Good day, and thank you for standing by. Welcome to the Merit Medical Systems third quarter 2022 earnings conference call. At this time, all participants are in a 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 one on your telephone. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker today, Fred Lampropoulos. Please go ahead. Thank you, and welcome everyone to Merit Medical Systems third quarter of fiscal year 2022 earnings conference call. I am joined on the call today by Raul Parra, our Chief Financial Officer and Treasurer, and Brian Lloyd, our Chief Legal Officer and Corporate Secretary. Brian, would you mind taking us through the Safe Harbor provisions, please? Thank you, Fred. I would like to remind everyone that this presentation contains forward-looking statements that receive Safe Harbor protection under federal securities laws. Although we believe these forward-looking statements are based upon reasonable assumptions, they are subject to unknown risks and uncertainties. The realization of any of these risks or uncertainties, as well as extraordinary events or transactions impacting our company, could cause actual results to differ materially from those currently anticipated. In addition, any forward-looking statements represent our views only as of today, October twenty-sixth, two thousand twenty-two, and should not be relied upon as representing our views as of any other date. We specifically disclaim any obligation to update such statements except as required by applicable law. Please refer to the section entitled Cautionary Statement regarding forward-looking statements in today's presentation for important information regarding such statements. Please also refer to our most recent filings with the SEC for a discussion of factors that could cause actual results to differ from those forward-looking statements. Our financial statements are prepared in accordance with accounting principles, which are generally accepted in the United States. However, we believe certain non-GAAP financial measures provide investors with useful information regarding the underlying business trends and performance of our ongoing operations and can be useful for period-over-period comparisons of such operations. This presentation also contains certain non-GAAP financial measures. A reconciliation of non-GAAP financial measures to the most directly comparable U.S. GAAP measures is included in today's press release and presentation furnished to the SEC under Form 8-K. Please refer to the section of our presentation entitled Non-GAAP Financial Measures for important information regarding non-GAAP financial measures discussed on this call. Readers should consider non-GAAP financial measures in addition to, not as a substitute for, financial reporting measures prepared in accordance with GAAP. Please note that these calculations may not be comparable with similarly titled measures of other companies. Both today's press release and our presentation are available on the investor's page of our website. I will now turn the call back to Fred. Thank you, Brian. Start with a brief agenda of what we will be covering during our prepared remarks. I will start with an overview of our better than expected revenue results for the third quarter. After my opening remarks, Raul will provide you with a more in-depth review of our quarterly financial results and the formal financial guidance for 2022 that we updated in today's press release, as well as a summary of our balance sheet and financial condition. We will then open the call for your questions. Beginning with a review of our third quarter revenue performance. We reported total GAAP revenue of $287 million in the third quarter, up 7.5% year-over-year. Our total GAAP revenue growth was driven by 8.6% growth in U.S. sales and a 6.1% growth in international sales. Our total revenue increased 10.5% year-over-year in the third quarter on an organic constant currency basis, excluding the headwind to our GAAP revenue growth related to changes in exchange rates compared to the prior year period. We delivered constant currency revenue results that exceeded the growth expectations that we discussed in our second quarter earnings calls. Specifically, we shared our expectation for constant currency revenue growth in the range of 4%-6% year-over-year in quarter three. The better than expected constant currency revenue results were driven by solid execution from our team, stronger than anticipated demand in the US, and more favorable than anticipated international sales trends, particularly in EMEA and the APAC regions. Now let me provide you with a more detailed review of our revenue results in the third quarter, beginning with a sales performance in each of our primary reportable product categories. Note, unless otherwise stated, all growth rates are approximated and are on a year-over-year and constant currency basis. We have included reconciliations from our GAAP reported results to the related non-GAAP item in our press release and presentation available on our website. Third quarter total revenue growth was driven by 10% growth in our cardiovascular segment and 14% growth in our endoscopy segment. Sales of our peripheral intervention products increased 12%, representing the largest driver of total cardiovascular segment growth again in this quarter. Within the PI category, sales of our embolics and access products increased 18% and 24% respectively, and together represented nearly half of total PI growth. Sales of our SCOUT radar localization, angiography, and biopsy products each increased in the low double digits year-over-year and together represented roughly one-third of our total PI growth. Within our cardiac intervention business, sales increased 12% in quarter three, representing the second-largest contributor to total cardiovascular segment growth year-over-year. Cardiac intervention growth was primarily driven by 26% growth in sales of intervention products and 25% growth in the sales of our EP CRM products. Intervention products are the largest portion of our CI product category, which makes the 26% growth in quarter three even more impressive. Intervention products growth was driven by a notable increase in the sales of our MAP angioplasty packs and mid-teens growth in sales of our basic inflation devices. We also saw strong demand for our PhD Hemostasis Valve products in quarter three. The 25% growth in sales of our EP CRM products