漢瑞祥 (HSIC) 2023 Q2 法說會逐字稿

Good morning, ladies and gentlemen, and welcome to Henry Schein's Second Quarter 2023 Earnings Conference Call. (Operator Instructions) As a reminder, this call is being recorded.

早上好，女士們、先生們，歡迎參加 Henry Schein 2023 年第二季度收益電話會議。 （操作員說明）謹此提醒，此通話正在錄音。

And 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. Thank you. Please go ahead, Graham.

現在我想介紹今天電話會議的主持人格雷厄姆·斯坦利 (Graham Stanley)，他是 Henry Schein 的投資者關係副總裁兼戰略財務項目官。謝謝。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 second quarter of 2023. With me on the call today are Stanley Bergman, Chairman of the Board and Chief Executive Officer of Henry Schein; and Ron South, Senior Vice President and Chief Financial Officer.

感謝您，運營商，感謝你們每個人加入我們討論 Henry Schein 2023 年第二季度的財務業績。今天與我通話的有 Henry Schein 董事會主席兼首席執行官 Stanley Bergman；以及高級副總裁兼首席財務官羅恩·南 (Ron South)。

Before we begin, I'd like to state that certain comments made during this call will include information that's forward-looking. As you know, risks and uncertainties involved in the company's business may affect the matters referred to in forward-looking statements. 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. In addition, all comments about the market we serve, including end market growth rates and market share are based upon the company's internal analysis and estimates.

在開始之前，我想聲明，在本次電話會議中提出的某些評論將包含前瞻性信息。如您所知，公司業務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表明的業績存在重大差異。這些前瞻性陳述完全符合 Henry Schein 向美國證券交易委員會提交的文件中包含的警示性聲明，並包含在這些文件的風險因素部分中。此外，有關我們所服務的市場的所有評論，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。

Today's remarks will include both GAAP and non-GAAP financial results. We believe the non-GAAP financial measures provide investors with useful supplemental information about 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.

今天的評論將包括公認會計原則和非公認會計原則財務業績。我們相信，非公認會計準則財務指標為投資者提供了有關我們業務財務業績的有用補充信息，能夠對某些項目可能獨立於業務業績而變化的時期之間的財務業績進行比較，並允許在所使用的關鍵指標方面提高透明度由管理層經營我們的業務。

These non-GAAP financial measures are presented solely for informational and comparative purposes and should not be regarded as a replacement for corresponding GAAP measures. Reconciliations between GAAP and non-GAAP measures are included in Exhibit B of today's press release and can be found in the Financial and Filings section of our Investor Relations website under the Supplemental Information heading. For additional financial information, please refer to our quarterly earnings presentation also posted on our Investor Relations 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 衡量標準之間的調節包含在今天新聞稿的附件 B 中，並且可以在我們投資者關係網站的“財務和文件”部分的“補充信息”標題下找到。有關更多財務信息，請參閱我們的投資者關係網站上發布的季度收益報告。

The content of this conference call contains time-sensitive information that is accurate only as of the date of this live broadcast, August 7, 2023. Henry Schein undertakes no obligation to revise or update any forward-looking statements to reflect events or circumstances after the date of this call. Lastly, 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間敏感信息，僅截至本次直播之日（2023 年8 月7 日）準確。Henry Schein 不承擔修改或更新任何前瞻性陳述以反映直播後發生的事件或情況的義務。本次通話的日期。最後，在今天的問答環節中，請將自己限制在一個問題和後續跟進上。說到這裡，我想把電話轉給斯坦利·伯格曼。

Thank you, Graham. Good morning, everyone, and thank you for joining us today. We are today reporting solid results for the second quarter driven by our North American dental businesses with strong equipment and steady general merchandise sales and with continuing strength in sales of our technology and value-added services, our implants, biomaterials and endodontic products. The underlying fundamentals in the U.S. dental market remains strong and demand for dental services and customer confidence continues to improve as, of course, evidenced by our -- by the ongoing investments our customers are making in their practices.

謝謝你，格雷厄姆。大家早上好，感謝您今天加入我們。今天，我們報告了第二季度的穩健業績，這得益於我們的北美牙科業務，擁有強大的設備和穩定的一般商品銷售，以及我們的技術和增值服務、種植體、生物材料和牙髓產品的銷售持續強勁。美國牙科市場的基本面仍然強勁，對牙科服務的需求和客戶信心持續改善，當然，我們的客戶在其實踐中進行的持續投資就證明了這一點。

In addition, we are seeing growing demand for our implant systems and endodontic products as well as our integrated software and services solutions, which are generating strong growth by delivering greater efficiency and a better experience to our customers.

此外，我們看到對我們的種植體系統和牙髓產品以及集成軟件和服務解決方案的需求不斷增長，這些解決方案通過為客戶提供更高的效率和更好的體驗而產生強勁的增長。

In the alternate care market, that's the medical market, electric procedures are close to normal levels while second quarter visits to primary care physicians were down year-over-year, reflecting last year's higher visits to physician offices and urgent care centers as a result of the extended flu season last year. As expected, sales of PPE and COVID test kits continue to decline. However, we are now seeing sales level up sequentially -- we're now seeing sales level off sequentially, and we expect the year-on-year impact to be much lower in the second half of 2023. When excluding these product categories, local currency internal sales growth for the company was 3.3%.

在替代護理市場，即醫療市場，電子程序接近正常水平，而第二季度初級保健醫生的就診次數同比下降，反映出去年由於以下原因對醫生辦公室和緊急護理中心的就診次數增加去年流感季節延長。正如預期的那樣，個人防護裝備和新冠病毒檢測試劑盒的銷量繼續下降。然而，我們現在看到銷售額連續上升 - 我們現在看到銷售額連續下降，我們預計 2023 年下半年同比影響將低得多。當排除這些產品類別時，本地公司的貨幣內部銷售增長率為3.3 %。

In general, our North American dental business performed better than we expected at the start of the year, offset by some incremental COVID-related headwinds facing our medical business, as discussed earlier on. Our outlook reflects overall confidence in our business and in the markets we serve. And accordingly, we are affirming our non-GAAP diluted EPS financial guidance for 2023. Our financial results and guidance demonstrate the strength of the business as discussed earlier and continued advancement of our 2022-2024 BOLD+1 Strategic Plan.

總體而言，我們的北美牙科業務表現好於我們年初的預期，但正如之前討論的那樣，我們的醫療業務面臨著一些與新冠疫情相關的不利因素，這抵消了這一影響。我們的前景反映了對我們的業務和我們所服務的市場的整體信心。因此，我們確認 2023 年非 GAAP 攤薄每股收益財務指引。我們的財務業績和指引證明了之前討論的業務實力以及我們 2022-2024 年 BOLD+1 戰略計劃的持續推進。

We are successfully executing key initiatives -- the key initiatives actually in the plan, including expanding our specialty products and value-added services portfolio, optimizing our distribution businesses, leveraging key customer relationships and driving digital transformation. Year-to-date, we have committed over $1 billion to acquisitions that accelerate the implementation of our strategic plan, adding high-growth, high-margin products and services to our offering.

我們正在成功執行關鍵舉措——計劃中實際的關鍵舉措，包括擴大我們的特色產品和增值服務組合、優化我們的分銷業務、利用關鍵客戶關係和推動數字化轉型。今年迄今為止，我們已承諾投入超過 10 億美元進行收購，以加速我們戰略計劃的實施，為我們的產品和服務增添高增長、高利潤的產品和服務。

With this clear focus, we believe we are well positioned to further enhance Henry Schein's leadership in the markets that we serve and to deliver long-term sustainable shareholder value. Among the larger transactions are our strategic partnership with Biotech Dental, which we closed in April, the acquisition of S.I.N. Implant Systems, which we closed in July, and the recently announced acquisitions of Shield Healthcare and Large Practice Sales, which we expect to close in the third quarter. With these transactions, we have significantly expanded our implant, bone regeneration and clear aligner product portfolio, digital workflow capabilities, presence in distributing products directly to the patient in the home care arena and value-added services.

憑藉這一明確的重點，我們相信我們有能力進一步增強 Henry Schein 在我們所服務的市場中的領導地位，並提供長期可持續的股東價值。較大的交易包括我們與 Biotech Dental 的戰略合作夥伴關係（我們於 4 月份完成了該合作）、收購 S.I.N. Implant Systems（我們於 7 月完成）以及最近宣布的對 Shield Healthcare 和 Large Practice Sales 的收購（我們預計將在第三季度完成）。通過這些交易，我們顯著擴展了種植體、骨再生和透明矯正器產品組合、數字工作流程能力、在家庭護理領域直接向患者分發產品的能力以及增值服務。

Continuing our strategy of following the patient to provide health care services where it's being delivered, we expect our recently announced agreement to acquire Shield will create an offering with more than $300 million in annual revenue that distributes medical supplies across the United States directly to patients in their home. On completion of this acquisition, this business will be led by [Adam Drees], who joined Henry Schein as Vice President, General Manager of Homecare Medical Products, and has significant experience in this area.

繼續我們跟踪患者提供醫療保健服務的戰略，我們預計我們最近宣布的收購 Shield 的協議將創造一個年收入超過 3 億美元的產品，將醫療用品直接分發給美國各地的患者他們的家。此次收購完成後，該業務將由 [Adam Drees] 領導，他加入 Henry Schein 擔任家庭護理醫療產品副總裁兼總經理，並在該領域擁有豐富的經驗。

We are excited about the fundamentals of this market, which supports a growing aging demographic experiencing more chronic disease beyond added convenience to the patient, the trend of moving care to their home is expected to provide efficiency in the overall health care system. And most important, many of our customers have asked us to provide the service. We've been providing it in a moderate way up to now, but now we are committed to advancing our position in this market to support our customers who have requested us to move into the home care arena as a continuum of care.

我們對這個市場的基本面感到興奮，該市場支持日益增長的老齡化人口經歷更多的慢性疾病，除了為患者提供更多便利之外，將護理轉移到家中的趨勢預計將提高整個醫療保健系統的效率。最重要的是，我們的許多客戶要求我們提供這項服務。到目前為止，我們一直以適度的方式提供服務，但現在我們致力於提升我們在這個市場的地位，以支持要求我們進入家庭護理領域作為連續護理的客戶。

Our home care medical product offering will now include enterostomy, incontinence, wound care and diabetes products. And we plan to leverage our physician relationships, as noted earlier on, product distribution expertise and corporate brand assortment to further grow this area. Also for many years, we have had a successful practice transitions group dedicated to existing smaller and midsized dental practices.

