Avanos Medical Inc (AVNS) 2022 Q4 法說會逐字稿

Good day, and welcome to the Avanos Fourth Quarter 2022 Earnings Conference Call. (Operator Instructions) Please note this event is being recorded. I would now like to turn the conference over to Scott Galovan, Senior Vice President, Strategy and M&A. Please go ahead.

美好的一天，歡迎來到 Avanos 2022 年第四季度收益電話會議。 （操作員說明）請注意正在記錄此事件。我現在想將會議轉交給戰略與併購高級副總裁 Scott Galovan。請繼續。

Good morning, everyone, and thanks for joining us. It's my pleasure to welcome you to Avanos 2022 Fourth Quarter and Full Year Earnings Conference Call. Presenting today will be Joe Woody, CEO; and Michael Greiner, Senior Vice President, CFO and Chief Transformation Officer.

大家早上好，感謝您加入我們。很高興歡迎您參加 Avanos 2022 年第四季度和全年收益電話會議。今天出席的將是首席執行官 Joe Woody； Michael Greiner，高級副總裁、首席財務官兼首席轉型官。

Joe will review our quarter in the current business environment and provide an assessment of our execution against our key objectives for 2022. Then Michael will discuss additional detail regarding our fourth quarter and full year and share our 2023 planning assumptions.

Joe 將在當前的商業環境中回顧我們的季度，並根據我們 2022 年的主要目標評估我們的執行情況。然後 Michael 將討論有關我們第四季度和全年的更多細節，並分享我們的 2023 年規劃假設。

We will finish the call with Q&A. A presentation for today's call is available on the Investors section of our website, avanos.com. As a reminder, our comments today contain forward-looking statements related to the company, our expected performance, current economic conditions and our industry.

我們將通過問答結束通話。我們網站 avanos.com 的投資者部分提供了今天電話會議的演示文稿。提醒一下，我們今天的評論包含與公司、我們的預期業績、當前經濟狀況和我們行業相關的前瞻性陳述。

No assurance can be given as to future financial results. Actual results could differ materially from those in the forward-looking statements. For more information about forward-looking statements and the risk factors that could influence future results, please see today's press release and risk factors described in our filings with the SEC.

無法保證未來的財務結果。實際結果可能與前瞻性陳述中的結果存在重大差異。有關前瞻性陳述和可能影響未來結果的風險因素的更多信息，請參閱今天的新聞稿和我們向美國證券交易委員會提交的文件中描述的風險因素。

Additionally, we will be referring to adjusted results and outlook. The press release has information on these adjustments and reconciliations to comparable GAAP financial measures. Now I'll turn the call over to Joe.

此外，我們將參考調整後的結果和前景。新聞稿包含有關這些調整和與可比較的 GAAP 財務措施的對賬信息。現在我會把電話轉給喬。

Thanks, Scott. Good morning, everyone, and thank you for joining us to review our operational and financial results for the fourth quarter and full year 2022.

謝謝，斯科特。大家早上好，感謝您加入我們，回顧我們 2022 年第四季度和全年的運營和財務業績。

We are very pleased with our fourth quarter results, which is built on solid execution from both our operational and commercial teams during the first 9 months of 2022. Although the macro environment remained disruptive and dynamic, we focused on what we could control and manage.

我們對第四季度的業績感到非常滿意，這是建立在我們的運營和商業團隊在 2022 年前 9 個月的穩健執行之上的。儘管宏觀環境仍然具有破壞性和動態性，但我們專注於我們可以控制和管理的事情。

The demand for our products remained strong. And although supply chain disruptions persisted, we executed well, mitigating impacts to our financial results. We anticipate 2023 will continue to present supply chain headwinds, cost pressures and pockets of product availability challenges.

對我們產品的需求依然強勁。儘管供應鏈中斷持續存在，但我們執行良好，減輕了對我們財務業績的影響。我們預計 2023 年將繼續出現供應鏈逆風、成本壓力和產品可用性挑戰。

As always, our primary focus is on getting patients back to the things that matter as we meet the needs of our customers. For the quarter, we achieved sales of $217 million, representing over 14% total growth and 4.7% organic growth, both excluding the negative impact of foreign exchange.

一如既往，我們的主要重點是讓患者回到重要的事情上，因為我們滿足了客戶的需求。本季度，我們實現了 2.17 億美元的銷售額，總增長率超過 14%，有機增長率超過 4.7%，均不包括外彙的負面影響。

We generated $0.60 of adjusted diluted earnings per share and $29 million of free cash flow. For the full year, we grew 12%, including the impact of our acquisition of OrthogenRx, and delivered adjusted diluted earnings per share of $1.65.

我們產生了 0.60 美元的調整後攤薄每股收益和 2900 萬美元的自由現金流。全年，我們增長了 12%，包括收購 OrthogenRx 的影響，調整後的攤薄每股收益為 1.65 美元。

Additionally, our gross margin for the year was 56.8%, a 450 basis point improvement versus the prior year. And we ended the year with a leverage ratio of under 1x. These results position us to confidently execute against the transformation priorities we laid out at the JPMorgan conference in January.

此外，我們今年的毛利率為 56.8%，比上一年提高了 450 個基點。我們以低於 1 倍的槓桿率結束了這一年。這些結果使我們能夠自信地執行我們在 1 月份的摩根大通會議上製定的轉型重點。

Michael and I will address these priorities a bit later in the presentation. Now I'll spend the next few minutes discussing our results and at the product category level. On a constant currency basis, our adjusted portfolio again grew by double digits, topping 10% with NeoMed growing nearly 40%.

Michael 和我稍後將在演講中討論這些優先事項。現在我將在接下來的幾分鐘內討論我們的結果和產品類別級別。按固定匯率計算，我們調整後的投資組合再次實現兩位數增長，增幅超過 10%，其中 NeoMed 增長近 40%。

The positive trends across our Digestive Health franchise continued as second half supply improvements allowed us to maximize North American in-fit conversions. Our legacy enteral feeding product line maintained its global mid-single-digit growth with robust double-digit year-over-year growth in North America as supply constraints alleviated in the latter part of the fourth quarter.

隨著下半年供應的改善使我們能夠最大限度地提高北美的合身轉化率，我們消化健康特許經營權的積極趨勢仍在繼續。我們傳統的腸內餵養產品線保持了全球中等個位數的增長，隨著第四季度後半段供應限制的緩解，北美地區實現了強勁的兩位數同比增長。

Even though our respiratory business declined by 4% overall, our closed suction catheters grew over 8% versus the prior year. As we noted in our third quarter call, we experienced improved ordering patterns for our closed suction catheter systems throughout the fourth quarter, specifically due to trends with pediatric viral cases like RSV and the early flu season uptick. In total, our Chronic Care business grew just under 6% in the fourth quarter and 2.6% for the full year, excluding the negative impact of foreign exchange.

儘管我們的呼吸業務總體下降了 4%，但我們的封閉式吸引導管與上一年相比增長了 8% 以上。正如我們在第三季度的電話會議中指出的那樣，在整個第四季度，我們的封閉式抽吸導管系統的訂購模式有所改善，特別是由於 RSV 等兒科病毒病例的趨勢和早期流感季節的上升。總體而言，我們的長期護理業務在第四季度增長略低於 6%，全年增長 2.6%，不包括外彙的負面影響。

Turning to the pain portfolio. For the quarter, we experienced low single-digit growth in acute pain, coupled with mid-single-digit growth in our interventional pain compared to the prior year.

