Envista Holdings Corp (NVST) 2024 Q3 法說會逐字稿

My name is David, and I'll be your conference facilitator this afternoon. At this time, I'd like to welcome everyone to the Envista Holdings Corporation's third-quarter 2024 earnings results conference call. (Operator Instructions)

我叫大衛，今天下午我將擔任你們的會議主持人。現在，我歡迎大家參加Envista Holdings Corporation 2024年第三季財報電話會議。（操作員說明）

I'll now turn the call over to Mr. Amit Bhagwat, Vice President of Strategy at Envista Holdings. Mr. Bruecken, you may begin your conference call.

現在我將把電話轉給 Envista Holdings 策略副總裁 Amit Bhagwat 先生。布魯克先生，您可以開始電話會議了。

Good afternoon, and thanks for joining Envista's third-quarter 2024 earnings call. With me today are Paul Keel, our President and Chief Executive Officer; and Eric Hammes, our Chief Financial Officer.

下午好，感謝您參加 Envista 2024 年第三季財報電話會議。今天與我在一起的有我們的總裁兼執行長 Paul Keel；以及我們的財務長 Eric Hammes。

I want to point out that our earnings release, the slide presentation supplementing today's call and the reconciliations and other information required by SEC Regulation G relating to any non-GAAP financial measures provided during the call are all available on the Investors section of our website, www.envistaco.com.

我想指出的是，我們的收益發布、補充今天電話會議的幻燈片演示以及SEC G 條例要求的與電話會議期間提供的任何非GAAP 財務措施相關的調節表和其他信息都可以在我們網站的投資者部分找到， www.envistaco.com。

The audio portion of this call will be archived on the Investors section of our website later today under the heading Events and Presentations. It will remain archived until our next quarterly call.

本次電話會議的音訊部分將於今天稍後存檔在我們網站的投資者部分，標題為「活動和演示」。它將一直存檔，直到我們下一次季度電話會議為止。

During the presentation, we will describe some of the more significant factors that impacted year-over-year performance. The supplemental materials describe additional factors that impacted year-over-year performance. Unless otherwise noted, references in these remarks to company-specific financial metrics relate to the third quarter of 2024 and references to period-to-period increases or decreases in financial metrics are year over year.

在演示過程中，我們將描述影響同比業績的一些更重要的因素。補充資料描述了影響同比業績的其他因素。除非另有說明，否則這些評論中提到的公司特定財務指標涉及 2024 年第三季度，而提到的財務指標的同期增減則指的是同比。

During the call, we may describe certain products and devices that have applications submitted and pending certain regulatory approvals or available only in certain markets. We will also make forward-looking statements within the meaning of the federal securities laws, including statements regarding events or developments that we believe anticipate or may occur in the future.

在通話期間，我們可能會描述某些已提交申請並等待某些監管部門批准或僅在某些市場提供的產品和設備。我們也將做出聯邦證券法意義內的前瞻性聲明，包括有關我們認為預期或未來可能發生的事件或發展的聲明。

These forward-looking statements are subject to a number of risks and uncertainties, including those set forth in our SEC filings and actual results might differ materially from any forward-looking statements that we make today. These forward-looking statements speak only as of the date that they are made. And we do not assume any obligation to update any forward-looking statements except as required by law.

這些前瞻性陳述受到許多風險和不確定性的影響，包括我們向美國證券交易委員會提交的文件中列出的風險和不確定性，實際結果可能與我們今天所做的任何前瞻性陳述有重大差異。這些前瞻性陳述僅代表其作出之日的情況。除法律要求外，我們不承擔更新任何前瞻性聲明的義務。

With that, I'd like to return the call over to Paul.

說到這裡，我想把電話回給保羅。

Thank you, Amit. Good afternoon, and welcome, everyone. We appreciate you taking the time to join us today. In today's call, I'll kick it off with some opening thoughts on our third quarter performance, as well as what we're seeing from the broader market. Eric will then take us through the numbers in more detail. I will come back at the end with some closing remarks, and then we'll open it up for Q&A.

謝謝你，阿米特。下午好，歡迎大家。我們感謝您今天抽出時間加入我們。在今天的電話會議中，我將首先對我們第三季的業績以及我們從更廣泛的市場中看到的情況發表一些看法。然後埃里克將帶我們更詳細地了解這些數字。我將在最後發表一些結束語，然後我們將進行問答。

Slide 5 summarizes Q3 performance. The headline is that results came in as expected. On our last earnings call, we said that we expected underlying performance in Q3 to be similar to Q2, although reported results would be lower, principally due to a larger impact from the change in Spark revenue deferral that was detailed on our last call.

投影片 5 總結了第三季的表現。標題是結果符合預期。在我們上次的財報電話會議上，我們表示，我們預計第三季度的基本業績將與第二季度相似，儘管報告的業績會較低，這主要是由於我們上次電話會議中詳細介紹的Spark收入遞延變化的影響更大。

This is indeed what transpired. Reported results for Q3 were lower than Q2, and this was principally driven by the larger deferral impact while underlying results were about the same quarter over quarter. Our underlying growth in Q3 was similar to, or maybe a bit better than the broader market, which was generally flat. We gained share in orthodontics and diagnostics and held share in consumables. We undergrew the market in implants, although the gap narrowed, providing early evidence that our growth investments are having a positive impact. We'll say more about this in just a moment.

這確實是所發生的事情。第三季報告的業績低於第二季度，這主要是由於較大的延期影響所致，而基本業績與上一季相比大致相同。我們第三季的基本成長與整體持平的大盤相似，甚至可能略好一些。我們在正畸和診斷領域獲得了份額，並在消耗品領域佔據了份額。儘管差距縮小，但我們的植入市場成長不足，這提供了早期證據表明我們的成長投資正在產生積極影響。我們稍後會詳細討論這一點。

With Q3 coming in as expected, we are reconfirming our full-year guidance of negative 1% to negative 4% reported core growth and 10% to 12% adjusted EBITDA margins. Consistent with what we shared last quarter, we expect Q4 to return to growth on a reported basis.

隨著第三季如期到來，我們再次確認全年指引，報告核心成長為負 1% 至負 4%，調整後 EBITDA 利潤率為 10% 至 12%。與我們上季度分享的一致，我們預計第四季度將在報告的基礎上恢復成長。

I'll now touch on the dental market in Q3 and go a bit deeper into our relative performance. As I just mentioned, the overall market was generally flat. The implant segment, though, was up slightly in Q3 with single-tooth procedures again outpacing full arch. Our single-tooth volume grew mid-single digits globally, while our full arch volume was down low-single digits.

我現在將談談第三季的牙科市場，並更深入地了解我們的相對錶現。正如我剛才提到的，整體市場整體持平。不過，植體部分在第三季略有上升，單顆手術再次超過全牙弓。我們的單顆牙齒體積在全球範圍內增長了中個位數，而我們的全牙弓體積則下降了低個位數。

Overall, growth accelerated modestly quarter on quarter in our implant business with premium growth above Q2 and value posting a third consecutive quarter of positive growth. The orthodontic segment saw flat to slightly positive growth in the quarter, largely unchanged from Q2.

整體而言，我們的植入物業務季度環比略有加速，保費成長高於第二季度，價值連續第三個季度實現正成長。正畸業務本季呈現持平或小幅正成長，與第二季基本持平。

Our underlying performance was a bit better than this as we continue to gain share in clear aligners. Spark shipments, as well as the number of ordering doctors, were both up double digits in Q3, and Spark On-Demand is generating good traction in the early stages post launch.

隨著我們繼續獲得透明矯正器的份額，我們的基本表現比這要好一些。Spark 的出貨量以及預約醫生的數量在第三季度均實現了兩位數增長，並且 Spark On-Demand 在推出後的早期階段產生了良好的吸引力。

The diagnostic segment remained soft, down mid-single digits in Q3. On a worldwide basis, our business also contracted, although we again outgrew the market. North America, where we generate well over half of our diagnostic sales, was once again a relative bright spot, up low-single digits with additional share gains.

診斷領域仍然疲軟，第三季下降了中個位數。在全球範圍內，我們的業務也萎縮了，儘管我們的成長再次超過了市場。北美地區的診斷銷售額占我們診斷銷售額的一半以上，該地區再次成為相對亮點，實現低個位數成長，並帶來額外的份額成長。

In support of this, we introduced a number of new offerings in the quarter, including a new CBCT platform, enhanced software for our DEXIS intraoral scanner, and additional surgical functionality in our DTX treatment planning platform.

為了支持這一點，我們在本季度推出了許多新產品，包括新的 CBCT 平台、DEXIS 口內掃描儀的增強軟體以及 DTX 治療計劃平台中的附加手術功能。

The consumable segment was flat to slightly positive on a sellout basis and our performance was roughly the same. As discussed on our last earnings call, with global supply chains currently stable, our strong operational capabilities allow us to deliver high service levels with lower channel inventory. This strengthens capital efficiency for our channel partners and improves operating stability for us.

消費品部門的銷售情況基本上持平或略有上升，我們的業績大致相同。正如我們在上次財報電話會議上所討論的那樣，在全球供應鏈目前穩定的情況下，我們強大的營運能力使我們能夠以較低的通路庫存提供高水準的服務。這提高了我們通路合作夥伴的資本效率，並提高了我們的營運穩定性。

To summarize our Q3 performance, results came in as expected. We know we have plenty of work ahead of us. But I'm encouraged by the enthusiasm for change and commitment to improvement that I see across our organization.

總結我們第三季的表現，結果符合預期。我們知道我們還有很多工作要做。但我在整個組織中看到的對改變的熱情和對改進的承諾讓我深受鼓舞。

I'll now turn it over to Eric to take us through the details.

現在我將把它交給艾瑞克（Eric），讓他向我們介紹詳細資訊。

Thanks, Paul. First off, I just wanted to say how great it is to be part of the Envista team and to help deliver on our common purpose of partnering with professionals to improve lives. I have a personal passion for healthcare and for dental specifically, so it's great to be back in the industry.

