漢瑞祥 (HSIC) 2022 Q4 法說會逐字稿

Good morning, ladies and gentlemen, and welcome to Henry Schein's Fourth Quarter 2022 Earnings Conference Call. (Operator Instructions) And as a reminder, this call is being recorded. I would now like to introduce your host for today's call, Graham Stanley, Henry Schein's Vice President of Investor Relations and Strategic Financial Project Officer. Please go ahead, Graham.

女士們先生們，早上好，歡迎來到亨利施恩公司 2022 年第四季度收益電話會議。 （操作員說明）作為提醒，此通話正在錄音中。現在，我想介紹一下今天電話會議的主持人，Henry Schein 的投資者關係副總裁兼戰略財務項目官 Graham Stanley。請繼續，格雷厄姆。

Thank you, operator, and my thanks to each of you for joining us to discuss Henry Schein's financial results for the fourth quarter of 2022. With me on the call today are Stanley Bergman, Chairman of the Board and Chief Executive Officer of Henry Schein; and Ron South, Our Senior Vice President and Chief Financial Officer. Before we begin, I'd like to state that certain comments made during this call will include information that is forward-looking.

謝謝運營商，也感謝你們每一位加入我們討論亨利祥 2022 年第四季度的財務業績。今天和我一起打電話的是亨利祥的董事會主席兼首席執行官斯坦利伯格曼；以及我們的高級副總裁兼首席財務官 Ron South。在我們開始之前，我想聲明在本次電話會議期間發表的某些評論將包含前瞻性信息。

As you know, risks and uncertainties involved in the company's business may affect the matters referred to in forward-looking statements. And as a result, the company's performance may materially differ from those expressed in or indicated by such statements. These forward-looking statements are qualified in their entirety by the cautionary statements contained in Henry Schein's filings with the Securities and Exchange Commission and included in the Risk Factors section of those filings.

如您所知，公司業務中涉及的風險和不確定性可能會影響前瞻性陳述中提及的事項。因此，公司的業績可能與此類聲明中表達或指示的業績存在重大差異。這些前瞻性陳述的全部內容均符合 Henry Schein 向美國證券交易委員會提交的文件中包含的警告聲明，並包含在這些文件的“風險因素”部分。

In addition, all comments about the markets we serve, including end market growth rates and market share, are based upon the company's internal analysis and estimates. Our conference call remarks will include both GAAP and non-GAAP financial results. We believe the non-GAAP financial measures provide investors with useful supplemental information and the financial performance of our business, enable the comparison of financial results between periods where certain items may vary independently of business performance and allow for greater transparency with respect to key metrics used by management in operating our business.

此外，關於我們所服務市場的所有評論，包括終端市場增長率和市場份額，均基於公司的內部分析和估計。我們的電話會議評論將包括 GAAP 和非 GAAP 財務結果。我們認為，非 GAAP 財務措施為投資者提供了有用的補充信息和我們業務的財務業績，能夠比較某些項目可能獨立於業務業績而變化的時期之間的財務結果，並允許在使用的關鍵指標方面提高透明度通過管理經營我們的業務。

These non-GAAP financial measures are presented solely for informational and comparative purposes and should not be regarded as a replacement of the corresponding GAAP measures. Reconciliations between GAAP and non-GAAP measures can be found in the Supplemental Information section of our Investor Relations website and in Exhibit B of today's press release, which is also available in the Investor Relations section of the website.

這些非 GAAP 財務指標僅供參考和比較之用，不應被視為相應 GAAP 指標的替代品。 GAAP 和非 GAAP 措施之間的調節可以在我們的投資者關係網站的補充信息部分和今天的新聞稿的附件 B 中找到，也可以在網站的投資者關係部分找到。

The content of this conference call contains time-sensitive information that is accurate only as of the date of the live broadcast, February 16, 2023. Henry Schein undertakes no obligation to revise or update any forward-looking statements or reflect events or circumstances after the date of this call. We have prepared slides summarizing our fourth quarter financial results, and these can also be found on the Investor Relations section of our website. During today's Q&A session, please limit yourself to a single question and a follow-up. And with that, I'd like to turn the call over to Stanley Bergman.

本次電話會議的內容包含時效性信息，僅截至現場直播之日 2023 年 2 月 16 日才准確。漢瑞祥不承擔修改或更新任何前瞻性陳述或反映事件或情況的義務。這次通話的日期。我們準備了總結我們第四季度財務業績的幻燈片，這些也可以在我們網站的投資者關係部分找到。在今天的問答環節中，請將自己限制在一個問題和一個後續問題上。有了這個，我想把電話轉給斯坦利伯格曼。

Good morning, and thank you, Graham, and thank you all for calling in today. We closed our 2022 with a very good fourth quarter in which we continue to execute effectively on our 2022 to 2024 strategic plan goals, achieving strong growth in earnings for the fourth quarter and, of course, for the full year of 2022, despite the macroeconomic concerns and of course, the foreign exchange headwinds. We overcame significant headwinds from lower sales of PPE products and COVID-19 test kits.

早上好，謝謝你，格雷厄姆，感謝大家今天的來電。我們以非常出色的第四季度結束了 2022 年，我們繼續有效地執行我們的 2022 年至 2024 年戰略計劃目標，實現了第四季度的強勁增長，當然還有 2022 年全年，儘管宏觀經濟擔憂，當然還有外匯逆風。我們克服了 PPE 產品和 COVID-19 測試套件銷量下降帶來的重大不利因素。

Our sales were affected by a decline in sales of PPE products and COVID-19 test kits. Excluding sales of PPE products and COV19 test kits, and taking out the 53rd sales week for 2022, we achieved very good internal growth of 5% in local currencies, that's internal. There was a negative impact on dental visits for seasonal flu and COVID-19 last quarter. And this was both in North America and internationally. So dental visits were down because of the impact of flu, both the seasonal and the COVID.

我們的銷售額受到 PPE 產品和 COVID-19 測試套件銷售額下降的影響。不包括 PPE 產品和 COV19 測試套件的銷售，以及 2022 年的第 53 個銷售週，我們實現了非常好的內部增長，以當地貨幣計算為 5%，這是內部增長。上個季度季節性流感和 COVID-19 對牙科就診產生了負面影響。這在北美和國際上都是如此。因此，由於季節性流感和 COVID 流感的影響，看牙醫的人數減少了。

On the other hand, this was offset by a positive impact at least from a product sales point of view of visits to our physician customers. We experienced growth in each of our business units across the board. And overall, we generated some financial results for the quarter, reflective, I think, of a stable market -- in the markets that we serve. So we made excellent progress in advancing our 2022 to 2024 BOLD+1 strategic plan.

另一方面，至少從產品銷售的角度來看，拜訪我們的醫生客戶的積極影響抵消了這一點。我們的每個業務部門都實現了全面增長。總的來說，我們在本季度產生了一些財務業績，我認為這反映了一個穩定的市場——在我們服務的市場中。因此，我們在推進 2022 年至 2024 年 BOLD+1 戰略計劃方面取得了出色進展。

So first year of the plan was '22, where we advanced our one distribution strategy to enhance the customer experience and improve operational efficiency, very important, by creating our North American distribution group led by Brad Connett, and our international distribution group led by Andrea Albertini. We had good results across the board, both in North American distribution and in our international distribution group.

因此，該計劃的第一年是 22 年，我們通過創建由 Brad Connett 領導的北美分銷集團和由 Andrea 領導的國際分銷集團，推進我們的單一分銷戰略，以增強客戶體驗並提高運營效率，這一點非常重要阿爾貝蒂尼。我們在北美分銷和我們的國際分銷集團都取得了全面的好成績。

We strengthened our dental position with national DSOs One new accounts and have an excellent success with our technology solution and specialty products within our -- within this national DSO segment. And on the medical side, we did expand our position with IDNs and large group practices. On the digital side, the BOLD plan calls for a significant effort in this area. We created our global digital team, including the appointment of experienced veterans in this area: Trinh Clark as Chief Global Customer Experience Officer; Sara Dillon, as Chief Data Officer. We are working closely with Lee Benowitz, Chief Global Digital Transformation Officer and Mark Hillebrandt, Chief Digital Revenue Officer.

我們通過國家 DSO 一個新客戶加強了我們的牙科地位，並在我們的技術解決方案和專業產品方面取得了巨大成功 - 在這個國家 DSO 部門內。在醫療方面，我們確實通過 IDN 和大型團體實踐擴大了我們的地位。在數字方面，BOLD 計劃要求在這一領域做出重大努力。我們創建了我們的全球數字團隊，包括任命該領域經驗豐富的資深人士：Trinh Clark 擔任首席全球客戶體驗官； Sara Dillon，擔任首席數據官。我們正在與首席全球數字化轉型官 Lee Benowitz 和首席數字收入官 Mark Hillebrandt 密切合作。

We made excellent progress designing and building our global e-commerce platform, and this is an advancement of our current platform, which we expect to start rolling out in the latter part of this year, and that's -- we start to roll out the upgrades to the current platform. At the same time, we had some exciting news on the AI side, where we launched our Detect AI and AI-enabled x-ray analysis, too, powered by VideaHealth. And last week, we were advised that VideaHealth has received 510(k) FDA clearance for its periodontics solution, which we expect will further advance the use of AI as a tool dentistry.

我們在設計和構建我們的全球電子商務平台方面取得了出色的進展，這是我們當前平台的進步，我們預計將在今年下半年開始推出，那就是——我們開始推出升級到當前平台。與此同時，我們在 AI 方面有一些令人振奮的消息，我們也推出了 Detect AI 和支持 AI 的 X 射線分析，由 VideaHealth 提供支持。上週，我們獲悉 VideaHealth 的牙周病解決方案已獲得 510(k) FDA 批准，我們預計這將進一步推動 AI 作為牙科工具的使用。

We were active on the M&A front. We acquired Midway Dental in the U.S. and Condor Dental in Switzerland, thereby expanding our reach into underpenetrated areas in the market. We acquired a majority stake in Unitas and announced plans to acquire a major -- majority stake in Biotech Dental. Both of these investments will address in a moment. We have begun implementing our restructuring plan to reduce our global real estate footprint to reflect TSM, that's Team Schein Members, preference for flexibility in work locations. In this connection, we have closed one of our 2 buildings in our Melville headquarters on Long Island. We intend to invest in our remaining real estate footprint around the world to provide modern and flexible office space, and we will also continue to invest in technology to ensure that we maintain and build on our strong competitive position from a technology point of view, in other words, the tools that we provide our team to operate and, of course, the tools we offer to our customers to interface with us.

