Integer Holdings Corp (ITGR) 2022 Q4 法說會逐字稿

Hello, everyone, and welcome to the Integer Holdings Corporation's Fourth Quarter 2022 Earnings Conference Call. (Operator Instructions) At this time, I would like to hand the conference over to Mr. Tony Borowicz, Senior Vice President of Investor Relations. Please go ahead, sir.

大家好，歡迎來到 Integer Holdings Corporation 的 2022 年第四季度收益電話會議。 （操作員說明）此時，我想將會議交給投資者關係高級副總裁 Tony Borowicz 先生。請繼續，先生。

Good morning, everyone. Thank you for joining us, and welcome to Integer's Fourth Quarter and Full Year 2022 Earnings Conference Call. With me today are Joe Dziedzic, President and Chief Executive Officer; and Jason Garland, Executive Vice President and Chief Financial Officer. Also joining us on the call is Andrew Senn, Senior Vice President, Strategy and Business Development. Andrew will be adding the title of Investor Relations when I retire at the end of this month.

大家，早安。感謝您加入我們，歡迎參加 Integer 的第四季度和 2022 年全年收益電話會議。今天和我在一起的是總裁兼首席執行官 Joe Dziedzic；執行副總裁兼首席財務官 Jason Garland。戰略和業務發展高級副總裁 Andrew Senn 也加入了我們的電話會議。當我本月底退休時，安德魯將添加投資者關係的頭銜。

As a reminder, the results and data we discuss today reflect the consolidated results of Integer for the periods indicated. During our call, we will discuss some non-GAAP financial measures. For a reconciliation of these non-GAAP financial measures, please refer to the appendix of today's presentation, today's earnings press release and the trending schedules, which are available on our website at integer.net.

提醒一下，我們今天討論的結果和數據反映了 Integer 在指定期間的綜合結果。在我們的通話中，我們將討論一些非 GAAP 財務指標。有關這些非 GAAP 財務措施的調節，請參閱今天的演示文稿的附錄、今天的收益新聞稿和趨勢時間表，這些都可以在我們的網站 integer.net 上找到。

Please note that today's presentation includes forward-looking statements. Please refer to the company's SEC filings for a discussion of the risk factors that could cause our actual results to differ materially. On today's call, Joe will provide his opening comments and an update on the execution of Integer's strategy. Jason will then review our adjusted financial results for the fourth quarter and full year 2022 and provide our full year 2023 guidance. Joe will come back on to provide his closing remarks, and then we'll open up the call for your questions. With that, I'll turn the call over to Joe.

請注意，今天的演示文稿包含前瞻性陳述。請參閱公司向美國證券交易委員會提交的文件，了解可能導致我們的實際結果出現重大差異的風險因素的討論。在今天的電話會議上，Joe 將提供他的開場白和 Integer 戰略執行的最新情況。然後，Jason 將審查我們調整後的第四季度和 2022 年全年財務業績，並提供我們 2023 年全年的指導。 Joe 將回來提供他的結束語，然後我們將打開您的問題電話。有了這個，我會把電話轉給喬。

Thank you, Tony. And as you bring your 21-year career at Integer to a close at the end of this month, I would like to take a moment to recognize your significant contributions to Integer. On behalf of all Integer associates, including our Board of Directors, and I'm confident many investors, we thank you for your leadership in helping to shape the company we have today and wish you the best as you enter the next phase of your journey.

謝謝你，托尼。當你在本月底結束你在 Integer 的 21 年職業生涯時，我想花點時間表彰你對 Integer 的重大貢獻。代表包括我們董事會在內的所有 Integer 員工，我相信許多投資者，我們感謝你們在幫助塑造我們今天擁有的公司方面發揮的領導作用，並祝你們在進入下一階段旅程時一切順利.

After this earnings call, Tony will officially pass the Investor Relations responsibilities to Andrew Senn, who has been leading our corporate development and business strategy for the last year. Integer had a strong finish to 2022 with double-digit sales growth across all product lines in the fourth quarter. We ended the year with fourth quarter sales up 19% and full year sales up 13%. In the fourth quarter, we also delivered a 30% improvement in adjusted operating income and a 25% improvement in adjusted EBITDA.

在這次財報電話會議之後，Tony 將正式將投資者關係職責移交給 Andrew Senn，他在過去一年一直領導我們的企業發展和業務戰略。 Integer 到 2022 年表現強勁，第四季度所有產品線的銷售額均實現兩位數增長。我們以第四季度銷售額增長 19% 和全年銷售額增長 13% 結束了這一年。在第四季度，我們還實現了調整後營業收入增長 30% 和調整後 EBITDA 增長 25%。

Earlier this month, we strategically replaced about half of our variable rate debt with a 2% and 8% fixed coupon convertible bond. This transaction delivers significant interest cost savings and repositions our debt to approximately 60% fixed and 40% variable. Our 2023 sales outlook is what we believe to be an above-market 7% to 9% organic growth rate. We expect adjusted operating income to grow faster than sales at 10% to 16%.

本月早些時候，我們戰略性地用 2% 和 8% 的固定息票可轉換債券替換了大約一半的可變利率債務。該交易顯著節省了利息成本，並將我們的債務重新定位為大約 60% 的固定債務和 40% 的可變債務。我們認為 2023 年的銷售前景是高於市場 7% 至 9% 的有機增長率。我們預計調整後的營業收入將以 10% 至 16% 的速度增長，高於銷售額。

At the midpoint of our guidance, we are expanding adjusted operating income margins by about 70 basis points. We believe this will be a strong performance in what remains a challenging supply chain environment. We have been executing our product line strategies to accelerate our top line growth and now expect to deliver sustained above-market growth. Our strong product development pipeline in high-growth markets, emerging customer product launches, successful tuck-in acquisitions and underlying strength of existing programs gives us confidence in this outlook.

在我們指導的中點，我們將調整後的營業收入利潤率擴大約 70 個基點。我們相信，在仍然充滿挑戰的供應鏈環境中，這將是一個強勁的表現。我們一直在執行我們的產品線戰略以加速我們的收入增長，現在預計將實現持續高於市場的增長。我們在高增長市場中強大的產品開發渠道、新興客戶產品的發布、成功的收購以及現有項目的潛在實力使我們對這一前景充滿信心。

We believe 2023 is the beginning of sustained above-market sales growth for Integer. The Integer investment thesis summarizes why we believe Integer is executing a clear and compelling strategy to sustainably outperform. Our portfolio strategy and product line strategies define how we win in the markets we serve. Our operational strategy defines how we achieve excellence in everything we do and our values define how we engage with each other. The bottom of the slide articulates the industry and Integer fundamentals that create a resilient business model the elements of our strategy to generate sales growth and the disciplined approach we've taken to develop a performance culture.

我們認為 2023 年是 Integer 持續高於市場的銷售增長的開始。 Integer 投資主題總結了為什麼我們認為 Integer 正在執行一項清晰且引人注目的戰略以持續超越大盤。我們的產品組合戰略和產品線戰略決定了我們如何在所服務的市場中取勝。我們的運營戰略定義了我們如何在所做的每一件事上都做到卓越，而我們的價值觀定義了我們如何與彼此互動。幻燈片的底部闡述了創建彈性業務模型的行業和 Integer 基本面、我們實現銷售增長的戰略要素以及我們為發展績效文化所採取的嚴格方法。

Our financial objectives are clear and measurable. Everything we do in the company is anchored to this strategy, which is why we share it every quarter. So let's look at some of the important milestones we have achieved in our strategy journey. The first 2 years of our strategy execution delivered margin expansion and the launch of each element of our strategy. The last 3 years have been challenging given the macro environment, but we are entering 2023 with a stronger portfolio and a pipeline of new product launches, expanding margins and an unmatched capabilities to serve our customers.

我們的財務目標明確且可衡量。我們在公司所做的一切都基於這一戰略，這就是我們每個季度分享它的原因。因此，讓我們看看我們在戰略之旅中取得的一些重要里程碑。我們戰略執行的前 2 年實現了利潤率擴張和我們戰略的每個要素的推出。鑑於宏觀環境，過去 3 年一直充滿挑戰，但我們進入 2023 年時將擁有更強大的產品組合和一系列新產品發布、不斷擴大的利潤率以及無與倫比的客戶服務能力。

As our sales accelerate, we are investing in capacity to support this growth and to enable sustained above-market growth. We are pleased to report that the acquisitions of Oscor in December 2021 and Aran Biomedical in April 2022 are exceeding our deal models through higher sales and operational efficiencies.

