Bioventus Inc (BVS) 2024 Q4 法說會逐字稿

Good morning and welcome to the Bioventus fourth-quarter 2024 earnings conference call. (Operator Instructions) Please note this event is being recorded. I would now like to turn the conference over to Dave Crawford, Vice President, Investor Relations and Treasurer. Please go ahead.

早安，歡迎參加 Bioventus 2024 年第四季財報電話會議。（操作員指示）請注意，此事件正在被記錄。現在，我想將會議交給投資者關係副總裁兼財務主管 Dave Crawford。請繼續。

Thanks, Drew. And good morning, everyone, and thanks for joining us. It is my pleasure to welcome you to the Bioventus 2024 fourth-quarter earnings conference call. With me this morning are Rob Claypoole, President and CEO, and Mark Singleton, Senior Vice President and CFO. Rob will begin his remarks with an update on our business and lay out our 2025 priorities. Mark will provide detail on our fourth-quarter results and discuss our 2025 financial guidance, and we will finish the call with Q&A. The presentation for today's call is available on the investors section of our website bioventus.com.

謝謝，德魯。大家早安，感謝大家的收看。我很高興歡迎您參加 Bioventus 2024 第四季財報電話會議。今天早上與我一起的有總裁兼執行長 Rob Claypoole 和資深副總裁兼財務長 Mark Singleton。羅布將首先介紹我們的業務進展並闡述我們的 2025 年優先事項。馬克將詳細介紹我們的第四季業績並討論我們的 2025 年財務指導，我們將以問答形式結束通話。今天電話會議的簡報可在我們網站 bioventus.com 的投資者部分找到。

But before we begin, I would like to remind everyone that our remarks today contain forward-looking statements that are based on the current expectations of management and involve inherent risks and uncertainties that could cause actual results to differ materially from those indicated, including the risks and uncertainties described in the company's filings with the SEC, including item 1A risk factors of the company's Form 10-K for the year ended December 30, 2024, as such factors may be updated from time to time in the company's other filings made with the SEC.

但在開始之前，我想提醒大家，我們今天的言論包含前瞻性陳述，這些陳述基於管理層當前的預期，並涉及固有風險和不確定性，可能導致實際結果與所示的結果存在重大差異，包括公司向美國證券交易委員會提交的文件中描述的風險和不確定性，包括公司截至2024年12月30日的10-K表格中描述的風險和不確定性，包括公司截至2024年12月30日的10-K表格中的第1A項風險因素。

You are cautioned not to place undue reliance upon any forward-looking statement which speak only as the date may, although it may voluntarily do so from time to time. The company undertakes no commitment to update or revise the forward-looking statements, whether as a result of new information, future events, or otherwise, except as required by applicable securities laws.

請注意不要過度依賴任何前瞻性聲明，這些聲明僅代表日期，儘管它可能會不時自願這樣做。除非適用的證券法要求，否則本公司不承擔更新或修改前瞻性聲明的承諾，無論其是否出現新資訊、未來事件或其他原因。

This call will also include references to certain financial measures that are not calculated in accordance with US generally accepted accounting principles or GAAP. We will generally refer to these as non-GAAP or adjusted financial measures. Important disclosures about the definitions and reconciliations of those non-GAAP financial measures to the most comparable measures calculated and presented in accordance with GAAP are available in the earnings press release on the investor section of our website at bioventus.com.

此次電話會議也將提及某些未依照美國公認會計原則或 GAAP 計算的財務指標。我們通常將這些稱為非公認會計準則或調整後的財務指標。有關這些非 GAAP 財務指標的定義及其與按照 GAAP 計算和呈現的最具可比性的指標之間的調節的重要披露，請參閱我們網站 bioventus.com 投資者部分的收益新聞稿。

And now I will turn the call over to Rob.

現在我將把電話轉給 Rob。

Thank you, Dave. Good morning, everyone, and thanks for joining our call today. I'm pleased to report that the Bioventus team delivered another strong quarter, concluding a very successful and transformational year for our company.

謝謝你，戴夫。大家早安，感謝大家今天參加我們的電話會議。我很高興地報告，Bioventus 團隊又取得了強勁的季度業績，為我們公司非常成功和轉型的一年畫上了圓滿的句號。

I want to express my gratitude to our talented team for embracing the improvements we are making across our company and for helping over 1 million patients last year recover and live life to the fullest. Looking forward, we believe we're well positioned to build on this positive momentum in 2025 and beyond, driving above market revenue growth through a multitude of diverse growth drivers for the short, mid, and long term while also enhancing profitability and accelerating cash flow to create significant shareholder value.

我要向我們才華橫溢的團隊表示感謝，感謝他們接受我們公司上下所做的改進，並幫助去年超過 100 萬名患者康復並過上充實的生活。展望未來，我們相信，我們已做好準備，在 2025 年及以後繼續保持這一積極勢頭，透過短期、中期和長期的多種成長動力推動高於市場的收入成長，同時提高盈利能力並加速現金流，從而創造顯著的股東價值。

Now that I've surpassed my one year anniversary with Bioventus, it's an appropriate time to briefly reflect on the meaningful progress our company has made to position us for continued success. I'll categorize our progress into three areas strategy, people, and execution.

現在我已經在 Bioventus 工作一周年了，現在是時候簡要回顧我們公司所取得的有意義的進步，為我們繼續取得成功做好準備。我將把我們的進展分為三個領域：策略、人員和執行。

First, with respect to our growth strategy, we completed a comprehensive review of all of our markets and established a framework for sustained and profitable growth. This plan has aligned our entire organization around a common vision and is already serving as a strategic roadmap for organic and inorganic opportunities to optimize our portfolio, commercial and operational improvements, and select high ROI investments to support our business.

