Q3 2019 Earnings Call
Ladies and gentleman today's conference is scheduled to begin shortly please continue to standby and thank you for your patience.
Reminder, today's call is being recorded at this time I'd like to turn the call over to Mr. JJ Pellegrino Chief Financial Officer of Lemaitre vascular. Please go ahead Sir.
Thank you Catherine good afternoon, and thank you for joining us on our Q3 20, Nike Inc. Conference call.
With me on todays call, our chairman and CEO , George will make that our president Dave Roberts before we begin I'll read our safe Harbor statement. So they will make some forward looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995, the accuracy of which is subject to risks and uncertainties wherever possible, we will try to identify those forward looking.
These statements by using words, such as believe expect anticipate forecast and similar expressions.
Forward looking statements are based on our estimates and assumptions as of today October 23, 2019, and should not be relied upon as representing our estimates or views on any subsequent date. Please refer to the cautionary statement regarding forward looking information and the risk factors and our most recent 10-K in subsequent SEC filings, including disclosure of the factors like.
Caused results to differ materially from those expressed or implied.
During this call we will discuss non-GAAP financial measures, which include organic sales growth numbers as well as operating income growth expectations, excluding certain one time gains and charges.
A reconciliation of GAAP to non-GAAP measures discussed in this call is contained in the associated press releases and is available in the Investor Relations section of our website Www Dot made dot com.
Ill now turn the call over to George for me. Thanks, JJ in Q3, we posted sales of 29.1 million up 20%.
Embolectomy catheters valves homes, and Allograph led dollar growth.
The Americas had a record quarter up 18%, while Europe grew 20% and Asia Pac 43%.
Based on these results as well as the recent cardio sell patch acquisition, we've increased our 2019 sales guidance to 117.6 million up from 116.1 million on the last call.
Our biologics category accounted for 35% of revenues in Q3.
Hello graphs grew 48% and.
And we've solved our tissue supply problem.
Omniflow grew 18% in Q3, well Xenosure grew 5% organically.
In Q2, we launched Zeena sure plus thicker patch and in Q3, we launched during your a patch for neuro and spinal procedures.
You heard a lot about our rep surge as we continue to global globalize our channel.
In October we also opened up an office slash warehouse in English town of Hereford. We did this in response to Brexit uncertainty, but perhaps more importantly, planting our flag in England should deepen our connection with British vascular surgeons and hospital.
We now have 11 sales offices for into Europe , and the UK.
Foreign Asiapac and three in North America.
Seven of these offices also include product warehouses.
2019 is shaping up to be a productive year through September sales are growing 13% and adjusted op income has grown 8%.
In the last 13 months, we've completed four acquisitions using our cash reserves to build a better income statement.
With that I'll turn the call over to Dave.
Thanks, George on October 11th we acquired the biologic patch business I've been made us for $15.5 million plus potential earn out payments of $7.8 million.
Annualized sales were $7.1 million.
The acquired devices cardio sound ask yourself offer two important features anti calcification <unk> Cellulars Asian.
In service in next generation alternative to automate largest product line Zeena sure.
In addition, cardio cell is well suited for pediatric cardiac surgery.
A niche where we believe we can see.
Sales are mostly in the U.S. in Europe , and will expand critical mass in a number of our markets, including the UK and Singapore.
Gross margin of the cardio, so and baskets sell products in the sellers hands were approximately 70%.
Although during the one to three years it will take for us to relocate production to Burlington margins will be challenged.
In 2020.
We expect sales from these products to be between six and six and a half million dollars.
The gross margin to be 40% to 50%.
And we expect the transaction to be accretive to op income.
At a high level. This acquisition brings us a new technology platform that expands our expertise in biologic implants.
Puts a differentiated product into the hands of our growing sales force.
With that I'll turn the call over to JJ.
Next to our Q3 2019 gross margin was 69.3% down 2.1% versus the prior year period.
Decline was driven by the 2018 acquisitions and strong U.S. dollar going forward. The recently acquired cardio sell investor cell product line will carry on lower gross margin as we sell inventory purchased under the transition services agreements.
This margin will improve when we relocate to Burlington.
Over the coming months the margins of Omniflow Syntel in Python will improve as we complete their product transfers.
In Q3, 2019 operating income was $5.9 million up 28% from Q3 2018.
The operating margin in the quarter was 20%.
In Q4, we expect operating income to increased 5% over the prior year adjusted for special items and 9% excluding the effects of cardio so.
