Q4 2024 Haemonetics Corporation Earnings Call

Operator: Good day, and thank you for standing by. Welcome to the Haemonetics Q4 2024 Corporate Earnings Conference Call. At this time, all participants are in listen-only mode.

Good day and thank you for standing by welcome to the Q4, 'twenty 'twenty far hanging out ex corporate earnings conference call. At this time all participants are in listen only mode. After the speaker's presentation, there will be a question and answer session.

Ask a question during the session you will need to press star one one on your telephone you will then hear an automated message advising your hand is raised to withdraw your question. Please press star one again please.

Operator: After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you will need to press star 11 on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star 11 again. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your first speaker today, Olga Guyette, Director of Investor Relations and Treasury. Olga, please go ahead.

Speaker Change: Please be advised that today's conference is being recorded I would now like to hand, the conference over to your first speaker today.

Guy: So guy at director of Investor Relations and Treasury.

Guy: Please go ahead.

Olga Guyette: Good morning. Thank you for joining us for Haemonetics' fourth quarter in fiscal year 2024 conference call and webcast. I'm joined by Chris Simon, our CEO, who will provide business updates and discuss revenue results and guidance, and James Derecka, our CFO, who will provide further updates about our fiscal year 2024 financial performance and expectations for fiscal year 2025. Before we begin, I'd like to address revenue reporting changes we're implementing, starting with fiscal year 2025. These changes involve integrating service revenue within our commercial business.

Guy: Good morning, Thank you for joining us for human genetics fourth quarter and fiscal year 'twenty 'twenty four conference call and webcast.

Guy: I'm joined by Chris Simon, our CEO, who will provide business updates and discuss revenue results and guidance.

Guy: And James <unk>, our CFO, who will provide further updates about our fiscal year 2024 financial performance and expectations for fiscal year 2025.

Olga Guyette: This adjustment is in line with our updated management structure and acknowledges the crucial role that services play in our customer offering. It underscores our commitment to improving service quality and driving growth within our service organization. As a result of this change, the fiscal year 2025 guidance we will discuss today is presented in our new revenue reporting format. However, all revenue results for the fourth quarter of fiscal year 2024 are presented in the old format to facilitate appropriate year-over-year comparison.

Guy: Before we begin I'd like to address revenue reporting changes, we're implementing starting with our fiscal year 2025.

Guy: These changes involved integrating service revenue within our commercial business unit.

James: This adjustment is in line with our updated management structure and acknowledges the crucial role our services play in our customer offering.

It underscores our commitment to improving service quality and driving growth within our service organization.

James: As a result of this change the fiscal year 2025 guidance, we will discuss today as presented in our new revenue reporting format.

James: All revenue results for the fourth quarter and fiscal year 2024 are presented in the old format to facilitate appropriate year over year comparison.

Olga Guyette: For a detailed reconciliation between the old and the new revenue reporting formats, please refer to the supplemental analysis referenced in this morning's earnings release and also available on the IR section of our website. I'd like to remind everyone that all revenue growth rates discussed today are organic, unless specified otherwise, and exclude the impact of foreign exchange fluctuations and acquisitions. Our Organic Revenue Growth Guidance for Fiscal Year 2025 incorporates 15 weeks of revenue from off due to the acquisition closing date being in December 2023. Throughout our call, we'll reference other non-gap financial measures to help investors understand Haemonetics' ongoing business performance. These measures exclude certain charges and income.

James: For a detailed reconciliation between the old and the new revenue reporting format. Please report refer to the supplemental analysis reference in this morning's earnings release and also available on the IR section our web site.

James: I'd like to remind everyone that all revenue growth rates discussed today, our organic unless specified otherwise.

James: Could the impact of foreign exchange fluctuations and acquisitions.

James: Our organic revenue growth guidance for fiscal year 2025 incorporates 15 weeks of revenue from Austin.

James: Due to the acquisition closing date being in December 2023.

James: Throughout our call we will reference other non-GAAP financial measures to help investors understand <unk> ongoing business performance.

James: These measures exclude certain charges in income items for a complete leased if excluded items reconciliations to our GAAP results and comparisons with the prior year period. Please refer to our fourth quarter fiscal year 2024 earnings release.

Olga Guyette: For a complete list of excluded items, and reconciliations to our gap results in comparison with the prior year period, please refer to our fourth quarter fiscal year 2024 earnings release. Our remarks today will also include forward-looking statements, and actual results may differ materially from anticipated results because doctors may cause the results to differ.

James: Our remarks today will also include forward looking statements and actual results may differ materially from anticipated results.

James: Factors that may cause our results to differ referenced in our earnings release and other SEC filings.

Olga Guyette: Reference in our earnings release and other SEC filings. We do not undertake any obligation to update this court within the state. This completes my remarks, and I'm now turning the call over to Chris. Thanks, Olga. Good morning, and thank you all for joining us. Today, we reported organic revenue growth of 10% in the fourth quarter and 12% in fiscal year 2024. Adjusted earnings per diluted share were $0.90 in the quarter and $3.96 in the year.

James: We do not undertake any obligation to update these forward looking statements.

James: This completes my remarks, and I'll now turn the call over to Chris.

Christopher A. Simon: Thanks, Olga good morning, and thank you all for joining.

Christopher A. Simon: Today, we reported organic revenue growth of 10% in the fourth quarter and 12% in fiscal year 2024 adjusted earnings per diluted share was <unk> 90 in the quarter and $3 96 in the year increases of 17% and 31% respectively.

Olga Guyette: Increases of 17% and 31%, respectively. At the midpoint of Haemonetics' long-range plan, we've made tremendous progress toward our transformational growth goal. Our ability to consistently deliver strong financial performance underscores the accelerating momentum in our business and our commitment to creating value for customers and shareholders. We strengthened our reputation by overcoming hurdles to support all of our plasma customers through consecutive years of unprecedented growth. We rolled out our Persona and NexLink DMS software upgrades and introduced Express+.

Christopher A. Simon: At the midpoint of human ethics long range plan, we've made tremendous progress towards our transformational growth goals.

Christopher A. Simon: Our ability to consistently deliver strong financial performance underscores the accelerating momentum in our business and our commitment to creating value for customers and shareholders.

Christopher A. Simon: We strengthened our reputation by overcoming hurdles to support all of our plasma customers through consecutive years of unprecedented growth, we rolled out our persona and next linked Dms software upgrades and introduced express plus.

Christopher A. Simon: Through strategic portfolio rationalization and a heightened focus on global apheresis, we are improving the margin profile and durable contribution of our blood center business. We delivered three consecutive years of high-teens organic revenue growth in-hospital and took steps to accelerate inorganic growth with the acquisitions of Opsense and Attune. And we continued our relentless pursuit of improved productivity, delivering additional savings through our OEP programs and embedding these skills in the fabric of our organization.

Christopher A. Simon: Through strategic portfolio rationalization, and a heightened focus on global Apheresis, we are improving the margin profile and durable contribution of our blood Center business.

Christopher A. Simon: We delivered three consecutive years of high teens organic revenue growth in hospital and took steps to accelerate inorganic growth with the acquisitions of <unk> and <unk>.

Christopher A. Simon: And we continued our relentless pursuit of improved productivity delivering additional savings through our OE programs and embedding these skills in the fabric of our organization.

Christopher A. Simon: As Olga mentioned, we repositioned customer and field services within our commercial business. Services are a source of distinctiveness for Haemonetics, and assigning them to the BUs will create greater accountability and new opportunities to enhance our offerings and optimize returns.

Christopher A. Simon: As already mentioned, we repositioned customer and field services within our commercial business unit services are a source of distinctiveness for hemostatic and assigning them to be use will create greater accountability and new opportunities to enhance our offerings and optimize returns.

Christopher A. Simon: As we transition to the second half of our plan, we are well positioned and fully committed to achieving our goal of sustainable top quartile med tech revenue and margin growth. Turn now to our Business Unit Results and Revenue Guide. It was another strong year for plasma after 43% growth in fiscal year 23, plasma revenue grew 6% in the fourth quarter and 14% in fiscal year 2024, driven by disposable volume and software. North America disposables represented 85% of plasma revenue and grew 4% in the quarter and 13% for the year.

Christopher A. Simon: As we transition to the second half of our plan, we are well positioned and fully committed to achieving our goal of sustainable top quartile med tech revenue and margin growth.

Christopher A. Simon: Let's turn now to our business unit results and revenue guidance.

Christopher A. Simon: It was another strong year for plasma after 43% growth in fiscal year 'twenty three.

Christopher A. Simon: Plasma revenue grew 6% in the fourth quarter and 14% in fiscal year 2024, driven by disposable volume and software.

Christopher A. Simon: North America disposables represented 85% of plasma revenue and grew 4% in the quarter and 13% for the year.

Christopher A. Simon: We recently completed the successful limited market release of our new Express Plus technology with more than 60,000 real world collections. We are now initiating full market release in the U.S. This technology is making our customers meaningfully faster, and when combined with our bidirectionally connected NextLink DMS offers unmatched plasma center efficiency. Nexus with Persona remains unrivaled in enabling collectors to safely meet end market demand and lower cost per liter.

Christopher A. Simon: We recently completed the successful limited market release of our New Express plus technology with more than 60000 real world collections and we are now initiating full market release in the U S. This.

Christopher A. Simon: This technology is making our customers meaningfully faster and when combined with our bi Directionally connected next link Dms offers unmatched plasma center efficiencies.

Christopher A. Simon: Nexus with persona remains unrivaled and enabling enabling collectors to safely meet end market demand and lower cost per liter. We continued to enhance the nexus platform expanding its competitive advantage as the global industry standard for plasma collection, we are enthusiastic about the.

Christopher A. Simon: We continue to enhance the Nexus platform, expanding its competitive advantage as the global industry standard for plasma collection. We are enthusiastic about the opportunity to transition our Nexus customers to our latest technology and gain share. The Plasma Collections market remains robust, supported by strong end-market demand, frozen plasma inventory deficits, and a favorable collection environment. Excluding the effects of the CSL-US Transitional Supply Agreement, our core plasma business delivered an impressive 18% growth in fiscal year 2024, and we project additional growth of 8 to 12% in fiscal year 2025. We anticipate a 45% decline in CSL revenue from $155 million in fiscal year 2024 to approximately $85 million this year.

Christopher A. Simon: The transition of our <unk> customers to our latest technology and to gain share.

Christopher A. Simon: The plasma collections market remains robust supported by strong end market demand.

Christopher A. Simon: Frozen plasma inventory deficits and a favorable collections environment.

Christopher A. Simon: Excluding the effects of the CSL U S. Transitional supply agreement are core plasma business delivered an impressive 18% growth in fiscal year 2024, and we project additional growth of 8% to 12% in fiscal year 2025.

Christopher A. Simon: We anticipate a 45% decline in CSL revenue from $155 million in fiscal 2024 to approximately $85 million. This year. Therefore, our total plasma revenue guidance for fiscal year 2025 is anticipated to be in the range of negative three to six.

Christopher A. Simon: Therefore, our total plasma revenue guidance for fiscal year 2025 is anticipated to be in the range of negative 3 to 6. In Blood Center, we overcame significant geopolitical challenges to grow revenue 7% in the quarter and 1% for fiscal year 2024, driven by continued strength in our aparesis portfolio. Aphoresis revenue was up nearly 13% in the fourth quarter and 5% for the year.

Christopher A. Simon: Percent.

Christopher A. Simon: In Blood center, we overcame significant geopolitical challenges to grow revenue, 7% in the quarter and 1% for fiscal year 2024, driven by continued strength in our <unk> portfolio.

Christopher A. Simon: <unk> revenue was up nearly 13% in the fourth quarter and 5% for the year, both in the quarter and fiscal year 2024 growth was disproportionately driven by increasing disposable revenue across plasma collection centers in Egypt continued strengths in red cell collections in the U S.

Christopher A. Simon: Both in the quarter and fiscal year 2024, growth was disproportionately driven by increasing disposable revenue across plasma collection centers in Egypt, continued strength in red cell collections in the U.S., and strong demand for platelets across our key markets. Whole blood revenue declined 7% in the quarter and 9% in fiscal year 24, predominantly driven by lower volumes caused by our product rationalization efforts designed to preserve Blood Center's ability to generate durable contribution margin dollars and participate in our company-wide Due to portfolio rationalization, our Blood Center Fiscal Year 2025 revenue growth guidance is a year-over-year decline of 5 to 7 percent.

Christopher A. Simon: And strong demand for platelets across our key markets.

Whole blood revenue declined 7% in the quarter and 9% in fiscal year 'twenty four predominantly driven by lower volumes caused by our product rationalization efforts designed to preserve blood centers ability to generate durable contribution margin dollars and participate in our companywide margin.

Christopher A. Simon: <unk>.

Christopher A. Simon: Due to portfolio rationalization, our blood center in fiscal year 2025 revenue growth guidance is a year over year decline of 5% to 7%.

Christopher A. Simon: Our hospital business had strong results with revenue growth of 19% in the fourth quarter and 17% in fiscal year 2024, primarily driven by vascular closure and hemostasis management. Chemostasis management revenue grew 19% in the fourth quarter and 15% for the year, driven by strong utilization of Teg6S disposables, price increases, and continued growth of the US installed base. In the fourth quarter, we received FDA clearance for our global hemostasis heparin neutralization cartridge. This extends the capabilities of the TAG6S platform to serve fully heparinized patients in adult cardiovascular procedures and liver transplants in laboratory and point of care settings.

Our hospital business had strong results with revenue growth of 19% in the fourth quarter and 17% in fiscal year 2024, primarily driven by vascular closure and hemostasis management.

Christopher A. Simon: Hemostasis management revenue grew 19% in the fourth quarter and 15% for the year driven by strong utilization of TEG success disposables price increases and continued growth of the U S installed base in.

Christopher A. Simon: In the fourth quarter, we received FDA clearance for our global Hemostasis heparin neutralization cartridge.

Christopher A. Simon: This extends the capabilities of the TEG success platform to serve fully heparin Ais patients and adult cardiovascular procedures and liver transplants and laboratory and point of care settings. This is an important addition to our portfolio to increase adoption by helping clinicians improve patient outcomes and Stan.

Christopher A. Simon: This is an important addition to our portfolio to increase adoption by helping clinicians improve patient outcomes and standards of care. The rest of the blood management technologies franchise, which includes transfusion management and cell salvage, grew 7% in the fourth quarter and 6% for the year. Transfusion management was up due to the completion of customer implementations for both SafeTrace TX and BloodTrack, as well as growth in recurring maintenance revenue for both products. Growth in cell salvage was driven by strong utilization of disposable kits in the U.S., led by vascular closure. Interventional technologies grew 28% in the quarter and fiscal year 2024.

Christopher A. Simon: There's a cure.

Christopher A. Simon: The rest of the blood management technologies franchise, which includes transfusion management and cell salvage grew 7% in the fourth quarter and 6% for the year transfusion management was up due to the completion of customer implementations for both safe trace TX and blood track as well as growth in recurring maintenance revenue.

Christopher A. Simon: For both products.

Christopher A. Simon: Growth in cell salvage was driven by strong utilization of disposable kits in the U S.

Christopher A. Simon: Led by vascular closure interventional technologies grew 28% in the quarter and fiscal year 2024.

Christopher A. Simon: We continue to make progress penetrating the top 600 U.S. accounts to finish the year at nearly 80 percent penetration. We also benefit from improvements in utilization at existing IC and EP accounts. We are pleased to announce that we received U.S. FDA pre-market approval, for the upsized Vascade MZPXL mid-bore venous closure device, adding MVP XL to our products mix with 58% larger collagen plugs than MVP strengthens our unique proposition of reducing the time to ambulate total post procedure time, time to hemostasis and time to discharge eligibility, broadening our reach in these high growth markets with a novel solution to support emerging catheter based ablation technology.

Christopher A. Simon: We continue to make progress penetrating the top 600 U S accounts to finish the year at nearly 80% penetration. We also benefit from improvements in utilization at existing IC and <unk> accounts.

Christopher A. Simon: We are pleased to announce that we received U S FDA pre market approval for.

Christopher A. Simon: The Upsized vast gave MVP XL mid bore venous closure device.

Adding MVP EXL to our product mix with 58% larger collagen plugged in MVP strengthens our unique proposition of reducing the time to ambulate total post procedure time time to hemostasis and time to discharge eligibility broadening our reach in these high growth markets with them.

Christopher A. Simon: Novel solution to support emerging catheter based ablation technologies.

Christopher A. Simon: We will be initiating a limited market release in the coming weeks and look forward to a full market release later this year. The Vascade International launch is progressing as expected, contributing approximately 300 basis points of revenue growth in the quarter. In Japan, we have expanded our presence to more than 90 accounts.

Christopher A. Simon: We will be initially initiating a limited market release in the coming weeks and look forward to full market release later this year.

Christopher A. Simon: The rest of that landscape international launch is progressing as expected contributing approximately 300 basis points of revenue growth in the quarter in Japan, we have expanded our presence to more than 90 accounts, while European penetration has been more gradual we are making meaningful progress and plan to expand into.

Christopher A. Simon: While European penetration has been more gradual, we are making meaningful progress and plan to expand into more countries in fiscal year 2025. Now, let's move on to our newly acquired products. Opsense Pressure Sensing Guidewire technology delivered nearly $10 million in revenue in the fourth quarter. Over the past several months, we cross-trained our expanded U.S. sales team, and in April, we launched both OptiWire and SavvyWire throughout our U.S. commercial channels. These products provide meaningful benefits during PCI and TAVR procedures.

Christopher A. Simon: More countries in fiscal year 2025.

Christopher A. Simon: Now, let's move on to our newly acquired products <unk> pressure sensing Guidewire technology delivered nearly $10 million in revenue in the fourth quarter.

Christopher A. Simon: Over the past several months, we cross trained our expanded U S sales team and in April we launched both op to wire and savvy wire throughout our U S commercial channels. These.

Christopher A. Simon: These products provide meaningful benefits during PCI and to have our procedures and we are excited to make them available to our interventional cardiology customers.

Christopher A. Simon: And we are excited to make them available to our interventional cardiology customers. We are also enthusiastic about the addition of the Enzo ETM esophageal cooling device acquired with Attune Medical. Enzo ETM provides significant protection against esophageal injury and, in combination with radiofrequency ablation, provides a more cost-effective solution to atrial fibrillation ablation procedures compared to other emerging ablation procedures.

Christopher A. Simon: We are also enthusiastic about the addition of the Enzo ATM esophageal cooling device acquired with Attune medical Enzo.

Christopher A. Simon: Enzo ATM provides significant protection against this offer GL injury and in combination with radiofrequency ablation provides a more cost effective solution to atrial fibrillation ablation procedures compared to other emerging ablation procedures.

Christopher A. Simon: With an addressable market of approximately $300 million, growing in the low teens, we anticipate esophageal protection to become the standard of care used in conjunction with radiofrequency ablation procedures. We look forward to continued revenue growth acceleration from our expanded U.S. commercial launch in June. Our development and commercialization strategies are working. We continue to advance our leadership in blood management technologies by capitalizing on significantly expanded R&D and clinical capabilities to further develop new and existing products while we expand commercially to cover the majority of the top accounts in the $700 million underpenetrated TEMP.

Christopher A. Simon: With an addressable market of approximately $300 million growing in the low teens, we anticipate a soft gel protection to become the standard of care used in conjunction with radiofrequency ablation procedures. We look forward to continued revenue growth acceleration from our expanded U S commercial launch in June.

Christopher A. Simon: Our development and commercialization strategies are working we continue to advance our leadership and blood management technologies by capitalizing on significantly expanded R&D and clinical capabilities to further develop new and existing products, while we expand commercially to cover the majority of the topic.

Christopher A. Simon: <unk> in the $700 million underpinned Underpenetrated Tam.

Christopher A. Simon: In interventional technologies, we are committed to commercial execution, launching our recent portfolio additions and augmenting growth through R&D and M&A. With the absence and attuned acquisitions, we expect Hospital will become our largest business unit this year, driving disproportionate growth and Margin Expansion. We expect Hospital to report revenue growth of 27 to 32% in fiscal year 2025.

Christopher A. Simon: In intervention technologies, we are committed to commercial execution launching our recent portfolio additions and augmenting growth through R&D and M&A.

Christopher A. Simon: With the <unk> and <unk> acquisitions, we expect hospital will become our largest business unit this year driving a disproportionate growth.

Christopher A. Simon: And margin expansion.

Christopher A. Simon: We expect hospital reported revenue growth of 27% to 32% in fiscal year 2025, excluding.

Christopher A. Simon: Revenue from recent acquisitions, we expect this business to deliver 13% to 16% organic revenue growth.

Christopher A. Simon: Excluding revenue from recent acquisitions, we expect this business to deliver 13-16% organic revenue growth. Overall, we expect another strong year as we evolve our portfolio to accelerate revenue growth and margin expansion. For the total company, we expect reported revenue growth to be in the range of 5 to 8 percent. Excluding recent acquisitions and FX, we expect total company organic growth to be flat to 3% in fiscal year 2025.

Christopher A. Simon: Overall, we expect another strong year as we evolve our portfolio to accelerate revenue growth and margin expansion for the total company. We expect reported revenue growth to be in the range of 5% to 8%.

Christopher A. Simon: Excluding recent acquisitions and FX, we expect total company organic growth to be flat to 3% in fiscal year 2025.

Christopher A. Simon: In closing, I want to express my gratitude to our customers and our shareholders for their continued support, and to the Haemonetics employees worldwide for their exemplary work to advance our mission and their dedication to our customers. Together, we continue to build our momentum towards a very bright future. Now I'll pass it over to James to discuss the rest of our financial performance and fiscal year 2025 guidance. Thank you, Chris, and good morning, everyone.

Speaker Change: In closing I want to express my gratitude to our customers and our shareholders for their continued support.

Speaker Change: And the human <unk> employees worldwide for their exemplary work to advance our mission and their dedication to our customers together, we continue to build our momentum towards a very bright future.

Speaker Change: Now I'll pass it over to James to discuss the rest of our financial performance in fiscal year 2025 guidance.

James: Thank you, Chris and good morning, everyone.

James Derecka: As I reflect on my two-year anniversary at Haemonetics, I'm excited about the opportunities ahead of us. Over the past two years, we have navigated shifting dynamics and supported a delayed CSL transition while continuing to grow our margins, invest in our business, enhance our solutions, and acquire new, high-growth products. While not all of our efforts are reflected in our results immediately, especially when combined with the extended dilutive impacts of the U.S. transitional agreement in plasma, I am highly optimistic about our ability to accelerate revenue growth and expand our gross and operating margins over the next several years.

James: As I reflect on my two year anniversary at <unk> X I am excited about the opportunities ahead of us.

James: Over the past two years, we have navigated shifting dynamics and supported a delayed CSL transition, while continuing to grow our margins invest in our business enhance our solutions and acquire new high growth products.

James: While not all of our efforts are reflected in our results immediately, especially when combined with the extended dilutive impacts of the U S transitional agreement in plasma.

Speaker Change: Hi, I'm highly optimistic about our ability to accelerate revenue growth and expand our gross and operating margins over the next several years.

James Derecka: We finished our fourth quarter with an adjusted gross margin of 54%, an increase of 220 basis points compared with the prior year. Adjusted gross margin for fiscal 24 was 54.4%, an increase of 120 basis points when compared with the same period of the prior year.

Speaker Change: We finished our fourth quarter with an adjusted gross margin of 54% an increase of 220 basis points compared with the prior year <unk>.

Speaker Change: Adjusted gross margin for fiscal 'twenty, four was 54, 4% an increase of 120 basis points when compared with the same period of the prior year.

James Derecka: The continuous transformation of our portfolio played a disproportionate role in driving gross margin expansion in our results, with both product mix and volume contributing meaningfully. However, these benefits were partially offset by changes in FX, both in the quarter and fiscal 24, and $6.8 million of cumulative charges related to a voluntary product recall in our whole blood business. Adjusted operating expenses in the fourth quarter were $120.9 million, an increase of $17 million, or 17 percent, compared with the fourth quarter of the prior year.

The continuous transformation of our portfolio played a disproportionate role in driving gross margin expansion and our results with both product mix and volume contributing meaningfully.

Speaker Change: These benefits were partially offset by changes in FX, both in the quarter and fiscal 'twenty four.

Speaker Change: And $6 8 million of cumulative charges related to a voluntary product recall in our whole blood business.

Speaker Change: Adjusted operating expenses in the fourth quarter were $120 9 million, an increase of $17 million or 17% compared with the fourth quarter of the prior year.