首先，關於我們的成長策略，我們對所有市場進行了全面審查，並建立了持續獲利成長的框架。該計劃使我們整個組織圍繞共同願景保持一致，並已成為有機和無機機會的策略路線圖，以優化我們的產品組合、商業和營運改進，並選擇高投資回報率的投資來支持我們的業務。

Second, in terms of our people, we continue to strengthen the Bioventus team and enhance our culture. We are developing new capabilities internally and recruiting new talent that we believe possess the expertise, experience, and the market knowledge necessary to maximize our growth prospects. We are also improving an already great culture at Bioventus, and we have seen a significant increase in our employee engagement based on our recent survey.

第二，在人才方面，我們不斷加強Bioventus團隊，提升我們的文化。我們正在內部開發新的能力並招募新的人才，我們相信這些人才擁有最大化我們成長前景所需的專業知識、經驗和市場知識。我們也正在改善 Bioventus 原本就很棒的企業文化，根據我們最近的調查，我們發現員工敬業度顯著提高。

And with respect to execution, there's been a lot of progress, and so I'll highlight just a few areas. First, we delivered a strong financial performance in 2024, including double-digit organic revenue growth in all four quarters, along with 150 basis points of adjusted gross margin expansion. And we leverage this combination to generate enhanced profitability, positive cash flow, and improved liquidity.

在執行方面，我們已經取得了很大進展，因此我只強調幾個方面。首先，我們在 2024 年取得了強勁的財務業績，包括四個季度均實現兩位數的有機收入成長，以及調整後毛利率擴大 150 個基點。我們利用這種組合來提高獲利能力、實現正現金流並改善流動性。

We also optimized our global portfolio with the successful divestiture of our advanced rehabilitation business. We aligned our commercial and operational strategies and priorities with targeted investments, more disciplined focus, and enhanced accountability. And we have elevated the visibility and the collective ownership of the execution of our key initiatives to my entire executive leadership team.

我們也成功剝離了先進的康復業務，優化了我們的全球投資組合。我們將商業和營運策略和優先事項與有針對性的投資、更有紀律的重點和更強的責任感相結合。我們也提高了整個執行領導團隊對我們關鍵措施執行情況的知名度和集體責任感。

While there's more work to be done, I'm pleased with the progress to date and believe we now have an even stronger foundation for sustained future momentum and success. Now, I'll transition and briefly review our performance across the three priorities that I introduced at the start of last year. Accelerating revenue growth, improving profitability, and enhancing our liquidity position.

雖然還有很多工作要做，但我對迄今為止的進展感到滿意，並相信我們現在擁有更堅實的基礎，可以為未來持續的發展勢頭和成功奠定基礎。現在，我將過渡並簡要回顧我們在去年年初提出的三個優先事項方面的表現。加速收入成長，提高獲利能力，增強我們的流動性狀況。

With respect to our first priority, accelerating revenue growth, for 2024, we exceeded our expectations and accelerated revenue growth to 12%, and delivered organic growth of 14%. And we ended the year with continued momentum and a strong performance in the fourth quarter with revenue growth of nearly 14%. I'll share just a few highlights.

關於我們的首要任務，即加速收入成長，到 2024 年，我們超越了預期，營收成長加速至 12%，並實現了 14% 的有機成長。我們以持續的勢頭和強勁的業績結束了這一財年，第四季度營收成長了近 14%。我僅分享一些亮點。

Starting with surgical solutions, our team beat internal expectations and generated double-digit growth again in the fourth quarter, led by ultrasonics, which achieved its highest quarterly growth rate of the year. In pain treatments, our HA portfolio for knee osteoarthritis also exceeded our internal expectations and achieved another quarter of double-digit growth driven by DUROLANE. And in restorative therapies, Exogen generated growth in the fourth quarter, despite a tough count, and we are very pleased with accelerating growth to 7% for the full year 2024 after 5 years of declines in this business.

從外科解決方案開始，我們的團隊超越了內部預期，並在第四季度再次實現了兩位數的成長，其中超音波技術領先，實現了今年最高的季度成長率。在疼痛治療方面，我們針對膝關節骨性關節炎的HA產品組合也超出了我們的內部預期，在DUROLANE的推動下，又實現了一個季度的兩位數增長。在恢復性療法領域，儘管業績不佳，但 Exogen 在第四季度仍實現了成長，我們很高興看到該業務在經歷了 5 年的下滑之後，2024 年全年的成長率將加速至 7%。

Turning to our second focus area, boosting profitability. With our peer leading gross margin and our accelerated revenue growth, we generated adjusted EBITDA of $109 million for the full year, an increase of 23%. And we expanded, adjusted EBITDA margin by 160 basis points. This included a strong finish to the year as we generated adjusted EBITDA of $28 million in the fourth quarter, up over $6 million versus prior year.

轉向我們的第二個重點領域，提高獲利能力。憑藉我們同業領先的毛利率和加速的營收成長，我們全年的調整後 EBITDA 達到 1.09 億美元，成長 23%。我們將 EBITDA 利潤率擴大並調整了 160 個基點。這包括我們今年業績的強勁收官，第四季度我們的調整後息稅折舊攤銷前利潤 (EBITDA) 達到 2800 萬美元，比上年同期增長 600 多萬美元。

And with respect to our third focus area, improving our liquidity position, I'm pleased to say that we paid down nearly $50 million in debt in the fourth quarter. This included the proceeds from the divestiture of our advanced rehabilitation business. And as a result of our growth and adjusted EBITDA and our debt repayments, we further reduced our net leverage ratio to slightly above 3 turns at the end of 2024, representing a reduction of more than a full turn since the start of the year.

