Integer Holdings Corp (ITGR) 2024 Q2 法說會逐字稿

Hello, and welcome to the Q2 2024 Integer Holdings Corporation earnings call. (Operator Instructions) I would now like to turn the conference over to Andrew Senn, Senior Vice President Strategy, Business Development and Investor Relations. You may begin.

您好，歡迎參加 Integer Holdings Corporation 2024 年第二季財報電話會議。（操作員指示）我現在想將會議轉交給策略、業務開發和投資者關係高級副總裁 Andrew Senn。你可以開始了。

Good morning, everyone. Thank you for joining us, and welcome to Integer's second quarter 2024 earnings conference call. With me today are Joe Dziedzic, President and Chief Executive Officer; and Diron Smith, Executive Vice President and Chief Financial Officer.

大家早安。感謝您加入我們，歡迎參加 Integer 2024 年第二季財報電話會議。今天與我在一起的有總裁兼執行長 Joe Dziedzic；執行副總裁兼財務長 Diron Smith。

As a reminder, the results and the 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 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，請參閱今天簡報的附錄、今天的收益新聞稿以及趨勢表，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. On today's call, Joe will provide his opening comments and Diron will then review our adjusted financial results for the second quarter of 2024 and provide an update on our full year 2024 outlook. Joe will come back to provide his closing remarks, and then we'll open up the call for your questions.

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，以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 將發表開場評論，Diron 隨後將審查我們調整後的 2024 年第二季度財務業績，並提供 2024 年全年展望的最新信息。喬將回來發表結束語，然後我們將開始電話詢問您的問題。

With that, I will turn the call over to Joe.

這樣，我就把電話轉給喬。

Thank you, Andrew, and thank you to everyone for joining the call today. Since our last earnings call, Truist at Oppenheimer have initiated coverage, which brings the total number of sell-side analysts to [nine]. We appreciate the research coverage from all of our analysts as it gives more investors exposure to our business and the great work that our associates are doing for our customers and the patients that we serve.

謝謝你，安德魯，也謝謝大家今天加入電話會議。自從我們上次財報電話會議以來，奧本海默的 Truist 已開始報道，這使得賣方分析師的總數達到[九]。我們感謝所有分析師的研究報告，因為它讓更多投資者了解我們的業務以及我們的員工為我們的客戶和我們服務的患者所做的出色工作。

In the second quarter, we delivered another strong quarter of year-over-year results. Sales grew 9%, and our adjusted operating income grew 20% while expanding operating margins by 152 basis points compared to last year. In addition, our adjusted earnings per share grew 14% year-over-year.

在第二季度，我們再次實現了同比強勁的季度業績。與去年相比，銷售額成長了 9%，調整後的營業收入成長了 20%，同時營業利潤率提高了 152 個基點。此外，我們的調整後每股收益較去年同期成長 14%。

We are raising our full year profit outlook. Our manufacturing excellence initiatives are delivering operational improvements in direct labor turnover, direct material scrap production, lower overtime and direct labor efficiency. Combined with our strong first half OpEx leverage, we are confident in our ability to meet our increased full year profit outlook.

我們正在上調全年利潤預期。我們的卓越製造計劃正在改善直接勞動力流動、直接材料廢料生產、降低加班時間和直接勞動力效率等方面的營運改善。結合我們上半年強勁的營運支出槓桿，我們對實現全年利潤成長預期的能力充滿信心。

At the midpoint of our outlook, we expect 18% adjusted operating income growth on 10% sales growth. We are confident in our ability to deliver strong sales growth, given our high visibility to customer demand, including ramping programs in high-growth markets and additional guidewire capacity coming online in Ireland.

在我們的展望中點，我們預期調整後的營業收入將成長 18%，銷售成長 10%。鑑於我們對客戶需求的高度了解，包括在高成長市場的擴大計劃以及在愛爾蘭上線的額外導絲產能，我們對實現強勁銷售成長的能力充滿信心。

It is an exciting time at Integer given our strong pipeline of development programs and faster-growing end markets, expanding margins and continued execution of our tuck-in acquisition strategy. I'm grateful for our associates around the world that are delivering for our customers and making a difference for patients.

鑑於我們強大的開發計劃管道和更快成長的終端市場、不斷擴大的利潤以及持續執行我們的收購策略，這對 Integer 來說是一個令人興奮的時刻。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 Diron.

我現在將把電話轉給 Diron。

Thank you, Joe. Good morning, everyone, and thank you again for joining today's call. I'll first provide more details on our second quarter 2024 financial results and then provide an update on our 2024 outlook. We continued our 2024 momentum with strong second quarter financial performance. Sales of $436 million delivered 9% year-over-year growth on a reported basis and 5% on an organic basis, which excludes the impact of our recent in InNeuroCo and Pulse acquisitions, the strategic exit of the Portable Medical market and foreign currency fluctuations.

謝謝你，喬。大家早安，再次感謝您參加今天的電話會議。我將首先提供有關 2024 年第二季度財務業績的更多詳細信息，然後提供有關 2024 年展望的最新信息。我們憑藉強勁的第二季財務業績延續了 2024 年的勢頭。銷售額達 4.36 億美元，報告年增 9%，有機成長 5%，其中不包括我們最近收購 InNeuroCo 和 Pulse、策略性退出便攜式醫療市場以及外匯波動的影響。

We delivered $91 million of adjusted EBITDA up $15 million compared to the prior year or an increase of 19%. Adjusted operating income grew 20% versus last year, more than 2 times the rate of sales growth as we continue to make progress on our year-over-year margin expansion.

我們實現了 9,100 萬美元的調整後 EBITDA，比前一年增加了 1,500 萬美元，增幅為 19%。隨著我們繼續在同比利潤率擴張方面取得進展，調整後營業收入比去年增長了 20%，是銷售成長率的 2 倍以上。

Second quarter 2024 adjusted operating income as a percent of sales was 16.5%, which represents approximately 152 basis points of improvement versus a year ago. Adjusted net income for the second quarter of 2024 is $45 million, delivering $1.30 of adjusted earnings per share, up $0.16 or 14% from the second quarter of 2023.

2024 年第二季調整後營業收入佔銷售額的百分比為 16.5%，比一年前提高約 152 個基點。2024 年第二季調整後淨利為 4,500 萬美元，調整後每股收益為 1.30 美元，較 2023 年第二季成長 0.16 美元，即 14%。

C&V and CRM&N product line sales, which represent approximately 91% of our total sales, continued strong year-over-year growth on a trailing four quarter basis in the second quarter of 2024. For Cardio & Vascular product line, trailing four quarter sales increased 17% year-over-year. The growth is driven by double digit growth across all markets, new product ramps in electrophysiology and structural heart and in InNeuroCo and Pulse acquisitions.

C&V 和 CRM&N 產品線銷售額約占我們總銷售額的 91%，在 2024 年第二季的連續四個季度基礎上繼續保持強勁的同比增長。對於心血管產品線，過去四個季度的銷售額年增 17%。這一成長的推動因素包括所有市場的兩位數成長、電生理學和結構心臟領域新產品的增加以及 InNeuroCo 和 Pulse 的收購。

Cardiac Rhythm Management and Neuromodulations trailing four quarter sales increased 11% year-over-year, driven by high single digit CRM growth and double digit neuromodulation growth from emerging PMA customers. Further product line details are included in the appendix of the presentation, which can be found on our website at integer.net.

受 CRM 高個位數成長和新興 PMA 客戶的兩位數神經調節成長的推動，心律管理和神經調節四個季度的銷售額年增 11%。更多產品線詳細資訊包含在簡報的附錄中，可以在我們的網站 integer.net 上找到。

In the second quarter 2024, we delivered $7 million more adjusted net income than we did in the second quarter 2023. Strong sales and operational improvements, which include improved manufacturing efficiencies and operating cost leverage delivered $10 million versus second quarter 2023, further by slightly favorable foreign exchange.

2024 年第二季度，我們的調整後淨利比 2023 年第二季多了 700 萬美元。與 2023 年第二季相比，強勁的銷售和營運改善（包括提高的製造效率和營運成本槓桿）帶來了 1,000 萬美元的收入，此外匯率略有利好。

This was partially offset by higher interest expense and a slightly higher adjusted effective tax rate totaling approximately $3 million. On a tax-effected basis, adjusted total interest expense was approximately $3 million higher than last year. This is primarily due to a higher average debt balance during the period, driven by the previously discussed acquisitions of InNeuroCo and Pulse Technologies using our available revolver capacity.

這被較高的利息支出和略高的調整後有效稅率（總計約 300 萬美元）部分抵消。在受稅收影響的基礎上，調整後的總利息支出比去年高出約 300 萬美元。這主要是由於先前討論的利用我們現有的左輪手槍產能收購 InNeuroCo 和 Pulse Technologies 所推動的平均債務餘額較高。

Our adjusted effective tax rate was 20.7% for the second quarter of 2024 compared to 20.1% in the prior year. Our slightly higher adjusted effective tax rate compared to the prior year was primarily driven by the recent adoption of the OECD Pillar 2 framework by the EU member states establishing a minimum effective tax rate of 15%, as well as the residual effect of the Malaysian tax holiday expiration.

