漢瑞祥 (HSIC) 2023 Q3 法說會逐字稿

Good morning, ladies and gentlemen, and welcome to Henry Schein's Third Quarter 2023 Earnings Conference Call.

早安，女士們、先生們，歡迎參加 Henry Schein 2023 年第三季財報電話會議。

(Operator Instructions)

（操作員說明）

As a reminder, this call is being recorded.

提醒一下，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 Graham Stanley，他是 Henry Schein 的投資者關係副總裁兼策略財務專案長。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 third quarter 2023. With me on today's call 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 年第三季度的財務業績。今天與我一起參加電話會議的是 Henry Schein 董事會主席兼首席執行官 Stanley Bergman；以及高級副總裁兼財務長 Ron South。

Before we begin, I'd like to state that certain comments made during this call will include information that is 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.

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資訊。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有重大差異。

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.

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。

In addition, all comments about the markets we serve, including end market growth rates and market share, are based on the company's internal analysis and estimates.

此外，有關我們服務的市場的所有評論，包括終端市場成長率和市場份額，均基於公司內部分析和估計。

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表現。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 Financials 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 指標之間的調整表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「補充資訊」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 the live broadcast, November 13, 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.

本次電話會議的內容包含時間敏感信息，僅截至直播之日（2023 年 11 月 13 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。

And with that, I'd like to turn the call over to Stanley Bergman.

說到這裡，我想把電話轉給史丹利·伯格曼。

Thank you, Graham. Good morning, everyone, and thank you for joining us. Before reviewing our third quarter performance, I'd like to update investors on the cybersecurity incident that we discovered on Saturday, October 14, primarily affecting some of our distribution businesses. That morning, we initiated our business continuity plan when we promptly took precautionary actions, including taking certain systems off-line and other steps intended to contain the incident, which led to temporary disruption of some of our operations.

謝謝你，格雷厄姆。大家早安，感謝您加入我們。在回顧我們第三季的業績之前，我想向投資者通報我們在 10 月 14 日星期六發現的網路安全事件的最新情況，該事件主要影響我們的一些分銷業務。那天早上，我們啟動了業務連續性計劃，並迅速採取了預防措施，包括使某些系統離線以及旨在遏制事件的其他措施，這導致我們的一些業務暫時中斷。

The following week, our distribution centers were processing orders with temporary interim processes and were generally delivering orders to customers within 1 to 2 business days. In accordance with our business continuity plan, we activated a previously identified team of leading cybersecurity experts to assist in the investigation and recovery of the systems and to advise us through this recovery process. Over the past weeks, we have worked to create a clean network in a controlled manner from the backup data we maintained.

接下來的一周，我們的配送中心透過臨時臨時流程處理訂單，通常會在 1 到 2 個工作天內將訂單交付給客戶。根據我們的業務連續性計劃，我們啟動了先前確定的領先網路安全專家團隊，協助調查和復原系統，並在整個復原過程中為我們提供建議。在過去的幾周里，我們一直致力於透過我們維護的備份資料以受控方式創建一個乾淨的網路。

Our distribution businesses are now operational and we are initiating our e-commerce platform early this week, and we're indeed hopeful that the website will come up tomorrow morning. We've also made significant progress resuming the high levels of service our customers (inaudible) expect from us. Over the last week, orders from our distribution businesses were approximately 85% to 90% of what they were pre-incident.

我們的分銷業務現已投入運營，我們將於本周初啟動我們的電子商務平台，我們確實希望該網站明天早上就能上線。我們也在恢復客戶（聽不清楚）期望我們提供的高水準服務方面取得了重大進展。上週，我們分銷業務的訂單約為事件發生前的 85% 至 90%。

We expect orders to increase with the reactivation of our e-commerce platform. Of course, our field sales consultants and telesales representatives have deep relationships with our customers, and our complementary software and other value-added services bring value that we believe continues to make us the best choice for our customers in the areas of services we provide.

我們預計隨著電子商務平台的重新啟動，訂單將會增加。當然，我們的現場銷售顧問和電話銷售代表與客戶有著深厚的關係，我們的補充軟體和其他增值服務帶來的價值，我們相信這些價值將繼續使我們成為客戶在我們提供的服務領域的最佳選擇。

As a reminder, this incident mostly affected the operations of our North American and European dental and medical distribution businesses. Our distribution operations in Australia, New Zealand, Asia and Brazil were generally not affected. Henry Schein One, our practice management software, revenue cycle management and patient relationship management business was not affected. And our manufacturing businesses and our equipment sales and service operations were mostly unaffected.

提醒一下，這起事件主要影響了我們北美和歐洲牙科和醫療分銷業務的運作。我們在澳洲、紐西蘭、亞洲和巴西的分銷業務總體上沒有受到影響。 Henry Schein One、我們的實踐管理軟體、收入週期管理和病患關係管理業務並未受到影響。我們的製造業務以及設備銷售和服務業務基本上沒有受到影響。

We are now aware that a significant amount of information was obtained by an unauthorized third party in the cybersecurity incident. Bank account information for a limited number of suppliers was misused, and we have already separately addressed this with those impacted. More details have been posted on our Investor Relations website. We are continuing our investigation of the cybersecurity incident. In a moment, Ron will speak about the financial impact of the cybersecurity incident, which will affect our fourth quarter financial results.

我們現在意識到，在網路安全事件中，未經授權的第三方獲取了大量資訊。少數供應商的銀行帳戶資訊被濫用，我們已經與受影響的供應商單獨解決了這個問題。更多詳細資訊已發佈在我們的投資者關係網站上。我們正在繼續調查網路安全事件。稍後，羅恩將談到網路安全事件的財務影響，這將影響我們第四季度的財務表現。

I would like to extend a heartful thanks to our customers as well as our suppliers and team members for their patience and the incredible support we've received from all of our constituents during this period. Our customers, our suppliers and our team understand that a cyber incident could occur to any business and has been particularly prevalent in the healthcare arena over the last 6 months.

我謹向我們的客戶、供應商和團隊成員表示衷心的感謝，感謝他們的耐心以及在此期間我們從所有選民那裡得到的難以置信的支持。我們的客戶、供應商和團隊都知道，任何企業都可能發生網路事件，並且過去 6 個月在醫療保健領域尤其普遍。

Turning now to the third quarter. We're reporting solid financial results for the third quarter. We achieved good total sales growth and non-GAAP diluted EPS growth despite continued lower sales of PPE and COVID-19 tests. Our internal sales growth slowed in the third quarter due to some market softness in September as a result of general macroeconomic weakness as well as lower sales of PPE products and COVID tests. However, we believe that the dental and medical markets that we serve are relatively recession-resilient.

現在轉向第三季。我們報告了第三季穩健的財務表現。儘管 PPE 和 COVID-19 測試的銷售額持續下降，但我們實現了良好的總銷售額成長和非 GAAP 攤薄後每股收益成長。由於整體宏觀經濟疲軟以及個人防護用品 (PPE) 產品和新冠病毒檢測的銷量下降，導致 9 月市場疲軟，我們第三季的內部銷售成長放緩。然而，我們相信我們所服務的牙科和醫療市場相對具有抵禦衰退的能力。

Sales of PPE products and COVID-19 test kits continue to decline but at lower rate compared to the earlier year. Increased customer demand for lower-priced corporate brand, merchandise and generic products, along with growth of equipment technical service revenue, also has helped our profitability this quarter. Profitability for the quarter benefited from our technology, value-added services and dental specialty products as we continue towards our goal of achieving 40% of operating income from sales of high-growth, high-margin products.

PPE 產品和 COVID-19 檢測試劑盒的銷售量持續下降，但與前一年相比下降幅度較低。客戶對低價企業品牌、商品和通用產品的需求增加，以及設備技術服務收入的成長，也有助於我們本季的獲利。本季的獲利能力得益於我們的技術、加值服務和牙科專業產品，我們繼續實現 40% 營業收入來自高成長、高利潤產品銷售的目標。

We are now more than halfway through our 3-year BOLD+1 Strategic Plan. Despite current macroeconomic conditions and the cybersecurity incident, we have confidence in the stability of the dental and medical markets and remain committed to our strategic priorities and long-term financial model, which includes high single-digit to low double-digit growth in operating income.

目前，我們的 3 年 BOLD+1 策略計畫已完成一半以上。儘管當前的宏觀經濟狀況和網路安全事件，我們對牙科和醫療市場的穩定性充滿信心，並繼續致力於我們的戰略重點和長期財務模式，其中包括營業收入高個位數到低兩位數的增長。

Year-to-date, we have closed several strategic investments, and just last month, we were pleased to announce the closing of the acquisition of Shield Healthcare, a business that distributes medical products to patients in the home including continuous glucose monitoring. Overall, these acquired businesses are performing well.

今年迄今為止，我們已經完成了幾項策略投資，就在上個月，我們很高興地宣布完成對 Shield Healthcare 的收購，該公司向家庭患者分銷包括連續血糖監測在內的醫療產品。整體而言，這些收購的業務表現良好。

So let me turn to a review of our quarterly highlights from each of our business units, beginning with dental distribution. In North America, dental offices generally remain busy. However, dental patient traffic is somewhat slowed in September. This seemed to be the result of an increase in patient cancellations, which we believe were partially due to the seasonal uptick of flu cases and COVID-19. And our overall consumable merchandise sales, excluding PPE products reflected this.

因此，讓我回顧一下我們每個業務部門的季度亮點，從牙科分銷開始。在北美，牙科診所通常仍然很繁忙。然而，9 月牙科患者流量有所放緩。這似乎是患者取消預約增加的結果，我們認為部分原因是流感病例和 COVID-19 的季節性增加。我們的整體消費品銷售（不包括個人防護用品）反映了這一點。

Looking at our international dental business, overall volumes of consumable merchandise held steady across the regions. Sales of traditional dental equipment in North America have largely reverted to pre-pandemic levels with growth in mid-single digits. Dental equipment sales continued to be impacted by lower average selling prices, and we expect this to normalize in the first quarter of 2024. The equipment backlog was sequentially slightly higher and included strong orders taken at DS World show held in September -- actually at the end of September of 2023.

看看我們的國際牙科業務，各地區的消費品總量保持穩定。北美傳統牙科設備的銷量已基本恢復到大流行前的水平，並實現中個位數增長。牙科設備銷售繼續受到平均售價下降的影響，我們預計這種情況將在2024 年第一季正常化。設備積壓量環比略有增加，其中包括9 月舉行的DS World 展會上收到的強勁訂單- 實際上是在2023 年 9 月底。

This increase reflects typical seasonality as we head into the fourth quarter. International dental equipment sales reflect a slowdown in sales in large equipment, and this is in parts of the world outside of North America, not everywhere. Our equipment sales vary quarter-to-quarter, of course, partially as a result of purchasing dynamics of large DSOs. But over the long term, we continue to expect equipment sales growth in the range of low to mid-single digits.

