Integer Holdings Corp (ITGR) 2023 Q1 法說會逐字稿

Thank you for standing by. My name is Michelle, and I will be your conference operator today. At this time, I would like to welcome everyone to the Integer Holdings Corporation First Quarter 2023 Earnings Release Conference Call. (Operator Instructions)

謝謝你的支持。我叫米歇爾，今天我將擔任你們的會議操作員。現在，我歡迎大家參加 Integer Holdings Corporation 2023 年第一季度收益發布電話會議。 （操作員說明）

Mr. Andrew Senn, you may begin.

安德魯·森恩先生，您可以開始了。

Good morning, everyone. Thank you for joining us, and welcome to Integer's First Quarter 2023 Earnings Conference Call. With me today are Joe Dziedzic, President and Chief Executive Officer; and Jason Garland, Executive Vice President and Chief Financial Officer. 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.

大家，早安。感謝您加入我們，歡迎參加 Integer 2023 年第一季度收益電話會議。今天與我在一起的有總裁兼首席執行官 Joe Dziedzic；執行副總裁兼首席財務官賈森·加蘭 (Jason Garland)。提醒一下，我們今天討論的結果和數據反映了 Integer 在所示期間的綜合結果。在電話會議中，我們將討論一些非公認會計準則財務指標。有關這些非 GAAP 財務指標的調節表，請參閱今天演示文稿的附錄、今天的收益新聞稿和趨勢表，這些內容可在我們的網站 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.

請注意，今天的演示包含前瞻性陳述。請參閱該公司向 SEC 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。

On today's call, Joe will provide his opening comments and Jason will then review our financial results for the first quarter of 2023, and provide an update on our full year 2023 guidance. Joe will come back to provide his closing remarks, and then we will open up the call for questions.

在今天的電話會議上，Joe 將發表開場評論，Jason 將回顧我們 2023 年第一季度的財務業績，並提供 2023 年全年指導的最新信息。喬將回來發表結束語，然後我們將開始提問。

With that, I will turn it over to Joe.

這樣，我就把它交給喬。

Thank you, Andrew, and thank you to everyone for joining the call today. In addition to KeyBanc and Benchmark, we are excited to welcome sell-side analysts from Piper Sandler and Bank of America, who have recently initiated coverage on Integer. We appreciate the coverage from all the sell-side analysts and are excited by the opportunity to reach more potential investors.

謝謝你，安德魯，也感謝大家今天加入電話會議。除了 KeyBanc 和 Benchmark 之外，我們還很高興地歡迎來自 Piper Sandler 和美國銀行的賣方分析師，他們最近開始對 Integer 進行研究。我們感謝所有賣方分析師的報導，並對有機會接觸更多潛在投資者感到興奮。

In the first quarter, we delivered strong year-over-year results. Sales grew 21% organically, with strong double-digit growth across all product lines. Our adjusted operating income grew 28%, generating nearly 70 basis points expansion of adjusted operating income as a percentage of sales compared to last year. First quarter sales were stronger than we expected, driven primarily by the recovery of the delayed shipments from the second half of last year.

第一季度，我們取得了同比強勁的業績。銷售額有機增長 21%，所有產品線均實現強勁的兩位數增長。我們調整後的營業收入增長了 28%，調整後的營業收入佔銷售額的百分比比去年增加了近 70 個基點。第一季度的銷售強於我們的預期，主要是由於去年下半年延遲發貨的恢復。

Although we largely caught up on those delayed sales, the supply chain environment remains challenging overall. On a positive note, we are continuing to reduce our direct labor turnover and are largely at the headcount levels we need to deliver on our high-single-digit organic sales growth this year. We are reiterating our full year outlook. We expect our organic sales growth to be 7% to 9%, which is about 300 basis points above the growth rate in the markets we serve.

儘管我們基本上趕上了延遲的銷售，但供應鏈環境總體上仍然充滿挑戰。從積極的方面來看，我們正在繼續減少直接勞動力流動率，並且基本上達到了我們今年實現高個位數有機銷售增長所需的人員水平。我們重申全年展望。我們預計我們的有機銷售額增長率將為 7% 至 9%，比我們服務的市場增長率高出約 300 個基點。

We expect adjusted operating income to grow 10% to 16% year-over-year. We are also confirming our free cash flow guidance of $70 million to $90 million, a strong year-over-year increase.

我們預計調整後營業收入將同比增長 10% 至 16%。我們還確認了 7000 萬至 9000 萬美元的自由現金流指引，同比強勁增長。

The strategy we developed in 2017, and began implementing in 2018, is now producing projected sustained above-market sales growth and margin expansion in what remains a challenging supply chain environment. It is an exciting time at Integer because demand remains incredibly strong, we are making the investments needed to deliver sustained growth, and we have a strong pipeline of new products concentrated in faster-growing end markets. I am grateful for our associates around the world that are delivering for our customers and making a difference for patients.

我們於 2017 年制定並於 2018 年開始實施的戰略，目前在充滿挑戰的供應鏈環境中實現了預計持續高於市場的銷售增長和利潤率擴張。對於 Integer 來說，這是一個激動人心的時刻，因為需求仍然非常強勁，我們正在進行實現持續增長所需的投資，而且我們擁有強大的新產品管道，集中在增長更快的終端市場。我感謝我們世界各地的員工為我們的客戶提供服務並為患者帶來改變。

I'll now turn the call over to Jason.

我現在將電話轉給傑森。

Thank you, Joe. Good morning, everyone, and thank you again for joining today's discussion. I'll provide more details on our first quarter 2023 financial results and provide an update on our 2023 outlook. We started 2023 with a strong first quarter. Sales of $379 million delivered growth of 22% year-over-year on a reported basis and 21% organically, which excludes the impact of the Aran acquisition and currency differences.

謝謝你，喬。大家早上好，再次感謝大家參加今天的討論。我將提供有關 2023 年第一季度財務業績的更多詳細信息，並提供 2023 年展望的最新信息。 2023 年第一季度業績強勁。銷售額達 3.79 億美元，按報告計算同比增長 22%，有機增長 21%，其中不包括收購 Aran 和匯率差異的影響。

Our sales growth is indicative of continued demand strength across all product lines and includes the impact of delivering products that have been constrained by supplier delays in the second half of 2022. Although we did recover these delays, the supply chain environment remains challenging.

我們的銷售增長表明所有產品線的需求持續強勁，包括 2022 年下半年因供應商延誤而受到限制的產品交付的影響。儘管我們確實恢復了這些延誤，但供應鏈環境仍然充滿挑戰。

We delivered $66 million of adjusted EBITDA, up $12 million compared to last year, or an increase of 22%. Adjusted operating income was up 28% or $11 million versus last year, and we have made progress on our year-over-year margin expansion.