2024 年第二季調整後的有效稅率為 20.7%，而前一年為 20.1%。與前一年相比，我們調整後的有效稅率略高，主要是由於歐盟成員國最近採用經合組織第二支柱框架，規定最低有效稅率為 15%，以及馬來西亞稅收的剩餘影響假期到期。

In the second quarter 2024, we generated $47 million in cash flow from operations. Year-over-year, we generated approximately $10 million more cash from operational execution, primarily from higher sales and improved margins. This was offset by the second quarter 2023 accounts receivable factoring of approximately $20 million that did not repeat.

2024 年第二季度，我們的營運現金流為 4,700 萬美元。與去年同期相比，我們透過營運執行增加了約 1,000 萬美元的現金，主要來自銷售額的增加和利潤率的提高。這被 2023 年第二季約 2,000 萬美元的應收帳款保理所抵消，該保理未重複。

As previously mentioned, the factoring was executed to support our capacity investments in Ireland. And in total, second quarter 2024 cash flow from operations was $9 million lower than the prior year. In the second quarter 2024, we continued our organic investments, investing $31 million in capital expenditures. Our CapEx investment is on track to our expected full year spend of $90 million to $110 million.

如前所述，執行保理是為了支持我們在愛爾蘭的產能投資。總體而言，2024 年第二季的營運現金流比前一年減少了 900 萬美元。2024 年第二季度，我們繼續進行有機投資，投資了 3,100 萬美元的資本支出。我們的資本支出預計全年支出將達到 9,000 萬至 1.1 億美元。

In the first half 2024, we have invested approximately $60 million in CapEx and our CapEx profile for the year is expected to be lower in the second half as the higher expenditures for the Irish capacity investments are nearly complete.

2024 年上半年，我們在資本支出上投資了約 6,000 萬美元，由於愛爾蘭產能投資的較高支出即將完成，預計下半年我們的資本支出狀況將較低。

The resulting free cash flow in the second quarter was $16 million, which was primarily used to reduce net total debt, which improved by $15 million compared to the first quarter 2024. As a result, our net total debt leverage at the end of the second quarter was 3.2 times trailing four quarter adjusted EBITDA, which is within our strategic target range of 2.5 times to 3.5 times.

第二季產生的自由現金流為 1,600 萬美元，主要用於減少淨債務總額，與 2024 年第一季相比減少了 1,500 萬美元。因此，第二季末我們的淨總負債槓桿率為過去四個季度調整後 EBITDA 的 3.2 倍，這在我們 2.5 倍至 3.5 倍的策略目標範圍內。

As Joe mentioned earlier, we are reiterating our 2024 sales outlook and raising our 2024 profit outlook. With strong first half margin performance from execution on our manufacturing initiatives, we have increased confidence in raising the adjusted operating income range by $3 million.

正如 Joe 之前提到的，我們重申了 2024 年的銷售前景，並上調了 2024 年的利潤前景。由於上半年執行製造計畫的利潤率表現強勁，我們更有信心將調整後的營業收入範圍提高 300 萬美元。

Starting with sales, we continue to expect to deliver sales in the range of $1,735 million to $1,770 million, an increase of 9% to 11% versus last year, with organic growth of 6% to 8%, which is 200 basis points above our underlying market growth rate estimate of 4% to 6%.

從銷售額開始，我們繼續預期銷售額將在 17.35 億美元至 17.70 億美元之間，比去年增長 9% 至 11%，有機增長 6% 至 8%，比我們的預期高 200 個基點基礎市場增長率估計為4%至6%。

In addition to our organic growth, we expect the InNeuroCo and Pulse acquisitions partially offset by the Portable Medical market exit to contribute 3% inorganic growth. We are raising our outlook on adjusted EBITDA by $2 million, which now reflects 15% to 22% growth year-over-year with a range of $357 million to $377 million, up from our previous guidance of 15% to 21% growth.

除了我們的有機成長之外，我們預計 InNeuroCo 和 Pulse 收購將被便攜式醫療市場退出部分抵消，從而貢獻 3% 的無機成長。我們將調整後 EBITDA 的預期上調了 200 萬美元，目前反映了 15% 至 22% 的同比增長，範圍為 3.57 億至 3.77 億美元，高於我們之前 15% 至 21% 增長的指導。

We are raising our adjusted operating income outlook by $3 million and expect 2024 adjusted operating income to be between $275 million and $293 million, reflecting year-over-year growth of 14% to 21%. At $284 million, which at the midpoint adjusted operating income as a percent of sales is expected to grow 108 basis points compared to the full year 2023.

我們將調整後營業收入預期上調 300 萬美元，預計 2024 年調整後營業收入將在 2.75 億美元至 2.93 億美元之間，年增 14% 至 21%。調整後營業收入佔銷售額的百分比預計將達到 2.84 億美元，較 2023 年全年增長 108 個基點。

Adjusted net income is expected to be between $174 million and $189 million, reflecting a year-over-year growth of 11% to 20%, up from our previous guidance of 8% to 18%. This delivers an expected adjusted EPS outlook between $5.07 and $5.49, which is growth of 9% to 18% year-over-year. Our adjusted EPS outlook assumes adjusted weighted average shares outstanding of 34.4 million shares, taking into account an estimated dilutive effect of the convertible notes.

調整後淨利潤預計在 1.74 億美元至 1.89 億美元之間，年增 11% 至 20%，高於我們先前 8% 至 18% 的指引。這使得調整後每股收益預期在 5.07 美元至 5.49 美元之間，年增 9% 至 18%。我們調整後每股盈餘展望假設調整後加權平均已發行股數為 3,440 萬股，並考慮可轉換票據的估計稀釋效應。

This dilution is offset by an improvement in adjusted effective tax rate, which is projected to be between 18% and 20%, down from our initial outlook of 19% to 21%. We expect sales in the second half of 2024 to be higher than the first half of 2024 from new product ramps, increased guidewire capacity as a result of our Ireland expansion and emerging PMA customer growth. We expect third quarter sales to be slightly higher than the second quarter with a further increase in the fourth quarter of 2024.

這種稀釋被調整後有效稅率的提高所抵消，預計該稅率將在 18% 至 20% 之間，低於我們最初預期的 19% 至 21%。我們預計，由於新產品的增加、愛爾蘭擴張導致的導絲產能增加以及新興 PMA 客戶的成長，2024 年下半年的銷售額將高於 2024 年上半年。我們預計第三季銷售額將略高於第二季度，並在 2024 年第四季進一步成長。

Moving to our 2024 cash outlook. We expect cash flow from operations between $185 million to $205 million, which represents an 8% year-over-year increase at midpoint of outlook.

轉向我們的 2024 年現金展望。我們預計營運現金流在 1.85 億美元至 2.05 億美元之間，展望中位數年增 8%。

Our outlook for capital expenditures remains at $90 million to $110 million as we continue to invest in organic capabilities and capacity. As a result, we expect to generate free cash flow between $85 million and $105 million. We expect our 2024 year end net total debt to be between $1,010 million and $1,030 million, which is up $60 million to $80 million year-over-year.

隨著我們繼續投資於有機能力和產能，我們的資本支出前景仍為 9,000 萬至 1.1 億美元。因此，我們預計將產生 8,500 萬至 1.05 億美元的自由現金流。我們預計 2024 年底淨債務總額將在 10.1 億美元至 10.3 億美元之間，年增 6,000 萬美元至 8,000 萬美元。

We expect to end the year with our leverage ratio within our target range of 2.5 times and 3.5 times trailing four quarter adjusted EBITDA.

我們預計到今年年底，我們的槓桿率將保持在過去四個季度調整後 EBITDA 的 2.5 倍和 3.5 倍的目標範圍內。

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

說完，我會把電話轉回喬。謝謝。

Thanks, Diron. We believe we are delivering a very strong 2024 outlook after a strong 2023. Over these two years combined, we expect to grow sales 27% and grow adjusted operating income 48% at the midpoint of our outlook. We are successfully executing our growth strategy, both organically and inorganically to meet our strategic financial objectives for sales growth, margin expansion and debt leverage.

謝謝，迪隆。我們相信，在經歷了強勁的 2023 年後，我們將在 2024 年實現非常強勁的前景。在這兩年中，我們預期銷售額將成長 27%，調整後營業收入將成長 48%（以我們的預期中位數計算）。我們正在成功地執行我們的有機和無機成長策略，以實現我們的銷售成長、利潤擴張和債務槓桿的策略財務目標。

We are confident this sustained level of performance will produce a premium valuation for our shareholders.

我們相信，這種持續的業績水準將為我們的股東帶來溢價估值。

We will now turn the call over to our moderator for the Q&A portion of the call.

現在，我們將把電話轉交給主持人進行電話問答部分。

(Operator Instructions)

（操作員說明）

Brett Fishbin, KeyBanc Capital Markets.