我們的家庭護理醫療產品現在將包括腸造口術、失禁、傷口護理和糖尿病產品。正如前面所提到的，我們計劃利用我們的醫生關係、產品分銷專業知識和企業品牌分類來進一步發展這一領域。同樣多年來，我們擁有一個成功的診所過渡小組，致力於現有的中小型牙科診所。

And I'm most enthusiastic about the acquisition of Large Practice Sales, a leading transition advisory services business which expands our capability to advise dental practices on larger practice transitions, of course, being of service to our DSO customers as well.

我最熱衷於收購大型診所銷售公司，這是一家領先的轉型諮詢服務公司，它擴大了我們為牙科診所就大型診所轉型提供建議的能力，當然，也為我們的 DSO 客戶提供服務。

We are also advancing the integration of our digital -- of our dental digital workflow software with our practice management software to create a unique digital solution for dental practitioners. In this connection, we have asked Andrea Albertini, CEO of our International Distribution Group, to lead the cross-company One Schein solution and accelerate out what we have internally called our 3-click integrated software solution for our customers. This simplified open architecture process begins with the capture of any image from an intraoral scanner or 2D/3D Digital Imaging unit through our practice management software, followed by the application of embedded artificial intelligence solutions to help in diagnosis, case acceptance, planning and design and ending with the direct connection to fabricate the prosthetic through either chairside mill, a 3D printer, or the transmission digitally of the file to the dental lab.

我們還正在推進牙科數字工作流程軟件與實踐管理軟件的數字集成，為牙科醫師創建獨特的數字解決方案。在這方面，我們已要求國際分銷集團首席執行官 Andrea Albertini 領導跨公司 One Schein 解決方案，並為客戶加速推出我們內部所謂的 3 單擊集成軟件解決方案。這種簡化的開放式架構流程首先通過我們的實踐管理軟件從口腔內掃描儀或 2D/3D 數字成像裝置捕獲任何圖像，然後應用嵌入式人工智能解決方案來幫助診斷、病例受理、規劃和設計以及最後通過椅邊銑床、3D 打印機或將文件數字傳輸到牙科實驗室直接連接來製造假肢。

Let me now turn to a review of the quarterly highlights from each business unit. Beginning with the dental distribution. In North America, dental offices were generally busy, and this helped our second quarter dental merchandise growth, of course, excluding sales of PPE products. A driver in equipment sales was a broad equipment -- was, of course, our broad equipment offering, which enabled our customers needing solutions to increase productivity to meet demand and of course, drive up the efficiency of the practice and of course better clinical care. North American dental equipment sales were up double digits. Sales of traditional equipment continued to be strong, and we are pleased that sales of digital equipment returned to growth this quarter.

現在讓我回顧一下每個業務部門的季度亮點。從牙科分佈開始。在北美，牙科診所普遍很忙，這有助於我們第二季度牙科商品的增長，當然，不包括個人防護裝備產品的銷售。設備銷售的驅動力是廣泛的設備——當然是我們廣泛的設備產品，它使我們的客戶能夠需要解決方案來提高生產力以滿足需求，當然也提高了實踐效率，當然還有更好的臨床護理。北美牙科設備銷售額增長了兩位數。傳統設備的銷售持續強勁，我們很高興數字設備的銷售本季度恢復增長。

International equipment sales were relatively flat to the prior year. The equipment backlog in North America has held steady, and our international equipment backlog is returning to pre-pandemic levels.

國際設備銷售額與上年持平。北美的設備積壓保持穩定，我們的國際設備積壓正在恢復到大流行前的水平。

Now turning to our dental specialties. Sales of dental implants and biomaterials were key drivers in the second quarter, complemented by endodontics and clear aligner businesses. We are seeing implant demand increasing in North America with sales of our BioHorizons Camlog premium implant delivering mid-single-digit growth, a sequential improvement versus the first quarter Internationally, demand for implant systems remains very good.

現在轉向我們的牙科專業。牙種植體和生物材料的銷售是第二季度的主要驅動力，牙髓治療和透明矯正器業務也起到了補充作用。我們看到北美的種植體需求不斷增長，我們的BioHorizo​​ns Camlog 優質種植體的銷售實現了中個位數增長，與第一季度相比連續改善。 國際上對種植體系統的需求仍然非常良好。

Generally, demand for implants continues to favor value-priced products. We believe that our Camlog -- BioHorizons Camlog product offering is well positioned. But also the moving of demand for value-priced products is reflected in our double-digit growth achieved by our dentist, provider of dental implants and bone generation products.

一般來說，對植入物的需求繼續青睞高性價比的產品。我們相信我們的 Camlog - BioHorizo​​ns Camlog 產品定位良好。但對高性價比產品的需求變化也反映在我們的牙醫、牙種植體和骨生成產品供應商實現的兩位數增長上。

Looking at recent deals, our transaction with Biotech Dental brings a market-leading portfolio of dental implants and clear aligners to Henry Schein and digital workflow software. Soon, on the other hand, the S.I.N. Implants Systems provides us an entree into the large Brazilian implant market and complements our successful Brazilian general dental consumables and equipment business. Both Biotech and S.I.N. offer high-quality implants at an attractive price, and we have exciting opportunities of expanding these cost-competitive products to other geographies including the United States, providing, of course, a more comprehensive offering and enabling us to be even more competitive in the implant and bone regeneration space.

看看最近的交易，我們與 Biotech Dental 的交易為 Henry Schein 和數字工作流程軟件帶來了市場領先的牙種植體和透明矯正器產品組合。另一方面，很快，S.I.N. Implants Systems 為我們提供了進入巴西大型種植體市場的入口，並補充了我們成功的巴西普通牙科耗材和設備業務。 Biotech 和 S.I.N.以有吸引力的價格提供高質量的植入物，我們有令人興奮的機會將這些具有成本競爭力的產品擴展到包括美國在內的其他地區，當然，提供更全面的產品並使我們在植入物方面更具競爭力和骨再生空間。

This quarter, growth in our endodontic business continued to be driven by our Brasseler and Edge brands in both North America and internationally. Our orthodontic business is making steady progress with our liner business, although this is still a relatively small component of our global revenues.

本季度，我們的牙髓業務的增長繼續受到我們在北美和國際市場的 Brasseler 和 Edge 品牌的推動。我們的正畸業務正在與我們的內襯業務一起穩步發展，儘管這仍然是我們全球收入的相對較小的組成部分。

We are seeing growing demand for our specialty products from DSOs, and that's from -- specifically from our DSO customers. And recall, we have a pretty decent market share in the DSO market. And we see continued adoption of specialty procedures among dental practitioners. We have grown our global implant bone regeneration and related products and services into over $800 million in revenue, and our specialty products to approaching $1.2 billion in revenue in the aggregate on an annualized basis. We now offer a broad range of premium and value alternatives to North American and international practitioners. We expect dental specialty growth to accelerate in the second half of the year due to these acquisitions, but also due to year-over-year comparisons easing.

我們看到 DSO 對我們的特種產品的需求不斷增長，特別是來自我們的 DSO 客戶。回想一下，我們在 DSO 市場上擁有相當不錯的市場份額。我們看到牙科醫師繼續採用專業手術。我們的全球種植骨再生及相關產品和服務的年收入已超過 8 億美元，特種產品的年收入總額已接近 12 億美元。我們現在為北美和國際從業者提供廣泛的優質和超值替代方案。我們預計，由於這些收購，以及同比比較的緩和，牙科專業業務的增長將在今年下半年加速。

Now let's turn to the technology and value-added services business, where the largest component, of course, is Henry Schein One. Global growth in Henry Schein One is being driven by ongoing migration to our cloud-based practice management software solutions, Dentrix Ascend and Dentally, and by growth in our revenue cycle management business resulting from increased patient traffic driving a higher volume of e-claims. Dentrix Ascend and Dentally grew to approximately 7,000 customers, and this today represents approximately 40% year-over-year growth.

現在讓我們轉向技術和增值服務業務，其中最大的組成部分當然是 Henry Schein One。 Henry Schein One 的全球增長得益於我們基於雲的實踐管理軟件解決方案 Dentrix Ascend 和 Dentally 的持續遷移，以及患者流量增加推動電子索賠數量增加帶來的收入周期管理業務的增長。 Dentrix Ascend 和 Dentally 的客戶數量已增至約 7,000 名，目前同比增長約 40%。

Customers and prospective customers are particularly enthusiastic about incorporating our artificial intelligence solution into their practice management software product. We believe our embedded solution is certainly best in class. We've grown our technology and value-added services businesses into an almost $900 million revenue portfolio on an annualized basis.

客戶和潛在客戶特別熱衷於將我們的人工智能解決方案納入他們的實踐管理軟件產品中。我們相信我們的嵌入式解決方案無疑是同類中最好的。我們已將技術和增值服務業務發展成為年收入近 9 億美元的組合。

In addition to Henry Schein One's technology solutions, we now offer a broad range of value-added services through our businesses such as eAssist, which provides revenue cycle management, and Unisys providing advice on PPO agreements with insurance providers along with other services including financial services, practice transitions, staffing services, education and remote patient monitoring for office-based dental and medical practitioners. We expect the technology and value-added services sales growth will accelerate during the second half of the year.

除了Henry Schein One 的技術解決方案外，我們現在還通過我們的業務提供廣泛的增值服務，例如提供收入周期管理的eAssist，以及提供有關與保險提供商的PPO 協議以及包括金融服務在內的其他服務的建議的Unisys 、診所的牙科和醫療從業人員的執業過渡、人員配備服務、教育和遠程患者監控。我們預計下半年技術和增值服務銷售增長將加速。

Turning now to the medical business. During the second quarter, our medical business achieved low single-digit growth, excluding PPE products and, of course, COVID-19 test kits. This compares with mid-double-digit growth last year. It's really important to us that when results benefited from some late-season sales at point-of-care flu diagnostic tests. This year was a more typical flu season, and as a result, we had much lower sales of flu, COVID-19 and multi-assay diagnostics and related products.

現在轉向醫療業務。第二季度，我們的醫療業務實現了低個位數增長，不包括 PPE 產品，當然還有 COVID-19 檢測套件。與去年的中兩位數增長相比。對我們來說非常重要的是，當結果受益於即時流感診斷測試的一些季末銷售時。今年是一個較為典型的流感季節，因此，我們的流感、COVID-19 以及多檢測診斷及相關產品的銷售額大幅下降。

Sales growth was also affected by the conversion of certain pharmaceuticals and other products to lower-priced generics and corporate brands, of course, with a higher gross profit margin. This is a trend that is taking place throughout health care. Sales of medical equipment were relatively soft in the market. The market took a temporary pause to assess likely future demand. However, we have subsequently seen investment interest return in July.

