Orthofix Medical Inc (OFIX) 2022 Q4 法說會逐字稿

Good afternoon, and welcome to Orthofix Medical's Q4 and Full Year 2022 Earnings Call. (Operator Instructions) As a reminder, this conference call is being recorded. I would now like to turn the call over to Alexa Huerta, Senior Director of Investor Relations. Thank you. Please go ahead.

下午好，歡迎來到 Orthofix Medical 的第四季度和 2022 年全年收益電話會議。 （操作員說明）作為提醒，正在錄製此電話會議。我現在想把電話轉給投資者關係高級總監 Alexa Huerta。謝謝。請繼續。

Thank you, operator, and good afternoon, everyone. Welcome to the Orthofix Fourth Quarter 2022 Earnings Call. Joining me on the call today are President and Chief Executive Officer, Keith Valentine; and Chief Financial Officer, John Bostjancic; as well as our Executive Chairman of the Board and Orthofix's Former Chief Executive Officer, John Serbousek; and Former Chief Financial Officer, Doug Rice.

謝謝接線員，大家下午好。歡迎來到 Orthofix 2022 年第四季度財報電話會議。今天和我一起參加電話會議的有總裁兼首席執行官 Keith Valentine；首席財務官 John Bostjancic；以及我們的董事會執行主席和 Orthofix 的前首席執行官 John Serbousek；和前首席財務官 Doug Rice。

During this call, we will be making forward-looking statements that involve risks and uncertainties. All statements other than those of historical facts are forward-looking statements, including any financial guidance we provide and any statements about our plans, beliefs, strategies, expectations, goals or objectives. Investors are cautioned not to place undue reliance on such forward-looking statements as there is no assurance that the matter contained in such statements will occur. The forward-looking statements we will make on today's call are based on our beliefs and expectations as of today, March 6, 2023.

在此次電話會議中，我們將做出涉及風險和不確定性的前瞻性陳述。除歷史事實之外的所有陳述都是前瞻性陳述，包括我們提供的任何財務指導以及關於我們的計劃、信念、戰略、期望、目標或目標的任何陳述。告誡投資者不要過分依賴此類前瞻性陳述，因為無法保證此類陳述中包含的事項將會發生。我們將在今天的電話會議上做出的前瞻性陳述是基於我們截至 2023 年 3 月 6 日的信念和預期。

We do not undertake any obligation to revise or update such forward-looking statements. Some factors that could cause actual results to be materially different from the forward-looking statements made by us on the call include the risk factors disclosed under the heading Risk Factors in our Form 10-K for the year ended December 31, 2022, filed this afternoon, March 6, 2023 as well as additional SEC filings we make in the future. If you need copies of these documents, please contact my office at Orthofix in Lewisville, Texas.

我們不承擔任何修改或更新此類前瞻性陳述的義務。可能導致實際結果與我們在電話會議上所做的前瞻性陳述存在重大差異的一些因素包括我們在截至 2022 年 12 月 31 日的 10-K 表格中風險因素標題下披露的風險因素，提交本報告2023 年 3 月 6 日下午以及我們將來向美國證券交易委員會提交的其他文件。如果您需要這些文件的副本，請聯繫我在德克薩斯州路易斯維爾 Orthofix 的辦公室。

In addition, on today's call, we will refer to various non-GAAP financial measures. We believe that in order to properly understand our short-term and long-term financial trends, investors may wish to review these measures as a supplement to the financial measures determined in accordance with U.S. GAAP. Please refer to today's press release announcing our fourth quarter and full year 2022 results for reconciliations of these non-GAAP financial measures to our U.S. GAAP financial results.

此外，在今天的電話會議上，我們將參考各種非 GAAP 財務指標。我們認為，為了正確理解我們的短期和長期財務趨勢，投資者不妨審查這些措施，作為對根據美國公認會計原則確定的財務措施的補充。請參閱今天公佈我們第四季度和 2022 年全年業績的新聞稿，了解這些非 GAAP 財務措施與我們美國 GAAP 財務業績的對賬。

We will begin today's call with commentary from Keith Valentine and John Bostjancic on standalone SeaSpine fourth quarter results, followed by Jon Serbousek and Doug Rice, who will speak to the standalone Orthofix fourth quarter results. Keith will conclude the call with information on the newly combined company, including 2023 revenue guidance and some additional future-looking commentary from Orthofix.

我們將以 Keith Valentine 和 John Bostjancic 對獨立 SeaSpine 第四季度業績的評論開始今天的電話會議，隨後 Jon Serbousek 和 Doug Rice 將對獨立 Orthofix 第四季度業績發表評論。 Keith 將在電話會議結束時提供有關新合併公司的信息，包括 2023 年收入指引和 Orthofix 的一些其他前瞻性評論。

At this point, I will turn the call over to Keith.

在這一點上，我會把電話轉給基思。

Thank you, Alex, and thank you, everyone, for joining us this afternoon. Before we get into each company's standalone results, I'd like to take a moment to highlight the recent closing of the merger of equals between Orthofix and SeaSpine. This merger significantly advances our objective to become a surgeon's partner of choice in their efforts to increase patient mobility and quality of life. Together, we will continue to develop creative, quality-driven procedural solutions through expanded commercial access and commitment to innovation.

謝謝 Alex，也謝謝大家今天下午加入我們。在我們了解每家公司的獨立業績之前，我想花點時間強調一下 Orthofix 和 SeaSpine 之間最近結束的對等合併。此次合併顯著推進了我們的目標，即成為外科醫生的首選合作夥伴，以提高患者的活動能力和生活質量。我們將通過擴大商業准入和對創新的承諾，共同繼續開發創新的、以質量為導向的程序解決方案。

The new Orthofix has an improved profile of scale, growth and potential operating leverage in addition to a highly complementary portfolio, expanded commercial reach and the capacity to make meaningful investments in organic and inorganic innovation. We believe our comprehensive product offering puts us in a highly differentiated position in the spine market by combining lead bone growth therapies enabling technologies, spinal fixation, motion preservation and biologics. We see this combined company as a transformative organization in the musculoskeletal space that will address unmet clinical needs to improve the lives of patients worldwide.