was driven by strong demand for our SNAP Sheaths and our HeartSpan sheaths and transseptal needles. Sales of our OEM products increased 23% and outperformed our expectations more than anywhere else in the business in quarter three. Some of this is a function of the challenge in predicting this type of business with quarterly precision, but we believe the third quarter revenue performance reflects continued improving demand from larger customers in multiple categories, including kits, cardiac access, coatings, and fluid management. While OEM growth was certainly a positive surprise, sales of our CPS products declined 3% modestly and underperforming relative to the flattest growth assumed in our guidance. Finally, sales in our endoscopy segment increased 14% in quarter three at the high end of the growth range we provided on our quarter two call. Recall that our quarter three guidance had assumed a notably wider range of sales in our endoscopy segment given the potential business disruption issues with a third-party contract manufacturer. As indicated on our quarter two call, we viewed this disruption as transitory, and indeed it was. We managed through the transition and delivered sales results at the high end of the growth range. Of note, endoscopy growth was driven by strong demand for both our Elation esophageal balloon products and our EndoMAXX fully covered esophageal stents. Now turning to a brief summary of our sales performance on a geographic basis. Our third quarter sales in the U.S. increased 7% year-over-year. Sales to U.S. customers came in above the high end of our growth expectations and represented 36% of our total company constant currency growth this quarter. OEM standout performance represented the largest contributor to the better-than-expected U.S. growth this quarter. PI, CI, and endoscopy revenue all came in at the high end of our expectations, reflecting continued strong execution and overall improving trends in the U.S. Our third quarter international sales increased 16% year-over-year, which is strong performance in light of the challenging global macro environment in quarter three. All three of our major regions posted growth in the mid to high teens in the third quarter. Specifically, sales in APAC, EMEA, and the rest of the world regions increased 14%, 17%, and 19%, respectively year-over-year. While all three regions exceeded the high end of our guidance expectations, EMEA and APAC drove more than 80% of the upside. EMEA growth was driven by demand from customers in Eastern Europe, the Middle East and Western Europe, specifically in the UK, France, Germany and Italy. APAC growth was driven, primarily by mid-teens growth in China, where we are seeing strong demand for our PI and CI products, which is more than offsetting the continued headwinds related to volume-based purchasing. Lastly, in our rest of world region, we've delivered 19% growth year- over- year, which was also ahead of expectations driven by strong demand from customers in Canada and Brazil. In summary, we are encouraged by the improving growth trends and proud of our team's strong execution despite another quarter marked by challenging operating environments, particularly in the international markets. Now, before I turn the call over to Raul, I wanted to comment on a few other noteworthy items in the quarter. First, we delivered another quarter of impressive profitability improvement, margin expansion and free cash flow generation in quarter three. Our non-GAAP gross profit, non-GAAP operating income and non-GAAP net income increased 6%, 17% and 23% year-over-year, respectively in quarter three. Our non-GAAP operating margin increased 130 basis points year-over-year to 16.1%, and we generated $20 million of free cash flow in the quarter. We believe our financial results over the first nine months of 2022 represent clear evidence that we are executing towards our goal of enhancing Merit's long-term growth and profitability profile. We remain committed to the financial targets that we outlined in the Foundations for Growth program for the three-year period ending December 31st, 2023, which by way of reminder, call for constant currency organic revenue to increase at a CAGR of at least 5%, non-GAAP operating margins of at least 18%, and cumulative free cash flow generated of more than $300 million. Second, I wanted to highlight another area where our team has been executing well towards one of our key strategic initiatives, specifically the development, clearance, and commercialization of new products. In addition to the four new products updates discussed in our quarter two call, we highlighted our continued progress in these areas with four notable press releases in the third quarter. In July, we announced the launch of a new version of our Elation Pulmonary Balloon Dilator, one that happens to be the smallest and shortest configuration offered in our range of multistage pulmonary balloon configurations. The unique balloon size fits a critical need in the pulmonary care space. Historically, physicians have relied on single-stage cardiovascular balloons that were often too large and too long for use in smaller airways. This new configuration allows physicians to accurately match balloon diameter and length to specific small airways in the lungs, bringing treatment options to more patients. In August, we announced the launch of our SafeGuard Focus Cool compression device. This new compression device builds upon the original SafeGuard Focus, a revolutionary idea that provides compression over closed surgical sites, which can assist hemostasis in patients with pacemaker and implantable cardioverter defibrillator pockets. The SafeGuard Focus Cool offers the same high performance, but with an easy-to-prepare cooling solution that does not require refrigeration, making it ideal for the lab environment. In September, we announced the launch of our Prelude Roadster Guide Sheath. The Prelude Roadster is the newest addition to Merit's vascular peripheral access portfolio, which includes introducers and other products, including access kits, vessel dilators, and accessories. The Roadster is designed for deliverability, visibility, and resilience in tortuous peripheral vascular anatomies. Indicated for use in a variety of procedures, we believe this device will also help deliver devices used to diagnose and treat the estimated 6.5 million people aged 40 and older in the U.S. suffering