More specifically in Q4 2019, we anticipate that cardio sell will generate approximately $700000 in revenues and be dilutive to operating income by approximately $200000.
We ended Q3 with $44.9 million in cash a decrease of $3.3 million during the quarter. The decrease was driven by acquisition related payments of $6.8 million working capital uses of $3.1 million and dividends of $1.7 million, which were largely offset by a record adjusted net.
Income.
EBITDA in Q3 was $7 million up 27% over the prior year.
Separately, our board of directors approved an eight and a half cent dividend, implying a yield of 0.9%.
Our Q4, 2019 sales guidance of $30.1 million to $30.9 million represents a year over year increase it at the midpoint of 8% on a reported basis and 4% organically.
We also expect Q4 2019 operating income of 5.6 million to $6.1 million, an increase of 5% at the midpoint excluding special items.
We have increased our full year sales guidance to 117.2 million to $118 million, representing a year over year increase at the midpoint of 11% on a reported basis and 7% organically.
We also expect full year operating income to be 21.9 million to $22.4 million, an increase of 7% excluding onetime items.
With that I'll turn it over to the operator question.
Thank you [laughter]. It's technical question do you need to press star one on your telephone.
To withdraw your question press the pound.
I get to ask a question press star one on you touched on telephone. Please standby why we hope all the Q and a roster.
Our first question comes from Jim Sidoti Sidoti and company your.
Your line is open.
Good morning, or good afternoon, and can you hear me.
Yes quite well.
Great right. So before to go over the acquisition or whatever you said about six in second half million revenue now is that to the existing customer base or is that a two to your customers.
So Jim this is Dave the six to six and a half million dollar revenue that we cited as far as 2024 at need us some Chris down there's a small percentage is too low mates current customer base I would say.
Most of the revenue is going to hospitals, a and specifically for cardiac surgery procedures and a good portion of that is actually pediatric cardiac surgery procedures.
Okay. So so that's that's a new base for you do you think you'll be able to sell any of your Houston products into those markets.
So I think the the potential for cross selling specifically in pediatric cardiac surgery is a little bit lower and that we do have one or two or three of our 15 product lines, perhaps could be sold there into adult cardiac surgery.
A few more I think that there's no question that there's more cross selling opportunities for products used by vascular surgeons and of course, some small percentage of the sales of cardio selling bask yourselves, specifically baskin sell our two vascular surgeons and that was.
The important part of this transaction another important part clearly was we like the biologic space and this does give us a nice next generation technology in that space. As you know we were working on a 2.0 version of Zeena sure. Yeah on this product line fits that.
Bill in many respects, but to answer your question I'd say fewer cross selling opportunities with respect to Cartier to sell then there would be in products used by vascular surgeon.
Okay and then the last question on the deal have you been able to retain most of their existing distribution and salespeople.
So there are just they had a hybrid this distribution channel and with respect to the.
Distributors and agents, we are transitioning now now of course, there's a decent amount of inventory in the channel and they have transition periods built into their contracts. So that transition will take place over the coming few months.
With respect to their direct sales channel.
We are interviewing and expect to hire a handful of their sales direct salespeople that process is ongoing right now on so we will bring some of their salespeople and dullum mate.
Okay, Alright, and then JJ and in a quarter that ended in September a couple of questions.
Inventories up Oh talk about 4 million what was going on there.
So inventory is up related to the to act and the acquisition. The true insights acquisition of a few weeks ago. We're also doing the relocation of our applied product lines that we acquired a year ago here to Burlington. So we bought extra inventory there.
There.
And then we're selling.
More allografts restore flow as you know and we're building up and ramping up inventory there as we fix that supply.
Issue with the tissue banks, so those three topics really increased inventory.
All right I guess I started getting close after the quarter Oh, We then I'm only it wasn't there.
Yeah, there was a deal not this not the cardio cell and Matthew sell deal Jim before that.
There's a there was a true insights Valvulotome acquisition was July 12, Jim and that than that aim will yeah million something of inventory.
Okay, sorry, and I assume then or.
Good well went up because of that as well.
Yep Yep, so that was.
What about $8 million purchase price and some some decent chunk of that goes to goodwill.
Got it Okay and then the last question, there's two tax rate in the quarter seemed a little low is that a onetime thing or do you think you you know.
Fair I missed that level.
So I think we've talked about before a sort of our normal.
Tax rate from ops is around 26%, but when we get a decent amount of stock option exercises that brings it down. So we had an amount of stock option exercises in the core [laughter] got it okay. Thank you.
That.
Thank you.