新的 Orthofix 除了高度互補的產品組合、擴大的商業範圍以及對有機和無機創新進行有意義的投資的能力外，還改善了規模、增長和潛在運營槓桿的情況。我們相信，通過結合領先的骨生長療法支持技術、脊柱固定、運動保護和生物製劑，我們全面的產品組合使我們在脊柱市場處於高度差異化的地位。我們將這家合併後的公司視為肌肉骨骼領域的一家變革性組織，它將解決未滿足的臨床需求，以改善全球患者的生活。

Turning to the results. SeaSpine had a strong year marked by the consistent execution of our growth strategy, capturing a market share and the announcement of the pivotal merger with Orthofix. We are excited by the momentum coming out of our fourth quarter results and the work our teams have done since the business combination on January 5. SeaSpine's revenue for the fourth quarter was $63.4 million, representing 14% growth over the prior year. Additionally, we posted full year revenue of $237.5 million, up 24% year-over-year.

轉向結果。 SeaSpine 在這一年表現強勁，我們始終如一地執行我們的增長戰略，奪取了市場份額，並宣布與 Orthofix 進行關鍵合併。我們對第四季度業績的強勁勢頭以及自 1 月 5 日業務合併以來我們團隊所做的工作感到興奮。SeaSpine 第四季度的收入為 6340 萬美元，比去年同期增長 14%。此外，我們公佈的全年收入為 2.375 億美元，同比增長 24%。

U.S. Spinal Implants and Orthobiologics revenue grew 23% and 20%, respectively, in the fourth quarter over the prior year. Primarily from new products and expanded distribution as a result of our efforts in recent years to partner with larger, more focused distributors. As for the enabling technologies platform, we placed 30 units of the 70 surgical flash navigation systems throughout 2022, achieved our 100th unit placement milestone and expanded our installed base into 6 new countries, a testament to our commitment for increased competitiveness global markets. In the fourth quarter placed a record 12 units, 5 in the U.S. and 7 outside the U.S. Of those placed in the U.S., 3 were earn-out arrangements, the largest quarterly placement of earn-outs since we acquired the technology.

美國脊柱植入物和 Orthobiologics 收入在第四季度分別比去年同期增長 23% 和 20%。主要來自新產品和擴大分銷，這是我們近年來努力與更大、更專注的分銷商合作的結果。至於支持技術平台，我們在整個 2022 年放置了 70 個手術閃光導航系統中的 30 個，實現了我們的第 100 個單位放置里程碑，並將我們的安裝基地擴展到 6 個新國家，這證明了我們致力於提高全球市場競爭力的承諾。第四季度創紀錄地放置了 12 個單位，其中 5 個在美國，7 個在美國以外。在美國放置的單位中，有 3 個是盈利安排，這是自我們獲得該技術以來最大的季度安置。

As you may recall, these earn-out agreements are a capital-efficient way for hospital systems to acquire a 70 unit in return for a minimum annual contractual revenue commitment for our Spinal Implant or Biologics products for 3 to 4 years, typically at a rate of $600,000 to $800,000 per year. To date, we have executed 7 earn-outs that represent approximately $4 million in aggregate annual revenue commitments.

您可能還記得，這些賺取協議是醫院系統獲得 70 個單位的資本效率方式，以換取我們的脊柱植入物或生物製品產品 3 至 4 年的最低年度合同收入承諾，通常按每年 600,000 至 800,000 美元。迄今為止，我們已經執行了 7 項盈利計劃，年收入承諾總額約為 400 萬美元。

I'd also like to call out the company's successful execution of further portfolio expansion through differentiated solutions across a broad spectrum of products and services in the fourth quarter. Such as the launch of the first component of our Insights Suite planning software for preoperative screw planning and the full commercialization of our percutaneous procedure support software enabled through the 70 flash navigation system. Additionally, we recently announced the full commercial launch and first patient cases of Mariner deformity system, which was built upon the strength and versatility of SeaSpine's modular Mariner pedicle screw system to address the unique clinical requirements of complex adult deformity spine cases while also reducing the number of surgical trays in the operating room suite.

我還想指出公司在第四季度通過跨廣泛產品和服務的差異化解決方案成功執行了進一步的產品組合擴展。例如，我們推出了用於術前螺釘規劃的 Insights Suite 規劃軟件的第一個組件，以及通過 70 閃光導航系統實現了我們的經皮手術支持軟件的全面商業化。此外，我們最近宣布了 Mariner 畸形系統的全面商業發布和首例患者病例，該系統建立在 SeaSpine 模塊化 Mariner 椎弓根螺釘系統的強度和多功能性之上，以滿足複雜的成人畸形脊柱病例的獨特臨床需求，同時也減少了數量手術室套件中的手術托盤。

These portfolio advancements are indicative of our commitment to restoring mobility and quality of life to patients. And we are very much looking forward to further integrating the 2 highly complementary organizations to establish an industry leader in spine and orthopedic technology.

這些產品組合的進步表明我們致力於恢復患者的活動能力和生活質量。我們非常期待進一步整合這兩個高度互補的組織，以建立脊柱和骨科技術的行業領導者。

I will now turn the call over to John Bostjancic to review the standalone SeaSpine financial results for the fourth quarter and full year 2022.

現在，我將把電話轉給 John Bostjancic，以審查 SeaSpine 2022 年第四季度和全年的獨立財務業績。

Thanks, Keith, and good afternoon, everyone. As Keith noted earlier, SeaSpine's total revenue for the fourth quarter of 2022 was $63.4 million a 14% increase over the prior year. In the U.S., we posted 16% growth. U.S. Spinal Implant and Enabling Technologies revenue in the fourth quarter increased 12%. Within that category, U.S. Spinal Implant revenue increased by more than 23%. Products launched or enhanced the line extensions within the past 5 years continue to grow revenue and accounted for 82% of U.S. Spinal Implant revenue in the fourth quarter of 2022.

謝謝，基思，大家下午好。正如 Keith 之前指出的那樣，SeaSpine 2022 年第四季度的總收入為 6340 萬美元，比上年增長 14%。在美國，我們實現了 16% 的增長。第四季度美國脊柱植入物和支持技術收入增長 12%。在該類別中，美國脊柱植入物收入增長超過 23%。在過去 5 年內推出或增強產品線擴展的產品收入繼續增長，佔 2022 年第四季度美國脊柱植入物收入的 82%。

International's Spinal Implant sales were down 57% in the fourth quarter due to our recent exit from the European Spinal Implant market in the third quarter of 2022. U.S. Biologics revenue in the fourth quarter increased 20% and continues to be driven by growth in the OsteoStrand Plus Demineralized Bone Fibers product family. Our U.S. Spinal Implant surgery volumes increased 23% compared to the fourth quarter of 2021, while revenue per case increased 4% compared to the prior year. Utilization of our Spinal Implant systems and orthobiologics products increased over 9% to 2.3% per procedure in the fourth quarter of 2022 compared to 2.1% a year ago. We experienced mid-single-digit average price declines in spinal implants and no price declines in Biologics.

