ICU Medical, Inc. (NASDAQ:ICUI) Q3 2023 Results Conference Call November 6, 2023 4:30 PM ET Company Participants John Mills - Managing Partner at ICR Vivek Jain - Chief Executive Officer and Chairman Brian Bonnell - Chief Financial Officer Conference Call Participants Larry Solow - CJS Securities Jayson Bedford - Raymond James Operator Good afternoon. And welcome to the ICU Medical Inc. Third Quarter 2023 Earnings Conference Call [Operator Instructions]. Please note, this event is being recorded. I would l ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended: September 30, 2023 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from: to Commission File No.: 001-34634 ICU MEDICAL, INC. (Exact name of registrant as specified in its charter) (State or other jurisdiction of (I.R.S. Employer incorpo ...

Financial Data and Key Metrics - Q2 2023 GAAP revenue was $549 million, down 2% on a reported basis and 1% on a constant currency basis compared to $561 million last year [6] - Adjusted SG&A expense was $110 million, and adjusted R&D was $22 million in Q2, with adjusted operating expenses down 2% year-over-year [7] - Adjusted EBITDA for Q2 increased 16% to $98 million compared to $85 million last year [72] - Adjusted diluted EPS for Q2 was $1.88, up 37% from $1.37 last year [72] - Full-year adjusted EBITDA guidance narrowed to $375 million to $405 million, and adjusted EPS guidance narrowed to $6 to $6.85 per share [73][74] Business Unit Performance - Consumables business unit revenue was $237 million, down 1% on a constant currency basis and 2% reported, driven by growth in ICU IV therapy but offset by declines in Vascular Access [2] - Infusion Systems revenue was $153 million, up 5% constant currency and 3% reported, with growth in ambulatory and syringe product lines [55] - Vital Care revenue was $145 million, down 7% constant currency, primarily due to declines in IV Solutions [56] - Legacy ICU portfolio grew, but IV Solutions faced challenges, including a weak April and issues with Pfizer-supplied products [52] Market and Competitive Environment - The company is focused on regaining lost revenues in acquired categories, with Vascular Access being the primary challenge, estimated to be $20 million to $25 million short for the year [52][80] - The company is working on manufacturing consolidations and real estate adjustments to improve gross margins medium and long term [82] - The competitive environment in infusion systems remains stable, with customers expecting all market participants to be available, which may have delayed purchasing decisions [100] Strategic Direction and Industry Competition - The company is focused on integrating its manufacturing and distribution networks to capture synergies and improve operational efficiency [58] - The company aims to be a reliable supplier with a multiyear innovation portfolio and optimized manufacturing network [43] - The company is addressing quality remediation and regulatory compliance, with significant investments in resolving FDA warning letters and improving quality systems [61][66] Management Commentary on Operating Environment and Outlook - Management highlighted operational stability and growth in most businesses but acknowledged delays in Vascular Access revenue recovery [51][80] - The company expects sequential improvement in all product lines for the remainder of the year, though Vascular Access delays will impact overall growth rates [54] - Management emphasized the importance of inventory management and production efficiency to improve free cash flow and gross margins [76][88] Other Key Information - The company transitioned away from Smiths Group's IT systems and is now focused on ERP integration to optimize logistics and service networks [58] - Inventory levels peaked in Q2, with a $27 million increase, roughly half the recent historical average, and the company expects to slow inventory builds further in the second half of the year [88] - The company spent $12 million on restructuring and integration in Q2, primarily related to the acquisition [72] Q&A Session Summary Question: Impact of Vascular Access revenue shortfall - The company acknowledged a $20 million to $25 million shortfall in Vascular Access revenue for the year, primarily due to delays in new business and operational challenges [31][80] Question: Gross margin improvement and production slowdown - Gross margin improved in Q2 due to mix benefits and lower production slowdowns than expected, but the company expects gross margins to be around 35% in the second half of the year [32][40] Question: IT integration and synergy capture timeline - IT integration is a multiyear project, but some cost reductions and benefits can be realized before full completion [11][29] Question: Competitive environment in infusion systems - The company believes the competitive environment is stable, with customers now able to make decisions as all market participants are available [100] Question: Impact of Tornado in Rocky Mount on IV Solutions - The Tornado in Rocky Mount impacted IV Solutions, with a shortage of Pfizer-supplied products costing the company a few million dollars per quarter [97]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended: June 30, 2023 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from: to Commission File No.: 001-34634 ICU MEDICAL, INC. (Exact name of registrant as specified in its charter) Delaware 33-0022692 (State or other jurisdiction of (I.R.S. E ...