隨著我們的銷售加速，我們正在投資能力以支持這種增長並實現持續高於市場的增長。我們很高興地報告，2021 年 12 月對 Oscor 的收購和 2022 年 4 月對 Aran Biomedical 的收購通過更高的銷售和運營效率超越了我們的交易模式。

The following slides outline how we are accelerating sales growth to sustainably grow 200 basis points above the market. We developed our portfolio strategy in 2017 and formed the growth teams in 2018. These market-focused teams have executed a structured and disciplined approach across the organization to shift our pipeline to high-growth products and markets, expand our capabilities and ensure our investments are aligned to our strategy. These product line strategies have generated a strong product development pipeline that are delivering results and position us for sustained above-market growth.

以下幻燈片概述了我們如何加速銷售增長以持續高於市場 200 個基點。我們在 2017 年制定了我們的投資組合戰略，並在 2018 年組建了增長團隊。這些以市場為中心的團隊在整個組織內執行了一種結構化和有紀律的方法，將我們的管道轉移到高增長的產品和市場，擴大我們的能力並確保我們的投資是符合我們的戰略。這些產品線戰略已經產生了強大的產品開發渠道，這些產品正在交付成果，並使我們能夠實現持續高於市場的增長。

This structured and disciplined process has been and will continue to be critical to Integer achieving sustained outperformance. This slide illustrates where the C&V end markets are in their growth curve and how they compare in end market size on a relative basis. The curve represents the growth rate of the end market, which is slower during the emerging and mature phases of the technology maturity time line.

這種結構化和紀律嚴明的流程已經並將繼續對 Integer 實現持續的優異表現至關重要。這張幻燈片說明了 C&V 終端市場在其增長曲線中的位置，以及它們如何在相對基礎上比較終端市場規模。該曲線代表終端市場的增長率，在技術成熟度時間線的新興和成熟階段較慢。

Integer is uniquely positioned to serve our customers across all phases of the product life cycle because of our deep technology, breadth of capability and products, global manufacturing footprint and strategic focus. The blue box represents the most significant near-term growth opportunities for both our customers and Integer, which demonstrates the strong alignment of our strategy with our customers.

由於我們深厚的技術、廣泛的能力和產品、全球製造足跡和戰略重點，Integer 具有獨特的優勢，可以在產品生命週期的所有階段為我們的客戶提供服務。藍框代表我們的客戶和 Integer 最重要的近期增長機會，這表明我們的戰略與客戶的高度一致。

The products on the bottom of the slide highlight areas of continued investment in capabilities and capacity that we expect to deliver significant growth to Integer. This slide combines the Cardiac Rhythm Management & Neuromodulation end markets and demonstrates that there are growth opportunities beyond conventional CRM products and spinal cord stimulation within neuromodulation.

幻燈片底部的產品突出顯示了我們期望為 Integer 帶來顯著增長的能力和容量的持續投資領域。這張幻燈片結合了心律管理和神經調節終端市場，並展示了在神經調節中超越傳統 CRM 產品和脊髓刺激的增長機會。

Integer's historically deep and differentiated component and subassembly technology that has positioned us so well in the large but mature conventional CRM markets also positions us extremely well to serve our customers in the smaller emerging and growth CRM markets such as leadless pacing and cardiac monitoring.

Integer 歷史悠久且差異化的組件和子組件技術使我們在大型但成熟的傳統 CRM 市場中處於領先地位，也使我們能夠在較小的新興和增長的 CRM 市場（例如無引線起搏和心臟監測）中為我們的客戶提供非常好的服務。

The emerging and growth markets within neuromodulation have significantly more early-stage companies than the C&V or CRM markets because of the number of companies that are investing to develop therapies for currently unmet or underserved patient conditions. Integer is uniquely positioned to be able to bring full design, development and high-volume manufacturing to these customers, while also vertically integrating the most technologically advanced components with our own intellectual property from decades of innovation.

神經調節領域的新興市場和成長型市場擁有比 C&V 或 CRM 市場更多的早期公司，因為有許多公司正在投資開發針對當前未滿足或服務不足的患者狀況的療法。 Integer 具有獨特的優勢，能夠為這些客戶提供完整的設計、開發和大批量製造，同時還將技術最先進的組件與我們數十年創新的自主知識產權垂直整合。

Very few other companies have the breadth of design and development capabilities and even fewer offer the depth of component technology that Integer offers to our neuromodulation customers. Integer is uniquely positioned to enable emerging companies to bring innovative therapies to market, which brings us to our third annual update on our emerging customers that we are enabling to bring their therapies to market. We first presented this slide at our earnings call in the third quarter of 2020, and we provided an update on our fourth quarter 2021 conference call.

很少有其他公司擁有如此廣泛的設計和開發能力，而能夠提供 Integer 為我們的神經調節客戶提供的組件技術深度的公司就更少了。 Integer 的獨特定位是使新興公司能夠將創新療法推向市場，這使我們對我們的新興客戶進行了第三次年度更新，我們正在幫助他們將他們的療法推向市場。我們在 2020 年第三季度的財報電話會議上首次展示了這張幻燈片，並提供了 2021 年第四季度電話會議的最新情況。

We have been investing in this pipeline of PMA products for many years. and the advancement of these programs is a key leading indicator for accelerating our sales growth. We are proud to report that we have supported the launch of 4 PMA programs with emerging customers since 2020 and we have 5 additional programs in what we've defined as the product introduction phase. And our first update on these customers during our third quarter 2020 earnings call, we project that we would generate about $40 million in sales in 2022 from the product introduction and launched customers.

多年來，我們一直在投資 PMA 產品線。這些計劃的推進是加速我們銷售增長的關鍵領先指標。我們很自豪地報告說，自 2020 年以來，我們支持與新興客戶一起啟動 4 個 PMA 計劃，並且我們還有 5 個額外的計劃處於我們定義為產品引入階段的階段。我們在 2020 年第三季度財報電話會議上對這些客戶進行了首次更新，我們預計 2022 年我們將通過產品介紹和推出的客戶產生約 4000 萬美元的銷售額。

We actually delivered about $50 million. Last year, during our fourth quarter 2021 earnings call, we estimated that we would generate between $60 million and $80 million in 2024 sales from these emerging customers. We are now increasing that projection to between $80 million and $100 million. Our strong pipeline of emerging customers in this high-growth end market is a meaningful contributor to our sustained above-market growth.

我們實際上交付了大約 5000 萬美元。去年，在我們 2021 年第四季度的財報電話會議上，我們估計 2024 年這些新興客戶的銷售額將在 6000 萬至 8000 萬美元之間。我們現在將該預測增加到 8000 萬至 1 億美元之間。我們在這個高增長的終端市場中擁有強大的新興客戶渠道，這對我們持續高於市場的增長做出了重要貢獻。

Integer partners with our customers to bring innovative medical technologies to market, and we are paid for this service throughout the development cycle. As these life-saving and life-enhancing products are introduced to the market, and then enter the manufacturing ramp phase, Integer benefits from accelerated sales growth. The amount of product development sales and the growth rate of the products being developed are leading indicators for sustained above-market sales growth.

Integer 與我們的客戶合作，將創新的醫療技術推向市場，我們在整個開發週期中為這項服務付費。隨著這些拯救生命和改善生活的產品被推向市場，然後進入製造爬坡階段，Integer 受益於銷售的加速增長。產品開發銷售額和正在開發產品的增長率是持續高於市場的銷售增長的領先指標。

Our product development sales have increased 230% since we launched our strategy in 2017, and we have added 62% more development resources. This means our pipeline of new programs has grown significantly and as evidence our customers view Integer as a partner of choice for innovative medical technologies. We have also strategically targeted product development opportunities in high-growth markets to accelerate our growth rate on a sustainable basis. 80% of our development sales are currently in high-growth markets with the remaining 20% in more mature markets. We believe the mix of 80% high-growth and 20% mature markets is the appropriate balance to accelerate our sales growth rate while protecting our mature products for the benefits they deliver to our customers and Integer.