我們在併購方面很活躍。我們收購了美國的 Midway Dental 和瑞士的 Condor Dental，從而將我們的業務範圍擴大到市場上尚未滲透的領域。我們收購了 Unitas 的多數股權，並宣布了收購 Biotech Dental 主要股權的計劃。這兩項投資將在稍後解決。我們已經開始實施我們的重組計劃，以減少我們的全球房地產足跡，以反映 TSM，即 Team Schein 成員，對工作地點靈活性的偏好。在這方面，我們關閉了長島梅爾維爾總部的兩座建築之一。我們打算投資於我們在世界各地剩餘的房地產足跡，以提供現代化和靈活的辦公空間，我們還將繼續投資於技術，以確保我們從技術的角度保持和鞏固我們強大的競爭地位，在換句話說，我們為團隊提供的操作工具，當然還有我們為客戶提供的與我們交互的工具。

This past quarter, we disposed of an unprofitable business so we can redirect our resources to operations that are priorities in our 2022 to 2024 strategic plan. The costs associated with this exit are included in our restructuring costs for the quarter. So if you look ahead a bit, we are introducing guidance for 2023, which Ron will discuss in a moment. We expect operating income growth in the high single digits to low double-digit percentage range when excluding the contributions from PPE products and COVID-19 test kits.

上個季度，我們處理了一項無利可圖的業務，以便我們可以將資源重新分配給我們 2022 年至 2024 年戰略計劃中優先考慮的業務。與此退出相關的成本包含在我們本季度的重組成本中。因此，如果您向前看一點，我們將介紹 2023 年的指南，Ron 稍後將對此進行討論。如果不包括個人防護裝備產品和 COVID-19 測試套件的貢獻，我們預計營業收入將以高個位數增長到低兩位數的百分比範圍。

We anticipate the impact of lower selling prices of PPE products and reduced demand from COVID-19 test kits will largely be offset by earnings momentum in our underlying core businesses. And the good momentum we have, as we enter 2023, this gives us confidence in the 2023 guidance. And the -- specifically the growth in our operating income when you exclude PPE products and COVID-19 tests.

我們預計 PPE 產品銷售價格下降和 COVID-19 測試套件需求減少的影響將在很大程度上被我們基礎核心業務的盈利勢頭所抵消。隨著我們進入 2023 年，我們擁有的良好勢頭使我們對 2023 年的指導方針充滿信心。而且 - 特別是當您排除 PPE 產品和 COVID-19 測試時，我們營業收入的增長。

So a little bit of specifics on our dental distribution business. Merchandise sales in North America grew slightly when excluding sales of PPE and taking out sales from the 53rd week. In North America, we have a relatively stable market. And our market share, we believe, remains stable to slightly positive. We believe global dental consumable merchandise growth, as noted earlier, was impacted by the high incidence of flu and COVID-19 cases, which caused increased rates of patient appointment cancellations and accentuated the staffing shortages.

關於我們的牙科分銷業務的一些細節。剔除 PPE 的銷售額並從第 53 週開始的銷售額，北美的商品銷售額略有增長。在北美，我們有一個相對穩定的市場。我們相信，我們的市場份額保持穩定，略有上升。我們認為，如前所述，全球牙科耗材商品的增長受到流感和 COVID-19 病例高發的影響，這導致患者預約取消率增加，並加劇了人員短缺。

Now what's important is the rate of patient flow appears to have returned to more normal levels in January -- this past January of 2023. The impact from manufacturing merchandise price increases, we believe, lessened as last year's increases began to annualize. The depth and breadth of the Henry Schein product portfolio, of course, allows us to support our customers' needs when we have customers that are concerned with pricing as we have offerings of alternative national and corporate brand products, that's our own brands, as well as alternative national brands where we experienced customers resistance to price increases.

現在重要的是，在剛剛過去的 2023 年 1 月，患者流動率在 1 月份似乎已經恢復到更正常的水平。我們認為，隨著去年的漲幅開始年化，製造業商品價格上漲的影響有所減弱。 Henry Schein 產品組合的深度和廣度當然使我們能夠在客戶關注定價時支持客戶的需求，因為我們提供替代的國家和企業品牌產品，即我們自己的品牌，以及作為替代的民族品牌，我們遇到了客戶對價格上漲的抵制。

But having said that, price increases, we believe that are speaking in the marketplace are relatively stable now and not anywhere near what they were at the beginning of last year. Our demand for dental equipment in North America remains healthy, and our North American equipment order book is stable. Although we saw good sales from traditional equipment and steady sales for digital imaging equipment, which we had challenges in the past because of pricing issues, but this seems to be stabilized now.

但話說回來，價格上漲，我們認為現在市場上的價格相對穩定，與去年初的水平相去甚遠。我們在北美對牙科設備的需求保持健康，我們的北美設備訂單穩定。雖然我們看到傳統設備的銷售情況良好，數字成像設備的銷售穩定，過去我們因為定價問題而面臨挑戰，但現在似乎已經穩定下來。

And there was a decline in sales of digital restoration equipment compared to corresponding -- the corresponding period in the fourth quarter. And of course, we had good sales in the fourth quarter last year. But the challenge has been customer demand is shifting from chairside mills, quite expensive, to 3D printing, much less expensive, and a mix shift to lower-priced intraoral scanners. There was also a supply chain issue with one of our important intraoral scanner suppliers that introduced a new scanner this in the last few months.

與第四季度同期相比，數字修復設備的銷售額有所下降。當然，我們去年第四季度的銷售額也不錯。但挑戰在於，客戶的需求正在從相當昂貴的椅旁研磨機轉向便宜得多的 3D 打印，以及轉向價格較低的口內掃描儀的混合方式。我們重要的口內掃描儀供應商之一也存在供應鏈問題，該供應商在過去幾個月推出了一款新的掃描儀。

So all in all, the demand for digital restoration, that market is pretty hot, but there are these mix challenges that I've just described, and we can go into in greater detail if anyone has questions. The value of our North American order book for equipment is stable. We continue to see construction delays to some extent and a slight reduction in the number of planned new office openings amongst specifically some of our larger DSOs. On the international general merchandise sales side, the same impact as in the United States, North America that COVID patient flow challenges we experienced also as well as the lockdowns in China that were offset on the international side, but those were largely offset by good growth in the U.K., Eastern Europe and Brazil.

所以總而言之，對數字修復的需求，這個市場非常火爆，但是我剛剛描述了這些混合挑戰，如果有人有問題，我們可以更詳細地討論。我們的北美設備訂單價值穩定。我們繼續看到施工在一定程度上出現延誤，並且在我們的一些較大的 DSO 中計劃開設的新辦公室數量略有減少。在國際百貨銷售方面，我們也經歷了與美國、北美相同的影響，即 COVID 患者流動挑戰以及中國的封鎖在國際方面被抵消，但這些影響在很大程度上被良好的增長所抵消在英國、東歐和巴西。

Towards the end of the quarter, dental office staffing absenteeism and patient appointment cancellations will begin to ease likewise in our international business. Demand for equipment internationally held up quite well, with sales moving to lower-priced intraoral scanner units as well and the overall equipment sales essentially were in line with last year.

在本季度末，我們的國際業務中牙科診所人員缺勤和取消患者預約的情況也將開始減少。國際設備需求保持良好，銷售也轉向價格較低的口腔內掃描儀裝置，整體設備銷售基本與去年持平。

The fourth quarter equipment sales and our outlook was slightly impacted by purchase delays in anticipation, this is on the international side again, with the biennial IDS show in Cologne, where customers expect new promotions to be introduced new products, and that show takes place at the end of the first quarter. The fundamentals in our dental end markets remain solid. Of course, the aging population and the growing global awareness of the health care benefits of preventative care and oral health, all play into our strategic benefits for Henry Schein, short, medium and long term.

第四季度設備銷售和我們的前景受到預期採購延遲的輕微影響，這又是在國際方面，在科隆舉行兩年一度的 IDS 展，客戶期望新的促銷活動推出新產品，並且該展會發生在第一季度結束。我們牙科終端市場的基本面依然穩固。當然，人口老齡化以及全球對預防保健和口腔健康保健益處的認識不斷提高，都對我們亨利祥的短期、中期和長期戰略利益產生了影響。

So demand for dental service is also generally correlated, we believe, with unemployment rates. And in the developed world, these remain relatively sort of consistent historically low, if you will. So we think the underlying base is okay, supporting oral care. And let me now turn a little bit to the dental specialty products business, where we were impacted, particularly in our largest sector, implants and bone regeneration products, with significant prior year growth prior year comparisons.

因此，我們認為，對牙科服務的需求通常也與失業率相關。在發達國家，如果你願意的話，這些仍然相對穩定，處於歷史低位。所以我們認為基礎是好的，支持口腔護理。現在讓我談談我們受到影響的牙科專業產品業務，特別是在我們最大的部門，植入物和骨再生產品，與去年同期相比有顯著增長。

The BioHorizons camlog premium value implant segment continues to grow in North America and Europe. And we have some offset here with the decline in China, although I'll point out that our China business is not material, but it did impact the gross line to some extent. Sales for DSO customers in the United States for the BioHorizons camlog line remains solid, and our value brand, Medentis, primarily in Germany but also to some extent in China, achieved double-digit sales growth. But this was mainly coming, as I said, from Europe and a little bit from Asia.

BioHorizons camlog 溢價植入物部分在北美和歐洲繼續增長。我們在這裡與中國的下滑有所抵消，雖然我要指出我們的中國業務並不重要，但它確實在一定程度上影響了毛線。 BioHorizons camlog 系列在美國的 DSO 客戶的銷售額保持穩定，我們的價值品牌 Medentis 主要在德國，但也在一定程度上在中國實現了兩位數的銷售額增長。但正如我所說，這主要來自歐洲，還有一點來自亞洲。

When I refer to Asia, specifically talking to Japan, where our implants are doing good and oral surgery products are doing quite well. In December, we announced planned, subject to regulatory approval, to acquire majority ownership stake in the French dental solutions provider, Biotech. We look forward to bringing Biotech Dental's high-quality software that is so important. It's the whole digital flow that is so important that Biotech Dental will contribute to Henry Schein, but also the general products and services that dentists and dental labs are important for new geographies with respect to Biotech, specifically in France, where we believe we will be close, if not the leader in implants at some point in the near future.

