漢瑞祥 (HSIC) 2024 Q2 法說會逐字稿

Good morning, ladies and gentlemen, and welcome to Henry Schein's second-quarter 2024 earnings conference call. (Operator Instructions) As a reminder, this call is being recorded.

早安，女士們、先生們，歡迎參加 Henry Schein 的 2024 年第二季財報電話會議。 （操作員說明）謹此提醒，此通話正在錄音。

I would now like to introduce your host for today's call, Graham Stanley. Henry Schein's, Vice President of Investor Relations and Strategic Financial Project Officer. Please go ahead, Graham.

現在我想介紹今天電話會議的主持人格雷厄姆·斯坦利。 Henry Schein's，投資者關係副總裁兼策略財務專案長。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 2024. 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.

謝謝運營商，也感謝你們每個人加入我們討論 Henry Schein 2024 年第二季度的財務業績。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 including information that is forward looking. Risks and uncertainties involved in the company's business may affect the matters referred to in forward-looking statements, and the company's performance may materially differ from those expressed in or indicated by such statements.

在開始之前，我想聲明本次電話會議期間發表的某些評論包括前瞻性資訊。本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，公司的業績可能與此類陳述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 upon the company's internal analysis and estimates. 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 the business enable the comparison of financial results between periods where certain items may vary independently of business performance and allow for greater transparency with respect to key metrics used by management in operating our business.

此外，有關我們所服務的市場的所有評論，包括終端市場成長率和市場份額，均基於公司的內部分析和估計。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。我們認為，非公認會計原則財務指標為投資者提供了有關企業財務業績的有用補充信息，使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，並允許在企業使用的關鍵指標方面提高透明度。

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 & Filings section of our Investor Relations website under the supplemental information heading.

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。

And in our quarterly earnings presentation also posted on our Investor Relations website. The content of this conference call contains time-sensitive information that is accurate only as of the date of the live broadcast, August 6, 2024. Henry Schein undertakes no obligation to revise or update any forward-looking statements to reflect events or circumstances after the date of this call.

我們的季度收益報告也發佈在我們的投資者關係網站上。本次電話會議的內容包含時間敏感信息，僅截至直播日期（2024 年 8 月 6 日）準確。通話的日期。

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.

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，我想把電話轉給史丹利·伯格曼。

Good morning, and thank you, Graham. Thank you all for joining us today. We delivered solid second quarter financial results, including strong operating cash flow that reflected stable end markets. Gross margin has continued to increase, driven by our strategies to expand our high growth, high margin products and services and by the successful performance of our recent acquisitions.

早上好，謝謝你，格雷厄姆。感謝大家今天加入我們。我們交付了穩健的第二季財務業績，包括強勁的營運現金流，反映出穩定的終端市場。在我們擴大高成長、高利潤產品和服務的策略以及我們最近收購的成功業績的推動下，毛利率持續成長。

We are experiencing improving sales trends in our distribution businesses. However, the pace of recovery since the cyber incident last year has been slower than anticipated. Now given the challenging economic environment, we'll talk about a little bit later in certain markets as well as this delay in cyber incident recovery, we are updating our '24 full year financial guidance.

我們的分銷業務的銷售趨勢正在改善。然而，自去年網路事件以來，恢復速度慢於預期。現在，考慮到充滿挑戰的經濟環境，我們將在稍後討論某些市場以及網路事件恢復的延遲，我們正在更新我們的「24 全年財務指引」。

We remain committed to our long-term financial goals through our advancement of the BOLD+1 Strategic Plan, which has stood us well supported by a strong balance sheet and new restructuring plan. As we continue to generate synergies by connecting our distribution businesses, specialty products and technology and value added services.

我們繼續致力於透過推進 BOLD+1 策略計劃來實現我們的長期財務目標，強勁的資產負債表和新的重組計劃為我們提供了強有力的支持。我們繼續透過連接我們的分銷業務、特色產品和技術以及增值服務來產生協同效應。

We continue to see great symbiotic relationships between our various businesses. We are also announcing a restructuring plan to integrate recent acquisitions and right-size operations and further increase efficiencies targeting somewhere between $75 million to $100 million annual savings. We are comfortable that we will continue after this restructuring plan is put in place with improving operating margins and we are increasing at the same time our repurchase authorization following recent Board approval an additional $500 million as we expect to leverage the strong cash flow we have.

我們繼續看到我們各個業務之間存在著良好的共生關係。我們還宣布了一項重組計劃，以整合最近的收購和適當規模的運營，並進一步提高效率，目標是每年節省 7,500 萬至 1 億美元。我們感到放心的是，在這項重組計劃實施後，我們將繼續下去，提高營業利潤，同時，在董事會最近批准額外5 億美元後，我們將同時增加回購授權，因為我們希望利用我們擁有的強勁現金流。

So let me turn to the various business units. dental distribution to start with. In North America, patient traffic was generally flat with the prior quarter with unemployment rates, dental insurance coverage generally remaining consistent with prior periods. We are experiencing improving sales trends in our dental distribution businesses, and we believe we gained market share in the quarter as we strengthened focus on gaining back episodic customers following the cyber incident.

那麼讓我談談各個業務部門。首先是牙科分佈。在北美，患者流量整體與上一季持平，失業率、牙科保險覆蓋範圍整體與上一季保持一致。我們的牙科分銷業務的銷售趨勢正在改善，我們相信，隨著我們在網路事件後加強關注重新贏得偶發客戶，我們在本季度獲得了市場份額。

Having the pace of recovery since the cyber incident late last year, has been slower than anticipated. We reported a year-over-year decline in merchandise sales, which reflects the pace of recovery and of course, lower sales of PPE products, which are primarily the result of lower lumber prices. Membership in the Thrive signature program continued to increase with nearly 1,500 new members added in the second quarter, bringing the total membership to approximately [6,000] US dental practices.

自去年年底網路事件以來，恢復速度比預期要慢。我們報告商品銷售年減，這反映了復甦的步伐，當然也反映了個人防護裝備產品銷售的下降，這主要是木材價格下降的結果。 Thrive 簽名計畫的會員數量持續增加，第二季新增近 1,500 名會員，使美國牙醫診所的會員總數達到約 [6,000] 家。

The subscription based program drives customer loyalty and has been very good again in driving stickiness to our various businesses, whether it's distribution, specialty products or for that matter, specialty services. We were pleased with our North American dental equipment sales growth, this reflected positive trends across the board, traditional equipment, digital imaging, CAD/CAM and parts and services.

基於訂閱的計劃提高了客戶忠誠度，並且再次很好地提高了我們各種業務的黏性，無論是分銷、專業產品還是專業服務。我們對北美牙科設備銷售成長感到滿意，這反映了傳統設備、數位影像、CAD/CAM 以及零件和服務的全面正面趨勢。

We achieved modest growth in international dental merchandise sales driven by good growth in the Gulf countries and in Brazil. International dental equipment sales were impacted by a decrease in sales in France as a result of changes in the DSO legislation, a generally slow equal economic -- generally slow equipment market in Italy and the expiration of tax incentives last year in Australia with other markets generally in line with last year.

在海灣國家和巴西的良好成長的推動下，我們的國際牙科商品銷售實現了小幅成長。國際牙科設備銷售受到 DSO 立法變化導致法國銷售下降、義大利設備市場整體緩慢平等以及澳洲去年稅收優惠政策到期以及其他市場普遍緩慢的影響。

Given demographic trends, we expect patient demand to outpace the supply of dental services for seniors for a while and for this to drive further efficiency need in dental practices, which you expect to be a positive driver in the growth of our dental businesses all fitting in the Gulf with the BOLD+1 Strategic Plan. Now let's take a look at dental specialties. Shifting to our dental specialties business, sales growth in the quarter was generally consistent with the pace of growth in the first quarter as acquisitions and organic growth in Europe were offset by lower sales in North America.

鑑於人口趨勢，我們預計患者需求將在一段時間內超過老年人牙科服務​​的供應，這將進一步推動牙科診所的效率需求，您預計這將成為我們牙科業務增長的積極推動力海灣地區的BOLD+1戰略計劃。現在我們就來看看牙科專業吧。轉向我們的牙科專業業務，本季的銷售成長與第一季的成長速度基本一致，因為歐洲的收購和有機成長被北美銷售的下降所抵消。

In Europe, sales of dental implant products posted solid growth as we continued to gain market share with a broad -- with our broad and highly competitive offering. Within North America, we received FDA approval to launch the [bone level tapered clinical implant] in mid-June. This was a bit later than we expected, and we believe this timing impacted the quarter two sales growth as some customers build back on purchases in anticipation of the launch of this important new product, we expect dental implant sales growth in North America to resume in the third quarter, aided by this new product line.

在歐洲，隨著我們憑藉廣泛且極具競爭力的產品繼續獲得廣泛的市場份額，牙植體產品的銷售實現了穩健成長。在北美，我們於 6 月中旬獲得 FDA 批准推出[骨骼水平錐形臨床植體]。這比我們預期的要晚一些，我們認為這一時機影響了第二季度的銷售增長，因為一些客戶預計這一重要新產品的推出而減少了購買，我們預計北美的牙種植體銷售增長將在2019 年恢復成長。

As a reminder, the type of pro clinical business positions us to provide an innovative, highly competitive offering for the half of the US dental implant market we weren't previously addressed and the initial feedback we are seeing from customers is quite positive, and we look forward to reporting on our progress in future calls.

提醒一下，專業臨床業務的類型使我們能夠為我們之前沒有解決過的美國牙種植體市場的一半提供創新的、極具競爭力的產品，並且我們從客戶那裡看到的初步反饋非常積極，我們期待在未來的電話會議中報告我們的進展。

Our endodontic business continued to grow, aided by small acquisition we made in Latin America. The focus for the downticks last quarter was the launch of the biotech smile at Clear Aligner into the US market. Again, our orthodontic business is very, very small relative to the entire specialty business. Now, it's important for our investors to understand, we continue to align our dental sales team's successfully deepening our penetration of the DSO's segment last quarter across our specialties.