由於我們最近於 2022 年第三季度退出歐洲脊柱植入物市場，第四季度國際脊柱植入物銷售額下降了 57%。第四季度美國生物製劑收入增長了 20%，並繼續受到 OsteoStrand 增長的推動Plus 脫礦骨纖維產品系列。與 2021 年第四季度相比，我們在美國的脊柱植入手術量增長了 23%，而每例收入與去年同期相比增長了 4%。與一年前的 2.1% 相比，2022 年第四季度，我們的脊柱植入系統和骨科生物產品的使用率增加了 9% 以上，達到 2.3%。我們經歷了脊柱植入物的中個位數平均價格下降，而生物製品的價格沒有下降。

As a reminder, the substantial majority of SeaSpine's revenue was generated in U.S. dollars, so foreign currency exchange rate changes did not have any meaningful impact on our reported growth rates. GAAP gross margin for the fourth quarter of 2022 was 62.5% compared to 53.7% for the fourth quarter of 2021. Adjusted gross margin was 64% for the fourth quarter of 2022 compared to 61.8% for the fourth quarter of 2021. The increase in adjusted gross margin was primarily due to the greater relative growth in higher gross margin domestic Spinal Implants revenue, the reduction in OUS Spinal Implants revenue as a result of the recent European market exit and continued efficiencies realized in the manufacturing of our Biologics product lines.

提醒一下，SeaSpine 的絕大部分收入都是以美元產生的，因此外幣匯率變化對我們報告的增長率沒有任何有意義的影響。 2022 年第四季度的 GAAP 毛利率為 62.5%，而 2021 年第四季度為 53.7%。調整後的毛利率在 2022 年第四季度為 64%，而 2021 年第四季度為 61.8%。調整後的增長毛利率主要是由於較高毛利率的國內脊柱植入物收入的相對增長，由於最近退出歐洲市場導致 OUS 脊柱植入物收入減少以及我們的生物製品產品線製造持續提高效率。

Operating expenses for the fourth quarter of 2022 totaled $59.8 million, a $10.9 million increase compared to the fourth quarter of 2021. The increase in operating expenses was driven primarily by $5.3 million in higher selling and marketing expenses attributable to increased commissions and freight and logistics costs associated with the revenue growth and $5.2 million in higher general and administrative expenses due primarily to increased headcount-related compensation expenses, increased legal and other professional fees incurred in preparation for the merger with Orthofix.

2022 年第四季度的運營費用總計 5980 萬美元，比 2021 年第四季度增加 1090 萬美元。運營費用的增加主要是由於佣金以及運費和物流成本增加導致銷售和營銷費用增加 530 萬美元與收入增長相關，一般和行政費用增加 520 萬美元，這主要是由於與 Orthofix 的合併準備過程中與員工相關的補償費用增加，法律和其他專業費用增加。

Net loss for the fourth quarter of 2022 was $19 million compared to a net loss of $18.8 million for the fourth quarter of 2021. Adjusted EBITDA loss for the fourth quarter of 2022 was $5.7 million, an improvement compared to a loss of $6.7 million for the fourth quarter of 2021. Adjusted gross margin and adjusted EBITDA loss are non-GAAP financial measures that we believe provide valuable information on our operating results by facilitating comparability of our core operating performance from period to period and against other companies in our industry.

2022 年第四季度的淨虧損為 1900 萬美元，而 2021 年第四季度的淨虧損為 1880 萬美元。2022 年第四季度的調整後 EBITDA 虧損為 570 萬美元，與 2022 年第四季度的虧損 670 萬美元相比有所改善2021 年第四季度。調整後的毛利率和調整後的 EBITDA 損失是非 GAAP 財務指標，我們認為它們通過促進我們的核心經營業績與我們行業的其他公司之間的可比性，為我們的經營業績提供有價值的信息。

The calculation of adjusted gross margin and a reconciliation of GAAP net loss to adjusted EBITDA loss are presented in the financial tables of the press release we issued this afternoon. Cash and cash equivalents on December 31, 2022, totaled $29 million and included $26 million of outstanding borrowings under the SeaSpine credit facility, which we subsequently paid off in full on January 5 in connection with the merger with Orthofix.

調整後毛利率的計算以及 GAAP 淨虧損與調整後 EBITDA 虧損的對賬在我們今天下午發布的新聞稿的財務表格中進行了介紹。 2022 年 12 月 31 日的現金和現金等價物總計 2900 萬美元，其中包括 SeaSpine 信貸額度下的 2600 萬美元未償還借款，我們隨後在 1 月 5 日因與 Orthofix 的合併而全額還清了這些借款。

Our free cash flow burn, which includes operating cash flows and purchases of property and equipment, was $16.7 million for the fourth quarter of 2022 and $75.9 million for the full year 2022. This spent is consistent with a large amount of inventory and set build capital expenditures necessary to support the recent and upcoming full product launches as well as our above-market U.S. revenue growth. As for additional detail on the full year revenue results that Keith mentioned earlier, 2022 revenue was $238 million, a 24% increase over 2021. U.S. revenue grew 19% and International revenue increased by 66% and was driven primarily by the final stocking orders to distributors in connection with SeaSpine's exit from the European Spinal Implants market in the third quarter of 2022 and from significant revenue growth from the Enabling Technologies franchise.

2022 年第四季度，我們的自由現金流消耗為 1670 萬美元，2022 年全年為 7590 萬美元，其中包括經營現金流和購買財產和設備。這筆支出與大量庫存和固定建設資本一致支持近期和即將推出的完整產品以及我們高於市場的美國收入增長所需的支出。至於 Keith 之前提到的有關全年收入結果的更多細節，2022 年收入為 2.38 億美元，比 2021 年增長 24%。美國收入增長 19%，國際收入增長 66%，這主要是由最終庫存訂單推動的經銷商與 SeaSpine 於 2022 年第三季度退出歐洲脊柱植入物市場以及 Enabling Technologies 特許經營權的顯著收入增長有關。

U.S. orthobiologics revenue grew 17% year-over-year in 2022. The U.S. Spinal Implant surgery volumes increased 23% compared to full year 2021 as revenue per case increased 4% over the prior year. Utilization of our spinal implant systems and orthobiologics products increased to 2.2% per procedure in 2022 compared to 2.1% in 2021.