自 2017 年啟動戰略以來，我們的產品開發銷售額增長了 230%，並且增加了 62% 的開發資源。這意味著我們的新項目管道已顯著增長，這證明我們的客戶將 Integer 視為創新醫療技術的首選合作夥伴。我們還戰略性地瞄準了高增長市場的產品開發機會，以在可持續的基礎上加快我們的增長速度。我們 80% 的開發銷售目前在高增長市場，其餘 20% 在更成熟的市場。我們相信 80% 的高增長市場和 20% 的成熟市場的組合是加速我們的銷售增長率的適當平衡，同時保護我們的成熟產品為我們的客戶和 Integer 帶來的利益。

The development cycle in our industry is relatively long. So it is a meaningful milestone for us to achieve the level of product development sales and program mix necessary to sustain above-market growth. In order to support sustained above-market growth, it is necessary to invest in manufacturing capability and capacity. As shown in the chart on the left side of the slide, we continue to allocate a higher percentage of our capital budget to equipment and facilities needed for growth.

我們這個行業的開發週期比較長。因此，實現維持高於市場增長所需的產品開發銷售和項目組合水平對我們來說是一個有意義的里程碑。為了支持持續高於市場的增長，有必要對製造能力和產能進行投資。如幻燈片左側的圖表所示，我們繼續將更高比例的資本預算分配給增長所需的設備和設施。

The right side of this slide highlights our facility footprint growth since 2018, which has primarily come from acquisitions. The increased spending in 2023 is driven by the previously announced construction of a new facility in Galway, Ireland as well as a significant expansion of our Guidewire manufacturing facility in New Ross, Ireland.

這張幻燈片的右側突出顯示了我們自 2018 年以來的設施足跡增長，這主要來自收購。 2023 年支出增加的原因是之前宣佈在愛爾蘭戈爾韋建設新工廠，以及我們在愛爾蘭新羅斯的 Guidewire 製造工廠的大幅擴建。

In 2024, we expect to be back at normal CapEx levels similar to 2022, with some increase in line with our sales growth. We announced the Galway, Ireland greenfield facility investment in September 2021. This new facility will expand our presence in Galway, a global medical device hub by adding 67,000 square feet of manufacturing and importantly, R&D space. This capacity will allow us to better serve our customers and high growth, structural heart and neurovascular products because our new facility is near our customers' development and manufacturing facilities.

到 2024 年，我們預計資本支出將恢復到與 2022 年相似的正常水平，並隨著我們的銷售增長而有所增加。我們於 2021 年 9 月宣布了對愛爾蘭戈爾韋綠地設施的投資。這個新設施將通過增加 67,000 平方英尺的製造空間和重要的研發空間，擴大我們在全球醫療設備中心戈爾韋的影響力。這種能力將使我們能夠更好地為我們的客戶和高增長、結構性心臟和神經血管產品提供服務，因為我們的新設施靠近我們客戶的開發和製造設施。

We are also expanding our New Ross, Ireland facility in 2023 because of increased demand for guidewires used in minimally-invasive procedures. The demand for our proprietary guidewires has accelerated because of additional new business and higher-growth submarkets like electrophysiology and our ability to grow through our industry-leading product performance and scale.

由於對用於微創手術的導絲的需求增加，我們還將在 2023 年擴建位於愛爾蘭新羅斯的工廠。由於額外的新業務和更高增長的子市場（如電生理學）以及我們通過行業領先的產品性能和規模實現增長的能力，對我們專有導絲的需求加速增長。

The New Ross investment will add 80,000 square feet of manufacturing space. We expect the building expansion to be complete by year-end 2023 and generating sales in 2024. We launched our portfolio strategy in 2017 with the strategic objective of sustainably growing sales at least 200 basis points above the market. We implemented a structured and disciplined product line strategy process with our growth teams to develop how we will win in the markets we serve. We are uniquely positioned to serve our customers across all phases of the technology maturity time line because of our breadth of capability and products, deep technology, global manufacturing footprint and strategic focus.

New Ross 投資將增加 80,000 平方英尺的製造空間。我們預計建築擴建將在 2023 年底完成，並在 2024 年實現銷售。我們在 2017 年啟動了我們的投資組合戰略，其戰略目標是銷售額持續增長至少高於市場 200 個基點。我們與我們的增長團隊一起實施了結構化和有紀律的產品線戰略流程，以製定我們將如何在我們所服務的市場中取勝。由於我們的能力和產品的廣度、深厚的技術、全球製造足跡和戰略重點，我們具有獨特的優勢，可以在技術成熟時間線的所有階段為我們的客戶提供服務。

The 230% growth in our product development revenues demonstrates the strong pipeline that we expect will deliver above-market growth for years to come. We believe 2023 is the beginning of sustained above-market growth for Integer and are excited to reach this milestone in our journey to creating a premium valuation for our shareholders. I'll now turn the call over to Jason.

我們的產品開發收入增長了 230%，這表明我們預計未來幾年將實現高於市場的增長。我們相信 2023 年是 Integer 持續高於市場增長的開始，並且很高興在我們為股東創造溢價估值的旅程中達到這一里程碑。我現在將電話轉給傑森。

Thanks, Joe. Good morning, and thank you again for joining today's discussion. I'll provide more details on our fourth quarter and full year 2022 adjusted financial results and provide our 2023 outlook. We delivered fourth quarter results at the high end of our October 27, 2022 guidance, reflecting a recovery from the supplier delays we faced in the third quarter.

謝謝，喬。早上好，再次感謝您參加今天的討論。我將提供有關我們第四季度和 2022 年全年調整後財務業績的更多詳細信息，並提供我們的 2023 年展望。我們在 2022 年 10 月 27 日指引的高端交付了第四季度業績，反映出我們從第三季度面臨的供應商延誤中恢復過來。

Though it remains challenging, we continue to effectively manage through this environment. In fact, in the fourth quarter, we delivered $11 million of sales above the midpoint of our prior guidance. This resulted in $372 million of fourth quarter sales, up $59 million or 19% over last year. Excluding the impact of acquisitions and currency fluctuations, our organic sales growth was 13% higher than last year.

儘管它仍然具有挑戰性，但我們將繼續有效地管理這種環境。事實上，在第四季度，我們實現了 1100 萬美元的銷售額，高於我們先前指導的中點。這導致第四季度銷售額為 3.72 億美元，比去年同期增長 5900 萬美元或 19%。排除收購和貨幣波動的影響，我們的有機銷售額增長比去年高 13%。

We delivered $73 million of adjusted EBITDA, up $15 million compared to last year and an increase of 25%. Adjusted operating income was up 30% versus prior year to $57 million, and with adjusted net income at $37 million, we delivered $1.11 of adjusted diluted earnings per share of $0.12 or 12% from the fourth quarter of 2021.

我們實現了 7300 萬美元的調整後 EBITDA，比去年增加 1500 萬美元，增幅為 25%。調整後的營業收入比上年增長 30%，達到 5700 萬美元，調整後的淨收入為 3700 萬美元，我們從 2021 年第四季度交付了 1.11 美元的調整後攤薄每股收益 0.12 美元或 12%。

Before we go into detail on the full year financial results, I wanted to transition to a discussion on our product line sales performance. The detailed product line slides that we have traditionally presented can be found in the appendix of this presentation. But this morning, we wanted to focus and summarize our commentary around the fourth quarter highlights across each of the product lines.

在我們詳細介紹全年財務業績之前，我想轉而討論我們的產品線銷售業績。我們傳統上展示的詳細產品線幻燈片可以在本演示文稿的附錄中找到。但是今天早上，我們想集中討論並總結我們對每個產品線的第四季度亮點的評論。

As you can see in the fourth quarter 2022, we delivered double-digit year-over-year growth across all product lines. Our first product line, Cardio & Vascular, delivered 20% sales growth in the fourth quarter '22 compared to the fourth quarter of 2021. This was driven by strong organic demand across all markets, especially structural heart and key products such as guidewires as well as incremental sales from Oscor and Aran acquisitions.

正如您在 2022 年第四季度所看到的，我們所有產品線都實現了兩位數的同比增長。與 2021 年第四季度相比，我們的第一個產品線 Cardio & Vascular 在 2022 年第四季度實現了 20% 的銷售額增長。這是由所有市場的強勁有機需求推動的，尤其是結構性心臟和導絲等關鍵產品以及作為 Oscor 和 Aran 收購的增量銷售。

Additionally, C&V benefited from the improved delivery performance from the complex catheter supplier that negatively impacted the third quarter of 2022. The Cardiac Rhythm Management & Neuromodulation's fourth quarter 2022 sales increased 14% over the fourth quarter of 2021 driven by sales growth in Oscor, our recent acquisition and improved supplier delivery performance versus prior quarter, particularly for the neuromodulation products.