謝謝，保羅。首先，我只想說成為 Envista 團隊的一員並幫助實現我們與專業人士合作改善生活的共同目標是多麼偉大。我個人對醫療保健特別是牙科充滿熱情，所以很高興回到這個行業。

I've had a chance to meet many of you, our investors, coverage analysts, and broader stakeholders over the past three months. It's been exciting to build a shared perspective on how Envista can deliver meaningful value creation moving forward.

在過去的三個月裡，我有機會見到了你們中的許多人、我們的投資者、涵蓋分析師和更廣泛的利害關係人。就 Envista 如何繼續創造有意義的價值建立一個共同的觀點是令人興奮的。

Let's now turn to our Q3 results. In the third quarter, we delivered sales of $601 million. Adjusting for the impact of currency exchange rates, core sales for the quarter declined 5.3%. Our specialty products and technology segment declined 5.2% and the equipment and consumable segment declined 5.6%.

現在讓我們看看第三季的結果。第三季度，我們實現了 6.01 億美元的銷售額。調整貨幣匯率的影響後，本季核心銷售額下降 5.3%。我們的特殊產品和技術部門下降了 5.2%，設備和消耗品部門下降了 5.6%。

Similar to last quarter, sales in Q3 were impacted by two significant dynamics outside of normal business drivers. We will cover both of these now.

與上季類似，第三季的銷售受到正常業務驅動因素之外的兩個重要動態的影響。我們現在將介紹這兩個問題。

First, as we previewed on our last earnings call, the net impact from our recent Spark deferred revenue change was significantly higher in Q3. This impact reflects the combined change from both our initial case revenue recognition as well as the timing of recognizing our deferred revenue. Together, Q3 revenues were $27 million lower as a result of the change.

首先，正如我們在上次財報電話會議上預覽的那樣，最近 Spark 遞延收入變化的淨影響在第三季度明顯更高。這種影響反映了我們最初案例收入確認以及確認遞延收入時間的綜合變化。由於這一變化，第三季收入總共減少了 2700 萬美元。

As a reminder, this change has no impact on our cash flows or the underlying economics of the Spark business. The net impact from our Spark revenue deferral change will be meaningfully lower in Q4, and eventually turned to a tailwind in 2025. Important to note, without the deferral change, Spark grew positively in Q3.

提醒一下，這項變更對我們的現金流量或 Spark 業務的基本經濟沒有影響。Spark 營收延期變化的淨影響將在第四季顯著降低，並最終在 2025 年轉變為順風車。值得注意的是，如果沒有延期變化，Spark 在第三季度實現了正增長。

Second, as outlined last quarter, we took the decision to draw down channel inventory. In addition to the benefits that Paul described previously, this also matches sell-in to our distributors more closely with sell-out to our end customers. While this supports a healthier overall supply chain for both our partners and Envista, it resulted in a notable year-on-year reduction to our sell-in, resulting in lower revenue of approximately $12 million in Q3 and $25 million year to date.

其次，如上季所述，我們決定減少通路庫存。除了保羅之前描述的好處之外，這也使我們的經銷商的銷售與最終客戶的銷售更加緊密地結合在一起。雖然這為我們的合作夥伴和 Envista 提供了更健康的整體供應鏈，但它導致我們的銷售量同比顯著減少，導致第三季收入減少約 1200 萬美元，年初至今收入減少約 2500 萬美元。

The biggest impact came in North America, but we also brought down channel inventory in some other markets, as I'll explain shortly. We will show additional details on the impact from these two changes in a moment.

最大的影響來自北美，但我們也降低了其他一些市場的通路庫存，我很快就會對此進行解釋。我們稍後將展示有關這兩項變更影響的更多詳細資訊。

Geographically, our North America business declined mid-single digits and West Europe declined high-single digits. Most of our developed market decline can be accounted for by the Spark net deferral change and the lower dealer inventory.

從地理上看，我們的北美業務下降了中個位數，西歐業務下降了高個位數。我們已開發市場的下滑主要是由於 Spark 淨延期變化和經銷商庫存降低所致。

Our China business declined low-double digits, mainly driven by weaker diagnostic sales. We're also lowering channel inventories in this market.

我們的中國業務出現低兩位數下滑，主要是因為診斷銷售疲軟。我們也降低了該市場的通路庫存。

Our third-quarter adjusted gross margin was 52.8%, a decrease of 490 basis points versus prior year. Our adjusted EBITDA margin for the quarter was 9.1%, which is 10.5 percentage points lower than prior year. Our adjusted diluted EPS in the third quarter was $0.12, compared to $0.43 in Q3 of 2023.

第三季調整後毛利率為 52.8%，較去年同期下降 490 個基點。本季調整後 EBITDA 利潤率為 9.1%，比去年同期下降 10.5 個百分點。我們第三季調整後的攤薄每股收益為 0.12 美元，而 2023 年第三季為 0.43 美元。

And finally, we delivered $63 million free cash flow this quarter compared to $77 million in Q3 of last year. Free cash flows year to date were $179 million, up 45% versus prior year. To bring additional transparency to our revenue and margin dynamics in the quarter, we have provided two bridges similar to last quarter.

最後，本季我們交付了 6,300 萬美元的自由現金流，而去年第三季為 7,700 萬美元。年初至今的自由現金流為 1.79 億美元，比上年增加 45%。為了提高本季營收和利潤動態的透明度，我們提供了與上季類似的兩個橋樑。

Let's take a look at each. Specific to our year-over-year revenue, the Spark deferral net change accounted for approximately $27 million of sales reduction. We expect to recognize all of this deferred revenue over the next 18 months.

讓我們分別看一下。具體到我們的同比收入，Spark 延期淨變化導致銷售額減少約 2700 萬美元。我們預計將在未來 18 個月內確認所有這些遞延收入。

The next meaningful impact on revenues was from the dealer inventory realignment in North America, which accounted for nearly $12 million of year-over-year sales reduction. Important to note, in Q3, this was only the result of higher 2023 sell-in. From Q2 to Q3 of this year, our sequential channel inventory position was stable.

對收入的下一個有意義的影響來自於北美經銷商庫存的調整，這導致銷售額比去年同期減少了近 1200 萬美元。值得注意的是，在第三季度，這只是 2023 年銷售量增加的結果。今年第二季到第三季度，我們的通路庫存狀況持續穩定。

Another item of note on the revenue bridge is the contribution to growth from pricing this quarter. This is an area of focus for Envista, and we have seen good contributions from several of our businesses this year and in Q3. This is underpinned by the strength of our portfolio, the quality of our leading brands, and our continuous innovation.

營收橋樑上另一個值得注意的事項是本季定價對成長的貢獻。這是Envista關注的一個領域，我們在今年和第三季看到了我們的幾項業務的良好貢獻。這是我們產品組合的實力、領先品牌的品質以及我們不斷創新的基礎。

Let's now take a look at our margin bridge for Q3. Adjusted EBITDA margins declined 10.5 percentage points relative to the same period last year. Half of the margin reduction was driven by the Spark net revenue deferral change, as well as consumable dealer inventory realignment.

現在讓我們來看看第三季的保證金橋樑。調整後 EBITDA 利潤率較去年同期下降 10.5 個百分點。利潤率下降的一半是 Spark 淨收入遞延變化以及消耗品經銷商庫存調整造成的。

Our continued growth investments accounted for nearly a 1.5 margin reduction year over year. While the largest portion went into our premium implants, we are making smaller investments in several of our other businesses. All of these investments are aimed at revitalizing growth across our portfolio.

我們持續成長的投資導致利潤率年減了近 1.5%。雖然最大的一部分投入了我們的優質植入物中，但我們正在對其他幾項業務進行較小的投資。所有這些投資都旨在重振我們投資組合的成長。

For example, we continue to improve our offerings in value implants through investments in innovation, which have helped accelerate our North America growth. In Q3, we also experienced nearly 400 points of margin headwind from two primary effects.

例如，我們透過創新投資持續改進我們的價值植入產品，這有助於加速我們在北美的成長。在第三季度，我們還因兩個主要影響而經歷了近 400 點的利潤逆風。

Most significantly, our impact from FX was more pronounced as a result of transaction losses. In addition, incentive compensation was a headwind year over year. Partially offsetting these headwinds, we delivered a 1.5 of margin expansion this quarter from the net productivity gains and solid price performance.

最重要的是，由於交易損失，外匯對我們的影響更加明顯。此外，激勵性薪酬逐年不利。由於淨生產力的提高和穩健的價格表現，本季我們的利潤率成長了 1.5%，部分抵消了這些不利因素。

Turning now to segment performance, core revenue in the specialty products and technology segment declined 5.2% versus prior year. Our orthodontic business declined low-double digits in the third quarter, driven by the net Spark revenue deferral impact. Without this effect, orthodontic revenues grew mid-single digits.

現在轉向分部業績，特種產品和技術分部的核心收入較前一年下降 5.2%。受 Spark 淨收入遞延影響的推動，我們的矯正業務在第三季出現低兩位數下滑。如果沒有這種影響，矯正收入將成長中個位數。

Consistent with the broader aligners segment, Spark saw slowing case growth but continues to take share with active Spark doctors growing double digits. Spark continues to be a key growth driver for Envista. Our brackets and wires business declined slightly versus prior year as strong growth in Russia and China was countered by weaker demand in other markets. We realized positive price growth in both our Spark and brackets and wires businesses.

與更廣泛的矯正器市場一致，Spark 的病例增長放緩，但與活躍的 Spark 醫生相比，其市場份額繼續以兩位數增長。Spark 仍然是 Envista 的主要成長動力。我們的支架和電線業務與去年相比略有下降，因為俄羅斯和中國的強勁成長被其他市場需求疲軟所抵消。我們的 Spark 以及支架和電線業務都實現了積極的價格成長。

Implant growth was flat versus prior year. In North America, our gap relative to market continued to close, helped by mid-single-digit growth in our value implants business and an improving trend in Nobel. Full-arch case demand remained weak, though we have seen stable case volumes over the past several quarters. Single-implant treatments remained resilient, as mentioned previously. Our premium implants business was up slightly in Europe, while China was soft in the period.

