯然我們確實這麼做了），那麼你將在某種程度上保持區間波動。所以我想說的是，在沒有完全回答你的問題的情況下，這就是你的替補職位。

Thank you so much and thanks again for the quarter.

非常感謝，並再次感謝這個季度。

Thanks, Rick.

謝謝，瑞克。

Suraj Kalia, Oppenheimer & Co.

蘇拉吉·卡利亞，奧本海默公司

Hi this is Seamus on for Suraj. Thank you for taking your questions. Just looking at the gross margin guidance for 3Q and for the full year just kind of wondering put up a very nice quarter there, about 69%. looks like a little step down in 3Q. And I think the full year was lowered a little bit, but you guys raised, revenue guidance, increased EPS guidance. Just looking to understand the puts and takes there, if you could?

大家好，我是蘇拉傑的謝莫斯。感謝您提出問題。只要看看第三季和全年的毛利率指引，就有點想知道該季度的毛利率非常好，約 69%。看起來第三季略有下降。我認為全年略有下降，但你們提高了收入指導，增加了每股收益指導。只是想了解那裡的看漲期權，如果可以的話？

Yeah, if you look at our Q3 guidance of 68%, then you can sort of impute a little step up in Q4, 68, two or three or four, something like that. So that's the cadence for you. I think the Q3 step-downs is a number of things. One is our manufacturing team has been doing an awesome job and they've been really pulling through a lot of efficiencies.

是的，如果你看看我們第三季的指導值為 68%，那麼你可以將第四季的成長推算為 68%、兩個、三個或四個，類似的情況。這就是適合你的節奏。我認為第三季的降級有很多因素。一是我們的製造團隊一直做得非常出色，他們確實提高了許多效率。

And I'm sort of trying to outguess that and say maybe that doesn't continue sort of steadily throughout the rest of the year. So maybe that's thing one. The thing two is we know we have some higher costs coming at us on the RestoreFlow side. So we take that into account and maybe some ENO topics outside the US coming up for the back half of the year. So I'll take that into account.

我有點試著猜測這一點，並說也許這種情況不會在今年剩下的時間裡穩定地持續下去。所以也許這是第一件事。第二件事是我們知道 RestoreFlow 的成本較高。因此，我們考慮到這一點，也許今年下半年將出現美國以外的一些 ENO 主題。所以我會考慮到這一點。

And then seasonally, obviously, generally speaking, Q3 is lower in the year than sort of the other quarters in the year. So it would make sense that you would step down in Q3 maybe and then move back up in Q4? I don't know if that totally answers and get that what you're asking.

然後從季節性來看，顯然，一般來說，今年第三季的價格低於今年其他季度。因此，您可能會在第三季辭職，然後在第四季度重新上任，這是有道理的嗎？我不知道這是否完全回答了你的問題。

No, that helps. Thank you. And just kind of two or more from my end, and I'll just kind of throw them together any latest updates on M&A? I know I think you said last quarter you're talking about two different companies. Just kind of wondering what the any updates that you can give there.

不，這有幫助。謝謝。我這邊只有兩個或更多，我會把它們放在一起，有關於併購的最新更新嗎？我知道我認為您上個季度說過您正在談論兩家不同的公司。只是想知道您可以在那裡提供哪些更新。

And then secondly, you guys have seen that sorry, we've seen you take a lot of price, so to speak in terms of Boost past year kind of as we start to firm up our models for '25. You know, where is there still left where you can take price in, oh, what do you think kind of what numbers are you looking at? Any color there would be helpful. Thank you.

其次，你們已經看到了，抱歉，我們看到你們花了很多錢，可以這麼說，就過去一年的 Boost 而言，我們開始確定 25 年的模型。你知道，哪裡還剩下可以接受價格的地方，哦，你認為你正在看什麼數字？任何顏色都會有幫助。謝謝。

Hi Seamus, it's Dave. I'll take the acquisitions question and maybe I'll turn it over to Jim -- to George on price but on acquisitions, yeah, I mean, obviously, there's nothing too specific that I can share with you, with the acquisitions department is, is healthy is busy. We just added another person at the Department of and we continue to seek out the same targets with the same criteria.

嗨西莫，我是戴夫。我會回答收購問題，也許我會把它交給吉姆——喬治，關於價格，但關於收購，是的，我的意思是，顯然，我沒有什麼可以與你分享的，收購部門是，是健康是忙碌。我們剛剛在該部門增加了另一個人，我們將繼續以相同的標準尋找相同的目標。

Of course, what's nice is that our cash balances growing our EBITDA is growing so the size of deal we can look at is increasing and I'd say everything else equal, we would prefer to do a larger deal on. So there are various active targets at various stages. And one I can disclose more. I will sometimes you think things are moving along and they don't but, we continue to be active. And I do expect at some point, I don't know exactly when we'll be able to announce something, but I don't know if it's this year next year whenever, but what we're not selling (inaudible)

當然，好的一點是我們的現金餘額在增長，我們的EBITDA 也在增長，因此我們可以考慮的交易規模也在增加，我想說的是，在其他條件相同的情況下，我們更願意進行更大的交易。所以在不同的階段有不同的活躍目標。我可以透露更多。有時我會認為事情正在進展，但事實並非如此，但我們仍然保持活躍。我確實預計在某個時候，我不知道我們什麼時候能夠宣布一些東西，但我不知道是否是今年明年，但我們不賣什麼（聽不清楚）

And Seamus on pricing, I would say concretely for 2025, you won't -- we don't we're not going to tried to set our prices until November, December. So there's that a little bit if you wanted to get some insight into, how we price. I think we've updated our slideshow on the Internet on our website and it shows the last four years of pricing.