這一增長反映了進入第四季時的典型季節性。國際牙科設備銷售反映出大型設備銷售放緩，這是北美以外的世界部分地區，而不是所有地方。當然，我們的設備銷售額每季都有所不同，部分原因是大型 DSO 的採購動態。但從長遠來看，我們繼續預期設備銷售成長將在低至中個位數範圍內。

Dentistry is undergoing a significant transition to integrated high-tech digital workflow systems in the dental practice. Henry Schein is well positioned to be the brand of choice for our customers who are seeking an integrated digital clinical workflow, and we remain confident in the long-term outlook for dental equipment in general.

牙科診所正在經歷向整合高科技數位工作流程系統的重大轉變。 Henry Schein 完全有能力成為尋求整合數位臨床工作流程的客戶的首選品牌，我們對牙科設備的長期前景仍然充滿信心。

Turning now to the dental specialties. Overall, we believe we continued to gain global market share during this quarter. Our global implant business grew 40%, predominantly through acquisitions. BioHorizons Camlog to continue to perform -- outperform the market, growing sales in the mid-single digits. Our acquisitions of Biotech Dental in France and S.I.N., S-I-N, in Brazil are showing strong growth in implants and related products in the local markets. Our value brand, The Dentists, is also growing well. This is offset by somewhat slower, in fact, a slowing market in North America.

現在轉向牙科專業。總體而言，我們相信本季我們繼續獲得全球市場份額。我們的全球植體業務成長了 40%，主要透過收購實現。 BioHorizo​​​​ns Camlog 將繼續表現出色——跑贏市場，銷售額實現中個位數成長。我們對法國 Biotech Dental 和巴西 S.I.N.、S-I-N 的收購顯示出當地市場植體和相關產品的強勁成長。我們的價值品牌 The Dentists 也發展良好。事實上，北美市場的放緩實際上抵消了這一影響。

The performance of our endodontic business continued to be strong, and the clear aligner segment of our orthodontic business grew by double digits, albeit on a small base. So we're optimistic about the long-term growth prospects for the specialty markets as we continue to see adoption of specialty procedures among general practitioners the growing adoption by DSOs of specialty procedures and, of course, due to the macro trends of demographics.

我們的牙髓業務表現持續強勁，矯正業務的透明矯正器部分實現了兩位數成長，儘管基數較小。因此，我們對專科市場的長期成長前景持樂觀態度，因為我們繼續看到全科醫生採用專科手術，DSO 越來越多地採用專科手術，當然，這也是由於人口統計的宏觀趨勢。

We're also optimistic about the dental specialty products in 2024 as we have a robust new product line with upcoming launches in various geographies. So we are really optimistic about our specialty businesses in 2024 driven by the macro demographic trends and our robust new product pipeline.

我們對 2024 年的牙科專業產品也持樂觀態度，因為我們擁有強大的新產品線，即將在各個地區推出。因此，在宏觀人口趨勢和強大的新產品管道的推動下，我們對 2024 年的特種業務非常樂觀。

Let's now turn to our technology and value-added services businesses. We had excellent sales growth in our technology and value-added service businesses, driven by the Henry Schein One practice management software sales and by Large Practice Sales, the brokerage business we acquired at the close of this quarter. Henry Schein One's growth continues to be driven by practice management software solutions and, of course, particularly by Dentrix Ascend and Dentally, our cloud-based solutions, which provides the opportunity for their practices to integrate clinical workflow, and it's very important throughout the dental office.

現在讓我們來談談我們的技術和增值服務業務。在 Henry Schein One 實踐管理軟體銷售和大型實踐銷售（我們在本季結束時收購的經紀業務）的推動下，我們的技術和增值服務業務取得了出色的銷售成長。 Henry Schein One 的成長繼續受到實踐管理軟體解決方案的推動，當然，特別是Dentrix Ascend 和Dentally，我們基於雲端的解決方案，這為他們的實踐提供了整合臨床工作流程的機會，這在整個牙科領域非常重要辦公室。

Once again, the customer base of cloud solutions increased by about 40% this quarter compared to prior year. DSO accounts in particular are seeking integrated platforms along with the tools that are enhanced by artificial intelligence. In this connection, we recently formed a DSO Strategic Advisory Council, which is strategically focused on growing practice revenues and solving operational issues for large group practices. We, of course, have similar programs for midsized practices and for the smaller practices, where this advisory kind of service is provided by our field sales consultants.

本季雲端解決方案的客戶群與去年同期相比再次增加了約 40%。 DSO 帳戶尤其尋求整合平台以及人工智慧增強的工具。在這方面，我們最近成立了 DSO 策略諮詢委員會，其策略重點是增加業務收入和解決大型集團業務的營運問題。當然，我們針對中型診所和小型診所也有類似的計劃，這種諮詢服務由我們的現場銷售顧問提供。

During the third quarter, we introduced new features and upgrades, including the launch of Lighthouse 360. This new platform facilitates integrated patient communications, reputation management and overall practice success. This feature-rich product includes online patient scheduling, digital customized forms for patient intake and payment reminders and more.

在第三季度，我們推出了新功能和升級，包括推出 Lighthouse 360​​。這個新平台有利於整合患者溝通、聲譽管理和整體實踐成功。這款功能豐富的產品包括線上患者安排、患者就診和付款提醒的數位定製表格等。

Henry Schein One's goal is to continue to grow our practice management customer base and to increase the breadth of solutions offered to our existing customers. Our priorities regarding software integration are critical to achieving this goal, and we are well on our way towards an integrated clinical offering for the clinical aspects of the practice with a focus on specialty procedures as well.

Henry Schein One 的目標是繼續擴大我們的實踐管理客戶群，並擴大為現有客戶提供的解決方案的廣度。我們在軟體整合方面的優先事項對於實現這一目標至關重要，並且我們正在努力為實踐的臨床方面提供整合的臨床產品，並專注於專業程序。

Turning to our medical business. Third quarter growth was in the low single-digit, this is excluding sales of PPE and COVID-19 test kits, similar to recent quarters. This growth reflects high prior year comparison sales growth and higher sales and lower-priced products, including generics and corporate brands, albeit with higher margins. Of note, we are now distributing COVID-19 vaccines, although we do not expect this low-margin product category to have a significant impact on sales or profits. In September, we saw an uptick of sales in COVID-19 test kits, which we expect to continue into the fourth quarter.

轉向我們的醫療業務。第三季成長率為低個位數，這不包括 PPE 和 COVID-19 測試套件的銷售，與最近幾季類似。這一成長反映了去年同期較高的銷售成長以及較高的銷售額和較低價格的產品，包括仿製藥和企業品牌，儘管利潤率較高。值得注意的是，我們現在正在分發 COVID-19 疫苗，儘管我們預計這種低利潤產品類別不會對銷售或利潤產生重大影響。 9 月份，我們看到 COVID-19 檢測試劑盒的銷量上升，我們預計這種情況將持續到第四季度。

So in summary, the underlying fundamentals of our core business remain solid. We are executing ahead of schedule with our 2022-2024 BOLD+1 strategic plan. So with that in mind, let me ask Ron to discuss the quarterly financial results and our full year guidance. Ron, please?

總而言之，我們核心業務的基本面依然穩固。我們正在提前執行 2022-2024 年 BOLD+1 策略計畫。因此，考慮到這一點，讓我請羅恩討論季度財務表現和我們的全年指導。羅恩，請嗎？

Very good. Thank you, Stanley, and good morning, everyone. As you may have seen on November 2, we filed a notification with the SEC advising that we will not be filing our Q3 Form 10-Q until later in November. This delay is related to our recent cybersecurity incident. We were able to complete our consolidated income statement prior to deactivating our systems. However, we have been delayed in completing our consolidated balance sheet and statement of cash flows, which we normally include as attachments to our earnings release. These statements will be available when our Q3 Form 10-Q is completed.

非常好。謝謝你，史丹利，大家早安。正如您可能在 11 月 2 日看到的那樣，我們向 SEC 提交了一份通知，通知我們要到 11 月晚些時候才會提交第 3 季的 10-Q 表格。這次延遲與我們最近的網路安全事件有關。我們能夠在停用系統之前完成合併損益表。然而，我們推遲了完成合併資產負債表和現金流量表，我們通常將其作為收益發布的附件。這些報表將在我們的第 3 季表格 10-Q 完成後提供。

The third 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. Note that there are no effects of the cybersecurity incident on our Q3 results as the incident occurred in October.

2023 年和 2022 年第三季非 GAAP 財務表現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。請注意，網路安全事件對我們第三季的業績沒有影響，因為該事件發生在 10 月。

With respect to sales growth in the quarter, I will focus primarily on LCI sales growth, which is internally generated sales in local currencies compared with the prior year and excludes acquisitions.

關於本季的銷售成長，我將主要關注 LCI 銷售成長，這是與前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。

Third quarter global sales of $3.2 billion reflected an LCI sales decrease of 1.2%. However, when excluding sales of PPE products and COVID-19 test kits, our LCI sales grew 1.1%. We sold $131 million of PPE products in the third quarter of this year, a decrease of approximately 19% year-over-year. And we sold $44 million in COVID-19 test kits, a decrease of approximately 46% year-over-year.

第三季全球銷售額為 32 億美元，LCI 銷售額下降 1.2%。然而，如果排除 PPE 產品和 COVID-19 檢測套件的銷售，我們的 LCI 銷售額成長了 1.1%。今年第三季度，我們銷售了 1.31 億美元的 PPE 產品，年減約 19%。我們的 COVID-19 檢測試劑盒銷售額為 4,400 萬美元，年減約 46%。

Our GAAP operating margin for the third quarter of 2023 was 6.3%, a 52 basis point decline compared to the prior year GAAP operating margin. On a non-GAAP basis, operating margin for Q3 was 8.1%, a 12 basis point decline compared to the prior year non-GAAP operating margin with higher gross profit margins offset by higher operating expenses, primarily acquisition-related expenses.

我們 2023 年第三季的 GAAP 營業利潤率為 6.3%，比去年 GAAP 營業利潤率下降 52 個基點。以非公認會計原則計算，第三季營業利益率為8.1%，較上年非公認會計原則營業利益率下降12 個基點，較高的毛利率被較高的營業費用（主要是收購相關費用）所抵消。

Third quarter 2023 GAAP net income was $137 million or $1.05 per diluted share. This compares with prior year GAAP net income of $150 million or $1.09 per diluted share. Our third quarter 2023 non-GAAP net income was $173 million or $1.32 per diluted share. This compares with prior year non-GAAP net income of $177 million or $1.29 per diluted share.

