Integra Lifesciences Holdings Corp (IART) 2024 Q3 法說會逐字稿

Good day. Thank you for standing by. Welcome to Integra LifeSciences third-quarter 2024 financial results conference call. (Operator Instructions) Please note that today's conference is being recorded.

再會。謝謝你的支持。歡迎參加 Integra LifeSciences 2024 年第三季財務業績電話會議。（操作員指示）請注意，今天的會議正在錄製中。

I will now hand the conference over to your speaker host, Chris Ward, Senior Director of Investor Relations. Please go ahead.

我現在將會議交給演講主持人、投資者關係高級總監克里斯沃德 (Chris Ward)。請繼續。

Good morning, and thank you for joining the Integra LifeSciences third-quarter 2024 earnings conference call. With me on the call are Stuart Essig, Executive Chairman; Jan De Witte, President and Chief Executive Officer; and Lea Knight, Chief Financial Officer.

早安，感謝您參加 Integra LifeSciences 2024 年第三季財報電話會議。與我一起參加電話會議的是執行主席 Stuart Essig； Jan De Witte，總裁兼執行長；財務長莉奈特 (Lea Knight)。

Earlier this morning, we issued a press release announcing our third-quarter 2024 financial results. The release and corresponding earnings presentation, which we will reference during the call, are available at integralife.com under Investors, Events, and Presentation and a file named third-quarter 2024 earnings call presentation.

今天早上早些時候，我們發布了一份新聞稿，宣布了 2024 年第三季的財務表現。我們將在電話會議期間參考的新聞稿和相應的收益演示文稿可在integralife.com的投資者、活動和演示文稿下以及名為2024年第三季度收益電話會議演示文稿的文件中找到。

Before we begin, I would like to remind you that many of the statements made during this call may be considered forward looking. Factors that could cause actual results to differ materially are discussed in the company's Exchange Act reports filed with the SEC and in the release.

在我們開始之前，我想提醒您，本次電話會議中所做的許多陳述可能被視為前瞻性的。本公司向 SEC 提交的交易法報告和新聞稿中討論了可能導致實際結果出現重大差異的因素。

Also in our prepared remarks, we will reference reported in organic revenue growth and organic revenue growth excluding Boston. Organic revenue growth excludes the effects of foreign currency, acquisitions, and divestiture. Organic revenue growth excluding Boston excludes revenues from products manufactured in our Boston facility in both periods. Management believes that excluding revenue from all products manufactured at the Boston plant through the third quarter provide useful information when evaluating the company's organic growth because of the unusual nature of the manufacturing stoppage and voluntary global recall impact. Unless otherwise stated, all disaggregated and franchise-level revenue growth rates are based on organic performance.

此外，在我們準備好的演講中，我們將參考報告的有機收入成長和不包括波士頓的有機收入成長。有機收入成長不包括外匯、收購和資產剝離的影響。不包括波士頓在內的有機收入成長不包括我們波士頓工廠在這兩個時期生產的產品的收入。管理層認為，由於生產停頓和全球自願召回影響的不同尋常，在評估公司的有機增長時，排除波士頓工廠第三季度生產的所有產品的收入可以提供有用的信息。除非另有說明，所有分類和特許經營等級的收入成長率均基於有機績效。

Lastly, our comments today will include certain non-GAAP financial measures. Reconciliations of non-GAAP financial measures can be found in today's press release, which is an exhibit to Integra's current report on Form 8-K filed today with the SEC.

最後，我們今天的評論將包括某些非公認會計準則財務指標。非 GAAP 財務指標的調整可以在今天的新聞稿中找到，該新聞稿是 Integra 今天向 SEC 提交的 8-K 表格當前報告的展示。

And with that, I would like to turn the call over to Stuart.

說到這裡，我想把電話轉給史都華。

Thank you, Chris, and good morning, everyone.

謝謝你，克里斯，大家早安。

I am pleased today to announce the appointment of Mojdeh Poul as Integra's next CEO and to discuss our leadership transition. I'd like to start by thanking Jan for his leadership and contributions over the last three years and for his commitment to ensuring a seamless transition. During his tenure, Jan made a number of significant contributions and faced several difficult challenges. His hard work, dedication, and professionalism have been constant throughout.

今天，我很高興地宣布任命 Mojdeh Poul 為 Integra 的下一任首席執行官，並討論我們的領導層過渡。首先，我要感謝 Jan 在過去三年的領導和貢獻，以及他對確保無縫過渡的承諾。在任職期間，揚做出了許多重大貢獻，也面臨一些艱鉅的挑戰。他的努力、奉獻和專業始終如一。

Under his leadership, we grew our international business significantly and added of digital innovations to our product pipeline. We executed two important acquisitions: DuraSorb, which added an important synthetic product to our breast reconstruction pipeline; and more recently, Acclarent, cementing our entry into the ear, nose, and throat market.

在他的領導下，我們的國際業務顯著成長，並在我們的產品線中增加了數位創新。我們執行了兩項重要的收購：DuraSorb，它為我們的乳房重建管道添加了一個重要的合成產品；最近，Acclarent 鞏固了我們進入耳鼻喉市場的地位。

In addition, one of Jan's most important contribution has been his ability to recruit top talent to the company. His focus on building strong capable teams will leave a lasting impact on Integra. While many challenges remain, Jan's efforts have laid the groundwork for our future success. Thank you, Jan. On behalf of myself, the Board, and all of our employees, I wish you well.

此外，Jan 最重要的貢獻之一是他為公司招募頂尖人才的能力。他對建立強大團隊的關注將對 Integra 產生持久影響。儘管仍然存在許多挑戰，但 Jan 的努力為我們未來的成功奠定了基礎。謝謝你，Jan。

I'm also delighted that Mojdeh Poul will be joining us as Integra's next President and CEO in January. Before sharing details on Mojdeh's background, I want to underscore that the CEO search process was thorough and competitive, and the opportunity attracted a number of impressive candidates.

我還很高興 Mojdeh Poul 將於 1 月加入我們，擔任 Integra 的下一任總裁兼執行長。在詳細介紹 Mojdeh 的背景之前，我想強調執行長的搜尋過程是徹底且競爭激烈的，這個機會吸引了許多令人印象深刻的候選人。

Mojdeh is an accomplished healthcare executive with almost three decades of extensive experience leading global businesses and operations in complex multinational organizations. She has a proven track record of delivering growth and performance through operational excellence, portfolio transformation, value-creating innovation, and impactful capital allocation. Throughout her career, Mojdeh has successfully led business strategy, global operations, R&D, commercial execution, and M&A.

Mojdeh 是一位卓有成就的醫療保健主管，擁有近三十年在複雜的跨國組織中領導全球業務和營運的豐富經驗。她在透過卓越營運、投資組合轉型、創造價值的創新和有影響力的資本配置來實現成長和業績方面擁有良好的記錄。在她的整個職業生涯中，Mojdeh 成功領導了業務策略、全球營運、研發、商業執行和併購。

Mojdeh served in several leadership positions at 3M Company, including, most recently, Group President of Healthcare, an $8.5 billion global business. Prior to 3M, Mojdeh held leadership roles of increasing responsibility with Medtronic and Boston Scientific. She has also served on the Board of Directors of Align Technology, iRhythm Technologies, and Stanley Black & Decker.

Mojdeh 在 3M 公司擔任過多個領導職務，其中最近擔任醫療保健集團總裁，這是一家價值 85 億美元的全球業務。在加入 3M 之前，Mojdeh 在美敦力 (Medtronic) 和波士頓科學 (Boston Scientific) 擔任領導職務，職責不斷增加。她還曾擔任 Align Technology、iRhythm Technologies 和 Stanley Black & Decker 的董事會成員。

Throughout her career, Mojdeh has built and led high-performing teams across different functions, businesses, and geographies. Her product experience spans Integra's markets, including wound care, neurosurgery, and digital medical technologies. The Board and I have enjoyed getting to know Mojdeh well through this process, and we are very confident she will further strengthen our foundation and usher in our next chapter of innovation, growth, and shareholder value creation.

