Conmed Corp (CNMD) 2023 Q4 法說會逐字稿

Thank you for standing by and before the conference call begins, let me remind you that during this call, management will be making comments and statements regarding its financial outlook. It's plans and objectives. These statements represent the forward-looking statements that involve risks and uncertainties as those terms are defined under the federal securities laws.

感謝您的耐心等待，在電話會議開始之前，請允許我提醒您，在這次電話會議期間，管理層將就其財務前景發表評論和聲明。這是計劃和目標。這些陳述代表前瞻性陳述，涉及風險和不確定性，這些術語是根據聯邦證券法定義的。

Investors are cautioned that any such forward-looking statements are not guarantees of future events, performance or results. The company's actual results may differ materially from it current expectations. Please refer to the risks and other uncertainties disclosed under the forward-looking information in today's press release as well as the company's SEC filings for more details on the risks and uncertainties that may cause actual results to differ materially.

投資者請注意，任何此類前瞻性陳述均不能保證未來事件、績效或結果。公司的實際結果可能與目前預期有重大差異。請參閱今天新聞稿中前瞻性資訊中揭露的風險和其他不確定性以及公司向 SEC 提交的文件，以了解可能導致實際結果出現重大差異的風險和不確定性的更多詳細資訊。

Company DISCLAIMER any obligation to update any forward-looking statements that may be discussed during this call, except as may be required by applicable law. You will also hear management refer to non-GAAP or adjusted measurements during this discussion. While these figures are not a substitute for GAAP measurements, management uses these figures to aid in monitoring the company's ongoing financial performance from quarter-to-quarter and year-to-year on a regular basis and for benchmarking against other medical technology companies, adjusted net income and adjusted earnings per share measure the income on the Company, excluding credits or charges that are considered by the company to be special or outside of its normal ongoing operations. These adjustment items are specified in the reconciliation supporting the company's earnings releases posted on the company's website With these required announcements completed.

本公司免責聲明任何更新本次電話會議期間可能討論的任何前瞻性陳述的義務，除非適用法律要求。在這次討論中，您還將聽到管理階層提到非公認會計準則或調整後的衡量標準。雖然這些數字不能取代 GAAP 衡量標準，但管理層使用這些數字來幫助定期監控公司每季和每年的持續財務業績，並與其他醫療技術公司進行基準比較，調整後淨利潤和調整後每股收益衡量公司的收入，不包括公司認為特殊或正常持續營運以外的信貸或費用。這些調整項目在公司網站上發布的支援公司收益發布的調節表中指定，並完成了這些必要的公告。

I will now turn the call over to Curt Hartman, CONMED Chair of the Board, President and Chief Executive Officer, for opening remarks. Mr. Hartman.

我現在將會議轉交給 CONMED 董事會主席、總裁兼執行長 Curt Hartman 致開幕詞。哈特曼先生。

Thank you, Jonathan. Good afternoon, and thank you for joining us for CONMED fourth quarter and Full Year 2023 earnings call. With me on the call is Todd Garner, Executive Vice President and Chief Financial Officer. Today, I'll provide a brief overview of the financial and operating performance for the fourth quarter and the full year. Todd will then provide a more detailed analysis of our financial performance and discuss our 2024 financial guidance. After that, we'll open the call to your questions.

謝謝你，喬納森。下午好，感謝您參加 CONMED 第四季和 2023 年全年財報電話會議。與我一起參加電話會議的是執行副總裁兼財務長 Todd Garner。今天，我將簡要概述第四季度和全年的財務和營運業績。然後，托德將對我們的財務表現進行更詳細的分析，並討論我們的 2024 年財務指導。之後，我們將打開電話回答您的問題。

Overall, I'm pleased with our fourth quarter results, which delivered record revenue for Cognex. Total sales for the fourth quarter were $327 million, representing a year-over-year increase of 30% as reported and an increase of 32% in constant currency.

總體而言，我對我們第四季度的業績感到滿意，該業績為康耐視創造了創紀錄的收入。第四季總銷售額為 3.27 億美元，年增 30%，以固定匯率計算成長 32%。

These growth rates are obviously aided by the fourth quarter 2022 warehouse disruption, which impacted each part of our business differently in the fourth quarter of 2022. Fourth quarter earnings delivered GAAP net income of $33.1 million, an increase of 24% over net income of $26.6 million in the fourth quarter of 2022. Excluding special items that affected comparability, our adjusted net income was $33.2 million and our adjusted diluted net earnings per share was $1.6.

這些成長率顯然得益於 2022 年第四季的倉庫中斷，這對 2022 年第四季我們業務的各個部分產生了不同的影響。第四季收益實現 GAAP 淨利 3,310 萬美元，比 2022 年第四季 2,660 萬美元的淨利潤增長 24%。不包括影響可比性的特殊項目，我們的調整後淨利潤為 3,320 萬美元，調整後攤薄每股淨利潤為 1.6 美元。

For the full year, sales reached a new record of $1.245 billion, representing a year-over-year increase of 19% as reported and 21% in constant currency. 2023 was a year of balanced growth. When you look at the full year growth rates across domestic and international General Surgery and Orthopedics and single use and capital.

全年銷售額創下 12.45 億美元的新紀錄，按報告數據年增 19%，以固定匯率計算年增 21%。 2023年是平衡成長的一年。當您查看國內和國際普通外科和骨科以及一次性使用和資本的全年增長率。

My perspective is that this speaks to the underlying strength of the entire product portfolio that has been built strategically over time. 2023 GAAP net income totaled $64.5 million compared to a net loss of $80.6 million in 2022. Excluding special items that affected comparability our adjusted net income of $108.3 million increased 27% year over year, and our adjusted diluted net earnings per share of $3.45 increased 30% year-over-year.

我的觀點是，這說明了隨著時間的推移策略性建構的整個產品組合的潛在優勢。2023 年 GAAP 淨利總計 6,450 萬美元，而 2022 年淨虧損為 8,060 萬美元。排除影響可比性的特殊項目，我們的調整後淨利潤為 1.083 億美元，年增 27%，調整後攤薄每股淨利潤為 3.45 美元，年增 30%。

Looking back at 2023, I'm very proud of both the top and bottom line performance, which exceeded and finished at the top end of the original respective 2023 guidance early in the year. We quickly remediated the warehouse issues from late 2022, and I can confidently say our global distribution strategy has never been clear.

回顧 2023 年，我對營收和淨利潤的表現感到非常自豪，它們超出了年初各自的 2023 年原始指導的上限。我們從 2022 年底開始就迅速修復了倉庫問題，我可以自信地說，我們的全球分銷策略從未明確過。

Our 2022 acquisitions performed well with into bones now conduit Foot and Ankle delivering double digit growth for the full year, while absorbing the growing pains of supplier integration and leadership transitions. So common and private acquisitions, Bayou Bridge platform is a game changer and exceeded our expectations.

我們 2022 年的收購表現良好，現在，Foot and Ankle 實現了全年兩位數的成長，同時吸收了供應商整合和領導層過渡帶來的陣痛。如此常見且私人的收購，Bayou Bridge 平台改變了遊戲規則，超出了我們的預期。

And as important has a great trajectory as we expand the market reach through sales, channel expansion and geographic registrations. Overall, the entire portfolio is strong. And in 2024, we expect the introduction of several new products across each of our businesses. And while I usually reserve the financial detail analysis for Todd, I'm proud of the team for driving our leverage ratio down to 4.1 times as our increased focus on working capital and overall asset management continues to improve.

同樣重要的是，我們透過銷售、通路擴張和地理註冊來擴大市場範圍，有著良好的發展軌跡。總體而言，整個投資組合都很強勁。到 2024 年，我們預計每個業務部門都會推出多種新產品。雖然我通常將財務細節分析留給托德，但隨著我們對營運資本和整體資產管理的不斷改善，我們的槓桿率已降至 4.1 倍，我為團隊感到自豪。

In summary, 2023 was a great year for Continental. Looking forward, I could not be more confident in our prospects to continue delivering top-line growth and leveraged earnings growth driven by clinically differentiated solutions across our business. This stems from my confidence that we have a talented global team armed with an innovative, high-growth portfolio, which was built through a disciplined combination of organic and inorganic development across both our General Surgery and Orthopedics categories.

總而言之，2023 年對大陸航空來說是偉大的一年。展望未來，我對我們的前景充滿信心，能夠在我們整個業務的臨床差異化解決方案的推動下繼續實現營收成長和槓桿收益成長。這源於我的信心，我們擁有一支才華橫溢的全球團隊，擁有創新、高成長的產品組合，該產品組合是透過普通外科和骨科類別的有機和無機開發的嚴格結合而建立的。

The strategic outlook for Conwed remains strong and this will benefit patients, customers, employees and shareholders in the quarters and years ahead.

Conwed 的策略前景仍然強勁，這將使患者、客戶、員工和股東在未來幾季和幾年受益。

With that, I'll turn the call over to Todd, who will provide a more detailed analysis of our financial performance and to discuss our 2024 financial guidance. Todd?

接下來，我會將電話轉給托德，他將對我們的財務表現進行更詳細的分析，並討論我們的 2024 年財務指導。托德？

Thank you, Curt. All sales growth numbers I reference today will be given in constant currency. The reconciliation to GAAP numbers is included in our press release. As usual, we have included an investor deck on our website that summarizes the results of the quarter of the year and our updated guidance.

謝謝你，柯特。我今天引用的所有銷售成長數字都將以固定匯率給出。我們的新聞稿中包含了與 GAAP 數據的對帳。像往常一樣，我們在網站上提供了投資者資料，總結了本季的業績和我們更新的指導。

For the fourth quarter of 2023, our total sales increased 31.5%. As a reminder, during the fourth quarter of 2022, we were dealing with our warehouse software implementation that affected our ability to ship product for Q4. Our sales in the US increased 33.3% versus the prior year quarter, and our international sales grew 29.0%.