此外，C&V 受益於復雜導管供應商交付性能的改善，這對 2022 年第三季度產生了負面影響。心臟節律管理和神經調節在 2022 年第四季度的銷售額比 2021 年第四季度增長了 14%，這得益於我們的 Oscor 的銷售額增長與上一季度相比，最近的收購和改進的供應商交付績效，特別是神經調節產品。

Advanced Surgical, Orthopedics & Portable Medical fourth quarter 2022 sales increased 32% year-over-year on higher demand and price achievement from the start of the multiyear portable medical exit that we announced in 2021. Advanced Surgical & Orthopedics also grew at low double digit in the fourth quarter. And finally, Electrochem, our nonmedical segment, delivered fourth quarter 2022 sales increase of 41% versus fourth quarter 2021, driven by strong demand across all market segments and approximately $2 million of incremental sales recovery from the third quarter supplier delivery issues.

自我們在 2021 年宣布的多年便攜式醫療退出開始以來，由於需求增加和價格實現，高級外科、骨科和便攜式醫療 2022 年第四季度銷售額同比增長 32%。高級外科和骨科也以低兩位數增長在第四季度。最後，我們的非醫療部門 Electrochem 在 2022 年第四季度的銷售額比 2021 年第四季度增長了 41%，這得益於所有細分市場的強勁需求以及從第三季度供應商交付問題中恢復的約 200 萬美元的增量銷售額。

And with that, I will now transition to our full year financial results. With the improvement in fourth quarter, our full year financials delivered at the high end of our 2022 earnings guidance. Sales grew $1.376 billion, which is a strong year-over-year increase of 13% or 6% organically. Adjusted EBITDA was $256 million, up 5% versus last year, and adjusted operating income was $192 million, up $5 million or 3% compared to the prior year.

有了這個，我現在將過渡到我們的全年財務業績。隨著第四季度的改善，我們的全年財務業績達到了我們 2022 年收益指引的高端。銷售額增長 13.76 億美元，同比強勁增長 13% 或有機增長 6%。調整後的 EBITDA 為 2.56 億美元，比去年增長 5%，調整後的營業收入為 1.92 億美元，比上年增長 500 萬美元或 3%。

We delivered $130 million of adjusted net income and $3.88 of adjusted diluted earnings per share, down $0.20 from the prior year. To provide more color on the full year 2022 adjusted net income performance, we decreased $6 million compared to 2021, primarily due to increasing interest rates and a slightly higher tax rate. We delivered $4 million of operational improvement as compared to last year, supported by strong sales volume and offset by the challenging supply chain and labor environment.

我們實現了 1.3 億美元的調整後淨收入和 3.88 美元的調整後攤薄每股收益，較上年下降 0.20 美元。為了給 2022 年全年調整後的淨收入表現提供更多色彩，我們與 2021 年相比減少了 600 萬美元，這主要是由於利率上升和稅率略高。與去年相比，我們實現了 400 萬美元的運營改進，這得益於強勁的銷量，並被具有挑戰性的供應鍊和勞動力環境所抵消。

FX was favorable, contributing $1 million in improvement versus 2021. In the higher interest rate environment, we incurred adjusted interest expense of approximately $11 million or $9 million tax effected higher than last year. Now, I will go into more detailed actions we're taking to manage interest expense during this high-rate environment in the coming slides.

外匯是有利的，與 2021 年相比貢獻了 100 萬美元的改善。在較高的利率環境下，我們發生了約 1100 萬美元的調整後利息支出或 900 萬美元的稅收影響高於去年。現在，我將在接下來的幻燈片中詳細介紹我們在這種高利率環境下為管理利息支出而採取的行動。

Our adjusted effective tax rate was 16.1% for the full year 2022 and while this remains a favorable rate, we saw a year-over-year headwind of approximately $2 million due to the adjusted effective tax rate in 2021 being 15%. 2021 benefited from the impact of certain nonrecurring discrete tax benefits, including a favorable settlement of prior year audits.

我們調整後的有效稅率在 2022 年全年為 16.1%，雖然這仍然是一個優惠的稅率，但由於 2021 年調整後的有效稅率為 15%，我們看到同比逆風約為 200 萬美元。 2021 年受益於某些非經常性離散稅收優惠的影響，包括對上一年審計的有利結算。

For 2023, we expect our adjusted effective tax rate to be between 17% to 19%. This increase is mostly driven by the expiration of the 10-year Malaysian tax holiday under which we have been operating. We drove a step-up in the conversion of income to cash in the fourth quarter, generating $52 million in cash flow from operating activities, up 86% sequentially from the third quarter.

對於 2023 年，我們預計調整後的有效稅率將在 17% 至 19% 之間。這一增長主要是由於我們運營的 10 年馬來西亞免稅期到期所致。我們在第四季度加快了收入向現金的轉化，從經營活動中產生了 5200 萬美元的現金流，比第三季度環比增長 86%。

We generated $20 million in free cash flow, inclusive of $32 million of capital expenditures in the fourth quarter. On a full year basis, this equates to $116 million of cash flow from operating activities inclusive of approximately $50 million increase in inventory to support our manufacturing execution. Our full year free cash flow of $42 million reflects the impact of $74 million of CapEx spent in line with our guidance.

我們在第四季度產生了 2000 萬美元的自由現金流，其中包括 3200 萬美元的資本支出。按全年計算，這相當於 1.16 億美元的經營活動現金流，其中包括約 5000 萬美元的庫存增加，以支持我們的製造執行。我們全年 4200 萬美元的自由現金流反映了根據我們的指導支出的 7400 萬美元資本支出的影響。

As Joe mentioned earlier, we will need to continue making focused investments to fuel and fulfill growth, consistent with our strategy. Net total debt decreased $18 million to $907 million for the fourth quarter, and our net total debt leverage at the end of the fourth quarter was 3.5x trailing fourth quarter adjusted EBITDA back within our strategic target range after stepping slightly above for the last 2 quarters following the Aran acquisition in April of 2022.

正如喬之前提到的，我們將需要繼續進行有針對性的投資，以推動和實現增長，這與我們的戰略一致。第四季度淨總債務減少 1800 萬美元至 9.07 億美元，第四季度末我們的淨總債務槓桿率是第四季度調整後 EBITDA 的 3.5 倍，在過去兩個季度略高於戰略目標範圍後回到我們的戰略目標範圍內在 2022 年 4 月收購 Aran 之後。

We'll now transition to provide more detail on our guidance for 2023 sales, profit and cash. The full year outlook, as summarized earlier remarks that we expect to be the beginning of sustained above-market sales growth. With that, we are forecasting 2023 sales to be in the range of $1.470 billion to $1.500 billion, an increase of 7% to 9% versus last year, well above the underlying market growth rate of 4% to 6%. We expect 2023 adjusted EBITDA to be between $285 million to $296 million, which is 11% to 16% growth year-over-year.

我們現在將過渡到提供有關 2023 年銷售額、利潤和現金指導的更多詳細信息。全年展望，正如我們之前總結的那樣，我們預計這將是持續高於市場的銷售增長的開始。據此，我們預測 2023 年的銷售額將在 14.7 億美元至 15.00 億美元之間，比去年增長 7% 至 9%，遠高於 4% 至 6% 的基礎市場增長率。我們預計 2023 年調整後的 EBITDA 將在 2.85 億美元至 2.96 億美元之間，同比增長 11% 至 16%。

We expect 2023 adjusted operating income to be between $211 million to $222 million, reflecting a growth of 10% to 16% , which is 1.5x to 1.7x our expected sales growth. We expect to be able to achieve our strategic financial objective of growing adjusted operating income 2x our sales growth rate once the supply chain environment fully stabilizes, and we generate more benefits from manufacturing efficiencies.