我們實現了 6600 萬美元的調整後 EBITDA，比去年增加了 1200 萬美元，增幅為 22%。調整後營業收入比去年增長了 28%，即 1100 萬美元，我們在同比利潤率擴張方面取得了進展。

With adjusted net income at $29 million, we were able to offset the impact from higher interest rates and deliver $0.87 of adjusted diluted earnings per share, up $0.03 (sic) [$0.09] or 11% from the first quarter of 2022. In the first quarter of 2023, sales for all 4 product lines grew double digit year-over-year due to strong customer demand and continued recovery from the previous supplier delivery challenges.

調整後淨利潤為 2900 萬美元，我們能夠抵消利率上升的影響，並實現調整後攤薄每股收益 0.87 美元，比 2022 年第一季度增長 0.03 美元（原文如此）[0.09 美元]，即 11%。到 2023 年第四季度，由於強勁的客戶需求以及從之前的供應商交付挑戰中持續復甦，所有 4 個產品線的銷售額同比增長兩位數。

The Cardio & Vascular product line delivered 20% sales growth in the first quarter compared to a year ago. We executed on strong demand in all markets and key products such as guidewires. We also delivered new product ramps in electrophysiology and benefited from strong performance from the recent Oscor and Aaron acquisitions. Cardiac Rhythm Management & Neuromodulation's first quarter sales increased 18% over the first quarter of 2022 with double-digit growth in both CRM and neuromodulation also driven by strong overall demand and particularly strong double-digit growth from emerging customers with PMA products. Advanced Surgical, Orthopedics & Portable Medical saw a 42% growth in the first quarter versus a year ago, driven by increased price and demand as a result of the execution of the multiyear Portable Medical exit announced in 2022. This was partially offset by a single-digit decline in advanced surgical and orthopedics.

心血管產品線第一季度銷售額同比增長 20%。我們滿足了所有市場和導絲等關鍵產品的強勁需求。我們還推出了電生理學領域的新產品，並受益於最近收購的 Oscor 和 Aaron 的強勁表​​現。心律管理和神經調節第一季度銷售額比 2022 年第一季度增長 18%，CRM 和神經調節業務均實現兩位數增長，這也是由強勁的整體需求，尤其是 PMA 產品新興客戶強勁的兩位數增長推動的。由於執行 2022 年宣布的多年期便攜式醫療退出，價格和需求增加，推動先進外科、骨科和便攜式醫療第一季度同比增長 42%。 - 高級外科和骨科的數字下降。

And finally, Electrochem, our nonmedical segment, delivered a first quarter sales growth of 63% versus first quarter 2022, driven by strong demand across all market segments. Further product line detail is included in the appendix of the presentation.

最後，在所有細分市場強勁需求的推動下，我們的非醫療部門 Electrochem 第一季度銷售額較 2022 年第一季度增長了 63%。更多產品線詳細信息包含在演示文稿的附錄中。

To provide more color on our first quarter 2023 adjusted net income performance, we increased a total of $3 million compared to first quarter of 2022, primarily due to operational improvements and supported by strong sales volume, partially offset by higher interest rates. In this higher interest rate environment, we incurred interest expense of approximately $7 million or $6 million tax effected more than last year. However, on a sequential basis, compared to the fourth quarter of 2022, we reduced our interest expense by $1 million tax effected, driven by the previously announced convertible notes.

為了讓 2023 年第一季度調整後淨利潤表現更加生動，與 2022 年第一季度相比，我們總共增加了 300 萬美元，這主要是由於運營改善以及強勁銷量的支持，但部分被較高的利率所抵消。在這種較高的利率環境下，我們產生了約 700 萬美元的利息費用或比去年增加了 600 萬美元的稅收。然而，與 2022 年第四季度相比，在之前宣布的可轉換票據的推動下，我們的利息支出減少了 100 萬美元的稅收影響。

Moving to cash. We generated $6 million in cash flow from operating activities in the first quarter of 2023. The lower nominal level of first quarter cash flow from operations is consistent with our typical annual profile, driven primarily by payment of associate short-term incentives and rebate payments. That said, on a year-over-year basis, we did deliver $12 million less cash flow from operations in the first quarter of 2022.

轉向現金。 2023 年第一季度，我們從經營活動中產生了 600 萬美元的現金流。第一季度運營現金流的名義水平較低，與我們的典型年度狀況一致，這主要是由聯營公司短期激勵和回扣支付推動的。也就是說，與去年同期相比，我們在 2022 年第一季度的運營現金流確實減少了 1200 萬美元。

Despite higher adjusted EBITDA, we had headwinds from higher interest expense, income taxes and the final payment of employer social security taxes deferred from 2020 as part of the U.S. Government CARES Act. In addition, we were impacted by the timing of customer collections, which pushed into the first week of the second quarter. These are not collectability concerns, but we are working with our customers on improved payment timing. Our CapEx spend of $25 million in the first quarter was at a rate in line with our expected annual CapEx. As a result, free cash flow was a usage of $19 million.

儘管調整後的 EBITDA 較高，但我們仍面臨利息費用、所得稅以及根據美國政府 CARES 法案的一部分從 2020 年推遲的雇主社會保障稅最終支付的增加帶來的不利影響。此外，我們還受到客戶收貨時間的影響，該時間推遲到了第二季度的第一周。這些不是可收款問題，但我們正在與客戶合作改善付款時間。第一季度我們的資本支出為 2500 萬美元，與我們預期的年度資本支出一致。結果，自由現金流使用量為 1900 萬美元。

As an update to the factoring program shared during our fourth quarter 2022 earnings call, we received our first tranche of funding last week, totaling $20 million. For clarity, this is not in the first quarter results, but we will report it in the second quarter, and will help fund our onetime facility investments needed to support growth.

作為我們在 2022 年第四季度財報電話會議上分享的保理計劃的更新，我們上週收到了第一筆資金，總額為 2000 萬美元。為清楚起見，這不在第一季度的業績中，但我們將在第二季度報告，並將幫助為我們支持增長所需的一次性設施投資提供資金。

Net total debt increased $71 million to $978 million, driven primarily by fees associated with the $500 million convertible notes and the $35 million related capped call. As a result, our net total debt leverage at the end of the first quarter was 3.6x our trailing 4 quarter adjusted EBITDA, just slightly above our strategic target range, which remains at 2.5 to 3.5x.

淨債務總額增加了 7100 萬美元，達到 9.78 億美元，這主要是由於與 5 億美元可轉換票據和 3500 萬美元相關上限贖回權相關的費用所致。因此，我們第一季度末的淨總債務槓桿率為過去 4 個季度調整後 EBITDA 的 3.6 倍，略高於我們的戰略目標範圍（仍保持在 2.5 至 3.5 倍）。

We will now transition to providing more detail on our guidance for 2023 sales, income and cash. As Joe mentioned in his opening comments, we are reiterating our 2023 outlook, with a sales range of $1.470 billion to $1.5 billion, an increase of 7% to 9% and versus last year, which is above our underlying market growth rate. We expect margin rates to continue to expand through improved manufacturing efficiencies from greater stability in our direct labor workforce and increased product development sales through the remainder of the year.