2023 年第三季 GAAP 淨利為 1.37 億美元，或攤薄後每股收益 1.05 美元。相比之下，上一年的 GAAP 淨利潤為 1.5 億美元，即稀釋後每股收益 1.09 美元。我們的 2023 年第三季非 GAAP 淨利為 1.73 億美元，或攤薄後每股收益 1.32 美元。相比之下，上一年非 GAAP 淨利潤為 1.77 億美元，即稀釋後每股收益 1.29 美元。

Details of acquisition expense and acquisition-related adjustments for the quarter and year-to-date are included in Exhibit C to our press release. The foreign currency exchange impact on our third quarter EPS was immaterial.

本季和年初至今的收購費用和收購相關調整的詳細資訊包含在我們新聞稿的附件 C 中。外匯兌換對我們第三季每股盈餘的影響並不重大。

Now turning to our third quarter sales results. Global Dental sales were $1.9 billion, and LCI sales decreased by 0.2%. Excluding sales of PPE products, LCI sales growth for Global Dental was 0.3%. Global Dental merchandise LCI sales increased by 0.3% or 1.1% when excluding PPE products. North American dental merchandise LCI sales decreased 1.2% compared to the prior year and decreased 0.1% when excluding sales of PPE products.

現在轉向我們第三季的銷售業績。全球牙科銷售額為 19 億美元，LCI 銷售額下降 0.2%。不包括 PPE 產品的銷售，Global Dental 的 LCI 銷售成長為 0.3%。全球牙科商品 LCI 銷售額成長 0.3%，若不包括個人防護裝備產品，則成長 1.1%。北美牙科商品 LCI 銷售額與前一年相比下降 1.2%，若剔除 PPE 產品銷售額則下降 0.1%。

International dental merchandise LCI sales increased by 2.9% and by 3.2% when excluding sales of PPE products. Global Dental equipment LCI sales decreased 2.0% with mid-single-digit growth in traditional equipment, offset by lower digital equipment sales, reflecting lower intraoral scanner prices as a result of new products introduced late last year. Our North America dental equipment LCI sales increased 0.2%. This was against a difficult comparison as North America dental equipment LCI growth was 12.8% in the third quarter of 2022.

國際牙科商品 LCI 銷售額成長了 2.9%，如果不包括個人防護裝備 (PPE) 產品的銷售額，則成長 3.2%。全球牙科設備 LCI 銷售額下降 2.0%，傳統設備實現中等個位數成長，但被數位設備銷售額下降所抵消，反映出去年年底推出的新產品導致口內掃描儀價格下降。我們的北美牙科設備 LCI 銷售額成長了 0.2%。這是一個困難的比較，因為 2022 年第三季北美牙科設備生命週期清單成長率為 12.8%。

International equipment LCI sales decreased 5.9% compared to the prior year as a result of some macroeconomic uncertainty in Europe, which primarily impacted digital equipment sales.

由於歐洲宏觀經濟的一些不確定性，主要影響了數位設備銷售，國際設備 LCI 銷售額年減 5.9%。

Dental specialty products include implants, bone regeneration materials, orthodontic products and endodontic products. Sales of these products were approximately $268 million in the third quarter with reported growth of 25% driven by acquisitions. Global Technology and value-added services sales during the third quarter were $210 million with LCI growth of 9.6%. In North America, sales growth was driven primarily by our Dentrix Ascend practice management business and growth internationally was driven by our Dentally cloud-based solution.

牙科特殊產品包括植體、骨再生材料、矯正產品和牙髓產品。第三季這些產品的銷售額約為 2.68 億美元，據報導在收購的推動下成長了 25%。第三季全球技術和加值服務銷售額為 2.1 億美元，LCI 成長 9.6%。在北美，銷售成長主要由我們的 Dentrix Ascend 實踐管理業務推動，國際成長則由我們基於 Dentally 雲端的解決方案推動。

Our technology and value-added services and specialty products represented about 35% of total operating income in the third quarter.

我們的技術和增值服務以及特色產品約佔第三季總營業收入的35%。

Global Medical sales during the third quarter were $1.1 billion and LCI sales decreased 4.6% 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 1.0%. This was against a typical comparison as LCI growth, excluding PPE products and COVID-19 test kits grew 9.7% in Q3 of 2022.

第三季全球醫療銷售額為 11 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 4.6%。在北美，不包括 PPE 產品和 COVID-19 檢測套件的銷售額，LCI 銷售額成長了 1.0%。這與典型的比較相比，2022 年第三季 LCI 成長（不包括 PPE 產品和 COVID-19 測試套件）成長了 9.7%。

Regarding stock repurchases. We repurchased approximately 660,000 shares of common stock in the open market during the third quarter, buying at an average price of $75.79 per share for a total of $50 million. At quarter end, we had approximately $315 million authorized and available for future stock repurchases. We continue to benefit from significant liquidity, providing our businesses with the financial flexibility and stability to execute organic growth initiatives and strategic acquisitions while continuing to return capital to our stockholders.

關於股票回購。第三季度，我們在公開市場回購了約 66 萬股普通股，平均回購價格為每股 75.79 美元，回購總額為 5,000 萬美元。截至季末，我們已獲得約 3.15 億美元的授權，可用於未來的股票回購。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，以執行有機成長計劃和策略性收購，同時繼續向股東返還資本。

As we stated last quarter, we have committed over $1 billion to the acquisitions we have announced so far this year, with $417 million invested in business acquisitions that closed in the third quarter and $668 million invested year-to-date.

正如我們上季度所述，今年迄今我們已向已宣布的收購投資了超過 10 億美元，其中 4.17 億美元投資於第三季完成的業務收購，今年迄今投資了 6.68 億美元。

Restructuring expenses in the third quarter were $11 million or $0.06 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 still expect restructuring activities to extend through 2024.

第三季的重組費用為 1,100 萬美元，或攤薄後每股 0.06 美元，是我們先前揭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。我們仍預期重組活動將持續到 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 and expenses directly associated with the cybersecurity incident. Therefore, we are not providing GAAP guidance.

讓我以 2023 年財務指引來結束我的演講。目前，我們仍然無法提供 2023 年整合和重組相關成本以及與網路安全事件直接相關的費用的估計。因此，我們不提供 GAAP 指導。

We are updating guidance for 2023, our non-GAAP guidance to $4.43 a share to $4.71 a share, reflecting a narrowing of the range of our guidance for 2023 non-GAAP diluted EPS for the underlying business to $5.18 to $5.26 from $5.18 to $5.35 that was previously communicated, reflecting softening macroeconomic conditions. An estimated $0.55 to $0.75 per share impact is due to business interruption from the recent cybersecurity incident.

我們正在更新2023 年指引，將非GAAP 指引調整為每股4.43 美元至4.71 美元，反映出我們對2023 年基礎業務非GAAP 攤薄後每股收益指引範圍從5.18 美元至5.35 美元縮小至5.18 美元至5.26美元。此前曾通報過，反映了宏觀經濟狀況的疲軟。由於最近的網路安全事件導致業務中斷，預計每股影響 0.55 至 0.75 美元。

As Stan mentioned, we believe that our teams have contained the cybersecurity incident, and we have mostly restored our operations. Although we believe a significant portion of sales that had been disrupted while certain systems were off-line were deferred, we estimate the percentage of sales growth for the full year will be negatively impacted in the low to mid-single digits. Our estimated fourth quarter impact of $0.55 to $0.75 per share does not include certain expenses directly associated with the cybersecurity incident as we expect to report these as non-GAAP expenses in the fourth quarter.

正如史丹所提到的，我們相信我們的團隊已經控制了網路安全事件，並且我們已經基本上恢復了營運。儘管我們認為，在某些系統離線時受到干擾的很大一部分銷售被推遲，但我們估計全年銷售成長百分比將受到低至中個位數的負面影響。我們預計第四季度的影響為每股 0.55 美元至 0.75 美元，不包括與網路安全事件直接相關的某些費用，因為我們預計將這些費用報告為第四季度的非 GAAP 費用。

The financial impact does not include any future insurance claim recovery. We expect to file an insurance claim arising from this incident under our cyber insurance policy, although final resolution is subject to insurer approval. This policy has a $60 million after-tax claim limit after a $5 million retention, and any claim recovery will likely not be recognized until late 2024.

財務影響不包括任何未來的保險索賠追償。我們希望根據我們的網路保險政策提出因該事件引起的保險索賠，但最終解決方案仍需保險公司批准。該保單在保留 500 萬美元後，稅後索賠限額為 6000 萬美元，任何索賠追償可能要到 2024 年末才能得到確認。

Our 2023 net sales are now expected to be 1% to 3% lower than 2022 net sales, which is an update from prior guidance of 1% to 3% sales growth. This change in guidance primarily reflects lower sales as a result of the cybersecurity incident which, as previously mentioned, is expected to lower full year 2023 percentage sales growth in the low to mid-single-digit range. As a reminder, our guidance also reflects 1 less selling week to 2023 and 2022.

目前，我們預計 2023 年淨銷售額將比 2022 年淨銷售額低 1% 至 3%，這是對先前 1% 至 3% 銷售成長指引的更新。這項指引的變化主要反映了網路安全事件導致的銷售額下降，如前所述，預計該事件將導致 2023 年全年銷售額成長率降至低至中個位數範圍。提醒一下，我們的指導也反映出 2023 年和 2022 年的銷售量減少了 1 週。

Our 2023 guidance includes higher interest expense than in 2022 as a result of higher interest rates and higher borrowing levels. We also expect an effective tax rate for the year in the 23% range, assuming no changes in tax legislation. Our guidance is for continuing -- 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 as well as certain expenses directly associated with the cybersecurity incident. Guidance also assumes that foreign currency exchange rates are generally consistent with current levels and that end markets remain consistent with current market conditions. We intend to introduce 2024 financial guidance when reporting Q4 and full year financial results.

由於更高的利率和更高的借貸水平，我們的 2023 年指引包括比 2022 年更高的利息支出。假設稅收立法沒有變化，我們也預期今年的有效稅率為 23%。我們的指導意見是針對當前的持續營運以及已宣布的收購，不包括未來股票回購和潛在的未來收購的影響以及與網路安全事件直接相關的某些費用。指南還假設外幣匯率總體上與當前水準一致，且終端市場與當前市場狀況保持一致。我們打算在報告第四季和全年財務表現時引入 2024 年財務指引。

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

現在，我將把電話轉回給史丹利。

Thank you, Ron. I appreciate that.

