Artivion (AORT) FY Conference Transcript

Summary of Artivion (AORT) FY Conference Call - August 13, 2025 Company Overview - Company: Artivion (AORT) - Focus Areas: Aortic valves for patients aged 65 and older, aneurysms, and dissections, particularly in the aortic arch [2][69] Core Business Model - Business Model: Highly differentiated, profitable, and growing base business with a focus on aortic valves and stents [3][70] - Revenue Growth: Expected to grow revenue in double digits on the top line and twice as fast on the bottom line for the foreseeable future [4][71] Financial Performance - On X Valves Growth: Grew 24% in the quarter; historically, it has grown at 13% over the last decade [5][72] - Clinical Evidence: Unique position due to clinical evidence supporting lower INR (less blood thinner) usage, leading to a significant market share increase [5][72] - Market Opportunity: Targeting a $100 million tissue valve market opportunity based on recent clinical findings [7][74] - Stent Business Growth: Stent business grew 22% in the quarter, with a strong pipeline for future growth [8][75] Product Pipeline - Pipeline Overview: Five PMAs (Premarket Approvals) in the pipeline with a total market opportunity of approximately $1 billion [18][86] - Upcoming Products: - AMDS: Stent for acute type A dissection, showing significant mortality reduction in trials [12][79] - Nexus: Total catheter delivery system for aortic arch replacement, expected FDA approval in 2026 [14][82] - SIVO: Next-generation frozen elephant trunk device, trial approved and expected to start enrollment soon [16][83] Financial Guidance - 2025 Revenue Guidance: Initially projected at 10% to 14%, now narrowed to 12% to 14% growth [17][84] - EBITDA Guidance: Adjusted EBITDA expected to be between $86 million and $91 million, with a positive cash flow outlook [18][85] Competitive Landscape - Competition: Limited direct competition in the AMDS space; standard of care is outdated [29][96] - Market Position: Approximately 60% market share in mechanical valves in the U.S. and 15% in the tissue valve market [64][112] Key Takeaways - Strong Leadership: Experienced leadership team contributing to the company's growth and innovation [2][70] - Positive Physician Feedback: Excellent feedback on AMDS technology, highlighting ease of use and significant clinical benefits [31][100] - Future Focus: Continued emphasis on training and cross-selling to expand market presence and drive new account creation [47][113] Additional Insights - Deleveraging Strategy: Rapid deleveraging of the balance sheet, with a current leverage ratio of around 2.2 [17][84] - Cash Flow Utilization: Future cash flow expected to be used for debt reduction and potential acquisition of Endospan [24][91]