銷售增長還受到某些藥品和其他產品轉向價格較低的仿製藥和企業品牌的影響，當然，毛利率更高。這是整個醫療保健領域正在發生的趨勢。市場醫療器械銷售相對疲軟。市場暫時停頓以評估未來可能的需求。然而，我們隨後在7月份看到了投資利息的回歸。

So in summary, the fundamentals of our core business remains solid, in fact, very good. And the team is executing well on our 2022-2024 BOLD+1 Strategic Plan.

總而言之，我們核心業務的基本面仍然穩固，事實上非常好。該團隊在我們的 2022-2024 BOLD+1 戰略計劃上執行得很好。

With that, I'll turn the call over to Ron to discuss specifics relative to our quarterly financial results and provide full year guidance. Thank you. Ron, please.

接下來，我將把電話轉給羅恩，討論與我們季度財務業績相關的細節，並提供全年指導。謝謝。羅恩，請。

Thank you, Stanley, and good morning, everyone. I'll be discussing our results as reported on a GAAP basis and also on a non-GAAP basis. Our second quarter non-GAAP financial results for 2023 and 2022 exclude integration and restructuring costs and amortization expense of acquired intangible assets. This is detailed in Exhibit B of today's press release. With respect to sales growth, I will focus on LCI sales growth, which is internally generated sales in local currencies compared to the prior year and excludes acquisitions.

謝謝你，斯坦利，大家早上好。我將討論我們在 GAAP 基礎上和非 GAAP 基礎上報告的結果。我們 2023 年和 2022 年第二季度非 GAAP 財務業績不包括整合和重組成本以及收購的無形資產的攤銷費用。今天新聞稿的附件 B 對此進行了詳細介紹。關於銷售增長，我將重點關注 LCI 銷售增長，這是與上一年相比以當地貨幣計算的內部產生的銷售額，不包括收購。

Second quarter global sales were $3.1 billion or LCI sales decrease of 0.2%. However, when excluding sales of PPE products and COVID-19 test kits, our LCI sales grew 3.3%. We sold $138 million in PPE products in the second quarter of this year, a decrease of approximately 28% year-over-year, and we sold $26 million in COVID-19 test kits, a decrease of approximately 62% year-over-year.

第二季度全球銷售額為 31 億美元，LCI 銷售額下降 0.2%。然而，如果排除 PPE 產品和 COVID-19 檢測套件的銷售，我們的 LCI 銷售額增長了 3.3%。今年第二季度，我們銷售了 1.38 億美元的 PPE 產品，同比下降約 28%；我們銷售了 2600 萬美元的 COVID-19 檢測試劑盒，同比下降約 62% 。

Our GAAP operating margin for the second quarter of 2023 was 6.5%, an 81 basis point decline compared with the prior year GAAP operating margin. On a non-GAAP basis, operating margin for the second quarter was 8.2%, a 14 basis point decline compared with the prior year non-GAAP operating margin. Excluding the impact from lower PPE and COVID-19 test kit sales, we estimate that non-GAAP operating margin expanded 27 basis points.

我們 2023 年第二季度的 GAAP 營業利潤率為 6.5%，與上年 GAAP 營業利潤率相比下降 81 個基點。按非 GAAP 基準計算，第二季度營業利潤率為 8.2%，較上年非 GAAP 營業利潤率下降 14 個基點。排除 PPE 和 COVID-19 測試套件銷量下降的影響，我們估計非 GAAP 營業利潤率擴大了 27 個基點。

Second quarter 2023 GAAP net income was $140 million or $1.06 per diluted share. This compares with prior year GAAP net income of $160 million or $1.16 per diluted share. Our second quarter 2023 non-GAAP net income was $173 million or $1.31 per diluted share. This compares with prior year non-GAAP net income of $179 million or $1.30 per diluted share. These results were impacted by a decreased contribution from lower PPE and COVID-19 test kit sales estimated to be $0.08 per diluted share relative to the prior year period. The foreign currency exchange impact on our second quarter EPS was immaterial.

2023 年第二季度 GAAP 淨利潤為 1.4 億美元，或攤薄後每股收益 1.06 美元。相比之下，上一年的 GAAP 淨利潤為 1.6 億美元，即稀釋後每股收益 1.16 美元。我們 2023 年第二季度的非 GAAP 淨利潤為 1.73 億美元，即稀釋後每股收益 1.31 美元。相比之下，上一年非 GAAP 淨利潤為 1.79 億美元，即稀釋後每股收益 1.30 美元。這些結果受到 PPE 和 COVID-19 測試套件銷售額下降的影響，預計與去年同期相比，攤薄後每股收益為 0.08 美元。外匯兌換對我們第二季度每股收益的影響並不重大。

As Stanley mentioned, we have committed over $1 billion in the acquisitions we have announced so far this year, with $250 million invested in equity investments and business acquisitions in the second quarter of this year, and we have subsequently signed agreements committing another $800 million. The increased capital deployment for acquisitions has impacted quarterly financial results more than in previous years.

正如斯坦利提到的，我們在今年迄今為止宣布的收購中承諾了超過10 億美元，其中2.5 億美元投資於今年第二季度的股權投資和業務收購，隨後我們又簽署了承諾另外8 億美元的協議。收購的資本配置增加對季度財務業績的影響比前幾年更大。

The second quarter 2023 GAAP and non-GAAP financial results included high acquisition activity that resulted in acquisition expenses of $6 million or $0.04 per diluted share, which were offset by net acquisition-related fair value adjustments of $16 million or $0.09 per diluted share, including a related remeasurement gain resulting from the purchase of a controlling interest of a previously held equity investment. This resulted in a net favorable impact of $10 million or $0.05 per diluted share for the quarter, as illustrated in exhibit C to our press release.

2023 年第二季度GAAP 和非GAAP 財務業績包括大量收購活動，導致收購費用為600 萬美元或稀釋後每股0.04 美元，但被與收購相關的淨公允價值調整1600 萬美元或稀釋後每股0.09美元所抵消，其中包括購買先前持有的股權投資的控股權而產生的相關重新計量收益。這為本季度帶來了 1000 萬美元或稀釋後每股 0.05 美元的淨有利影響，如我們新聞稿的附錄 C 所示。

On a year-to-date basis, the favorable net impact of these acquisition expenses and acquisition-related fair value adjustments, including the related remeasurement gain resulting from the purchase of a controlling interest of a previously held equity investment was only $0.01 per diluted share. We are confident that these strategic investments will drive enhanced growth and value creation over the long term as we accelerate the implementation of our 2022-2024 BOLD+1 Strategic Plan.

年初至今，這些收購費用和與收購相關的公允價值調整（包括購買先前持有的股權投資的控股權益而產生的相關重新計量收益）的有利淨影響僅為稀釋每股0.01美元。我們相信，隨著我們加快實施 2022-2024 年 BOLD+1 戰略計劃，這些戰略投資將推動長期增長和價值創造。

Turning to our second quarter sales results. Global dental sales were $2.0 billion and LCI sales increased by 2.0%. Excluding sales of PPE products, LCI sales growth was 3.7%. Global dental merchandise LCI sales increased by 0.7% but increased by 2.8% when excluding PPE products. North America dental merchandise sales were flat compared to the prior year and grew 2.6% when excluding sales of PPE products with good underlying growth offset by lower growth in our dental lab business as a result of digitalization and in our traditional orthodontics business.

轉向我們第二季度的銷售業績。全球牙科銷售額為 20 億美元，LCI 銷售額增長 2.0%。不包括個人防護用品（PPE）產品的銷售，LCI 銷售增長 3.7%。全球牙科商品 LCI 銷售額增長 0.7%，但若不包括個人防護裝備 (PPE) 產品，則增長 2.8%。北美牙科商品銷售額與上年持平，不包括 PPE 產品銷售額增長 2.6%，潛在增長良好，但被數字化和傳統正畸業務導致牙科實驗室業務增長放緩所抵消。

International dental merchandise LCI sales increased by 1.9% and by 3.2% when excluding sales of PPE products. Global dental equipment LCI growth was 6.4%. Our North America dental equipment LCI sales increased 9.8% as we continue to see strong sales growth for traditional equipment and sales of digital equipment in North America returned to growth. International equipment LCI sales increased by 1.6%.

國際牙科商品 LCI 銷售額增長了 1.9%，如果不包括個人防護裝備 (PPE) 產品的銷售額，則增長 3.2%。全球牙科設備生命週期清單增長率為 6.4%。我們的北美牙科設備 LCI 銷售額增長了 9.8%，因為我們繼續看到傳統設備的強勁銷售增長以及北美數字設備的銷售恢復增長。國際設備LCI銷售額增長1.6%。

Dental specialty products include implants, bone regeneration materials, orthodontic products and endodontic products. Sales of these products were approximately $270 million in the second quarter, with growth of 15.7% driven by acquisitions and good implant sales in both North America and internationally, particularly in Austria, Switzerland and in Germany where we have a leading market position.

牙科特種產品包括種植體、骨再生材料、正畸產品和牙髓產品。第二季度這些產品的銷售額約為2.7 億美元，增長了15.7%，這得益於北美和國際上的收購和良好的植入物銷售，特別是在我們擁有領先市場地位的奧地利、瑞士和德國。

Global technology and value-added services sales during the second quarter were $193 million, with LCI growth of 5.5%. Sales were again negatively impacted by a government contract which expired early in the third quarter of 2022. LCI sales growth was 6.9% when adjusting for this contract. In North America, sales growth was driven primarily by our Dentrix Ascend, practice management and revenue cycle management businesses. Growth internationally was driven by our Dentally cloud-based solution.

第二季度全球技術和增值服務銷售額為 1.93 億美元，LCI 增長 5.5%。銷售再次受到 2022 年第三季度初到期的政府合同的負面影響。調整該合同後，LCI 銷售增長率為 6.9%。在北美，銷售增長主要由我們的 Dentrix Ascend、實踐管理和收入周期管理業務推動。我們基於 Dentally 雲的解決方案推動了國際增長。

Global medical sales during the second quarter were $950 million and LCI sales decreased 5.3% 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 2.0% and were impacted by lower flu cases versus the prior year, which resulted in lower point-of-care diagnostic tests and related product sales. Keep in mind, this was against a very difficult comparison as LCI growth, excluding PPE products and COVID-19 test kits, grew 14.3% in the second quarter of 2022.

第二季度全球醫療銷售額為 9.5 億美元，由於 PPE 產品和 COVID-19 檢測試劑盒銷售額下降，LCI 銷售額下降 5.3%。在北美，不包括 PPE 產品和 COVID-19 檢測試劑盒的銷售，LCI 銷售額增長了 2.0%，並受到流感病例較上年減少的影響，導致床旁診斷測試和相關產品銷售下降。請記住，這是一個非常困難的比較，因為不包括 PPE 產品和 COVID-19 測試套件的 LCI 增長在 2022 年第二季度增長了 14.3%。

Regarding stock repurchases, we repurchased approximately 638,000 shares of common stock in the open market during the second quarter buying at an average price of $78.36 per share for a total of $50 million. At quarter end, we had approximately $365 million authorized and available for future stock repurchases.