謝謝你，羅恩。我很感激。

Operator, we are ready to take any questions that investors may have.

營運商，我們隨時準備回答投資者可能提出的任何問題。

(Operator Instructions)

（操作員說明）

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

第一個問題來自 Jon Block 和 Stifel 的台詞。

Maybe the first one, just high level. Stan, what are you guys hearing from the customers? The ordering frequency from a practice might be, I don't know, maybe roughly every 2 to 3 weeks. So some customers might have encountered the issues pretty minimal number of times, maybe one time, possibly twice at most. What have you guys heard regarding, call it, customer retention? Or do you think you don't have a better feel for that until the actual website is back up and running, which seems, to your prior point, tomorrow morning? And then I'll just ask a follow-up.

也許是第一個，只是水平很高。史丹，你們從顧客那裡聽到了什麼？我不知道，診所的訂購頻率可能大約是每 2 到 3 週一次。因此，有些客戶可能遇到這些問題的次數很少，也許一次，最多可能兩次。關於客戶保留，你們聽過什麼？或者您是否認為在實際網站恢復運行之前您對此沒有更好的感覺，根據您之前的觀點，這似乎是明天早上？然後我會問後續情況。

Yes. So Jon, that of course is a very important question. We believe we are at this 85% to 90% floor. The larger customers that are more sophisticated from an IT point of view are buying -- using either the e-commerce systems that we offer or workarounds. I would say that is even with the smaller customers -- the midsized customers. The smaller customers are relying on visits from the field sales consultants to collect the orders or they were until recently and from the telesales reps. So the funnel for doing that is not as wide as of course, digital ordering. So I think we will start seeing much more business from the smaller customers, which are a key part of our business as the website returns.

是的。喬恩，這當然是一個非常重要的問題。我們相信我們處於 85% 到 90% 的底線。從 IT 角度來看，較成熟的大客戶正在使用我們提供的電子商務系統或解決方法進行購買。我想說，即使是小客戶——中型客戶也是如此。較小的客戶依靠現場銷售顧問的上門來收集訂單，或直到最近才依賴電話銷售代表的上門來收集訂單。因此，這樣做的管道當然不像數位訂購那麼廣泛。因此，我認為我們將開始看到來自小型客戶的更多業務，隨著網站的恢復，這是我們業務的關鍵部分。

But we have very good relationships with our customers, the field sales consultants, tremendous telesales connectivity and, of course, the value-added services. Generally, we've not heard of customers leaving us. Have customers made alternative decisions here. Of course, some of the buyers of pharmaceuticals couldn't wait, for example, for controlled drugs. We expect our controlled drug system to be up relatively soon. So I would say, generally, we are heartened by the support we've received from our customers. Jon, as you know, unfortunately, cyber issues in healthcare have been quite prevalent. In fact, the first 6 months of this year, there were over 300 incidents in healthcare alone.

但我們與客戶、現場銷售顧問、強大的電話銷售連接以及增值服務有著非常良好的關係。一般來說，我們沒有聽說過客戶離開我們的情況。讓客戶在這裡做出替代決定。當然，有些藥品購買者迫不及待地購買受管制藥品。我們預計我們的管制藥物系統將相對較快地建立起來。所以我想說，總的來說，我們對客戶的支持感到鼓舞。喬恩，正如您所知，不幸的是，醫療保健領域的網路問題相當普遍。事實上，今年前 6 個月，光是醫療保健領域就發生了 300 多起事故。

So the customer base is quite attuned to this. And obviously, it's going to be a lot of work on behalf of our field sales representatives and our telesales people as well as our e-commerce team to bring all the customers back. There will be some trailing, I would imagine. But overall, we remain quite enthusiastic about the level of support we receive. And by the way, not only from our customers, but the entire industry has been very, very supportive of us.

所以客戶群對此非常適應。顯然，我們的現場銷售代表、電話銷售人員以及電子商務團隊需要做大量工作才能吸引所有客戶。我想，會有一些尾隨。但總的來說，我們對收到的支持程度仍然非常熱情。順便說一句，不僅是我們的客戶，整個行業都非常非常支持我們。

That's great color. And maybe I'll pivot, Ron, to you for the second question. Any really high-level thoughts around 2024? And not a specific number, but maybe just the construct. Should we think about it as sort of growth on the core underlying EPS of $5.22, the revised midpoint, and then offset by, call it, the lag hit on the cybersecurity incident?

那顏色真棒。羅恩，也許我會轉向你回答第二個問題。 2024 年左右有什麼真正高層的想法嗎？並不是一個具體的數字，而可能只是一個結構。我們是否應該將其視為核心每股收益 5.22 美元（修訂後的中點）的成長，然後透過網路安全事件的滯後影響來抵銷？

And on that second point, I just want to make sure, the $0.55 to $0.75 4Q '23 cyber hit, that's all, call it, decremental lost sales? I think you said no expenses in there. That would be excluded from non-GAAP. Is there any promotional stuff in there?

關於第二點，我只是想確定一下，23 年第 4 季的網路點擊量為 0.55 美元到 0.75 美元，這就是全部，稱之為減少銷售損失？我想你說的是那裡沒有任何費用。這將被排除在非公認會計原則之外。裡面有什麼促銷的東西嗎？

Sorry, and last sort of question, tack-on, how do we think about the exit impact for December? Because you talked about the top line impact for the quarter, but obviously December would likely be much lower than what you've experienced in October. So any color on the cadence for the trailing throughout the fourth quarter.

抱歉，最後一個問題是，我們如何看待 12 月的退出影響？因為您談到了本季的營收影響，但顯然 12 月的影響可能會比您 10 月經歷的要低得多。因此，整個第四節的節奏上的任何顏色都是尾隨的。

Yes. Thanks, Jon. Yes, you're correct in that the $0.55 to $0.75 that we've called out as Q4 impact is attributable to business interruption impact. It does not include the onetime cost that we are incurring that are directly attributable to reactivating the systems. And right now, it's our intent that when we report the Q4 results, we'll be calling out those particular costs as part of our non-GAAP reconciliation.

是的。謝謝，喬恩。是的，您是對的，我們所說的第四季度影響 0.55 至 0.75 美元是由於業務中斷影響。它不包括我們因重新啟動系統而直接產生的一次性成本。現在，我們的目的是，當我們報告第四季度業績時，我們將在非公認會計準則對帳中列出這些特定成本。

In terms of run rate into '24, that will be something that really is largely contingent on the level of business that we see with One web being back up. That is a very important turning point for us. It's something we're very excited about in the organization this week. And I think that we'll have greater intelligence in terms of what's happening with customer retention with One web back up.

就 24 年的運行率而言，這實際上很大程度上取決於我們看到 One web 恢復後的業務水平。這對我們來說是一個非常重要的轉捩點。這是本週我們在組織中感到非常興奮的事情。我認為，透過 One web back up，我們將在客戶保留方面擁有更豐富的情報。

I do anticipate we will likely have some, what you want to call them, customer retention programs or promotions in the quarter that may put a little bit of pressure on Q4 margins. I wouldn't expect it to be real significant. But having said that, we do want to show some appreciation to our customers, and we do want to make sure that we go into 2024 with a solid of a base of businesses that we can possibly have.

我確實預計我們可能會在本季度推出一些客戶保留計劃或促銷活動，這可能會給第四季度的利潤率帶來一些壓力。我沒想到它會真正意義重大。但話雖如此，我們確實想向我們的客戶表示一些感謝，我們確實希望確保我們在進入 2024 年時能夠擁有堅實的業務基礎。

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

下一個問題來自伊麗莎白·安德森 (Elizabeth Anderson) 與 Evercore ISI 的對話。

So as we think about the cybersecurity, you said the website's back up tomorrow. That's great to hear. Now if we think about just sort of like the broader operations that support that, is that something that you feel like is also kind of in a similar place? And obviously, you probably wouldn't put the website up if it were having a ton of internal issues. So I just want to make sure how you feel about sort of the rest of the systems that are supporting that ordering process.

當我們考慮網路安全時，您說網站明天就會恢復。聽到這個消息我很高興。現在，如果我們考慮一下支持這一點的更廣泛的操作，您是否覺得這也是類似的地方？顯然，如果網站存在大量內部問題，您可能不會將其上線。所以我只是想確定您對支持該訂購流程的其他系統有何看法。

And then sort of as we think about 2024, you obviously have the BOLD initiative. I just wanted to see if given the cybersecurity situation or the current demand environment, how do you sort of think about that conceptually, whether there are places there you can accelerate cost cuts. Any color there would be helpful.

然後，當我們思考 2024 年時，您顯然有大膽的舉措。我只是想看看，考慮到網路安全狀況或當前的需求環境，您如何從概念上考慮這一點，是否有地方可以加速成本削減。任何顏色都會有幫助。

Thank you, Elizabeth. Again also 2 very, very good questions. So let me just provide one more time the context which, I think, we tried to communicate our prepared remarks. So we experienced the cybersecurity incident, we got suspicious. And what we did was -- and our CTO made a brilliant move, he brought the whole system down immediately. He knew -- he was quite comfortable that our backups were good.

謝謝你，伊麗莎白。還有兩個非常非常好的問題。因此，讓我再次提供背景，我認為我們試圖傳達我們準備好的言論。所以我們經歷了網路安全事件，我們產生了懷疑。我們所做的是——我們的首席技術官做出了一個明智的舉動，他立即關閉了整個系統。他知道——他對我們的備份很好感到很放心。

So our backups have turned out to be very good. And what we need to do now is turn on application by application. Before you can turn on that application, you have to do certain forensic work to make sure that there are no sleepers in there. And so that's what we've been doing. I would say that at the moment, other than the website, we're more or less back to where we were. There are a few areas that require additional turning on, some involving invoicing, some involving the returns function. And the only area we can't really supply right now because we're super cautious is on controlled drugs. Although we have an affiliate that was not impacted and they are shipping controlled drugs if need be.

所以我們的備份效果非常好。我們現在需要做的是逐個應用程式開啟。在打開應用程式之前，您必須進行某些取證工作以確保其中沒有睡眠者。這就是我們一直在做的事情。我想說，目前，除了網站之外，我們或多或少回到了原來的狀態。有一些區域需要額外打開，有些涉及發票，有些涉及退貨功能。由於我們非常謹慎，我們現在唯一無法真正供應的領域是受管制藥物。儘管我們有一家附屬公司沒有受到影響，並且如果需要的話他們正在運輸受管制的藥物。

We expect all of these areas, and this is expected to be up and running this week. There are some isolated areas where we have challenges. I would say they have less to do with the customer side. We have some parts of the world where we have WMS systems that are not fully functional yet. It's not impacting the customer because the E3 system, the basic buying system is working and has been working for a while. But it's just taking us a lot more human capital, human resources in receiving the products, putting them away, and picking. Those areas will come back, I think, in the next few weeks.