James Derecka: As a percentage of revenue, adjusted operating expenses increased by 120 basis points to 35.2%. The increase in adjusted operating expenses in the quarter was due to several factors. First, the integration of Opsense into our product portfolio. Given that this was the first full quarter with Opsense, the anticipated benefits of Synergies and Scale have not yet been fully realized. We expect this to evolve as we advance our commercial initiatives across our key strategic U.S. accounts beginning in fiscal 2025. Another factor was elevated freight costs, primarily attributed to macroeconomic hurdles affecting logistics and constraints in our plasma inventory levels.

Speaker Change: As a percentage of revenue adjusted operating expenses increased by 120 basis points to 35, 2%.

Speaker Change: The increase in adjusted operating expenses in the quarter was due to several factors.

Speaker Change: First the integration of <unk> into our product portfolio.

Speaker Change: Given that this was the first full quarter with <unk>.

Speaker Change: The anticipated benefits subsidiary <unk> and scale have not yet been fully realized we expect this to evolve as we advance our commercial initiatives across our key strategic U S accounts beginning in our fiscal 2025.

Speaker Change: Another factor was elevated freight costs, primarily attributed to macro economic hurdles affecting logistics and constraints and our plasma inventory levels.

James Derecka: We are in a much better inventory position today and do not anticipate similar levels of expedited freight going forward. Finally, we also had higher performance-based compensation expenses, along with continuous growth investments in our business. Adjusted operating expenses for fiscal 24 were $435.7 million, an increase of $32.1 million, or 8% compared with the prior year. As a percentage of revenue, adjusted operating expenses decreased by 120 basis points to 33.3%.

Speaker Change: We are in a much better inventory position today and do not anticipate similar levels of expedited freight going forward.

Speaker Change: Finally, we also had higher performance based compensation expenses, along with continuous growth investments into our business.

Speaker Change: Adjusted operating expenses for fiscal 'twenty, four were $435 7 million, an increase of $32 1 million or 8% compared with the prior year.

Speaker Change: As a percentage of revenue adjusted operating expenses decreased by 120 basis points to 33, 3%.

James Derecka: In fiscal 2024, a combination of operating leverage improvements and savings from our Operational Excellence Program more than offset increases in adjusted operating expenses and growth investment. These investments are primarily aimed at advancing innovation and expanding market share in our hospital business, and are expected to further enhance our operating leverage in the coming years. For the fourth quarter, adjusted operating income was $64.6 million, an increase of $10.7 million, or 20%, and our adjusted operating margin was 18.8%.

Speaker Change: In fiscal 2020 for a combination of operating leverage improvements and savings from our operational excellence program more than offset increases in adjusted operating expenses and growth investments.

Speaker Change: These investments are primarily aimed at advancing innovation and expanding market share in our hospital business and are expected to further enhance our operating leverage in the coming years.

Speaker Change: Fourth quarter adjusted operating income was $64 6 million, an increase of $10 7 million or 20% and our adjusted operating margin was at 18, 8%.

James Derecka: Our adjusted operating margin in the fourth quarter had approximately 200 basis points of impact from one-time items within our adjusted operating expenses. Adjusted operating income for fiscal 2024 was $276.5 million, an increase of $58.1 million or 27% compared with the prior year at 21.1% of revenue. The 240 basis points expansion in the adjusted operating margin in Fiscal 24 was due to improving leverage of our business, coupled with approximately $5 million in net savings from OEP. The adjusted income tax rate was 21% for the fourth quarter and 23% for fiscal year 24, compared with 23% and 24% for the respective periods of the prior year.

Speaker Change: Our adjusted operating margin in the fourth quarter had approximately 200 basis points of impact from onetime items within our adjusted operating expenses.

Speaker Change: Adjusted operating income for fiscal 2024 was $276 5 million.

Speaker Change: An increase of $58 1 million or 27% compared with the prior year at 21, 1% of revenue.

Speaker Change: The 240 basis points expansion in the adjusted operating margin in fiscal 'twenty four was due to improving leverage of our business, coupled with approximately $5 million and net savings from OE P.

Speaker Change: The adjusted income tax rate was 21% for the fourth quarter and 23% for fiscal year, 'twenty, four compared with 23% and 24% for the respective periods of the prior year.

James Derecka: Fourth quarter adjusted net income was $46 million, up 6.8 million, or 17%, and adjusted earnings per diluted share was 90 cents, up 17% when compared with the fourth quarter of fiscal year 2023. Adjusted net income for fiscal year 24 was $203.6 million, up $47.9 million, or 31%. And adjusted earnings per diluted share was $3.96, up 31% when compared with the prior year. Changes in the adjusted income tax rate, interest expense, and FX had a $0.02 negative impact on the fourth quarter and a $0.05 negative impact on the full year adjusted earnings per diluted share when compared with the prior year.

Speaker Change: Fourth quarter, adjusted net income was $46 million.

Speaker Change: Up $6 8 million or 17% and adjusted earnings per diluted share was <unk> 90.

Speaker Change: Up 17% when compared with the fourth quarter of fiscal year 2023.

Speaker Change: Adjusted net income for fiscal year, 'twenty, four was $203 6 million up $47 9 million or 31% and adjusted earnings per diluted share was $3 96.

Speaker Change: Up 31% when compared with the prior year.

Speaker Change: Changes in the adjusted income tax rate interest expense and FX had a <unk> <unk> negative impact on the fourth quarter and a <unk> <unk> negative impact on the full year adjusted earnings per diluted share when compared with the prior year.

James Derecka: Turning now to Select Balance Sheet and Cash Flow Highlights. Cash on hand at the end of our fiscal 2024 was $179 million, a decrease of $106 million since the beginning of this fiscal year, primarily due to the option acquisition, which was financed through a combination of cash on hand and a revolving credit facility. In our fourth quarter, cash flow from operating activities was $64 million, and free cash flow before restructuring and restructuring-related costs was $59 million. Cash flow in the quarter was primarily driven by net income and benefits from working capital. In fiscal year 24, cash flow from operations was $182 billion, primarily attributed to net income partially offset by increased inventory.

Speaker Change: Turning now to select balance sheet and cash flow highlights.

Speaker Change: Cash on hand at the end of our fiscal 2024 was $179 million.

Speaker Change: A decrease of $106 million since the beginning of this fiscal year, primarily due to the <unk> acquisition, which was financed through a combination of cash on hand, and our revolving credit facility.

Speaker Change: And our fourth quarter cash flow from operating activities was $64 million and free cash flow before restructuring and restructuring related costs was $59 million.

Speaker Change: Cash flow in the quarter was primarily driven by net income and benefits from working capital.

Speaker Change: In fiscal year 'twenty for cash flow from operations was 182 billion.

Speaker Change: Primarily attributed to net income partially offset by increased inventory.

James Derecka: After taking into account $64 million in CapEx, net of proceeds from the sale of property, plant, and equipment, we had $127 million of free cash flow before restructuring and restructuring-related costs. As you will recall, we anticipated our fiscal year 2024 free cash flow before restructuring and restructuring-related costs to be in the range of $160 to $180 million. The outlook we have provided overestimates the impact of certain add-backs related to restructuring and restructuring-related spend.

Speaker Change: After taking into account $64 million in Capex net of proceeds from the sale of property plant and equipment, we had $127 million of free cash flow before restructuring and restructuring related costs.

Speaker Change: As you will recall, we anticipated our fiscal year 2020 for free cash flow before restructuring and restructuring related costs to be in the range of $160 million to $180 million.

Speaker Change: The outlook, we had provided overestimated the impact of certain add backs related to restructuring and restructuring related spend going forward, we will provide guidance for free cash flow.

James Derecka: Going forward, we will provide guidance for free cash flow. We also have some important updates about our credit facility. In April, we refinanced our existing credit facility with a new $1 billion five-year facility comprised of a $250 million unsecured term loan A and a $750 million unsecured revolving credit facility with a current drawn balance of about $230 million used to help fund our recent acquisitions of Opsense and Attune Medical. Our new credit facility includes a $330 million increase in our revolver capacity and provides enhanced covenant flexibility, a Haemonetics is currently utilizing two interest rate swaps with a blended fixed interest rate of 4.12% and a current notional value of $211 million to mitigate interest rate risk.

Speaker Change: We also have some important updates about our credit facility.

Speaker Change: In April we refinanced our existing credit facility with a new 1 billion dollar five year facility comprised of a $250 million unsecured term loan a.

Speaker Change: And a $750 million unsecured revolving credit facility with a current drawn balance of about $230 million used to help fund our recent acquisitions of <unk> and attuned medical.

Speaker Change: Our new credit facility includes a $330 million increase in our revolver capacity and provides enhanced covenant flexibility a testament to the strength of our balance sheet and credit profile.

Speaker Change: <unk> is currently utilizing two interest rate swaps with a blended fixed interest rate of four 1%, 2% and a current notional value of $211 million to mitigate interest rate risk <unk>.

James Derecka: These swaps will mature in June 2025, and we have plans to evaluate and determine the appropriate risk management strategy thereafter. Taking into account our $500 million unsecured convertible bonds due March 26, our net leverage ratio was at approximately 2.1 times EBITDA at the end of our fourth quarter, increasing to approximately 2.4 times EBITDA following the close of Attune Medical on April 1. With our new credit agreement and our ability to generate strong EBITDA and free cash flow, we estimate our available capital capacity to be in excess of $1 billion by the end of Fiscal 25 and up to about $2 billion by the end of Fiscal 26, after nearly $500 million of capital we have already allocated to M&A and share buybacks since we issued our long-range plan in June of 2022.

Speaker Change: These swaps will mature in June of 2025, and we have plans to evaluate and determine the appropriate risk management strategy thereafter.

Speaker Change: Taking into account our $500 million unsecured convertible bonds. Due March 26, our net leverage ratio was at approximately two one times EBITDA at the end of our fourth quarter, increasing to approximately two four times EBITDA following the close.

Speaker Change: Tuned medical on April one.

Speaker Change: With our new credit agreement and our ability to generate strong EBITDA and free cash flow, we estimate our available capital capacity to be in excess of $1 billion by the end of fiscal 'twenty, five and up to about $2 billion by the end of fiscal 'twenty six after nearly 500.

Speaker Change: Of capital, we have already allocated to M&A and share buybacks since we issued our long range plan in June of 2022.

James Derecka: We plan to continue to leverage our access to capital to further expand our product portfolio and lay the foundation for additional growth, including additional strategic token acquisitions for our interventional technologies portfolio in the near term. Before I discuss the rest of our fiscal year 2025 guidance, I'd like to reflect on where we are in our transformational growth journey. In the first half of our long-range plan, we delivered revenue and adjusted earnings for diluted share growth that exceeded our expectations. Our success can be attributed to several key factors. First, unprecedented volume growth in plasma collections driven by a rebound from the COVID-19 pandemic.

Speaker Change: We plan to continue to leverage our access to capital to further expand our product portfolio and lay the foundation for additional growth, including additional strategic tuck in acquisitions for our interventional technologies portfolio in the near term.

James Derecka: The volume growth we experienced in the first half of our plan was significantly higher than our original projection. Second, a delayed transition of CSL's U.S. disposable business, resulting in the retention of the majority of their U.S. volume through the end of our fiscal year 24. This provided us with additional excess cash flow we used to fund recent acquisitions in hospitals. Third, strong commercial execution in vascular closure, surpassing our original deal model and enabling deeper penetration into the top 600 strategic accounts in the U.S. with the help of a series of additional strategic investments focused on broadening our commercial footprint. And finally, overcoming substantial macroeconomic headwinds, including approximately 700 basis points of margin pressure stemming from inflationary headwinds, supply chain disruptions, and volatility in foreign exchange rates, among other challenges.

Speaker Change: Before I discuss the rest of our fiscal year 2025 guidance I'd like to reflect on where we are and our transformational growth journey.

Speaker Change: In the first half of our long range plan, we delivered revenue and adjusted earnings per diluted share growth that exceeded our expectations. Our success can be attributed to several key factors first unprecedented volume growth in plasma collections driven by a rebound from the COVID-19 pandemic.

Speaker Change: The volume growth, we experienced in the first half of our plan was significantly higher than our original projections.

Speaker Change: Delayed transition of Csl's U S disposable business, resulting in the retention of the majority of their U S volume through the end of our fiscal year 'twenty four.

This provided us with additional excess cash flow, we used to fund recent acquisitions and hospital.

Speaker Change: Third strong commercial execution in vascular closure, surpassing our original deal model and enabling deeper penetration into the top 600 strategic accounts in the U S. With the help of a series of additional strategic investments focused on broadening our commercial footprint.

Speaker Change: And finally, overcoming substantial macroeconomic headwinds, including approximately 700 basis points of margin pressure stemming from inflationary headwinds supply chain disruptions and volatility in foreign exchange rates among other challenges.

James Derecka: While revenue and adjusted EPS growth were robust and ahead of our plan, the combination of underlying drivers and actions we took to support this growth temporarily dampened our margin expansion plans, particularly in the adjusted gross margin. As we enter the second half of our LRP, we plan to accelerate our margin expansion. Our LRP goal of the high 20s adjusted operating margin in fiscal 26 is intact and will be driven by approximately 400 to 600 basis points of projected expansion in our adjusted gross margins, coupled with improving operating leverage in our business. Our strategy is clear and includes benefits from volume, mix, price, and higher operating leverage. In hospitals, we will leverage our commercial footprint to promote an expanded hospital portfolio, requiring minimal additional investment.

Speaker Change: While revenue and adjusted EPS growth were robust and ahead of our plan the combination of underlying drivers and actions. We took to support this growth temporarily dampened our margin expansion plans, particularly in the adjusted gross margin.

Speaker Change: As we enter the second half of our LLP.

Speaker Change: We plan to accelerate our margin expansion, our <unk> goal of the high Twenty's adjusted operating margin in fiscal 'twenty six is intact and will be driven by approximately 400 to 600 basis points of projected expansion in our adjusted gross margins coupled with.

Speaker Change: Moving operating leverage in our business.

Our strategy is clear and includes benefits from volume mix price and higher operating leverage.

Speaker Change: And hospital, we will leverage our commercial footprint to promote an expanded hospital portfolio requiring minimal additional investments recent acquisitions of <unk> and a tune medical will further expedite our transition towards high growth high margin products.

James Derecka: Recent acquisitions of Opsense and Attune Medical will further expedite our transition toward high-growth, high-margin products. In plasma, changes in customer mix and technology upgrades will continue to improve margins and drive growth on top of collections momentum. CSL's U.S. supply agreement has a dilutive impact on our corporate gross margins.

Speaker Change: In plasma changes in customer mix and technology upgrades will continue to improve margins and drive growth on top of collections momentum.

Speaker Change: <unk> U S supply agreement has a dilutive impact on our corporate gross margins as such continued transition away from our Pcs two devices to the latest Nexus with persona technology will drive meaningful improvements.

James Derecka: As such, continued transition away from our PCS2 devices to the latest Nexus with Persona technology will drive meaningful improvement. In Blood Center, we continue to rationalize parts of the business, predominantly in whole blood, with no impact on contribution margin dollars while significantly improving its contribution margin percentage. And lastly, aligned with our commercial objectives, we are pursuing additional improvements within our operations, including additional OEP savings, the continued rationalization of the manufacturing footprint, and addressing the remainder of stranded costs and inefficiencies from CSL's delayed transition, which will help generate additional cost savings and ensure increased productivity as we move forward with our plan in fiscal year 2025.

Speaker Change: In Blood Center, we continue to rationalize parts of the business predominantly in whole blood with no impact on contribution margin dollars, while significantly improving its contribution margin percent.

Speaker Change: And lastly, align with our commercial objectives, we are pursuing additional improvements within our operations, including additional OAP savings. The continued rationalization of the manufacturing footprint and addressing the remainder of stranded costs and inefficiencies.

Speaker Change: From CSL is delayed transition, which will help generate additional cost savings and ensure increased productivity as we move forward with our plan.

Speaker Change: In fiscal year 2025, we expect the adjusted operating margin to be in the range of 23% to 24% representing a substantial installment towards our <unk> goals.

James Derecka: We expect the Adjusted Operating Margin to be in the range of 23 to 24 percent, representing a substantial installment towards our LRP goals. Our fiscal year 25 guidance includes approximately $15 million of gross savings from our OEP program, with about $10 million of that benefiting our adjusted operating margin. Given the timing of specific cost savings initiatives and business opportunities outlined in our plan, we anticipate that the operating margin improvement outlined in our fiscal year 2025 guidance will be back-end loaded with gradual improvements throughout the year.

Speaker Change: Our fiscal year 'twenty <unk> guidance includes approximately $15 million of gross savings from our ODP program with about $10 million of that benefiting our adjusted operating margins.

Speaker Change: Given the timing of specific cost savings initiatives and business opportunities outlined in our plan, we anticipate that the operating margin improvement outlined in our fiscal year 2025 guidance will be backend loaded with gradual improvements throughout the year.

James Derecka: Our adjusted earnings per diluted share guidance for fiscal year 2025 is a range of $4.45 to $4.75, or 12 to 20% growth when compared with fiscal year 2024. At the midpoint of our guidance range, we anticipate approximately 30 cents of headwind from interest expense, FX, income tax, and share count, with interest expense being responsible for more than half of that. CSL's transitional agreement represents just under 10% of the midpoint of our adjusted earnings for diluted share guidance for fiscal year 25, compared with about 20% of our adjusted EPS in fiscal year 24.

Speaker Change: Our adjusted earnings per diluted share guidance for fiscal year 2025, as a range of $4 45 to.

Speaker Change: To $4 75.

Speaker Change: Or 12% to 20% growth when compared with fiscal year 'twenty four.

Speaker Change: At the midpoint of our guidance range, we anticipate approximately 30 <unk> of headwind from interest expense FX income tax and share count with interest expense being responsible for more than half of that.

Speaker Change: CSL is transitional agreement represents just under 10% of the midpoint of our adjusted earnings per diluted share guidance in fiscal year, 'twenty five compared with about 20% of our adjusted EPS in fiscal year 'twenty four.

Operator: Our ability to generate cash flow is strong, and we expect our free cash flow in fiscal year 25 to be in the range of $130 million to $180 million. Our fiscal year 24 performance underscores our resilience, agility, and commitment to our long-range plan as we continue to execute our initiatives and drive sustainable growth both on the top and bottom lines. Our capital allocation priorities remain unchanged, and we will continue to deploy cash to accelerate our growth momentum, particularly as we further expand our product portfolio and look for opportunities to increase our returns through opportunistic share buybacks and debt repayments.

Speaker Change: Our ability to generate cash flow is strong and we expect our free cash flow in fiscal year 'twenty five to be in the range of $130 million to $180 million.

Speaker Change: Yes.

Speaker Change: Our fiscal year 'twenty for performance underscores our resilience agility.

Speaker Change: <unk> two our long range plan as we continued to execute our initiatives and drive sustainable growth both on the top and bottom line.

Speaker Change: Our capital allocation priorities remain unchanged and we will continue to deploy cash to accelerate our growth momentum, particularly as we further expand our product portfolio and look for opportunities to increase our returns through opportunistic share buybacks and debt repayment.

Operator: With a clear vision, a well-defined plan, and a dedicated team, I'm confident in our ability to deliver long-term value. We look forward to updating you on our progress in the quarters to come. This concludes our remarks for today, and now I'll turn it back to the operator for Q&A. Thank you. At this time, we will conduct the question and answer session. As a reminder, to ask a question, you will need to press star one on your telephone and wait for your name to be announced.

Speaker Change: With a clear vision, a well defined plan and a dedicated team I am confident in our ability to deliver long term value.

Speaker Change: We look forward to updating you on our progress in the quarters to come.

Speaker Change: This concludes our remarks for today and now I'll turn it back to the operator for Q&A.

Operator: To withdraw your questions, please press star 11 again. Please stand by while we compile the Q&A roster. Our first question comes from Anthony Petrone at Mizuno Group. Your line is open.

Speaker Change: Thank you.

Speaker Change: We will conduct a question and answer session. As a reminder to ask a question you will need to press star one on your telephone and wait for your name to be announced.

Speaker Change: To withdraw your question. Please press star one again, please standby, while we compile the Q&A roster.

Speaker Change: All right.

Speaker Change: First question comes from Anthony Petrone Aetna Group Your line is open.

Anthony Charles Petrone: Thank you, and congratulations on a strong end to the year here, and apologies for the noise. Chris, maybe I'll start with plasma, and then I'll have a couple of thoughts for Jim on margin. Let me just see the confidence here in the CSL ramp down. How much communication between Haemonetics and CSL is needed just to give you that confidence?

Anthony Charles Petrone: Thank you and congratulations on a strong into the year here and apologies for the noise.

Anthony Charles Petrone: Chris maybe I'll start with <unk>.

Anthony Charles Petrone: Plasma and then I'll have a couple of follow ups to Jim on margins.

Anthony Charles Petrone: Maybe just the confidence here in the CSL ramp down how much communication between <unk> and CSL just to give you that confidence.

Christopher A. Simon: Uh, is that, you know, it's down 45 and then should we expect a similar phase out in the following year? And then the second one on plasma is just the underlying market seems to still be in that low double-digit range. And to give you a little bit of the, you know, drivers that you're seeing there, it seems like there's still good, healthy demand from the fractionators to continue to build inventory. Yeah, Anthony, thanks for the questions. Regarding plasma, I'll kind of take them in reverse order.

Anthony Charles Petrone: With that it's down 45% and then should we expect a similar phase out.

Anthony Charles Petrone: And the following year.

Anthony Charles Petrone: And then the.

Anthony Charles Petrone: The second one on plasma is just the underlying market seems to still be in that low double digit range can you give us a little bit of the.

Anthony Charles Petrone: Drivers that youre seeing there it seems like there is still good.

Anthony Charles Petrone: Good healthy demand from the fractionator is to continue to build inventory.

Anthony Charles Petrone: Yes.

Speaker Change: Yes, Anthony Thanks for the questions.

Anthony Charles Petrone: Regarding plasma.

Christopher A. Simon: You know, we're delighted to have served the industry through a period of unprecedented robust growth, 43% a year ago, 18% this past year, and we're still projecting high single-digit, low double-digit growth of the basic business. So, you know, there's a number of factors there. Collectors are at different stages of replenishing their inventory. It's a very conducive environment to be collecting, particularly here in the States, although we're seeing equal growth now outside the U.S., which is fun.

Anthony Charles Petrone: Kind of take them in reverse order.

Anthony Charles Petrone: We're delighted to have serve the industry through.

Anthony Charles Petrone: <unk>.

Anthony Charles Petrone: Unprecedented robust growth, 43% a year ago, 18% this past year, and we're still projecting high single low double digit growth.

Anthony Charles Petrone: The basic business so yes.

Anthony Charles Petrone: Number of factors there.

Anthony Charles Petrone: Collectors are at different stages of replenishing their inventory.

Anthony Charles Petrone: A very conducive environment to be collecting particularly here in the states, although were seeing equal growth now outside the U S which is fun.

Christopher A. Simon: And our technology is proving itself in real-time collections. The combination of Persona and Express Plus is unrivaled, and it's driving a level of productivity from our Nexus customers that's really, you know, fun to watch and an exciting lift for us. With regard to the committed volumes from CSL, we've put into our guidance that approximately $85 million is a commitment between the two companies. Obviously, that will leave us with some of their business at the end of our fiscal year. What happens in FY26, I mean, we'll guide you to that when we're ready.

Anthony Charles Petrone: And our technology is proving itself in real time collections to combination of.

Anthony Charles Petrone: Persona and express plus is unrivaled and it's driving a level of productivity from our <unk> customers.

Anthony Charles Petrone: Really.

Anthony Charles Petrone: Fun to watch and then citing lift for us with regards to the committed volumes from CSL, what we've put into our guidance that approximately $85 million is a commitment between the two companies.

Anthony Charles Petrone: Obviously that will leave us with some of their business at the end of our fiscal year, what happens in FY 'twenty six.

Anthony Charles Petrone: We will guide to that when we're ready and obviously if theres changes this year, we will update.

Christopher A. Simon: And obviously, if there are changes this year, we will update to be clear about that. But, you know, one of the things we cared a lot about, you know, in taking the long view and being there for all of our customers, we wanted, you know, certainty and continuity. And what we have here is a gradual ramp-down, which meets both companies' needs, and it gives us the ability to do what we are doing across the board, which is, you know, scale our business, address stranded costs, create capacity for additional product conversions, and share gains elsewhere in the business.

Anthony Charles Petrone: To be clear about that but.

Anthony Charles Petrone: One of the things, we cared a lot about it.

Anthony Charles Petrone: Taking the long view and being there for all of our customers that we want to see.

Anthony Charles Petrone: Certainty.

