Artivion(AORT)2025-02-25 04:00Financial Data and Key Metrics Changes - Total revenues for Q4 2024 were 15.3 million to 388.5 million, up 9.4% in constant currency and 10% excluding PerClot [35] - Adjusted EBITDA grew 32% for the full year, resulting in adjusted EBITDA margins of 18%, a 310 basis point improvement from 2023 [35][36] Business Line Data and Key Metrics Changes - On-X revenue increased 10% year-over-year on a constant currency basis [13] - Stent graft revenues grew 8% on a constant currency basis in Q4 compared to the same period last year [15] - BioGlue grew 7% on a constant currency basis compared to the same period last year [16] - Tissue processing declined 8% year-over-year on a constant currency basis in Q4 [18] Market Data and Key Metrics Changes - Latin America and Asia-Pacific delivered constant-currency revenue growth of 26% and 11% for the full year, respectively [19] - The company anticipates strong revenue growth for both regions over the coming years [19] Company Strategy and Development Direction - The company aims for sustained double-digit revenue growth and EBITDA growth at least twice the rate of revenue growth [7][31] - The Humanitarian Device Exemption (HDE) for AMDS represents a significant milestone, allowing for commercial distribution prior to PMA approval [21] - The company is focused on expanding its product pipeline and leveraging regulatory approvals to drive growth [20][31] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in recovering lost revenue from the cyber incident throughout 2025, citing strong underlying demand [77][81] - The company expects constant currency growth of between 10% and 14% for the full year 2025, with reported revenue ranging from 435 million [51] - Management noted that the cyber incident would not have a meaningful impact on the business for the full year 2025 [38] Other Important Information - The cyber incident had an estimated negative impact of approximately 2 million on adjusted EBITDA [9][37] - The company expects to incur additional cyber-related expenses in 2025 [45] - Free cash flow was 53.5 million in cash and $314.3 million in debt as of December 31 [48][49] Q&A Session Summary Question: Early AMDS commercial progress - Management reported that the U.S. commercial team is actively pursuing AMDS accounts, with 55 feet on the street [72] Question: Confidence in recovering lost revenue - Management expressed confidence that demand exceeds supply, and they expect to catch up on lost revenue due to normal donation levels [76][77] Question: PMA timeline delay for AMDS - The delay is due to new testing requirements from the FDA, which will add two quarters to the timeline [86] Question: Number of implanting sites for AMDS - There are about 1,000 centers that perform DeBakey type 1 dissections, with a focus on the top 600 centers for initial penetration [92] Question: Operational impact of the cyber incident - The incident required manual processing of tasks that would normally be automated, extending lead times [95] Question: Q1 adjusted EBITDA expectations - Q1 is expected to be the lowest adjusted EBITDA of the year, with revenue timing differences impacting results [98]