我們現在將轉而提供有關 2023 年銷售額、收入和現金指導的更多詳細信息。正如 Joe 在開場白中提到的那樣，我們重申 2023 年的前景，銷售額範圍為 14.7 億至 15 億美元，與去年相比增長 7% 至 9%，高於我們的基本市場增長率。我們預計，通過提高直接勞動力的穩定性以及今年剩餘時間產品開發銷售的增加，提高製造效率，利潤率將繼續擴大。

We generally incur product development costs evenly across the year, while product development sales can be lumpy and are usually weighted towards the end of the year based on milestone achievement. Our adjusted operating income should grow through the year from higher product development sales, mostly visible as a reduction in RD&E expenses. Given these dynamics, we anticipate adjusted EBITDA growth of 11% to 16%, adjusted operating income growth of 10% to 16% and adjusted net income growth of 4% to 11%, with adjusted earnings per share growth of $0.12 to $0.42.

我們通常會在全年均勻地承擔產品開發成本，而產品開發銷售額可能會不穩定，並且通常會根據里程碑成就在年底進行加權。我們調整後的營業收入應該會因產品開發銷售額的增加而全年增長，主要表現為研發和教育費用的減少。鑑於這些動態，我們預計調整後 EBITDA 增長 11% 至 16%，調整後營業收入增長 10% 至 16%，調整後淨利潤增長 4% 至 11%，調整後每股收益增長 0.12 至 0.42 美元。

To provide more insight into our outlook, first quarter sales of $379 million benefited from the closure of the second half of 2022 supplier delivery constraints of approximately $15 million, above an underlying run rate of approximately $365 million. As we begin the second quarter of 2023, we expect sales similar to the first quarter run rate of $365 million as we continue to execute in a challenging supply chain environment. We expect adjusted operating income as a percent of sales to improve throughout the remainder of 2023 as we improve manufacturing efficiencies and achieve higher product development sales.

為了更深入地了解我們的前景，第一季度銷售額為 3.79 億美元，受益於 2022 年下半年供應商交付限制約 1500 萬美元的結束，高於約 3.65 億美元的基本運行率。隨著 2023 年第二季度的開始，我們預計銷售額將與第一季度的 3.65 億美元類似，因為我們將繼續在充滿挑戰的供應鏈環境中執行任務。我們預計，隨著我們提高製造效率並實現更高的產品開發銷售額，調整後的營業收入佔銷售額的百分比將在 2023 年剩餘時間內有所改善。

Before we close our financial discussion, I want to also affirm our cash flow guidance. As mentioned, last week, we received initial funding from the previously announced factoring program for approximately $20 million, which is being used to fund the strategic growth in capital investment. We plan to continue to grow that program through the year to an estimated total of $35 million. We expect to generate cash flow from operations between $180 million to $200 million.

在我們結束財務討論之前，我還想確認我們的現金流指引。如前所述，上週，我們從之前宣布的保理計劃中獲得了約 2000 萬美元的初始資金，該資金將用於為資本投資的戰略增長提供資金。我們計劃全年繼續擴大該計劃，預計總額達到 3500 萬美元。我們預計運營現金流將在 1.8 億至 2 億美元之間。

As previously shared, capital expenditures are expected to temporarily increase in 2023 as we invest in capacity expansions resulting in a total estimated CapEx investment between $100 million to $120 million, resulting in free cash flow between $70 million and $90 million. The free cash flow generated will be used to reduce our net total debt, and we expect to end the year with our leverage ratio within our target range of 2.5 to 3.5x adjusted EBITDA.

正如之前所分享的，隨著我們對產能擴張進行投資，資本支出預計將在 2023 年暫時增加，預計資本支出投資總額將在 1 億至 1.2 億美元之間，自由現金流將在 7,000 萬至 9,000 萬美元之間。產生的自由現金流將用於減少我們的淨總債務，我們預計到年底我們的槓桿率將保持在調整後 EBITDA 2.5 至 3.5 倍的目標範圍內。

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

這樣，我會將電話轉回給喬。謝謝。

Thanks, Jason. Integer had a strong start to 2023, with 22% year-over-year sales growth and adjusted operating income up 28% versus last year. We are reiterating our 2023 outlook as we continue to successfully execute our strategy to deliver above-market growth with expanding margins. We have a strong pipeline of new products and are investing in the capacity to sustain this growth. We remain focused on delivering for our customers and the patients they serve to generate a premium valuation for our shareholders. Thank you for joining our call this morning. I will now turn the call back to our moderator for the Q&A portion of our call.

謝謝，傑森。 Integer 到 2023 年開局強勁，銷售額同比增長 22%，調整後營業收入比去年增長 28%。我們重申 2023 年的展望，因為我們將繼續成功執行我們的戰略，以實現高於市場的增長和不斷擴大的利潤率。我們擁有強大的新產品儲備，並正在投資維持這種增長的能力。我們仍然專注於為我們的客戶和他們服務的患者提供服務，為我們的股東創造溢價估值。感謝您今天早上加入我們的電話會議。我現在將把電話轉回給我們的主持人，以進行電話問答部分。

(Operator Instructions) Your first question comes from the line of Matthew Mishan from KeyBanc.

（操作員說明）您的第一個問題來自 KeyBanc 的 Matthew Mishan。

Just a first one on like what you're seeing around your production schedules. I mean, you kept your revenue guidance the same. 1Q was definitely much better than expected. What are you seeing from your customers? And are you seeing demand increase through the course of the year versus what you initially expected? And are you able to meet that incremental demand?

只是第一個，就像您在生產計劃中看到的那樣。我的意思是，您的收入指導保持不變。第一季度絕對比預期好得多。您從客戶那裡看到了什麼？您是否發現這一年中的需求量與您最初的預期相比有所增加？您能夠滿足增量需求嗎？

Thanks for the question, Matt. We're seeing -- you've seen it across the industry that the underlying market seems to have been stronger than everyone expected and projected, and we're seeing that show up in sales. The thing that we're asking ourselves is, was that reflected in our customers' expectations when they placed orders on us, let's say, second half of last year, and they said, what do we need for Integer in the first quarter, second quarter. And if that underlying strength in the marketplace was in that demand, then we wouldn't expect to see much different than the 7% to 9% organic growth that we guided to for the year because that's what we've been planning for. And given our backlog and the amount of visibility we have to demand over the next 6 to 9 months, unless customers were to adjust the timing of that demand, we won't see it.

