Haemonetics (HAE) 9 May 242024 Q4 Earnings call transcript

Good day, and thank you for standing by. Welcome to the Q4 2024 Haemonetics Corporate Earnings Conference Call. [Operator Instructions] Please be advised that today's conference is being recorded.

I would now like to hand the conference over to your first speaker today, Olga Guyette, Director of Investor Relations and Treasury. Olga, please go ahead.

morning. Good joining Call Fourth and for Year and for Conference XXXX Webcast. us you Quarter Haemonetics Fiscal Thank I'm joined and by our for business CFO, updates fiscal Chris provide fiscal Simon, our discuss who'll performance results CEO, year revenue year XXXX and and updates XXXX. guidance; further James financial our and D'Arecca, about who'll expectations provide

service commercial year revenue implementing starting we're units. we I XXXX. changes is line Before These changes in begin, our would reporting with like quality revenue involve structure, underscores and customer crucial within the adjustment our play This integrating acknowledges organization. driving our business It to and services in fiscal within our updated address service offerings. service management role our that improving growth commitment with to our

of quarter change, we the presented year new revenue in year XXXX result year-over-year comparisons. today presented results a revenue and to old fourth All format fiscal this for in guidance is the the fiscal reporting our facilitate discuss appropriate will are As XXXX format.

section detailed to For refer new our reporting available the revenue the and this the and earnings old please also on IR between referenced website. release supplemental format, morning's analysis the reconciliation in of a

today everyone revenue that like exclude I'd remind to unless growth are rates specified impact foreign all exchange acquisitions. discussed of organic, the and otherwise, fluctuations and

in closing being incorporates of revenue weeks date year XXXX. from XX Our to revenue XXXX for due the guidance organic acquisition fiscal growth OpSens. December

to performance. investors measures and These income Throughout charges our reference financial Haemonetics' understand exclude call, we'll business ongoing non-GAAP help other certain measures items.

to fourth earnings in comparison items, reconciliations periods, quarter excluded fiscal our with please release. complete results year XXXX list GAAP a of For year the prior our refer to

statements, our update filings. any to and will differ today SEC actual other release forward-looking anticipated cause referenced results. We Our also may these forward-looking undertake obligation do Factors defer results to in remarks earnings may that our results include statements. materially from and not

I'm turning to now Chris. and my completes the over remarks, This call

Thanks, of year, morning, share and you all year and $X.XX and thank of revenue Today, the was growth in increases for respectively. diluted XX% fourth earnings XX%, fiscal in Olga. the $X.XX quarter joining. and organic quarter per Adjusted in in Good XX% the XXXX. we reported XX%

we've At of goals. towards tremendous Haemonetics progress midpoint the long-range plan, transformational made growth our

Our of underscores consistently rolled our ability introduced and accelerating all out value NexLynk customers in commitment for overcoming We business our support to to upgrades Plasma financial customers by to unprecedented creating deliver We Plus. growth. shareholders. software strong Express performance of the and our our consecutive Persona years our and reputation hurdles through and strengthened momentum DMS

high these steps rationalization through of took organization. focus contribution strategic durable we accelerate pursuit global and and fabric programs with relentless embedding to OEP savings of additional our the years growth a of And improving We of the Attune. continued apheresis, productivity, inorganic delivered revenue teens profile growth delivering the in business. improved X skills Through our organic OpSens of acquisitions in on heightened hospital and consecutive margin our portfolio and Center are Blood we and our

offerings customer greater and Haemonetics, will As our assigning BUs Services opportunities within our them of the and Olga optimize mentioned, repositioned are and distinctiveness and returns. a we business field create source for commercial enhance to new to units. services accountability

fully of top half achieving As our goal and of we revenue and to are med plan, quartile well committed positioned margin we growth. our transition to the second sustainable tech

X% in and the was results for revenue guidance. and revenue XXXX, grew disposables XX% revenue the X% Plasma in quarter year disposable and now by our It driven after Plasma software. fiscal the year America strong volume 'XX. in for business unit and year another of North growth in to represented Plasma year. XX% fourth XX% and Let's turn quarter fiscal XX% grew

recently We is offers bidirectionally collections, This now more real-world when combined we efficiencies. Express new connected with than limited meaningfully customers initiating unmatched technology, NexLynk are our with our making successful our And market XX,XXX U.S. of in plasma and technology the Plus faster. release full completed the center market release DMS,

market NexSys remains Persona to safely meet unrivaled enabling collectors with in per and liter. lower cost end demand

We as continue industry competitive platform, plasma expanding advantage global for collection. to enhance its the NexSys the standard

our about enthusiastic customers transition technology to share. opportunity are We to latest NexSys to our gain and the

demand, supported plasma environment. robust, collections deficits market inventory plasma a by strong The collections favorable and frozen remains market end

million delivered we of fiscal XX% fiscal Excluding the XXXX. negative decline be XX% in additional Therefore, an in fiscal transitional fiscal XXXX, the this in $XXX to effects of U.S. of growth CSL business a growth to year and CSL We year. in core XXXX for revenue, project year to impressive Plasma million $XX our is revenue X% anticipate approximately our guidance agreement, supply to X% XXXX in range total from year Plasma the X%. anticipated XX%

across apheresis collection significant geopolitical Both to year. in revenue quarter in strength in year the for fourth was platelets and strong continued our and collections overcame increasing by centers cell our we in Center, in revenue by challenges XXXX, revenue Apheresis strength the growth and X% for nearly U.S. disposable key quarter disproportionately across Blood the was up year red In Egypt, fiscal and the markets. grow portfolio. for driven in driven in quarter fiscal demand X% X% the plasma XXXX, XX% continued

and to 'XX, Center's in by revenue year durable XXXX generate participate year-over-year to year the preserve guidance caused Blood efforts and our volumes driven fiscal quarter growth contribution decline of X% portfolio fiscal lower Whole X% in dollars X% X%. revenue by Center to Blood Blood is in rationalization, rationalization Due our declined a expansion. margin our to product predominantly company-wide ability margin designed