在她的整個職業生涯中，Mojdeh 建立並領導了跨不同職能、業務和地區的高績效團隊。她的產品經驗涵蓋 Integra 市場，包括傷口護理、神經外科和數位醫療技術。董事會和我很高興透過這個過程深入了解 Mojdeh，我們非常有信心她將進一步鞏固我們的基礎，並開啟我們創新、成長和股東價值創造的新篇章。

She joins us at a critical juncture in the company's history and is the right leader to drive improvements to Integra's quality, resilience, and capacity, building upon strong customer demand for our products and ensuring our portfolio is well positioned for continued growth. I know Mojdeh is looking forward to introducing herself to you when she officially joins us in January.

她在公司歷史的關鍵時刻加入我們，是推動 Integra 品質、彈性和能力改進的合適領導者，以客戶對我們產品的強勁需求為基礎，確保我們的產品組合為持續成長做好準備。我知道 Mojdeh 期待在一月份正式加入我們時向您介紹自己。

And now, I'll turn it over to Jan and Lea to discuss our third-quarter results.

現在，我將把它交給 Jan 和 Lea 來討論我們的第三季業績。

Good morning, everyone, and thank you, Stuart, for the nice words and acknowledgments. I look forward to welcoming Mojdeh as my successor and to working with her through a smooth transition to ensure we maintain the momentum along our improvement path.

大家早安，謝謝史都華的好言和致謝。我期待歡迎 Mojdeh 成為我的繼任者，並與她一起順利過渡，以確保我們在改進道路上保持勢頭。

Turning to slide 5 of our presentation, our third-quarter revenues were $381 million. Organic revenue decreased by 8.6% year over year, and we delivered adjusted EPS of $0.41. Our third-quarter results continue to reflect a strong demand for our portfolio. However, ongoing supply challenges limited our ability to deliver against this demand.

轉向我們簡報的幻燈片 5，我們第三季的收入為 3.81 億美元。有機收入年減 8.6%，調整後每股收益為 0.41 美元。我們的第三季業績持續反映出對我們投資組合的強勁需求。然而，持續的供應挑戰限制了我們滿足這項需求的能力。

Our Board, leadership team, and colleagues across the organization remain laser-focused on resolving these challenges. As we discussed during our second-quarter call, we initiated our compliance master plan, a comprehensive approach to enhance our quality management systems, our QMS compliance across our operations. We continue to work diligently to identify and resolve gaps in our QMS across our sites.

我們的董事會、領導團隊和整個組織的同事仍然專注於解決這些挑戰。正如我們在第二季電話會議中所討論的那樣，我們啟動了合規總體計劃，這是一種增強我們的品質管理系統和整個營運的品質管理系統合規性的綜合方法。我們將繼續努力找出並解決各工廠品質管理系統中的差距。

As we told you last quarter, we expect the assessments and corrective actions to continue through 2025. We're also investing in facility and equipment upgrades to improve quality, resilience, and capacity to ensure we meet the long-term customer demand. We remain fully committed to doing what's right for our customers, patients, employees, and shareholders.

正如我們上季度告訴您的那樣，我們預計評估和糾正措施將持續到 2025 年。我們也投資設施和設備升級，以提高品質、彈性和容量，以確保滿足客戶的長期需求。我們仍然完全致力於為我們的客戶、患者、員工和股東做正確的事情。

Turning now to an overview of our results for the quarter. Organic growth in our Codman Specialty Surgical business was down 10.7%, primarily due to the shipping holds we discussed during our second-quarter earnings call. Most of these shipping holds have been lifted, with only a portion of them still needing to be resolved, as was our expectation. These supply challenges overshadowed the continued significant demand for our neurosurgery products.

現在回顧我們本季的業績。我們的 Codman 特種外科業務的有機成長下降了 10.7%，主要是由於我們在第二季財報電話會議上討論了運輸暫停。正如我們的預期，大部分運輸擱置已被解除，只有一部分仍需要解決。這些供應挑戰掩蓋了對我們神經外科產品的持續巨大需求。

We saw high-single-digit growth in specialty surgical instruments, and we continue to see significant reported growth and solid organic growth in our ENT business. The integration of the Acclarent business has continued to outperform our expectations to date. We're pleased with the team's collaboration and remain excited about the growth opportunities in ENT and the synergies with our neurosurgery business.

我們看到了特種手術器械的高個位數成長，並且我們繼續看到耳鼻喉科業務的顯著成長和穩健的有機成長。迄今為止，Acclarent 業務的整合繼續超出我們的預期。我們對團隊的合作感到滿意，並對耳鼻喉科的成長機會以及與我們的神經外科業務的協同效應感到興奮。

Strong demand in our international markets was also obscured by the shipping holds, resulting in a low-double-digit decline in the quarter. Nevertheless, as we look to the future, we remain encouraged by the momentum in our international business and the expansion of our commercial reach.

國際市場的強勁需求也被船運擱置所掩蓋，導致本季出現兩位數的低跌幅。儘管如此，當我們展望未來時，我們仍然對國際業務的勢頭和商業覆蓋範圍的擴大感到鼓舞。

Within tissue technologies, revenues were down 3.7% because production was not yet able to meet the strong demands for Integra Skin. We continue to deliver strong growth in DuraSorb and our UBM portfolio, including MicroMatrix and Cytal, and double-digit growth in our private label business. And our second-half production for Integra Skin will allow us to return to historical revenue run rate for the fourth quarter.

在組織技術領域，收入下降了 3.7%，因為生產尚無法滿足 Integra Skin 的強勁需求。我們繼續在 DuraSorb 和我們的 UBM 產品組合（包括 MicroMatrix 和 Cytal）中實現強勁成長，並在我們的自有品牌業務中實現兩位數成長。我們下半年 Integra Skin 的生產將使我們能夠恢復到第四季度的歷史收入運作率。

We're also pleased with the progress our team is making with the buildout of the Braintree facility. We have largely completed construction and have begun installing equipment within the facility as we continue to work towards bringing the Braintree facility online and resuming production of SurgiMend and PriMatrix in the first half of 2026.

我們也對我們的團隊在布倫特里設施擴建方面取得的進展感到高興。我們已基本完成施工並開始在設施內安裝設備，我們將繼續努力使 Braintree 設施上線並在 2026 年上半年恢復 SurgiMend 和 PriMatrix 的生產。

Now turning to our guidance, we are tightening our full-year 2024 revenue and adjusted EPS guidance to a range of $1.609 billion to $1.619 billion and $2.41 to $2.49, respectively. While we delivered on the high end of our third-quarter guidance, the tightening of the top end of our guide range reflects recent quality holds resulting from the ongoing remediation work taking place as we implement the compliance master plan. We're actively working to remediate the holds and release the products back to market. We expect many of these holds to be resolved within the fourth quarter, with the remaining products remediated by mid-2025. Lea will provide additional color on our guidance for fourth quarter and full year later in this call.

現在轉向我們的指導，我們將 2024 年全年收入和調整後每股收益指引分別收緊至 16.09 億美元至 16.19 億美元和 2.41 美元至 2.49 美元的範圍。雖然我們實現了第三季指導的上限，但指導範圍上限的收緊反映了我們在實施合規總體計劃時正在進行的持續補救工作導致的近期品質問題。我們正在積極努力修復被擱置的問題並將產品放回市場。我們預計其中許多產品將在第四季度內解決，其餘產品將在 2025 年中期修復。Lea 將在本次電話會議中為我們第四季和全年的指導提供更多資訊。

So in summary, while we still have challenges left to overcome, we're making progress across our key initiatives and on delivering on our commitments.

總而言之，雖然我們仍有挑戰需要克服，但我們在關鍵措施和兌現承諾方面正在取得進展。

And with that, I'll turn the call now over to Lea to provide more detail on our financial results and guidance.

現在，我將把電話轉給 Lea，提供有關我們財務業績和指導的更多詳細資訊。

Thank you, Jan. Let's take a more detailed look at our third-quarter financial highlights starting on slide 6.

謝謝 Jan。

As Jan mentioned, the third quarter's total revenues were approximately $381 million, which was approximately flat on a reported basis and down 8.6% on an organic basis compared to last year. Our adjusted EPS for the quarter was $0.41, down 46% compared to 2023.

正如 Jan 所提到的，第三季的總收入約為 3.81 億美元，與報告基礎上基本持平，與去年相比有機下降 8.6%。本季調整後每股收益為 0.41 美元，比 2023 年下降 46%。

As we look down the P&L, gross margins were 63% for the third quarter, down 160 basis points versus 2023. Gross margins in 2024 were impacted by higher manufacturing inefficiencies, including scrap, along with unfavorable revenue mix such as lower skin revenue. This was partially offset by impact from Boston on the prior year gross margin.