Brett Fishbin，KeyBanc 資本市場。

Hey, guys. Thank you so much for taking the questions. I just wanted to start off on one of the moving pieces here in Cardio and Vascular segment. We can definitely appreciate that. There were, again, very challenging comparisons, but just given the sequential decline in organic growth in that segment, was curious if you could provide a little bit more detail around any moving pieces impacting the quarter. And then just looking ahead if you think investors should expect some type of recovery there into 2H.

嘿，夥計們。非常感謝您提出問題。我只是想從心臟和血管部分的一個移動部分開始。我們絕對可以欣賞這一點。再次進行非常具有挑戰性的比較，但考慮到該細分市場有機成長的連續下降，我很好奇您是否可以提供有關影響本季度的任何變動因素的更多細節。然後，如果您認為投資者應該預期下半年會出現某種類型的復甦，那麼就展望未來。

Good morning, Brett. Thanks for the question. So I'll start with, if you look at the Cardio and Vascular product line sales on a rolling four quarter basis, trailing four quarter basis, where Cardio and Vascular is up 17% and reported in the quarter was up 11%. You noted the organic growth of 4%. I'll call out the first quarter for Cardio and Vascular organic growth was 9%. And for the full year, we're expecting high-single-digit organic growth for C&V.

早安，布雷特。謝謝你的提問。首先，如果你看看心臟和血管產品線連續四個季度的銷售情況，追蹤四個季度的基礎，其中心臟和血管產品增加了 17%，本季報告增加了 11%。您注意到 4% 的有機成長。我會指出，第一季心血管和血管業務的有機成長率為 9%。我們預計 C&V 全年將實現高個位數有機成長。

So when you look at the pieces, we think about the business on a rolling four quarter basis. I wish life were linear and I wish our customers manufacturing plans were perfectly linear, but they're not. And so we think the rolling four quarter basis is the best way to look at it. And if you look at our past four quarters, our electrophysiology business, although we don't report the specific number, it's growing at 1.5 times the market growth rate.

因此，當您查看各個部分時，我們會以滾動的四個季度為基礎來考慮業務。我希望生活是線性的，我希望我們的客戶的製造計劃是完全線性的，但事實並非如此。因此，我們認為滾動四個季度的基礎是看待這個問題的最佳方式。如果你看看我們過去四個季度的電生理業務，雖然我們沒有報告具體數字，但它的成長速度是市場成長率的 1.5 倍。

If you look at our structural heart sales, those are also growing very strongly, almost twice the market growth rate, recognizing that structural heart is a slightly lower piece of our overall business, and I think we've also been clear that. We're under-indexed at the TAVR and we're really more focused and our growth is in mitral and tricuspid, and our guideline business there has remained very strong.

如果你看看我們的結構心臟銷售，你會發現這些銷售也增長非常強勁，幾乎是市場增長率的兩倍，認識到結構心臟在我們整體業務中的地位略低，我認為我們也很清楚這一點。我們在 TAVR 上的指數較低，我們確實更專注，我們的成長在二尖瓣和三尖瓣，我們在那裡的指南業務仍然非常強勁。

So when we look at Cardio and Vascular on a rolling four quarter basis, historically, we continue to see very strong growth and we look at for the full year, we expect to see a high-single-digit organic growth, and on a reported basis we expect that to be in the low-double-digit, call it, low-teens to mid-teams, which is the guidance we provide on the product line slides for Cardio and Vascular at slide 27.

因此，當我們以滾動的四個季度為基礎來觀察心血管和血管業務時，從歷史上看，我們繼續看到非常強勁的增長，並且我們展望全年，我們預計將看到高個位數的有機成長，並且根據報告在此基礎上，我們預計該數字將處於低位兩位數，稱之為低位青少年到中位團隊，這是我們在幻燈片27 的心血管和血管產品線幻燈片上提供的指導。

All right. Thank you so much for that color. Quick follow-up. On the positive side, we're really impressed by some of the operating margin progression this quarter and guidance for the full year now implies op income growth at a multiple closer to 1.8x compared to 1.7x exiting last quarter. But just looking at the range, it's still fairly wide. So just at this point in the year, I was curious what you think of as the biggest swing factor striving multiple margin expansion to the low-end versus the high-end of the range. Thank you very much for taking the questions.

好的。非常感謝你的那種顏色。快速跟進。從積極的方面來看，本季的一些營業利潤率進展給我們留下了深刻的印象，而全年的指導現在意味著營業收入增長接近 1.8 倍，而上季度為 1.7 倍。但僅看範圍，還是相當寬的。因此，就在今年的這個時候，我很好奇您認為力求將利潤率擴大到低端與高端的最大波動因素是什麼。非常感謝您接受提問。

Sure. Well, I'll start with, we still have a very strong order book or backlog, it's still close to $900 million that gives us tremendous visibility. We look at our first half sales, we guided 9% to 11% for the year. We're at 9.3% growth in the first half. We're doing exactly what we said we would do from a sales growth rate perspective.

當然。好吧，我首先要說的是，我們仍然擁有非常強勁的訂單或積壓訂單，仍然接近 9 億美元，這為我們提供了巨大的知名度。我們來看看上半年的銷售額，我們預計全年銷售額將成長 9% 至 11%。上半年我們的成長率為 9.3%。從銷售成長率的角度來看，我們正在做我們所說的事情。

Margins were a little better in the second quarter, so we've updated the full year outlook to be slightly higher. We didn't update the range, we were halfway through the year, strong visibility to the top-line. We have confidence in our ability to continue to expand margins. So, we felt like updating the profit guidance was the right thing to do at this point.

第二季的利潤率稍好一些，因此我們將全年展望更新為略高。我們沒有更新產品系列，當時已經過一半了，營收的可見度很高。我們對持續擴大利潤率的能力充滿信心。因此，我們認為此時更新利潤指引是正確的做法。

Variability, when we think about the things that have caused that in the past. It's been supply chain disruptions. We feel like we're beyond that. We have a very stable supply chain environment at the moment, which is great. Our directly return over continues to improve. And our focus on our manufacturing excellence initiatives and our operational improvements continue to gain traction, which is what gave us the confidence to increase the profit outlook.

當我們思考過去導致這種情況的事情時，就會發現改變。這是供應鏈中斷。我們感覺我們已經超越了這個範圍。目前我們有一個非常穩定的供應鏈環境，這很好。我們的直接回報持續改善。我們對卓越製造計劃和營運改進的關注繼續獲得關注，這讓我們有信心提高利潤前景。

Craig Bijou, Bank of America.

克雷格‧比茹，美國銀行。

Good morning, guys. Thanks for taking the questions. I wanted to ask maybe drill down a little bit deeper on the Cardio and Vascular segment. It came in below street expectations, but I wanted to know if it was below your expectations and if it was kind of what areas were below? And then when you talk about the acceleration that you're expecting in the second half of business to get to that high-single-digit growth number? Maybe just talk about your visibility into your second half revenue for that segment specifically?

早安，夥計們。感謝您提出問題。我想問是否可以更深入地了解心臟和血管領域。它低於街道預期，但我想知道它是否低於您的預期，以及哪些區域低於預期？然後，當您談到您預計下半年業務將加速達到高個位數成長數字時？也許只是具體談談您對該細分市場下半年收入的了解？

Sure. I'll start with Cardio and Vascular, and for that matter Cardiac Rhythm Management, the rest of the business was in line with our expectations in the first quarter, second quarter and our visibility given the order book we have to the second half gives us great confidence and our ability to deliver on our guidance.

當然。我將從心臟和血管開始，就心律管理而言，其餘業務符合我們第一季、第二季的預期，考慮到下半年我們擁有的訂單，我們的能見度也符合我們的預期。的信心和能力來實現我們的指導。

So I appreciate there might have been some exuberance and excitement around a particular segment, electrophysiology within Cardio and Vascular after first quarter results, and in the dialogue around some of the emerging products there. But like I said, we look at a rolling four quarter basis, we look at what customers demand is, I wish it were perfectly linear and customers ran their manufacturing plants in a linear fashion, they don't.

因此，我很欣賞第一季業績公佈後，心臟和血管領域的電生理學以及圍繞一些新興產品的對話可能會引起一些特定領域的熱情和興奮。但就像我說的，我們以滾動的四個季度為基礎，我們看看客戶的需求是什麼，我希望它是完全線性的，客戶以線性方式運營他們的製造工廠，但他們沒有。

Recognizing most of what we build, we shift to our customers manufacturing sites, so it's dependent upon what they're building that determines our sales in the short-term. Recognizing we're mostly sole source, so most of what we do, we're going to get whatever the market demand is over time, which is why we think the rolling four quarter view is the most representative.