我們預計所有這些領域都會在本週啟動並運行。在一些孤立的領域我們面臨挑戰。我想說他們與客戶方面的關係不大。我們在世界某些地區的 WMS 系統尚未完全發揮作用。這不會影響客戶，因為 E3 系統（基本購買系統）正在運行，並且已經運行了一段時間。但這只是花費了我們更多的人力資本，即接收產品、存放和挑選的人力資源。我認為，這些地區將在未來幾週內恢復。

So I think from a customer point of view, we're in pretty reasonable shape today. Yes, if a customer has an inquiry on certain purchases made some time ago, we may not be able to give an instant response. We may have to do some research through the backups. But in general, operationally, actually we were doing quite well a couple of days after -- 2 days after the cyber incident. The key here is to remember that our backups are in pretty good shape, and we feel very confident in the way we're bringing up these systems one at a time.

所以我認為從客戶的角度來看，我們今天的狀況相當合理。是的，如果客戶對不久前購買的某些商品有疑問，我們可能無法立即回覆。我們可能需要透過備份進行一些研究。但總的來說，實際上，在網路事件發生兩天后，我們在營運上做得很好。這裡的關鍵是要記住，我們的備份狀況非常好，我們對一次一個地啟動這些系統的方式非常有信心。

Our team on the IT side is remarkable, our investor -- our consults are just the best. And we feel pretty good that we are bringing up systems that are stable, and we just have to go through the cycle, but I don't think we're talking about that long. But I'm not sure -- but I'm quite sure that from a customer point of view, other than the items I mentioned, we'll be in pretty good shape tomorrow when the -- hopefully when the website comes up.

我們的 IT 團隊非常出色，我們的投資者 - 我們的諮詢服務也是最好的。我們感覺很好，我們正在建立一個穩定的系統，我們只需要經歷這個週期，但我認為我們不會談論那麼長的時間。但我不確定 - 但我很確定，從客戶的角度來看，除了我提到的項目之外，明天當 - 希望網站出現時，我們將處於良好狀態。

Elizabeth, I'll take the second half of your question. I believe you were asking if in 2024, did I anticipate that we would be accelerating any cost cuts. Did I understand you properly?

伊莉莎白，我來回答你問題的後半部。我相信您問的是，到 2024 年，我是否預期我們會加速削減成本。我正確理解你的意思了嗎？

Yes. That's what I was asking.

是的。這就是我想問的。

Yes. I think that we will really go about our business in 2024 as we had originally planned. As we said on the call, we have $1 billion committed to acquisitions. And typically in the year -- in the short-term following acquisitions, we look for synergy opportunities. Some of those acquisitions will stand alone as businesses, but others do provide us with some synergy opportunities that we'll be able to implement over the course of '24. And then just any other normal process that we would go through to identify cost efficiency. So I don't think this -- in the context of the cybersecurity incident, do we feel a need to go out and accelerate any type of cost savings in '24.

是的。我認為我們將在 2024 年真正按照最初的計劃開展業務。正如我們在電話會議上所說，我們承諾投入 10 億美元進行收購。通常在收購後的一年內，我們會尋找協同機會。其中一些收購將作為業務獨立存在，但其他收購確實為我們提供了一些協同機會，我們將能夠在 24 年期間實施這些機會。然後我們將透過任何其他正常流程來確定成本效率。因此，我認為，在網路安全事件的背景下，我們是否覺得有必要在 24 年裡出去加速任何類型的成本節約。

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。

So let me ask 2 questions. I guess they're both kind of intertwined, but just so kind of we level set all of us on how to conceptually think about your outlook from here. First, if we could just ignore the cyber for a second, and I'm sure that's not possible, and that will be my follow-up question. But if we ignore that for a second. Third quarter dental organic growth, right around flattish levels on a global basis, the company-wide 1-ish percent. Would those -- if you were counseling us on how to think about kind of our 2024 models, would those be starting off points that you would recommend we think about conceptually and where we built kind of our organic ex cyber kind of growth rates into next year?

那麼讓我問 2 個問題。我想它們都是相互交織在一起的，但正是如此，我們讓我們所有人都知道如何從這裡概念性地思考你的觀點。首先，如果我們可以暫時忽略網絡，我確信這是不可能的，這將是我的後續問題。但如果我們暫時忽略這一點。第三季牙科有機成長在全球基本持平，全公司成長率為 1%左右。如果您就如何考慮我們的 2024 年模型向我們提供諮詢，您會建議我們從概念上進行思考，以及我們在下一步中構建有機前網絡增長率的起點嗎？年？

So Jeff, obviously, we've provided a lot of thoughts around this as an analyst and as the industry. So in broad terms, we believe our business is relatively recession-resilient. It goes down a bit, it will come back. Our North American dental consumable business, as you correctly point out, had flat internal growth. We saw moderate softness in patient traffic in North America due to appointment cancellations, mostly in September. It's hard to tell how long that has continued. It was similar in the first 2 weeks of October. But thereafter, obviously, because of the cyber incident, it's hard to project.

因此，傑夫，顯然，作為分析師和行業，我們對此提供了許多想法。因此，從廣義上講，我們相信我們的業務相對具有抵禦衰退的能力。稍微下降一點，就會回來。正如您正確指出的那樣，我們的北美牙科耗材業務內部成長穩定。由於預約取消（主要是在 9 月），我們發現北美的患者流量適度疲軟。很難說這種情況持續了多久。十月的前兩週也有類似情況。但此後，顯然，由於網路事件，就很難預測了。

If you look at -- I'm talking about North America now, sales of traditional dental equipment have been largely -- have largely reverted to the pre-pandemic levels. And we think that's growth in the mid-single digits. Digital equipment sales continued to be impacted by lower average selling prices and it's hard to, again, give you an absolute is when we expect this to normalize. My sense is, and that's what our equipment people say, it will normalize sometime in the first quarter of next year.

如果你看一下——我現在談論的是北美，傳統牙科設備的銷售基本上已經恢復到大流行前的水平。我們認為這是中等個位數的成長。數位設備銷售繼續受到平均售價下降的影響，很難再一次告訴您我們預計這種情況何時會正常化的絕對時間。我的感覺是，正如我們的設備人員所說，它將在明年第一季的某個時候恢復正常。

If you look at our international business, Overall, volumes of consumer build merchandise held steady across most regions. If you project that into the international equipment sales, there is a slowdown in large equipment in parts of the world. But there are also some unique reasoning for that in place, for example, in places like Australia, there was a tax incentive that ended. So yes, I think there is some caution amongst our customers in parts of the world because of the macroeconomic issue in parts of Europe. I don't think it's necessarily that bad in any one country.

如果你看看我們的國際業務，總體而言，大多數地區的消費商品數量保持穩定。如果將其計入國際設備銷售中，就會發現世界部分地區的大型設備銷售放緩。但也有一些獨特的原因，例如，在澳洲等地，稅收優惠政策終止了。所以，是的，我認為由於歐洲部分地區的宏觀經濟問題，我們在世界部分地區的客戶對此持謹慎態度。我認為任何一個國家的情況都不一定那麼糟。

Overall speaking, I think health insurance is, in the U.S. is typically provided through employment, could be a lagging indicator. So this could impact activities, hard to tell. And if it does, it's probably mostly higher-end procedures. I think we indicated that on the implant side in North America, we did see some softness on the premium side. Outside the U.S., of course, you have countries -- there's a lot more government payment to support. So it's hard to give you an indication of really how far down people's views would go of the economy having an impact on dentistry.

總的來說，我認為健康保險在美國通常是透過就業提供的，可能是個落後指標。所以這可能會影響活動，很難說。如果確實如此，那可能主要是高端程式。我認為我們表明，在北美的植體方面，我們確實看到了高端方面的一些疲軟。當然，在美國以外的國家，還有更多的政府資金需要支持。因此，很難告訴你人們對經濟對牙科影響的看法會下降到什麼程度。

But from the past, it's never been significant. By the way, we are seeing similar trends between private practices and the large practices. But of course, equipment sales for the DSOs are not as strong as they were given the cost of interest. But we also have to understand that DSO sales could be lumpy, they always have been.

但從過去來看，它從來沒有那麼重要。順便說一句，我們看到私人診所和大型診所之間有類似的趨勢。但當然，DSO 的設備銷售並不像考慮到利息成本那麼強勁。但我們也必須明白，DSO 的銷售可能會不穩定，而且一直如此。

On patient traffic, if you take a look at the ADA survey, it did indicate some patient traffic slowness in the third quarter, probably mostly in September. There's an argument that it's because of the flu, traditional flu, COVID-19 impact. And then you go and you take a look at implants in Europe where they were okay. So there's not a definitive downward trend, but there is a little bit of caution at the margin. And I think we have to take that position, at least, we have to plan for that.

關於患者流量，如果你看一下 ADA 調查，它確實表明第三季度患者流量有所放緩，可能主要是在 9 月。有一種說法認為這是由於流感、傳統流感和 COVID-19 的影響。然後你去歐洲看看植入物，那裡的情況還不錯。因此，並沒有明確的下降趨勢，但在邊際上有一點謹慎。我認為我們必須採取這一立場，至少我們必須為此做好計劃。

Yes. That's helpful. And so that kind of helps maybe level set us on the core assumptions. Ron, I guess my follow-up then is, as I see it, and correct me if I'm wrong, there's 3 variables on the cyber that we need to think about heading into next year. Do you continue to run any kind of customer retention programs on the spending side? Do you have any kind of just higher core spending on cybersecurity that you've got to put in place here, that you have to put in place that's going to structurally take the OpEx side higher?

是的。這很有幫助。因此，這可能有助於我們確定核心假設。羅恩，我想我的後續行動是，據我所知，如果我錯了，請糾正我，我們需要考慮明年網路上的 3 個變數。您是否繼續在支出方面運行任何類型的客戶保留計劃？您是否需要在網路安全方面投入更高的核心支出，從而從結構上提高營運支出？

And then three, is there any kind of customer loss? Do you lose maybe 1% or 2% of revenue or something like that? Because not everybody comes back either for risk-mitigating reasons or other reasons. So just any comment on kind of the 2 spending categories. Will those be higher next year? And the customer retention, I know it's hard to predict, but would it be safe to build in maybe just a little bit of bleed away of customer? Or do you think you get pretty much most of that back in '24?