轉向痛苦組合。本季度，我們在急性疼痛方面經歷了較低的個位數增長，與去年同期相比，我們在介入治療方面的疼痛經歷了中等個位數增長。

The demand for our products and solutions remains strong as evidenced by the double-digit growth in both Game Ready and COOLIEF sales during the quarter. As anticipated, we continue to experience supply headwinds, particularly within our surgical pay category, and we expect these headwinds to remain a factor throughout the first part of 2023.

本季度 Game Ready 和 COOLIEF 銷售額的兩位數增長證明了對我們產品和解決方案的需求依然強勁。正如預期的那樣，我們繼續經歷供應逆風，特別是在我們的外科手術薪酬類別中，我們預計這些逆風將在 2023 年上半年仍然是一個因素。

Despite some of the ongoing pressures brought about by supply chain challenges as well as hospital staff shortages that have kept elective procedure levels reduced, our team's resilience has ensured that our pain solutions are available to meet the needs of our customers.

儘管供應鏈挑戰以及醫院人員短缺帶來了一些持續的壓力，導致選擇性程序水平降低，但我們團隊的應變能力確保了我們的疼痛解決方案可以滿足客戶的需求。

Separately, OrthogenRx exceeded expectations in 2022 by delivering on our key marketing strategies. OrthogenRx's unique patient access program, coupled with a relentless focus on service and support allowed us to expand our folio to self-pay patients and differentiate our brands to providers.

另外，OrthogenRx 通過實施我們的關鍵營銷策略在 2022 年超出了預期。 OrthogenRx 獨特的患者訪問計劃，加上對服務和支持的不懈關注，使我們能夠將我們的產品組合擴展到自費患者，並將我們的品牌與供應商區分開來。

In parallel, our strategic pricing initiatives drove a favorable allowable of the 3 injection product and maintain 5 injection customers within the company's portfolio. In 2023, we will expand our innovative OrthogenRx patient access program for our 5 injection customers to address the growing self-pay market.

與此同時，我們的戰略定價舉措推動了 3 種注射劑產品的有利許可，並在公司的產品組合中維持了 5 種注射劑客戶。 2023 年，我們將為我們的 5 家注射客戶擴大創新的 OrthogenRx 患者訪問計劃，以應對不斷增長的自費市場。

We also expect steady increases with the 3 injection self-pay program. There will be continued reimbursement volatility in 2023 and pricing discipline and accurate average sales price or ASP reporting will be a focus for OrthogenRx to deliver stability for our customers.

我們還預計 3 次注射自費計劃將穩步增長。 2023 年報銷將持續波動，定價紀律和準確的平均銷售價格或 ASP 報告將成為 OrthogenRx 為我們的客戶提供穩定性的重點。

In total, our Pain Management business grew 2.6% in the fourth quarter and 2% for the full year, excluding the negative impacts of foreign exchange and contributions from our OrthogenRx acquisition. We continue to deliver on both our gross margin and SG&A commitments during the fourth quarter. Gross margin was 55.6% in the fourth quarter and 56.8% for the full year, driven by favorable product mix, inclusive of OrthogenRx and our plants continuing to incrementally deliver on the manufacturing efficiency strategy we set forth at the end of last year.

總體而言，我們的疼痛管理業務在第四季度增長了 2.6%，全年增長了 2%，其中不包括外彙的負面影響和收購 OrthogenRx 的貢獻。我們在第四季度繼續兌現我們的毛利率和 SG&A 承諾。第四季度毛利率為 55.6%，全年毛利率為 56.8%，這得益於有利的產品組合，包括 OrthogenRx 和我們的工廠繼續逐步實施我們在去年年底制定的製造效率戰略。

Separately, we ended the year with back orders around $8 million. slightly higher than we anticipated coming out of the third quarter. Additionally, current back orders have increased to just under $10 million, and we're cautiously optimistic that we can meaningfully reduce our back order throughout 2023.

另外，我們年底的延期交貨訂單約為 800 萬美元。略高於我們對第三季度的預期。此外，當前的延期交貨訂單已增加到略低於 1000 萬美元，我們對我們可以在整個 2023 年顯著減少延期交貨訂單持謹慎樂觀態度。

Turning to SG&A. Our fourth quarter and full year SG&A numbers as a percentage of revenue were 34.2% and 38.9%, respectively, exceeding our commitment to keep SG&A as a percentage of revenue under 40% for the full year. We remain committed to this financial metric as we enter 2023, and Michael will provide additional insight when he discusses our 2023 planning assumptions.

轉向 SG&A。我們第四季度和全年的 SG&A 數字佔收入的百分比分別為 34.2% 和 38.9%，超出了我們將全年 SG&A 佔收入的百分比保持在 40% 以下的承諾。進入 2023 年，我們將繼續致力於這一財務指標，邁克爾將在討論我們的 2023 年規劃假設時提供更多見解。

Our final 2 priorities for 2022 were to demonstrate our ability to deliver consistent repeatable free cash flow and capital deployment via M&A. For the fourth quarter, we generated $29 million of free cash flow despite continued inventory and supply chain headwinds.

我們 2022 年的最後 2 個優先事項是證明我們有能力通過併購提供一致的可重複自由現金流和資本配置。第四季度，儘管庫存和供應鏈逆風持續，我們仍產生了 2900 萬美元的自由現金流。

Our ability to consistently deliver free cash flow is critical to support our other strategic growth and capital allocation initiatives and has been identified in our priorities for 2023 and beyond. While we are disappointed, we have been unable to announce another acquisition since OrthogenRx in early 2022, we remain engaged in active dialogue with a number of potential tuck-in targets with the objective of bridging our existing commercial infrastructure, generating synergies and enhancing our top line growth.

我們持續提供自由現金流的能力對於支持我們的其他戰略增長和資本配置計劃至關重要，並且已被確定為我們 2023 年及以後的優先事項。儘管我們感到失望，但自 2022 年初 OrthogenRx 以來，我們一直無法宣布另一項收購，但我們仍在與許多潛在收購目標進行積極對話，以期彌合我們現有的商業基礎設施、產生協同效應並增強我們的頂級產品線增長。

We have been disciplined in our approach around strategic fit evaluation and due diligence and believe that discipline is critical for long-term ROIC enhancement. On top of the early success of OrthogenRx, it is worth noting that our most recent acquisitions of NeoMed, Game Ready and Summit Medical, our ambIT device, averaged double-digit growth in 2022.

我們在戰略契合度評估和盡職調查方面一直遵守紀律，並相信紀律對於長期提高 ROIC 至關重要。除了 OrthogenRx 的早期成功之外，值得注意的是，我們最近收購的 NeoMed、Game Ready 和我們的 ambIT 設備 Summit Medical 在 2022 年平均實現了兩位數的增長。

Quickly summarizing 2022. Our primary objectives were centered around consistent organic growth. delivering on our ortho generic strategy, making meaningful improvements in our gross margin profile and demonstrating our ability to deliver material free cash flow.

快速總結 2022 年。我們的主要目標圍繞持續的有機增長。實施我們的正交仿製藥戰略，對我們的毛利率狀況進行有意義的改善，並展示我們提供物質自由現金流的能力。

With organic growth in the middle of our range, excluding the unusual impacts of FX, OrthogenRx exceeded our internal expectations. Gross margin improved by 450 basis points. We delivered free cash flow of $72 million or approximately $50 million greater than last year's free cash flow, excluding the CARES Act refunds, we solidly delivered against our primary objectives, which, as noted earlier, effectively laid the groundwork for our longer-term transformation efforts.