2023 年第四季度，我們的總銷售額成長了 31.5%。提醒一下，在 2022 年第四季度，我們正在處理倉庫軟體實施問題，這影響了我們第四季度運送產品的能力。我們在美國的銷售額比去年同期成長了 33.3%，國際銷售額成長了 29.0%。

Worldwide Orthopedics revenue grew 19.4% in the fourth quarter. In the US orthopaedic sales grew 6.0%. And internationally orthopedic sales increased 29.8%. As we talked about last quarter, supply constraints in our domestic orthopedic business, including our MTF allograft tissue, kept us from being on offense as much as we would like the MTS. supply returned to normal during the fourth quarter. and we expect to be able to move more fully to offense on the rest of the orthopedics portfolio by the end of Q1 2024.

第四季全球骨科營收成長 19.4%。在美國，骨科銷售額成長了 6.0%。國際骨科銷售額成長 29.8%。正如我們上季度談到的，我們國內骨科業務（包括我們的 MTF 同種異體移植組織）的供應限制使我們無法像我們希望的 MTS 那樣進攻。第四季供應恢復正常。我們預計到 2024 年第一季末能夠更全面地進攻骨科產品組合的其餘部分。

Bio brace again delivered strong growth in the fourth quarter and has good momentum going into 2024. What we've previously referred to as into bones, we will refer to as Foot and Ankle going forward. As Kurt said, we are currently dealing with normal growing pains in this business, which caused Q4 to be below trend only growing in the mid I'm sorry, in the high single digits. So still above market, but below what we're used to and what we expect we continue to expect this business to outgrow the market and be a double digit grower for us in 2024.

Bio Brace 在第四季度再次強勁成長，並在進入 2024 年保持良好勢頭。我們之前所說的骨骼，以後將稱為腳和腳踝。正如庫爾特所說，我們目前正在應對這項業務的正常成長陣痛，這導致第四季度低於趨勢，僅在中期增長（抱歉，在高個位數）。因此，仍然高於市場水平，但低於我們習慣的水平和我們的預期，我們繼續預計該業務的成長將超過市場，並在 2024 年成為兩位數的成長者。

For total, worldwide general surgery revenue increased 41.7%. In the quarter, US general surgery revenue grew 47.6%, while internationally general surgery revenue increased 27.8%. Obviously, these elevated growth rates are aided by easy comps from the prior year, but we continue to see the same trend of strong growth from our leading products on this side of the business.

整體而言，全球一般外科收入成長了 41.7%。本季度，美國一般外科收入成長 47.6%，而國際普外科收入成長 27.8%。顯然，這些成長率的提高得益於上一年的輕鬆比較，但我們繼續看到我們在這方面的領先產品的強勁成長趨勢。

For the full year of 2023, our total sales increased 20.9%, which represents 18.4% growth on an organic basis. For the full year, our US and international sales both grew 20.9% versus the prior year, which is amazing from a balance perspective,.

2023 年全年，我們的總銷售額成長 20.9%，有機成長 18.4%。全年來看，我們的美國和國際銷售額均較上年增長 20.9%，從平衡角度來看，這是驚人的。

Worldwide Orthopedics revenue increased 17.7% for the full year of 2023. In the US orthopaedic sales grew 15.2%, and internationally orthopedic sales increased 19.2%. Total worldwide general surgery revenue increased 23.4% for the full year 2023 US general surgery revenue grew 23.4%, while internationally general surgery revenue increased 23.5%.

2023 年全年全球骨科收入成長 17.7%。美國骨科銷售額成長 15.2%，國際骨科銷售額成長 19.2%。2023 年全年全球普外科總收入成長 23.4% 美國一般外科收入成長 23.4%，而國際普外科收入成長 23.5%。

Now let's move to the expense side of the income statement, we will discuss expenses and profitability in the fourth quarter and the year, excluding special items, which include charges for acquisitions and contingent consideration, termination of distributor agreements, legal matters, debt refinancing costs, restructuring and software implementation costs, amortization of intangible assets and amortization of deferred financing fees, net of tax.

現在讓我們轉向損益表的費用部分，我們將討論第四季度和全年的費用和盈利能力，不包括特殊項目，其中包括收購費用和或有代價、終止分銷商協議、法律事務、債務再融資成本、重組和軟體實施成本、無形資產攤提和遞延融資費用攤提（稅後）。

Adjusted gross margin for the fourth quarter was 56.4%, which is a 50 basis point sequential improvement over Q3 and an increase of 220 basis points from the prior year quarter. So the product mix tailwind we are counting on is real and working the challenges we had in Q4 in the US orthopedic business affected gross margin.

第四季調整後毛利率為 56.4%，較第三季較上季提高 50 個基點，比去年同期提高 220 個基點。因此，我們所依賴的產品組合順風是真實的，並且我們在美國骨科業務第四季度遇到的挑戰影響了毛利率。

We also made some process improvements in one of our plants that drove some period costs that we recognized in the quarter. For the full year, adjusted gross margin was 55.2%, a decrease of 10 basis points from 2022, while margin improved sequentially throughout the year. Inflation experienced throughout 2022, with cycling through the P&L in the first half of 2023, offsetting the underlying favorable mix impact of the product portfolio.

我們也對我們的一家工廠進行了一些流程改進，這降低了我們在本季度確認的一些期間成本。全年調整後毛利率為55.2%，較2022年下降10個基點，而全年利潤率則較上季有所改善。2022 年全年都經歷了通貨膨脹，並在 2023 年上半年的損益表中循環，抵消了產品組合的潛在有利組合影響。

Research and development expense for the fourth quarter was 4.3% of sales, 60 basis points lower than the prior year quarter. For the full year 2023, R&D expense was 4.2% of sales, 30 basis points lower than 2022. For the fourth quarter, adjusted SG&A expenses were 36.7% of sales. Leverage gained on a higher sales drove a 300 basis point improvement over the prior year quarter. So despite the gross margin headwinds, we delivered 15.8% adjusted operating margin in Q4.

第四季研發費用佔銷售額的4.3%，比去年同期下降60個基點。2023年全年，研發費用佔銷售額的4.2%，較2022年下降30個基點。第四季度，調整後的 SG&A 費用佔銷售額的 36.7%。銷售額增加所帶來的槓桿作用使公司比去年同期提高了 300 個基點。因此，儘管存在毛利率不利因素，我們第四季調整後的營業利潤率仍達到 15.8%。

For the full year, adjusted SG&A expenses were 37.4% of sales, 140 basis points lower than in 2022. On an adjusted basis, interest expense was $8.0 million in the fourth quarter and $33.7 million for the full year. The adjusted effective effective tax rate in Q4 was 24.2%. For the full year, our adjusted effective tax rate was 23.0%.

全年調整後的 SG&A 費用佔銷售額的 37.4%，比 2022 年低 140 個基點。調整後，第四季利息支出為 800 萬美元，全年利息支出為 3,370 萬美元。第四季調整後的實際有效稅率為24.2%。全年調整後有效稅率為 23.0%。

Fourth quarter, GAAP net income was $33.1 million. This compares to GAAP net income of $26.6 million in Q4 of 2022. GAAP earnings per diluted share were $1.05 this quarter compared to $0.86 a year ago. For the full year, GAAP net income was $64.5 million compared to GAAP net loss of $8.6 million in 2022. GAAP earnings per diluted share were $2.4 in 2023 compared to GAAP net loss per diluted share of $2.68 in 2022.

第四季度，GAAP 淨利為 3,310 萬美元。相比之下，2022 年第四季 GAAP 淨利潤為 2,660 萬美元。本季 GAAP 攤薄每股收益為 1.05 美元，去年同期為 0.86 美元。全年 GAAP 淨利潤為 6,450 萬美元，而 2022 年 GAAP 淨虧損為 860 萬美元。2023 年 GAAP 每股攤薄收益為 2.4 美元，而 2022 年 GAAP 攤薄每股淨虧損為 2.68 美元。

Excluding the impact of special items discussed earlier in the fourth quarter, we reported adjusted net income of 33.2 million, an increase of 156.5% compared to the fourth quarter of 2022. Our Q4 adjusted diluted earnings per share were $1.06, an increase of 152.4% compared to the prior year quarter. For the full year of 2023, we reported adjusted net income of $108.3 million, an increase of 27.4% compared to 2022. Our full year adjusted diluted net earnings per share were $3.45, an increase of 30.2% compared to the prior year.

剔除第四季度早些時候討論的特殊項目的影響，我們公佈的調整後淨利潤為 3320 萬歐元，較 2022 年第四季度增長 156.5%。第四季調整後攤薄每股收益為 1.06 美元，比去年同期成長 152.4%。2023 年全年，我們報告調整後淨利潤為 1.083 億美元，比 2022 年增長 27.4%。我們全年調整後攤薄每股淨利為 3.45 美元，較上年成長 30.2%。

Turning to the balance sheet, our cash balance at the end of the year was $24.3 million compared to $30.5 million as of September 30. Accounts receivable days as of December 31, were 67 days compared to 68 days at the end of Q3.

談到資產負債表，我們年底的現金餘額為 2,430 萬美元，而截至 9 月 30 日為 3,050 萬美元。截至 12 月 31 日，應收帳款天數為 67 天，而第三季末為 68 天。

Inventory days at the at year end were 198 days compared to 215 days at September 30. Our long-term debt at the end of the year was $903.1 million versus $942.2 million as of September 30. Our leverage ratio on December 31 was 4.1 times.