當我們查看損益表時，第三季的毛利率為 63%，比 2023 年下降了 160 個基點。2024 年的毛利率受到包括廢品在內的更高的製造效率低下以及不利的收入組合（例如皮收入下降）的影響。這被波士頓對上一年毛利率的影響部分抵銷。

Our adjusted EBITDA margins were 16.2%, down 680 basis points compared to 2023, reflecting the decrease in gross margins and the impact of maintaining key investments in R&D and commercial infrastructure while we resolve the temporary shipping hold.

我們調整後的 EBITDA 利潤率為 16.2%，比 2023 年下降 680 個基點，反映了毛利率的下降以及在我們解決臨時運輸暫停問題的同時維持研發和商業基礎設施關鍵投資的影響。

Operating cash flow for the third quarter was $22.5 million.

第三季營運現金流為 2,250 萬美元。

If you turn to slide 7, we'll examine our CSS revenue highlights for the third quarter in more detail. Reported third-quarter revenues in CSS were $271 million, up 1% on a reported basis and down 10.7% on an organic basis from the prior year.

如果您翻到投影片 7，我們將更詳細地研究第三季的 CSS 收入亮點。CSS 報告的第三季營收為 2.71 億美元，報告基礎上成長 1%，有機基礎上比上年下降 10.7%。

Global sales in neurosurgery declined 16% on an organic basis, largely due to supply challenges in Dural access and repair and the temporary shipping hold in CSS management and neuromonitoring that we discussed earlier in our remarks and during our July call. These holds have largely been resolved within the third quarter, and the remaining shipping holds are in line with the expectations we set in our July guidance. The decline in neurosurgery was partially offset by mid-single-digit growth in advanced energy, driven by CUSA capital and disposables.

神經外科領域的全球銷售額有機下降了16%，這主要是由於硬腦膜進入和修復方面的供應挑戰以及CSS 管理和神經監測方面的暫時運輸暫停（我們在前面的講話和7 月份的電話會議中討論過）。這些擱置已在第三季內基本解決，剩餘的運輸擱置符合我們在 7 月指導中設定的預期。神經外科領域的下滑被 CUSA 資本和可支配資產推動的先進能源領域的中個位數成長部分抵消。

Our ENT business saw 5.3% organic growth for the third quarter. As a reminder, the organic growth in our ENT reporting segment will reflect only the MicroFrance ENT instruments for the first 12 months following the close of the Acclarent acquisition, which took place on April 1. On a reported basis, Acclarent delivered revenues of approximately $30 million. We remain pleased with the integration and excited about the future growth potential of the ENT segment.

我們的耳鼻喉科業務第三季有機成長 5.3%。提醒一下，我們耳鼻喉科報告部門的自然成長將僅反映 4 月 1 日 Acclarent 收購結束後前 12 個月的 MicroFrance 耳鼻喉科儀器。根據報告，Acclarent 的收入約為 3000 萬美元。我們對整合感到滿意，並對耳鼻喉科領域的未來成長潛力感到興奮。

For the third quarter, our capital sales were up low double digits, driven by the CereLink relaunch, low-double-digit growth in CUSA Clarity, and high-single-digit growth in MAYFIELD capital. Our global capital funnel remains robust and well positioned to continue to deliver strong growth.

第三季度，在 CereLink 重新啟動、CUSA Clarity 低兩位數成長以及 MAYFIELD 資本高個位數成長的推動下，我們的資本銷售成長了兩位數。我們的全球資本管道依然強勁，並有能力持續實現強勁成長。

Turning to instruments, we saw 8.7% growth primarily due to strong demand along with order timing.

談到儀器，我們看到了 8.7% 的成長，主要是由於強勁的需求和訂單時機。

Shifting to our international business results within CSS, we saw a low-double-digit decline in the quarter, mostly attributable to the temporary shipping holds. These holds affected our ability to meet customer demand for the quarter; however, we remain confident in the growth prospects for our international business.

轉向 CSS 內的國際業務業績，我們發現本季出現兩位數的低點下滑，這主要歸因於臨時運輸暫停。這些保留影響了我們滿足本季客戶需求的能力；然而，我們對國際業務的成長前景仍充滿信心。

Moving to our tissue technologies segment on slide 8, tissue technologies sales were $110 million, down 3.6% on a reported basis and 3.7% on an organic basis compared to the prior year. Excluding the prior year impact from the return of product manufactured in Boston, organic growth was down 9.4%.

轉到幻燈片 8 上的組織技術部分，組織技術銷售額為 1.1 億美元，與前一年相比，報告基礎上下降 3.6%，有機基礎上下降 3.7%。排除上一年波士頓製造產品退貨的影響，有機成長下降 9.4%。

Sales in wound reconstruction were down mostly because production shortfalls for Integra Skin did not allow us to fully meet demand and a challenging year-over-year comparison. We have continued to ramp production in Integra Skin through the third quarter and expect to return to historical revenue run rate in the fourth quarter.

傷口重建領域的銷售下降主要是因為 Integra Skin 的產量短缺使我們無法完全滿足需求，而且比去年同期比較具有挑戰性。我們在第三季繼續提高 Integra Skin 的產量，並預計在第四季度恢復到歷史收入運行速度。

The headwind from Integra Skin was partially offset by strong growth across the remainder of the wound reconstruction franchise, including low double-digit growth for DuraSorb, which continues to outpace the deal model for that acquisition. We also saw low-double-digit growth of MicroMatrix and Cytal in our UBM platform. Overall, the UBM platform grew by high-single digits, demonstrating continued strong demand.

Integra Skin 的逆風被傷口重建業務其餘業務的強勁成長部分抵消，其中包括 DuraSorb 的低兩位數成長，該業務繼續超過該收購的交易模式。我們也看到了 UBM 平台中 MicroMatrix 和 Cytal 的低兩位數成長。總體而言，UBM 平台實現了高個位數成長，顯示需求持續強勁。

Private label sales were up approximately 13% compared to last year due to favorable order timing. Finally, international sales in tissue technologies were down mid-double digits due to the Integra Skin production shortages.

由於有利的訂單時機，自有品牌銷售額比去年增長了約 13%。最後，由於 Integra Skin 生產短缺，組織技術的國際銷售額下降了兩位數。

If you turn to slide 9, I will discuss our balance sheet, capital structure, and cash flow. During the quarter, operating cash flow was $22.5 million and free cash flow was negative $7.2 million, driven primarily by the revenue impact of the shipping hold and production shortages referenced in our previous remarks and continued investments in CapEx. Free cash flow conversion was 19.7% on a trailing 12-month basis.

如果你翻到投影片 9，我將討論我們的資產負債表、資本結構和現金流。本季度，營運現金流為 2,250 萬美元，自由現金流為負 720 萬美元，這主要是由於我們先前的評論中提到的運輸擱置和生產短缺對收入的影響以及資本支出的持續投資。過去 12 個月的自由現金流轉換率為 19.7%。

As of September 30, net debt was $1.5 billion and our consolidated total leverage ratio was 4 times. We are focused on bringing our consolidated leverage ratio back within our target range of 2.5 to 3.5 times, with the most immediate benefit coming from resolving the shipping holds in our neurosurgery business and returning to historical revenue run rates for Integra Skin in the fourth quarter.

截至 9 月 30 日，淨債務為 15 億美元，我們的綜合總槓桿率為 4 倍。我們的重點是使我們的綜合槓桿率回到 2.5 至 3.5 倍的目標範圍內，最直接的好處來自於解決我們神經外科業務的運輸問題，並在第四季度恢復 Integra Skin 的歷史收入運行率。

The company had total liquidity of $1.2 billion, including $277 million in cash and short-term investments and the remainder available under our revolving credit facility.

該公司的流動資金總額為 12 億美元，其中包括 2.77 億美元的現金和短期投資，其餘部分可透過我們的循環信貸安排獲得。

If you turn to slide 10, we would like to highlight a few key points about our balance sheet and capital structure as we approach the end of 2024 and prepare for 2025. While we remain focused on improving our cash flow generation, we are confident we have the balance sheet strength and liquidity, including flexibility in our bank facility, to make the essential investments in our operations and long-term growth strategies.