我們預計 2023 年調整後的營業收入將在 2.11 億美元至 2.22 億美元之間，增長 10% 至 16%，是我們預期銷售額增長的 1.5 倍至 1.7 倍。一旦供應鏈環境完全穩定，我們預計能夠實現調整後營業收入增長 2 倍銷售增長率的戰略財務目標，並且我們會從製造效率中獲得更多收益。

Adjusted EPS is expected to be between $4 and $4.30, which represents a 3% to 11% growth year-over-year. This assumes an adjusted effective tax rate between 17% to 19%, as mentioned earlier, and assumes our adjusted interest expense will be between $45 million to $50 million. We see that demand continues to remain strong. And as Joe noted, having a robust development pipeline that is converting to sales.

調整後每股收益預計在 4 美元至 4.30 美元之間，同比增長 3% 至 11%。如前所述，這假設調整後的有效稅率在 17% 至 19% 之間，並假設我們調整後的利息支出將在 4500 萬美元至 5000 萬美元之間。我們看到需求繼續保持強勁。正如 Joe 指出的那樣，擁有正在轉化為銷售的強大開發管道。

The challenging labor and supply chain environment, although improving, continues to have an impact on our sales, and we expect first quarter 2023 sales to be similar to the second half of the 2022 average quarterly sales of $358 million, with sequential growth throughout the remainder of 2023 as we continue to execute on our strategy. Adjusted operating income as a percent of sales is expected to expand through 2023 as sales grow beyond first quarter and our manufacturing efficiencies improved. Over the last several years, we have continued to make debt and interest expense management a priority. We continue to be committed to maintaining a 2.5 to 3.5x net total debt leverage to trailing fourth quarter adjusted EBITDA by balancing our disciplined M&A strategy with consistent debt repayment.

具有挑戰性的勞動力和供應鏈環境雖然有所改善，但繼續對我們的銷售產生影響，我們預計 2023 年第一季度的銷售額將與 2022 年下半年 3.58 億美元的平均季度銷售額相似，其餘部分將連續增長2023 年，我們將繼續執行我們的戰略。隨著銷售額增長超過第一季度以及我們的製造效率提高，調整後營業收入佔銷售額的百分比預計將擴大到 2023 年。在過去的幾年中，我們繼續將債務和利息支出管理作為優先事項。我們繼續致力於通過平衡我們嚴格的併購戰略與一致的債務償還，將淨總債務槓桿率維持在 2.5 至 3.5 倍至第四季度調整後的 EBITDA。

We have managed interest expense by refinancing our debt in September 2021 to reduce our credit spreads, and we have maintained a mostly variable interest rate structure that has allowed Integer to benefit from the low interest rate environment through the beginning of 2022. With these actions, we were able to achieve an average annual effective interest rate of 4.1% in 2022, similar to the last 2 years.

我們通過在 2021 年 9 月對債務進行再融資以降低信用利差來管理利息支出，並且我們保持了一個主要可變的利率結構，這使得 Integer 能夠在 2022 年初之前從低利率環境中受益。通過這些行動，我們能夠在 2022 年實現 4.1% 的年均實際利率，與過去 2 年相似。

Now, we think the higher interest rate environment and modeled several scenarios using forward rate estimates that projected our effective interest rate for 2023 would reach 7% or higher. Facing that challenge and the headwind it creates on our projected strong operating performance, we strategically partnered with several leading financial firms to close a well-received $500 million convertible note offering a fixed rate coupon of 2.125% for a 5-year term.

現在，我們認為利率較高的環境並使用遠期利率估計對幾種情景進行建模，預測我們 2023 年的實際利率將達到 7% 或更高。面對這一挑戰及其對我們預期的強勁經營業績造成的不利影響，我們與幾家領先的金融公司進行戰略合作，完成了一份廣受歡迎的 5 億美元可轉換票據，提供 5 年期固定利率 2.125% 的票據。

We used the proceeds to pay down our highest variable rate debt to Term Loan B and paid a portion of our outstanding revolver after covering all fees. The impact of these actions will save approximately $18 million of interest expense or generate approximately $0.44 of adjusted EPS accretion based on today's outstanding debt balance and current market interest rates.

我們用所得款項將我們最高的可變利率債務償還給定期貸款 B，並在支付所有費用後支付了我們未償還的循環貸款的一部分。根據今天的未償債務餘額和當前市場利率，這些行動的影響將節省大約 1800 萬美元的利息支出或產生大約 0.44 美元的調整後每股收益增長。

Additionally, with the convertible note term aligned with our previous Term Loan B, we have now secured a fixed rate of 2.125% while maintaining flexibility through 2028. With a net share settlement structure, we will repay the $500 million principal with cash which avoids dilution on the principal repayment. Any premium owed above the principal can be repaid in cash with no dilution or equity at our choice.

此外，由於可轉換票據期限與我們之前的定期貸款 B 一致，我們現在獲得了 2.125% 的固定利率，同時在 2028 年之前保持靈活性。通過淨股份結算結構，我們將用現金償還 5 億美元的本金，從而避免稀釋關於本金還款。任何超出本金的溢價都可以現金償還，我們可以選擇不稀釋或股權。

With the associated capped call, any premium paid with equity would not until the Integer stock reaches approximately $1.59 or a 65% increase from the closing sale price of Integer common stock on January 31, 2023. At a doubling of the stock price or approximately $132 per share, dilution would be approximately 3% if the premium is paid with equity.

通過相關的上限看漲期權，在 Integer 股票達到約 1.59 美元或比 2023 年 1 月 31 日 Integer 普通股的收盤價上漲 65% 之前，不會用股權支付任何溢價。股價翻倍或約 132 美元如果以股權支付溢價，每股稀釋將約為 3%。

Also note, we have included an additional slide in the appendix of the presentation that shows the correlation of dilution with potential stock price growth. In addition to discipline in our interest management, we remain disciplined in our overall capital allocation. Before summarizing our full cash flow outlook, I wanted to share more details on the strategy we are employing to maintain strong cash flow generation.

另請注意，我們在演示文稿的附錄中包含了一張額外的幻燈片，顯示了稀釋與潛在股價增長的相關性。除了我們的利益管理方面的紀律外，我們在整體資本配置方面也保持紀律。在總結我們的完整現金流前景之前，我想分享更多關於我們為保持強勁現金流產生而採用的戰略的細節。

In addition to generating $39 million of incremental year-over-year cash from operational improvement, we expect to enter into a receivables factoring program that provides a onetime incremental cash benefit of approximately $35 million. This will essentially offset the onetime investment needed to expand the manufacturing capacity in our Irish facilities. And with this, our operational cash improvements fall through to free cash flow and eliminate any pressure on our net total debt to trailing adjusted EBITDA leverage.

除了通過運營改進產生 3900 萬美元的同比增量現金外，我們還預計將參與一項應收賬款保理計劃，該計劃將一次性提供約 3500 萬美元的增量現金收益。這將從根本上抵消擴大愛爾蘭工廠製造能力所需的一次性投資。有了這個，我們的運營現金改善將轉化為自由現金流，並消除我們的淨總債務對尾隨調整後 EBITDA 槓桿的任何壓力。

I'll also note that in addition to the cash offset to this onetime CapEx increase, the cost of the factoring program will be slightly favorable to our current effective interest rate, providing further earnings benefit. To close our financial discussion, I would like to pull together the impact of the several actions we are taking and summarize our cash flow generation and our net total debt projections for 2023, inclusive of reduced interest payments, operational growth and the factoring program, we expect to generate cash flow from operations between $180 million to $200 million.

我還要指出，除了對一次性資本支出增加的現金抵消外，保理計劃的成本將略微有利於我們當前的實際利率，從而提供進一步的盈利收益。為了結束我們的財務討論，我想匯總我們正在採取的幾項行動的影響，並總結我們的現金流產生和我們對 2023 年的淨債務總額預測，包括利息支付減少、業務增長和保理計劃，我們預計運營產生的現金流量在 1.8 億美元至 2 億美元之間。

As discussed earlier, we expect capital expenditures to temporarily increase in 2023 as we invest in critical capacity expansions in our Irish facility of approximately $37 million. Excluding this temporary increase in spend on building expansions, we estimate our remaining capital expenditures to be between $70 million to $80 million. This will result in a total estimated CapEx investment between $100 million to $120 million and free cash flow between $70 million to $90 million.