關於股票回購，我們第二季度在公開市場回購了約638,000股普通股，平均價格為每股78.36美元，總計5000萬美元。截至季度末，我們已獲得約 3.65 億美元的授權，可用於未來的股票回購。

Turning to our balance sheet and cash flow. We continue to benefit from significant liquidity, providing our businesses with the financial flexibility and stability to execute on organic growth initiatives and strategic acquisitions while continuing to return capital to our stockholders. We further strengthened our balance sheet by recently extending the maturity date of our $1 billion revolving credit facility to July of 2028 and also closed on a new $750 million credit facility. Operating cash flow for the second quarter was $274 million compared with $157 million last year, primarily as a result of lowering inventory levels.

轉向我們的資產負債表和現金流。我們繼續受益於大量的流動性，為我們的企業提供財務靈活性和穩定性，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。我們最近將 10 億美元循環信貸安排的到期日延長至 2028 年 7 月，進一步強化了我們的資產負債表，並完成了一項新的 7.5 億美元信貸安排。第二季度運營現金流為 2.74 億美元，而去年同期為 1.57 億美元，這主要是由於庫存水平降低。

Restructuring expenses in the second quarter were $18 million or $0.10 per diluted share and were incurred as part of our previously disclosed restructuring initiative. These expenses mainly relate to severance benefits and costs related to exiting facilities. We now expect restructuring activities to extend through 2024.

第二季度的重組費用為 1800 萬美元，即稀釋後每股 0.10 美元，是我們之前披露的重組計劃的一部分。這些費用主要涉及遣散費和與現有設施相關的成本。我們現在預計重組活動將持續到 2024 年。

Let me conclude my remarks with our 2023 financial guidance. At this time, we are still unable to provide estimates for costs associated with integration and restructuring for 2023, therefore, we are not providing GAAP guidance. We are affirming our guidance for 2023 non-GAAP diluted EPS attributable to Henry Schein, Inc. of $5.18 per share to $5.35 per share, which is down 1% to 4% compared with our 2022 non-GAAP diluted EPS of $5.38, and includes the previously announced $0.05 to $0.10 dilution from 2023 acquisitions, which is consistent with our prior guidance and has been updated to include second quarter results and the impact of all acquisitions that have been announced so far.

讓我以 2023 年財務指引來結束我的發言。目前，我們仍然無法提供 2023 年整合和重組相關成本的估計，因此，我們不提供 GAAP 指導。我們確認亨利沙因公司 2023 年非 GAAP 稀釋後每股收益為 5.18 美元至 5.35 美元，比 2022 年非 GAAP 稀釋後每股收益 5.38 美元下降 1% 至 4%，其中包括之前宣布的2023 年收購稀釋了0.05 美元至0.10 美元，這與我們之前的指導一致，並且已更新為包括第二季度業績以及迄今為止已宣布的所有收購的影響。

The net impact of acquisition expenses and acquisition-related fair value adjustments, including the related remeasurement gain resulting from the purchase of a controlling interest of a previously held equity investment is expected to be insignificant for 2023 and has been included in guidance. We expect these acquisitions to contribute to earnings growth beginning in 2024.

收購費用和收購相關的公允價值調整（包括購買先前持有的股權投資的控股權益而產生的相關重新計量收益）的淨影響預計在2023年並不重大，並已納入指引。我們預計這些收購將為 2024 年開始的盈利增長做出貢獻。

It is important to recognize that we expect year-over-year growth in diluted EPS to be higher in the fourth quarter than in the third quarter of this year. Our guidance for 2023 assumes total sales growth of approximately 1% to 3% over 2022. As a reminder, our guidance reflects 1 less selling week in 2023 than 2022.

重要的是要認識到，我們預計第四季度稀釋後每股收益的同比增長將高於今年第三季度。我們對 2023 年的指導假設總銷售額比 2022 年增長約 1% 至 3%。需要提醒的是，我們的指導反映 2023 年的銷售週比 2022 年少 1 個。

Our sales growth reflects a larger decline in sales of COVID-19 test kits, which we now expect to decrease by approximately 70% to 80% from 2022 versus our previous guidance of a 65% to 70% decrease. Additionally, PPE product sales are expected to decrease about 25% to 30% versus our previous guidance of a decrease of 20% to 25%. Despite the expected lower PPE and COVID-19 test kit sales, the impact on 2023 non-GAAP diluted EPS from PPE products and COVID-19 test kits is still estimated to be $0.35 to $0.40 per share due to higher-than-anticipated gross margins on PPE sales relative to our original guidance.

我們的銷售額增長反映了COVID-19 檢測試劑盒銷售額的較大下降，我們現在預計該檢測試劑盒的銷售額將比2022 年下降約70% 至80%，而我們之前的指導是下降65 % 至70%。此外，PPE 產品銷售額預計將減少約 25% 至 30%，而我們之前的指導是減少 20% 至 25%。儘管預計PPE 和COVID-19 檢測試劑盒銷售額較低，但由於毛利率高於預期，PPE 產品和COVID-19 檢測試劑盒對2023 年非GAAP 稀釋後每股收益的影響預計仍為每股0.35美元至0.40 美元相對於我們最初的指導的個人防護用品銷售。

We are driving strong earnings momentum in our underlying core businesses, and we still 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. We continue to expect non-GAAP operating margin contraction of 10 to 15 basis points from the 2022 non-GAAP operating margin of 8.2%, and this was largely a result of lower PPE products and COVID-19 test kit sales and profits.

我們正在推動基礎核心業務強勁的盈利勢頭，並且在排除 PPE 產品和 COVID-19 測試套件銷售的貢獻時，我們仍然預計非 GAAP 營業收入將在高個位數到低兩位數範圍內增長。我們繼續預計非 GAAP 營業利潤率將較 2022 年 8.2% 的非 GAAP 營業利潤率收縮 10 至 15 個基點，這主要是由於 PPE 產品和 COVID-19 測試套件銷售額和利潤下降。

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 and as a result of higher interest rates and borrowing levels. We also expect an effective tax rate for the year in the 23% range, assuming no changes in tax legislation.

我們的指引反映了排除 PPE 產品和 COVID-19 測試套件銷售收入時的非 GAAP 營業利潤率擴張。我們的 2023 年指導包括比 2022 年更高的利息支出，這是由於利率和借款水平較高而導致的。假設稅收立法沒有變化，我們還預計今年的有效稅率為 23%。

Our guidance is for current continuing operations as well as acquisitions that have been announced and does not include the impact of future share repurchases and potential future acquisitions. Guidance also assumes that foreign currency exchange rates are generally consistent with current levels and that end markets remain consistent with current market conditions.

我們的指引適用於當前的持續運營以及已宣布的收購，不包括未來股票回購和潛在的未來收購的影響。指南還假設外幣匯率總體上與當前水平一致，並且終端市場與當前市場狀況保持一致。

With that, I'll now turn the call back to Stanley.

現在，我將把電話轉回給斯坦利。

Thank you, Ron. We're here to answer any questions, which investors may have. So operator?

謝謝你，羅恩。我們在這裡回答投資者可能提出的任何問題。那麼運營商呢？

(Operator Instructions) And the first question comes from the line of Elizabeth Anderson with Evercore ISI.

（操作員說明）第一個問題來自 Elizabeth Anderson 與 Evercore ISI 的線路。

I have maybe one shorter-term question and one longer-term question. In terms of the shorter-term question, obviously the fair value adjustment was new this quarter. And I just wanted to sort of make sure I understood. Was this something that you knew sort of last quarter when you updated your guidance? Or -- I'm just trying to understand whether the core guidance moved down ex that?

我可能有一個短期問題和一個長期問題。就短期問題而言，顯然本季度公允價值調整是新的。我只是想確保我理解了。您在上個季度更新指導意見時就知道了這一點嗎？或者——我只是想了解核心指導是否向下移動？

And then for my longer-term question, it's obviously very interesting with you adding all these new capabilities and geographies in. How do we think about, like, for example, for S.I.N. and like how long that might take or what your plans are in terms of bringing those implants into the United States? And then similarly, in terms of the medical, the ability to sort of push those sort of more broadly the new products across your portfolio?

然後對於我的長期問題，添加所有這些新功能和地理位置顯然非常有趣。我們如何考慮，例如，S.I.N.以及可能需要多長時間，或者您計劃將這些植入物引入美國？同樣，在醫療方面，是否有能力在您的產品組合中更廣泛地推廣這些新產品？

Certainly, Elizabeth, I'll take the first question and Stanley will respond to your second question. So the remeasurement gain was something we contemplated in our guidance. We didn't have a definite amount for it, just like we weren't sure how much our acquisition costs were going to be either. So ultimately, those -- as we've kind of demonstrated in that exhibit to the press release, those amounts, once we realized the higher expenses and we also realized the net remeasurement gain, have largely offset on a year-to-date basis. So yes, our guidance does contemplate the effect of those items. And Stanley, if you want to take the second question?

當然，伊麗莎白，我會回答第一個問題，斯坦利將回答你的第二個問題。因此，重新測量增益是我們在指導中考慮的內容。我們沒有具體的金額，就像我們也不確定我們的採購成本是多少一樣。因此，最終，正如我們在新聞稿中所展示的那樣，一旦我們意識到更高的費用並且我們也意識到了淨重新計量收益，這些金額在今年迄今為止的基礎上已在很大程度上抵消了。所以，是的，我們的指導確實考慮了這些項目的影響。斯坦利，你想回答第二個問題嗎？

Thank you. Elizabeth, the S.I.N. Implants, not the whole line but significantly important part of the portfolio already approved in the U.S. are selling to some extent and are being well received by our particularly DSO customers where we, in fact, by coincidence last week were able to land a pretty decent DSO that's interested in the S.I.N. Implant System. It puts us -- the whole S.I.N. transaction puts us in a very competitive position now because to some extent, in the U.S. and maybe some other markets, although Camlog -- BioHorizons Camlog is a premium product selling at a slightly lower price than some of the major brands, if not all of them, we still were missing a piece in our portfolio on the more economic side of implants.