Seamus 關於定價，我會具體說，對於 2025 年，你不會——我們不會，我們不會在 11 月、12 月之前嘗試設定價格。如果您想深入了解我們的定價方式，您可以了解一下。我想我們已經在我們的網站上更新了互聯網上的幻燈片，它顯示了過去四年的定價。

I think they were a [8, 8,12 and 8] or something like that and also put it up against the CPI sort of -- what kind of price. So you could look at that and you can make your own inferences about where you think we're going. Couple of other things I would say is that the two items really help us with doing more price hikes, which is when we expand the sales force, a lot of the responsibility that we put in the hands of a sales rep is to go get that price hike.

我認為它們是[8,8,12和8]或類似的東西，也與消費者物價指數（CPI）進行比較——什麼樣的價格。所以你可以看看它，然後就你認為我們要去的地方做出自己的推論。我想說的其他幾件事是，這兩個項目確實幫助我們進行了更多的提價，也就是說，當我們擴大銷售隊伍時，我們交給銷售代表的很多責任就是去實現這一點價格上漲。

So when you see us expanding the sales force, that's our Army to get price hikes, of course. And then also in Europe where the CE mark, the transition of the MDR is putting up a lot of barriers, and I think they're making it significantly the easier to pass along price increases as long as you stay in your segment because a lot of the other companies are electing not to stay in the segment. That's just not file for the for the MDR CE mark. So barriers to entry, help us sales force expansion helps us. And then, the records fairly clear over the last four years and you could surmise what you think we might do next year.

因此，當你看到我們擴大銷售團隊時，這當然是我們的漲價大軍。然後，在帶有 CE 標誌的歐洲，MDR 的過渡也設置了很多障礙，我認為只要您留在自己的細分市場，它們就會使價格上漲變得更加容易，因為許多其他的公司選擇不留在該領域。這只是未申請 MDR CE 標誌。因此，進入障礙有助於我們擴大銷售團隊。然後，過去四年的記錄相當清晰，你可以猜測你認為我們明年可能會做什麼。

Thank you.

謝謝。

Thank you.

謝謝。

Jason Wittes, Roth.

傑森·維茨，羅斯。

Hi thanks for taking the question (inaudible) a solid quarter here. And I guess also thanks for the mentioned beginning, I guess it's $11. That was my target. You guys have done great on executions (inaudible) to you guys. So congrats on the trend as well. That said (multiple speakers) sure and so a couple of questions. One, I apologize, is from the if you -- if this was mentioned already, but can you break out what price and volume was in the quarter for revenues?

您好，感謝您在這裡提出這個問題（聽不清楚）。我想還要感謝前面提到的開頭，我想它是 11 美元。那是我的目標。你們在處決方面做得很好（聽不清楚）。所以也祝賀這一趨勢。這就是說（多個發言者）當然還有幾個問題。我很抱歉，其中一個來自如果您已經提到過這一點，但是您能透露一下該季度收入的價格和銷量嗎？

Sure, so organic growth was 12 and 10 was price and 2 was units.

當然，有機成長是 12，10 是價格，2 是單位。

Okay. That's helpful. And then you mentioned shunts are benefiting from Bard dropping out. I'm wondering if there are other large product lines that are also seeing competition dropout, especially in the biologic front over in Europe?

好的。這很有幫助。然後你提到分流受益於巴德的退學。我想知道是否有其他大型產品線也面臨競爭，特別是在歐洲的生物領域？

Yeah, yeah, interesting. You mentioned biological dose first place I would go to, which is we've seen on patches, biologic patches by Abbott and then I think bio integral a Canadian company, drop out of the European market. That's helped us a lot with XenoSure over in Europe as well as cardio cell over in Europe.

是啊是啊，有趣。你首先提到了生物劑量，這是我們在貼片上看到的，雅培的生物貼片，然後我認為加拿大公司生物積分退出了歐洲市場。這對我們在歐洲的 XenoSure 以及歐洲的有氧運動有很大幫助。

Are these I mean, is this just driving the upside the year? Or is this the sales force additions that you've recently added?

我的意思是，這只是推動今年的上漲嗎？還是這是您最近新增的銷售人員？

I would say over (multiple speakers) --

我會說結束（多位發言者）——

everything?

一切？

Yeah, I think over the last two or three years, we felt the dropping out of competition allowing us to do pricing and giving us better unit share. And then I think the European rep surge, if you will, came a little bit earlier than the American rep surge. So I feel like they picked up a bunch of reps. I can do the numbers here. We had 47 reps a year ago. Now we have 52 over in Europe. So they've had a bit of a surge in Europe and that's helping us as well.

是的，我認為在過去的兩三年裡，我們感覺到退出競爭使我們能夠進行定價並獲得更好的單位份額。然後我認為歐洲代表激增，如果你願意的話，比美國代表激增來得更早。所以我覺得他們獲得了很多代表。我可以在這裡算數字。一年前我們有 47 位代表。現在歐洲已經有 52 名球員了。因此，他們在歐洲的銷量有所成長，這也對我們有所幫助。

Okay --

好的--

Get the program at the price.

