Enovis Corp (ENOV) 2024 Q1 法說會逐字稿

Good day, and welcome to the Enovis First Quarter 2024 Earnings Conference Call. (Operator Instructions) Please note, this event is being recorded.

美好的一天，歡迎參加 Enovis 2024 年第一季財報電話會議。 （操作員說明）請注意，正在記錄此事件。

And now I would like to turn the conference over to Kyle Rose, Vice President of Investor Relations. Please go ahead.

現在我想將會議交給投資者關係副總裁凱爾羅斯 (Kyle Rose)。 請繼續。

Thank you, Marliese. Good morning, everyone, and thank you for joining us today on our first quarter 2024 results conference call. I'm Kyle Rose, Vice President of Investor Relations. Joining me on the call today are Matt Trerotola, Chair and Chief Executive Officer; and Ben Berry, Chief Financial Officer. Our earnings release was issued earlier this morning and is available in the Investor Relations section of our website, enovis.com. We will be using a slide presentation on today's call, which can also be found on our website. Both the audio and the slide presentation of this call will be archived on the website later today.

謝謝你，瑪莉絲。大家早安，感謝您今天參加我們的 2024 年第一季業績電話會議。我是凱爾·羅斯，投資者關係副總裁。今天和我一起參加電話會議的是董事長兼執行長 Matt Trerotola；和財務長本·貝裡。我們的收益報告於今天早上早些時候發布，可在我們網站 enovis.com 的投資者關係部分查看。我們將在今天的電話會議中使用幻燈片演示，也可以在我們的網站上找到該演示。本次電話會議的音訊和幻燈片簡報將於今天稍後在網站上存檔。

During the call, we'll be making some forward-looking statements about our beliefs and estimates regarding future events and results. These forward-looking statements are subject to risks and uncertainties, including those set forth in the safe harbor language in today's earnings release and in our filings with the SEC. Actual results might differ materially from any forward-looking statements that we make. The forward-looking statements speak only as of today, and we do not assume any obligation or intend to update them, except as required by law. For further details regarding any non-GAAP financial measures referenced during the call today, the accompanying reconciliation information relating to those measures can be found in our earnings press release and in the appendix of today's slide presentation.

在電話會議期間，我們將就我們對未來事件和結果的信念和估計做出一些前瞻性聲明。這些前瞻性陳述受到風險和不確定性的影響，包括今天的收益報告和我們向美國證券交易委員會提交的文件中以安全港語言闡述的風險和不確定性。實際結果可能與我們所做的任何前瞻性陳述有重大差異。前瞻性陳述僅代表今天的情況，我們不承擔任何義務或打算更新它們，除非法律要求。有關今天電話會議期間引用的任何非公認會計原則財務措施的更多詳細信息，可以在我們的收益新聞稿和今天幻燈片演示的附錄中找到與這些措施相關的隨附調節信息。

With that, let me turn it over to Matt, who will begin on Slide 3. Matt?

接下來，讓我把它交給馬特，他將從幻燈片 3 開始。

Thanks, Kyle. Hello, everyone, and thanks for joining us this morning. We had a strong first quarter, but before I begin to discuss the results, I want to welcome the Lima organization to Enovis and recognize the efforts of our strong global teams, who work hard every day to execute our strategies and help our patients live more active and fulfilling lives. Please note that as we fully integrate into 1 company with a global focus, we're managing the organization on a combined global basis, and we'll use pro forma rate for comparative purposes. For year-over-year comparisons, our prior year financials have been updated to include the acquisitions of Lima and Novastep.

謝謝，凱爾。大家好，感謝您今天早上加入我們。我們的第一季表現強勁，但在開始討論結果之前，我想歡迎利馬組織來到Enovis，並認可我們強大的全球團隊所做的努力，他們每天都在努力執行我們的策略並幫助我們的患者生活得更好積極而充實的生活。請注意，當我們完全融入一家專注於全球的公司時，我們將在全球範圍內管理該組織，並且我們將使用預計費率進行比較。為了進行年比比較，我們上一年的財務數據已更新，包括收購 Lima 和 Novastep。

Let's start on Slide 3 and talk about some of the quarter's highlights. We had a transformational start to the year. We completed our planned acquisition of Lima, made significant progress on our integration plans, and carried forward momentum from 2023 across our geographies and business units. We delivered reported growth of 27% year-over-year and 5% on a pro forma combined basis versus very strong comps. We expanded our adjusted EBITDA margin by 220 basis points, reflecting the mix impact of Recon growth, productivity improvements, stable inflation and pricing trends, and the step change impact from Lima. We closed the Lima acquisition in early January and are seeing strong momentum and healthy scaling of the broader set of acquisitions we've completed in the past few years. Overall, a strong start to the year.

讓我們從幻燈片 3 開始，討論本季的一些亮點。今年我們迎來了一個變革性的開端。我們完成了對 Lima 的收購計劃，在整合計劃方面取得了重大進展，並從 2023 年起在我們的各個地區和業務部門中延續了這一勢頭。據報告，我們的同比增長為 27%，與非常強勁的競爭對手相比，預計綜合增長率為 5%。我們將調整後的 EBITDA 利潤率擴大了 220 個基點，反映了 Recon 成長、生產力提高、穩定的通膨和定價趨勢以及利馬的階躍變化影響的綜合影響。我們在一月初完成了對利馬的收購，並看到我們在過去幾年中完成的一系列更廣泛的收購的強勁勢頭和健康規模。整體而言，今年開局強勁。

In Recon, on Slide 4, we delivered 66% reported global revenue growth. Pro forma Recon grew 7% year-over-year in the first quarter, which includes a 2% to 3% negative impact from integration dissynergies in line with our plan. U.S. Recon grew 4%, including 8% growth in U.S. extremities and flat performance in hips and knees against a very strong prior year comparable of 22% growth in our core Enovis business. Outside the U.S., we grew 10% in a resilient market. We've achieved significant progress integrating the Lima acquisition and are encouraged by the early execution of our combined teams.

在投影片 4 的 Recon 中，我們報告的全球收入成長了 66%。預計 Recon 第一季將年增 7%，其中包括按照我們計劃的整合不協同效應帶來的 2% 至 3% 的負面影響。 U.S. Recon 成長了 4%，其中美國四肢成長了 8%，臀部和膝蓋表現持平，而去年我們的核心 Enovis 業務成長了 22%，表現非常強勁。在美國以外，我們在富有彈性的市場中實現了 10% 的成長。我們在整合利馬收購方面取得了重大進展，並對合併團隊的早期執行感到鼓舞。

To date, we have seen some short-term growth impacts across anatomies and geographies as we've worked through the integration of our commercial channels. These fall well within our projected estimates, and our expectations for the full year remain intact. We look forward to ramping cross-selling opportunities as we move into the second half of 2024.

迄今為止，在我們整合商業管道的過程中，我們已經看到了跨解剖結構和地理區域的一些短期成長影響。這些完全符合我們的預期，並且我們對全年的預期保持不變。進入 2024 年下半年，我們期待增加交叉銷售機會。

I'm excited about the initial traction we're seeing with our market-leading Power and AltiVate products globally. We continue to expand market access with the clearance of our AltiVate Small Shell in Q1 in Europe. We also have a strong pipeline of innovation, as we continue the U.S. rollout of the EMPOWR Revision Knee, controlled ramp of ARVIS 2.0, and selling Lima's 3D printed trabecular titanium clip cones for use with our EMPOWR Revision system, one of our first key cross-selling opportunities.

我對我們在全球市場領先的 Power 和 AltiVate 產品所看到的最初吸引力感到興奮。隨著我們的 AltiVate Small Shell 於第一季在歐洲獲得批准，我們繼續擴大市場准入。我們也擁有強大的創新管道，我們繼續在美國推出EMPOWR Revision Knee、ARVIS 2.0 的受控坡道，並銷售利馬的3D 列印小梁鈦夾錐體，與我們的EMPOWR Revision 系統（我們的第一個關鍵交叉系統之一）一起使用- 銷售機會。

I'm also very excited to announce that just earlier this week, ARVIS received 510(k) clearance for use in shoulders. This timing aligns well with our planned launch of the Augmented Glenoid component of our flagship AltiVate Reverse Shoulder system in the second half of the year. Our Foot & Ankle team continued to launch great new differentiated technologies like the Arsenal Reload that are keeping the vitality high and helping drive very strong double-digit growth. These great new technologies alongside the cross-selling potential of the combined portfolios offer significant opportunity to accelerate growth in the second half of 2024 and set us up with great momentum as a $1 billion-plus fast-growing Recon business entering 2025.