在認識到我們生產的大部分產品後，我們將其轉移到客戶的生產基地，因此，我們的短期銷售取決於他們正在生產的產品。認識到我們基本上是唯一的來源，所以我們所做的大部分事情，隨著時間的推移，我們將得到市場需求的任何東西，這就是為什麼我們認為滾動的第四季度視圖最具代表性。

So we were not surprised by the second quarter geography of the sales. We're very much in line with the year. Again, I'll point you to slide 26 in our presentation, which lays out Medical sales and Non-Medical sales. So when you look at organic growth rate, our Medical sales are up 7% organically for the first half. On an actual basis that's very much in line with our full year guidance and full year expectation for organic growth in Medical.

因此，我們對第二季的銷售情況並不感到驚訝。我們與今年非常吻合。我將再次向您指出我們簡報中的投影片 26，其中列出了醫療銷售和非醫療銷售。因此，當你觀察有機成長率時，我們上半年的醫療銷售額有機成長了 7%。從實際情況來看，這非常符合我們對醫療業務有機成長的全年指導和全年預期。

C&V and CRM&N are very much in line with our expectations. So as we look at second half, we've talked a lot about the investments we made in our New Ross, Ireland facility. We now have possession of that expansion, so we're now building more guidewires, because we have more capacity. We expect that to fuel additional growth in the second half of the year.

C&V 和 CRM&N 非常符合我們的預期。因此，當我們展望下半年時，我們談論了很多關於我們在愛爾蘭新羅斯工廠的投資。我們現在擁有了這個擴展，所以我們現在正在建造更多的導絲，因為我們有更多的能力。我們預計這將推動下半年的進一步成長。

We have a number of electrophysiology and structural heart programs that are in production and are ramping. I'll contrast that with something with the scenario where you might expect something to start to go into production. These are programs and products that are already in production, and now the volume is ramping based upon customer demand and the ramp plans.

我們有許多電生理學和結構心臟計畫正在生產中並正在加速。我將把它與您可能期望某些東西開始投入生產的場景進行對比。這些項目和產品已經投入生產，現在產量正在根據客戶需求和產能計畫而增加。

So when we look at the second half of the year, we're confident in our ability to step up the growth in the third quarter, so our guidance is sales slightly higher in the third quarter compared to second, with continued nominal increase from third to fourth quarter and very much within the range of the 9% to 11% growth for the full year.

因此，當我們展望下半年時，我們對第三季度加快成長的能力充滿信心，因此我們的指引是第三季的銷售額比第二季略高，名義上比第三季繼續成長到第四季度，全年成長率基本在9% 到11% 的範圍內。

That would put us right in the middle of our 6% to 8% organic growth for the year. So second quarter is as expected for us on the top-line, a little better on the bottom-line, which is why we increase the operating profit guidance.

這將使我們今年的有機成長達到 6% 至 8%。因此，第二季的營收符合我們的預期，淨利稍好一些，這就是我們提高營業利潤指引的原因。

Got it. Thanks for that, Joe, a very thorough answer. And I know we've talked a lot about PFA and you guys have talked about it as a tailwind. So I wanted to ask a specific question here. So a number of the players in that space, they're talking about in-sourcing manufacturing. And I know that that doesn't necessarily mean that you're not going to be making product for those players.

知道了。謝謝你，喬，一個非常徹底的答案。我知道我們已經談論了很多關於 PFA 的話題，你們也將其視為一種順風車。所以我想在這裡問一個具體的問題。因此，該領域的許多參與者都在談論內包製造。我知道這並不一定意味著你不會為這些玩家製作產品。

But I guess I wanted to gauge your level of concern or visibility as you as these companies are talking about in-sourcing their PFA manufacturing? What's the potential that disrupts the tailwind that you guys have talked about from PFA moving forward?

但我想我想了解一下您對這些公司談論內包 PFA 製造的關注程度或可見度？你們所談論的 PFA 前進的順風車有什麼潛力會被破壞？

So I'll start with we've shared over time, the cycle times in our industry, we've shared how long the development processes are in with the devices that we support our customers on. And so when we're talking about sales in the near term in the next year or two or three.

因此，我將從我們分享的行業週期時間開始，我們分享了我們支援客戶的設備的開發過程需要多長時間。因此，當我們談論未來一兩年或三年的短期銷售時。

It's because those programs have been in development for that long and they're in they're actually in manufacturing and or ramping in manufacturing. And so the conversation here is we have very long lead times and visibility to what we're going to manufacture for our customers on the most important products that they make.

這是因為這些項目已經開發了很長時間，而且它們實際上已經投入生產或正在加速生產。因此，這裡的對話是，我們有很長的交貨時間，並且清楚我們將為客戶生產他們生產的最重要的產品。

And I'll point to we've continued to grow our product development pipeline. We continue to have very strong visibility to that pipeline and the timelines on it. And then the order book gives us incredible visibility to what our customers demand is because especially with product programs, products that are introducing into the marketplace and ramping up customers give us very strong visibility to that because they're looking for us to support their ramp plans.

我要指出的是，我們不斷擴大我們的產品開發管道。我們仍然對該管道及其時間表有很強的了解。然後，訂單簿使我們能夠非常清楚地了解客戶的需求，因為特別是在產品計劃方面，正在引入市場並增加客戶的產品使我們能夠非常清楚地了解這一點，因為他們正在尋找我們來支持他們的增長計劃。

So we have very strong visibility to new product introduction. And so we I'll close with multiyear visibility on product development programs and new products. And so we know and understand what components of these devices, our customers are in-sourcing versus outsourcing, and we factor that into our guidance.

所以我們對新產品的推出有很強的可見性。因此，我將以產品開發計劃和新產品的多年可見性作為結束語。因此，我們知道並了解我們的客戶是內購還是外包的這些設備的哪些組件，並將其納入我們的指導中。

Matthew O'Brien, Piper Sandler.

馬修·奧布萊恩，派珀·桑德勒。

Good morning. Thanks for taking the questions. And Joe -- sorry to push you a little bit on the PFAS side, but do you have direct exposure to the growth of that category as you think about it over the next several years, it should be dramatic?

早安.感謝您提出問題。喬，很抱歉讓您稍微關註一下 PFAS 方面，但是當您考慮未來幾年該類別的增長時，您是否直接接觸到該類別的增長，它應該是戲劇性的？

I don't know that I would characterize dramatic because I'm reflecting on total Integer and our commentary that no one part of our business or one program is going to materially meaningfully drive the company. I will say yes, PFA we have strong visibility to the pipeline, multi-generation product development plans and we know which ones were on and which ones we're working to get on.

我不知道我會描述戲劇性，因為我正在反思 Total Integer 和我們的評論，即我們業務的任何一部分或一個項目都不會對公司產生實質性的、有意義的推動。我會說是的，PFA 我們對管道、多代產品開發計劃有很強的可視性，我們知道哪些正在實施，哪些正在努力實施。

So we do have very strong visibility and we absolutely expect the PFA as a therapy to be a tailwind. And I'll come back to what I think we've talked about a handful of times is not only the ablation, the therapy itself, but it's also the access and the diagnostics and the guiding sheaths, the transseptal crossing needles. It's the full procedure that we're able to participate in in the industry.

因此，我們確實擁有非常強的知名度，我們絕對希望 PFA 作為一種療法能夠成為一種順風車。我會回到我認為我們已經討論過幾次的不僅是消融、治療本身，而且還包括通路、診斷和引導鞘、房間隔交叉針。這是我們能夠參與該行業的完整程序。

And so as electrophysiology procedures grow, we're able to participate in all elements of that and PFA, if it accelerates, the overall number of procedures will benefit from that. And generally speaking with PFA, we have a higher content on those devices and some of the other ones. And so we benefit from that. So I would absolutely expect it to be an important and meaningful part of Integer's continued organic growth and being able to grow above the markets that we serve on an organic basis.

因此，隨著電生理學程序的發展，我們能夠參與其中的所有要素和 PFA，如果它加速，程序的總數將從中受益。一般來說，對於 PFA，我們在這些設備和其他一些設備上擁有更高的內容。所以我們從中受益。因此，我絕對希望它成為 Integer 持續有機成長的重要且有意義的一部分，並且能夠超越我們有機服務的市場。

Got it. Very helpful. Appreciate that. And then on Cardio & Vascular, just in aggregate, you know, the back half ramp, the comps are tougher in the back half of this year. And I know you said this visibility into the back half of the stores that you've got.

知道了。非常有幫助。很欣賞這一點。然後在心血管和血管方面，總的來說，你知道，後半段的坡道，今年後半段的比賽更加艱難。我知道你說過對你擁有的商店後半部分的可見性。

Can you talk a little bit about I think what's tripping of everybody today is Q2 is a little softer on a two year stack basis than it did pop back up in the back half? So I don't know if it's Ireland or other things you could point to specifically they give people comfort that, hey, they're getting to the to the back half performance is attainable and versus what I think are a little bit of skepticism just based on the Q2 two-year stack performance?