OrthogenRx 的有機增長處於我們範圍的中間，不包括 FX 的異常影響，超出了我們的內部預期。毛利率提高了 450 個基點。我們交付了 7200 萬美元的自由現金流，比去年的自由現金流多出約 5000 萬美元，不包括 CARES 法案退款，我們堅定地實現了我們的主要目標，如前所述，這有效地為我們的長期轉型奠定了基礎努力。

We outlined these transformation efforts in our JPMorgan presentation in January. In that presentation, I described 4 key priorities over the next 3 years that would optimize our go-to-market opportunities and substantially enhance our financial profile. These priorities include strategically and commercially optimizing our organization, transforming our portfolio to focus on categories where we have attractive margin profiles and the right to win taking additional cost management measures to enhance operating profitability and continuing our path of efficient capital allocation to meaningfully improve our ROIC.

我們在 1 月份的摩根大通演講中概述了這些轉型工作。在那次演講中，我描述了未來 3 年的 4 個關鍵優先事項，這些優先事項將優化我們的上市機會並顯著改善我們的財務狀況。這些優先事項包括在戰略和商業上優化我們的組織，將我們的投資組合轉變為專注於我們具有有吸引力的利潤率和獲勝權利的類別，採取額外的成本管理措施來提高運營盈利能力，並繼續我們有效的資本配置路徑以有意義地提高我們的 ROIC .

Now I'll turn the call over to Michael, who will help lead these efforts in his expanded role as Chief Transformation Officer and will elaborate on both the near and longer-term goals of these efforts.

現在我將把電話轉給邁克爾，他將在擔任首席轉型官的擴大職責後幫助領導這些工作，並將詳細說明這些工作的近期和長期目標。

Thanks, Joe. As you noted, we are very excited to embark on our transformation journey and believe our execution over the past 18 months has created a solid foundation to build upon.

謝謝，喬。正如您所指出的，我們很高興踏上我們的轉型之旅，並相信我們在過去 18 個月的執行為我們奠定了堅實的基礎。

Before diving deeper into these transformation efforts, I'll provide additional color to our fourth quarter and full year results. Total reported sales for the fourth quarter and full year were $217 million and $820 million, increases of 12.4% and 10.1%, respectively.

在深入研究這些轉型工作之前，我將為我們的第四季度和全年業績提供額外的色彩。第四季度和全年報告的總銷售額為 2.17 億美元和 8.2 億美元，分別增長 12.4% 和 10.1%。

Adjusted diluted EPS for the quarter was $0.60 and $1.65 for the full year. Additionally, as Joe already noted, we delivered on both our gross margin and SG&A as a percentage of revenue commitments, with full year gross margin at 56.8% and SG&A as a percentage of revenue for the full year at 38.9%.

本季度調整後的攤薄每股收益為 0.60 美元，全年為 1.65 美元。此外，正如喬已經指出的那樣，我們實現了毛利率和 SG&A 佔收入承諾的百分比，全年毛利率為 56.8%，SG&A 佔全年收入的百分比為 38.9%。

We also successfully executed on our OrthogenRx strategy during the year and generated over $70 million of free cash flow, ending the year with $128 million of cash on hand and a leverage ratio of less than 1. Excluding the negative impact of foreign exchange, Chronic Care sales grew by almost 6% for the quarter, with Digestive Health growing over 10% and our closed suction catheter systems growth exceeding 8%.

年內我們還成功執行了我們的 OrthogenRx 戰略，產生了超過 7000 萬美元的自由現金流，年底手頭現金為 1.28 億美元，槓桿率低於 1。不包括外彙的負面影響，Chronic Care本季度銷售額增長近 6%，其中消化健康增長超過 10%，我們的封閉式抽吸導管系統增長超過 8%。

Within our Digested Health portfolio, NeoMed grew nearly 40% globally, again fueled by strong execution of customer conversions to our ENFit technology. Although our closed suction catheter business should return to healthy growth. As we noted what happened during our third quarter conference call, our oral care sales were down almost 27% as we intentionally walked away from contracts with unattractive margin profiles.

在我們的 Digested Health 產品組合中，NeoMed 在全球範圍內增長了近 40%，這再次得益於客戶向我們的 ENFit 技術的強勁轉換。雖然我們封閉式吸引導管業務應該會恢復健康增長。正如我們在第三季度電話會議上註意到的那樣，我們的口腔護理銷售額下降了近 27%，因為我們有意放棄了利潤率不佳的合同。

Within Pain Management, we grew 2.6% for the quarter, excluding the contribution of OrthogenRx and the negative impact of foreign exchange. Our Interventional Pain business grew 6% with our Acute Pain products growing a little under 1%. As Joe summarized earlier, we had another solid revenue quarter and overall positive financial contributions from OrthogenRx. Game Ready and our COOLIEF water cooled RF system both grew double digits for the quarter, partially offset by a decline in our Surgical Pain products.

在 Pain Management 中，我們本季度增長了 2.6%，不包括 OrthogenRx 的貢獻和外彙的負面影響。我們的介入性疼痛業務增長了 6%，而我們的急性疼痛產品增長略低於 1%。正如喬之前總結的那樣，我們有另一個穩定的收入季度和 OrthogenRx 的整體積極財務貢獻。 Game Ready 和我們的 COOLIEF 水冷射頻系統在本季度均增長了兩位數，部分被我們的手術止痛產品的下滑所抵消。

Adjusted EBITDA totaled $45 million compared to $33 million last year, and adjusted net income totaled $28 million compared to $24 million a year ago. translating to $0.60 of adjusted diluted earnings per share versus $0.50 a year ago.

調整後的 EBITDA 總計為 4500 萬美元，而去年為 3300 萬美元；調整後的淨收入總計為 2800 萬美元，而去年同期為 2400 萬美元。轉換為 0.60 美元的調整後攤薄每股收益，而一年前為 0.50 美元。

In summary, 2022 was a strong year for the company. With adjusted gross margin improving 450 basis points compared to last year, while adjusted EBITDA margin exceeded 20% in the fourth quarter. Additionally, we delivered on our internal EBITDA operating profit and adjusted diluted EPS targets while further strengthening our balance sheet even after allocating over $170 million towards M&A and share repurchases.

總而言之，2022 年對公司來說是強勁的一年。調整後的毛利率比去年提高了 450 個基點，而調整後的 EBITDA 利潤率在第四季度超過了 20%。此外，我們實現了內部 EBITDA 營業利潤並調整了攤薄後每股收益目標，同時進一步加強了我們的資產負債表，即使在為併購和股票回購分配了超過 1.7 億美元之後也是如此。

As Joe noted earlier, our recent execution has positioned us to embark on the transformation efforts we outlined at the JPMorgan conference. Our transformation priorities are designed to shift our product portfolio over time into a higher growth portfolio, leveraging our cornerstone product families in digestive health and interventional pain.

正如喬之前指出的那樣，我們最近的執行使我們能夠著手進行我們在摩根大通會議上概述的轉型工作。我們的轉型重點旨在隨著時間的推移將我們的產品組合轉變為更高增長的產品組合，利用我們在消化健康和介入性疼痛方面的基石產品系列。

Additionally, these priorities are aimed at rightsizing our cost structure and enhancing our operating profitability with EBITDA margins ultimately exceeding 22% while generating annual free cash flow of $100 million. Our 3-year transformation assumes primarily organic efforts that we have visibility against and strategies that are in our control.