Anthony Charles Petrone: Continuity and what we have here is a gradual ramp down which meets both companies needs and it gives us the ability to do what we are doing across the board which is.

Anthony Charles Petrone: Scale, our business address stranded cost create capacity for additional product conversions and share gains elsewhere in the business and what we have and what's reflected in this guidance allows us to do that and more.

Christopher A. Simon: And what we have and what's reflected in this guidance allows us to do that and more. That's very helpful. And just quickly for Jim, on margin, a nice step up 23 to 24% guidance that the LRP calls for in the high 20s.

Speaker Change: That's very helpful and just quickly Jim on margin nice step up 23% to 24% guidance.

Speaker Change: The LLP call score.

Anthony Charles Petrone: So maybe just a little bit of visibility on the drivers this year. How much is restructuring versus mixed price? And what is the remainder to get you to that LRP target? Thanks again.

Speaker Change: Slide <unk>.

Speaker Change: So maybe just a little bit.

Speaker Change: Visibility.

Speaker Change: On the drivers this year how much is it.

Speaker Change: Restructuring versus mixed price.

Speaker Change: And what is the remainder of that get you to that LLP target, Thanks, again and congratulations.

Christopher A. Simon: Congratulations. Yeah, let me start, Anthony. It's Chris, because James is going to give you the breakdown and quantify this.

Christopher A. Simon: Yes, let me start Anthony it's Chris James is going to give you the breakdown and quantify this but I think what you are observing here both in our performance and our guidance is our RP at work and at the core of this is meaningful changes to the composition of our product portfolio.

Christopher A. Simon: But I think what you're observing here, both in our performance and our guidance, is our LRP at work, and at the core of this are meaningful changes to the composition of our product portfolio. So when we walk through this, we've got a hospital business with reported growth in our guidance of 30%, right? It's going to be a $600 million business, this is our anticipation, this year. And, you know, a much higher gross margin. It's a function of volume, mix, and price that all lead to operating leverage, given the investments we've already made in our development and commercial footprint. So the hospital is the disproportionate contributor.

Christopher A. Simon: So when we walk through this we've got a hospital business with reported growth in our guidance.

Christopher A. Simon: 30% is going.

Christopher A. Simon: Going to be a $600 million business. It was our anticipation this year and much higher gross margin.

Christopher A. Simon: Function of volume and mix and price that all leased operating leverage given the investments we've already made in our development and commercial footprint. So hospital is the disproportionate contributor its benefits that we've got a tune in <unk> since coming into the mix. So that's all very exciting.

Christopher A. Simon: It benefits that we've got, you know, a tune and percents coming into the mix. So, you know, that's all very exciting for us and, you know, leads us. With regard to plasma, it's also a mixed story, right?

Christopher A. Simon: For us and leads us with regards to plasma. It's also a mixed story right as we transition off the U S. Pcs to supply agreement converting other customers upgrading kind of advancing our footprint with Nexus with persona with express plus is high octane fuel and really power.

Christopher A. Simon: As we transition off the U.S. PCS2 supply agreement, converting other customers, upgrading, kind of advancing our footprint with, you know, Nexus, Persona, Express Plus is high-octane fuel and really powers us. We're delighted that the blood center business is joined in the mix here as well. The portfolio rationalization, you know, we'll cut back on, you know, revenue dollars. That's implied in our guidance. But the contribution, the dollars coming off of that business and the margin associated with it, the percentages, are much improved.

Christopher A. Simon: US we're delighted that the blood center business has joined in the mix here as well the portfolio rationalization will cut back on the revenue dollars that's implied in our guidance, but the contribution the contribution dollars coming off of that business and the margin associated that percentages much improved.

Christopher A. Simon: So, you know, and then to your question directly around productivity, smaller total dollars, but a much greater pass-through as we embed operational excellence into the fabric of the organization. So I'll let James quantify it a bit further. But you are observing our plans, and the second half of this LRP is going to be defined by margin expansion and growth. Yeah, thanks, Chris.

Christopher A. Simon: And then to your question directly around productivity.

Christopher A. Simon: Smaller total dollars, but a much greater pass through as we embed operational excellence into the fabric of the organization. So I'll, let James quantify it a bit further but you are observing our plans in the second half of this LLP is going to be defined by margin expansion and growth.

Christopher A. Simon: And I think, you know, for fiscal year 2025, I'll really start more from a quantitative aspect. As I said in the remarks, it's going to be four to 600 basis points of gross margin improvement that's going to get us to our LRP target. And we're going to see a nice piece of that come through in fiscal 25. So, you know, it'll be gradual throughout the year, with a little bit more towards the end of the year. That sets the stage for what Chris will talk about.

James: Yes, Thanks, Chris.

James: I think.

James: For.

James: Fiscal year 2025.

James: I'll really start more from a quantitative aspect that I said in the remarks, it's going to be $4 to 600 basis points of gross margin improvement that's going to get us to our <unk> target and we're going to see a nice a nice piece of that come through.

Christopher A. Simon: In fiscal 'twenty five so that.

Christopher A. Simon: It'll be it'll be gradual throughout the year.

Christopher A. Simon: Little bit more towards towards the end of the year.

Christopher A. Simon: That sets the stage for what Chris talked about it starts with gross margin drew.

James Derecka: You know, it starts with gross margin, driven by mix and certainly productivity. But then it sets the stage for the gains that we will get from leveraging the hospital business. And that will start to come through more towards the end of this year and into next year. So you'll see then the incremental margin improvement, you know, we've guided to about 23 and a half percent this year. And next year, then you'll see a bit more on the gross margin line, but you'll really start to see it come through in terms of leverage and then the hospital business. And that's what's going to get us up into that, you know, 27 percent range or higher as we go forward. Thank you so much.

Christopher A. Simon: Driven by mix and certainly productivity, but then it sets the stage for the gains that we will get from leveraging the hospital business and that will start to come through more towards the end of this year and into next year. So you'll see then the incremental margin.

Christopher A. Simon: Improvement.

Christopher A. Simon: We've guided to about 23, 5% this year and then next year then.

Christopher A. Simon: You'll see a bit more on the gross margin line, but you'll really start to see it come through.

Christopher A. Simon: In terms of leverage.

Christopher A. Simon: And then the hospital business and Thats, what is going to get us up into that 27% range or higher as we go forward.

Speaker Change: Thank you so much.

Speaker Change: One moment for the next question.

Operator: One moment for the next question. Our next question comes from Larry Solow with CJS Securities. Your line is open.

Speaker Change: Our next question comes from Larry Solow with CJS Securities. Your line is open.

Lawrence Scott Solow: Great, thank you. I guess, first question, just follow up on the plasma, on the non-CSL portion, Chris. I guess the 10 to 12 percent growth, is that, you know, just give us an idea. Is the market still growing that sort of 10 to 12 percent? I imagine there's a little bit of a price in there for you guys. What about just share shifts, maybe not only this year but going forward, outside of the CSL piece? Do you see opportunities for maybe some share gains and some of that baked into this year's numbers? Yeah, Larry, thanks for the question. Look, it's all the above, right?

Lawrence Scott Solow: Great. Thank you I guess first question just to follow up on the plasma.

Lawrence Scott Solow: On the on the non CSL portion, Chris I guess, the 10% to 12% growth.

Lawrence Scott Solow: Could you just give us an idea as the market is still growing that sort of 10 to 12, I imagine is a little bit of price in there for you guys.

Lawrence Scott Solow: What about just share shifts maybe not only this year, but going forward outside of the CSL piece do you see your opportunities for maybe some share gains and some of that baked into this year's outlook.

Christopher A. Simon: We look at the underlying growth in demand, both here in the States and now increasingly internationally; we're enthusiastic about that. Obviously, customers are at different stages of inventory replenishment, and they have different levels of focus on total volume versus driving productivity, which is universal across all of our customers now. So, that's the biggest factor.

Speaker Change: Yes, thanks for the question.

Speaker Change: It's all the above right.

Speaker Change: We look at the underlying growth in demand both here in the states and now increasingly internationally. We're enthusiastic about that obviously customers are at different stages of inventory replenishment. They have different levels of focus on total volume versus driving productivity, which is universal across.

Speaker Change: All of our customers now so.

Christopher A. Simon: We are in the process of meaningfully upgrading the existing base Nexus business to Persona and Express Plus, which has further margin benefits for us. And then, yeah, we've done two things here over the first half of the LRP. I think we've built real trust and confidence by playing the long game and being there. Haemonetics increasingly enjoys the reputation as the plasma supplier that they know and trust, and that's a great measure of goodwill that will allow us to continue to build across the market.

Speaker Change: That's the biggest factor we are in the process of meaning.

Speaker Change: <unk> meaningfully upgrading the existing base Nexus business to persona and express plus that.

Speaker Change: Further margin benefits for us and and then yes, we are.

Speaker Change: We've done two things here over the first half of the LLP I think we've built real trust and confidence by playing the long game being there <unk> increasingly enjoys a reputation is.

Speaker Change: The plasma supplier that they know and trust and Thats, great goodwill that will allow us to continue to build across the market and then in that process. We've established <unk> as the unrivaled industry standard for lowering cost per liter and improving donor satisfaction.

Christopher A. Simon: And then, in that process, we've established Nexus as the unrivaled industry standard for lowering cost per liter and improving donor satisfaction safely and reliably. So, yes, we do expect share gains, and we're in a position to be able to accommodate that. It all comes together nicely.

Speaker Change: <unk> and reliably so yes, we do expect share gains in.

Speaker Change: We can kind of be in a position to be able to accommodate that.

Speaker Change: Comes together nicely look.

Christopher A. Simon: Eight to 12 for the non-PCS2 business, admittedly conservative, but there's a number of factors we don't control with regard to timing. And we've been conservative the last two years. We've been wrong.

Speaker Change: Eight to 12 for the non <unk> business.

Speaker Change: Lee Conservative, but theres a number of factors, we don't control with regards to timing so.

Speaker Change: We've been conservative in the last two years, we've been wrong thankfully the revisions have been all upward, but at this stage, we'd rather be conservative and thoughtful about it and if we have the opportunity to upgrade throughout the year we will.

Christopher A. Simon: Thankfully, the revisions have been all upward. But at this stage, we'd rather be conservative and thoughtful about it, and if we have the opportunity to upgrade throughout the year, we will. Gotcha.

Lawrence Scott Solow: And just switching gears on the hospital business, obviously, this quarter, it looks like TAG had a nice acceleration in the back half of the year, strong growth, short of your acquisitions, but just on the legacy piece there. What are you more excited about, or are you just kind of evenly excited between, you know, that mid single-digit growth outlook? Is that in the core? Is that in the legacy? Is that more on the Cardeva side? Or is that, you know, the TAG piece for both?

Speaker Change: Gotcha, and then just switching gears on the hospital business. Obviously this quarter. It looks like you had a nice acceleration in the back half of the year.

Speaker Change: Loan growth.

Speaker Change: Sure for your acquisitions, but just on the legacy piece there.

Speaker Change: Are you more excited or is it kind of evenly excited between that mid single digit growth outlook is that on the core is that are the legacy is that more on the card side.

Speaker Change: Or that the <unk>.

Speaker Change: <unk> piece or both.

Christopher A. Simon: It's really a tale of two impressive growth drivers, right? For vascular closure, you know, we just completed 28% growth for the year, right? We're in 80% of the top 600 accounts.

Speaker Change: Yes.

Speaker Change: It's really a tale of two impressive growth drivers right for vascular closure.

Speaker Change: Just completed another 28% growth for the year right. We're in 80% of the top 600 accounts. We're looking at international expansion now in fact international contributed 300 basis points of growth again here in the quarter. So we don't see any slowdown in the interventional technologies business propelled by certainly.

Christopher A. Simon: We're looking at international expansion now. In fact, international contributed 300 basis points of growth again this quarter. So, you know, we don't see any slowdown in the interventional technologies business, propelled certainly by Vascade.

Speaker Change: <unk> getting the new MVP X L and pre market approval is powerful it opens the aperture no pun intended for broader application and we're in a really good place. So that that's going to keep going into new products drop and I'm sure, we'll talk more about that on the call but.

Christopher A. Simon: Getting the new MVP XL and, you know, pre-market approval is powerful. It opens the aperture, no pun intended, for broader application, and we're in a really good place. So, that's going to keep going.

Christopher A. Simon: The new products drop in. I'm sure we'll talk more about that on the call, but, you know, that just goes from strength to strength. What we're impressed by on the blood management side of the hospital, yeah, TEG leads the charge. Having the heparinase neutralization cartridge approval will take that to the next level. You know, they're keen to continue to drive, and that's a big driver for us in that core business. We joke that TEG's the oldest launched medtech product in the industry, but it continues to hum along, and we, again, are going to look for double-digit growth, mid-teens growth in that product portfolio.

Speaker Change: It just goes from strength to strength, what we're impressed by on the blood management side of hospital leads the charge, having the heparin neutralization cartridge approval will take that to a next level.

Speaker Change: All right.

Speaker Change: They're keen to continue to drive and Thats, a big driver for us in that core business, we joke that tags. The oldest launched med tech product in the industry, but it continues to Hum along and we again are going to look for double digit growth mid teens growth in that product portfolio. So it's exciting and we stand behind.

Christopher A. Simon: So it's exciting and, you know, we stand behind it, and I look forward to taking it to the next level. Question, James, on the operating margin, I appreciate that the color and the cadence certainly sounds like we improved through the year. Just in terms of the slope, or can you give us just some idea? You ended the year kind of like at 19% this quarter.

Speaker Change: And I look forward to taking it to the next level.

Speaker Change: Got you Great and just last quick question James on the on the operating margin I appreciate the color on the cadence certainly it sounds like we improved through the year just in terms of the slow but can you give us just some idea you ended the year kind of like a 19% this quarter.

Lawrence Scott Solow: How should we view sort of the, you know, is it a big rebound as we go through the year, kind of where we end the year at? Obviously, we'll probably end the year higher than your averages, so can you give us any more color there on your thoughts on that? Yeah, sure, Larry. Thanks for the question.

Speaker Change: How should we view sort of the.

Speaker Change: Is it a big rebound as we go through the year kind of where we end the year at obviously, we will probably end the year higher than your.

James: Averages so could you give us any more color there on thoughts on that yes sure Larry. Thanks for the question and yes, you are right, we will end the year higher.

James Derecka: And yeah, you're right, we will end the year higher. It will go up, you know, throughout the year. In terms of a specific jumping off point, I think this could be very helpful.

Speaker Change: It will go up.

Speaker Change: Throughout the year in terms of specific jumping off point I think this could be very helpful.

Speaker Change: There were a couple of items about 200 basis points worth of items in our fourth quarter margin first we added <unk> still.

Speaker Change: Still being integrated so they have not achieved their synergies.

Speaker Change: And the benefits we get from the scale that has not been realized.

James Derecka: You know, there were a couple of items, about 200 basis points worth of items in our fourth-quarter margin. First, we had Opsense still being integrated, so they've not achieved their synergies, you know, and the benefits we get from the scale have not been realized.

Speaker Change: And then we continue to have freight.

Speaker Change: Freight and expediting costs.

Speaker Change: I would say the jumping off point wouldnt be the $18 eight for <unk>.

Speaker Change: For this year it would be closer to the.

Speaker Change: Overall 2020 for margin.

Speaker Change: <unk> of $21, one, maybe even a bit a bit better than that so if that's where you start off.

James Derecka: And then we continue to have, you know, freight and expediting costs. I would say the jumping off point wouldn't be the 18.8 for this year; it would be closer to the overall 2024 margin of 21.1, maybe even a bit better than that. So if that's where you start, and you know, you would end at 23.8, and you'll see it go up throughout the year. Got it. Okay. No, that's very helpful.

Speaker Change: And when you would end at 23, eight and Youll see it go up.

Speaker Change: Throughout the year.

Lawrence Scott Solow: Thank you. Thank you, everybody. One moment for our next question. The next question comes from Joanne Wuensch with Citi. Your line is open. Good morning, and thank you for taking the questions. I have a few, just putting that up front.

Speaker Change: Got it okay. That's very helpful. Thanks. Thank you. Thank you everybody.

Speaker Change: One moment for our next question.

Speaker Change: Yes.

Speaker Change: The next question comes from Joanne Wuensch with Citi. Your line is open.

Joanne Karen Wuensch: Can you remind us of what the accretion and or dilution may be from the Attune and Opsense acquisitions and how that folds into your 2025 guidance? And then, you know, on the MedTech side, we're all a flutter with Theropulse and with PFA catheters and such like that. Can you sort of give us your view of how the uptake of those types of products will impact your EP portfolio? Thank you. Yeah, hi Joanne, it's James.

Joanne Karen Wuensch: Good morning, and thank you for taking my questions I have a few.

Joanne Karen Wuensch: Just a quick amount upfront can you remind us of what the.

Joanne Karen Wuensch: The accretion and dilution maybe from the attune and options acquisitions and how that holds into your 2025 guidance and then.

Joanne Karen Wuensch: And then on the Med Tech side, while a flutter with with Sarah Paulson with PSA catheters.

Joanne Karen Wuensch: Such like that can you sort of give us your view of how.

Joanne Karen Wuensch: The uptake of those types of products impact your EP portfolio. Thank you.

Joanne Karen Wuensch: Sure.

James Derecka: I'll start with the accretion for Opsense and Attune. For both of them, we've said $0.10 to $0.15, so in total, it would be $0.20 to $0.30 this year in fiscal 25. Good morning, Joanne. It's Chris.

Joanne Karen Wuensch: Yes, Hi, Joanne, it's James I'll start with the accretion.

Joanne Karen Wuensch: For op and.

Speaker Change: <unk> for both of them.

James: Said, 10% to 15, so in total will be 20% to 30.

James: This year in fiscal 'twenty five.

Christopher A. Simon: Let me touch base on PFA and PFA adoption. Certainly, there is a ton of excitement. Some of the industry's most highly regarded companies and management teams are saying it's the most exciting product launch they've seen. That's great.

James: Yes, good morning, Joanne, It's Chris let me touch base on PSA and PFA adoption.

Chris: Certainly a ton of excitement some of the industry's most.

Chris: Highly regarded companies and management teams, saying its the most exciting product launch they've seen.

Joanne Karen Wuensch: That's great I do think it will vary pretty meaningfully from one product to the next.

Christopher A. Simon: I do think it will vary pretty meaningfully from one product to the next. What we are observing is very consistent with what we modeled when we attempted to value attune coming in. From our vantage point, the increased energy around ablation, and the rising tide, we think it will raise all boats, but from what we've looked at, our ability to add Enzo ETM to RF ablation takes a procedure that is very well established in the current standards and makes it 100% safe.

Joanne Karen Wuensch: We are observing is very consistent with what we modeled.

Joanne Karen Wuensch: When we attempted to value attuned coming in from our vantage point.

Joanne Karen Wuensch: The increased energy around ablation.

Joanne Karen Wuensch: Rising tide, we think it will raise all boats, but from what we've looked at.

Joanne Karen Wuensch: Our ability to add Enzo ATM to RF ablation takes a procedure that is very well established current standard.

Joanne Karen Wuensch: And makes it 100% safe the combination of those products RF ablation and our esophageal cooling is literally a third the cost of the PSA products that are being introduced to the market. So we expect <unk> to grow rapidly we expect it to become a.

Christopher A. Simon: The combination of those products, RF ablation, and our esophageal cooling, is literally a third the cost of the PFA products that are being introduced to the market. We expect PFA to grow rapidly. We expect it to become a leading product in the market. We think there's a role for RF ablation. We think with Enzo ETM, that role only gets better.

Joanne Karen Wuensch: A leading product in the market. We think there is a role for RF ablation, and we think with Enzo ATM that role only gets better and so we're very confident about it and at one level the dialogue around the importance of making ablation safe and effective plays right into our value proposition. So we're enthusiastic about what we're observing in <unk>.

Christopher A. Simon: We're very confident about it. At one level, the dialogue around the importance of making ablation safe and effective plays right into our value proposition. We're enthusiastic about what we're observing, and we intend to ride that wave. An opportunity for your Vasquez portfolio is also sort of where I was heading. Yeah, we think it's roughly, in the near term, it'll be neutral, right? Because, depending on which form of pulse field ablation is being used, they may need one less access point, right?

Joanne Karen Wuensch: Tend to ride that wave.

Joanne Karen Wuensch: It's an opportunity for your vascular portfolio also.

Joanne Karen Wuensch: Yes.

Joanne Karen Wuensch: Adding to our chest.

Speaker Change: Yes, we think it's roughly in the near term it will be neutral right.

Speaker Change: Pending on which form of pulse field ablation is being used they may need one less access point.

Christopher A. Simon: So there's one less opportunity for closure. However, the aggregate growth of ablation that's being driven that we're observing is more than offsetting any diminishment there. And as I said in my prepared remarks, the addition of MVPXL and what that enables is that we now have, you know, applicability across the different technologies in pulse field. So we're able to close essentially anything they're doing. And that's a real positive and will further propel our growth for Vascade.

Speaker Change: One less opportunity for closure however, the aggregate growth of ablation thats being driven that we're observing is more than offsetting any diminishment, there and as I said on the prepared remarks. The addition of MVP XL and what that enables is we now have applicability across.

Speaker Change: The different.

Speaker Change: Different technologies and pulsed field, so we're able to close essentially anything they're doing in that that's a real positive and will further propel our growth for vast scale. So all in yes are positive for sure.

Christopher A. Simon: So all in all, yes, a positive for sure. Excellent. Thank you so much for taking the question. One moment for your next question. And our next question is from Andrew Cooper with Raymond James. Your line is open.

Speaker Change: Excellent. Thank you so much for taking my questions.

Speaker Change: One moment for your next question.

Speaker Change: And our next question is from Andrew Cooper with Raymond James Your line is open.

Operator: Hey, everybody, thanks for the time. Maybe just to start on one with Plasma and sort of the 8 to 12 and how we should think about it, just would love an update with Express Plus nearing kind of full launch, what the strategy is there in terms of, you know, how aggressively you try to roll that out to the broad customer base, and whether you're going to use that as a tool to take price, we should view it as a retention tool, or really just how we should think about that additional innovation that you're bringing to the market.

Andrew Harris Cooper: Hey, everybody thanks for the time.

Andrew Harris Cooper: Maybe just to start on the plasma and sort of eight to 12 and how we should think about it just would love an update with express plus nearing kind of full launch what the strategy is there in terms of how aggressively you try to roll that out to the broad customer base and whether youre going to use that as a tool to take price, we should view it as a retention tool or.

Speaker Change: Or really just how we should think about that that additional innovation that you're bringing to the market.

Operator: Andrew, thanks for the question. We're really excited about what Express Plus will do to take that platform to the next level. The improvement in procedure speed off the base business is very powerful. We're seeing from what is now 60,000 commercial collections in our limited market release that the product is absolutely performing as expected. We're seeing reductions of up to 20% across the base procedure speed on the base Nexus device, so all good there, plays into lower cost per liter, and plays into improved center productivity.

Speaker Change: Yes sure. Thanks for the question, we're really excited about what express plus does to take that platform to the next level the improvement in procedure speed.

Speaker Change: The base business very powerful we're seeing from what is now 60000 collections commercial collections and our limited market release, the product is absolutely performing as expected and so we're seeing.

Speaker Change: Productions and up to 20% across the base procedure speed on the base Nexus device. So all good there.

Speaker Change: Plays into lower cost per liter plays into improved center productivity. So we will move from limited market release to full market release later this quarter and our anticipation as we roll from there upgrading the entire fleet and we're going to stay.

Andrew Harris Cooper: So, we will move from limited market release to full market release later this quarter, and our anticipation is that we will roll from there, upgrading the entire fleet. I'm going to stay mute with regard to pricing, just given the increased competitive sensitivity across the market. However, this is a meaningful upgrade. It also paves the way for anybody who is either using Persona or is intending to use Persona to get those procedure times back well within the range of the base Nexus device. So, it's a powerful one-two combination.

Speaker Change: With regards to pricing just given the increased competitive sensitivity across the market. This is a meaningful upgrade it also paves the way for anybody who is either using persona or is intending to use persona to get those procedure times back well within range of the base Nexus device. So it's a powerful.

Speaker Change: 102 combination we think in aggregate, it's unrivaled and we do expect to command a premium for innovation given the improvements that we can point to with regards to lowering CPL on improving donor satisfaction, we feel really confident in our ability to command that premium.

Christopher A. Simon: We think, in aggregate, it's unrivaled. And we do expect to command a premium for innovation, given the improvements that we can point to with regard to lowering CPL and improving donor satisfaction. We feel really confident in our ability to command that premium. Okay.

