Cardiovascular Systems (CSII) 5 May 202020 Q3 Earnings call transcript

Ladies and gentlemen, thank you for standing by, and welcome to the Cardiovascular Systems, Inc. Fiscal Year 2020 Third Quarter Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speakers’ presentation, there will be a question-and-answer session. [Operator Instructions]

would today, turn Investor Jack Corporate I to conference Relations time, Communication. speaker your Nielsen, this like the to over and At Vice President, ahead, go Please sir.

XXXX afternoon are Financial today Ward, Officer; Points, Egeland, Robb, CSI Chief Ryan to Ian. Chief With and Scott and Chief President and Officer; you, conference call. Dr. Good our Thank Medical Chief fiscal Executive third Chairman, Operating quarter me Jeff welcome Officer. Rhonda Officer;

announcing ago, our minutes Approximately we quarter press release XXXX issued results. fiscal XX a third

find a Relations may website. copy You on of our section this Investor corporate release of our

Here March an outlook. additional In may XXXX. remarks, prepared XX, quarter, will entertain presentation and details moments, few that third CSI management After questions. our you includes also will find a discuss we performance on on your ended our our earnings which

During and statements we other future of Act forward-looking our on regarding stated recent facts. include forward-looking uncertainties, are harbor historical statements those statements. Private materially including from statements risks covered forward-looking implied of described Securities today’s These provisions will results or safe Reform and operating Litigation and the to by the could Form call, that make our XXXX those financial under XX-Q. in differ not Actual statements XX-K and reports results Form due are subsequent or quarterly certain most CSI’s

new created events, has any prospects, a our or or for disclaims information, of uncertainties COVID-XX our update business, operations, and call. the will we developments statements which and revise risks discuss financial to future as otherwise. of particular, condition pandemic on result In duty forward-looking CSI results this

reconciliation they contains non-GAAP useful measures will investors. to to results. a We provide a GAAP Today’s information press refer because we our to believe release table also

will I over Ward. turn Scott the call to now

and this families successfully everyone for that hope you I that healthy Good us you are pandemic. are navigating and Thank you, through your joining today. afternoon and thank Jack. you

the plan. with third by quarter and financial business accordance results In have January our disclosed, previously in February, our COVID-XX. impacted were in we As our negatively performing was

However, began their as beginning increased and equipment stopped cath personal Xth and patients of OBLs to reluctant coronary social our downward procedures, performing trend protective restrictions labs. peripheral elective cases week absenteeism became hospitals appointments March became and the and hospital scarce, to

During to the was March volume high period prior daily customers end period. declined and XX% to of Xth impact which inventories the with the case XXst, quarter the March decreased outbreak, their from also average the to our our amplified versus of at load due our of replenish of March. the The coincided some timing approximately end

million revenue finished As of $XX.X a year. to QX decrease by the $XX compared million, $XX X.X% we to million result, our last quarter U.S. with in impacted a negatively revenue was representing and

X% $XX.X to $XX.X steady in revenue X% decreased million. coronary revenue revenue Japan. peripheral increased million with XX% International increased Worldwide to growth and million to $X.X

impact of Our to gross I on profit have frame the the few QX. for month up and guidance take during of the strong we Due expectations cases volatility, but of pandemic current a minutes and the uncertainty XX%. FYXX, for to remained our do the margin our withdrawn remainder to want our April at

slower steadily a cases April at continued the pace. month while during have our COVID-XX, of much Despite

of the Although the increase in year, our XX% daily treatment a April our caseload in to critical modest month, last mainly ischemia. seen limb have throughout declined we compared cases

with peripheral claudication. between split ischemia of stated, is over and those with equally our patients have we critical As limb revenue, XX% approximately

imminent be intervention death. amputation, due typically typically would postponed have lesions with sometimes below gangrene to patients risk severe most The the CLI could long include wet calcified knee. of sepsis wounds not of Our those and and

less have exertion. disease, from rate cases pain performed, be lesions a more at Claudicans but experienced to these our continue on these reduced expect typically knee patients above slightly which proximal and limited to arterial the be extensive normal may will We pace.

that Generally, procedures be a these are elective postponed can few months.

recover As has the much QX. during not a significantly treatment declined result, and may of claudicans

However, refractory our a expect for some will timeframe. develop this patients patients acute we have about all care risk unstable are these and XX% cases syndrome. six will and at return to gradually occur four coronary to of and contribute Coronary that do these nearly month high over revenue of of or angina

resource has but clinical has circumstances, declined It normal have COVID-XX not Under down that during cardiac activations cases widely STEMI approximately and should and catheterization significantly allocation altered XX%. are been decision these postponed, pandemic. been be making the reported