謝謝你的提問，馬特。我們看到，整個行業的基礎市場似乎比每個人的預期和預測都要強大，我們看到這一點在銷售中得到了體現。我們問自己的事情是，這反映在我們的客戶向我們下訂單時的期望中，比如說，去年下半年，他們說，我們在第一季度、第二季度對 Integer 需要什麼四分之一。如果市場的潛在優勢在於這種需求，那麼我們預計今年的有機增長不會與我們指導的 7% 至 9% 有太大不同，因為這就是我們一直在計劃的。考慮到我們的積壓訂單以及我們在未來 6 到 9 個月內必須要求的可見性，除非客戶調整該需求的時間，否則我們不會看到它。

But if the demand that's happening in the underlying markets that we're hearing about from everyone in the industry, if that was unexpected and unplanned for, then we would expect to see customers ask us to pull some of that demand that's on order now, they would ask us to move it to be earlier in the year. And that then has the potential then to lift our full year outlook. Because obviously, we're operating with really good visibility to demand with $900-plus million on order, most of it this year.

但是，如果我們從業內每個人那裡聽到的基礎市場中正在發生的需求，如果這是意外的和計劃外的，那麼我們預計會看到客戶要求我們撤回一些現在訂購的需求，他們會要求我們將其推遲到今年早些時候。這有可能提升我們的全年前景。因為顯然，我們對需求的可見性非常好，訂單金額超過 900 多萬美元，其中大部分是今年的。

And so it really comes down to where customers -- where our customers expecting this incremental growth that's being observed in the underlying markets in the first quarter. I wish I had a clear answer for you, but we're obviously working with our customers to understand their needs near term, long term. We see this as it's only upside to us because we've got really good visibility to the year. We had a strong start to the year, and we're excited about the prospects of the industry becoming even stronger than everyone expected.

因此，這實際上取決於客戶所在的地方——我們的客戶期望第一季度基礎市場中觀察到的增量增長。我希望能給您一個明確的答案，但我們顯然正在與客戶合作，以了解他們的近期和長期需求。我們認為這對我們來說是唯一的好處，因為我們對今年的能見度非​​常好。我們今年有一個良好的開局，我們對該行業的前景變得比所有人預期的還要強大感到興奮。

And then just -- Joe and Jason, I guess, just a flow-through. If you were to see some incremental upside on the revenue, how should we think about the flow-through of that? Is this a situation where you need to hire more people, you need to expedite freight? Or is it something which could actually flow through at a higher rate given the volume in your plans?

然後就是——喬和傑森，我猜，只是一個流程。如果您看到收入有一些增量增長，我們應該如何考慮其流量？這是一種需要雇用更多人員、需要加快貨運的情況嗎？或者考慮到您計劃中的數量，它實際上可以以更高的速度流通嗎？

Yes. It's another great question. So maybe I'll start with -- we have the direct labor. We've been able to hire the direct labor that we need to deliver for this year. We think we can get the 7% to 9% organic growth without adding much labor from where we were, quite frankly, at the end of last year. Because remember, last year, we added 15% more direct labor on 6% sales growth organically. And so we hired more than we needed last year or more than we could actually ship. And so as our workforce becomes more proficient at what they're doing, and we work through the continued challenging supply chain environment, that creates more capacity with the existing footprint, with the existing workforce. And we feel like we'd be able to get some of that volume out without having to add more direct labor and without having to invest more.

是的。這是另一個很好的問題。所以也許我會從——我們有直接勞動力開始。我們已經能夠僱用今年需要提供的直接勞動力。坦率地說，我們認為我們可以在不增加太多勞動力的情況下實現 7% 到 9% 的有機增長，坦率地說，是去年年底的水平。因為請記住，去年我們在銷售額有機增長 6% 的基礎上增加了 15% 的直接勞動力。因此，我們去年僱用的人員數量超出了我們所需的數量，或者超出了我們實際發貨的數量。因此，隨著我們的員工變得更加精通他們正在做的事情，並且我們在持續具有挑戰性的供應鏈環境中工作，這會利用現有的足跡和現有的員工創造更多的能力。我們覺得我們能夠獲得部分產量，而無需增加更多直接勞動力，也無需進行更多投資。

We also have seen a very significant improvement in our direct labor turnover. I think that's been a challenge for everybody. We see it in our suppliers as well. We improved significantly in the fourth quarter versus third quarter last year. We saw that trend continue. We actually have -- about 1/4 of our manufacturing sites are back to pre-COVID levels of direct labor turnover. I would attribute that to a number of factors. I think our plant leadership teams have done a great job of engaging our workforce. They've made changes in how we onboard, how we train. I think we've gotten better at identifying through the interview process associates who are ideally suited to work in the manufacturing environment.

我們還看到直接勞動力流動率有了非常顯著的改善。我認為這對每個人來說都是一個挑戰。我們在供應商身上也看到了這一點。與去年第三季度相比，我們第四季度有了顯著改善。我們看到這種趨勢仍在繼續。實際上，我們約 1/4 的製造工廠的直接勞動力流動率已恢復到新冠疫情前的水平。我將其歸因於許多因素。我認為我們的工廠領導團隊在吸引員工方面做得很好。他們改變了我們的入職方式和訓練方式。我認為我們通過面試過程更好地識別出最適合在製造環境中工作的員工。

And then I think the broader labor market has improved in many of the markets. So I think it's all of those factors. But the continued improvement in turnover, our ability to get our workforce more proficient and efficient at what they do is going to give us the capacity to meet increasing demand, while also generating the efficiencies, which ultimately will show up in gross margins. So we're excited about that.

然後我認為許多市場的更廣泛的勞動力市場已經改善。所以我認為這是所有這些因素。但營業額的持續改善，以及我們讓員工更加熟練和高效地完成工作的能力，將使我們有能力滿足不斷增長的需求，同時提高效率，這最終將體現在毛利率上。所以我們對此感到興奮。

[Eye] scan remains challenging. We're taking what we think is a pretty pragmatic approach towards what we expect from supply chain. We're seeing fewer issues. We're seeing some suppliers improve, but there remains a group of persistently delayed suppliers. We also are seeing, in some instances, we're seeing some quality issues start to come from some suppliers who I think are -- they're also training their new workforce, and we're identifying, they're early in the process, but that also ultimately leads to more disruption and inefficiency.

[眼睛]掃描仍然具有挑戰性。我們正在採取一種非常務實的方法來實現我們對供應鏈的期望。我們看到的問題越來越少。我們看到一些供應商有所改善，但仍有一批供應商持續拖延。我們還看到，在某些情況下，我們看到一些質量問題開始來自一些我認為是的供應商——他們也在培訓他們的新員工，我們正在識別，他們處於這個過程的早期，但這最終也會導致更多的混亂和低效率。

So we -- approach the supply chain, but if demand is higher and stronger than what we're forecasting and expecting, we feel we have both the workforce and the capacity to deliver on that.