如果您翻到投影片 10，我們想強調在 2024 年底臨近並為 2025 年做準備時，有關我們資產負債表和資本結構的幾個關鍵點。雖然我們仍然專注於改善現金流生成，但我們相信我們擁有資產負債表實力和流動性，包括銀行融資的靈活性，可以對我們的營運和長期成長策略進行必要的投資。

Just as a reminder, the EBITDA used in calculating our consolidated leverage ratio includes add-backs for both stock-based compensation and the pro forma impact of the Acclarent acquisition. We have sufficient room under our existing credit facility to repay our convertible bond coming due in the third quarter of 2025, and in the short term, we are likely to fund the repayment using our revolver.

提醒一下，計算我們的綜合槓桿率時使用的 EBITDA 包括基於股票的薪酬和 Acclarent 收購的預計影響的加回。我們現有的信貸安排有足夠的空間來償還 2025 年第三季到期的可轉換債券，並且在短期內，我們可能會使用我們的左輪手槍為償還提供資金。

With our existing interest rate swaps, as disclosed in our 10-Q, we will have approximately $900 million of fixed rate debt in the low 3% range through the end of 2027. We will continue to monitor the rate environment and work to maintain sufficient liquidity in our capital structure.

根據我們在 10-Q 中揭露的現有利率互換，到 2027 年底，我們將擁有約 9 億美元的固定利率債務，處於 3% 的低利率區間。我們將持續監控利率環境，並努力維持資本結構充足的流動性。

If you turn to slide 11, I will provide our consolidated revenue and adjusted earnings per share guidance for the fourth quarter and full year 2024. For the fourth quarter, we expect revenues in the range of $441 million to $451 million, representing a reported growth range of 11.1% to 13.6% and an organic growth range of 2% to 4.5%.

如果您翻到投影片 11，我將提供 2024 年第四季和全年的綜合收入和調整後每股盈餘指引。對於第四季度，我們預計營收在 4.41 億美元至 4.51 億美元之間，報告的成長範圍為 11.1% 至 13.6%，有機成長範圍為 2% 至 4.5%。

Our fourth-quarter guidance reflects a step-up in sequential revenue driven by the resolution of the majority of the shipping holds we identified on our second-quarter call, the production of Integra Skin allowing us to meet historical revenue run rate for the fourth quarter, and normal seasonality. This sequential step-up in revenue will be partially offset by incremental quality holds we have implemented in the fourth quarter.

我們的第四季度指導反映了我們在第二季度電話會議中確定的大多數運輸擱置問題得到解決所推動的連續收入的增長，Integra Skin 的生產使我們能夠滿足第四季度的歷史收入運行率和正常的季節性。收入的連續成長將被我們在第四季度實施的品質增量所部分抵銷。

For the full year 2024, revenues are forecasted to be in the range of $1.609 billion to $1.619 billion, representing reported growth of 4.4% to 5%, and organic growth in the range of approximately minus 1.7% to minus 1%. We estimate an approximate 150-basis-point decline in gross margin for the full year, reflecting the impact of the supply challenges, investments, and costs associated with implementation of the compliance master plan. For the fourth quarter, we expect adjusted EPS to be in the range of $0.81 to $0.89 and $2.41 to $2.49 per share for the full year.

2024 年全年營收預計將在 16.09 億美元至 16.19 億美元之間，報告成長率為 4.4% 至 5%，有機成長率約為 -1.7% 至 -1%。我們預計全年毛利率將下降約 150 個基點，反映了與實施合規總體計畫相關的供應挑戰、投資和成本的影響。我們預計第四季度調整後每股收益將在 0.81 至 0.89 美元之間，全年每股調整後每股收益將在 2.41 至 2.49 美元之間。

Finally, on slide 12, you will see a summary of our guidance considerations and the key assumption for FX rates, tax rates, and share count assumed in our guidance for reference.

最後，在投影片 12 上，您將看到我們的指導考慮因素的摘要以及我們的指導中假設的匯率、稅率和股票數量的關鍵假設以供參考。

I will now turn the call over to Jan for his closing remarks.

現在我將把電話轉給簡，讓他發表閉幕詞。

Thank you, Lea. If you turn to slide 13, I will wrap up our prepared remarks.

謝謝你，莉亞。如果你翻到投影片 13，我將總結我們準備好的發言。

Across our organization, we remain fully committed to addressing gaps in our quality management system and ensuring our supply meets growing market demand for our products. We've made significant progress in resolving many of the shipping holds in our CSS business, the Acclarent integration continues to go smoothly, and we're ramping production of Integra Skin back to historical revenue run rates.

在我們的整個組織中，我們仍然完全致力於解決品質管理系統中的差距，並確保我們的供應滿足市場對產品不斷增長的需求。我們在解決 CSS 業務中的許多運輸問題方面取得了重大進展，Acclarent 整合繼續順利進行，並且我們正在將 Integra Skin 的產量恢復到歷史收入運行率。

While we are encouraged by this progress, we also recognize we still have a lot of work to do. As I prepare to step down as CEO, I do so with a mix of pride and optimism. While I'm proud of our achievements over the past three years, I also acknowledge the challenges that remain.

雖然我們對這項進展感到鼓舞，但我們也意​​識到我們仍然有很多工作要做。當我準備辭去執行長職務時，我懷著自豪和樂觀的心情。雖然我對過去三年所取得的成就感到自豪，但我也承認仍有挑戰。

In welcoming Mojdeh, I leave Integra knowing the organization is in capable hands, with an exceptional leadership team and dedicated colleagues focused on strengthening Integra's resiliency and predictability. The company is well positioned for continued growth, supported by a strong pipeline of innovative products that will improve the lives of our customers and their patients for years to come.

在歡迎 Mojdeh 之際，我在離開 Integra 時知道，該組織由有能力的人管理，擁有出色的領導團隊和敬業的同事，致力於加強 Integra 的彈性和可預測性。在強大的創新產品系列的支持下，該公司已做好持續成長的準備，這些產品將在未來幾年改善我們的客戶及其患者的生活。

My commitment to Integra has been unwavering, and I remain focused on a successful transition and deeply invested in the company's future success. I would like to extend my heartfelt thanks to Stuart, our Board of Directors, our management team, and all of our colleagues around the world. I'm very proud of what we are accomplishing together.

我對 Integra 的承諾始終堅定不移，我仍然專注於成功轉型，並為公司未來的成功投入大量資金。我謹向史都華、我們的董事會、我們的管理團隊以及我們在世界各地的所有同事表示衷心的感謝。我對我們共同取得的成就感到非常自豪。

And with that, I'd like to open the line for Q&A.

至此，我想開通問答專線。

(Operator Instructions) Steven Lichtman, Oppenheimer.

（操作員說明）Steven Lichtman，奧本海默。

Thank you. Good morning, everyone, and best of luck, Jan. Just a couple for me. I guess first, what are you seeing from the commercial organization and customer stability as you've been going through the supply challenges over the last few quarters?

謝謝。大家早上好，祝你好運，Jan。我想首先，當您在過去幾季經歷供應挑戰時，您對商業組織和客戶穩定性有何看法？

Good morning, Steve. Thank you for that question. Our protocols in most cases were not long term. They span several SKUs, but the duration of each of those holds was not extended.

早安，史蒂夫。謝謝你提出這個問題。在大多數情況下，我們的協議都不是長期的。它們跨越多個 SKU，但每個保留的持續時間都沒有延長。

In addition, those products are differentiated. Customers choose them based on the features and specific attributes they offer. And across -- or over the different months and as we resolve -- we do all we need to protect strong relationships between our very capable sales reps and those customers. And so with that mix of capabilities and focus, we feel strong about retaining our share with the customers.

此外，這些產品具有差異化。客戶根據它們提供的功能和特定屬性來選擇它們。在整個過程中，或在不同的月份裡，當我們下定決心時，我們會盡一切努力保護我們非常有能力的銷售代表和這些客戶之間的牢固關係。因此，透過這種能力和重點的結合，我們有能力保留與客戶的份額。

Got it. And then, Lea, last quarter, you provided, I think, some initial thoughts on '25. Any changes to your thinking, with a few more months past in the compliance master plan and obviously with Mojdeh taking over in January, any additional thoughts you can provide broadly on '25?