XX% management driven the of strong revenue strong Xs closure growth the XXXX, base. management. XX% in in grew and with quarter and vascular hospital increases results, business revenue year utilization of disposables, in the growth continued had XX% hemostasis TEG quarter price driven by fiscal the fourth and Our XX% of by primarily U.S. year, for and installed fourth Hemostasis

FDA heparin settings. we the clearance care. adult transplants our adoption increase Xs for and helping capabilities This neutralization and received quarter, the In standards This clinicians our the to cardiovascular in improve of in laboratory and TEG patients an is hemostasis point-of-care procedures global to heparinized portfolio platform cartridge. addition liver extends fully serve fourth important outcomes to of patient by

Management and SafeTrace as recurring the BloodTrack for growth of both revenue implementations customer and the the due which Technologies up includes in rest completion Salvage, maintenance Management and Transfusion as The of fourth Cell to in X% Management quarter was well Transfusion the X% grew Blood franchise, Tx for for both year. products.

Cell of strong Growth driven Salvage U.S. was utilization the kits in in by disposable

grew the quarter XX% year Technologies Led by vascular and closure, XXXX. in fiscal Interventional

to penetrating progress penetration. continue XX% XXX We top U.S. the accounts make nearly at finish to year the

from in accounts. EP IC existing benefit improvements at also and utilization We

to approval MVP pleased U.S. strengthens products FDA to to in reach emerging We time eligibility, with to our to mix, novel we with unique markets ambulate, proposition XX% mid-bore these catheter-based time our in VASCADE our support of plugs hemostasis are reducing that closure and total solution a collagen upsized device. post-procedure larger for high-growth announce broadening received to technologies. Adding the XL discharge XL premarket venous MVP time ablation time, the MVP,

market release forward to the We coming weeks later in and a release look market will full year. be initiating this limited

approximately presence expected, is of quarter. points The we the our accounts. have progressing VASCADE growth as In international basis more than in launch contributing XX XXX Japan, revenue expanded to

more meaningful into and in countries While are XXXX. we plan year to European expand making penetration has progress been more gradual, fiscal

delivered technology quarter. Now newly sensing let's revenue $XX acquired the in move to on OpSens guidewire in nearly our pressure million products. fourth

them the our launched U.S. provide OptoWire U.S. team. And meaningful cardiology commercial past customers. SavvyWire during and available to interventional are to our throughout excited procedures, we our cross-trained Over sales and channels. months, These several April, and benefits PCI in we we TAVR both expanded products make

ablation to also provides of with compared are ablation the the and combination fibrillation atrial ensoETM procedures against emerging enthusiastic esophageal We Medical. solution Attune ablation, cooling injury acquired ensoETM frequency in device radio to esophageal other about cost-effective significant more protection a with provides procedures. addition

esophageal with ablation used an of growth revenue addressable million, approximately our market we U.S. the frequency growing forward from standard of procedures. to We continued look conjunction the care acceleration low commercial launch June. anticipate protection teens, expanded to With in radio $XXX in become in

Our strategies working. are development and commercialization

in the the expand top our advance leadership expanded capitalizing to to on management cover capabilities underpenetrated majority TAM. products, $XXX develop blood technologies significantly the while R&D continue and new in further We of commercially to accounts by and clinical million existing we

commercial portfolio our technologies, launching R&D augmenting interventional and execution, are M&A. we growth committed additions In through to and recent

this unit OpSens become the a our disproportionate growth and will Attune With margin we expect and expansion. business acquisitions, year, driving Hospital largest

year fiscal in XX% to XX% of growth revenue reported Hospital expect We XXXX.

from this deliver organic to growth. Excluding XX% to XX% revenue acquisitions, we expect recent revenue business

strong another as year expansion. expect portfolio to we our margin accelerate we growth evolve and Overall, revenue

expect we to company, to growth total the X% reported range the X%. For of be revenue in

Excluding be FX, expect XXXX. total in company to organic recent to acquisitions flat growth we and fiscal year X%

dedication support their future. and my worldwide customers. our to for and advance our towards bright we a Haemonetics our the want gratitude our their Together, In I their to for mission momentum customers to express to and closing, shareholders to continued our exemplary employees continue build work very

guidance. Now it of year financial performance over discuss and rest to the our XXXX James to I'll fiscal pass

everyone. you, Thank Chris, and morning, good

of us. anniversary at about excited Haemonetics, reflect ahead I As X-year my opportunities I'm the on

past solutions in our the supported invest have new a continuing we CSL margins, delayed business, grow X and enhance navigated and our acquire years, while dynamics Over products. high-growth shifting to transition, our

combined expand extended our Plasma, and dilutive highly next are all years. optimistic and when several the not am reflected to our revenue accelerate ability immediately, agreement our results efforts transitional the of about impacts with gross I margins growth operating the in While especially of our over in U.S.