由於我們在拉丁美洲進行的小額收購，我們的牙髓業務持續成長。上個季度下降的焦點是 Clear Aligner 向美國市場推出生物技術微笑產品。同樣，相對於整個專業業務，我們的矯正業務非常非常小。現在，我們的投資者必須了解，我們將繼續調整我們的牙科銷售團隊，上季度成功加深了我們對 DSO 細分市場的滲透。

It's the distribution side, working in concert with the specialty businesses and the value-added services that are creating great value for our customers and in turn for the profitability of Henry Schein. So now, let's turn to the technology and value-added services and Henry Schein one, which is our dental software business.

分銷方面與專業業務和增值服務協同工作，為我們的客戶創造了巨大的價值，進而為 Henry Schein 的盈利能力創造了價值。現在，讓我們轉向技術和增值服務以及 Henry Schein 之一，即我們的牙科軟體業務。

The customer base for our Dentrix-Ascend and our Dentally cloud-based solutions continues to grow during the second quarter and was up more than 25% year over year with well -- with now worldwide installations exceeding 8,000. What I think is important to understand is when we in the past when we sold software, we recognize sale on-prem software right away.

我們的 Dentrix-Ascend 和 Dentally 基於雲端的解決方案的客戶群在第二季度持續成長，年成長超過 25%，目前全球安裝量已超過 8,000 個。我認為重要的是要理解，當我們過去銷售軟體時，我們會立即識別銷售本地軟體。

We are switching rapidly to cloud-based solutions, which are highly profitable in the long run and retention rate is great, but you don't recognize the full sale at the full revenue at the time of the sale. These cloud-based practice management software products of both the cornerstone of Henry Schein One and at the same time, a powerful enabler of additional product sales and equipment merchandise at the Henry Schein level as well as driving specialty products through the nemotech software that is now being advanced in sales.

我們正在迅速轉向基於雲端的解決方案，從長遠來看，這種解決方案利潤豐厚，保留率也很高，但您在銷售時並不能以全部收入來確認全部銷售。這些基於雲端的實踐管理軟體產品既是 Henry Schein One 的基石，同時也是 Henry Schein 級別附加產品銷售和設備商品的強大推動者，並透過現在已推出的 nemotech 軟體驅動專業產品。

The number of claims processed by our revenue cycle management claims business increased by single digit percentages versus the prior year. Now this is despite the change of care cyber incident and the normal circumstances, we would have expected the greater growth. But the change healthcare cyber incidents has slowed us down we are servicing our customers there's no interruption from that point of view, but there is some impact on the cash collection of our customers because changed the process, the actual payment we process through change the claims processing, we found an alternative source that the actual check of electronic transfer to the customer funds is still going to change.

我們的收入週期管理索賠業務處理的索賠數量與上一年相比增加了個位數百分比。現在，儘管護理網絡事件和正常情況發生了變化，我們還是預計會有更大的增長。但是醫療保健網路事件的變化減慢了我們的速度，我們為客戶提供的服務從這個角度來看沒有中斷，但對我們客戶的現金收取有一些影響，因為流程發生了變化，我們透過更改索賠處理在實際的付款處理中，我們發現了一個替代來源，即電子轉帳到客戶資金的實際檢查仍然會發生變化。

Some dental practices are therefore, facing cash flow challenges due to reimbursement delays and we believe this continued to temporarily impact demand for certain software products. And we think a little bit also on the equipment side businesses -- we believe a temporary cash flow issue which will get resolved that never impact -- that (inaudible) really impact our collections of our receivables, but it is a bit of a challenge to some practices that are not getting the checks as frequently as they were the claims are being processed.

因此，一些牙科診所因報銷延遲而面臨現金流挑戰，我們認為這將繼續暫時影響某些軟體產品的需求。我們也對設備方面的業務進行了一些思考- 我們相信臨時現金流問題將得到解決，永遠不會產生影響- 這（聽不清）確實會影響我們的應收賬款收款，但這是一個挑戰對於一些沒有像以前那樣頻繁收到檢查的診所，索賠正在處理中。

The collaboration between Henry Schein One and our Distribution and Specialty Products businesses supports highly integrated solutions, enables deeper customer relationships and multiple touch points between Henry Schein and our dental customers, which helps drive growth, as I mentioned earlier, and this is especially the case with the DSO segment, although, as we move towards our 2025 strategic plan, we will drive the synergy down into the smaller accounts.

Henry Schein One 與我們的分銷和專業產品業務之間的合作支援高度整合的解決方案，使Henry Schein 與我們的牙科客戶之間能夠建立更深入的客戶關係和多個接觸點，這有助於推動成長，正如我之前提到的，情況尤其如此不過，隨著我們向 2025 年戰略計劃邁進，我們將在 DSO 領域將協同作用深入到較小的客戶中。

Many of a high quality leads for Dentrix products and services are generated by the US dental field sales representatives and by the way, this is the case not only in the US, but in Canada and in all the markets abroad where Henry Schein One operates. There are few further examples of the integration, nemotech the specialty software, that was developed by biotech in France is now integrated with our Dentrix practice management software in the US, providing, as we discussed during our Investor Day, the integrated three click digital workflow software for implants and orthodontics.

Dentrix 產品和服務的許多高品質銷售線索都是由美國牙科現場銷售代表產生的，順便說一句，這種情況不僅在美國，而且在加拿大以及 Henry Schein One 運營的所有海外市場都是如此。還有一些進一步的整合範例，nemotech 是由法國生物技術公司開發的專業軟體，現已與我們在美國的Dentrix 實踐管理軟體集成，正如我們在投資者日期間討論的那樣，提供集成的三鍵數字工作流程用於種植和正畸的軟體。

This is being recognized by some of the big DSOs as very, very important. We have implementation of some of the big DSOs, and we expect this to advance further advancing Henry Schein's strength and connectivity to these DSOs and again, will overtime advance the smaller practices.

一些大型 DSO 認識到這一點非常非常重要。我們已經實施了一些大型 DSO，我們預計這將進一步提升 Henry Schein 的實力和與這些 DSO 的連接性，並將再次推動較小的實踐。

We also expanded our solutions offering, but pairing Dentrix detect AI that's our the AI system -- clinical AI system result powered by video help and an early carries protection solution with a terrific current product (inaudible) and early carries treatment product. We're also having early success with the recent launch of reserve Google.

我們也擴展了我們的解決方案，但將Dentrix 檢測AI 與我們的AI 系統— 由視訊幫助和早期攜帶保護解決方案提供支援的臨床AI 系統結果與出色的當前產品（聽不清楚）和早期攜帶治療產品配對。我們最近推出的 Reserve Google 也取得了早期成功。

All of these are being well received, buy the most sophisticated, larger DSOs. And we will say we are quite optimistic. That's the video (inaudible) solution will become standard of care over time in many practices. So these are some of the examples of the unique strength of our combined platform, and we continue to unlock benefits and value from the interconnectivity -- the interconnectedness across our business, all of this is contained in our strategic plan thinking.

所有這些都受到好評，購買最先進、更大的 DSO。我們會說我們非常樂觀。隨著時間的推移，視訊（聽不清楚）解決方案將成為許多實踐中的護理標準。這些是我們聯合平台獨特優勢的一些例子，我們繼續從互聯性中釋放利益和價值——我們整個業務的互聯性，所有這些都包含在我們的策略規劃思維中。

Let me just now quickly return -- to now quickly turn to our medical group. Second quarter sales also reflect the slower than anticipated pace of recovery from the cyber incident. In addition, sales were impacted by ongoing migration to generic alternatives for certain branded pharmaceuticals and particularly in the injectable area where we have very strong market presence (inaudible) there was a decline in sales of PPE products yeah, or primarily result of lower pricing -- (inaudible) pricing.

讓我剛才快速返回——現在快速轉向我們的醫療組。第二季的銷售額也反映出網路事件的復原速度慢於預期。此外，銷售受到某些品牌藥品持續轉向通用替代品的影響，特別是在我們擁有非常強大的市場影響力的注射領域（聽不清楚），個人防護裝備產品的銷售下降了，是的，或者主要是由於定價較低 - -（聽不清楚）定價。

As with the dental distribution business, we continued to win back episodic medical customers and in particular large accounts that moved from -- moved their prescription drug business to other distributors, primarily the drug distributors. Once the customers understand our unique logistics capabilities they are moving back, it takes time that may enter into commitments.

與牙科分銷業務一樣，我們繼續贏回間歇性醫療客戶，特別是那些將處方藥業務轉移到其他分銷商（主要是藥品分銷商）的大客戶。一旦客戶了解了我們獨特的物流能力，他們就會回遷，可能需要時間才能做出承諾。

And I think although this is slower than anticipated, we will get these customers back. Excluding the impact of point-of-care diagnostic tests, which were impacted by flu seasonality. So the quarterly sequence of the flu diagnostic testing moving from one quarter to another did have an impact on the quarter. But sequentially, medical sales growth is improving -- excuse me.

我認為雖然這比預期慢，但我們會重新獲得這些客戶。不包括受流感季節性影響的即時診斷測試的影響。因此，流感診斷測試的季度順序從一個季度轉移到另一個季度確實對該季度產生了影響。但隨後，醫療銷售成長正在改善——請原諒。

Our home solutions business again performed well with sales up double digit percentage during the quarter, led by the shield self-care prism medical businesses. We're particularly pleased with shield and it's being well received since we acquired the majority interest in last October. So although our home -- overall home care sales volumes are still relatively modest, this is a strategically important market for us. And together with the movement of procedures to the ASC, the ambulatory surgical center represents enormous growth opportunity for Henry Schein.

在盾牌自助棱鏡醫療業務的推動下，我們的家庭解決方案業務再次表現良好，本季銷售額成長了兩位數百分比。我們對 Shield 特別滿意，自去年 10 月獲得多數股權以來，它受到了好評。因此，儘管我們的家庭整體家庭護理銷售仍然相對較小，但這對我們來說是一個具有重要戰略意義的市場。隨著手術轉移到 ASC，門診手術中心為 Henry Schein 帶來了巨大的成長機會。

So let me conclude my remarks -- by opening remarks before Ron takes over with the specific, map, we believe -- excuse me, we believe we delivered a solid second quarter financial results, again, including strong operating cash flow.

因此，讓我在羅恩接任之前以具體的地圖開始我的講話，我們相信，對不起，我們相信我們再次實現了穩健的第二季度財務業績，包括強勁的運營現金流。

And although in the short term, expect our results to be impacted by the challenging economic environment in certain markets. You have in dentistry experienced these kinds of ups and downs over the years. This one seems to be a little bit more of a challenge. And of course, with the anticipated recovery from the cyber incident has been slower.