我還非常高興地宣布，就在本週早些時候，ARVIS 獲得了可用於肩部的 510(k) 許可。這一時機與我們計劃在今年下半年推出旗艦產品 AltiVate Reverse Shoulder 系統的增強關節盂組件非常吻合。我們的足部和腳踝團隊繼續推出出色的新差異化技術，例如 Arsenal Reload，這些技術保持了高活力並幫助推動了非常強勁的兩位數成長。這些偉大的新技術加上組合產品組合的交叉銷售潛力，為2024 年下半年加速成長提供了重大機會，並為我們進入2025 年成為價值超過10 億美元的快速成長的Recon 業務奠定了巨大的動力。

In P&R, on Slide 5, our 3% organic growth reflects a stable market environment and disciplined execution. Overall, this business is performing in line with our strategic plan. Recovery Sciences led growth boosted by continued double-digit laser growth, and Global Bracing continued to grow above market rates. Our new product pipeline is robust and includes the new OA knee brace called ROAM, additional spine bracing products, and the next generation of clinical electrotherapy products for our Recovery Sciences team.

在投影片 5 上的 P&R 中，我們 3% 的有機成長反映了穩定的市場環境和嚴格的執行力。整體而言，該業務的表現符合我們的策略計劃。在雷射持續兩位數成長的推動下，恢復科學引領了成長，而全球支撐的成長持續高於市場水準。我們的新產品線非常強大，包括名為 ROAM 的新型 OA 護膝、其他脊椎支撐產品以及為我們的復育科學團隊提供的下一代臨床電療產品。

Adjusted EBITDA margins in P&R improved 50 basis points year-over-year, as we continued to use EGX tools to drive consistent productivity improvements and sustained traction on price versus cost.

由於我們繼續使用 EGX 工具來推動生產力的持續提高以及價格與成本之間的持續牽引，P&R 的調整後 EBITDA 利潤率同比提高了 50 個基點。

Now I'll let Ben take you through the P&L details. Ben?

現在我將讓本帶您了解損益表的詳細資訊。本？

Thanks, Matt. Hello, everyone. I'll begin on Slide 6. We are pleased to report first quarter sales of $516 million, up 27% versus the prior year and 5% on a pro forma basis. This compares to a strong prior year organic core growth of 9%. Our teams have been working really hard to integrate our global Lima acquisition that closed January 3. We've been extremely pleased so far with the collaboration and our teams and the high-quality integration plans that we've begun executing against.

謝謝，馬特。大家好。我將從幻燈片 6 開始。相較之下，上年有機核心成長率為 9%。我們的團隊一直在努力整合我們於 1 月 3 日完成的全球利馬收購。

Our underlying growth in P&R and Recon continues to be solid, and while still early, our integration efforts are slightly ahead of our original plans. First quarter adjusted gross margin was 58.7%, up 70 basis points year-over-year. The growth was driven by leverage from higher sales, favorable segment mix, which includes the addition of Lima and cost leverage. Our first quarter adjusted EBITDA margin of 16.1% was up 220 basis points versus Q1 2023.

我們在 P&R 和 Recon 方面的基本成長仍然穩健，雖然還處於早期階段，但我們的整合工作略超前於我們最初的計劃。第一季調整後毛利率為58.7%，較去年成長70個基點。這一成長是由更高的銷售額、有利的細分市場組合（包括利馬的增加和成本槓桿）的槓桿所推動的。我們第一季調整後 EBITDA 利潤率為 16.1%，比 2023 年第一季成長了 220 個基點。

First quarter's effective tax rate was 23%. This is compared to 21% last year. Interest expense was $20 million for the quarter versus $6 million in 2023. Overall, we posted strong adjusted earnings per share of $0.50, 14% earnings growth versus the prior year. Foreign currency exchange had an unfavorable impact of approximately $0.02 in the quarter.

第一季的有效稅率為23%。相比之下，去年這一比例為 21%。本季利息支出為 2,000 萬美元，而 2023 年為 600 萬美元。外幣兌換對該季度產生了約 0.02 美元的不利影響。

Turning to Slide 7. We are raising our prior guidance to reflect the strong start to the year. We now expect revenues in the range of $2.06 billion to $2.16 billion. This is slightly above our previous guidance range, which contemplated 7% pre Lima organic growth, double-digit Recon growth, and low single-digit P&R growth. As we go forward, in 2024, we will be reporting our pro forma results. Our updating guidance range increase translates to approximately 5% to 6% pro forma growth and includes acquisition-related impacts.

轉向幻燈片 7。我們目前預計營收在 20.6 億美元至 21.6 億美元之間。這略高於我們先前的指導範圍，預計利馬之前的有機增長為 7%，Recon 增長為兩位數，P&R 增長為低個位數。展望未來，我們將在 2024 年報告我們的預期結果。我們更新的指導範圍增加相當於預期成長約 5% 至 6%，並包括與收購相關的影響。

In Recon, the pro forma outlook translates to high single-digit growth for the year. We expect this growth to accelerate in the second half as we annualize higher prior year comps and begin realizing benefits from cross-selling and new product launches. We continue to expect stable P&R growth in the low to mid-single digits, as was reflected in our original guidance. We expect adjusted EBITDA in the range of $368 million to $383 million, which includes a modest increase to the range based on our Q1 performance.

在《偵察》中，預計今年的前景將實現高個位數成長。我們預計下半年這種成長將加速，因為我們對上一年的年化比較進行了更高的計算，並開始實現交叉銷售和新產品發布的效益。正如我們最初的指導所反映的那樣，我們繼續預期 P&R 會穩定在中低個位數成長。我們預計調整後的 EBITDA 在 3.68 億美元至 3.83 億美元之間，其中包括根據我們第一季業績的適度增長。

Our guidance for depreciation, interest and other expenses, tax rate and share count remains unchanged from the prior guidance. Taking all this into consideration, and as a result of our strong operational results in the first quarter, we are increasing our adjusted earnings per share range to $2.52 to $2.67.

我們對折舊、利息和其他費用、稅率和股票數量的指導與先前的指導保持不變。考慮到所有這些因素，並且由於我們第一季強勁的營運業績，我們將調整後每股收益範圍提高到 2.52 美元至 2.67 美元。

To summarize, on Slide 8, we had a solid start to 2024 and continue to shape the business towards accelerated growth and scale with the acquisition of Lima. We are excited about our progress in the first quarter and remain focused on successfully executing against our integration plans, creating momentum, and delivering strong financial results.

總而言之，在幻燈片 8 上，我們在 2024 年有了一個良好的開端，並透過收購利馬繼續推動業務加速成長和擴大規模。我們對第一季的進展感到興奮，並將繼續專注於成功執行我們的整合計劃、創造動力並交付強勁的財務業績。

Now I'll hand it back over to Kyle to start Q&A. Kyle?

現在我將把它交還給凱爾開始問答。凱爾？

Thanks, Ben. Before we begin the Q&A session, in an effort to accommodate everyone on the call, we ask that analysts please keep the questions to one question and followed by one follow-up question. You're welcome to rejoin the queue if we have time. With that, we'll hand it over to the operator to start Q&A.

謝謝，本。在我們開始問答環節之前，為了方便參加電話會議的每個人，我們要求分析師將問題保留為一個問題，然後提出後續問題。如果我們有時間，歡迎您重新加入隊列。這樣，我們就會交給操作員來開始問答。

(Operator Instructions) At this time, we'll start with a question from Vik Chopra from Wells Fargo.

（操作員說明）此時，我們將從富國銀行的 Vik Chopra 提出的問題開始。

I'll keep it to one. So based on our math, Lima came in ahead of our estimates. We estimated about $85 million. Can you just talk about what you're seeing with regards to the integration, and what drove the upside? And then you also called out 2% to 3% negative growth impact from the integration. Would really appreciate if you can elaborate on that, please.

