Greetings, and welcome to the Artivion Second Quarter 2022 Financial Results Conference Call. At this time, all participants are on a listen only mode. A brief question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Mr. Brian Johnston of the Gilmartin Group. Thank you, sir. Please go ahead. Thanks, operator. Good afternoon, and thank you for joining the call today. Joining me from Artivion's management team are Pat Mackin, CEO, and Ashley Lee, CFO. Before we begin, I'd like to make the following statements to comply with the Safe Harbor Provisions of the Private Securities Litigation Reform Act of 1995. Comments made on this call that look forward in time involve risks and uncertainties that are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The forward-looking statements include statements made as to the company's or management's intentions, hopes, beliefs, expectations, or predictions of the future. These forward-looking statements are subject to a number of risks, uncertainties, estimates, and assumptions that may cause actual results to differ materially from these forward-looking statements. Additional information concerning certain risks and uncertainties that may impact these forward-looking statements is contained from time to time in the company's SEC filings and in the press release that was issued earlier today. Now I'll turn it over to Artivion CEO, Pat Mackin. Thanks, Brian. I'm pleased to report we've delivered another strong quarter following two consecutive periods of double-digit constant currency top line growth. Constant currency revenue growth was 9% compared to Q2 of 2021 this quarter, putting us at a 10% constant currency revenue growth in the first half of the year. Overall, we remain on track to deliver on each of the commitments we made at our investor meeting in March. Once again, our growth was driven primarily by aortic stent grafts and our On-X mechanical valves as well as tissue processing segments. More specifically, on a constant currency basis, when we compare Q2 of 2022 to Q2 of 2021, stent grafts grew 23%, On-X grew 12%, tissue processing grew 7%. As we expected, BioGlue revenue in the second quarter decreased compared to the second quarter of last year, primarily due to delay in securing our CE marking renewal as well as tough comps in the North America market for BioGlue in the first half of 2021. To that end, we've made significant progress on the CE marking since our call last quarter. In June, our notified body completed their in-person inspection of our U.S. facility as well as their inspection of our German facility. We now expect to have our CE renewal near the end of the third quarter. In the meantime, we've continued to make substantial progress in securing country-specific derogations enabling us to sell product. These derogations collectively now cover approximately 80% of our BioGlue business in Europe through the third quarter. Our success on all these fronts has reinforced our confidence that we can deliver on our three key growth initiatives that we outlined at our Investor Day in March, in which we believe will drive double-digit constant currency revenue growth over the next three years. As a reminder, our three initiatives are as follows. First, we will drive continued growth in On-X and our aortic stent grafts. Second, we will continue to benefit from our investment in our channels and our new regulatory approvals in Asia Pacific and Latin America. Third, in 2022, we will drive growth through PMA approvals in the U.S. for PerClot and the On-X PROACT Mitral low INR indication. For stent grafts, revenues in the second quarter increased 23% on a constant currency basis compared to the second quarter last year. We saw broad strength in this category for the quarter. For On-X, we posted 12% constant currency revenue growth in the second quarter compared to the second quarter of last year. The feedback we are receiving from customers on each of these product lines is that the superior clinical differentiation has been extremely positive, and we anticipate the demand for these products will continue to build as market adoption increases and hospital staffing shortages abate. Moving to our next initiative, expanding our presence in Asia Pacific and Latin America through new regulatory approvals and commercial footprint expansion remains on track. I'm pleased to report that we're continuing to execute very well on this strategy, as demonstrated by second quarter constant currency revenue growth of 38% and 59% in Asia Pacific and Latin America, respectively. We expect these regions to be important contributors of growth over the coming years as we execute on this strategy. Regarding our third initiative, we continue to make progress on achieving regulatory approvals for our low INR On-X Mitral valve and for our PerClot by the end of the year. With respect to the On-X Mitral valve, we continue to expect to receive PMA approval in 2022. If approved, we believe we will take significant market share in the U.S. with the On-X Mitral valve, just as we've done and are continuing to do with our On-X aortic valve. For PerClot, we continue to work closely with the FDA and expect to receive approval during the second half of 2022. If