儘管在短期內，預計我們的業績將受到某些市場充滿挑戰的經濟環境的影響。多年來，您在牙科行業經歷了這些起起落落。這似乎是一個更大的挑戰。當然，預計從網路事件中恢復的速度會更慢。

But consistent every month, we get a little bit better. So we remain bullish about the prospects for the business in general, of course, we'll get into more details. But before we get into answering questions, let me ask Ron to discuss our quarterly financial results and '24 guidance with a little bit greater detail. So thank you, everyone. Ron, please.

但每個月都保持一致，我們會變得更好一點。因此，我們總體上仍然看好該業務的前景，當然，我們將了解更多細節。但在我們開始回答問題之前，讓我請 Ron 更詳細地討論我們的季度財務表現和 24 年指引。謝謝大家。羅恩，請。

Thank you, Stanley, and good morning, everyone. As we begin, I'd like to point out that I will be discussing our results as reported on a GAAP basis and also on a non-GAAP basis. All items excluded from our second quarter non-GAAP financial results for 2024 and 2023 are detailed in Exhibit B of today's press release. A reconciliation of our GAAP to non-GAAP income statement is also available in our quarterly earnings presentation on our website.

謝謝你，史丹利，大家早安。在我們開始時，我想指出，我將討論我們在 GAAP 基礎上和非 GAAP 基礎上報告的結果。今天新聞稿的附件 B 詳細介紹了 2024 年和 2023 年第二季非 GAAP 財務業績中排除的所有項目。我們的 GAAP 與非 GAAP 損益表的調整表也可以在我們網站上的季度收益報告中找到。

With respect to sales, I will provide details on total sales, total sales growth as well as LCI. sales growth, which is internally generated sales in local currencies compared with the prior year and excludes acquisitions.

關於銷售額，我將提供有關總銷售額、總銷售額成長以及生命週期清單的詳細資訊。銷售成長，即與前一年相比以當地貨幣計算的內部銷售額，不包括收購。

Turning to our second quarter results. Global sales were $3.1 billion with sales growth of 1.1%, this reflects 4.0% sales growth from acquisitions, the 0.5% sales decrease resulting from foreign exchange rates, a 0.5% sales decrease from lower sales of PPE, which is primarily the result of lower glove pricing and the pace of recovery from the cyber incident late last year.

轉向我們第二季的業績。全球銷售額為31 億美元，銷售額成長1.1%，這反映了收購帶來的4.0% 銷售額成長、外匯匯率導致的銷售額下降0.5%、PPE 銷售額下降導致銷售額下降0.5%，這主要是由於手套定價以及去年年底網路事件的恢復速度。

LCI sales for the quarter decreased 2.4% which includes a 0.5% decrease from lower PPE sales. As noted by Stan, our underlying sales growth for the quarter reflects improving sales trends in our distribution businesses. However, the pace of recovery in these businesses since the cyber incident late last year has been slower than anticipated.

本季 LCI 銷售額下降 2.4%，其中 PPE 銷售額下降導致 0.5% 的下降。正如史丹所指出的，我們本季的基本銷售成長反映了我們分銷業務的銷售趨勢的改善。然而，自去年底網路事件以來，這些業務的復甦速度慢於預期。

Our GAAP operating margin for the second quarter of 2024 was 5.09%, a 137 basis point decline compared to the prior year GAAP operating margin. On a non-GAAP basis, operating margin for the second quarter was 7.75%, a 41 basis point decline compared to the prior year, non-GAAP operating margin. Consistent with our BOLD+ One Strategic Plan, gross margin expanded by 101 basis points, primarily due to a greater contribution from high-growth, high-margin products and services.

我們 2024 年第二季的 GAAP 營業利潤率為 5.09%，比上年 GAAP 營業利潤率下降 137 個基點。以非 GAAP 基準計算，第二季營業利潤率為 7.75%，比去年同期非 GAAP 營業利潤率下降 41 個基點。與我們的 BOLD+ One 策略計畫一致，毛利率成長了 101 個基點，主要是由於高成長、高利潤產品和服務的貢獻更大。

Operating expenses were higher as a percentage of sales, primarily due to recent acquisitions and lower sales in our distribution businesses. Second Quarter 2024 GAAP net income was $104 million, or $0.8 per diluted share. This compares with prior year GAAP net income of $140 million or $1.06 per diluted share.

營運費用佔銷售額的百分比較高，主要是由於最近的收購和我們分銷業務的銷售額下降。 2024 年第二季 GAAP 淨利為 1.04 億美元，或稀釋後每股收益 0.8 美元。相比之下，上一年的 GAAP 淨利潤為 1.4 億美元，即稀釋後每股收益 1.06 美元。

Our second quarter 2024 non-GAAP net income was $158 million or $1.23 per diluted share. This compares with prior year non-GAAP net income of $173 million, or $1.31 per diluted share. The foreign currency exchange impact on our second quarter diluted EPS was unfavorable by approximately $0.01 versus the prior year. Adjusted EBITDA for the second quarter of 2024 was $268 million compared to the second quarter 2023 adjusted EBITDA of $279 million, with EBITDA growth expected to accelerate in the second half of the year.

我們 2024 年第二季的非 GAAP 淨利潤為 1.58 億美元，即稀釋後每股收益 1.23 美元。相比之下，上一年非 GAAP 淨利潤為 1.73 億美元，即稀釋後每股收益 1.31 美元。外匯兌換對我們第二季攤薄後每股收益的影響與去年同期相比下降了約 0.01 美元。 2024 年第二季調整後 EBITDA 為 2.68 億美元，而 2023 年第二季調整後 EBITDA 為 2.79 億美元，預計下半年 EBITDA 成長將加速。

Turning to our second quarter sales results. Global Dental sales were $1.9 billion with sales decreasing 1.7%. LCI sales decreased 2.1% or 1.7% when excluding PTE sales. Global dental merchandise LCI sales decreased 2.6% versus the prior year as the pace of our recovery in merchandise sales following last year's cyber incident, it's taking longer than anticipated.

轉向我們第二季的銷售業績。全球牙科銷售額為 19 億美元，銷售額下降 1.7%。 LCI 銷售額下降 2.1%，若剔除 PTE 銷售額則下降 1.7%。全球牙科商品 LCI 銷售額比上年下降 2.6%，因為去年網路事件後我們商品銷售的復甦速度比預期要長。

Regarding dental equipment although our goal global LCI sales decreased 0.4%. Our North American equivalent LCI sales grew 2.9% with solid growth in our traditional equipment category, digital imaging, CAD/CAM, as well as our parts and service business. Overall, digital equipment sales were up slightly from the prior year.

關於牙科設備，儘管我們的目標是全球 LCI 銷售額下降 0.4%。我們的北美等效 LCI 銷售額成長了 2.9%，傳統設備類別、數位成像、CAD/CAM 以及零件和服務業務穩步成長。整體而言，數位設備銷售額較上年略有成長。

Our international equipment, LCI sales decreased 5.5% and as Stan noted earlier, this was the result of sales decreases in France, Italy and Australia, with sales in other markets in line with last year. Changes in French legislation limiting DSOs negatively impacted equipment investment in France while the overall equipment market in Italy was slow.

我們的國際設備 LCI 銷售額下降了 5.5%，正如 Stan 早些時候指出的，這是法國、義大利和澳洲銷售額下降的結果，其他市場的銷售額與去年持平。法國限制 DSO 的立法變化對法國的設備投資產生了負面影響，而義大利的整體設備市場成長緩慢。

In addition, the end of tax incentives last year in Australia and the UK provided difficult year-on-year comparisons in these markets, we expect modest overall equipment sales growth for the remainder of the year in both North America and internationally. Dental specialty product sales were approximately $279 million, with growth of 7.2%, driven by strong dental implant and biomaterials sales in Europe as well as dental data sales globally.

此外，去年澳洲和英國稅收優惠政策的終止使得這些市場的同比比較變得困難，我們預計今年剩餘時間北美和國際整體設備銷售將出現溫和成長。在歐洲強勁的植牙和生物材料銷售以及全球牙科數據銷售的推動下，牙科專業產品銷售額約為 2.79 億美元，成長 7.2%。

Global Technology and Value-Added Services sales during the second quarter were $214 million with total growth of 10.8%. LCI sales growth of 3.9% included 2.9% LCI sales growth in North America and 10.5% LCI sales growth internationally. In North America, while sales growth is still recovering from the change health care disruption, we had solid growth in our value added services, revenue cycle management and Dentrix Ascend practice management businesses.

第二季全球技術和加值服務銷售額為 2.14 億美元，總成長 10.8%。 LCI 銷售額成長 3.9%，其中北美 LCI 銷售額成長 2.9%，國際 LCI 銷售額成長 10.5%。在北美，雖然銷售成長仍在從醫療保健變革中斷中恢復，但我們的增值服務、收入週期管理和 Dentrix Ascend 實踐管理業務實現了穩健成長。

International growth was driven by our entirely cloud-based solutions. Global medical sales during the second quarter were $1.0 billion with sales growth of 5.0% and LCI sales decrease of 4.3%, reflecting the slower pace of recovery from the cyber incident as well as lower PPE sales as a result of lower global pricing and ongoing migration to generic alternatives for certain branded pharmaceuticals.

國際成長是由我們完全基於雲端的解決方案所推動的。第二季全球醫療銷售額為 10 億美元，銷售額成長 5.0%，LCI 銷售額下降 4.3%，反映出網路事件的恢復速度較慢，以及全球定價較低和持續遷移導致個人防護用品銷售額下降某些品牌藥品的通用替代品。

Excluding PPE sales, LCI sales decreased 3.6%. Our home solutions business had strong growth, driven by recent acquisitions. As Stan noted, we also benefited the first quarter this year from strong point of care diagnostic test sales driven by flu seasonality.

不計個人防護用品銷售額，LCI 銷售額下降 3.6%。在最近的收購推動下，我們的家居解決方案業務強勁成長。正如史丹所指出的那樣，今年第一季我們也受益於流感季節性推動的護理點診斷測試銷售強勁。

Regarding stock buybacks, we repurchased approximately 1.4 million shares of common stock in the open market during the second quarter, buying at an average price of $70.64 per share for a total of approximately $100 million.