知道了。然後，Lea，上個季度，我認為您提供了關於 25 的一些初步想法。隨著合規總體計劃的幾個月過去，並且顯然 Mojdeh 將於 1 月份上任，您的想法是否會發生任何變化？

Certainly, Steven. And to your point, we did not provide guidance briefly in 2025, but we did provide a way of thinking about 2025. And we continue to believe that it's fair to expect 2025 to show mid-single-digit organic growth over what we're now calling full year 2024.

當然，史蒂文。就您而言，我們沒有提供 2025 年的簡要指導，但我們確實提供了一種思考 2025 年的方式。我們仍然相信，與我們現在所說的 2024 年全年相比，預計 2025 年將出現中個位數的有機成長是合理的。

Even with the additional quality holds that we've talked about impacting Q4, they are within kind of the type of supply disruptions that we referenced. I don't really change our overall thinking in terms of magnitude of impact for potential supply disruption in all of 2025. So that is still good guidance.

即使我們談到了影響第四季度的額外品質問題，它們也屬於我們提到的供應中斷類型。對於 2025 年全年潛在供應中斷的影響程度，我並沒有真正改變我們的整體想法。所以這仍然是一個很好的指導。

Okay. Thank you. I'll jump back in queue.

好的。謝謝。我會插回隊列。

Vik Chopra, Wells Fargo.

維克喬普拉，富國銀行。

Hey. Good morning, and thanks for taking my questions. Jan, it was a pleasure working with you over the past two years and wishing you all the best in your retirement, and also a warm welcome to Mojdeh.

嘿。早上好，感謝您回答我的問題。Jan，很高興在過去的兩年與您一起工作，祝您退休後一切順利，並熱烈歡迎 Mojdeh。

A couple of questions for me. So I guess first, did you see any procedures move from 3Q into 4Q as a result of the hurricane? And could the IV shortages impact your portfolio? And then a quick follow-up for me, please.

有幾個問題問我。所以我想首先，您是否看到任何程序因颶風而從第三季度轉移到第四季度？靜脈注射短缺會影響您的投資組合嗎？然後請快速跟進我。

Good morning, Vik, and thank you for the nice words. So no, we have not seen any significant impacts from hurricanes in terms of procedures moving across.

早安，維克，謝謝你的好話。所以，我們還沒有看到颶風對程序轉移有任何重大影響。

If you could repeat your second part of the question. I didn't fully get that.

如果您可以重複問題的第二部分。我沒有完全明白這一點。

I'm sorry. The second part of the question was, have you seen any shortages or expecting any shortages from the tailing impact on your surgical procedures?

對不起。問題的第二部分是，您是否看到任何短缺或預計尾礦對您的外科手術的影響會出現任何短缺？

No, we have not.

不，我們沒有。

Got it. Thank you. And then my follow-up question is for Lea. Maybe, Lea, are you still expecting a $10 million impact in Q4 from the shipping holds? I don't think I heard a number. Thank you so much.

知道了。謝謝。我的後續問題是問 Lea 的。也許，Lea，您仍然預計第四季度運輸擱置會造成 1000 萬美元的影響嗎？我想我沒有聽到任何數字。太感謝了。

Yes, certainly. So yeah, to your point, if you recall in our July discussion, we talked about the compliance shipping holds having an estimated impact of about $50 million in Q3. And based on an expectation of being able to resolve most of those shipping holds in Q3, it would have a much more limited impact in Q4. And at the time, we estimated about $10 million, we continue to believe that true. So we are on pace for a much smaller impact in Q4; order of magnitude is about $10 million.

是的，當然。所以，是的，就您的觀點而言，如果您還記得在我們 7 月份的討論中，我們談到了合規運輸暫停對第三季度的估計影響約為 5000 萬美元。基於能夠在第三季解決大部分運輸擱置的預期，第四季的影響將更加有限。當時，我們估計約為 1000 萬美元，我們仍然相信這是真的。因此，我們預計第四季度的影響將小得多；數量級約1000萬美元。

Thank you.

謝謝。

Ryan Zimmerman, BTIG.

瑞安·齊默爾曼，BTIG。

Good morning. Thanks for taking our questions, Jan. Best of luck with the family in Europe.

早安.感謝您回答我們的問題，Jan。

I guess I want to talk about margins a little bit. I mean, Lea, I know we're not getting guidance for '25, but just is there anything to kind of consider in terms of the margin recovery? Do you feel like we're through kind of the trough, if you will, in terms of the margin dynamics? And it's reasonable to assume that as products come back online that you get more Integra Skin, that we should see some improvement in margins as we enter and go into '25.

我想我想談談利潤率。我的意思是，Lea，我知道我們沒有得到 25 年的指導，但在利潤恢復方面有什麼需要考慮的嗎？如果您願意的話，您是否認為我們正在經歷利潤動態方面的低谷？可以合理地假設，隨著產品重新上線，您將獲得更多 Integra Skin，當我們進入 25 世紀時，我們應該會看到利潤率有所改善。

Certainly, Ryan. So I'll step through it in two levels. So first, from a gross margin perspective, what we shared previously was, as you look at a full year 2025 and we're under a full year of our compliance master plan, we would continue to expect a little bit of a headwind on gross margins, the order of magnitude 60 to 80 basis points. We still expect that kind of order of magnitude again as we move from '24 into '25 at a gross margin level.

當然，瑞安。因此，我將分兩個級別逐步介紹它。首先，從毛利率的角度來看，我們之前分享的是，當你看到 2025 年全年時，我們正處於合規總體計劃的全年之中，我們將繼續預計毛利率會出現一些阻力利潤率的數量級為60至80個基點。當我們的毛利率水準從 24 年進入 25 年時，我們仍然預計會再次出現這種數量級。

From an EBITDA margin level, to your point, what we saw in Q3 margins of 16.2% is not representative of the profitability on this business. Q3 was disproportionately impacted by the compliance shipping holds that we talked about during our Q2 calls. Since we were able to resolve most of those, the majority of those in Q3, you would expect to see improving profitability into Q4. On a full-year basis, once again, while we're not providing guidance on 2025, I think it's fair to think of full-year '25 EBITDA margins being similar to full year 2024.

從 EBITDA 利潤率水準來看，我們在第三季看到的 16.2% 的利潤率並不能代表該業務的獲利能力。第三季受到我們在第二季電話會議中談到的合規運輸持有的影響尤為嚴重。由於我們能夠解決其中的大部分問題（其中大部分是在第三季度），因此您預計第四季度的盈利能力將有所改善。再次以全年為基礎，雖然我們沒有提供 2025 年的指導，但我認為可以公平地認為 25 年全年 EBITDA 利潤率與 2024 年全年相似。

That's very helpful, Lea. And I know Mojdeh is going to come in and have her views on the company. I guess I just want to ask less quantitatively and more qualitatively around 2025. I mean, given that the recovery is not slated, particularly in tissue until 2026, in your mind, how should we think about '25 in a more qualitative manner? I mean, is it a transition? Is it heads down?

這很有幫助，莉亞。我知道 Mojdeh 會進來表達她對公司的看法。我想我只是想在 2025 年左右少一些定量的詢問，多一些定性的詢問。我的意思是，考慮到復甦尚未確定，特別是在 2026 年之前的組織方面，在您看來，我們應該如何以更定性的方式思考「25」？我的意思是，這是一個過渡嗎？是低頭嗎？

I guess what I'm trying to kind of contemplate is whether there could be some level of improvement or upside and we shouldn't think of '25 necessarily as just a lost year for Integra, given that we're not going to really get back to resumption in 2026. I don't know if you have any kind of high-level strategic thoughts about '25 at this point.

我想我想思考的是是否可以有一定程度的改進或上行空間，我們不應該認為 25 年對於 Integra 來說一定是失去的一年，因為我們不會真正得到回到2026年恢復。我不知道你現在是否對25年有任何高層戰略想法。

Hey, Ryan. It's Stuart Essig. Maybe I can try to help with that. Let me talk a little bit about Mojdeh's onboarding and where she's going to be spending time.