此外，這些優先事項旨在調整我們的成本結構並提高我們的運營盈利能力，使 EBITDA 利潤率最終超過 22%，同時產生 1 億美元的年度自由現金流。我們的 3 年轉型主要假設我們有可見性的有機努力和我們控制的戰略。

While still early, we have made some impactful decisions already, including leadership changes. Kerr Holbrook was promoted to Chief Commercial Officer, leading our combined Chronic Care and Pain franchises with a focus on realizing efficiencies and synergies within our commercial teams.

雖然還早，但我們已經做出了一些有影響力的決定，包括領導層變動。 Kerr Holbrook 被提升為首席商務官，領導我們合併的慢性病護理和疼痛特許經營權，重點是在我們的商業團隊中實現效率和協同效應。

Additionally, my role was expanded to include senior leadership oversight over this critical initiative through the transformation management office. We also announced that internationally, we would cease selling certain products in our Acute Pain category and smaller product categories with insufficient profitability.

此外，我的職責擴大到包括高級領導通過轉型管理辦公室監督這一關鍵舉措。我們還宣布，在國際上，我們將停止銷售急性疼痛類別中的某些產品和盈利能力不足的較小產品類別。

As noted earlier, we have also walked away from customer contracts with low margin as we exited 2022. While these strategic decisions will result in an annualized revenue loss of approximately $35 million, we were not set up to win or grow profitably in these markets or categories over the long run.

如前所述，在我們退出 2022 年時，我們也放棄了低利潤率的客戶合同。雖然這些戰略決策將導致年化收入損失約 3500 萬美元，但我們並沒有打算在這些市場或從長遠來看類別。

Our cost savings initiatives will primarily offset stranded costs associated with these product categories. In total, we expect to realize approximately $10 million of savings in 2023, anticipate $45 million to $55 million of gross cost savings by 2025, of most of which will be achieved in 2024.

我們的成本節約計劃將主要抵消與這些產品類別相關的擱淺成本。總體而言，我們預計到 2023 年將節省約 1000 萬美元，預計到 2025 年將節省 4500 萬至 5500 萬美元的總成本，其中大部分將在 2024 年實現。

We will present a refined view of our transformation program at our Investor Day on June 20 to be held at the Convene 101 Park Avenue location in New York City. Although 2023 will be an uneven transition year, given the product portfolio rationalization and cost management initiatives, we anticipate improving our operating and EBITDA margins by at least 100 basis points.

我們將在 6 月 20 日於紐約市公園大道會議中心 101 號舉行的投資者日上展示我們轉型計劃的精緻視圖。儘管 2023 年將是一個不平衡的過渡年，但鑑於產品組合合理化和成本管理舉措，我們預計我們的運營和 EBITDA 利潤率將至少提高 100 個基點。

Separately, we expect to earn between $1.60 and $1.80 of adjusted diluted earnings per share for 2023, while delivering at least $60 million in free cash flow, excluding the onetime cash costs associated with the restructuring efforts expected to total between $20 million and $25 million.

另外，我們預計 2023 年調整後的攤薄每股收益將在 1.60 美元至 1.80 美元之間，同時提供至少 6000 萬美元的自由現金流，不包括與重組工作相關的一次性現金成本預計總計在 2000 萬美元至 2500 萬美元之間。

Finally, including the in-year impact of the approximately $35 million annualized product portfolio rationalization decisions, the company anticipates comparable organic revenue growth to be low single digits. As I mentioned earlier, we are excited to embark on our transformation journey, and I'm confident we will improve on each of these metrics as the year progresses with the first quarter starting off slow and accelerating into the back half of the year, similar pacing to what we experienced in 2022.

最後，包括年內約 3500 萬美元的產品組合合理化決策的影響，公司預計可比較的有機收入增長將是低個位數。正如我之前提到的，我們很高興開始我們的轉型之旅，我相信隨著今年第一季度開始緩慢並加速進入今年下半年，我們將改進每一個指標，類似適應我們在 2022 年所經歷的一切。

In summary, given our consistent execution over the back half of 2021 and throughout 2022, and considering this current global macro and industry-specific environment remains uneven. We believe this is the appropriate time to proactively and strategically optimize our commercial organization, portfolio and costs structure. Operator, please open the line for questions.

總之，鑑於我們在 2021 年下半年和整個 2022 年的一致執行，並考慮到當前的全球宏觀和特定行業環境仍然不平衡。我們認為現在是主動和戰略性地優化我們的商業組織、產品組合和成本結構的合適時機。接線員，請打開問題線路。

(Operator Instructions)

（操作員說明）

The first question today comes from Rick Wise with Stifel.

今天的第一個問題來自 Stifel 的 Rick Wise。

Let me -- a lot to tackle here. I think that I'm going to start with the transformation commentary. And -- sorry, Michael, to make you say it again. Did I hear you correctly? It's $10 million cost reduction this year and the large portion of next year? I'm sorry, It just went by quickly.

讓我——這裡有很多要解決的問題。我想我將從轉型評論開始。並且 - 抱歉，邁克爾，讓你再說一遍。我沒聽錯嗎？今年要削減 1000 萬美元的成本，明年要削減大部分？對不起，它只是很快就過去了。

And maybe you could just -- whatever -- you'll correct my words, if they're wrong, but -- just help us understand better where the costs are going to come from, what the -- what's involved, how quickly you can get at them. And to what extent, especially in the early part, is this going to be a net positive, offsetting other cost and inflation, et cetera, pressures? Sorry for the long start.

也許你可以 - 無論如何 - 你會糾正我的話，如果他們錯了，但是 - 只是幫助我們更好地了解成本將來自哪裡，涉及什麼，你多快可以得到他們。以及在多大程度上，尤其是在早期，這將是一個淨積極因素，抵消其他成本和通貨膨脹等壓力？對不起，漫長的開始。

Yes. No, no, that's okay. So -- yes, approximately $10 million in 2023, a majority of the remainder amount, of between $45 million and $55 million, in 2024. So just to answer that first part of your question.

是的。不，不，沒關係。所以 - 是的，到 2023 年大約有 1000 萬美元，剩下的大部分在 2024 年在 4500 萬到 5500 萬美元之間。所以只是回答你問題的第一部分。

Where a majority of these savings are coming from is a mix of things. We'll be outsourcing some opportunities we will be rebidding on a lot of third-party contracts. We will be eliminating third-party resources as we announced through the reorganization of naming Kerr Holbrook, the Chief Commercial Officer. There was a duplication of roles.

這些節省的大部分來自多種因素。我們將外包一些機會，我們將重新競標許多第三方合同。正如我們通過任命首席商務官 Kerr Holbrook 的重組所宣布的那樣，我們將消除第三方資源。角色重複。

Some of those roles have already been eliminated. We'll also just continue on the path that we've done in the last couple of years with looking at trimming T&E and other areas as well. some of those things like outsourcing will take into the back half of this year to figure out the right partner to figure out the right way to do that without being disruptive. And so a majority of those savings won't take place until '24.

其中一些角色已經被取消。我們還將繼續沿著我們在過去幾年中所做的道路前進，同時考慮削減 T&E 和其他領域。其中一些事情，比如外包，將在今年下半年找到合適的合作夥伴，找出正確的方法來做到這一點，而不至於造成破壞。因此，這些節省中的大部分要到 24 年才會發生。

Got you. Exciting stuff as it all unfolds. Your supply chain back order situation, maybe you could give us a little more color on the back order, what drove the higher-than-expected back quarter and fourth quarter and the increase early this year?