關於股票回購，我們第二季在公開市場回購了約140萬股普通股，平均回購價格為每股70.64美元，回購總額約1億美元。

We had approximately $90 million authorized and available for future stock repurchases at the end of the quarter. An additional $500 million of share repurchases was authorized by our Board of Directors on July 31. We expect to repurchase approximately $175 million in shares in the second half of this year. But this new authorization provides us the flexibility to repurchase more.

截至本季末，我們已授權約 9,000 萬美元可用於未來的股票回購。 7 月 31 日，我們的董事會批准了額外 5 億美元的股票回購。但這項新授權為我們提供了回購更多資金的彈性。

Turning to our cash flow. We had strong operating cash flow of $296 million for the second quarter, which exceeded operating cash flow of $274 million last year. Year to date, operating cash flow was $493 million, driven by lower working capital and $192 million more than last year.

轉向我們的現金流。第二季我們的營運現金流強勁，達到 2.96 億美元，超過去年的 2.74 億美元營運現金流。年初至今，由於營運資本減少，營運現金流為 4.93 億美元，比去年增加了 1.92 億美元。

Restructuring expenses in the second quarter were $15 million or $0.08 per diluted share and were incurred as part of our previously disclosed restructuring initiative. That specific initiative was completed on July 31, 2024. And these expenses mainly related to severance benefits and costs related to exiting certain facilities.

第二季的重組費用為 1500 萬美元，即稀釋後每股 0.08 美元，是我們先前揭露的重組計劃的一部分。此具體措施於 2024 年 7 月 31 日完成。

As Stan mentioned, we also announced today a new restructuring initiative, we expect to continue over the next 18 months, targeting $75 million to $100 million in annual run rate savings.

正如史丹所提到的，我們今天也宣布了一項新的重組計劃，我們預計將在未來 18 個月內繼續實施，目標是每年節省 7,500 萬至 1 億美元的營運費用。

Our second quarter GAAP results include $10 million in pretax proceeds as part of our cyber insurance claim. As we have previously mentioned, this policy has a $60 million claim limit on after-tax losses with a $5 million retention. We expect to continue to receive payments over time. The $10 million of proceeds received in the second quarter is not included in our non-GAAP results and is detailed along with other non-GAAP adjustments in Exhibit B of today's press release.

我們第二季的 GAAP 業績包括 1000 萬美元的稅前收益，作為我們網路保險索賠的一部分。正如我們之前提到的，保單的稅後損失索賠限額為 6,000 萬美元，並保留 500 萬美元。我們預計隨著時間的推移將繼續收到付款。第二季收到的 1,000 萬美元收益不包含在我們的非 GAAP 業績中，並與今天新聞稿的附錄 B 中的其他非 GAAP 調整一起詳細說明。

I'll conclude my remarks with our updated 2024 financial guidance. At this time, we are not yet able to provide without unreasonable efforts and estimate of the restructuring costs associated with the new restructuring plan for 2024, although we expect this to primarily include severance, pay and facility related costs.

我將以更新的 2024 年財務指引來結束我的演講。目前，我們還無法在沒有不合理努力的情況下提供與 2024 年新重組計劃相關的重組成本的估計，儘管我們預計這主要包括遣散費、工資和設施相關成本。

Therefore, we are not providing GAAP guidance. Our 2024 guidance is for continuing operations as well as acquisitions that have closed and does not include the impact of potential future acquisitions. Guidance also assumes foreign currency exchange rates are generally consistent with current levels, and that end markets remain consistent with current market conditions.

因此，我們不提供 GAAP 指導。我們的 2024 年指引適用於持續營運以及已完成的收購，不包括未來潛在收購的影響。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。

Our 2024 total sales growth is now expected to be 4% to 6% over 2023 versus our previous guidance of 8% to 10% growth. The previous guidance anticipated a stronger economy as well as a faster recovery from the cyber incident. This sales guidance also includes sales from the acquisitions we have completed to date. For 2024, we now expect non-GAAP diluted EPS attributable to Henry Schein to be in the range of $4.70 to $4.82, which compares with previous guidance of $5.00 to $5.16 and reflects growth of 4% to 7% compared with 2023 non-GAAP diluted EPS of $4.50.

目前，我們預計 2024 年總銷售額成長將比 2023 年成長 4% 至 6%，而先前的指導成長為 8% 至 10%。先前的指導預計經濟會更加強勁，並且會從網路事件中更快恢復。該銷售指導還包括我們迄今為止已完成的收購的銷售。對於2024 年，我們目前預計亨利沙因的非GAAP 攤薄後每股收益將在4.70 美元至4.82 美元之間，而之前的指引為5.00 美元至5.16 美元，與2023 年非GAAP 攤薄後相比增長4 % 至7%每股收益為 4.50 美元。

This guidance reflects an estimated non-GAAP effective tax rate of 25%. As a result of the timing of implementing our restructuring plans, we expect year-over-year growth in diluted EPS to be higher in the fourth quarter than in the third quarter. Our 2024 adjusted EBITDA is expected to grow in the low double digit percentages versus 2023 adjusted EBITDA of $984 million and compares with prior guidance have more than 15% growth.

該指引反映了預計的非 GAAP 有效稅率為 25%。由於實施重組計劃的時機，我們預計第四季度稀釋後每股收益的年增率將高於第三季。我們的 2024 年調整後 EBITDA 預計將以較低的兩位數百分比成長，而 2023 年調整後 EBITDA 為 9.84 億美元，與先前的指導相比成長超過 15%。

We expect adjusted EBITDA to grow faster than non-GAAP diluted EPS because of higher interest expense, a higher effective tax rate and higher depreciation as a result of the investments we have made to execute on our strategic plan. Through the second quarter, our specialties products, technology and value-added services contributed 38.5% of total non-GAAP operating income. We continue to believe that we will achieve our goal of exceeding 40% operating income contribution from these products and services for the full year.

我們預計調整後 EBITDA 的成長速度將快於非 GAAP 攤薄後每股收益，因為我們為執行策略計畫而進行的投資導致更高的利息支出、更高的有效稅率和更高的折舊。截至第二季度，我們的特色產品、技術和增值服務貢獻了非 GAAP 營業收入總額的 38.5%。我們仍然相信，我們將實現全年營業收入貢獻超過 40% 的目標。

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. So as we lead into the Q&A, I want to reiterate, we are confident in the prospects for our business, even in the face of challenging economic conditions, although we do believe markets are stable. And then we continued to gain market share through the recovery from the cyber incident, which are going in a good direction, but not as fast as we expected when we gave last guidance a quarter ago.

謝謝你，羅恩。因此，當我們進入問答環節時，我想重申，即使面對充滿挑戰的經濟狀況，我們對我們的業務前景充滿信心，儘管我們確實相信市場是穩定的。然後，我們透過從網路事件中恢復來繼續獲得市場份額，一切都朝著良好的方向發展，但沒有我們在一個季度前給出最後指導時預期的那麼快。

And we're also comfortable that with that we will benefit from the trends in increased specialty procedures. I think we've rounded out with the implant offering we have we had a big gap. We've got that in place in the United States and Canada soon. And we are also confident that the movement of medical procedures to alternate care settings will continue.

我們也感到滿意的是，我們將從專業程序增加的趨勢中受益。我認為我們已經完善了我們擁有的植入物產品，我們有很大的差距。我們很快就會在美國和加拿大實現這一目標。我們也相信醫療程序將繼續轉移到替代照護機構。

We are generating good synergies, connecting our distribution businesses, specialty products and technology that we added services. While we focus on these opportunities, we're also taking action to increase shareholder value. As we've noted in the restructuring plan, we need to rightsized the restructuring plan.

我們正在產生良好的協同效應，將我們的分銷業務、特色產品和我們添加的服務的技術連結起來。在我們關注這些機會的同時，我們也採取行動增加股東價值。正如我們在重組計劃中指出的，我們需要調整重組計劃的規模。

The sales have not grown as rapidly as we thought. Some of that is attributable to the fact that inflation does not exist at the moment. We believe in our markets very moderate naturally to go down slightly as customers are more price conscious and moving to some alternative brands and own brands. But we think from a gross profit point of view, this will be fine effect may be slightly accretive.

銷售額的成長並沒有我們想像的那麼快。部分原因是目前不存在通貨膨脹。我們相信，隨著客戶對價格更加敏感並轉向一些替代品牌和自有品牌，我們的市場自然會小幅下降。但我們認為從毛利角度來看，本次精細化效應可能會略有增加。

And of course, we will continue to buy stock. We anticipate spending the $500 million. And so with that in mind, please let's answer some questions. Operator?

當然，我們將繼續買股票。我們預計花費 5 億美元。考慮到這一點，請讓我們回答一些問題。操作員？

Thank you, Stanley. We will now be conducting a question-and-answer session. (Operator Instructions)

謝謝你，史丹利。我們現在將進行問答環節。 （操作員說明）

Jon Block, Stifel.

喬恩·布洛克，斯蒂菲爾。

Thanks, guys, and good morning. I'll just stick to the same topic Ron, 2024 sales growth expectations down 5% at the midpoint, down from 9%. So I think we're looking at roughly a $0.5 billion of a step down. Maybe you can just talk about what is that is coming from, call it, the more conservative approach to your distributor recapture versus that of the slower economy that you also allude to in the press release, and I'll just stop there and then I'll ask my follow-up on the same topic.

謝謝，夥計們，早安。我將繼續討論同一主題，Ron，2024 年銷售成長預期中位數從 9% 下調至 5%。所以我認為我們正在考慮大約 5 億美元的削減。也許你可以談談這是什麼來的，稱之為，與你在新聞稿中提到的經濟放緩相比，重新奪回經銷商的更保守的方法，我就停在那裡，然後我我會就同​​一主題詢問我的後續行動。

Okay, Jon, and thank you for that question. Let's start with Ron giving you the basics, and I'm happy to filling further.