你能談談我認為今天每個人都感到困惑的是，在兩年的基礎上，第二季比後半段的反彈要軟一些嗎？所以我不知道是愛爾蘭還是其他你可以具體指出的事情，他們給人們帶來安慰，嘿，他們進入後半場的表現是可以實現的，而我認為有一點懷疑只是基於第二季度的兩年堆疊效能？

Well, I mean, let me start with, we said we'd be high-single digit growth for the first half and were 9.3% for the first half reported basis. So how you break that down between organic inorganic, we've got very strong visibility to customer demand, we have almost a $900 million order book. And so when we look at the business, I think we've been reasonably good at predicting the level of sales.

嗯，我的意思是，首先，我們說過上半年將達到高個位數成長，上半年報告基礎上的成長率為 9.3%。那麼如何區分有機和無機，我們對客戶需求有非常強的了解，我們有近 9 億美元的訂單。因此，當我們審視業務時，我認為我們相當擅長預測銷售水平。

And we feel that we know we understand the pieces of those sales because we have specific orders from customers. We know the reasons that second half steps up a little bit. We are we've been we tried to be clear that we expect third quarter sales to be a little higher nominally than second quarter than we expect Q4 to be even higher on a meaningful part of that is the Irish facility that is now online in our possession and we're building more guidewires.

我們覺得我們知道我們了解這些銷售的各個部分，因為我們有客戶的特定訂單。我們知道下半場有進步的原因。我們一直試圖明確表示，我們預計第三季度的名義銷售額將略高於第二季度，而我們預計第四季度的銷售額甚至更高，其中一個有意義的部分是我們的愛爾蘭工廠現已上線。

We've talked for the last 2.5 years, the strong demand at our guidewire business, and so that's a part of that. But we also have programs in electrophysiology, structural heart, in particular also in our emerging PMA customers mostly neuromodulation.

我們在過去 2.5 年裡一直在談論我們導絲業務的強勁需求，這就是其中的一部分。但我們也有電生理學、結構心臟方面的項目，特別是在我們新興的 PMA 客戶中，主要是神經調節。

There are programs that are in production and ramping, so it's not going to go into production and these programs are in production and they're ramping and a step up based on customer demand in the second half. And that's what gives us confidence in our ability to hit the second half sales numbers as well as the profitability, which we did increase this quarter.

有些項目正在生產中並且正在量產，因此不會投入生產，而這些項目正在生產中，並且會根據下半年的客戶需求進行量產和升級。這讓我們對實現下半年銷售數字和獲利能力充滿信心，本季我們的獲利能力確實有所提高。

Got it. Thanks so much.

知道了。非常感謝。

Richard Newitter, Truist.

理查德·紐特，真理主義者。

Hi. Thanks for taking the questions. Maybe just to start a little higher level. Has anything changed at your OEM customers with respect to their end market demand curves or what their kind of intermediate to longer term ordering patterns look like any downward revisions or upward from their outlook that kind of flowed down to you. Would love to hear any color there and then I have a follow-up.

你好。感謝您提出問題。也許只是為了開始更高的水平。您的 OEM 客戶的終端市場需求曲線或他們的中長期訂購模式是否發生了任何變化，例如他們的前景是否有任何向下修正或向上修正，這些都流向了您。我很想聽聽那裡有什麼顏色，然後我會有後續行動。

We have not seen any material meaningful change in customer expectation. When you look out, I'll frame it into '25 and beyond, given your question about longer term, I mean, since sitting here with almost $900 million of order book, we were expecting that order book to start to come down because there are some components or some elements of that that higher order book that are connected to the exit of our Portable Medical business due to the strong demand in guidewires that we ask customers to place orders much further in advance given the capacity coming on.

我們沒有看到客戶期望有任何實質的、有意義的變化。當你留意時，我將把它設定為 25 年及以後，考慮到你對長期的問題，我的意思是，因為坐在這裡有近 9 億美元的訂單，我們預計訂單會開始下降，因為由於對導絲的強勁需求，我們要求客戶在產能增加的情況下提前下訂單，這是與我們便攜式醫療業務退出相關的更高訂單簿中的一些組件或元素。

We still expect the order book to come down. I would have expected the order book to come down a little sooner than it has. And I think that points to the continued strength in the market, continued high expectations of our customers for growth. They continue to place orders out further into the future. And it gives us tremendous visibility.

我們仍然預計訂單量會下降。我原本預計訂單會比實際情況早一點下降。我認為這表明市場持續強勁，客戶對成長的持續高期望。他們繼續在未來繼續下訂單。它為我們提供了巨大的可見性。

So I think our customers remain very, very, optimistic about their most exciting programs that they're bringing to the marketplace and the overall market growth rates of continue to show optimism. And I look to our order book and I looked at the order patterns very much in line with what we expected entering the year and they continue. And if anything, the order book might be a little a little higher than what I would have expected at this point in the year, given some of the things that we knew were going to come down in the order book.

因此，我認為我們的客戶對他們向市場推出的最令人興奮的項目仍然非常非常樂觀，並且整體市場成長率繼續表現出樂觀。我查看了我們的訂單簿，訂單模式與我們進入今年的預期非常一致，而且它們仍在繼續。如果有什麼不同的話，那就是訂單簿可能會比我今年此時的預期稍高一點，因為我們知道訂單簿中的一些內容將會下降。

Okay. Thanks for that. And then just making sure it's sounds like it everything's trending the way you expected at least internally. And that's the reason you're reiterating your full year organic outlook and little maybe a little more second half weighted or acceleration weighted relative to the street. So I'm just curious within that second half kind of outlook just reach that $448 million roughly for 3Q on revenue and about $458 million on 4Q. I guess is that the right pacing of cadence just to make sure where a little more appropriately calibrated with your internal expectations?

好的。謝謝你。然後確保一切聽起來都像你預期的那樣，至少在內部是如此。這就是您重申全年有機前景的原因，並且相對於街道而言，下半年加權或加速加權可能會稍微多一點。所以我只是好奇下半年的前景如何，第三季的營收大約達到 4.48 億美元，第四季的營收大約達到 4.58 億美元。我想這是否是正確的節奏，只是為了確保在哪裡更適合您的內在期望？

So our view is third quarter sales. Nominally is a little bit higher than second quarter, and then fourth quarter is higher than third quarter. So we see that kind of continued trajectory. If you look at if you look at last year 2023, that there was a step-up between second and third quarter of $5 million of sales. And then between third and fourth quarter, I'm talking 2023 and $8 million step-up.

所以我們的觀點是第三季的銷售額。名義上比第二季高一點，然後第四季比第三季高。所以我們看到了這種持續的軌跡。如果你看看去年的 2023 年，你會發現第二季和第三季的銷售額增加了 500 萬美元。然後在第三季和第四季之間，我說的是 2023 年和 800 萬美元的升級。

So it continued to grow as the year progressed, and that's what we would expect to happen in 2024 as well. As to your to your comment about organic growth. I guess I would ask I would ask folks to kind of stare at slide 26 in our in our presentation, which shows medical nonmedical, the non-medical business, it's only 2% of our total sales, but in the first half, the non-medical was down 36%.

因此，隨著時間的推移，它繼續增長，這也是我們預計 2024 年會發生的情況。至於您對有機成長的評論。我想我會要求人們盯著我們演示中的第26張幻燈片，其中顯示醫療非醫療，非醫療業務，僅占我們總銷售額的2％，但在上半年，非醫療業務-醫療下降36 %。

So even though it's only 2%, it does create a great stretch a little bit of drag on the organic growth and that that normalizes in the second half of the year. So you won't see non-medical being down as much in the second half year over year, which allows the total Integer organic growth rate to lift.

因此，儘管只有 2%，但它確實對有機增長造成了很大的拖累，並且會在下半年恢復正常。因此，下半年非醫療產業的年減幅度不會那麼大，這使得 Integer 總有機成長率得以提升。

But if you look at medical, medical was 7% organic growth in the first half and that's what we expect for the full year. So medical continues to perform at that 7%-ish organic growth. And then the non-medical has less of an impact in the second half. And I think that's an important thing to point to focus on when you're looking at the organic growth quarter-by-quarter and then half by half.

但如果你看看醫療產業，上半年醫療產業的有機成長為 7%，這也是我們對全年的預期。因此，醫療產業繼續保持 7% 左右的有機成長。然後非醫療在下半年的影響較小。我認為，當你逐季度、然後一半觀察有機成長時，這是需要重點關注的一件重要事情。

Great. Can I just follow up on that. So it sounds like the medical is right on track and it's maybe just the nonmedical that is really what you're relying on to the acceleration and you have increased confidence in that because of what you just called out in the backlog?

偉大的。我可以跟進一下嗎？所以聽起來醫療領域正步入正軌，也許只是非醫療領域才是您真正依賴的加速，並且由於您剛剛在積壓中提出的要求，您對此更有信心了？

Well, I guess if depending on the term acceleration, I mean our reported sales in the first half were 9.3%. The guidance for the year is 9% to 11%, so there is a step up on a year-over-year basis. So slight step-up in the growth rate is coming from medical as well. I highlighted the ramping programs in electrophysiology, structural heart, emerging customer PMA, the neuromodulation.