was prior compared prior Adjusted our an of of when XXX adjusted points finished with gross fiscal the basis compared fourth increase an margin basis same margin for points the XX%, increase with gross We of quarter with period the XX.X%, year. 'XX XXX of an year.

portfolio both disproportionate our voluntary meaningfully. were a partially in cumulative related our recall These by margin expansion in quarter in whole driving the contributing of to Blood in benefits product and mix product and changes and FX, million charges with role a fiscal in played offset of volume gross business. both $X.X transformation continuous 'XX, our The results,

of the $XXX.X $XX in were expenses prior compared or quarter Adjusted quarter increase an with operating fourth fourth million year. million, of XX% the the

to As operating The factors. basis in several expenses adjusted of expenses increase operating due to was quarter by a revenue, the increased XX.X%. percentage XXX in adjusted points

the First, product integration into of portfolio. our OpSens

with Given the the that benefits not first synergies and full yet realized. scale been anticipated this have OpSens, fully quarter was of

advance XXXX. beginning in as accounts U.S. key we expect commercial fiscal to We this our across strategic our our evolve initiatives

levels. inventory Another hurdles affecting plasma attributed macroeconomic and factor was to in elevated freight constraints costs primarily logistics our

in and better today are similar freight going of levels much a inventory not We expedited position forward. anticipate do

Finally, performance-based also we continuous higher growth our had along with investments compensation business. into expenses,

'XX increase expenses the were with an or operating million fiscal compared of $XX.X X% Adjusted million, for prior $XXX.X year.

percentage and business, at our hospital our and savings adjusted combination expenses a basis and more expected operating revenue, advancing investments fiscal points of offset enhance innovation in leverage XXXX, further operating expenses As aimed expanding growth primarily operating improvements the are excellence coming in In XX.X%. of to These decreased and by leverage increases in years. operating are investments. our XXX market adjusted share to than a from operational program

income an our adjusted margin was of $XX.X operating adjusted quarter Fourth XX%, and XX.X%. million million, at or operating increase $XX.X was

of quarter fourth expenses. impact had adjusted Our approximately XXX the adjusted from points onetime our basis operating items operating in within margin

$XXX.X Adjusted The fiscal 'XX of operating fiscal with XXX basis was with OEP. at an adjusted in savings $XX.X business, from increase million, XXXX year the leverage was operating points margin due million improving of compared XX.X% to coupled or expansion of prior net XX% in income revenue. approximately million $X for the our in

fourth rate for the tax and 'XX quarter and XX% periods was adjusted year. prior of the year XX% fiscal income compared The the XX% with respective XX% for for

year was earnings and compared Fourth XX% XXXX. fourth quarter fiscal diluted adjusted quarter the $X.XX, share when net adjusted income or XX%, million up per was with up $X.X $XX million, of

'XX and was $XX.X $XXX.X was with per earnings adjusted net the for up XX% year. fiscal income million, prior share compared Adjusted XX%, $X.XX, when million or year up diluted

full compared and expense the in $X.XX prior year. interest negative adjusted on impact per negative the $X.XX quarter year a impact had when and on share the diluted Changes the earnings tax a adjusted with income rate, fourth FX

acquisition, combination at the hand Turning revolving our sheet flow cash fiscal now million, the decrease on balance to which select this Cash and and year, a fiscal a OpSens of facility. was $XXX hand through financed of beginning $XXX due of the a end was highlights. cash primarily million of to credit XXXX since on

and restructuring operating working flow quarter and free and net In $XX by costs cash primarily our $XX was benefits was before million Cash from income restructuring-related activities flow the million. flow cash driven in was quarter, from capital. fourth

'XX, taking into equipment, In flow property, operations proceeds from was had $XXX CapEx, of fiscal to After sale free account increased million and of restructuring-related costs. billion, we primarily and net from cash year in million the inventory. partially plant net before offset income, flow $XXX cash attributed restructuring of by $XX

you the impact recall, and restructuring-related restructuring range had overestimated provided fiscal certain restructuring The before will our million. to spend. related free $XXX flow in restructuring-related As million costs anticipated XXXX year we and we to of the to add-backs cash be $XXX of outlook

forward, we provide guidance Going will free cash flow. for

with April, refinanced new facility. of million a $XXX $XXX a used credit help our about unsecured facility of OpSens about our A billion fund comprised $X updates with term facility, a facility, and current X-year important Attune loan $XXX credit some have and our acquisitions million drawn a revolving million credit of recent also In balance Medical. existing We we unsecured to

enhanced $XXX includes credit and a increase our capacity strength the of a provides testament new our balance to in flexibility, million and covenant credit Our sheet facility profile. revolver

strategy evaluate appropriate Haemonetics plans notional rate mature to XXXX, the a interest value swaps, is X.XX% management interest current fixed risk determine of a will risk. have million mitigate These June and we X with thereafter. rate $XXX swaps currently in interest of utilizing of and to blended and rate

at of account $XXX our end convertible our April million of Attune X.Xx ratio into at bonds close March the EBITDA to the Medical approximately quarter, was XX, following net due unsecured approximately on fourth leverage EBITDA Taking our X. increasing X.Xx