以價格取得該程序。

Got it. Very helpful. And then just I don't know if you also break out gross margins between biologics and I guess non biologic for implants, if there's a breakout there that we could track. I mean, what's the gross add,

知道了。非常有幫助。然後我不知道您是否也列出了生物製劑和非生物製劑之間的毛利率，我想是否有我們可以追蹤的突破。我的意思是，總增加量是多少，

Jason, right. So we don't do that. We just give one number, I think sometimes we answer other above corporate or below corporate and the asset. What which particular brand you're interested in?

傑森，對。所以我們不這樣做。我們只給出一個數字，我想有時我們會回答其他高於公司或低於公司和資產的數字。您對哪個特定品牌感興趣？

Well, I'm just saying the bovine patches and the allografts I imagine are a little bit different, but, you've had a nice rate rise of gross margin. I always thought part of that was due to the fact that you've improved your yields dramatically on the biologic front. I thought that was a major driver I don't know if that's the case right now.

好吧，我只是說我想像的牛斑塊和同種異體移植物有點不同，但是，毛利率有了不錯的增長。我一直認為部分原因在於您在生物方面顯著提高了產量。我認為這是一個主要驅動因素，我不知道現在情況是否如此。

Jason, this JJ. So generally, when we say RestoreFlow has done well and (inaudible) done well, that's going to hurt the margin. And generally when we say XenoSure is doing well and Artegraft doing well, that's generally going to help the margin. That's helpful, though, directionally for you.

傑森，這個JJ。因此，一般來說，當我們說 RestoreFlow 做得很好並且（聽不清楚）做得很好時，這會損害利潤。一般來說，當我們說 XenoSure 表現良好且 Artegraft 表現良好時，這通常有助於提高利潤率。不過，這對你來說很有幫助。

Okay. Great. Thanks. I'll jump back and oh sorry JJ. Great thank you. I'll jump back in queue.

好的。偉大的。謝謝。我會跳回來，哦，對不起，JJ。非常感謝。我會插回隊列。

Thanks, Jason.

謝謝，傑森。

Yeah, okay. It a little quiet pocket here. So I know there's a couple of other questions out there. I don't really know how to get to them with the operator. I want to introduce the next question?

是的，好吧。這裡有點安靜。所以我知道還有其他幾個問題。我真的不知道如何聯絡接線員。我想介紹下一個問題？

Dani Stauder, Citizens JMP.

丹尼·施陶德 (Dani Stauder)，公民 JMP。

Yeah, great. Thanks, guys. So I guess just first real quick on the sales rep adds. I know you've upped your full year target, but could you just give any color on your plans or expected cadence for adding these new reps. And with that, how long does that typically take for these new reps to ramp up to the corporate average or even above the corporate average typically?

是的，太棒了。謝謝，夥計們。所以我想先快速地向銷售代表補充。我知道您已經提高了全年目標，但是您能否為您的計劃或添加這些新代表的預期節奏提供一些顏色。那麼，這些新代表通常需要多長時間才能達到公司平均水平，甚至高於公司平均水平？

Sure. And Dani I have handled this question a number of ways number over the years, and I always give an unsatisfactory answer, but I'll try it again. I've tried something different here maybe. The cadence for hiring is we put a lot of approvals out there and our guests that we're trying to do for you guys right now is that we'll have 155 or 160 reps by the end of this year.

當然。丹尼，多年來我用多種方式處理了這個問題，但我總是給出不滿意的答案，但我會再試一次。也許我在這裡嘗試過一些不同的東西。招募的節奏是，我們已經獲得了很多批准，我們現在正在努力為你們做的是，到今年年底，我們將擁有 155 或 160 名代表。

And I think what happens after that, I don't know, but it feels like we'll get to that, so there's the timing of that. And then the second question you're asking is when do they get up to snuff? And I would say we've done a couple of studies around here lately and hardly the good ones get up to snuff right away.

我認為在那之後會發生什麼，我不知道，但感覺我們會做到這一點，所以這就是時機。然後你要問的第二個問題是他們什麼時候能恢復正常？我想說的是，我們最近在這裡做了一些研究，但好的研究很難立即發揮作用。

And the ones that aren't going to make it don't get up to snuff. And so it's not really that much about time. I think in the old days, the answer we would give to everyone the generic answer is about nine months, but to really get going and understand everything. But in terms of you really look and study quota for all these reps that come onboard, it happens pretty quickly for a good guy, good women, who's doing a good job at their -- at the sales position.

而那些無法成功的人則無法達到目標。所以時間並不是那麼重要。我想在過去，我們會給每個人的通用答案是大約九個月，但要真正開始並理解一切。但就你真正觀察和研究所有這些上崗代表的配額而言，對於一個在銷售職位上做得很好的好男人、好女人來說，這種情況很快就會發生。

Great. And then just one more for me. Asia Pacific really strong again, you talked about some of the drivers there. But as we look out for the rest of the year or I guess in the back half 2025, how much of the runway is there for this outsized growth?

偉大的。然後再給我一個。亞太地區再次表現強勁，您談到了那裡的一些驅動因素。但當我們展望今年剩餘時間，或者我猜是 2025 年下半年時，這種超大規模的成長還有多少空間？

I think the runway there are and I never guide past the year that we're in. So we're in 2024 for the six months. I think there's terrific runway in space for the APAC. We're on fire over there, we're starting all these new entities. And I said in the last call it just simply an old-fashioned virgin territory play where we didn't exist in Asia except for Japan until about 10 years ago.