Christopher A. Simon: Um, maybe just next, you know, I think James and I think you maybe both mentioned kind of the appetite for M&A, and you increased the revolver capacity here. So, you know, obviously a lot of ability to go out and do more deals, just maybe what are you seeing in the space? What's still exciting? And then how do we think about the comment on, you know, looking near term and interventional cardiology while you're still sort of trying to digest recent acquisitions that you're still bringing into the fold right now? You want me to take a cut of that first, James? Yeah, look, our near-term focus is integration, right? We are highly enthusiastic about the guide wires from Opsense and esophageal cooling from Attune.

Speaker Change: Okay helpful.

Speaker Change: Maybe just next I think James.

James: Thank you Amy both mentioned kind of the appetite for M&A and you increase the revolver capacity here so.

Speaker Change: Obviously a lot.

Speaker Change: <unk> to go out and do more deals just maybe what are you seeing in the space, What's still exciting and then how do we think about the comment on looking near term in interventional cardiology, while youre still sort of trying to digest to our recent acquisitions that you are still bringing into the fold right now.

Speaker Change: You want me to take a cut at it firsthand.

Speaker Change: Our near term focus is integration right. We are highly enthusiastic about the guide wires from <unk> and esophageal, calling from attune, we need to make good on that right. So we're well down the path closing up since early in mid December was helpful. We spent our fourth quarter Cross training our field force question.

Christopher A. Simon: We need to make good on that, right? So we're well down the path. Closing Opsense early in mid-December was helpful. We spent our fourth quarter cross-training the field force.

Christopher A. Simon: A question was asked earlier about that, that there's a direct overlap, in this case, with Vascade in interventional cardiology, so we are going to expect meaningful call-point synergy. And we revamped our footprint. We updated our comp programs. We did the complete set of training. Some of that's still ongoing, just given the sophistication of the products. But, you know, it's a combined force moving nicely against commercializing those guide wires.

Christopher A. Simon: So we feel great about that. Enzo ETM, the esophageal cooling system, direct fit with MVP and MVP XL now on EP. You know, we'll get after that beginning in June. And that is, you know, far and away our first and second priority. We do see other opportunities for tuck-in acquisitions in the interventional technology franchise, and so we will pursue those as the market opportunity presents itself. We want it to have that capacity on the balance sheet to be able to do so.

Christopher A. Simon: But we really see those as tuck-ins and things that would be highly accretive to growth and profitability as we roll forward. We've disclosed our relationship with Vivasure before. You know, that's a great example of the type of things that, you know, perhaps in the second half of the fiscal year, we could pursue. But for now, it's integration and growth. And then, you know, we'll leave aside what happens at the back end of the LRP. But we think this model, you know, enabling technology, you know, really agnostic to the underlying therapeutic being used.

Speaker Change: Ability as we were all forward, we've disclosed previously our relationship with Viv ashore.

Speaker Change: A great example of the type of things that perhaps in the second half of the fiscal year, we could pursue but for now it's integration and growth and then.

Speaker Change: We'll leave aside what happens at the back end of the LRT, but we think this model.

Speaker Change: Enabling technology.

Speaker Change: Really agnostic to the underlying therapeutic being used so has broad based applications and then superior results because of the capabilities. We felt we think that's a model is replicable in other areas that is not something we are going to be talking about this fiscal year them.

Christopher A. Simon: So it has broad-based applications and superior results because of the capabilities we've built. We think that's a model that's replicable in other areas. That's not something we're gonna be talking about this fiscal year, though. Okay, perfect. That's super helpful.

Andrew Harris Cooper: And then maybe just one last one on sort of the margin dynamics, I guess, to ask what others have a little bit of a different way. When we think about the roughly 10% or a little bit less than 10% of earnings that you called out from CSL, as we think about that volume kind of rolling off, should it be ratable? Are there sort of step function levels where we see the margin move a little bit quicker or a little bit slower?

Speaker Change: Okay perfect. That's Super helpful. And then maybe just one last one on sort of the margin dynamics I guess to ask what what others have a little bit of a different way when we think about the roughly 10% or a little bit less than 10% of earnings that you called out from CSL, if you're thinking.

Andrew Harris Cooper: Just help us think about kind of the pacing there and whether it's linear or a little bit lumpier in terms of the margin impact of the CSL departure. Yeah, Andrew, I think it's more towards the linear side of the equation there. You know, as it rolls off.

Speaker Change: Thinking about that volume kind of rolling off should it be radical are there sort of step function level, where.

Speaker Change: We see the margin move a little bit quicker or a little bit slower just help us think about the pacing there and whether it's linear or a little bit lumpy or in terms of the margin impact of the CFL departure.

Speaker Change: Yeah, Andrew I think it's more more towards the linear side of the equation there.

Speaker Change: As it as it rolls off we've been preparing for this for quite a while and.

James Derecka: You know, we've been preparing for this for quite a while. And, you know, we have our plans in place to address the associated stranded costs and overhead costs with it. So we think that it should be fairly, fairly smooth throughout the year. Okay. I'll stop there.

Andrew Harris Cooper: We have our plans in place to address the of the associated stranded costs and overhead costs with it.

Andrew Harris Cooper: So we think that it should be.

Speaker Change: Fairly fairly smooth throughout the year.

Speaker Change: Great I'll stop there thanks, everybody.

Andrew Harris Cooper: Thanks, everybody. One moment for the next question. The next question is from Mike Matson at Needham and Company. Your line is open.

Speaker Change: One moment for the next question.

Speaker Change: The next question is from Mike Mattson at Needham and company. Your line is open.

Operator: Yeah, thanks. Um, so I guess I just wanted to ask about, you know, how Nexus with Persona and Express Plus are you... I'm comfortable that this is a superior offering to the Rika product in terms of the volume, time, and cost of collections with your offering. Yeah, Mike, good morning. The short answer is yes, right? You know, there's not a whole lot of RICA out there to really be able to draw broad-based conclusions.

Michael Stephen Matson: Yeah. Thanks, So I guess I just wanted to ask about.

Michael Stephen Matson: Texas with persona and express plus.

Michael Stephen Matson:

Michael Stephen Matson: Comfortable that this is a superior offering to to the <unk> product in terms of the volume time, the cost of collection with your offer.

Michael Stephen Matson: Mike Good morning short answer is yes.

Michael Stephen Matson:

Michael Stephen Matson: There's not a whole lot of Rica out there to really be able to draw broad based conclusions.

Michael Stephen Matson: We're now, you know, north of 25 million collections with the Persona Nexus system, and it's performing exactly as advertised. It is, above all, safe and reliable, which is the ante for this industry, right? So I think the demonstrated safety and reliability of the product and the company get you halfway there. And then, yeah, the speed gains associated with the combined offering of Express Plus and the, you know, the Persona uptick are really meaningful. We're the only ones who offer DMS software.

Speaker Change: We're now nor.

Michael Stephen Matson: North of 20.

Michael Stephen Matson: 25 million collections with the persona Nexus system, it's performing exactly as advertised it is above all safe and reliable which is the anti for this industry right.

Michael Stephen Matson: So I think the demonstrated safety demonstrated reliability of the product and the company gets you halfway there and then get the speed gains associated with the combination offering of express plus the the persona uptick really meaningful we're the only ones who offer.

Christopher A. Simon: In fact, our DMS software today is roughly 80 percent of the U.S. procedures. So the integrated offering, what we can bring together and how that can improve center operations, how that can improve donor satisfaction and processing, you know, that's the piece that, you know, we are the only ones doing that. And it's an important part of our value proposition and one of the things that compels our customers. So broad-based experience, real-world evidence, and a combined offering, a holistic offering that is unique in the marketplace. Yeah, we're quite confident, Michael. Okay, thank you. And then just on MVP XL, so where is that used versus the regular MVP? I guess, what types of procedures?

Michael Stephen Matson: MS software in fact, our DNS software today is roughly 80 share of the U S procedures. So the integrated offering what we can bring together and how that can improve center operations, how that can improve donor satisfaction in processing, that's the piece that.

Michael Stephen Matson: We are the only ones doing that and it's an important part of our value proposition in one of the things that compels our customers. So.

Michael Stephen Matson: Broad based experience real world evidence and combined offering holistic offering that is unique in the marketplace. Yeah, we're quite confident Mike.

Speaker Change: Okay. Thank you and then just about MVP X L. So where's that used versus the regular rmbp I guess what types of procedures and is there a price premium for X Oliver MVP.

Michael Stephen Matson: Is there a price premium for XL over MVP? Yes, so MVP XL will expand the base vascular closure offering. It's pushing MVP to higher levels of French sizes. It should give us, really, across electrophysiology. It should give us, you know, a broad-based offering all the way up to include, as I said earlier, all the ablation procedures. So, nice compliment.

Speaker Change: Yeah, So MVP exhale will expand the base vascular closure offering it's pushing.

Speaker Change: Pushing MVP to higher levels of French sizes, it should give us really across electrophysiology. It should give us a broad based offering all the way up to include as I said earlier, all the ablation procedures.

Michael Stephen Matson: They'll probably be some cannibalization between MVP, an MVP exhale because the.

Michael Stephen Matson: The indications are clear, but questions are free to use it in a broad base fashion, an MVP works really well exhale will be that much better for the larger French size openings that particularly are typical NPSA. So.

Christopher A. Simon: It's part of our broader strategy. We think about this kind of broadening the shoulders of closure. We want to be the one-stop shop for closure, venous, and arterial.

Michael Stephen Matson: A nice compliment it's part of our broader strategy, we think about this kind of broadening the shoulders of closure, we want to be the one stop shop foreclosure Venus Endarterial.

Michael Stephen Matson: This takes us one more important step along that way, we've got a pipeline of additional things going on that will take us down market as well in terms of smaller openings, but.

Michael Stephen Matson: More about that as they get ready to come to market in terms of pricing in general we like to think about value based pricing for our technology Excel brings real value to the market. We expect to capitalize on that volume is the biggest driver by far in intervention technologies, but we're also seeing further price and mixed game.

Christopher A. Simon: This takes us one more important step along that way. We've got a pipeline of additional things going on that will take us downmarket as well in terms of smaller openings, but more about that as they get ready to come to market. In terms of pricing, you know, in general, we like to think about, you know, value-based pricing for our technology because XL brings real value to the market. We expect to capitalize on that.

Michael Stephen Matson: <unk> so.

Michael Stephen Matson: You should assume that's going to be factored in as part of the overall guidance.

Michael Stephen Matson: Volume, you know, is the biggest driver by far in interventional technologies, but we're also seeing, you know, further price and mixed gains. So, you should assume that's going to be factored in as part of the overall guidance. Okay, great.

Speaker Change: Okay, great. Thank you.

Operator: Thank you. Please stand by for the next question. The next question comes from Michael Petusky with Barrington Research. Your line is now open.

Speaker Change: And the next question.

Speaker Change: The next question comes from Michael to Tennessee with Bang can research. Your line is now open.

Michael: Good morning.

Michael John Petusky: Uh, Chris, I just want to, 155 to 85 this year, that's just. Yeah, Mike, that's exactly right. It's the US-PCS2 supply agreement. It does not cover software.

Michael: Chris I, just wanted to make make sure I'm I'm thinking about this correctly, 155% to 85.

Michael: And this this year.

Michael: U S CSL business is that correct.

Christopher A. Simon: It does not cover the international work that's all being done today on Nexus. Okay, and I know we're not talking about 26, but I just want to make sure because when we talked about... There is no... from CSL.

Chris: Yes, that's exactly right. It's the U S. P. C S to supply agreement. It does not cover software does not cover the international.

Chris: Work that is all being done today on <unk>.

Chris: And I know, we're not talking about 26, but I just I just wanted to make sure because when we talked about this whatever it was a year ago and you're talking about a minimum commitment there is no minimum commitment.

Chris: From CSL beyond 2006, correct.

Michael John Petusky: Yeah, Mike, you'll appreciate it. We just got it for $25,000. We kind of want to live into that and execute it. Give us a little time before we're ready to talk $26,000. What I can tell you is, in terms of the numerous amendments, what we cared about was being compensated for our staying power and a gradual transition that allowed us, as James said, to improve the margin in terms of stranded costs. But really, the most exciting part is freeing up capacity in an otherwise capacity-constrained system to serve our other customers, including the conversion and the share gains. So it'll be gradual. The math is, as you laid it out, it won't be zero by the end of this fiscal year, as we're projecting it. Stay tuned. The $85,000 is a minimum commitment.

Chris: Yes.

Speaker Change: Mike you'll appreciate it we just guide it for 25, we kind of want to live in to that and executed give us a little time before you to talk 26.

Speaker Change: Can tell you is in terms of the numerous.

Chris: Amendments, what we cared about was me.

Chris: Being compensated for our staying power and a gradual transition that lets US is James said improve the margin right in terms of stranded costs, but really the most exciting part is freeing up capacity in an otherwise capacity constrained system to go serve our other customers, including the conversion.

Chris: And in the share gains so it will be gradual.

Chris: Math is as you laid it out it won't be zero by the end of this fiscal year's we're projecting it so.

Christopher A. Simon: Just like when we talked a year ago, we were saying something slightly in excess of $100 million. This is the equivalent number for that. It represents a 45% downward revision from the $155,000 that we just completed for the PCS-2 agreement. If it changes throughout the year upward, we'll call that out as we go. I just want to thank you. I was just curious how many countries in Europe there are... You know, is there anything just clinically...

Chris: Stay tuned 85 is a minimum commitment just like when we talked a year ago, we were saying something.

Chris: Slightly in excess of $100 million right and so.

Chris: This is the equivalent number for that it represents a 45% down.

Chris: Downward revision from the 155% that we've just completed for the P. C. S to agreement if it changes throughout the year upward we'll call that out as we go.

Speaker Change: And then I just want to.

Speaker Change: Ask a little bit about Ah Ah vascular closure O U S.

Chris: You called out that Japan.

Chris: Good traction with some.

Chris: 90 accounts I'd I believe I heard in Europe may be a little bit slower I was just curious how many countries in Europe.

Chris: Now when what are you what do you see as the best targets there and is there anything just clinically from how how treatment has done there or regulatory from a regulatory standpoint that has made Europe, a little slower than Japan things.

Michael John Petusky: I'd like to confirm that Japan is, as you described it, we are now in excess of 90 accounts. We're working with a third-party distributor; they're skilled, they're executing. We have the benefit that we get very favorable reimbursement as part of the Japanese reimbursement system, so that's really aided with the initial uptake. In Europe, it's a different starting point, right? They typically use a suturing figure of eight, so it's, you know, less obvious need.

Speaker Change: Yeah I'd like to.

Speaker Change: Confirmed Japan is as you described it we are now in excess of 90 accounts, we're working with a third party distributor they're skilled they're executing we have the benefit that we got very favorable reimbursement as part of the Japanese reimbursement system. So that's really ate it with the initial uptake in Europe, it's a different <unk>.

Chris: <unk>.

Chris: They typically use suturing figure of eight so it's <unk>.

Chris: Less obvious need there are vagaries from one country to the next around how reimbursement works and differences in terms of the benefit of same day discharge, which we have across the board. So that's what we are working through we expect to be successful there for sure.

Christopher A. Simon: There are vagaries from one country to the next around how reimbursement works and differences in terms of the benefit of same-day discharge, which we have across the board. So that's what we are working through. You know, we expect to be successful there, for sure. It's just a slower, more gradual build. I think this is a good example of going slow and being thoughtful to go faster further down the road.

Chris: Just a slower more gradual build I think this is a good example of going slow and being thoughtful to go faster further down the road and so from our vantage point, we're delivering against that we're primarily focused as you would expect in the big markets. We started in Germany, we had a relationship or a set of relationships in Italy.

Christopher A. Simon: And so from our vantage point, you know, we're delivering against that. We're primarily focused, as you would expect, on the big markets. We started in Germany.

Christopher A. Simon: We had a relationship or set of relationships in Italy that we're capitalizing on. We will quickly proceed to the UK and then other major markets, mostly through distribution, where we think there's strong underlying demand, just measuring, you know, ablation procedures. So stay tuned; more to come. It will be a gradual build, but we think we've got real staying power and want to make sure One of the important lessons learned from the top 600 in the U.S. is, you know, we land and we expand. The landing, you have to nail the landing, and you have to get it right.

Chris: We're capitalizing on.

Chris: We will quickly proceed to the UK and then other major markets, mostly through distribution, where we think they're strong underlying demand just measuring oblation procedures. So.

Chris: <unk> more to come it will be a gradual build but we think we've got real staying power and want to make sure that one of the important lessons learned from the top 600 and the U S. As.

Chris: We land and we expand landing you have to nail the landing and you have to get it right. It doesn't do any good to churn through an account because when you have to go back and reignite that's that much harder. So we want to get it right. We want to build from a strong base, we're working with the best centers and making sure the value proposition is clear and appropriately sustain.

Michael John Petusky: It doesn't do any good to churn through an account because when you have to go back and reignite it, that's that much harder. So we want to get it right. We want to build from a strong base. We're working with the best centers and making sure the value proposition is clear and appropriately sustainable.

Chris: Annabelle.

Michael John Petusky: Hey, can I just ask a quick one, a real quick one on Express Plus? I mean, do you feel like the uptake there is, I mean, is this obviously just a handful of customers that you need to target? I mean, do you feel like... As we've said with our other technology upgrades, we will go absolutely as fast as our customers are prepared to go, but no faster. I think it's an FY25 event, Mike, because the value proposition of Express Plus is so clear and the demand for productivity is so pressing.

Annabelle: Perfect. Thank heaven.

Annabelle: Let's take a quick one a real quick one in Onyx Express plots I mean do you feel like the the uptake there I mean is this obviously just a handful of customers I mean do you do.

Speaker Change: You need a target I mean do you feel like.

Speaker Change: Physical twenty-five most of this will be.

Annabelle: You know.

Annabelle: Essentially completed or might take some time and things.

Annabelle: We've said with our other technology upgrades, we will go absolutely as fast as our customers are prepared to go with no faster.

Annabelle: I think it's in FY 2005 at that Mike because the value proposition of express process is so clear and the demand for productivity is so pressing so.

Michael John Petusky: So I don't want to get too far ahead of ourselves here, but our projections call for Express Plus to be implemented this fiscal year. Please stand by for the next question. The next question comes from David Turkaly with Citizens JMP. Your line is open. Hey, good morning, and congrats on getting to the halfway point of your LRP. Chris, I think you said in your commentary, just answering a question, venous and arterial closure. Can you tell us today how that breaks out? What does your mix look like right now with Vascage?

Annabelle: I want to get too far ahead of ourselves here, but our projections call for express plus to be implemented this fiscal.

Speaker Change: Alright, great stuff. Thank you.

Speaker Change: And back in the next question.

Speaker Change: Mhm.

Speaker Change: The next question comes from David <unk>, what citizens JMP. Your line is open.

Speaker Change: Good morning, and congrats on getting to the halfway point of your LLP.

James Derecka: I think he said.

David: Your commentary.

David Louis Turkaly: Answering your question relates an arterial closure.

David Louis Turkaly: Can you tell us today.

David Louis Turkaly: That breaks out what what is your mix of quick leg right now with the escape.

David Louis Turkaly: in those two areas. So for Vascade, it's roughly an 80-20 split, where 80% of the portfolio is electrophysiology, really looking at AFib ablation closure. And that's the MVP product, 80% of the portfolio, and growing nicely, and we'll add Excel on top of that. That'll bring some capitalization, but for sure further accelerate the growth. The base Vascade product is predominantly PCI in an interventional cardiology

David: And those two here yet.

Speaker Change: So <unk> it's roughly.

David Louis Turkaly: 80, 20 split where.

David Louis Turkaly: 80% electrophysiology really looking at Afib ablation closure and that's the MVP product.

David Louis Turkaly: 80 per cent of the portfolio and.

Speaker Change: Hoeing nicely.

David Louis Turkaly: Add exhale on top of that some capitalization, but for sure further accelerate the growth that base Bascay product is predominantly PCI intervention cardiology, setting and one of the things we surprised ourselves positively on Dave as we kind of ran this implementation is both both the vasquez.

Christopher A. Simon: And one of the things we surprised ourselves positively on, Dave, as we kind of ran this implementation, is that both the Vascade product and MVP grew proportionately as we doubled and then doubled again our commercial footprint. It's still an 80-20 split, but we are clearly moving things forward in PCI because we've got a much more pronounced clinical presence. Now dropping in, you know, Opsense guidewires, which are predominantly focused on interventional as well, we'll just have that much more share of voice, share of mind.

Christopher A. Simon: <unk> product and MVP grew proportionately.

Christopher A. Simon: As we doubled and then doubled again, our commercial footprint. It's still an 80 20 split, but we're clearly moving things forward and PCI because we've got a much more pronounced clinical presence now dropping in <unk> guide wires, which are predominantly focused and intervention as well.

Christopher A. Simon: We'll just have that much more share of voice share of mine were in on the procedures already.

Christopher A. Simon: We're in on the procedures already, so we're hoping it's going to be highly synergistic. For sure, you know, Vascade's an 80-20 split. When we talk about guidewires, Opto's the larger of the two products, but we think Savvywire has the NVPXL type of growth potential.

Christopher A. Simon: So we're hoping it's going to be highly synergistic.

Christopher A. Simon: For sure <unk>, an 80 20 split when we talk about guide wires up those the larger of the two products, but we think savvy wire has the MVP XL type of growth potential so.

Christopher A. Simon: So stay tuned for more on that. But that really builds our presence, the same way that Enso builds our presence in ablation. So we're starting to get pretty excited about, you know, the broader-based opportunities for interventional cardiology. But it really is a tale of two closely adjacent but distinct call points between electrophysiology and interventional cardiology.

Christopher A. Simon: Stay tuned for more on that but but that really builds our presence the same way that Enzo builds our presence and ablation. So we're starting to get pretty excited about that.

Christopher A. Simon: Broader based opportunities for intervention will but it really is a tale of two closely adjacent but a distinct call points between electrophysiology an intervention of cardiology.

David Louis Turkaly: Thank you for that. James, congrats on two years, I guess, and all the detail on the new credit facility. I was wondering if you might be able to..., frame out what interest expense is going to look like in fiscal 25, or at least maybe hit us with the average rate or what you anticipate you'll have out in the year. Yeah, thanks, Dave.

Speaker Change: Thank you for that James Congrats on two years, I guess and all the details of new credit facility. I was wondering if you might be able to.

Speaker Change: Fremont what interest expense is going to look like and fiscal 25 or at least maybe hit us with because the average rate or what you anticipate you'll have out.

David Louis Turkaly: In the year.

Speaker Change: Yes, Thanks said Dave.

James Derecka: Interest expense will be about.

Speaker Change: About a 16 cent.

David Louis Turkaly: Headwind for us in fiscal year 2025, as compared to what we had in 2004.

Speaker Change: That will be highly dependent that assumes that the debt structure that we have right now.

Speaker Change: <unk> through the year so.

Speaker Change: Certainly certainly keeping our fingers crossed for for a few rate cuts.

Speaker Change: Great. Thanks, a lot.

Speaker Change: This concludes our question and answer session. Thank you for your participation in today's conference.

Speaker Change: That does conclude the program you may now disconnect.

David Louis Turkaly: [noise].

David Louis Turkaly: [music].

David Louis Turkaly: [music].

Speaker Change: Good day, and thank you for standing by and welcome to the Q4 2020 far hanging out ex corporate earnings conference call. At this time all participants are in listen only mode. After the speaker's presentation. There will be a question and answer session to ask a question. During the session you will need to press star one.

James Derecka: Interest expense will be about a 16 cent headwind for us in fiscal year 2025 as compared to what we had in fiscal year 24. That will be highly dependent. That assumes that the debt structure that we have right now continues through the year. So we're certainly keeping our fingers crossed for a few rate cuts. Great. Thanks a lot.

David Louis Turkaly: This concludes our question-and-answer session. Thank you for your participation in today's conference. This does conclude the program. You may now disconnect. ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? Good day, and thank you for standing by. Welcome to the Q4 2024 Haemonetics Corporate Earnings Conference Call. At this time, all participants are in listen-only mode.

Operator: After the speaker's presentation, there will be a question-and-answer session. To ask a question during the session, you will need to press star 11 on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star 11 again. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your first speaker today, Olga Gaillette, Director of Investor Relations and Treasury. Olga, please go ahead.

Olga Guyette: One on your telephone you will then hear an automated message advising your hand is raised.

Olga Guyette: Withdraw your question. Please press star one again, please be advised that today's conference is being recorded I would now like to hand, the conference over to your first speaker today.