from peripheral artery disease or PAD. PAD is a serious condition where there is a narrowing or blockage of the vessels, mainly in the legs and lower extremities, that prevents blood flow to these areas. PAD is associated with a twofold increased prevalence of heart failure, as well as the risk of limb amputation. To diagnose and treat PAD, procedures are performed to detect and open blocked vessels. Merit's Prelude Roadster can help make these procedures available to more patients. Finally, in late September, we announced the launch of our TEMNO Elite soft tissue biopsy system. The TEMNO Elite is the latest addition to Merit's comprehensive portfolio of biopsy devices, and is a single-use device indicated for use in various soft tissue locations such as liver, lung, lymph nodes, kidney, and other soft tissue suspect lesions. We believe that TEMNO Elite represents another example of Merit's ongoing commitment to the advancement of biopsy procedures with its broad portfolio of products aimed at improving diagnostic accuracy in pathology labs across the nation. I'm proud of the team's continued commitment to strong execution in the areas of development, clearance, and commercialization of new products. Now with that said, let me turn the call over to Raul, who will take you through a detailed review of our third quarter financial results and our 2022 financial guidance, which we updated in today's press release. Mr. Parra. Thank you, Fred. Given Fred's detailed discussion of our revenue results, I will begin with a review of financial performance across the rest of the P&L. For the avoidance of doubt, unless otherwise noted, my commentary will focus on the company's non-GAAP results during the third quarter of fiscal year 2022. We have included reconciliations from our GAAP reporting results to the related non-GAAP items in our press release and presentation available on our website. Gross profit increased approximately 6% year-over-year in the third quarter. Our gross margin for the third quarter was 48.4%, compared to 49.1% in the prior year period. The 66 basis point decrease in gross margins year-over-year was primarily due to unfavorable manufacturing variances, specifically purchase price variances. As expected, we experienced higher freight costs compared to the prior year period. We continue to prioritize meeting customer demand and managing back orders, which has led to a higher mix of air shipments and delayed the transition back to a more cost-effective ocean alternative. As expected, our third quarter results reflect the inflationary headwinds we are seeing in freight, logistics, labor, and increasingly in raw materials. Similar to what we experienced in Q2, while our guidance assumed higher raw material costs and freight logistics expense year-over-year, our third quarter results included incremental headwinds from higher than expected raw materials and freight and logistics expenses, each of which represented headwinds to our non-GAAP gross margins of roughly 30 basis points on a year-over-year basis. Third quarter operating expenses increased 1% compared to the third quarter of 2021. The year-over-year increase in operating expenses was driven by a 2% increase in SG&A expense and a 3% decrease in R&D expense compared to the prior year period. Our operating expense performance in Q3 was better than expected and reflects continued prudent expense management. Total operating income in the third quarter increased $6.7 million or 17% year-over-year to $46.2 million. Our operating margin for Q3 was 16.1% compared to 14.8% in the prior year period. The year-over-year change in operating margin was driven by a 128 basis point reduction in our non-GAAP operating expense margin compared to the prior year period, offset partially by the 66 basis point decrease in our non-GAAP gross margin. Third quarter other expense net was $800 thousand compared to $1.6 million last year. The change in other expense net was primarily related to decreased expense from realized and unrealized foreign currency losses compared to the prior year period, partially offset by increased interest expense due to a higher effective interest rate year-over-year. Third quarter net income was $37 million or $0.64 per share, compared to $30.2 million or $0.52 per share in the prior year period. We are very pleased with our profitability performance in the third quarter, where we delivered year-over-year growth in both non-GAAP net income and diluted earnings per share of 23%, exceeding the high end of our guidance range, which called for low single-digit net income and EPS. Turning to a brief review of our financial results over the first nine months of 2022. Total revenue for the nine months ended September 30th was $856.6 million, up $61.3 million year-over-year or 10% growth on a constant currency basis. Gross profit increased 7% year-over-year to approximately $416 million, representing 48.5% of sales, compared to 49% of sales in the prior year period. A 50 basis point decrease year-over-year. Now, compared to the first estimate that we have experienced incremental headwinds to our gross margin of more than 250 basis points related to inflationary pressures in raw materials, freight, and logistics. The early benefits we were seeing as a result of the team's hard work and dedication to our Foundations for Growth program are the primary reason we haven't managed to offset the majority of these inflationary headwinds to our gross margins this year. Operating profit increased 15% year-over-year to $142.8 million, representing 16.7% of sales, compared to 15.6% of sales in the prior year period. 