> Future results are subject to risks and uncertainties, including the risk factors described in the Company's filings with the Securities and Exchange Commission, which include those in the most recent Form 10-K and subsequent filings. Actual results in the future may differ materially from Management's current expectations. > Our non-GAAP financial measures include revenue presented on a constant currency basis, which uses the average exchange rate for revenues from the prior year applied to the current y ...

ICU Medical, Inc. (NASDAQ:ICUI) Q1 2023 Earnings Conference Call May 8, 2023 4:30 PM ET Company Participants John Mills - Managing Partner, ICR, Inc. Vivek Jain - Chairman and Chief Executive Officer Brian Bonnell - Chief Financial Officer Conference Call Participants Jayson Bedford - Raymond James Lawrence Solow - CJS Securities Matthew Mishan - KeyBanc Operator Good afternoon and welcome to the ICU Medical Conference Call. All participants will be in a listen-only mode. [Operator Instructions] Please note ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended: March 31, 2023 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from: to Commission File No.: 001-34634 ICU MEDICAL, INC. (Exact name of registrant as specified in its charter) incorporation or organization) Identification No.) 951 Calle ...

1 | --- | --- | --- | --- | |--------------------------------------------------|-------|-------|-------| | | | | | | Raymond James Institutional Investors Conference | | | | | March 2023 | | | | | | | | | > Any statement concerning Management's expectation with respect to future results is a forward-looking statement based upon the best information currently available to Management and assumptions Management believes are reasonable, but Management does not intend the statement to be a representation as to f ...

ICU Medical, Inc. (NASDAQ:ICUI) Q4 2022 Earnings Conference Call February 27, 2023 4:30 PM ET Company Participants John Mills - ICR Vivek Jain - Chairman & Chief Executive Officer Brian Bonnell - Chief Financial Officer & Treasurer Conference Call Participants Jayson Bedford - Raymond James Larry Solow - CJS Securities Matthew Mishan - KeyBanc Operator Good day and welcome to the ICU Medical Fourth Quarter 2022 Earnings Conference Call. [Operator Instructions] Please note this event is being recorded. I wou ...

Acquisition and Growth - The company completed the acquisition of Smiths Medical in January 2022, resulting in significant growth and organizational changes[20] - The company completed the acquisition of Smiths Medical in January 2022, which has resulted in significant growth and organizational changes[20] - The company anticipates future growth in sales and operating results, with expectations for improved gross margins and reduced production costs[15] - The company anticipates future growth in operating results and financial condition, including expected sales and gross margins[15] Financial Risks - The company is facing risks from prolonged inflation and rising interest rates, which could adversely affect its financial performance[18] - Prolonged inflation and rising interest rates may materially impact the company's results of operations[18] - The company has incurred substantial debt to finance the Smiths Medical acquisition, which may restrict its ability to engage in additional transactions[20] - The company has incurred substantial debt to finance the Smiths Medical acquisition, which may restrict future transactions[20] - The company is exposed to foreign currency exchange risks that may adversely affect operations[20] Operational Challenges - The company is dependent on a limited number of suppliers, which poses risks to its operations and financial condition[18] - The company faces risks from reliance on limited third-party suppliers, which could adversely affect operations and financial condition[18] - The company is subject to regulatory risks that could hinder the timely development and approval of new products[18] - The impact of the COVID-19 pandemic continues to create uncertainty regarding future business operations and financial performance[18] - The company is subject to risks related to compliance with fraud and abuse laws, which could lead to significant penalties[20] Strategic Focus - The company plans to increase marketing efforts and expand into international markets to drive future sales growth[15] - The company is focused on developing new products and improving production efficiencies to maintain competitiveness[15] - The introduction and development of new products are critical for maintaining competitive advantages and market share[15] - The company is focused on maintaining strategic relationships with large healthcare providers and securing long-term contracts[15] Information Technology and Security - The company is committed to enhancing its information technology systems to protect against security breaches and data misappropriation[18] - The company expects to continue facing pricing pressures in the healthcare market, which may impact profitability[18]