As a reminder, she would like to ask a question a star one you touched on telephone.
Next question comes from Rick Weiss with Stifel. Your line is open.
Hi, Hi, gentlemen, so drew ranieri on for Rick Tonight.
I just wanted to also started on the acquisition as well and Dave you mentioned that you're expecting to hire some of their a direct salespeople.
So this is kind of out of the typical made acquisition strategy you normally just dropped a product in your existing Salesforces bag. So could you maybe just talk a little bit more about that in detail. Our these specific rats are they just going to be selling the to the pediatric cardiac surgeon or do you think you will have the full what made.
Portfolio at their disposal and just a telephone another question.
You have the 109 reps at the end of this quarter.
How should we be thinking about your salesforce going forward over the next 12 to 24 months and is this kind of.
Acquired reps or it's going to be is that actually embedded in your opex guidance right now.
Okay. So let me take the first question first.
There are no I set a handful I'd say five or six or seven on selling and marketing individuals that were interviewing.
One is in Europe of handful or in the United States into fewer in Asia Pac.
A couple of these individuals I would say would take on more of a one is a marketing person. So that person would be focused specifically on these product lines. Another one could become a what I would call more of a product specialist who would could cover Europe as a whole, but some of the sales reps.
That were interviewing woodstar carrying the entire when the bag. They will just have a specific expertise in this product line that hopefully, we can leverage and that could benefit our entire selling organization, where cardio selling basket cell is approved.
In terms of you know, how does and you're right to point out through that this isn't out of our normal playbook normally when we do acquisitions, we don't hire sales reps from the target company, but again because these products are used in a couple areas cardiac and pediatric cardiac surgery, where.
We have less expertise, we felt like it would be good if we could to hire some of these folks in.
In terms of your second question.
How does this fit into the low made.
To that sales rep headcount.
In terms of the end of this here I think that excluding the reps that we take on from this acquisition worth 109, now, we'll probably be up one or three reps by the end of the year of course, then we have to add on whichever reps, we decide to hire from this acquisition and.
Beyond that I think as you know.
Because operating profits feed first at low made the number of reps. We hire is we're sort of on a pay as you go basis. So I think as you think about next year in the year beyond that we're not going to talk about very specifically you can think of us as doing sort of more of the same pay as you go with respect to expanding the sales.
For us.
Got it and then just.
Touching on gross margins for for a moment.
So you have cardio is basically lapping as as we speak on the call right. Now you have applied medical to lapped earlier this year and you'll have that made us for next year, but can you maybe just walk us through gross margin impacts for 2020 at a high level given some of these past acquisitions and.
Let me being the gross margin repair shop.
Yeah. So I'm, obviously, we're not guiding on that but I would just say conceptually.
You've got the Omniflow transition, that's happening, bringing the omni fault product from.
Australia to Burlington, and you've got the applied transition that's happening.
Manufacturing those devices in house, those should be done sort of around the first as a year or so and then you've got to work through your old inventory and start selling that the stuff that hopefully you're making.
Less expensively here that will help.
Yes, as you acquire and Mitas.
Cardio sell and back to sell products I would say that kind of similar to the two deals. It did in the second half of last year about six 7 million or revenue at a sort of 40% to 50% margin for some period of time, while we buy those devices from the seller and so those two if you recall had about a one of the half percent negative.
The impact on the margin and so you'll have that as you look forward to us or into next year.
And then on top of that I guess I would say there may be some.
Some purchase price accounting going away from the from the recent acquisition.
A few weeks ago, and that'll help you as well and then FX, who knows goes up and down to change margin. So the a true insights margin has already are decent level. That's that acquisition from a few few weeks ago or a month or two ago.
And then one that purchase price accounting goes away the inventory write up.
It will be even stronger and there might be some pricing opportunities as well along the way. So there are a lot of puts and takes it's a complicated topic, but at high level I guess I would say the acquisitions are bringing it down 1.5% for the two from last year, one and half percent for the most recent one maybe help from through insights as it rolls out of purchase price accounting and help from the.
To integrations that are happening.
Great. Thank thank you for taking the questions.
Thank you and our next question comes from Jason Mills with Canaccord Genuity. Your line is open.
Hi, This is actually used to say on for Jason Tonight, I wanted to ask about Xenosure, specifically, the new product launches in the quarter and then just longer term. If you think about the acquisition of cardio stolen Bosqi. So how you see xenosure sales impacted by those two projects.
Hi, Cecilia nice to talk to you as George So the launches I would say they really just came out of the the gate and I would say in general under a little bit slow, but I'm not worried at all.