Olga Guyette: Good morning. Thank you for joining us for Haemonetics' fourth quarter and fiscal year 2024 conference call and webcast. I'm joined by Chris Simon, our CEO, who will provide business updates and discuss revenue results and guidance, and James DiReca, our CFO, who will provide further updates about our fiscal year 2024 financial performance and expectations for fiscal year 2025. Before we begin, I'd like to address revenue reporting changes we're implementing, starting with fiscal year 2025. These changes involve integrating service revenue within our commercial business.

Olga Guyette: I'll go Guy yet director of Investor Relations and Treasury Olga. Please go ahead.

Olga Guyette: This adjustment is in line with our updated management structure and acknowledges the crucial role that services play in our customer offering. It underscores our commitment to improving service quality and driving growth within our service organization. As a result of this change, the fiscal year 2025 guidance we will discuss today is presented in our new revenue reporting format. However, all revenue results for the fourth quarter of fiscal year 2024 are presented in the old format to facilitate appropriate year-over-year comparison.

Olga Guyette: Good morning, Thank you for joining us for human genetics fourth quarter and fiscal year 'twenty 'twenty four conference call and webcast.

Olga Guyette: I'm joined by Chris Simon our CEO, who will provide business updates and discuss revenue results and guidance and James director. Our CFO will provide further updates about our fiscal year 2024 financial performance and expectations for fiscal year 'twenty 'twenty five.

Olga Guyette: For a detailed reconciliation between the old and the new revenue reporting formats, please refer to the supplemental analysis referenced in this morning's earnings release and also available on the IR section of our website. I'd like to remind everyone that all revenue growth rates discussed today are organic, unless specified otherwise, and exclude the impact of foreign exchange fluctuations and acquisitions. Our Organic Revenue Growth Guidance for Fiscal Year 2025 incorporates 15 weeks of revenue from off due to the acquisition closing date being in December 2023. Throughout our call, we'll reference other non-gap financial measures to help investors understand Haemonetics' ongoing business performance. These measures exclude certain charges and income.

Olga Guyette: Before we begin I'd like to address revenue reporting changes, we're implementing starting with our fiscal year 2020 five.

Olga Guyette: These changes involved integrating service revenue within our commercial business unit.

Olga Guyette: This adjustment is in line with our updated management structure and acknowledges the crucial role our services play in our customer offering at.

Olga Guyette: It underscores our commitment to improving service quality and driving growth within our service organization.

Olga Guyette: As a result of this change the fiscal year 2025 guidance, we will discuss today as presented in our new revenue reporting format.

Olga Guyette: Our revenue results for the fourth quarter and fiscal year 2024 are presented in the old format to facilitate appropriate year over year comparison.

Olga Guyette: For a detailed reconciliation between the old and the new revenue reporting format. Please report refer to the supplemental analysis referenced in this morning's earnings release and also available on the IR section our website.

Olga Guyette: I'd like to remind everyone that all revenue growth rates discussed today, our organic unless specified otherwise and exclude the impact of foreign exchange fluctuations and acquisitions.

Olga Guyette: Our organic revenue growth guidance for fiscal year 2025 incorporates 15 weeks of revenue from Austin.

Olga Guyette: Due to the acquisition closing date being in December 2023.

Olga Guyette: Throughout our call we will reference other non-GAAP financial measures to help investors understand <unk> ongoing business performance. These measures exclude certain charges in income items for a complete leased if excluded items reconciliations to our GAAP results and comparisons with the prior year period.

Olga Guyette: For a complete list of excluded items and reconciliations to our gap results in comparison with the prior year period, please refer to our fourth quarter fiscal year 2024 earnings release. Our remarks today will also include forward-looking statements, and actual results may differ materially from anticipated results. Factors that may cause the results to differ, referenced in our earnings release and other SEC filings. We do not undertake any obligation to update this court within state law.

Olga Guyette: Please refer to our fourth quarter fiscal year 2024 earnings release.

Olga Guyette: Our remarks today will also include forward looking statements and actual results may differ materially from anticipated results.

Olga Guyette: After that may cause our results to differ are referenced in our earnings release and other SEC filings.

Olga Guyette: We do not undertake any obligation to update these forward looking statements.

Christopher A. Simon: This completes my remarks, and I'm now turning the call over to Chris. Thanks, Olga. Good morning, and thank you all for joining us today. Today, we reported organic revenue growth of 10% in the fourth quarter and 12% in fiscal year 2024. Adjusted earnings per diluted share was $0.90 in the quarter and $3.96 in the year.

Olga Guyette: This completes my remarks, and I'll now turn the call over to Chris.

Chris: Thanks, Olga good morning, and thank you all for joining.

Chris: Today, we reported organic revenue growth of 10% in the fourth quarter and 12% in fiscal year 2024 adjusted earnings per diluted share was <unk> 90 in the quarter and $3 96 in the year increases of 17% and 31% respectively.

Christopher A. Simon: Increases of 17% and 31%, respectively. At the midpoint of Haemonetics' long-range plan, we've made tremendous progress toward our transformational growth goal. Our ability to consistently deliver strong financial performance underscores the accelerating momentum in our business and our commitment to creating value for customers and shareholders. We strengthened our reputation by overcoming hurdles to support all of our plasma customers through consecutive years of unprecedented growth. We rolled out our Persona and NexLink DMS software upgrades and introduced Express+.

Chris: At the midpoint of human medics long range plan, we've made tremendous progress towards our transformational growth goals.

Christopher A. Simon: Our ability to consistently deliver strong financial performance underscores the accelerating momentum in our business and our commitment to creating value for customers and shareholders.

Christopher A. Simon: We strengthened our reputation by overcoming hurdles to support all of our plasma customers through consecutive years of unprecedented growth, we rolled out our persona and next linked Dms software upgrades and introduced express plus.

Christopher A. Simon: Through strategic portfolio rationalization and a heightened focus on global apheresis, we are improving the margin profile and durable contribution of our blood center business. We delivered three consecutive years of high-teens organic revenue growth in-hospital and took steps to accelerate inorganic growth with the acquisitions of Opsense and Attune. And we continued our relentless pursuit of improved productivity, delivering additional savings through our OEP programs and embedding these skills in the fabric of our organization.

Christopher A. Simon: Through strategic portfolio rationalization, and a heightened focus on global Apheresis, we are improving the margin profile and durable contribution of our blood Center business.

Christopher A. Simon: We delivered three consecutive years of high teens organic revenue growth in hospital and took steps to accelerate inorganic growth with the acquisitions of <unk>.

Christopher A. Simon: <unk>.

Christopher A. Simon: And we continued our relentless pursuit of improved productivity delivering additional savings through our OE programs and embedding these skills in the fabric of our organization.

Christopher A. Simon: As Olga mentioned, we repositioned customer and field services within our commercial business. Services are a source of distinctiveness for Haemonetics, and assigning them to the BUs will create greater accountability and new opportunities to enhance our offerings and optimize returns.

Christopher A. Simon: As already mentioned, we repositioned customer and field services within our commercial business unit services are a source of distinctiveness for hemostatic and assigning them to be use will create greater accountability and new opportunities to enhance our offerings and optimize returns.

Christopher A. Simon: As we transition to the second half of our plan, we are well positioned and fully committed to achieving our goal of sustainable top quartile med tech revenue and margin growth. Turn now to our Business Unit Results and Revenue Guide. It was another strong year for plasma after 43% growth in fiscal year 23, plasma revenue grew 6% in the fourth quarter and 14% in fiscal year 2024, driven by disposable volume and software. North America disposables represented 85% of plasma revenue and grew 4% in the quarter and 13% for the year.

Christopher A. Simon: As we transition to the second half of our plan, we are well positioned and fully committed to achieving our goal of sustainable top quartile med tech revenue and margin growth.

Christopher A. Simon: Turning now to our business unit results and revenue guidance.

Christopher A. Simon: It was another strong year for plasma after 43% growth in fiscal year 'twenty three.

Christopher A. Simon: Plasma revenue grew 6% in the fourth quarter and 14% in fiscal year 2024, driven by disposable volume and software.

Christopher A. Simon: North America disposables represented 85% of plasma revenue and grew 4% in the quarter and 13% for the year.

Christopher A. Simon: We recently completed the successful limited market release of our new Express Plus technology with more than 60,000 real-world collections. We are now initiating full market release in the U.S. This technology is making our customers meaningfully faster, and when combined with our bidirectionally connected NextLink DMS offers unmatched plasma center efficiency. Nexus with Persona remains unrivaled in enabling collectors to safely meet end-market demand and lower cost per liter.

Christopher A. Simon: We recently completed the successful limited market release of our New Express plus technology with more than 60000 real world collections and we are now initiating full market release in the U S.

Christopher A. Simon: Technology is making our customers meaningfully faster and when combined with our bi Directionally connected next link Dms offers unmatched plasma center efficiencies.

Christopher A. Simon: Nexus with persona remains unrivaled and enabling enabling collectors to safely meet end market demand and lower cost per liter. We continued to enhance the nexus platform expanding its competitive advantage as the global industry standard for plasma collection.

Christopher A. Simon: We continue to enhance the Nexus platform, expanding its competitive advantage as the global industry standard for plasma collection. We are enthusiastic about the opportunity to transition our Nexus customers to our latest technology and gain share. The Plasma Collections market remains robust, supported by strong end-market demand, Frozen Plasma Inventory Deficits, and a Favorable Collections Environment. Excluding the effects of the CSL-US Transitional Supply Agreement, our core plasma business delivered an impressive 18% growth in fiscal year 2024, and we project additional growth of 8 to 12% in fiscal year 2025. We anticipate a 45% decline in CSL revenue from $155 million in fiscal year 2024 to approximately $85 million this year.

Christopher A. Simon: We are enthusiastic about the opportunity to transition our nexus customers to our latest technology and to gain share.

Christopher A. Simon: The plasma collections market remains robust supported by strong end market demand.

Christopher A. Simon: Frozen plasma inventory deficits and a favorable collections environment.

Christopher A. Simon: <unk> the effects of the CSL U S. Transitional supply agreement are core plasma business delivered an impressive 18% growth in fiscal year 2024, and we project additional growth of 8% to 12% in fiscal year 2025.

Christopher A. Simon: We anticipate a 45% decline in CSL revenue from $155 million in fiscal 2024 to approximately $85 million. This year. Therefore, our total plasma revenue guidance for fiscal year 2025 is anticipated to be in the range of negative three to <unk>.

Christopher A. Simon: Therefore, our total plasma revenue guidance for fiscal year 2025 is anticipated to be in the range of negative 3 to 6. In Blood Center, we overcame significant geopolitical challenges to grow revenue 7% in the quarter and 1% for fiscal year 2024, driven by continued strength in our apheresis portfolio. Aphoresis revenue was up nearly 13% in the fourth quarter and 5% for the year.

Christopher A. Simon: 6%.

Christopher A. Simon: In Blood center, we overcame significant geopolitical challenges to grow revenues, 7% in the quarter and 1% for fiscal year 2024, driven by continued strength in our <unk> portfolio.

Christopher A. Simon: <unk> revenue was up nearly 13% in the fourth quarter and 5% for the year, both in the quarter and fiscal year 2024 growth was disproportionately driven by increasing disposable revenue across plasma collection centers in Egypt continued strengths in red cell collections in the U S and <unk>.

Christopher A. Simon: Both in the quarter and fiscal year 2024, growth was disproportionately driven by increasing disposable revenue across plasma collection centers in Egypt, continued strength in red cell collections in the U.S., and strong demand for platelets across our key markets. Whole blood revenue declined 7% in the quarter and 9% in fiscal year 24, predominantly driven by lower volumes caused by our product rationalization efforts designed to preserve Blood Center's ability to generate durable contribution margin dollars and participate in our company-wide Due to portfolio rationalization, our Blood Center Fiscal Year 2025 revenue growth guidance is a year-over-year decline of 5 to 7 percent.

Christopher A. Simon: Strong demand for platelets across our key markets.

Christopher A. Simon: Whole blood revenue declined 7% in the quarter and 9% in fiscal year 'twenty four predominantly driven by lower volumes caused by our product rationalization efforts designed to preserve blood centers ability to generate durable contribution margin dollars and participate in our company wide margin.

Christopher A. Simon: <unk> do.

Christopher A. Simon: Due to portfolio rationalization, our blood center in fiscal year 2025 revenue growth guidance is a year over year decline up 5% to 7%.

Christopher A. Simon: Our hospital business had strong results with revenue growth of 19% in the fourth quarter and 17% in fiscal year 2024, primarily driven by vascular closure and hemostasis management. Hemostasis management revenue grew 19% in the fourth quarter and 15% for the year, driven by strong utilization of TEG 6S disposables, price increases, and continued growth of the US installed base. In the fourth quarter, we received FDA clearance for our global hemostasis heparin neutralization cartridge. This extends the capabilities of the TAG6S platform to serve fully heparinized patients in adult cardiovascular procedures and liver transplants in laboratory and point of care settings.

Christopher A. Simon: Our hospital business had strong results with revenue growth of 19% in the fourth quarter and 17% in fiscal year 2024, primarily driven by vascular closure and hemostasis management.

Christopher A. Simon: Hemostasis management revenue grew 19% in the fourth quarter and 15% for the year driven by strong utilization of TEG success disposables price increases and continued growth of the U S install base.

Christopher A. Simon: In the fourth quarter, we received FDA clearance for our global Hemostasis heparin neutralization cartridge. This.

Christopher A. Simon: <unk> extends the capabilities of the TEG success platform to serve fully heparin Ais patients and adult cardiovascular procedures, and liver transplants and laboratory and point of care settings.

Christopher A. Simon: This is an important addition to our portfolio to increase adoption by helping clinicians improve patient outcomes and standards of care. The rest of the blood management technologies franchise, which includes transfusion management and cell salvage, grew 7% in the fourth quarter and 6% for the year. Transfusion management was up due to the completion of customer implementations for both SafeTrace TX and BloodTrack, as well as growth in recurring maintenance revenue for both products. Growth in cell salvage was driven by strong utilization of disposable kits in the U.S., led by vascular closure. Interventional technologies grew 28% in the quarter and fiscal year 2024.

Christopher A. Simon: This is an important addition to our portfolio to increase adoption by helping clinicians improve patient outcomes and standards of care.

Christopher A. Simon: The rest of the blood management technologies franchise, which includes transfusion management and cell salvage grew 7% in the fourth quarter and 6% for the year transfusion management was up due to the completion of customer implementations for both safe trace TX and blood track as well as growth in recurring maintenance revenue.

Christopher A. Simon: For both products.

Christopher A. Simon: Growth in cell salvage was driven by strong utilization of disposable kits in the U S.

Christopher A. Simon: Led by vascular closure interventional technologies grew 28% in the quarter and fiscal year 2024.

Christopher A. Simon: We continue to make progress penetrating the top 600 U.S. accounts to finish the year at nearly 80 percent penetration. We also benefit from improvements in utilization at existing IC and EP accounts. We are pleased to announce that we received U.S. FDA pre-market approval, for the upsized Vascade MZPXL mid-bore venous closure device, adding MVP XL to our products mix with 58% larger collagen plugs than MVP strengthens our unique proposition of reducing the time to ambulate total post procedure time, time to hemostasis and time to discharge eligibility, broadening our reach in these high growth markets with a novel solution to support emerging catheter based ablation technology.

Christopher A. Simon: We continue to make progress penetrating the top 600 U S accounts to finish the year at nearly 80% penetration. We also benefit from improvements in utilization at existing IC and <unk> accounts.

Christopher A. Simon: We are pleased to announce that we received U S FDA pre market approval for.

Christopher A. Simon: The Upsized vast gave MVP XL mid bore venous closure device.

Christopher A. Simon: Adding MVP EXL to our product mix with 58% larger collagen plug and MVP strengthens our unique proposition of reducing the time to ambulate total post procedure time time to hemostasis and time to discharge eligibility broadening our reach in these high growth markets with them.

Christopher A. Simon: Novel solution to support emerging catheter based ablation technologies.

Christopher A. Simon: We will be initiating a limited market release in the coming weeks and look forward to a full market release later this year. The Vascade International launch is progressing as expected, contributing approximately 300 basis points of revenue growth in the quarter. In Japan, we have expanded our presence to more than 90 accounts.

Christopher A. Simon: We will be initially initiating a limited market release in the coming weeks and look forward to full market release later this year.

Christopher A. Simon: The vast vast vast gate international launch is progressing as expected contributing approximately 300 basis points of revenue growth in the quarter in Japan, we have expanded our presence to more than 90 accounts, while European penetration has been more gradual we are making meaningful progress and plan to expand into.

Christopher A. Simon: While European penetration has been more gradual, we are making meaningful progress and plan to expand into more countries in fiscal year 2025. Now, let's move on to our newly acquired products. Opsense Pressure Sensing Guidewire technology delivered nearly $10 million in revenue in the fourth quarter. Over the past several months, we cross-trained our expanded U.S. sales team, and in April, we launched both OptiWire and SavvyWire throughout our U.S. commercial channels. These products provide meaningful benefits during PCI and TAVR procedures.

Christopher A. Simon: More countries in fiscal year 2025.

Christopher A. Simon: Now, let's move on to our newly acquired products <unk> pressure sensing Guidewire technology delivered nearly $10 million in revenue in the fourth quarter.

Christopher A. Simon: Over the past several months, we cross trained our expanded U S sales team and in April we launched both op to wire and savvy wire throughout our U S commercial channels. These.

Christopher A. Simon: These products provide meaningful benefits during PCI and to have our procedures and we are excited to make them available to our interventional cardiology customers.

Christopher A. Simon: And we are excited to make them available to our interventional cardiology customers. We are also enthusiastic about the addition of the Enzo ETM esophageal cooling device acquired with Attune Medical. Enzo ETM provides significant protection against esophageal injury and, in combination with radiofrequency ablation, provides a more cost-effective solution to atrial fibrillation ablation procedures compared to other emerging ablation procedures.

Christopher A. Simon: We are also enthusiastic about the addition of the Enzo ATM esophageal cooling device acquired with Attune Medical Enzo ATM provides significant protection against this offer GL injury and in combination with radiofrequency ablation provides a more cost effective solution to atrial fib.

Christopher A. Simon: Relation ablation procedures compared to other emerging ablation procedures.

Christopher A. Simon: With an addressable market of approximately $300 million, growing in the low teens, we anticipate esophageal protection to become the standard of care used in conjunction with radiofrequency ablation procedures. We look forward to continued revenue growth acceleration from our expanded U.S. commercial launch in June. Our development and commercialization strategies are working. We continue to advance our leadership in blood management technologies by capitalizing on significantly expanded R&D and clinical capabilities to further develop new and existing products while we expand commercially to cover the majority of the top accounts in the $700 million underpenetrated TEMP.

Christopher A. Simon: With an addressable market of approximately $300 million growing in the low teens, we anticipate a soft gel protection to become the standard of care used in conjunction with radiofrequency ablation procedures. We look forward to continued revenue growth acceleration from our expanded U S commercial launch in June.

Christopher A. Simon: Our development and commercialization strategies are working we continue to advance our leadership and blood management technologies by capitalizing on significantly expanded R&D and clinical capabilities to further develop new and existing products, while we expand commercially to cover the majority of the topic.

Christopher A. Simon: Counts in the $700 million underpinned Underpenetrated Tam.

Christopher A. Simon: In interventional technologies, we are committed to commercial execution, launching our recent portfolio additions and augmenting growth through R&D and M&A. With the absence and attuned acquisitions, we expect Hospital will become our largest business unit this year, driving disproportionate growth and Margin Expansion. We expect Hospital to report revenue growth of 27 to 32% in fiscal year 2025.

Christopher A. Simon: In intervention technologies, we are committed to commercial execution launching our recent portfolio additions and augmenting growth through R&D and M&A.

Christopher A. Simon: With the <unk> and <unk> acquisitions, we expect hospital will become our largest business unit this year driving a disproportionate growth.

Christopher A. Simon: And margin expansion.

Christopher A. Simon: We expect hospital reported revenue growth of 27% to 32% in fiscal year 2025.

Christopher A. Simon: Excluding revenue from recent acquisitions, we expect this business to deliver 13-16% organic revenue growth. Overall, we expect another strong year as we evolve our portfolio to accelerate revenue growth and margin expansion. For the total company, we expect reported revenue growth to be in the range of 5 to 8 percent. Excluding recent acquisitions and FX, we expect total company organic growth to be flat to 3% in fiscal year 2025.

Christopher A. Simon: Excluding revenue from recent acquisitions, we expect this business to deliver 13% to 16% organic revenue growth.

Christopher A. Simon: Overall, we expect another strong year as we evolve our portfolio to accelerate revenue growth and margin expansion for the total company. We expect reported revenue growth to be in the range of 5% to 8%.

Christopher A. Simon: Excluding recent acquisitions and FX, we expect total company organic growth to be flat to 3% in fiscal year 2025.

Christopher A. Simon: In closing, I want to express my gratitude to our customers and our shareholders for their continued support, and to the Haemonetics employees worldwide for their exemplary work to advance our mission and their dedication to our customers. Together, we continue to build our momentum towards a very bright future. Now I'll pass it over to James to discuss the rest of our financial performance and fiscal year 2025 guidance. Thank you, Chris, and good morning, everyone.

Christopher A. Simon: In closing I want to express my gratitude to our customers and our shareholders for their continued support.

James Derecka: And the human <unk> employees worldwide for their exemplary work to advance our mission and their dedication to our customers together, we continue to build our momentum towards a very bright future.

Christopher A. Simon: Now I will pass it over to James to discuss the rest of our financial performance in fiscal year 2025 guidance.

James Derecka: Thank you, Chris and good morning, everyone.

James Derecka: As I reflect on my two-year anniversary at Haemonetics, I'm excited about the opportunities ahead of us. Over the past two years, we have navigated shifting dynamics and supported a delayed CSL transition while continuing to grow our margins, invest in our business, enhance our solutions, and acquire new, high-growth products. While not all of our efforts are reflected in our results immediately, especially when combined with the extended dilutive impacts of the U.S. transitional agreement in plasma, I am highly optimistic about our ability to accelerate revenue growth and expand our gross and operating margins over the next several years.

James Derecka: As I reflect on my two year anniversary at <unk> X I am excited about the opportunities ahead of us.

James Derecka: Over the past two years, we have navigated shifting dynamics and supported a delayed CSL transition, while continuing to grow our margins invested our business enhance our solutions and acquire new high growth products.

James Derecka: While not all of our efforts are reflected in our results immediately, especially when combined with the extended dilutive impacts of the U S transitional agreement in plasma.

James Derecka: Hi, I'm highly optimistic about our ability to accelerate revenue growth and expand our gross and operating margins over the next several years.

James Derecka: We finished our fourth quarter with an adjusted gross margin of 54%, an increase of 220 basis points compared with the prior year. Adjusted gross margin for fiscal 24 was 54.4%, an increase of 120 basis points when compared with the same period of the prior year.

James Derecka: We finished our fourth quarter with an adjusted gross margin of 54% an increase of 220 basis points compared with the prior year.

James Derecka: Adjusted gross margin for fiscal 'twenty, four was 54, 4% an increase of 120 basis points when compared with the same period of the prior year.

James Derecka: The continuous transformation of our portfolio played a disproportionate role in driving gross margin expansion in our results, with both product mix and volume contributing meaningfully. However, these benefits were partially offset by changes in FX, both in the quarter and fiscal 24, and $6.8 million of cumulative charges related to a voluntary product recall in our whole blood business. Adjusted operating expenses in the fourth quarter were $120.9 million, an increase of $17 million, or 17 percent, compared with the fourth quarter of the prior year.

James Derecka: The continuous transformation of our portfolio played a disproportionate role in driving gross margin expansion and our results with both product mix and volume contributing meaningfully.

James Derecka: These benefits were partially offset by changes in FX, both in the quarter and fiscal 'twenty four.

James Derecka: And $6 8 million of cumulative charges related to a voluntary product recall in our whole blood business.

James Derecka: Adjusted operating expenses in the fourth quarter were $129 million.

James Derecka: An increase of $17 million or 17% compared with the fourth quarter of the prior year.

James Derecka: As a percentage of revenue, adjusted operating expenses increased by 120 basis points to 35.2%. The increase in adjusted operating expenses in the quarter was due to several factors. First, the integration of Opsense into our product portfolio. Given that this was the first full quarter with Opsense, the anticipated benefits of Synergies and Scale have not yet been fully realized. We expect this to evolve as we advance our commercial initiatives across our key strategic U.S. accounts beginning in fiscal 2025. Another factor was elevated freight costs, primarily attributed to macroeconomic hurdles affecting logistics and constraints in our plasma inventory levels.