2022 年，美國骨科生物製品收入同比增長 17%。與 2021 年全年相比，美國脊柱植入手術量增長了 23%，每例收入比上年增長了 4%。與 2021 年的 2.1% 相比，到 2022 年，我們的脊柱植入系統和骨科生物製品產品的使用率從 2.1% 增加到 2.2%。

The I'd now like to turn the call over to John Sibos to provide highlights on Orthofix's stand-alone 2022 results.

我現在想將電話轉給 John Sibos，以提供有關 Orthofix 獨立 2022 年結果的亮點。

Thank you, John. As announced earlier in January, total revenue in the quarter was $122.2 million, decreasing 2% over 2021 on a reported basis and flat to 2021 on a constant currency basis. Strategic investments in our commercial channel and new products are paying off as global orthopedics and bone growth therapies continued their strong performance through the fourth quarter.

謝謝你，約翰。正如 1 月初宣布的那樣，本季度的總收入為 1.222 億美元，按報告基礎比 2021 年下降 2%，按固定匯率計算與 2021 年持平。隨著全球骨科和骨骼生長療法在第四季度繼續保持強勁表現，我們對商業渠道和新產品的戰略投資正在取得回報。

Specific to innovation, we are encouraged by several new products we introduced in 2022. The AccelStim bone-healing therapy for fresh fracture and nonunion fractures, TrueLok EVO, which added (inaudible) and stress to our market-leading ring fixation system, and Galaxy Gemini, our next-generation (inaudible) system have all been well received in the marketplace. We've also launched 2 new biologic solutions in 2022 with our partnership with MTF Biologics. The Virtuous Liegraph, a shelf stable complete autograph substitute and legacy to mineralized bone matrix.

具體到創新，我們對 2022 年推出的幾款新產品感到鼓舞。針對新鮮骨折和骨不連骨折的 AccelStim 骨癒合療法 TrueLok EVO 為我們市場領先的環固定係統增加了（聽不清）壓力，以及 Galaxy Gemini，我們的下一代（聽不清）系統都在市場上廣受好評。我們還與 MTF Biologics 合作，在 2022 年推出了 2 種新的生物解決方案。 Virtuous Liegraph，一種貨架穩定的完整親筆簽名替代品，是礦化骨基質的遺產。

Turning to the performance of each of our product categories, starting with Bone Growth Therapies, or BGT. Sales for the quarter were $51 million, up 3% on both a reported and constant currency basis compared to the fourth quarter of 2021. Growth was driven by revenue from a AccelStim, our most recent bone-growth therapy solution with a new indication for fresh fracture care, which grew almost 50% sequentially in over the third quarter of 2022 as we continued our commercial rollout.

轉向我們每個產品類別的性能，從骨生長療法或 BGT 開始。本季度銷售額為 5100 萬美元，與 2021 年第四季度相比按報告和固定匯率計算增長 3%。增長是由 AccelStim 的收入推動的，AccelStim 是我們最新的骨骼生長治療解決方案，具有新的適應症隨著我們繼續進行商業推廣，骨折護理在 2022 年第三季度連續增長了近 50%。

Moving to Spinal Implants, which includes both spinal fixation and motion preservation. Revenue was down approximately 7% on both a reported and constant currency basis compared to the fourth quarter of 2021. The decline is driven mainly by continued global competitive headwinds at our motion preservation area as well as a decline in procedural ASPs in the spine fixation on flat volumes in the U.S. We did see an encouraging 20% sequential increase in surgeon training for the U.S. M6-C artificial cervical disc in the fourth quarter of 2022.

轉向脊柱植入物，包括脊柱固定和運動保護。與 2021 年第四季度相比，按報告匯率和固定匯率計算，收入下降了約 7%。下降的主要原因是我們的運動保護領域持續的全球競爭逆風以及脊柱固定的程序 ASP 下降美國的銷量持平。我們確實看到 2022 年第四季度美國 M6-C 人工頸椎間盤的外科醫生培訓連續增加了 20%，令人鼓舞。

Turning to our Biologics portfolio. Revenue was down 9% on a reported and constant currency basis compared to 2021. We saw declines coming from some of our Trinity accounts driven primarily by sales channel disruption and offset somewhat by sales from our newer biologic solutions. The results from the merger will help growth initiatives in these franchises going forward as we will be able to offer new innovation solutions to our customers as well as additional options for our surgeon partners.

轉向我們的生物製劑產品組合。與 2021 年相比，按報告和固定貨幣計算，收入下降了 9%。我們發現 Trinity 的一些客戶收入下降主要是由於銷售渠道中斷，但在一定程度上被我們較新的生物解決方案的銷售所抵消。合併的結果將有助於這些特許經營權的增長計劃向前發展，因為我們將能夠為我們的客戶提供新的創新解決方案，並為我們的外科醫生合作夥伴提供更多選擇。

In our global orthopedics business, revenue for the fourth quarter was down 2% on a reported basis and up 6% on a constant currency basis over 2021. Growth at constant currency in both our U.S. and international businesses was driven by strategic investments in our commercial channels and momentum from new product introductions mentioned earlier.

在我們的全球骨科業務中，第四季度的收入在報告的基礎上下降了 2%，而在 2021 年的固定匯率基礎上增長了 6%。我們美國和國際業務的固定匯率增長是由我們的商業戰略投資推動的前面提到的新產品推出的渠道和勢頭。

Now moving on to a few highlights from our strategic initiatives. Let's start with product innovation and differentiation. In the fourth quarter, we continue to see AccelStim bone healing therapies gain traction. We are seeing a high rate of physician interest and now have access to new prescribing doctors. We are encouraged by our 2022 commercial rollout and revenue results. We have increased the number of sales reps 4% and added additional sales management to help grow our fracture channel with both fresh and nonunion fracture indications. Currently, our payer coverage for AccelStim includes over 80 million lives, and we expect that positive trajectory to continue.