年末庫存天數為 198 天，而 9 月 30 日為 215 天。截至 9 月 30 日，我們的長期債務為 9.031 億美元，而截至 9 月 30 日為 9.422 億美元。截至12月31日，我們的槓桿率為4.1倍。

Cash flow provided from operations in the quarter was $56.4 million compared to cash flow used for operations of $11.6 million in the fourth quarter of 2022. Cash flow provided from operations for the full year 2023 was $125.3 million compared to $33.4 million in 2022. Both Q4 and the full year are all-time records for this metric.

本季營運提供的現金流為 5,640 萬美元，而 2022 年第四季營運使用的現金流為 1,160 萬美元。2023 年全年營運產生的現金流為 1.253 億美元，而 2022 年為 3,340 萬美元。第四季和全年都是該指標的歷史記錄。

Capital expenditures in the fourth quarter were $4.9 million compared to $5.7 million a year ago. For the full year, capital expenditures were $19.0 million compared to $21.8 million in 2022.

第四季的資本支出為 490 萬美元，而去年同期為 570 萬美元。全年資本支出為 1,900 萬美元，而 2022 年為 2,180 萬美元。

Now let's turn to financial guidance. For the full year 2024, we expect revenue in the range of $1.34 billion and $1.365 billion, representing year-over-year growth of approximately 8% to 10%. Q1 2023 had the benefit of the backlog catch-up from our 2022 warehouse issue. So the Q1 2024 growth rate, we estimate between 3% and 5%.

現在讓我們轉向財務指引。2024 年全年，我們預計營收在 13.4 億美元至 13.65 億美元之間，年增約 8% 至 10%。2023 年第一季受惠於我們 2022 年倉庫問題的積壓追趕。因此，我們估計 2024 年第一季的成長率在 3% 到 5% 之間。

Q1 also has one less selling day than the prior year. Q3 and Q4 both have one extra day. So the full year has one extra day over 2023. We believe the growth rates should accelerate as we move through the year. Q2 may be more like mid to high single digits as the ortho business ramps back up and then Q3 and Q4 performance should get us to that 8% to 10% for the full year.

第一季的銷售天數也比前一年減少了一個。第三季和第四季都多了一天。因此全年比 2023 年多了一天。我們相信，隨著時間的推移，成長率應該會加快。隨著正交業務的回升，第二季可能更像是中高個位數，然後第三季和第四季的表現應該會讓我們全年達到 8% 到 10%。

Based on current rates, we expect currency to have an immaterial impact to 2024 for growth rates on the top and bottom line. For the past seven months, we have attempted to allay concerns regarding a potential insulator integrated with a new surgical robot beginning with a very detailed discussion of the clinical benefits and patent protection around our technology.

根據目前的匯率，我們預計到 2024 年，貨幣對營收和利潤的成長率不會產生重大影響。在過去的七個月裡，我們試圖減輕人們對與新型手術機器人整合的潛在絕緣體的擔憂，首先對我們技術的臨床益處和專利保護進行了非常詳細的討論。

As part of our second quarter 2023 earnings call. To be clear, we continue to believe the impact on AirSeal will be minimal, but we don't think it is wise to have company guidance that ignores such a pervasive theoretical market overhang.

作為我們 2023 年第二季財報電話會議的一部分。需要明確的是，我們仍然認為對 AirSeal 的影響很小，但我們認為公司指導方針忽視如此普遍的理論市場懸而未決是不明智的。

So we have elected to include in our guidance what we believe to be a worst-case estimate of what that impact could be while we aren't going to share the specifics of our model, I will tell you that our guidance allows for a conversion rate associated with placements of the new robot. That is roughly half of what we have seen historically.

因此，我們選擇在我們的指南中包含我們認為最壞情況下可能產生的影響的估計，同時我們不打算分享我們模型的具體細節，我會告訴您，我們的指南允許進行轉換與新機器人的放置相關的比率。這大約是我們歷史上看到的一半。

As a reminder, AirSeal has successfully treated millions of patients and has significant data showing 50% reduction in length of stay and other significant benefits. We believe surgeons value the clinical outcomes and associated data and will want to see similar or better results from any new technology before making a change. Finally, to mitigate a theoretical slowdown in conversions, we would accelerate the shift of our resources and energy in favor of general laparoscopic cases.

謹此提醒，AirSeal 已成功治療數百萬患者，並擁有重要數據顯示住院時間縮短 50% 以及其他顯著益處。我們相信外科醫生重視臨床結果和相關數據，並希望在做出改變之前看到任何新技術的相似或更好的結果。最後，為了緩解理論上的轉換放緩，我們將加速資源和能源的轉變，以支持一般腹腔鏡手術。

Turning to adjusted gross margin, the improving mix of the portfolio remains strong, which we think should drive between 100 and 150 basis points of margin expansion in 2024. That's gross margin expansion. This is a little slower than we envisioned for 2024 when we talked about it a year ago, the expected slow start in orthopedics and some improvements we still need to make in our manufacturing processes are contributing to that headwind.

談到調整後的毛利率，投資組合的改善仍然強勁，我們認為這將推動 2024 年利潤率擴張 100 至 150 個基點。這就是毛利率的擴張。這比我們一年前討論時對 2024 年的預期要慢一些，預計骨科領域的緩慢起步以及我們仍需要在製造流程中進行的一些改進都加劇了這一阻力。

Having said that, it is still a very good gross margin story and it should build throughout the year. We expect Q1 to be about 100 basis points better than the prior year. And by Q4, we expect to be providing about 150 basis points of improvement over the prior year.

話雖如此，這仍然是一個非常好的毛利率故事，並且應該會在全年持續成長。我們預計第一季將比去年好約 100 個基點。到第四季度，我們預計將比上年提高約 150 個基點。

So where does that put us on our quest to 60% gross margins by the end of 2025, if Q4 2024 is around 58% and the mix and improvements should be accelerating. We believe it is still possible to be around 60% by the end of 2025.

那麼，如果 2024 年第四季毛利率約為 58%，並且混合和改進應該會加速，那麼我們在 2025 年底之前實現 60% 毛利率的目標在哪裡呢？我們認為到2025年底仍有可能達到60%左右。

If not, we would expect to be on a strong trend and hit that milestone comfortably in 2026. As a percentage of sales, we expect adjusted SG&A to improve between 60 and 80 basis points in 2024. For the full year, Q1 will likely be at a similar rate to the prior year Q1, given our typical sales force expansions to start the year, but we expect to gain leverage as we move through the year.

如果沒有，我們預計將處於強勁趨勢，並在 2026 年輕鬆達到這一里程碑。作為銷售額的百分比，我們預計 2024 年調整後的 SG&A 將改善 60 ​​至 80 個基點。考慮到我們在年初典型的銷售團隊擴張，全年第一季的成長率可能與去年第一季相似，但我們預計隨著這一年的推移，我們將獲得槓桿作用。

We expect full year R&D expense in 2024 to be between 4% and 4.5% of sales. We expect Q1 in the mid fours, we expect adjusted interest expense to be between $33 million and $34 million in 2024. Keep in mind that we have $70 million of the 2.625% converts that mature this week.

我們預計 2024 年全年研發費用將佔銷售額的 4% 至 4.5%。我們預計第一季將在第四季中期，預計 2024 年調整後利息支出將在 3,300 萬美元至 3,400 萬美元之間。請記住，本周成熟的 2.625% 轉換者中有 7000 萬美元。

Those will be funded by our revolver. So expect interest expense for the first two quarters of 2024 to be between $8.5 million and %9.0 million per quarter. We expect the adjusted effective tax rate to be around 24.5% in 2024.

這些將由我們的左輪手槍資助。因此，預計 2024 年前兩季的利息支出將在每季 850 萬美元至 900 萬美元之間。我們預計2024年調整後的有效稅率約為24.5%。

We expect adjusted EPS in 2024 to be between $4.30 and $4.40, representing growth between 25% and 28% because gross margin is expected to build throughout the year and interest expense will be higher in the first half.

我們預計 2024 年調整後每股盈餘將在 4.30 美元至 4.40 美元之間，成長 25% 至 28%，因為毛利率預計全年都會增加，而上半年利息支出將更高。

We expect adjusted EPS in Q1 to be between $0.72 and $0.75, and we expect the first half to be between $1.65 and $1.71. We expect full year operating cash flow in 2024 to be between $145 million and $155 million with capital expenditures in the $20 million to 25 million range, putting free cash flow between $120 million and $135 million.

我們預計第一季調整後每股收益將在 0.72 美元至 0.75 美元之間，我們預計上半年將在 1.65 美元至 1.71 美元之間。我們預計 2024 年全年營運現金流將在 1.45 億美元至 1.55 億美元之間，資本支出在 2,000 萬美元至 2,500 萬美元之間，自由現金流將在 1.2 億美元至 1.35 億美元之間。

We project adjusted EBITDA between $270 million and $280 million dollars for 2024. Given the heavier cash requirements in the beginning of the year, we expect our leverage ratio to stay relatively flat for the next six months and then drop into the low threes by the end of 2024.

我們預計 2024 年調整後 EBITDA 在 2.7 億美元至 2.8 億美元之間。鑑於年初現金需求增加，我們預計未來六個月槓桿率將保持相對平穩，然後在 2024 年底將降至三分之二。

As Curt said, we are pleased with our record-setting 2023 performance and are focused on delivering a strong 2024. We remain confident in our ability to deliver innovation to our customers while driving market growth and profitability over the long term.

正如 Curt 所說，我們對 2023 年創紀錄的業績感到滿意，並致力於在 2024 年實現強勁的業績。我們對為客戶提供創新同時推動市場長期成長和獲利能力的能力充滿信心。

And with that, we'd like to open the call to your questions, and I'll hand it back to Jonathan.