當我提到亞洲時，特別是與日本交談時，我們的種植體在那裡表現良好，口腔外科產品也表現良好。 12 月，我們宣布計劃在獲得監管部門批准的情況下收購法國牙科解決方案提供商 Biotech 的多數股權。我們期待著帶來 Biotech Dental 如此重要的高質量軟件。 Biotech Dental 將為 Henry Schein 做出貢獻的是整個數字流程，但牙醫和牙科實驗室的一般產品和服務對於生物技術方面的新地區也很重要，特別是在法國，我們相信我們會在那裡接近，如果不是植入物的領導者在不久的將來的某個時候。

These will also have a line of product that is well received in that market. So dental products implants, biomaterials, all are high-growth, high-margin products, and Biotech will contribute to that as well as providing support -- additional support for our leading digital workflow solution in dentistry, of course. On the orthodontic side, sales growth remained strong, driven by new products introduced earlier in the year.

這些還將有一系列產品在該市場上廣受歡迎。因此，牙科產品植入物、生物材料都是高增長、高利潤的產品，而 Biotech 將為此做出貢獻並提供支持——當然是對我們領先的牙科數字工作流程解決方案的額外支持。在正畸方面，在今年早些時候推出的新產品的推動下，銷售增長依然強勁。

Recent data suggests that the percentage of general practitioners in the U.S. who perform root canal procedures is increasing. That plays right into our's sweet spot as well. We believe that this trend, combined with an aging population [intent on retaining it with the] bodes quite well for the Henry Schein in orthodontic business. Now turning to our technology and value-added business. The largest segment, of course, is Henry Schein One, our software business. Growth was strongest in the international business due to the strength of our entirely cloud-based solution, which is doing very well outside of the United States.

最近的數據表明，美國進行根管手術的全科醫生的比例正在增加。這也正是我們的最佳選擇。我們認為，這種趨勢，加上人口老齡化[意圖保留它]，對於正畸業務中的 Henry Schein 來說是個好兆頭。現在轉向我們的技術和增值業務。當然，最大的部分是我們的軟件業務 Henry Schein One。由於我們完全基於雲的解決方案的優勢，國際業務的增長最為強勁，該解決方案在美國以外的地區表現非常好。

Growth in North America was driven by sales of our practice management software. Also the -- specifically the cloud-based software that we offer Dentrix Ascend. And we see customers upgrading to Dentrix Ascend as design life cycle of our Easy Dental product ends. So we're very pleased with the progress are progressing from Easy Dental to our Dentrix and Dentrix Ascend products.

北美的增長是由我們的實踐管理軟件的銷售推動的。還有——特別是我們提供的基於雲的軟件 Dentrix Ascend。隨著我們的 Easy Dental 產品的設計生命週期結束，我們看到客戶升級到 Dentrix Ascend。因此，我們對從 Easy Dental 到我們的 Dentrix 和 Dentrix Ascend 產品的進展感到非常高興。

What is very important is we now see close to 6,000 customers on our cloud-based products, Dentrix Ascend entirely. We have noted in the past, these cloud-based systems drive demand for other Henry Schein One products. We also had nice customer wins during the fourth quarter with our Jarvis Analytics business. He assisted well as well. This is the business that helps with revenue cycle management. eAssist made a significant investment in Unitas, a PPO solutions provider and generally puts us in a very, very good position to help practitioners operate a more efficient practice while, of course, they provide good clinical care.

非常重要的是，我們現在看到近 6,000 名客戶完全使用我們基於雲的產品 Dentrix Ascend。我們過去曾注意到，這些基於雲的系統推動了對其他 Henry Schein One 產品的需求。我們的 Jarvis Analytics 業務在第四季度也贏得了不錯的客戶。他也提供了幫助。這是有助於收入周期管理的業務。 eAssist 對 PPO 解決方案提供商 Unitas 進行了重大投資，通常使我們處於非常非常有利的位置，可以幫助從業者進行更有效的實踐，當然，他們還提供良好的臨床護理。

We've enjoyed a relationship with Unitas since 2014, and we're now delighted to be able to integrate these value-added services into our product offering at Henry Schein One. So you'll see that the dental specialty products technology value-added services business did well, record year this year, up against some tough comps towards the end of the year. And this is where we're placing a lot of emphasis on an important part of our '22-'24 BOLD+1 strategic plan, which we'll talk about in greater detail at our Investor Day.

自 2014 年以來，我們與 Unitas 建立了良好的合作關係，現在我們很高興能夠將這些增值服務整合到我們在 Henry Schein One 提供的產品中。所以你會看到牙科專業產品技術增值服務業務表現良好，今年創下紀錄，與年底的一些艱難競爭形成鮮明對比。這就是我們非常重視“22-”24 BOLD+1 戰略計劃的重要部分的地方，我們將在投資者日更詳細地討論這一點。

The medical distribution business continued to see excellent growth. This did reflect higher patient traffic to alternate care side partially driven by the incidence of flu and COVID-19. But generally, the trends are there moving from the acute care setting to the alternate care side. We had good sales, of course, as you would expect, in point of care diagnostics and other products associated with the flu.

醫藥分銷業務繼續保持良好增長。這確實反映了流感和 COVID-19 的發病率部分推動了替代護理方面的患者流量增加。但總的來說，趨勢是從急症護理環境轉移到替代護理方面。當然，正如您所期望的那樣，我們在護理診斷和其他與流感相關的產品方面取得了良好的銷售業績。

When excluding sales of PPE products, COVID-19 test kits, we experienced double-digit growth in local currencies adjusting for that extra week and really absent any public health outbreaks, new ones, medical sales should return to more normal mid- to high range single digits. We are pleased with the continued growth of new accounts across the independent and large group practices as well as Ambulatory surgical centers and urgent care facilities. Strong pharmaceutical sales were driven by pneumonia treatments, and equipment sales also continued to do quite well as practitioners invest in their practice and as the offering of office space practitioner equipment expands in terms of availability to treat and diagnose more treatments with more diseases and other ailments in the office-based practitioner environment.

排除 PPE 產品、COVID-19 測試套件的銷售後，我們經歷了額外一周調整後的當地貨幣兩位數增長，並且確實沒有任何公共衛生爆發、新爆發、醫療銷售應該恢復到更正常的中高範圍個位數。我們對獨立和大型集團實踐以及門診手術中心和緊急護理設施的新客戶持續增長感到高興。肺炎治療推動了強勁的藥品銷售，設備銷售也繼續表現良好，因為從業者投資於他們的實踐，並且隨著辦公空間從業者設備的供應在治療和診斷更多疾病和其他疾病的更多治療的可用性方面擴大在基於辦公室的從業者環境中。

Over the last several years, Henry Schein has been able to shift priorities and provide solutions needed to help our medical and dental customers. And the public, of course, during the COVID-19 crisis and last year's flu season and even with -- during last -- and during the crisis and of course, last year's flu season. And even with this change, the impact of COVID-19 and flu, which required huge support from our team to deal with these currently significant inflows of orders to realize that we delivered a compounded average sales growth even with these inflows, unusual inflows of PPE, COVID tests of about 6-point -- just over 6% when you take out the PPE and COVID.

在過去的幾年裡，Henry Schein 已經能夠改變優先事項並提供幫助我們的醫療和牙科客戶所需的解決方案。當然，還有公眾，在 COVID-19 危機期間和去年的流感季節，甚至在過去的危機期間，當然還有去年的流感季節。即使有這種變化，COVID-19 和流感的影響也需要我們團隊的大力支持來處理這些當前大量的訂單流入，以實現即使有這些流入、不尋常的 PPE 流入，我們也實現了複合平均銷售增長, COVID 測試大約 6 分——當你取出 PPE 和 COVID 時，剛好超過 6%。

So Henry Schein's internal growth in general, excluding PPE and COVID, is quite solid. And so we also believe that the PP&E and COVID efforts that we undertook helped us generate more customers, help our customers understand that for health care products is better to go to a reliable source. And so I want to thank the team for doing a remarkable job getting out the billions of dollars of unusual onetime in respects COVID tests and PPE products, which help generate customer loyalty. So with that, I'll turn over the call to Ron for a review of the fourth quarter results and our 2023 guidance.

因此，Henry Schein 的總體內部增長（不包括 PPE 和 COVID）是相當穩固的。因此，我們也相信，我們所做的 PP&E 和 COVID 努力幫助我們吸引了更多客戶，幫助我們的客戶了解醫療保健產品最好去可靠的來源。因此，我要感謝團隊在 COVID 測試和 PPE 產品方面所做的出色工作，一次獲得了數十億美元的不尋常收入，這有助於提高客戶忠誠度。因此，我將把電話轉給羅恩，讓他審查第四季度的業績和我們的 2023 年指導方針。

Very good. Thank you, Stanley, and good morning, everyone. As we begin, I'd like to point out that I'll be discussing our results as reported on a GAAP basis and on a non-GAAP basis. Our fourth quarter non-GAAP financial results for 2022 and 2021 exclude restructuring and integration costs as well as acquired intangible asset impairment charges. This is detailed in Exhibit B of today's press release and in the supplemental information section of our Investor Relations website.

非常好。謝謝你，斯坦利，大家早上好。在我們開始時，我想指出，我將討論我們在 GAAP 基礎上和非 GAAP 基礎上報告的結果。我們 2022 年和 2021 年第四季度的非美國通用會計準則財務業績不包括重組和整合成本以及收購的無形資產減值費用。這在今天的新聞稿的附件 B 和我們的投資者關係網站的補充信息部分中有詳細說明。

As Stanley mentioned, the fourth quarter of 2022 included one additional selling week compared to the fourth quarter of 2021, which was the holiday week between Christmas and New Year's Day. We report on a 52-, 53-week fiscal year ending on the last Saturday in December. The next time our results will include an extra selling week will be in 2028. With respect to sales growth, I will focus on LCI sales growth, which is internally generated sales in local currencies and excluding acquisitions.

正如 Stanley 所提到的，與 2021 年第四季度相比，2022 年第四季度增加了一個銷售週，這是聖誕節和元旦之間的假期週。我們報告了在 12 月的最後一個星期六結束的 52 週、53 週的財政年度。下一次我們的結果將包括一個額外的銷售週將在 2028 年。關於銷售增長，我將關注 LCI 銷售增長，這是內部產生的以當地貨幣計算的銷售，不包括收購。

To facilitate more meaningful comparisons, the estimated extra week of sales will also be excluded from LCI sales growth figures. A detailed breakout of the components of our sales growth, including LCI growth, is included in Exhibit A of today's press release. Fourth quarter global LCI sales decreased by 1.8% versus the prior year. However, when excluding sales of PPE products and COVID-19 test kits, our LCI sales grew 5%. We sold approximately $161 million in PPE products and approximately $93 million in COVID-19 test kits, including multi-assay flu and COVID-19 combination kits in the fourth quarter.