現在繼續我們戰略計劃的一些亮點。讓我們從產品創新和差異化開始。在第四季度，我們繼續看到 AccelStim 骨癒合療法獲得牽引力。我們看到醫生的興趣很高，現在可以接觸到新的處方醫生。我們對 2022 年的商業推廣和收入結果感到鼓舞。我們將銷售代表的數量增加了 4%，並增加了額外的銷售管理，以幫助發展我們的骨折渠道，包括新鮮和不癒合骨折適應症。目前，我們對 AccelStim 的付款人覆蓋超過 8000 萬人，我們預計這一積極軌跡將繼續下去。

Turning to our second initiative. The ongoing development of our commercial channel to expand patient and surgeon access to our products worldwide. In 2022, we have continued to invest in our development and optimization of our fracture channel and our orthopedic channel investments have paid off both in the U.S. and internationally to support continued growth.

轉向我們的第二個倡議。我們不斷發展商業渠道，以擴大患者和外科醫生在全球範圍內使用我們產品的機會。 2022 年，我們繼續投資於骨折通道的開發和優化，我們的骨科通道投資在美國和國際上都取得了回報，以支持持續增長。

Now I'll turn the call over to Doug to review Orthofix fourth quarter 2022 financial performance. Doug?

現在，我將把電話轉給道格，審查 Orthofix 2022 年第四季度的財務業績。道格？

Thanks, Jon, and good afternoon, everyone. As many of the financial measures covered in today's call are on a non-GAAP basis, please refer to today's earnings release for further information regarding our non-GAAP reconciliations and disclosures.

謝謝，喬恩，大家下午好。由於今天電話會議中涉及的許多財務措施都是基於非 GAAP 的，因此請參閱今天的收益發布，以獲取有關我們的非 GAAP 對賬和披露的更多信息。

Starting with revenue. As Jon noted earlier, total net sales in the quarter were $122.2 million reflecting flat sales at constant currency when compared to the fourth quarter of 2021. In the U.S., total net sales were $95.7 million or 78% of total revenue, down approximately 2% versus the prior year. The primary drivers were declines coming from competitive pressure in Biologics and Spinal Implants as well as decreased procedural ASPs in Spinal Implants, offset somewhat by growth coming from the BGT new product introduction of AccelStim and continued momentum in orthopedics.

從收入開始。正如 Jon 之前指出的那樣，本季度的總淨銷售額為 1.222 億美元，與 2021 年第四季度相比，按固定匯率計算的銷售額持平。在美國，總淨銷售額為 9570 萬美元，佔總收入的 78%，下降約 2%與前一年相比。主要驅動因素是生物製劑和脊柱植入物的競爭壓力以及脊柱植入物中程序性 ASP 的下降，這在一定程度上被 BGT 新產品 AccelStim 的引入和骨科領域的持續發展勢頭所抵消。

International total net sales were $26.6 million or 22% of total revenue, up 6% in constant currency over the fourth quarter of 2021 as a result of strong growth from strategic investments in the commercial channel and momentum coming from new product introductions. Full year revenue came in at $460.7 million, up 1% at constant currency and down 1% as reported. The highlight for 2022 was 11% constant currency growth in our Global Orthopedics segment as a result of the strategic investments we made in our commercial channels and new product momentum.

國際總淨銷售額為 2660 萬美元，佔總收入的 22%，按固定匯率計算比 2021 年第四季度增長 6%，這是由於商業渠道戰略投資的強勁增長和新產品推出帶來的勢頭。全年收入為 4.607 億美元，按固定匯率計算增長 1%，據報導下降 1%。 2022 年的亮點是，由於我們對商業渠道進行的戰略投資和新產品勢頭，我們的全球骨科部門的貨幣持續增長 11%。

GAAP gross margin in the fourth quarter of 2022 was 73%, which was consistent with the prior year period despite changes in sales mix and volumes. GAAP sales and marketing expenses in the fourth quarter were 49% of net sales, up from 46% in the fourth quarter of 2021. This increase is primarily driven by an increase in event spending due to the timing of trade shows as well as an increase in marketing and sales training spend to bring on new commercial distribution.

2022 年第四季度的 GAAP 毛利率為 73%，儘管銷售組合和銷量發生變化，但與上年同期持平。第四季度 GAAP 銷售和營銷費用占淨銷售額的 49%，高於 2021 年第四季度的 46%。這一增長主要是由於貿易展的時間安排導致活動支出增加以及在營銷和銷售培訓方面的支出，以帶來新的商業分銷。

GAAP G&A expenses in the fourth quarter were 21% of net sales, up from 15% in the prior year period. The increase reflects higher spending on legal and professional fees primarily related to the recent merger with SeaSpine. GAAP R&D expenses for the fourth quarter stayed flat at 11% of net sales compared to the prior year period. Our focus on R&D continues to be on bringing innovative and differentiated new products to the market. Adjusted EBITDA margin in the fourth quarter was 13% of net sales, down slightly from 14% of net sales compared to the same quarter of 2021. On a dollar basis, adjusted EBITDA in the fourth quarter was $15.8 million, down from $17 million in the fourth quarter of the prior year.

第四季度的 GAAP G&A 費用占淨銷售額的 21%，高於去年同期的 15%。這一增長反映了主要與最近與 SeaSpine 合併相關的法律和專業費用支出增加。第四季度的 GAAP 研發費用與去年同期相比持平，占淨銷售額的 11%。我們的研發重點仍然是將創新和差異化的新產品推向市場。第四季度調整後的 EBITDA 利潤率為淨銷售額的 13%，略低於 2021 年同期的 14%。按美元計算，第四季度調整後的 EBITDA 為 1580 萬美元，低於 2021 年同期的 1700 萬美元去年第四季度。

Now turning to tax. We reported GAAP income tax expense of $75,000 or 1% of the loss before income taxes in the quarter as compared to the prior year expense of $23.2 million or a 242% of loss before income taxes in the same period of 2021. The tax rate in both periods is driven by timing of earnings as well as GAAP losses without a corresponding tax benefit. In particular, we fully reserved our U.S. deferred tax assets in the fourth quarter of 2021, which was a significant component of the disproportionately high reported GAAP tax rate last year.

現在轉向稅收。我們報告的 GAAP 所得稅費用為 75,000 美元，佔本季度所得稅前虧損的 1%，而上年同期為 2320 萬美元，佔 2021 年同期所得稅前虧損的 242%。這兩個時期都是由收益時間和 GAAP 虧損驅動的，沒有相應的稅收優惠。特別是，我們在 2021 年第四季度完全保留了我們的美國遞延稅資產，這是去年報告的不成比例的高 GAAP 稅率的重要組成部分。

For the fourth quarter, we reported a GAAP loss of $0.35 per share as compared to a GAAP loss of $1.65 per share in the fourth quarter of 2021. After adjusting for certain items and when normalizing for tax using our non-GAAP long-term effective tax rate of 28%, adjusted EPS for the fourth quarter of 2022 was $0.19 as compared to an adjusted EPS of $0.27 in the fourth quarter of 2021.