approved by December 31, 2022, we will receive a $25 million payment from Baxter, which is a milestone due to us based on our divestiture agreement, and we'll begin to generate revenue from supplying PerClot to Baxter for approximately two years thereafter. In addition to our progress on each of these three initiatives, we also continue to make strides on our midterm pipeline with three key products currently in U.S. clinical trials. These three products are PROACT Xa, NEXUS, and AMDS. Regarding the PROACT Xa trial, we continue to make significant enrollment progress in this prospective randomized clinical trial to determine if patients with the On-X aortic valve can be maintained safely and effectively on Eliquis versus warfarin. As of today, we've enrolled over 800 patients, and feedback from surgeons and patients participating in the trial remains very positive. We anticipate completing enrollment in the fourth quarter of 2022. Assuming the trial meets its endpoints, we expect FDA approval for this new indication by early 2025. We believe the On-X Aortic Valve, using Eliquis rather than warfarin, will become the market share leader in the aortic valve market for patients under the age of 70, given significant patient benefits using Eliquis over warfarin. As for AMDS, I'm pleased to announce we recently enrolled our first patients in our pivotal trial called PERSEVERE for the AMDS device. As of today, we have four patients enrolled in that trial. PERSEVERE is a non-randomized clinical trial in up to 25 U.S. sites of approximately 100 participants who have experienced an acute Type A aortic dissection. The combined primary efficacy and safety endpoints of the trial are the reduction of all-cause mortality, new debilitating stroke, myocardial infarction, and new onset renal failure requiring dialysis, as well as the re-expansion of the true lumen of the aorta. We are now anticipating completing full enrollment during the first quarter of 2023. Following a one-year follow-up period, we expect or we anticipate, if the trial meets its endpoints, we should receive approval for AMDS in early 2025. In addition to the progress we've made in the PROACT Xa trial and the AMDS IDE, we are pleased to report that our partner at Endospan is also making progress on its U.S. IDE TRIOMPHE trial for the NEXUS Aortic Arch Stent Graft System. In that trial, there are approximately 23 patients already treated and a total of 34 patients approved for treatment. Endospan is currently estimating trial completion in June 2023 and PMA approval in 2025, again, assuming the trial endpoints are met. To reiterate, each of these three PMA trials proceeded as anticipated. We anticipate FDA approval for PROACT Xa, AMDS, and NEXUS in 2025. At that time, assuming we exercise our option for Endospan, these products would increase our addressable market by an estimate of $1.3 billion. With that, I'll now turn the call over to Ashley Lee. Thanks. Thanks, Pat, and good afternoon, everyone. Total revenues were $80.3 million for the second quarter, up 6% on a GAAP basis and up 9% on a constant currency basis, both compared to the second quarter of 2021. As Pat mentioned, we benefited particularly from strength in aortic stent grafts, On-X, and tissue processing. On a year-over-year basis, in the second quarter of 2022, aortic stent graft revenues increased 13%, On-X revenues increased 10%, and tissue processing revenues increased 7%, reflecting new product launches and improving procedure volumes relative to the second quarter of 2021. BioGlue revenues decreased 11%, reflecting the CE marking renewal delay as well as tough comps in 2021 in North America. On a constant currency basis, compared to the second quarter of 2021, aortic stent graft revenues increased 23%, On-X revenues increased 12%, tissue processing revenues increased 7%, and BioGlue revenues decreased 9%. On a regional basis, second quarter 2022 revenues in Asia Pacific increased 37%, Latin America increased 69%, North America increased 5%, and Europe decreased 4%, all compared to the second quarter of 2021. On a constant currency basis, revenues in Asia Pacific increased 38%, Latin America increased 59%, North America increased 5%, and Europe increased 6%, all compared to the second quarter of 2021. Gross margins were 65% in the second quarter compared to 66% in the second quarter of 2021. The decrease was driven by product mix within our aortic stent graft and BioGlue product lines and inflationary impacts on materials and labor. G&A expenses in the second quarter were $39 million compared to $40.8 million in the second quarter of 2021. Excluding non-recurring acquisition-related and business development benefits of $3.1 million in 2022, which primarily consist of a non-cash $3.2 million benefit related to fair value adjustments for a CryoLife contingent consideration and rebranding charges of $289,000 and excluding non-recurring acquisition and business development charges of $3.4 million in 2021, G&A expenses were $41.8 million for the second quarter of 2022 compared to $37.4 million in the second quarter of 2021. On the bottom line, we reported GAAP net loss of $4.3 million or $0.11 per fully diluted share in the second quarter of 2022. Non-GAAP net loss