至此，我們想開始回答您的問題，然後我會將其交還給喬納森。

But certainly Ladies and gentlemen, if you do have a question at this time, please press star one on your telephone to remove yourself from the queue. Simply press star one. Once again, we ask that you please limit yourself to one question and one follow-up.

但當然，女士們先生們，如果您此時確實有疑問，請按電話上的星號一將您從隊列中刪除。只需按星號一即可。我們再次請求您將自己限制在一個問題和一個後續行動上。

Our first question comes from the line of Rick Wise from Stifel. Your question, please Yes.

我們的第一個問題來自 Stifel 的 Rick Wise。你的問題，請是的。

Have a good afternoon. I bet that the arms let's start off with maybe one big picture question and my follow-up will be on something specific in it. I appreciate you've laid out extremely clearly some of the moving pieces and the timing. And what do you think on, Todd, how should we think about fourth quarter growth?

祝你下午好。我敢打賭，手臂讓我們從一個大問題開始，我的後續行動將是其中一些具體的問題。我很欣賞你非常清楚地列出了一些令人感動的部分和時間安排。托德，您認為我們應該如何看待第四季的成長？

I so let's say on a normalized basis, if let's say, adding back if allografts have been normal, what kind of growth might we have seen? And maybe you can talk about your confidence in the timing of getting that back on track. And what I'm really trying to get at here is we've heard from some other larger companies how the environment's improving are procedures rebounding a lot of strength? Do you feel like you're seeing that some of these moving pieces?

所以，讓我們在正常化的基礎上說，如果我們說，如果同種異體移植物正常的話，我們會看到什麼樣的成長？也許你可以談談你對讓事情重回正軌的時機的信心。我真正想表達的是，我們從其他一些大公司聽說，環境正在改善，程式是否會大幅反彈？您是否覺得自己看到了其中一些令人感動的作品？

So let me let me take that first part and maybe Curt can chime in on that second part, the it's really impossible, Rick, to trying to normalize what Q4 would be really not because of the allograft issue. That's a that's a smaller issue, right? It affects margins because that's a 100% margin product.

因此，讓我來談談第一部分，也許柯特可以插話第二部分，瑞克，試圖使第四季正常化實際上是不可能的，因為同種異體移植問題。這是一個較小的問題，對嗎？它會影響利潤率，因為這是 100% 利潤率的產品。

As we've talked about before, the what's hard about getting to a normalized growth rate for Q4 is that Q4 2022 had that major disruption of our warehouse software implementation. And so it's just impossible to know what a normal quarter would have been a year ago. And so it's impossible to get to kind of what this Q4 is normalized because it is impossible to know.

正如我們之前討論過的，實現第四季正常化成長率的困難在於 2022 年第四季我們的倉庫軟體實施發生了重大中斷。因此，不可能知道一年前的正常季度情況是怎樣的。因此，我們不可能了解第四季的標準化情況，因為我們不可能知道。

So we feel very good about the all the growth, the drivers of our business as we talked about the ortho business has had some lingering supply issues that are getting better every quarter and they get a little better. We're just not out of the woods yet. And so and we think we're a few months still from getting out of the woods there where we can move back to offense the way we want to be on that side of the business. But dumb, that's the beauty of diversification and balance that we talked about. And so the total business remains healthy and headed in the right direction. And when we can get all cylinders pumping like we like it will be even better.

因此，我們對所有的成長、我們業務的驅動因素感到非常滿意，因為我們談到了骨科業務存在一些揮之不去的供應問題，這些問題每個季度都在好轉，而且會好一點。我們只是還沒走出困境。因此，我們認為我們距離走出困境還有幾個月的時間，我們可以按照我們想要的業務方式重新進攻。但愚蠢的是，這就是我們談論的多元化和平衡之美。因此，整體業務保持健康並朝著正確的方向發展。當我們能夠讓所有氣缸都像我們希望的那樣泵送時，效果會更好。

And Rick, on the last part about the markets we just came a week or so ago from our global sales meeting leadership meetings. And I would tell you our teams are pretty optimistic about the markets broadly that's across our categories of orthopedics and general surgery, but also across our geographies. We have a higher concentration outside the US and most medtech companies and having folks from the various markets in attendance and talking about what they're seeing and what they're experienced and we feel like health care, generally speaking, is pretty pretty solid right now.

里克，關於市場的最後一部分，我們大約一周前剛參加完全球銷售會議領導會議。我想告訴您，我們的團隊對整個骨科和普通外科類別以及各個地區的市場都非常樂觀。我們在美國以外和大多數醫療科技公司的集中度更高，來自不同市場的人們出席並談論他們所看到的和經歷過的，我們覺得醫療保健，一般來說，是相當可靠的，對吧現在。

Yes, that's great. And just as a follow-up, I mean, it sounds like fibrates is in great shape and talk to us a little more about the challenges or the near term issues affecting into bones or Foot and Ankle that drove high single digits. So what happen and help us understand what you've dialed into the 2024 guide and why does it get better and when? Thank you very much.

是的，那太好了。我的意思是，作為後續行動，聽起來貝特類藥物狀況良好，請與我們多談談影響骨骼或足部和腳踝的挑戰或近期問題，這些問題推動了高個位數的增長。那麼發生了什麼並幫助我們了解您在 2024 年指南中提到的內容以及為什麼它會變得更好以及何時變得更好？非常感謝。

Yes, I think the first part of that question, I'll take and I'll let Todd talk about guidance. The you buy a private company, you go through the integration steps, putting them into your systems, your process that includes supply chain.

是的，我認為這個問題的第一部分，我將讓托德談論指導。當你購買私人公司時，你會經歷整合步驟，將它們放入你的系統、包含供應鏈的流程中。

We're working hard on international registration. There's far more demand on the supply of the product and out of the gates and working with that, that new supplier base and trying to get them integrated into our systems and our processes, as is typically the case in smaller private companies or some evolution transition and disruption.

我們正努力進行國際註冊工作。對產品供應的需求要大得多，並與之合作，新的供應商基礎，並試圖將它們整合到我們的系統和流程中，就像小型私人公司或某些演進轉型中的典型情況一樣和破壞。

And really those are the things that slowed us down. And we think to Todd's earlier comment, we think those things clear up here as we get through the first quarter and we get back on full stride as we get into second quarter. So it's I don't think it's anything systemic.

事實上，這些都是讓我們放慢腳步的事情。我們認為托德之前的評論，我們認為當我們度過第一季時，這些事情就清楚了，當我們進入第二季度時，我們將全面恢復。所以我認為這不是什麼系統性的事。

I think it's all about integration and taking a private company, put it into a company of public companies framework and trying to what Tim, what those processes work the way they should.

我認為這一切都是關於整合和將私人公司納入上市公司框架中，並嘗試蒂姆，這些流程以應有的方式運作。

And as far as guidance, Rick, we definitely have included in our guidance. The assumption that that business grows double digits in 2024. As Kurt said, we think this this hiccup is temporary. It doesn't magically go away with the turning of the calendar, but we do think it's a short-term pickup that we will get through and get this business back to double digits. And we do think it will be done at double digits for the full year.

至於指導，瑞克，我們肯定已經將其納入我們的指導中。假設該業務在 2024 年達到兩位數成長。正如庫爾特所說，我們認為這個問題是暫時的。它不會隨著日曆的轉動而神奇地消失，但我們確實認為這是一個短期的回升，我們將度過這一過程並使這項業務回到兩位數。我們確實認為全年的成長速度將達到兩位數。

We think it.

我們認為。

Thank you.

謝謝。

And our next question comes from the line of Robbie Marcus from GPM. Your question, please.

我們的下一個問題來自 GPM 的 Robbie Marcus。請提出你的問題。

Yes, thanks for taking the question. Wanted to follow up on REX and I guess I'll ask it this way in our fourth quarter, Mist and margins were weak and 2024 is all predicated on improvement over the course of the year, although recognizing it includes some potential headwind for something that hasn't even happened yet with AirSeal. So I guess a lot of it is predicated on trust that the business will improve. And I was just wondering if you could give us an idea any more concrete reasons to believe that and our growth could be in the essentially double digits towards the end of the year to get to the guidance range and why that what the building blocks are that you have visibility to today versus June a bit of hope.

是的，感謝您提出問題。想要跟進 REX，我想我會在第四季度這樣問，Mist 和利潤率都很疲軟，2024 年都取決於這一年的改善，儘管認識到它包括一些潛在的逆風AirSeal 還沒有發生過這種情況。所以我想這很大程度是基於對業務將會改善的信任。我只是想知道您是否能給我們一個更具體的理由來相信這一點，到年底我們的增長可能會達到兩位數，以達到指導範圍，以及為什麼構建基石是什麼今天與六月相比，你可以看到一點希望。

Yes. Thanks, Robbie. And I think if we just raise our view a little bit other than just Q4, right in Q2 and Q3, the last two quarters we reported on the business was growing in the low double digits organically. So this is not an aspiration or a hope to us. We know this portfolio can do it.

是的。謝謝，羅比。我認為，如果我們在第四季度之外稍微提高我們的觀點，那麼在第二季度和第三季度，我們報告的業務的最後兩個季度有機地以低兩位數增長。所以這對我們來說不是一個願望或希望。我們知道這個產品組合可以做到這一點。

We have identified the causes for this kind of slower Q4 than we expected. We do believe those are temporary. We think we're doing all the right things. And so it's not really the aberration is this is the hiccup. The business is built to grow as we've guided. And I think we've we feel very comfortable with the guidance we've provided today. Got it.