謝謝。伊麗莎白，S.I.N.植入物（不是整個產品線，而是已在美國獲得批准的產品組合中非常重要的一部分）正在一定程度上銷售，並且受到我們特別是DSO 客戶的好評，事實上，我們上周巧合地獲得了相當不錯的價格對 S.I.N. 感興趣的 DSO植入系統。它讓我們——整個 S.I.N.交易使我們現在處於非常有競爭力的地位，因為在某種程度上，在美國和其他一些市場，儘管Camlog - BioHorizo​​ns Camlog 是一種優質產品，其銷售價格略低於一些主要品牌（如果不是全部）。但我們的投資組合中仍然缺少一塊更經濟的植入物。

And now I believe we're well positioned with S.I.N. And I believe in the next year or so, we will be able to also launch the Biotech line in the United States. Different market segments, but I think we're definitely in a very competitive position now and are actually starting to see some sales.

現在我相信我們已經在 S.I.N 中處於有利位置。我相信在未來一年左右的時間裡，我們也將能夠在美國推出生物技術產品線。不同的細分市場，但我認為我們現在絕對處於非常有競爭力的地位，並且實際上已經開始看到一些銷售。

Really helpful. And then for Shield as well, that's sort of a similar time line and you can sort of push that across your broader portfolio later this year? Or is that more of a -- we should think about that as more of a 24 type of occurrence?

真的很有幫助。對於 Shield 來說，這也是一個類似的時間線，你可以在今年晚些時候將其推廣到你更廣泛的投資組合中嗎？或者這更像是——我們應該將其視為 24 種類型的事件？

No. I think we acquired Prism about a year or so ago or 2 years ago, which was mostly an East Coast business with a relatively limited portfolio. Shield puts us into the West Coast with a broader portfolio. And Shield was missing the wound care offering that Prism had. So we believe we will create synergies relatively quickly. There are costs, of course, on the integration, which we've taken into account in our guidance, mostly onetime costs. But I think in '24, we should be able to start adding accretion in a nice way. This has really been an area that our customers and our big IDN customers have wanted us to perform. And we didn't undertake these kinds of services. We have one IDN in New York area that we service in the home care area, but we didn't really have the full capabilities. Between these 2 acquisitions and another small one which we hope to announce soon, we will have a pretty good offering in products for the home and will be a great extension to our physician and OG care business.

不。我認為我們大約在一年前或兩年前收購了 Prism，這主要是東海岸的業務，投資組合相對有限。 Shield 讓我們在西海岸擁有更廣泛的產品組合。 Shield 缺少 Prism 所提供的傷口護理服務。因此，我們相信我們將相對較快地創造協同效應。當然，集成是有成本的，我們在指南中已考慮到這些成本，其中大部分是一次性成本。但我認為在 24 年，我們應該能夠開始以一種很好的方式增加吸積。這確實是我們的客戶和大 IDN 客戶希望我們開展的領域。而我們不承擔此類服務。我們在紐約地區有一個 IDN，為家庭護理領域提供服務，但我們並沒有真正具備全部能力。在這兩項收購和我們希望很快宣布的另一項小型收購之間，我們將提供相當不錯的家庭產品，並將成為我們的醫生和婦科護理業務的一個很好的延伸。

And the next question comes from the line of Brandon Vazquez with William Blair.

下一個問題來自布蘭登·巴斯克斯和威廉·布萊爾的對話。

Maybe first on one high-level question just on the macro backdrop. Can you guys talk about where you're seeing some strengths and weaknesses in the environment today? I think maybe equipment looked pretty strong in the U.S., but maybe a little weaker international. And then consumables globally looked kind of stable low single digits. So curious how all these segments on the dental side are playing out from the macro side.

也許首先是關於宏觀背景的一個高層次問題。你們能談談您在當今環​​境中看到的一些優點和缺點嗎？我認為美國的設備可能看起來相當強大，但國際上的設備可能會弱一些。然後全球消耗品看起來穩定在低個位數。很好奇牙科方面的所有這些細分市場如何從宏觀方面發揮作用。

Yes. Thanks for that question. On the macro side in North America, I believe there is stability on the dental side. That's what our team believes in general. Consumables, people are -- patients are returning to the dental office if data is not perfect. But if you look at the latest ADA survey and some recent analyst reports and studies, it suggested that patient traffic picked up throughout the second quarter after the steady volumes in the first quarter of '23. And so we -- of course, we had some volatility in the first quarter of '22. And so it appears that patient flow is good. July, from our point of view, was a good month. Our eClaims data also suggests that, what I've just described, is backed up again by eClaims data from Henry Schein One.

是的。謝謝你提出這個問題。在北美的宏觀方面，我相信牙科方面是穩定的。這就是我們團隊的總體信念。人們是消耗品——如果數據不完美，患者就會回到牙科診所。但如果你看一下最新的 ADA 調查以及最近的一些分析師報告和研究，就會發現，繼 23 年第一季度的穩定數量之後，第二季度的患者流量有所增加。當然，我們在 22 年第一季度出現了一些波動。由此可見，患者流量情況良好。從我們的角度來看，七月是一個美好的月份。我們的電子索賠數據還表明，我剛才所描述的內容再次得到了來自 Henry Schein One 的電子索賠數據的支持。

If you peel on in a little bit further, at least from our point of view, implant sales continue to grow well in North America, same for endodontics. Our small aligner business is showing similar times of trends. If you look at international, it's slightly more tepid in international. It's hard to tell because we're now in the summer month that when -- the summer months when Europe is largely closed. Having said that, we did suffer in the second quarter because of the strikes in France.

如果你進一步了解，至少從我們的角度來看，種植體銷售在北美繼續良好增長，牙髓治療也是如此。我們的小型矯治器業務也呈現出類似的趨勢。如果你看看國際市場，就會發現國際市場稍微不溫不火。這很難說，因為我們現在正處於夏季，歐洲基本上處於關閉狀態。話雖如此，第二季度我們確實因為法國的罷工而受到了影響。

I would say Germany is okay. There we had pretty strong numbers in 2022 from a comp point of view because we had the trade in the second quarter of 2022. Patient traffic in Germany, which is our biggest market outside of the U.S., seems to be steady. There is somewhat of a staff shortage. But again, it's really hard to tell. This is the vacation month now in July, August. And it's very hard to tell exactly what is happening in Europe, Germany. But from our checks, it's pretty steady. We don't see much of a deterioration at all. In fact, it could be on the positive side.

我想說德國還好。從比較的角度來看，我們在 2022 年的數據相當強勁，因為我們在 2022 年第二季度進行了交易。德國是我們在美國以外最大的市場，其患者流量似乎很穩定。人員有些短缺。但話又說回來，這真的很難說。現在是七月、八月的假期。很難確切地說出歐洲、德國正在發生什麼。但從我們的檢查來看，它相當穩定。我們根本沒有看到任何惡化。事實上，這可能是積極的一面。

So generally, dental and medical are okay. On the medical side, a little bit more. We did have high comps last year, a 15% almost growth. So the medical is not going to, as we did caution at the time, present that kind of growth going forward. There is some trading to more generic products, specifically on the pharmaceutical side, doesn't impact the absolute dollar profits. But I think medical is at least with the ASC business, is back to where it was before COVID. And I think if you take out the unusual visits that we experienced in the first half of last year because of flu, I think medical is pretty stable as well. I think on the other hand, I believe our market share is growing.

所以一般來說，牙科和醫療都可以。在醫療方面，多一點。去年我們的業績確實很高，幾乎增長了 15%。因此，正如我們當時所警告的那樣，醫療不會呈現出這種未來的增長。有一些更通用產品的交易，特別是在製藥方面，不會影響絕對美元利潤。但我認為醫療至少在 ASC 業務中已經回到了新冠疫情之前的水平。我認為，如果除去去年上半年我們因流感而經歷的不尋常就診，我認為醫療狀況也相當穩定。我認為另一方面，我相信我們的市場份額正在增長。

On the specialty products side, again, I think we've covered this in our call. And at least from our point of view, we don't see any major impact from a units point of view. It is trading to lower-priced products, specifically from our DSO customers. But in general, our markets are stable and I think we are quite comfortable at this moment. Our backlog on equipment year-on-year in North America is pleasing, similar to where it was at the end of last quarter and on the international side is building up again to pre-COVID level. So I would say stability all around, that would be our view at this moment. Thank you.

在特色產品方面，我想我們已經在電話會議中討論了這一點。至少從我們的角度來看，從單位的角度來看，我們沒有看到任何重大影響。它正在交易低價產品，特別是來自我們的 DSO 客戶。但總的來說，我們的市場是穩定的，我認為我們目前感到很舒服。我們在北美的設備積壓情況同比令人滿意，與上季度末相似，而在國際方面，我們的設備積壓情況再次恢復到新冠疫情爆發前的水平。所以我想說的是，一切都保持穩定，這就是我們目前的觀點。謝謝。

Perfect. One -- and maybe one other quick one for Ron. We're trying to -- can you clarify, you may have given this already on the call, but just to be clear. Can you kind of talk about what EPS growth is in '23 and based on that guidance ex the PP&E, COVID? And part of why I'm asking is just to make sure we understand what underlying dynamics are as we're kind of looking at our 2024 models where maybe PP&E and COVID sales can kind of stabilize and we can return to some more normalized growth rates.

完美的。一份——也許是羅恩的另一份快速的。我們正在努力——您能否澄清一下，您可能已經在電話會議中給出了這一點，但只是為了澄清這一點。您能否談談 23 年 EPS 增長情況以及基於 PP&E、COVID 的指導情況？我問這個問題的部分原因只是為了確保我們了解潛在的動態是什麼，因為我們正在研究 2024 年的模型，其中 PP&E 和新冠肺炎的銷售可能會趨於穩定，我們可以恢復到更正常化的增長率。

Yes. Our full year guidance is still $5.18 to $5.35, and that includes an expected $0.35 to $0.40 headwind versus the prior year of impact on EPS from contributions from PPE sales and COVID-19 test kit sales. So those -- that remains unchanged from a guidance standpoint. While we've adjusted the some of our revenue assumptions on those products because of the better-than-expected margins on the PPE sales, we haven't had to adjust the $0.35 to $0.40 expected headwind that was built into our original guidance.

是的。我們的全年指導仍為 5.18 美元至 5.35 美元，其中包括與上一年 PPE 銷售和 COVID-19 測試套件銷售貢獻對 EPS 的影響相比，預期的 0.35 美元至 0.40 美元的逆風。因此，從指導的角度來看，這些保持不變。雖然由於 PPE 銷售利潤率好於預期，我們調整了對這些產品的一些收入假設，但我們不必調整我們最初指導中所包含的 0.35 美元至 0.40 美元的預期阻力。

And the next question comes from the line of Jeff Johnson with Baird.

下一個問題來自傑夫·約翰遜和貝爾德的對話。

Stanley, maybe I would like to dig a little deeper on your North American comments. Consumables, you described that market as fairly stable. I think that fits with a lot of our survey data as well. The consumables number though did come down to 2.5% on an organic basis ex PPE this quarter. Last quarter, it was 6.5%. Do you think that's just the comps from the Omicron stuff in the first quarter of last year that really helped inflate that first quarter number? Was there any change in the pricing dynamics? Any other factors kind of bridging from the 6.5% first quarter to the 2.5% consumables growth in this quarter?