As have result, April. depressed coronary of month the throughout cases remained a declined have and

next disease we appropriate to assume expect six that do artery to Although we it in resume a the rapid coronary of QX. think coronary segment not with ill fairly Rather, over coronary in is recover the quickly, severely expect will broader months. patients we gradually the business recovery treatment our

and availability capacity that caseload in easing sustained to access hospitals rep cath There elective of cases. sales our and restrictions PPE, and reduced cases, improving of and revenue the anxiety, factors many patient including lab increase increased are semi-elective social may to on government support QX and workforce

not volumes will OBLs We Rather, procedure we quarter consistently without average expect the our fourth correlate that quarter. larger our end stocking at that replenishment occur often preserve throughout sales their more immediately with daily each continue cash replenish hospitals orders fiscal their that and of and to or expect will will they inventories.

this have focused for We crisis in goals. are preparing three very and we on overarching been proactive

to outbreak; very proud as we security protect our our patients continuity. First, to the employees, and of employees and to to am support cases continued product C-XX I serve ensure ability outbreak. our of manufacture assure our financial and finally business continued to CSI the health throughout have and customers our second, support during

We our with and this save have faithfully partnered lives and despite fulfilled terrible to limbs save physicians mission pandemic.

committed the our We to employees. protecting are and of safety health

employees office-based and are our stay-at-home telecommuting. We orders are complying with

manufacturing protect employees. and facilities and additional We have deployed screening safeguarded our protocols other and testing to our

support local the by continue who in work provided healthcare to abide serve. equipment facilities settings employees cases they to stipulated and access protective are personal requirements clinical by field and they Our the

reduced We have we my that capacity And plans. business salary and taken our voluntarily time. remains variable intact. to implemented the during spending. reduced strength business other I assure of continuity this have actions have uncertain We

required We that the have anticipated secured assure our running or been support our chain rebound have supply we full at and and and the ship as operations procedures product continued manufacturing expected period. the capacity have to to near recovery inventory during to we have

strength to we information commercial pipeline regarding in provide sustained quarter our retained a additional We have regarding Jeff? will provide capacity financial you and are and R&D our results to and I have with our our But first, business details to of and plans. achieve additional and In required a we will third the ask all R&D moment, to recovery. continuity Jeff progress. employees rapid invest assure continuing that Rhonda

Thank everyone. you, Scott good and afternoon

today, you the we Given financial during thinking financial address assure my unprecedented sure taken nature plans of continuity results. our third make and to understand review to the about QX I business events, Outline our plan have to of the stability of our business. quarter remarks current normal steps how that ongoing my provide we are

the total, revenue third revenue last X% year. atherectomy $XX.X as to X% we Scott devices million over during representing Worldwide X% to at decrease compared quarter, $XX.X XX,XXX to a represented of million. decreased sold decrease compared quarter mentioned, year. looking a QX, In So last peripheral

revenues to support from decreased $XX.X Worldwide follows. X% X% atherectomy by coronary declined million. revenue devices. in Total revenue generated decreased coronary increased revenue year, coronary as lower to markets was increase U.S. last partially U.S. peripheral offset an revenue volumes Domestically, primarily unit the $XX.X volumes, X% The unit and by Domestic from international X%. in driven million.

year increased lower revenue margin profit SG&A flat QX. and of declined compared million XX%. QX. million. gross compared a million, $X.X and $X ago $X.X at to XX% to International we’re $XX.X million $X.X to year was period strong increased million remained than Operating with QX, expenses In last

spending to decline reduce as quarter. in year. take was versus actions increased SG&A QX late to and as compensation spending to sales R&D we primarily last The versus $XXX,XXX due well began other incentive approximately in expenses lower the

$X.X Adjusted loss positive Second quarter net a was was EBITDA $X.X million. million.

ended $XXX and debt. no in sheet, long-term million marketable and cash the the over we quarter with On securities balance

outstanding we Finally, did revolving at agreement an we years loan by date million million and of during not credit maturity March to with are the end extends under terms. amendment three this very announced from amounts on increases tap no and available revolver amended the of two favorable borrowing XXXX the The is this Silicon years agreement, facility March, maximum Valley resource. to this Bank. $XX first the the There at $XX

I allocation priorities should note capital are unchanged. our that

to assure business customers to will able invest support patients. we We our our and to in continue that are

strength our retain to our assure rapid of business sustained the investing to are recovery. a We and employees and

our results. financial on And remarks provide I for my QX concludes now to commentary what some on QX. expect That will

rest please monitoring not that while assurances. we the of As providing the with expectations false our we COVID-XX various for confidence country, predict that the for are the severity and balance trying are scenarios supporting to models right duration note we of between discuss find Along the QX, outbreak. the many

environment least will outlook. is at near-term regarding This changing our our that is every dynamic but a know very perspective day you

the that disruption using we our as As issued a a result March, we of procedures products in outbreak. COVID-XX reminder, noting a an X-K were in experiencing

And X, X-K our we on financial April issued for withdrawing XXXX. guidance an fiscal

our month, U.S. described, to has increase seen XX% in do while past last declined we compared we daily QX. a Scott expect in to in As caseload over this throughout cases the have trend our And continue April the modest year.