我們已經確定了第四季度速度比我們預期慢的原因。我們確實相信這些都是暫時的。我們認為我們正在做所有正確的事情。所以這並不是真正的異常，而是問題。該業務將按照我們的指導不斷發展。我認為我們對今天提供的指導感到非常滿意。知道了。

And as you think about just the M&A you've done and where the leverage is right now, how do you feel about your ability to continue to do M&A and your thoughts on the need for additional in the P&L? Thanks a lot.

當您考慮已完成的併購以及目前的槓桿水平時，您對繼續進行併購的能力有何看法，以及您對損益表中是否需要額外的想法？多謝。

You know, we finished up leverage ratio of 4.1, which was better than we had expected based on some fine work on asset management through the second half of the year. We've said publicly we didn't give our business development teams time off from a great asset came along we would take a very hard look at it. And we candidly continue to look at items. The bar is obviously much higher and with a little bit higher end market interest rates, the bar becomes just that much higher. I'm not sitting here today feeling we need to do anything. I really like the portfolio, as I said in my scripted comments, both on general surgery and orthopedics.

大家知道，我們的槓桿率最終達到了4.1，這比我們下半年資產管理工作做的很好的預期要好。我們公開表示，我們不會給我們的業務開發團隊休息時間，因為一項偉大的資產出現了，我們會認真考慮它。我們繼續坦誠地關注專案。這個門檻顯然要高得多，而且隨著終端市場利率稍微高一點，這個門檻就會變得更高。我今天坐在這裡並不覺得我們需要做任何事。正如我在腳本評論中所說，我真的很喜歡這個作品集，無論是普通外科還是骨科。

There are some new products coming that are additive to the overall effort and I think are our teams on a global basis have plenty to say grace over in terms of talking to their customers about clinically differentiated offerings. But again, medtech one alone, if a great asset came on the market and we thought it was a great fit and it contributes to the long-term growth story.

即將推出的一些新產品對整體工作起到了補充作用，我認為我們的全球團隊在與客戶討論臨床差異化產品方面有很多值得稱讚的地方。但同樣，僅就醫療技術而言，如果市場上出現了一項優質資產，並且我們認為它非常合適，並有助於長期成長故事。

We take a really hard look at it, but I'm not sitting here saying we need to do it not sitting here saying we have to do anything to change our outlook and change or deliver do something to deliver on the guidance, the guidance we put out, we feel very good about, and that's based on the portfolio that we have with us today.

我們非常認真地審視它，但我並不是坐在這裡說我們需要這樣做，也不是坐在這裡說我們必須採取任何措施來改變我們的觀點並改變或交付做一些事情來交付指導，我們的指導推出後，我們感覺非常好，這是基於我們今天擁有的投資組合。

Great. Thanks for taking the questions.

偉大的。感謝您提出問題。

Thank you.

謝謝。

One moment for our next question. And our next question comes from the line of Matthew O'Brien from Piper Sandler. Your question please.

請稍等一下我們的下一個問題。我們的下一個問題來自 Piper Sandler 的 Matthew O'Brien。請你提問。

Afternoon, thanks so much for taking the questions on par. When you were at our conference at the end of last year, you were talking about a double digit grower at minute and 2024. You're backing off that a little bit here and today for a product that I don't think it's supposed to be out until the end of the year. Most likely will come earlier than that, but is the lowering of 100 basis points, maybe 150 versus what you were expecting entirely because of this this hypothetical watch or are there other things in there? Specifically, it looked like your capital business was a little bit slower than we were kind of anticipating down sequentially versus normal years being up. Is there something else going on to that impacting the business? Just beyond your conservativism on AirSeal,

下午，非常感謝您提出同樣的問題。去年年底，當您參加我們的會議時，您談到了 2024 年每分鐘種植量將達到兩位數。今天你在這裡稍微退縮了一點，因為我認為這款產品應該要到今年年底才會推出。最有可能會比這更早到來，但降息 100 個基點，也許是 150 個基點，與您的預期相比，完全是因為這個假設的手錶，還是還有其他原因？具體來說，與正常年份的成長相比，您的資本業務似乎比我們預期的下降速度要慢一些。是否有其他因素影響業務？超越您對 AirSeal 的保守主義，

I mean, there's only there's a few moving pieces here, but let me let me just clarify the record. You're right. Like we said Q2 and Q3, which were the quarters we reported on going into your conference, we had delivered between 11% and 12% organic growth in both of those quarters. And those quarters had no odd comp.

我的意思是，這裡只有一些動人的部分，但讓我澄清一下記錄。你說得對。就像我們所說的第二季和第三季（我們在會議上報告的兩個季度）一樣，我們在這兩個季度都實現了 11% 到 12% 的有機成長。這些季度沒有奇怪的補償。

There were those that were not easy comps, those were kind of normal comps. And so that was very representative of what the engine is doing. We still obviously were guiding 8 to 10 and with as you put some conservative assumptions behind that. We feel very good about the strength of this portfolio. Success here has always been defined as grow faster than your markets, right?

有些比賽並不容易，有些是正常的比賽。所以這非常代表了引擎正在做的事情。顯然，我們仍然在指導 8 到 10，並且您在背後提出了一些保守的假設。我們對這個投資組合的實力感到非常滿意。這裡的成功一直被定義為成長速度快於市場，對嗎？

So double digits is kind of a milestone that we'd all be very happy about. And but if it was, we're growing faster than our markets, we're winning. And I think 8 to 10 is clearly faster than our markets, even with those kind of assumptions, which I think you've got them right, there is nothing more than what we've said, Matt, and I think you captured in the ortho businesses in a little bit of a slow point. We've got to get that back to normal.

因此，兩位數是一個里程碑，我們都會對此感到非常高興。但如果是這樣，我們的成長速度快於我們的市場，我們就贏了。我認為 8 到 10 顯然比我們的市場要快，即使有這些假設，我認為你是對的，沒有什麼比我們所說的更重要的了，馬特，我認為你在正交業務有點緩慢。我們必須讓它恢復正常。

And so that's affecting the start of the year. And we've been very generous. I think we've tried to lean into this narrative that's out there on our on our company and the valuation. And we've tried to make this really a worst case scenario in relation to this competitive launch that the market is worked up about. So we you're saying end of the year, our assumptions are that it comes way before that. And I think through again, I'm not sharing the details of our model, but we've been as generous as we could come to be conservative in those assumptions and to build that in.

這會影響今年年初。我們非常慷慨。我認為我們已經嘗試傾向於我們公司和估值中的這種敘述。我們試圖將這種情況變成與市場熱議的競爭性發布相關的最壞情況。所以我們說的是今年年底，我們的假設是它會在那之前很久到來。我再次想了一下，我不會分享我們模型的細節，但我們已經盡可能慷慨地在這些假設中保持保守，並將其納入其中。

So having said all that, I don't think any of that is inconsistent, right? We were growing double digits. Q4 was disappointing for the reasons we told you and but the rest of the portfolio continues to be strong. We're going to strengthen up that ortho side of the business and I get all cylinders on it.

說了這麼多，我不認為有任何不一致之處，對吧？我們的成長是兩位數。由於我們告訴您的原因，第四季度令人失望，但投資組合的其餘部分仍然強勁。我們將加強業務的正向方面，我全力以赴。

Okay.

好的。

And then on the margin side of things. You know, again backing off here a little bit too for the full year, it's just it seems like the Q1 number is well below what I was expecting from a gross margin perspective. So maybe just talk about line of sight on improving that metric so dramatically throughout the course of this year. And then I know you said, approaching 60% next year, but that to 250 numbers was it was a kind of a vivid number for me in my head. Is that another situation where it could be more like a 200 to 250 basis points next year. And I guess why not just go ahead and back off that number now, what is it that you see in the business that we can't see that gets you there.

然後是邊緣方面。你知道，全年的數據也略有回落，只是從毛利率的角度來看，第一季的數字似乎遠低於我的預期。因此，也許只是談談今年以來大幅提高該指標的目標。然後我知道你說過，明年接近 60%，但到 250 個數字對我來說是一個生動的數字。這是另一種情況，明年可能會更接近 200 至 250 個基點。我想為什麼現在不繼續前進並放棄這個數字，你在業務中看到的我們看不到的東西是什麼讓你到達那裡。

Thank you.

謝謝。

I mean, I think we've been very transparent with some of those assumptions. So the there's always seasonality right. I mean, we'd all love for Q1 digit. We'd love for Q4 of the prior year to be the jumping off point and everything always be up and to the right, but that's not how seasonality in margins work. So if you compare Q1 to Q1, we're guiding today to 100 basis points of improvement.

我的意思是，我認為我們對其中一些假設非常透明。所以季節性總是對的。我的意思是，我們都喜歡 Q1 數字。我們希望上一年的第四季成為起點，一切都始終正常，但這並不是利潤率季節性的運作方式。因此，如果您將第一季與第一季進行比較，我們今天的指導目標是提高 100 個基點。

I don't know how many companies are guiding that, but so you're but you are correct that it is lower than we thought. 12 months ago, 12 months ago, we said it, we said 150 should be the expectation for 2024 this morning, we're saying 100 to 150 basis points or I'm sorry this afternoon and it builds throughout the year because of these challenges we have on the ortho business, and I'll just remind you, the ortho business is accretive to the Company margins, especially the foot and ankle side of that business. It's in the 80's and we have to it makes some we hoped that our operations in manufacturing would make more progress in 2023 than we did. So there's still more work to do there.