斯坦利，也許我想更深入地了解您在北美的評論。消耗品，您形容該市場相當穩定。我認為這也符合我們的許多調查數據。不過，本季度消耗品數量在有機基礎上（不包括 PPE）確實下降至 2.5%。上季度為 6.5%。您是否認為這只是 Omicron 去年第一季度的數據才真正推動了第一季度數字的增長？定價動態有變化嗎？還有其他因素可以將第一季度 6.5% 的增長率與本季度 2.5% 的消費品增長率聯繫起來嗎？

Very good question, Jeff. Thanks for asking. I think you need to take the fourth quarter of 2022 and the first quarter of '23 and more or less average out because of the cut-offs. It leans a little bit higher in the first quarter, but it certainly was a 6.5% growth of apples-to-apples. I think we've covered that in the past. I would also suggest that inflation in the consumable world in the dental arena has muted. Maybe some products individually of certain brands have gone up. They're not necessarily sticky from the manufacturer pass-through. We're not -- the manufacturers are not necessarily able to hold all these consumable price increases.

非常好的問題，傑夫。謝謝你的詢問。我認為你需要考慮 2022 年第四季度和 23 年第一季度，並且由於截止日期而或多或少地平均。第一季度的增長率稍高一些，但同比增長確實是 6.5%。我想我們過去已經討論過了。我還認為牙科領域消費品領域的通貨膨脹已經減弱。也許某些品牌的某些產品個別上漲了。它們不一定是由製造商傳遞而來的粘性。我們不是——製造商不一定能夠承受所有這些消費品價格的上漲。

At the same time, there is a movement towards corporate brand/generics. And some of the smaller brands are doing well, where some of those manufacturers are prepared to keep prices or even reduce prices. So it's very hard on a 1-quarter basis to give you the perfect measurement of mix. But I would take into account the cut-offs for '22 for the fourth quarter, and I would take into account the fact that generally there's been some deflation in merchandise prices. And I would say this is particularly coming from the larger DSOs and the midsized DSOs who are, to date, a lot more educated consumers than in the past. This is not really impacting our margin, per se, the general mix of our margin to DSOs. So there's a lot of nuance in what I just said. Let's see what happens in the third and fourth quarter. But my sense is the trend that I just described is not going to change much.

與此同時，出現了企業品牌/通用化的趨勢。一些較小的品牌表現良好，其中一些製造商準備維持價格甚至降價。因此，很難在 1 季度的基礎上為您提供完美的混合衡量結果。但我會考慮到 22 年第四季度的截止日期，並且我會考慮到商品價格普遍出現一些通貨緊縮的事實。我想說，這尤其來自大型 DSO 和中型 DSO，迄今為止，這些消費者比過去受過更多教育。這並沒有真正影響我們的利潤率，即我們與 DSO 的利潤率的總體組合。所以我剛才所說的有很多細微差別。讓我們看看第三季度和第四季度會發生什麼。但我的感覺是我剛才描述的趨勢不會發生太大變化。

All right. That was going to be my follow-up, Stanley. So is there more deflation to come? Or have we kind of taken that step down and you think we can hold steady from there? And then, Ron, just a follow-up on your -- on the nonrecurring below the line -- well, I think it was above the line actually this quarter, on the onetime gain. The 5% to 10% -- $0.10, I'm sorry, of dilution is unchanged that is on a gross amount. You're talking about a net in impact from acquisition activity being close to flat this year. If you had provided that net guidance last quarter, would that have also been flat? So essentially, you're not changing your gross or your net acquisition guidance for the year? Just wanted to understand that.

好的。這將是我的後續行動，斯坦利。那麼還會有更多的通貨緊縮嗎？或者我們是否已經邁出了這一步，而您認為我們可以在此基礎上保持穩定？然後，羅恩，只是您的後續行動 - 關於線下的非經常性收益 - 嗯，我認為本季度實際上是在一次性收益之上。抱歉，5% 到 10%——0.10 美元的稀釋比例在總量上沒有變化。您談論的是今年收購活動的淨影響接近持平。如果您在上個季度提供了淨指導，那麼該指導也會持平嗎？那麼本質上，您不會改變今年的總收購量或淨收購量指導嗎？只是想了解這一點。

Jeff, it's hard to tell, as I maybe I wasn't clear, exactly what the impact is going to be of deflation, whether it's price reduction on specific branded products or switch to generic or other manufacturers for specific kinds of products. Yes, I doubt, we're in more than 100, 150 basis point swing, maybe 200. But I'm not sure it's much different to that. So I don't think inflation is going to be significant in the dental consumable business. I think it may go down slightly to deflation, but we're in that range. Units are holding more or less steady.

傑夫，很難說，因為我可能不清楚，通貨緊縮到底會產生什麼影響，無論是特定品牌產品的價格下降，還是轉向通用或其他製造商生產特定種類的產品。是的，我懷疑，我們的波動幅度超過 100、150 個基點，也許是 200 個基點。但我不確定這有多大不同。因此，我認為通貨膨脹不會對牙科耗材業務產生重大影響。我認為通貨緊縮可能會略有下降，但我們處於這個範圍內。各單位或多或少保持穩定。

Of course, from our point of view, we're growing our specialty business. Although the business may be growing, that doesn't have an impact really in a material way on our total sales of dental consumables because it's not material in the context of the whole consumable offering. Having said that, specialty products are impacting our margin in a positive way, and so our corporate brands and some of the smaller manufacturers.

當然，從我們的角度來看，我們正在發展我們的專業業務。儘管業務可能在增長，但這並沒有對我們的牙科耗材總銷售額產生實質性影響，因為它在整個耗材產品的背景下並不重要。話雖如此，特種產品正在以積極的方式影響我們的利潤，我們的企業品牌和一些較小的製造商也是如此。

And Jeff, to answer the second part of your question, the $0.05 to $0.10 that we referred to after the first quarter when we amended guidance was specific reference to the expected dilutive effect during the year from Biotech. The -- we're holding that $0.05 to $0.10, but it now is for all the acquisitions that we have announced so far this year. Apart from that, we have higher-than-expected acquisition expenses, which are largely offset by the remeasurement gain that we recorded in the second quarter as well. So we kind of have set those aside, and that was the purpose of Exhibit C to the press release, so people could see the components of that. And we're holding to the $0.05 to $0.10 of dilution, but now it captures all of the acquisitions that we have announced today.

傑夫，回答你問題的第二部分，我們在修改指導意見時提到的第一季度後的 0.05 美元到 0.10 美元是具體參考生物技術公司今年預期的稀釋效應。我們持有 0.05 至 0.10 美元的價格，但現在是針對我們今年迄今為止宣布的所有收購。除此之外，我們的收購費用高於預期，這在很大程度上被我們在第二季度記錄的重新計量收益所抵消。所以我們把這些放在一邊，這就是新聞稿中附件 C 的目的，這樣人們就可以看到其中的組成部分。我們堅持 0.05 至 0.10 美元的稀釋，但現在它涵蓋了我們今天宣布的所有收購。

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

下一個問題來自賈森·貝德納 (Jason Bednar) 和派珀·桑德勒 (Piper Sandler) 的台詞。

I'll actually follow up there on kind of the track that Jeff was going down. But maybe -- so, Ron, just maybe first starting on gross margins. I mean, those are still hanging around multiyear highs despite what I think are maybe some inventory step-up costs from the biotech dental transaction. So could you quantify how much inventory step-up may have hit in the quarter in terms of hitting that gross margin and earnings? And then with absorbing the dilutive S.I.N. transaction and your reaffirmed guidance today, can you give us some detail on how to think about what the dilution is from that deal that you're absorbing, even rough numbers? Is it a few pennies, a nickel, a dime? Anything there would be helpful.

我實際上會沿著傑夫正在走的路線進行追踪。但也許——所以，羅恩，也許首先從毛利率開始。我的意思是，儘管我認為生物技術牙科交易可能會增加一些庫存成本，但這些仍徘徊在多年高點附近。那麼，您能否量化本季度庫存增加對毛利率和收益的影響？然後吸收稀釋的 S.I.N.交易和您今天重申的指導，您能否向我們提供一些詳細信息，說明如何考慮您正在吸收的交易的稀釋程度，即使是粗略的數字？是幾分錢、五分錢、一毛錢嗎？那裡的任何事情都會有幫助。

I'll start with the quantifiable one first. The step-up charge that we have, and it will be disclosed in the 10-Q as well. In the second quarter for Biotech was $2 million. So not a real significant effect on gross margin. In terms of S.I.N., it is absorbed within that $0.05 to $0.10. There's also going to be a step-up on S.I.N., but they don't turn their inventory as quickly, so we don't expect it to quarter-to-quarter have as dramatic of an effect. So S.I.N., without kind of disclosing the modeled dilution on that, I can tell you that it is absorbed within that $0.05 to $0.10.

我首先從可量化的開始。我們擁有的升壓費用也將在 10-Q 中披露。生物技術公司第二季度的銷售額為 200 萬美元。因此對毛利率並沒有真正的顯著影響。就 S.I.N. 而言，它被吸收在 0.05 美元到 0.10 美元之間。 S.I.N. 也會有所加強，但他們的庫存周轉速度不會那麼快，所以我們預計它不會在每個季度產生如此巨大的影響。因此，S.I.N.，在不透露模型稀釋的情況下，我可以告訴你，它被吸收在 0.05 美元到 0.10 美元之間。

Okay. And then on the $2 million, I guess, just a quick follow-up there. Is that $2 million steady as we go forward for the next quarter or 2 for 3Q and 4Q? Or does that need to move higher just as we think about how to model gross margins for the back half of the year? And...

好的。然後關於 200 萬美元，我想，只是一個快速的後續行動。當我們進入下一個季度時，200 萬美元是否穩定？或者第三季度和第四季度的 200 萬美元是否穩定？或者當我們考慮如何為下半年的毛利率建模時，是否需要走高？和...

I'm sorry, Biotech, just to answer you quickly. Biotech churns our inventory about twice a year. So we have about another quarter of that inventory step up left. So it will be another $2 million in Q3 and then we'll be able to move on from that.

很抱歉，Biotech，我只是想盡快回答您。生物技術公司每年大約會攪動我們的庫存兩次。因此，我們還有大約四分之一的庫存增加。因此，第三季度將再增加 200 萬美元，然後我們就可以繼續前進。

Got it. Perfect. And then as we think about the composition of the equipment backlog, you mentioned it's holding steady. But it sounds like maybe that's starting to shift back towards high-tech equipment. Could you drill down into what areas of high tech you're seeing that recovery leading? I would assume it's mostly in iOS. But just wondering if you're starting to see any better results on the digital imaging or anything on the milling or 3D printing side that's maybe influencing some of your comments today?