cash we continue In OBLs run preserve inventories. will with and expect that and addition, lean hospitals to

from QX higher quarter we in revenues, of not particularly typically results drive that large will a anticipate As June. benefit consequence, end orders which our

of has have far. only most of on in in Japan is impact impact our procedure thus the volumes. the volumes and other in international seen outbreak we modest international, a markets, to procedure a where In Turning specifically coronary decrease revenue dramatic had

margins international volumes we significant reduction range. negative portion a approximately impact million. result, fewer that of The related a As goods $X anticipated in XX% will QX production in a call our gross to mid gross cost burden, QX revenue will is have so for be is our margin. the in of sold believe on manufactured now to expected result We devices in

procedure plans expenditures lower continuity experience capital to business. March, reduced we business began implemented across and and the in volumes operating we expenses As

compensation the We contractors. eliminated example, freeze variable implemented of We reduced and non-critical lower we hiring consultants For organization. a as volumes. a result across anticipated

of level in decline suspended. implemented has spend This discretionary expenses restrictions to to QX QX and been XX% between ECLIPSE across from year professional XX% and clinical more the prior were a of Overall, been our expect we this approximately in sales of million. expenses or the have Travel cut operating training entertainment organization. other fiscal represents education and canceled and events Conferences, trial amount and Enrollments $XX operating are significant a range year. QX million $XX than from of deferred.

with core future, be prepared to CSI to through our continue drive we internationally. management invest our combined generate operating Throughout balance Ongoing efforts through a business, normal. innovate to pipeline, the succeed commercialization expand product procedures plan recovery into our medical education our and of sheet, and evidence, this non-urgent increase to commitment to and period return and expenses growth medical manage in time the elective and positions difficult strong as

Rhonda? discuss Rhonda commercial now will our developments.

CSI few pipeline, key offering the the of I in era and a and code focus pandemic, today is responded our process. areas and post-COVID-XX afternoon, to conclude thoughts think CPT attractive will with on has Thank will product the our status our we everyone. good product Jeff, my you, how COVID the I on on including why update comments

serve environment. protecting COVID-XX of to to you from two throughout our We making early adjust at heard to key the are ability goals as and our and As adjustments began CSI elevated the our our our business we patients Scott, response employees QX in the quarter.

to in Minnesota our remain markets. we elevated March, travel. quickly As In And field, our facilities employees restricted cases safely the our these impact pulled and safe. Europe, support recommendations and the out our and We In which PPE, early restricting In hospitals ensure Texas, Asia we employees. that sales ensure of non-manufacturing can in we stay-at-home employees representatives access, allowed. to arrangements telecommuting field our of our to doing access to with sales what representatives prepared virtually are virtual to pivoted facilities restricted sourced to our successfully at began in through they support followed for were customers. we virus were all cases domestic they interaction

access to value have delivery educational CSI high customers embraced medical new models Our program. education

management this, the based CSI’s launched an learning and new distance and users; four case system, provide fill continue users in high with includes and glimpse new to advanced quarter, will support a touch, like to we education post-COVID-XX education a for educational train hope, are us virtual conducted needed and During how extensive and environment. we clinical accounts. modules; Examples may of enabled support extensive sessions team provide which proctoring new wherever

needed; down not disease slowed are incidence coronary the artery has we the And pandemic. peripheral of during and

COVID steady advantage, ease of prioritizing patients begin with the use products outbreak recovery. atherectomy, as critical And our fact, need we demonstrates the in of treatment competitive In the importance especially provides ischemia. CSI of of limb of during during product – service the believe steady our sites offering in orbital especially treatment the

pulsatile action modalities, ease of believe matched valued performance treat complex patients waiting with more mode dual treatment. use efficiency patients clinical began a differentiated and forces and and nodular, will provides distinct atherectomy including to concentric. eccentric, sanding to for that We combines as calcium differential even return all be our Orbital and of in

in low treatment profile that has believe will time femoral procedure procedure access increasingly seek decrease COVID-XX prevent attractive from to peripheral to considerably. In be believe is of following while physicians treat for traditional products and the that complications patient a time related variety devices that increased community, the needing bleeding of peripheral, to return While reducing access. importance and the as allow lesions points we offering we

of use We this further to a discharge. through bleeding result, the that the proposition sites and consistent adopted be post-COVID of ambulation reduce value will that patients differentiator to in and time access alternate CSI other accelerate expect a access radial of era. we will As believe an from flow complications intake important be enhance

we Horizons share or expect data New which new be will the radial held the will July; REACH Cardiovascular peripheral conference, from At we NCVH in study.