植體生長與去年持平。在北美，由於價值植入業務的中個位數成長和諾貝爾的改善趨勢，我們相對於市場的差距持續縮小。儘管我們在過去幾季看到了穩定的箱體數量，但全拱箱體的需求仍然疲軟。如前所述，單植體治療仍然具有彈性。我們的優質植體業務在歐洲略有成長，而中國在此期間表現疲軟。

In the third quarter, our specialty products and technologies business had an adjusted operating margin of 7%, down 12.7 percentage points relative to prior year. This decline was primarily driven by the net impact from our Spark deferral change in addition to growth investments and effects.

第三季度，我們的特色產品和技術業務調整後營業利潤率為 7%，較去年同期下降 12.7 個百分點。除了成長投資和影響之外，這種下降主要是由於 Spark 延期變化的淨影響所致。

Moving to our equipment and consumables segment, core sales in the quarter decreased by 5.6% versus prior year. Our diagnostics business declined mid-single digits. This decline was driven by weakness outside of North America. We are encouraged to see that our strongest and largest diagnostics market, North America, grew for a third straight quarter while also increasing market share. Both China and Europe experienced sharp declines as the global diagnostics market as the global diagnostics market remains weak.

轉向我們的設備和消耗品部門，本季的核心銷售額與去年同期相比下降了 5.6%。我們的診斷業務下降了中個位數。這一下降是由北美以外地區的疲軟推動的。我們很高興看到我們最強大和最大的診斷市場北美連續第三個季度成長，同時市場份額也在增加。由於全球診斷市場仍然疲軟，中國和歐洲都經歷了急劇下滑。

Our consumables business sellout in North America grew low-single digits in the quarter. Our distribution relationships continue to be strong and we believe this business is well positioned to grow in the fourth quarter. Outside of North America, consumables grew mid-single digits in Europe and double digits in Russia.

本季我們在北美的消耗品業務銷售量出現低個位數成長。我們的分銷關係持續保持強勁，我們相信該業務預計在第四季度實現成長。在北美以外，歐洲的消耗品成長了中個位數，俄羅斯的消耗品成長了兩位數。

Our adjusted operating margin for this segment declined 460 basis points versus Q3 2023, mainly driven by lower volumes, FX, and the continued investments in our distribution partnerships and sales coverage.

與 2023 年第三季相比，我們該部門調整後的營業利潤率下降了 460 個基點，這主要是由於銷量下降、外匯以及對分銷合作夥伴關係和銷售覆蓋範圍的持續投資所致。

In the third quarter, we generated free cash flow of $63 million compared to $77 million over the comparable period last year. Our year-to-date free cash flows were $179 million, up $55 million or 45% over prior year, driven by improved working capital management and lower capital expenditures. The stronger year-to-date cash flows allowed us to repay $100 million of our US dollar-denominated term loan in Q3, further bolstering our strong balance sheet.

第三季度，我們產生了 6,300 萬美元的自由現金流，而去年同期為 7,700 萬美元。在改善營運資本管理和降低資本支出的推動下，我們年初至今的自由現金流為 1.79 億美元，比前一年增加 5,500 萬美元，即 45%。年初至今強勁的現金流使我們能夠在第三季償還 1 億美元的美元定期貸款，進一步支撐我們強勁的資產負債表。

Having covered the details of our Q3 performance, I will now turn the call back over to Paul.

在介紹了我們第三季表現的細節後，我現在將把電話轉回給保羅。

Thank you, Eric. As mentioned at the outset, we're reconfirming full-year guidance of negative 1% to negative 4% core growth and 10% to 12% adjusted EBITDA margins, inclusive of the one-time and non-cash charges that we covered earlier. We expect a return to growth in Q4.

謝謝你，埃里克。如一開始所提到的，我們重新確認全年指引為負 1% 至負 4% 核心成長和 10% 至 12% 調整後 EBITDA 利潤率，包括我們之前討論過的一次性和非現金費用。我們預計第四季將恢復成長。

I'll wrap up with a couple of closing thoughts before we open it up for your questions. First, in total, the dental market is soft but stable. Consumer sentiment is mixed as well. There are some positive signals, interest rates are coming down, and the post-COVID demand surge of '22 and '23 has now largely normalized. But we don't hear compelling enough evidence of an overall market turn yet from our customers.

在我們開始回答大家的問題之前，我將總結一些結論。首先，總體而言，牙科市場疲軟但穩定。消費者情緒也好壞參半。有一些積極的信號，利率正在下降，22 世紀和 23 世紀新冠疫情后的需求激增現已基本正常化。但我們還沒有從客戶那裡聽到足夠令人信服的證據來證明整體市場的轉變。

Second, our Q3 results came in as expected, a solid start but still below our longer-term potential. Third, consistent with this, we are reaffirming our full-year guidance as outlined on the prior slide. And fourth, and maybe most importantly, we're thoughtfully and systematically putting in place the building blocks for improved performance moving forward.

其次，我們第三季的業績符合預期，這是一個好的開端，但仍低於我們的長期潛力。第三，與此一致，我們重申上一張投影片中概述的全年指引。第四，也許也是最重要的一點是，我們正在深思熟慮、有系統地建構建置模組，以提高未來的效能。

For example, we announced important additions to our senior team in Q2 and filled other important leadership roles deeper in our organization in Q3. We are redoubling our commitment to the Envista business system, which is the foundation of our culture of performance, inclusivity, and continuous improvement.

例如，我們在第二季宣布了對高階團隊的重要補充，並在第三季在我們的組織中更深入地填補了其他重要的領導角色。我們正在加倍對 Envista 業務體系的承諾，這是我們績效、包容性和持續改善文化的基礎。

We held what we call a CEO Kaizen last week, covering eight key priorities, seven locations, and five businesses. Every member of our senior team played an active role, as well as more than 200 of my colleagues. And with the first component of our circle values being customer centricity, we are stepping up clinician engagement even further, welcoming over 350 customers to a DSO event in China, more than 400 orthodontists to our North American Ormco forum, and more than 500 doctors to a clear aligner event in India. Envista's focus on partnering with professionals to improve lives remains front and center in everything we do.

上週，我們舉行了所謂的執行長改善活動，涵蓋八個關鍵優先事項、七個地點和五個業務。我們高級團隊的每一位成員以及我的 200 多名同事都發揮了積極的作用。我們的圈子價值觀的第一個組成部分是以客戶為中心，我們正在進一步加強臨床醫生的參與，歡迎超過350 名客戶參加在中國舉行的DSO 活動，歡迎超過400 名正畸醫生參加我們的北美Ormco論壇，歡迎超過500 位醫生參加我們的北美Ormco 論壇。Envista 致力於與專業人士合作改善生活，這仍然是我們所做的一切的首要和中心。

I'll close by thanking my 12,000 colleagues around the world for the encouraging progress we've made across the last six months. And in the same way, we're also grateful for the strong support we enjoy from our customers, partners, and shareholders.

最後，我要感謝世界各地的 12,000 名同事，感謝我們在過去六個月中取得的令人鼓舞的進展。同樣，我們也感謝客戶、合作夥伴和股東的大力支持。

And with that, we'll open it up for your questions.

接下來，我們將開放它來回答您的問題。

(Operator Instructions)

（操作員說明）

Elizabeth Anderson, Evercore ISI.

伊麗莎白·安德森，Evercore ISI。

Hi guys, thanks so much for the question. Great first quarter out of the gate. It's really nice to see you guys delivering on better than the guidance that you outlined for us last quarter. Can you talk about whether this was kind of like a function of markets improving? Would this improved execution? You noted some areas in working cap and other places where that seemed to be improving or with just kind of just a cautious first quarter out of the gate kind of situation. If you could sort of parse through those different pieces that would be helpful. Thank you.

大家好，非常感謝您的提問。第一季表現出色。很高興看到你們比上個季度為我們概述的指導方針做得更好。您能否談談這是否有點像市場改善的函數？這會提高執行力嗎？您注意到工作上限中的某些領域和其他領域似乎正在改善，或者只是在第一季出現謹慎的情況。如果您可以解析這些不同的部分，那將會很有幫助。謝謝。

Hello?

你好？

Can you hear us now, Elizabeth?

伊莉莎白，你現在聽得到我們說話嗎？

Oh, yeah, I can hear you now. Thank you.

哦，是的，我現在可以聽到你的聲音了。謝謝。

Great. Thank you. Okay. Sorry for that. You missed us thanking you for the question as well as the encouragement. So it's worth saying again. We appreciate it.

偉大的。謝謝。好的。對此感到抱歉。您想念我們，感謝您的提問與鼓勵。所以值得再說一次。我們很感激。

Let's see. You asked about three things. If I remember correctly, you asked about market execution and then guidance. Why don't I take the first two, and then I'll ask Eric to do the third.

讓我們來看看。你問了三件事。如果我沒記錯的話，您問的是市場執行，然後是指導。為什麼我不做前兩個，然後我會請艾瑞克做第三個。

With respect to the market, regrettably, it was not a contributor to our performance above expectations in Q3. As we talked about in our prepared remarks, dental market growth still remains slow, slower than the historical 3% to 5% that we all know over time, and quite a bit slower than the post-COVID run-up.

遺憾的是，就市場而言，它並沒有為我們第三季的業績超出預期做出貢獻。正如我們在準備好的發言中談到的那樣，牙科市場的成長仍然緩慢，低於我們眾所周知的歷史 3% 至 5% 隨著時間的推移，並且比新冠疫情后的增長慢很多。

Now there are a couple of early signals that things will or may improve moving forward. People point to interest rates coming down, and then of course, unmet patient demand is still very high. But at present, there just isn't enough tangible evidence of improvement to expect an imminent upturn anytime soon.

現在有一些早期訊號表明情況將會或可能會有所改善。人們指出利率正在下降，當然，未滿足的患者需求仍然很高。但目前還沒有足夠明顯的改善證據來預期很快就會出現改善。

With respect to execution though, I think we can credibly say that we're beginning to re-sharpen our edge. Across the first couple of years following the spin from Danaher, execution at Envista, I would say, was pretty good. It's really been just the past two years where we lost focus on some of the core building blocks that we all know are fundamental to consistent delivery.