好吧，我想如果根據“加速”一詞，我的意思是我們上半年報告的銷售額為 9.3%。今年的指導值為 9% 至 11%，因此年比有所提高。成長率的小幅提升也來自醫療領域。我強調了電生理學、結構心臟、新興客戶 PMA、神經調節的提升計畫。

But there was a step up in sales last year from second to third, third to fourth quarter. And so nominally the sales have to grow to maintain the growth rate on a year-over-year basis. I'm just highlighting that the organic growth in the first half for medical is 7%. It will obviously maintain that we expect to maintain that for the rest of the year, the second half.

但去年第二季到第三季、第三季到第四季的銷售額都有所上升。因此，名目上銷售額必須成長才能維持年比成長率。我只是強調醫療產業上半年的有機成長為 7%。顯然，我們預計將在今年餘下時間（即下半年）保持這一勢頭。

Medical is less of a drag and so the total Integer gets a little better in the second half. But the organic growth in medical continues to improve as we roll into the second half because of the new programs, the ramping programs.

醫療方面的拖累較小，因此下半場的整體整數會有所改善。但隨著我們進入下半年，由於新項目和斜坡項目的推出，醫療領域的自然成長繼續改善。

Great. Very helpful color. Thank you for that.

偉大的。非常有用的顏色。謝謝你。

Kristen Stewart, C.L. King.

克莉絲汀史都華，C.L.國王。

Thanks for taking the question. It looks like the contribution from acquisitions was a little bit stronger in the quarter. Was just wondering if you could provide us an update on how the acquisitions have been going? And then just looking ahead how you're feeling about M&A in general?

感謝您提出問題。看起來本季收購的貢獻稍強。只是想知道您能否向我們提供有關收購進展的最新資訊？然後展望您對併購的整體看法？

Great, sure. So thanks for the question, Kristen. The acquisitions are doing very well. There slightly ahead of what we had modeled for the first half. We're excited to have both the InNeuroCo and Pulse Technologies be part of the portfolio. On the organic growth -- the top line growth in that business is because of the programs they have we've been able to identify really good operational synergies. They had good ideas that we've been able to learn from.

太好了，當然。謝謝你的提問，克里斯汀。收購進展非常順利。稍微領先我們為上半場建模的情況。我們很高興 InNeuroCo 和 Pulse Technologies 成為我們產品組合的一部分。在有機成長方面－該業務的頂線成長是由於他們所實施的計劃，我們已經能夠確定真正良好的營運協同效應。他們提出了我們可以學習的好點子。

We've had ideas we've been able to share and we're getting strong operational synergies and margin improvement there. We would expect over time to be able to get commercial synergies and get the top line growing even faster. But that takes a little longer given the cycle time. So we're very happy with the acquisitions and excited for them to fix to continue to grow the both operational and commercial synergies.

我們有可以分享的想法，並且我們在那裡獲得了強大的營運協同效應和利潤率的提高。我們預計隨著時間的推移，能夠獲得商業協同效應，並使收入成長得更快。但考慮到週期時間，這需要更長的時間。因此，我們對這些收購感到非常滿意，並很高興他們能夠繼續擴大營運和商業協同效應。

From an M&A perspective, it's been a it's been a pretty active first half overall, if you look at the industry with the number of acquisitions that have happened, some larger dollar acquisitions compared to maybe historical average. But still, you know, we're focused on tuck-in acquisitions to make that allow us to maintain our 2.5 times to 3.5 times debt leverage.

從併購的角度來看，總體來說，上半年是相當活躍的，如果你看看這個行業發生的收購數量，與歷史平均水平相比，一些規模更大的收購。但我們仍然專注於收購，以使我們能夠維持 2.5 倍至 3.5 倍的債務槓桿。

We continue to have a very robust pipeline of opportunities. Our debt leverage is at 3.2 times at the end of the second quarter, I'll highlight we've done all $550 million worth of acquisitions the last 2.5 years, while maintaining our debt leverage sitting at 3.2 times at this point. So we do, as the year progresses, paydown, more pay down more debt, generate more EBITDA. So our capacity, our capital available for acquisitions does increase as the year progresses.

我們繼續擁有非常強大的機會管道。截至第二季末，我們的債務槓桿率為 3.2 倍，我要強調的是，我們在過去 2.5 年裡完成了所有價值 5.5 億美元的收購，同時目前我們的債務槓桿率維持在 3.2 倍。因此，隨著時間的推移，我們會償還債務，償還更多債務，產生更多 EBITDA。因此，隨著時間的推移，我們的產能、可用於收購的資本確實增加。

And we don't get to choose win, win acquisitions want to want to sell or when they want to transact but we've got a very robust pipeline that we continue to nurture and cure rate and are excited to be able to continue to identify tuck-ins that fit within our strategy.

我們不能選擇勝利，勝利收購想要出售或當他們想要交易時，但我們有一個非常強大的管道，我們將繼續培育和治癒率，並很高興能夠繼續識別符合我們策略的折邊活動。

And, just reiterating on an acquisition front, we're looking for looking for acquisitions that are very much aligned with our targeted growth markets and have an accretive growth rate or a clear path to an accretive growth rate and have accretive margins, our clear path to accretive margins. We've been able to identify those in the past and expect to be able to do that going forward for the size of acquisitions that we're looking for.

而且，只是在收購方面重申，我們正在尋找與我們的目標成長市場非常一致的收購，並且具有增值增長率或具有增值增長率的明確路徑，並且具有增值利潤，這是我們的明確路徑增加利潤。我們過去已經能夠識別出這些，並期望能夠針對我們正在尋找的收購規模來做到這一點。

Perfect. Thanks for taking my questions.

完美的。感謝您回答我的問題。

Thanks, Kristen.

謝謝，克里斯汀。

Suraj Kalia, Oppenheimer.

蘇拉吉·卡利亞，奧本海默。

Good morning, Joe. Thanks for taking my questions. A single lot of speed asked about PFA and sorry for belaboring this. Multipart first question. On obviously, I know, you all can give specifics, but fair Pulse is reflected. So we get that, Joe, in terms of the organic growth of 4% or so in Cardio and Vascular, right. How should we think about incremental contribution from PFA?

早安，喬。感謝您回答我的問題。很多速度詢問了 PFA，很抱歉對此進行了詳細說明。多部分第一個問題。顯然，我知道，你們都可以給出具體細節，但公平的脈搏得到了反映。喬，我們知道，心血管和血管業務的有機成長約為 4%，對吧。我們該如何看待 PFA 的增量貢獻？

And the second part of my question, Joe, would be on, even if a client wants to in-source from the point that they start the whole program, right? How much of a time does it take for them to completely in-source and get to the quality levels that are necessary?

喬，我的問題的第二部分將會繼續，即使客戶希望從他們啟動整個專案的那一刻起就進行內源，對嗎？他們需要多長時間才能完全內源並達到必要的品質水平？

It's not going to happen overnight, but just if you could characterize the timeframe.

這不會在一夜之間發生，但前提是你能描述出時間框架。

Sure. So maybe I'll just on the organic growth for C&V of 4% in the second quarter. This was very much expected by us. The order book we have gives us great visibility. There were no surprises in that. I wish our customers' manufacturing plans were perfectly linear. I wish that as the lumpiness that occurs in our customers' production schedules didn't exist, but it does.

當然。因此，也許我只會討論第二季 C&V 的有機成長 4%。這是我們非常期待的。我們擁有的訂單簿給了我們很大的知名度。這並不令人意外。我希望我們客戶的製造計劃是完美線性的。我希望客戶的生產計劃中出現的混亂現像不會存在，但它確實存在。

And I would point to and reiterate that we expect high single digit organic growth in C&V. If you look at the trailing four quarters, the C&V business is growing at 17% reported. We've given guidance of low double digit, call it low to mid-teens. So we're very excited about our C&V business.

我想指出並重申，我們預計 C&V 會有高個位數的有機成長。如果你看看過去四個季度，C&V 業務的成長率為 17%。我們給了低兩位數的指導，稱之為低至中十幾位。因此，我們對 C&V 業務感到非常興奮。

Electrophysiology, structural heart in particular, they're growing faster than the market. We measure our customer sales, we aggregate that we look at what the market's growing at, and we're growing faster than the market in those two important segments.

電生理學，特別是結構心臟，它們的成長速度快於市場。我們衡量我們的客戶銷售額，我們匯總我們的市場成長情況，並且我們在這兩個重要領域的成長速度快於市場。

To your question about in-sourcing specifically on, we tried to lay out the cycle times on development programs to 510(k) program from start to finish, it could be two to three years of development, three to five years from the time we start a program to it turns into manufacturing revenues.

針對您關於內包的具體問題，我們嘗試列出510(k) 計劃從開始到結束的開發週期，可能需要兩到三年的開發時間，也可能是從我們發布之日起三到五年的時間。

And so to the earlier question, that was asked about visibility to customers, insourcing or outsourcing those and those are the lead times. So it gives us tremendous visibility to our growth and the programs that we're designed into. And we see that as a huge advantage for us because you want us to be very predictable in our in our guidance and in our growth rates.