我不知道有多少公司正在指導這一點，但你是對的，它比我們想像的要低。 12 個月前，12 個月前，我們說過，今天早上我們說150 個基點應該是2024 年的預期，我們說的是100 到150 個基點，或者我很抱歉今天下午，由於這些挑戰，它將在全年中建立我們有矯形業務，我只是提醒您，矯形業務可以增加公司的利潤，特別是該業務的腳和腳踝方面。現在是 80 年代，我們必須做出一些努力，希望我們的製造業務在 2023 年能取得比我們更大的進步。因此，還有更多工作要做。

So it is it is slower and it backing off a little bit of how we thought 2024 would look 12 months ago, but we're still in the ballpark. And as I said, if Q4 is going to be 150-bps better than that puts you at 58%. And so maybe you don't get all the way to 60% by the end of 2025, but we should be very close and easily get there, you know, in the following quarters. So and you are accurate that it is. I back off a little bit of what we said, but not much. Is it how I would frame it.

因此，它的速度較慢，並且與 12 個月前我們對 2024 年的預期有所不同，但我們仍處於大致範圍內。正如我所說，如果第四季的成長速度提高 150 個基點，那麼您的成長速度將達到 58%。因此，到 2025 年底，也許你無法完全達到 60%，但我們應該非常接近並輕鬆實現這一目標，你知道，在接下來的幾個季度。所以你是準確的。我對我們所說的話退縮了一點，但不多。這就是我要如何建造它嗎？

Understood. Thank you.

明白了。謝謝。

I'll take you one moment.

我會花你一點時間。

For our next question.

對於我們的下一個問題。

And our next question comes from the line of Kristen Stewart from CL King. Your question, please.

我們的下一個問題來自 CL King 的 Kristen Stewart。請提出你的問題。

Thanks for taking the question.

感謝您提出問題。

I just wanted to go back to AirSeal, not to beat a dead horse, but just to get a little bit better understanding of the exposure there to the business, how much of AirSeal business today is tied to Intuitive Surgical? And what was the conversion rate that I guess you are tracking at today? And what gives you confidence that you're modeling a worst-case scenario going forward?

我只是想回到 AirSeal，不是為了一馬當先，而是為了更好地了解那裡的業務，今天的 AirSeal 業務有多少與 Intuitive Surgical 相關？我想您今天追蹤的轉換率是多少？是什麼讓您確信您正在模擬未來最壞的情況？

Thank you, Kristin. Airseal is definitely not a dead horse and unfortunately, the narrative of this competitive threat or a head to head of ForEx. I can tell you we have disclosed in the past that about we estimate that about 60% of our AirSeal revenue is currently associated with Intuitive Surgical procedures. So we're at about 60% today to be clear that doesn't mean we're assuming 30%. That's not the 50% cut. What we're talking about is our historical trend of attachment of new conversions to the robot, and that's what we're cutting have we're not sharing that rate with you today, but we shared the 50% reduction to trying to demonstrate that we've taken this seriously. We haven't been dismissive of it, frankly, I think we've been very I think it's highly conservative. I think I think it's unlikely that, but there's that much much disruption in them in those new systems. But the market is clearly very concerned about it. And we did not think it was wise or helpful to provide guidance that ignored it. And so we've tried to be as generous as we thought was a rational and kind of build that allowance in. But that's as much as I'm going to share with you about the details of that model.

謝謝你，克里斯汀。Airseal 絕對不是死馬，但不幸的是，這種競爭威脅的敘事還是 ForEx 的正面交鋒。我可以告訴您，我們過去曾披露過，我們估計目前 AirSeal 收入的約 60% 與直覺外科手術有關。因此，我們今天的比例約為 60%，需要澄清的是，這並不意味著我們假設為 30%。這不是 50% 的削減。我們談論的是我們將新的轉換附加到機器人上的歷史趨勢，這就是我們正在削減的內容，我們今天不與您分享這個比率，但我們分享了 50% 的減少，試圖證明這一點我們非常重視這個問題。我們並沒有對此不屑一顧，坦白說，我認為我們一直都非常保守。我認為這不太可能，但這些新系統中存在著很大的破壞。但市場顯然對此非常關注。我們認為提供忽視它的指導是不明智或有幫助的。因此，我們盡可能慷慨地提供合理的補貼。但這就是我要與您分享的關於該模型的詳細資訊。

Okay. And I guess getting back to the gross margin of going close to 60% for 2025, is that also under the assumption of a worst-case scenario of a 50% reduction as well?

好的。我想，到 2025 年，毛利率回到接近 60% 的水平，是否也是在假設最壞情況下減少 50% 的情況下實現的？

Or do you think if that?

或者你認為是這樣嗎？

Okay, so you still think that I mean, we're not there with of 20%?

好吧，所以你仍然認為我的意思是，我們還沒有達到 20%？

Yes, we're not guiding to 2025 today, obviously. But that margin improvement story is very strong and it's bigger than this issue. I would tell you I'll give you a little more color into that model like I said we've assumed, but that's pretty disruptive to us out of the gate. If that all plays out how the narrative is on the street.

是的，顯然我們今天並不是在指導 2025 年。但利潤率改善的故事非常有力，而且比這個問題更重要。我會告訴你，我會給你更多關於這個模型的色彩，就像我說的我們假設的那樣，但這對我們來說是相當具有破壞性的。如果這一切都按照街頭的敘事方式展開的話。

We also know that if that were to materialize that non-robotic procedures are 10 times the robotic procedures, right? So we would adjust energy resources away from robotic procedures and two non-robotic procedures. If that theory were to materialize that takes time, obviously rates a longer sales cycle. So I would tell you the disruption assumed in the model is bigger early than it is late because the longer we have to adjust and kind of change our sales focus to lead this less disruptive to the overall business is. And so the out years from I'm less worried about than the early years from that perspective.

我們也知道，如果這一點成為現實，非機器人程式是機器人程式的 10 倍，對嗎？因此，我們將調整能源資源，遠離機器人程式和兩個非機器人程式。如果理論要實現，則需要時間，顯然需要更長的銷售週期。因此，我想告訴您，模型中假設的早期破壞比晚期更大，因為我們需要調整和改變我們的銷售重點以減少對整體業務的破壞的時間越長。因此，從這個角度來看，我對未來幾年的擔心不如早年擔心。

Okay.

好的。

That's helpful. Thanks very much.

這很有幫助。非常感謝。

You One moment for our next question.

請您稍等一下我們的下一個問題。

And our next question comes from the line of Vik Chopra from Wells Fargo.

我們的下一個問題來自富國銀行的 Vik Chopra。

Your question, please.

請提出你的問題。

Hey, good afternoon and thanks for taking the question. Phil, thanks for providing all the color on the guidance and just wondering if you can share what's the boom in your guidance for the rest of the higher growth businesses? And then I had a follow-up, please.

嘿，下午好，感謝您提出問題。菲爾，感謝您提供指導中的所有內容，只是想知道您是否可以分享您的指導中對其他高增長企業的繁榮是什麼？然後我有一個後續行動，請。

No change that. We continue to expect all of our high-growth businesses to perform as they have been. So again, just to make everybody feel comfortable that's over 20% for AirSeal and Buffalo at twice the market for foot and ankle side of the business and obviously, BioHorizons is a geometric type of growth engine. So no change to how we view those growth drivers.

沒有改變。我們繼續期望我們所有的高成長業務都能像以前一樣表現。再說一次，只是為了讓每個人都感到舒服，AirSeal 和 Buffalo 的成長率超過 20%，是足部和腳踝業務市場的兩倍，顯然，BioHorizo​​​​ns 是一個幾何類型的成長引擎。因此，我們對這些成長動力的看法並沒有改變。

Yes, I would just adding on to that point to the conference of the beginning here, we put up slides that talked about the percentage of portfolio that was growing double digit, growing single digits or declining. And if you just look at that mix. It's a pretty healthy portfolio. So that in and of itself underlies history of the business and our portfolio is only getting stronger with new product introductions. So I feel really good about our portfolio, not only the ones we've identified as high growth, but the rest of the portfolio and them our outlook.

是的，我只是在會議開始時補充這一點，我們放了幻燈片，討論了投資組合成長兩位數、成長個位數或下降的百分比。如果你只看這種組合。這是一個非常健康的投資組合。因此，這本身就是我們業務歷史的基礎，隨著新產品的推出，我們的產品組合只會變得更加強大。因此，我對我們的投資組合感覺非常好，不僅是我們確定為高成長的投資組合，還有投資組合的其餘部分以及我們的前景。

Thanks. And then just a follow-up.I had on bio.Great. Maybe just talk about your view on how quickly the product can grow in 2024 and any thoughts you can share with respect to your approach to the market and competitive strategy? Thank you.

謝謝。然後只是一個後續行動。我有生物。太棒了。也許只是談談您對 2024 年產品成長速度的看法，以及您對市場方法和競爭策略有什麼想法嗎？謝謝。

Well, I mean, it's still early days for by operation in the marketplace and for Con Ed. And we had said this year would be high single digits and we exceeded that and we feel very good. And part of my script was talking about sales channel expansion in that. That means geographic expansion as registrations and approvals come through, which we've been working on since day one, but it also means leveraging our foot and ankle sales force. We have sales force that we didn't have really until you know right before we acquired bio brace and there's a clinical need in foot and ankle for a product like bio brace. And that sales team is being ramped up, educated trained, and we feel very optimistic that that is a great channel for that product as well.