110 basis point increase year-over-year. We are driving strong operational leverage through prudent expense management, which is resulting in operating profit growing faster than revenue growth over the first nine months of 2022. Net income increased 15% year-over-year to $109.7 million or $1.91 per share, compared to $95.4 million or $1.67 per share in the prior year period. Turning to a review of our balance sheet and financial condition. As of September 30th, 2022, we had cash and cash equivalents of $51.5 million, long-term debt obligations of approximately $217 million, and available borrowing capacity of approximately $509 million. This compares to cash on hand of $67.8 million, long-term debt obligations of approximately $243 million, and available borrowing capacity of approximately $490 million as of December 31st, 2021. Our net leverage ratio as of September 30th was 0.7 times on an adjusted basis. With respect to our cash flow generation in the third quarter, our strong profitability performance in the third quarter of 2022, combined with strategic working capital investments, resulting in strong free cash flow generation of $20 million in the third quarter. As expected, our use of free cash for working capital increased compared to the prior year period. In recent quarters, we have discussed our strategy to proactively invest in our inventory balances to build the requisite safety stock and ensure high customer service levels. We generated $54 million of free cash flow during the nine months ended September 30th, 2022. We continue to expect strong free cash flow generation this year and remain on track to deliver our goal of generating at least $75 million of free cash flow in 2022. Of note, this free cash flow target assumes planned investments related to the Foundations for Growth program that are expected to drive our CapEx investments in the range of $55 million-$60 million in 2022. Turning to a review of our fiscal year 2022 financial guidance, which we updated in today's press release. For the twelve months ended December 31st, 2022, we now expect GAAP net revenue growth of approximately 6.5%-7.1% year-over-year. This GAAP net revenue range now assumes a headwind from the changes in foreign currency exchange rates in the range of approximately $23.7 million, representing a headwind of approximately 220 basis points to our forecasted GAAP growth rate this year. This FX impact reflects an incremental headwind of $5 million as compared to our prior 2022 guidance. Note, roughly $2 million of this incremental FX headwind was realized in Q3, with the balance of the increase expected to impact our GAAP revenue results in Q4. The GAAP net revenue guidance range now assumes net revenue growth of approximately 6.6%-7.1% in our cardiovascular segment, compared to 5%-6% in our prior guidance range. Net revenue growth of approximately 3.8% to 5.4% in our endoscopy segment compared to our prior guidance, which assumed a range of a 5% decline to an increase of 8% year-over-year. With respect to profitability guidance for 2022, we now expect GAAP net income in the range of approximately $64.8 million-$68.3 million, or $1.13-$1.19 per diluted share. This compares to our prior guidance range, which assumed GAAP net income in the range of $62.4 million-$68.3 million, or $1.08-$1.18 per diluted share. Non-GAAP net income in the range of approximately $146.9 million-$150.4 million, or $2.55-$2.61 per diluted share. This compares to our prior guidance range, which assumed non-GAAP net income in the range of approximately $139.6 million-$145.5 million, or $2.42-$2.52 per diluted share. For modeling purposes, our fiscal year 2022 financial guidance now assumes non-GAAP gross margins in the range of approximately 48.5%-48.8% compared to a range of 49%-49.15% previously. While we are pleased with our continued progress, we are seeing it as a result of our FFG initiatives in the area of pricing. We continue to see significant increases in the areas of raw materials and freight logistics. The 40-50 basis point revision to our non-GAAP gross margin expectations reflects the impacts of rising raw material costs and freight and logistics expenses over the second half of 2022, which are incremental to the increases contemplated in our prior guidance assumptions. Note, roughly 20 basis points of the change in our gross margin expectations was related to Q3, with the balance expected to impact our Q4 financial results. Finally, while impact of higher raw material cost is largely outside of our control, the impact on our gross margins in the second half of 2022 comes from a higher mix of air freight versus shipping freight, which is a direct result of our strategic decision to respond to the stronger than expected demand for our products around the world. Returning to a review of other key modeling assumptions supporting our updated financial guidance for 2022. We now expect non-GAAP operating margins in the range of approximately 16.8%-17.1%, compared to a range of 16.6%-17.1% previously. GAAP and non-GAAP, other expenses of approximately $6.1 million and $4.2 million, respectively, compared to $6.5 million and $4.8 million previously. A full year 2022 tax rate of approximately 22% versus 24% previously, and diluted shares outstanding of approximately 57.6 million. Lastly, given the continued uncertainty in the global macro environment, we would like to provide additional transparency related to our growth and profitability expectations for the fourth quarter of 2022. Specifically, we expect our total revenue to increase in the range of approximately 3%-5% increase year-over-year on a GAAP basis, and up approximately 6%-8% year-over-year on a constant currency basis. Note, the midpoint of our fourth quarter constant currency sales growth expectations assumes approximately 5% growth year-over-year in the U.S. and approximately 10% growth year-over-year in OUS markets. With respect to our profitability expectations for the fourth quarter, we expect to see non-GAAP gross margins in the range of flat to up 100 basis points on a sequential basis. We also expect to see non-GAAP operating margins increase in the range of 120 basis points to 240 basis points on a sequential basis. These margin expectations, combined with a notable increase in our non-GAAP tax rate compared to last year, specifically 23% versus 13% in Q4 of 2021, are expected to drive a change in non-GAAP net income and EPS in the range of down high single digits year-over-year on a low end to flat year-over-year on the high end of the range. With that, I'll turn the call back to Fred. Well, thank you, Raul. A lot of numbers and a lot of work done there, so I appreciate it very much. In closing, our third quarter growth and profitability performance exceeded our expectations, which we believe is a direct result of our team's continued strong execution and relentless focus on our strategic initiatives. We now know how hard they are working and how they are delivering these strong results despite the continued challenging operating environment around the world. We'd like to thank all of our team members around the world that made our performance over the first nine months of 2022 possible. Importantly, we are not resting on our