prospectively orbital the begin radial PAD. known of study you of will study such complication fiscal to evaluate of acute the rates, high plan in time and moments. of The access shortened discuss If of clinical support will readout study outcomes low treatment will to introducing dovetail as which we this many believe this XXXX, in ambulation. recall, will for nicely cost atherectomy benefits as effectiveness radial a this using We access radial few I products demonstrate

platform during care, patients and will perform new revascularization of a OBLs. adopted exchangeable be single that Products to like limit episode our allows frequency to also physicians full the hospitals that must visit

a to a with multiple reminder, offers profile vasculature device the As our points. platform designed access GlideAssist exchangeable through low access

can complete will interventions. system who designed motivated session as be the in to to treatment serve an and leg. to their the the up multiple provide have be full that this above in of multivessel received single so the XX% by of physicians a scheduling and in crowns patients, opposed revascularization to procedure. throughout platform This three leg is patients think very efficient peripheral will We disease up single that The lesions well a enables to physician treat that knee use below

data We the peripheral benefit our our think XXX from offering to entire from coming study. continue will LIBERTY ongoing

no patients. As even we from most In complex atherectomy using to this major to after OAS, are patients disseminate in continue all-comers two-year with years we six three high demonstrate additional at the study, reported visit. XX.X% freedom with amputation provides the the how at from information able orbital Rutherford, amputations

from Journal to top one-year it XXX economic the LIBERTY over five XX We very past learn we Therapy. study from have downloads data is that patient in data and no were to of developing the years the peers Endovascular when comes the outcome and long-term pleased our

LIBERTY submitted data awaiting Importantly, recently we two-year publication of have the economic manuscript. are and our

coronary. the Turning

product’s with Third patients. challenging our to feedback angioplasty patients in their quarter strong was the particularly Teleport more has to nitinol access tools after a the U.S. in and new we of effectiveness, in first the Coronary full most anatomies. treatment ViperWire. enables been GlideAssist, with the compelling quarter launch coronary and offer Diamondback how Combined and the with treat to from microcatheters, set with it Japan, Similar patients of physicians complex balloons tortuous response Sapphire physicians exceptionally

per a to the to post-COVID-XX revenue drive As increased our gain result, strategy procedure in we era. expect traction will

sold procedure such we million products and QX, coronary of million products, support as including $X.X over Sapphire In $X of balloons angioplasty microcatheters. nearly the Teleport

Now not products are procedures. our of these used in all exclusively coronary atherectomy

seventh complex And coronary OAS device further increase This QX. of coronary our we significant marks quarter procedures. OAS However, increased penetration coronary the opportunity consecutive $XXX performing sold believe every $X,XXX yield could for to we procedure. revenue recall, between per support products procedure. $XXX support during of in per to accounts products And over have we sold coronary

had over continue a strong we quarter growth, a two international, greater COVID, another case case where volumes year of just particularly despite to in grow than Japan, with ago. In increase times volumes

As and be open access impacted Jeff the volumes case pandemic, to markets in ability Europe Asia by our will noted, and tempered the near-term. accounts were and in more

for Our quarter. achieved approvals a CE throughout under number and review regulatory remains of coronary we the Mark active

will launch. a markets as resumption detailed had update the have for case next that in learn more We quarter about we targeted we

balloons pipeline. Turning over toolkit in respect a we broad now at had line radial FY XXXX. a our our With tool targeted product evidence pipeline, introducing to the to and wire of peripheral

of have products of for R&D half introducing incurred dates delays the in due these launch anticipated the second anticipate pushed products. However, timing out these part XXXX. now fiscal to the COVID We in

used component about Protection track launch. System with is remains Systems a one-third Embolic XXX last are works of about and Embolic procedure WIRION in WIRION fiscal for The launch this of peripheral device a knee XXXX. agnostic driving atherectomy higher any typically will wire QX revenue in summer which important and we on the fell $X,XXX Protection acquired above device. Guidewire. for be an product procedures of time per the

of meeting Finally, device. support the regularly we with mechanical are on the development circulatory FDA our

in to in target experience first continue human We fiscal XXXX.

in requirements the data IDE we collaborate to updates requirements. determine However, lengthened follow-up impact last of risk pivotal at trial additional but and study. AHA high the may PCI timing, fall as the provide If this with clinical number increase patients support we our will presented in could commercial space, so FDA

in could our the other timing these milestones Naturally, development We’ve and additional launch cause represent changes at recognized this factors COVID-XX estimate of time. product and best timing.

On the recognized due in hospitals that suspending We’ve non-essential trial the COVID-XX. functions. clinical we procedures most suspended were side, ECLIPSE March to in enrollment elective and

PIs, So careful our We to date set enrollment. to restart enrollments. consultations with after have we don’t decided pause start a –

procedures on We semi-urgent country for our push planning. of principal engage the renewal watching will and make we’ll ECLIPSE, later activities timing question treat quarter and calcified certainly will across in severely be sure out the on research readouts patients patient remain of we the enrolled the can in This important with how with the answer we lesions. to date coronary study, best and but X,XXX this to will the investigators of

regarding not July may be is quick is possibility October endovascular for for on just agenda an the and set. is update that meeting. This agenda a procedure code the The the AMA meeting Finally, next extremity review meeting available XX. the editorial May to CPT lower that expected item for panel scheduled

implemented. We to could four-year once two- new believe initiated process codes be are before continue a that this to

to questions Scott. any my to I’ll answer a turn it be back prepared in of happy concludes moments. few That your I’ll remarks.