關於我們的第三個重點領域，即改善我們的流動性狀況，我很高興地說，我們在第四季度償還了近 5000 萬美元的債務。其中包括我們剝離先進復健業務所得的利益。由於我們的成長和調整後的 EBITDA 以及債務償還，我們在 2024 年底將淨槓桿率進一步降低至略高於 3 倍，這意味著自年初以來減少了超過 1 倍。

In summary, our team accomplished a great deal in 2024, but we are not satisfied with our progress as we strive to capitalize on our enormous potential to create even greater value for our stakeholders.

總而言之，我們的團隊在 2024 年取得了巨大的成就，但我們並不滿足於現狀，我們將努力利用巨大的潛力為利害關係人創造更大的價值。

Now, transition to our 2025 financial priorities, which are: one, driving above market growth; two, continuing to expand our profitability; and three, accelerating free cash flow generation. Let me provide further context on these three areas.

現在，轉到我們 2025 年的財務重點，即：一、推動超越市場的成長；二、持續擴大獲利能力；三是加速自由現金流的產生。讓我進一步介紹這三個領域的背景資訊。

First, across our diverse portfolio, we participate in large growing markets with favorable demographic trends. On average, these markets are growing low to mid-single digits. However, given our strong critical differentiation and enhanced commercial execution, we believe we have demonstrated our ability to grow at a higher rate and achieve above market revenue growth.

首先，在我們多元化的投資組合中，我們參與了具有良好人口趨勢的大型成長市場。平均而言，這些市場的成長速度為低至中等個位數。然而，鑑於我們強大的關鍵差異化和增強的商業執行力，我們相信我們已經證明了我們有能力以更高的速度成長並實現高於市場的收入成長。

Let me take a moment to highlight some of the opportunities in front of us, starting with surgical solutions. This is our highest growth business today. It includes both ultrasonics and bone graft substitutes and we project long-term double digit growth. With Ultrasonics, we are in the early stages of penetrating the roughly $1 billion market opportunity across spine, neuro, and general surgery.

請容許我花點時間來強調我們面前的一些機遇，首先是手術解決方案。這是我們目前成長最快的業務。它包括超音波和骨移植替代品，我們預計長期將實現兩位數的成長。借助超音波技術，我們正處於開拓脊椎、神經和一般外科領域約 10 億美元市場機會的早期階段。

Customers I've met with over the past year have referred to our technology as revolutionary because it provides control and precision for surgeons, reduces blood loss for patients, and decreases time in surgery, which enables hospitals to improve operating room productivity. It is for these reasons that we believe we can make our technology the standard of care.

過去一年來，我遇到的客戶都認為我們的技術具有革命性，因為它為外科醫生提供了控制力和精確度，減少了患者的失血量，並縮短了手術時間，從而使醫院能夠提高手術室的生產力。正是由於這些原因，我們相信我們可以使我們的技術成為護理的標準。

We recently brought on new leadership over this business to capitalize on this substantial opportunity, and we are focusing our efforts in several key areas including strategic marketing, commercial effectiveness, and medical education to raise awareness about the benefits of ultrasonic surgery versus current practices.

我們最近為這項業務引入了新的領導層，以利用這一重大機遇，並且我們正集中精力在幾個關鍵領域，包括策略行銷、商業效益和醫學教育，以提高人們對超音波手術相對於當前實踐的優勢的認識。

In addition to ultrasonics, our osteo portfolio enables us to continue growing our bone grafts substitutes business above the market growth rate. [Austrolamp] provides similar results for a large number of spinal procedures as compared to the leading product in the premium segment and delivers material savings for hospitals.

除了超音波之外，我們的骨科產品組合還使我們能夠繼續以高於市場成長率的速度發展我們的骨移植替代品業務。 [Austrolamp] 與高端領域的領先產品相比，為大量脊椎手術提供了類似的效果，並為醫院節省了材料成本。

In the pain treatments business, we are an established market leader in HA for knee osteoarthritis. We are driving above market growth and we will continue to enhance our commercial execution and expand our footprint within large customer accounts.

在疼痛治療業務方面，我們是膝關節骨性關節炎 HA 領域公認的市場領導者。我們正在推動超越市場的成長，並將繼續加強我們的商業執行力並擴大我們在大客戶帳戶中的影響力。

Looking ahead, we are confident in our ability to drive sustained above market growth with our clinical differentiation, dedicated commercial teams, robust private payer coverage, and targeted opportunities for geographic expansion.

展望未來，我們有信心憑藉我們的臨床差異化、專業的商業團隊、強大的私人付款人覆蓋範圍以及有針對性的地理擴張機會，推動持續高於市場的成長。

And with restorative therapies, we're focused on capitalizing on our clear momentum with exogen and driving sustained profitable growth. With the market growth rate in the low -ingle digits, we believe we can grow exogen annually in the low to mid-single digits, and the team is working hard to achieve the upper end of that range.

透過恢復性療法，我們專注於利用我們在外生療法方面的明顯勢頭並推動持續的盈利增長。由於市場成長率處於低個位數，我們相信我們可以使外部業務每年實現低到中等個位數的成長，並且團隊正在努力實現該範圍的上限。

Our second focus area is to continue to improve our profitability. Last year, we demonstrated how the powerful combination of our pure leading gross margin with above market growth can drive meaningful margin accretion. We will focus on preserving our high gross margin with supply chain improvements, and we remain committed to growing our bottom line faster than our top line. Consequently, as we have already mentioned publicly, our goal is to deliver 100 basis points of incremental adjusted EBITDA margin improvement in 2025.