明白了隨著一切的展開，令人興奮的事情。你的供應鏈延期交貨情況，也許你可以給我們更多關於延期交貨的顏色，是什麼推動了高於預期的後季度和第四季度以及今年年初的增長？

Is it -- I don't know. Is it particular product supply shortages or -- and again, what's your optimism on resolution working through that now?

是嗎——我不知道。是特定的產品供應短缺，還是——再一次，你對現在解決這個問題的樂觀態度是什麼？

So Rick, this is Joe, and Michael is welcome to comment as well. But we did a nice job at the end of the quarter, reducing our backlog. And obviously, that shows in the revenue. But then it built back up again.

Rick，我是 Joe，歡迎 Michael 發表評論。但我們在本季度末做得很好，減少了積壓。顯然，這體現在收入中。但隨後它再次建立起來。

So it's close to $10-ish million right now. It will come down though, quarter-by-quarter. We think it will come down pretty significantly in the second half. But the 3 areas right now. It's heavily weighted to just of health at the moment and particularly -- and there's the tieback issue. I think everybody knows that DuPont's building a new plant. It will be up and running in Europe but not until the fourth quarter.

所以它現在接近1000萬美元。不過，它會逐個季度下降。我們認為它會在下半年顯著下降。但是現在的3個區域。目前，它非常重視健康，尤其是——還有回接問題。我想每個人都知道杜邦公司正在建造一座新工廠。它將在歐洲啟動並運行，但要到第四季度。

So that's some of it. In our case, we also have a supplier of catheters for ON-Q and ambIT where we actually could be producing more revenue and the underlying demand is there, but that's going to stick with us through the third quarter of this year.

這就是其中的一部分。就我們而言，我們還有一家 ON-Q 和 ambIT 的導管供應商，我們實際上可以在那裡產生更多的收入，並且存在潛在需求，但這將持續到今年第三季度。

And then there are still electronic components that are issues across the board that does impact COOLIEF. Now that said, when we look out, we do see by the time we get to Q3 -- that -- most of that will be in the rearview mirror. And that's why Michael has talked about a progression somewhat similar to this year.

然後，仍然存在影響 COOLIEF 的全面問題的電子元件。話雖如此，當我們向外看時，我們確實會看到，當我們進入第三季度時——大部分都會出現在後視鏡中。這就是為什麼邁克爾談到了與今年有點相似的進步。

The aim though and -- what -- as I listened to Michael, the element of the transformation is to eliminate SKUs, to make some changes further in our portfolio. We believe that we can build ourselves into a consistent mid-single-digit growing business as we enter 2024. And obviously, the second half will be stronger than the first.

雖然目標是——什麼——正如我聽邁克爾說的那樣，轉型的要素是消除 SKU，在我們的產品組合中進一步做出一些改變。我們相信，進入 2024 年，我們可以將自己打造成一個持續保持中等個位數增長的業務。顯然，下半年將比上半年更強勁。

Got you. Just last for me. Joe, I heard your M&A comments that you were disappointed that something hadn't happened by now. And as I think back to chatting here with you and Michael in mid-November at the Stifel Healthcare Conference, you had said you'd hoped -- you thought the potential was there to see 2 potential bolt-ons sometime in the first half.

明白了只是為了我。喬，我聽到你的併購評論說你對現在還沒有發生的事情感到失望。當我回想起 11 月中旬在 Stifel 醫療保健會議上與你和邁克爾聊天時，你曾說過你希望——你認為有可能在上半年的某個時候看到兩個潛在的補強。

How are you thinking about those time lines today? Is that the track on your mind? Or should I imagine, given the timing of the Investor Day that, no, it's been pushed out longer. Just what's going on out there? And just where are you now?

您今天如何看待這些時間線？那是你心目中的軌道嗎？或者我應該想像，考慮到投資者日的時間，不，它被推遲了更長的時間。外面到底發生了什麼？你現在在哪裡？

Yes. Yes. So very robust pipeline, it's even built further since we last were together, I think of the New York in November. We do think that we will have a transaction in place prior to the Investor Day and in the near term.

是的。是的。如此強大的管道，自從我們上次在一起以來，它甚至建造得更遠，我想起了 11 月的紐約。我們確實認為我們將在投資者日之前和短期內進行交易。

And I do think that we'll likely have a second bolt-on in the second half of the year, so maybe not two in the first half of the year. We are orienting a lot of our focus on the Digestive Health area, but we still have a couple of Pain items that we want to do, again, being more focused in orthopedic pain and recovery than we have been in the past.

而且我確實認為我們可能會在今年下半年進行第二次補強，所以上半年可能不會有兩次。我們將重點放在消化系統健康領域，但我們仍然有一些我們想做的疼痛項目，與過去相比，我們更加關注骨科疼痛和康復。

So we feel really good about this. We obviously have a lot on with the transformation. So we're carefully also looking at phasing and not wanting any missteps in execution because a lot of this, as you can imagine, requires a lot of work. But that said, we're going to be in an excellent position for M&A.

所以我們對此感覺非常好。顯然，我們在轉型方面有很多工作要做。因此，我們也在仔細研究分階段，不希望在執行過程中出現任何失誤，因為正如您可以想像的那樣，其中很多都需要大量工作。但話雖如此，我們將在併購方面處於有利地位。

And I think we've demonstrated a good track record. We have plenty of powder at one time to go out and conduct these and they're going to enhance that growth profile as well, especially given that to the extent we do the two, then that's going to give us an even better outlook for '24 and parts of the end of the year.

我認為我們已經展示了良好的記錄。我們一次有大量粉末可以出去進行這些，它們也將增強這種增長狀況，特別是考慮到我們在這兩個方面所做的程度，那麼這將為我們提供更好的前景 ' 24 和年底的部分地區。

The next question comes from Matthew Mishan with KeyBanc.

下一個問題來自 KeyBanc 的 Matthew Mishan。

Yes, could you guys help quantify the product exits between Chronic Care and Pain, where the $35 million is coming out of? And then does that also -- does that take the place of potential spins or divestitures? Or is that something you're still looking at?

是的，你們能幫助量化 Chronic Care 和 Pain 之間的產品出口嗎？3500 萬美元來自哪裡？然後這是否也——這會取代潛在的分拆或資產剝離嗎？或者那是你還在看的東西？

So 2 points, Matt. We'll get more into details at Investor Day as to where these exits are coming from, partially because we have relationships that we're still in place right now, which is why we're giving a range of what the full year impact would be.

所以 2 分，馬特。我們將在投資者日更詳細地了解這些退出的來源，部分原因是我們現在仍然保持著關係，這就是為什麼我們給出了一系列全年影響的原因是。

So some of these we may hand over to an existing distributor relationship. Some we may just get out of altogether due to product availability. Some we may get out of just due to other relationships. So we're not getting into details, into the split of that yet, but we will have more clarity in detail on Investor Day around that first question.

因此，其中一些我們可能會移交給現有的分銷商關係。由於產品可用性，我們可能會完全放棄一些。有些我們可能會因為其他關係而擺脫。所以我們還沒有進入細節，進入它的分裂，但我們將在投資者日圍繞第一個問題有更多的細節。

To the second question, it's a mix. So some of the stuff we're deciding to get out of would be a little bit of the spend in getting out of products that just aren't worth the effort of trying to sell because we just wouldn't get value for them. So it just makes sense to exit those, but it doesn't necessarily take place out of other product categories where we do believe there's real value there, and we would consider divesting of those product categories.