不過，就執行而言，我認為我們可以可信地說，我們正在開始重新磨礪我們的優勢。我想說，從丹納赫剝離後的頭幾年，恩維斯塔的執行力相當不錯。事實上，就在過去的兩年裡，我們失去了對一些核心構建塊的關注，我們都知道這些核心構建塊是一致交付的基礎。

So as I talked about in my closing comments, we're trying to thoughtfully and systematically shore up this foundation. Things like resetting guidance at what we think is a more sustainable level, reinvesting growth across the year, relaunching EBS to improve our execution, and the list goes on.

因此，正如我在結束語中所說，我們正在努力深思熟慮、有系統地鞏固這一基礎。諸如將指導重新調整到我們認為更永續的水平、對全年成長進行再投資、重新啟動 EBS 以提高我們的執行力等，這樣的例子不勝枚舉。

Envista, in my judgment, knows how to deliver, and we've demonstrated that with good consistency across the first couple years as a public company. So at the same time that we're building new capabilities, we're really very focused on rebuilding that consistent execution rhythm that has worked for us previously.

在我看來，Envista 知道如何交付，並且我們在作為上市公司的頭幾年中以良好的一致性證明了這一點。因此，在我們建立新功能的同時，我們確實非常專注於重建先前對我們有效的一致執行節奏。

With that, maybe Eric, do you have any thoughts on guidance?

那麼，也許艾瑞克，你對指導有什麼想法嗎？

Yeah, thanks, Paul. Elizabeth, good to hear from you again, and thanks for the question. So I'll maybe comment on two things. I'll comment on guidance, and I'll just give my view of color on Q3. So regarding guidance, I would say, first off, we aim to set a motivating but achievable bar. But we also want to deliver at consistent performance levels. So our balance, of course, is to strive for and strike a balance between both.

是的，謝謝，保羅。伊莉莎白，很高興再次收到你的來信，感謝你的提問。所以我可能會評論兩件事。我將對指導進行評論，並且我將僅給出我對第三季度顏色的看法。因此，關於指導，我想說，首先，我們的目標是設定一個激勵性但可實現的標準。但我們也希望以一致的性能水準提供服務。所以我們的平衡當然是在兩者之間爭取並取得平衡。

I think the recent reinstatement of guidance in Q2, that was a good step. Obviously, we reiterated that guidance here today. I also think the additional depth that we've been providing on the underlying performance level has been received well. We hope you all see that as a way to understand better our underlying core growth and our underlying margins.

我認為最近在第二季度恢復了指導，這是一個很好的一步。顯然，我們今天在這裡重申了這項指導。我還認為我們在基礎性能水平上提供的額外深度受到了好評。我們希望大家都能將其視為更了解我們的基本核心成長和基本利潤率的一種方式。

And then I would just say also internally, we are working to improve our insight and foresight. We know that a good financial process that provides good foresight to what our forecast capability looks like also helps us to be credible in the financial space.

然後我只想在內部說，我們正在努力提高我們的洞察力和遠見。我們知道，良好的財務流程可以為我們的預測能力提供良好的遠見，也有助於我們在金融領域獲得可信度。

Specific to Q3, just a couple of points. I would say on the back of Paul's comment, the quarter did play out much like what we thought. Core growth aligned with our expectations are slightly better. We were particularly encouraged by several areas of improvement. Most of that we noted in our prepared remarks. North America diagnostics was one. Dental consumable sellout, ortho globally. And then the sequential trend that we've been seeing in North America, Nobel, still pockets obviously of market weakness. And I think the characterization of slow but stable is how we see it.

具體到第三季度，只有幾點。我想說的是，根據保羅的評論，本季的表現確實與我們的想法非常相似。核心成長與我們的預期相符，略好一些。我們對幾個方面的改進感到特別鼓舞。我們在準備好的發言中指出了其中大部分內容。北美診斷就是其中之一。全球牙科耗材銷售一空。然後，我們在北美看到的連續趨勢，諾貝爾，仍然存在明顯的市場疲軟。我認為緩慢但穩定的特徵就是我們所看到的。

Operationally, we performed well as well in Q3. I think price and free cash flow generation were two great examples of that. So net-net, Q3 was a good step on rebuilding our credibility. We obviously know that getting back to positive reported growth and improved margins is something we need to do. So getting the absolute value creation, if you will, of Envista.

在營運方面，我們在第三季表現良好。我認為價格和自由現金流的產生是兩個很好的例子。因此，第三季是重建我們信譽的良好一步。我們顯然知道，我們需要做的就是恢復正向成長和提高利潤率。因此，如果您願意的話，請獲得 Envista 的絕對價值創造。

Got it. And maybe just as a quick follow up, you guys talked about sort of inventory reductions that you guys are doing and sort of the improvement of working capital that comes with that. Maybe one, like sort of where is that opportunity and sort of how far through that opportunity are we in? If you could comment on the Q-over-Q change in that inventory dynamics, that would also be helpful. Thank you.

知道了。也許只是作為一個快速跟進，你們談到了你們正在做的庫存減少以及隨之而來的營運資本的改善。也許有一個，例如這個機會在哪裡，以及我們距離這個機會有多遠？如果您可以評論庫存動態中的季度環比變化，這也會有所幫助。謝謝。

Yeah, why don't I take the sort of the general approach here in terms of normalizing our channel inventory levels. And then Eric can talk specifically about inventory on our balance sheet and how that plays out in cash flow.

是的，我為什麼不在這裡採取一般方法來規範我們的通路庫存水準。然後埃里克可以具體談論我們資產負債表上的庫存以及它在現金流中的表現。

So the channel inventory piece, you know, this is a relic of the supply interruptions first in COVID, and then the sharp demand uptick post-COVID. In many parts of the supply chain, people added buffer inventory, and that's been taking a while to kind of work its way down.

因此，通路庫存部分，你知道，這是新冠疫情期間供應中斷，然後是新冠疫情之後需求急劇上升的結果。在供應鏈的許多環節，人們都增加了緩衝庫存，但這種情況需要一段時間才能下降。

We talked specifically about North American channel inventory, and I think that's well understood. But as Eric pointed out in his comments, it exists in multiple markets. And so there's still some work to go. We think that other participants in the market have a similar dynamic, and that is -- that might be contributing to the slower rebound of the dental market that there's still some buffer inventory to normalize.

我們專門討論了北美渠道庫存，我認為這是很好理解的。但正如埃里克在評論中指出的那樣，它存在於多個市場。所以還有一些工作要做。我們認為市場上的其他參與者也有類似的動態，那就是，這可能會導致牙科市場反彈速度放緩，因為仍有一些緩衝庫存需要正常化。

But Eric, you want to talk specifically about our balance sheet?

但是艾瑞克，你想具體談談我們的資產負債表嗎？

Yeah, I just took a couple points. So Elizabeth, I think maybe just to put a stake in the ground on one of the things in our prepared remarks, year-to-date cash flows, $179 million, up $55 million year over year, up almost 50%, I think, just as a starting point that shows the strength of our underlying performance.

是的，我只是說了幾點。所以伊麗莎白，我想也許只是為了我們準備好的發言中的一件事下注，今年迄今為止的現金流量為 1.79 億美元，同比增長 5500 萬美元，增長了近 50%，我認為，只是作為顯示我們潛在績效實力的起點。

We know it's a little bit challenging to sort of read through the net Spark deferral impact, but I think that's a helpful guide as you just sort of think about the underlying value creation at Envista. Most of that, so as we look at the year over year improvement, most of that is driven by strong working capital performance, and I would say disciplined CapEx.

我們知道，了解 Spark 延期的淨影響有點困難，但我認為這是一個有用的指南，因為您只需思考 Envista 的潛在價值創造。當我們看到逐年改善時，其中大部分是由強勁的營運資本績效所推動的，我想說的是嚴格的資本支出。

Within that, to your direct question, we've been roughly flat in working capital terms year over year. But we have made improvements in working capital terms and inventory. Last year, at this time we were at about 4.0. This year we're at about 4.3. We still see opportunity to deliver upwards there. But as we compare ourselves to sort of our peer groups and the market, I would say our current working capital position is good solid working capital foundation.

其中，對於您直接提出的問題，我們的營運資金比去年同期基本持平。但我們在營運資金條件和庫存方面取得了改進。去年這個時候我們的水準約為 4.0。今年我們的水準約為 4.3。我們仍然看到了向上交付的機會。但當我們將自己與同儕群體和市場進行比較時，我想說我們目前的營運資本狀況是良好且堅實的營運資本基礎。

Great, thank you so much.

太好了，非常感謝。

Jeff Johnson, Baird.

傑夫·約翰遜，貝爾德。

Thank you. Good afternoon, guys, and congratulations as well on the quarter. I wanted to focus on the Spark deferrals, $27 million this quarter, $11 million last quarter. I think, Eric, last quarter, when you and I talked inter-quarter anyway, it sounded like there were no catch-up provisions last quarter in the deferral rate.

謝謝。夥計們，下午好，也祝賀本季的業績。我想專注於 Spark 延期，本季 2700 萬美元，上季 1100 萬美元。我想，艾瑞克，上個季度，當你和我在季度間進行交談時，聽起來好像上個季度的遞延率沒有追趕條款。

So I guess I'd start with number one. Was there any catch-up provisions in this quarter? Was that $27 million deferred out of just the cases that were performed this quarter? Number one.

所以我想我會從第一個開始。本季是否有任何追趕條款？這 2700 萬美元是否僅從本季執行的案件中推遲？第一。

Number two, when I do the math on how many cases I think you did this quarter, and obviously I don't have a crystal ball on that, but it seems like you're deferring almost 35%, 40%, maybe even a little north of 40% of Spark revenue per case, which I just don't understand.

第二，當我計算一下你本季做了多少個案例時，顯然我沒有水晶球，但看起來你推遲了近 35%、40%，甚至可能是每個案例的Spark 收入僅佔40%，我只是不明白。

And then more importantly, how does the deferral rate change so much from 2Q to 3Q and then back down in 4Q? I would think you said a deferral rate that kind of takes four quarters anniversary through. So maybe just those three questions on the deferral would be helpful to hear out what the answer is.