我認為跑道已經存在，但我從未引導過我們所處的年份。所以這六個月是 2024 年。我認為亞太地區有很棒的太空跑道。我們那邊很火，我們正在啟動所有這些新實體。我在上次電話會議中說過，這只是一個老式的處女地，直到大約 10 年前，我們在日本以外的亞洲地區才存在。

So I feel really excited about what's going on over there. And they also have half of the approvals have not -- we have not gotten half of the approvals that we need over there, whereas in Western Europe and North America, you largely have all the approvals that you need right now and in Asia, that's not true. You are 50%-ish.

所以我對那裡發生的事情感到非常興奮。他們還獲得了一半的批准，但我們還沒有獲得那裡所需批准的一半，而在西歐和北美，你基本上已經獲得了現在所需的所有批准，而在亞洲，那就是不正確。你是50%左右。

That's great. Very helpful. Thanks for the questions and great quarter.

那太棒了。非常有幫助。感謝您的提問和精彩的季度。

Thank you.

謝謝。

Thank you. Michael Sarcone, Jefferies.

謝謝。邁克爾·薩爾科內，杰弗里斯。

Hey, good afternoon and thanks for taking the question. (multiple speakers) You talked about, adding reps, particularly in North America and some of these territories getting up to $2 million. So sometimes we do see potential for disruption when you do split sales territory, I guess how confident are you that you can split some of these territories and not pose any disruption? And, you know, basically how do you plan to mitigate the risks there?

嘿，下午好，感謝您提出問題。（多名發言者）您談到了增加代表，特別是在北美和其中一些地區，收入高達 200 萬美元。因此，有時，當您分割銷售區域時，我們確實會看到潛在的干擾，我想您對分割其中一些區域而不造成任何干擾有多大信心？而且，您知道，基本上您計劃如何減輕那裡的風險？

Right. It's true. Sometimes there is a careful when you break up a territory, the person doesn't want it to happen and does wanted to happen so yes, that's true, although I would say, we've been doing this for years and years and years in Europe and the US. And so how we do it, I think is why I think we do it the right way, which is we announced it early.

正確的。這是真的。有時，當你打破一個領地時，會很小心，這個人不希望它發生，而且確實希望發生，所以是的，這是真的，儘管我想說，我們已經這樣做了很多年了。美國。因此，我認為我們是如何做到這一點的，這就是為什麼我認為我們以正確的方式做到這一點，這就是我們很早就宣布了這一點。

We're very open about it and we pay double commissions for the back of the year after the person gets hired into new territory. So the person who's running the two was previously running and territory is getting full commissions the whole time. And then when the new person comes on, let's say, in October, they're getting commissions on that -- on the split, the smaller territories and split off and so is the sort of legacy rep there so we tried to do it like that. And we always tell the reps that we believe the way it will be set up. Your [W-2] will go up next year. So we have a new plan every year and it takes into account what their base quota was with the new smaller territory.

我們對此非常開放，並且在該人受聘進入新領域後，我們會在下半年支付雙倍佣金。因此，運營這兩個項目的人之前一直在運營和領地，並且一直獲得全額佣金。然後，當新人上任時，比方說，十月份，他們會獲得佣金——在分裂、較小的領土和分裂上，那裡的遺留代表也是如此，所以我們試圖這樣做。我們總是告訴銷售代表，我們相信它的設定方式。您的 [W-2] 明年將會上升。因此，我們每年都有一個新計劃，並考慮到他們在新的較小領土上的基本配額。

Got it. That's very helpful. Thank you. And just one on 2Q, really strong gross margin expansion there. And I know JJ mentioned on the manufacturing side, your team has been doing great work. So just curious if you could help parse out how much of that year-over-year expansion was related to these solid productivity improvements versus the price taking?

知道了。這非常有幫助。謝謝。光是第二季就有一項毛利率擴張非常強勁。我知道 JJ 在製造方面提到過，你們的團隊一直做得很好。因此，我只是想知道，您是否可以幫助分析一下，同比擴張有多少與這些可靠的生產力提高與價格上漲有關？

Yeah, Mike. So about half of that was the ASP of 9%, 10% ASP increase sort of equates to 2.3%, 2.4%. Good guy on the gross margin, which is nice. And then the rest of it basically sort of manufacturing improvements around, yes, manufacturing team being more efficient, being more utilized, reducing their time to build. But also our quality costs have been flat now for a little while. And it's I think it's a nice story within the company that we don't we don't really see too much outside of it, but it's popping through now in the gross margin line and helping about 0.3% or so year over year, just keeping that sort of constant.

是的，麥克。所以大約一半是 9% 的 ASP，10% 的 ASP 成長相當於 2.3%、2.4%。毛利率上的好人，這很好。然後剩下的基本上就是製造改進，是的，製造團隊效率更高，利用率更高，減少了建造時間。但我們的品質成本現在已經有一段時間持平了。我認為這是公司內部的一個很好的故事，我們沒有看到太多外部情況，但它現在在毛利率線上突然出現，並同比增長約 0.3% 左右，只是保持這種恆定。

Great, thanks. And if I could just squeeze in one more just on pricing, averaging about 9% for the first half of this year. Do you feel like that's sustainable through the back half and that what's baked into the guidance?

太好了，謝謝。如果我能在定價方面再加一點的話，今年上半年的平均價格約為 9%。您認為這在後半段是可持續的嗎？

Yeah so the -- we have I think, 14% organic in Q3 and implied 14% organic in Q4. We tried not to split out what of that is going to be units and what is going to be of pricing. But it seems like you've got a couple of quarters that you can run with and figure it out right.