對於第二個問題，它是一個混合體。因此，我們決定擺脫的一些東西將是擺脫那些不值得努力銷售的產品的一點點支出，因為我們不會從中獲得價值。因此，退出這些產品是有意義的，但它並不一定會發生在我們認為具有真正價值的其他產品類別之外，我們會考慮剝離這些產品類別。

Okay. Excellent. And then for 2023, I think -- well, just taking a step back, it looks like Orthogen, including an extra week or two, that pulls over from that inorganic for 2022 would be coming out about $80 million for a full year on an annualized basis. Just what are the expectations for that in kind of 2023 as some of the pricing dynamics change?

好的。出色的。然後到 2023 年，我認為——好吧，退後一步，看起來 Orthogen，包括額外的一兩週，從 2022 年的無機物中拉出來，一整年的收入約為 8000 萬美元年化基礎。隨著一些定價動態的變化，人們對 2023 年的預期是什麼？

Yes, Joe will talk in a second about the strategic aspect of what we're doing there. The $80 million -- I think it's a little south of the $80 million, but you're directionally right.

是的，喬將在一秒鐘內談論我們在那裡所做的戰略方面。 8000 萬美元——我認為它比 8000 萬美元稍微南一點，但你的方向是正確的。

And just on a strategic level, I do think in the first half of this year, Q1 and Q2, we're still going to see benefit on the reimbursement level really in the TriVisc and the GenVisc categories, and that starts to level off in the second half and we see that more as a level.

就戰略層面而言，我確實認為在今年上半年，即第一季度和第二季度，我們仍將在 TriVisc 和 GenVisc 類別中真正看到報銷水平的好處，並且在下半場，我們更多地將其視為一個水平。

And we call a level year -- year-over-year. And that's where -- that's where we are, and that's a good outcome for us for the business. And just as a reminder, we didn't really make the acquisition based upon thinking it was going to be north of our mid-single digit on a consistent basis after this year, we do think it's a low single-digit grower, but excellent contribution to the margins.

我們稱一年為一年——年復一年。這就是我們所在的地方，這對我們的業務來說是一個很好的結果。提醒一下，我們並沒有真正基於認為它會在今年之後始終保持在我們的中個位數以北的基礎上進行收購，我們確實認為這是一個低個位數的增長，但非常好邊際的貢獻。

And more importantly, a fit for our focus going forward in pain is going to be more around the ambulatory surgical center, orthopedic office. And in that setting, so you can see it pairing well, obviously, with COOLIEF pairing with Game Ready. And just getting total knees of the patients back to recovery faster and on -- and leading up to that, obviously, in the case of HA.

更重要的是，我們未來在疼痛方面的關注點將更多地集中在門診手術中心、骨科辦公室。在那種設置下，您可以看到它與 COOLIEF 與 Game Ready 的配對非常好。並且只是讓患者的全膝恢復得更快並且持續 - 顯然，在 HA 的情況下會導致這種情況。

Okay. And then on SG&A, last year, you started at a high point in the first quarter and then sequentially decelerated through the course of the year. How should we be thinking about SG&A through the course of 2023? Is the fourth quarter a good starting point? Or does it ramp again and then come down through the course of the year?

好的。然後在 SG&A 方面，去年，你從第一季度的高點開始，然後在一年中連續減速。到 2023 年，我們應該如何考慮 SG&A？第四季度是一個好的起點嗎？或者它會再次上升然後在一年中下降嗎？

Yes. The pacing will feel very similar. That being said, the $10 million of in-year cost, there may be some movement between Q2 to Q4 as to when some of these costs come out, but the pacing will feel very similar.

是的。節奏會感覺非常相似。話雖這麼說，1000 萬美元的年內成本在第二季度和第四季度之間可能會出現一些變化，其中一些成本何時會出現，但節奏會非常相似。

And that, to your point, Matt, will have a high point in Q1 and it will come down on actual dollars as the year goes on, whereas revenue will be a low point in Q1 and will be even-ish in Q2, Q3, but higher than Q1 and then will have a solid Q4. And therefore, you have that.

而且，就你的觀點而言，馬特，第一季度將達到高點，隨著時間的推移，實際美元將下降，而第一季度的收入將是低點，第二季度、第三季度將持平，但高於 Q1，然後會有穩固的 Q4。因此，你有那個。

Obviously, you have your high 30s, low 40s, starting in 2023, Q1 for SG&A as a percentage of net sales going down into the mid-ish percentage in Q4. Some of it's just math, some of it is the pacing of the savings that we just talked about, the $10 million.

顯然，從 2023 年開始，第一季度 SG&A 占淨銷售額的百分比下降到第四季度的中等百分比。有些只是數學，有些是我們剛才談到的節省的節奏，即 1000 萬美元。

Okay. And then last one, maybe I just missed it. Just what are your expectations for gross margin in 2023? I know you kind of put out the 100 basis points of operating margin, EBITDA margin improvement in kind of '23.

好的。然後最後一個，也許我只是錯過了它。您對2023年的毛利率有何預期？我知道你提出了 100 個基點的營業利潤率，EBITDA 利潤率在 23 年有所改善。

Yes. So that was purposeful. We aren't sure exactly where we're going to get the 100 basis points from what we do know is gross margins should be sticking in these 57% level, if not higher, and SG&A at 38.9% should be a little bit lower, if not in the range. So again, depending on how these savings come in and when we exit some of these low margin -- lower gross margin product categories, will shift where that 100 basis points comes from.

是的。所以這是有目的的。我們不確定我們將從哪裡獲得 100 個基點，我們所知道的是毛利率應該保持在 57% 的水平，如果不是更高的話，38.9% 的 SG&A 應該稍微低一點，如果不在範圍內。因此，再次取決於這些節省的方式以及我們何時退出其中一些低利潤率 - 毛利率較低的產品類別，將轉移這 100 個基點的來源。

So we're not trying to be cute on the 100 basis points at op EBITDA. We just -- we're trying to be thoughtful. I know that we'll have more information to share at Investor Day in June. You got it.

所以我們並不想在 op EBITDA 的 100 個基點上變得可愛。我們只是 - 我們正在努力考慮周全。我知道我們將在 6 月的投資者日分享更多信息。你說對了。

(Operator Instructions)

（操作員說明）

The next question comes from Drew Ranieri with Morgan Stanley.

下一個問題來自摩根士丹利的 Drew Ranieri。

Just maybe on the cost transformation side for a moment, and I understand that there's a lot going on that we will eventually get details with. But just kind of looking back at the company, it's been kind of a few years of talking of rightsizing the business and getting the expense structure in place.

也許只是在成本轉型方面暫時，我知道我們最終會得到很多細節。但回顧一下公司，幾年來一直在討論調整業務規模和製定費用結構。

But I was just kind of curious how you can -- or if you can really kind of give more details about the growth side of the equation and really what you're thinking on that side because it just feels like Avanos has kind of been a low single-digit grower. So I'd like to hear more about how you're thinking about growth improving and accelerating over the next 12, 18, 24 months?