因此，我們接近供應鏈，但如果需求比我們的預測和預期更高和更強，我們認為我們擁有勞動力和能力來實現這一目標。

Your next question comes from the line of Craig Bijou with Bank of America.

你的下一個問題來自美國銀行的 Craig Bijou。

And obviously, congrats on a very strong start to the year. I wanted to follow up on the demand in question and I appreciate your thoughts that you can manage any demand above what you're expecting with the current -- with your current infrastructure. But when does it get to a point, I guess, where if the underlying procedure volume has remained strong and maybe it was a surprise to some of your customers and -- is there a point where you do have to add people, capacity? I mean, is M&A a part of it? Or, on the other side, if supply chain worsens a bit or some of these quality issues become more pervasive. I guess just it's a follow-up on asking how -- your plan to deal with that and how nimble, I guess, you guys could be if you do need to add capacity?

顯然，祝賀今年的強勁開局。我想跟進相關需求，並且我很欣賞您的想法，即您可以使用當前的基礎設施來管理超出您預期的任何需求。但我想，什麼時候會達到這樣一個點：如果基礎程序量仍然強勁，也許這對您的一些客戶來說是一個驚喜，那麼您是否確實需要增加人員和能力？我的意思是，併購是其中的一部分嗎？或者，另一方面，如果供應鏈稍微惡化，或者其中一些質量問題變得更加普遍。我想這只是詢問如何處理這個問題的後續行動，以及如果你們確實需要增加容量的話，你們的計劃有多靈活？

Great. Great question, Craig. And Craig, thank you for picking up coverage, and welcome. We look forward to the opportunity to work with you. Addressing your question. So maybe I'll frame it with, last year, we added 15% more direct labor workers, workforce, associates, and we only grew sales about 6%. So that gives you an idea of the magnitude of the inefficiencies that were caused by the supply chain environment as well as the level of turnover and the training required. And so I mean, if I just kind of -- macro level, if you only grew sales 6%, you added 15% more people, that's 9% capacity with your workforce. And this year, we're projected to grow 7% to 9%. So you can see how -- you don't really need to add a lot more direct labor workforce in order to be able to get to 7% to 9%.

偉大的。好問題，克雷格。克雷格，感謝您接受報導，歡迎。我們期待有機會與您合作。解決你的問題。所以也許我會這樣說，去年，我們增加了 15% 的直接勞工、勞動力、員工，而我們的銷售額僅增長了約 6%。這樣您就可以了解供應鏈環境以及人員流動水平和所需培訓造成的效率低下的程度。所以我的意思是，如果我只是宏觀層面，如果你的銷售額只增長了 6%，你就增加了 15% 的員工，那就是你的勞動力產能的 9%。今年，我們預計增長 7% 至 9%。所以你可以看到，你實際上並不需要增加更多的直接勞動力來達到 7% 到 9%。

The other thing that we're planning on this year, and we've been very focused on is reducing overtime because we have worked a lot of overtime due to the supply chain challenges and the training of associates. And so I think we have the capability to flex instead of reducing overtime. We could maintain overtime and where possible, and where applicable, maybe even add overtime in order to meet a surge in demand if demand increases.

我們今年計劃的另一件事是減少加班，因為由於供應鏈挑戰和員工培訓，我們已經進行了大量加班。所以我認為我們有能力靈活調整而不是減少加班時間。我們可以維持加班，在可能的情況下，在適用的情況下，甚至可能增加加班時間，以便在需求增加時滿足需求的激增。

I also think we're becoming more proficient with our workforce because of the lower turnover and the increased stability and that training and proficiency is pretty impactful. I mean, it's very positive to capacity, not only just efficiencies, but capacity. I also think the supply chain environment, we're being very pragmatic. We're assuming the supply chain environment we're in is what persists for the foreseeable future. And quite frankly, until we can tangibly say, yes, we're getting better on-time delivery, full quantities and, quite frankly, in spec, so the quality that -- then allows us to fully use that material. I think there's opportunity there that will create more capacity because we're still dealing with supplier deliveries that are not on time and, quite frankly, having to realign schedule.

我還認為，由於人員流動率降低和穩定性提高，我們對員工隊伍的熟練程度也越來越高，而且培訓和熟練程度也相當有影響力。我的意思是，這對產能非常有利，不僅是效率，還有產能。我還認為在供應鏈環境方面，我們非常務實。我們假設我們所處的供應鏈環境在可預見的未來持續存在。坦率地說，直到我們可以明確地說，是的，我們在按時交貨、足量交貨方面取得了更好的成績，而且坦率地說，在規格方面，因此質量方面——然後使我們能夠充分利用該材料。我認為那裡有機會創造更多的產能，因為我們仍在處理供應商不按時交貨的問題，而且坦率地說，必須重新調整時間表。

So I think there's improvement potential there as supply chain improves and broader market indicates supply chain is improving. We have our own unique suppliers who serve us. And it's not the macro picture, it's the micro picture that does or doesn't make a difference.

因此，我認為隨著供應鏈的改善以及更廣泛的市場表明供應鏈正在改善，那裡存在改善的潛力。我們有自己獨特的供應商為我們服務。重要的不是宏觀情況，而是微觀情況。

The other thing I maybe would highlight is, in the first quarter, we -- our sales were about $15 million higher than what we had kind of guided to for the first quarter, and that was really, we were able to catch up on the sales from the second half of last year where we had supply chain challenges. And so that's a good indicator of some surge capacity that we were able to deliver on in the first quarter. So I think there's a lot of moving parts there, but maybe to summarize your answer, I feel like given the workforce we have now and the improved training and proficiency gives us some of that surge capacity.

我可能要強調的另一件事是，在第一季度，我們的銷售額比我們第一季度的指導目標高出約 1500 萬美元，這確實是，我們能夠趕上去年下半年的銷售情況我們遇到了供應鏈挑戰。因此，這是我們在第一季度能夠實現的一些激增產能的良好指標。所以我認為那裡有很多活動部件，但也許總結一下你的答案，我覺得考慮到我們現在擁有的勞動力以及改進的培訓和熟練程度給我們帶來了一些激增的能力。

We have assumed supply chain, I would maybe say just pragmatically, we're not counting on it to get better in a meaningful way. And if that does get better, that gives us additional capacity. So we will figure out how to meet our customers' needs in the same way that we have throughout the last couple of years with the labor and supply chain environments.

我們假設了供應鏈，我可能會務實地說，我們並不指望它以有意義的方式變得更好。如果情況確實變得更好，那就會給我們帶來額外的能力。因此，我們將找出如何滿足客戶需求的方法，就像過去幾年我們在勞動力和供應鏈環境方面所採取的方式一樣。

Got it. Very helpful. And then if I can ask, and I apologize if I missed it in the prepared remarks. Just the pricing environment for you guys, I don't know if you disclose how much price contributed to the sales growth in the quarter. But if you don't provide a specific number, maybe just talk about your ability to take some price, how durable you see that through '23 and then even in '24, '25 as we start looking at the out years?