James Derecka: As a percentage of revenue adjusted operating expenses increased by 120 basis points to 35, 2% the.

James Derecka: The increase in adjusted operating expenses in the quarter was due to several factors.

James Derecka: First the integration of <unk> into our product portfolio given that this was the first full quarter with <unk> the.

James Derecka: Fitted benefit subsidiary <unk> and scale have not yet been fully realized we expect this to evolve as we advance our commercial initiatives across our key strategic U S accounts beginning in our fiscal 2025.

James Derecka: Another factor was elevated freight costs, primarily attributed to macro economic hurdles affecting logistics and constraints and our plasma inventory levels.

James Derecka: We are in a much better inventory position today and do not anticipate similar levels of expedited freight going forward. Finally, we also had higher performance-based compensation expenses, along with continuous growth investments in our business. Adjusted operating expenses for fiscal 24 were $435.7 million, an increase of $32.1 million, or 8% compared with the prior year. As a percentage of revenue, adjusted operating expenses decreased by 120 basis points to 33.3%.

James Derecka: We are in a much better inventory position today and do not anticipate similar levels of expedited freight going forward.

James Derecka: Finally, we also had higher performance based compensation expenses, along with continuous growth investments into our business.

James Derecka: Adjusted operating expenses for fiscal 'twenty, four were $435 7 million, an increase of $32 1 million or 8% compared with the prior year.

James Derecka: As a percentage of revenue adjusted operating expenses decreased by 120 basis points to 33, 3%.

James Derecka: In fiscal 2024, a combination of operating leverage improvements and savings from our Operational Excellence Program more than offset increases in adjusted operating expenses and growth investment. These investments are primarily aimed at advancing innovation and expanding market share in our hospital business, and are expected to further enhance our operating leverage in the coming years. For the fourth quarter, adjusted operating income was $64.6 million, an increase of $10.7 million, or 20%, and our adjusted operating margin was 18.8%.

James Derecka: In fiscal 2020 for a combination of operating leverage improvements and savings from our operational excellence program more than offset increases in adjusted operating expenses and growth investments.

James Derecka: These investments are primarily aimed at advancing innovation and expanding market share in our hospital business and are expected to further enhance our operating leverage in the coming years.

James Derecka: Fourth quarter adjusted operating income was $64 6 million, an increase of $10 7 million or 20% and our adjusted operating margin was at 18, 8%.

James Derecka: Our adjusted operating margin in the fourth quarter had approximately 200 basis points of impact from one-time items within our adjusted operating expenses. Adjusted operating income for fiscal 2024 was $276.5 million, an increase of $58.1 million or 27% compared with the prior year at 21.1% of revenue. The 240 basis points expansion in the adjusted operating margin in Fiscal 24 was due to improving leverage of our business, coupled with approximately $5 million in net savings from OEP. The adjusted income tax rate was 21% for the fourth quarter and 23% for fiscal year 24, compared with 23% and 24% for the respective periods of the prior year.

James Derecka: Our adjusted operating margin in the fourth quarter at approximately 200 basis points of impact from onetime items within our adjusted operating expenses.

James Derecka: Adjusted operating income for fiscal 2024 was $276 5 million.

James Derecka: An increase of $58 1 million or 27% compared with the prior year at 21, 1% of revenue.

James Derecka: The 240 basis points expansion in the adjusted operating margin in fiscal 'twenty four was due to improving leverage of our business, coupled with approximately $5 million and net savings from OE P.

James Derecka: The adjusted income tax rate was 21% for the fourth quarter and 23% for fiscal year, 'twenty, four compared with 23% and 24% for the respective periods of the prior year.

James Derecka: Fourth quarter adjusted net income was $46 million, up 6.8 million, or 17%, and adjusted earnings per diluted share was 90 cents, up 17% when compared with the fourth quarter of fiscal year 2023. Adjusted net income for fiscal year 24 was $203.6 million, up $47.9 million, or 31%. And adjusted earnings per diluted share was $3.96, up 31% when compared with the prior year. Changes in the adjusted income tax rate, interest expense, and FX had a $0.02 negative impact on the fourth quarter and a $0.05 negative impact on the full year adjusted earnings per diluted share when compared with the prior year.

James Derecka: Fourth quarter, adjusted net income was $46 million up.

James Derecka: Up $6 8 million or 17% and adjusted earnings per diluted share was <unk> 90.

James Derecka: Up 17% when compared with the fourth quarter of fiscal year 2023.

James Derecka: Adjusted net income for fiscal year, 'twenty, four was $203 6 million.

James Derecka: Up $47 9 million or 31% and adjusted earnings per diluted share was $3 96 up.

James Derecka: Up 31% when compared with the prior year.

James Derecka: Changes in the adjusted income tax rate interest expense and FX had a <unk> <unk> negative impact on the fourth quarter and a <unk> <unk> negative impact on the full year adjusted earnings per diluted share when compared with the prior year.

James Derecka: Turning now to Select Balance Sheet and Cash Flow Highlights. Cash on hand at the end of our fiscal 2024 was $179 million, a decrease of $106 million since the beginning of this fiscal year, primarily due to the option acquisition, which was financed through a combination of cash on hand and a revolving credit facility. In our fourth quarter, cash flow from operating activities was $64 million, and free cash flow before restructuring and restructuring-related costs was $59 million. Cash flow in the quarter was primarily driven by net income and benefits from working capital. In fiscal year 24, cash flow from operations was $182 billion, primarily attributed to net income partially offset by increased inventory.

James Derecka: Turning now to select balance sheet and cash flow highlights.

James Derecka: Cash on hand at the end of our fiscal 2024 was $179 million a decrease of $106 million since the beginning of this fiscal year, primarily due to the <unk> acquisition, which was financed through a combination of cash on hand, and our revolving credit facility.

James Derecka: And our fourth quarter cash flow from operating activities was $64 million and free cash flow before restructuring and restructuring related costs was $59 million.

James Derecka: Cash flow in the quarter was primarily driven by net income and benefits from working capital.

James Derecka: In fiscal year 'twenty for cash flow from operations was $182 million, primarily attributed to net income partially offset by increased inventory.

James Derecka: After taking into account $64 million in CapEx, net of proceeds from the sale of property, plant, and equipment, we had $127 million of free cash flow before restructuring and restructuring-related costs. As you will recall, we anticipated our fiscal year 2024 free cash flow before restructuring and restructuring-related costs to be in the range of $160 to $180 million. The outlook we have provided overestimates the impact of certain add-backs related to restructuring and restructuring-related spend.

James Derecka: After taking into account $64 million in Capex net of proceeds from the sale of property plant and equipment, we had a $127 million of free cash flow before restructuring and restructuring related costs.

James Derecka: As you will recall, we anticipated our fiscal year 2020 for free cash flow before restructuring and restructuring related costs to be in the range of $160 million to $180 million.

James Derecka: The outlook, we had provided overestimated the impact of certain add backs related to restructuring and restructuring related spend going forward, we will provide guidance for free cash flow.

James Derecka: Going forward, we will provide guidance for free cash flow. We also have some important updates about our credit facility. In April, we refinanced our existing credit facility with a new $1 billion five-year facility comprised of a $250 million unsecured term loan A and a $750 million unsecured revolving credit facility with a current drawn balance of about $230 million used to help fund our recent acquisitions of Opsense and Attune Medical. Our new credit facility includes a $330 million increase in our revolver capacity and provides enhanced covenant flexibility, a Haemonetics is currently utilizing two interest rate swaps with a blended fixed interest rate of 4.12% and a current notional value of $211 million to mitigate interest rate risk.

James Derecka: We also have some important updates about our credit facility.

James Derecka: In April we refinanced our existing credit facility with a new 1 billion dollar five year facility comprised of a $250 million unsecured term loan a.

James Derecka: And a $750 million unsecured revolving credit facility with a current drawn balance of about $230 million used to help fund our recent acquisitions of <unk> and attuned medical.

James Derecka: Our new credit facility includes a $330 million increase in our revolver capacity and provides enhanced covenant flexibility a testament to the strength of our balance sheet and credit profile.

James Derecka: <unk> is currently utilizing two interest rate swaps with a blended fixed interest rate of four 1%, 2% and a current notional value of $211 million to mitigate interest rate risk.

James Derecka: These swaps will mature in June 2025, and we have plans to evaluate and determine the appropriate risk management strategy thereafter. Taking into account our $500 million unsecured convertible bonds due March 26, our net leverage ratio was at approximately 2.1 times EBITDA at the end of our fourth quarter, increasing to approximately 2.4 times EBITDA following the close of Attune Medical on April 1. With our new credit agreement and our ability to generate strong EBITDA and free cash flow, we estimate our available capital capacity to be in excess of $1 billion by the end of Fiscal 25 and up to about $2 billion by the end of Fiscal 26, after nearly $500 million of capital we have already allocated to M&A and share buybacks since we issued our long-range plan in June of 2022.

James Derecka: Swaps will mature in June of 2025, and we have plans to evaluate and determine the appropriate risk management strategy thereafter.

James Derecka: Taking into account, our 500 million dollar unsecured convertible bonds. Due March 26, our net leverage ratio was at approximately two one times EBITDA at the end of our fourth quarter, increasing to approximately two four times EBITDA following the close of <unk>.

James Derecka: <unk> medical on April one.

James Derecka: With our new credit agreement and our ability to generate strong EBITDA and free cash flow, we estimate our available capital capacity to be in excess of $1 billion by the end of fiscal 'twenty, five and up to about $2 billion by the end of fiscal 'twenty six after nearly 500 million.

James Derecka: Of capital, we have already allocated to M&A and share buybacks since we issued our long range plan in June of 2022.

James Derecka: We plan to continue to leverage our access to capital to further expand our product portfolio and lay the foundation for additional growth, including additional strategic token acquisitions for our interventional technologies portfolio in the near term. Before I discuss the rest of our fiscal year 2025 guidance, I'd like to reflect on where we are in our transformational growth journey. In the first half of our long-range plan, we delivered revenue and adjusted earnings for diluted share growth that exceeded our expectations. Our success can be attributed to several key factors. First, unprecedented volume growth in plasma collections driven by a rebound from the COVID-19 pandemic.

James Derecka: We plan to continue to leverage our access to capital to further expand our product portfolio and lay the foundation for additional growth, including additional strategic tuck in acquisitions for our interventional technologies portfolio in the near term.

James Derecka: The volume growth we experienced in the first half of our plan was significantly higher than our original projection. Second, a delayed transition of CSL's U.S. disposable business, resulting in the retention of the majority of their U.S. volume through the end of our fiscal year 24. This provided us with additional excess cash flow we used to fund recent acquisitions in hospitals. Third, strong commercial execution in vascular closure, surpassing our original deal model and enabling deeper penetration into the top 600 strategic accounts in the U.S. with the help of a series of additional strategic investments focused on broadening our commercial footprint. And finally, overcoming substantial macroeconomic headwinds, including approximately 700 basis points of margin pressure stemming from inflationary headwinds, supply chain disruptions, and volatility in foreign exchange rates, among other challenges.

James Derecka: Before I discuss the rest of our fiscal year 2025 guidance I'd like to reflect on where we are and our transformational growth journey.

James Derecka: In the first half of our long range plan, we delivered revenue and adjusted earnings per diluted share growth that exceeded our expectations. Our success can be attributed to several key factors.

James Derecka: First unprecedented volume growth in plasma collections, driven by a rebound from the COVID-19 pandemic the volume growth we experienced in the first half of our plan was significantly higher than our original projections.

James Derecka: Delayed transition of Csl's U S disposable business, resulting in the retention of the majority of their U S volume through the end of our fiscal year 'twenty four.

James Derecka: This provided us with additional excess cash flow, we used to fund recent acquisitions and hospital.

James Derecka: Third strong commercial execution and vascular closure, surpassing our original deal model and enabling deeper penetration into the top 600 strategic accounts in the U S. With the help of a series of additional strategic investments focused on broadening our commercial footprint.

James Derecka: And finally, overcoming substantial macroeconomic headwinds, including approximately 700 basis points of margin pressure stemming from inflationary headwinds supply chain disruptions and volatility in foreign exchange rates among other challenges.

James Derecka: While revenue and adjusted EPS growth were robust and ahead of our plan, the combination of underlying drivers and actions we took to support this growth temporarily dampened our margin expansion plans, particularly in the adjusted gross margin. As we enter the second half of our LRP, we plan to accelerate our margin expansion. Our LRP goal of the high 20s adjusted operating margin in fiscal 26 is intact and will be driven by approximately 400 to 600 basis points of projected expansion in our adjusted gross margins, coupled with improving operating leverage in our business. Our strategy is clear and includes benefits from volume, mix, price, and higher operating leverage. In hospitals, we will leverage our commercial footprint to promote an expanded hospital portfolio, requiring minimal additional investment.

James Derecka: While revenue and adjusted EPS growth were robust and ahead of our plan the combination of underlying drivers and actions. We took to support this growth temporarily dampened our margin expansion plans, particularly in the adjusted gross margin.

James Derecka: As we enter the second half of our LLP.

James Derecka: We plan to accelerate our margin expansion, our <unk> goal of the high Twenty's adjusted operating margin in fiscal 'twenty six is intact and will be driven by approximately 400 to 600 basis points of projected expansion in our adjusted gross margins coupled with.

James Derecka: <unk> operating leverage in our business.

James Derecka: Our strategy is clear and includes benefits from volume mix price and higher operating leverage.

James Derecka: And hospital, we will leverage our commercial footprint to promote an expanded hospital portfolio requiring minimal additional investments.

James Derecka: Recent acquisitions of Opsense and Attune Medical will further expedite our transition toward high-growth, high-margin products. In plasma, changes in customer mix and technology upgrades will continue to improve margins and drive growth on top of collections momentum. CSL's U.S. supply agreement has a dilutive impact on our corporate gross margins.

James Derecka: Our recent acquisitions of <unk> and.

James Derecka: <unk> medical will further expedite our transition towards high growth high margin products.

James Derecka: In plasma changes in customer mix and technology upgrades will continue to improve margins and drive growth on top of collections momentum.

James Derecka: Csl's U S supply agreement has a dilutive impact on our corporate gross margins as such continued transition away from our Pcs two devices to the latest Nexus with persona technology will drive meaningful improvements.

James Derecka: As such, continued transition away from our PCS2 devices to the latest Nexus with Persona technology will drive meaningful improvement. In Blood Center, we continue to rationalize parts of the business, predominantly in whole blood, with no impact on contribution margin dollars while significantly improving its contribution margin percentage. And lastly, aligned with our commercial objectives, we are pursuing additional improvements within our operations, including additional OEP savings, the continued rationalization of the manufacturing footprint, and addressing the remainder of stranded costs and inefficiencies from CSL's delayed transition, which will help generate additional cost savings and ensure increased productivity as we move forward with our plan in fiscal year 2025.

James Derecka: And blood Center, we continue to rationalize parts of the business predominantly in whole blood with no impact on contribution margin dollars, while significantly improving its contribution margin percent.

James Derecka: And lastly, align with our commercial objectives, we are pursuing additional improvements within our operations, including additional OE savings.

James Derecka: Continued rationalization of the manufacturing footprint and addressing the remainder of stranded costs and inefficiencies from CSL is delayed transition, which will help generate additional cost savings and ensure increased productivity as we move forward with our plan.

James Derecka: In fiscal year 2025, we expect the adjusted operating margin to be in the range of 23% to 24% representing a substantial installment towards our <unk> goals.

James Derecka: We expect the Adjusted Operating Margin to be in the range of 23 to 24 percent, representing a substantial installment towards our LRP goals. Our fiscal year 25 guidance includes approximately $15 million of gross savings from our OEP program, with about $10 million of that benefiting our adjusted operating margin. Given the timing of specific cost-savings initiatives and business opportunities outlined in our plan, we anticipate that the operating margin improvement outlined in our fiscal year 2025 guidance will be back-end loaded with gradual improvements throughout the year.

James Derecka: Our fiscal year 'twenty five guidance includes approximately $15 million of.

James Derecka: Of gross savings from our ODP program with about $10 million of that benefiting our adjusted operating margins.

James Derecka: Given the timing of specific cost savings initiatives and business opportunities outlined in our plan, we anticipate that the operating margin improvement outlined in our fiscal year 2025 guidance will be backend loaded with gradual improvements throughout the year.

James Derecka: Our adjusted earnings per diluted share guidance for fiscal year 2025 is a range of $4.45 to $4.75, or 12 to 20% growth when compared with fiscal year 2024. At the midpoint of our guidance range, we anticipate approximately 30 cents of headwind from interest expense, FX, income tax, and share count, with interest expense being responsible for more than half of that. CSL's transitional agreement represents just under 10% of the midpoint of our adjusted earnings for diluted share guidance for fiscal year 25, compared with about 20% of our adjusted EPS in fiscal year 24. Our ability to generate cash flow is strong, and we expect our free cash flow in fiscal year 25 to be in the range of $130 million to $180 million.

James Derecka: Our adjusted earnings per diluted share guidance for fiscal year 2025, as a range of $4 45 to.

James Derecka: To $4 75.

James Derecka: Or 12, 20% growth when compared with fiscal year 'twenty four.

James Derecka: At the mid point of our guidance range, we anticipate approximately 30 <unk> of headwind from interest expense FX income tax and share count with interest expense being responsible for more than half of that.

James Derecka: CSL is transitional agreement represents just under 10% of the midpoint of our adjusted earnings per diluted share guidance in fiscal year, 'twenty five compared with about 20% of our adjusted EPS in fiscal year 'twenty four.

James Derecka: Our ability to generate cash flow is strong and we expect our free cash flow in fiscal year 'twenty five to be in the range of $130 million to $180 million.

James Derecka: Yes.

James Derecka: Our fiscal year 24 performance underscores our resilience, agility, and commitment to our long-range plan as we continue to execute our initiatives and drive sustainable growth both on the top and bottom lines. Our capital allocation priorities remain unchanged, and we will continue to deploy cash to accelerate our growth momentum, particularly as we further expand our product portfolio and look for opportunities to increase our returns through opportunistic share buybacks and debt repayments. With a clear vision, a well-defined plan, and a dedicated team, I'm confident in our ability to deliver long-term value.

James Derecka: Our fiscal year 'twenty for performance underscores our resilience agility and commitment to our long range plan as we continued to execute our initiatives and drive sustainable growth both on the top and bottom line.

James Derecka: Our capital allocation priorities remain unchanged and we will continue to deploy cash to accelerate our growth momentum, particularly as we further expand our product portfolio and look for opportunities to increase our returns through opportunistic share buybacks and debt repayment.

James Derecka: With a clear vision of well defined plan and a dedicated team I am confident in our ability to deliver long term value.

James Derecka: We look forward to updating you on our progress in the quarters to come. This concludes our remarks for today, and now I'll turn it back to the operator for Q&A. Thank you. At this time, we will conduct a question and answer session. As a reminder, to ask a question, you will need to press star 11 on your telephone and wait for your name to be announced.

James Derecka: We look forward to updating you on our progress in the quarters to come.

James Derecka: This concludes our remarks for today and now I'll turn it back to the operator for Q&A.

Speaker Change: Thank you.

James Derecka: We will conduct a question and answer session. As a reminder to ask a question you will need to press star one on your telephone and wait for your name to be announced.

Speaker Change: Your question. Please press star one again, please standby, while we compile the Q&A roster.

Operator: To withdraw your questions, please press star 11 again. Please stand by while we compile the Q&A roster. Our first question comes from Anthony Petrone at Mizuno Group. Your line is open.

James Derecka: Our first question comes from Anthony Petrone Aetna's Group Your line is open.

Anthony Charles Petrone: Thank you, and congratulations on a strong end to the year here, and apologies for the noise. Chris, maybe I'll start with plasma, and then I'll have a couple of follow-ups for Jim on margin. Let me just see the confidence here in the CSL ramp down. How much communication between Haemonetics and CSL is there just to give you that confidence?

Anthony Charles Petrone: Thank you and congratulations on a strong into the year here and apologies for the noise.

Anthony Charles Petrone: Chris maybe I'll start with <unk>.

Anthony Charles Petrone: Plasma and then I'll have a couple of follow ups to Jim on margins.

Anthony Charles Petrone: Maybe just see the confidence here in the CSL ramp down how much communication between <unk> and CSL just to give you that confidence.

Christopher A. Simon: Uh, is that, you know, it's down 45 and then should we expect a similar phase out in the following year? And then the second one on plasma is just the underlying market seems to still be in that low double-digit range. And to give you a little bit of the, you know, drivers that you're seeing there, it seems like there's still good, healthy demand from the fractionators to continue to build inventory. Yeah, Anthony, thanks for the questions. Regarding plasma, I'll kind of take them in reverse order.

Anthony Charles Petrone: With that it's down <unk> 45, and then should we expect a similar phase out.

Speaker Change: And the following year.

Anthony: And then the second one on plasma is just the underlying market seems to still be in that low double digit range.

Speaker Change: Can you give us a little bit of the.

Speaker Change: Drivers that youre seeing there it seems like there is still.

Speaker Change: Good healthy demand from the fractionator is to continue to build inventory.

Christopher A. Simon: Hi.

Speaker Change: Yes, Anthony Thanks for the questions.

Speaker Change: Regarding plasma.

Speaker Change: In reverse order.

Christopher A. Simon: You know, we're delighted to have served the industry through a period of unprecedented robust growth, 43% a year ago, 18% this past year, and we're still projecting high single-digit, low double-digit growth of the basic business. So, you know, there are a number of factors there. Collectors are at different stages of replenishing their inventory.

Speaker Change: We're delighted to have serve the industry through.

Christopher A. Simon: Period.

Christopher A. Simon: Unprecedented robust growth, 43% a year ago, 18% this past year, and we're still projecting high single low double digit growth of the basic business. So yes.

Christopher A. Simon: Number of factors there collectors are at different stages of replenishing their inventory.

Christopher A. Simon: It's a very conducive environment to be collecting, particularly here in the States, although we're seeing equal growth now outside the U.S., which is fun. And our technology is proving itself in real-time collections. The combination of Persona and Express Plus is unrivaled, and it's driving a level of productivity from our Nexus customers that's really, you know, fun to watch and an exciting lift for us. With regard to the committed volumes from CSL, we've put into our guidance that approximately $85 million is a commitment between the two companies. Obviously, that will leave us with some other business at the end of our fiscal year. What happens in FY26, I mean, we'll get to that when we're ready.

Christopher A. Simon: It's a very conducive environment to be collecting particularly here in the states, although were seeing equal growth now outside the U S which is fun.

Christopher A. Simon: And our technology is proving itself in real time collections the combination of.

Christopher A. Simon: Of persona and express plus is unrivaled and it's driving a level of productivity from our <unk> customers.

Christopher A. Simon: Really.

Christopher A. Simon: Fun to watch and then citing lift for us with regards to the committed volumes from CSL, what we've put into our guidance that approximately $85 million is a commitment between the two companies.

Christopher A. Simon: Obviously that will leave us with some of their business at the end of our fiscal year, what happens in FY 'twenty six.

Christopher A. Simon: We will guide to that when we're ready and obviously if theres changes this year, we will update.

Christopher A. Simon: And obviously, if there are changes this year, we will update to be clear about that. But, you know, one of the things we cared a lot about, you know, in taking the long view and being there for all of our customers, we wanted, you know, certainty and continuity. And what we have here is a gradual ramp-down, which meets both companies' needs, and it gives us the ability to do what we are doing across the board, which is, you know, scale our business, address stranded costs, create capacity for additional product conversions, and share gains elsewhere in the business.

Christopher A. Simon: To be clear about that but.

Christopher A. Simon: One of the things, we cared a lot about <unk>.

Christopher A. Simon: The long view and being there for all of our customers that we want to certainty and <unk>.

Christopher A. Simon: Continuity and what we have here is a gradual ramp down which meets both companies needs and it gives us the ability to do what we're doing across the board which is.

Christopher A. Simon: Scale, our business address stranded cost create capacity for additional product conversions and share gains elsewhere in the business and what we have and what's reflected in this guidance allows us to do that and more.

Christopher A. Simon: And what we have and what's reflected in this guidance allows us to do that and more. That's very helpful. And just quickly for Jim, on margin, a nice step up 23 to 24% guidance that the LRP calls for in the high 20s.

Christopher A. Simon: That's very helpful and just quickly for Jim on margin nice step up 23% to 24% guidance.

Christopher A. Simon: The LRT call score.

Anthony Charles Petrone: So maybe just a little bit of visibility on the drivers this year. How much is restructuring versus mixed price, and what is the remainder to get you to that LRP target? Thanks again and congratulations.