因此，對於先前的問題，我們詢問了客戶的可見性、內包或外包的情況，以及交貨時間。因此，它讓我們對我們的成長和我們設計的專案有了極大的了解。我們認為這對我們來說是一個巨大的優勢，因為您希望我們的指導和成長率非常可預測。

To your other question on looking at that, the insourcing and the timeframes is three to five years. We've got great visibility with our customers, and we're excited about the growth in PFA, given our vertical integration and our ability to support the entire procedure and you know, when you when you look at overall, I'll just one last comment.

對於你的另一個問題，內包和時間框架是三到五年。我們在客戶中擁有很高的知名度，我們對 PFA 的成長感到興奮，考慮到我們的垂直整​​合以及我們支持整個過程的能力，而且你知道，當你從整體上看時，我只會說一個最後評論。

Overall trends are towards outsourcing, not in-sourcing. And the reason the reason for that is our customers are looking for help in getting to the market faster. And given our level of vertical integration, we can manage a lot of the supply chain for them, and we see that as a competitive advantage of ours.

整體趨勢是外包，而不是內包。原因是我們的客戶正在尋求幫助以更快地進入市場。鑑於我們的垂直整​​合水平，我們可以為他們管理許多供應鏈，我們認為這是我們的競爭優勢。

Fair enough. And Joe, a tangential question. Obviously one of the TAVR companies yesterday was highlighting about constraints on cath lab time, given everything from left atrial appendage to TAVR to this and that to being thrown at the in the cath lab. I'm curious if through derivative commentary you from your end customers is you could opine on what you all are picking up in terms of cath lab constraints.

很公平。喬，一個離題的問題。顯然，一家 TAVR 公司昨天強調了對導管實驗室時間的限制，考慮到從左心耳到 TAVR 到這個那個到被扔進導管實驗室的一切。我很好奇，透過最終客戶的衍生評論，您是否可以對大家在導管實驗室限制方面所學到的內容發表意見。

I guess a lot of your products obviously and C&V are going through the same order entry and so to speak, right? I'm curious if you could shed any color through your end customer discussions. Thank you so much for taking my questions.

我想你們的許多產品顯然和 C&V 都在經歷相同的訂單輸入，可以這麼說，對嗎？我很好奇您能否透過最終客戶的討論透露出任何色彩。非常感謝您回答我的問題。

Yes, that's a very front end question that our customers continue to place very high, strong demand on us, particularly for their newest, most exciting programs and therapies. But we're not involved in touching that part of the of the cycle, the process to understand their constraints on cath labs, recognizing our demand is coming from their production of products, which is, which is three to six, nine months ahead of the actual procedure.

是的，這是一個非常前端的問題，我們的客戶繼續對我們提出非常高、強烈的需求，特別是對他們最新、最令人興奮的項目和療法。但我們沒有參與接觸週期的這一部分，即了解他們對導管實驗室的限制的過程，認識到我們的需求來自他們的產品生產，即提前三到六、九個月。

And so by the time we get demand and orders from our customers, they've already factored whatever, whatever the hospital cath lab constraints are into the demand they're placing on us. So we really don't have a real-time visibility or insight into that.

因此，當我們收到客戶的需求和訂單時，他們已經將醫院導管實驗室的限制因素都考慮到了他們對我們的需求。所以我們確實沒有即時的可見性或洞察力。

Okay. thank you,

好的。謝謝你，

Suraj. You had asked the question about ramps and maybe yields or quality? There absolutely is a learning curve on ramping new programs. And the thing we focus on is ensuring we've got the highest possible yields when we do ramp and launch a program. But to your point, there is a learning curve on that, especially as the volumes ramp up and the margins typically get better over time as you improve yields.

蘇拉傑。您曾問過有關坡道以及產量或品質的問題？推出新項目絕對有學習曲線。我們關注的事情是確保我們在啟動和啟動專案時獲得盡可能高的收益。但就你的觀點而言，這有一個學習曲線，特別是隨著產量的增加，隨著產量的提高，利潤率通常會隨著時間的推移而變得更好。

Great. Thanks.

偉大的。謝謝。

Nathan Treybeck, Wells Fargo.

內森·特雷貝克，富國銀行。

Great. Thanks for taking the question. You brought down CRM and neuromodulation guidance to high single digits from low double digits. Can you talk about what you're seeing in this business? And is there any change in the implied outlook for your PMA portfolio?

偉大的。感謝您提出問題。您將 CRM 和神經調節指導從低兩位數降低到高個位數。您能談談您在這個行業中看到的情況嗎？您的 PMA 投資組合的隱含前景是否有任何變化？

Great. Thanks for the question, Nathan, on. So on CRM, we had said at the beginning of the year that we expected to continue to see fairly robust CRM specific, not neuro, but cardiac for the management growth, and then we would expect that we were expecting it to normalize in the second half of the year meaning lower growth rates. That's what we saw based upon the order book and based upon conversations with customers.

偉大的。謝謝你的提問，內森，繼續。因此，在 CRM 方面，我們在年初曾表示，我們預計將繼續看到相當強勁的 CRM 特定的（不是神經的，而是心臟的）管理增長，然後我們預計它將在第二年正常化今年上半年意味著成長率較低。這就是我們根據訂單簿以及與客戶的對話所看到的情況。

If you look at I'll just point to two of the industry players who reported results of Abbott CRM growth rate from the first to second quarter step down a couple of hundred basis points I still think Abbott's got a really strong growth rate strong growth rate. I think it was just under 6% CRM. But in the second quarter growth rate for Abbott in CRM was lower than first quarter, specifically because we're seeing and expecting that markets are normalizing.

如果你看一下，我只想指出兩家行業參與者報告的雅培 CRM 成長率從第一季度到第二季度下降了幾百個基點，我仍然認為雅培的成長率非常強勁。我認為 CRM 略低於 6%。但第二季度雅培 CRM 業務的成長率低於第一季度，特別是因為我們看到並預期市場正在正常化。

Abbott's still very strong with they called out their AVEIR pacemaker program. Boston also had a step down in their growth rate. I think it was 5% to 3%, first quarter was 5% growth, second quarter was three. So we look at that data. We look at where our customers are ordering from us, and we look at what that translates to.

雅培仍然非常強大，他們推出了 AVEIR 起搏器計劃。波士頓的成長率也有所下降。我認為是5%到3%，第一季是5%的成長，第二季是3%。所以我們看看這些數據。我們專注於客戶從哪裡向我們訂購，並關注其轉換為何。

And so we do for us, for our sales expect to see the CRM segment on normalize more in the second half, i.e., lower growth rates than in the first half. On your question -- so that's happening as expected. It's very much following what we saw at the beginning of the year. And what we were we were we were hearing.

因此，我們對我們的銷售期望看到 CRM 細分市場在下半年更加正常化，即成長率低於上半年。關於你的問題——這正如預期的那樣發生。這與我們年初看到的情況非常相似。我們所聽到的就是我們。

On the emerging PMA customers. We gave guidance for the year of $100 million to $120 million of sales for that group of customers. That's up from $50 million years ago, $50 million in 2022, so very strong growth. We're very much on trajectory to deliver on that those sales are a little more back half second half weighted than first half.

關於新興的 PMA 客戶。我們為該客戶群今年的銷售額提供了 1 億至 1.2 億美元的指引。這比幾年前的 5,000 萬美元有所增加，到 2022 年將達到 5,000 萬美元，成長非常強勁。我們非常有信心實現這個目標：下半年的銷售比重比上半年稍高。

So that's where you'll see some additional sales in the second half is with that group of customers. That's because those programs are in production and they were ramping the output based upon their forecast plans and how they're introducing those products into the marketplace. So we do expect to see slightly higher emerging PMA customer sales in the second half of the year compared to the first half. And we're very much on a trajectory to deliver that $100 million to $120 million of sales that we had guided to at the beginning of the year.

因此，您將在下半年看到該客戶群的一些額外銷售。這是因為這些計劃正在製作中，並且他們正在根據預測計劃以及如何將這些產品引入市場來提高產量。因此，我們確實預計下半年新興 PMA 客戶銷售額將略高於上半年。我們正處於實現年初目標 1 億至 1.2 億美元銷售額的軌道上。

Okay. Thank you for that. And just a two-part question on PFA. Can you speak to the net benefit that you get from PFA in the context of cannibalizing your non-PFA ablation business? And then the second part would be we're hearing that the EP market growth is accelerating in part driven by increased procedures, but there's also the price premium for PFA and I'm just wondering to what extent are you able to capture those economics as a contract manufacturer? Thanks.

好的。謝謝你。關於 PFA 的問題由兩個部分組成。您能否談談在蠶食非 PFA 消融業務的情況下從 PFA 獲得的淨收益？第二部分是我們聽說 EP 市場成長正在加速，部分原因是程式增加，但 PFA 也存在價格溢價，我只是想知道您能夠在多大程度上捕捉到這些經濟因素合約製造商？謝謝。

So I'll start, the price premium is on the finished device and a lot of what we're doing for our customers is similar capabilities as what we're providing on current ablation technologies. And so it's not like if our customers are getting a meaningful price premium that that necessarily is flowing through to us, but that's okay because this is a strong business and a strong portfolio with differentiated technologies already and applying them to a faster growing new therapy is a great thing for us.