我們的第二個重點領域是繼續提高獲利能力。去年，我們展示瞭如何透過純粹的領先毛利率與高於市場的成長的強大組合來推動利潤率的顯著成長。我們將專注於透過改善供應鏈來維持高毛利率，並繼續致力於使我們的底線成長速度快於頂線成長速度。因此，正如我們已經公開提到的那樣，我們的目標是到 2025 年實現增量調整後 EBITDA 利潤率提高 100 個基點。

And our third priority for 2025 is continuing to accelerate free cash flow. In 2024, our cash from operations more than doubled, and we believe that we have -- that we will further accelerate cash generation and have the opportunity for it to nearly double again in 2025. We plan to achieve this by increasing EBITDA, reducing one-time cash costs, managing our working capital, especially inventory, more efficiently and lowering interest expense.

我們 2025 年的第三大重點是繼續加速自由現金流。2024 年，我們的經營現金流增加了一倍多，我們相信，我們將進一步加快現金產生速度，並有機會在 2025 年再次翻倍。我們計劃透過提高 EBITDA、降低一次性現金成本、更有效地管理營運資金（尤其是庫存）以及降低利息支出來實現這一目標。

In conclusion, we made significant progress in transforming Bioventus in 2024, and we exceeded our financial expectations, but this is just the start of what we can achieve. I'm confident that with strong focus and disciplined execution, we will continue to advance our business and create significant shareholder value.

總而言之，我們在 2024 年轉型 Bioventus 方面取得了重大進展，並且超越了我們的財務預期，但這只是我們所能取得成就的開始。我相信，憑藉高度的專注和嚴謹的執行，我們將繼續推動業務並創造巨大的股東價值。

I'll turn the call over to Mark.

我會把電話轉給馬克。

Thank you, Rob. And good morning, everyone. Let me begin by saying I am very proud of our ability to deliver on our 2024 financial commitments and the progress our team made to continuously improve our business.

謝謝你，羅布。大家早安。首先，我要說的是，我為我們能夠履行 2024 年的財務承諾以及我們的團隊在不斷改善業務方面取得的進展感到非常自豪。

Turning to our results for the fourth quarter, revenue of $154 million increased 14%, and adjusted EBITDA of over $28 million grew $6 million reflecting a 28% increase compared to the prior year.

回顧我們第四季的業績，營收 1.54 億美元，成長 14%，調整後 EBITDA 超過 2,800 萬美元，成長 600 萬美元，較上年成長 28%。

Surgical solutions revenue accelerated by 18%. For the second consecutive quarter, our ultrasonic's revenue advanced by more than 20%. With respect to bone graft substitutes, we are on track to add new customers as we onboard new distributors while at the same time, we are increasing the productivity of our existing distributors. As a result, we expect BGS to return to double-digit growth in the second half of 2025.

外科解決方案收入增加了18％。連續第二個季度，我們的超音波收入成長了 20% 以上。對於骨移植替代品，我們正致力於透過吸收新經銷商來增加新客戶，同時我們也正在提高現有經銷商的生產力。因此，我們預計 BGS 將在 2025 年下半年恢復兩位數成長。

In pain treatments, positive momentum continued as revenue increased 17% compared to the prior year. As we previously mentioned, DUROLANE's strong brand recognition and clinical differentiation, along with the strength of our team's commercial execution is enabling us to gain share and grow faster than the overall market for single injection treatments.

在疼痛治療領域，積極動能持續，收入較前一年成長 17%。正如我們之前提到的，DUROLANE 強大的品牌認知度和臨床差異化，加上我們團隊強大的商業執行力，使我們能夠獲得市場份額，並且比單次注射治療的整體市場增長更快。

Sales for the fourth quarter also benefited by up to $2 million due to a higher year-end orders by certain distributors. Consequently, our first quarter 2025 growth expectations for HA will have this headwind as these distributors lower their inventory to normal levels.

由於某些分銷商的年底訂單增加，第四季的銷售額也增加了 200 萬美元。因此，由於這些分銷商將庫存降至正常水平，我們對 HA 2025 年第一季的成長預期將面臨阻力。

Shifting to restorative therapies, sales were flat compared to the prior year as growth in exogen was offset by a decline in advanced rehabilitation while we divested in the fourth quarter. Going forward, we remain optimistic about our ability to drive consistent growth in exogen through our demonstrated improvement in sales force execution and the impact of additional resources to assist our sales team.

轉向恢復性療法後，銷售額與上年持平，因為外生性療法的增長被高級康復的下降所抵消，而我們在第四季度進行了剝離。展望未來，我們仍然對透過銷售隊伍執行力的明顯改善和額外資源對銷售團隊的協助作用來推動外部業務持續成長的能力持樂觀態度。

Finally, our international segment grew 11% compared to the prior year as we benefited from shipments in our ultrasonic business that were delayed earlier in the year. Moving down the income statement, adjusted gross margin of 74% expanded 230 basis points compared to last year as we experienced transitory inventory write-offs in the prior year.

最後，我們的國際業務較上年增長了 11%，這得益於我們今年稍早延遲的超音波業務的出貨量。沿著損益表往下看，調整後的毛利率為 74%，較去年同期擴大了 230 個基點，因為我們在上一年經歷了暫時性庫存註銷。

In line with our expectations, adjusted total operating expenses rose by nearly $10 million compared to the prior year. As we increase investment and strategic growth initiatives and spending normalized from the reduced levels we operated with a year ago.

根據我們的預期，調整後的總營運費用與前一年相比增加了近 1000 萬美元。隨著我們增加投資和策略性成長計劃，支出已從一年前的降低水準恢復正常。

Now, turning to our bottom line financial metrics. Adjusted operating income increased 34% to $26 million from $20 million in the prior year. Adjusted net income of $13 million more than doubled compared to the prior year, and adjusted earnings per share were $0.15 for the quarter, almost more than doubled compared to the prior year.