知道了。完美的。然後，當我們考慮設備積壓的構成時，您提到它保持穩定。但聽起來也許這開始轉向高科技設備。您能否深入了解您認為複蘇將引領哪些高科技領域？我認為主要是在 iOS 中。但只是想知道您是否開始在數字成像或銑削或 3D 打印方面看到任何更好的結果，這可能會影響您今天的一些評論？

Yes. We're very pleased with the equipment growth we had. I mean, North America equipment growth on an LCI basis of 9.8%, especially in this environment on some of the high-tech equipment. Traditional remains very high at -- our LCI in North America on traditional equipment was growth of 14.6%. And that was with virtually no movement in the backlog. It's almost identical from the beginning of the quarter to the end of the quarter. So it's very indicative of ongoing strong demand for traditional equipment. On the high-tech side, we still have some headwinds on scanners but it's price related. We're getting good values on scanners, but the revenues are down, some on the scanners. We do have -- I think they're down 12.1% on -- well, I'm sorry, digital restoration sales were down 12.1%, but the scanner revenue is still down 40% for us year-over-year, and that's really a pricing matter.

是的。我們對設備的增長感到非常滿意。我的意思是，北美設備在 LCI 的基礎上增長了 9.8%，特別是在這種環境下的一些高科技設備。傳統設備仍然非常高——我們在北美傳統設備的 LCI 增長了 14.6%。而且積壓訂單幾乎沒有變化。從季度初到季度末幾乎是相同的。因此，這非常表明對傳統設備的持續強勁需求。在高科技方面，我們在掃描儀方面仍然存在一些阻力，但這與價格有關。我們在掃描儀上獲得了良好的價值，但收入卻下降了，其中一些來自掃描儀。我們確實——我認為他們下降了 12.1%——好吧，我很抱歉，數字修復銷售額下降了 12.1%，但我們的掃描儀收入仍然同比下降了 40%，這就是確實是定價問題。

Having said that, on high tech equipment, we did achieve very -- a little bit of growth. It's single digit, low single-digit growth, but we did get some high-tech growth, which we're pleased with. And that's coming from some growth really kind of across the board. You mentioned a lot of the categories, some growth in mills, some growth in 3D printing. Those are all coming off relatively low basis, but nevertheless they're providing us with some growth, and that's helping the category.

話雖如此，在高科技設備上，我們確實取得了非常小的增長。這是個位數的低個位數增長，但我們確實取得了一些高科技增長，我們對此感到滿意。這來自於全面的增長。您提到了很多類別，一些是工廠的增長，一些是 3D 打印的增長。這些都是相對較低的基礎，但儘管如此，它們為我們提供了一些增長，這有助於該類別。

And the next question comes from the line of Jon Block with Stifel.

下一個問題來自 Jon Block 和 Stifel 的對話。

Maybe just the first question on dental specialties. I think the reported was up 15.7%. I don't know if I missed it, but do you have a precise internal number for that division? And then just to go a little bit further down the road, how implant growth shook out within whatever that internal number was? Was it above overall internal below? And just maybe your thoughts on ongoing share gains -- or implant share gains, pardon me, now that you've got some of those investments in the more robust implant portfolio to work with going forward. And then I'll ask a shorter follow-up.

也許只是關於牙科專業的第一個問題。我認為報告上漲了 15.7%。我不知道我是否錯過了，但是你有該部門的準確內部號碼嗎？然後，再進一步了解一下，無論內部數字是多少，植入物的生長是如何變化的？是高於總體內部還是低於？也許您對持續的份額收益或植入份額收益的想法，請原諒我，既然您已經在更強大的植入產品組合中進行了一些投資，可以繼續前進。然後我會問一個更短的後續問題。

Certainly, I think with reference to our specialty growth, I mean, we've kind of elected to stick to total sales growth in order to be consistent with the message we had around specialties in our Investor Day. So we're really -- we're focusing on total sales growth as opposed to LCI sales growth. We think it's more reflective of our strategy for that portfolio of products. We remain very bullish on implant sales. I think that we've gotten -- we had growth in North America as well as internationally on implant systems. Endodontic sales on the specialty side remain very strong for us, both inside and outside the U.S. Stanley, anything you wanted to add on the specialty side?

當然，我認為就我們的專業增長而言，我的意思是，我們選擇堅持總銷售增長，以便與我們在投資者日關於專業的信息保持一致。因此，我們確實專注於總銷售增長，而不是 LCI 銷售增長。我們認為這更能反映我們的產品組合戰略。我們仍然非常看好植入物銷售。我認為我們已經在北美和國際上在植入系統方面取得了增長。無論是在美國國內還是國外，我們在專業方面的牙髓銷售仍然非常強勁。斯坦利，您想在專業方面添加什麼嗎？

Yes, Jon, that was -- thank you for that question. If you look at just North America, sales of our BioHorizons Camlog premium implants, remember that it's a premium implant at a slightly lower price than perhaps our competitors in the premium area, delivered mid-single-digit growth. And that's a sequential improvement versus the first quarter. Internationally, implant demand remains good. Remember, we have a very small business in China.

是的，喬恩，那就是——謝謝你提出這個問題。如果您僅關注北美地區我們的BioHorizo​​ns Camlog 優質植入物的銷售情況，請記住，這是一款優質植入物，其價格可能比我們在高端領域的競爭對手略低，並實現了中個位數的增長。與第一季度相比，這是一個連續的改善。國際上，種植體需求依然良好。請記住，我們在中國的業務非常小。

Generally, demand for dental implants, again, favored the low-price part. Although I must say, for BioHorizons Camlog, we did very well in our biggest market, which is Germany, Austria and Switzerland. But Medentis did very well also in Germany, which is on the lower end. So overall, we're quite comfortable, actually very excited about our growth in the implant business. Hard to tell you how we're doing compared to others. The data from the association that reports premium implant sales is not yet available for the second quarter. But my sense is we have gained market share, both in terms of units and in terms of euros, dollars. So as it relates to the competitiveness of our product line, Elizabeth asked a question earlier on, we were missing a piece in the lower end of the mix in North America. I believe S.I.N. will enable us to be highly competitive in this area, specifically with DSOs, large ones and midsized ones.

一般來說，對牙種植體的需求再次青睞低價產品。儘管我必須說，對於 BioHorizo​​ns Camlog 來說，我們在最大的市場（德國、奧地利和瑞士）做得非常好。但梅登蒂斯在處於低端的德國也表現出色。總的來說，我們對種植體業務的增長感到非常滿意，實際上非常興奮。很難告訴你我們與其他人相比表現如何。該協會報告的第二季度優質植入物銷售數據尚未公佈。但我的感覺是，我們已經獲得了市場份額，無論是按單位還是按歐元、美元計算。因此，由於這關係到我們產品線的競爭力，伊麗莎白早些時候提出了一個問題，我們在北美的低端產品中遺漏了一塊。我相信 S.I.N.將使我們在這一領域具有高度競爭力，特別是與大型和中型 DSO 相比。

I just want to go back to the ID -- the sensor DI question earlier on. I think we reported this time last year that our sales that include a large sale of DI equipment to substantial DSO. And so if you take that out, the units are more or less returning to where they were, and there still is some deflation, but not a significant amount. And on the DI side, it's not really deflation relative to a particular brand, but there are lower-priced brands that we're selling more of relative to the larger brands.

我只想回到 ID——之前的傳感器 DI 問題。我想我們去年這個時候報告說，我們的銷售包括向大量 DSO 出售大量 DI 設備。因此，如果你把它去掉，這些單位或多或少會回到原來的位置，並且仍然存在一些通貨緊縮，但不是很大。在 DI 方面，相對於某個特定品牌來說，這並不是真正的通貨緊縮，而是相對於較大品牌，我們銷售的價格較低的品牌更多。

That was helpful. And maybe I'll try to ask a tight second question. Just for medical, ex PPE and COVID, it was up 2%. And I know flu was a year-over-year headwind. But just the past couple of quarters, that's come up a little shy versus our expectations. I know you talked about the long-term thoughts at the Analyst Day. But in the more intermediate term, is there a way that we should think about that division, maybe with the balance of '23? You're still standing on a couple of comps maybe, but maybe just talk to us on how you see that unfolding for the balance of '23, again ex PPE, COVID.

這很有幫助。也許我會嘗試問一個緊迫的第二個問題。僅醫療（個人防護裝備和新冠疫情）就上漲了 2%。我知道流感是年復一年的逆風。但就在過去的幾個季度，這一情況與我們的預期相比有點遜色。我知道您在分析師日談到了長期想法。但從更中期的角度來看，我們是否應該考慮這種劃分，也許是“23”的平衡？也許你仍然站在幾個比較的立場上，但也許只是和我們談談你如何看待23年餘下的時間的發展，同樣是前個人防護裝備、新冠病毒。

Yes. It's very hard to give you specifics. I think we're doing well in terms of units with our existing customers. We are gaining customers. But the whole area of visits unrelated to steady visits relative to OG centers and normal type medical visits is hard to gauge because of the impact of the seasonality of flu. And we sell quite a bit of flu-related products, be it the test or the related products that go with the test. At the moment, it seems pretty steady. It's -- I wouldn't want to say this, really, I wouldn't want you to view this in the wrong way, but COVID is growing a little bit. So people are going more to the physician offices to check things out. So July was a lot better. But you can't draw conclusions.

是的。很難給你具體的信息。我認為我們在與現有客戶的合作方面做得很好。我們正在贏得客戶。但由於流感季節性的影響，與 OG 中心穩定就診和正常類型醫療就診無關的整個就診範圍很難衡量。我們銷售大量與流感相關的產品，無論是測試還是與測試相關的產品。目前來看，似乎還算穩定。我不想這麼說，真的，我不想讓你以錯誤的方式看待這件事，但新冠病毒正在一點點增長。因此，人們更多地去醫生辦公室檢查。所以七月的情況好多了。但你不能下結論。

There was a lull in equipment sales. We had a lot of good inquiries in July. But it's hard to give you a specific number. The impact of generic pharmaceuticals is quite a bit on the injectable side, not the vaccine side. We don't sell many tablets and capsules, not our business. So overall, it's a good business. And whether it's 3% or 5% or 6%, I don't think that impacts the overall profitability in a meaningful way. There are so many puts and takes in our medical business. But we feel very good about our medical business and continue to believe that on a units basis, we're growing market share.