如前所述，我們預計資本支出將在 2023 年暫時增加，因為我們投資約 3700 萬美元用於愛爾蘭工廠的關鍵產能擴張。排除建築擴建支出的暫時增加，我們估計剩餘的資本支出在 7000 萬至 8000 萬美元之間。這將導致資本支出總額估計在 1 億至 1.2 億美元之間，自由現金流在 7000 萬至 9000 萬美元之間。

The free cash flow we expect to generate will be used to reduce the year-end 2022 net total debt by $2 million to $22 million after reducing the additional debt created in early February from the fees associated with the convertible note and capped call. We expect to end the year at our leverage ratio within our target range of 2.5x to 3.5x adjusted EBITDA.

我們預計產生的自由現金流將用於減少 2 月初因與可轉換票據和上限看漲期權相關的費用而產生的額外債務後，將 2022 年底的淨總債務減少 200 萬美元至 2200 萬美元。我們預計今年年底我們的槓桿率將在我們調整後 EBITDA 的 2.5 倍至 3.5 倍的目標範圍內。

With that, I'll turn the call back to Joe. Thank you.

有了這個，我會把電話轉回給喬。謝謝。

Thanks, Jason. Integer had a strong finish to 2022 with fourth quarter sales up 19% and adjusted operating income up 30%. Our 2023 outlook is to grow sales high single digits and expand margins in what remains a challenging supply chain environment. Looking beyond 2023, we believe our strong product development pipeline in high-growth markets, combined with our demonstrated emerging customer growth positions us well for sustained above-market growth. We remain focused on executing our strategy to create a premium valuation for our shareholders.

謝謝，傑森。 Integer 到 2022 年表現強勁，第四季度銷售額增長 19%，調整後營業收入增長 30%。我們的 2023 年展望是在仍然充滿挑戰的供應鏈環境中實現高個位數的銷售額增長並擴大利潤率。展望 2023 年以後，我們相信我們在高增長市場的強大產品開發渠道，加上我們展示的新興客戶增長，使我們能夠實現持續高於市場的增長。我們仍然專注於執行我們的戰略，為我們的股東創造溢價估值。

I will now turn the call over to the operator for the Q&A portion of our call.

我現在將把電話轉給接線員進行我們電話的問答部分。

(Operator Instructions) We will take a question from Matthew Mishan, KeyBanc.

（操作員說明）我們將向 KeyBanc 的 Matthew Mishan 提問。

I guess first, I just wanted to say thank you to Tony for all the help through the years and wish you the very best in retirement. Thank you, Tony.

我想首先，我只想對托尼多年來的所有幫助表示感謝，並祝你退休後一切順利。謝謝你，托尼。

Thank you, Matt.

謝謝你，馬特。

And then I'm just going to start off with the market plus to the 6% -- 6% to 8% growth from here on, on a sustainable basis. Is that including -- I mean how are you incorporating the exit from portable medical and kind of Nevro in-sourcing over the next, like 2 to 3 years within that market plus 2? And then does it also include potential contribution from acquisitions?

然後我將從市場開始，在可持續的基礎上從這裡開始增加 6% - 6% 到 8% 的增長。這是否包括 - 我的意思是你如何將便攜式醫療的退出和 Nevro 的內包納入未來，比如該市場的 2 到 3 年加 2？然後它是否還包括收購的潛在貢獻？

Matt, thank you for the question. I'll start maybe in a reverse order. It does not include acquisition revenues. So any acquisitions would be inorganic on top of our organic growth of 200 basis points above the market. Acquisitions do help when we think about looking forward, Oscor and Aran, the 2 acquisitions we did at the end of '21 and in the second quarter of 2022. They are contributing to accelerating our revenue growth because they both grew around 20% on a year-over-year basis pro forma, if you look at the part of the prior year that was not part of Integer.

馬特，謝謝你的提問。我可能會以相反的順序開始。它不包括收購收入。因此，在我們高於市場 200 個基點的有機增長之上，任何收購都是無機的。當我們考慮展望未來時，收購確實有幫助，Oscor 和 Aran，這是我們在 21 年底和 2022 年第二季度進行的兩次收購。它們有助於加速我們的收入增長，因為它們都增長了 20% 左右如果您查看前一年不屬於 Integer 的部分，則按年計算。

So they're strong growers. Now we don't expect 20% every year, but those 2 businesses have performed very well on a year-over-year basis, and we expect strong growth, high single digit, low double digit from those 2 acquisitions. So that does contribute to the total company growth rate for sure.

所以他們是強大的種植者。現在我們不期望每年增長 20%，但這兩項業務同比表現非常好，我們預計這兩項收購將實現強勁增長，高個位數，低兩位數。因此，這確實有助於公司的整體增長率。

Your other question on -- as we think about looking forward, we definitely see strong growth from the pipeline that we have. When you think about Nevro, we've already factored in the Nevro impact of them in-sourcing into our guidance. That's -- it's a couple of 3-year transition. And I'll highlight that we do have a long-term agreement with Nevro. We are their second source for manufacturing -- second source for them to their in-source. We also have vertical integration of components that we're selling to them.

你的另一個問題——當我們考慮展望未來時，我們肯定會從我們擁有的管道中看到強勁的增長。當您想到 Nevro 時，我們已經將他們內包的 Nevro 影響納入我們的指南。那是——這是一個為期 3 年的過渡期。我要強調的是，我們確實與 Nevro 達成了長期協議。我們是他們的第二個製造來源——他們的第二個來源。我們還對我們出售給他們的組件進行了垂直整合。

So that's been factored into our longer-term guidance. And we've been planning for that for, gosh, it feels like 1.5 years to 2 years since they announced their in-sourcing. So that's in our 2023 guidance. That's in our outlook for the remainder. And then your question about portable medical, it's going to take another 2 to 3 years for those customers to finish the in-sourcing that they're doing because from start to finish, it was about 4 years.

因此，這已被納入我們的長期指導方針。我們一直在為此計劃，天哪，自從他們宣佈內包以來，感覺就像 1.5 到 2 年。這就是我們的 2023 年指南。這是我們對其餘部分的展望。然後你關於便攜式醫療的問題，這些客戶還需要 2 到 3 年才能完成他們正在做的內包，因為從開始到結束，大約需要 4 年。

And I'll highlight again, I think that reinforces the sheer stickiness of what we do. The portable medical products that we were manufacturing, we determined we didn't have meaningful differentiation because it was largely assembly. The portion of that business, there was about $70 million in sales in total, about $40 million of it is what we're exiting, $30 million of it's what we're retaining. We're retaining the part that serves heart failure and cochlear applications which we do have vertical integration, and we do have points of differentiation.

我會再次強調，我認為這加強了我們所做工作的絕對粘性。我們製造的便攜式醫療產品，我們確定我們沒有有意義的差異化，因為它主要是組裝。該業務的一部分，總銷售額約為 7000 萬美元，其中約 4000 萬美元是我們正在退出的部分，其中 3000 萬美元是我們保留的部分。我們保留了服務於心力衰竭和耳蝸應用的部分，我們確實有垂直整合，我們確實有差異點。

The $40 million we're exiting, that does not have meaningful differentiation from a technology standpoint, which is part of why we're exiting it. That will take 4 years to exit because of the amount of time it takes our customers to find an alternate supply and then get through the regulatory qualification process. So I'll just reinforce that was low technology, minimal technology differentiation. Contrast that with what we do in the rest of our business where we do have points of technological differentiation or manufacturing capability, process know-how differentiation and the other parts of our business are incredibly sticky.

我們退出的 4000 萬美元，從技術角度來看沒有有意義的差異化，這也是我們退出的部分原因。這將需要 4 年的時間才能退出，因為我們的客戶需要花費大量時間來尋找替代供應，然後通過監管資格流程。所以我只是強調這是低技術，最小的技術差異。與我們在其他業務中所做的相比，我們在其他業務中確實具有技術差異化或製造能力、工藝知識差異化以及我們業務的其他部分具有難以置信的粘性。

And so we think that's an important point, but it's going to take another at least 2 to 3 years for that business to be transferred away, and we feel we can manage that as we look at the growth trajectory that we have particularly with the strong pipeline of development programs that we've provided the leading indicators for the last couple of years, particularly with the emerging customer growth, where we outperformed in 2022 compared to what we thought we were going to do 1.5 years ago, and we've increased our outlook for 2024 based on that strong pipeline.