prior success. We remain committed to continued progress. We're confident in our 2022 guidance, which now calls for the total revenue growth on a constant currency basis of 9% year-over-year. We also continue to expect to report improving non-GAAP operating margins and strong free cash flow in 2022. Now that wraps up our prepared remarks, and we'll turn the time back over now to our administrator for questions. Then following that, Raul and I will be available for the next couple of hours, to visit and get into more detail if necessary. We'll now turn it over to the administrator. Thank you very much. As a reminder to ask a question, you will need to press star one one on your telephone. Please stand by while we compile the keynote roster. All right. Our first question comes from the line of Jayson Bedford from Raymond James. Your line is open. Good afternoon and congratulations on the quarter. You guys are doing a nice job. I guess just a few from me. First, fourth quarter guidance, specifically on the implied or organic growth there. I guess the question is, and I can appreciate it's a dynamic market out there, but was there anything one-time-ish in the third quarter result that kind of propped up the organic growth in the quarter? Jason, the answer is no. Okay. Maybe for Raul or Fred, some of the gross margin dynamics. You stressed kind of the ocean versus air in terms of freight. When does that dynamic flip? I'm guessing sometime in 2023, but any kind of framing on that would be great. Yeah. We won't get ahead of ourselves to talk about 2023, Jason, but I think, you know, what we're looking for is reliability. I think things are definitely opening up and there's more capacity. It's just not reliable enough for our, you know, for our customers' needs, quite frankly. To the extent we continue to see the demand that we're seeing, you know, we'll continue to kind of, you know, use the current air versus ocean mix that we have. I guess it's dependent a little bit on that reliability of the carriers and the demand from our customers. Yeah. I would just say that's correct, and I think you saw that international result, and that was a result of making decisions to meet customer needs. It's as simple as that. Okay. Maybe just the last one for me, product related. Can you comment on WRAPSODY in Europe? Then just a reminder as to where we stand in terms of U.S. timing for that product? Thanks. Sure. WRAPSODY, in terms of timing, we're about halfway through, pretty close to halfway through the trial. Again, there was a number of, you know, we had the whole COVID thing and then, but it has been accelerating in terms of that enrollment. I'm gonna still say it's 2-2.5 years out for that approval. We still continue to be very pleased, and we've also seen a lot of interest there, continue to build the business over in Europe as well as Brazil. Thank you. Thank you. One moment for our next question. Our next question comes from the line of Larry Biegelsen from Wells Fargo. Your line is open. Good afternoon. Thanks for taking the question. I'll echo my congratulations on a really nice quarter here, Fred and Raul. Thank you very much. Fred, I just wanted to start maybe on 2022. I mean, year to date, you know, OpEx is relatively flat. R&D spending, you know, is actually down a little bit. How are you holding OpEx flat in an inflationary environment? Yeah, it's a good question, Larry. You know what? You know, Raul and I were talking about this, and I think he has a better explanation than I would have. I'll let him pick this up, and then I'll come back and comment if I need to add anything further. Raul? I mean, I think, you know, we have a lot of the right investments this year, Larry, you know, in certain things like trade shows and travel. Some of that expense is up, and you'll see it in the SG&A line. I think on the R&D line, quite frankly, there's you know, there's cost initiatives and things that are ongoing, you know, from that standpoint, including R&D and clinical. I think on the clinical side, you know, things have been a little bit slower than we anticipated on the enrollment, so that helps. Also just as we shift and move on priorities within R&D, that tends to push expenses out, you know, one way or the other. I think it's just prudent expense management on our side, making sure that we understand that we're still in a choppy environment on the way to, you know, kind of normalize recovery. Just, you know, just being patient with our expenditures. Some of it's just kind of outside of our scope. Larry, let me just add to that, and you've heard me say this many, many times. Our vertical integration allows us to control, you know, our production and to adapt to the conditions. That continues to be a very big deal for us. Merit just does it really well. I mean, we made those investments a long time and over the years, but it's made a difference. Raul? I think lastly too, I just wanna make sure that I point out, you know, our executive team and our employees, we're all really committed to achieving a, you know, the 18% non-GAAP operating margin as we head into 2023. I think there's a broad commitment from the executive team and the employees on making sure that we're, you know, frugal in our expenses. That's helpful. How do you know, if I think about 2023, you guys could have flat sales essentially and still meet your Foundations for Growth, you know, 5% CAGR, because you've done so well, you know, since you gave those goals in 2020. Hey, Fred, how do you want people to think about the momentum you have here? I mean, you know, the guidance implies about 9% organic growth in 2022. The momentum and how do you want people to just think about, you know, the growth algorithm for Merit going forward? Thanks for taking the question. You're welcome. Thanks, Larry. Larry, we want them to think about February of 2023 when we will go through our entire program. That's what we want people. We wanna finish the year. We wanna stick to the goals that we've set, and then in 2023, around February-ish, we will go through, and we will lay out our plan from there. All right, fair enough. Thanks, guys. All right, thank you. Thank you. One moment for our next question. Our next question comes from the line of Mike Matson from Needham. Your line is open. Yeah, thanks for taking my questions. You know, I wanna ask one on currency. You know, I understand that you're pretty clear with the impact on your