嗯，我的意思是，對於市場營運和聯合愛迪生公司來說，現在還處於早期階段。我們曾說過，今年的銷售額將達到高個位數，我們超過了這個數字，我們感覺非常好。我的劇本的一部分是在談論銷售管道的擴張。這意味著隨著註冊和批准的完成而進行地域擴張，我們從第一天起就一直在努力，但這也意味著利用我們的足部和腳踝銷售團隊。我們擁有真正的銷售隊伍，直到您知道在我們獲得生物支架之前我們才真正擁有銷售人員，而且足部和腳踝對生物支架這樣的產品有臨床需求。這個銷售團隊正在壯大，接受過教育培訓，我們非常樂觀地認為這也是產品的一個很好的管道。

So there's a there's a lot of growth drivers here in our core sports medicine channel for knee and shoulder and candidly, other applications come by the booth on Wednesday at Academy. And you'll see a lot a lot of surgeon presentations related to bio brace. The lung. Our outlook on this is really exciting because it's clinically differentiated. It is second generation technology is game-changing for patients and clinicians. And I've said many times, it's the single most contacted product that I have surgeons reaching out to me expressing their pleasure with the product and how it's changed patient outcomes. So lung, we're very optimistic about bridge.

因此，我們的膝蓋和肩部核心運動醫學頻道有很多增長動力，坦白說，週三學院的展位上也收到了其他申請。您會看到很多與生物支架相關的外科醫生演示。肺。我們對此的看法非常令人興奮，因為它在臨床上有所不同。這是第二代技術，正在改變患者和臨床醫生的遊戲規則。我已經說過很多次了，這是我接觸最多的產品，外科醫生向我伸出援手，表達了他們對該產品的滿意以及它如何改變了患者的治療結果。所以肺，我們對橋牌非常樂觀。

Thank you.

謝謝。

And our next question comes from the line of Mike Matson from Needham & Company. Your question, please.

我們的下一個問題來自 Needham & Company 的 Mike Matson。請提出你的問題。

Yes, thanks of. So just in the orthopedics business, I guess I want to better understand what's happening or what happened with the tissue situation. So and obviously, there's some kind of direct impact there from the from the shortage. Can maybe I don't know if you've disclosed before how big a part of the orthopedic sales come directly from sales of that. But then I was also wondering, is there was there some kind of spillover effect where by not having those products that you maybe lose procedures, are these other products that we then sold for those cases?

是的，謝謝。因此，就骨科業務而言，我想我想更好地了解正在發生的事情或組織情況發生了什麼。因此，顯然，短缺會產生某種直接影響。也許我不知道您之前是否透露過骨科銷售額有多大一部分直接來自於其銷售。但後來我也想知道，是否存在某種溢出效應，如果沒有這些產品，您可能會失去程序，我們隨後會為這些情況出售其他產品嗎？

Yes, Mike, I think I'd go back to what we said last quarter, but also what I think Todd had in his commentary, the VM supply disruption in the MTF portfolio, a smaller part of our business had a bigger impact on margins because of the margin profile, what we highlighted in Q3 and what it got better, but not as much as we had hoped was just a general supplier challenge that was impacting a larger portion of our sports medicine and our foot and ankle business Foot and Ankle a little bit different because that's more supplier integration, whereas the standard Sports Medicine business was more just supplier delays and disruptions that But candidly, caught up to us.

是的，麥克，我想我會回到我們上個季度所說的內容，還有我認為托德在他的評論中所說的內容，MTF 投資組合中的VM 供應中斷，我們業務的一小部分對利潤率產生了更大的影響由於利潤狀況，我們在第三季度強調的以及它變得更好的地方，但並不像我們希望的那樣，這只是一般供應商的挑戰，影響了我們運動醫學的大部分以及我們的腳和腳踝業務Foot and Ankle有點不同，因為這更多的是供應商整合，而標準的運動醫學業務更多的是供應商的延誤和中斷，但坦率地說，我們已經受到影響了。

We thought we had been doing a pretty good job, but as things were moving forward, we had some disruptions. And as you know, in that business, if you don't have the product for the case, you can drive substitute or they find an alternative from a competitor. So we just missed cases and that that was the bigger impact in the quarter that is improving as we exited the year. It's improving in the first quarter and we'll be back fully on offense as we get to Q2 broadly speaking in orthopedics. So I wouldn't get hung up on the MTF portion of that that as Todd said, was more about the margin hit from the revenue hit was more in the general sports medicine side because of lost cases because of supply disruption.

我們認為我們做得很好，但隨著事情的進展，我們遇到了一些幹擾。如您所知，在該行業中，如果您沒有適合這種情況的產品，您可以駕駛替代品，或者他們從競爭對手那裡找到替代品。所以我們只是錯過了一些案例，這是本季更大的影響，隨著我們今年的結束，這種影響正在改善。第一季情況有所改善，廣泛而言，在骨科領域，當我們進入第二季時，我們將完全恢復進攻。因此，我不會像托德所說的那樣，對其中的 MTF 部分感到困惑，更多的是由於供應中斷導致的案件丟失，導致一般運動醫學方面的收入受到打擊，從而導致利潤率受到影響。

Okay, got it. Sorry, I guess I heard supply issues. I was confusing that with the MTF thing, but. Okay. And then just you're sure that there's no other competitive issues in that business. I mean, strikers launch a new camera and power tools, and they seem to be doing. Are they well, I mean, I know that the capital, but or any other product launches from competitors that are they are hurting you?

好，知道了。抱歉，我想我聽說了供應問題。我把它和 MTF 的事情搞混了，但是。好的。然後你確定該業務不存在其他競爭問題。我的意思是，罷工者推出了新的相機和電動工具，他們似乎正在這樣做。我的意思是，我知道他們的資本或競爭對手推出的任何其他產品正在傷害你嗎？

Well, I mean, obviously, sports medicines, one of the most competitive markets out there and it is a game of new product innovation. And I look at our portfolio. And we've we've got new products in the knee, the shoulder, we've got Bayou Bridge that Tom is a platform technology that just candidly makes everything else look better in the portfolio. So our team is on offense with new product introduction as much as anybody. And that's just been part of our planning approach. So I think the supply disruptions are bigger issue right now because when you have supply disruption, it keeps you from being on offense, you got to take care of your existing customers.

嗯，我的意思是，顯然，運動藥物是競爭最激烈的市場之一，這是一場新產品創新的遊戲。我看看我們的投資組合。我們在膝蓋、肩膀上推出了新產品，我們推出了 Bayou Bridge，Tom 是一種平台技術，可以坦率地使產品組合中的其他所有產品看起來更好。因此，我們的團隊和其他人一樣，對新產品的推出充滿了熱情。這只是我們規劃方法的一部分。因此，我認為供應中斷現在是一個更大的問題，因為當供應中斷時，它可以防止你進攻，你必須照顧現有客戶。

Let alone go after new customers, you have to look at it and you take you one moment for our next question.

更不用說去追求新客戶了，你必須看看它，然後花點時間回答我們的下一個問題。

And our next question comes from the line of Yun Lee from Jefferies.

我們的下一個問題來自 Jefferies 的 Yun Lee。

Your question, please.

請提出你的問題。

All right. Great. Thanks for taking my questions. I guess, no, I appreciate you taking a more conservative approach to guidance ahead of the potential competitive launch. And I guess if you were to pivot the US reps selling focus, wondering how long would that process take on? What would the reps be doing DIFFERENT?

好的。偉大的。感謝您回答我的問題。我想，不，我感謝您在潛在的競爭性發布之前採取更保守的指導方法。我想如果您要轉移美國代表的銷售重點，想知道這個過程需要多長時間？代表們會做哪些不同的事情？

Yes, it's a theoretical question, Jan but I think the really short answer is if I'm a sales professional and I'm used to selling AirSeal behind the wake of an intuitive surgical robot and for whatever reason I don't get that opportunity. I still have a quote. I still have a quarter that dictates how much I'm paid and how much I make.

是的，這是一個理論問題，Jan，但我認為真正簡短的答案是，如果我是銷售專業人員，並且我習慣於在直觀的手術機器人之後銷售AirSeal，並且出於某種原因我沒有得到這個機會。我還有一個報價。我還有一個季度決定我的薪水和收入。

And if I know the opportunity means they have got to turn down the other Hall and go into general laparoscopic room and work on converting more customers. It's going to be a longer sales cycle. They get there really quick because it had some in the it hit some in their paycheck. So they get there really fast trust that Con Ed has been messaging this opportunity for a long time.

如果我知道這個機會意味著他們必須拒絕另一個大廳並進入普通腹腔鏡室並努力吸引更多客戶。這將是一個更長的銷售週期。他們很快就到達了那裡，因為它有一些在他們的薪水中。因此，他們很快就到達了那裡，相信聯合愛迪生公司長期以來一直在傳達這個機會。

And you see that being successful outside the US where there's less robots, it's just the US market has a lot more robots on it. And it's some it's a quick pathway that our team as learned and it's where SurgiQuest started back in 2008. I want to be very fair to that sales team. We have a great selling organization in Advanced Surgical.

你會看到，在機器人較少的美國以外取得成功，只是美國市場上有更多的機器人。這是我們團隊學到的快速途徑，也是 SurgiQuest 於 2008 年開始的地方。我想對銷售團隊非常公平。我們在高級外科領域擁有出色的銷售組織。

That business had a record year. It'll probably have another record year this year. It's selling the entirety of the portfolio. It's selling Buffalo Filter. It's selling AirSeal, some selling anchor tissue retrieval bags at selling manual instruments at selling energy and argon platforms all to the core customer in general surgery and dumb, we put the conservative guidance and I stood in front of our sales force and ask them specifically question, are you how are you feeling about your position with AirSeal relative to any other competitive entrants in the marketplace and not one of them is backing down. So we're being conservative on our guidance to you inside the business. The team is full charge, full speed and depth. My expectations are very high for that business.