第四季度，我們報告的 GAAP 每股虧損為 0.35 美元，而 2021 年第四季度的 GAAP 每股虧損為 1.65 美元。在對某些項目進行調整後，並使用我們的非 GAAP 長期有效指標對稅收進行標準化後稅率為 28%，2022 年第四季度調整後每股收益為 0.19 美元，而 2021 年第四季度調整後每股收益為 0.27 美元。

Regarding cash, our liquidity position remains strong with $51 million in cash at December 31, 2022, and nearly $100 million of current borrowing capacity under the Orthofix credit facility. Our free cash flow burn was $34.7 million for the full year 2022 and included strategic investments in inventory and Spinal Implant set builds and over $5 million in contractual milestone payments related to our partnerships with IGEA, CGBio, FITBONE and MTF to accelerate new product innovation to support revenue growth as well as merger and integration costs and $23 million in CapEx for spine implant set builds and leasehold improvements to our Lewisville, Texas headquarters building.

在現金方面，我們的流動性狀況依然強勁，截至 2022 年 12 月 31 日，我們的現金為 5100 萬美元，Orthofix 信貸額度下的當前借款能力接近 1 億美元。 2022 年全年，我們的自由現金流消耗為 3,470 萬美元，其中包括對庫存和脊柱植入物構建的戰略投資，以及與我們與 IGEA、CGBio、FITBONE 和 MTF 合作加速新產品創新的超過 500 萬美元的合同里程碑付款支持收入增長以及合併和整合成本以及 2300 萬美元的資本支出，用於脊柱植入物裝置的建造和我們德克薩斯州路易斯維爾總部大樓的租賃改善。

As of December 31, 2022, Orthofix had no borrowings under its $300 million secured revolving credit facility. However, on January 3, 2023, Orthofix borrowed $30 million under this credit facility, in part to fund the full repayment of SeaSpine's $26.2 million outstanding borrowing against its credit facility as well as for working capital purposes and for certain merger-related expenses. Furthermore, on March 3, 2023, Orthofix borrowed an additional $15 million under the credit agreement for continued working capital purposes and to help fund merger integration-related costs.

截至 2022 年 12 月 31 日，Orthofix 在其 3 億美元的有擔保循環信貸額度下沒有借款。然而，2023 年 1 月 3 日，Orthofix 在該信貸額度下借入了 3000 萬美元，部分用於全額償還 SeaSpine 的 2620 萬美元未償借款以及營運資金和某些與合併相關的費用。此外，2023 年 3 月 3 日，Orthofix 根據信貸協議額外借入了 1500 萬美元，用於持續營運資金和幫助資助與合併整合相關的成本。

I'll now turn the call over to Keith to provide closing comments and 2023 guidance.

我現在將電話轉給基思，以提供結束評論和 2023 年指導。

Thanks, Doug. As you've heard today, we are excited about the momentum, both standalone companies generated coming out of 2022 and are very much looking forward to building a leading global spine and orthopedics company in the years to come. The combination of these 2 innovative and ambitious organizations is incredibly energizing. The combined company will ultimately and most importantly, provides surgeons with the best resources, technologies, products and procedures needed to improve patient outcomes. We believe that the combined product portfolios are very complementary and that we can leverage the best-in-class technologies for each organization to offer the most innovative solutions along the continuum of care, pre and postoperatively.

謝謝，道格。正如您今天所聽到的那樣，我們對這兩家獨立公司在 2022 年產生的勢頭感到興奮，並且非常期待在未來幾年內打造一家全球領先的脊柱和骨科公司。這 2 個創新和雄心勃勃的組織的結合令人難以置信地充滿活力。合併後的公司最終且最重要的是，將為外科醫生提供改善患者預後所需的最佳資源、技術、產品和程序。我們相信，合併後的產品組合具有很強的互補性，我們可以利用每個組織的一流技術，在術前和術後的連續護理過程中提供最具創新性的解決方案。

Orthofix will be hosting an analyst teach-in on March 13 at our Louisville facility, where our business unit presidents will provide additional color on these complementary product portfolios, our planned commercial strategies and expected future growth drivers within each segment and franchise. We invite investors to join us via webcast. In terms of financial guidance, at this point, we are providing a revenue range for the full year 2023 between $743 million to $753 million, which represents 7% to 9% year-over-year constant currency growth compared to the approximately $701 million of pro forma combined company revenue for full year 2022 after giving effect to anticipated reclassifications to conform SeaSpine's revenue reporting to that of Orthofix.

Orthofix 將於 3 月 13 日在我們的路易斯維爾工廠舉辦一場分析師講座，我們的業務部門總裁將在會上就這些互補的產品組合、我們計劃的商業戰略以及每個細分市場和特許經營權中預期的未來增長動力提供更多的顏色。我們邀請投資者通過網絡直播加入我們。在財務指導方面，目前，我們提供的 2023 年全年收入範圍在 7.43 億美元至 7.53 億美元之間，與 2023 年的約 7.01 億美元相比，年增長率為 7% 至 9%。在實施預期的重新分類以使 SeaSpine 的收入報告與 Orthofix 的收入報告一致後，2022 年全年的備考合併公司收入。

Because we are still very early in the integration phase, we suggest that investors and analysts set their expectations towards the low end of that range until we can provide more clarity later this year on how effectively we are managing the approximately $20 million of revenue dis-synergy risk and how quickly we can take advantage of the greater than $25 million of cross-selling opportunities in 2023. So far, we are very pleased with our ability to manage and mitigate those possible revenue dis-synergies.

由於我們仍處於整合階段的早期階段，我們建議投資者和分析師將他們的期望設定在該範圍的低端，直到我們能夠在今年晚些時候更清楚地說明我們如何有效地管理大約 2000 萬美元的收入分配協同風險以及我們可以多快地利用 2023 年超過 2500 萬美元的交叉銷售機會。到目前為止，我們對我們管理和減輕這些可能的收入協同效應的能力感到非常滿意。

Additionally, we expect first quarter 2023 revenues in the range of $166 million to $170 million, which represents 7% to 10% year-over-year constant currency growth compared to the approximately $158 million of pro forma combined company revenue for the first quarter 2022. After giving effect to anticipated reclassifications to conform SeaSpine's revenue reporting to that of Orthofix.