好的，喬恩，謝謝你提出這個問題。讓我們從羅恩向您介紹基礎知識開始，我很樂意進一步補充。

Certainly, hi Jon, the -- yeah, from midpoint to midpoint, we came down for four points, right? But it is the math works to approximately what you have enumerated going back and thinking about our original guidance and our even our many guidance on sales from the first quarter, our Investor Day assumption go back a year and a half ago was that long-term growth for dental was about 2% to 4% in terms of market growth.

當然，嗨喬恩，是的，從中點到中點，我們落後了四分，對吧？但這是關於你所列舉的數學工作，回想一下我們最初的指導，甚至我們對第一季度銷售的許多指導，我們一年半前的投資者日假設是長期的就市場增長而言，牙科的增長約2%至4%。

And our assumption this year was at the low end of that range. And of course, part of that growth would be coming from anticipated price increases as well. As we've progressed through the year, our view is shifted to more flat year-over-year market growth, which still reflects stable patient traffic environment. And I think others in the industry have even indicated flat to negative growth in the market, right.

我們今年的假設處於該範圍的低端。當然，這種成長的一部分也將來自預期的價格上漲。隨著這一年的進展，我們的觀點轉向更平穩的同比市場成長，這仍然反映出穩定的患者流量環境。我認為業內其他人甚至表示市場成長持平甚至出現負成長，對吧。

As the pricing itself has also remained fairly flat to the prior year. And we see customers are frequently moving to some lower-cost options, including our own corporate brand, in some cases, which in general is positive for us from a gross profit perspective. Those conditions and you couple that with the company-specific challenge of recovering from the cyber incident, which have been delayed, but are still showing sequential growth quarter to quarter are the primary drivers, so the reduction in our sales guidance, right.

由於定價本身也與前一年相當持平。我們看到客戶經常轉向一些成本較低的選擇，在某些情況下包括我們自己的企業品牌，從毛利的角度來看，這總體上對我們有利。這些條件加上公司特有的從網路事件中恢復的挑戰（這些挑戰已被推遲，但仍顯示出季度環比的增長）是主要驅動力，因此我們的銷售指導減少了，對吧。

So the fundamentals of the business remain intact. We believe we're once again gaining market share working our way back to pre-incident market share, and we expect that to continue over the balance of the year.

因此，該業務的基本面保持不變。我們相信，我們將再次獲得市場份額，努力恢復到事件發生前的市場份額，並且我們預計這種情況將在今年餘下的時間裡持續下去。

Thank you, Ron. I think you covered it quite well actually, if there were any specifics, Jon, or anyone has respect to any particular market, any particular sector, I think we could answer that, that's the broad overview. Thank you.

謝謝你，羅恩。我認為你實際上涵蓋得很好，如果有任何細節，喬恩，或者任何人尊重任何特定市場、任何特定部門，我想我們可以回答這個問題，這就是廣泛的概述。謝謝。

Okay. And just as a follow-up or tack onto that to push you guys a little bit, you talked about the recapture being slower than you had anticipated so far, but you still expect to get this business back? And I guess my question is like why? Why do you still expect to get that business back here?

好的。作為後續行動或補充，以推動你們一點，你們談到奪回的速度比你們預期的要慢，但你們仍然希望收回這項業務？我想我的問題是為什麼？為什麼你仍然希望把這項業務帶回這裡？

We are almost 9, 10 months post cybersecurity incident. I would think it's like a hot lead and either you get them back with incentives or they might move, especially if they're episodic to a different platform that they're somewhat content with. So maybe you can talk about your conviction on getting those customers back and the strategy to do so. And thanks for your time.

網路安全事件發生已經近 9、10 個月了。我認為這就像一個熱門線索，要么你用激勵措施讓他們回來，要么他們可能會離開，特別是如果他們偶爾轉移到他們有點滿意的不同平台的話。因此，也許您可以談談您重新獲得這些客戶的信念以及這樣做的策略。感謝您抽出時間。

Jon. That is a very important question that I did ask. Look, our sequential month over month reduction of the gap has been quite good. It's going slower. We need to get our field sales force visiting again, the smaller customers, they've been focused on the big ones, and that's been pretty good. They need to focus on the smaller ones, and we need to pick our telesales team back into full action.

喬恩.這是我確實問過的一個非常重要的問題。看，我們逐月逐月縮小差距的情況非常好。速度越來越慢了我們需要讓我們的現場銷售人員再次拜訪小客戶，他們一直專注於大客戶，這非常好。他們需要專注於較小的公司，而我們需要讓我們的電話銷售團隊重新全面行動。

They had to deal with the fallout of the cyber incident. There were many issues that get resolved, yes, customers okay in the end that will resolve it. But our call centers have been very busy. And only in the last couple of months, actually the last six or so weeks or they're doing outbound calls. So we are well received. It just happened, we happen to have an opening of our new distribution business in Texas and I was with some of our FSC's, field sales consultants who had been -- who many of them have gone back now for the first time into the smaller accounts.

他們必須應對網路事件的後果。有很多問題都得到了解決，是的，客戶最終會解決它。但我們的呼叫中心一直都非常繁忙。僅在過去幾個月，實際上是過去六週左右，或者他們正在撥打外線電話。所以我們很受歡迎。事情就這樣發生了，我們碰巧在德克薩斯州開設了新的分銷業務，我和我們的一些 FSC 現場銷售顧問在一起，他們中的許多人現在已經第一次回到了較小的帳戶。

And they reported that the customers are very happy to see them they just wondered why they were not there in the last couple of months, they were not there because people were focused on dealing with the larger customers and the customers that are the better customers with a $5 billion market wallet from us.

他們報告說，客戶很高興見到他們，他們只是想知道為什麼過去幾個月他們不在那裡，他們不在那裡是因為人們專注於與更大的客戶和更好的客戶打交道我們提供50 億美元的市場錢包。

So, we are confident that over time we will continue to gain market share. We are gaining market share from where we left off at the end of '23. It's going to be hard to split exactly what market share growth because of general market share growth, effectiveness of the sales force and what's the result of the recovery. But I think overall, we're confident that we'll be able to continue to gain market share.

因此，我們有信心隨著時間的推移，我們將繼續獲得市場份額。我們正在從 23 年底停止的地方獲得市場份額。由於整體市場份額的成長、銷售團隊的有效性以及復甦的結果，很難準確地劃分市場份額的成長。但我認為總的來說，我們有信心能夠繼續獲得市場份額。

And the question is exactly at what pace we've given you guidance of what we expect. And that's really key fact. I mean, there's nothing more we can add to that. We have a pretty good track record and we expect to deliver what will be of a couple of quarters one way or the other part to give you the exact number, but I think you're asking a very important question.

問題在於我們以什麼速度向您提供我們所期望的指導。這確實是關鍵事實。我的意思是，我們沒有什麼好補充的了。我們有很好的記錄，我們希望以一種方式或另一種方式提供幾個季度的信息，以便為您提供確切的數字，但我認為您問的是一個非常重要的問題。

Jason Bednar, Piper Sandler.

傑森·貝德納，派珀·桑德勒。

Hey, good morning, everyone. A lot definitely could cover here in the second quarter the balance '24. But I actually want to fast-forward a bit to 2025 and apologies upfront. I'm going to pack a few in here when you've got a lot of moving parts here this year, the story, though, should be a little cleaner exiting this year is we'll have lapped the cybersecurity impact and the PPE headwinds.

嘿，大家早安。 24 年第二季的餘額肯定可以涵蓋很多內容。但我實際上想快進到 2025 年，並​​預先道歉。當今年有很多變化的部分時，我將在這裡打包一些，不過，今年的故事應該會更清晰一些，因為我們將克服網路安全的影響和個人防護裝備的逆風。

Where do you see organic growth for the business once we emerge from all the noise, what's the right underlying growth rate and the margin profile we should be using as a jumping off point as we start thinking about 2025.

一旦我們擺脫了所有的噪音，您會在哪裡看到業務的有機成長？

And then within all of that, can you give us a bit of color as the phasing of the savings assumed in the restructuring program. It sounds like some of that's coming here in the fourth quarter '24 some of the benefits, but how much of that should be expected be it in the fourth quarter versus the contribution in 2025?

然後，在所有這些之中，您能否給我們一些關於重組計劃中假設的儲蓄分階段的資訊。聽起來其中一些收益將在 24 年第四季實現，但與 2025 年的貢獻相比，預計第四季度的收益有多少？

Jason, okay, let Ron give you some thoughts on specifics that have been baked into the extent we can give you that information baked into our assumptions. But in general, we believe the consumable market in the United States and Canada is relatively stable.

傑森，好吧，讓羅恩給你一些關於具體細節的想法，這些細節已經被納入我們可以向你提供的資訊納入我們的假設範圍內。但整體而言，我們認為美國和加拿大的消費品市場相對穩定。

Yes, there's been a shift I think to more price conscious opportunities. I don't think that necessarily impacts our gross profits. It may depress our sales slightly and we believe we can gain market share on the pure distribution of products. Adding to the profitability, I think continues to be our specialty businesses, in particular implants, bone regeneration, that's material, and we think we are well positioned globally in that area.

是的，我認為已經出現了對價格更加敏感的機會的轉變。我認為這不一定會影響我們的毛利。這可能會稍微抑制我們的銷售，但我們相信我們可以透過純粹的產品分銷來獲得市場份額。我認為增加獲利能力的仍然是我們的專業業務，特別是植入物、骨再生等材料，我們認為我們在該領域處於全球領先地位。

We don't really have exposure to China. We're selling very little there. There's going to be ups and downs there, Asia generally. But the market that we're strongest in is the dark region in Europe, and I think we're very well positioned. We are, I think, well positioned in the United States, specifically with the implant dentist that is looking for high value for the branded product.

我們確實沒有接觸過中國。我們在那裡賣得很少。整個亞洲都會有起有落。但我們最強大的市場是歐洲的黑暗地區，我認為我們處於非常有利的位置。我認為，我們在美國處於有利地位，特別是對於那些尋求高價值品牌產品的植牙醫。

We are hopeful and expect that as the year goes by this year, we will be able to get some market share in that area, I think the endo does not us because implants continues to move in a positive direction.

我們充滿希望，並期望隨著今年的過去，我們將能夠在該領域獲得一些市場份額，我認為內視鏡不能做到這一點，因為植入物繼續朝著積極的方向發展。

And the medical business, yeah, there have been some anomalies there, the pharma side, the whole point of care switching between one quarter and another. But I think the movement to the alternate care side, ambulatory surgical center, the homecare, those all positive good ways in which for us to sell our own brands and I think we will recover in that area.