我會把它保留為一。因此，根據我們的計算，利馬的排名超出了我們的估計。我們估計約為 8500 萬美元。您能否談談您對整合的看法以及推動其上行的因素是什麼？然後您也指出整合會帶來 2% 到 3% 的負成長影響。如果您能詳細說明這一點，我將不勝感激。

I missed the very end of the question there about the 2% to 3%.

我錯過了關於 2% 到 3% 問題的最後部分。

Sorry, I was saying we thought you called out 2%, 3% negative growth impact from the integration. Just any color on that would be appreciated.

抱歉，我是說我們認為您指出了整合帶來了 2%、3% 的負成長影響。任何顏色都將受到讚賞。

Yes, absolutely. So yes, I mean, we saw a good solid start to the year as expected, both in terms of our performance on the integration front as well as driving good progress in the core business that we've talked about through the quarter in various settings. We talked about the market environment, which really, last year, there was a super clean market environment and very high utilization rates. I think this year was probably a more normal market environment with storms and illnesses and different things. And so I think that that's resulted in a little softer market growth, quite a bit softer than last year. And so that's certainly an impact, but we've continued to drive strong performance against the market.

是的，一點沒錯。所以，是的，我的意思是，我們在今年取得了良好的開局，正如預期的那樣，無論是在整合方面的表現，還是在推動核心業務方面取得良好進展，我們在整個季度的各種環境中都談到了這一點。我們談到市場環境，確實去年市場環境超乾淨，使用率非常高。我認為今年可能是一個更正常的市場環境，有風暴、疾病和不同的事情。因此，我認為這導致市場成長稍微疲軟，比去年疲軟得多。因此，這肯定是一個影響，但我們繼續在市場上取得強勁的業績。

But then we have been working quickly to do the integration, as we've talked about all along, and as we've worked through the channel integration in the U.S. and in certain countries outside the U.S., there's choices that we've made in some cases, choices that agents have made in other cases that have led to some loss of business that was planned and expected. And as we've talked about all along, we've tried to work through it quickly, so that we can have kind of impact the business here in the first year and then leave it behind. And that's impacted the U.S. significantly, but also has had some impact in other countries. And It's that impact on the hip and knee side as well as on the shoulder side.

但是，正如我們一直在談論的那樣，我們一直在快速進行整合，並且當我們在美國和美國以外的某些國家進行渠道整合時，我們做出了以下選擇：在某些情況下，代理商在其他情況下所做的選擇導致了一些計劃和預期的業務損失。正如我們一直以來所談論的，我們一直試圖快速解決這個問題，這樣我們就可以在第一年對這裡的業務產生某種影響，然後將其拋在腦後。這對美國產生了重大影響，但也對其他國家產生了一些影響。這就是對臀部和膝蓋側以及肩膀側的影響。

And so we've tried to give you a clear look with the pro forma growth, but also talk a little bit about the impact of the integration, so that you can see that the underlying business is certainly in a quarter with a strong comp and a little softer market, but the underlying business is still very strong, and we've got a great path to accelerate through the year and exit the year on a very strong growth arc.

因此，我們試圖讓您清楚地了解預計增長，但也談論了一些整合的影響，以便您可以看到基礎業務肯定處於具有強勁競爭和優勢的季度。有一條很好的道路可以在這一年中加速並以非常強勁的成長弧結束這一年。

And our next question comes from Jeff Johnson from Baird.

我們的下一個問題來自貝爾德 (Baird) 的傑夫·約翰遜 (Jeff Johnson)。

So Matt, I don't want to give you a big softball here, but I guess, just help me on the math. If you did 7% Recon growth, is it fair to think about those 2 to 3 points of dissynergies. I think you also had one less selling day with Easter at the end of the quarter. Recon would then have been closer to 9%, 10% -- 10%, 11%, if not for those dissynergies in the selling days. Is that how we should be conceptually thinking about this?

所以馬特，我不想在這裡給你一個大壘球，但我想，只是幫我做數學題。如果偵察兵增加了 7%，考慮那 2 到 3 個點的不協同是否公平。我認為本季末復活節期間銷量也減少了一天。如果不是因為銷售期間的不協同效應，Recon 的銷售量會接近 9%、10%、10%、11%。我們應該這樣從概念上思考這個問題嗎？

Yes. Yes, I think that's the right way to think about it, Jeff.

是的。是的，我認為這是正確的思考方式，傑夫。

Okay. And then just on the extremities side, you called out the 8% growth there. You did point most of that to foot and ankle. Obviously, you had the dissynergy, the selling days that impacted there as well. But just can you talk about your core underlying kind of shoulder growth, whether that's just in the core Enovis, the AltiVate product in that? Obviously, competition is growing in shoulders as well. So just how do you perceive kind of shoulder market and your performance in the shoulder market ex kind of some of this noise from the integration and selling days?

好的。然後就在四肢一側，你提到了 8% 的增長。你確實把大部分都指向了腳和腳踝。顯然，你遇到了不協同效應，銷售日也受到了影響。但您能否談談您的核心潛在肩部生長類型，是否僅在核心 Enovis、AltiVate 產品中？顯然，競爭也在加劇。那麼，除了整合和銷售日帶來的一些噪音之外，您如何看待肩膀市場以及您在肩膀市場上的表現？

Yes. Excluding some of the integration impacts, we still see ourselves in a good above-market growth range in our shoulder, and have a great opportunity as we work through the year here to even strengthen that further. The Augmented Glenoid that we'll launch kind of here probably late in the second quarter and really ramp in the second half of the year are going to give us a great additional weapon in terms of driving more share gain in shoulders and the cross-selling opportunities are terrific in shoulder.

是的。排除一些整合影響，我們仍然認為自己處於高於市場的良好成長範圍，並且在我們全年努力的過程中，有很大的機會進一步加強這一點。我們可能會在第二季度末在這裡推出增強型關節盂，並在下半年真正推廣，這將為我們提供一個強大的額外武器，以推動更多肩部份額增長和交叉銷售機會就在肩上。

And then as I said in my comments, we've also gotten ARVIS cleared in the shoulder. And while that won't have much impact this year in terms of revenue, because we'll be in the early launch phase, I think it just continues to send a very strong message to the market about the strength of our leadership in shoulder and our commitment to continue to be an innovation leader there.

正如我在評論中所說，我們也獲得了 ARVIS 的支持。雖然這不會對今年的收入產生太大影響，因為我們將處於早期發布階段，但我認為這將繼續向市場發出一個非常強烈的信息，表明我們在肩負和我們致力於繼續成為那裡的創新領導者。

Our next question comes from Young Li from Jefferies.

我們的下一個問題來自 Jefferies 的 Young Li。

All right. Great. I guess I wanted to hear a little bit more about cross-selling opportunities as you get through some of these early integration choppy period. It seems like we'll see more of the benefit in the second half in the U.S., and OUS seems pretty solid. Maybe you can talk a little bit about timing as well as key products within categories on cross-selling.

好的。偉大的。我想當你經歷一些早期整合的波濤洶湧的時期時，我想聽到更多關於交叉銷售機會的資訊。看來我們下半年會在美國看到更多的好處，而且 OUS 看起來相當穩固。也許您可以談談交叉銷售的時機以及類別內的關鍵產品。

Yes. Yes, for sure, Young. Thanks for the question there. I mean we're extremely excited about the cross-selling opportunity. Actually, I got to join the global sales conference that we had over in London for our Recon teams. And it was really tremendous to see how far the team had already gotten on creating really specific and aggressive cross-selling opportunities. I'll mention a few. First, we talked about here in the U.S. market kind of immediate opportunity to bring revision cones into the U.S. market and then more aggressively sell the custom Promade products that Lima has. And so it's early days on those, but we've already gotten a little bit started there, and we expect to see a nice ramp down the back half of the year on those.