第三，是否有任何類型的客戶流失？您是否會損失 1% 或 2% 的收入或類似情況？因為並不是每個人都會因為降低風險或其他原因而回來。所以只是對這兩種支出類別的任何評論。明年這些會更高嗎？至於客戶保留率，我知道很難預測，但如果客戶流失一點點，是否安全？還是你認為你在 24 年就得到了大部分？

Sure, Jeff. I think I'll kind of address the first item around customer retention and the third item of customer loss somewhat together. And I think we will have a greater feel for that in the coming weeks. The -- as I was saying earlier, the restoration of -- or the reactivation of our website will bring us much more intelligence in terms of what that customer retention and what the potential for customer loss might be, and as a result, what the necessary investment may be to recover some of that business and some of those customers. And that will be taken into consideration when we communicate our 2024 guidance in February of next year.

當然，傑夫。我想我會同時解決關於客戶保留的第一個項目和關於客戶流失的第三個項目。我認為在接下來的幾週內我們將會對此有更深刻的感受。正如我之前所說，恢復或重新激活我們的網站將為我們帶來更多關於客戶保留率和客戶流失可能性的信息，以及因此產生的結果。必要的投資可能是恢復部分業務和部分客戶。當我們在明年 2 月傳達 2024 年指導方針時，我們將考慮到這一點。

I think in terms of higher cyber spend, like everything else, we'll assess where we think is -- what is the appropriate investment if we believe it's necessary relative to anything else, we will do that. But I think right now, we're still in the midst of understanding the cause of this. The forensic investigation is ongoing. And we will invest accordingly according to that, if necessary. If it's necessary to increase that investment, we will.

我認為，就更高的網路支出而言，就像其他一切一樣，我們將評估我們的想法——如果我們認為相對於其他任何事情來說這是必要的，那麼什麼是適當的投資，我們就會這樣做。但我認為現在我們仍處於了解原因的過程中。法醫調查正在進行中。如有必要，我們將據此進行相應投資。如果有必要增加投資，我們會的。

And the next question comes from the line of John Stansel with JPMorgan.

下一個問題來自摩根大通的約翰‧史坦塞爾 (John Stansel)。

I just want to talk about some of the swing factors that could move you from the $0.55 to $0.75 in the cybersecurity headwind. What are some of the factors that you could see? Is it really just a time to ramp back up to 100% of like pre-incident levels? Or is there anything else built in there that we should be thinking about as we look at that?

我只想談談一些可能使您在網路安全逆風中從 0.55 美元升至 0.75 美元的波動因素。您可以看到哪些因素？這真的只是恢復到 100% 事件前水準的時間嗎？或者我們在考慮這個問題時還應該考慮其中的其他內容嗎？

Yes, John, I would say there's really 2 primary things, one being the absolute volumes of customers that -- we have some customers who only use the website to order. And while the website is down, they're not ordering. And now that the website is up, we expect a significant percentage of those customers to return. To the extent that we have to -- that we want to provide incentives to those customers.

是的，約翰，我想說確實有兩件事，一是客戶的絕對數量——我們有一些客戶只使用網站訂購。當網站關閉時，他們不會訂購。現在網站已經上線，我們預計其中很大一部分客戶會再回來。在我們必須這樣做的範圍內，我們希望為這些客戶提供激勵措施。

And that kind of leads us to the second factor that we've taken into consideration and that is the margins. To the extent we have some discounting in the quarter that would show up in the gross margins. So I think those are the areas that really are impacting our models in terms of what we believe the Q4 impact will be. We've run multiple scenarios and we've really kind of have triangulated to that $0.55 to $0.75 at this point. We'll gain much more intelligence over the coming weeks with the website associated with that.

這就引出了我們考慮的第二個因素，那就是利潤率。在某種程度上，我們在本季有一些折扣，這會反映在毛利率中。因此，我認為就我們認為第四季度的影響而言，這些領域確實正在影響我們的模型。我們已經運行了多個場景，此時我們確實已經對 0.55 美元到 0.75 美元進行了三角測量。在接下來的幾週內，我們將透過與之相關的網站獲得更多情報。

Great. And then just on the kind of the 85% to 90% of pre-incident volumes, can you give us kind of a sense qualitatively of how that's trended since that, I think, the 24th and onwards when you were generally operational, as that kind of increased week-over-week? Has that been kind of static? And then, I guess, you kind of indicated there that a big portion of this may just be people who prefer to use the online portal. Is that how you're thinking about the remaining customers who kind of haven't been ordering with you?

偉大的。然後，就事件前 85% 到 90% 的交易量而言，您能否給我們定性地了解自 24 日及以後您普遍運營以來的趨勢，因為每週都有增加嗎？這是靜態的嗎？然後，我想，您在那裡指出，其中很大一部分可能只是更喜歡使用線上入口網站的人。您是否也是這樣看待那些尚未向您訂購的剩餘客戶的？

Yes. So we're -- we've operated 4 weeks since we deactivated the system. Obviously, the most significant impact was on week 1. We saw a significant improvement in week 2, That led into improvement in week 3. And I would say week 4 was consistent with week 3 in terms of the volumes that we were processing. I do think there is a ceiling on that 85% to 90% where we are now that we can get through with One web up. And that will be -- like I was saying earlier, that's the intelligence we need to gather over the next couple of weeks when we see which customers have returned to us to close that 85% to 90% to get it to 100%. So that's really where we're operating right now.

是的。自從我們停用系統以來，我們已經運作了 4 週。顯然，最顯著的影響是在第一周。我們在第二週看到了顯著的改善，這導致了第三週的改善。我想說，就我們處理的數量而言，第四週與第三周是一致的。我確實認為我們現在可以透過 One web up 完成的 85% 到 90% 是有上限的。就像我之前所說的那樣，這就是我們在接下來的幾週內需要收集的情報，當我們看到哪些客戶回到我們身邊，以完成85% 到90% 的目標，從而達到100% 的目標時。這就是我們現在正在運作的地方。

Just to add to Ron's comment, for a period of time, the only way our customers could order with us was through a field sales representative or through telesales. A huge percentage of our orders, something like 70% of our orders, come digitally. That's the good news. We trained our customers that the best way to do business is digitally. The challenge is that 70% of orders had to go through our field representatives and telesales. That funnel was not large enough for a few weeks. So customers couldn't -- not all customers could buy through us.

補充一下羅恩的評論，在一段時間內，我們的客戶向我們訂購的唯一方式是透過現場銷售代表或透過電話銷售。我們很大一部分的訂單（例如 70%）都是數位化。這是個好消息。我們對客戶進行了培訓，讓他們知道開展業務的最佳方式是數位化。挑戰在於 70% 的訂單必須透過我們的現場代表和電話銷售。這個漏斗在幾週內還不夠大。所以客戶不能－並非所有客戶都可以透過我們購買。

As we expanded our digital ordering capability, as our salespeople got more efficient ways in which to enter the orders and we have incredible work around that came up very quickly, but for a period of time they were not there. And the telesales team had limited capacity. Of course, we were able to expand the telesales team's capacity. We had a model in place. We have a procedure in place that actually was tested during COVID, and literally overnight, we expanded the capacity. The challenge was the funnels for a few days were not big enough to accept all the orders.

隨著我們擴大數位訂購能力，我們的銷售人員獲得了更有效的方式輸入訂單，我們很快就出現了令人難以置信的工作，但他們有一段時間不在那裡。而且電話銷售團隊的能力有限。當然，我們能夠擴大電話銷售團隊的能力。我們已經有了一個模型。我們制定了一套程序，在新冠疫情期間進行了實際測試，一夜之間，我們就擴大了產能。面臨的挑戰是幾天的管道不夠大，無法接受所有訂單。

So now we can accept the orders. It will be much more efficient with direct customer entry through the website, and we expect that is going to result in customers coming back who had to maybe go elsewhere for urgent products. But I think a number of our customers, specifically some of the smaller ones held out. And I think they will come back and give us the orders that maybe they were holding on to. But it's going to take some time through the end of the fourth quarter for us to ensure that our systems are back to normal and in terms of the customers' thinking.

所以現在我們可以接受訂單了。客戶透過網站直接輸入會更加高效，我們預計這將導致那些可能不得不去其他地方購買緊急產品的客戶回來。但我認為我們的一些客戶，特別是一些較小的客戶堅持了下來。我認為他們會回來給我們下達他們可能一直堅持的命令。但到第四季末，我們需要一些時間來確保我們的系統恢復正常並符合客戶的想法。

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

我們的下一個問題來自賈森·貝德納 (Jason Bednar) 和派珀·桑德勒 (Piper Sandler) 的對話。

I wanted to ask, of the 85% to 90% that you're talking about, Stan and Ron, are there certain categories that have been slower to come back or certain geographies? Maybe bifurcate North America versus Europe or dental versus medical, just anything there? And then I have a follow-up.

我想問一下，史丹和羅恩，在你們所說的 85% 到 90% 的人中，是否有某些類別或某些地區的回歸速度較慢？也許將北美與歐洲或牙科與醫療分開，等等？然後我有一個後續行動。

I would say on balance, it's spread out reasonably. There are parts of the world where electronic ordering is not as large as, say, in the United States. So those customers have been more comfortable ordering through telesales representatives or field sales representatives. But it's more or less okay. Actually, on average, Europe is a little bit higher, although they actually don't have all the systems we have in the U.S.

我想說，總的來說，它的分佈是合理的。世界上有些地方的電子訂購規模並不像美國那麼大。因此，這些客戶更願意透過電話銷售代表或現場銷售代表訂購。但或多或少都還好。實際上，平均而言，歐洲要高一些，儘管他們實際上沒有我們在美國擁有的所有系統。

So I don't think you can read anything into that. This is a period when we started out with minimal systems on first day. And by the end of the third day, we had a lot of systems working. And then as the month went by, more and more systems came up. So it's been a period of the customers adjusting to what's available, some places that may be adjusted faster than others. But I don't think we can read anything into the first month of this incident, anything specific, yes, and some products are more elective than others aesthetic products or maybe products relating to like toothbrushes, et cetera. They're not necessarily that urgent.

所以我認為你無法解讀其中的任何內容。這是我們第一天從最小系統開始的時期。到第三天結束時，我們有很多系統正在運作。然後隨著時間的推移，越來越多的系統出現了。因此，這是客戶適應可用內容的時期，有些地方可能比其他地方調整得更快。但我認為我們無法解讀這一事件的第一個月的任何內容，任何具體的內容，是的，有些產品比其他美容產品或可能與牙刷等相關的產品更具選擇性。他們不一定那麼緊急。

So we'll see how this materializes. But I don't think, Jason, I wish we could give you some conclusive information. But there's too many puts and takes here to understand exactly whether these trends are related to particular products or regions. Let me remind you that our equipment business was operational throughout this period, did not have full support on systems. But manually if a customer needed service, they got it. Not all the equipment orders that we received are being installed right now. There will be a catch-up in the next couple of months.

