LMAT Investor Presentation Disclaimers Unaudited Financial Results The quarterly financial results in this document are unaudited. Large and Growing Global Sales Force Forward-Looking Statements This document contains certain forward-looking statements, within the meaning of the U.S. Private Securities Litigation Reform Act of 1995, that involve risks and uncertainties. Actual results and events may differ significantly from results and events described in forward- looking statements. Factors that might cau ...

Financial Data and Key Metrics Changes - Q2 sales increased by 15%, with a gross margin of 70% and EPS up 16% [5][12] - Operating income for Q2 was $16.1 million, reflecting a 12% increase, resulting in an operating margin of 25% [12] - Net income rose by 17% year-over-year to $13.8 million, with fully diluted EPS at $0.60, up 16% [12][14] - Cash from operations reached a record $20.3 million in Q2, with total cash and securities at $319.5 million, an increase of $17 million in the quarter [12][14] Business Line Data and Key Metrics Changes - Sales from catheters increased by 27%, grafts by 19%, and both valvulotomes and shunts by 13% [5] - Organic revenue growth was 15%, driven by 8% price growth and 7% unit growth, particularly in ArteGraft, XenoSure, RestoreFlow, and catheters [9][11] - ArteGraft sales are projected to exceed $2 million for the full year 2025, with Q2 sales of $420,000, up from $185,000 in Q1 [6][34] Market Data and Key Metrics Changes - EMEA region grew by 23%, while the Americas and APAC regions both saw growth of 12% [5] - International autograft launch exceeded expectations, contributing significantly to sales growth [6][34] Company Strategy and Development Direction - The company is focusing on expanding its international presence, with plans for regulatory approvals in Canada, Korea, and Singapore by 2026 [6][8] - A new RestoreFlow distribution facility is being opened in Dublin to support European launches [7] - The company anticipates a full-year revenue of $251 million and 15% organic growth, driven by a growing sales organization and success in global markets [14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the global business model despite evolving international trade landscapes, with only a 25% average price increase in China due to tariffs [13] - The company expects lower operating expenses in the second half of the year, contributing to improved operating margins [40][41] - Management raised full-year guidance for revenue, gross margin, operating income, and EPS, reflecting optimism for continued growth [14] Other Important Information - The company ended Q2 with 164 sales representatives and 33 sales managers, with ongoing efforts to expand direct sales in international markets [8] - A packaging-related recall impacted catheter sales temporarily, but stocking orders boosted overall sales in Q2 [10][18] Q&A Session Summary Question: Impact of stocking orders on Q2 results - Management estimated that stocking orders related to the catheter recall contributed approximately $800,000 to Q2 sales [18] Question: Sustainability of price growth - Management indicated that while price growth has been strong, future price increases will depend on market conditions and competitive dynamics [20] Question: Details on unit volume growth - Excluding the impact of the catheter recall, unit growth was around 5%, consistent with previous years [23][24] Question: Sales force expansion plans - The company aims to reach around 165 sales representatives by year-end, with a focus on maintaining a balanced sales force across regions [46][48] Question: International sales growth expectations - Management noted strong growth in Europe and a positive turnaround in the U.S., with expectations for continued growth in both regions [50][52] Question: Regulatory approvals and new product introductions - The company is awaiting approvals for several products in key international markets, including China and Canada, which are expected to drive future growth [105][106]

Financial Data and Key Metrics Changes - In Q4 2024, the company reported a sales growth of 14%, operating income growth of 26%, and earnings per share (EPS) growth of 30% [6] - Gross margin increased by 120 basis points year-over-year to 69.3% due to higher average selling prices (ASPs), direct labor efficiencies, and improved RestoreFlow Allograft yields [15][17] - Operating income for Q4 2024 was $12.9 million, reflecting a 26% year-over-year increase, with an operating margin of 23% [17] - The company ended Q4 2024 with $300 million in cash and securities, an increase of $176 million in the quarter [17] Business Line Data and Key Metrics Changes - Sales growth was driven by grafts, shunts, and catheters, which increased by 23%, 14%, and 12% respectively [6] - Artegraft, XenoSure, and RestoreFlow were highlighted as key products contributing to price improvements [14] - The shunts category experienced a strong year with a 14% increase, attributed to competitors exiting the market [108] Market Data and Key Metrics Changes - By geography, sales in the Asia-Pacific (APAC) region grew by 21%, EMEA by 18%, and the Americas by 12% in Q4 [6] - The company received its Chinese XenoSure cardiac approval in December, with sales in China up 48% in Q4 [8] Company Strategy and Development Direction - The company plans to expand its sales team from 152 representatives to 165 by the end of 2025, focusing on both U.S. and international markets [7][34] - New international sales offices have been established, including a new office in Shanghai, which began shipping products to Chinese customers [8][9] - The company is pursuing direct-to-hospital sales in Portugal and Czechia, with expectations to begin in H2 2025 [10] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the sales force being the company's number one asset and plans to continue investing in sales managers and offices [7] - The company anticipates organic sales growth of 10% for the full year 2025, with a gross margin of 69.7% and operating income of $59.8 million, reflecting a 15% increase [21] - Management acknowledged the challenges of providing guidance in the medical device sector but noted a history of overperforming guidance in recent years [50] Other Important Information - The Board of Directors approved a cash dividend of $0.20 per share per quarter, an increase of 25% [20] - The company has received 16 of the 23 MDR CE marks, with expectations to receive the remaining approvals in 2025 [10][11] Q&A Session Summary Question: Can you talk about guidance and pricing? - Management indicated that historical pricing increases have been higher than expected, but they anticipate a more conservative approach moving forward, estimating around 6% pricing and 4% unit growth [25][26] Question: Can you provide details on salesforce expansion? - The company plans to add approximately 165 reps by the end of 2025, with two-thirds of the growth expected in the U.S. [34][36] Question: What are the expectations for Artegraft's market opportunity? - Artegraft is expected to contribute significantly to growth, with a market opportunity of $8 million in Europe, but management refrained from providing specific guidance until after approval [40][41] Question: What is the impact of tariffs on the company? - Management noted that most products are manufactured in the U.S., so tariffs would have a minimal impact, with China accounting for less than 1% of worldwide sales [81][82] Question: What is the strategy for the Ireland facility? - The company is committed to establishing a physical presence in Ireland to pursue approvals, with expectations for at least one approval in 2025 [96][98]