該業務今年創下了紀錄。今年可能會再創紀錄。它正在出售整個投資組合。它正在銷售水牛過濾器。它銷售AirSeal，一些銷售錨定組織檢索袋，銷售手動器械，銷售能源和氬氣平台，所有這些都面向普外科和愚蠢的核心客戶，我們採取了保守的指導，我站在我們的銷售人員面前，向他們提出具體問題相對於市場上任何其他競爭者，您對自己在 AirSeal 的地位有何看法？沒有一家公司會退縮。因此，我們對業界對您的指導持保守態度。球隊充滿活力、速度十足、深度十足。我對該業務的期望非常高。

I appreciate that. Maybe there's one more just on a smoky back legislation headwinds in 2024 and what are the key states coming online what are the key ones for 2025 that we should be focusing on also?

我很感激。也許 2024 年還會有一個關於立法逆風的問題，哪些關鍵州即將上線，2025 年我們還應該關注哪些關鍵州？

Yes, I can't. I can't personally unlike the young, right? I mean, we know who's has things in the works. For example, we thought Texas might be the next state to sign something. They did not get that done before their legislative session adjourned.

是的，我不能。我個人不能與年輕人不同，對吧？我的意思是，我們知道誰在進行工作。例如，我們認為德克薩斯州可能是下一個簽署某些協議的州。他們在立法會議休會之前沒有完成這項工作。

So that will be hopefully taken up in their next session. And the other states that we show that have something in the works that could be close are Massachusetts, Pennsylvania, West Virginia, Virginia, North Carolina, and Florida. So some pretty sizable states in there.

因此，這將有望在下一次會議中得到解決。我們展示的其他正在開發中的項目可能接近的州包括馬薩諸塞州、賓夕法尼亞州、西維吉尼亞州、維吉尼亞州、北卡羅來納州和佛羅裡達州。那裡有一些相當大的州。

But I can't tell you by quarter or who's going to be first. And but it know, we would not be surprised if those that I just named off announce something in 2024. We also wouldn't be shocked if some of that drug out into 2025 is weak as we've experienced with others.

但我無法按季度告訴你或誰會是第一名。但它知道，如果我剛才點名的人在 2024 年宣布一些事情，我們不會感到驚訝。如果到 2025 年的某些藥物效果如我們在其他藥物中所經歷的那樣較弱，我們不會感到震驚。

So still really good activity. We've got if I have there, it really hasn't been there wasn't any states that announced since our last call, California was the last one that announced. But the states that have announced something represent 44% of the US population. And so there's still good momentum and a lot of states on OnDeck, but I can't predict timing, I think.

所以仍然是很好的活動。自從我們上次通話以來，確實還沒有任何州宣布這一消息，加州是最後一個宣布的州。但宣布某事的州代表了美國人口的 44%。因此，OnDeck 上仍然有良好的勢頭和很多狀態，但我認為我無法預測時間。

Thank you.

謝謝。

One moment for our next question.

請稍等一下我們的下一個問題。

And our next question comes from the line of Travis Steed from Bank of America. Your question, please Hey, thanks for taking the question.

我們的下一個問題來自美國銀行的 Travis Steed。你的問題，請嘿，謝謝你提出問題。

Just curious is until I started talking to their customers that you guys have learned anything new on the design or if it's still low pressure and you're still sticking with it being standard installation.

只是好奇的是，直到我開始與他們的客戶交談，你們才了解到有關設計的任何新知識，或者如果它仍然是低壓，並且你們仍然堅持採用標準安裝。

And that's the key thing here, and I've never heard them talk to their customers about it. I haven't heard him talk about it on their earnings call, we talked to we have a lot of similar shared key opinion leaders. And so I think we have a pretty good view of what they're bringing to market, which we very specifically highlighted at the end of the second quarter earnings call.

這是這裡的關鍵問題，我從未聽過他們與客戶談論過這一點。我沒有聽他在財報電話會議上談論過這個問題，我們也採訪過很多類似的共同關鍵意見領袖。因此，我認為我們對他們向市場推出的產品有很好的了解，我們在第二季財報電話會議結束時特別強調了這一點。

We know they talk to their sales team about it at their sales meeting as was publicly reported by many, but we work very closely with Intuitive with AirSeal and their training programs. And I do not believe there's anything in the marketplace or anything coming to the marketplace that is even in the same ZIP Code as AirSeal.

我們知道，正如許多人公開報導的那樣，他們在銷售會議上與銷售團隊討論了這個問題，但我們與 Intuitive 的 AirSeal 及其培訓計劃密切合作。我不相信市場上有任何東西或即將上市的任何東西與 AirSeal 具有相同的郵遞區號。

Then I'll end there, Kina and there, Kurt, I just wanted to be clear for those that are listening when Kurt says that we know they talked about it to their sales force, they talked about their new robot to the sales force. And if you listened to what they said public, right? And what they're focused on what solutions this new product is supposed to address.

然後我就到此結束，Kina 和Kurt，當Kurt 說我們知道他們向銷售人員談論了這件事，他們向銷售人員談論了他們的新機器人時，我只是想向那些正在聽的人澄清這一點。如果你聽了他們公開說的話，對吧？以及他們關注的重點是這個新產品應該解決什麼解決方案。

There was no mention from Intuitive about insufflation. So this is not a new insufflation robot there solving many other problems that are focused on. I think it is safe to say that insufflation is not on their top 10 list of features of this robot. The shorts on Con Ed has made it about it. Insufflation robot. Intuitive has never framed it that way.

Intuitive 並沒有提及充氣。因此，這並不是一個新的吹氣機器人，它解決了人們關注的許多其他問題。我認為可以肯定地說，充氣並不在該機器人的十大功能清單中。《聯合埃德》的短片就講述了這一點。充氣機器人。直覺從來沒有這樣定義過它。

And Travis, I want to correct something. You said so that the audience is not confused. You said it's still low pressure. It has never been low pressure. There is zero evidence anywhere that is low pressure. That is an imagination. So there is no evidence that it's a low pressure device. All the evidence would suggest that if they do integrate insufflation, it would indeed be what is referred to as standard insufflation like everything that exist on the market today. That's what all the evidence points do. There is zero evidence to suggest that this product will compete clinically with AirSeal

崔維斯，我想糾正一些事情。你這麼說是為了讓觀眾不要感到困惑。你說的還是低壓。從來沒有低壓過。任何地方低壓的證據都為零。那是一種想像。所以沒有證據顯示它是低壓裝置。所有證據都表明，如果它們確實整合了充氣，那麼它確實會像當今市場上存在的所有產品一樣被稱為標準充氣。這就是所有證據點的作用。零證據顯示該產品將與 AirSeal 進行臨床競爭

And the electronic world of people centered around images of two inflators hooked up, and that's how they're going to get to low. I got news for folks that stuff's been around for a long time. There's nothing in the market that's anywhere near AirSeal and has the volume of patients and the clinical studies behind that AirSeal has. So there's no there's no one more anxious for the robotic company to get this device in the market. So we can demonstrate once and for all, there is no risk here to the AirSeal franchise.

人們的電子世界以兩個充氣機連接在一起的圖像為中心，這就是他們如何降低壓力的方式。我給人們帶來了消息，這些東西已經存在很久了。市場上沒有任何產品可以與 AirSeal 相媲美，並且擁有如此多的患者數量以及 AirSeal 背後的臨床研究。因此，沒有人比機器人公司更渴望將這項設備推向市場。因此，我們可以一勞永逸地證明，AirSeal 特許經營權不存在任何風險。

Thanks for the thorough answer. And sorry, I'm sorry, I thought I may have misspoken question. I got it backwards. But the follow-up question I wanted to ask was on the capital revenue in the quarter was a little light versus Street expectations. And I think the businesses you're talking about the weaknesses and in Q4 were more recurring revenue and not capital. So just capital light in your mind in Q4 just curious if there's any one-time things and the capital thing to talk about this quarter?

感謝您的徹底回答。對不起，對不起，我想我可能問錯問題了。我把它搞反了。但我想問的後續問題是，本季的資本收入與華爾街的預期相比有點低。我認為你所談論的弱點和第四季的業務更多的是經常性收入，而不是資本。因此，您在第四季度的頭腦中只是想知道本季度是否有任何一次性的事情和資本的事情可以談論？

I'm sitting in my chair. I did not think capital was late in the quarter. I am I looked at our business in detail it,

我坐在椅子上。我認為本季資本並沒有遲到。我是我詳細看了我們的業務吧，

I mean not capital grew 43.8% in the quarter. Single-use products grew 29.2%. And now it is I will say the ortho business that is having the challenges right now is a higher capital business than the general surgery business.

我的意思不是資本在本季成長了 43.8%。一次性產品成長 29.2%。現在我想說的是，目前面臨挑戰的骨科業務是比一般外科業務資本更高的業務。

That's a kind of 30%, typically capital business. But overall, our capital growth was faster than our disciplined focus. And some of the some of the challenges in Q4 were in the capital side of the business in terms of the ortho side or the other impact that I kept.

這相當於 30%，通常是資本業務。但整體而言，我們的資本成長速度快於我們嚴格的專注程度。第四季的一些挑戰是在業務的資本方面，就正交方面或我保留的其他影響而言。

Okay. No, that's helpful clarification. Thank you.

好的。不，這是很有幫助的澄清。謝謝。

Thank you.

謝謝。

This does conclude the question and answer session of today's program. I'd like to hand the program back to you, Curt Hartman for any further remarks.

今天節目的問答環節到此結束。我想把程序交還給你，科特·哈特曼，以便進一步評論。

Thank you, Jonathan. And I just want to say thank you to everybody today for your time, and we look forward to speaking with you during our next earnings call. Thank you.

謝謝你，喬納森。我只想對今天大家抽出寶貴時間表示感謝，我們期待在下次財報電話會議上與您交談。謝謝。

Thank you, ladies and gentlemen, for your participation in today's conference. This does conclude the program. You may now disconnect. Good day.

女士們、先生們，感謝你們參加今天的會議。這確實結束了該程式。您現在可以斷開連線。再會。