LeMaitre Q2 2024 Financial Results
August 01 2024 - 4:05PM
LeMaitre (Nasdaq:LMAT), a provider of vascular devices, implants
and services, today reported Q2 2024 results, announced a
$0.16/share quarterly dividend and provided guidance.
Q2 2024 Financial Results
- Sales $55.8mm, +11% (+12% organic) vs. Q2 2023
- Gross margin 68.9%, +490 bps
- Op. income $14.4mm, +52%
- Op. margin 26%
- Net income $11.8mm, +46%
- Earnings per diluted share $0.52, +44%
- Cash up $4.8mm sequentially to $113.1mm
Allografts (+30%), bovine patches (+12%) and carotid shunts
(+22%) led Q2 sales growth. APAC sales increased 20%, EMEA 13% and
the Americas 10%.
The gross margin increased to 68.9% (vs. 64.0% in Q2 2023),
driven by manufacturing efficiencies and higher average selling
prices.
Operating income of $14.4mm was up 52% vs. Q2 2023. Operating
expenses grew 6% year-over-year due to restrained headcount growth
and reduced regulatory spending. 144 sales reps were on staff at
quarter end.
Chairman/CEO George LeMaitre said, “2024 is shaping up to be
another year of healthy sales and profit growth. Increased guidance
now implies a 23% op. margin in 2024, vs. 19% in 2023.”
Business Outlook
|
Q3 2024 Guidance |
Full Year 2024 Guidance |
Sales |
$52.7mm - $54.7mm(Mid: $53.7mm, +13%, +14% Org.) |
$216.8mm - $220.8mm(Mid: $218.8mm, +13%, + 13% Org.) |
Gross Margin |
68.0% |
68.4% |
Op. Income |
$11.3mm - $12.7mm(Mid: $12.0mm, +31%) |
$49.7mm - $52.5mm(Mid $51.1mm, +39%)(Mid: $51.1mm, +37%
Ex-Special)* |
Op. Margin (Mid) |
22% |
23% |
EPS |
$0.42 - $0.46(Mid: $0.44, +32%) |
$1.82 - $1.91(Mid: $1.86, +39%)(Mid: $1.86, +37% Ex-Special)* |
*Special charges in 2023 were related to the St. Etienne factory
closure.
Quarterly Dividend
On July 25, 2024, the Company's Board of Directors approved
a quarterly dividend of $0.16/share of common stock. The
dividend will be paid on August 29, 2024, to shareholders
of record on August 15, 2024.
Share Repurchase Program
On February 21, 2024, the Company's Board of Directors
authorized the repurchase of up to $50.0mm of the Company’s common
stock. The repurchase program may be suspended or discontinued at
any time and will conclude on February 21, 2025, unless extended by
the Board.
Conference Call Reminder
Management will conduct a conference call at 5:00pm
ET today. The conference call will be broadcast live over the
Internet. Individuals interested in listening to the webcast can
log on to the Company's website at www.lemaitre.com/investor.
Access to the live call is available by registering online here.
All registrants will receive dial-in information and a PIN allowing
them to access the live call. The audio webcast can also be
accessed live or via replay through a webcast at
www.lemaitre.com/investor. For individuals unable to join the live
conference call, a replay will be available on the Company's
website.
A reconciliation of GAAP to non-GAAP results is included in the
tables attached to this release.
About LeMaitre
LeMaitre is a provider of devices, implants and services
for the treatment of peripheral vascular disease, a condition that
affects more than 200 million people worldwide. The Company
develops, manufactures and markets disposable and implantable
vascular devices to address the needs of its core customer, the
vascular surgeon.
LeMaitre is a registered trademark of LeMaitre Vascular,
Inc. This press release may include other trademarks and trade
names of the Company.
For more information about the Company, please
visit www.lemaitre.com.
Use of Non-GAAP Financial Measures
LeMaitre management believes that in order to better
understand the Company's short- and long-term financial trends,
investors may wish to consider certain non-GAAP financial measures
as a supplement to financial performance measures prepared in
accordance with GAAP. Non-GAAP financial measures are not based on
a comprehensive set of accounting rules or principles and do not
have standardized meanings. These non-GAAP measures result from
facts and circumstances that may vary in frequency and/or impact on
continuing operations. Non-GAAP measures should be considered in
addition to, and not as a substitute for, financial performance
measures in accordance with GAAP. In addition to the description
provided below, reconciliation of GAAP to non-GAAP results is
provided in the financial statement tables included in this press
release.