是的。是的，當然，楊。謝謝你的提問。我的意思是，我們對交叉銷售機會感到非常興奮。事實上，我參加了我們在倫敦為 Recon 團隊舉辦的全球銷售會議。看到團隊在創造真正具體和積極的交叉銷售機會方面已經取得了多大的進展，真是太棒了。我會提到一些。首先，我們在美國市場討論了將修正錐帶入美國市場，然後更積極地銷售利馬擁有的客製化 Promade 產品的直接機會。因此，現在還處於早期階段，但我們已經開始了一些工作，我們預計在今年下半年會看到一個不錯的進展。

And our teams are pretty excited about the SMR shoulder, not as a kind of our core shoulder product. The AltiVate is really our flagship, but there are specific situations where the SMR can be quite attractive, and we expect to see some nice cross-selling there as well. Second, outside the U.S., we're still early days in terms of driving down AltiVate. We have just started to ramp up the Mathys cross-selling. And so now across a much broader landscape with Mathys and Lima's channels, we've got a great opportunity for many years to come with EMPOWR and AltiVate.

我們的團隊對 SMR 肩部感到非常興奮，而不是作為我們的核心肩部產品。 AltiVate 確實是我們的旗艦產品，但在某些特定情況下，SMR 可能相當有吸引力，我們預計也會在那裡看到一些不錯的交叉銷售。其次，在美國以外的地區，我們在推動 AltiVate 發展方面仍處於早期階段。我們剛開始加強 Mathys 交叉銷售。因此，現在透過 Mathys 和 Lima 的管道，跨越更廣闊的前景，我們多年來有一個與 EMPOWR 和 AltiVate 合作的絕佳機會。

And as I shared, we just got some additional market access, which is very important on AltiVate. A large portion of our cases in the U.S. with AltiVate are Small Shell, and so that market access really helps to give a boost there on those broad cross-selling opportunities. And then the third thing that actually is really exciting, and I probably kind of underappreciated until I was at this conference in the room where the team was talking about it.

正如我所分享的，我們剛剛獲得了一些額外的市場准入，這對 AltiVate 來說非常重要。我們在美國與 AltiVate 合作的大部分案例都是小殼公司，因此市場准入確實有助於促進這些廣泛的交叉銷售機會。第三件事實際上非常令人興奮，我可能有點低估了，直到我參加這次會議，在團隊正在討論它的房間裡。

There's a number of actually very interesting cross-selling opportunities between Lima and Mathys. Revision products on the Lima side that the Mathys team is excited about. Allergy-free products on the Mathys side that the Lima team are excited about. And so there's really just kind of organic energy that has come between those teams in terms of some things outside the U.S. beyond the sort of larger and longer AltiVate and EMPOWR opportunities.

Lima 和 Mathys 之間存在著許多實際上非常有趣的交叉銷售機會。 Mathys 團隊對利馬一側的修訂產品感到興奮。 Lima 團隊對 Mathys 的防過敏產品感到興奮。因此，除了更大、更長的 AltiVate 和 EMPOWR 機會之外，這些團隊之間在美國以外的一些事情上確實存在著有機的能量。

So a lot of great opportunities. Get them ramped up right now. We did a lot of training in this meeting in March, and now starting to get the instrument sets into the market, get the funnels built. And we'd expect that down the back half of the year, we'll start to see the synergy ramp and start to hit kind of full stride going into next year.

所以有很多很好的機會。現在就讓他們加速吧。我們在三月的會議上做了很多培訓，現在開始將儀器投入市場，建立管道。我們預計，在今年下半年，我們將開始看到協同效應的增強，並開始在明年全面邁進。

The question is coming from Brandon Vazquez from William Blair.

這個問題來自威廉·布萊爾的布蘭登·巴斯克斯。

I'll ask 2 upfront here. The first is just as you guys are integrating Lima here, can you talk to us about logistically what needs to happen still? What are the milestones we should keep an eye out for? Are there any ERP integrations, SAP integrations, things like that? And then maybe a quick follow-up as well is, just a little bit of -- can you give us some color on gross margins, how they trended in the quarter and how you expect those to trend through the rest of the year, especially as you integrate some of the Lima business as well?

我會在這裡提前問2。第一個是，當你們正在整合利馬時，你能和我們談談後勤方面還需要發生什麼嗎？我們應該關注哪些里程碑？有 ERP 整合、SAP 整合之類的嗎？然後也許還有一個快速的後續行動，只是一點點——你能給我們一些關於毛利率的信息嗎？你們也整合了利馬的一些業務嗎？

Brandon, as far as key integration milestones, the biggest focus so far has been on the commercial side, working through the different channel decisions and the implementation of them, and we're a good way through those in the U.S. and outside the U.S. Ramping up the cross-selling, as I talked about, has been another key piece of the integration so far. There have been some quick and thoughtful cost actions that we took in the first quarter in terms of starting to get after the cost opportunities, but more of that to come, but we did some very quick moves as we put the 2 teams together outside the U.S. and as we tucked the U.S. team into our team here in the U.S. So that's been another key thing that we've done so far.

布蘭登，就關鍵的整合里程碑而言，迄今為止最大的焦點是商業方面，透過不同的管道決策及其實施進行工作，我們在美國和美國以外的地區都取得了很好的進展。所說，到目前為止，交叉銷售是整合的另一個關鍵部分。我們在第一季採取了一些快速且深思熟慮的成本行動，開始抓住成本機會，但還會有更多這樣的行動，但當我們將兩支球隊放在一起時，我們採取了一些非常快速的行動。

As we look forward, there are some things to do in terms of IT systems, but we're taking a very thoughtful step-by-step approach on that. So there's no big scary ERP integration coming that could be a big issue. More of kind of step-by-step making the changes in terms of kind of SKUs and systems and how systems interchange and connect, et cetera. And we will work our way into kind of well-aligned systems, but that's not any kind of big, big giant thing versus a step-by-step thoughtful approach.

展望未來，IT 系統方面還有一些工作要做，但我們正在採取非常周到的逐步方法。因此，不會出現可怕的 ERP 集成，這可能會成為一個大問題。更多的是在 SKU 和系統類型以及系統如何交換和連接等方面逐步進行更改。我們將努力建立一種協調一致的系統，但這並不是什麼大事，而是一步步深思熟慮的方法。

We've also got a couple of years of operational synergies to get after over the coming years that will be step-by-step movement of things that are getting us cost opportunities, some in sourcing, some movement type of things. And then finally, we've done a lot of good work on just thinking about how the innovation pipelines and the product lines are going to come together and making some early choices around that. But it will be, again, a thoughtful multiyear process of merging the innovation pipelines and product pipelines. So we've got a great managing process, great talent focused on this. So far, things are going very well. We know it's important to stay on top of that. So there's certainly a lot more work to come, but we feel very good about where we are right now.

我們還需要在未來幾年內實現幾年的營運協同效應，這將是逐步的變化，為我們帶來成本機會，一些是採購機會，一些是移動類型的東西。最後，我們做了很多很好的工作，只是思考創新管道和產品線將如何結合在一起，並圍繞它做出一些早期選擇。但這將是一個經過深思熟慮的多年合併創新管道和產品管道的過程。因此，我們擁有出色的管理流程和專注於此的優秀人才。到目前為止，一切進展順利。我們知道掌握這一點很重要。當然還有很多工作要做，但我們對目前的情況感覺非常好。

Yes. And Brandon, on gross margins, we were 70 basis points ahead of last year in the quarter. We would expect that to slightly accelerate through the course of the year, especially as we kind of get aligned with all the things that we've been talking about here. Both businesses continue to leverage the EGX capabilities that we have, and I would see some decent progression throughout the course of the year there on gross margin.

是的。 Brandon，就毛利率而言，本季我們比去年同期高了 70 個基點。我們預計這一速度在這一年中會略有加速，特別是當我們與我們在這裡討論的所有事情保持一致時。兩家公司都將繼續利用我們擁有的 EGX 功能，我預計全年毛利率將取得不錯的進展。

Next question comes from George Sellers from Stephens.

下一個問題來自史蒂芬斯的喬治·塞勒斯。

Congrats on the quarter. Maybe to shift to the foot and ankle portfolio. You called out that as a nice bright spot. Could you just give some additional color on maybe some of the specific devices that are driving such strong performance? And maybe how we should think about the macro environment and the health of the consumer on that portfolio versus some of the other devices in your portfolio? And then lastly, what are you seeing from a competitive perspective as well?