為了便於進行更有意義的比較，預計額外一周的銷售額也將被排除在 LCI 銷售額增長數據之外。今天新聞稿的附件 A 中包含我們銷售增長組成部分的詳細分類，包括 LCI 增長。第四季度全球 LCI 銷售額與去年同期相比下降了 1.8%。但是，如果不包括 PPE 產品和 COVID-19 測試套件的銷售額，我們的 LCI 銷售額增長了 5%。我們在第四季度售出了約 1.61 億美元的 PPE 產品和約 9300 萬美元的 COVID-19 檢測試劑盒，包括多檢測流感和 COVID-19 組合試劑盒。

This compares with approximately $261 million in PPE products and approximately $187 million in sales of these tests in the fourth quarter of 2021. Our GAAP operating margin for the fourth quarter of 2022 was 2.15%, a 387 basis point decline compared with the prior year GAAP operating margin. This was primarily a result of restructuring and integration expenses and the impairment of certain intangible assets incurred in the quarter.

相比之下，2021 年第四季度 PPE 產品的銷售額約為 2.61 億美元，這些測試的銷售額約為 1.87 億美元。我們 2022 年第四季度的 GAAP 營業利潤率為 2.15%，與上年 GAAP 相比下降 387 個基點營業利潤率。這主要是重組和整合費用以及本季度發生的某些無形資產減值的結果。

Our non-GAAP operating margin for Q4 was 6.74%, a 56 basis point improvement compared with the prior year non-GAAP operating margin. This improvement was driven by gross margin expansion, mainly as a result of sales mix favoring higher-margin products, along with lower operating expenses as a percent of sales. Regarding income taxes. Our reported GAAP effective tax rate for the fourth quarter of 2022 was 23.6%. This compares with a 22.5% GAAP effective tax rate for the fourth quarter of 2021.

我們第四季度的非 GAAP 營業利潤率為 6.74%，與上年非 GAAP 營業利潤率相比提高了 56 個基點。這一改善是由毛利率擴張推動的，主要是由於銷售組合有利於高利潤產品，以及較低的營業費用佔銷售額的百分比。關於所得稅。我們報告的 2022 年第四季度 GAAP 有效稅率為 23.6%。相比之下，2021 年第四季度的 GAAP 有效稅率為 22.5%。

On a non-GAAP basis, our effective tax rate for the quarter was 22.2%, and this compares with the prior year non-GAAP effective rate of 22.5%. Fourth quarter 2022 GAAP net income was $47 million or $0.34 per diluted share. This compares with prior year GAAP net income of $147 million or $1.05 per diluted share. Our fourth quarter 2022 non-GAAP net income was $165 million or $1.21 per diluted share. This compares with prior year non-GAAP net income of $151 million or $1.07 per diluted share.

在非公認會計原則的基礎上，我們本季度的有效稅率為 22.2%，而上一年的非公認會計原則有效稅率為 22.5%。 2022 年第四季度 GAAP 淨收入為 4700 萬美元或每股攤薄收益 0.34 美元。相比之下，去年 GAAP 淨收入為 1.47 億美元或每股攤薄收益 1.05 美元。我們 2022 年第四季度的非 GAAP 淨收入為 1.65 億美元或每股攤薄收益 1.21 美元。相比之下，上一年的非 GAAP 淨收入為 1.51 億美元或每股攤薄收益 1.07 美元。

Amortization expense of acquired intangible assets for the fourth quarter of 2022 was $30.7 million or $0.14 per diluted share. This compares with $32.6 million or $0.14 per diluted share for the same period last year. And this expense is included in the 2022 and 2021 non-GAAP net income results I just mentioned. A key goal to our 2022 to 2024 strategic plan is to invest in higher-growth businesses that have a larger intangible asset component. And going forward, we believe earnings, excluding amortization expense of acquired intangible assets, better represents the underlying business results.

2022 年第四季度收購無形資產的攤銷費用為 3070 萬美元或攤薄後每股 0.14 美元。相比之下，去年同期為 3260 萬美元或攤薄後每股 0.14 美元。而這筆費用包含在我剛才提到的 2022 年和 2021 年非 GAAP 淨收入結果中。我們 2022 年至 2024 年戰略計劃的一個關鍵目標是投資於具有更大無形資產成分的高增長業務。展望未來，我們認為不包括所收購無形資產的攤銷費用的收益更能代表基礎業務成果。

Beginning with the first quarter of 2023, we will be modifying our non-GAAP reporting to exclude amortization expense of acquired intangible assets. Using this method, our full year 2022 non-GAAP net income was $741 million or $5.38 per diluted share. We will include a reconciliation of our non-GAAP financial results with the new methodology in our quarterly presentation available on our Investor Relations website.

從 2023 年第一季度開始，我們將修改我們的非 GAAP 報告，以排除收購無形資產的攤銷費用。使用這種方法，我們 2022 年全年非 GAAP 淨收入為 7.41 億美元或每股攤薄收益 5.38 美元。我們將在我們的投資者關係網站上提供的季度報告中包含我們的非 GAAP 財務結果與新方法的對賬。

And finally, foreign currency exchange negatively impacted our fourth quarter diluted EPS by approximately $0.04 versus the fourth quarter of last year. I'll now provide some detail on our fourth quarter sales results. Global Dental sales were $2 billion, and LCI sales decreased by 2.6%. Excluding sales of PPE products, our Global Dental LCI sales growth was 0.9%. Global Dental consumable merchandise LCI sales decreased by 3.7%, but increased by 1.0% when excluding PPE products. Global Dental equipment LCI growth was 0.7%.

最後，與去年第四季度相比，外匯兌換對我們第四季度攤薄每股收益產生了約 0.04 美元的負面影響。我現在將提供有關我們第四季度銷售結果的一些細節。全球牙科銷售額為 20 億美元，LCI 銷售額下降 2.6%。不包括 PPE 產品的銷售額，我們的全球牙科 LCI 銷售額增長了 0.9%。全球牙科耗材 LCI 銷售額下降了 3.7%，但不包括 PPE 產品時增長了 1.0%。全球牙科設備 LCI 增長率為 0.7%。

North America dental LCI sales decreased 3.4% compared with the prior year, primarily due to a 5.1% decrease in consumable merchandise sales. However, when excluding sales of PPE products, North America dental consumable merchandise LCI sales grew 1.3%. North America dental equipment LCI sales also increased 1.3%. International Dental LCI sales decreased by 1.4% and consumable merchandise LCI sales decreased by 1.7%. When excluding sales of PPE products, International consumable merchandise LCI sales increased 0.7%. International equipment LCI sales decreased by 0.4%. Sales of dental specialty products were approximately $247 million in the fourth quarter, with LCI growth of 0.3% compared with the prior year.

北美牙科 LCI 銷售額與上年相比下降 3.4%，主要原因是消耗品銷售額下降 5.1%。然而，如果不包括 PPE 產品的銷售額，北美牙科耗材 LCI 銷售額增長了 1.3%。北美牙科設備 LCI 銷售額也增長了 1.3%。國際牙科 LCI 銷售額下降 1.4%，消費品 LCI 銷售額下降 1.7%。排除 PPE 產品的銷售額，國際消費品 LCI 銷售額增長 0.7%。國際設備 LCI 銷售額下降 0.4%。第四季度牙科專業產品的銷售額約為 2.47 億美元，LCI 比上年增長 0.3%。

Global technology and value-added services sales during the fourth quarter were $187 million, with LCI growth of 3.4% compared with the fourth quarter of 2021. Sales were negatively impacted by the expiration of a government contract, which we mentioned during our Q3 2022 conference call. Adjusting for this contract, the underlying sales growth was 9.1%. During the fourth quarter, our technology and value-added services businesses, together with our dental specialty products, achieved LCI sales growth of 1.6% or 3.9% after adjusting for the expiration of the government contract.

第四季度全球技術和增值服務銷售額為 1.87 億美元，LCI 與 2021 年第四季度相比增長 3.4%。銷售額受到政府合同到期的負面影響，我們在 2022 年第三季度會議上提到了這一點稱呼。調整該合同後，基礎銷售額增長率為 9.1%。第四季度，我們的技術和增值服務業務，連同我們的牙科專業產品，在調整政府合同到期後實現了 1.6% 或 3.9% 的 LCI 銷售額增長。

Global Medical sales during the fourth quarter were $1.2 billion, and LCI sales decreased 1.3%, due to lower sales of PPE products and COVID-19 test kits. In North America, excluding sales of PPE products and COVID-19 test kits, LCI sales grew 14.9%, led by strong point-of-care diagnostics, medical equipment and pharmaceutical sales. Regarding share repurchases, we repurchased approximately 3.6 million shares of common stock in the open market during the fourth quarter, buying at an average price of $79.55 per share for a total of $285 million.

第四季度全球醫療銷售額為 12 億美元，LCI 銷售額下降 1.3%，原因是 PPE 產品和 COVID-19 測試套件的銷售額下降。在北美，不包括 PPE 產品和 COVID-19 測試套件的銷售額，LCI 銷售額增長了 14.9%，主要得益於強勁的即時診斷、醫療設備和藥品銷售。關於股票回購，我們在第四季度在公開市場上回購了約 360 萬股普通股，以每股 79.55 美元的平均價格回購，總計 2.85 億美元。

The impact of the repurchase of shares on our fourth quarter diluted EPS was immaterial. For the full year, we spent $485 million to repurchase 6.1 million shares. At fiscal year-end, we had approximately $115 million authorized and available for future share repurchases. An additional $400 million was approved by the company's Board of Directors on February 8, 2023.

回購股票對我們第四季度攤薄每股收益的影響並不重大。全年，我們花費 4.85 億美元回購了 610 萬股股票。在財政年度結束時，我們有大約 1.15 億美元的授權可用於未來的股票回購。 2023 年 2 月 8 日，公司董事會批准追加 4 億美元。

Turning to our balance sheet and cash flow. We continue to benefit from significant liquidity, providing our businesses with the flexibility and financial stability to execute on organic growth initiatives and strategic acquisitions while continuing to return capital to our shareholders. Operating cash flow for the fourth quarter was $254 million compared with $277 million last year, with the decrease primarily due to an increase in working capital that was driven by the timing of accounts payable.

轉向我們的資產負債表和現金流量。我們繼續受益於大量流動性，為我們的企業提供靈活性和財務穩定性，以執行有機增長計劃和戰略收購，同時繼續向股東返還資本。第四季度的運營現金流為 2.54 億美元，而去年同期為 2.77 億美元，下降的主要原因是應付賬款的時間安排導致營運資金增加。

For the full year, operating cash flow was $602 million compared with $710 million in 2021. Regarding our restructuring program, as part of our previously disclosed integration and restructuring initiative, we recorded a pretax charge in the fourth quarter of $121 million or $0.70 per diluted share. These expenses mainly relate to vacating one of the buildings at our Melville headquarters and the impairment of intangible assets associated with the disposal of an unprofitable business. There were also restructuring expenses associated with severance and costs related to the exit of some other facilities.