更重要的是，延期利率如何從第二季到第三季變化如此之大，然後在第四季又回落？我認為您所說的延期率需要四個季度的時間才能完成。因此，也許僅關於延期的這三個問題就有助於了解答案。

Yeah, got it, Jeff. So let me first just start by level setting on Spark aligners as a business. And this is just kind of an overarching comment for everybody to be aligned with the solution. So for starters, you know this well, we sell Spark as a complete treatment solution. Important to note that consists of two things. So it consists of the initial shipment of aligners, and then it consists of the refinements.

是的，明白了，傑夫。首先讓我從 Spark 對準器業務的等級設定開始。這只是一種總體評論，讓每個人都與解決方案保持一致。首先，您很清楚這一點，我們將 Spark 作為完整的處理解決方案出售。需要注意的是，這由兩件事組成。因此，它包括矯正器的初始發貨，然後包括改進。

The refinements that come, if you will, after the initial shipment of aligners, if it's needed in the case. That's important. It's important to your question because we recognize a portion of the revenue on the initial shipment. We then recognize a portion of the revenue on that refinement experience, if you will.

如果您願意的話，在矯正器最初發貨之後，如果案件需要的話，將會進行改進。這很重要。這對你的問題很重要，因為我們確認了首次出貨的部分收入。然後，如果您願意，我們會確認該改善體驗帶來的部分收入。

To your first question of the three, we didn't have any change. You called it catch-up. There was no change in our deferral rate. There was no change in our timing as we went from Q2 to Q3. So no change there. I can just confirm that right away.

對於你的三個問題中的第一個問題，我們沒有任何改變。你稱之為追趕。我們的延期率沒有變化。從第二季到第三季度，我們的時間安排沒有改變。所以那裡沒有變化。我可以立即確認這一點。

To your point on the dollar progression by quarter, so we had about $10 million in Q2. We told you today we had about $27 million in Q3. And then just to give you a forward view, Q4 will be lower than Q3. It'll be on a similar level, call it, to Q2.

根據您關於按季度美元增長的觀點，我們在第二季度大約有 1000 萬美元。我們今天告訴過您，我們第三季的營收約為 2700 萬美元。然後，為了給您一個前瞻性的看法，第四季將低於第三季。它將處於與第二季度類似的水平。

The main reason why the impact was so large in third quarter is because of the makeup of the timing on our deferred revenue. So about a third of the Q3 impact was related to the initial recognition. So no major change from Q2. But about two-third was timing of the deferred revenue.

第三季影響如此之大的主要原因是我們遞延收入的時間組成。因此，第三季影響的大約三分之一與最初的認可有關。所以與第二季相比沒有重大變動。但大約三分之二是遞延收入的時間安排。

So when we made the change last quarter, we also made a change to the period that we're recognizing the deferred revenues over. And so that's why we had such a larger, call it, outsized impact in Q3 of this year.

因此，當我們上個季度進行更改時，我們也對確認遞延收入的期間進行了更改。這就是為什麼我們在今年第三季產生如此巨大的影響。

And then just to your point on case rates, I mean, you can kind of do the math based on our balance sheet and our deferred revenue. I'll let you do that one on your own. We won't sort of disclose that one publicly. Hopefully that helps maybe just as a forward view from there.

然後就您對案件發生率的觀點而言，我的意思是，您可以根據我們的資產負債表和遞延收入進行數學計算。我會讓你自己做這件事。我們不會公開披露這一點。希望這可能只是作為一個前瞻性的觀點有所幫助。

We have commented on the fact that all of this will catch itself up in the next 18 months, a portion of that in 2025. And I think really important just for the economics part of this, none of this impacts the economics of the business. Again, you see that in our strong cash flows in the quarter.

我們評論過這樣一個事實：所有這一切都將在未來 18 個月內迎頭趕上，其中一部分將在 2025 年實現。我認為對於其中的經濟部分來說非常重要，這些都不會影響企業的經濟。同樣，您可以在本季強勁的現金流中看到這一點。

That's great. If I can ask just one follow-up on all that and then I'll get back into you. Historically, we think of deferrals when they happen, they're typically going to be matched as you said to refinements later down the road. So while that revenue comes back on the income statement, which is helpful, it tends to be offset by refinement costs and things like that.

那太棒了。如果我能就所有這些問題提出一個後續問題，然後我會回覆你。從歷史上看，我們會在發生延期時考慮延期，它們通常會像您所說的那樣與以後的改進相匹配。因此，雖然該收入回到損益表中，這很有幫助，但它往往會被精煉成本等所抵消。

So out of this $27 million, especially when you said there was a one-third, two-third kind of split the way you described it in that, is any of that deferred revenue when it comes back onto the income statement, is it more likely to flow through at a higher incremental margin? Or is it more likely to be matched by period costs on refinements? And so we'll flow through it, let's say, whatever your normalized at that point Spark margin is? Thanks.

那麼，在這2700 萬美元中，特別是當你說有三分之一、三分之二的分割方式，就像你所描述的那樣，當遞延收入回到損益表時，是不是更多？或者是否更有可能與改進的期間成本相符？因此，我們將詳細介紹它，比方說，無論您此時的標準化 Spark 利潤率是多少？謝謝。

Yeah. Great follow-up, Jeff, thanks. So I think the way to think about it is a significant portion of the revenue impact drops down through gross margin dollars and operating profit dollars. That's both as we're seeing the lower revenue year over year, but that's also going to be same similar as the revenue comes back over the next 18 months.

是的。很棒的後續行動，傑夫，謝謝。因此，我認為考慮這個問題的方法是，收入影響的很大一部分是透過毛利率和營業利潤下降。這是因為我們看到收入逐年下降，但隨著收入在未來 18 個月內回升，情況也將相同。

Thank you.

謝謝。

Erin Wright, Morgan Stanley.

艾琳·賴特，摩根士丹利。

Great, thanks for taking the question. So you've been kind of at the company, I guess, six months now or so. And so I guess you're starting to see some traction with some of the initial growth investments. And has anything come to light in terms of the necessary investments you need to make in terms of what's been easier or harder kind of to address as we head into 2025?

太好了，感謝您提出問題。我想你已經在公司工作了六個月左右了。所以我猜你開始看到一些初始成長投資的吸引力。進入 2025 年，您需要進行哪些必要的投資，哪些問題更容易或更難解決？

And I guess what I'm trying to get at here is kind of what incremental investments are necessary into 2025? And how should we think about where margins are landing here, thanks.

我想我在這裡想了解的是 2025 年需要哪些增量投資？我們應該如何考慮利潤率在哪裡，謝謝。

So thanks, Erin, it's a good question. Let me answer it kind of generally, the first six months, have there been any surprises and then use that as a looking forward point for 2025.

所以謝謝艾琳，這是一個很好的問題。讓我籠統地回答一下，前六個月是否有任何意外，然後將其作為 2025 年的展望點。

The short answer on the first part of the question is, no, I would say writ large with a few minor adjustments, things have played out largely as expected. Eric and I have been in and around the market for a while. And so I think we knew both the opportunities and the challenges.

對問題第一部分的簡短回答是，不，我想說的是，經過一些細微的調整，事情基本上按照預期進行了。艾瑞克和我已經在市場裡待了一段時間了。因此，我認為我們既了解機遇，也了解挑戰。

Specifically, our thesis was that it's always been, remains, and will continue to be a structurally attractive market. Nothing I've seen in the first six months has suggested that's changed. Same for the portfolio. When Danaher put this together, they bought good businesses. From the outside, we suspected that they had been made better first through the Danaher business system and then through EBS.

具體來說，我們的論點是，它一直是、仍然是、並將繼續是一個結構上有吸引力的市場。在前六個月裡我所看到的一切都沒有表明這種情況發生了變化。投資組合也是如此。當丹納赫將這些整合在一起時，他們收購了優秀的企業。從外部來看，我們懷疑他們首先透過丹納赫業務系統，然後透過 EBS 變得更好。

Now having lived and breathed with these for the past two quarters, that's also true. For sure, the very nature of continuous improvement is that we have to keep making them better. But that's clearly a capability we have. So that played out.

在過去的兩個季度裡，我們一直與這些一起生活和呼吸，這也是事實。當然，持續改進的本質是我們必須不斷地讓它們變得更好。但這顯然是我們擁有的能力。這樣就完成了。

Coming in, of course, I knew that there were some senior leadership gaps that we had to fill. I've been pleased with both the caliber of the people that were attracting as well as how quickly those folks are getting up to speed.

當然，剛加入時，我知道我們必須填補一些高階領導職位的空缺。我對吸引人們的人才的能力以及他們跟上步伐的速度感到滿意。

And then I would say, you know, consistent with my earlier remarks, you know, I knew that from looking from the outside, I suspected that some of the really good operating discipline that the company had in the first years may have eroded a bit or lost focus a touch over the past two years. You know, I think we're being transparent with you that that has been the case and we're focused on rebuilding it.

然後我會說，你知道，與我之前的言論一致，你知道，我知道從外部來看，我懷疑公司在最初幾年所擁有的一些真正良好的運營紀律可能已經受到了一點侵蝕。過去的兩年有點失去焦點。你知道，我認為我們對你保持透明，事實就是如此，我們專注於重建它。

Now to your second question, what does that imply for 2025? You know, one of the things we're rebuilding is the reinvestment, not just in growth, but in there are operating rhythm, the relaunch of EBS, and also rebuilding our focus on longer term developing talent.

現在回答第二個問題，這對 2025 年意味著什麼？你知道，我們正在重建的事情之一是再投資，不僅僅是成長，還有營運節奏、EBS 的重新啟動，以及重新專注於長期發展人才。

All of those take energy, attention and resources, but all of those are high return investments. You're probably specifically asking about the $6 million-ish a quarter we've been putting in principally into Nobel, but as Eric mentioned, other businesses also.