top line, but I just wonder if you maybe talk about the impact on the expense side or the P&L. You know, has it had a material impact on your earnings? How well hedged are you? And, you know, as we head into 2023, is there a risk of any surprises there in terms of hedges rolling off or anything like that? Yeah. We obviously have a hedging program in place that buffers some of the impact that we're seeing. We also have natural hedges in place. As you know, we have operations in Europe, and then also some level of expenses in the APAC region that help also with our hedging. I say generally, we don't disclose the impact to the rest of the P&L. I would say that we might have some geography mixes within gross margin and OpEx because of the FX, but our hedging program is really designed to minimize the impact on EPS. I think that's why you're seeing a kind of a minimal impact on the earnings side. Okay, just as we head into 2023, I mean, there's no reason to expect that to change at all, that you should be able to continue to offset most of the impact from. Yeah, I mean, I think- to EPS? I think we're gonna be like most people, right? From an FX standpoint, I think most people, you know, as things lapse, you're probably looking at, you know, first half of the year next year, you know, people are gonna be challenged with FX. But again, for us, I think it's, you know, kind of business as usual. Well, I think, Raul, to your point, we have what we think is a successful program, and we'll stick with that program. That's right. Okay, got it. Just one on China. I think you said you saw mid-teens growth there, but you did call out some impact from the VBP program. I don't know if you're willing to quantify what, like how much better your growth would have been without VBP. Then just, you know, what's the longer term outlook there in terms of VBP? Do you expect, you know, continued headwinds from that, you know, over the next few years as they expand into more product categories? Yeah. Mike, listen, volume-based purchasing tenders are happening, but they are contemplated in our guidance. We've taken that. We don't stop and talk specifically about this, that, or the other, but we have contemplated those, and those are part of our guidance that we've provided and will be part of our discussion in February. Okay, got it. Thank you. You bet. Thank you, sir. Thank you. One moment for our next question. Our next question comes from the line of William Plovanic from Canaccord. Your line is open. Great. Thanks. Good evening. A question on guidance for this year. If I'm doing my math right, and please correct me if I'm not, you're basically saying revenue's gonna be flat sequentially in Q4, and EPS will be about flat sequentially when we get to the low end of guidance. What are you contemplating in that low end of guidance? Yeah, look. The fourth quarter is typically a much bigger quarter for everything, so I'm just trying to understand, you know, what gets us to the low end versus the high end. Sure, for sure. Look, I think, first of all, we had a great, you know, Q3. I think our Q4 growth, you know, really reflects kind of the continued improvement in the operating environment as we've talked about, you know, over the last year and a half. Again, you know, kind of a recovery, you know, a choppy recovery to normal is kind of a, you know, how we see things. We expect, you know, Q4 total revenue growth of approximately 6%-8% year-over-year on a constant currency basis. You know, the midpoint of our fourth quarter constant currency sales growth expectations assumes, you know, roughly approximately 5% constant currency growth year-over-year in the U.S. markets, and approximately 10% constant currency growth year-over-year in our OUS markets. Grant, I think those are pretty solid growth numbers when you look at it on a year-over-year basis. Okay. You know, how does FX, the hedging impact your gross margins? You know, obviously you're taking the hit to revenue, you know. Help us understand, 'cause what the question really lies is, you know, you haven't, your gross margin has actually come down a little. It doesn't seem like you get a benefit from it, you know, depending on where you put your FX into the P&L. I'm just trying to understand, you know, rates kind of the dollar peak strengthening and starts weakening again, how does that flow through into next year in terms of gross margin as we're looking at it? Yeah. Again, I guess, we're not gonna get into the details of that. As you know, Bill, I mean, these things are pretty complex, you know, especially as companies from company to company. I would just generally say that, you know, we have operations in Ireland. As the euro drops, you know, obviously that helps us. Also as revenue drops, that hurts us. There's a lot of offsets and hedging that goes in place along with intercompany balances that also kind of feed into that from a hedging standpoint. I'd say it's pretty complicated stuff, but, you know, which is why we don't get into all the details of what it does to the rest of the P&L. I'll just end with saying that, you know, that our hedging program is made to really minimize the impact on EPS, right? So that's the ultimate, you know, test for us, is, you know, how is our EPS, you know, moving one way or the other. So far, I think it's done a pretty good job of keeping us within our original guidance. Okay. Last question, if I may. Just on China. I mean, you guys have significant exposure to China. I think it's 13% of your sales or something like that. It's a pretty big piece of your business. Help us understand, you know, obviously, in this day and age, there's just a lot more protectionism coming in. And, you know, how are you protected from a top line and bottom line perspective in terms of that business? Well, I mean, look, I think if you look at our growth, you know, for one, I mean, you know, we had outstanding growth in almost every region. I would say that we're not overly dependent on China. I mean, we, you know, our APAC growth was pretty stellar. You know, I would say that generally China is a big part of our business, but and we continue to invest there. We continue to register products. But, you know, I think there's other areas that we're investing also that can help, you know, minimize the impact from that standpoint. Great. Thanks for taking my questions. Thanks, Bill. Thank you. One moment for next question. Our next question