全年運營現金流為 6.02 億美元，而 2021 年為 7.1 億美元。關於我們的重組計劃，作為我們之前披露的整合和重組計劃的一部分，我們在第四季度記錄了 1.21 億美元的稅前費用或每股攤薄費用 0.70 美元分享。這些費用主要與騰出我們 Melville 總部的一棟建築物以及與處置無利可圖的業務相關的無形資產減值有關。還有與遣散費相關的重組費用以及與其他一些設施退出相關的費用。

Due to the disposal of certain assets and the lengthy remaining period of certain leases we exited, expense savings from this plan are expected to be realized over a longer period of time. We expect to continue to record integration and restructuring charges in 2023. However, an estimate of the amount of these charges has not yet been determined. Any restructuring and integration charges are expected primarily to include severance pay and facility-related costs.

由於某些資產的處置和我們退出的某些租賃的剩餘期限較長，預計該計劃的費用節省將在較長時間內實現。我們預計將在 2023 年繼續記錄整合和重組費用。但是，這些費用的估計數額尚未確定。任何重組和整合費用預計主要包括遣散費和設施相關費用。

We also recorded an impairment expense for intangible assets of $34 million pretax or $0.17 per diluted share related to certain continuing operations. Let me conclude my remarks with our 2023 financial guidance. At this time, we are not able to provide estimates for costs associated with integration and restructuring for 2023. Therefore, we are not providing GAAP guidance. As I mentioned, beginning with our Q1 2023 financial results, we will modify our non-GAAP treatment to exclude amortization expense of acquired intangible assets.

我們還記錄了與某些持續經營相關的 3400 萬美元稅前無形資產減值費用或攤薄後每股 0.17 美元。讓我以我們的 2023 年財務指南結束我的發言。目前，我們無法提供 2023 年與整合和重組相關的成本估算。因此，我們不提供 GAAP 指南。正如我提到的，從我們 2023 年第一季度的財務業績開始，我們將修改我們的非 GAAP 處理方式，以排除收購無形資產的攤銷費用。

This is in addition to the other adjustments we made in 2022 to our GAAP financial results. All guidance today reflects this change. 2023 non-GAAP diluted EPS excludes amortization expense of prior acquisitions of $0.56 a share in 2023, and this was $0.57 in 2022. For 2023, we expect non-GAAP diluted EPS attributable to Henry Schein, Inc. to be in the range of $5.25 to $5.42 per share, reflecting growth of negative 2% to positive 1% compared with our 2022 non-GAAP diluted EPS of $5.38.

這是我們在 2022 年對 GAAP 財務業績進行的其他調整的補充。今天的所有指南都反映了這一變化。 2023 年非 GAAP 攤薄每股收益不包括 2023 年每股 0.56 美元的先前收購的攤銷費用，2022 年為 0.57 美元。到 2023 年，我們預計 Henry Schein, Inc. 的非 GAAP 攤薄每股收益在 5.25 美元的範圍內至每股 5.42 美元，反映出與我們 2022 年 5.38 美元的非 GAAP 稀釋每股收益相比，負增長 2% 至正 1%。

Our guidance for 2023 assumes total sales growth of approximately 1% to 3% over 2022, with sales of COVID-19 test kits declining approximately 35% to 40% from sales in 2022. Additionally, PPE product sales are expected to decline about 20% to 25%. In the aggregate, revenues of these product groups are expected to decrease approximately 30% to 35% from 2022. The impact on 2023 non-GAAP diluted EPS from the lower contribution to earnings from sales of PPE products and COVID-19 test kits is approximately $0.35 to $0.40 per share. This impact will be much more pronounced over the first half of 2023 and especially in the first quarter as we had sales of almost $500 million of PPE and COVID-19 test kits combined in the first quarter of 2022.

我們對 2023 年的指導假設總銷售額比 2022 年增長約 1% 至 3%，而 COVID-19 測試套件的銷售額比 2022 年的銷售額下降約 35% 至 40%。此外，PPE 產品銷售額預計將下降約 20%到 25%。總體而言，這些產品組的收入預計將從 2022 年開始減少約 30% 至 35%。PPE 產品和 COVID-19 測試套件銷售收入貢獻減少對 2023 年非 GAAP 攤薄每股收益的影響約為每股 0.35 美元至 0.40 美元。這種影響將在 2023 年上半年更加明顯，尤其是在第一季度，因為我們在 2022 年第一季度的 PPE 和 COVID-19 測試套件的總銷售額接近 5 億美元。

These headwinds are largely offset by earnings momentum in our underlying core businesses. And we expect non-GAAP operating income will grow in the high single-digit to low double-digit range when excluding the contribution from PPE products and COVID-19 test kit sales. Please note that 2023 will include one less selling week compared to 2022, which will occur in the fourth quarter. For 2023, we expect non-GAAP operating margin to be 10 to 15 basis points below our 2022 non-GAAP operating margin of 8.2%. And this is largely a result of lower PPE products and COVID-19 test kit sales and profits.

這些不利因素在很大程度上被我們基礎核心業務的盈利勢頭所抵消。如果不包括 PPE 產品和 COVID-19 測試套件銷售的貢獻，我們預計非 GAAP 營業收入將在高個位數到低兩位數的範圍內增長。請注意，與 2022 年相比，2023 年的銷售週將減少一個星期，這將發生在第四季度。對於 2023 年，我們預計非 GAAP 營業利潤率將比 2022 年 8.2% 的非 GAAP 營業利潤率低 10 到 15 個基點。這在很大程度上是 PPE 產品和 COVID-19 測試套件銷售和利潤下降的結果。

Our guidance reflects non-GAAP operating margin expansion when excluding income from PPE products and COVID-19 test kit sales. Our 2023 guidance includes higher interest expense than in 2022 as a result of higher interest rates and higher minority interest from our higher-growth businesses, mainly Henry Schein One. We also expect an effective tax rate in the 23% range, assuming no changes in tax legislation.

我們的指引反映了在排除 PPE 產品和 COVID-19 測試套件銷售收入後的非 GAAP 營業利潤率增長。我們的 2023 年指引包括比 2022 年更高的利息支出，這是由於我們的高增長業務（主要是 Henry Schein One）的更高利率和更高的少數股東權益。假設稅法沒有變化，我們還預計有效稅率在 23% 的範圍內。

Our guidance for 2023 diluted EPS is for current continuing operations as well as completed acquisitions and does not include the impact of future share repurchases, the acquisition of Biotech Dental and other potential future acquisitions or integration and restructuring expenses, if any. Guidance assumes that foreign currency exchange rates are generally consistent with current levels, the end markets remain consistent with current market conditions and that there are no material adverse market changes associated with COVID-19. With that, I'll now turn the call back to Stanley.

我們對 2023 年攤薄後每股收益的指導是針對當前的持續經營和已完成的收購，不包括未來股票回購、收購 Biotech Dental 以及其他潛在的未來收購或整合和重組費用（如果有）的影響。指南假設外幣匯率與當前水平基本一致，終端市場與當前市場狀況保持一致，並且沒有與 COVID-19 相關的重大不利市場變化。有了這個，我現在將電話轉回給斯坦利。

Thank you, Ron. We have about 20 minutes -- over 20 minutes to answer questions. Sorry, the call was that long, but there's a lot going on. We're highly confident in the business. And the business ex PPE and COVID tests is doing quite well, even though there are challenges from a macro point of view. Having said that, I think we've got great momentum in the business and look forward to answering any questions. Operator?

謝謝你，羅恩。我們有大約 20 分鐘——超過 20 分鐘的時間來回答問題。抱歉，通話時間很長，但發生了很多事情。我們對業務充滿信心。儘管從宏觀角度來看存在挑戰，但商業 ex PPE 和 COVID 測試做得很好。話雖如此，我認為我們的業務發展勢頭強勁，並期待回答任何問題。操作員？

(Operator Instructions) And our first question comes from the line of Jeff Johnson with Baird.

（操作員說明）我們的第一個問題來自 Jeff Johnson 與 Baird 的對話。

Ron, maybe I wanted to start just on the COVID testing kit and PPE guidance. When I look at kind of the EPS impact this year, it seems like it's dropping through in a decremental margin in the mid, if not upper teens level. I think over the last couple of years, those have been contributing positively, kind of those have been flowing through or at least kind of you guys have signaled that those were dropping through kind of a corporate-wide margin rate.

羅恩，也許我只想從 COVID 測試套件和 PPE 指南開始。當我看今年的 EPS 影響時，它似乎在中期以遞減幅度下降，如果不是十幾歲以上的話。我認為在過去的幾年裡，這些一直在做出積極貢獻，其中一些一直在流動，或者至少你們已經發出信號，表明它們正在通過某種公司範圍內的利潤率下降。

So why -- it makes some sense, I guess, when you're losing some of that inflated top line growth if there's a deleveraging impact there, but dropping through at that mid- to upper teens decremental margin seems a lot bigger than I would have expected. So any comments you can make there?

那麼為什麼 - 我猜這是有道理的，當你失去一些膨脹的頂線增長時，如果那裡有去槓桿化的影響，但在那個中到十幾歲的遞減利潤率下降似乎比我想的要大得多有所期待。那麼你可以在那裡發表任何評論嗎？

Yes, certainly. I think that we could see a little bit of pressure on gross margins on both PPE and COVID test kits versus the prior year. But I think the bigger issue there, Jeff, is just the gross profit dollars, I mean the compounded effect of the ongoing decrease in the revenues from these product categories in both 2022 and then continuing into '23 results in fewer gross profit dollars. And I think that kind of dilutive effect begins to hurt the operating margins a little more so than it makes it more difficult for us to cover it like we did in '22.

是的，當然了。我認為與去年相比，我們可以看到 PPE 和 COVID 測試套件的毛利率略有壓力。但我認為傑夫，更大的問題只是毛利潤美元，我的意思是這些產品類別的收入在 2022 年和 23 年持續下降的複合效應導致毛利潤美元減少。而且我認為這種稀釋效應開始對營業利潤率造成的影響比它讓我們更難像 22 年那樣彌補它。

Yes. Understood. And then, historically, you guys have provided organic growth guidance, revenue guidance, you did last year anyway, I guess, prior to that, not necessarily. A lot of moving parts this year with the selling week -- one less selling week, the PPE updates, obviously, some acquisition contribution. If I look at that 1 to 3, we're kind of calcine that at maybe a 3% to 6% organic guidance ex all that noise. And if I assume medical and tech VA a little above that, dental in kind of that low to mid-single digits, as those kind of all at least ballpark we should be thinking about as we're setting up our models for 2023?