out unfold. future the lie a a with will recovery I how of prepared by for may the confidence that readiness with Well, coupled some thoughts ahead. challenges sharing regarding sense look our to close today remarks Rhonda. We Thanks, the

QX. an We our short-term on have expect business acute to in that impact COVID-XX will continue

with improvement We in July expect steady earnest recovery December. in to June continuing and through the begin

market. confidence procedure expect At are this a will QX pipelines that volumes below return knee will the with In assuming above the below the procedure XXXX that claudication in recover to time, normalize, lab recovery improves, more slow gradual capacity quickest, coronary and restored the by of patients business be normal patient the we we normal near-term, QX that and the a referral pace, normal. and the could our expect FY peripheral CLI cath returns that knee followed to volumes segment

referrals a Coronary had death, rate fully – to large either anticipate recover cases of have not patients. difficult revascularize may case patient steady suffered run or to and for amputation. do reduced have to competition CLI backlog an be due these slow a anxiety, hospital of hospital patients time, cath Many been or We to cases circumstances. they lab coronary to physician patients, CLI to these reluctance of recovery in treated, the may under

that next the postponed may procedures still be to expect We claudicant performed four the of six many months. over

much will easing may the in with areas recovery U.S. over more reps the Northeast The be think cautious the than will routinely most subsides. ease our the hit but Midwest be progressing slowly or restricted labs time, Generally, the will crisis restrictions hospitals be across we access, into these and as the cath asymmetric South. hardest back about sales invited

expect once We to patients patient that over few catheterization the will will restored, months, clinics to from diagnostic intervention. referral move channels next again and be

are a limb they that hospital may migration the most to patient of reflecting become believe the remained have likely We crisis clinics OBLs, way preference will patient lead and a catalyst setting. accelerate the COVID-XX focusing CLI open recovery. salvage in the avoid OBLs to generally to treatment the throughout on

faster patients. OBLs fulfilling in As and come may hospitals and back role for a are play capacity important to result, requirements an claudicant likely than CLI

therapeutic We expect be will options available XXXX. a not other or in vaccine do

some will So for continue future. the disruption foreseeable

assumptions the virus the that in We These not the months. estimates few with our time. best also experienced past at same do over the this we intensity fall are expect will return

patients employees, growth. achieved CSI’s nearly reached the year and mission. XX,XXX fiscal revenue of this double-digit need collective our to confidence two-thirds in resilience In culture first in and closing, Through our dedication the rooted our is our of we

business our remains Although, effect a on fundamentals strong. short-term the have of pandemic negative financial performance, will our the long-term

competitive disease. orbital the profile safety of in large We advantage We markets derive from significant and serve and atherectomy. peripheral and coronary efficacy artery growing

organization and clinical large acumen. with deep sales a have robust We

crisis have balance the the With pandemic the no period. and customers recovers. this double-digit to capital, margins, healthcare persevere system and through prepared during are throughout when this our subsides to and resume recovery stayed well strong trajectory our we access we gross We growth to debt, rebound sheet, expected close and long-term support COVID-XX a will solid

attention you your afternoon. for this Thank

now be take will happy We to have. you questions any may

So, would Ian, the you instructions you. Q&A, if Thank would the that please repeat great. be for

[Operator Instructions] Your Danielle first SVB from comes of Antalffy question Leerink.

is line Your open.

question, much on much Thanks and for so recovery, the taking the for guys thank you the so Scott color provided that you Rhonda. and

about much normally As I talk was help about a you orders. not quarter orders? guys however, one large have these first end then bit? percentage or that having quarter can question these of revenue quantify my And I end the of little normally of what we think QX, How bulk of is benefit that of QX is, guess you follow-up.

Sure, Danielle.

revenues I quarter. that is organic throughout likely we the to most at are think see the I that way QX would look

that continue performed. device through sales volume just cases going words, in our we with reduction pretty that’s quarter. month far are XX% about quite probably So to as through over will a Jeff correlate much April, expect that the and we’ve seen of the so And other well the in case said,

reasonable of can the for estimate time, will described, may us as that do. improve Now, to right what number that’s but indicated, accelerate a you could factors over are, expect a And as how factors are now I – that I think we I growth. there environmental that our those

next is my on And Okay, then backlog. question that’s helpful. the

backlog that up, trying fall up work to across in the make much. that to First could lines? the of that April the made significant of you’re second then where nadir, piece patients that part made a so interpret is question, you sorry, improvement priority while here. and of of down – bottom, right for bunch is And this, does that’s reduction, a the of service cath the patient where seeing procedures Thanks expect does it a lab procedure up, that be against I’m could claudication be from backlog the

Yes, thanks, Danielle.

as from think to the I the I anxiety at impact clinic. majority comes claudication principally of actually patients said our on the it, their present

you’ve has that’s in the to or clinics. claudicans. but demonstrated major medicine, So some on population CAD to as PAD, really the reluctance of hospital come or not patient impact just come the across And to seen, the to treatment kind

treat those network. for of most are is we a who for or difficult claudicant patients to the priority. patients, to sites, that convincing and patients I high sites the the of believe challenge think channel I relatively back the that treatment hospital-based these that really that is with replenish referral into system either centers OBLs interact The come

major six-month is the And restoration a that So occur of probably we that that the – over feel. that’s I impact will like said, to will the four- timeframe.

that’s the take think What to going was we some first time. So question?