現在，我們來談談我們的底線財務指標。調整後的營業收入從上年的 2,000 萬美元成長 34% 至 2,600 萬美元。調整後的淨收入為 1,300 萬美元，較上年增長一倍多，本季調整後的每股收益為 0.15 美元，較上年增長近一倍多。

Now, shifting to the balance sheet and cash flow statement. We ended the quarter with $42 million of cash on hand and $336 million of outstanding debt. During the quarter, we repaid $48 million of debt from free cash flow and acquisition proceeds. As anticipated, we ended the year with no amount drawn on a revolving credit facility.

現在，轉到資產負債表和現金流量表。本季末，我們手頭上有 4,200 萬美元現金，未償債務為 3.36 億美元。本季度，我們利用自由現金流和收購收益償還了 4,800 萬美元的債務。正如預期的那樣，我們在年底沒有提取任何循環信貸額度。

Operating cash flow represented an inflow of $19 million which was an 86% higher than the fourth quarter last year. We forecast further accelerating our cash generation in 2025 and expect free cash flow to nearly double compared to 2024.

經營現金流流入 1,900 萬美元，比去年第四季高出 86%。我們預測 2025 年我們的現金創造速度將進一步加快，預計自由現金流將比 2024 年增加近一倍。

Through adjusted EBITDA growth and debt paydown, we continue to lower our net leverage ratio, and as Rob mentioned, our leverage ratio at the end of the year, as defined in our credit agreements was just above 3 times net debt to adjusted EBITDA, and we have increased our liquidity meaningfully. We are confident in our ability to continue to reduce our net leverage and now project our leverage to be below 2.5 times by the end of 2025.

透過調整後的 EBITDA 成長和債務償還，我們繼續降低淨槓桿率，正如 Rob 所提到的，我們年底的槓桿率（根據我們的信貸協議定義）略高於淨債務與調整後 EBITDA 的 3 倍，並且我們的流動性已顯著提高。我們有信心繼續降低淨槓桿率，目前預計到 2025 年底我們的槓桿率將降至 2.5 倍以下。

Finally, let me lay out our 2025 financial guidance and provide some additional color on our guidance for the year. Based on current trends in our business, we expect net sales to be in the range of $560 million to $570 million reflecting above market organic growth of approximately 6% to 8%. Organic growth adjusts for the vestiture of the advanced rehabilitation business that generated approximately $45.4 million of revenue in 2024.

最後，讓我闡述我們 2025 年的財務指導，並為我們今年的指導提供一些額外的說明。根據我們目前的業務趨勢，我們預計淨銷售額將在 5.6 億美元至 5.7 億美元之間，高於市場有機成長率約 6% 至 8%。有機成長根據先進康復業務的資產進行了調整，該業務在 2024 年創造了約 4,540 萬美元的收入。

For the year, we expect adjusted EBITDA to be between $112 million and $116 million. This represents growth in the range of 8% to 12% when adjusting for the impact of advanced rehabilitation business, which generated approximately $5 million of adjusted EBITDA in 2024.

我們預計今年調整後的 EBITDA 將在 1.12 億美元至 1.16 億美元之間。考慮到高級復健業務的影響，這意味著成長率在 8% 至 12% 之間，高級復健業務在 2024 年產生了約 500 萬美元的調整後 EBITDA。

Finally, we expect adjusted earnings per share of $0.64 to $0.68, an increase of 31% to 39%. In line with the cadence established in prior years, we expect revenue and adjusted EBITDA to be the lowest in the first quarter of 2025 and to be the highest in the fourth quarter.

最後，我們預計調整後每股收益為 0.64 美元至 0.68 美元，成長 31% 至 39%。按照前幾年確定的節奏，我們預計 2025 年第一季的營收和調整後 EBITDA 最低，第四季最高。

To elaborate further, we expect first quarter organic revenue growth to be below our implied guidance range of 6% to 8% given the strong finish in Q4, primarily in the AJ business as we mentioned earlier, and a difficult comparison to prior year, including two fewer selling days. In giving the strong adjusted EBITDA performance in the first half of 2024, the timing of our growth investments and the return to normalized spending levels across our business, our projected adjusted EBITDA is expected to be lower than the prior year during the first half of 2025 and significantly higher in the second half of 2025.

進一步闡述，我們預計第一季有機收入成長將低於我們 6% 至 8% 的隱含指導範圍，因為第四季度表現強勁，主要是我們之前提到的 AJ 業務，而且與去年同期相比存在困難，包括銷售日減少了兩天。鑑於 2024 年上半年強勁的調整後 EBITDA 表現、我們成長投資的時機以及整個業務恢復正常支出水平，我們預計 2025 年上半年的調整後 EBITDA 將低於上年，而 2025 年下半年的調整後 EBITDA 將大幅上升。

Lastly, as we accelerate investments during the year and as revenue increases, we expect to see a slight increase in quarterly operating expenses throughout the year. In closing, the execution of our business plan over the past year has significantly strengthened our growth, profitability, and liquidity position. Looking forward, we are excited about the long-term potential as we strive to become a $1 billion high growth, high margin, high cash flow medical device company.

最後，隨著我們年內投資的加速和收入的增加，我們預計全年季度營運費用將略有增加。最後，過去一年我們業務計劃的執行大大增強了我們的成長、獲利能力和流動性狀況。展望未來，我們對長期潛力感到興奮，我們致力於成為一家價值 10 億美元的高成長、高利潤、高現金流醫療器材公司。

Operator, please open the line for questions.

接線員，請打開熱線以回答問題。

(Operator Instructions)

（操作員指示）

Chase Knickerbocker, Craig-Hallum.