知道了。很有幫助。如果我可以問的話，如果我在準備好的發言中遺漏了這一點，我深表歉意。只是你們的定價環境，我不知道你們是否透露價格對本季度銷售增長的貢獻有多大。但如果你沒有提供具體的數字，也許只是談談你接受一些價格的能力，你認為這種情況在 23 年甚至 24 年、25 年（當我們開始展望未來幾年時）有多持久？

Sure. So it's -- we have positive price this year. It's low, but it is positive. And maybe the importance of that is to contrast that we've historically been 1% to 2% price down. And historically, that as far back as we can see, that's been our typical pricing.

當然。所以，今年我們的價格是正值。雖然很低，但它是積極的。也許這很重要，因為我們歷史上一直降價 1% 到 2%。從歷史上看，據我們所知，這就是我們的典型定價。

Last year, 2022, we were about 1% price down, and that's because we were able to pass through some of the material and wage inflation that we incurred really starting in the middle of '21. So we began to pass some of that through in 2022. We've been successful at passing more of that through in 2023. And I think the reason you don't hear us highlighting the price increase as it impacts margins is because it's really designed in the way we negotiated it with our customers is to cover the cost increases. We aren't raising prices in this environment necessarily to expand margins. It's really to cover cost. And we think that's why our customers have been willing to work with us on that because they've been able to see the impact of those inflationary pressures. They're experiencing them.

去年，即 2022 年，我們的價格下降了約 1%，這是因為我們能夠渡過從 21 世紀中期開始真正發生的一些物質和工資通脹。因此，我們在 2022 年開始通過其中的一些措施。我們在 2023 年成功地通過了更多的措施。我認為您沒有聽到我們強調價格上漲對利潤率的影響的原因是因為它確實是經過設計的我們與客戶協商的方式是彌補成本增加。在這種環境下，我們提高價格不一定是為了擴大利潤。確實是為了彌補成本。我們認為這就是為什麼我們的客戶願意在這方面與我們合作，因為他們已經能夠看到這些通脹壓力的影響。他們正在經歷它們。

And then, quite frankly, we've got to go work on efficiencies that we can then share with our customers as part of both of us improving our operations. And so we think of the price, and we think this is the spirit of strategic partnership and why we have the long-term agreements we have is that we've been able to pass through some of those inflationary pressures. And so it is a bit of an increase. It's not meaningful when you look at either the 22% growth in the first quarter, and it's not really meaningful in the full 7% to 9% organic for the year.

然後，坦率地說，我們必須努力提高效率，然後我們可以與客戶分享這些效率，作為我們改善運營的一部分。因此，我們考慮價格，我們認為這就是戰略夥伴關係的精神，我們之所以達成長期協議，是因為我們已經能夠度過一些通脹壓力。所以這是一點點的增加。當你看看第一季度 22% 的增長時，這沒有什麼意義，而且全年 7% 到 9% 的有機增長也沒有什麼意義。

But we also think that, to get to your question about how durable is it, we believe we're now in an environment and that we have a structure with our customers that, going forward, we can be price neutral-ish, that any given year, we're going to be somewhere around flattish, maybe some years, it will round down in other years, it will round up. But we think that's a meaningful change in our model.

但我們也認為，為了回​​答你關於它的持久性的問題，我們相信我們現在所處的環境以及我們與客戶的結構，展望未來，我們可以保持價格中性，任何給定的年份，我們將處於平坦狀態，也許有些年份，它會向下舍入，在其他年份，它會向上舍入。但我們認為這對我們的模型來說是一個有意義的改變。

And as long as inflation and labor ultimately go back to kind of historic levels, we think that's an ideal place to be. And then we can focus on growth with our customers and enabling their success and sharing synergies that we get from working together to make changes to drive efficiencies. And so we're excited about the ability to be able to pass through those inflationary pressures in '23 and then looking forward being a neutral-ish pricing environment for us.

只要通貨膨脹和勞動力最終回到歷史水平，我們認為這就是一個理想的地方。然後，我們可以專注於與客戶一起成長，幫助他們取得成功，並分享我們通過共同努力進行變革以提高效率而獲得的協同效應。因此，我們對能夠在 23 年克服通脹壓力感到興奮，並期待我們的定價環境保持中性。

Your next question comes from the line of Phillip Dantoin with Piper Sandler.

您的下一個問題來自菲利普·丹托因 (Phillip Dantoin) 和派珀·桑德勒 (Piper Sandler) 的對話。

This is Phil on for Matt. He sends his apologies that he's currently in Europe and was worried about his connection here. But just a few from us. And I appreciate the commentary on the delayed sales recoup here, the $15 million in the quarter. That's fully behind you at this point. Is that correct? And then that $15 million, is that derived from any segment in particular? Or is that spread broadly across all segments?

這是菲爾替馬特發言。他對自己目前身在歐洲並擔心自己與這裡的聯繫表示歉意。但只有我們幾個。我很欣賞這裡對延遲銷售收回（本季度 1500 萬美元）的評論。在這一點上，這完全支持你。那是對的嗎？那麼這 1500 萬美元是來自特定的細分市場嗎？或者這種情況是否廣泛分佈於所有細分市場？

Yes, Phillip, welcome, and thank you as well, and Matt for picking up coverage. We look forward to working with you. And to answer your question, the $15 million does mostly capture. There's a few million left in a few spots to complete what was pushed out late last year. So it does almost entirely capture that.

是的，菲利普，歡迎，也謝謝你，還有馬特接受報導。我們期待著與您的合作。回答你的問題，1500 萬美元確實佔了大部分。一些地方還剩下幾百萬美元來完成去年年底推出的工作。所以它幾乎完全捕捉到了這一點。

And it was spread across both the cardiovascular and mostly neuromod segments that lands in the Cardiac & Neuromodulation segment. So I think it was probably -- I think it was about evenly balanced. It might have leaned a little more heavily in the cardiovascular side. But that's the sales -- or the answer to the question. And we're glad to get that behind us. There are still pockets where customers need and want more product, where we know they need to replenish inventory and there are very specific supplier constraints that we're working to resolve in order to be able to do that.

它分佈在心血管和主要是神經調節部分，其中包括心臟和神經調節部分。所以我認為這可能是——我認為這是均衡的。它可能更傾向於心血管方面。但這就是銷量——或者問題的答案。我們很高興能把這一切拋在腦後。在某些地方，客戶仍然需要並想要更多產品，我們知道他們需要補充庫存，並且我們正在努力解決非常具體的供應商限制，以便能夠做到這一點。

So for sure, versus our guidance, there's product that, last year, pushed out, that's been addressed, but there's still definitely pockets with certain customers where we know they need more inventory, and we're working to replenish that inventory. That's been factored into our guidance in the 7% to 9% organic growth because we fully expect to be able to fully replenish those customers' inventories this year.