首先，溢價在於成品設備，我們為客戶所做的許多工作與我們在目前消融技術上提供的功能類似。因此，如果我們的客戶獲得了有意義的價格溢價，這必然會流向我們，但這沒關係，因為這是一個強大的業務和一個強大的產品組合，已經擁有差異化技術，並將它們應用到更快增長的新療法中對我們來說是一件偉大的事情。

So that's how I think about the price premium from a cannibalization of current therapies. It's hard to determine what that cannibalization is going to be, but net, net, net, I think everyone believes PFA is ultimately going to accelerate the growth in the marketplace from a procedure volume perspective and given our participation across the full procedure on multiple platforms we see that as a tailwind for us in aggregate.

這就是我對目前療法的蠶食所帶來的溢價的看法。很難確定這種蠶食會是什麼，但淨、淨、淨，我認為每個人都相信，從程序量的角度來看，考慮到我們在多個平台上參與整個程序，PFA 最終將加速市場的成長我們認為這對我們來說是一個整體的推動力。

Thank you.

謝謝。

Joanne Wuensch, Citigroup.

喬安妮‧文施 (Joanne Wuensch)，花旗集團。

It's Felipe on for Joanne. Just looking back to the back half of 2023, I'm thinking about order lead times for electrophysiology -- I'm just wondering if you could remind us of what those look like for the customers. I guess with the strong start to the first half of 2024, have you seen any change in lead times and is there any amount of seasonality that's kind of baked into your guidance? Thanks so much.

費利佩替喬安妮上場。回顧 2023 年下半年，我正在考慮電生理學的訂單交付時間 - 我只是想知道您是否可以提醒我們這些對客戶來說是什麼樣的。我想隨著 2024 年上半年的強勁開局，您是否看到交貨時間有任何變化？非常感謝。

So Felipe, I heard the second part. I didn't hear the first part, but let me answer the seasonality about the second half. There really isn't any meaningful seasonality in our sales we use we used to the last couple of years we had talked about our engineering revenues or the product development revenues that we generate from customers for developing products for them.

費利佩，我聽到了第二部。我沒有聽到前半部分，但讓我回答後半部分的季節性。我們使用的銷售確實沒有任何有意義的季節性，過去幾年我們一直在談論我們的工程收入或我們從客戶那裡開發產品而獲得的產品開發收入。

We had talked about how that was oftentimes back-end loaded. It was more it was heavier in the third and fourth quarter lighter in the first quarter, second quarter in particular. In 2024, we've actually seen a much more balanced on profile on our engineering revenues and the reason that that's relevant is if you think about the cost of doing development work, their engineers and their engineers are in the payroll 365 days a year.

我們已經討論過後端通常如何加載。更重要的是第三季和第四季較重，第一季尤其是第二季較輕。到 2024 年，我們實際上看到我們的工程收入更加平衡，這是相關的原因是，如果您考慮進行開發工作的成本，他們的工程師和他們的工程師每年 365 天都在工資單中。

So the cost is fairly evenly loaded across the quarters. And when the revenue was back half loaded, you had a little bit of a mix shift there of a less margin in the first half more in the second half. For 2024, we've actually seen a much more balanced profile, which is something we've been working on, and we've been accomplishing that.

因此，各季度的成本相當均勻。當收入回升一半時，你會出現一些混合變化，上半年的利潤減少，下半年的利潤增加。到 2024 年，我們實際上看到了更加平衡的情況，這是我們一直在努力的事情，並且我們一直在實現這一目標。

So we don't really have any meaningful or identifiable seasonality baked into our second half or second half, slightly higher sales and growth rate is coming from new programs being introduced. Are there are there already in production that are ramping as well as the Irish facility coming online and giving us more capacity. And I apologize, I couldn't hear the first part of your question, if you could state that again?

因此，我們實際上並沒有任何有意義或可識別的季節性因素融入我們的下半年或下半年，略高的銷售額和成長率來自於推出的新計畫。是否已經有生產量正在增加，以及愛爾蘭工廠是否已上線並為我們提供更多產能。我很抱歉，我聽不到你問題的第一部分，你能再說一次嗎？

Yeah. No problem at all. I'm just wondering, unlike order lead times for electrophysiology devices, I'm trying to understand like how long it takes from order to actually being used in a procedure if you're seeing any change in cadence from your customers in terms of order timing as it's happening more frequently, this with like in the first half of '24?

是的。完全沒問題。我只是想知道，與電生理設備的訂單交付週期不同，如果您發現客戶的訂單節奏有任何變化，我想了解從訂單到實際在程序中使用需要多長時間時間安排，因為它發生得更頻繁，就像24 年上半年？

Okay. So two things. Lead times in general, we haven't seen a meaningful change in lead times. And I point to our order book when lead times come down, which we do expect over time, they will naturally the order book comes down. But because of that and so we would expect to see the order book come down with lead times.

好的。所以有兩件事。總體而言，我們還沒有看到交貨時間有有意義的變化。我指的是當交貨時間下降時我們的訂單簿，我們確實預計隨著時間的推移，他們的訂單簿自然會下降。但正因為如此，我們預計訂單簿會隨著交貨時間而下降。

And a couple of other specific things on in terms of ramps of new programs in electrophysiology, different customers have different approaches to how they approach their buildup of inventory in advance of approval or waiting for approval before they want to ramp it.

在電生理學新專案的升級方面，不同的客戶有不同的方法來處理他們在批准之前或等待批准之前建立庫存的方法。

But we oftentimes do get more orders for new programs further into the future so that we have we have even better visibility to the ramp plans of our customers, but that actually helps us. It gives us much better visibility and clarity on what the next three, six, nine months look like. And then as you accelerate that ramp, you clearly get synergies per the earlier question and the efficiencies that come with that the yields improve over time as well.

但我們經常在未來收到更多新項目的訂單，這樣我們就可以更好地了解客戶的產能計劃，但這實際上對我們有幫助。它使我們能夠更好地了解並清晰地了解未來三、六、九個月的情況。然後，當您加速這一增長時，您顯然會根據先前的問題獲得協同效應，並且隨著時間的推移，產量也會隨之提高，從而提高效率。

Okay, thank you. And then just on operating leverage, what gives you the confidence that you can continue to build our deliver leverage at the rate that you've had in the first half of the year and in the back half of the year? Thanks so much for taking the questions.

好的，謝謝。那麼就營運槓桿而言，是什麼讓您有信心繼續以上半年和下半年的速度建立我們的交付槓桿？非常感謝您提出問題。

Sure. So we've continued to see strong operational execution across our manufacturing facilities. We're executing on our manufacturing excellence initiatives, which gave us the gross margin improvement that we saw in the second quarter and first half year over year.

當然。因此，我們的製造工廠持續保持強勁的營運執行力。我們正在執行卓越製造計劃，這使我們在第二季和上半年看到毛利率年比有所改善。

We expect that to continue. We're executing on reducing scrap, reducing overtime, continued improvement in operator efficiency, and really it's calling back some of the inefficiencies that occurred because of the supply chain disruption and the direct labor turnover that we had during the growth years after the pandemic,

我們預計這種情況會持續下去。我們正在減少廢品，減少加班，持續提高操作員效率，實際上，它正在糾正由於供應鏈中斷和大流行後增長期間我們的直接勞動力流動而出現的一些低效率，

We're now at the at the company level, we're below the levels of turnover we had prior to the pandemic, which is which is helping us because our associates become more proficient at what they're doing that helps to reduce scrap, reduce waste. And so that gives us the confidence in continuing to expand margins the rest of the year. It's also very much aligned with our strategy of growing operating profit twice as fast as sales, which leads to margin expansion.

我們現在處於公司層面，我們的營業額低於疫情之前的水平，這對我們有幫助，因為我們的員工變得更加精通他們正在做的事情，這有助於減少廢品，減少浪費。因此，這讓我們有信心在今年剩餘時間內繼續擴大利潤率。這也非常符合我們的策略，即營業利潤成長速度是銷售額成長速度的兩倍，導致利潤率擴張。

There are no further questions at this time. I will turn the call back to you for closing remarks.

目前沒有其他問題。我會將電話轉回給您，請您發表結束語。

Great. Thank you, Sarah, and everyone who joined the call today. As always, you can access the replay of this call as well as the presentation on our website. Thank you for your interest in Integer, and that concludes our call today.

偉大的。謝謝莎拉和今天加入電話會議的所有人。與往常一樣，您可以存取本次電話會議的重播以及我們網站上的簡報。感謝您對 Integer 的興趣，我們今天的通話到此結束。

This concludes today's conference call. Thank you for joining. You may now disconnect.

今天的電話會議到此結束。感謝您的加入。您現在可以斷開連線。