Professional Documents
Culture Documents
This presentation contains forward-looking statements based on certain assumptions and contingencies that
involve risks and uncertainties. The forward-looking statements are made pursuant to the safe harbor
provisions of the Private Securities Litigation Reform Act of 1995 and relate to the Company's performance on
a going-forward basis. The forward-looking statements in this presentation involve risks and uncertainties
which could cause actual results, performance or trends, to differ materially from those expressed in the
forward-looking statements herein or in previous disclosures. In addition to general industry and economic
conditions, factors that could cause actual results to differ materially from those discussed in the forward-
looking statements in this presentation include, but are not limited to, the risk factors discussed in the
Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2017, and listed under the
heading Forward-Looking Statements in the Company’s most recently filed Form 10-Q.
Management has disclosed adjusted financial measurements in this presentation that present financial
information that is not in accordance with generally accepted accounting principles (GAAP). These adjusted
financial measures are helpful to management in comparing the recurring aspects of the business performance
without the effect of unusual, non-recurring or special revenues or costs. These measurements are not a
substitute for GAAP measurements. Investors should consider adjusted measures in addition to, and not as a
substitute for, or superior to, financial performance measures prepared in accordance with GAAP.
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What is Surgical Smoke?
*Hill DS, O’Neill JK, Powell RJ, Oliver DW. Surgical smoke—a health hazard in the operating theatre: a study to quantify exposure and a
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survey of the use of smoke extractor systems in UK plastic surgery units. J Plast Reconstr Aesthet Surg. 2012; 65(7):911-916.
Surgical Smoke Removal Market Opportunity
• There are approximately ~300M surgical procedures performed globally on an annual basis; 95% of all surgical procedures utilize energy, which produces
hazardous surgical smoke.
• Research and workplace studies conducted over long periods of time confirm that surgical smoke contains hazardous substances including respiratory irritants
and carcinogens that have been linked to asthma, and infectious agents such as human papilloma virus (HPV).
• Regulation/legislation will mandate adoption – leading to market sector growth.
• Market has seen leading regulation in the following geographies:
• Canadian smoke • Denmark: • Australia, New • Rhode Island • California has pending • Colorado and
regulation initiated in 2010 Working Zealand and the UK legislation (law to regulation through Massachusetts have
2009 and was revised Environment Act - have also enacted make OR’s smoke OSHA pending legislation
in 2013 by the mandates the regulations that free) becomes • In November
Canadian Standards removal of carry the force of law effective Jan. 2019 (Cal/OSHA) convened
Association (CSA) surgical smoke to protect surgical an advisory meeting to
• Smoke removal is now • Many Nordic workers from consider development of
the standard of care countries have surgical smoke a rulemaking proposal to
followed suit protect employees from
without regulation surgical smoke
“The Association of Operating Room Nurses (AORN), in its “2017 AORN Guideline for Surgical Smoke Safety”, recommended the following:”
• “The health care organization should provide a surgical smoke free environment.”
• “The perioperative team should evacuate all surgical smoke.”
• “The collective evidence, standards, and guidelines from The National Institute for Occupational Safety and Health (NIOSH), the Healthcare Infection Control Practices Advisory Committee,
and professional organizations indicate that evacuating surgical smoke protects patients and health care workers from the hazards of surgical smoke.”
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Buffalo Filter Product Portfolio
CORE COMPETENCIES
ü Filtration Technologies
ü Full Equipment Design and Execution
ü Design for Manufacturability
ü PC Board Development & Validation
Evacuation Pencils Smoke Evacuators
ü 85% of Revenue from Consumables
ü Compact pens provide smoke ü Advanced evacuators provide turbo
ü Flow Dynamics and Management evacuation at the surgical site suction power to capture smoke
ü Regulatory Submissions
ü Patent Filings
ü Advanced Research, Design and 3D Printing Capabilities
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Financial Summary ($ in millions)
Purchase Price $ 365
Tax Amortization Benefit 60
Tax Adjusted Purchase Price $ 305
Multiple paid on
2018 2019 Est* Next 12 Months
Revenue (net of sales to CONMED) $ 41.0 $47 to $50 6.1 to 6.5
Gross Margins in the mid-50% range Improving after the first year
EBITDA (25%) $ 10.3 $3 - $5 million in $15 to $17 17.9 to 20.3
1st year synergies
(increasing thereafter)