但我只是有點好奇你是怎麼做到的——或者你是否真的可以提供更多關於等式的增長方面的細節，以及你在這方面的真實想法，因為感覺 Avanos 有點像低個位數的種植者。所以我想听聽更多關於你如何看待未來 12、18、24 個月內增長改善和加速的想法？

Maybe I could start with a little bit of growth, and I think Michael will pick up on some more of the costs. But obviously, we want to set that foundation so that we get the drop-through and leverage.

也許我可以從一點點增長開始，我認為邁克爾會承擔更多的成本。但顯然，我們希望打下基礎，以便我們獲得突破和影響力。

And if you go around and look at what's going on in Chronic Care, you do see a lot of spots of double-digit growth. I mean, NeoMed almost hitting 40% consistent mid-single-digit growth, really, and the rest of it just to help the portfolio on a global basis, we're starting to see pain come back. It's limited right now by some of the supply chain issues. There's probably still another $2 million or so a quarter going to be this year that would be backlog each quarter that we could sell through.

如果你四處看看慢性病護理領域正在發生的事情，你確實會看到很多兩位數的增長點。我的意思是，NeoMed 幾乎達到了 40% 的持續中個位數增長，真的，其餘的只是為了在全球範圍內幫助投資組合，我們開始看到痛苦回來了。它現在受到一些供應鏈問題的限制。今年每個季度可能還有 200 萬美元左右的積壓訂單，我們可以銷售。

And also, we know we have a line of sight to some strong acquisitions and good valuations like we've been doing before in the areas where we compete, so orthopedic pain and recovery, management. And then obviously, we said we're going to put an emphasis on Digestive Health.

而且，我們知道我們對一些強大的收購和良好的估值有一定的了解，就像我們以前在我們競爭的領域所做的那樣，所以骨科疼痛和康復，管理。然後很明顯，我們說我們將把重點放在消化系統健康上。

So we think that's going to be enhancing it. And if you pull all that back in a normalized situation, we feel like we do have a mid-single-digit growing organic business, not going to show through, obviously, in the first half, but starting to show through in the second half, but really being powerful as we move into 2024 coupled with the balance sheet that we have as the size of the company.

所以我們認為這將加強它。如果你在正常情況下把所有這些都拉回來，我們覺得我們確實有一個中個位數增長的有機業務，顯然不會在上半年表現出來，但在下半年開始表現出來，但隨著我們進入 2024 年以及我們擁有的公司規模的資產負債表，它真的很強大。

So I think putting that together is where we see a lot of strong value creation. And when you see the cash flow now increasing, it gives us also medium term opportunity to do some, what we would call, bigger things for us, not bet the farm kind of a scenario like you see in the market, but larger than the deals that we've been doing, and generally being, in many cases anyway, complementary to EBITDA and accretive to growth. So with that, I'll let Michael maybe hit some of the costs.

所以我認為把它們放在一起是我們看到很多強大的價值創造的地方。當你看到現金流量現在增加時，這也給了我們中期的機會來做一些我們稱之為更大的事情，而不是像你在市場上看到的那樣打賭農場那種情況，但比我們一直在做的交易，而且在很多情況下，通常是對 EBITDA 的補充並促進增長。因此，我會讓邁克爾承擔一些成本。

Yes. I would say, Drew, this is not a cost takeout effort. This is a -- to Joe's point, a portfolio rationalization/optimization effort. And oh! by the way, if we're going to that there's some cost opportunities.

是的。我會說，德魯，這不是成本外賣的努力。這是 - 喬的觀點，投資組合合理化/優化工作。哦！順便說一下，如果我們要這樣做的話，會有一些成本機會。

And obviously, from a reporting requirement, we've got to get restructuring and other things. out of the table. But when you look at all our internal messaging, this has nothing to do with cost takeout. Those are just -- that's just a byproduct, and a good byproduct for sure, of what we're doing with our portfolio.

顯然，根據報告要求，我們必須進行重組和其他事情。離開桌子。但是當你查看我們所有的內部消息時，這與成本外賣無關。這些只是 - 這只是我們正在對我們的投資組合所做的事情的副產品，而且肯定是一個很好的副產品。

Our intention to speak further portfolio moves and maybe by the time we get to New York in June, there are some other things that help enhance the profile of our growth that are related there. So we're pretty excited about it.

我們打算談談進一步的投資組合舉措，也許到 6 月我們到達紐約時，還有其他一些有助於提高我們與那里相關的增長概況的事情。所以我們對此感到非常興奮。

Got it. And maybe just a little bit more clarity on how we should think about the product exit for '23, if there's any way to think about the weighting of what you're going to be doing?

知道了。如果有任何方法可以考慮您將要做的事情的權重，也許我們應該如何考慮 23 年的產品退出會更清楚一點？

I know you don't want to get into specifics of Chronic Care or Pain, but can you at least help us with understanding the cadence for '23? And just with '23 with your guidance, the low single-digit growth rate, we should be thinking around like [7 90] to [8 10] for reported revenue for '23. Is that the right range?

我知道你不想深入了解慢性病或疼痛的細節，但你至少能幫助我們了解 23 年的節奏嗎？就在你的指導下，'23，低個位數的增長率，我們應該考慮像 [7 90] 到 [8 10] 這樣的 '23 報告收入。那是正確的範圍嗎？

Yes. I think you're -- I think we're probably a little higher than the [7 90], just based on the timing of some of the exits. But -- yes, [7 95] to [8 10-ish] feels like the right range. You did that math correctly, Drew.

是的。我認為你 - 我認為我們可能比 [7 90] 高一點，只是基於一些退出的時間。但是——是的，[7 95] 到 [8 10-ish] 感覺是正確的範圍。你算對了，德魯。

And so again, the timing is incumbent upon some of those relationships. We believe we have responsibility to some of these customers from a medical device product standpoint. And so -- some of these we can do sooner, some of these we are choosing to do later.

同樣，時機取決於其中一些關係。我們認為，從醫療器械產品的角度來看，我們對其中一些客戶負有責任。因此 - 其中一些我們可以更快地完成，其中一些我們選擇稍後完成。

There are some opportunities to work with distributors in some of these categories to hand off 1, 2 years of inventory and have them continue to run that, maybe even by some of our assets for a few dollars. So there's a range of things we're still very much working through on the exit timing. But your math, broadly -- your range is appropriately stated.

有一些機會可以與其中一些類別的分銷商合作，交出 1 年、2 年的庫存，並讓他們繼續經營，甚至可以通過我們的一些資產以幾美元的價格繼續經營。因此，我們仍在努力解決退出時間的一系列問題。但是從廣義上講，您的數學範圍已得到適當說明。

The next question comes from Dave Turkaly with JMP Securities.

下一個問題來自 JMP Securities 的 Dave Turkaly。

Great. You mentioned the new CCO position and you mentioned some synergies and kind of putting Chronic and Pain under one organization.

偉大的。你提到了新的 CCO 職位，你提到了一些協同作用，以及將慢性病和疼痛置於一個組織之下。

I'd love to -- again, it doesn't sound completely intuitive that -- that would be the case that there would be opportunities like that. But maybe you could highlight some of the areas where you see those opportunities and why that makes the most sense?

我很樂意——再一次，這聽起來並不完全直觀——那就是會有這樣的機會。但也許你可以強調一些你看到這些機會的領域，以及為什麼這最有意義？

Yes, there are a lot of areas where we're seeing headcount opportunity and strategic marketing. Areas like customer service. Really, Kerr's taking also -- also a look at the way he spends and the returns in various areas of the business.