設備銷售停滯不前。七月份我們收到了很多很好的詢問。但很難給你一個具體的數字。仿製藥的影響相當大的是注射劑方面，而不是疫苗方面。我們不賣很多藥片和膠囊，這不是我們的生意。所以總的來說，這是一門好生意。無論是 3%、5% 還是 6%，我認為這不會對整體盈利能力產生有意義的影響。我們的醫療業務中有很多投入和投入。但我們對我們的醫療業務感覺非常好，並繼續相信，以單位為基礎，我們的市場份額正在增長。

We have time for one last question coming from the line of A.J. Rice with Credit Suisse.

我們有時間回答來自 A.J. 的最後一個問題。瑞信的大米。

Our final question will come from the line of Nathan Rich with Goldman Sachs.

我們的最後一個問題將來自高盛的內森·里奇（Nathan Rich）。

I'll ask both upfront. First, I wanted to go back to the commentary around traditional equipment and the equipment backlog in North America stabilizing. It has obviously been coming down, I think, as we cycle through some of the supply constraints. I'd just be curious on the outlook for demand, though, how you're thinking about that over the balance of the year and what you're seeing with respect to kind of practice formation and remodels just in the current environment that we're in. And then, Ron, maybe a clarification on the margins. Any commentary on the margin outlook between 3Q and 4Q, I guess, especially as it relates to potential timing of acquisition and expenses between those 2 quarters?

我會提前問清楚。首先，我想回到關於傳統設備和北美設備積壓穩定的評論。我認為，隨著我們經歷一些供應限制，它顯然已經在下降。不過，我只是對需求前景感到好奇，您在今年餘下的時間裡如何看待這一問題，以及您在我們當前環境下的實踐形成和重塑方面看到了什麼？然後，羅恩，也許是對邊緣的澄清。我想，對第三季度和第四季度之間的利潤率前景有何評論，特別是因為它與這兩個季度之間的潛在收購時間和費用有關？

On the equipment, I believe that demand is quite good and steady. Some of the larger DSOs continue to invest. There may have been a bit of a pause a few months ago when some of these DSOs, perhaps highly leveraged, were looking to determine whether they really should invest or not. But there is a demand for dental care. And I believe that our bigger DSOs are growing. One or two of them had some operational issues, which I think are largely behind them. But I believe that they are investing. I'm talking about the largest size. And the midsize are growing as well, smaller practitioners not so much. But overall, I would say the demand for traditional equipment is there. The digital side, the DI scanners are growing in terms of units. Yes, there's, to some extent, movement to the lower-priced units, but not discounting of any particular unit in a material way.

在設備方面，我認為需求是相當好的和穩定的。一些較大的 DSO 繼續投資。幾個月前，當其中一些可能槓桿率較高的 DSO 正在尋求確定是否真的應該投資時，可能會出現一些停頓。但對牙科護理有需求。我相信我們更大的 DSO 正在增長。其中一兩個存在一些運營問題，我認為這很大程度上是其背後的原因。但我相信他們正在投資。我說的是最大的尺寸。中型企業也在增長，而小型企業則沒有那麼多。但總的來說，我認為對傳統設備的需求是存在的。在數字方面，DI 掃描儀的數量正在不斷增長。是的，在某種程度上，價格較低的單位有所變動，但沒有對任何特定單位進行實質性折扣。

Just to switch, as more people look at this area, very important to realize the high comp we had in one area, in the DI area last year, we disclosed that on our call. And the mills, I would say, are steady. There's a demand. It's not as hot as it was, sort of a trade-up, that helped a bit. And 3D printing is quite hot, tick up back a little bit. If you look at our numbers, in general, we're a big player on the dental lab side. There is a movement away from consumables into digitalization. So that movement is also impacting, to some extent, the sales of consumables and resulting in an increase in equipment.

只是為了切換，隨著越來越多的人關注這個領域，實現我們在一個領域（去年在 DI 領域）的高競爭力非常重要，我們在電話會議上披露了這一點。我想說的是，工廠很穩定。有需求。現在不像以前那麼熱了，有點像是一種交易，這有點幫助。而且3D打印相當火爆，稍微回升一下。如果你看看我們的數據，總的來說，我們是牙科實驗室方面的重要參與者。人們正在從消耗品轉向數字化。因此，這種變動也在一定程度上影響了消耗品的銷售並導致設備的增加。

But overall, I think our equipment backlog in the United States, which is pretty similar to what it was at the end of last quarter, I think, is indicative of the desire of dentists to invest in their practices to make the practices more efficient and provide better digital outcomes. A nice way to even look at that is -- another way is to look at the investment in AI. We have -- and it relates primarily to our Henry Schein One software where we have, I believe, the most integrated solution, embedded AI in our software. And the units of those are growing there. This is all tied to the desire of practitioners to invest in their practice.

但總的來說，我認為我們在美國的設備積壓情況與上季度末非常相似，我認為這表明牙醫希望投資於他們的實踐，以提高實踐效率和效率。提供更好的數字成果。看待這個問題的一個好方法是——另一種方法是看待人工智能的投資。我們擁有——它主要與我們的 Henry Schein One 軟件有關，我相信我們擁有最集成的解決方案，即在我們的軟件中嵌入人工智能。這些單位正在不斷增長。這一切都與從業者投資於他們的實踐的願望有關。

So I think the market is stable to growing. And international is quite complex and different issues in different countries. But in the countries where there is large government support like Germany, from our point of view, it's stable, although there is a shortage of dentists, and hopefully, France will sort itself out after Labor Day. The rest of the markets are stable. There's some ups in Australia because of a little bit of incentives for this quarter. Brazil is pretty stable. And overall, Canada is stable. So I would say the dental markets are pretty stable, solid overall.

所以我認為市場是穩定增長的。國際問題相當複雜，不同國家的問題也不同。但在像德國這樣有政府大力支持的國家，從我們的角度來看，儘管牙醫短缺，但情況是穩定的，希望法國能在勞動節後解決問題。其餘市場穩定。由於本季度的一些激勵措施，澳大利亞的銷量有所上升。巴西的情況相當穩定。總體而言，加拿大是穩定的。所以我想說牙科市場總體上相當穩定、穩固。

And Nathan, just one thing to add on the backlog. The -- like I mentioned before, our backlog in North America has stayed pretty constant over the course of the quarter, and we saw a very good sales growth. I would -- quite frankly, I would like that backlog come down some, not just for the revenue lift it would give us, but it's just better for our customers to reduce the timing of that backlog so they get their equipment more quickly and it increases capacity in the end market, quite frankly, in those situations where that backlog is for equipment that is new to the business as opposed to replacement. So we would like for that backlog to come down. But right now, we still -- in North America, we're experiencing a fairly consistent backlog.

內森（Nathan），只是在積壓工作中添加一件事。正如我之前提到的，我們在北美的積壓訂單在本季度保持相當穩定，並且我們看到了非常好的銷售增長。坦率地說，我希望積壓訂單能減少一些，不僅僅是因為它會給我們帶來收入提升，而且對我們的客戶來說，減少積壓訂單的時間會更好，這樣他們就能更快地獲得設備，並且坦率地說，在積壓的是新設備而不是更換設備的情況下，增加了終端市場的容量。因此，我們希望積壓的訂單能夠減少。但目前，在北美，我們仍然遇到相當一致的積壓情況。

In terms of your question on Q3, Q4 margins, I do think that especially at a gross margin level, we can continue at the levels we're at. I think that it's indicative of the growing importance of the dental specialty products in our overall portfolio as well as the growth in our technology business. And I think we can continue with that as we get into the back half of the year.

關於您關於第三季度、第四季度利潤率的問題，我確實認為，特別是在毛利率水平上，我們可以繼續保持目前的水平。我認為這表明牙科專業產品在我們整體產品組合中的重要性日益增加，以及我們技術業務的增長。我認為進入下半年後我們可以繼續這樣做。

Of course, there's always -- it's a broad portfolio. There are things that can impact that. For example, Q4 tends to be a heavier quarter for equipment sales than other quarters, and those sales tend to be at slightly lower margins than what our overall margin is right now. So that can bring down margins a little bit. But in exchange for the additional sales, we'll clearly take that. So I don't know -- I think that that's -- my general expectation is we'll be able to continue with the margins that we've seen in the first half of the year into the second half of the year.

當然，總有一個廣泛的產品組合。有些事情會影響這一點。例如，第四季度的設備銷售往往比其他季度更繁忙，而且這些銷售的利潤率往往略低於我們目前的總體利潤率。因此，這可能會稍微降低利潤率。但作為額外銷售的交換，我們顯然會接受。所以我不知道——我認為——我的總體期望是我們將能夠繼續保持今年上半年到下半年的利潤率。

So thank you. I know we've gone over, 8 minutes over a lot of time. Thank you, everyone, for calling in. Again, we're very pleased with the progress we're making in the business, both the core business, our specialty businesses, our software businesses. The markets are steady. Lots of ins and outs, subtle points. But generally, we're comfortable with where we are today. We've reaffirmed guidance. Sorry about the complexity on PPE and tests and the acquisitions, expenses and related costs and income generated in that area. But this will -- I think we will try to make it clearer for our investors to make it as simple as possible for the remainder of the year. But I think next year should be a relatively clean year. And hopefully, you'll see that we -- our confidence in the business is justified.

所以謝謝。我知道我們已經過去了，8 分鐘已經過去了很多時間。謝謝大家的來電。我們再次對我們在業務方面取得的進展感到非常滿意，無論是核心業務、我們的專業業務還是我們的軟件業務。市場穩定。很多來龍去脈，微妙之處。但總的來說，我們對今天的處境感到滿意。我們重申了指導意見。對於個人防護裝備和測試的複雜性以及該領域產生的採購、費用以及相關成本和收入，我們深表歉意。但這將 - 我認為我們將盡力讓我們的投資者更加清楚，在今年剩餘時間內使其盡可能簡單。但我認為明年應該是相對乾淨的一年。希望您會看到我們對業務的信心是有道理的。

So thank you all for calling in, of course, Graham and Ron are available to speak with investors over the next days. And thank you for calling in. We remain confident in our team. Thank you to the team for the tremendous work that has been undertaken as we come out of the other side of COVID and implement our strategic plan. So thank you all, and have a great remainder of summer. Thank you very much.

當然，感謝大家的來電，格雷厄姆和羅恩可以在接下來的幾天與投資者交談。感謝您的來電。我們對我們的團隊仍然充滿信心。感謝團隊在我們走出新冠疫情並實施我們的戰略計劃時所做的大量工作。謝謝大家，祝你度過愉快的夏天。非常感謝。

And ladies and gentlemen, that does conclude today's teleconference. You may disconnect your lines at this time. Thank you for your participation, and have a great day.

女士們、先生們，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。