It takes a long time with some of these things again to remind people. The xenosure plus is sort of a fat one and the xenosure door or the Dura sure is got different indications. So we'll see how those goes those those seem like excellent shots on goal and also sort of a regulatory were minor we launched in Australia at last October that's.
Going exceptionally well and the clinical trial in China is almost fully enrolled into 282 out of 288, although we've extended to 315 because of loss loss of follow up to some of the patient. So we're getting there in China and in fact, I think we're done with the cardio side right now.
Almost all of the cardio side and the vascular sides lagging a little bit softer choose if we do decide to go ahead and file right now with cardio and then wait on vascular access a rare I know you didnt ask that that's the regulatory.
Side of the device as far as vascular sell in cardio so.
How do they relate to Xenosure, you know generally speaking higher price points here I think the cardiac price points of around 1000, and the xenosure price points or more like $200 apiece. The small patch peripheral thing so you're getting a much higher priced product I think Dave alluded.
Into this I think it's important to reiterate here, which is we already had on the drawing board and we're halfway there on making Xenosure 2.0, and notably that product carries the features anti calcification desalinization and no rent well here. We go Dave just bought a company that has those features plus he bought.
Book of business that we think will be worth about six six and a half of sales next year. So in some ways. This acquisition is a and acceleration of the Xenosure 2.0, and it's a much more real tangible one 'cause it's done it's got all the approvals we need it's got a pretty broad based approval set places like Singapore.
Our special approval in Australia does not have China, and Japan, notably and of course it has the Europe in the U.S. as a couple more Canada's in there as well so really cool maneuver or move bile may to continue to get stronger in the biologic patch business sincerely I might just add a couple points.
One with respect to the peripheral vascular patches, where the pricing is somewhat similar obviously, we've had some headwinds with respect to xenosure growth over several quarters and part of that has caused by this next generation patches, becoming available for peripheral vascular surgeons.
Now, let's not having an answer to that so now we do and I don't necessarily think it will compete so much again zeena sure I think it will compete against some of those entrance that was that we're taking business from Xenosure. That's my first point and as George alluded on the larger patch side, where our sales of lean.
Sure much smaller.
The surgeons purchasing cardio sell really value. These these traits of anti calcification desalinization, no rents and they're willing to pay up for it. So the car you sell patch a normal cardio sell patch sells for about three times the price of a xenosure patch so.
To the extent that in the future some of the Xenosure large patches converted over to carty, so that could actually be good for us.
Great. Thank you for all the color on that and I guess, just sticking with recent acquisitions as well could you provide some commentary just around.
Fine medical as follows Cardinal trended in the quarter and then just your expectations and thoughts as you look to 2020 for the potential to product line.
Sure. So this is Dave again with respect to how they've done in the quarter I would say both of those acquisitions. Those are the two acquisitions that we just anniversary on now from last fall there both running about 20 to 2020, 5% to 30.
Percent ahead of the year one expectations.
And they are both accretive this year.
And so on doing really well on as JJ was mentioning the applied medical acquisition. The relocation of that production process should be complete by the end of the year.
And then frankly I think our general rule of thumb here is as we anniversary these acquisitions.
The sales sort of become part of low made sales overall, so I'm not sure. We don't really guide on particular product lines into the future and you know just setting expectations for future calls I'm not sure if we'll be calling those out but as you know as they become part of the overall, let me say.
Lets back and base of revenue I think everyone can feel good that they're running ahead of expectations and they're contributing to our bottom line.
Great. Thank you and congrats on a great quarter.
Thank you.
Thank you and our next question comes from Joe Munda.
First analysis your line is open.
Good afternoon gave me okay.
We can do.
Real quick can you give us incentive what the red split looks like for cardio sell in vascular so.
So the sorry did you say the revenue split yes, the sales predominantly predominantly I'd say, 80% to 90% cardio sell and then a roughly 10% ish or so of ask you sell something in that area.
So.
Steve I guess the question I know you touched on in a little bit, but I guess, how do you what are the plants as far as commercializing back you sell in light of having sure in the market.
At a price points or are deferring.
I know, it's still de Minimis as far as revenues concerned, but I guess can you give us some idea of how those two products or co exist are complementary to each other.
You talked about either short 2.0.
I guess you do away with back you sell in turn that into Xenosure 2.0.
Just curious.
So you just so I make sure I have your question right. How do we plan to sell zenith, that's a small xenosure patch against Sebaski sell patch generally.