所以我們將看看這是如何實現的。但我不認為，傑森，我希望我們能給你一些結論性的信息。但這裡有太多的推論和考量，無法準確理解這些趨勢是否與特定產品或地區有關。我要提醒大家的是，我們的設備業務是在這個時期運作的，並沒有得到系統的全面支援。但如果客戶需要服務，他們就會手動得到服務。目前，我們收到的所有設備訂單並未全部安裝完畢。在接下來的幾個月裡將會有一個迎頭趕上的情況。

We went into the period with a pretty decent backlog of equipment, partially driven by the very successful Dentsply Sirona World. So not all of that has been shipped as fast as we would have wanted to, not because we don't have the ability to install a new equipment but simply because it's just a bit more inefficient given the fact that certain of our equipment systems were not running and we're relying on a lot of manual systems.

當我們進入這段時期時，設備積壓相當可觀，部分原因是非常成功的 Dentsply Sirona World。因此，並非所有這些都按照我們希望的速度發貨，不是因為我們沒有能力安裝新設備，而只是因為考慮到我們的某些設備系統已損壞，效率有點低。沒有運行，我們依賴很多手動系統。

That's really helpful. And then as you think about -- I think a lot of you trying to tease out the exit rate/renewal what things look like in 2024. Out of that 10% to 15% where you're still operating below free cyber attack levels, any sense of like of that 10% to 15%, how many of those customers are under contract like large accounts within dental or medical or have your practice management software and the elements that would make it more sticky and really, I think, exemplify how value industry reattain a lot of the business that you expect you will.

這真的很有幫助。然後，當你思考時，我想你們中的很多人都在試圖弄清楚2024 年的退出率/續訂情況。在10% 到15% 的人中，你的操作仍然低於免費的網路攻擊水平， 10% 到15% 之類的感覺，其中有多少客戶簽訂了合同，例如牙科或醫療領域的大客戶，或者擁有您的實踐管理軟體以及使其更具粘性的要素，我認為，這確實舉例說明如何價值產業重新獲得許多您期望的業務。

Yes, Jason, I think that we do have -- our larger customers have really stuck with us through this, which we're very appreciative of that. And so we don't expect any significant attrition there. The 85% to 90% on the ordering, like I said before and as Stanley added, these are -- a lot of these are customers who are -- don't rely on FSCs, don't rely on our sales reps on the dental side. And so I think that's really the run rate that we'll be looking to improve as we go into '24, And we'll be able to reflect whatever our assumption there is in our '24 guidance when we provide that.

是的，傑森，我認為我們確實有——我們的大客戶確實透過這一點與我們保持了聯繫，我們對此非常感激。因此，我們預計不會有任何重大人員流失。 85% 到 90% 的訂單，就像我之前說過的，正如 Stanley 補充的那樣，這些——其中很多是客戶——不依賴 FSC，不依賴我們的銷售代表牙科一側。因此，我認為這確實是我們進入“24 年”時將尋求提高的運行率，當我們提供這一點時，我們將能夠反映“24 年”指南中的任何假設。

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

我們的下一個問題來自高盛的內森·里奇（Nathan Rich）。

I just wanted to follow up there on the cybersecurity incident. Have you had any issues with getting supplier product? I recall you mentioned something in the prepared remarks about some supplier accounts. Just wondering if that's had any impact on inventory. And from a balance sheet perspective, would you expect any impact on inventory levels in the near term or capital deployment in the near term just as you work through these issues?

我只是想跟進那裡的網路安全事件。您在取得供應商產品時遇到任何問題嗎？我記得您在準備好的評論中提到過一些關於某些供應商帳戶的內容。只是想知道這是否對庫存有影響。從資產負債表的角度來看，您預計在解決這些問題時會對近期庫存水準或近期資本部署產生任何影響嗎？

Yes, I think this is a good question, Nathan. We did not have E3 operating for -- I can't remember what it was, the first week. So we were buying based on historical data of about a month or so old. That system came up pretty quickly. There was some challenges in the receiving department because we didn't have the full software stored on the receiving side. But I would say other than maybe 1 or 2 actually suppliers that had concerns about corrupting their systems, we're back electronically ordering, even those of, I can think of 2 that I was involved with quickly removed any concern they had. And we've been buying product in an orderly way.

是的，我認為這是一個很好的問題，內森。我們沒有舉辦 E3 活動——我不記得第一週是什麼了。因此，我們根據大約一個月左右的歷史數據進行購買。該系統很快就出現了。接收部門面臨一些挑戰，因為我們沒有在接收端儲存完整的軟體。但我想說，除了可能有 1 或 2 個擔心破壞他們的系統的供應商之外，我們又重新以電子方式訂購，甚至我能想到的 2 個供應商很快就消除了他們的任何擔憂。我們一直在有秩序地購買產品。

I will say that on some manufacturers, we went into the quarter with very good inventory for multiple reasons. But essentially, our suppliers have been very helpful. We've gotten the product we need. We may have slightly increased inventories in certain areas. But Ron can address the balance sheet, per se. But essentially, I will have to say the support we've gotten from our manufacturers has been truly remarkable. Some that helped us with drop shipments maybe in the first week or 2. We felt we wanted to lighten up our load in our warehouses, but it wasn't needed. We just took that as a precaution.

我想說的是，對於一些製造商來說，由於多種原因，我們進入本季時庫存非常充足。但本質上，我們的供應商非常有幫助。我們已經得到了我們需要的產品。我們可能會略微增加某些地區的庫存。但羅恩本身可以解決資產負債表問題。但本質上，我不得不說我們從製造商那裡得到的支援確實非常出色。有些可能會幫助我們在第一週或第二週內進行直接出貨。我們覺得我們想減輕倉庫的負載，但沒有必要。我們只是將此作為預防措施。

Yes. Nathan, just to add to Stanley's remarks, I don't expect this to have a significant impact on our inventory levels. The one area we could see a little bit of impact, and we've baked some assumptions into our Q4 guidance on this, is the -- it could reduce our rebates a little bit because our rebates are largely -- are primarily now, especially in North America, our sellout rebates as opposed to purchasing rebates. So to the extent that we do not recover some of the sales in the fourth quarter could impact our rebates in the fourth quarter.

是的。內森（Nathan），補充一下史丹利的言論，我預計這不會對我們的庫存水準產生重大影響。我們可以看到一點影響的一個領域，我們已經在第四季度的指導中加入了一些假設，那就是——它可能會稍微減少我們的回扣，因為我們的回扣主要是——現在，尤其是在北美，我們的銷售回饋與採購回饋不同。因此，如果我們沒有恢復第四季的部分銷售額，可能會影響我們第四季的回扣。

In terms of capital deployment, I don't really see any change. The balance sheet is strong, remains strong going into this incident and strong coming out of the incident. I don't see any significant changes in how we're deploying capital as a result of this.

在資本配置方面，我確實沒有看到任何變化。資產負債表很強勁，在事件發生前和事件結束後仍然強勁。我認為我們的資本配置方式不會因此而有任何重大變化。

Great. And if I could just follow up quickly, I think it was Jeff's question earlier, just on the outlook for the dental business. I think the revised revenue range didn't really incorporate a significant impact from the macro environment. And I guess I'm just wondering if we should interpret this as the variability that you saw, whether it was patient traffic or equipment sales in certain international markets just hasn't been significant enough to kind of change your view of the overall trajectory of the end market at this point.

偉大的。如果我能快速跟進，我認為這是傑夫早些時候提出的問題，只是關於牙科業務的前景。我認為修訂後的收入範圍並沒有真正納入宏觀環境的重大影響。我想我只是想知道我們是否應該將其解釋為您所看到的變化，無論是某些國際市場的患者流量還是設備銷售，都不足以改變您對總體軌蹟的看法此時的終端市場。

Yes. Nathan, I think if you think back to our Investor Day last February, for example, our dental assumption then was, say, in the 2% to 4% range in terms of long-term growth. I think it's probably fair to say we're trending closer to the lower end of that range. And I think that in terms of dental specialties which is included within our dental merchandise numbers that we provide, as we mentioned in the prepared remarks, there have been some -- there is some softness in the end markets on implants that I think is probably pushing some of that dental specialty growth that we would like to get more towards the lower end of that range as well.

是的。內森，我想，如果你回想一下去年二月的投資者日，我們當時的牙科假設是，比如說，就長期增長而言，在 2% 到 4% 的範圍內。我認為可以公平地說，我們正在接近該範圍的下限。我認為，就我們提供的牙科商品數量中包含的牙科專業而言，正如我們在準備好的評論中提到的那樣，植體的終端市場存在一些疲軟，我認為這可能是推動一些牙科專業的成長，我們也希望將其進一步推向該範圍的下限。

So I would suspect as we get -- as we sit down to try to finalize our 2024 numbers, while we still feel good in the long term about those growth trends, we could see '24 trending into something that would be more towards the lower end of that range.

因此，我懷疑，當我們坐下來嘗試最終確定 2024 年的數字時，雖然從長遠來看我們對這些成長趨勢仍然感覺良好，但我們可能會看到 24 年的趨勢會更加趨向於較低水平。該範圍的末端。

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

我們有時間回答瑞銀凱文·卡利恩多 (Kevin Caliendo) 提出的最後一個問題。

How much -- prior to the cyber attack, how much of your revenues typically went through the e-commerce platform, just broadly speaking? I'm guessing it was more than 10% to 15%, right?

一般來說，在網路攻擊之前，您的收入中有多少通常是透過電子商務平台進行的？我猜應該超過 10% 到 15%，對嗎？

Yes, much more.

是的，還有更多。

No, absolutely, absolutely, Kevin. So if you take EDI plus the web combined, so essentially electronics type of ordering is in the 70% to 75% range. Well, I think the 85% to 90% are the orders we're talking about, kind of that missing 10% to 15%, we think, is largely attributable to customers who exclusively ordered electronically and did not have a rep. They didn't want a rep. They perhaps use multiple distributors. And so because they didn't have a rep who could assure that they were getting the product that they wanted, they simply ordered from someone else. So I think that's the question, is how much of that business can we get back. That's what we're working to get back.