是的，我認為，第三季有機率是 14%，第四季有 14%。我們試著不區分哪些是單位，哪些是定價。但看起來你有幾個季度可以運行並找出正確的答案。

(multiple speakers) Mike, as it was trying to say in my script portion of these differentiated devices in these categories with lower arrival rates where you have big market share, really allow you to sort of take advantage of some of that to some extent, and it's sort of a nice tailwind there. And then on the RestoreFlow side, there's a supply constraint issue. And so if we can make them, we can generally sell them there. They're really in high demand in the marketplace and that helps as well. So some nice dynamics as tailwinds for pricing.

（多個發言者）麥克，正如我在腳本部分試圖說的那樣，這些類別中的差異化設備到達率較低，但您擁有很大的市場份額，確實可以讓您在某種程度上利用其中的一些優勢，這是一種很好的順風。然後在 RestoreFlow 方面，供應限制問題。因此，如果我們能夠製造它們，我們通常可以在那裡出售它們。它們在市場上的需求確實很大，這也很有幫助。因此，一些良好的動態可以作為定價的動力。

Great. Thanks, guys.

偉大的。謝謝，夥計們。

Michael Petusky, Barrington Research.

邁克爾·佩塔斯基，巴靈頓研究中心。

Hey, good evening. So George, I'm just -- I didn't -- I'm just curious with the positive comments around APAC anything, new in China or talking about or that just not mark that is worth the time and energy when you got (inaudible)

嘿，晚上好。所以喬治，我只是——我沒有——我只是對亞太地區任何積極的評論感到好奇，無論是中國的新事物還是正在談論的東西，或者只是不表明值得花時間和精力的東西（聽不清楚）

Okay. So we've been up and down (inaudible) We're all excited about it for five years. And then I think we tried to make it sort of a four-letter word on these conference calls for the last five years,

好的。所以我們一直在起起落落（聽不清楚）五年來我們都對此感到興奮。然後我認為我們在過去五年的電話會議上試圖將其變成一個四個字母的詞，

Sorry

對不起

Okay. And I feel like -- (inaudible) I feel like two good things are happening here. One is the small organic business that we do have about five different products approved to get approvals over there. That business is really doing well right now, it's small. I think it's about a $1.3 million or $1.4 million run rate business right now.

好的。我感覺──（聽不清楚）我感覺這裡正在發生兩件好事。一是小型有機企業，我們確實有大約五種不同的產品被批准在那裡獲得批准。那個生意現在確實做得很好，只是規模很小。我認為目前該業務的運作率約為 130 萬美元或 140 萬美元。

But I think I mentioned on the last call we had a 93% growth rate in Q1. And then in this quarter, Q2, we had a 35% growth rate and I don't see that slowing down. I mean, it's a big country, as we have four sales reps right now. So to say that we've only scratched the surface would be the understatement of the universe. So that's one thing.

但我想我在上次電話會議中提到我們第一季的成長率為 93%。然後在本季度，即第二季度，我們的成長率為 35%，而且我認為成長率不會放緩。我的意思是，這是一個大國，因為我們現在有四位銷售代表。因此，說我們只觸及了宇宙的表面，這還算是輕描淡寫。所以這是一回事。

Second thing that's probably more exciting is this it's crazy eight year clinical trial, the work we're involved and again, we don't bring it up much, maybe doing it now on a response to your question, but it's just been this long, long thing. And it does feel like, if you can believe me now which I've been alive for the last seven years.

第二件事可能更令人興奮的是，這是瘋狂的八年臨床試驗，我們參與的工作，再說一遍，我們沒有太多提及，也許現在就在回答你的問題時這樣做，但已經這麼久了，長長的東西。如果你現在相信我的話，我確實感覺就像我已經活了七年了。

So if you can believe me now, we're making our final submission in November, and we believe we'll have the approval for XenoSure in next year. So let's see, but that is the last call (multiple speakers) cardiac XenoSure? And also we have peripheral XenoSure but we're sort of thinking maybe we'll wait till we get the cardiac approval and then do that as a submission change or a change to the submission. So feels really good right now on those two fronts, but it is quite small for us where our guidance is $218 million for this business this year. And it's a $1.4 million business. So yes, it's pretty small.

因此，如果您現在相信我，我們將在 11 月提交最終申請，我們相信 XenoSure 將於明年獲得批准。那麼讓我們看看，但這就是最後一個呼叫（多個揚聲器）心臟 XenoSure 嗎？我們也有外圍 XenoSure，但我們在想，也許我們會等到獲得心臟批准，然後將其作為提交更改或對提交的更改。因此，現在在這兩個方面感覺非常好，但對我們來說規模很小，我們今年對該業務的指導為 2.18 億美元。這是一項價值 140 萬美元的業務。所以是的，它很小。

What's the turn around on regulatory body over there on a trial where you submitted the data in like November or I mean 6 months or 12 months that was the turnaround for potential approval?

那裡的監管機構在 11 月提交數據的試驗中有何轉變，或者我的意思是 6 個月或 12 個月，即潛在批准的轉變？

Right so and when I say this submission, this is the quote, final submission we've had two or three other final submissions, which came back making data requests and things like that. So the words out of my regulatory group is okay, this is the last final questions that they want.

是的，當我說這個提交時，這就是引用，最終提交，我們還有另外兩三個最終提交，這些提交回來後提出了數據請求和類似的事情。所以我的監管小組的話是可以的，這是他們想要的最後一個問題。

And then in 6 or 12 months, you're going to get your approval. So supposedly it's Q2 to Q4 next year, we get XenoSure in China. But yes, I will see I don't we've lost faith in the timing on this topic a long time ago.