因此，可以肯定的是，與我們的指導相比，去年推出的產品已經得到解決，但我們知道某些客戶仍然需要更多庫存，我們正在努力補充庫存。這已被納入我們 7% 至 9% 有機增長的指導中，因為我們完全期望今年能夠完全補充這些客戶的庫存。

No, that's helpful. And I'm just trying to parse out, I mean, you said that your underlying markets are strong. Is there any particular market even with the bolus of this backlog in cardio and neuromod, they both grew nicely. But is there any particular market that you'd call out as being stronger compared to the others? Or is it just broadly speaking, every market is doing well?

不，這很有幫助。我只是想解析一下，我的意思是，你說你的基礎市場很強勁。即使有氧運動和神經調節藥物有大量積壓，是否有任何特定的市場，它們都增長得很好。但您認為有哪個特定市場比其他市場更強大嗎？或者只是從廣義上講，每個市場都表現良好？

Well, without a doubt, every market, all of our product lines were up double digit, and we saw that in the underlying submarkets in many areas. But unquestionably electrophysiology strength is there in the underlying market. You saw that in almost all of the industry and certainly our customers. And we saw that flow through to us, which as we try to triangulate well, how much of this demand that our customers see, sometimes it's a little hard to tell because they may pull more from us, but that might be to replenish inventories and -- or it might be to meet the demand to try to keep their inventory levels up. And so they may or may not have anticipated that, and therefore, had the demand on us.

毫無疑問，每個市場、我們所有的產品線都實現了兩位數的增長，我們在許多領域的基礎子市場中都看到了這一點。但毫無疑問，電生理學的實力在基礎市場中是存在的。您在幾乎所有行業，當然還有我們的客戶中都看到了這一點。我們看到這種情況流向了我們，當我們試圖很好地進行三角測量時，我們的客戶看到了多少這種需求，有時很難說，因為他們可能會從我們這裡拿走更多，但這可能是為了補充庫存和——或者可能是為了滿足需求，試圖保持庫存水平。因此，他們可能預料到也可能沒有預料到這一點，因此對我們提出了要求。

We're definitely seeing neuromodulation growth and strength, but I'll characterize that. It's not just in spinal cord stim, it's across all segments. Less than -- the spinal cord stim is less than half of our neuromod sales today. The pipeline of emerging customers that we have, we have been able to diversify into end markets beyond spinal cord stim, and that's helped us in a meaningful way to have more opportunities, but not also be dependent upon on just pain management, whether it's epilepsy or sleep apnea or incontinence or Parkinson's, various therapies, we've been able to diversify. And so that gives us confidence in our ability for our emerging customers to continue to grow.

我們肯定會看到神經調節的增長和強度，但我會描述這一點。它不僅僅是脊髓刺激，而是遍及所有節段。不到——脊髓刺激劑還不到我們今天神經調節劑銷售額的一半。我們擁有的新興客戶渠道，我們已經能夠多元化進入脊髓刺激以外的終端市場，這以有意義的方式幫助我們獲得更多機會，但也不僅僅依賴於疼痛管理，無論是癲癇病或睡眠呼吸暫停或失禁或帕金森氏症，各種療法，我們已經能夠多樣化。因此，這讓我們對新興客戶持續增長的能力充滿信心。

We had shared on our last earnings call that we had about $50 million from that bucket of mostly neuro emerging customers, and we expect that to grow to $80 million to $100 million in 2 years in 2024. And that's across a wide range of therapies in (inaudible) you see that in our double-digit growth across all the end markets.

我們在上次財報電話會議上表示，我們從主要是神經新興客戶中獲得了約 5000 萬美元，我們預計到 2024 年，這一數字將在 2 年內增長到 8000 萬至 1 億美元。 （聽不清）您可以在我們所有終端市場的兩位數增長中看到這一點。

And we announced on our last call that we're making a significant investment in our -- one of our Irish facilities where we make guidewires. The demand for guidewires, which just points to the minimally invasive procedure growth in the industry, particularly some of the new therapies, tremendous demand, tremendous growth there. I think we may have shared on the last call that we're maxed out in that facility, we were last year, we are this year, and that's why we're making the investment to expand the capacity in a meaningful way.

我們在上次電話會議上宣布，我們正在對我們的愛爾蘭工廠之一進行重大投資，我們在那裡生產導絲。對導絲的需求，恰恰表明了該行業微創手術的增長，特別是一些新療法，巨大的需求，巨大的增長。我想我們可能在上次電話會議上表示，我們的設施已經達到了極限，去年是這樣，今年也是這樣，這就是為什麼我們要進行投資，以一種有意義的方式擴大產能。

Great. And just shifting gears here really quickly. I mean you've been targeting operating income about 2x revenue growth. Given you've maintained guidance for the year here, you're close, but not fully all the way there yet. What's kind of holding you back? And how did quarter 1 go in terms of your own internal expectations in terms of kind of getting to this 2x op income versus revenue growth down the road?

偉大的。在這裡快速換檔。我的意思是，你們一直將營業收入目標定為收入增長的兩倍左右。鑑於您一直保持今年的指導，您已經接近目標，但尚未完全實現目標。是什麼阻礙了你？就您自己的內部預期而言，第一季度的運營收入與未來收入增長的兩倍表現如何？

Great question. You're getting at 1 of our 3 financial objectives of our strategy, which is to grow profit twice as fast as sales. And the big impediment this year is both supply chain and continuing to get direct labor turnover back to levels we were previously when we were growing profit twice as fast as sales in 2018, '19, we achieved that financial objective. So we have 1/4 of our manufacturing facilities that their direct labor turnover is at or below pre-COVID levels. We need to get the rest of our facilities back to those levels. That will naturally bring greater proficiency with our associates, and therefore, efficiencies.

很好的問題。您正在實現我們戰略的 3 個財務目標之一，即利潤增長速度是銷售額的兩倍。今年最大的障礙既是供應鏈，又是繼續讓直接勞動力流動率恢復到之前的水平，當時我們的利潤增長速度是 2018 年銷售額的兩倍，19 年，我們實現了這一財務目標。因此，我們有 1/4 的製造工廠的直接勞動力流動率等於或低於新冠疫情前的水平。我們需要讓其他設施恢復到這些水平。這自然會提高我們與同事的熟練程度，從而提高效率。

And then on the supply chain, we do need suppliers to deliver on schedule, in full and in spec. And when the supply chain environment does normalize, I'll say, normalize as back to pre-COVID, we're confident we can deliver operating profit growth twice as fast as sales. And so it's really those external factors. And that's kind of the macro picture on 2023 and going forward how do we get back to that level.