嘿，瑞安。我是斯圖爾特·埃西格。也許我可以嘗試幫忙。讓我談談 Mojdeh 的入職以及她將在哪裡度過時間。

She'll be joining us in early January, and she'll spend the better part of January and February meeting with Integra leaders, colleagues, and customers, attending our annual sales meetings and visiting many of our sites across Integra. And of course, she'll be meeting with investors. She's going to be listening and learning about our business and getting to know the teams.

她將於 1 月初加入我們，並在 1 月和 2 月的大部分時間與 Integra 領導、同事和客戶會面，參加我們的年度銷售會議並參觀我們在 Integra 上的許多站點。當然，她還會見投資者。她將傾聽和了解我們的業務並了解團隊。

After that, with the support of the executive leadership team, Mojdeh's going to be focused on shaping and executing our neurosurgery, tissue technology, and ENT strategic priorities. These include improving our product quality and regulatory compliance, advancing our site resilience, and executing on our manufacturing capacity initiatives. And while executing on our operational priorities is important, she'll also focus on maximizing the potential of Integra's strong product portfolio.

此後，在執行領導團隊的支持下，Mojdeh 將專注於制定和執行我們的神經外科、組織技術和耳鼻喉科策略重點。其中包括提高我們的產品品質和法規遵循、提高我們的現場彈性以及執行我們的製造能力計劃。雖然執行我們的營運優先事項很重要，但她也將專注於最大限度地發揮 Integra 強大產品組合的潛力。

In terms of providing an update on our long-range plan, she'll take the time that's necessary to get to know the business and opportunities and challenges, and we'll be getting back to you with the timeline for providing an update on the long-range plan.

在提供我們的長期計劃的最新資訊方面，她將花必要的時間來了解業務以及機會和挑戰，我們將向您回复提供更新資訊的時間表長期計劃。

That's very helpful. I appreciate the thought, Stuart. Thank you.

這非常有幫助。我很欣賞這個想法，史都華。謝謝。

Kristen Stewart, C.L. King.

克莉絲汀史都華，C.L.國王。

Hi. Thanks for taking the question. I just wanted to ask on Braintree. It sounds like you're making progress there. Could there be any hope of getting that facility open sooner than expectations?

你好。感謝您提出問題。我只是想在布倫特里問一下。聽起來你在那裡取得了進展。該設施是否有希望比預期更早開放？

Good morning, Kristen. Thank you for the question. So yeah, as I stated in the prepared remarks, we're pleased with the progress we're making in terms of finalizing that facility. And as we speak, we are moving equipment into Braintree, which will allow us then to start the process of installing and qualifying, validating the equipment and processes.

早安，克里斯汀。謝謝你的提問。所以，是的，正如我在準備好的演講中所說，我們對在最終確定該設施方面取得的進展感到高興。正如我們所說，我們正在將設備轉移到 Braintree，這將使我們能夠開始安裝和鑑定、驗證設備和流程的過程。

The plan is still on track to resume production in the first half of 2026, as we communicated. Every earnings call will provide further updates on which milestones we are crossing. So the next one should be in February. But at this point, yeah, production resuming in first half '26 is still in line with what we communicated earlier.

正如我們所傳達的，該計劃仍有望在 2026 年上半年恢復生產。每次財報電話會議都會提供有關我們正在跨越的里程碑的進一步更新。所以下次應該是二月。但在這一點上，是的，26 年上半年恢復生產仍然符合我們先前溝通的情況。

Okay. And then just on the '25 outlook, in terms of the top line, I think that still included some potential for additional ship holds to take place. I just wanted to make sure that I was still understanding that correctly. If there's anything that you saw this quarter that made you think that that's more likely than not.

好的。然後就 25 年的前景而言，就營收而言，我認為仍然包括一些額外船舶持有的潛力。我只是想確保我仍然正確理解這一點。如果您本季看到的任何事情讓您認為這種情況很有可能發生。

Yeah. So thanks for the question, Kristen. You are correct. So as we framed out the expectation for 2025 to show mid-single-digit organic growth over full year 2024, embedded in that is the potential to absorb any supply disruption of a similar magnitude as what we saw in 2024.

是的。謝謝你的提問，克里斯汀。你是對的。因此，當我們對 2025 年提出預期，即在 2024 年全年實現中位數有機成長時，其中蘊藏著吸收與 2024 年類似規模的供應中斷的潛力。

So put more simply, Kristen, what it means is we would expect a tailwind in '25 as a result of the supply recovery from what we experienced in 2024. But that would be offset by the potential for supply disruption in 2025. And so what you're left with is kind of the rest of the business growing at mid-single-digit organic growth. So yes, it's contemplated in there.

克里斯汀，更簡單地說，這意味著我們預計由於 2024 年供應恢復，我們預計 25 年將出現順風車。但這將被 2025 年供應中斷的可能性所抵銷。因此，剩下的就是其他業務以中等個位數的有機成長。所以是的，那裡已經考慮到了。

And then as it relates to even the quality holds that we've talked about in our prepared remarks in terms of Q4, the nature and type of those are much smaller in terms of the number of SKUs and products, as well as the revenue impact, versus the compliant shipping holds that we've discussed in our Q2 call. And so because of that, we don't anticipate that being changing our view in terms of the potential magnitude of supply disruption in '25.

然後，由於它與我們在第四季度準備的評論中討論的質量有關，就 SKU 和產品的數量以及收入影響而言，這些質量的性質和類型要小得多，與我們在第二季度電話會議中討論的合規運輸觀點相比。因此，我們預計不會改變我們對 25 年供應中斷的潛在嚴重程度的看法。

Okay. Thanks for taking the question.

好的。感謝您提出問題。

Robbie Marcus, JPMorgan.

羅比馬庫斯，摩根大通。

Oh, great. Good morning, and thanks for taking the questions. Jan, great working with you. Wish you the best moving forward.

哦，太好了。早上好，感謝您提出問題。簡，和你一起工作很棒。祝您前進順利。

Two from me. First, I just wanted to ask on sort of staff retention and staff levels over the past few years. There's been COVID and then the recent manufacturing and sales disruptions. So I was just wondering if we could kind of get a state of the union on where both the quality manufacturing and client-facing sales force is in terms of retention and attrition over the past few years.

我的兩個。首先，我只是想問一下過去幾年的員工留任率和員工水準。發生了新冠疫情，然後是最近的生產和銷售中斷。所以我只是想知道我們是否可以就過去幾年中優質製造和麵向客戶的銷售人員在保留和流失方面的情況達成一致。

Yeah. Good morning, Robbie. I'll take that first part of the question.

是的。早上好，羅比。我將回答問題的第一部分。

Across the company, our retention turnover is normal as previous years. I would say one area over the summer we saw a little uptick, and that's in the surgical reconstruction sales force where we had higher than normal. And that is linked to the updated communication that we did before the summer on the timeline to return SurgiMend into the market. So that definitely had an impact on that subset of our tissue technologies sales force.

在整個公司範圍內，我們的保留人員流動率與往年一樣正常。我想說的是，整個夏天我們在一個領域看到了一點上升，那就是外科重建銷售隊伍，我們的人數高於正常水平。這與我們在夏季之前就 SurgiMend 返回市場的時間表進行的最新溝通有關。因此，這肯定對我們的衛生紙技術銷售團隊產生了影響。

Okay. Maybe a follow-up on free cash flow. You spoke to in the slides and the prepared remarks the negative cash flow in third quarter and why it's transient. But as I look back at the Analyst Day from last year, you had a 90% conversion rate slotted in from the '23 Analyst Day of over 90% in 2027. I believe you said on the last call free cash flow might be lower next year as you move through some of these issues and you're integrating the Acclarent business. But how do you think about free cash flow conversion over the next few years and your ability to return to, let's call it, medtech peer levels over time? Thanks a lot.

好的。也許是自由現金流的後續行動。您在幻燈片和準備好的評論中談到了第三季的負現金流以及為什麼它是暫時的。但當我回顧去年的分析師日時，我發現 2027 年的 23 分析師日的轉換率為 90% 以上，轉換率超過 90%。我相信您在上次通話中說過，隨著您解決其中一些問題並且正在整合 Acclarent 業務，明年的自由現金流可能會較低。但是，您如何看待未來幾年的自由現金流轉換，以及您隨著時間的推移恢復到醫療技術同行水平的能力？多謝。

Thanks, Robbie. So to your point, yes, a couple of changes kind of post that Investor Day in light of some of the supply challenges that occurred, principally being Boston and then the shipping holds that we experienced and talked about on our Q2 call. So those were the, in fact, drivers of why we are not back at the 90% free cash flow conversion rate that we talked about.