Backlog.

on? Backlog

Patients.

can’t Sorry, I think – I even remember.

Danielle, I what was your first question? missed it.

remember, and I interpret it’s Scott. – the worse I’m here? is – to even to right incrementally think April I Is nadir, Yes, guess to what, get improve from I here? right able from it it think – could just it you couldn’t to right it that’s just…. is Do as

end a indicated, early, as have increase I we seen And as it’s we modest indicated, the came to the of in cases think we of April. that’s although fair. we as month

it’s right fair to assume that nadir for So the now that the I would think be quarter.

Thanks so Great. much.

you. Thank

of Your Oppenheimer. of next question line comes from Suraj the Kalia

open. Your is line

Good questions. safe for is and taking healthy. my Thank afternoon, everyone. everyone you Hope

Suraj. Thank,

hopping just multiple in calls. me, forgive on between Scott,

could in field average So the Danielle heard inventory more you level broadly this, guess those speaking, together. six just what Just so? in inventory. of I the of about case needle of you months about? thread think as the kind help or talk coronary us, And you normal tie within help volumes to talk about that you guys I briefly does returning and quarter both mentioned

Yes.

always that don’t wouldn’t I in as talk disclose we We perfect about think we the mainly that think number. marketplace, do because what inventories. we have it’s to our inventories visibility difficult to normally

as very coronary think our think keep impact the business hospitals that of don’t within Most large actually product. our inventory we not about coronary, interact on of I is coronary, we really to our inventory. related

is something in reduction coronary that’s And now in a The ERs. activations. large catheterizations. large and There’s the patients seen market diagnostic reduction to remarkable that we entire STEMI have this across reduction in presenting challenge that seen rather been we’ve a honestly, in is being

as So a of depleted. in result, the coronary patients pipeline is

– months, finally, next back continues as come perplexed to improve. resume patients are right to is and just understand increased in that now coronary don’t procedures, elective to what as We and something marketplace. to more to we’re and by of have more This the watch the hospitals, has over confidence we’ll capacity return happening Honestly, this. what develop is cath couple states willing as lab exactly

May So, we’re is to time updates June monitor that here meet. that in and something the on further next you we’ll give and just going this we

And, it. Got finally final my question. Scott,

own level procedures contrast have reimbursement could understand Help guys atherectomy say, You on you codes standalone do return you CAD the side. the – PAD questions. or on of PAD your let’s and these you guys CAD, others and compare let’s others this broadly? us normal returning see when more how the how also? same what your come If financial power my and devastation, how all positioned do see to pricing within, impact for Thank taking hospitals as you CSI term, longer two say, you for also see you segments, pricing are vis-à-vis, versus devices is the in more power the of is competitors out

that to power need of generally predict have CAD group high that or mean, disease. to – it’s procedures terms is have will and I marketplace, for. patients expect our this at continue these I patients to we continue that patient and see be performed paid may patient difficult pricing in focus and population population be time would the – Yes, a unmet more severe will on the will be CLI we so degree of because that medical of a we in

We the stable a have very that of past anticipate over enjoyed the reimbursement years, continue do will and that course foreseeable we environment future. six the for

that focused important only on can care. we I about COVID-XX hesitant business improve that comment I pandemic. now we quite competitive this think say so advantage I’m through a efficiency products As we think it’s have bit our because competitive the us environment, own to frankly, an can that the of right managing for are

most length and the allow that of for re-hospitalization. reduce be patients their products think that likelihood physicians them to will stay the of I seeking reduce

of will a patient our sites of complications. other reducing as So, by throughput to time ambulation, access these mentioned, through the for to clinics be in used ability product speeding access and accelerate Rhonda lot radial bleeding

expect for more care. likely also are to their of We will them not that bring patients exchangeable physicians our fully be treat fully important revascularize very to multiple back patients as and episodes device

type efficient well lends think So that the reimbursement combined that fact very have those of consistent product more that the to and factors, positions well. stable, fact care our we known quite with really itself us I

I they’ll Our comment can’t varying time. competition same to at really degrees, characteristics this through how but on has those come this

Thank you.

of comes Pasquale the question Chris next line from of Your Guggenheim.

is open. Your line

Scott, the Thanks. between give down, they XX% number of of a segments just can you in April coronary to each peripheral split business, paired? that the and how us sense

the month generally These patients option is exact that postponement. when the the numbers, CLI it of you I our quite throughout patient present are business, look way remained limb give at provide don’t April. but they critical can’t the a would Chris, population ischemia steady for the I Yes.