$X share to strong about cash available capital With to for new portfolio nearly agreement product our our and $X of near have we in by leverage term. further to flow, and fiscal additional free and we billion 'XX our XXXX. be the growth, M&A tuck-in in by ability of to to of plan our of for acquisitions issued technologies including to after of the estimate June fiscal 'XX, in capacity credit continue capital allocated our buybacks foundation up end billion and lay long-range strategic EBITDA million to our the capital end generate to already since expand excess $XXX we and plan additional our interventional We access portfolio the

the I discuss our are rest diluted year per exceeded share fiscal adjusted delivered of I'd growth to Before and transformational earnings the our we XXXX journey. long-range our in guidance, like half of we our In reflect that expectations. plan, on growth first revenue where

several can be success to factors. attributed key Our

higher first we driven unprecedented our rebound The a First, volume projections. the COVID-XX was in by from growth growth volume collections, the pandemic. experienced in half plasma of our significantly original plan than

end 'XX. cash of This provided U.S. CSL's the we recent through with their of excess transition volume disposable in fund the fiscal flow business, to our additional used of Hospital. acquisitions delayed us the in Second, majority retention U.S. of resulting year

commercial execution strategic the in and our original deal a help series additional the on our accounts strong enabling into footprint. top model surpassing deeper commercial of the Third, with closure, strategic U.S. penetration broadening focused investments XXX in vascular of

challenges. disruptions basis stemming exchange substantial pressure approximately finally, and among from inflationary XXX headwinds, rates, chain headwinds, macroeconomic overcoming And points foreign in supply of margin including volatility other

margin adjusted margin. plan, dampened revenue particularly in of expansion actions drivers EPS the temporarily to ahead took adjusted and of this While gross growth and we our support plans, and robust combination underlying the growth were our

our plan to As second margin of the our we accelerate expansion. we LRP, enter half

'XX margin to by of fiscal with in high will driven and XXX intact basis business. improving in coupled is approximately our in be goal margins, adjusted XXs projected operating expansion XXX of gross the points leverage our LRP Our adjusted operating

clear Our includes volume, higher strategy operating and benefits price and is mix, leverage. from

investments. requiring and high-growth, Recent we Hospital transition commercial further products. minimal our our portfolio, towards OpSens Attune footprint additional expedite Medical high-margin Hospital, In will to expanded promote an will acquisitions of leverage

of and on impact Plasma, technology momentum. gross margins. supply continue customer a improve corporate In agreement changes has and CSL's on growth top in margins mix our to collections drive dilutive will upgrades U.S.

to with transition NexSys continued from away latest drive devices Persona such, the meaningful technology As improvements. our will PCSX

we Center, the Whole continue of contribution parts impact predominantly to contribution no Blood, rationalize on Blood margin significantly in dollars, In improving its business, percent. with while margin

addressing And help productivity our rationalization transition, move remainder plan. continued from commercial pursuing CSL's savings the our with increased delayed as lastly, our with OEP and savings, additional forward manufacturing operations, and will we stranded aligned footprint additional including which generate ensure and costs the objectives, are improvements of additional within the we cost of inefficiencies

XXXX, to year representing operating substantial of be fiscal LRP in our XX%, margin we XX% expect the In towards goals. to range adjusted installment the a

includes year guidance that approximately savings operating benefiting $XX from 'XX OEP about gross our fiscal million $XX Our of of margins. with program, our adjusted million

of initiatives outlined operating anticipate with throughout the the XXXX cost will Given fiscal in we that and plan, in guidance timing our improvement specific back-end improvements our business opportunities margin the outlined year. gradual savings loaded year be

income adjusted and earnings compared compared in guidance with anticipate represents per that. EPS XX% of midpoint share our range, XX% to in 'XX. fiscal 'XX. or our XX% diluted guidance earnings tax adjusted more agreement fiscal of for diluted our year guidance At interest the fiscal when of being per with the share transitional count, expense responsible interest CSL's 'XX year under of XX% just share half of for about than of of we approximately year headwind $X.XX midpoint adjusted XXXX a $X.XX fiscal from Our $X.XX year range with to growth expense, is FX,

$XXX expect flow the generate fiscal of Our in be ability range to free 'XX year to and in cash cash $XXX strong, million to million. flow we our is

commitment year resilience, and line. we drive both long-range performance underscores growth, our bottom to 'XX on continue agility our our Our initiatives and top to execute the plan and as sustainable fiscal

unchanged, increase share continue opportunities we for portfolio to momentum, look particularly opportunistic to buybacks deploy will cash priorities and Our and as to our capital allocation repayment. our product debt growth through remain returns we further our accelerate and expand

and With in We to long-term you in our a confident quarters our look deliver clear to vision, forward ability a value. team, dedicated progress come. on a the updating well-defined plan to I'm

concludes today. Q&A. turn now And for the back This I'll for to remarks our it operator

Petrone at comes Instructions] Anthony [Operator Our question first Mizuho Group. from

end the the to Congratulations have margins. strong then couple start Jim apologies on year I'll on Plasma follow-ups and I'll with a Chris, for maybe and noise. the here, of to

confidence Maybe much here that the and XX CSL year? between just just -- it's that the and you CSL out in expect communication a down, how down the then we should ramp phase in following confidence similar to Haemonetics give

that second to one seems market the then that you're bit low underlying little seeing give there? good the is Can a in to And demand the seems just the range. drivers continue be double-digit inventory. of still build healthy on to still from you us Plasma like there's It fractionators

for the questions. Yes, Anthony, thanks

them robust delighted unprecedented we're projecting a I'll Plasma, reverse industry business. XX% still growth, double-digit have of period kind of a in We're ago, the through high of basic the take to past served XX% low this Regarding and order. growth single, a year, year

factors of number there. a there's So

it's their outside is replenishing is lift proving fun in and of exciting the technology unrivaled a to growth of now conducive Collectors and really stages productivity be It's Persona watch collections. are customers at Express a an driving that's level particularly fun. of us. NexSys The to very U.S., the Plus And is for real-time our which environment seeing and States, here from equal our itself combination we're in although collecting, different inventory.