Yeah Okay.
Okay, so right so.
Obviously, we've been very successful is the insurer most of the Xenosure business that we bell built has been the smaller size patches use in peripheral vascular surgery over the last couple of years as we've seen competitors enter the market of course, one ones Vasc you sell on others, one you're familiar with Photofix from Cryolife.
Sure that's from Edwards et cetera on some of these products are what I would call next generation products that have this deceleration anti calcification no rents features one or a combination of those zeena short didnt and so as and so we felt like it was a very nice add to the bag. So.
So that one of the vascular surgeon said, yes, I like a biologic patch, but I want a patch that as an anti calcification or decellularized patch, we didn't have anything to offer them until now and now we do so really.
It's a little bit like one of vascular surgeon wants a embolectomy catheters and some like latex in some like latex free well we offer both of those and there are other examples in our bags. So I think they will exist Symbiotically next to one another in the bag and if one of our sales reps encounters.
An objection a to Z ensure that.
It it doesn't have an anti calcification treatment now we have a solution for that.
Okay.
Okay.
That's all I got it thank you.
Thanks, a lot Jeff.
Thank you and our next question comes from Mike Petusky with Barrington Research. Your line is open.
Hi, guys.
Few questions I didn't catch if he said.
In terms of percentage up or down for the quarter.
We did say, but I think it was 10% organic growth in Q3, 18% reported.
Thanks.
And then.
George I'm just wondering.
In terms of the China market.
The sales effort there.
Convoluted and.
Working media attraction, but I saw that obviously Asia Pac was strong and I'm. Just curious are you guys are starting to get something done. There can you just give an update generally sure.
Mike of course, you picked on the one country here. So I have a note here that says we had growth in 19 of 22 countries and you pick on the one while we do have actual reported growth of 60%, it's sort of a saiki because they had $120000 return last year. So I would say so I think things are going great at this company we.
Just had a 20% quarter, which you know we don't always have those but you picked at one place where I would say our China efforts are bogged down I really wouldn't blamed Trump or is she and I would just say, it's real hard to get approvals in China, we only have 25% about products approved over there and where slogging it out.
Out in this clinical trial, although maybe we'll get that approved in 2021 or 2022, and it will make us sort of have 50% about revenues approved the China trial is about Xenosure just to remind everyone. So no no real breaking the clouds, yet in China. Thanks for pointing out that weakness I appreciate that.
[laughter] sorry.
Good good enough should ask that went off line.
In terms of the <unk>.
Tax rate I'm, just looking back at the model it looks like for the last couple of years, you guys have actually for the full year.
When all was setting.
20% I mean, it is it possible that that.
How we end up for fiscal 19.
Yes, I am I think we're in it and vectoring in and around the low twentys for a for the year and it really depends on who exercised its options.
In Q4, we had a decent amount in Q3, obviously with that 12% rate.
So we'll see what happens in Q4, Mike So, it's a little tough to predict but.
I think thats kind of the high level answer.
Okay.
If you have have handy the stock based comp in capex for the quarter.
Do.
710 or the Capex.
And stock based comp around 700 Kay.
And then just.
Last question Mike.
Uh huh.
As money Tonight.
Is there is there any I know from a balance sheet perspective, you guys still have the ability to go out and do things, but just from the standpoint of integration and the work that you guys will need to do to sort of.
Yeah.
You know just just sort of bring it into the fold I mean, you guys have to take a breather in terms of M&A or four if there was something but.
And working on I mean could you could you go close.
I'm only going to make this analogy because we're nearing thanksgiving but.
It feels like we just left the table at Thanksgiving and football's on the TV.
And we're not really to hungry, but then when your mother walks in with Pumpkin Pie and you just can't resist it eat it and so I would say, yes, we are very busy with integration around here, but.
You have some there are some acquisition targets out there were no matter how full we are we would we would.
We would jump on them. So I guess, that's how I look at it.
Fair enough. Good analogy, thanks, guys really appreciate it good quarter.
Thanks, Mike.
Thank you and our next question comes from Brooks O'neil with Lake Street Capital. Your line is open.
Thank you good afternoon, congratulations on a terrific third quarter so.
I'm, hoping.
They looked at the third quarter and I saw the terrific numbers I kind of thought okay, probably there out of the words in the growth rate, it's picking up and everything is fabulous and then I kind of looked at the fourth quarter guidance and I went.
Well, maybe not so.
Hey, what's going on in the fourth quarter, and how would you characterize kind of where you actually.
Getting passes.