所有這些都需要精力、注意力和資源，但所有這些都是高回報投資。您可能特別想問我們每個季度投入 600 萬美元左右的情況，主要是投入到 Nobel 項目上，但正如 Eric 提到的，其他業務也有投入。

You know, in high gross margin businesses, that will more than pay for itself. But we have to get the business to grow. You know, the easy math is if we get back to market growth, market gets back to the 3% to 4% to 5%, that it's had over time, and we match that, we will generate more additional gross margin dollars than we're investing to get that growth accelerated. So Eric and I have seen this movie before. And more often than not, it plays out favorably, but there's work to be done to make it real.

您知道，在高毛利率的業務中，這將遠遠超出其本身的成本。但我們必須讓業務成長。你知道，簡單的數學是，如果我們回到市場成長，市場隨著時間的推移回到3% 到4% 到5% 的水平，而我們與之匹配，我們將產生比我們更多的額外毛利率正在投資以加速成長。所以艾瑞克和我以前看過這部電影。通常情況下，它會取得良好的效果，但要使其成為現實，還有很多工作要做。

And a quick just follow up just on China, what you're seeing right now, where there are areas of strength versus weakness and how you're thinking about that market heading into 2025. Thanks.

快速跟進中國，您現在所看到的情況，其中的優勢領域和劣勢領域，以及您如何看待進入 2025 年的市場。謝謝。

Yeah. I mean, China, you always have to talk near and long-term. The second one is easier. We're firmly convicted that long-term it remains a very attractive market. Global players like us who think as much in the timeframe of quarter centuries as well as fiscal quarters, you just can't see winning long term without having a big presence in China. So we're focused on the long term and continuing to invest aggressively there.

是的。我的意思是，中國，你總是必須談論近期和長期。第二個比較容易。我們堅信，從長遠來看，它仍然是一個非常有吸引力的市場。像我們這樣的全球參與者，他們在四分之一個世紀和財政季度的時間範圍內思考得同樣多，如果不在中國擁有大量業務，你就看不到長期的勝利。因此，我們著眼於長期並繼續積極投資。

I would balance that with what we all know. Near term right now, volatility is high in China. There's high geopolitical volatility, which then impacts macroeconomic volatility. And then specific to dental, we have the [BVP] volatility.

我會根據我們都知道的情況來平衡這一點。目前，中國的波動性很大。地緣政治波動很大，進而影響宏觀經濟波動。然後具體到牙科，我們有 [BVP] 波動性。

So 2025, tough to see too far ahead, Erin. But I think in the near term, it'll still be a little bit turbulent, but we're undeterred. We'll continue investing in that market knowing that down the road, it will pay off.

所以 2025 年，很難看得太遠，艾琳。但我認為在短期內，情況仍然會有點動盪，但我們不會被嚇倒。我們將繼續投資該市場，因為我們知道，未來將會獲得回報。

Jon Block, Stifel.

喬恩·布洛克，斯蒂菲爾。

Great, thanks guys and good afternoon. I think implants moving to flat is sort of going to be the focal point for investors tomorrow. It's another quarter where you narrow the gap relative to market growth, which is certainly encouraging.

太好了，謝謝大家，下午好。我認為植入物向平板化將成為明天投資者關注的焦點。又一個季度，相對於市場成長的差距縮小了，這當然令人鼓舞。

So maybe just a couple of questions, Paul, any particular geographies that stood out for the implant turnaround or the implant improvement? Pardon me. And then you sort of alluded to the $6 million in answering a prior question, how do we think about those investments? In other words, do those wind down and cease exiting 2024? Or are those ongoing into 2025 as you see compelling returns? And then I'll just ask a follow-up.

保羅，也許只有幾個問題，有哪些特定地區在植體週轉或植體改進方面表現突出？對不起。然後您在回答先前的問題時提到了 600 萬美元，我們如何看待這些投資？換句話說，這些活動會在 2024 年逐漸結束並停止退出嗎？或者這些計劃會持續到 2025 年，因為您會看到令人信服的回報嗎？然後我會問後續情況。

All right. Let me take the two parts sequentially, starting with the geographic part of your question. In Europe, we have and continue to perform in line with market that the market's growing there as are we. Our gap has been in North America. And as you correctly inferred in your question, that gap has been closing.

好的。讓我按順序討論這兩部分，從你問題的地理部分開始。在歐洲，我們的表現已經並將繼續與市場保持一致，那裡的市場和我們一樣正在成長。我們的差距在北美。正如您在問題中正確推斷的那樣，這種差距已經縮小。

Outside of those two bigger markets, Latin America and East Europe are both good markets for us and both good markets, meaning the market grows and we grow in them. China's a little bit harder to read because of the BVP effect. Volume up quite a bit; price down quite a bit. But net-net, it has been favorable for us.

除了這兩個更大的市場之外，拉丁美洲和東歐對我們來說都是很好的市場，而且都是很好的市場，這意味著市場正在成長，我們也在其中成長。由於 BVP 效應，中國的內容有點難讀。音量調大一點；價格下降了不少。但淨淨，這對我們來說是有利的。

Now looking forward to 2025 and the second half of your question. We continue to -- we intend to continue investing not just in our implants business, but in growing all of the portfolio. We think we have good businesses in the right segments, all of which can profitably grow. And you have to invest in that to make it happen.

現在期待 2025 年和你問題的後半部。我們打算繼續投資，不僅投資於我們的植入業務，而且投資於擴大所有投資組合。我們認為我們在正確的領域擁有良好的業務，所有這些都可以實現獲利成長。你必須對此進行投資才能實現這一目標。

Now if the investment thesis proves true here, those are self-funding investments. And so, you know, that's what makes medtech such an interesting category and has made dental such a good investment over time. If you can get these businesses to grow and it's a securely growing category, you can afford to keep fueling that growth.

現在，如果投資論點在這裡被證明是正確的，那麼這些都是自籌資金的投資。所以，你知道，這就是醫療科技成為如此有趣的類別的原因，隨著時間的推移，也使牙科成為一項很好的投資。如果您能夠讓這些業務成長，並且這是一個安全成長的類別，那麼您就有能力繼續推動這種成長。

Now some of the very strong players in our market have done exactly that. And so it's a well-known model that we're working to rebuild.

現在我們市場上一些非常強大的參與者已經做到了這一點。因此，我們正在努力重建一個眾所周知的模型。

Got it. Very helpful. And then I guess it's the second question. It's a similar theme, which is overall margin improvement. So for Spark, you had some good growth. I thought I heard you mention, or Eric might have called out price realization, but I didn't hear anything about margin improvement.

知道了。非常有幫助。然後我想這是第二個問題。這是一個類似的主題，即整體利潤率的提高。因此，對於 Spark 來說，您取得了一些良好的成長。我想我聽到你提到過，或者埃里克可能已經提到了價格實現，但我沒有聽到任何關於利潤率改善的消息。

So are there any metrics you can point to in regards to Spark's gross margin, the trend line, or when we might be able to think about Spark moving to positive EBIT margin? Thanks.

那麼，您是否可以指出有關 Spark 毛利率、趨勢線的任何指標，或者我們何時可以考慮 Spark 實現正息稅前利潤率？謝謝。

Yeah, it's important. And you're correct. We talked about the growth side of the equation outgrew the market. We had double digit growth of ordering doctors, et cetera. I'm glad you asked about profitability. This, I think, Eric, correct me if I'm wrong, six straight quarters of gross margin improvement in Spark. And that gives us confidence. These gross margin improvements are following an organized manufacturing improvement schedule, an EDS approach that my predecessor executed very well. And we continue to do here.

是的，這很重要。你是對的。我們討論了等式的成長方面超過了市場的成長。我們的預約醫生等的數量增加了兩位數。我很高興您詢問盈利能力。我認為，Eric，如果我錯了，請糾正我，Spark 的毛利率連續六個季度提高。這給了我們信心。這些毛利率的提高遵循有組織的製造改進計劃，這是我的前任執行得非常好的 EDS 方法。我們將繼續在這裡做。

So we have good confidence in the continued margin improvement of Spark. And sometime in 2025, as we said, we expect it to cross over into operating margin positive.

因此，我們對 Spark 的利潤率持續改善充滿信心。正如我們所說，到 2025 年的某個時候，我們預計營業利潤率將變為正數。

Jon, I'll just add another point to that I think is important. So, of course, everything Pau said was spot on. We would love to have volume growth in the Spark business. We expect and we forecast to have volume growth in the Spark business.

喬恩，我想補充一點我認為很重要的一點。所以，當然，保羅所說的一切都是正確的。我們希望 Spark 業務的銷售量能夠成長。我們預計 Spark 業務的銷售量將會成長。

But importantly, our margin improvement efforts rely less on volume and much more on, call it, the end-to-end supply chain, the four walls of our manufacturing and internally our design process. So in my view as an operator, that's a great place to be, right? If we can get volume, that will be, of course, hugely beneficial. But we can get margin improvement, as Paul mentioned, just by being tighter in the operations that we have right in front of us.

但重要的是，我們的利潤率改善工作較少依賴數量，而更多地依賴端到端供應鏈、我們製造的四面牆以及我們內部的設計流程。因此，在我看來，作為一個運營商，這是一個很棒的地方，對吧？如果我們能夠獲得銷量，那當然是非常有益的。但正如保羅所提到的，我們可以透過更嚴格地管理眼前的業務來提高利潤率。

That was great. Thanks, guys.

那很棒。謝謝，夥計們。

Michael Cherny, Leerink Partners.

邁克爾·切爾尼，Leerink Partners。

Thank you so much for taking the question. Maybe if I can come back again to the investments you made, appreciate you calling out with the focus on Nobel. As you think going forward, given that you came to this business with a bit of a blank slate, how are you thinking about the right level of investments beyond here? What are the push and pulls you're going forward as you think about the reinvigoration of the product portfolio? And what will the early returns you've had from the Nobel investments teach you about how to scale or not scale those investments?