因此，我們認為這一點很重要，但該業務至少還需要 2 到 3 年的時間才能轉移出去，我們認為我們可以管理這一點，因為我們看到了我們的增長軌跡，特別是與強大的我們在過去幾年提供了領先指標的一系列發展計劃，特別是在新興客戶增長方面，與我們 1.5 年前的預期相比，我們在 2022 年的表現優於預期，並且我們增加了我們對 2024 年的展望基於這一強大的管道。

Okay. Excellent. So that's a clear -- that was a fully clean number, that's fantastic. And then when you think about the emerging growth company guidance that you've given and the increase, how did you incorporate Aran and Oscor into that? I think Oscor was closed by the time you gave guidance on that last time. Did that help the number? Or are those maybe a little bit longer term as far as emerging customers?

好的。出色的。所以這很清楚——這是一個完全乾淨的數字，太棒了。然後，當你想到你給出的新興成長型公司指導和增長時，你是如何將 Aran 和 Oscor 納入其中的？我認為在您上次給出指導時 Oscor 已經關閉。這對數字有幫助嗎？或者就新興客戶而言，這些可能會更長一些？

They help the numbers, particularly in the out years. And so it does contribute to the growth. And as those businesses are growing faster than the average, that contributes to the accelerated growth for sure. We also think the capabilities both of those businesses bring gives us the opportunity to do more, and that's really from about capitalizing on the commercial synergies.

他們幫助了數字，特別是在過去的幾年裡。所以它確實有助於增長。由於這些業務的增長速度快於平均水平，這無疑有助於加速增長。我們還認為，這兩家公司所帶來的能力讓我們有機會做更多事情，而這實際上來自於利用商業協同效應。

Now that Oscor and Aran are part of Integer, we are having broader discussions with our customers who now see the strength, stability, size and scale of Integer and the ability to vertically integrate those capabilities. We think that will help us accelerate the growth. But right now, what we've incorporated in here is what we have visibility to, but we're confident that those commercial synergies will play out over time and give us even faster growth. Recognizing the development -- product development cycle times, the businesses Aran, in particular, was acquired in April of last year, Oscor in December of '21, it takes time then to turn those commercial opportunities into development projects then become sales.

現在 Oscor 和 Aran 是 Integer 的一部分，我們正在與我們的客戶進行更廣泛的討論，他們現在看到了 Integer 的實力、穩定性、規模和規模以及垂直整合這些功能的能力。我們認為這將有助於我們加速增長。但是現在，我們在這里合併的是我們可以看到的，但我們相信這些商業協同效應將隨著時間的推移發揮作用，並給我們帶來更快的增長。認識到開發——產品開發週期時間，特別是 Aran 業務，在去年 4 月被收購，Oscor 在 2021 年 12 月被收購，將這些商業機會轉化為開發項目然後成為銷售需要時間。

And so the programs that require product development are probably not meaningful in the 2024 time frame. But there's plenty of off-the-shelf products within Oscor in particular, that we can capitalize on sooner. And we're beginning to see the growth potential of that. So there are opportunities, and I would frame them as probably incremental and accretive to what we have on the slide here, but probably in the future years.

因此，需要產品開發的項目在 2024 年的時間框架內可能沒有意義。但尤其是 Oscor 中有大量現成的產品，我們可以更快地加以利用。我們開始看到它的增長潛力。所以機會是存在的，我認為它們可能會增加和增加我們在幻燈片上的內容，但可能在未來幾年。

Okay. And then just a near-term question before moving on to margins. Just any commentary on the cadence of organic growth and operating margin progression as you move through 2023?

好的。在繼續討論利潤率之前，這只是一個近期問題。關於 2023 年有機增長和營業利潤率進展的節奏有什麼評論嗎？

Sure. Great question. We tried to convey that we expect the first quarter to sales compared to fourth quarter deck to first quarter, we expect a little bit of a step down in the first quarter in sales. We highlighted that on our financial outlook. I think it was Slide #12, I think, where with the second half of last year was -- 2022 was about $358 million.

當然。很好的問題。我們試圖表達我們預計第一季度的銷售額與第四季度的銷售額相比，我們預計第一季度的銷售額會有所下降。我們在我們的財務前景中強調了這一點。我認為這是幻燈片 #12，我認為，去年下半年是——2022 年約為 3.58 億美元。

That's really what we expect to be in that range when we look at the first quarter of '23 because the fourth quarter did have some sales in it that really we ideally would have shipped in the third quarter had we not had some of the supply chain issues. So we would expect first quarter '23 to look a bit more like the second half average of '22 and then go from there.

當我們查看 23 年第一季度時，這確實是我們期望在該範圍內的，因為第四季度確實有一些銷售，如果我們沒有一些供應鏈，我們理想情況下會在第三季度發貨問題。因此，我們預計 23 年第一季度看起來更像 22 年下半年的平均水平，然後從那裡開始。

Now that's going to be a really strong year-over-year, first quarter '23 to first quarter '22, a really strong year-over-year growth rate, remembering what happened in the first quarter of '22, the world, particularly the U.S. and Europe and Asia had a spike in COVID absenteeism. In January that impacted our sales a bit in the first quarter. So I would expect a very strong year-over-year first quarter, but the nominal sales will look a bit like the second half of 2022. And then we would expect to build off of that nominal level of sales in the second, third and fourth quarter.

現在這將是一個非常強勁的同比增長，從 23 年第一季度到 22 年第一季度，一個非常強勁的同比增長率，記住 22 年第一季度發生的事情，特別是世界美國、歐洲和亞洲的 COVID 曠工人數激增。一月份，這對我們第一季度的銷售額產生了一些影響。因此，我預計第一季度的同比增長非常強勁，但名義銷售額看起來會有點像 2022 年下半年。然後我們預計第二、第三和第二季度的名義銷售額將有所增加第四季度。

And then you would expect margin rates to mirror that growth profile. So the first quarter margin rate will probably be a little lower because the sales are a little lower, volume is a little lower and then picking up as the year progresses.

然後你會期望保證金率反映出這種增長情況。因此，第一季度的利潤率可能會略低一些，因為銷量略低，銷量略低，然後隨著時間的推移而回升。

And just for clarity, Joe is referencing Slide 27. Sorry...

為清楚起見，Joe 引用的是幻燈片 27。抱歉...

Okay. And then going back to margins, and I appreciate Jason's commentary around like waiting for the supply chain to fully normalize productivity to be better in the plans. But when you think about where you guys were in kind of 2019 and kind of where you are expecting 2023 to start off. And I mean should we be thinking about this as like a new base of margin where you get 2x sales growth from here? Or do you think you have an ability to recapture some of the lost margin from 2019 versus where you are today at a more accelerated pace as things get a little bit better?

好的。然後回到利潤率，我很欣賞 Jason 的評論，就像等待供應鏈完全正常化生產力以在計劃中更好。但是當你想想你們在 2019 年的位置以及你期望 2023 年開始的位置時。我的意思是我們是否應該將其視為一個新的利潤基礎，您可以從這裡獲得 2 倍的銷售增長？或者，您是否認為隨著情況好轉，您有能力以更快的速度從 2019 年奪回部分損失的利潤率？

Yes. Great question, Matt. I think you've heard from most of our customers, as they talk about what 2023 outlook looks like, if you point all the way back to pre-COVID 2019. I think you've heard everybody say there's order of magnitude about a 300-plus basis point delta that will take some time to fully get back to that. I think one of our largest customers said don't expect it anytime soon.

是的。好問題，馬特。我想你已經從我們的大多數客戶那裡聽到了，當他們談論 2023 年的前景時，如果你一直指向 COVID 之前的 2019 年。我想你已經聽到每個人都說有大約 300 個數量級-加上基點增量，需要一些時間才能完全恢復到那個水平。我想我們最大的客戶之一說不要指望很快。

I'm paraphrasing, but I think that was a clear message. On their last earnings call, I think you have to consider those supply disruption that everyone's been through and the material inflation of the labor environment where wages have gone up and there has been inefficiencies created by the environment of the past 3 years.

我在解釋，但我認為這是一個明確的信息。在他們上次的財報電話會議上，我認為你必須考慮每個人都經歷過的那些供應中斷，以及工資上漲的勞動力環境的物質通貨膨脹，以及過去 3 年環境造成的低效率。

Without a doubt, we are confident we can expand margins going forward in this environment, which is still a challenging supply chain environment. It's definitely better than it was but recognizing it was an incredibly challenging supply chain environment. It's improving, but it remains challenging. And so we're confident we can expand margins in 2023. And as the macro environment for labor and supply chain continue to improve and stabilize, we believe we can continue to expand margins.