謝謝，羅比。因此，就您的觀點而言，是的，鑑於發生的一些供應挑戰，投資者日後發生了一些變化，主要是波士頓，然後是我們在第二季度電話會議上經歷和討論的運輸情況。事實上，這些就是我們沒有回到我們談到的 90% 自由現金流轉換率的驅動因素。

And as we continue to work through the remainder of the shipping holds, as well as the compliance master plan, we don't expect to get back up into that 90%-plus from a free cash flow. And so we'll re-evaluate as we continue to pace through 2025 and managing through the potential for any supply disruption and come back with updated thinking in terms of timeframe to determine whether or not we're back into that free cash flow conversion rate of 90%-plus beyond 2025. We'll do that as part of our next LRP update.

隨著我們繼續解決剩餘的運輸擱置問題以及合規性總體計劃，我們預計不會從自由現金流中恢復到 90% 以上。因此，我們將在 2025 年繼續前進並管理任何供應中斷的可能性時重新評估，並在時間框架方面更新思維，以確定我們是否回到自由現金流轉換率2025 年後將達到 90% 以上。我們將在下一次 LRP 更新中做到這一點。

Great. Thanks a lot.

偉大的。多謝。

Matt Taylor, Jefferies.

馬特泰勒，杰弗里斯。

Hi. Thanks for taking the question. I actually just wanted to follow up on your comments on the debt and the capital structure. I know you talked about some of the call-outs for stock-based compensation and the acquisitions, but we get a lot of questions about how tight your covenants are and what that could mean in different scenarios as your cash flow evolves here.

你好。感謝您提出問題。我實際上只是想跟進您對債務和資本結構的評論。我知道您談到了一些基於股票的薪酬和收購的呼籲，但我們收到了很多關於您的契約有多嚴格的問題，以及隨著您的現金流的變化，這在不同情況下意味著什麼。

So could you speak to, I guess, maybe what we can't see in terms of the covenants and give us comfort on your debt situation in the current state? And then maybe talk about different scenarios and how you could get back to your target over the next couple of years.

那麼，我想，您能否談談我們在契約方面看不到的內容，並讓我們對您目前的債務狀況感到安慰？然後也許可以討論不同的場景以及如何在未來幾年內回到目標。

Yeah, certainly. So right now, as we mentioned, our leverage ratio is at 4 times. Our covenant threshold right now is at 4.5. So we are operating below that covenant threshold in 2024.

是的，當然。所以現在，正如我們所提到的，我們的槓桿率為 4 倍。目前我們的契約門檻是 4.5。因此，到 2024 年，我們的營運將低於該契約門檻。

As we look to manage this business going forward, and certainly as we return to kind of more normal cash flow generation in Q4 now that the compliance shipping holds are largely behind us, that will be the mechanism to help us continue to maintain the business in a way where we're operating under our debt covenants. So you can expect that sort of approach as we move forward.

當我們希望繼續管理這項業務時，當然，隨著我們在第四季度恢復更正常的現金流生成，因為合規運輸持有量已基本過去，這將是幫助我們繼續維持業務的機制。是我們根據債務契約運作的方式。因此，隨著我們的前進，您可以期待這種方法。

And consistent with my previous remarks, that also does contemplate the potential for additional supply disruption in 2025. So we're managing it in light of that in a way that will allow us to remain under that covenant threshold.

與我先前的言論一致，這也確實考慮了 2025 年供應進一步中斷的可能性。因此，我們正在根據這一點進行管理，使我們能夠保持在聖約的門檻之下。

Got you. I don't think you've said this explicitly, but it just seems like based on your overall commentary, you think you can get back there. I guess I wanted to understand, is there any scenario where you might have to raise more capital? Or would something have to go significantly wrong from here for that to happen?

明白你了。我認為你沒有明確說過這一點，但根據你的整體評論，你認為你可以回到那裡。我想我想了解，是否有任何情況下您可能需要籌集更多資金？或者是否必須從這裡開始出現重大錯誤才會發生這種情況？

Yeah. So based on where we are right now, we don't see that as an issue. Again, in terms of how we're thinking about the business next year, how we thought about from a color perspective, even absorbing the expectation of potential supply disruptions, we see a line of sight of being able to manage this business in a way where we remain under that debt covenant. But again, I can't speculate on some of those existential events that could occur and impact that.

是的。因此，根據我們現在的情況，我們不認為這是一個問題。同樣，就我們如何考慮明年的業務而言，我們如何從色彩角度進行思考，甚至​​吸收潛在供應中斷的預期，我們看到了能夠以某種方式管理這項業務的視線我們仍然遵守該債務契約。但同樣，我無法推測可能發生並影響的一些存在事件。

Okay. Great. Thank you so much.

好的。偉大的。太感謝了。

Richard Newitter, Truist Securities.

理查德紐特 (Richard Newitter)，Truist 證券公司。

Hi. Thanks for taking the questions. And Jan, good luck going forward. Great working with you.

你好。感謝您提出問題。簡，祝你未來好運。和你一起工作真好。

I wanted to just get a sense for what kind of share recapture and some of these products that have been off the market that are coming back on, what kind of share recapture are you seeing already as they come on? And how is that informing whatever share recapture assumptions you're considering to achieve that mid-single-digit growth in 2025? I would love to just hear kind of strategically how and why you're able to capture share the degree to which you are and what's kind of embedded to get to a mid-single-digit growth right next year. And then I have a follow-up.

我只是想了解什麼樣的份額重新奪回以及一些已經退出市場的產品正在重新上市，當它們上市時您已經看到了什麼樣的份額重新奪回？這對您考慮在 2025 年實現中個位數成長的任何份額重新奪回假設有何影響？我很想聽聽你們如何以及為什麼能夠從策略上分享你們的發展程度，以及明年實現中個位數成長的嵌入程度。然後我有一個後續行動。

Thank you, Rich, for the question. As I said earlier, most of these shipping holds are not long term. And so first, that means that some of our customers still have their inventory on the shelf that they live off. It kind of further shortens the outage for them.

謝謝里奇的提問。正如我之前所說，大多數運輸擱置都不是長期的。首先，這意味著我們的一些客戶仍然將庫存放在他們賴以生存的貨架上。這進一步縮短了他們的停電時間。

What we've seen over the past three months is that those couple of weeks of potential outage, given these specifications of our products, we get back to pretty much full share on our products. And so that, at least over the past months, has been the experience. It leads us to further make sure when we have a stop shipment, laser focus to make sure we limit that time and limit the risk for share loss.

在過去的三個月裡，我們看到的是，考慮到我們產品的這些規格，這幾週的潛在停電，我們幾乎恢復了產品的全部份額。至少在過去的幾個月裡，這就是我的經驗。它引導我們進一步確保何時停止發貨，集中精力以確保我們限制該時間並限制份額損失的風險。

Okay, and I guess two follow-ups, sorry. One, should we think of whatever it takes to get back up to mid-single-digits for a full-year basis relative to a full-year '24 basis? That it's going to be significantly, significantly back half-weighted. Is that a fair assumption?

好吧，我想還有兩個後續行動，抱歉。第一，我們是否應該考慮採取什麼措施才能使全年的成長率相對於 24 年全年的成長率回到中個位數？它將顯著地顯著地向後半加權。這是一個公平的假設嗎？

And then just the second follow-up is, should we be thinking about all products that have the potential to go on ship hold as equally kind of equal level of confidence to get to that share capture or share recapture situation? I appreciate they're transient, but are all products equal in terms of losing business and then being able to regain it back if competition stepped in? Thanks.

然後第二個後續行動是，我們是否應該考慮所有有可能被擱置的產品，以同等程度的信心來實現份額捕獲或份額重新捕獲的情況？我很欣賞它們是短暫的，但是所有產品在失去業務方面都是平等的，然後如果競爭介入則能夠重新獲得業務嗎？謝謝。

Let me take that. In terms of your first question, in terms of how to think about the business mid-single-digit organic growth throughout 2025, I would not say you should necessarily assume it's back half-oriented or back half-weighted for 2025. We should be able to, again, because of our allowance around the potential for supply disruption, you shouldn't see that significant back half swing.