非常感謝您提出這個問題。也許如果我能再次回到你所做的投資，感謝你對諾貝爾獎的關注。當您展望未來時，考慮到您進入這個行業時還是一片空白，您如何考慮在此之外的適當投資水平？當您考慮重振產品組合時，推動您前進的動力和拉力是什麼？您從諾貝爾獎投資中獲得的早期回報將教您如何擴大或不擴大這些投資？

Yeah. Thanks, Michael. It's the right question. We think about two things in parallel. So we think about accelerating growth and we think about improving productivity and the two go hand in glove. So you have to pay for your growth. Part of that comes from productivity and part of it comes from the high margin nature of these businesses when they grow.

是的。謝謝，麥可。這是正確的問題。我們同時思考兩件事。因此，我們考慮加速成長，考慮提高生產力，兩者緊密結合。所以你必須為你的成長付出代價。其中一部分來自生產力，一部分來自這些企業發展時的高利潤率。

So as we look forward, this year was sort of a rebalancing year for us, where the investments to restart growth exceeded the incremental gross margin dollars that we generated from them. As Eric showed on the waterfall earlier, we are getting net productivity, almost a point of it in the quarter, which helped fund some of that investment. And now as our growth continues to accelerate, we expect those investments to be fully funded from our operating performance.

因此，正如我們展望的那樣，今年對我們來說是再平衡的一年，重啟成長的投資超過了我們從中產生的增量毛利率。正如埃里克早些時候在瀑布中所展示的那樣，我們正在獲得淨生產力，幾乎是本季度的一個點，這有助於為部分投資提供資金。現在，隨著我們的成長持續加速，我們預計這些投資將完全由我們的經營業績提供資金。

Thank you.

謝謝。

Kevin Caliendo, UBS.

凱文‧卡里恩多，瑞銀集團。

Hey, guys, thanks for taking my question. Really appreciate the Adjusted EBITDA bridge for 3Q. And just looking at your guidance for 4Q, we can sort of imply what the margin is going to be. It's certainly better than what it was in 4Q, but it's still not optimal.

嘿，夥計們，謝謝你提出我的問題。非常感謝第三季的調整後 EBITDA 橋樑。只需查看您對第四季度的指導，我們就可以暗示利潤率是多少。這肯定比第四季度的情況要好，但仍然不是最佳的。

And I'm just thinking about some of these things in the bridge that you provide us, and I'm just wondering maybe how they might change for 4Q. Maybe thinking about that as sort of a baseline for, as we enter into '25, you had productivity is a positive, net price is a positive.

我只是在考慮您為我們提供的橋樑中的一些內容，我只是想知道它們可能會如何在 4Q 中發生變化。也許將其視為一種基線，當我們進入 25 世紀時，生產力是積極的，淨價格也是積極的。

The Spark deferral certainly will be less based on what your commentary is. Can you just maybe talk about how to bridge the 4Q a little bit? I know you're not going to know exactly in all the specifics. But just generally speaking, it'll be really helpful to see how some of these line items change and how to think about it as going into 2025.

根據您的評論，Spark 延遲肯定會減少。能談談如何橋接 4Q 嗎？我知道您不會確切地了解所有細節。但一般來說，了解其中一些訂單項目如何變化以及如何看待 2025 年的變化將非常有幫助。

Got it. Kevin, thanks for the question. So yeah, so the good and the bad, if you will, on a third-quarter result and a guide is there's only one quarter left, right? So we can all do the math and use the guidance range. So I think what I would say for starters, and it's probably most of the material feedback is as we look forward, the Spark deferral.

知道了。凱文，謝謝你的提問。所以，是的，所以好的和壞的，如果你願意的話，在第三季的結果和指導上，只剩下四分之一了，對嗎？所以我們都可以計算並使用指導範圍。所以我想我首先要說的是，正如我們所期待的，Spark 延期可能是大部分材料反饋。

So as we move from Q3 2024 to Q4 2024, that $27 million in revenue impact that we talked about in the revenue bridge, which has, per Jeff's question, my comment, a fairly heavy fall through to the bottom line, that that's the single biggest item as we move from Q3 to Q4.

因此，當我們從2024 年第三季轉向2024 年第四季時，我們在收入橋樑中談到的2700 萬美元的收入影響，根據傑夫的問題，我的評論，這對底線來說是相當嚴重的下降，這就是唯一的當我們從第三季轉向第四季時，最大的項目。

And I'll just use it as another chance to remind the group here that we expect about a $10 million revenue year over year impact from Spark, call it, similar to Q2, that we do in Q4.

我將利用它作為另一個機會提醒這裡的小組，我們預計 Spark 的收入將比去年同期產生約 1000 萬美元的影響，類似於第二季度，我們在第四季度所做的。

Other major moving parts, I think seasonality. So seasonally, we have typically a better absolute volume and revenue quarter in Q4. We also called out on our, call, it other items, bridge of adjusted EBITDA that we had a larger transaction loss within Q3. If you have a way to guess or estimate FX, let me know. But we expect that to be certainly more muted in fourth quarter. To Paul's prior comment to the prior question, investment levels you can think of as going largely sideways, consistent level of investment as we go through them from Q3 into Q4.

我認為其他主要的變化因素是季節性的。因此，從季節性角度來看，我們通常在第四季度擁有更好的絕對銷售和收入季度。我們也對調整後 EBITDA 的其他項目表示不滿，表示我們在第三季出現了更大的交易損失。如果您有辦法猜測或估計外匯，請告訴我。但我們預期第四季這種情況肯定會更加溫和。對於保羅先前對前一個問題的評論，您可以認為投資水準在很大程度上是橫向的，當我們從第三季到第四季經歷投資水準時，投資水準是一致的。

And then we're not talking obviously today about 2025. We're not providing any guidance into the future. But the biggest thing we'll be talking about as we get to the end of fourth quarter is the estimate that we have for how that spark revenue impact in 2024 turns to a positive in 2025. Be mindful that it's over 18 months, not just 12 months.

然後我們今天顯然不是在談論 2025 年。我們不會為未來提供任何指導。但到第四季末時，我們要討論的最重要的事情是我們對 2024 年收入影響如何在 2025 年轉變為正面影響的估計。請注意，這是超過 18 個月的時間，而不僅僅是 12 個月。

Fair enough. And if I can ask a quick follow-up. Erin asked about, now that you've been there, about the investments that you're making. I'm going to ask it a little differently. Now that you've been there and you've looked at your product portfolio, I think originally there were some comments around implants and maybe what you could do there. But are you happy with your product portfolio now? Is there somewhere that you might want to invest outside, acquire certain products, divest certain product lines? Is there anything more to do there or areas that you think that there's opportunities?

很公平。如果我可以要求快速跟進。既然你已經到了那裡，艾琳問起你正在進行的投資。我會以不同的方式問它。現在您已經去過那裡並查看了您的產品組合，我認為最初有一些關於植入物的評論以及也許您可以在那裡做什麼。但您現在對您的產品組合滿意嗎？您是否想對外投資、收購某些產品、剝離某些產品線？那裡還有什麼可做的或您認為有機會的領域嗎？

Why don't I take this one. And I'll answer it short term and long term. Short term, the company has been working on this portfolio now for coming up on 20 years and it's good. We're happy with the categories that we have and we don't have any near-term intention to make significant changes to the portfolio.

我為什麼不拿這個。我將回答短期和長期的問題。短期來看，該公司在接下來的 20 年裡一直致力於這個產品組合，這很好。我們對現有的類別感到滿意，且短期內沒有對投資組合進行重大改變的意圖。

Medium and longer term, though, this is a dynamic category. And the clinical needs are always moving forward, competition is always moving forward, and our customers are always moving forward. And if there's one thing I've learned over time in medtech is that if you take your eyes off the forest for too long, one day you walk into, the map no longer matches. So we're constantly refining and honing our portfolio. And we put a lot of energy into that.

不過，從中長期來看，這是一個動態類別。臨床需求總是在前進，競爭總是在前進，我們的客戶也總是在前進。如果說我在醫療科技領域隨著時間的推移學到了一件事的話，那就是，如果你的視線離開森林太久，有一天你走進去，地圖就不再匹配了。因此，我們不斷完善和完善我們的產品組合。我們為此投入了大量精力。

Thank you so much.

太感謝了。

(Operator Instructions)

（操作員說明）

Brandon Vazquez, William Blair.

布蘭登·巴斯克斯，威廉·布萊爾。

Hi, everyone. Thanks for taking the question. I just wanted to stick on the implants for a second, maybe to help us understand a little bit of what things are and aren't working. Maybe just talk a little bit about comparing the implant organization today to what it was a year ago, right? Where have you made significant investments? And what specific investments are starting to really pay off? And I have a follow-up on implants as well.

大家好。感謝您提出問題。我只是想在植入物上停留一秒鐘，也許可以幫助我們了解一些東西正在起作用和不起作用。也許只是談談今天的種植組織與一年前的比較，對嗎？您在哪些方面進行了重大投資？哪些具體投資開始真正獲得回報？我也對植入物進行了跟進。

Yeah. The investments follow along three different time horizons. Those that have the most immediate effect and that, I think, we can see impact already from. Those in a middle tier, which are more of a medium term return. And then those are a third group that are longer term.

是的。這些投資遵循三個不同的時間範圍。那些具有最直接影響的項目，我認為我們已經可以看到影響。那些處於中間層，更多的是中期回報。第三組是長期的。

Now the first group are commercial investments. So this is refilling vacant territories, doing near-term customer events, et cetera. The lion's share of the investments here to date have been in that category. And as we talked about, the closing of the gap to market in North America, we think, is directly connected with that investment.

現在第一組是商業投資。因此，這是填補空缺區域、舉辦近期客戶活動等等。迄今為止，這裡的大部分投資都屬於這一類別。正如我們所討論的，我們認為北美市場差距的縮小與該投資直接相關。

The middle term is more clinical in nature. Patient education or customer education and the different events we run for that. We're starting to see a bit of improvement in that regard.

中期本質上更加臨床。病患教育或客戶教育以及我們為此舉辦的不同活動。我們開始看到這方面有所改善。

And then the third is new product development. And in the implants category, that can be a couple years to get the product developed and then a couple years for it to generate momentum in the market.