Speaker Change: Hi, <unk>, so maybe just a little bit.

Anthony Charles Petrone: Visibility.

Jim: On the drivers this year how much is it.

Jim: Restructuring versus mixed price.

Jim: And what is the remainder of that get you to that LLC target, Thanks, again and congratulations.

Christopher A. Simon: Yeah, let me start, Anthony. It's Chris, because James is going to give you the breakdown and quantify this. But I think what you're observing here, both in our performance and our guidance, is our LRP at work. And at the core of this is meaningful changes to the composition of our product portfolio. So when we walk through this, we've got a hospital business with reported growth in our guidance of, you know, 30%, right?

Chris: Yes, let me start Anthony it's Chris James is going to give you the breakdown and quantify this but I think what youre observing here both in our performance and our guidance is our RP at work and at the core of this is meaningful changes to the composition of our product portfolio.

Christopher A. Simon: So when we walk through this we've got a hospital business with reported growth in our guidance.

Christopher A. Simon: It's going to be a $600 million business in our estimation this year, and, you know, a much higher gross margin. It's a function of, you know, volume, mix, and price that all lead to operating leverage, given the investments we've already made in our development and commercial footprint. So hospitals are the disproportionate contributor.

Christopher A. Simon: 30% is going to be a $600 million business, our anticipation this year and much higher gross margin.

Christopher A. Simon: A function of volume and mix and price that all leads to operating leverage given the investments we've already made in our development and commercial footprint. So hospital is the disproportionate contributor its benefits that we've got a tune in op since coming into the mix. So that's all very exciting.

Christopher A. Simon: It benefits that we've got, you know, a tune and ops sense coming into the mix. So, you know, that's all very exciting for us and leads us. With regard to plasma, it's also a mixed story, right?

Christopher A. Simon: And for US and leads us with regards to plasma. It's also a mixed story right as we transition off the U S. Pcs to supply agreement converting other customers upgrading kind of advancing our footprint with Nexus with persona with express plus is high octane fuel and really power.

Christopher A. Simon: As we transition off the U.S. PCS2 supply agreement, converting other customers, upgrading, kind of advancing our footprint with, you know, Nexus, Persona, Express Plus is high-octane fuel and really powers us. We're delighted that the blood center business is joined in the mix here as well. The portfolio rationalization, you know, we'll cut back on, you know, revenue dollars. That's implied in our guidance. But the contribution, the dollars coming off of that business and the margin associated with it, the percentages, are much improved.

Christopher A. Simon: US we're delighted that the blood center business has joined in the mix here as well the portfolio rationalization.

Christopher A. Simon: Cut back on the revenue dollars, that's implied in our guidance, but the contribution the contribution dollars coming off of that business and the margin associated at the percentages much improved.

Christopher A. Simon: So, you know, and then to your question directly around productivity, smaller total dollars but a much greater pass through as we embed operational excellence into the fabric of the organization. So I'll let James quantify it a bit further. But you are observing our plans, and the second half of this LRP is going to be defined by margin expansion and growth. Yeah, thanks, Chris.

Christopher A. Simon: And then to your question directly around productivity.

Christopher A. Simon: Our total dollars, but a much greater pass through as we embed operational excellence into the fabric of the organization. So I'll, let James quantify it a bit further but you are observing our plans in the second half of this LLP is going to be defined by margin expansion and growth.

James Derecka: Yes, Thanks, Chris.

James Derecka: I think.

James Derecka: And I think, you know, for fiscal year 2025, I'll really start more from a quantitative aspect. As I said in the remarks, it's going to be 400 to 600 basis points of gross margin improvement. That's going to get us to our LRP target, and we're going to see a nice piece of that come through in fiscal 25. So, you know, it'll be gradual throughout the year with a little bit more towards the end of the year. That sets the stage for what Chris talked about.

James Derecka: For fiscal.

James Derecka: Fiscal year 2025.

James Derecka: I'll really start more from a quantitative aspect that I said in the remarks, it's going to be $4 to 600 basis points of gross margin improvement that's going to get us to our <unk> target and we're going to see a nice a nice piece of that come through.

James Derecka: In fiscal 'twenty five so that.

James Derecka: It'll be it'll be gradual throughout the year.

James Derecka: Bit more towards towards the end of the year.

James Derecka: That sets the stage for what Chris talked about it starts with gross margin drip.

Operator: You know, it starts with gross margin driven by mix and certainly productivity. But then it sets the stage for the gains that we will get from leveraging the hospital business. And that will start to come through more towards the end of this year and into next year. So you'll see then the incremental margin improvement, you know, we've guided to about 23.5% this year. And next year, then you'll see a bit more on the gross margin line.

Operator: Driven by mix and certainly productivity, but then it sets the stage for the.

Operator: The gains that we will get from leveraging the hospital business and that will start to come through more towards the end of this year and into next year. So you'll see then the incremental margin improvement.

Operator: We've guided to about 23, 5% this year and next year then.

Operator: Youll see a bit more on the gross margin line, but you'll really start to see it come through.

Lawrence Scott Solow: But you'll really start to see it come through in terms of leverage and then the hospital business. And that's what's going to get us up into that, you know, 27% range or higher as we go forward. Thank you so much.

Lawrence Scott Solow: In terms of leverage.

Lawrence Scott Solow: And then the hospital business and Thats whats going to get us up into that 27.

Lawrence Scott Solow: <unk> range or higher as we go forward.

Speaker Change: Thank you so much.

Christopher A. Simon: One moment for the next question. Our next question comes from Larry Solow with CJS Securities. Your line is open.

Speaker Change: One moment for the next question.

Christopher A. Simon: Our next question comes from Larry Solow with CJS Securities. Your line is open.

Christopher A. Simon: Great, thank you. I guess, first question, just follow up on the plasma, on the non-CSL portion, Chris. I guess the 10 to 12 percent growth, is that, you know, just give us an idea. Is the market still growing that sort of 10 to 12 percent? I imagine there's a little bit of price in there for you guys. What about just share shifts, maybe not only this year but going forward, outside of the CSL piece? Do you see opportunities for maybe some share gains and some of that baked into this year? Yeah, Larry, thanks for the question. Look, it's all the above, right?

Lawrence Scott Solow: Great. Thank you I guess first question just to follow up on the plasma.

Christopher A. Simon: On the on the non CSL portion, Chris I guess, the 10% to 12% growth.

Chris: Could you just give us some idea as the market is still growing that sort of 10 to 12, I imagine is a little bit of price in there for you guys.

Chris: What about just share shifts maybe not only this year, but going forward outside of the CSL piece do you see opportunities for maybe some share gains and some of that baked into this year's outlook.

Christopher A. Simon: We look at the underlying growth in demand, both here in the States and now increasingly internationally. We're enthusiastic about that. Obviously, customers are at different stages of inventory replenishment, and they have different levels of focus on total volume versus driving productivity, which is universal across all of our customers now.

Chris: Yes. Thanks for the question look it's all the above right.

Christopher A. Simon: We look at the underlying growth in demand both here in the states and now increasingly internationally. We're enthusiastic about that obviously customers are at different stages of inventory replenishment. They have different levels of focus on total volume versus driving productivity, which is universal across <unk>.

Christopher A. Simon: So, that's the biggest factor. We are in the process of meaningfully upgrading the existing base Nexus business to Persona and Express Plus. That has further margin benefits for us. And then, yeah, we've done two things here over the first half of the LRP. I think we've built real trust and confidence by playing the long game being there.

Christopher A. Simon: All of our customers now so.

Christopher A. Simon: That's the biggest factor we are in the process of.

Christopher A. Simon: Meaningfully upgrading the existing base Nexus business to persona and express plus that has further margin benefits for us.

Christopher A. Simon: Yes.

Christopher A. Simon: We've done two things here over the first half of the LLP I think we've built real trust and confidence by playing the long game being there <unk> increasingly enjoys a reputation is.

Christopher A. Simon: Haemonetics increasingly enjoys the reputation as the plasma supplier that they know and trust, and that's a great amount of goodwill that will allow us to continue to build across the market. And then, in that process, we've established Nexus as the unrivaled industry standard for lowering cost per liter and improving donor satisfaction safely and reliably. So, yes, we do expect share gains, and we're in a position to be able to accommodate that. It all comes together nicely.

Christopher A. Simon: The plasma supplier that they know and trust and Thats, great goodwill that will allow us to continue to build across the market and then in that process. We've established nexus as the unrivaled industry standard for lowering cost per liter and improving donor satisfaction.

Christopher A. Simon: Safely and reliably so yes, we do expect share gains in.

Christopher A. Simon: We would kind of be in a position to be able to accommodate that.

Christopher A. Simon: Look, 8 to 12 for the non-PCS2 business, admittedly conservative, but there's a number of factors we don't control with regard to timing. So, and we've been conservative the last two years. We've been wrong.

Christopher A. Simon: It comes together nicely look.

Christopher A. Simon: Eight to 12 for the non <unk> business.

Christopher A. Simon: Admittedly conservative, but theres a number of factors, we don't control with regards to timing so.

Christopher A. Simon: Thankfully, the revisions have been all positive, but at this stage, we'd rather be conservative and thoughtful about it. And if we have the opportunity to upgrade throughout the year, we will. Gotcha. And just switching gears on the hospital business, obviously, this quarter, it looks like TAG had a nice acceleration in the back half of the year, with strong growth, short of your acquisitions, but just on the legacy piece there. What are you more excited about, or are you just kind of evenly excited between, you know, that mid-single-digit growth outlook? Is that at the core? Is that on the legacy side, or is that more on the Cardeva side? Or is that, you know, the TAG piece or both?

Christopher A. Simon: We've been conservative in the last two years, we've been wrong thankfully the revisions have been all upward, but at this stage, we'd rather be conservative and thoughtful about it and if we have the opportunity to upgrade throughout the year we will.

Christopher A. Simon: Gotcha, and then just switching gears on the hospital business. Obviously this quarter. It looks like you had a nice acceleration in the back half of the year.

Christopher A. Simon: Strong growth.

Christopher A. Simon: Sure for your acquisitions, but just on the legacy piece. There what are you more excited or is it kind of evenly excited between that mid single digit growth outlook does that on the core is that are the legacy is that more on the card side.

Christopher A. Simon: Or is that.

Christopher A. Simon: <unk> piece or both.

Lawrence Scott Solow: It's really a tale of two impressive growth drivers, right? For vascular closure, you know, we just completed another 28% growth for the year, right? We're in 80% of the top 600 accounts. We're looking at international expansion now. In fact, international contributed 300 basis points of growth again this quarter.

Christopher A. Simon: It's really a tale of two impressive growth drivers right for vascular closure.

Lawrence Scott Solow: Just completed another 28% growth for the year right. We're in 80% of the top 600 accounts. We're looking at international expansion now in fact international contributed 300 basis points of growth again here in the quarter. So we don't see any slowdown in the interventional technologies business propelled by certain.

Christopher A. Simon: So, you know, we don't see any slowdown in the interventional technologies business propelled by, certainly by Vascade, getting the new MVP XL and, you know, pre-market approval is powerful. It opens the aperture, no pun intended, for broader application, and, you know, we're in a really good place. So, that's going to keep going.

Christopher A. Simon: <unk> getting the new MVP X L P.

Christopher A. Simon: Pre market approval is powerful it opens the aperture no pun intended for broader application and we're in a really good place. So that that's going to keep going the new products drop and I'm sure. We'll talk more about that on the call, but that just goes from strength to strength. What we're impressed by on the blood management side of hospital, Yes, TEG leads.

Christopher A. Simon: The new products drop in, I'm sure we'll talk more about that on the call, but, you know, that just goes from strength to strength. What we're impressed by on the blood management side of the hospital, yeah, TEG leads the charge. Having the heparinase neutralization cartridge approval will take that to the next level.

Christopher A. Simon: The charge, having the heparin neutralization cartridge approval will take that to a next level.

Christopher A. Simon: You know, they're keen to continue to drive, and that's a big driver for us in that core business. We joke that TEG is the oldest launched medtech product in the industry, but it continues to hum along, and we, again, are going to look for double digit growth, mid-teens growth in that product portfolio. So, it's exciting, and we stand behind it, and I look forward to taking it to the next level.

Christopher A. Simon: Right.

Christopher A. Simon: They are keen to continue to drive and Thats, a big driver for us in that core business, we joke that tags. The oldest launched med tech product in the industry, but it continues to Hum along and we again are going to look for double digit growth mid teens growth in that product portfolio. So it's exciting and we stand behind it.

Christopher A. Simon: And I look forward to taking it to the next level.

Christopher A. Simon: Question, James, on the operating margin, I appreciate that the color and the cadence certainly sounds like we improved through the year. Just in terms of the slope, or can you give us just some idea? You ended the year kind of like at 19% this quarter. How should we view sort of the, you know, is it a big rebound as we go through the year, kind of where we end the year at? Obviously, we'll probably end the year higher than our averages.

Speaker Change: That's great and just last question James on the on the operating margin I appreciate the color on the cadence certainly it sounds like we improved through the year just in terms of the slope, but can you give us just some idea you ended the year kind of like a 19% this quarter.

Christopher A. Simon: How should we view sort of the.

Christopher A. Simon: No.

Christopher A. Simon: Is it a big rebound as we go through the year kind of where we end the year at obviously, we'll probably end the year higher than your your.

Lawrence Scott Solow: So can you give us any more color on your thoughts on that? Yeah, sure, Larry, thanks for the question. And yeah, you're right, we will end the year higher. It will go up, you know, throughout the year. In terms of a specific jumping off point, I think this could be very helpful.

James Derecka: Your averages so could you give us any more color there on thoughts on that thanks.

James Derecka: You know, there were a couple of items, about 200 basis points worth of items in our fourth-quarter margin. First, we had Opsense still being integrated, so they've not achieved their synergies, you know, and the benefits we get from the scale. That's not been realized yet. And then we continue to have, you know, freight and expediting costs. I would say the jumping off point wouldn't be the 18.8 for this year; it would be closer to the overall 2024 margin of 21.1, maybe even a bit better than that. So if that's where you start, and you end at 23.8, you'll see it go up throughout the year. I got it.

Speaker Change: Sure Larry Thanks for the question and then yes, you are right. We will end the year higher I will it will go up.

James Derecka: Out the year in terms of specific jumping off point I think this could be very helpful.

James Derecka: There were a couple of items about 200 basis points worth of items in our fourth quarter margin first we added <unk>.

James Derecka: Still being integrated so they have not achieved their synergies.

James Derecka: And the benefits we get from from the scale that has not been realized.

James Derecka: And then we continue to have freight.

James Derecka: Freight and expediting costs.

James Derecka: I would say the jumping off point wouldnt be the $18 eight for <unk>.

James Derecka: For this year it would be closer to the.

James Derecka: Overall 2020 for margin.

James Derecka: $21, one maybe even a bit a bit better than that so if that's where you start.

James Derecka: And you would end at 23, eight and Youll see it go up.

James Derecka: Throughout the year.

Lawrence Scott Solow: Okay, now that's very helpful. Thank you. Thank you, everybody.

Speaker Change: Got it okay. That's very helpful. Thanks. Thank you. Thank you everybody.

Speaker Change: One moment for our next question.

Operator: One moment for our next question. The next question comes from Joanne Wuensch with Citi. Your line is open. Good morning, and thank you for taking the questions. I have a few.

Lawrence Scott Solow: The next question comes from Joanne Wuensch with Citi. Your line is open.

Joanne Karen Wuensch: Good morning, and thank you for taking my questions I have a few.

Joanne Karen Wuensch: I'll just put them out up front. Can you remind us of what the accretion and, or dilution may be from the Attune and Opsense acquisitions and how that folds into your 2025 guidance? And then, you know, on the MedTech side, we're all a flutter with Ferripulse and with PFA catheters and such like that. Can you sort of give us your view of how the uptake of those types of products will impact your EP portfolio? Thank you. Yeah, hi Joanne. It's James.

Joanne Karen Wuensch: Just click on that upfront can you remind us of what the.

James Derecka: The accretion and dilution may be from the attune and options acquisitions and how that holds into your 2025 guidance and then.

James Derecka: On the Med tech side, while a flutter with with Sarah Paulson with PSA catheters.

James Derecka: Such like that can you sort of give us your view of how.

Joanne Karen Wuensch: The uptake of those types of products impact your EP portfolio. Thank you.

Joanne Karen Wuensch: Sure.

Joanne Karen Wuensch: Yes, Hi, Joanne, it's James I'll start with the accretion.

James Derecka: For <unk> and.

James Derecka: I'll start with the accretion for Opsense and Attune. For both of them, we've said $0.10 to $0.15, so in total, it would be $0.20 to $0.30 this year in fiscal 25. Good morning, Joanne. It's Chris.

James Derecka: And <unk> for both of them.

Chris: Said, 10% to 15, so in total will be 20% to 30.

Chris: This year in fiscal 'twenty five.

Christopher A. Simon: Let me touch base on PFA and PFA adoption. Certainly, there is a ton of excitement. Some of the industry's most highly regarded companies and management teams are saying it's the most exciting product launch they've seen. That's great.

James Derecka: Yes, good morning, Joanne, It's Chris let me touch base on PSA and PSA adoption.

Speaker Change: Certainly a ton of excitement some of the industry's most.

Chris: Highly regarded companies and management teams, saying its the most exciting product launch they have seen.

Christopher A. Simon: That's great I do think it will vary pretty meaningfully from one product to the next.

Christopher A. Simon: I do think it will vary pretty meaningfully from one product to the next. What we are observing is very consistent with what we modeled when we attempted to value attune coming in. From our vantage point, the increased energy around ablation, and the rising tide, we think it will raise all boats, but from what we've looked at, our ability to add Enzo ETM to RF ablation takes a procedure that is very well established in the current standards and makes it 100% safe.

Christopher A. Simon: We are observing is very consistent with what we modeled.

Christopher A. Simon: When we attempted to value attuned coming in from our vantage point.

Christopher A. Simon: The increased energy around ablation.

Christopher A. Simon: Rising tide that will raise all boats, but from what we've looked at.

Christopher A. Simon: Our ability to add Enzo ATM to RF ablation takes a procedure that is very well established current standard.

Christopher A. Simon: And makes it 100% safe the combination of those products RF ablation and our Softgel cooling is literally a third the cost of the PSA products that are being introduced to the market. So we expect <unk> to grow rapidly we expect it to become <unk>.

Christopher A. Simon: The combination of those products, RF ablation, and our esophageal cooling, is literally a third the cost of the PFA products that are being introduced to the market. We expect PFA to grow rapidly. We expect it to become a leading product in the market. We think there's a role for RF ablation. We think with Enzo ETM, that role only gets better.

Christopher A. Simon: A leading product in the market. We think there is a role for RF ablation, and we think with Enzo ATM that role only gets better and so we're very confident about it and at one level the dialogue around the importance of making ablation safe and effective plays right into our value proposition. So we're enthusiastic about what we're observing in <unk>.

Christopher A. Simon: We're very confident about it. At one level, the dialogue around the importance of making ablation safe and effective plays right into our value proposition. We're enthusiastic about what we're observing, and we intend to ride that wave. An opportunity for your VASK portfolio is also sort of where I was heading. Yeah, we think it's roughly, in the near term, it'll be neutral, right? Because, depending on which form of pulse field ablation is being used, they may need one less access point, right?

Christopher A. Simon: Tend to ride that wave.

Christopher A. Simon: An opportunity for your vascular portfolio also.

Christopher A. Simon: Turning to our chest.

Christopher A. Simon: Yes, we think it's roughly in the near term it'll be neutral right.

Christopher A. Simon: Pending on which form of pulse field ablation is being used.

Christopher A. Simon: May need one less access point right. So there's one less opportunity for closure. However, the aggregate growth of ablation thats being driven that we're observing is more than offsetting any diminishment, there and as I said on the prepared remarks. The addition of MVP XL and what that enables.

Christopher A. Simon: So there's one less opportunity for closure. However, the aggregate growth of ablation that's being driven that we're observing is more than offsetting any diminishment there. And as I said in my prepared remarks, the addition of MVPXL and what that enables is that we now have, you know, applicability across the different technologies in pulse field. So we're able to close essentially anything they're doing. And that's a real positive and will further propel our growth for Vascade. So all in, yes, a positive for sure. Excellent. Thank you so much for taking the time to answer the question.

Christopher A. Simon: As we now have applicability across the different.

Christopher A. Simon: Different technologies and pulsed field, so we're able to close essentially anything they're doing in that that's a real positive and will further propel our growth for <unk>. So all in yes, a positive for sure.

Speaker Change: Excellent. Thank you so much for taking my questions.

Operator: One moment for your next question. And our next question is from Andrew Cooper with Raymond James. Your line is open.

Speaker Change: One moment for your next question.

Operator: And our next question is from Andrew Cooper with Raymond James Your line is open.

Andrew Harris Cooper: Hey, everybody, thanks for the time. Maybe just to start on one with Plasma and sort of the 8 to 12 and how we should think about it, just would love an update with Express Plus nearing kind of full launch, what the strategy is there in terms of, you know, how aggressively you try to roll that out to the broad customer base, and whether you're going to use that as a tool to take price, we should view it as a retention tool, or really just how we should think about that additional innovation that you're bringing to the market.

Andrew Harris Cooper: Hey, everybody thanks for the time.

Andrew Harris Cooper: Maybe just to start on the plasma and sort of the eight to 12 and how we should think about it just would love an update with express plus nearing kind of full launch what the strategy is there in terms of how aggressively you try to roll that out to the broad customer base and whether youre going to use that as a tool to.

Andrew Harris Cooper: Take price, we should view it as a retention tool or really just how we should think about that that additional innovation that you're bringing to the market.

Andrew Harris Cooper: Yeah, Drew, thanks for the question. We're really excited about what Express Plus will do to take that platform to the next level. The, you know, improvement in procedure speed off the base business is very powerful. We're seeing from what is now 60,000 collections, commercial collections, in our limited market release, the product is absolutely performing as expected. And so we're seeing, you know, reductions of up to 20 percent across the base procedure speed on the base Nexus device.

Speaker Change: Yes sure. Thanks for the question, we're really excited about what express plus does to take that platform to the next level the improvement in procedure speed.

Andrew Harris Cooper: The base business very powerful we're seeing from what is now 60000 collections commercial collections and our limited market release, the product is absolutely performing as expected and so we're seeing.

Andrew Harris Cooper: Reductions in up to 20% across the base procedure speed on the base Nexus device. So all good there.

Christopher A. Simon: So everything is good there, plays into lower cost per liter, plays into improved center productivity. So, we will move from limited market release to full market release later this quarter. And our anticipation is that we will roll from there, upgrading the entire fleet. I'm going to stay mute with regard to pricing, just given the increased competitive sensitivity across the market. This is a meaningful upgrade. It also paves the way for anybody who is either using Persona or is intending to use Persona to get those procedure times back well within the range of the base Nexus device.

Christopher A. Simon: Plays into lower cost per liter plays into improved center productivity. So we will move from limited market release to full market release later this quarter and our anticipation as we roll from there upgrading the entire fleet and we're going to stay.

Christopher A. Simon: With regards to pricing just given the increased competitive sensitivity across the market. This is a meaningful upgrade it also paves the way for anybody who is either using persona or is intending to use persona to get those procedure times back well within range of the base Nexus device. So it's a powerful.

Christopher A. Simon: So, it's a powerful one-two combination. We think, in aggregate, it's unrivaled. And we do expect to command a premium for innovation. Given the improvements that we can point to with regard to lowering CPL and improving donor satisfaction, we feel really confident in our ability to command that premium. Okay.

Christopher A. Simon: 102 combination we think in aggregate, it's unrivaled and we do expect to command a premium for innovation given the improvements that we can point to with regards to lowering CPL on improving donor satisfaction, we feel really confident in our ability to command that premium.

Andrew Harris Cooper: Um, maybe just next, you know, I think James and I think you maybe both mentioned kind of the appetite for M&A, and you increased the revolver capacity here. So, you know, obviously, a lot of ability to go out and do more deals. Just maybe what are you seeing in the space? What's still exciting?

Speaker Change: Okay helpful.

Andrew Harris Cooper: Maybe just next I think James.

Andrew Harris Cooper: I think you've maybe both mentioned kind of the appetite for M&A and you increased the revolver capacity here. So.

Andrew Harris Cooper: Obviously a lot.

Andrew Harris Cooper: To go out and do more deals just maybe what are you seeing in the space, What's still exciting and then how do we think about the comment on looking near term in interventional cardiology, while youre still sort of trying to digest. Two recent acquisitions that you are still bringing into the fold right now.

Speaker Change: You want me to take kind of that first time, yes.