然後在 6 或 12 個月內，您將獲得您的批准。所以預計明年第二季到第四季，我們將在中國推出 XenoSure。但是，是的，我會發現我們很久以前就對這個主題的時機失去了信心。

(inaudible)

（聽不清楚）

house on organic growth in other markets, but not absolute.

其他市場有機成長，但不是絕對的。

Okay. Just real quick, you guys talk Artegraft, you may have mentioned it in the prepared remarks but had there been any additional regulatory approval or Artegraft (inaudible) going forward.

好的。很快，你們談論 Artegraft，你們可能已經在準備好的評論中提到了這一點，但是是否有任何額外的監管批准或 Artegraft（聽不清楚）。

Okay so that's the big Good question. I'm glad you're asking me. We glossed over quickly, which is yes. So we're applying in seven different places, all Europe as a whole, let's call it. And then in the prepared remarks, we're talking about Thailand, Malaysia, Singapore have already been approved -- excuse me, excuse me, have been applied for.

好的，這是一個好問題。我很高興你問我。我們很快就掩蓋了，這是的。因此，我們正在七個不同的地方進行申請，我們可以這麼稱呼它，整個歐洲。然後在準備好的演講中，我們談論的是泰國、馬來西亞、新加坡已經獲得批准——對不起，對不起，已經申請了。

And then Australia, Canada and Korea will go in by the end of this year. One positive thing that happened in the last, I don't know, three or six months here has been that we had previously thinking -- been thinking that Artegraft was a late 2025 approval, and we're now thinking it's more like a June approval of 2025 -- excuse me, in Europe, sorry, in Europe on the CE Mark, we feel really good about that.

然後澳洲、加拿大和韓國將在今年底加入。過去三、六個月發生的一件積極的事情是，我們之前一直認為 Artegraft 是 2025 年末批准的，而我們現在認為這更像是 6 月的批准2025 年的批准——對不起，在歐洲，抱歉，在歐洲的CE 標誌上，我們對此感覺非常好。

And so that has been drawn forward a little bit. Usually you don't hear us do that, and that's the biggie because this is our largest American product. I think sales are approximately $33 million this year annualized for Artegraft, and we talked on the last call that maybe there's an $8 million market over Europe. And then maybe we were just sort of this is very high-level stuff, but there's not another $8 million market over an eight pack or something like that. So this is the big one that we want to get approved and things are going well in the approval process in Europe.

所以這個時間被提早了一點。通常你不會聽到我們這樣做，但這才是最重要的，因為這是我們最大的美國產品。我認為 Artegraft 今年的年銷售額約為 3,300 萬美元，我們在上次電話會議上談到歐洲可能有 800 萬美元的市場。也許我們只是認為這是非常高水準的東西，但不存在另一個 800 萬美元的市場超過八塊裝或類似的東西。所以這是我們希望獲得批准的重大項目，歐洲的批准過程進展順利。

Right, if I could just sneak one last one in for Dave, in terms of M&A, obviously this (inaudible) Yes, so what are the hang-ups? I mean, is it? Is it just a lot of valuation? Are you the assets that really strategically make sense? What do you comment, I guess coming up in terms of this sort of gap (inaudible)

是的，如果我可以為戴夫偷偷地做最後一件事，就併購而言，顯然是這樣的（聽不清楚）是的，那麼有什麼困難呢？我的意思是，是嗎？僅僅是估值很高嗎？您的資產真的具有策略意義嗎？你有何評論，我想是針對這種差距（聽不清楚）

Thanks, Mike. Yeah, I mean, some of it's the target pool where we stick very close to our call point, which is open vascular surgery. There are 25 targets with more than $5 million or $10 million of revenue. And so we obviously know who they all are. We have ongoing dialogues, those targets, product lines are owned by about 18 companies and some of those companies have never done a divestiture.

謝謝，麥克。是的，我的意思是，其中一些是目標池，我們非常接近我們的呼叫點，即開放式血管手術。收入超過 500 萬美元或 1000 萬美元的目標有 25 個。所以我們顯然知道他們是誰。我們正在進行對話，這些目標、產品線由大約 18 家公司擁有，其中一些公司從未進行過資產剝離。

So we've been very close to those targets, et cetera. But we've also expanded a little bit. We've looked in an adjacent field cardiac surgery. I think, some cardiac surgery products, our work better, inside make than others because some are crossover used by vascular surgeons and others aren't. But there's a strategic question there about do you want to get in a cardiac surgery and in how much and which products?

所以我們已經非常接近這些目標等等。但我們也擴大了一點。我們查看了鄰近的現場心臟手術。我認為，有些心臟手術產品，我們的工作比其他產品更好，是內部製造的，因為有些是血管外科醫生交叉使用的，而有些則不是。但有一個策略問題是，您是否想要進行心臟手術、需要多少費用以及使用哪些產品？

And then also on the other side, another immediately adjacent market endovascular and (inaudible) lost some of the products. There are dozens of products that are endovascular. Some are more used by our physician specialty, the vascular surgeon and others. But what you run up against there is a much more competitive markets, a lot of bigger players in that space.

然後也在另一邊，另一個緊鄰的血管內市場（聽不清楚）失去了一些產品。有數十種血管內產品。有些更多地被我們的內科醫生、血管外科醫生和其他人使用。但你遇到的是競爭更加激烈的市場，該領域有許多更大的參與者。

And then also intervascular products get used by other specialties like interventional cardiologists and radiologists. So strategically, we're factoring all of those things. And the good news is I think, as I mentioned on previous calls, we've been active with letters of intent over the last couple of few years. Yes, sometimes it's valuation sometimes there's a divestiture from a large company and they want to sell us a bundle of products.