commitment our our the CSL, volumes some X year. Obviously, million into business $XX that the companies. is to of with fiscal that us the With what a between we've at regards approximately leave of guidance, will from their committed put end

elsewhere there we ramp this doing gradual we the the what's that conversions will create clear ability and happens needs, that. And things for is for And FY in here capacity there's we companies' both year, continuity. board, our a update, what when reflected taking What are address of stranded being want to do 'XX? all and be to is what our But which we what that we'll and it to the changes in down, care and we long business, meets additional obviously, scale about across cost, I allows product do ready. we to about us guidance in mean guide and and us in of have business, view we're have a share if the certainty gives more. which gains this and that one the lot customers we're

just LRP And helpful. nice Jim, margin, XX% XXs. for calls very to XX% That's quickly The high guidance. a on up for step

versus little price you on year? is How a maybe LRP get So what that remainder Congratulations. to is drivers just bit the to mix of the target? visibility and this restructuring much

Yes.

start. me Let

to think both you the I changes observing of it's I is James give at the think the And LRP you're composition what our and But in breakdown and our Chris portfolio. product this -- performance meaningful core work. going guidance, at our because our here, is of is to quantify this.

when price business through XX%, $XXX this, guidance, mix a got leverage, business margin, this with investments and a right? anticipation So to reported given it's already walk gross our And all in our made much function to development in year. and footprint. is of a operating the our be going we've growth million Hospital and volume commercial It's we've we that higher leads

It and contributor. got into the we've Hospital benefits that So disproportionate the coming is OpSens mix. Attune

and for us. that's very all So us exciting it leads

with Express it's high us. fuel powers PCSX and really mixed with plasma, transition story, our agreement, supply right? other U.S. converting As Persona Plus also a we kind NexSys octane customers, upgrading is footprint the of to with off advancing regards With

margin coming is the in The cut percentage here much that dollars, improved. off implied portfolio joined business mix delighted back we'll of and contribution Center at dollars that our but the the and as rationalization, on the business is guidance, Blood We're the associated that's in the well. revenue

operational dollars into productivity, question we to but and -- as around excellence the of then organization. directly much greater total So fabric a embed the smaller pass-through your

of it in So LRP growth. are defined observing I'll going margin but second the be you a James further, bit expansion by this half let quantify to our is plans and

a we're be it's XXX us LRP Chris. end XXXX, And to going points start so be year year. fiscal XXX And margin get that in more Thanks, a piece gradual fiscal I'll in going quantitative will come the I I Yes. to towards to the that aspect. year, our think really more to nice said of basis remarks, for improvement see the throughout that's it to from the target. going 'XX, of through with a bit little gross of

That productivity. talked will leveraging stage will certainly, from then we gross mix sets into the starts get the stage driven sets about. margin the business, Chris the Hospital the year. by year for and it with this gains more end that start come through for It next and and to of But what that towards

terms leverage as you'll a XX% we about the to what's then then We've improvement. more year and or business, you'll us year, gross line, on forward. see to XX.X% range up to Hospital margin see guided incremental really the through in and come but into start then that this see you'll bit go it next margin So and going get higher the that's of

with Solow Larry from comes question next Securities. CJS Our

that growth, an growing I XX% the still just is -- can follow-up on Plasma guess market give the XX% Great. I us to just is sort idea, you of first there's I non-CSL guess that on portion, a imagine question, the some XX% price XX%? is to the Chris, some your share outlook? And forward there the little CSL you bit that this maybe of not shifts, but maybe in guys. you outside opportunities of year's only piece, What going do about just this gains? of see into for for share baked a year

Look, for and on Yes, in above, in enthusiastic here underlying Customers versus different all of which Larry, productivity, customers States at focus the driving We're replenishment. universal that, about internationally. the across the now look increasingly growth our thanks are have now. levels of right? both of We demand, at of the different is inventory it's question. volume all They obviously. total stages

factor. the biggest that's So

base We here further the done Express X that first meaningfully upgrading Plus are of to and benefits in over the for us. And of we've then the half Persona existing process has things NexSys business the yes, LRP. margin

as and we've created real and will trust allow by know Haemonetics being build that continue plasma built trust, market. supplier to reputation enjoys playing game that across a and us confidence they that's think goodwill there. the increasingly the long I the to

then established NexSys lowering safely that satisfaction as and improving process, per in industry And reliably. standard and cost unrivaled for we've donor liter the

be do kind share together position we gains, nicely. yes, able we expect comes So accommodate and that. of It in a be to to

don't conservative, XX Look, with to number for we factors control a admittedly timing. X regards the non-PCSX there's business, but of to

we'd rather about conservative have upward. But at So -- stage, opportunity been be years, and we we've the revisions and thoughtful if to upgrade will. have been throughout [indiscernible] of the last this we it, year, X we've the been and Thankfully, wrong. the all

sure are you had between quarter Obviously, for just a Got more excited piece the Cardiva there, on growth Hospital or the your excited? that mid-single-digit of the that that the growth what more piece this is you. acceleration legacy in just of year. just evenly legacy? in back Or half on And then that are but looks kind on TEG both? side? Is business. on outlook? gears TEG you acquisitions, the Strong switching the like the is Or Is the core, nice