Christopher A. Simon: And then how do we think about the comment on, you know, looking near term and interventional cardiology while you're still sort of trying to digest recent acquisitions that you're still bringing into the fold right now? Would you like me to take a cut of that first, James? Yeah, look, our near-term focus is integration, right? We are highly enthusiastic about the guide wires from Opsense and esophageal cooling from Attune.

Andrew Harris Cooper: Our near term focus is integration right. We are highly enthusiastic about the guide wires from <unk> and esophageal, calling from attune, we need to make good on that right. So we're well down the path closing up since early in mid December was helpful. We spent our fourth quarter Cross training our field force question.

Christopher A. Simon: We need to make good on that, right? So we're well down the path. Closing Opsense early in mid-December was helpful. We spent our fourth quarter cross-training the field force.

Christopher A. Simon: A question was asked earlier about that, that there's a direct overlap, in this case, with Vascade in interventional cardiology, so we are going to expect meaningful call-point synergy. And we revamped our footprint. We updated our comp programs. We did the complete set of training. Some of that's still ongoing, just given the sophistication of the products. But, you know, it's a combined force moving nicely against commercializing those guide wires. So we feel great about that. Enzo ETM, the esophageal cooling system, direct fit with MVP and MVP XL now on EP.

Christopher A. Simon: Asked earlier about that there is a direct overlap in this case with vast gate in interventional cardiology. So we are going to expect meaningful call point synergy and we revamped our footprint we updated our comp programs. We did a complete set of training some of that is still undergoing just given the.

Christopher A. Simon: <unk> of the products, but it's a combined force moving nicely against commercializing those guide wires. So we feel great about that Enzo ATM, the softgel, calling direct fit with MVP and MVP Excel now on EEP will get after that beginning in June and that is our.

Christopher A. Simon: You know, we'll get after that beginning in June. And that is, you know, far and away our first and second priority. We do see other opportunities for tuck-in acquisitions in the interventional technology franchise, and so we will pursue those as the market opportunity presents itself. We want it to have that capacity on the balance sheet to be able to do that, but we really see those as tuck-ins and things that would be highly accretive to growth and profitability as we roll forward. We've disclosed previously our relationship with Vivasure. You know, that's a great example of the type of things that, you know, perhaps in the second half of the fiscal year, we could pursue.

Christopher A. Simon: Far and away our first and second priority, we do see other opportunities for tuck in acquisitions in the interventional technology franchise, and so we will action those as the market opportunity presents itself. We wanted to have that capacity on the balance sheet to be able to do that but we really see those as tuck.

Christopher A. Simon: Gains and things that would be highly accretive to growth and profitability as we roll forward. We've disclosed previously our relationship with <unk>.

Christopher A. Simon: Sure.

Christopher A. Simon: A great example of the type of things that perhaps in the second half of the fiscal year.

Christopher A. Simon: But for now, it's integration and growth. And then, you know, we'll leave aside what happens at the back end of the LRP. But we think this model, you know, enabling technology, you know, really agnostic to the underlying therapeutic being used.

Christopher A. Simon: We could pursue but for now its integration and growth and then yes.

Christopher A. Simon: I'll leave aside what happens at the back end of the RFP, but we think this model.

Christopher A. Simon: Enabling technology.

Christopher A. Simon: Really agnostic to the underlying therapeutic being used so has broad based applications and then superior results because of the capabilities. We've built we think Thats a model is replicable in other areas, that's not something we're going to be talking about this fiscal year, though.

Andrew Harris Cooper: So it has broad-based applications and superior results because of the capabilities we've built. We think that's a model that can be replicated in other areas. That's not something we're gonna be talking about this fiscal year, though. Okay, perfect. That's super helpful. And then maybe just one last one on sort of the margin dynamics. I guess to ask what others have a little bit differently, when we think about the roughly 10% or a little bit less than 10% of earnings that you called out from CSL, as we think about that volume kind of rolling off, should it be ratable? Are there sort of step function levels where we see the margins move a little bit quicker or a little bit slower?

Andrew Harris Cooper: Yes.

Andrew Harris Cooper: Just help us think about kind of the pacing there and whether it's linear or a little bit lumpier in terms of the margin impact of the CSL departure. Yeah, Andrew, I think it's more towards the linear side of the equation there. You know, as it rolls off.

Andrew Harris Cooper: Okay perfect. That's Super helpful. And then maybe just one last one on sort of the margin dynamics I guess to ask what others have a little bit of a different way when we think about the roughly 10% or a little bit less than 10% of earnings that you called out from CSL as you're thinking about that volume kind of rolling off.

Andrew Harris Cooper: Should it be ratable or are there sort of step function levels were.

Andrew Harris Cooper: We see the margin move a little bit quicker a little bit slower just help us think about kind of the pacing there and whether it's linear or a little bit lumpier in terms of the margin impact of the CFL departure.

Andrew Harris Cooper: Yes, Andrew I think it's more more towards the linear side of the equation there.

Andrew Harris Cooper: Is it as it rolls off we've been preparing for this for quite a while and.

James Derecka: You know, we've been preparing for this for quite a while. And, you know, we have our plans in place to address the associated stranded costs and overhead costs with it. So we think that it should be fairly, fairly smooth throughout the year. Okay. I'll stop there.

James Derecka: We have our plans in place to address the of the associated stranded costs and overhead costs with it.

Andrew: So we think that it should be.

Andrew: Fairly fairly smooth throughout the year.

Speaker Change: Great I'll stop there thanks, everybody.

Speaker Change: One moment for the next question.

Andrew Harris Cooper: Thanks, everybody. One moment for the next question. The next question is from Mike Matson at Needham and Company. Your line is open.

James Derecka: The next question is from Mike Matson Needham <unk> Company. Your line is open.

Operator: Yeah, thanks. Um, so I guess I just wanted to ask about, you know, how Nexus with Persona and Express Plus are you... I'm comfortable that this is a superior offering to the Rika product in terms of the volume, time, and cost of collections with your offering. Yeah, Mike, good morning. The short answer is yes, right? You know, there's not a whole lot of RICA out there to really be able to draw broad conclusions.

Michael Stephen Matson: Yes. Thanks.

Michael Stephen Matson: So I guess I just wanted to ask about.

Mike: Nexus with persona and express plus.

Mike: Are you.

Mike: Comfortable that this is a superior offering.

Mike: <unk> product in terms of our volume is higher than the cost of collections with your offering.

Operator: Yes, Mike Good morning short answer is yes right.

Mike: There's not a whole lot of Rica out there to really be able to draw broad based conclusions.

Michael Stephen Matson: And we're now, you know, north of 25 million collections with the Persona Nexus system. It's performing exactly as advertised. It is, above all, safe and reliable, which is the ante for this industry, right? So I think the demonstrated safety and the demonstrated reliability of the product and the company get you halfway there. And then, yeah, the speed gains associated with the combined offering of Express Plus and the, you know, the Persona uptick are really meaningful. We're the only ones who offer DMS software.

Mike: We're now nor.

Michael Stephen Matson: North of.

Michael Stephen Matson: 25 million collections with the persona Nexus system.

Michael Stephen Matson: Performing exactly as advertised it is above all safe and reliable which is the anti for this industry right.

Michael Stephen Matson: So I think the demonstrated safety demonstrated reliability of the product and the company get you're halfway there and then get the speed gains associated with the combination of offering of express plus the persona uptick.

Christopher A. Simon: In fact, our DMS software today is roughly 80 percent of the US procedures. So the integrated offering, what we can bring together, and how that can improve center operations, how that can improve donor satisfaction and processing, you know, that's the piece that, you know, it's, we are the only ones doing that. And it's an important part of our value proposition and one of the things that compels our customers. So broad-based experience, real world evidence, and a combined offering, a holistic offering that is unique in the marketplace. Yeah, we're quite confident, Mike. Okay, thank you. And then just on MVP XL, so where is that used versus the regular MVP? I guess, what types of procedures?

Christopher A. Simon: Really meaningful.

Christopher A. Simon: The only ones who offer.

Christopher A. Simon: <unk> software in fact, our Dms software today is roughly 80 share of the U S procedures. So the integrated offering what we can bring together and how that can improve center operations, how that can improve donor satisfaction and processing that's the piece that.

Christopher A. Simon: We are the only ones doing that and it's an important part of our value proposition and one of the things that compels our customers. So.

Christopher A. Simon: Broad based experience real world evidence and combined offering holistic offering that is unique in the marketplace.

Christopher A. Simon: We're quite confident Mike.

Speaker Change: Okay. Thank you and then just on <unk>.

Christopher A. Simon: So, whereas that used versus the regular MVP I guess what types of procedures is there a price premium for X Oliver MVP.

Michael Stephen Matson: Is there a price premium for XL over MVP? Yes, so MVP XL will expand the base vascular closure offering. It's pushing MVP to higher levels of French sizes. It should give us, really, across electrophysiology. It should give us, you know, a broad-based offering all the way up to include, as I said earlier, all the ablation procedures. So, nice compliment.

Christopher A. Simon: Yes, so MVP XL will expand the base vascular closure offering.

Michael Stephen Matson: Pushing MVP to higher levels of French sizes.

Michael Stephen Matson: It should give us really across electrophysiology it should give us.

Michael Stephen Matson: Broad based offering all the way up to include as I said earlier all of the ablation procedures.

Michael Stephen Matson: There probably be some cannibalization between MVP and MVP XL because the.

Michael Stephen Matson: The indications are clear, but questions are free to use it in a broad based fashion and MVP works really well <unk> will be that much better for the larger franchise openings that particularly our typical and PFA. So.

Christopher A. Simon: It's part of our broader strategy. We think about this kind of broadening the shoulders of closure. We want to be the one-stop shop for closure, venous, and arterial.

Michael Stephen Matson: This complement it's part of our broader strategy, we think about this kind of broadening the shoulders of closure, we want to be the one stop shop for closure of venous and arterial.

Christopher A. Simon: It takes us one more important step along that way, we've got a pipeline of additional things going on that will take us down market as well in terms of smaller openings, but.

Christopher A. Simon: More about that as they get ready to come to market in terms of pricing in general we like to think about value based pricing for our technology XL brings real value to the market. We expect to capitalize on that volume is the biggest driver by far in interventional technologies, but we're also seeing further price and mix gains.

Christopher A. Simon: This takes us one more important step along that way. We've got a pipeline of additional things going on that will take us down the market as well in terms of smaller openings, but more about that as they get ready to come to market. In terms of pricing, you know, in general, we like to think about, you know, value-based pricing for our technology. XL brings real value to the market.

Christopher A. Simon: So you.

Christopher A. Simon: You should assume thats going to be factored in as part of the overall guidance.

Christopher A. Simon: We expect to capitalize on that. Volume, you know, is the biggest driver by far in interventional technologies, but we're also seeing, you know, further price and mixed gains. So, you should assume that's going to be factored in as part of the overall guidance. Okay, great. Thank you.

Speaker Change: Okay, great. Thank you.

Operator: Please stand by for the next question. The next question comes from Michael Petusky with Barrington Research. Your line is now open.

Speaker Change: And the next question.

Michael John Petusky: The next question comes from Michael <unk> with Barrington Research. Your line is now open.

Michael John Petusky: Uh, Chris, I just want to say 155 to 85 this year, that's just. Yeah, Mike, that's exactly right. It's the U.S. PCS2 supply agreement. It does not cover software.

Michael John Petusky: Good morning.

Michael John Petusky: Chris I, just wanted to make to make sure.

Michael John Petusky: I'm thinking about this correctly the $155 to 85.

Michael John Petusky: In this this year.

Michael John Petusky: CSL business is that correct.

Christopher A. Simon: It does not cover the international work that's all being done today on Nexus. Okay, and I know we're not talking about 26, but I just want to make sure because when we talked about... There is no, from CSL.

Michael John Petusky: Yes, Mike that's exactly right as the U S Pcs to supply agreement. It does not cover software it does not cover the international.

Christopher A. Simon: Pork, that's all being done today on Nexus and I know, we're not talking about 2006, but I just wanted to make sure because when we talked about this whatever it was a year ago. When you talked about a minimum commitment there is no minimum commitment from.

Christopher A. Simon: From CSL beyond 2006, correct.

Michael John Petusky: Yeah, Mike, I appreciate it. We just got it for $25. We kind of want to live into that and execute it. Give us a little time before we're ready to talk 26. What I can tell you is, in terms of the numerous amendments, what we cared about was, you know, being compensated for our staying power and a gradual transition that allowed us, you know, as James said, to improve the margin, right, in terms of stranded costs.

Christopher A. Simon: Yes.

Speaker Change: Mike you'll appreciate we just guided for 'twenty five we kind of want to live into that and execute it gave us a little time before we could talk 26, while I can.

Michael John Petusky: I'd tell you is in terms of the Newmar.

Michael John Petusky: Numerous amendments what we cared about was.

Michael John Petusky: Being compensated for our staying power and a gradual transition that lets us.

Michael John Petusky: James said improve the margin right and took the stranded costs, but really the most exciting part is freeing up capacity in an otherwise capacity constrained system to go serve our other customers including.

Michael John Petusky: But really, the most exciting part is freeing up capacity in an otherwise capacity-constrained system to go serve our other customers, including, you know, the conversion and the share gains. So, it'll be gradual. The math is, as you laid it out, it won't be zero by the end of this fiscal year, as we're projecting it.

Michael John Petusky: The conversion and the share gains so it'll be gradual.

Michael John Petusky: The math is.

Christopher A. Simon: So, stay tuned. The 85 is a minimum commitment, just like when we talked a year ago, we were saying something slightly in excess of 100 million, right? And so, this is the equivalent number for that.

Michael John Petusky: As you laid it out it won't be zero by the end of this fiscal year as we're projecting it so.

Christopher A. Simon: Stay tuned the 85 as a minimum commitment just like when we talked a year ago, we were saying something.

Christopher A. Simon: It represents a 45% downward revision from the 155 that we just completed for the PCS-2 agreement. You know, if it changes throughout the year upward, we'll call that out as we go. I just want to thank you. I was just curious how many countries in Europe have done anything just clinically, or regulatory.

Christopher A. Simon: Slightly in excess of $100 million right and so.

Christopher A. Simon: This is the equivalent number for that it represents a 45% downward revision from the $1 55 that we've just completed for the Pcs two agreement if it changes throughout the year upward we'll call that out as we go.

Christopher A. Simon: And then I just wanted to I guess ask a little bit about.

Christopher A. Simon: Vascular closure of U S and I think you called out that Japan, some good traction with.

Christopher A. Simon: 90 accounts I believe I heard and then Europe, maybe a little bit slower and I was just curious how many countries in Europe.

Christopher A. Simon: Are you now when what do you what do you see as the best targets. There and is there anything just clinically from how treatment is done there or regulatory from a regulatory standpoint that has made Europe, a little slower than Japan.

Michael John Petusky: I'd like to confirm that Japan is, as you described it, we are now in excess of 90 accounts. We're working with a third-party distributor; they're skilled, they're executing. We have the benefit that we get very favorable reimbursement as part of the Japanese reimbursement system, so that's really aided with the initial uptake. In Europe, it's a different starting point, right? They typically use a suturing figure of eight, so it's, you know, less obvious need.

Christopher A. Simon: I'd like to confirm Japan is as you described it we are now in excess of 90 accounts, we're working with a third party distributor they're skilled theyre executing we have the benefit that we got very favorable reimbursement as part of the Japanese reimbursement system. So thats really aided with the initial uptake.

Michael John Petusky: In Europe, it's a different starting point right.

Michael John Petusky: They typically use suturing figure of eight so it's Lee.

Michael John Petusky: Less obvious need there are vagaries from one country to the next around how reimbursement works and differences in terms of the benefit of same day discharge, which we have across the board. So thats. What we are working through we expect to be successful there for sure. It's just a slower more gradual build I think this is a <unk>.

Christopher A. Simon: There are vagaries from one country to the next around how reimbursement works and differences in terms of the benefit of same-day discharge, which we have across the board. So that's what we are working through. You know, we expect to be successful there, for sure. It's just a slower, more gradual build.

Christopher A. Simon: I think this is a good example of going slow and being thoughtful to go faster further down the road. And so from our vantage point, you know, we're delivering against that. We're primarily focused, as you would expect, on the big markets. We started in Germany.

Christopher A. Simon: Good example of going slow and being thoughtful to go faster further down the road and so from our vantage point, we're delivering against that we're primarily focused as you would expect in the big markets. We started in Germany, we had a relationship or set of relationships in Italy that were capitalizing on.

Christopher A. Simon: We had a relationship or set of relationships in Italy that we're capitalizing on. We will quickly proceed to the U.K. and then other major markets, mostly through distribution, where we think there's strong underlying demand, just measuring, you know, ablation procedures. So stay tuned; more to come. It will be a gradual build, but we think we've got real staying power and want to make sure One of the important lessons learned from the top 600 in the U.S. is, you know, we land and we expand. The landing, you have to nail the landing, and you have to get it right.

Christopher A. Simon: We will quickly proceed to the UK and then other major markets mostly through distribution.

Christopher A. Simon: Where we think there is strong underlying demand just measuring ablation procedures. So.

Christopher A. Simon: Stay tuned more to come it will be a gradual build but we think we've got real staying power and want to make sure one of the important lessons learned from the top 600 in the U S. As we land and we expand our landing you have to nail the landing and you have to get it right. It doesn't do any good to churn through an account because when you have to go back and re ignite.

Christopher A. Simon: It doesn't do any good to churn through an account because when you have to go back and reignite it, that's that much harder. So we want to get it right. We want to build from a strong base. We're working with the best centers and making sure the value proposition is clear and appropriately sustainable.

Christopher A. Simon: That much harder so we want to get it right we want to build from a strong base. We are working with the best centers and.

Christopher A. Simon: Making sure the value proposition is clear and appropriately sustainable.

Michael John Petusky: Hey, can I just ask a quick one, a real quick one on Express Plus? I mean, do you feel like the uptake there is, I mean, is this obviously just a handful of customers that you need to target? I mean, do you feel like, As we've said with our other technology upgrades, we will go absolutely as fast as our customers are prepared to go, but no faster.

Christopher A. Simon: Perfect.

Christopher A. Simon: Just a quick one real quick one in on X Express plus I mean do you feel like the.

Michael John Petusky: Uptake there I mean is this.

Michael John Petusky: Obviously, just a handful of customers.

Michael John Petusky: You need a target I mean do you feel like.

Michael John Petusky: Fiscal 'twenty five most of this will be.

Michael John Petusky: Essentially completed or might it take some time.

Michael John Petusky: Yes, as we've said with our other technology upgrades, we will go absolutely as fast as our customers are prepared to go we'll go faster I think it is in FY 'twenty five of that Mike because the value proposition of express plus is so clear and the demand for productivity is so pressing so I don't want to get too far ahead of.

Christopher A. Simon: I think it's an FY25 event, Mike, because the value proposition of Express Plus is so clear and the demand for productivity is so pressing. So I don't want to get too far ahead of ourselves here, but our projections call for Express Plus to be implemented this fiscal year. Please stand by for the next question. The next question comes from David Turkaly with Citizens JMP. Your line is open.

David Louis Turkaly: <unk> here, but our projections call for express plus to be implemented this fiscal.

David Louis Turkaly: Alright, great stuff. Thank you.

David Louis Turkaly: And the next question.

Christopher A. Simon: Okay.

Christopher A. Simon: Okay.

David Louis Turkaly: The next question comes from David <unk> with citizens JMP. Your line is open.

Operator: Hey, good morning, and congrats on getting to the halfway point of your LRP. Chris, I think you said in your commentary, just answering a question, venous and arterial closure. Can you tell us today how that breaks out? What does your mix look like right now with Vascage?

David Louis Turkaly: Hey, good morning, and congrats on getting to the halfway point of your LLP Chris.

David Louis Turkaly: Chris I think you said.

David Louis Turkaly: In your commentary just answering your question Reynisson arterial closure.

David Louis Turkaly: Can you tell us today.

David Louis Turkaly: How that breaks out what does your mix look like right now.

David Louis Turkaly: in those two areas. So for Vascade, it's roughly an 80-20 split, where 80% of the portfolio is electrophysiology, really looking at AFib ablation closure. And that's the MVP product, 80% of the portfolio, and growing nicely, and we'll add Excel on top of that. That'll bring some capitalization, but for sure further accelerate the growth. The base Vascade product is predominantly PCI in an interventional cardiology

David Louis Turkaly: Escape in.

David Louis Turkaly: And those two here yes.

David Louis Turkaly: So for <unk>, it's roughly <unk>.

David Louis Turkaly: 80, 20 split where 80% electrophysiology really looking at Afib ablation closure.

David Louis Turkaly: And that's the MVP product.

David Louis Turkaly: 80% of the portfolio.

David Louis Turkaly: Nicely.

David Louis Turkaly: <unk> on top of that that will have some cannibalization, but for sure further accelerate the growth the base Bascay product is predominantly PCI and interventional cardiology setting and one of the things we surprised ourselves positively on Dave as we kind of ran this implementation is both both the vasquez.

Christopher A. Simon: And one of the things we surprised ourselves positively on, Dave, as we kind of ran this implementation, is that both the Vascade product and MVP grew proportionately as we doubled and then doubled again our commercial footprint. It's still an 80-20 split, but we are clearly moving things forward in PCI because we've got a much more pronounced clinical presence. Now dropping in, you know, Opsense guidewires, which are predominantly focused on interventional as well, we'll just have that much more share of voice, share of mind.

Christopher A. Simon: Product and MVP grew proportionately.

Christopher A. Simon: As we doubled and then double again, our commercial footprint. It's still an 80 20 split, but we are clearly moving things forward and PCI because we've got a much more pronounced clinical presence now dropping in op guide wires, which are predominantly focused on interventional as well.

Christopher A. Simon: We will just have that much more share of voice share of mine were in on the procedures already.

Christopher A. Simon: We're in on the procedures already, so we're hoping it's going to be highly synergistic. For sure, you know, Vascade's an 80-20 split. When we talk about guide wires, Opto's the larger of the two products, but we think Savvywire has the NVPXL type of growth potential.

Christopher A. Simon: So we're hoping it's going to be highly synergistic for sure vast gates, an 80 20 split when we talk about guide wires up those the larger of the two products, but we think savi wire has the <unk> type of growth potential so stay tuned for more on that but but that really builds our presence.

Christopher A. Simon: So stay tuned for more on that, but that really builds our presence, the same way that Enso builds our presence in ablation. So we're starting to get pretty excited about the broader-based opportunities for interventional cardiology, but it really is a tale of two closely adjacent but distinct call points between electrophysiology and interventional cardiology. Thank you for that. James, congrats on two years, I guess, and all the detail on the new

Christopher A. Simon: The same way that Enzo builds our presence in the.

Christopher A. Simon: Ablation, so we're starting to get pretty excited about.

Christopher A. Simon: The broader based opportunities for interventional, but it really is a tale of two closely adjacent but distinct call points between electrophysiology and interventional cardiology.

Christopher A. Simon: Thank you for that James Congrats on two years, I guess and all the detail on the new credit facility I was wondering if you.

Christopher A. Simon: I was wondering if you might be able to... frame out what interest expense is going to look like in fiscal 25, or at least maybe hit us with the average rate or what you anticipate you'll have out in the year. Yeah, thanks, Dave. Interest expense will be about a 16 cent headwind for us in fiscal year 2025 as compared to what we had in 24. That will be highly dependent. That assumes that the debt structure that we have right now continues through the year. So, you know, we're certainly keeping our fingers crossed for a few rate cuts.

Christopher A. Simon: You might be able to.

Christopher A. Simon: Frame out what interest expense is going to look like in fiscal 'twenty five.

Christopher A. Simon: Or at least maybe hit us because the average rate or.

Speaker Change: What you anticipate youll have out in the year.

Speaker Change: Yes, Thanks, Dave.

Christopher A. Simon: <unk> expense will be.

Christopher A. Simon: <unk> 16.

Christopher A. Simon: Headwind.

Christopher A. Simon: For us in fiscal year 2025, as compared to what we had in 'twenty four.

Speaker Change: That will be highly dependent on.

Christopher A. Simon: That assumes that the debt structure that we have right now.

Speaker Change: Continues through the year so.

Christopher A. Simon: Certainly certainly keeping our fingers crossed for for a few rate cuts.

James Derecka: Great. Thanks a lot. This concludes our question-and-answer session. Thank you for your participation in today's conference. This does conclude the program. You may now disconnect.

Speaker Change: Great. Thanks, a lot.

Speaker Change: This concludes our question and answer session. Thank you for your participation in today's conference.

Speaker Change: This does conclude the program you may now disconnect.