was $1.3 million or $0.03 per share in the second quarter. GAAP and non-GAAP net loss includes $3.8 million or $0.07 per share in losses on foreign currency revaluations. Excluding these amounts, non-GAAP net income would have been $1.5 million or $0.04 per share. As of June 30, 2022, we had approximately $40 million in cash, $316 million in debt, and the full $30 million available under our revolving credit facility. Adjusted EBITDA for the second quarter of 2022 was $10.3 million compared to $12.8 million for the second quarter of 2021. Please refer to our press release for additional information about non-GAAP results, including a reconciliation of these results to our GAAP results. Now for our 2022 outlook. We continue to expect constant currency growth of between 9% and 11% for the full year of 2022 compared to 2021. In our last call, we stated that we faced an $8 million currency headwind in 2022 versus 2021. Since that time, the dollar has continued to strengthen, resulting in additional FX headwinds of approximately $2 million. Considering our better than anticipated performance in Q2, partially offset by the continued strengthening of the dollar, we continue to anticipate full year revenues in the range of $317 million-$323 million. Due to the continued volatility in the FX markets, we want to provide a little more information on what we see for the balance of the year. At a euro USD FX rate of approximately 1.03, our prior year Q3 2021 adjusted revenue is approximately $69 million, and our fourth quarter 2021 revenue is approximately $76.5 million, reflecting FX headwinds of approximately $3 million in each quarter. We expect that growth in both the third and fourth quarters should be consistent with our full year guidance of between 9% and 11% constant currency growth. We believe that we can comfortably continue to invest in our commercial channels in Asia and Latin America, our R&D pipeline, and service our debt without having to raise additional capital. I will turn the call back to Pat for his closing comments. Thanks, Ashley. To summarize, our third consecutive quarter of strong execution leaves us more confident than ever in our ability to execute on our growth initiatives and achieve our goal to become the world leader in aortic repair through innovation. We're expanding our global commercial footprint and investing in our clinical programs. In the next three years, we expect revenue to grow double digits to approximately $400 million. We anticipate a 200 basis point increase in our gross margin. We expect to generate between $75 million and $80 million in Adjusted EBITDA and reduce our net leverage to less than 3x. Our success in the second quarter positions us well to deliver on these metrics. First, we saw 23% constant currency growth in our stent graft program, 12% growth in our On-X franchise, and 7% growth in tissue processing. Second, we posted 59% constant currency growth in Latin America and 38% growth in Asia Pacific, and we're continuing to invest in these regions. Third, in 2022, we expect to receive PMA approval for PerClot and the On-X PROACT Mitral low INR indication. We also have a very robust midterm pipeline of 3 U.S. clinical trials that are currently enrolling. We expect these trials of PROACT Aortic, NEXUS TRIOMPHE, AMDS PERSEVERE, will all expand our total addressable market by $1.3 billion in late 2024, early 2025. At this point, we have all the essential pieces in place, and we've pivoted our focus to execution. Having led highly effective commercial organizations over the years, I know that the key to successful execution is having the right team in place. I'd like to thank our management team and all of our employees for their hard work and dedication. With that, operator, please open the line for questions. Thank you. The floor is now open for questions. If you would like to ask a question, please press star one on your telephone keypad at this time. A confirmation tone will indicate your line is in the question queue. You may press star two if you would like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star key. Once again, that is star one to register questions at this time. The first question today is coming from Rick Wise of Stifel. Please go ahead. Good afternoon, Pat. Hi, Ashley. Pat, just to start off, it's great to see how much progress you continue to make and that the year's on track and all these programs are on track. I'm sort of curious, I was a little anxious coming into the quarter not knowing what to expect from a macro perspective. I mean, we've heard all the companies this quarter talk about the staffing impact, inflation, transportation, you know the long list. So the question is, how did all that affect you? Would the numbers have been, or the progress have been even better? How are you thinking about it as you frame the rest of your second half guidance? Yeah. Thanks, Rick. You know, I do think one of the key messages here is, you know, I've seen a lot of other companies report, and we're seeing the same stuff, right? Foreign currency has obviously been a headwind with the euro. Inflation's at a 50-year high, so your cost of goods, your materials, and your labor costs are going up, which is affecting gross