In this press release, the Company has reported non-GAAP sales
growth percentages after adjusting for the impact of foreign
currency exchange, business development transactions, and/or other
events, including EBITDA. This press release also provides guidance
for operating income and EPS excluding the special charge relating
to the closure of our St. Etienne factory and revenue related to
the Aziyo distribution agreement. The Company refers to the
calculation of non-GAAP sales growth percentages as "organic." The
Company analyzes non-GAAP sales on a constant currency basis, net
of acquisitions and other non-recurring events, and the
aforementioned non-GAAP profitability measures to better measure
the comparability of results between periods. Because changes in
foreign currency exchange rates have a non-operating impact on net
sales, and acquisitions, divestitures, product discontinuations,
factory closures, and other strategic transactions are episodic in
nature and are highly variable to the reported sales results, the
Company believes that evaluating growth in sales on a constant
currency basis net of such transactions provides an additional and
meaningful assessment of sales to management. The Company believes
that the presentation of guidance described above for sales,
operating income and EPS provides an alternative and meaningful
view of the Company’s profitability.
Forward-Looking Statements
The Company's current financial results, as discussed in this
release, are preliminary and unaudited, and subject to adjustment.
This press release contains forward-looking statements within the
meaning of the U.S. Private Securities Litigation Reform Act of
1995. Statements in this press release regarding the Company's
business that are not historical facts may be "forward-looking
statements" that involve risks and uncertainties. Forward-looking
statements are based on management's current, preliminary
expectations and are subject to risks and uncertainties that could
cause actual results to differ from the results expected,
including, but not limited to, companies that develop products or
services that may impact the use of our products such as drugs to
treat diabetes or weight loss; the risks from competition from
other companies; the status of our global regulatory approvals and
compliance with regulatory requirements to market and sell our
products both in the U.S. and outside of the U.S.; risks related to
product demand and market acceptance of the Company’s products and
pricing; risks from implementing a new enterprise resource planning
system; the risk of significant fluctuations in our quarterly and
annual results due to numerous factors; the risk that we may not be
able to maintain our recent levels of profitability; our reliance
on sole source suppliers; disruptions or breaches of information
technology systems; the risk that the Company may not realize the
anticipated benefits of its strategic activities; the risk that
assumptions about the market for the Company’s products and the
productivity of the Company’s direct sales force and distributors
may not be correct; the acceleration or deceleration of product
growth rates; the risk that a recall of our products could result
in significant costs or negative publicity; the risk that the
Company is not successful in transitioning to a direct-selling
model in new territories and other risks and uncertainties included
under the heading "Risk Factors" in our most recent Annual Report
on Form 10-K, as updated by our subsequent filings with
the SEC, which are all available on the Company's investor
relations website at http://www.lemaitre.com and on