恭喜本季。也許會轉向腳部和腳踝的產品組合。你稱這是一個不錯的亮點。您能否為某些驅動如此強大性能的特定設備提供一些額外的資訊？也許我們應該如何考慮該產品組合中的宏觀環境和消費者的健康狀況，以及您產品組合中的其他一些設備？最後，從競爭的角度來看，您也看到了什麼？

Yes, sure. So foot and ankle had a good strong quarter. I think it was a healthy market environment in foot and ankle, maybe kind of a little less of a strong comp there and a good healthy market environment to start the year and that's continuing here as we start the second quarter. We've got a number of key technologies that drive the growth there. Our DynaNail products or the DynaNail family based on nickel sheet metal alloys has been very strong, and we continue to bring additional technologies into that family. The Novastep product that we acquired in last year in the minimally invasive bunion space are driving nice growth as well, and we're excited about that participation now into that large forefoot market.

是的，當然。所以腳和腳踝有一個很好的強勁季度。我認為足部和腳踝的市場環境是健康的，也許那裡的競爭力稍微弱一些，而今年開始的市場環境也很健康，隨著我們第二季的開始，這種情況仍在繼續。我們擁有許多推動該領域成長的關鍵技術。我們的 DynaNail 產品或基於鎳金屬板材合金的 DynaNail 系列非常強大，我們將繼續為該系列引入更多技術。我們去年在微創拇囊炎領域收購的 Novastep 產品也推動了良好的成長，我們對現在參與這個龐大的前足市場感到興奮。

The Arsenal Reload that I talked about is the next generation of our plating products, which apply across the space. And we've got IP protected technology around the fascinating devices on our plating and some really great new plates that leverage that technology that we think are going to bring a real boost as well. And as we talked about, Star has been stabilized and I think ready to grow here now as well with some of the changes that we've made there.

我談到的 Arsenal Reload 是我們的下一代電鍍產品，適用於整個領域。我們在電鍍上的迷人設備周圍擁有智慧財產權保護技術，以及一些非常出色的新板材，它們利用了該技術，我們認為這些技術也將帶來真正的推動。正如我們所討論的，Star 已經穩定下來，我認為現在也準備好在這裡成長，並進行一些我們在那裡所做的改變。

So a number of great technologies across foot and ankle. But then very importantly, our channel continues to get more aligned. We've now got almost 70% of our channel fully aligned to our products. And that's something that we did a lot of work over the past few years to get there. And we know that that's going to pay a lot of dividends. A strong aligned channel that has taken us deeper and broader into the market with these great technologies is going to continue to fuel our growth going forward. And the products that we've acquired and developed over the past few years have really played a key role in exciting all these agents and distributors to become a part of our team.

因此，腳部和腳踝上有許多很棒的技術。但非常重要的是，我們的管道繼續變得更加一致。現在，我們幾乎 70% 的通路與我們的產品完全一致。為了實現這一目標，我們在過去幾年做了很多工作。我們知道這將帶來很多紅利。強大的聯合管道透過這些偉大的技術使我們更深入、更廣泛地進入市場，將繼續推動我們未來的成長。我們在過去幾年中收購和開發的產品確實在激勵所有這些代理商和經銷商成為我們團隊的一部分方面發揮了關鍵作用。

The next question is coming from Jason Wittes from ROTH MKM.

下一個問題來自 ROTH MKM 的 Jason Wittes。

So just a question about the impact of the integration. I know it was 2% to 3% this quarter. Does that run through the year? How should we be thinking about what the negative impact is -- or positive impact is for this year quarter by quarter?

所以只是關於整合影響的問題。我知道這個季度是 2% 到 3%。全年都這樣嗎？我們該如何思考今年每季的負面影響或正面影響是什麼？

Yes, so I think in terms of how much it impacts the year, we shared $20 million, $30 million as the expected impact when we did the acquisition. And that said, 2% to 3% of our Recon is more than 2% to 3% of Lima, of course. But I guess I would say, as we've talked about, we've been trying to get at this quickly. And so I think that we're likely to see that go from where it is now, probably increase a little bit in the second quarter as we get really in maybe probably the apex of the impacts from these integration things. And then I would expect that the back half, it would kind of flatten and drop as we get to the other side of some of the things that even started to impact us late last year or right at the beginning of the year. And also as we have some nice contributions coming through on the cross-selling side as well.

是的，所以我認為就其對今年的影響而言，我們在收購時分享了 2000 萬美元、3000 萬美元作為預期影響。也就是說，當然，我們偵察部隊的 2% 到 3% 比利馬的 2% 到 3% 還要多。但我想我會說，正如我們所討論的，我們一直在努力盡快解決這個問題。因此，我認為我們可能會看到這種情況從現在的情況來看，可能會在第二季度增加，因為我們可能真正達到了這些整合事物影響的頂峰。然後我預計，當我們到達一些去年年底或年初開始影響我們的事情的另一面時，後半部分會變得平坦和下降。而且我們在交叉銷售方面也做了一些很好的貢獻。

Okay. That's very helpful. And then just really quickly, in terms of the launches for the shoulder. In terms of the rollout, is that typically a 6- to 9-month process? Or what kind of timing should we be thinking about for how quickly you can roll those out and they have an impact on the numbers?

好的。這非常有幫助。然後就肩膀的發射而言，速度非常快。就推出而言，通常需要 6 到 9 個月的過程嗎？或者我們應該考慮什麼樣的時機才能推出這些產品，以及它們對數字的影響？

Yes. So the Augmented Glenoids, we will get into the market very quickly. There's obviously some early market participation that then leads to broader. But we would expect the Augmented Glenoids will be ramping aggressively in the back half of the year, and we've got a lot of -- we're already kind of in the process of the stocking of product and instrument sets to be able to ramp very fast in Augmented Glenoids.

是的。因此，增強關節盂，我們很快就會進入市場。顯然，早期的市場參與會導致更廣泛的市場參與。但我們預計增強型關節盂將在今年下半年大幅增加，而且我們已經有許多產品和儀器組的庫存，以便能夠增強關節盂的斜坡非常快。

And we really think that's been very important. We got that shoulder but more and more surgeons are using Augmented Glenoids in their procedures. And so we think that not only will that offer us some same-store selling opportunities in our existing surgeons, but it's really going to turn the heat up on our surge capture offense with Augmented Glenoids. So that will be a this-year impact and a very meaningful one.

我們確實認為這非常重要。我們得到了那個肩膀，但越來越多的外科醫生在他們的手術中使用增強關節盂。因此，我們認為，這不僅會為我們現有的外科醫生提供一些同店銷售機會，而且確實會加劇我們使用增強型關節盂的激增捕獲進攻。所以這將是今年的一個影響，也是一個非常有意義的影響。

ARVIS, much more of a kind of next year and beyond impact. It's clear, we're getting the market start doing cases and getting feedback. It's new technology and we want to make sure that we get it to exactly what's going to make a big difference in shoulder. And so for sure, we'll be iterative in terms of launch in the second half of the year that gives us some good feedback. And then iterating from there in 2025 and bringing more broader functionality. But for sure, our surgeons are going to be able to see crystal clear the vision of taking our great preoperative planning, using predictive analytics to create a great plan that can be presented intraoperatively with augmented reality guidance.

ARVIS，更多的是一種明年及以後的影響。很明顯，我們正在讓市場開始做案例並獲得回饋。這是一項新技術，我們希望確保它能夠對肩部產生巨大影響。因此，可以肯定的是，我們將在今年下半年的發布方面進行迭代，這會給我們帶來一些良好的回饋。然後在 2025 年以此為基礎進行迭代並帶來更廣泛的功能。但可以肯定的是，我們的外科醫生將能夠清楚地看到採取我們偉大的術前計劃的願景，使用預測分析來創建一個可以在增強現實指導下在術中呈現的偉大計劃。

And then capturing the data intraoperatively as the surgeons are being able to use that guidance to do those shoulder procedures. We're convinced that, that's really going to be a very exciting next wave in enabling tech for shoulders at a time that the market is ready for it.