讓我來吧。關於你的第一個問題，關於如何看待 2025 年業務中個位數的自然成長，我不會說你一定應該假設 2025 年它會回歸半導向或回歸半加權。我們應該能夠再次考慮到供應中斷的可能性，因此您不應該看到明顯的後半段波動。

In terms of your second question with respect to individual products, so I think across the -- and I'll talk about it through two lenses. From a CSS perspective, the products that were impacted by the compliance shipping holds, you had some that were out for a matter of weeks, some that were out a month or two, and some that were out for kind of the duration of Q3. And to Jan's point, those that were out for a few weeks, that's where we don't anticipate much of any impact from a share perspective. Those that were out a little longer, it will take a little longer to get us back up to share, but share recapture position. But as we move into 2025, that's where we think we have an opportunity to resume our position.

就你關於個別產品的第二個問題而言，我認為，我將透過兩個視角來討論它。從CSS的角度來看，受合規性運輸影響的產品，有些產品發布了幾週，有些產品發布了一兩個月，有些產品發布了第三季度。就簡而言，那些已經上市了幾週的股票，從股票的角度來看，我們預計不會產生太大的影響。那些退出時間更長的人，需要更長的時間才能讓我們重新站起來分享，但分享重新奪回位置。但當我們進入 2025 年時，我們認為我們有機會恢復我們的地位。

From an Integra Skin perspective, which is the other area that we were impacted from a supply this year, that's where we, again, as we are entering into Q4 and we're getting back to our historical revenue run rates, we'll see evidence of that in Q4 and we expect to be able to move forward into 2025 managing at that level.

從 Integra Skin 的角度來看，這是我們今年受到供應影響的另一個領域，這也是我們在進入第四季度時再次回到歷史收入運行率的地方，我們會看到第四季度的證據表明，我們預計能夠在2025 年繼續保持這一水平。

Thank you.

謝謝。

Craig Bijou, Bank of America Securities.

Craig Bijou，美國銀行證券公司。

Good morning, and thanks for taking the question. And Jan, I wish you luck in the future.

早上好，感謝您提出問題。簡，我祝你未來好運。

I wanted to start with Acclarent. Obviously, you guys have called out the strength there. I think your guidance has you up $10 million to $11 million more than what you had expected initially. So can you just kind of run through what's been going better than expected there and remind us of the growth profile of that business that we should be thinking about in '25 and beyond?

我想從 Acclarent 開始。顯然，你們已經喚起了那裡的力量。我認為您的指導使您比您最初的預期多增加了 1000 萬至 1100 萬美元。那麼，您能否簡單介紹一下那裡的情況比預期的要好，並提醒我們該業務的成長概況，我們應該在 25 年及以後考慮這一點？

Certainly. So we continue to be excited about the Acclarent acquisition and the overall progress of the integration. As you recall in our previous call, we saw early indicators of strong integration, the business had outperformed expectations in Q2, which warranted a call-up in kind of revenue for that business for the year. To your point, we saw once again in Q3 additional strong performance in that business, and it is leading us to call revenue on that business at $97 million, where previously we had called about $86 million, so up to about that $10 million to $11 million that you referenced.

當然。因此，我們繼續對 Acclarent 的收購和整合的整體進展感到興奮。正如您在之前的電話會議中所記得的那樣，我們看到了強大整合的早期跡象，該業務在第二季度的表現超出了預期，這保證了該業務今年的收入增長。就您的觀點而言，我們在第三季度再次看到該業務的強勁表現，這導致我們將該業務的收入稱為9700 萬美元，而之前我們稱其收入約為8600 萬美元，因此最多約為1000 萬至11 美元您提到的百萬。

And again, at the time when we originally set the guide for Acclarent, we were allowing for the potential for integration disruption as we've experienced in the past, as most companies have experienced in the past in terms of integrations of this magnitude, but we've been able to manage through that successfully. Going forward, what we've said in the past and we continue to believe is true, that business has the ability to deliver high-single-digit growth, and so that would be how we expect to drive this business in 2025.

再說一遍，當我們最初為 Acclarent 制定指南時，我們考慮到了整合中斷的可能性，就像我們過去經歷過的那樣，就像大多數公司過去經歷過如此大規模的整合一樣，但是我們已經成功地解決了這個問題。展望未來，我們過去說過並且仍然相信是正確的，即業務有能力實現高個位數成長，因此這將是我們期望在 2025 年推動該業務的方式。

Got it. Thanks, Lea. And one new -- I guess I wanted to ask specifically on the supply challenges in the Dural repair business. I believe that's new this quarter, but please correct me if I'm wrong, but if you could just give a little bit more color on that, that'd be great. Thanks.

知道了。謝謝，莉亞。還有一個新問題——我想我想具體詢問硬腦膜修復業務中的供應挑戰。我相信這是本季的新內容，但如果我錯了，請糾正我，但如果你能對此提供更多的色彩，那就太好了。謝謝。

Yeah. So within our Dural access and repair business, we did initiate a voluntary recall in Q3 on our patties and strips business. Patties and strips for us is, while very important to our customers, relatively a small portion of our revenue base, less than 2% of our annual revenues. And so that's the nature of the supply hold that you asked about.

是的。因此，在我們的硬腦膜通路和維修業務中，我們確實在第三季度對我們的肉餅和條帶業務發起了自願召回。雖然肉餅和肉條對我們的客戶非常重要，但對我們來說只占我們收入基礎的一小部分，不到我們年收入的 2%。這就是您所詢問的供應暫停的性質。

Great. Thank you.

偉大的。謝謝。

Joanne Wuensch, Citi.

喬安妮‧溫施，花旗銀行。

Good morning, and thank you for taking the question. It sounds like the implementation of the master compliance plan has really brought certain things into light and maybe put -- I don't want to put words in your mouth, but maybe guardrails on how you're progressing. But I'd love to get your opinion on what you see as the positives and the negatives of this program. And is this something which rolls through over the next year, over the next couple of years, or how do we think about it? Thank you.

早上好，感謝您提出問題。聽起來，整體合規計畫的實施確實讓某些事情暴露出來，也許是——我不想把話放在你嘴裡，但也許是你進展的護欄。但我很想聽聽您對這個計劃的優點和缺點的看法。這是明年、未來幾年會發生的事情嗎？謝謝。

Thank you, Joanne, for that question. So when we talk about the compliance master plan, what essentially we're doing is a program that we have structured after the different chapters and elements of the industry standard quality system regulations, or QSR. And so the systemic way we look into our capital management process, we look into our document and record controls, and so on and so on.

謝謝喬安妮提出這個問題。因此，當我們談論合規總體計劃時，我們本質上所做的是根據行業標準品質系統法規（QSR）的不同章節和要素構建的計劃。因此，我們以系統化的方式研究我們的資本管理流程，我們研究我們的文件和記錄控制，等等。

What the program allows us to do is structured and holistic approach to audit and remediate our quality management system, pretty much in line with how most of the auditors look at the quality management system. And so what it does is it strengthens our resiliency, our predictability.

該計劃允許我們做的是結構化和整體的方法來審核和修復我們的品質管理體系，這與大多數審核員對品質管理系統的看法非常一致。所以它的作用是增強我們的彈性和可預測性。

I think the flip side while we do that is that we may identify some issues, some observations that will lead to some of those quality holes that we have been talking about. But it will make the company predictable, more resilient, and in the end, drive effectiveness and efficiency in our process.

我認為，這樣做的另一面是，我們可能會發現一些問題，一些觀察結果將導致我們一直在談論的一些品質漏洞。但這將使公司變得可預測、更具彈性，並最終提高我們流程的有效性和效率。

And I would assume it's going to continue for a period of time?

我認為這種情況會持續一段時間？

We will, over 2025, further have observations that will translate into corrective actions. And that's where before we communicated say 18 months process that we started last summer.

我們將在 2025 年進一步將觀察轉化為糾正措施。這就是我們溝通之前我們去年夏天開始的 18 個月的流程。

Terrific. Thank you so much, and best of luck.

了不起。非常感謝你，祝你好運。

Thank you. At this time, we have no further questions in the queue. This will conclude today's conference call. Thank you for your participation, and you may now disconnect.

謝謝。目前，隊列中沒有其他問題。今天的電話會議到此結束。感謝您的參與，您現在可以斷開連接。