So that steady. quite remained

dropped and patient population most. the mean, think our population claudicants The fairly subsided dropped I patient quite substantially. I significantly coronary claudicant the

steady, kind and middle So being in three I being ranges somewhat would CLI the give coronary fairly those then lowest. being you the claudicant of with

a set has a Okay. How environment procedure not you in in Yours particular been doctors of to do as of utilization picking And labs? fair I’m in are up from where reps devices they how is the comfortable a because risk that with access your of Have virtually? to case? potential to environment? many that are don’t restricted that perhaps cath able then that your requires finding And maybe support terms some achieve been difficult of with new physicians. that some supporting current curious a amount feel is

great Yes, it’s a question, Chris.

respond reps absolutely quite and our sales First of this to to all, challenge. it’s remarkable rewarding see been

sales rapidly has adopted organization Our training virtual tools.

successfully cases now remotely. have We supporting

that not now reps and to a cath to the where physicians is adopt as throughout this quickly And that contact some people willing interesting me to and willing this in other tools. of faced I’ve to more of it have support conducted time with lab, much our had environment adopt that challenge education over when have perhaps sales an seen And and these been willing have are very this. have education responded with strikes tools. We present not been programs adopt frankly And our procedure. remote that remotely. in contact quite the they’re customers type we’ve in also to It’s challenge. stay close

it. So – getting well we’re pretty doing think we’re I it’s think – with I

two one hospitals. As to Number for going they reps are procedures are sales affect back we varying, allowing various in look comments. forward, might and how coming this elective established continue, we the They places. states reenter as differ procedures are hospitals online seeing to at us

are but that hospitals bring Others to now. we reps PP are need. they seeing other requiring sales requirements, the Some open all have

say, But place Northeast, have stay – never been the virus and severely the put awhile. eased. we In either for been cases population, now the affected were where the other where the restrictions has on in Midwest South, in more let’s in there will the have restrictions places the or expect like do

And think next I the hospitals vast over several rep as going of see to we’re will of the majority the think probably course allowing we ease timeframe, September-October into that again. that once be months. sales get access I So

of that, very crisis. the medical when perform have that our a The crisis continued. is that business throughout to is make I have this done we our and CLI so remarkable mean during have what procedures in found me is last sustained strong for really this that tells we it’s our procedures unmet itself sites would part continued point Many I most our required mainly important they’ve need. treat they’re And technology. believers because what

Our product in patients. for and customers providing really important are using very care product comfortable is these our our

specific question. sorry. I whole that answers So lot I’m your more Chris. a can’t I than that, get hope

helpful. Thanks that’s No, guys.

of the comes Street O’Neil Lake next Your Instructions] Brooks question line of from [Operator Capital.

Your line is open.

Good afternoon, guys.

if in to So – approach I in from physicians of of panic terms aggressive kind mode and response some has a more was any curious offensive terms there from the location in transitions of the what handled, you procedures landscape kind not, of of in beginning anticipate or Thanks business are the as cetera? so, patients lot. do in And et any it procedures fundamental if to May? to been change relates you’re seeing March a in way

Yes, Brooks. thanks

seen have from we physicians. yes, a So response

most transition recovery our I this think point customers are beginning phase. to the at of to

I there other a customers. that amount in a of and surveys close variety June resume is are We think that timeframe. with rising contact the very through staying in May, July now our will And here tools they of expectation procedures and

that a comments, recovery we in community. this my begin June think to expect said July. in the I and of driven level amongst a And rising by medical now right earnest in do as really lot So, I of is confidence

of I to I think of perceive In OBLs And labs. we regarding the for there more to But to that source safer site for a fundamental office-based do any environment. change, being patients COVID-XX think capacity expose do this view increase can patients where only knowing be a our a as know from negative time presenting patient they’re serve may the patients offload service thing. fundamental having but a of that I change, isn’t themselves don’t refer a intervention, And I to and to I period of comfortable that the environment to a feel that could may hospitals. their catalyst it significant for OBL it a that number hospital as care at they’re intervention. think short think would not provide crisis treated as necessarily

would the I increased providing play see a this may fundamental important may really during in this capacity, of treated – but don’t especially recovery we patients and change, number we OBLs be it a So, may think role an period. in OBLs

So you questions? that’s other – do so that, what any

you your thank very thoughtful much No, for answer.