醫療行業，是的，那裡出現了一些異常情況，製藥方面，整個護理點在一個季度和另一個季度之間切換。但我認為轉向替代護理方面、門診手術中心、家庭護理，這些都是我們銷售自己品牌的積極好方法，我認為我們將在該領域復甦。

We've done okay. With the large customers, the small ones, the same, as I noted in response to Jon's question, we just have to get our sales force in front of more of those smaller customers, our telesales group, our e-commerce group, I think equipment continues to be an area that we're quite optimistic about in the United States, we did have relatively good equipment growth.

我們已經做得很好了對於大客戶和小客戶，正如我在回答喬恩的問題時指出的那樣，我們只需讓我們的銷售人員面對更多的小客戶，我們的電話銷售團隊，我們的電子商務團隊，我認為設備仍然是我們比較看好的一個領域，在美國我們確實有比較好的設備成長。

That was an anomaly with scanners visible a big sale last year. But generally we're in positive territory at gaining market share. We have some challenges on equipment abroad. We have a big market share in France. There's been a bit of an impact there on some legislation, Italy is not so great. Australia will we had a challenge this quarter because of some tax benefits that lapsed, I think as the year goes by and into '25 we will do well in that market.

這是一種反常現象，去年掃描器的銷售量很大。但總的來說，我們在獲得市場份額方面處於積極的狀態。我們在國外的設備上遇到了一些挑戰。我們在法國擁有很大的市場份額。那裡的一些立法受到了一些影響，但義大利的影響不是那麼大。由於一些稅收優惠失效，澳洲本季將面臨挑戰，我認為隨著時間的推移進入 25 年，我們將在該市場表現良好。

And then generally, I think in the equipment market will be okay, we'll grow there is I might add, though, a view on pricing. The dentist are looking at value. I think some of the manufacturers have understood this others are adjusting, but the average unit price may come down slightly.

總的來說，我認為在設備市場會很好，我們會在那裡成長，但我可能會補充一點對定價的看法。牙醫正在尋找價值。我想一些廠商已經明白了這一點，其他廠商正在調整，但平均單價可能會略有下降。

But I think the profit will be fine specifically as our clinical workflow initiatives kick in and on the Henry Schein One side and the value-added services side, I think those are all going to be contributors to profitability this year and more in '25. So Ron, I don't know if you have anything that you can share from a macro point of view in your guidance formulation?

但我認為，隨著我們的臨床工作流程計劃的啟動，以及Henry Schein One 和增值服務方面的啟動，利潤將會很好，我認為這些都將成為今年盈利能力的貢獻者，並且在25 年更多。那麼羅恩，我不知道您在指導制定中是否有從宏觀角度可以分享的內容？

Yeah, Jason. I will say to you what kind of from a balance of year and then kind of going into '25. We have announced a new restructuring initiative. We do expect as you inferred, we will get some benefits this year mean that we can take some immediate actions that will provide some short-term benefits for us in this quarter as well as next quarter. There will be, I'll call them kind of other more complex actions that I think will take us over the course of 2025 to complete.

是的，傑森。我會告訴你今年的情況如何，然後進入 25 年。我們宣布了一項新的重組計劃。我們確實預計，正如您所推斷的那樣，我們今年將獲得一些好處，這意味著我們可以立即採取一些行動，在本季度和下個季度為我們帶來一些短期好處。我認為還會有一些其他更複雜的行動，我認為這些行動將需要我們在 2025 年完成。

I think it's important to note that as we work -- we've done a lot of building on under the B of our Bold+ One Strategy in the last year or so year and a half and there's going to be some integration opportunities there and something that might fly under the radar a little bit this year is that we've also invested this year a little over $200 million in buying out shareholder partners in certain subsidiaries where we had a minority partner.

我認為值得注意的是，在我們工作的過程中，在過去一年半的時間裡，我們在 Bold+ One 策略的 B 基礎上做了很多工作，那裡將會有一些整合機會等等。太引人注目的是，我們今年還投資了2 億多美元，收購了我們擁有少數股東的某些子公司的股東合夥人的股份。

And this kind of increased ownership also provides us with very good opportunities to combine certain operations for the leverage, our one chain approach with customers. And so but those as you can appreciate, are a little more complex, not the kind of thing you can do overnight. So those will likely spill into '25 for some time. But that's the -- that's part of the plan. And that's -- we've baked that into the balance of the guidance, what we think we can achieve this year. And then when we provide '25 our guidance, we'll be able to address that.

這種所有權的增加也為我們提供了很好的機會，可以將某些業務結合起來以發揮槓桿作用，即我們與客戶的一條鏈方法。因此，正如您所理解的那樣，這些事情有點複雜，不是您可以在一夜之間完成的事情。因此，這些可能會持續到 25 年一段時間。但這就是計劃的一部分。那就是——我們已經將其融入指導的平衡中，我們認為今年可以實現這一目標。然後，當我們提供 25 年指導時，我們將能夠解決這個問題。

Okay, right. That's helpful. As a follow-up, but I want to shift gears a little bit and discuss what came up on a conference call last week from one of your manufacturer partners. I'm sure you've anticipated this question, but just wanted to see if you can discuss what your position is with respect to the relationship with your manufacturing partners and maybe address the status of your particular agreement with Dentsply Sirona.

好吧，對。這很有幫助。作為後續行動，但我想稍微改變一下態度，討論一下你們的一家製造商合作夥伴上週召開的電話會議上的內容。我相信您已經預料到這個問題，但只是想看看您是否可以討論您在與製造合作夥伴的關係方面的立場，並可能解決您與 Dentsply Sirona 的特定協議的狀態。

When specifically if you can share, does your contract come up for renewal? And can you discuss how you're proceeding now that you're aware that your main distribution competitor received the nonrenewal notice on their contract?

具體來說，如果您可以分享，您的合約是否需要續約？您能否討論一下，既然您知道您的主要分銷競爭對手收到了合約中的不續約通知，您將如何進行？

Yeah, Jason, first of all, we have never really spoken about specific relationships with that client. But and because generally it's not a good idea. But yesterday I did have a call with the CEO of Simon of Dentsply, and we confirm to each other that our relationship is good. I believe we are the biggest customer. They one of our biggest global suppliers.

是的，傑森，首先，我們從未真正談論過與該客戶的具體關係。但是，因為通常這不是一個好主意。但昨天我確實和登士柏的執行長西蒙通了電話，我們互相確認我們的關係很好。我相信我們是最大的客戶。他們是我們最大的全球供應商之一。

We work with them practically in every country. That's one or two that we don't. And they're very important supplier wells. The company has had some management changes over the years, seems like the current management team is in place, understands what needs to get done. I believe that they are working well with our team, yeah, particularly in North America and Canada also in Europe more complex in Europe,\ (inaudible) biggest markets for them -- for us.

我們實際上在每個國家都與他們合作。我們沒有的一兩個。它們是非常重要的供應井。多年來，該公司的管理層發生了一些變化，目前的管理團隊似乎已經就位，了解需要完成哪些工作。我相信他們與我們的團隊合作得很好，是的，特別是在北美和加拿大，在歐洲也更複雜，歐洲是他們（聽不清楚）最大的市場——對我們來說。

I've worked well by the way I think in Germany, France, Spain, UK, in Italy, too. And yeah, they have committed to adding more sales power to the organization, which can only be helpful to us. That products we'd like to get into some of our customers. On the other hand, there are other suppliers that have competing products and we will always do what's best for our customers.

我認為我在德國、法國、西班牙、英國和義大利都工作得很好。是的，他們致力於為組織增加更多的銷售力量，這只會對我們有幫助。我們希望將這些產品提供給我們的一些客戶。另一方面，還有其他供應商擁有競爭產品，我們將始終為客戶提供最好的服務。

But at the same time, we have strategic relationships. I would view them as one of the strategic relationships. We do not have a formal contract with them. We haven't Memorandum of Understanding one way or another. I don't know when it expires or not, and actually it is going to look at that. But in general, it's a good relationship and we have good relationships with all of our suppliers.

但同時，我們擁有戰略關係。我將它們視為戰略關係之一。我們與他們沒有正式合約。我們沒有這樣或那樣的諒解備忘錄。我不知道它什麼時候到期，實際上它會考慮這一點。但總的來說，這是一種良好的關係，我們與所有供應商都有良好的關係。

And then I'm sure the next question is selling direct. And that rumour has been going around in the industry for years. Specialty products also direct implants orthodontics, to some extent, endodontics, we need to be in a position to offer the entire offering of all those products. We are in that position today where we had gaps we couldn't get products.

然後我確定下一個問題是直接銷售。這個謠言已經在業界流傳多年。專業產品也直接種植正畸，在某種程度上，牙髓病，我們需要能夠提供所有這些產品的全部產品。今天我們處於這樣的境地：我們有差距，無法獲得產品。

We entered into the manufacturing, those specialty products we've discussed and we're doing well in like in the industry, this own brand corporate brand products, and we have manufacturers already to provide good pricing that meets the customers' needs.

我們進入了製造領域，我們討論過的那些特色產品，我們在行業中做得很好，這個自有品牌的企業品牌產品，我們已經有製造商提供良好的價格來滿足客戶的需求。

We're happy to take the manufactures products in where we need to have a private corporate brand. We have that like in any industry. And in general, I think we have good relationships with our suppliers as it relates to this specific issue with a specific distributor that's not for us to comment. So I'm trying to be used as transparent as possible.

我們很高興將製造商的產品帶到需要擁有私人企業品牌的地方。就像任何行業一樣，我們都有這一點。總的來說，我認為我們與供應商有著良好的關係，因為這與特定經銷商的具體問題有關，我們不宜發表評論。所以我試著盡可能透明地使用。

Elizabeth Anderson, Evercore ISI.

伊麗莎白·安德森，Evercore ISI。

Good morning, guys. Thanks so much for the question. I was wondering maybe Stanley going back to what you were mentioning before, could you comment specifically on the growth rate per implant in 2Q, maybe in North America and then specifically, globally and sort of what your expectations are for, particularly for implant for the back half of the year?