蔡斯·尼克博克、克雷格·哈勒姆。

Can we just, maybe for Mark, maybe just walk through the guidance assumptions by segment in '25. Sorry if I missed that, but should we be thinking about it kind of consistent with kind of prior messaging, call it mid to high-single digits in pain, which was kind of like longer term, how we're thinking about the business. Low-double digits and surgical and then, call it low-single digits and restorative maybe just give us a specific update there, what the assumptions are.

我們是否可以僅為馬克介紹一下 25 年各細分領域的指導假設。抱歉，如果我錯過了，但我們是否應該以與之前的信息一致的方式考慮它，稱其為中高個位數的痛苦，這有點像長期的，我們如何看待業務。低兩位數和手術，然後，稱之為低個位數和修復，也許只是給我們一個具體的更新，假設是什麼。

Really, we focus on 2025, the 4-year guidance we feel really good about the midpoint of our guidance of 7%, which is clearly above market. And obviously, we had a great year in 2024 where it was significantly above market as well.

實際上，我們關注的是 2025 年，我們對 4 年指導的中點 7% 感到非常滿意，這明顯高於市場水準。顯然，2024 年是我們表現出色的一年，其業績也遠高於市場水準。

I think -- when we think about it and break it down by segment, it's pretty consistent with what you said, we're looking from a pain treatments above market growth, when we look at our restorative therapies, segment, that's a low-single digits, and then we look at our strong surgical portfolio with both ultrasonics and BGS, those are expected to be double digit growth as well. So we really feel good about the short-term growth drivers and the longer-term growth drivers that we have in the business and are very positioned in a -- positioned very well to drive the above market growth in 2025.

我認為 - 當我們考慮它並按細分市場進行細分時，它與您所說的非常一致，我們從疼痛治療市場的增長來看，當我們看我們的恢復性療法細分市場時，這是一個低個位數，然後我們看看我們強大的外科產品組合，包括超聲波和 BGS，預計它們也將實現兩位數的增長。因此，我們對業務中的短期成長動力和長期成長動力感到非常滿意，並且我們處於非常有利的位置，可以推動 2025 年上述市場的成長。

And Rob, if we look at pain, the performance in that business is far away better than peers, and you you got competitors kind of shifting strategy, pricing and such things. So I guess just how should we think about HA and DUROLANE performance in 2025? I mean, are you seeing any impact from some of these market shifts so far in the year, or are you pretty insulated at this point with your contract and access position with DUROLANE?

羅布，如果我們看一下痛點，就會發現該業務的表現遠遠好於同行，而且競爭對手的策略、定價等等都在改變。那麼我想我們應該如何看待 HA 和 DUROLANE 在 2025 年的表現呢？我的意思是，今年到目前為止，您是否看到了這些市場變化帶來的影響，或者說，由於您與 DUROLANE 簽訂了合約並處於准入地位，目前您是否沒有受到太大影響？

We feel great about the HA business, what our guidance implies is growing above the market roughly 2X again in 2025. And keep in mind, that's very volume-based. As it relates to price, we're very focused on price. We're analytical, we're strategic, and we're very disciplined with our pricing and we closely monitor what our competitors are doing as well.

我們對 HA 業務充滿信心，我們的指導意味著到 2025 年其成長率將再次超過市場水準約 2 倍。請記住，這是基於數量的。由於與價格有關，我們非常關注價格。我們善於分析，具有策略眼光，對定價非常嚴格，並且密切注意競爭對手的動向。

At this point for 2025, we expect that our growth is going to be driven by volume again and that price will be fairly stable when you consider the entire year, so feel good about the business. And as you alluded to there, the reason why we're in that position is because of the strong combination of clinical differentiation. And the awareness of that just continues to spread along with our large dedicated commercial team that every day is focused on this business. And then last, that strong private payer contract base that we have. So again, feeling good about generating that above market growth driven by volume.

就 2025 年而言，我們預計我們的成長將再次由銷售驅動，而且從全年來看價格將相當穩定，因此對業務充滿信心。正如您所提到的，我們之所以處於這種地位，是因為強大的臨床區分組合。隨著我們龐大的專業商業團隊每天專注於這項業務，這種意識也不斷傳播。最後，我們擁有強大的私人付款人合約基礎。因此，再次，我們對由銷量推動的高於市場的成長感到高興。

And just last for me, 3x leverage now, 2.5x by the end of the year. I mean, when should investors be thinking about kind of capital allocation priority shifting, and how do you see that kind of developing over the next call at 18 months?

最後，對我來說，現在是 3 倍槓桿，到年底將是 2.5 倍。我的意思是，投資者應該何時考慮資本配置優先順序的轉變，以及您認為在接下來的 18 個月內這種轉變將如何發展？

First, let me talk broadly about that we're really pleased with continuing to to deliver on the commitment that we've mentioned to you in the beginning of last year, and which is to lower our debt and now, that gives us this both flexibility both strategically and financially.

首先，讓我廣泛地談談，我們非常高興能夠繼續履行我們在去年年初向您提到的承諾，即降低我們的債務，這為我們在戰略和財務上提供了靈活性。

It's a -- and we like to, as I've said before too, we like the potential of our current diverse portfolio to drive really exciting growth in the short, mid and long term. So we have this combination of increasing financial flexibility and at the same time that we can be very selective with any portfolio expansion opportunities we have, which is a great combination. So that means that, as it relates to the portfolio, we'll pursue something only if it fits within our portfolio strategy perfectly.

正如我之前所說，我們喜歡我們當前多元化投資組合的潛力，以在短期、中期和長期推動真正令人興奮的成長。因此，我們既可以提高財務靈活性，同時又可以非常有選擇性地選擇我們擁有的任何投資組合擴張機會，這是一個很好的組合。所以這意味著，就投資組合而言，只有當它完全符合我們的投資組合策略時，我們才會追求它。

Mark, anything to add to that?