不，絕對，絕對，凱文。因此，如果將 EDI 與網路結合，那麼電子類型的訂購基本上在 70% 到 75% 的範圍內。嗯，我認為 85% 到 90% 是我們正在談論的訂單，我們認為缺少 10% 到 15% 的訂單很大程度上歸因於專門透過電子方式訂購且沒有代表的客戶。他們不需要代表。他們可能使用多個經銷商。因此，因為他們沒有代表可以保證他們得到他們想要的產品，所以他們只是從其他人那裡訂購。所以我認為這就是問題所在，我們能收回多少業務。這就是我們正在努力恢復的。

Okay. That's helpful. I just wanted to understand the Venn diagram here, who we were talking about...

好的。這很有幫助。我只是想了解這裡的維恩圖，我們在談論誰...

Yes. A lot of those others were able to -- through their rep or otherwise, were able to place orders through our telesales channel, or their rep was able to make sure that their order got put in accurately and completely.

是的。許多其他人能夠透過他們的代表或其他方式透過我們的電話銷售管道下訂單，或者他們的代表能夠確保他們的訂單準確完整地下達。

And I appreciate the commentary around the lower end, and that even sounds better than many of your peers have spoken publicly on the trends that they're seeing in October and November for the fourth quarter. What -- I sort of want to ask Stanley this question, just big picture. What do you think is actually driving the slowdown in demand in dental, even if you guys aren't seeing it as acutely as maybe some of the others probably because of mix, probably because of your own positioning?

我很欣賞圍繞低端的評論，這甚至聽起來比許多同行公開談論他們在 10 月和 11 月看到的第四季度趨勢更好。什麼——我有點想問史丹利這個問題，只是大局。您認為實際上是什麼導致了牙科需求的放緩，即使您沒有像其他一些人那樣敏銳地看待它，可能是因為混合，可能是因為您自己的定位？

But how often have you seen this kind of macro environment, how long do you think it lasts? What do you think is causing at this time? Just love to hear your take on that and how long do you think it lasts for.

但這種宏觀環境你見過多少次，你認為它會持續多久？您認為此時是什麼原因造成的？只是想聽聽您對此的看法以及您認為它會持續多久。

Yes. Certainly good questions here today. The third quarter, September in the U.S., we saw sales of consumables going down. There's patient data from the ADA, but it's very hard to pinpoint this exactly. How much of that amount going down was because of a switch to maybe some generics a little bit. How much was the result of price resistance because prices have gone up. There's a little bit of that in there, too. How much was because of flu and COVID.

是的。今天的問題當然很好。第三季度，即美國的 9 月份，我們看到消耗品的銷售下降。 ADA 有患者數據，但很難準確地確定這一點。其中有多少數量的下降是因為稍微改用了一些仿製藥。有多少是因為價格上漲而導致價格阻力的結果。裡面也有一點這樣的內容。有多少是因為流感和新冠肺炎。

We're not talking about many hundreds of basis points. We're at the margin, yes. And to conclude anything from September and the first 2 weeks of October is very hard for us to pinpoint a clear direction. What we've seen in the past is the sales of consumables may go down for quarters, but doesn't last much longer than that. And it's a strange recession. It seems like, on the one hand, the consumer is resisting. On the other hand, retail sales don't seem like a disaster. I mean, they've not been great. But I think we're talking about at the margin.

我們談論的不是數百個基點。是的，我們處於邊緣。要總結 9 月和 10 月前兩週的情況對我們來說很難確定一個明確的方向。我們過去看到的是，消耗品的銷售量可能會下降幾個季度，但持續的時間不會太長。這是一次奇怪的衰退。一方面，消費者似乎正在抵制。另一方面，零售銷售似乎不是一場災難。我的意思是，他們表現不佳。但我認為我們談論的是邊緣。

In Europe, there is government support. So it's not going to be as elastic. But there is a little bit of concern with the geopolitical environment. Although when we look at Germany, it's not terrible. I would say there's been on the equipment side some resistant to -- resistance to more expensive equipment and there's been a switch to less expensive equipment. It doesn't really impact that much -- have such a huge impact on us. The gross profit may be a little bit less.

在歐洲，有政府的支持。所以它不會那麼有彈性。但人們對地緣政治環境有些擔憂。儘管當我們看看德國時，它並不可怕。我想說的是，在設備方面，人們對更昂貴的設備存在一些抵制，並且已經轉向更便宜的設備。它實際上並沒有那麼大的影響——對我們來說卻有如此巨大的影響。毛利可能會少一點。

But generally, there are so many other variables on the equipment side that I can't say for sure that the trends in Europe on equipment are going to significantly impact our profitability of our equipment business. In fact, there's more -- much more money to be made on the efficiency of our service network. So we're talking about at the margin here in terms of consumables. Equipment in North America is the one area I didn't cover yet.

但總的來說，設備方面還有很多其他變量，我不能肯定地說歐洲設備的趨勢將顯著影響我們設備業務的獲利能力。事實上，我們的服務網絡的效率還可以帶來更多的利潤。所以我們在這裡談論的是消耗品的邊際。北美的設備是我尚未涉及的一個區域。

Traditional equipment is pretty stable. Digital, there is, of course, switching to some newer devices at lower price. So there's some volatility there, but there's also good demand for the digital equipment. I'm talking about the IO devices. On the mills, it's not 100% switch between mills and 3D printing, although 3D printing is doing very well. I expect that at some point, we will see 3D printing be adopted by more DSOs that won't be necessarily a sequential increase, but there could be lumpiness in that.

傳統設備相當穩定。當然，數位化也意味著以更低的價格轉向一些更新的設備。因此存在一些波動，但對數位設備的需求也很大。我說的是IO設備。在工廠中，雖然 3D 列印做得很好，但工廠和 3D 列印之間並不是 100% 切換。我預計在某個時候，我們將看到更多 DSO 採用 3D 列印，這不一定會連續增加，但其中可能會出現波動。

So I'm just giving you a number of factors to draw a conclusive summation of all of that or a conclusive one consolidated number is very difficult to give you. But in my experience, been around a long time, these consumable trends on the negative side don't last long, and I'm talking about dental. On the medical, the demand is still pretty good in the ultimate care setting, many more procedures moving from the hospital. I wouldn't read anything into our specific growth for the quarter other than to take into account last year, we had almost, I think, 9.5% or almost 10% growth. So you average it out maybe 4% to 5%, 5% to 6%. So the business is relatively stable, which is a good place to conclude the call. Is that correct?

所以我只是給你一些因素來得出所有這些因素的結論性總和，或者很難給你一個結論性的綜合數字。但根據我的經驗，長期以來，這些消費品趨勢的負面影響不會持續很長時間，我說的是牙科。在醫療方面，終極護理環境的需求仍然相當不錯，更多的手術從醫院轉移。除了考慮到去年，我不會對本季的具體成長進行任何解讀，我認為我們幾乎成長了 9.5% 或幾乎 10%。所以你平均可能是 4% 到 5%、5% 到 6%。所以業務比較穩定，是結束通話的好地方。那是對的嗎？

So thanks for that question. Operator, let me just say a few things before we end. The business, in general, we have good branding. We have a good strategic plan. Our IT people and the team came through in a remarkable way. At some point, we're going to have to deal with cyber threats as a country, as a world. It's one of the top concerns on CEO's list, and we're going to have to put much more money into law enforcement in this area. Law enforcement has been extremely collaborative, cooperative.

謝謝你提出這個問題。接線員，在結束前我先說幾句話。總的來說，我們的業務有良好的品牌。我們有一個很好的策略計劃。我們的 IT 人員和團隊取得了非凡的成就。在某些時候，我們將不得不作為一個國家、作為一個世界來應對網路威脅。這是執行長最關心的問題之一，我們將不得不在這一領域的執法方面投入更多資金。執法部門一直非常協作、合作。

But this is a new area. And it's not brand new, but the number of attacks is increasing significantly each month. And I think the way our team handled it, brought down the systems, the backups are working, built it up application by application, verified that the data that was being put live, activated live was good and was safe. Just unfortunately it takes time. But I think we've dealt with it in a pretty expeditious way. And I believe, from a high quality point of view, great advisers, the Board that is quite experienced in this arena, 2 Board members that have direct experience in this area that, of course, have been advising us for several years.

但這是一個新領域。它並不是全新的，但攻擊數量每個月都在顯著增加。我認為我們團隊處理它的方式，關閉系統，備份正常工作，逐個應用程式建立它，驗證正在上線、即時啟動的資料是否良好且安全。只是不幸的是這需要時間。但我認為我們已經以相當迅速的方式處理了這個問題。我相信，從高品質的角度來看，偉大的顧問、在這個領域經驗豐富的董事會、以及在該領域擁有直接經驗的兩名董事會成員，當然，他們多年來一直為我們提供建議。

And our BOLD+1 plans are still in place. The Henry Schein One continues to do very well. Expect the clinical workflow area to do very nicely, artificial intelligence is, I think, will gain acceptance within the DSO movement in the not-too-distant future. I think we have a winning product offering in that regard. The equipment is stable. I've given you our thoughts on consumables.

我們的 BOLD+1 計劃仍然有效。 Henry Schein One 繼續表現出色。我認為，臨床工作流程領域預計會做得非常好，人工智慧將在不久的將來在 DSO 運動中獲得認可。我認為我們在這方面擁有成功的產品。設備穩定。我已經向您提供了我們對消耗品的想法。

And we now just need to complete, bringing up all of our systems and then ensuring that our recovery from a customer point of view is executed well. Our sales force is ready to go into the field and to advance our recovery. And our telesales people are doing the same. And our digital team are also activating customers from that point of view.

我們現在只需要完成，啟動我們的所有系統，然後確保我們從客戶角度的恢復中得到良好的執行。我們的銷售人員已準備好進入現場並推進我們的復甦。我們的電話銷售人員也在做同樣的事情。我們的數位團隊也在從這個角度激活客戶。

So I thank investors for your patience. I wish we didn't have to go through this, but the organization came through in an enormous way and the support we've received from our customers in the industry has really been phenomenal.

所以我感謝投資人的耐心等待。我希望我們不必經歷這一切，但該組織以巨大的方式度過了難關，我們從行業客戶那裡得到的支持確實是驚人的。

So thank you very much. We'll be back with our fourth quarter numbers, I believe, report end of February, mid-February. And I think our filings with the SEC, although a little -- an aspect of it has been delayed for a few weeks, it will be on time. And thank you very much for your patience.

非常感謝。我相信，我們將在二月底、二月中旬報告第四季的數據。我認為我們向美國證券交易委員會提交的文件，雖然有一點——其中一個方面已經推遲了幾週，但它會按時完成。非常感謝您的耐心等待。

And ladies and gentlemen, this concludes today's teleconference. You may disconnect your lines at this time. Thank you for your participation.

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。