毫無疑問，我們有信心在這種環境下擴大未來的利潤率，這仍然是一個充滿挑戰的供應鏈環境。它肯定比以前更好，但認識到這是一個極具挑戰性的供應鏈環境。它正在改善，但仍然具有挑戰性。因此，我們有信心在 2023 年擴大利潤率。隨著勞動力和供應鏈的宏觀環境繼續改善和穩定，我們相信我們可以繼續擴大利潤率。

So without putting a time frame on getting back to 2019 margins as we continuously expand margins, we believe we will get back there. I can't put a time frame on it because the labor environment and the supply chain environment matter with respect to getting back to those levels of efficiency.

因此，隨著我們不斷擴大利潤率，我們沒有為回到 2019 年的利潤率設定時間框架，我們相信我們會回到那裡。我無法確定時間框架，因為勞動力環境和供應鏈環境對於恢復到這些效率水平很重要。

I'll also highlight we have been able to successfully pass through some of the labor and wage -- some of the wage inflation and material inflation to our customers. We did that last year. Historically, we've been a 1% to 2% price down company. Last year, we were at the low end of that range.

我還要強調，我們已經能夠成功地將一些勞動力和工資——一些工資通脹和材料通脹轉移給我們的客戶。去年我們這樣做了。從歷史上看，我們是一家降價 1% 到 2% 的公司。去年，我們處於該範圍的低端。

In 2022, we were at the low end. In 2023, we expect to be slightly positive in price on a year-over-year basis, which captures the improvement in '22, and that will continue into '23. So that helps. But I can't put a time frame like getting back to 2019, but if we continuously expand margins, I'm confident we will.

2022年，我們處於低端。到 2023 年，我們預計價格將同比略有上漲，這體現了 22 年的改善，並將持續到 23 年。所以這有幫助。但我不能設定一個時間框架，比如回到 2019 年，但如果我們不斷擴大利潤率，我相信我們會的。

Okay. And then just last question, and then I'll jump out. As you think about your M&A strategy and your M&A plan, you introduced like 1.5 years or 2 years ago at this point, how does it change with the CapEx investments you're making and the higher interest rates? Just how are you thinking about the dollar figure of potential M&A moving forward?

好的。然後是最後一個問題，然後我會跳出來。當你考慮你的併購戰略和併購計劃時，你在 1.5 年或 2 年前在這一點上介紹過，它如何隨著你正在進行的資本支出投資和更高的利率而變化？您如何看待未來潛在併購的美元數字？

I mean the $250 million, I think it is much greater than where -- but free cash flow is coming in this year. I mean are you willing to go more on the variable rate debt side in a 7% interest rate environment if you do see the right type of acquisition?

我的意思是 2.5 億美元，我認為它比哪里大得多——但今年會有自由現金流。我的意思是，如果您確實看到合適的收購類型，您是否願意在 7% 的利率環境下更多地參與可變利率債務？

Yes. So it's a great question. So we closed Oscor $220-ish million in December of '21. We closed Aran, USD 130-ish million in April of '22. So if you think about our cadence, the cadence would put it in the second half of the year, just thinking about a flow from a cadence standpoint. But your question about, well, how do we think about nominal dollars.

是的。所以這是一個很好的問題。因此，我們在 2021 年 12 月以 2.2 億美元的價格關閉了 Oscor。我們在 22 年 4 月以 1.3 億美元的價格關閉了 Aran。所以如果你考慮我們的節奏，節奏會放在下半年，只是從節奏的角度考慮一個流程。但是你的問題是，我們如何看待名義美元。

We look at what our debt leverage is, and we remain very committed to 2.5 to 3.5x our debt leverage. The convertible bond issue we just did, I think, is a phenomenal example of how we continue to manage interest expense. We're 60-ish percent fixed right now and about 40% floating, and our weighted average interest cost, this year, we estimate it's going to be a little over 4%, which matches where we were for the last 2 or 3 years.

我們看看我們的債務槓桿是多少，我們仍然非常致力於將我們的債務槓桿提高 2.5 到 3.5 倍。我認為，我們剛剛發行的可轉換債券是我們如何繼續管理利息支出的一個非凡例子。我們現在有 60% 是固定的，大約 40% 是浮動的，我們的加權平均利息成本，今年，我們估計會略高於 4%，這與我們過去 2 或 3 年的水平相符.

So even in this high-rate environment, we've got interest expense in the P&L that it's at about the same weighted average interest rate. So reflect on acquisitions, we're balancing all of that, obviously, with the higher variable rates, you're going to incur higher borrowing costs in the short term, but there is a weighted average interest rate here that's very consistent over the past 3 years and what we expect in '23 and potentially coming down as depending on what interest rates do in '24 and beyond.

因此，即使在這種高利率環境下，我們在損益表中也有利息支出，其加權平均利率大致相同。因此，反思一下收購，我們正在平衡所有這些，顯然，浮動利率較高，短期內你將承擔更高的借貸成本，但這裡的加權平均利率與過去非常一致3 年以及我們對 23 年的預期以及可能下降的情況取決於 24 年及以後的利率情況。

So I'd say, think of it in the context of maintaining our commitment to 2.5 to 3.5x debt leverage. We did bump above 3.5 when we did the Aran acquisition. That was second quarter. But by the fourth quarter, a couple of quarters later, we're right now at 3.5, right, right at the top end of our 2.5 to 3.5 range. So we really think of it in the context of our debt leverage and maintaining our commitment to that range.

所以我想說，在維持我們對 2.5 至 3.5 倍債務槓桿的承諾的背景下考慮它。當我們收購 Aran 時，我們確實突破了 3.5。那是第二季度。但是到第四季度，幾個季度後，我們現在是 3.5，就在我們 2.5 到 3.5 範圍的頂端。所以我們真的在我們的債務槓桿和維持我們對該範圍的承諾的背景下考慮它。

Maybe it can bump up a little bit for a few quarters with a very clear path and near-term plan to get back within the range. There is a robust pipeline that might be one of your next questions, the pipeline remains robust. Valuations haven't meaningfully materially changed for the high-value assets that we target when we think about what we're looking for. We want a business with an accretive growth rate, ideally either accretive margins to Integer or something that we can make accretive to Integer in relative near term given our operational and commercial synergies, and we want differentiated capability or we want to compound the capability we already have and further grow in the faster-growing end markets that we've been targeting.

也許它可以在幾個季度內稍微上漲一點，並有一個非常明確的路徑和近期計劃回到該範圍內。有一個強大的管道可能是您的下一個問題之一，管道仍然很強大。當我們考慮我們正在尋找的東西時，我們所瞄準的高價值資產的估值並沒有發生有意義的重大變化。我們想要一家具有增值增長率的企業，理想情況下要么增加 Integer 的利潤率，要么考慮到我們的運營和商業協同效應，我們可以在相對短期內增加 Integer 的東西，我們想要差異化的能力，或者我們想要復合我們已經擁有的能力在我們一直瞄準的增長更快的終端市場中擁有並進一步發展。

So maybe in summary to all of that, think about our leverage and we're committed to maintaining our leverage while continuing to do accretive acquisitions for the company.

因此，也許總結所有這些，想想我們的槓桿作用，我們致力於在繼續為公司進行增值收購的同時保持我們的槓桿作用。

(Operator Instructions) At this time, there appear to be no more questions in the queue.

（操作員說明）此時，隊列中似乎沒有更多問題。

Great. Thank you, everyone, for joining today's call. I think over my career, I've done 50 of these earnings calls. It's been a pleasure -- my absolute pleasure to interact with all the shareholders that have and rest assured you be in great hands with Andrew going forward. And with that, for the last time, you can access the replay of this call on our website as well as the presentation we just covered. Thank you.

偉大的。謝謝大家參加今天的電話會議。我想在我的職業生涯中，我已經完成了 50 次這樣的收益電話會議。很高興——我非常高興與所有股東互動，並向您保證，安德魯的未來將得到很好的幫助。最後一次，您可以在我們的網站上訪問這次電話會議的重播以及我們剛剛介紹的演示文稿。謝謝。

Once again, everyone, that does conclude today's conference. We would like to thank you all for your participation today. You may now disconnect.

各位，今天的會議到此結束。感謝大家今天的參與。您現在可以斷開連接。