是的。明白了。然後，從歷史上看，你們提供了有機增長指導、收入指導，無論如何，你們去年做了，我想，在那之前，不一定。今年銷售周有很多活動部件——少了一個銷售週，PPE 更新，顯然，一些收購貢獻。如果我看一下 1 到 3，我們有點像在 3% 到 6% 的有機指導下進行煅燒，排除所有噪音。如果我假設醫療和技術 VA 略高於此，那麼牙科的數量是中低個位數，因為我們在為 2023 年建立模型時至少應該考慮這些？

Yes. I mean you're in range there. I think that -- I think we have a headwind from PPE and COVID test kits combined of probably 300 to 400 basis points, right? You also have a headwind from the 53rd week that's going to be somewhere between a point and 1.5 points in there. We'll get a little bit of benefit from acquisitions. So that kind of leaves you with a number that could be 3% to 6%, 4% to 7% in terms of non-PPE, COVID test kit growth that we would expect in '23 versus '22.

是的。我的意思是你在那兒的範圍內。我認為——我認為 PPE 和 COVID 測試套件給我們帶來了 300 到 400 個基點的逆風，對吧？從第 53 週開始，你也遇到了不利因素，將在 1 點到 1.5 點之間。我們將從收購中獲得一些好處。因此，就非 PPE、COVID 測試套件增長而言，我們預計在 23 年與 22 年相比，這會給您留下 3% 至 6%、4% 至 7% 的數字。

Dental a little below and medical above. Is that the way to kind of think about that?

下面是牙科，上面是醫療。這是思考這個問題的方式嗎？

Yes, that's probably a fair statement, yes.

是的，這可能是一個公平的說法，是的。

And the next question comes from the line of Elizabeth Anderson with Evercore ISI.

下一個問題來自 Evercore ISI 的 Elizabeth Anderson。

I had a question around sort of your utilization and visit assumptions. Could you help us parse that apart a little bit more for 2023? I'm thinking specifically on maybe it is like medical visits and then sort of overall dental visits?

我有一個關於您的使用和訪問假設的問題。您能幫我們在 2023 年將其進一步解析嗎？我在特別考慮可能是像醫療訪問，然後是整體牙科訪問？

Yes, Elizabeth, very good questions. We did take a dip on visits in dentistry. And it was both in the United States and Europe, and the rest of the world wasn't so bad, of course, China it was in the fourth quarter. And it is down a bit. And so -- and there's been a recovery in January, quite nice recovery. It is down a bit from 2019 in the United States. Hard to get data outside of the United States. But we are not 100% back to where we were. But the dip that we experienced in the fourth quarter has mostly, if not all, recovered.

是的，伊麗莎白，非常好的問題。我們確實減少了看牙科的次數。美國和歐洲都是如此，世界其他地區也沒有那麼糟糕，當然，中國是在第四季度。它有點下降。所以——一月份出現了復甦，相當不錯的複蘇。與美國的 2019 年相比有所下降。很難獲得美國以外的數據。但我們並沒有 100% 回到原來的狀態。但我們在第四季度經歷的下滑大部分（如果不是全部）已經恢復。

And at least from what we can tell from the first 40 days or so of the year and probably hearing from our customers, we're back to where we were in about the third quarter. so correspondingly, on the medical side, there was an increase in visits. People had flu and they wanted to confirm that it wasn't COVID. So we experienced some growth in that respect in terms of flu tests. And you can see that information from the flu test manufacturers, a lot of them are providing that information.

至少從我們今年前 40 天左右的情況以及可能從我們的客戶那裡聽到的情況來看，我們回到了大約第三季度的水平。因此，相應地，在醫療方面，訪問量有所增加。人們得了流感，他們想確認這不是 COVID。因此，我們在流感測試方面在這方面取得了一些進展。你可以從流感測試製造商那裡看到這些信息，他們中的很多人都在提供這些信息。

But again, we expect in January, February that the visits were relatively back to where they were before in the third quarter, say, before these -- the flu. So the businesses are relatively stable now, and we had a temporary dip in dental visits and I think, a bubble a little bit in medical. But on average, you average the amount, if you look at our internal growth, local currency is about 5% internal growth for the company. So -- and I think all things being equal, perhaps will be a little bit better in the first quarter. Hard to tell, but it's looking quite positive for the first 40 days of the year.

但是，我們再次預計，在 1 月和 2 月，訪問量會相對回到第三季度之前的水平，比如在這些流感之前。所以現在業務相對穩定，我們的牙科訪問量暫時下降，我認為醫療領域有點泡沫。但平均而言，如果你看一下我們的內部增長，你平均數額，當地貨幣對公司來說大約是 5% 的內部增長。所以——我認為在所有情況都相同的情況下，第一季度可能會好一些。很難說，但今年前 40 天的情況看起來相當樂觀。

Got it. And sorry, just 2 clarifying questions. One, your comments about sort of the dip and then a little bit of the recovery in January and early February, that also applies to Europe. And then secondarily, you're assuming for your 2023 guidance at these current kind of January conditions continue ongoing?

知道了。抱歉，只有 2 個澄清問題。第一，你對 1 月和 2 月初的某種程度的下降然後是一點點復甦的評論，這也適用於歐洲。然後其次，你假設你的 2023 年指導在這些當前的 1 月條件下繼續進行？

As it relates to international or Europe in particular, because we are the international in China and the other countries kind of cancel out although there's a bit of a positive impact in Brazil where we have a big market share -- but not big market share -- big business, I would say, big decent market share, too. I would say the trends were very, very similar. Of course, our medical business not material in Europe. So I would exclude that. It might even shift, we can give you data on that because it's so diffuse. But our dental business had similar trends to the United States and therefore to North America. What was your second question, sorry?

因為它涉及國際或特別是歐洲，因為我們是中國的國際，其他國家有點抵消，儘管在巴西有一些積極影響，我們擁有很大的市場份額 - 但不是很大的市場份額 - - 大企業，我會說，大體面的市場份額，也是。我會說趨勢非常非常相似。當然，我們的醫療業務在歐洲並不重要。所以我會排除這一點。它甚至可能會發生變化，我們可以為您提供這方面的數據，因為它非常分散。但我們的牙科業務與美國有相似的趨勢，因此也與北美相似。抱歉，你的第二個問題是什麼？

And is that January sort of rate of visits, et cetera, was sort of what you were using to underpin your 2023 guidance

1 月份的訪問率等是否是您用來支持 2023 年指南的某種東西？

I'll have Ron answer the guidance question. I'm not sure whether the first 40 days really carried through for the full year or don't. Ron?

我會讓羅恩回答指導問題。我不確定前 40 天是否真的持續了一整年。羅恩？

Yes. I mean it's a little early at this point. I think that our guidance is supported by our budgeting process. We do obviously monitor what's happening so far in 2023. But I think that the assumptions -- the dental market last year suffered a little bit in January from Omicron. So there are some assumptions in there on Q1. But at the same time, the -- last year, like I said in the prepared remarks, we did about $500 million in revenues in PPE and COVID test kits in Q1 that won't get -- it won't be nearly that much this year, right? So Q1 is going to have -- still going to have a little bit of noise in it.

是的。我的意思是現在有點早。我認為我們的指導得到了我們預算流程的支持。顯然，我們確實在監控 2023 年到目前為止發生的事情。但我認為，去年的假設——牙科市場在 1 月份受到 Omicron 的影響。所以在第一季度有一些假設。但與此同時，就像我在準備好的發言中所說的那樣，去年第一季度我們在 PPE 和 COVID 測試套件方面的收入約為 5 億美元，但不會得到——不會那麼多今年，對嗎？所以第一季度會有——仍然會有一些噪音。

But when you flow through everything, Elizabeth, I think you -- we're pretty comfortable with our budget for this year, which contemplates, at the end of the day, high single-digit to low double-digit operating income growth when excluding PPE and COVID covet. So I think if you can see through the PPE and COVID, you see the business is pretty solid, and that's actually better performance than we've had in the past.

但是當你仔細考慮所有事情時，伊麗莎白，我想你 - 我們對今年的預算非常滿意，考慮到在一天結束時，不包括高個位數到低兩位數的營業收入增長PPE 和 COVID 令人垂涎。所以我認為，如果你能看穿 PPE 和 COVID，你就會看到業務非常穩固，而且這實際上比我們過去的表現要好。

And I still think that the whole management of this PPE and COVID tests, where we put the accelerator down generated over $2 billion or so in sales and pretty good profits has paid off because our customers are understanding that they can rely on Schein during challenging times and that the products we sell are generally or compliance with regulations and very often, they were buying products during this COVID period that had regulatory issues and so -- and quality issues.

而且我仍然認為，這個 PPE 和 COVID 測試的整個管理，我們放下加速器，產生了超過 20 億美元左右的銷售額和相當可觀的利潤，因為我們的客戶明白他們可以在充滿挑戰的時期依賴 Schein並且我們銷售的產品總體上或符合法規，而且他們經常在 COVID 期間購買存在監管問題和質量問題的產品。

So I think the strategy has played out well in terms of focus on PPE and tests. And at the same time, we get garnered quite a bit, I think, of core business, and that's reflected in our expectations for '23 in terms of growth of operating income.

因此，我認為該戰略在關注 PPE 和測試方面取得了很好的效果。與此同時，我認為我們獲得了相當多的核心業務，這反映在我們對 23 年營業收入增長的預期中。

And the next question comes from the line of Jason Bednar with Piper Sandler.

下一個問題來自 Jason Bednar 和 Piper Sandler 的台詞。

Maybe Stanley, I will start with you. A lot going on here, as you said. But maybe with the outlook, you got 1% to 3% of the top line. I know Jeff was digging in there on the organic growth. Core EBIT growing upper single, low double digits. It implies some pretty nice core margin expansion, and that would seem to fit with the historical trend line of the business. But maybe double click in on Jeff's question there. Wondering if you could comment a bit further on how you see the core dental consumables and equipment lines performing in 2023 in North America and International?

也許斯坦利，我會從你開始。正如你所說，這裡發生了很多事情。但也許從前景來看，你可以獲得收入的 1% 到 3%。我知道 Jeff 正在深入研究有機增長。核心息稅前利潤增長較高的個位數，較低的兩位數。這意味著一些相當不錯的核心利潤率擴張，這似乎符合該業務的歷史趨勢線。但也許雙擊 Jeff 的問題。想知道您是否可以進一步評論您如何看待 2023 年北美和國際的核心牙科耗材和設備系列的表現？

And then are the drivers of the core margin expansion implied in your guide? Are those more growth or operating that you're willing to comment there?