是的，我們在很多領域都看到了員工人數機會和戰略營銷。客戶服務等領域。真的，克爾也在考慮——也看看他在各個業務領域的支出方式和回報。

And so that's -- that's been actually a strong piece for us. He's also looking at his channels right now. There's opportunity to deploy our channels somewhat differently and in, some cases, utilize 1099s to help expand our business and it also addresses sometimes some of the cost of the of sales. So all those areas are areas that are built into Michael's plans.

所以這就是 - 這對我們來說實際上是一件很重要的事情。他現在也在看他的頻道。有機會以不同方式部署我們的渠道，在某些情況下，利用 1099 來幫助擴展我們的業務，有時它還解決了一些銷售成本。所以所有這些領域都是邁克爾計劃中的領域。

Got it. And then the comments you made on the EBITDA north of 22%, free cash flow above $100 million, is that what you expect to do at the end of the 3 years? So like, say, exiting '25, is that the time line for that?

知道了。然後你對 EBITDA 超過 22% 的評論，自由現金流超過 1 億美元，這就是你期望在 3 年末做的事情嗎？比如說，退出 25 年，那是時間表嗎？

Yes, that's correct. At the end of 2025. Yes.

對，那是正確的。 2025 年底。是的。

And then to get to that question, we will have some more specifics around the pacing on that. One of the signals obviously, we're providing today is that we exited the fourth quarter at 20.8% EBITDA margin.

然後為了解決這個問題，我們將圍繞這個問題的節奏提供更多細節。顯然，我們今天提供的信號之一是我們以 20.8% 的 EBITDA 利潤率退出第四季度。

Last year, we exited the fourth quarter at 16%, and we did full year this year at 16.8%. We're not going to do 21% in '23. But these are how the pacings will work for us, right? Our Q4, ultimately, as we manage our portfolio optimization, some of this offsetting cost opportunity, those -- these are the tax numbers we produce on an annual basis, not just the Q4 basis.

去年，我們以 16% 的速度結束了第四季度，今年我們以 16.8% 的速度結束了全年。我們不會在 23 年完成 21%。但這就是節奏對我們起作用的方式，對吧？我們的第四季度，最終，當我們管理我們的投資組合優化時，一些抵消成本的機會，這些是我們每年產生的稅收數字，而不僅僅是第四季度的基礎。

The next question comes from Matthew Mishan with KeyBanc.

下一個問題來自 KeyBanc 的 Matthew Mishan。

Just 1 follow-up. I just wanted -- I just wanted to give you guys the opportunity to talk a little bit about NeoMed and ENFit. Just kind of, how -- is it a 40% again? I mean this product has grown like significantly for you over the last year to 2 years. Kind of where are you at in this -- in this conversion cycle? How much more like is there? And then, are some of the initiatives that you're doing going to help improve the profitability of this product as well?

僅 1 次跟進。我只是想——我只是想讓你們有機會談談 NeoMed 和 ENFit。只是有點，又是 40% 嗎？我的意思是，在過去的一年到 2 年裡，這個產品對你來說已經有了顯著的增長。在這個轉換週期中，您處於什麼位置？還有多少像？然後，您正在做的一些舉措是否也有助於提高該產品的盈利能力？

Yes. I mean, yes, all of the above. And I will say that -- I think we had a line in the script about the double-digit growth of the acquisitions that we've made.

是的。我的意思是，是的，以上所有。我要說的是——我認為我們在劇本中有一句台詞是關於我們所進行的收購的兩位數增長。

And we see another strong year for NeoMed with continued ENFit across the globe being converted. I think ultimately, it becomes a strong high single-digit type of growth for us. And it's opened up our aperture to looking at and why we're focusing more on Digestive Health and neonatal type of targets where we think we can build -- get strong synergies good gross margins in our organization where we have a right to win and where we can get deals, and really pay fair reasonable prices for those deals.

我們看到 NeoMed 又是一個強勁的一年，全球範圍內的 ENFit 不斷被轉換。我認為最終，它會成為我們強勁的高個位數增長類型。它打開了我們的視野，讓我們更關註消化健康和我們認為可以建立的新生兒類型的目標，以及我們為什麼要在我們有權贏得的組織中獲得強大的協同效應和良好的毛利率我們可以獲得交易，並真正為這些交易支付公平合理的價格。

So it's been a home run. Obviously, CORTRAK was strong for us. We're benefiting even with ambIT moving into the Ambulatory Surgical Center and replacing sort of what was ON-Q. But there's no doubt that the NeoMed acquisition has been an absolute home run for us.

所以這是一個本壘打。顯然，CORTRAK 對我們來說很強大。即使 ambIT 進入 Ambulatory Surgical Center 並取代了 ON-Q 的某種東西，我們也從中受益。但毫無疑問，對 NeoMed 的收購對我們來說是一個絕對的本壘打。

And again, it does have -- there's opportunities everywhere, including the ambIT around both our manufacturing efficiencies and transportation and just all the ways that we're going to market. I don't know if you put the two into add anything to that -- Michael's good with that. But thanks for pointing that out, Matt.

再一次，它確實有——到處都有機會，包括圍繞我們的製造效率和運輸的範圍，以及我們進入市場的所有方式。我不知道你是否把這兩者加起來——邁克爾很擅長這一點。但謝謝你指出這一點，馬特。

And what inning do you think you're in that -- in that -- in that conversion? Like how much is kind of...

你認為你在那個 - 在那個 - 在那個轉換中的哪一局？比如多少有點...

Left?

左邊？

Yes.

是的。

Transitioning from the seventh to the eighth inning, but then just remember, we still think we'll be north of our mid-single digit for quite some time beyond that. It's just that you -- you can't grow at 30%, 40% forever.

從第七局過渡到第八局，但請記住，我們仍然認為我們會在很長一段時間內處於中個位數以北。只是你——你不能永遠以 30%、40% 的速度增長。

This concludes our question-and-answer session. I would like to turn the conference back over to Joe Woody for any closing remarks.

我們的問答環節到此結束。我想將會議轉回給 Joe Woody 作閉幕詞。

I'd like to just basically thank everybody for the continued interest in Avanos. And -- as you're hearing from us, the demand for our products does remain strong, which we like. The fundamentals across the business are strong.

我只想感謝大家對 Avanos 的持續關注。而且——正如您從我們這裡聽到的那樣，對我們產品的需求確實保持強勁，這是我們喜歡的。整個業務的基本面都很強勁。

We're focused on what we can control and manage, and we think '22 results -- 2022 results have built the foundation, as we said back in January, to deliver on the commitment that we're confident priorities we detailed in this transformation program, combined with our market leading portfolio and the markets we're in, positioned us for sales growth, margin expansion and meaningful free cash flow generation in 2023.

我們專注於我們可以控制和管理的事情，我們認為 22 年的結果——正如我們在 1 月份所說的那樣，2022 年的結果已經奠定了基礎，可以兌現我們有信心在這次轉型中詳細說明的優先事項的承諾計劃，結合我們市場領先的產品組合和我們所處的市場，使我們能夠在 2023 年實現銷售增長、利潤率擴張和有意義的自由現金流產生。

We look forward to sharing a lot more detail about the transformation program at our June 20 Investor Day in New York City. Thanks for your time today.

我們期待在 6 月 20 日的紐約市投資者日上分享更多關於轉型計劃的細節。感謝您今天的時間。

The conference is now concluded. Thank you for attending today's presentation. You may now disconnect.

會議現已結束。感謝您參加今天的演講。您現在可以斷開連接。