第三是新產品開發。在植入物類別中，產品開發可能需要幾年時間，然後需要幾年時間才能在市場上產生動力。

I'd also remind people that the gentleman we selected to lead Nobel Biocare, Stefan Nilsson, comes from the industry. He built the largest DSO in Europe. And so he has a very unique perspective on what customers need, both clinicians and multi-site operators, from an implant solution. And that's been a very powerful addition to our understanding of the market. And so we're pleased to have Stefan on board.

我還要提醒人們，我們選出的領導 Nobel Biocare 的先生 Stefan Nilsson 來自這個行業。他建造了歐洲最大的 DSO。因此，他對於臨床醫生和多站點操作員等客戶對植體解決方案的需求有著非常獨特的視角。這對我們對市場的了解是一個非常強大的補充。因此，我們很高興 Stefan 加入。

Okay, great, thanks. And then on implants as well, I think in the slide deck, it said that value implants in North America were up, I believe, in single digits. Just curious if you could comment on how premium is doing as well. As you guys are making comments that the gap is closing on the implant side in North America, is that for both the Nobel side and the value side, or more so the value? Just any commentary between the two segments and how they're performing? Thanks.

好的，太好了，謝謝。然後在植入方面，我認為在幻燈片中，它說北美的價值植入增長了，我相信，是個位數。只是好奇您能否評論一下溢價的表現。當你們評論說北美植入方面的差距正在縮小時，這是諾貝爾獎方面和價值方面的差距，還是價值方面的差距更大？這兩個部分之間以及它們的表現有何評論？謝謝。

Yes, I'd say three things. First, you heard correctly. Value now is posted three consecutive quarters of growth. Secondly, value does continue to grow more quickly than premium. Both segments of the market, though, do grow. And we're encouraged by that. We're making progress in both.

是的，我想說三件事。首先，你沒聽錯。目前價值已連續三季成長。其次，價值的成長速度確實快於溢價。不過，這兩個市場領域都在成長。我們對此感到鼓舞。我們在這兩方面都取得了進展。

And then the third piece of it, specific to North America for Nobel. We've now seen a couple quarters in a row where our quarter-over-quarter growth has accelerated. Still below the market, but again, closing that gap, which gives us confidence that we'll be able to return to growth in North American implants, which will go back to several of the preceding questions. That's when that business really starts to generate nice economics. And this funding model works more smoothly.

然後是第三部分，具體針對北美諾貝爾獎。我們現在已經連續幾個季度看到我們的季度環比增長加速。仍然低於市場，但再次縮小了這一差距，這讓我們有信心我們將能夠恢復北美植入物的成長，這將回到前面的幾個問題。那時該業務才真正開始產生良好的經濟效益。而且這種融資模式運作起來更加順利。

Vik Chopra, Wells Fargo.

維克喬普拉，富國銀行。

Hey, good afternoon and thank you for taking the questions. Congrats on a nice quarter. Apologies if this has already been asked but I'm bouncing around. So two questions to me. One, maybe just talk about how you're thinking about the forward trajectory of the dental market which is clearly being pressured in the US. What's your visibility into a dental market recovery as you move into next year? And then I had a follow-up, thanks.

嘿，下午好，感謝您提出問題。恭喜您度過了一個美好的季度。如果已經有人問過這個問題，我很抱歉，但我正在四處走動。所以向我提出兩個問題。第一，也許只是談談您如何看待牙科市場的未來軌跡，該市場在美國顯然受到了壓力。進入明年，您對牙科市場復甦的看法如何？然後我進行了後續行動，謝謝。

Thanks for the question, Vik, and welcome to the coverage universe. Your question has not been asked, so we're grateful for it. Dental market looking forward, I'd say two things. One, a lot of people on this call have been following dental for many years. And over time, pick any five-year period, it's typically a 3%, 4%, 5% grower globally. My best guess of normalized growth for the global dental market is still in that range.

感謝維克提出的問題，歡迎來到報道領域。您的問題尚未被提出，因此我們對此表示感謝。展望牙科市場，我想說兩件事。第一，這次電話會議中的許多人多年來一直關注牙科。隨著時間的推移，無論選擇任何五年期，全球範圍內的成長率通常為 3%、4%、5%。我對全球牙科市場正常成長的最佳猜測仍然在這個範圍內。

Now, I've been taught early that you can give people a number or you can give them a date, but don't give them both. I don't know when the dental market will fully normalize. I mentioned a couple of the early indicators that people watch. People watch from the clinical perspective. They look at a couple of things. Look at patient traffic in general dentistry. That remains stable. Of course, they look at case starts in orthodontics and they'll take consultations in implants. All of those are sort of flattish, not picking up yet.

現在，我很早就被告知，你可以給人們一個電話號碼，也可以給他們一個約會，但不要同時給他們兩個。我不知道牙科市場什麼時候才能完全正常化。我提到了人們關注的一些早期指標。人們從臨床的角度來觀察。他們關注幾件事。看看一般牙科的病人流量。這保持穩定。當然，他們會研究矯正方面的案例，並會進行種植方面的諮詢。這一切都有點平淡，還沒有回升。

And then there's the macro indicators. There's, of course, interest rates are important for this category, both because some equipment gets financed, but also because additional clinic ads are typically financed. You know, on other calls of participants in the sector, they've tried to figure out how much interest rate over how long leads to a market growth.

然後是宏觀指標。當然，利率對於這個類別很重要，不僅因為一些設備得到資助，而且還因為額外的診所廣告通常得到資助。你知道，在該行業參與者的其他呼籲中，他們試圖弄清楚在多長時間內利率多少會導致市場成長。

I'm not that smart, but I think generally the two are correlated. And then, of course, GDP and consumer confidence are other good macro indicators. We had a decent GDP print today. I think that's encouraging. Consumer confidence depends on what your starting point is. If your starting point is not July, it's ticked up modestly. If your starting point is pre-COVID, it's still got a ways to go.

我不是那麼聰明，但我認為通常這兩者是相關的。當然，GDP 和消費者信心也是其他好的宏觀指標。今天我們得到了不錯的 GDP 數據。我覺得這令人鼓舞。消費者信心取決於你的出發點是什麼。如果你的起點不是七月，那麼它會適度上升。如果您的起點是新冠疫情之前，那麼還有很長的路要走。

Thank you for that comprehensive answer. My second question is have you seen any impact as a result of the recent hurricanes? You know, have you seen procedures move to into 4Q and then any impact from safety shortages? Thank you so much.

感謝您的全面回答。我的第二個問題是，您是否看到最近的颶風造成了任何影響？您知道，您是否看到程序進入第四季度，然後出現安全短缺的影響？太感謝了。

From the hurricanes. Is that right, Vik?

來自颶風。是這樣嗎，維克？

Yeah.

是的。

So I'd say, yes. We have a lot of customers in Florida and the southeast. And it's been hard. A lot of them had their clinics closed. A lot of them have had damage to their equipment, et cetera. So for the folks who live in that part of the world, our heart goes out to them, trying to do whatever we can to help them get going again.

所以我會說，是的。我們在佛羅裡達州和東南部有很多客戶。這很困難。他們中的許多人的診所都關閉了。他們中的許多人的設備等都受到了損壞。因此，對於生活在世界那個地區的人們，我們的心與他們同在，盡我們所能幫助他們重新出發。

But we're a global business. And as difficult as the Southeast has been for our customers, it's not a material effect on the Envista side.

但我們是一家全球性企業。儘管東南地區對我們的客戶來說很困難，但這對 Envista 方面並沒有產生實質影響。

And there are no further questions on the line at this time. I will turn the program to Paul Keel for any additional or closing remarks.

目前線路上沒有其他問題。我會將節目轉交給保羅·基爾（Paul Keel）以獲取任何補充或結束語。

Okay. Okay, well thanks everyone for tuning in. We appreciate taking the time. As we mentioned in our prepared comments, we're pleased with our result in the quarter coming in largely as expected.

好的。好的，謝謝大家的收聽。我們非常感謝您抽出時間。正如我們在準備好的評論中所提到的，我們對本季的業績基本上符合預期感到滿意。

And I would say in addition to that, more broadly that, as we talked about on our Q2 earnings call, Envista is a fundamentally good company with leading positions in what we think are some of the best segments of what has proven to be a pretty good market over time.

除此之外，我想說的是，更廣泛地說，正如我們在第二季財報電話會議上所討論的那樣，Envista 是一家從根本上來說是一家優秀的公司，在我們認為已被證明是相當好的一些最佳領域中處於領先地位。

The company has good high gross margins, good cash flow, a strong balance sheet. And underpinning all of this, we have a positive culture centered on performance, inclusion, and continuous improvement. So the core building blocks to success are in place and our focus now is on generating better and more consistent performance from this foundation.

該公司擁有良好的高毛利率、良好的現金流、強勁的資產負債表。作為這一切的基礎，我們擁有以績效、包容性和持續改善為中心的正向文化。因此，成功的核心建置模組已經就位，我們現在的重點是在此基礎上產生更好、更一致的效能。

Now, our first step in this direction was reinstating 2024 guidance at more credible levels. Now, we did this in Q2. And a second of many steps is to more consistently do what we say, and we hope there's evidence of that here in Q3.

現在，我們朝著這個方向邁出的第一步是在更可信的水平上恢復 2024 年指引。現在，我們在第二季做到了這一點。許多步驟中的第二個是更一致地按照我們所說的去做，我們希望在第三季有證據證明這一點。

Now, having said all that, we still have much work to do in order to perform at a level consistent with our capabilities. But we are encouraged by the pace of improvement over the last six months and are eager to build on this momentum moving forward.

現在，話雖如此，為了達到與我們的能力相符的水平，我們仍然有很多工作要做。但我們對過去六個月的改善速度感到鼓舞，並渴望在這股勢頭的基礎上繼續前進。

So with that, I'll wrap it up and again, thank everyone for joining us today and for your continued help and support. Have a great day and a good week. Thank you.

因此，我將結束本次演講，並再次感謝大家今天加入我們，並感謝大家持續的幫助和支持。祝你有美好的一天和美好的一周。謝謝。

This does conclude today's program. Thank you for your participation and you may now disconnect.

今天的節目到此結束。感謝您的參與，您現在可以斷開連接。