馬克，還有什麼要補充的嗎？

I think that's perfectly set, and right now, we just demonstrates the progress that we have made in the business with the strengthening and acceleration of cash flow, it gives us lots of options. But you know, we're still remaining very focused on executing the business and delivering on the goals we have, and we'll continue to evaluate opportunities that come forward with a very critical eye and understanding that leverages the footprint that we already have in the -- with our sales forces and those call points.

我認為這是完美的安排，現在，我們只是展示了我們在業務上的進展，現金流的加強和加速，它給了我們很多選擇。但你知道，我們仍然非常專注於執行業務和實現我們的目標，我們將繼續以非常挑剔的眼光和理解來評估出現的機會，利用我們在銷售隊伍和那些呼叫點中已經擁有的影響力。

Robbie Marcus, JP Morgan.

摩根大通的羅比·馬庫斯。

Hi, this is actually [Lilian Brabi]. Thanks for reaching the question. You talked a bit about some of those transitory supply challenges impacting the bone graft substitute business. So how are you thinking about that trending this year? What's assumed in guidance and how much confidence and visibility do you have to get into that double-digit growth in the back half?

嗨，這實際上是[莉蓮·布拉比]。感謝您提出這個問題。您談到了一些影響骨移植替代業務的暫時供應挑戰。那麼您如何看待今年的趨勢？指導中假設了什麼？您對下半年實現兩位數成長有多大的信心和預見性？

It would feel really good about the bone graft substitutes business. It faced challenges, as we mentioned in the middle of last year because of the supply challenge, which then because of that, we slowed our onboarding of new customers through distributor agents. And as we mentioned in the last call, we overcame those supply challenges and have been driving new customers since that time. So still ramping up with that. We feel really good about that.

骨移植替代品業務確實令人欣喜。正如我們去年年中提到的那樣，它面臨著挑戰​​，因為供應存在挑戰，因此，我們放慢了透過分銷代理商引入新客戶的速度。正如我們在上次電話會議中提到的那樣，我們克服了這些供應挑戰，並且從那時起一直在吸引新客戶。因此我們仍在繼續努力。我們對此感到非常高興。

At the same time, what we saw in the fourth quarter was increased productivity from our existing distributor agents. So we have the combination of both productivity from existing and ramping up with new ones. So, and then, from a guidance standpoint, as Mark alluded to, for overall for the surgical business, we expect a good double-digit growth both in the in the short and the long term for that business.

同時，我們在第四季度看到現有分銷代理商的生產力有所提高。因此，我們既能利用現有生產力，又能透過新生產力來提高生產力。因此，從指導的角度來看，正如馬克所提到的那樣，對於整個外科業務而言，我們預計該業務在短期和長期內都將實現良好的兩位數成長。

And then it seems like exogen could really be at a turning point now. So could you talk about some of the trends that you've been seeing there now that the business has sort of stabilized and the confidence that you have in that business staying in growth mode in 2025?

現在看來，exogen 可能真的正處於一個轉折點。那麼，您能否談談現在您看到的一些趨勢，即業務已經趨於穩定，以及您對該業務在 2025 年保持成長模式的信心？

Yeah, we're really excited about the exogen business. This is a great technology. Clinical benefits are very proven, and look, it's been declining for 5 years. And as we mentioned before, it's -- that was not because of the market, it was because Bioventus had deprioritized the business. And last year, what we did was bring our focus back to the business and also made some strategic investments and we saw the impact from that. And the investments were rather small and the team has just done a fantastic job with that business. So we feel like we're in control of this business.

是的，我們對外源性業務非常感興趣。這是一項偉大的技術。臨床益處已得到證實，但看看，它已經下降了 5 年。正如我們之前提到的，這並不是因為市場，而是因為 Bioventus 降低了該業務的優先順序。去年，我們重新將重點放在業務上，並進行了一些策略性投資，我們看到了其帶來的影響。雖然投資額很小，但團隊在這項業務上卻做得非常出色。因此我們感覺我們掌控著這項業務。

We turned it around, as I mentioned, to the 7% growth last year and now with the market growing in the low single digits, we -- as we mentioned, we expect it to grow in the low to mid-single digits. And of course, we're going to work hard to achieve the upper end of that range. So, really this one is just about maintaining the focus that we've restored to the business and and doing the fundamentals really well, and with that, we feel like we're in control of continuing to drive a profitable growth with that business.

正如我所提到的，我們扭轉了去年 7% 的成長率，現在市場成長率處於低個位數，我們——正如我們所提到的，我們預計成長率將處於低到中等個位數。當然，我們會努力實現這一範圍的上限。因此，實際上，我們只需要保持對業務的關注，並做好基本面工作，這樣，我們覺得我們能夠繼續推動該業務的獲利成長。

Caitlin Cronin, Canaccord Genuity.

凱特琳‧克羅寧 (Caitlin Cronin)，Canaccord Genuity。

If you could just maybe break down within pain treatments, the expectations within your three products, so how the growth is expected to trend there?

如果您可以細分疼痛治療領域，那麼您對這三種產品的預期成長趨勢如何？

Within pain treatments, obviously, our portfolio and which significant percentage of our revenue is in DUROLANE which we continue to be really successful with. One, the market moves that way. It's moving towards a single injection.

在疼痛治療領域，顯然我們的產品組合以及很大一部分收入都來自 DUROLANE，我們憑藉該產品繼續取得了巨大的成功。一、市場就是這樣運作的。它正在向單次注射邁進。

We're clinically differentiated with that product, the sales force that we have that drives and sells around the private payer contracts, which we really feel we have a strength of and a little bit different than some of the competitors out there.

