Frank Takkinen: Great. Thanks for taking the questions. Congrats on the quarter. Wanted to start with one on stents. Pat, you alluded to it in your prepared remarks, but manufacturing has been a challenge clearly that came back really solidly this quarter. Was hoping you could take us a little bit deeper into the status of that. Is there still work to be done? Are you feeling pretty confident with your current capacity and how should we be thinking about that line item through the back half of the year?
Pat Mackin: Yes. So if you go back over the last couple quarters, right, this is one that we highlighted that Q1, our – really our only kind of like light performance was on our stent grafts, even though we hit the top line and the bottom line and we talked about the reason for that is kind of in this inflationary period last year, we were having a hard time hiring people in our big facility in Germany, which is where we produce all of our stent grafts. We put a big initiative in place in the fourth quarter of last year, hired like 60, 70 people. Those – they were all hired in the fourth quarter and then we told you last quarter that they had to get trained in the first quarter which they’ve done, and we basically hit our production plan for the first half of the year.
The team did a great job. We’re very well-positioned. We’ve got the people in place. They’re producing and we’re set up well for the second half and going into 2024 with the team that we’ve got there. So I think that is largely behind us and the teams executed extremely well.
Frank Takkinen: Okay. That’s helpful. And maybe one, on On-X, I heard the comments on taking share, was hoping you can maybe bring us a little bit deeper on if that – if there’s another factor in there of the market just returning to normal. And there’s more market growth in that as well, but I was hoping you could kind of parse out the growth there between share taking as well as any market dynamics that are occurring.
Pat Mackin: Yes. So I think one thing that, I mean, if you saw, one of the TAVR companies reported that their surgical business grew faster than their TAVR business, which is interesting. So I do think that there is a kind of a growth overall in the market and we don’t have great market data on that. I do know that we continue to perform well in all of our regions. All of our regions have been growing double digits. I think the other thing is, whether or not that market grows, we’ve got more data coming out on our On-X valve. We’ve got a 500 patient post-approval trial that’ll be presented here shortly with excellent data. So it’s just a continuation of just pining the drum on it’s the best aortic valve in the world and we just keep taking share and we got a great sales team and they keep doing their job and as we expand internationally, we’re getting that message out as well.
So again, I think there’s a lots of room for us to continue to grow that business.
Frank Takkinen: Great. And then maybe the last one for Ashley just was hoping you could kind of parse through cash generation in the quarter, clearly a couple factors that are non-operational or not within the regular P&L related to the cash infusion as well as the cash outflow to Endospan and some cash generation in the business, but was hoping you could kind of bridge us from the $31 million last quarter to the $49 million this quarter and then help us think about cash generation through the end of the year.
Ashley Lee: Yes. So you’re right, Frank, there was a lot of noise in the second quarter. We had the payment to Endospan. We received the PMA milestone payment from Baxter. So there was a fair amount of noise in there. And we – when you back all of that out, we actually generated free cash flow of $5 million in the second quarter of this year. So we’ve been talking a lot about our focus on not only driving adjusted EBITDA higher, but a focus on generating cash as well. So we’re really pleased with where we ended up in the second quarter. I don’t think that we’re quite at the point yet where we’re ready to commit to being able to generate a positive free cash flow on an individual quarter basis and a trailing 12-month basis.
But with the trends that we’ve been seeing over the last couple of quarters we’re very encouraged about where we are and we think that we’re getting very close to the point where we will be generating free cash flow both on a quarterly basis and a trailing 12-month basis going forward.
Frank Takkinen: Perfect. I’ll stop there. Thanks for taking the questions.
Operator: [Operator Instructions] There are no further questions at this time. So that concludes our question-and-answer session. I would now like to turn the floor over to Pat Mackin, President and CEO for closing remarks.
Pat Mackin: Well, listen, thanks for joining the call this afternoon. And as you can see, we had a great quarter. We have a lot of confidence in our second half and think we’re very well-positioned going into 2024 to deliver on our double-digit growth in the top line and $75 million of adjusted EBITDA. So stay tuned and we will be back next quarter. Thanks for joining.
Operator: The conference has now concluded. Thank you for attending today’s presentation. You may now disconnect.
