ICU MEDICAL INC/DE Q4 FY2024 earnings call

• Revenue for Q4 was $622 million, up 9% constant currency or 8% reported, aided by IV Solutions shortage. Adjusted EBITDA was $106 million and EPS was $2.11. Gross margins were slightly down due to higher IV Solutions mix. - Busy preparing joint venture with Otsuka Pharmaceutical Factory, impressed with partner's commitment. - Operational efforts: customer back orders at lowest since acquisition, logistics and supply chain more predictable.

Consumables: Q4 grew 6% both constant currency and reported. For the year, legacy ICU product families of IV therapy and Oncology hit a record in absolute sales, with Vascular Access having its best growth in years. Sequential growth driven by new global customer implementations, price improvements, and growth in niche markets. IV Systems: Grew 7% reported and 4% constant currency in Q4, with the best absolute quarter in pumps. LVP and ambulatory pump families had strong growth, and Q4 was the best in years for LVP pumps. Vital Care: Grew 16% constant currency and reported due to the IV Solutions national shortage, with the shortage returning to normal mid-Q1.

• 2025 guidance: Expects consolidated adjusted revenue growth in low-to-mid single-digit constant currency. Gross margin expected to be in the range of 37% to 38%. Adjusted operating expenses as a percentage of revenue to be approximately 24%. Net interest expense expected to be ~$95 million. Adjusted EBITDA in range of $395M - $425M and adjusted EPS in range of $6.55 per share to $7.25 per share. - JV deconsolidation: Reduction in adjusted revenue by $350 million and adjusted EBITDA by $25 million, but initial boost to gross margin by 3-4 percentage points.

• Currency fluctuations. - Potential impact of tariffs on business, with ~1/3 of global revenues from Mexico plants; uncertainty around tariff duration and mitigation efforts' payback.

Q: Jayson Bedford asked about Consumables growth, EBITDA margin ex Solutions, and IV Solutions deconsolidation timing.

A: Vivek Jain and Brian Bonnell discussed Consumables drivers, EBITDA margin proxy, and IV Solutions deconsolidation timing.

Q: Brett Fishbin inquired about capital equipment demand, Plum Duo market share.

A: Vivek Jain talked about competitive wins, market share installation, and the demand environment.

Q: Charlie Strauzer asked about balance sheet, asset sales, and facility consolidation.

A: Brian Bonnell and Vivek Jain discussed leverage ratio, asset sale possibility, and facility consolidation benefits.

Q: Michael Toomey questioned tariffs and JV margin impact.

A: Vivek Jain discussed tariff mitigation efforts and JV margin expansion phasing.

Q: Joseph Conway asked about Consumables components and EBITDA goal.

A: Vivek Jain and Brian Bonnell discussed Consumables growth components and drivers to reach EBITDA goals.