Growth slowdown and getting back to a more normal made track.
Yeah. So I don't know I would call that a fairly bearish characterization Berks I guess I would say a couple things. One is if you if you remember last year.
Q3 was pretty slow.
And we had a few reasons for that all of those reasons have turned around really sharply.
Since then and a good way and then Q4 last year had a nice rebound quarter.
So really if you wanted to blend the two of them together and look at age two of last year with 82 of this year, you're sort of an 8.5% organic growth rate this year versus last year, so even though you're seeing 4% in the quarter tough comp in Q4, you're seeing 13% in Q3 easier comp.
In Q3 blend them get to 8.5% I think thats generally on the higher end of who we said we are sort of 789% organic growth guys. So that feels like a good number to me there was another topic in there which was there was a large OEM order that we probably thought was going to be split a little bit between.
Q3 in Q4 and want to being pretty much all into Q3, so it put a little bit more growth in Q3 versus Q4, So I would say if you're thinking about those two things I think you're pretty much on track for a nice growth rate and you're at seven 8% for the year in terms of organic growth, which is a pretty nice answers.
Versus last year's organic growth rate so I.
I would say now yeah that the growth rate. If you look out sequentially by quarter to I think you get some nice answers to so I.
I think it's been a nice story over the last three or four quarters in terms of Greg.
Yes, that's good I'm, just curious I think I remember, what I might be wrong.
That was 10%.
Growth historically, but maybe that just includes the acquisitions. It wasn't all was 10% organic so exactly yeah, yeah, well that whether we're sort of the seven or 8% organic guys and then another two or 4% for acquisitions, historically, that's where you've been Brooks another way to look at it this is George.
If you wanted just to in 2018, we grew reported sales, 5% and the op income number was down 2%. If you say Oh, you don't count all those free gains that we made from that big acquisition. So as a five in a negative two in 2018 and I do think there's a nice rebound story here, which is this.
This year, it's a it's an 11 Ana and a seven right and so five a negative two versus 11 and seven I think any reasonable guy I would say that's a pretty good rebound year to year, that's full 18 versus full 19.
No I think that degree rebound and I know, you're not providing guidance 2020, but you think I mean, basically I guess, Mike do you think you're out of the woods hearing your back on a normal track or do you think it's more lumpy in the future like it's been over the last couple of years.
Well, there's a lot in that question I feel like <unk>, our guidance goes out through Q4, and you and you're seeing a full year. If you are looking to wall is one year lumps I think it's pretty solid year, 11% reported growth in 7% op income growth and I and beyond that the reason we took away that 10 20 was because we felt like it just got.
Distracting and we didn't want to go that far in the future. So we're not doing that anymore and that's what you're left with at the end of a year now you just have right now I only have a quarter's worth the guidance.
But we played that before it didnt seem to helpful in the past.
Okay. Thank you very much.
Brooks, Thanks, a million for commentary.
Those are questions.
Thank you and <unk>.
We have a follow up from Rick Weiss with Stifel. Your line is hoping.
Hey, guys true again, just a couple follow up questions.
Just on restore slow I think you gave the grocery to at 46%, but just double checking some math is it kind of in the ballpark to say that it's around $3 million 3.1 $3.2 million for for this quarter and revenue.
I mean, we're happy to tell you. It was I think it was a 50% reported growth rate five zero exactly 48 over 40 agent Dave. Okay. So 48, exactly and then so in the quarter. It was about two 2.3 2.5 million of revenue.
Okay, and then sorry, if I missed this but.
Did you give price and volume in the quarter.
We didn't but we can I think the volume units were up 38% if I'm doing this right, Dave Stoehr flow and price was up 10 per we're talking about just restored flow or fruit fruit for for both if you had it for store flow and for the total company.
Right. So restore flow was up 38% in units and it was up 10%.
In price.
And then for the whole company, 5% price 8% units.
Okay, Great and then just one last one.
For the true inside acquisition can you just remind us what the.
Revenue and gross margins were for its in the quarter and.
Lastly, kind of what you expect maybe go forward.
Well so the revenue in Q4 was around $300000.
And the retina hospital level revenue.
Generally reached.
Around 2.2.
Million dollars.
At the hospital level the gross margin.
As was around 60%.
In the quarter, and we expect that to increase overtime as we get rid of we moved past the purchase accounting and our selling inventory that we built here ourselves.
Great. Thanks for the follow up questions.
Thank you.
Thank you ladies gentlemen that concludes today's conference I would like to thank you for your participation and you may all disconnect everyone have a great day.