早安，夥計們。非常感謝您的提問。我想知道史丹利是否可以回到您之前提到的內容，您能否具體評論一下第二季度每個植入物的增長率，也許是在北美，然後是全球，以及您的期望是什麼，特別是植入物回到半年？

Elizabeth implants. So the easiest for purest would be Europe. And the biggest market for us is [duck] that is Germany and Austria a little business in Switzerland. In general, we continue to do very well, we have a complete line. We have an outstanding sales force built over many years. We have what's needed. We are not the biggest player in Europe yet on in Germany on bone regeneration, but we're growing very nicely.

伊麗莎白植入物。所以最簡單、最純粹的就是歐洲。我們最大的市場是[鴨子]，德國和奧地利在瑞士的小生意。總的來說，我們繼續做得很好，我們有完整的產品線。我們擁有一支多年建立的優秀銷售團隊。我們有需要的東西。在骨再生方面，我們還不是歐洲最大的參與者，但我們的發展非常好。

We only entered that market by three or four years ago, but an implants were doing very well and continue to expect to do well. And in the other European markets, we will continue, I think, to do well. But we have relatively small market share except in France where we're the number one player and with all the challenges in France, just because you're asking such a specific question, I will answer.

我們三、四年前才進入這個市場，但植入物的表現非常好，並且預計會繼續表現出色。我認為，在其他歐洲市場，我們將繼續表現出色。但我們的市佔率相對較小，除了在法國，我們是第一大玩家，而且法國面臨所有挑戰，只是因為你問了這樣一個具體的問題，我會回答。

But generally we're not going to provide specific information on specific countries, but we are growing in France, a biotech is growing organically and doing quite well with its implants, I think they are the number one. So Europe is the easiest the peers. As it relates to Latin America, our SI and new joint venture, although it's viewed as acquisition growth continues to gain market share, unfortunately, they were not hit by the sad situation in that part of Brazil that got a lot of rain, but overall is doing well.

但一般來說，我們不會提供特定國家的具體信息，但我們正在法國發展，生物技術正在有機增長，其植入物表現得很好，我認為它們是第一。所以歐洲是同行中最容易的。就拉丁美洲而言，我們的 SI 和新合資企業，雖然被視為收購增長繼續獲得市場份額，但不幸的是，他們沒有受到巴西那片地區降雨量大的悲慘局勢的打擊，但總體而言做得很好。

The bio horizons part of the equation is a challenge because of a couple of the countries of instability and Latin America, but they were not a participant really in the Brazil market. And our view to Latin America is primarily through SIN. As it relates to the US. Until last year, we were gaining significantly in market share and sales were good. This year the market has a little bit frozen for us because of our introduction, our customers, our sales force and aware of the new product.

由於一些不穩定國家和拉丁美洲，生物視野部分是一個挑戰，但它們並不是巴西市場的真正參與者。我們對拉丁美洲的看法主要是透過 SIN 來實現的。因為它與美國有關。直到去年，我們的市佔率和銷售情況都取得了顯著的成長。今年，由於我們的介紹、我們的客戶、我們的銷售人員以及對新產品的了解，市場對我們來說有點凍結。

We were supposed to get it around March, April, but we got the FDA approval in the middle of June. It's going to take a little time to fire up, but we are quite confident that we will do well with our new product, which I think is also will receive five DSOs, whether they are -- by horizon DSOs or Henry Schein DSOs, bringing the SIN product into the US will also be helpful.

我們本來應該在三月、四月左右拿到它，但我們在六月中旬就得到了 FDA 的批准。這需要一點時間來啟動，但我們非常有信心我們的新產品會做得很好，我認為它也將收到五個 DSO，無論是 Horizo​​​​n DSO 還是 Henry Schein DSO，帶來SIN 產品進入美國也會有幫助。

So we did go backwards in terms of our sales, but I'm not sure in terms of market share in the United States, it's hard to tell data is not readily available. We do extremely well in the bone regeneration fields in the United States, Canada is kind of flattish and just off the (inaudible) , that's where we are and I'm quite happy and confident with the progress we're making in the implant arena as well as the buyer (inaudible) materials through.

所以我們的銷售額確實倒退了，但我不確定美國的市場份額，很難說數據不可用。我們在美國的骨再生領域做得非常好，加拿大有點平坦，就在（聽不清楚），這就是我們所處的位置，我對我們在植入領域取得的進展感到非常高興和自信以及買方（聽不清楚）材料的通過。

Thank you for all that covered the color. That was super helpful. Just maybe as a follow up. Can you comment specifically and this is maybe just not just related to implants, but more broadly, how you're thinking about trends in July and should have so far in the third quarter of our days is similar to what you saw in 2Q, better worse?

感謝所有覆蓋顏色的人。這非常有幫助。也許只是作為後續行動。您能否具體發表評論，這可能不僅與植入有關，而且更廣泛地說，您對 7 月趨勢的看法以及迄今為止第三季度的趨勢應該與您在第二季度看到的類似，更好更糟？

Yeah. I mean, specifically, Elizabeth, I'll address the distribution businesses first, because I think it's probably the most interest to people. We have experienced from Q1 into Q2 growth in our distribution businesses as we recapture some market share. As we said before that recapture has not been as high or as at the pace that we had originally desired.

是的。我的意思是，具體而言，伊麗莎白，我將首先解決分銷業務，因為我認為這可能是人們最感興趣的。隨著我們重新奪回一些市場份額，我們的分銷業務從第一季到第二季都經歷了成長。正如我們之前所說，重新奪回的速度並沒有達到我們最初期望的速度。

But we are recapturing share that has continued into July. We expect it to continue for the balance of the third quarter and then of course, into the fourth quarter as well. So that's with distribution. I think with the other products, it's a -- they can be a little choppier you get into the kind of the European holiday season now with distribution there. But I would say within the especially within the US distribution business, we feel very good about, but the ongoing trends there.

但我們正在重新奪回份額，這種情況一直持續到 7 月。我們預計這種情況將持續到第三季的剩餘時間，當然也會持續到第四季。這就是分配。我認為對於其他產品來說，它們可能會有點波動，因為現在正值歐洲假期季節，在那裡進行分銷。但我想說的是，在特別是在美國的分銷業務中，我們對那裡持續的趨勢感到非常滿意。

John stands will with JP Morgan.

約翰與摩根大通保持一致。

Great. Thanks for taking my question. Just wanted to dig in a little bit on the medical side. Can you just speak in a little bit more detail about the effects from some of your larger customers potentially ordering away with the pharmaceutical distributors and then what your expectation is for that return process over the back half? Thanks.

偉大的。感謝您提出我的問題。只是想深入了解醫學方面的情況。您能否更詳細地談談您的一些大客戶可能向藥品經銷商訂購的影響，然後您對後半段的退貨流程有何期望？謝謝。

Thank you John. Generally, our large customers have come back. We have one large customer that just came back for the pharmaceuticals hasn't come back for the mix surge, although I think the practitioners are going to ask why. On the other hand, we picked up some larger customers along the way. So to give and take the areas, not the large customers, I think we're doing okay there.

謝謝約翰。整體來說，我們的大客戶都回來了。我們有一位大客戶剛回來購買藥品，但尚未因混合激增而回來，儘管我認為從業者會問為什麼。另一方面，我們一路上獲得了一些較大的客戶。因此，為了讓渡這些地區，而不是大客戶，我認為我們在那裡做得還不錯。

We're doing okay with the ASCs, perfect. I think we're doing very well with ASCs, we're growing. It's these smaller practices, the terms that are in private practice, they're static people in private practice the ones where our salespeople just have not had time to go back. And our telesales people have been mostly focused inbound, but have now been focused externally to -- excuse me.

我們在 ASC 方面做得很好，完美。我認為我們在 ASC 方面做得很好，我們正在成長。正是這些較小的實踐，私人實踐中的術語，他們是私人實踐中的靜態人員，我們的銷售人員只是沒有時間回去。我們的電話銷售人員主要專注於內向銷售，但現在則專注於外部——對不起。

So overall, I think the recovery is good. It's not quite as fast as we wanted, but it's under pressure as we noted in the price of injectables as the market moves generic I think there's a movement also to corporate brands in medical and the whole point of care diagnostics slips from one quarter to another, including flu vaccine shipment.

所以總體來說，我認為恢復情況良好。它沒有我們想要的那麼快，但正如我們在註射劑價格中註意到的那樣，隨著市場的通用化，它面臨著壓力。一個季度滑落到另一個季度，包括流感疫苗的運輸。

And then just on the potential kind of the shift towards own brands that you've called out here. Is that embedded in your guidance? Does that kind of persist through the back half? And that's kind of more sticky shift to private label brands for you? Or do you expect that to revert at some point?

然後就是您在這裡提到的向自有品牌的潛在轉變。這是否包含在您的指導中？這種情況會持續到後半段嗎？對您來說，轉向自有品牌是一種更棘手的轉變嗎？或者您預計這種情況會在某個時候恢復嗎？

Yeah, we are taking a look at the run rate on corporate brands in January, and it is considered in our guidance. It's a little difficult to talk to it in broad terms because we are still seeing a little bit of price pressure on gloves and gloves is a very important company brand for us. So but outside of gloves, we're seeing relatively good demand because there is -- there does seem to be a greater kind of cash around cost in the customer base right now.

是的，我們正在研究一月份企業品牌的運作率，我們的指導中也考慮了這一點。從廣義上談論它有點困難，因為我們仍然看到手套有一點價格壓力，而手套對我們來說是一個非常重要的公司品牌。因此，除了手套之外，我們看到了相對良好的需求，因為目前客戶群中似乎確實有更多圍繞成本的現金。

And the next question comes from the line of Amit -- my apologies. Dean Reinhardt, Baird.

下一個問題來自阿米特——我很抱歉。迪恩·萊因哈特，貝爾德。

Hey, guys, thanks for taking the questions this morning. I guess just wanted to kind of follow up even on John's first question here. I mean, I thought last quarter you guys had kind of touched on a 96%, 97% recapture rate in the distribution business. And I guess if you're kind of trailing your original expectations, were you, kind of already expecting to be back at 100%. And then is there any variation in there between your medical and dental.