此外，我們預計 2023 年第一季度的收入將在 1.66 億美元至 1.7 億美元之間，與 2022 年第一季度約 1.58 億美元的備考合併公司收入相比，同比增長 7% 至 10% . 在實施預期的重新分類以使 SeaSpine 的收入報告與 Orthofix 的收入報告一致後。

We do not plan to provide quarterly revenue guidance going forward. However, since the first quarter of 2023 is more than 2/3 completed and because we are providing a fairly wide initial revenue range for the full year, we wanted to provide that additional data point on this call. Also note that any sales generated by SeaSpine for the premerger period of January 1 through January 4, 2023, will not be included in the combined company's first quarter or full year 2023 revenue results.

我們不打算提供未來的季度收入指導。但是，由於 2023 年第一季度已完成 2/3 以上，並且我們提供了相當廣泛的全年初始收入範圍，因此我們希望在此次電話會議上提供額外的數據點。另請注意，SeaSpine 在合併前的 2023 年 1 月 1 日至 1 月 4 日期間產生的任何銷售額都不會計入合併後公司的第一季度或 2023 年全年收入結果。

We are still on track with initially reported expectations to generate approximately $40 million of operating expense synergies by year 3 post merger. With the bulk of those synergies coming from redundant corporate overhead included in G&A, redundant headcount and program spending and Spinal Implant R&D sales and marketing and from a meaningful reduction in IT system-related costs as we integrate a portfolio are very common and in many cases, overlapping IT systems. Cost to achieve those synergies are expected to be around $40 million, but the majority of that spend occurring in 2023, 20% incurred in 2024 and the remainder in 2025. And as we get further into the integration process, we will provide additional reporting and guidance metrics.

我們仍然按照最初報告的預期在合併後第 3 年產生約 4000 萬美元的運營費用協同效應。這些協同效應大部分來自 G&A 中包含的冗餘公司管理費用、冗餘員工和項目支出以及脊柱植入物研發銷售和營銷，以及在我們整合產品組合時顯著降低 IT 系統相關成本，這些都很常見，在許多情況下, 重疊的 IT 系統。實現這些協同效應的成本預計約為 4000 萬美元，但大部分支出發生在 2023 年，20% 發生在 2024 年，其餘發生在 2025 年。隨著我們進一步進入整合過程，我們將提供額外的報告和指導指標。

Before closing out my prepared remarks, I would like to highlight the upcoming change to our Board of Directors. John Bostjancic, our Executive Chairman, will not stand for reelection as a Director of Orthofix at the company's 2023 Annual Stockholders Meeting coming up in June of this year. He will remain an employee of the company through July 5, 2023. We are very appreciative of the years of leadership and the contributions from John. And I look forward to maintaining our friendship going forward.

在結束我準備好的發言之前，我想強調一下我們董事會即將發生的變化。我們的執行主席 John Bostjancic 將不會在今年 6 月舉行的公司 2023 年年度股東大會上再次競選 Orthofix 董事。他將在 2023 年 7 月 5 日之前繼續擔任公司員工。我們非常感謝約翰多年來的領導和貢獻。我期待著繼續保持我們的友誼。

I'm extraordinarily excited about the prospects for Orthofix. And I know our team is already making great strides to create one of the broadest biologics and regenerative technology portfolios in the industry.

我對 Orthofix 的前景感到非常興奮。我知道我們的團隊已經在創造業內最廣泛的生物製劑和再生技術產品組合之一方面取得了長足的進步。

At this point, operator, please open up the line for questions.

在這一點上，接線員，請打開問題線路。

(Operator Instructions) Our first question comes from Mathew Blackman from Stifel.

（操作員說明）我們的第一個問題來自 Stifel 的 Mathew Blackman。

Yes. Let me start with the -- and I appreciate the top line guidance for 1Q in 2023. But maybe it would be helpful for both you, Keith and John. We've obviously worked with you before. We know your philosophy on guidance from your time at SeaSpine. But how should we think about your views now on guidance sitting in this new seat in particular, guiding during an integration? Is your philosophy you put out guidance, we can hit, guidance we can beat? Is there any cushion in there perhaps for the unknown?

是的。讓我從 - 我很欣賞 2023 年第一季度的頂級指導。但也許這對你、基思和約翰都有幫助。很明顯我們以前和你合作過。我們了解您在 SeaSpine 期間的指導理念。但是，我們現在應該如何考慮您對坐在這個新席位上的指導的看法，特別是在整合期間的指導？你的哲學是你提出指導，我們可以打，指導我們可以打敗嗎？那裡可能有什麼緩衝未知的東西嗎？

And then just a quick follow-up on that. I just want to be clear. It sounds like in the commentary from the press release at least that there are no revenue -- or no material revenue synergies baked into the '23 guide. Is that full $20 million of dis-synergies baked into that guide? And if so, does that manifest largely in the global spine business on the Spinal Implant business? And then I've got one follow-up question.

然後只是快速跟進。我只想說清楚。聽起來至少在新聞稿的評論中沒有收入——或者說 23 年指南中沒有實質性的收入協同效應。該指南中是否包含了 2000 萬美元的協同效應？如果是這樣，這是否主要體現在脊柱植入物業務的全球脊柱業務中？然後我有一個後續問題。

All right. That's a lot to unpack. First question, on the guidance, the Q1 number, obviously, we're more than 2/3 of the way through the quarter. So we feel pretty good about how things are shaping up and really pleased to see the growth across just about all portfolios on both companies in those Q1 numbers. So I think that speaks to the confidence we have in mitigating the dis-synergy risk that seemed to be a lot of concerns when we first talked about the merger.

好的。有很多東西要拆開。第一個問題，關於指導，Q1 數字，顯然，我們已經超過了本季度的 2/3。因此，我們對事情的進展情況感到非常滿意，並且非常高興看到第一季度兩家公司幾乎所有投資組合的增長。因此，我認為這表明我們有信心減輕協同效應風險，當我們第一次談論合併時，協同效應風險似乎引起了很多關注。

For the full year number, I think Keith's comments were spot on that we'd expect everybody to kind of set expectations towards the low end of that range because it is still early, and that's why we gave a fairly wide range for the full year is to kind of set a baseline. And yes, you know us, Matt, and our historical practice of wanting to make sure we set a realistic bar that we're not going to come under. And so far, the success we've had with managing that dis-synergy risk, we feel really good about that 2 months into the merger. The fact that all the portfolios on both sides of the company are growing in the first quarter, I think, is a good trend for the full year. But yes, we do want to be cautious about setting full year expectations for such a wide time frame because there is still the potential for dis-synergy risk.