我們在臨床上與該產品有所區別，我們擁有一支圍繞私人付款人合約推動和銷售的銷售隊伍，我們確實覺得我們在這方面有優勢，並且與一些競爭對手略有不同。

We look (inaudible), that's a lot more price sensitive product than than what DUROLANE is and we've continued to be very disciplined and measured in the opportunities that we engage in with that. So it's a -- it's more declining from an overall revenue growth year over year, but part of that is moving (inaudible) as well.

我們認為（聽不清楚），這是比 DUROLANE 更價格敏感的產品，而且我們在參與其中的機會上一直非常嚴謹和謹慎。因此，從整體營收成長來看，年減幅度更大，但部分收入也在變動（聽不清楚）。

And so, that's where some of the over this is. The news for 2025 or 2024, but it is a little more price sensitive, but we continue to participate in that market and have some headwinds there. But overall, we still feel strong about the portfolio and so parts, continues to be a steadfast product of year over year and continues to be a strong part of the portfolio.

這就是部分內容所在。這是 2025 年或 2024 年的消息，但它對價格更敏感一些，但我們將繼續參與該市場並在那裡遇到一些阻力。但總體而言，我們仍然對投資組合及其各部分感到強勁，它們將繼續成為年復一年的堅定產品，並繼續成為投資組合中強有力的組成部分。

Just to clarify there, (inaudible) transitioning into DUROLANE just for clarity.

只是為了澄清一下，（聽不清楚）為了清楚起見，轉換為 DUROLANE。

Oh sorry, yes, you're saying the revenue from that over time kind of just transitioning more into sterling.

哦，抱歉，是的，您說的是隨著時間的推移，這些收入會更多地轉換為英鎊。

Yeah, just in line with the overall category of shifting to single injection, but also our efforts internally are to continue to shift to DUROLANE just given again the very strong combination that we have with that business.

是的，這與轉向單次注射的整體類別一致，而且我們內部的努力也是繼續轉向 DUROLANE，因為我們與該業務有著非常強大的結合。

And then Rob, just with your expertise, you've really highlighted OUS as an opportunity going forward, any more color and how you will drive OUS expansion in 2025 and beyond?

然後 Rob，憑藉您的專業知識，您確實強調了 OUS 是一個未來的機遇，還有什麼具體細節嗎？您將如何推動 OUS 在 2025 年及以後的擴張？

Yeah, we continue to be really optimistic about the international business. We're bringing in a new person to lead our international business. We'll join shortly to leverage the big opportunity that's in front of us. But at the same time, what I recognized last year is that it's going to take more work and more time than just 2024 alone, so very optimistic about it.

是的，我們繼續對國際業務保持樂觀。我們正在聘請一位新人來領導我們的國際業務。我們很快就會加入，以利用擺在我們面前的巨大機會。但同時，我去年就意識到，這將需要付出更多的努力和時間，而不僅僅是 2024 年，因此對此非常樂觀。

What we're going to do is be quite targeted in our geographic expansion internationally. I mentioned a number of times that we want to make high ROI investments and with international, that's critical to make sure we understand the markets, which businesses are more most eligible for those markets and what our specific go to market strategy is before we start to put the investments in place to drive that accelerated growth. So overall, optimistic about it and excited for the new leader to start as well.

我們要做的是在國際地理擴張方面非常有針對性。我多次提到，我們希望進行高投資報酬率的投資，對於國際市場而言，在我們開始進行投資以推動加速成長之前，確保我們了解市場、哪些企業最適合這些市場以及我們具體的市場進入策略是什麼至關重要。所以總的來說，我對此感到樂觀，並對新領導人的上任感到興奮。

And then just one more for me, on ultrasonics, you talked about expanding to general and neurosurgery. What's the timeline for those opportunities?

然後我再問一個問題，關於超音波，您談到了擴展到一般外科和神經外科。這些機會的時間表是怎樣的？

Yeah, well, we already have the portfolio for both neuro and for general surgery, and we have a presence in those segments right now. But what we've been primarily focused on in this is the spine segment, given both its size and In our bone cutting techno technology. So just to make sure that we don't dilute our resources, we've been mostly focused on that segment.

是的，我們已經擁有神經外科和一般外科的產品組合，而且我們目前在這些領域都有業務。但我們主要關注的是脊椎部分，考慮到它的大小和我們的骨切割技術。因此，為了確保我們的資源不會分散，我們主要集中在該領域。

We started to introduce to the team this year the opportunities that exist within neuro and general surgery. And so, we'll start penetrating those segments, but again, this will be the number one priority for us by far will remain in the spine segment. What I would expect is that in the outer years and 2026 and beyond that we ramp up more seriously in those segments.

今年我們開始向團隊介紹神經外科和一般外科領域存在的機會。因此，我們將開始滲透到這些領域，但同樣，這將是我們迄今為止的首要任務，仍將集中在脊椎領域。我預計，在未來幾年以及 2026 年及以後，我們將在這些領域取得更大進展。

Thank you. This concludes our question-and-answer session. I would like to turn the conference back over to Rob Claypoole for any closing remarks.

謝謝。我們的問答環節到此結束。我想將會議交還給 Rob Claypoole 並請他做最後發言。

Okay, thanks, everyone, for your interest in Bioventus. Once again, we delivered a strong performance throughout our business in the fourth quarter, and we are confident in our ability to build on our momentum to deliver above market revenue growth, improve profitability, and accelerate our cash flow to create significant shareholder value. Thanks for joining today.

好的，謝謝大家對 Bioventus 的關注。我們的整個業務在第四季度再次表現強勁，我們有信心憑藉這一勢頭實現高於市場的收入增長、提高盈利能力並加速現金流，從而為股東創造顯著價值。感謝您今天的加入。

The conference has 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示，您現在可以斷開連接了。