那麼您的指南中是否暗示了核心利潤率擴張的驅動因素？您願意在那裡發表評論的是那些更多的增長或運營嗎？

Yes. Let me deal with the first part. And I think it's best for Ron to respond to the guidance from a mathematics point of view. As noted, in the prepared remarks, we believe the dental market in the developed world, certainly, is quite stable. We believe that, generally, we're growing some market share. There are puts and takes here, namely the seasonal adjustment because of flu in the fourth quarter and a little bit of a rebound in -- or back to normal in the first quarter.

是的。讓我來處理第一部分。我認為 Ron 最好從數學的角度回應指導。如前所述，在準備好的評論中，我們相信發達國家的牙科市場肯定是相當穩定的。我們相信，總的來說，我們正在增加一些市場份額。這裡有投入和投入，即第四季度因流感而進行的季節性調整，以及第一季度的一點點反彈或恢復正常。

But generally, I think the market is stable. I think specialty products are stable. You should not necessarily read anything into our specialty sales per se because we had an exceptional fourth quarter for implants and bone regeneration products in '21. But generally, I would say the consumable markets in the developed world are relatively stable. There are a few markets where it's up -- but down in a few markets where it's bit up. But generally, it's stable.

但總的來說，我認為市場是穩定的。我認為特色產品是穩定的。您不一定要對我們的專業銷售本身進行任何解讀，因為我們在 21 年的植入物和骨再生產品第四季度表現出色。但總的來說，我會說發達國家的消費品市場相對穩定。有一些市場在上漲——但在一些市場上漲時下跌。但一般來說，它是穩定的。

On the equipment side, traditional equipment is okay. We haven't quite run off the backlog and it's pretty stable. The area that in the past, I was a little bit more concerned about is the imaging. I think it's relatively stable now. The prices are not going down as they did, and the units, the demand is pretty good. The area where there'll be lots of ups and downs is in the digital area.

設備方面，傳統設備還行。我們還沒有完全用完積壓的訂單，而且它非常穩定。過去，我更關心的領域是成像。我覺得現在比較穩定。價格並沒有像以前那樣下降，而且單位，需求非常好。數字領域會有很多起伏。

There's enormous interest in digital dentistry. I've not seen the interest this side. I think when it comes to the scanners, I think we're well beyond the first run of innovative-type buyers and into standard of use buyers. There are many new entrants into this market. There are lower priced products, for sure. And that's where the market is heading, but the demand for units is very strong. I would say that we were challenged a bit, and I think it's going to be that way for a few quarters with the new product from our leading provider of scanners.

人們對數字牙科產生了極大的興趣。我還沒有看到這方面的興趣。我認為在掃描儀方面，我認為我們已經遠遠超出了第一批創新型買家，進入了使用標準買家。這個市場有很多新進入者。肯定有低價產品。這就是市場的發展方向，但對單位的需求非常強勁。我想說我們遇到了一些挑戰，我認為我們領先的掃描儀供應商的新產品將在幾個季度內保持這種狀態。

But I don't think we'll lose those orders, they'll come. On the other side, the mill market has really almost come to a halt. We're still selling mills. But dentists, they were looking at mills are now looking at 3D printing. We got a bit of a boost there in the United States. The ADA has now provided a billing code. And so dentists, they may not buy the 3D printer right away, but they're certainly looking at it. And I think that, that market is going to do well. It's a technical use maybe for the front, I'm using it later for the front teeth is not perfect yet, but this is a great opportunity for us, and we're doing well and we expect to do even better, although it's not covering the reduction in mill demand, and now I'm dealing with the dentists.

但我認為我們不會失去這些訂單，它們會來的。另一方面，鋼廠市場幾乎停滯不前。我們還在賣磨粉機。但是牙醫們，他們之前關注的是磨坊，現在正在關注 3D 打印。我們在美國得到了一些推動。 ADA 現在提供了計費代碼。所以牙醫，他們可能不會立即購買 3D 打印機，但他們肯定會關注它。我認為，那個市場將會表現良好。這可能是前牙的技術用途，我稍後會使用它，因為前牙還不完美，但這對我們來說是一個很好的機會，我們做得很好，我們希望做得更好，雖然它不是涵蓋工廠需求的減少，現在我正在與牙醫打交道。

On the lab side, the mills are doing quite well. And so generally, that's what's happening in the equipment business. I think it's quite a good market on the traditional. On the 3D printing, mills are a challenge, and there's a slight issue in Europe because of the IDS that occurs at the end of March. And so I think people are waiting to see what developments occur, but I don't think that's going to impact the whole year sales. So that's just maybe a slight dip and up tick.

在實驗室方面，工廠做得很好。所以一般來說，這就是設備行業正在發生的事情。我認為這是一個相當不錯的傳統市場。在 3D 打印方面，工廠是一個挑戰，由於 3 月底發生的 IDS，歐洲出現了一個小問題。因此，我認為人們正在觀望會發生什麼事態發展，但我認為這不會影響全年的銷售額。所以這可能只是輕微的下降和上升。

But generally, I would say dental is stable. On the medical side, we continue to see the migration from the acute care setting and myself I'm having a partial knee replacement. And I'm told I'll be out on the same day. That was not the issue -- not the situation, perhaps 1.5 years ago. So there is a migration, and we are benefiting from that.

但總的來說，我會說牙齒是穩定的。在醫療方面，我們繼續看到急症護理環境的遷移，而我自己正在接受部分膝關節置換術。我被告知我會在同一天出去。那不是問題——不是情況，也許 1.5 年前。所以有一個遷移，我們正在從中受益。

And Jason, with reference to your question on operating margin, yes, I do think that -- like we said, we believe operating income is growing in the high single digits, low double digits when excluding the drag from PPE and COVID test kits. And yes, that should imply kind of a pro forma operating margin expansion, as you inferred. I think it's a -- really shows that the benefits of having the kind of broad product portfolio we have of not just being a distributor but also having the specialty products, also having being in the medical business, also being in the technology business that we can we can continue to kind of offset some of these market conditions that have adversely affected us a little bit, whether it be in PPE or COVID test kits with the balance of the business.

傑森，關於你關於營業利潤率的問題，是的，我確實認為 - 就像我們所說的那樣，我們認為營業收入在排除 PPE 和 COVID 測試套件的拖累時以高個位數、低兩位數增長。是的，正如您推斷的那樣，這應該意味著某種形式的營業利潤率擴張。我認為這是一個 - 真正表明擁有廣泛的產品組合的好處，我們不僅是分銷商，而且擁有專業產品，還涉足醫療業務，也涉足我們的技術業務我們能否繼續抵消一些對我們產生不利影響的市場條件，無論是個人防護裝備還是 COVID 測試套件，以及業務的平衡。

Got it. Just so Ron, just as a quick follow-up there. You're suggesting operating margin expansion total to get that. Is it gross margin driven or OpEx driven? And thanks for the comprehensive answer. I'll hop back in queue after that.

知道了。就這樣羅恩，就像那裡的快速跟進一樣。你建議營業利潤率擴張總額來實現這一目標。是毛利率驅動還是運營支出驅動？並感謝您的全面回答。之後我會跳回隊列。

It's -- given that the product mix aspect of it would be primarily gross margin driven.

這是 - 鑑於它的產品組合方面主要是由毛利率驅動的。

The next question comes from the line of John Block with Stifel.

下一個問題來自 John Block 與 Stifel 的對話。

Ron, maybe just going on a similar path, the high single digit to low double digit 2023 non-GAAP EBIT growth for the core business. Can you talk to how much that benefits from the restructuring in the back part of 2022? I know you guys usually do restructuring. Just seems a little bit bigger than normal. And when we think about going forward, more importantly, is the high single digit to low double digit, a good representation of the business longer term once the PPE, COVID headwinds abate?

羅恩，也許只是走類似的道路，核心業務的 2023 年非公認會計準則息稅前利潤從高個位數到低兩位數增長。您能談談 2022 年後期的重組有多少好處嗎？我知道你們通常會進行重組。只是看起來比平常大了一點。當我們考慮前進時，更重要的是，一旦 PPE、COVID 逆風減弱，高個位數到低兩位數是否能很好地代表業務的長期發展？

And then maybe in the interest of time, I'll just ask both upfront. Stanley, on the implant side, the dental specialties, I know you guys had a very difficult comp. But I think just -- maybe in the back part of '23, implants might be flattish, call it, in to which '22 year-over-year to throw a dart. Just would love your thoughts on how that compares to market growth? And if you feel like you guys are still taking share there?

然後，也許為了節省時間，我會先問兩個問題。斯坦利，在種植牙方面，牙科專業，我知道你們有一個非常困難的競爭。但我認為——也許在 23 年的後期，植入物可能是扁平的，稱之為“22 年同比投擲飛鏢”。只是想知道您的想法與市場增長相比如何？如果你覺得你們仍然在那里分享？

Yes. John, I think in terms of the -- and if I'll paraphrase your question and tell me if I have it wrong, it's really kind of the sustainability of continued growth in the high single to low double digits in the balance of the business. And we do have some confidence there that we can continue with that. I think that you may be aware that we have an Investor Day coming up on February 27, and we'll provide more kind of -- some kind of midterm assumptions at that point in time in terms of what we are expecting beyond '23.

是的。約翰，我認為，如果我解釋一下你的問題並告訴我我是否有誤，這實際上是業務平衡中高個位數到低兩位數持續增長的可持續性.我們確實有信心我們可以繼續這樣做。我想你可能知道我們將在 2 月 27 日舉行投資者日，我們將在那個時間點根據我們對 23 年後的預期提供更多的 - 某種中期假設。

But this is, again, kind of partially driven by the mix of the business and the fact that we're growing some aspects of the business faster than others and whether it be in specialties or in technology. Did that answer your question?

但這再次在一定程度上受到業務組合的推動，以及我們在業務的某些方面比其他方面增長得更快的事實，無論是在專業領域還是在技術領域。這回答了你的問題嗎？

The questioner has dropped off. The next question comes from the line of...

提問者下車了。下一個問題來自......

Let me just to respond quickly to the specialty products. The implants and bone regeneration products are doing very well. We're very pleased with our internal growth in that area. I think the Biotech acquisition will help. So that business continues to be strong, particularly in our core markets, which is the United States and Germany, a couple of the Germanic countries and Japan.