然後血管間產品也被介入心臟科醫生和放射科醫生等其他專業人士使用。因此，從戰略上講，我們正在考慮所有這些因素。好消息是，正如我在之前的電話會議中提到的，我認為過去幾年我們一直在積極簽署意向書。是的，有時是估值，有時是一家大公司的資產剝離，他們想向我們出售一堆產品。

And we want some, but we don't want others. So we might bid just from what we want, but they don't want to sell the garage without the house, et cetera. So I think that some of what we're up against. But I would say we're not discouraged at all. I mean to state it positively, we're waiting for our pitch, and I've done this long enough that I know doing an acquisition that isn't strategically on.

我們想要一些，但我們不要其他的。所以我們可能只是根據我們想要的東西出價，但他們不想在沒有房子的情況下出售車庫，等等。所以我認為我們面臨一些挑戰。但我想說，我們一點也不氣餒。我的意思是積極地表示，我們正在等待我們的推介，而且我已經這樣做了足夠長的時間，我知道進行的收購並不具有戰略意義。

It's very painful. It takes a long time to unwind that and you're much better off just waiting for the right strategic target and at the right price. And so in the meanwhile, we're just building our cash. And I'd say I would just add one more idea on it's been a nice opportunity for the company, if you will, really get the house in order with respect to regulatory and quality and sales force optimization and all that. So you see the company performing well, while we're building the bank account. At some point, you'll get news from me, but that I hope answers your question.

這是非常痛苦的。解決這個問題需要很長時間，而等待正確的策略目標和合適的價格會更好。因此，同時，我們只是在累積現金。我想說的是，我想再補充一個想法，如果你願意的話，這對公司來說是一個很好的機會，在監管、品質和銷售團隊優化等方面真正讓房子井然有序。因此，當我們建立銀行帳戶時，您會看到公司表現良好。在某些時候，你會從我這裡得到消息，但我希望能回答你的問題。

Thank you so much. Thanks guys.

太感謝了。謝謝你們。

Franke Takkinen, Lake Street Capital Markets.

Franke Takkinen，湖街資本市場。

Great. Thanks for taking the questions and congrats on all progress. Maybe I'll start with kind of following up with what you were alluding to at the end of that last question, Dave, maybe as the sales force and kind of double down in a way expand and hiring goals for the year, a function of the bright acquisition not showing up in turn, saying we have the right product portfolio right now, let's maybe double down a little bit more on the sales force and get prepared in that way instead of kind of go in the wrong going down the wrong avenue with the wrong acquisition?

偉大的。感謝您提出問題並祝賀所有進展。也許我會先跟進你在最後一個問題末尾提到的內容，戴夫，也許隨著銷售隊伍和今年的招聘目標的擴大和招聘目標的增加，明智的收購並沒有依次出現，說明我們現在擁有正確的產品組合，也許讓我們在銷售隊伍上加倍投入，並以這種方式做好準備，而不是走上錯誤的道路。

Yeah. I mean, for sure. I mean, look, we -- you can grow two ways in this slide, you can go grow organically or inorganically. And what I focus on a lot for the company is the inorganic growth and sometimes that is only so much within your control. The on the organic side, there are buttons, you can push and clearly for us on adding sales reps is a critical growth driver, expanding the channel, not just filling in reps in the United States and other markets where we're already direct, but investing in new countries like Korea and Thailand and as George mentioned on this call, there could be others in Europe maybe next year.

是的。我的意思是，當然。我的意思是，看，我們——在這張幻燈片中，你可以透過兩種方式成長，你可以有機地或無機地成長。我對公司最關注的是無機成長，有時這在你的控制範圍內。在有機方面，有一些按鈕，你可以按下，顯然對我們來說，增加銷售代表是一個關鍵的成長動力，擴大管道，而不僅僅是填補美國和其他我們已經直接的市場的代表，但投資韓國和泰國等新國家，正如喬治在這次電話會議上提到的那樣，明年歐洲可能還會有其他國家。

And so that's really important getting the regulatory approvals in new markets that's really important getting and supporting price increases. That's really important. So there are a bunch of things we can do to accelerate organic growth.

因此，在新市場獲得監管部門的批准非常重要，獲得並支持價格上漲也非常重要。這真的很重要。因此，我們可以採取許多措施來加速有機成長。

And I would say at a high level, it feels like that's been working. So well me and my team will we've been off hunting for the next deal. I would say the organic growth team and the organic operations team here is doing a really excellent job, pushing the business forward, and we're getting stronger in all departments. So today, when we do an acquisition. I think our ability to integrate is just that much more strengthened. So I guess that's how I'd answer that question.

我想說，從高水準來看，感覺這一直在發揮作用。那麼，我和我的團隊將開始尋找下一筆交易。我想說，這裡的有機成長團隊和有機營運團隊做得非常出色，推動了業務向前發展，我們的所有部門都在變得更強大。所以今天，當我們進行收購時。我認為我們的整合能力更加增強。所以我想這就是我回答這個問題的方式。

Okay. That makes sense. And maybe a little bit bigger picture question on sales force productivity, I think you alluded to it on this call, the US reps over $2 million. I think in previous calls, you've kind of said EMEA reps in the just over $1 million range and then APAC reps a little below $1 million, I think around $700,000. Where can those international reps really mature from a utilization standpoint.