然後在手術中捕獲數據，因為外科醫生能夠使用該指導來進行肩部手術。我們相信，在市場已經準備好的時候，這確實將是令人興奮的下一波肩部技術浪潮。

Our next question is coming from Vijay Kumar from Evercore ISI.

我們的下一個問題來自 Evercore ISI 的 Vijay Kumar。

Matt, apologies if you have answered this, but what was the organic performance, excluding Lima, right? Because I think the original Lima assumption was there would be some -- acquisition-related disruption in Lima would be flat. It feels like Lima came in above and the integration-related impact was on the base business. Can you just walk us through on why that impact was felt on the base business, not in Lima, and what Lima's performance was in the quarter?

馬特，如果你回答了這個問題，我很抱歉，但除了利馬之外，有機表現是什麼，對吧？因為我認為利馬最初的假設是，利馬將出現一些與收購相關的中斷。感覺利馬排在前面，與整合相關的影響是對基礎業務的影響。您能否向我們介紹為什麼這種影響只影響到基地業務，而不是利馬，以及利馬本季的表現如何？

Yes, Vijay, I'll take that one, if you don't mind. As we contemplated the guidance for Lima, we knew that the channel integration work was going to be something that we couldn't really predict which business it was going to come from, as we were making portfolio decisions, as we were thinking about how do we really kind of get to the selective alignment of our territories and making sure that we've got good participation in that.

是的，維傑，如果你不介意的話，我就買那個。當我們考慮利馬的指導時，我們知道通路整合工作將是我們無法真正預測它將來自哪個業務的事情，因為我們正在製定投資組合決策，因為我們正在考慮如何我們確實有選擇地調整我們的領土，並確保我們對此有良好的參與。

So as we think about kind of how we've seen it start to play out as you've seen some impacts on the legacy Mathys business and the legacy Enovis business. But all of that was contemplated in the guidance that we gave with regards to the amount of revenue coming in as a result of the acquisition. So we think it's most fair to really show the pro forma view to kind of include the all-up all-in view of what's happening.

因此，當我們思考它如何開始發揮作用時，您會看到對遺留的 Mathys 業務和遺留的 Enovis 業務的一些影響。但所有這些都在我們針對收購帶來的收入金額給予的指導中考慮到了。因此，我們認為最公平的做法是真正展示備考觀點，包括對正在發生的事情的全面看法。

And then what we've provided is our best view of some of the discontinuations and some of the dissynergies that came within the business, which we've said 2% to 3%. So if you kind of strip out the underlying performance of the core business and kind of look for a traditional organic kind of definition, our view is that our organic business would have been a little over 8% in the quarter for Recon, and then you add a little bit of a boost to that if you kind of take into consideration selling days as well. So that's kind of how we're thinking about it.

然後，我們提供的是我們對業務中出現的一些停產和一些不協同效應的最佳看法，我們說過 2% 到 3%。因此，如果你剔除核心業務的基本績效並尋找傳統的有機定義，我們的觀點是，我們的有機業務在本季度 Recon 的佔比將略高於 8%，然後你如果你也考慮到銷售天數，那就會增加一點點。這就是我們的想法。

Underlying performance of the core brands are still doing well. But as we think about the channel coming together in particular in the U.S. and some of the countries that have more overlap, that's where it's a little bit hard to really distinguish the difference between reported product in Lima versus legacy business. So that's why we think it's most appropriate to give the pro forma view. But overall, we still see strong performance in our core technologies.

核心品牌的基礎表現依然表現良好。但當我們考慮到通路的聚集，特別是在美國和一些有更多重疊的國家時，就很難真正區分利馬報告的產品與傳統業務之間的差異。所以這就是為什麼我們認為給出預期的觀點是最合適的。但總體而言，我們的核心技術仍然表現強勁。

Understood, Ben. And Matt, on this -- sorry, just sticking with the Recon, U.S. hip and knee, getting some questions here on flattish. I know the comp is tough. Was there any integration impact here on the U.S. Recon side? And Ben, can you just clarify when you say that the underlying Recon was about 8%. Was that 8% excluding the integration impact within Recon?

明白了，本。馬特，關於這一點——抱歉，我只是堅持使用偵察兵，美國的臀部和膝蓋，在這裡提出了一些關於扁平化的問題。我知道比賽很艱難。對美國偵察方面有任何整合影響嗎？ Ben，當你說基礎 Recon 大約是 8% 時，你能澄清一下嗎？這 8% 是排除 Recon 內的整合影響嗎？

Yes. Yes, excluding the integration impact. So if we look at like-for-like kind of underlying performance, our view would be a little over 8%, and that would take out those impacts.

是的。是的，排除整合影響。因此，如果我們看一下類似的基本表現，我們的觀點將略高於 8%，這將消除這些影響。

Understood. And Matt, sorry, on this...

明白了。馬特，抱歉，關於這個…

Yes, to pick up your hip and knee question there. Yes, I mean, for sure, there are some integration impacts there. Look, our hip and knee growth last year was 22%. And so there's an extremely strong comp there. And if you look over a longer time period, the results for this year would be, for the legacy business, 50% above 2019. And by our math, the industry in hip and knee is maybe mid-single, maybe high-single digits above 2019. So I think that the comp certainly is an effect in terms of the picture on hip and knee. And with or without the integration, we would have expected Q1 to be a softer growth quarter in hip and knee given the strength of the comp.

是的，在那裡回答你的臀部和膝蓋問題。是的，我的意思是，這肯定會產生一些整合影響。看，去年我們的臀部和膝蓋都增加了 22%。所以那裡有一個非常強大的競爭。如果你看更長的時間段，對於傳統業務來說，今年的結果將比2019 年高出50%。位數高於 2019 年。無論是否進行整合，考慮到競爭對手的實力，我們預計第一季髖關節和膝關節的成長將較為疲軟。

Second, there is an effect here that Lima in the U.S., while it was primarily a shoulder business, it did have a small hip and knee business, and the primaries in the small hip and knee business in Lima were not of focus at all and that was shrinking as we exited last year. And so there's a little bit of a tug that Lima business as well in hip and knee. And then, for sure, the integration effects are in hip and knee and shoulder, and there's some specific accounts and surgeons that we've lost as part of the integration that are having an impact on hip and knee as well.

其次，這裡有一個影響，美國的利馬雖然主要是肩部業務，但確實有小型臀部和膝蓋業務，而利馬的小型臀部和膝蓋業務的初選根本不是焦點，當我們去年退出時，這一數字正在縮小。因此，利馬的臀部和膝蓋也有一點拉力。然後，可以肯定的是，整合的影響是在臀部、膝蓋和肩膀上，並且作為整合的一部分，我們失去了一些特定的帳戶和外科醫生，這些帳戶和外科醫生也對臀部和膝蓋產生了影響。

Now if we look forward through the year, (inaudible) is another tough comp there, but then from there forward, the comps get much more normal. We also will start to clear through some of these integration effects and we expect to be able to keep ramping the revision even stronger now as we have the Lima comps. We've also got some additional accessories that we have coming through our pipeline on the revision side to give us broader access and provision. We've got ARVIS to ramp more aggressively as we move through the year as well. And so we've got plenty of confidence that our hip and knee growth will move back to a more normal range as we move through the year.

現在，如果我們展望這一年，（聽不清楚）是另一個艱難的比賽，但從那時起，比賽變得更加正常。我們也將開始清除其中一些整合效應，我們預計現在能夠繼續加大修訂力度，因為我們擁有利馬比較。我們還透過修訂方面的管道獲得了一些額外的配件，以便為我們提供更廣泛的訪問和供應。隨著這一年的推移，我們也讓 ARVIS 更加積極地發展。因此，我們有足夠的信心，隨著這一年的推移，我們的臀部和膝蓋的生長將恢復到更正常的範圍。

We have a question from Mike Matson from Needham.

我們有來自 Needham 的 Mike Matson 的問題。

This is Joseph on for Mike. Maybe just a follow up on the hip and knee. Do you think there's still kind of a backlog there for hip and knee procedures, larger than normal backlog, I guess?