will come from the line of Jason Bednar from Piper Sandler. Your line is open. Hey, guys. Congrats on the solid quarter. You got Joe Downing here for Jason Bedford. So bigger picture question on pricing dynamics. It sounds like some of the initiatives from the company are having some real positive effects and a few intertwined questions here, but could you give us a sense as to where you're having the most success taking price in this environment on a product level or a country level basis? Then how sticky do you think this price increase trend can be as we look forward to 2023? Yeah. Let me just say that, pricing is part of one of the pillars of our Foundations for Growth. I think that is generally the area. I'm not gonna address specifically, but it is one of those issues that we identified a long time ago, and it's helping a lot. I'll just leave it at that. It helps to offset, you know, of course, the inflationary, you know, pressures. It's part of the reason we delivered the financial results in the third quarter. It's an important part of our overall program. Again, we'll talk about maybe these factors sometime in February. Great. Thanks. One more from us. So I have in my notes that you were executing on some product line transfers from your Texas facility down to Mexico, and we're wondering if you could update us here on the progress you've made with that initiative. You know, is it complete? And what's the right way to think about the cost savings from this effort? Yeah, I'm gonna let Raul pick that one up. Yeah. It's obviously, you know, one of our Foundations for Growth targets. We don't give detailed, you know, kind of, you know, status of where things stand. I would say it's in progress. It is a multi-year effort. As you can imagine, moving that many product lines, you know, that are registered all over the world just takes time and which is why we don't call out the specific details. I would say the work is ongoing, and there's still wood to chop there. Thank you. Thanks, guys. It's part of our, another pillar in our Foundations for Growth. Yeah. These are the things that we identified, and we talked about, you know, when we came out with our program in terms of, footprint and consolidation. It's an important part of our overall program of improving the operations of the company. Thanks. Really appreciate it, guys. You bet. Thank you. Thank you. One moment for our next question. Our next question will come from the line of Jim Sidoti from Sidoti. Your line is open. Hi, good afternoon. Thanks for taking the questions. You're welcome, James. You increased your revenue guidance despite an increase in the currency headwinds. Are you doing that because you're seeing share gains? Are you getting better traction with the new products or are the price increases starting to take effect? Yes, yes and yes. That was a good answer, Jim. I mean, I don't wanna be a wise guy, but you know, I think the performance is always as you know, Jim, a function of a lot of factors. Yeah. I mean, I'll take a minute to, you know, maybe thank our sales force, you know, for the efforts and the execution on their part. Not just one region. I mean, it's across multiple regions. And then also our operations group for being able to deliver the product. I think it's a challenging environment right now, you know, procuring raw materials and getting people to show up to work and, you know, they're doing a magnificent job not only on execution on the sales side, but then being able to also deliver the product. You know, we're pretty excited about the efforts on their part and wanna just thank them, I think, you know, publicly. Well done, Rahul. I agree with you. It sounds like the supply chain issues with the endovascular business are behind you at this point. Do you see any of the other supply chain issues starting to improve, or do you think they're still gonna be a factor going into next year? You know, Jim, that's a great question. We continue to see kind of modest disruption, right? I think it's hard to predict. That's what I would say. I think things are generally getting better, but we have a hard time predicting whether things, you know, whether things are gonna be stable or not. It's just one-offs, that's the problem that we see, right? It's you know, a little plastic part that you know, you wouldn't have thought of, you know. It's just random things and it's still difficult. But again, I think we're doing a pretty good job. Obviously, you can see the sales numbers. You know, we're executing at a very high level, and that's not possible without our operations group delivering the product. I think you know I don't know how long it'll stick around, but what we wanna be able to see before we're comfortable with it is just you know just getting a little you know forecasting those raw material purchases a little bit better and not getting surprises is what we're looking for. Yeah. Yeah, good luck. Yeah, exactly. They're out there. They're out there. Yeah. They're out there, right? I'd say generally it's better, but we're still getting surprised. There you go. You highlighted a few of the new products that benefited you in the quarter. Then you mentioned that you know, you're about 50% enrolled on WRAPSODY. You know, when WRAPSODY gets approved, do you think that'll be a contributor on the same order of magnitude as the new products you have now, or do you think that'll be something that'll be a much larger contributor? I'm not gonna go into that number, Jim, in terms of matching it up on something that, you know, we have a belief in and this and that. We'll wait to see how this develops. Again, it'll be maybe part of our discussion down the road. I think what is really important is that Merit's ability to work through the supply chain, meet the demands of customers and continuing are the same thing that Merit has been known for so long, and that's coming out with the new products. You know, whether it be, you know, breakthrough designations or the new SCOUT Bx delivery system, the Mini Reflecta, the ReSolve Pneumothorax Tray, all of those things all add up and I think are part of Merit's heritage. Right. The last one for me. You know, if we do hit a recessionary environment next year, are there any product lines that you're concerned about in particular, or do you think you'll be able to plow through that? You know, it's a good question, Jim, and it's one that I'm happy to answer, and