margin. There's been staffing issues, both COVID related and more, actually, I think more just overall staff turnover, and you know, I've had a chance to talk to a number of our customers, and I do so on a regular basis. It's just kinda on the edges, so I can't really tell you how much better we would've done, but I know it's out there. I think, you know, our mantra here is that, you know, this is execution. You know, we face headwinds all the time, and we power through them. As far as how it kind of affects us kinda going forward, I mean, I think the one thing is we have a tool we can use if these inflationary pressures exist, which is price. You know, if these things don't abate soon, we're gonna continue to take price, and it's basically something we have to do. We have a product line that is a very high-end portfolio with not a lot of competition, so we have a lot, you know, we have a lot of pricing power in the market with the ability to take price. I mean, I... All these, all the things you talked about existed in the second quarter, and we powered through and had a good quarter. I mean, we'll manage the same in the back half. Gotcha. It was also encouraging to hear about your PROACT Xa enrollment progress, over 800, as you said, if I heard it correctly. I know you're blinded here, but is it a good way to ask how many years of follow-up will the next look include? Just trying to get a sense of where we are and, you know, any pointers that might encourage us on PROACT Xa. We're over 800. I think we're at about 805, as of, I think, yesterday, out of 1,000. We will enroll this trial in the fourth quarter, hopefully before the next earnings call, so in the next 90 days. You know, one of the things about this trial or the way it was designed is as long as it keeps enrolling, then that means things look okay. The data safety monitoring board meets on a regular basis to review the data. You know, if the trial stops, that's obviously bad news. The fact that the trial has over 800 patients, we enrolled our first patient in May 2020, so over two years ago. We have 400 patients on Eliquis right now. I think that bodes well, and obviously, we don't know until the end of the trial. I think that the more time that goes by and the more the patients that keep adding up, the more years of follow-up that you get and the more, you know, the higher the probability of success. We are also, I think, very confident, that if this trial gets approval by the FDA, this will be a significant shift in the market. I've said it a number of times, and, you know, we'll show people, but this will be the market-leading valve in patients under 70 years old, and you can run the math and see what that means. Yeah. No, for sure. Maybe just one last one for me. Gross margin. Obviously, the quarter came in a reasonable way. Gross margins have been sort of hanging in there in the 65%-66% sales range. How do we think about the second half here, again, given the puts and takes from FX, inflation, et cetera, et cetera? Is this the right way to think about it in the second half as well? Yeah. I think that I'll let Ashley jump in. A couple comments on gross margin. One, we definitely saw an impact on BioGlue, just because we were having to sell different sizes because we're running out in Europe, and so there was a little bit of noise around the BioGlue CE marking issue. You know, the biggest headwind on gross margin for us has been what everybody's seeing, right, is the increase in materials cost, increase in labor costs. We're gonna get more aggressive on the pricing front, and I already made that comment. Maybe, Ashley, you can chime in. Yeah. Rick, we estimate that inflation has had about 150 basis point impact on gross margins. We anticipate that's gonna be the impact for the full year. Now, with that being said, you know, we have been taking some price in the first half of this year that's allowed us to mitigate maybe about half of that impact. And as Pat said, you know, we're gonna look to get more aggressive on pricing in the second half of this year. As you look out over the balance of this year, you know, we've been hanging around the 65% range. Last year, we ended up just a little bit over 66%. You know, we anticipate that we're gonna be, you know, closer to the 66% range than 65% for the second half of this year. Again, a lot of it's gonna, you know, depend on, you know, what we continue to see in regards to inflation as well as, you know, the success that we have in the second half in regards to taking additional pricing. Gotcha. Very clear. Thanks again. Okay. Thanks, Rick. Once again, ladies and gentlemen, that is star one to register a question at this time. Our next question is coming from Suraj Kalia of Oppenheimer. Please go ahead. Hey. Hey, Pat, Ashley, can you hear me all right? Yes. Hey, Suraj. Gentlemen, congrats on a great quarter, considering the circumstances. I think you guys have consistently delivered throughout COVID. Pat, jumping in between a couple of calls, did you mention the number of patient years already in the bag on PROACT Xa? The reason I ask is, I did not. I actually don't have that at the tip of my tongue. I mean, we've enrolled 805 patients as of yesterday, with a goal of