讓我快速響應專業產品。植入物和骨再生產品做得很好。我們對我們在該領域的內部增長感到非常滿意。我認為收購 Biotech 會有所幫助。因此，業務繼續強勁，特別是在我們的核心市場，即美國和德國，幾個日耳曼國家和日本。

On the endo products, we're doing well. Continue also there like an implants, bone regeneration to believe we are gaining market share. The aligners are so small, but I think we will get a boost with the Biotech acquisition. We will have certain synergies that I think will help drive more sales, but it's a very small business.

在 endo 產品上，我們做得很好。繼續那裡像植入物，骨再生相信我們正在獲得市場份額。對齊器非常小，但我認為我們將通過收購 Biotech 獲得提振。我們將產生一定的協同效應，我認為這將有助於推動更多的銷售，但這是一項非常小的業務。

Our next question comes from the line of Nathan Rich with Goldman Sachs.

我們的下一個問題來自 Nathan Rich 與高盛的合作。

I'll ask both upfront as well and both are related to the intraoral scanner market. Stanley, where would you say we are in the shift to lower-priced products? And can you just go into a little bit more detail on kind of what you're expecting from that market in 2023? Do we start to maybe see some signs of stabilization just in terms of ASP and mix?

我也會提前詢問這兩個問題，它們都與口內掃描儀市場有關。 Stanley，你認為我們在轉向低價產品的過程中處於什麼階段？您能否更詳細地介紹一下您對 2023 年該市場的期望？我們是否開始可能僅在 ASP 和混合方面看到一些穩定的跡象？

And then could you go into a little bit more details on the supply issues you mentioned from that 1 supplier just in terms of when -- if you have any visibility into kind of when that would potentially resolve or just what you're looking for there and what's assumed in the outlook?

然後你能不能更詳細地談談你從那個供應商那裡提到的供應問題，如果你知道什麼時候可能會解決或者你正在尋找什麼展望中假設了什麼？

Yes. On the IOS side, on the scanners, I don't think we've seen the bottom yet in terms of mix change. I think the pricing relative to particular manufacturers may have stabilized. But there are entrants into this market that have very good products that perhaps we didn't even sell much of in the past that we're not carrying and selling. So it's more of a mix- to lower-priced products rather than deflation of a particular manufacturer's existing products, although there could be some of that.

是的。在 IOS 方面，在掃描儀方面，我認為我們還沒有看到混合變化的底部。我認為相對於特定製造商的定價可能已經穩定。但是有些進入這個市場的人擁有非常好的產品，也許我們過去甚至沒有銷售過很多我們沒有攜帶和銷售的產品。因此，它更多的是低價產品的組合，而不是特定製造商現有產品的通貨緊縮，儘管其中可能存在一些。

As it relates to -- and by the way, I think we estimate about 20% to 25% of Dentists in the developed world have one of these devices, and we think that's going to be standard of care within the next couple of years. So we're very optimistic about units in that area And also these newer entrants that we're working with are doing quite well with us. As it relates to the manufacturer that has a supply chain issue, it's not a public company. I can't talk about it, but they have a new product. It's actually on the upper end that has done quite well. And that just goes to a little bit of a contradiction to what I said early on.

順便說一句，我認為我們估計發達國家約有 20% 到 25% 的牙醫擁有其中一種設備，我們認為這將在未來幾年內成為護理標準。所以我們對該領域的單位非常樂觀而且我們正在與之合作的這些新進入者與我們一起做得很好。由於它涉及存在供應鏈問題的製造商，因此它不是上市公司。我不能談論它，但他們有一個新產品。它實際上在高端做得很好。這與我早些時候所說的有點矛盾。

For manufacturers that have unique technology, there is a demand for paying more, but that's not generally for the whole market. The whole market, the 75% of people that don't have a device, they're interested more in a lower-priced product that has enough features for them. But the one that some back order is on the higher end of features, and we don't expect that to resolve for 3 quarters.

對於擁有獨特技術的製造商，有支付更多費用的需求，但這並不是整個市場的普遍情況。整個市場，75% 的人沒有設備，他們更感興趣的是價格較低但功能足夠他們使用的產品。但是一些延期交貨是在功能的高端，我們預計這不會在 3 個季度內解決。

And we have time for one last question coming from the line of Kevin Caliendo with UBS.

我們有時間回答來自瑞銀的 Kevin Caliendo 的最後一個問題。

Can you quantify in any way the impact of the 3D printing that you called out in the release and on the call? Like in terms of numbers and market share and the like, -- Because I know you've talked about it in the past, but I think this is the first time really called it out in the press release is impacting the business.

您能否以任何方式量化您在發布和通話中提到的 3D 打印的影響？就像在數字和市場份額等方面一樣，——因為我知道你過去曾談論過它，但我認為這是第一次在新聞稿中真正提到它正在影響業務。

And just as a follow-up, all this, and I appreciate all the color on the inventories and the equipment and IOS and the like. But your backlog grew in 3Q, and you believe you said it grew sequentially through the quarter. What is the expectation for equipment sales? And where does your backlog sit now relative to where you were at the end of 3Q?

作為後續行動，所有這一切，我欣賞庫存、設備和 IOS 等方面的所有顏色。但是你的積壓在第三季度增加了，你相信你說它在整個季度都在連續增長。設備銷售預期如何？相對於第三季度末的情況，您現在的積壓情況如何？

Let me deal with the backlog first. It is in North America, similar to what it was at the end of the third quarter. So I don't think much has changed. I can't give you the exact timing. A lot of that is the result of traditional equipment, but we seem to be topping up whatever we ship. And so that market seems to be quite strong in Europe. It's dipped slightly, but we think that's to some extent because of the IDS because people are holding back. But we dealing at the margin here. So it's not material.

讓我先處理積壓。它在北美，類似於第三季度末的情況。所以我認為沒有太大變化。我不能給你確切的時間。其中很多是傳統設備的結果，但我們似乎在裝運任何東西。因此，該市場在歐洲似乎相當強勁。它略有下降，但我們認為這在某種程度上是因為 IDS，因為人們在猶豫。但我們在這里以邊際交易。所以這不是物質的。

The bottom line is the backlogs are good in both North America and internationally, and the equipment is strong. As it relates to mills, I would say the mill market has significantly come down. And I'm referring to as I know, chairside mills, that's just not doing well. I'm not referring to lab mills. We are the largest provider of products to dental laboratories. And that market seems to be relatively strong.

底線是北美和國際上的積壓訂單都很好，設備也很強大。就工廠而言，我想說工廠市場已經大幅下滑。據我所知，我指的是椅邊磨坊，但效果並不好。我指的不是實驗室工廠。我們是最大的牙科實驗室產品供應商。而且那個市場似乎比較強勁。

The switch to the 3D printing is not occurring 1:1 yet. What's happening is there's a lot of dentists that are saying, I need to find out more about this. And I expect that over the next couple of quarters, our team will be out there educating dentists on the opportunity for 3D printing. I suspect it will result a little bit in mills going up again because right now, it's a situation that dentists want to understand more about what's going on. And 3D printing is going to be important, but not substitute completely for chairside milling.

向 3D 打印的轉換尚未 1:1 發生。現在的情況是有很多牙醫說，我需要了解更多相關信息。我預計在接下來的幾個季度裡，我們的團隊將在那裡就 3D 打印的機會對牙醫進行教育。我懷疑這會導致磨坊再次上漲，因為現在，牙醫想更多地了解正在發生的事情。 3D 打印將很重要，但不能完全替代椅邊銑削。

The market is just, I think, come to a little bit of an educational stumble. But I think the mills will come back again, but not to where they were. And 3D printing is at a relatively early stage. But I think we're doing very well in terms of growing our global market share, the sales that are out there. 3D printing will improve as various materials come to market and as the aesthetics improve.

我認為，市場只是有點教育性的失誤。但我認為工廠會再次回來，但不會回到原來的位置。而3D打印還處於相對早期的階段。但我認為我們在增加全球市場份額和銷售方面做得很好。隨著各種材料的上市和審美的提高，3D 打印技術將會得到改善。

But I think the message is that digital restorations, a hot product, dentists interest in investing, our job is to make sure that we educate the dentists on the appropriate devices for their practice and then close on sales.

但我認為信息是數字修復，一個熱門產品，牙醫有興趣投資，我們的工作是確保我們教育牙醫使用適合他們實踐的設備，然後關閉銷售。

And if I can ask, Ron, a really quick follow-up. I just wasn't sure if I heard. Is the guidance include or exclude Dental Biotech? And what was the impact of that?

如果我可以問，羅恩，一個非常快速的跟進。我只是不確定我是否聽到了。該指南是否包括或不包括 Dental Biotech？那有什麼影響呢？

The guidance does not include Dental Biotech. I think that when we put the release out of Dental biotech, we said it would be slightly dilutive to 2023 when excluding amortization expense.

該指南不包括牙科生物技術。我認為，當我們將牙科生物技術的發布排除在外時，我們說如果不計攤銷費用，到 2023 年會略微稀釋。

Okay, everyone Thank you very much for calling in. The message I think we want to communicate, I know we want to communicate is that our core business is in good shape. We expect decent internal growth rates, local currency, of course, in 2023, we'll cover this in more in detail at our Investor Day. We expect our internal growth -- sorry, our operating income to continue to grow quite nicely, high single digits, low double digits. And bottom line is the business is in good shape in markets that are doing well.

好的，大家非常感謝您的來電。我想我們想要溝通的信息，我知道我們想要溝通的是我們的核心業務狀況良好。我們預計在 2023 年會有不錯的內部增長率，本地貨幣，我們將在投資者日對此進行更詳細的介紹。我們預計我們的內部增長——抱歉，我們的營業收入將繼續很好地增長，高個位數，低兩位數。最重要的是，在表現良好的市場中，業務狀況良好。

There are nuances that need to be understood. We're happy to deal with that and further detail at the Investor Day. So if anyone wants to reach out, Graham, on the Investor Relations side, he'd be happy to provide further clarity on our remarks. So thank you very much. And hopefully, we'll see everyone on the call at our Investor Day in New York City, the following week. Thank you very much.

有些細微差別需要理解。我們很高興在投資者日處理這個問題和進一步的細節。因此，如果有人想聯繫投資者關係方面的格雷厄姆，他很樂意進一步澄清我們的言論。非常感謝。希望我們能在下週的紐約市投資者日上看到每個人的電話。非常感謝。

This concludes today's teleconference. You may disconnect your lines at this time. Thank you for your participation, and have a great day.

今天的電話會議到此結束。此時您可以斷開線路。感謝您的參與，祝您有美好的一天。