the SEC's website at http://www.sec.gov. Undue
reliance should not be placed on forward-looking statements, which
speak only as of the date they are made. The Company undertakes no
obligation to update publicly any forward-looking statements to
reflect new information, events, or circumstances after the date
they were made, or to reflect the occurrence of unanticipated
events.
LEMAITRE VASCULAR, INC. (NASDAQ: LMAT) |
|
|
|
|
|
CONDENSED CONSOLIDATED BALANCE SHEETS |
|
|
|
|
(amounts in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30, 2024 |
|
December 31, 2023 |
|
|
|
|
(unaudited) |
|
|
|
Assets |
|
|
|
|
|
|
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
22,268 |
|
|
$ |
24,269 |
|
|
|
Short-term
marketable securities |
|
|
90,831 |
|
|
|
80,805 |
|
|
|
Accounts
receivable, net |
|
|
30,822 |
|
|
|
25,064 |
|
|
|
Inventory
and other deferred costs |
|
|
63,673 |
|
|
|
58,080 |
|
|
|
Prepaid
expenses and other current assets |
|
|
5,217 |
|
|
|
6,380 |
|
|
Total current assets |
|
|
212,811 |
|
|
|
194,598 |
|
|
|
|
|
|
|
|
|
Property and equipment, net |
|
|
23,117 |
|
|
|
21,754 |
|
|
Right-of-use leased assets |
|
|
17,294 |
|
|
|
18,027 |
|
|
Goodwill |
|
|
65,945 |
|
|
|
65,945 |
|
|
Other intangibles, net |
|
|
38,767 |
|
|
|
41,711 |
|
|
Deferred tax assets |
|
|
1,028 |
|
|
|
1,003 |
|
|
Other assets |
|
|
4,117 |
|
|
|
3,740 |
|
|
|
|
|
|
|
|
|
Total assets |
|
$ |
363,079 |
|
|
$ |
346,778 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and stockholders' equity |
|
|
|
|
|
|
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
Accounts
payable |
|
$ |
1,995 |
|
|
$ |
3,734 |
|
|
|
Accrued
expenses |
|
|
20,785 |
|
|
|
23,650 |
|
|
|
Acquisition-related obligations |
|
|
75 |
|
|
|
24 |
|
|
|
Lease
liabilities - short-term |
|
|
2,591 |
|
|
|
2,471 |
|
|
Total current liabilities |
|
|
25,446 |
|
|
|
29,879 |
|
|
|
|
|
|
|
|
|
Lease liabilities - long-term |
|
|
15,818 |
|
|
|
16,624 |
|
|
Deferred tax liabilities |
|
|
104 |
|
|
|
107 |
|
|
Other long-term liabilities |
|
|
2,179 |
|
|
|
2,268 |
|
|
Total liabilities |
|
|
43,547 |
|
|
|
48,878 |
|
|
|
|
|
|
|
|
|
Stockholders' equity |
|
|
|
|
|
|
Common
stock |
|
|
240 |
|
|
|
239 |
|
|
|
Additional
paid-in capital |
|
|
208,689 |
|
|
|
200,755 |
|
|
|
Retained
earnings |
|
|
129,961 |
|
|
|
115,430 |
|
|
|
Accumulated
other comprehensive loss |
|
|
(5,094 |
) |
|
|
(4,625 |
) |
|
|
Treasury
stock |
|
|
(14,264 |
) |
|
|
(13,899 |
) |
|
Total stockholders' equity |
|
|
319,532 |
|
|
|
297,900 |
|
|
|
|
|
|
|
|
|
Total liabilities and stockholders' equity |
|
$ |
363,079 |
|
|
$ |
346,778 |
|
|
|
|
|
|
|
|
|
LEMAITRE VASCULAR, INC. (NASDAQ: LMAT) |
|
|
|
|
|
|
CONDENSED CONSOLIDATED STATEMENT OF
OPERATIONS |
|
|
|
|
(amounts in thousands, except per share amounts) |
|
|
|
|
|
|
|
(unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the three months ended |
|
For the six months ended |
|
|
June 30, 2024 |
|
June 30, 2023 |
|
June 30, 2024 |
|
June 30, 2023 |
|
|
|
|
|
|
|
|
|
Net sales |
$ |
55,849 |
|
|
$ |
50,115 |
|
$ |
109,327 |
|
|
$ |
97,190 |
|
Cost of sales |
|
17,381 |
|
|
|
18,029 |
|
|
34,194 |
|
|
|
34,221 |
|
|
|
|
|
|
|
|
|
|
Gross profit |
|
38,468 |
|
|
|
32,086 |
|
|
75,133 |
|
|
|
62,969 |
|
|
|
|
|
|
|
|
|
|
Operating expenses: |
|
|
|
|
|
|
|
|
Sales and marketing |
|
10,984 |
|
|
|
10,216 |
|
|
22,670 |
|
|
|
21,113 |
|
|
General and
administrative |
|
8,820 |
|
|
|
7,722 |
|
|
17,833 |
|
|
|
15,654 |
|
|
Research and
development |
|
4,284 |
|
|
|
4,516 |
|
|
8,376 |
|
|
|
8,391 |
|
|
Restructuring |
|
- |
|
|
|
180 |
|
|
- |
|
|
|
485 |
|
Total operating expenses |
|
24,088 |
|
|
|
22,634 |
|
|
48,879 |
|
|
|