嘿，夥計們，感謝您今天早上提出問題。我想只是想跟進約翰的第一個問題。我的意思是，我認為上個季度你們已經談到了分銷業務中 96%、97% 的重新捕獲率。我想如果你有點落後於你最初的期望，你是否已經期望能恢復到 100%。然後你的醫療和牙科有什麼不同嗎？

And then I guess just last one to follow up on that within the dental business, I mean, if you are recapturing a slightly greater percent of that lost share from last year. I mean, it seems like on a comp adjusted basis, your North American distribution business did kind of slow with merchandise. So is there anything else in there I mean, you mentioned patient volumes kind of flat. So has that mix shift to kind of lower priced brand adoptions really accelerated here more meaningfully than what you were expecting?

然後我想這只是牙科行業內的最後一個跟進，我的意思是，如果你能重新奪回去年失去的份額中稍大一些的百分比。我的意思是，在調整後的基礎上，你們的北美分銷業務的商品銷售速度似乎有點緩慢。我的意思是，你提到的患者數量有點持平，還有其他嗎？那麼，這種向低價品牌採用的混合轉變是否真的比您預期的更有意義？

Hi, Dan. It's Ron. It's this is where it gets a little fuzzy because it is difficult to assess. Like you said, we based on ship twos and based on the data we had we you get a feel for the so-called recovery from the cyber. Those customers are very sporadic, though they're very episodic with their purchasing habits and some of the recapture, you might not see again for a while, then you get somebody else.

嗨，丹。是羅恩。這就是它變得有點模糊的地方，因為它很難評估。就像你說的，我們基於兩艘船，根據我們掌握的數據，我們對所謂的網路復原有一個感覺。這些客戶非常零星，儘管他們的購買習慣和一些重新捕獲的情況非常不穩定，你可能有一段時間不會再見到，然後你會找到其他人。

So they have not been as consistent. And that's where it gets kind of difficult to put a number behind the actual percentage of recapture there. For us is important that we not only focus on recapturing our old customers, but also gaining other new customers. So the focus of the business really is on gaining market share, whether it be former customers or new customers that's really the focus of the business as it should be under the ordinary course of business.

所以他們的表現就沒那麼一致。這就是很難用一個數字來反映那裡的實際重新捕獲百分比。對我們來說，重要的是我們不僅要專注於重新贏得老客戶，還要贏得其他新客戶。因此，業務的重點實際上是獲得市場份額，無論是以前的客戶還是新客戶，這都是業務的重點，因為它應該是在正常業務過程中。

And in terms of what we're seeing in dental and medical, I would say that the effect has been is relatively the same across the two, I don't think it's slightly -- it could be a little more accentuated with dental, but I would say would only be slightly more in terms of that, that so-called recapture rate and again, we have to use a lot of assumptions to determine what is that real recapture rate, right.

就我們在牙科和醫療領域看到的情況而言，我想說，兩者的效果相對相同，我認為效果並不輕微——牙科方面可能會更加突出，但是我想說的只是稍微多一點，即所謂的重新捕獲率，而且我們必須使用許多假設來確定真正的重新捕獲率是多少，對吧。

And I forgot the last part of your question. You had a three-part question.

我忘記了你問題的最後一部分。你有一個由三個部分組成的問題。

Yeah, sorry, I think like on a comp adjusted basis, your growth in North America distribution, consumables, dental seem to slow a little bit. So is that just reflective of the more shift to the lower price branded consumables products.

是的，抱歉，我認為在調整後的基礎上，你們在北美分銷、消耗品、牙科方面的成長似乎有點放緩。這是否只是反映出人們更多地轉向低價品牌消耗品。

And then I'll just kind of add my last one here. I mean, I think with the EPS guide, I think your midpoint for the back half of the year is kind of in that [242] range. And I think historically your second half EPS tends to be around 49% to 50% of the full year. So just how do we think about that kind of 242 back half guide and think about that for a jumping off point for next year? Thanks

然後我會在這裡添加我的最後一個。我的意思是，我認為根據 EPS 指南，我認為今年下半年的中點在 [242] 範圍內。我認為從歷史上看，下半年每股盈餘往往約為全年的 49% 至 50%。那麼我們該如何看待這種 242 後半指南並考慮明年的起點呢？謝謝

Yeah. So in terms of the back half guide, it does we expect to maintain the momentum we have in terms of recapture of market share, although again, not at the pace we had originally anticipated, but we anticipate regaining and gaining market share into Q3 into Q4, and that will help drive some of that increase.

是的。因此，就下半年指南而言，我們預計將保持重新奪回市場份額的勢頭，儘管再次沒有達到我們最初預期的速度，但我們預計將在第三季度重新奪回並獲得市場份額第四季度，這將有助於推動部分成長。

We also expect the back half of the year to be better in specialty. We have the new product launch in North America on the implant. We also we do expect special to do better and we expect that technology business bounce back a little better in the second half as well. So all of those would be contributors to that.

我們也預計今年下半年專業領域會更好。我們在北美推出了有關植入物的新產品。我們也確實預期特殊業務會做得更好，我們預期科技業務在下半年也會有更好的反彈。所以所有這些都將對此做出貢獻。

In terms of your question around a brand. I do think that we are seeing, like I said, we see some move towards corporate brand. Those are better margins for us. It doesn't quite show up on the top line. So it does help contribute a little bit for some of that gross margin favorability you see out there.

就你關於品牌的問題而言。我確實認為，正如我所說，我們看到了一些向企業品牌邁進的舉措。這些對我們來說是更好的利潤。它並沒有完全顯示在頂行。因此，它確實有助於為您看到的毛利率帶來一點好處。

Let me -- Ron thank you. Let me just add one other thing. The larger accounts of growing at a faster rate than the very small. The larger ones are more conscious of alternative brands where they can get better pricing. As I noted earlier on, it's not bad for our gross profit, it's actually quite good.

讓我——羅恩謝謝你。讓我補充一件事。大帳戶的成長速度比小帳戶的成長速度更快。較大的公司更注重替代品牌，在那裡他們可以獲得更好的價格。正如我之前指出的，這對我們的毛利來說並不壞，實際上相當不錯。

So just because large customers are growing at a faster rate than the smaller ones, alternate options of brands our feature to a greater extent in the pipe buying patterns of our large customers. And this is shifting to certain manufacturers, auto manufacturers that are prepared to give price discounts for large contracts -- larger contracts, and it does depress our sales a little bit, but certainly good for gross profit. Okay. Got it. Yes.

因此，正因為大客戶的成長速度快於小客戶，品牌的替代選擇在更大程度上影響了大客戶的管道購買模式。這種情況正在轉向某些製造商，汽車製造商，他們準備為大合同提供價格折扣——更大的合同，這確實會稍微壓低我們的銷售額，但肯定有利於毛利潤。好的。知道了。是的。

Yeah, so we are now four minutes late. Let me end by thanking everyone for participating. I realize it is a complex quarter from a math point of view. Ron, Graham, Susan are ready to meet with you of course, I will make myself available as well. The business is solid. It's been that way for decades. Have we had bumps along the way, yes we have that the cyber incident before that we had the COVID period like [2008, '9].

是的，所以我們現在遲到了四分鐘。最後，我要感謝大家的參與。我意識到從數學角度來看這是一個複雜的季度。當然，羅恩、格雷厄姆、蘇珊已經準備好與您會面，我也會有空。生意很紮實。幾十年來一直如此。我們一路走來是否曾經遇過坎坷，是的，我們有網路事件，之前我們有過像[2008, '9]這樣的新冠病毒時期。

We had some challenges also because of the economy doesn't feel like it's as bad this time, but we have to make sure that we respond accordingly. Although our sales are not what we wanted them to be from the economic point of view, I think there's a little bit more shopping on price and I think it's between us necessarily our competition between brands.

我們也遇到了一些挑戰，因為這次經濟感覺沒有那麼糟糕，但我們必須確保我們做出相應的反應。雖然從經濟角度來看，我們的銷售額並沒有達到我們想要的水平，但我認為價格上的購物更多了一些，我認為這必然是我們之間品牌之間的競爭。

We can -- I think cover that well, whether it's on the consumables or the equipment side, and we just have to make sure that our expense structure matches our gross profit, so we can continue to grow gross profit and continue to grow our operating profits pretty good at executing on this will begin right by month. I'm not sure I don't think so, but we will get a run (inaudible) in the medium to long term.

我們可以——我認為很好地涵蓋了這一點，無論是在消耗品還是設備方面，我們只需要確保我們的費用結構與我們的毛利潤相匹配，這樣我們就可以繼續增加毛利並繼續增加我們的營運執行此操作的良好利潤將在每個月開始。我不確定我不這麼認為，但從中長期來看，我們會取得進展（聽不清楚）。

So confident in the business and feel very good about our strategic direction. We will give you more information on the '25 to '27 strategic plan. It's just been finalized, not a change, but it's going to be an emphasis and maybe a lightening up of certain parts of the business and a heavy emphasis on other parts will give you that information.

對業務充滿信心，並對我們的策略方向感到非常滿意。我們將為您提供有關 '25 至 '27 戰略計劃的更多資訊。它只是敲定，不是改變，但它將是一個重點，也許減輕業務的某些部分並重點強調其他部分會給你這些資訊。

But we are pretty comfortable with the business (inaudible) very pleased with our senior management team, our management team in general, and again remain optimistic and we gave you our best ideas on where companies go from a mathematical point of view. And this team has delivered in the past and we very comfortable that it's the same team, lots of succession, but the team in place has been around for a while.

但我們對這項業務非常滿意（聽不清楚），對我們的高階管理團隊和我們的整體管理團隊非常滿意，並且再次保持樂觀，我們從數學的角度為您提供了有關公司發展方向的最佳想法。這個團隊過去已經交付了成果，我們很放心，這是同一個團隊，有很多接班人，但現有的團隊已經存在了一段時間。

Many functions moved because of time and people moved (inaudible) kind of good job in that area and in the businesses in general. So I thank you again, and the team is ready to take questions just reach out to them and they will scheduled time with you. Thank you very much, everyone.

許多職能隨著時間的推移而轉移，人們在該領域和整個企業中獲得了不錯的工作（聽不清楚）。因此，我再次感謝您，團隊已準備好回答問題，只需與他們聯繫，他們就會安排與您會面的時間。非常感謝大家。

Ladies and gentlemen, that does conclude 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。