這是麥克的約瑟夫。也許只是對臀部和膝蓋進行後續檢查。您是否認為髖關節和膝關節手術仍有積壓，我猜比正常積壓多？

Yes. So again, I think whether you look at the U.S. or you look outside the U.S., the cumulative growth since 2019 is still significantly less than 5 years of growth. And so that does certainly suggest that there are unserved patients there. If you look at early last year, the first 4 or 5 months of last year, things went really hot in the U.S. and some countries outside the U.S. And I think that was indicative of that backlog that lies there and sort of a high utilization environment that enabled higher rates.

是的。所以我再說一遍，我認為無論你看美國還是美國以外的地區，2019年以來的累積成長仍然明顯低於5年的成長。因此，這確實表明那裡有未得到服務的患者。如果你看看去年年初，去年的前 4 或 5 個月，美國和美國以外的一些國家的情況非常火爆，我認為這表明了那裡的積壓以及某種高利用率的環境這使得利率更高。

And so I think it seems reasonable that there is still backlog to be worked off F&A that can create some tailwind maybe later this year and in the years to come. But clearly, in the first quarter, looking at what we understand about our results and looking at the other results that have been posted, this was a kind of a slower growth quarter in the U.S. than where things were last year. And so clearly, that backlog is not being worked off right now. And I think we saw and understood that working through the quarter, that there were just various effects that were constraining kind of surgical supply with, like I said, whether it was storms or flu and different things.

因此，我認為仍有積壓的 F&A 工作需要處理，這似乎是合理的，這可能會在今年晚些時候和未來幾年創造一些順風車。但顯然，在第一季度，看看我們對業績的了解以及已發布的其他業績，美國的成長速度比去年慢。很明顯，積壓的訂單目前還沒有解決。我認為我們看到並理解，整個季度的工作中，有各種影響限制了外科手術供應，就像我說的，無論是風暴還是流感和其他不同的因素。

And that used to be pretty normal that in any given year, there were parts of the year where there were some crimps that were being put on supply. And so you have better months, worse months, better quarters, worse quarters, and you might be back into a more normal environment and there'll be periods where we think can run like hot because that backlog is there and the surgical capacity is very available and there'll be periods where the capacity is a bit constrained and that backlog just sits there.

這在過去是很正常的，在任何一年中，一年中的某些時候都會有一些壓接供應。因此，你有更好的幾個月，更糟糕的幾個月，更好的季度，更糟糕的季度，你可能會回到一個更正常的環境，並且會有一段時間我們認為可以像熱火一樣運行，因為積壓在那裡並且手術能力非常強可用，但有時容量會受到一些限制，積壓就在那裡。

Okay. Great. Yes, that makes sense. And then maybe just another quick one on ARVIS. If you do have anything more to add? I appreciate the color so far. But I guess, any metrics in terms of adoption or placements would be really helpful. I understand it's still early ramp, but yes, anything else would be great.

好的。偉大的。是的，這是有道理的。然後也許只是 ARVIS 上的另一個快速的。如果您還有什麼要補充的嗎？到目前為止我很欣賞這種顏色。但我想，任何有關採用或展示位置的指標都會非常有幫助。我知道現在還處於早期階段，但是是的，其他任何事情都會很棒。

Yes. So as I've shared before on knee, we've got sort of a few dozen surgeons using it right now by design. We got it to a number of surgeons, and we're really focusing on kind of having them use it a lot and making sure that all of them get ramped up in terms of utilization rates, and that we learn things that we need to in terms of how people are using it to make sure that as we move to taking it broadly into the marketplace, that it's going to be successful, both in terms of helping us to gain business and grow, but also that the surgeons will be using at high rates.

是的。正如我之前在膝蓋上分享的那樣，我們現在有幾十名外科醫生有意使用它。我們把它交給了一些外科醫生，我們真正關注的是讓他們大量使用它，並確保他們所有人的利用率都得到提高，並且我們學到了我們需要的東西人們如何使用它，以確保當我們將其廣泛推向市場時，它會取得成功，無論是在幫助我們獲得業務和成長方面，還是在外科醫生將在高利率。

If you look at some of the technologies that are out there, some of them are being used at high rates and some are not, and we want to make sure that ARVIS is used at high rates. And so this controlled launch I think puts us in a place to be able to make sure that happens as we work through this year. Definitely expect it to have a good positive impact on our knee business as we work through this year and get beyond that first couple of dozen surgeons into a broader marketplace. And then kind of years to come of opportunity to have good strong impact from ARVIS and knee. And also, we continue to work on additional technology pad beyond ARVIS in terms of making that hip and knee value proposition stronger and stronger in the enabling tech workflow area.

如果你看一下現有的一些技術，你會發現有些技術的使用率很高，有些則沒有，我們希望確保 ARVIS 的使用率很高。因此，我認為這次受控發射使我們能夠確保在今年的工作中實現這一目標。我們肯定希望它能夠對我們的膝蓋業務產生良好的積極影響，因為我們今年的工作將超越最初的數十名外科醫生，進入更廣闊的市場。在接下來的幾年裡，我們將有機會透過 ARVIS 和膝蓋產生強大的影響。此外，我們將繼續致力於 ARVIS 以外的其他技術平台，使臀部和膝蓋的價值主張在技術工作流程領域變得越來越強大。

On the shoulder front, just getting started this year. We've been working on that, obviously, for a little bit here, because we just cleared the regulatory with 510(k), but it will be just a very initial launch here in the second half of the year to get really good feedback on the software and the hardware and the instruments and then make sure that we make whatever adjustments we need to moving into next year. And there's also kind of multiple ways of technologies that we can bring through ARVIS there into the shareholder and we're going to get a good strong start this year and then build on that in '25 and beyond.

肩膀正面，今年才剛開始。顯然，我們已經在這方面做了一些工作，因為我們剛剛通過了 510(k) 的監管，但這只是今年下半年的一個非常初步的發布，以獲得非常好的反饋在軟體、硬體和儀器上，然後確保我們做出明年所需的任何調整。我們還可以透過 ARVIS 將多種技術方式帶給股東，我們將在今年取得良好的開局，然後在 25 年及以後在此基礎上再接再厲。

(Operator Instructions) We have a follow-up question from Vijay Kumar from Evercore ISI.

（操作員說明）Evercore ISI 的 Vijay Kumar 提出了後續問題。

Thanks for the follow-up here.

在此感謝您的關注。

You get a bonus, Vijay.

你得到了獎金，維傑。

Yes, I do. I wanted to touch on margin performance in the quarter. Were gross margins in line with your expectations? Because my understanding is Lima had somewhere in the 70s gross margin. So sequentially, when I'm looking at this, the mix improved rate, the dollar contribution from Recon improved, but gross margin was flattish, but operating margins came in well above. So just talk about the margin performance and how we should think about like for the back half? Does this give increased confidence in the back half margin ramp?

是的，我願意。我想談談本季的利潤率表現。毛利率符合您的預期嗎？因為我的理解是利馬的毛利率在 70 年代的某個地方。因此，當我看到這一點時，組合率有所改善，Recon 的美元貢獻有所改善，但毛利率持平，但營業利潤率卻遠高於此。那麼只談談利潤率表現以及我們應該如何考慮下半年的情況？這是否增強了人們對後半利潤率成長的信心？

Yes, Vijay, I think the number that you're thinking about with Lima is not a U.S. GAAP number, it's an IFRS number. So if you really translate Lima historical numbers into U.S. GAAP, there's some shift between gross margin and operating expenses. So the kind of underlying gross margin in the U.S. GAAP kind of translation is more in the higher 60s than it is kind of into the 70s. So that plus some of the mix of the business where we're getting some of the sales, I'd say, kind of gross margins were kind of largely in line with what our expectations were.

是的，Vijay，我認為您在 Lima 考慮的數字不是美國公認會計原則（U.S. GAAP）數字，而是國際財務報告準則（IFRS）數字。因此，如果你真的將利馬的歷史數據轉換為美國公認會計原則，那麼毛利率和營運費用之間就會出現一些變化。因此，按照美國公認會計原則 (GAAP) 計算，基本毛利率在 60 年代的水平比在 70 年代的水平要高。因此，加上我們獲得部分銷售額的一些業務組合，我想說，毛利率在很大程度上符合我們的預期。

As I said earlier, I would expect to see some acceleration of the company's gross margins kind of as we go through the course of the year. And overall, I mean, still excited about the opportunities of kind of potential synergies down the road as we improve kind of our Recon globalization and supply chain. There's lots of opportunity for us to continue to really embed EGX, to look at opportunities to expand our gross margin, to continue to shape the mix of the business in the right way that will help us to accelerate there.