now. we vascular international impressive expansion just X another tale XX% growth XX% looking right? for closure, completed accounts. right? We're For growth of drivers, a really in We're at of the year, It's the XXX top

contributed In quarter. XXX points the of here in international basis fact, again growth

slowdown any good really application, VASCADE broader getting premarket place. propelled a don't intended, aperture, the in is MVP It approval we we're pun see and business no in by the interventional by -- So for powerful. the new certainly opens XL technologies

that going to sure The on strength strength. goes keep So products but that we'll that's new drop call, just about the going. that more from to and I'm talk

for [ the big of ] TEG the on medtech approval, but continues They're to product by us heparanase management product core business. are TEG's level. to and next cartridge to the it impressed joke portfolio. that growth, side the drive, in industry, to mid-teens we're to that's keen we'll look oldest leads a growth Hospital, that double-digit take continue that that Having in going for yes, charge. along. We And What the launched we, in a neutralization again, driver hum

So to taking exciting, behind and I we to it level. look next and it's stand it forward the

James, certainly on Great. And just the margin. the year. through color the Got sounds and cadence lastly, question, like we a you. the operating improved appreciate I

Just in You it kind or we we'll can view How year some ended of end than go like terms averages. we rebound the the a probably the end as Obviously, of just us your should higher quarter. kind at? sort a year give through the where we big of you year, slope, this is of XX% year the idea?

can give any color So us you that? on there thoughts on more

Larry. for right. question. the Sure, Thanks you're Yes. And yes,

We will the end will the year. year up go higher. throughout It

worth were could very helpful. point, of specific margin. in couple items There I our this quarter of items, terms about jumping of a basis be In think off XXX fourth

costs. And scale, synergies get their still freight that's the First, being not have we benefits not we and realized. integrated, expediting then from continue achieved so been to and we OpSens the added they've

I would of that. than maybe wouldn't for to say a be closer overall the even the it bit this jumping be XX.X%, point XXXX margin XX.X% off would better the year,

and you it up start, year. would the throughout where and at you'll So you if XX.X%, go end that's see

Joanne with comes question Wuensch Citi. next from The

a few. have I

remind and put into what and/or us them your folds the dilution guidance? Just upfront. how OpSens from you Attune acquisitions of and maybe the that XXXX out Can accretion

the Farapulse on side, and you your that. the how ] Can and view give types [ sort will of catheters of your of products of portfolio? flutter PFA us tech such like then impact And med with the those uptake EP

Yes. Joanne, Attune. James. start for accretion it's with OpSens I'll the and

both we $X.XX. them, $X.XX of to For said

be total, in in $X.XX this $X.XX year fiscal 'XX. to So it would

it's Joanne, Chris.

adoption. and a of Let touch ton base Certainly, me PFA on PFA excitement.

the next. seen. meaningfully companies most great. most do management product one highly it's Some saying of will vary industry's pretty the think they've product exciting to the launch from and regarded it That's teams I

well observing we From increased are very around rising will is the think value what with current ensoETM raise makes RF vantage tide, ablation energy from our and attempted consistent procedure takes But XXX% add we've very established it when I coming at, safe. we all our modeled is in. that standard ablation to What looked Attune to ability it point, to what we boats. in a

is The the X/X combination cooling of to RF and the introduced products market. esophageal that of literally those our PFA cost ablation are being the of products

PFA expect rapidly. to we So grow

and product market. with We there's that we only We a expect ensoETM, think RF role the a for it better. role to in gets ablation, become leading think

so very about confident And we're it.

the level, proposition. ablation And at the plays and dialogue around one into right importance value our making safe of effective

wave. intend and observing, So enthusiastic we're that what ride about to we we're

An towards setting opportunity for of also sort this? your VASCADE what MVP portfolio is

less right? roughly field less in it's Yes. of depending it So We being used, pulse right? is opportunity may point, closure. term, one think the neutral, -- near will there's access -- one If ablation on for need form be they which

ablation being that's growth of more diminishment offsetting driven is any than there. observing aggregate or However,

as And in, that they're a further and we're the essentially so we the said of sure. applicability MVP now yes, enables positive and what so remarks, will doing. VASCADE pulse in prepared growth close technologies anything different propel able positive real XL our have for is to addition across in for And I that the field, all

is question Raymond next Cooper James. our with Andrew And from

and Maybe just of start it. how sort to to the Plasma think and about the should we on X XX

what full kind Plus of base you the an is whether broad love it there of roll just nearing out to we strategy customer that you're would to to how aggressively and really Express terms going additional that Just a to update how innovation retention the try in with or should should think a tool use that market? bringing price, as about that view the you're we tool take launch, as to

very does powerful. seeing as product level. limited to the thanks release, We're the improvement about Drew, off what to Express is commercial platform procedure next the performing for market from speed is absolutely base our XX,XXX in what We're take question. collections is excited really that Yes. now business The collections, Plus expected. the in

And up procedure so NexSys base across to the XX% the speed we're on base device. seeing reductions in

liter, into cost good productivity. into plays there. center per Plays improved all So lower

we market release the as full upgrading move to quarter. And roll from from we anticipation So our will later market release fleet. there, limited this entire

of given is with device. get It NexSys increased who upgrade. sensitivity well is the regards across back procedure We're is market. pricing, or also either range competitive those for just times way to stay base to This the a intending Persona the going to anybody the use mute meaningful paves using Persona within to

we aggregate, combination, it's expect a think, in unrivaled. we powerful for a And premium it's to X-X So command do innovation.