45,643 |
|
|
|
|
|
|
|
|
|
|
Income from operations |
|
14,380 |
|
|
|
9,452 |
|
|
26,254 |
|
|
|
17,326 |
|
|
|
|
|
|
|
|
|
|
Other income (expense): |
|
|
|
|
|
|
|
|
Interest
income |
|
1,137 |
|
|
|
682 |
|
|
2,138 |
|
|
|
1,250 |
|
|
Foreign
currency gain (loss) |
|
(11 |
) |
|
|
185 |
|
|
(89 |
) |
|
|
(240 |
) |
|
|
|
|
|
|
|
|
|
Income before income taxes |
|
15,506 |
|
|
|
10,319 |
|
|
28,303 |
|
|
|
18,336 |
|
|
|
|
|
|
|
|
|
|
Provision for income taxes |
|
3,680 |
|
|
|
2,221 |
|
|
6,590 |
|
|
|
4,198 |
|
|
|
|
|
|
|
|
|
|
Net income |
$ |
11,826 |
|
|
$ |
8,098 |
|
$ |
21,713 |
|
|
$ |
14,138 |
|
|
|
|
|
|
|
|
|
|
Earnings per share of common stock |
|
|
|
|
|
|
|
|
Basic |
$ |
0.53 |
|
|
$ |
0.36 |
|
$ |
0.97 |
|
|
$ |
0.64 |
|
|
Diluted |
$ |
0.52 |
|
|
$ |
0.36 |
|
$ |
0.96 |
|
|
$ |
0.63 |
|
|
|
|
|
|
|
|
|
|
Weighted - average shares outstanding: |
|
|
|
|
|
|
|
|
Basic |
|
22,458 |
|
|
|
22,213 |
|
|
22,412 |
|
|
|
22,162 |
|
|
Diluted |
|
22,725 |
|
|
|
22,451 |
|
|
22,657 |
|
|
|
22,371 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash dividends declared per common share |
$ |
0.16 |
|
|
$ |
0.14 |
|
$ |
0.32 |
|
|
$ |
0.28 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LEMAITRE VASCULAR, INC. (NASDAQ: LMAT) |
|
|
|
|
|
|
|
|
|
|
|
|
SELECTED NET SALES INFORMATION |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(amounts in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the three months ended |
|
For the six months ended |
|
|
June 30, 2024 |
|
June 30, 2023 |
|
June 30, 2024 |
|
June 30, 2023 |
|
|
$ |
|
% |
|
$ |
|
% |
|
$ |
|
% |
|
$ |
|
% |
Net Sales by Geography |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Americas |
$ |
36,907 |
|
66 |
% |
|
$ |
33,507 |
|
67 |
% |
|
$ |
72,152 |
|
66 |
% |
|
$ |
65,633 |
|
67 |
% |
|
Europe,
Middle East and Africa |
|
15,298 |
|
27 |
% |
|
|
13,580 |
|
27 |
% |
|
|
29,693 |
|
27 |
% |
|
|
25,857 |
|
27 |
% |
|
Asia
Pacific |
|
3,644 |
|
7 |
% |
|
|
3,028 |
|
6 |
% |
|
|
7,482 |
|
7 |
% |
|
|
5,700 |
|
6 |
% |
Total Net Sales |
$ |
55,849 |
|
100 |
% |
|
$ |
50,115 |
|
100 |
% |
|
$ |
109,327 |
|
100 |
% |
|
$ |
97,190 |
|
100 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LEMAITRE VASCULAR, INC. (NASDAQ: LMAT) |
|
|
|
|
|
|
|
|
|
NON-GAAP FINANCIAL MEASURES |
|
|
|
|
|
|
|
|
|
(amounts in thousands) |
|
|
|
|
|
|
|
|
|
(unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the three months ended |
|
For the six months ended |
|
|
|
|
|
June 30, 2024 |
|
June 30, 2023 |
|
June 30, 2024 |
|
June 30, 2023 |
|
Reconciliation between GAAP and Non-GAAP EBITDA |
|
|
|
|
|
|
|
|
|
|
Net income as reported |
|
$ |
11,826 |
|
|
$ |
8,098 |
|
|
$ |
21,713 |
|
|
$ |
14,138 |
|
|
|
Interest income |
|
|
(1,137 |
) |
|
|
(682 |
) |
|
|
(2,138 |
) |
|
|
(1,250 |
) |
|
|
Amortization and depreciation expense |
|
|
2,384 |
|
|
|
2,326 |
|
|
|
4,766 |
|
|
|
4,677 |
|
|
|
Provision for income taxes |
|
|
3,680 |
|
|
|
2,221 |
|
|
|
6,590 |
|
|
|
4,198 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA |
|
$ |
16,753 |
|
|
$ |
11,963 |
|
|
$ |
30,931 |
|
|
$ |
21,763 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA percentage increase |
|
|
|
|
40 |
% |
|
|
|
|
42 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LEMAITRE VASCULAR, INC. (NASDAQ: LMAT) |
|
|
|
|
|
|
|
NON-GAAP FINANCIAL MEASURES |
|
|
|
|
|
|
|
(amounts in thousands) |
|
|
|
|
|
|
|
(unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation between GAAP and Non-GAAP sales growth: |
|
|
|
|
|
|
|
|
For the three months ended June 30, 2024 |
|
|
|
|
|
|
|
|
|
Net sales as reported |
|
$ |
55,849 |
|
|
|
|
|
|
|
|
Net
distribution sales (non-organic) |