正如我之前所說，我預計隨著這一年的發展，公司的毛利率會加速。總的來說，我的意思是，隨著我們改進偵察全球化和供應鏈，我們仍然對未來潛在協同效應的機會感到興奮。我們有很多機會繼續真正嵌入 EGX，尋找擴大毛利率的機會，並繼續以正確的方式塑造業務組合，這將有助於我們加速實現這一目標。

So like we've said, we still see the Recon business -- right now, we're in kind of a high 60s gross margin. We see opportunity to kind of get that well into the 70s, call it closer to the mid-70s over time. But this year, it would be just kind of, I'd say, relatively steady progress looking at where we are in Q1 and maybe seeing a slight acceleration as we go through the course of the year.

正如我們所說，我們仍然看到 Recon 業務——目前，我們的毛利率處於 60 年代的高點。我們看到了進入 70 年代的機會，隨著時間的推移，可以稱之為更接近 70 年代中期。但今年，我想說，從我們在第一季的情況來看，這將是相對穩定的進展，隨著我們全年的進程，可能會出現輕微的加速。

Sorry, on the operating margin line item, was there any timing impact of OpEx or cost synergies coming in above plan? Because it just feels like execution was slightly above?

抱歉，關於營業利益率項目，上述計畫中的營運支出或成本綜效是否有任何時間影響？因為感覺執行力略高？

Yes. I mean we're happy with the start. I mean, like we said, we were able to really identify what the go-forward org structure was going to look like as we closed the deal. So we were able to capitalize on some synergies right away, maybe slightly above our kind of initial expectations in the first quarter. But again, still well within kind of our expectation of what we've said for the year is where we're currently thinking. And like I said, there's the shift between kind of OpEx versus gross margin, which is kind of again aligned with what our expectations were.

是的。我的意思是我們對開始感到滿意。我的意思是，正如我們所說，當我們完成交易時，我們能夠真正確定未來的組織結構將會是什麼樣子。因此，我們能夠立即利用一些協同效應，可能略高於我們第一季的最初預期。但同樣，我們目前的想法仍然完全符合我們對今年所說的預期。正如我所說，營運支出與毛利率之間存在轉變，這再次與我們的預期相符。

Understood. Matt, maybe one for you. I saw the ARVIS 2.0 within the presentation. Where are we in terms of adoption of ARVIS? Are we at an inflection point? And what does 2.0 do, which is different from 1.0?

明白了。馬特，也許有一個適合你。我在演示中看到了 ARVIS 2.0。我們在 ARVIS 的採用上處於什麼階段？我們正處於拐點嗎？ 2.0 與 1.0 有何不同？

Yes. So 2.0 in the knee was after putting it down the controlled launch, getting a lot of feedback, we made a number of improvements on software and hardware that we're making it kind of easier to use in many ways, but also making it really very seamless with our EMPOWR instrument sets as well. And so the 2.0 was then kind of more of a full launch of ARVIS, but we definitely decided to do it in a step-by-step way just to make sure that given that it's brand new to the world of technology, let's get 15, 20 docs using it, get some good feedback, help them to ramp up, and then use what we learn there to make sure that as we go to a broader set of doctors, one, we've got a great value proposition in terms of being able to help them understand how it's going to be valuable, but also we've got the ability to help them to ramp up fast and effectively with it.

是的。因此，膝蓋中的 2.0 是在放下受控發射之後，獲得了大量反饋，我們對軟體和硬體進行了許多改進，我們在很多方面使其更易於使用，但也使其真正與我們的EMPOWR 儀器組也非常無縫。因此，2.0 更像是 ARVIS 的全面發布，但我們絕對決定以逐步的方式進行，只是為了確保考慮到它對於技術世界來說是全新的，讓我們獲得 15 ，20 名醫生使用它，獲得一些良好的回饋，幫助他們提高水平，然後利用我們在那裡學到的知識來確保當我們向更廣泛的醫生尋求幫助時，我們在以下方面獲得了巨大的價值主張能夠幫助他們了解它的價值，而且我們也有能力幫助他們快速有效地提升它。

And so that's what the 2.0 launch was, and we're right on track with that in terms of, as I said, a couple of dozen surgeons using ARVIS, some using it very heavily some less heavily. The ones that are using less heavily, we're learning why and how do we ramp them up in terms of how heavily they use it, and there's some good learnings there, both about how to ramp surgeons fast, but also about which surgeons to target more as we do the broader launch. And then we've now got plenty of inventory on hand ready to do a broader rollout as we work through this year, a lot of excitement in the field around the ability to bring ARVIS to a broader set of hip and knee surgeons, but particularly for the knee at this point as we work through this year.

這就是 2.0 的發布，正如我所說，我們正步入正軌，有幾十名外科醫生使用 ARVIS，有些外科醫生使用得非常多，有些則使用得較少。對於那些使用頻率較低的人，我們正在學習為什麼以及如何根據他們使用頻率的多少來提高他們的水平，並且那裡有一些很好的學習，既關於如何快速提高外科醫生的水平，也關於哪些外科醫生應該當我們進行更廣泛的發佈時，我們會瞄準更多目標。然後，我們現在手頭上有足夠的庫存，準備在今年進行更廣泛的推廣，圍繞將 ARVIS 帶給更廣泛的髖關節和膝關節外科醫生的能力，該領域充滿了興奮，但特別是在我們今年努力工作的這一點上。

So we would expect that number to expand and be a good facilitator to our knee conversion efforts. But also start to generate a small but growing and high profit recurring revenue stream on the knee front. On the shoulder front, as I said, it's just an initial launch. Think of shoulder in the second half of this year being kind of where our knee was a year or so ago in terms of getting that first launch into the marketplace in the second half of this year and getting some good feedback that allows us to keep revenue and improving the product. We've been focused on making sure that by 2025, we are right there in the market with a very strong shoulder ARVIS offering to continue to be a strong leader there in shoulder with technology, as we always have been. And we're right on track for that with this announcement about the shoulder clearance for ARVIS that just recently happened.

因此，我們預計這個數字會擴大，並成為我們膝蓋轉換工作的良好促進者。但也開始在膝蓋方面產生少量但不斷增長且高利潤的經常性收入流。在肩部正面，正如我所說，這只是一個初步的發射。考慮到今年下半年的肩部產品與大約一年前我們的膝蓋產品的情況類似，我們將在今年下半年首次推出市場，並獲得一些良好的反饋，從而使我們能夠保持收入並改進產品。我們一直致力於確保到 2025 年，我們能夠在市場上提供非常強大的 ARVIS 產品，並一如既往地成為技術領域的強大領導者。最近剛發布了有關 ARVIS 肩部間隙的公告，我們正朝著這一目標邁進。

We conclude our question-and-answer session now. And with that, I would like to turn the conference back over to Matthew Trerotola for any closing remarks. Please go ahead.

我們現在結束問答環節。至此，我想將會議轉回給馬修·特雷羅托拉（Matthew Trerotola）發表閉幕詞。請繼續。

Yes. Thank you for joining us this morning. I want to end the call by thanking our team members for a strong start to the year. We have a lot of momentum and excitement across the organization and remain committed to delivering value for our internal and external stakeholders. Thank you for listening in today, and we look forward to sharing our second quarter results with you in early August.

是的。感謝您今天早上加入我們。在結束通話時，我想感謝我們的團隊成員今年的良好開局。我們整個組織充滿動力和興奮，並繼續致力於為內部和外部利害關係人提供價值。感謝您今天的收聽，我們期待在八月初與您分享我們的第二季業績。

And this concludes the conference. Thank you very much for attending today's presentation. You may now disconnect. Have a great day.

會議到此結束。非常感謝您參加今天的演講。您現在可以斷開連線。祝你有美好的一天。