command and that lowering really improvements satisfaction, to donor to can our improving in the CPL premium. feel confident Given ability regards we with we point to that

both Okay. the and increased here. the I Helpful. you've James, appetite of and capacity think Maybe just think, M&A maybe you mentioned revolver I kind for next,

So lot more ability and do deals. a out of to go obviously,

on the sort Just term in cardiology, think we how still the still maybe are then the of you're trying seeing And looking recent what exciting? right to that you acquisitions into interventional bringing space? fold about near in still What's comment do now. X while you're digest

Do you first, on esophageal integration, Attune, OpSens need that Look, path. take to make We from enthusiastic near-term the guidewires Yes. our Jim? down out is So and are focus of the about we're want good from cooling me we that, to that right? well right? highly

case, VASCADE early asked our direct in the spent in that, with a We overlap, about mid-December force. OpSens interventional earlier this was field Closing helpful. fourth quarter cardiology. cross-training A question in was there's

synergy updated So expect going comp training. We our meaningful revamped call point footprint. to programs. we did complete of and We set we are a our

sophistication force guidewires. but still given of a is nicely Some products, moving it's combined just against the undergoing, commercializing the those of that

great So we feel that. about

MVP fit get and and that on the far June. is ensoETM, cooling that in MVP EP our with priority. XL first beginning now And we'll second direct after esophageal away and our

acquisitions do technology We the for franchise. see in interventional opportunities other tuck-in

to we see that. those as to the to do be forward. as presents have will to We itself. and growth sheet highly we would we But capacity opportunity really that action balance so market that those things able on be accretive the roll profitability wanted And as and tuck-ins

disclosed for now, type the integration the second that's of it's pursue. We've year, our that growth. great of perhaps fiscal could in with But and a relationship things half previously example we Vivasure,

But a results about capabilities to leave And the and That's really that's being this because not of agnostic be at enabling the what replicable though. end the therapeutic we've something to underlying fiscal We LRP. we in aside talking year, think used, happens the then we'll technology, going then applications this built. other areas. so broad-based back model is of it model that we're superior think has

super about pacing of linear us XX% think off, one have impact one guess departure. about lumpier out rolling And When roughly it terms where little ask margin dynamics. you there to bit ratable? what little kind levels function or Okay. Perfect. last CSL we you there of whether That's or bit of quicker of sort Just see the step others Are a the less that kind help little helpful. way. just think than that of sort a called little the bit different should the of bit a bit XX% a move margin the in think then be of I little we margins on maybe CSL, slower? about the a it's or from as and of a volume earnings

think I costs it. the towards we We've off. quite in a have as address plans overhead with the for associated place rolls been to it's stranded it for preparing of costs and linear there Andrew, more side Yes, while, our the and this equation

we fairly it should throughout be that the smooth So year. think

The Matson at next Mike Company. & question is Needham from

Yes.

terms ask So the with time cost Express and your I the with and Plus, collections to offer? you NexSys guess is about are just comfortable how volume, offering to this superior a in I of wanted Persona of that [indiscernible] product

is not whole safe as a is It out with answer It's above be able yes, There's collections for right? industry, Short the is this right? We're Persona exactly really which of draw and to the of performing now there system. conclusions. reliable, [indiscernible] Mike. north anti broad-based lot to million Yes, advertised. all, XX NexSys

associated the It's -- company, reliability the yes, the of halfway the get with product speed combination meaningful. Plus, demonstrated uptick safety, you really the gains of the offering so Persona I demonstrated the think Express there. And then, and

only DMS the We're software. who ones offer

In of fact, XX our software procedures. is DMS the U.S. share today roughly

And improve the piece an how part it's ones the that it's we one and together center proposition offering, -- bring satisfaction what our processing, can that. that of So the important the that compels that donor can can and operations, integrated of we how improve and our are customers. only that's things doing value

marketplace. is combined a Mike. So Yes, broad-based offering, quite confident, that and experience, the offering in evidence holistic real-world unique we're

then And Okay. XL. just on MVP

used I for a is that of types where guess, there regular MVP? the XL So procedures? over is And versus MVP? price premium what

Yes.

offering. So to electrophysiology, MVP said XL all It higher MVP us way will ablation base of closure sizes. earlier, up the it really as pushing expand the procedures. include, offering I vascular to all give across broad-based the us should It's give french levels should

clear, will franchise that the are works There'll the in in but that some because XL be MVP MVP are cannibalization use really a fashion, larger broad-based PFA. typical well. much indications XL particularly and better openings probably be and it for MVP between clinicians to free are

broadening way. openings. of terms well to more us want of about pipeline shoulders strategy. of step will We've So down additional think as about as a broader along We this that ready shop going important of that on venous the get market. be for take us smaller the nice But that to We more got things come market one of to and they in our complement. one-stop closure, It's takes kind part arterial. closure. This

market. real pricing technology. pricing, our think brings of value-based the XL to general, for in terms we like In to value about

We far expect that. mix technologies, interventional driver biggest gains. further is capitalize the but to on also by we're Volume in price and seeing

in that's assume as factored guidance. part the overall going you be to So should of

Michael Petusky comes Research. Barrington with from question The next

correct? just year, sure But XX in the business, wanted to U.S. I'm make correctly. the I the -- XXX Chris, is that's to this just CSL this that about thinking

being work Yes, the Mike, It NexSys. It's does software. PCSX right. today cover that's exactly not not all supply U.S. that's does It the agreement. done on cover international

commitment, make to commitment about just was about from about no we're a sure when talking 'XX, whatever want but know and is because CSL we you a not I minimum it ago, talked I correct? there this, minimum And year 'XX, talked beyond Okay.