that is, generally speaking over the years, our business does not suffer from, as you might have other consumer types and other product lines and businesses. People still get sick, people still need to be treated. You know, recessions are not a big factor at Merit. I mean, it's just as simple as that. I think history would, if you go back and look at it, you'll find that Merit's done quite well during these economic pullbacks. All right. Well, that's it for me. Thank you again for taking the questions. All right. Jim, good to hear your voice. Thank you. One moment for our next question. Our next question will come from the line of Michael Petusky from Barrington Research. Your line is open. Hi, guys. It's Mike. Hey, Mike. Hey, Mike. I guess, Fred, you know, first of all, impressive Q3. When you sort of think about all the macro issues that are out there, whether it's labor retention, inflation, shipping challenges, currency headwinds, as the previous question, possible recession, flu, COVID possibly coming back heavy in the winter. I mean, what are the two or three things, if you could narrow them down to two or three things, that you really are sort of like, "This concerns me," or "This is gonna be a challenge," or "We're really gonna have to be bringing our A game to this particular area or this particular headwind." I mean, how do you sort of. I can't remember a time when there's been more to think about on a macro level than right now. Thanks. You know, I think when you were talking that Raul said war, I mean, that's another factor. What's that going to do and what goes on all these places? You know, I think maybe the better way to answer or the best way to answer that question is, if we look over the 35 years of Merit's history, you know, whether it be financial meltdowns, whether it be threats here and there, whether it be wars, whether it be terrorism, I mean, when you really kind of look at all of this, you know, COVID, we can't forget all those other things that happened, what it did to slow down, you know, 9/11. You know, war in Iraq and war in Afghanistan. I mean, all of these things, you know, we've been hit by all of these things over the years. Mike, I guess to answer. The best way to answer your question is, the ones we've already been hit with, you know, we know how to deal with those generally. It's always the one that you don't see coming. Even with that, as COVID came through, Merit adapted, our workforce adapted, our sales force adapted to meet customer needs. We found products that we could build, like the swabs that were temporary, but it helped the business to keep 200 people employed. It, you know, we helped people, we helped the nation. You know, I think, you know, a success of a business, and I'm gonna speak military for 30 seconds, you adapt to the conditions. That's the key to it, and it's one of Merit's strong suits. It always has been. Yeah. Take it on, whatever it is. A lot of it, too, you know, we talk a lot about all the issues that are out there, Mike. I think, you know, you could lose focus very quick if you just focus on those issues, right? The reality is a lot of that's outside of our control. Really being focused on what we can control and execute on is what we've been doing, really the last, you know, few years, and I think it's helped us tremendously, obviously. I think that's a terrific answer. You know, we'll work on the things that we can, and we'll adapt to the things that we can't. Exactly. Yeah. Fair enough. Sort of a pivot off that question. I suspect that some other companies maybe haven't managed through all of this quite as cleanly as you guys have, and I'm not minimizing. I know it's been a Herculean effort on your part, but there are probably some other companies out there that you know, maybe are looking to divest product lines or that sort of thing. Really what I'm getting around to is you're generating a lot of cash, balance sheet's delevered in great shape. I mean, I would assume valuations for assets are coming down as far as the type of assets you guys look at. I mean, what are you seeing and what are your thoughts? Well, I think you're right. I think those things are out there, but I wanna make sure that I emphasize again that Merit's goal is to finish that third year of Foundations for Growth while keeping our eyes open. We understand that we do and are in a position to look at things, but they have to fit. We're very patient, and the business, I think, is doing fine. It's just the discipline and the focus, and I think that's what's helped us to be able to deliver these kinds of results. We know they're out there. We've talked about them. There's opportunities. Again, they have to be consistent with the long-term goals that we've set out in our Foundations for Growth, Mike. I mean, that may sound like a canned answer. It kind of is because we have a canned program. We are focused, laser-focused on what we want to accomplish and what we promised, so. I suspect a lot of investors are giving a standing O for that answer. Hey, last quick question, on just this idea that flu could be heavy this winter and maybe COVID comes back. Are you hearing anything from your contacts, you know, in hospital systems about concerns about staffing of hospitals or anything that would sort of really curtail surgical volumes? Thanks. Yeah. You know, not specifically into surgical, but staffing, you know, we have a member of our board that runs a hospital system. You know, staffing is a problem for everybody. Until we get, you know, the participation rate higher and things like this, it's a challenge for everybody, Mike. It's not going away. What we're not hearing the things that we were hearing before, like, elective procedures and that sort of stuff, I'm not hearing that language. Just staffing in general is a problem, but not in terms of procedural rates at this point. Okay. Gotcha. Thank you so much. All right. Thank you, sir. Thank you. Now we'll conclude Q&A. I'll turn it over to Fred for any closing remarks. Well, ladies and gentlemen, thank you very much for your time. It's a busy day, and just one closing note. It's snowing like crazy out here. Come out and see us. We'd love to host you here in Salt Lake City. Thank you again for the time, and we'll look forward to talking to you again soon. Best wishes and good night from Salt Lake. This concludes today's conference call. Thank you for participating. You may now disconnect.