Brooks. great. Thank Okay, you.

next Raymond Jayson the James. Your from line question of comes Bedford of

line is open. Your

Thanks afternoon. do center that talk Can see in Good ads? off Had you guys. slowdown you’ve safe bit and it of assume a folks you And the a new new about center questions. quick sidelines? is seen ads when a to few coming

Xth. March until our up well new Actually quite additions, centers about we’re doing Jayson,

new has nearly So center we track mean, stopped. were with clearly since I on new center enrollment. enrollment then,

as and for demand we’ve center into In train is on restrictions sites would had so it programs I would on can backlog, very We’ve fact, educating has, of new programs run a back we I and then. expect I not haven’t say is been that lifted training we we’ll have get enrollment these do and think that a and sites the resurgence we we education would when sales rep our since large new for a out that there. And enrolling witnessed until there training training be get that have attendance we see new customers. frankly, of into that that that educate And and we large accounts sites. access can virtual simply see sites.

as So this but would it expect we that enrollment center would new at think has again. now resume I time, stopped, to can we get sites access

up new on the we the new side. Peripheral, and quarter, XX if opened coronary actually the actual Jayson, provide wish. accounts for you XX I can accounts

That’s helpful. Okay.

those from Also are far normal numbers. off not too

in the had here. I of terms cadence another Okay. one just

like dropped claudicant thought then response a April, I fair was let’s CLI sounded in but Is in than knee, above your coronary to knee from earlier think the is a what fairly But it CLI perspective, comments it you steady. is I significantly, call the in the trends steady, thought quicker would expect? ramp characterization a ramp of above little I that coronary. most.

you correct. have that That correctly. that Yes, stated is

April? relative So coronary the forward in knee lag why you above going versus what to in the saw

on what a patients for postpone elective are of because is patient we we’re that, exertion. little claudicants mainly can dropped Yes, period the that Physicians time. pain the in more saying of patient was is CLI procedure, a because what April a I interaction experiencing treatment population longer the remained steady, fairly saw think basically that with off

will identified, they’re So as back. some come are to of start, that known, waiting patients expect of result when those many of procedures come back a we in. And those they’re patients

patients reduction to coming across able be caths labs four are will we lot backlog. but country. the hospital being of six that the to medical, activations case in in cath have reduction that coronary diagnostic In the well the of is it’s rather stunning circumstance, they observed full address period a this a over that with think the a these Now, there, of the capacity months, in when MI, and not STEMI these patients out this an to

have a as referral the referral or to seems been patients So depleted. of the really pathway result, these

is And we to to four build result, And take going they’ll to that as expect months. up. a back about – it’s six that time take

that over underlying unstable – is is is in treated an population longer. source underlying I kind angina our you baseline pipeline when when that there. about take Jayson, to restoring might quickly. But STEMI think That there of confusion an think be there’s trying restore coronary segment market with that that we think about referral time, patient be is the or and of here, a presents always pipeline will the that going that to be what So of must

coronary. you Makes a recovery, to why CLI sense. go going in the think the think it’s reduction claudicant about went that’s about So when it CLI coronary, we when April, claudicant

– guessing Okay. meaning may service there opening I’m as a bit than well, site be of dynamic going does. up earlier OBLs Yes, it hospitals. on there’s a

hospitals will the Yes. and hospitals over that the be well. on There competition favor factors probably be will could there’ll and time and lab OBLs early be cath there as also other for

right. you. Thank All Okay.

Jayson. Thanks.

of from William Your line final comes of the Kaczor Blair. Margaret question

Your line is open.

Kind And Hi, to you diagnosis last diagnostic by for treatment any following for This length some is guess the thanks from pathway there. the of specifically treatment. Brandon Do procedures? Margaret. the mean for have I taking is kind or on I delayed up of, of peripheral these idea what the the pathway question. that on Vazquez of of discussion

going pocket in centers pipeline the we trying that built. given right with lack to now see few we next of maybe air forward patient building might are being like the kind we of closed Just months, an understand where

So any would color be around helpful. that

other month. patients And I going present we’re probably Many is that they see ER and to claudicant CLI places. system. may in the talking at the of and are you’re about for expect rapidly forward In through they move Brandon, inpatients, those Yes, the care. to case times think a moved what rapidly

other think from think onto is two an patient I seen, as tasks diagnostics, move their as of you can monitoring, to and for first time the intervention months clinics, then this three through about claudication. they

So timeframe for to probably, are two month three that there population.

that’s from Thanks. then helpful. Okay, And just me. one other one

will in you take to as be the cases? spread be guys you. your look and Does are a it on able – the that be obviously this So if time? you, we forward of them out well. take field, capacity? cases take two to to would uniquely in capacity at kind push they Thank of three market outpatient kind we that months kind sense with is details – have have of to positioned OBL around As the guess Any of I of OBL does long helpful over period meaningfully field more setting. the

capacity to do adequate OBL contribute the that believe there segment recovery. the We in to is

So that is OBL capacity in segment. yes, adequate I the think there

Thanks.

Thank you. Okay.

time. at There are Ward to over phone I the turn call this Scott for no the comments. final over lines back further questions

Well, you since thank for you. and today’s forward there are to no again next good, safe. we’ll We look you quarter. stay please questions, Thank and All Ian, further updating call. right. conclude you. Very everybody us joining Thank

today’s call. This conference concludes

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