gradual What kind live we want tell really and it. of the appreciate 'XX. into terms 'XX. serve to costs. that said, capacity you'll up lets the share go a a our including can as of really, right, an guided execute for to of staying the Mike, us for in and conversion transition But is system stranded James margin, time capacity-constrained customers, we Yes. part being gains. Give was what cared about other terms is the our We otherwise in talk and little us, We the in I before exciting freeing compensated that you just amendments, power numerous improve it. most

is it gradual. you it. of be end The be we're as it laid math So this X the as year projecting it out, by will fiscal won't

So stay tuned. minimum The XX is a commitment.

changes is PCSX the of the excess for we'll completed as year upward, If right? that. call XX% like year go. number throughout we $XXX a we've just talked something slightly XXX from revision the out It Just agreement. the million, we so ago, we in saying represents for when were a that that this downward And it equivalent

are regulatory how little curious, just slower you a regulatory see best good targets just countries that was a done Japan? is then Europe now there traction clinically bit accounts, bit some Japan, to, there guess, I slower. than Europe I there? just then treatment a made I in some closure is heard. called you with little ask how I And you do Europe anything about I believe many a vascular in? may be want little And What that from from XX OUS. the And I has standpoint And think or out as

they're as skilled, Japan of confirm, you third-party in excess we it, working described with now Yes. We're distributor. is, accounts. They're executing. Mike, are to XX a

the that reimbursement favorable very benefit got have we the as system. reimbursement part We of Japanese

that's uptake. So with the initial aided really

of In benefit Europe, works use from one figure starting need. to across how in There terms a the the typically obvious They suturing it's X, around less we next which reimbursement have so of board. discharge, and different it's differences vagaries the of point, are right? country same-day

So that's working what are through. we

build. It's there slower, more a sure. successful We for gradual expect to be just

I good faster, road. of think thoughtful go the down slow to and this a being further is going example

primarily markets. or would a And our on. against that in vantage expect, delivering Italy of in We're a relationship as you big we're so We from Germany. had relationships focused, capitalizing the point, that. started set We we're in

procedures. to other We underlying there's we U.K. demand, will then quickly think where strong mostly and proceed the major ablation markets just measuring through distribution,

So more tuned, build, we've the stay to want It come. land lessons be staying I will to but learned the we is landing. a and of got power important real U.S. make XXX we from gradual and think in sure we the top -- expand one

much you through that You to back to have doesn't to that's to because go reignite, harder. any nail the account It do you right. have and it an landing good churn get and have

base. want we and get So We're right. and sure proposition working centers value from strong build making the appropriately to sustainable. best a want with the to is it clear We

time? some obviously think 'XX, a on I Plus. that do this uptake target? might I this -- of need like of this one a quick mean I mean like Express just do you the or there? real one is I will feel most mean, feel customers, be a Can handful mean take you completed you -- fiscal quick to I essentially

Yes.

we to As will we've said faster. but are go absolutely with go, our our as other customers as prepared technology no fast upgrades,

productivity 'XX event, I so because proposition is demand clear. And for FY Mike, the pressing. so value think Express Plus of an the is it's

call want ourselves in Express implemented but be here, this to far ahead projections get of too So I Plus to don't for our fiscal.

The with JMP. Citizens next question Turkaly David from comes

Can getting does X and mix in how venous like look on your halfway what of LRP. you in to VASCADE answering breaks today your point Congrats think the areas? that I right like just now us those Chris, you closure. with question, your the commentary, said arterial out, tell

really accelerate -- for at roughly growth. ablation some add of sure, And and XX% portfolio an XX% it's that's product, will of split, that, and XL the the looking where but [indiscernible] top electrophysiology, that So closure. the for further MVP we'll VASCADE, on XX-XX cannibalization, growing nicely,

doubled doubled we we pronounced our VASCADE as because things split, footprint. still we've The clinical in one forward predominantly but this And and XX-XX proportionately It's we the surprised got and clearly of much is grew an kind positively both as ran the presence. VASCADE product are Dave, interventional is cardiology on, base again more then commercial PCI in implementation moving setting. ourselves PCI MVP product things we a of

well, predominantly OpSens procedures guidewires, more in We're voice, mind. as which ] just in on of are much dropping will already. the of interventional and [ share have that share Now focused

be we're it's to synergistic. hoping going So highly

MVP talk XX-XX of X For the of sure, growth think XL Opto the products, larger guidewires, VASCADE is an When potential. we split. but the type SavvyWire we is has about

for tuned more builds stay but that, that really So our presence. on

The same ablation. presence our way that builds in enso

we're to call is pretty it between but starting So cardiology. opportunities X for but interventional, about get a points excited really the adjacent broader-based electrophysiology and interventional tale distinct of closely

guess, the average year? detail look going in on the to fiscal was to rate the congrats credit I years, with what James, on interest X you'll or least at able facility. wondering us expense you or hit in maybe like might 'XX new you the is out I then all anticipate be what and out frame if have

we had highly XXXX about now -- 'XX. us we in will to continues what Dave. headwind structure debt be the compared that in the Yes. Thanks, year. for have be will year that $X.XX assumes right dependent fiscal through Interest expense as that That

for keeping crossed cuts. we're rate our So certainly a few fingers

conclude participation you today's question-and-answer your the This concludes for session. program. conference. our in Thank This does

disconnect. You now may