|
|
(348 |
) |
|
|
|
|
|
|
|
Impact of
currency exchange rate fluctuations |
|
|
394 |
|
|
|
|
|
|
|
|
Adjusted net sales |
|
|
|
$ |
55,895 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the three months ended June 30, 2023 |
|
|
|
|
|
|
|
|
|
Net sales as
reported |
|
$ |
50,115 |
|
|
|
|
|
|
|
|
Adjusted net sales |
|
|
|
$ |
50,115 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted net sales increase for the three months ended June 30,
2024 |
|
|
$ |
5,780 |
|
12% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation between GAAP and Non-GAAP projected sales
growth: |
|
|
|
|
|
|
|
|
For the three months ending September 30, 2024 |
|
|
|
|
|
|
|
|
|
Net sales
per guidance (midpoint) |
|
$ |
53,710 |
|
|
|
|
|
|
|
|
Impact of
currency exchange rate fluctuations |
|
|
238 |
|
|
|
|
|
|
|
|
Adjusted projected net sales |
|
|
|
$ |
53,948 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the three months ended September 30, 2023 |
|
|
|
|
|
|
|
|
|
Net sales as
reported |
|
$ |
47,411 |
|
|
|
|
|
|
|
|
Adjusted net sales |
|
|
|
$ |
47,411 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted projected net sales increase for the three months ending
September 30, 2024 |
|
$ |
6,537 |
|
14% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation between GAAP and Non-GAAP projected sales
growth: |
|
|
|
|
|
|
|
|
For the year ending December 31, 2024 |
|
|
|
|
|
|
|
|
|
Net sales
per guidance (midpoint) |
|
$ |
218,847 |
|
|
|
|
|
|
|
|
Net
distribution sales (non-organic) |
|
|
(1,612 |
) |
|
|
|
|
|
|
|
Impact of
currency exchange rate fluctuations |
|
|
450 |
|
|
|
|
|
|
|
|
Adjusted projected net sales |
|
|
|
$ |
217,685 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the year ended December 31, 2023 |
|
|
|
|
|
|
|
|
|
Net sales as
reported |
|
$ |
193,484 |
|
|
|
|
|
|
|
|
Adjusted net sales |
|
|
|
$ |
193,484 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted projected net sales increase for the year ending December
31, 2024 |
|
$ |
24,201 |
|
13% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation between GAAP and Non-GAAP projected operating
income: |
|
|
|
|
|
|
|
For the year ending December 31, 2024 |
|
|
|
|
|
|
|
|
|
Operating
income per guidance (midpoint) |
|
$ |
51,096 |
|
|
|
|
|
|
|
|
Adjusted projected operating income |
|
|
|
$ |
51,096 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the year ended December 31, 2023 |
|
|
|
|
|
|
|
|
|
Operating
income as reported |
|
$ |
36,712 |
|
|
|
|
|
|
|
|
Impact of
special charge |
|
|
485 |
|
|
|
|
|
|
|
|
Adjusted operating income |
|
|
|
$ |
37,197 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted projected operating income increase for the year ending
December 31, 2024 |
|
$ |
13,899 |
|
37% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation between GAAP and Non-GAAP projected EPS: |
|
|
|
|
|
|
|
|
For the year ending December 31, 2024 |
|
|
|
|
|
|
|
|
|
EPS per
guidance (midpoint) |
|
$ |
1.86 |
|
|
|
|
|
|
|
|
Adjusted EPS |
|
|
|
$ |
1.86 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the year ended December 31, 2023 |
|
|
|
|
|
|
|
|
|
EPS as
reported |
|
$ |
1.34 |
|
|
|
|
|
|
|
|
Impact of
special charge |
|
|
0.02 |
|
|
|
|
|
|
|
|
Adjusted EPS |
|
|
|
$ |
1.36 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted projected EPS increase for the year ending December 31,
2024 |
|
$ |
0.50 |
|
37% |
|
|
|
|
|
|
|
|
|
|
|
CONTACT:
J.J. Pellegrino, CFO, LeMaitre
781-425-1691
jjpellegrino@lemaitre.com
LeMaitre Vascular (NASDAQ:LMAT)
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LeMaitre Vascular (NASDAQ:LMAT)
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