好的。這是有道理的。也許還有一個關於銷售人員生產力的更大問題，我想你在這次電話會議上提到過，美國代表超過 200 萬美元。我想在之前的電話會議中，您曾說過歐洲、中東和非洲地區代表的價格略高於 100 萬美元，然後亞太地區代表的價格略低於 100 萬美元，我認為約為 70 萬美元。從利用的角度來看，這些國際代表在哪裡才能真正成熟。

Great, that's a good question. And Frank, thanks for remembering that figures from the last phone call. So we actually have answers to that already, which is in Germany and the UK, you have reps pushing EUR1.1 million, EUR1.4 million or pounds in those respective markets.

太好了，這是個好問題。弗蘭克，感謝您還記得上次電話中的數據。所以我們實際上已經有了答案，在德國和英國，你的銷售代表在這些各自的市場上推銷 110 萬歐元、140 萬歐元或英鎊。

So there's no reason they can't get larger size and can control more revenues than what they are right now. So it does happen overseas. And I think I have one example over in, I think the Nagoya rep is something like $800,000 in revenue. So it does happen over there. It's taking longer and of course, pricing is lower in all those places. So, it takes more units to get there.

因此，他們沒有理由不能擴大規模，控制比現在更多的收入。所以國外確實有這樣的情況。我想我有一個例子，我認為名古屋代表的收入約為 80 萬美元。所以那裡確實發生了。需要更長的時間，當然，所有這些地方的價格都較低。因此，需要更多的單位才能到達那裡。

Okay. That's helpful. And then lastly, maybe just housekeeping item. I heard 144 reps plus 7, most of the US. Can you give us that breakout US EMEA and APAC?

好的。這很有幫助。最後，也許只是家事。我聽到 144 次代表加上 7 次，大部分是美國的。您能為我們介紹一下美國、歐洲、中東和非洲和亞太地區的突破情況嗎？

Sure. So right now, we have 67 North American reps, 52 European reps and 25 Asia-Pac reps. And that should get you to 144.

當然。目前，我們有 67 名北美代表、52 名歐洲代表和 25 名亞太地區代表。這應該會讓你達到 144。

Perfect. Thanks for taking the questions.

完美的。感謝您提出問題。

Thanks, Frank.

謝謝，弗蘭克。

(Operator Instructions) Bret Fishbin, KeyBanc Capital Markets.

（操作員指令）Bret Fishbin，KeyBanc 資本市場。

Hi, this is actually Liv on for Brett. Thanks so much for taking the question. And if I could just start a little bit more broadly. Could you share what you've been seeing in regards to procedural trends in the US and Europe. We saw some mixed commentary so far and when love to get your take.

嗨，這實際上是麗芙為布雷特配音。非常感謝您提出問題。如果我能從更廣的角度開始就好了。您能否分享一下您對美國和歐洲程序趨勢的觀察？到目前為止，我們看到了一些褒貶不一的評論，希望了解您的看法。

Sure and interestingly enough, it's your data that we'd go to for a lot of this with those credit card swipes until beyond what we see for our sales units and dollar growth. We then go back to the KeyBanc Capital Markets data and we tried to figure out what's going on.

當然，有趣的是，我們會透過信用卡刷卡來獲取大量數據，直到超出我們看到的銷售量和美元成長。然後我們回到 KeyBanc 資本市場數據，試圖弄清楚到底發生了什麼事。

I think you'd corroborate this, which is it's been a very healthy six months of staffing inside the hospitals, which we get from the Bureau of Labor Statistics and then also credit card swipes, general credit card swipes in the hospitals are up and it's indicating fall hospitals. So ironically, you're asking that question to me, but I'd flash it right back at you.

我想你會證實這一點，這是我們從勞工統計局獲得的，醫院內六個月的人員配置非常健康，然後還有信用卡刷卡，醫院的一般信用卡刷卡次數都在增加，而且指示秋季醫院。諷刺的是，你問我這個問題，但我會立刻向你閃現。

(inaudible) Could you also update us on where you're at with the new ERP implementation and what that timeline looks like?

（聽不清楚）您能否向我們介紹新 ERP 實施的進度以及時間表？

We implemented in the US on February 1 and then spent the next two months putting out fires and keeping the business functioning. And we've sort of started to settle down on that topic, and we started looking towards Europe.

我們於 2 月 1 日在美國實施，然後花了接下來的兩個月來撲滅火災並保持業務正常運作。我們已經開始確定這個主題，並開始將目光投向歐洲。

And so we recently signed an agreement to start our implementation in the UK as our first European geography, and we'll create a template of sort of what Europe needs from an ERP perspective and then we'll roll that out to the other geographies in Europe. Maybe Germany next and then Italy and France, et cetera. So it's ongoing.

因此，我們最近簽署了一項協議，開始在英國實施我們的第一個歐洲地區，我們將從 ERP 角度創建歐洲所需的模板，然後將其推廣到歐洲的其他地區。也許接下來是德國，然後是義大利和法國，等等。所以它正在持續進行。

Okay. Great. That's super helpful. Thanks for taking the questions.

好的。偉大的。這非常有幫助。感謝您提出問題。

Thank you.

謝謝。

Ladies and gentlemen, that concludes today's conference. I would like to thank you for your participation. You may now disconnect. Thank you and have a great day.

女士們、先生們，今天的會議到此結束。我要感謝您的參與。您現在可以斷開連線。謝謝您，祝您有美好的一天。