enrolling 1,000. Our first patient was enrolled in May of 2020. I actually don't have the patient years. That's something I can actually get fairly quickly, but I don't have that at my fingertips. Pat, are you still somewhat contemplating maybe we can rush this using a number of patient years for PROACT Xa filing? Yeah, no, it's a great point, Suraj. I mean, we are, you know, we plan on enrolling in this trial in the fourth quarter, and we are gonna approach the FDA about submitting with 16. So if you think about a trial like PROACT Mitral, which is our low INR Mitral, which you're well aware of, that's a one-year follow-up, which is 800 patient years. They wanted two years of follow-up, which is 1,600 patient years. We will hit 1,600 patient years in less than a year. So I think that's something we're gonna explore. We don't have any, you know, definitive guidance on that yet, but that's something we're gonna pursue. Okay. Pat, what is the status of proctoring in Europe? More specifically, Pat, give us your bird's-eye view of how you view Germany in particular, with, you know, with all the geopolitical issues going on, you know, just trying to preempt if or any issues could crop up later in the year with everything going on. Yeah, I mean, we had a solid quarter in Europe. The only real issue was these derogations. It was, you know, the BioGlue CE marking. You know, when we were on our call last quarter, in mid-February, you know, we had one derogation out of, like, 20, and we've subsequently gotten, like, 15 of them. Our team did a great job getting these derogations. I think we've got 85% of the BioGlue revenue covered, and we had a great inspection with the regulators and, you know, we're tracking for our CE marking under MDR to be back at the end of the third quarter. You know, Germany, I think it's kinda... I've been there twice in the last quarter. I was there twice. Aside from the travel nightmare, I think things are running as usual. We've talked to our local team about, you know, the power grid and how we get power and everything else. I think we feel pretty confident that, I mean, again, I can't predict what's gonna happen geopolitically, but I think as things stand today, we don't really see that as an issue for us in the second half. Fair enough. Pat, final question, I'll hop back in queue. On-X. Walk us through, in the U.S., how many sites are using On-X aortic? Would love to get some, you know, parameters on utilization rates, if you could share. More specifically, when we look at On-X Mitral high risk, you know, just kinda compare and contrast, if you could tell us, you know, or give us an idea of what the low-hanging fruit could be post-approval, you know, and when you start launching. Just trying to get a sense of what the immediate pull-through could be. Gentlemen, congrats again. Thank you for taking my questions. Hey, thanks, Suraj. Yeah, so there's about, this is off the top of my head. You know, there's about 800 hospitals that do aortic and Mitral valves. Some of them do very few. I mean, our major focus is on, like, 600 accounts, and we're probably in, like, 450 of those 600 accounts. And again, some of them are just smaller accounts and don't have a lot of volume. One of the things we saw with PROACT Aortic is, you know, we would be in a center with one surgeon, but then when the data came out, we would spread that to multiple surgeons. It's not just being in the account, it's actually how deep you are in the account. Also, kinda as to your point, opening up new accounts. You know, we've talked about PROACT Mitral as a you know a $40 million opportunity for us just taking mechanical share. We would be the only assuming we get FDA approval in the second half, we'll be the only Mitral valve in the mechanical space that has a low INR. We've showed you what we've done with the PROACT Aortic. We're the market leader in the mechanical aortic space at this point. At least in the U.S. where we have good share data, we expect to do the same thing with the PROACT Mitral. Thank you. At this time, I'd like to turn the floor back over to Mr. Mackin for closing comments. Thanks for joining today and, you know, we're pleased that we've strung together three nice quarters. We're growing 10% halfway through the year. We've got, I think, a very simple approach with four key growth drivers. We focus on our key products, On-X and stent grafts. They're both growing. One's growing 23%, one's growing 12%. We focused on expanding in Asia Pacific and Latin America. One's growing 59%, one's growing 39%. We're focused on getting our two PMAs approved, PerClot and PROACT Mitral. We're focused on enrolling our three PMA clinical trials, which will get us to $1.3 billion in 90% gross margin revenue that, if all get approved, will be in the market in 2025. This is really an execution story. As you heard from some of the questions, we're delivering even in the face of a lot of challenges. We've you know reiterated our guidance for the rest of the year, and feel confident that we can deliver it. Thanks for joining, and we'll see you next quarter. Ladies and gentlemen, thank you for your participation. This concludes today's event. You may disconnect your lines and enjoy the rest of your day.