然後在供應鏈上，我們確實需要供應商按時、完整、按規格交付。當供應鏈環境確實正常化時，我會說，恢復到新冠疫情之前的水平，我們有信心實現營業利潤增長速度是銷售額的兩倍。所以這實際上是那些外部因素。這就是 2023 年的宏觀圖景，以及未來我們如何回到那個水平。

Quite frankly, I think -- we gave a 7% to 9% organic growth guidance for 2023 in October of last year. So 7 months ago, we guided to 7% to 9% organic growth because we could see that. With the underlying strength in the marketplace, if that drives incremental volume, then that should help us, but that's to be determined. We'll have to see how those markets play out.

坦白地說，我認為——我們在去年 10 月給出了 2023 年 7% 至 9% 的有機增長指導。因此，7 個月前，我們指導有機增長 7% 至 9%，因為我們可以看到這一點。憑藉市場的潛在實力，如果這推動了銷量的增加，那麼這應該會對我們有所幫助，但這還有待確定。我們必須看看這些市場的表現如何。

But when you -- so that's for the full year. We're confident as direct labor continues to improve, supply chain, we'll get back to growing profit twice as fast as sales. On top of that, I would point to our strategic objective of growing profit twice as fast as sales was in an environment where we had 1% to 2% price down. And so it's -- it actually should be easier for us to get to the profit twice as fast as sales now that we don't have 1% to 2% price down, and we expect to be price neutral-ish going forward. So that's kind of the bigger picture, but maybe I'll speak to the first quarter specifically.

但是當你——所以這是全年的。我們有信心，隨著直接勞動力和供應鏈的不斷改善，我們的利潤增長速度將是銷售額的兩倍。最重要的是，我想指出我們的戰略目標是，在價格下降 1% 到 2% 的環境下，利潤增長速度是銷售額的兩倍。因此，既然我們沒有 1% 到 2% 的價格下降，我們實際上應該更容易以兩倍於銷售額的速度獲得利潤，並且我們預計未來價格將保持中性。這是更大的圖景，但也許我會具體談談第一季度。

When you think about the full year, our first quarter typically has the lowest amount of product development revenue in it. And we've shared how robust and strong our product development pipeline is and how we've shifted that from being 50-50, 50% in high-growth markets and 50% in lower growth or more mature markets, now it's 80% in faster-growing markets. And we've almost tripled the amount of development revenues or development sales that customers are paying us to do that work for. And so when you think about the timing of those revenues over the course of the year, it's much more heavily weighted to the fourth quarter and lower in the first quarter. And it's just the natural cycle of both the customer and us driving to meet milestones and finish programs at year-end. It's in their budgets, it's in our budgets, and they want to move the products forward. So we typically have a heavier fourth quarter and a lighter first quarter.

當您考慮全年時，我們第一季度的產品開發收入通常是最低的。我們分享了我們的產品開發渠道是多麼穩健和強大，以及我們如何將其從 50-50 轉變，即 50% 在高增長市場，50% 在低增長或更成熟市場，現在 80% 在高增長市場增長更快的市場。我們將客戶支付給我們的開發收入或開發銷售額幾乎增加了兩倍。因此，當你考慮一年中這些收入的時間安排時，你會發現第四季度的權重更大，第一季度的權重更低。這只是客戶和我們努力實現里程碑並在年底完成項目的自然循環。這在他們的預算中，也在我們的預算中，他們希望推動產品向前發展。因此，我們通常會有一個較重的第四季度和一個較輕的第一季度。

And why that's important is the cost to do this work, it's mostly R&D engineers and some material. So the cost is there, whether the revenue is being recognized or not. And so if you think about costs being level loaded across the year, but more of the sales in the fourth quarter than the first quarter, you get a naturally lower margin rate for the total company in the first quarter and naturally higher in the fourth quarter. So it's a bit of seasonality that I'd say it wasn't there 3 to 5 years ago, but 3 to 5 years ago, the amount of product development sales we had wasn't big enough to really be impactful to the company.

為什麼這很重要是完成這項工作的成本，主要是研發工程師和一些材料。因此，無論收入是否得到確認，成本都存在。因此，如果您考慮全年成本均衡，但第四季度的銷售額高於第一季度，那麼第一季度整個公司的利潤率自然會較低，第四季度的利潤率自然會較高。所以我想說這有點季節性，3到5年前是不存在的，但是3到5年前，我們的產品開發銷售量還不夠大，不足以真正對公司產生影響。

So this is really a new phenomenon for us that as we've gotten to such a strong level of product development sales, it does -- there is some, I dare say, seasonality, but it's more of the cycle of when programs reach milestones and get completed and allows us to then recognize the sales. So I would expect to see margin improve through the rest of the year. That's 1 of the factors. But as direct labor turnover continues to improve, and it's on that strong trajectory of improving. And then we'll see what happens with supply chain, but I would say we're being pretty pragmatic about supply chain, improving or meaning we're not counting on it to improve a lot. So we think that will help us with margins as the year progresses.

因此，這對我們來說確實是一個新現象，當我們的產品開發銷售達到如此強勁的水平時，它確實存在——我敢說，有一些季節性，但更多的是項目達到里程碑時的周期並完成並允許我們確認銷售。因此，我預計今年剩餘時間利潤率會有所改善。這是因素之一。但隨著直接勞動力流動率持續改善，並且正處於強勁的改善軌道上。然後我們將看看供應鏈會發生什麼，但我想說，我們對供應鏈非常務實，正在改進，或者意味著我們不指望它能有很大改進。因此，我們認為隨著時間的推移，這將有助於我們提高利潤率。

Hopefully, by sometime in '24 or '25, we're back to a pre-COVID level of turnover in supply chain, and we're back on to growing profit twice as fast as sales, and sales are higher, but there's now we believe we can do 6% to 8% organically, which is 200 basis points above the markets we serve, which is one of our other financial objectives.

希望到 24 或 25 年的某個時候，我們的供應鏈營業額能回到新冠疫情之前的水平，我們的利潤增長速度將恢復到銷售額的兩倍，銷售額也更高，但現在我們相信我們可以有機地實現 6% 到 8%，這比我們服務的市場高出 200 個基點，這是我們的其他財務目標之一。

(Operator Instructions) I am showing there are no further questions at this time. I'll turn the call over to Mr. Senn.

（操作員說明）我表明目前沒有其他問題。我會把電話轉給森先生。

Great. Thank you, everyone, for joining today's call. As always, you can access the replay of this call on our website as well as the presentation that we just covered. Thank you for your interest in Integer, and that concludes today's call.

偉大的。謝謝大家參加今天的電話會議。與往常一樣，您可以在我們的網站上觀看本次電話會議的重播以及我們剛剛介紹的演示文稿。感謝您對 Integer 的關注，今天的電話會議到此結束。

And this does conclude today's conference call. You may now disconnect.

今天的電話會議到此結束。您現在可以斷開連接。