對於全年數字，我認為 Keith 的評論是正確的，我們希望每個人都對該範圍的低端設定預期，因為現在還為時過早，這就是為什麼我們給出了相當廣泛的全年範圍是設定一個基線。是的，你知道我們，馬特，以及我們想要確保我們設定一個我們不會受到的現實標準的歷史實踐。到目前為止，我們在管理這種不協同風險方面取得了成功，我們對合併後的兩個月感覺非常好。事實上，公司雙方的所有投資組合在第一季度都在增長，我認為這是全年的一個良好趨勢。但是，是的，我們確實希望對如此寬泛的時間框架設定全年預期持謹慎態度，因為仍然存在不協同風險的可能性。

We think the timing of when we'll get Spinal Implant sets to create some of the upside revenue synergy opportunities is fairly extended lead times, which will probably be most impactful later in the year, Q4 to set a realistic time frame. So we still need to manage those dis-synergy risks, and we don't see a lot of near-term opportunity on the revenue upside for the synergies. So we are being cautious about setting full year guidance. And as Keith said, right, we expect everybody to start on the low end, and hopefully, we'll have opportunities to raise that as the year goes by and we get past more of those revenue dis-synergy risks and continue to mitigate those. But also have better clarity as to what the upside can be for the full year on the revenue synergy possibility as we get delivery of some of those sets that we've ordered on the Spinal Implant side.

我們認為我們獲得脊柱植入物裝置以創造一些上行收入協同機會的時間是相當長的交貨時間，這可能在今年晚些時候影響最大，第四季度設定一個現實的時間框架。因此，我們仍然需要管理這些協同效應失調的風險，而且我們看不到協同效應在收入增長方面有很多近期機會。因此，我們對設定全年指引持謹慎態度。正如基思所說，對，我們希望每個人都從低端開始，希望隨著時間的推移，我們將有機會提高這一點，我們將克服更多的收入不協同風險，並繼續減輕這些風險.但是，隨著我們交付在脊柱植入物方面訂購的一些套裝，我們也更清楚地了解全年收入協同效應的可能性。

So I think that address everything you're asking.

所以我認為這可以解決您要問的所有問題。

John, I'll try to make this follow-up a little bit shorter. Just curious, and I think you've sort of touched on it here early days still, but maybe dis-synergies tracking as expected. Just any commentary on sales force stability in 4Q after the announced deal and now into 1Q '23? Just any sort of early commentary on retaining the folks you want to retain and any discussions going on with distributors moving into more exclusive or pulling in new distributors entirely? Just any color on that would be helpful.

約翰，我會盡量縮短跟進時間。只是好奇，我想你在早期已經有點觸及它了，但可能會像預期的那樣跟踪協同效應。在宣布交易後和現在進入 23 年第一季度的第四季度銷售人員穩定性的任何評論？關於留住你想留住的人的任何早期評論，以及與分銷商進入更獨家或完全吸引新分銷商的任何討論？上面的任何顏色都會有所幫助。

Yes. You bet, Matt. So we're very excited how Q1 has kicked off. I mean, we gave some color to being 2 months in. And part of that is because there is a great deal of strength just as we had anticipated when we did our first kind of (inaudible) review of what overlap would be. We're really excited about the lack of concerning overlap, if you will, but more importantly, the opportunity for real synergy. And so we're already seeing cross cases. We're already seeing cases that go on that are using both legacy original company products together as a true merged company, including 70 as part of that as well.

是的。你打賭，馬特。所以我們對第一季度的開始感到非常興奮。我的意思是，我們給 2 個月的時間增添了一些色彩。部分原因是，正如我們在對什麼是重疊進行第一次（聽不清）審查時所預期的那樣，有很大的力量。如果您願意，我們對缺乏相關重疊感到非常興奮，但更重要的是，真正協同作用的機會。所以我們已經看到了交叉案例。我們已經看到將兩家公司的遺留原始產品作為一家真正的合併公司一起使用的案例，其中也包括 70 家公司。

And I think that's a testament to how we're approaching it also from a sales management perspective. I think the sales management process and the selections we've made and what the team looks like is a nice combination of leadership that also brings with it, I think, a good deal of stability to those sales teams. And without a doubt, we're excited about what's going on in the marketplace right now. There is a number of, I think, very interesting opportunities for us to take advantage of even greater sales penetration due to other opportunities out there from other companies merging.

我認為這也證明了我們如何從銷售管理的角度來處理它。我認為銷售管理流程和我們所做的選擇以及團隊的樣子是領導力的完美結合，我認為，我認為，這些領導力也為這些銷售團隊帶來了很大的穩定性。毫無疑問，我們對市場上正在發生的事情感到興奮。我認為，由於其他公司合併的其他機會，我們有許多非常有趣的機會可以利用更大的銷售滲透率。

Our next question comes from Jeffrey Cohen from Ladenburg Thalmann.

我們的下一個問題來自 Ladenburg Thalmann 的 Jeffrey Cohen。

Super congrats on the call and the merger. So I guess, firstly, John, you knew this one was coming, but I wanted to ask about segmentation reporting going forward. How are you going to look at that? Is that going to be U.S. international? Is it going to be hardware biologics, et cetera?

超級祝賀電話和合併。所以我想，首先，約翰，你知道這個即將到來，但我想問一下未來的細分報告。你打算怎麼看？那會是美國國際嗎？它會是硬件生物製品，等等嗎？

Yes. We're still in the evaluation phase of what the reportable segments will be like because we got to figure out right, how we're going to run the business internally, along portfolio line. So we'll definitely plan to give more color as to the segment reporting once we've made those final decisions. And I think we'll have those by the first quarter reporting that line. So no decisions made at this point yet, but clearly something we're evaluating as we go forward and look at how we want to run the business.

是的。我們仍處於可報告細分市場的評估階段，因為我們必須弄清楚，我們將如何沿著投資組合線在內部經營業務。因此，一旦我們做出最終決定，我們肯定會計劃為細分報告提供更多顏色。我認為我們將在第一季度報告那條線。所以目前還沒有做出任何決定，但很明顯，我們正在評估我們前進的方向，看看我們希望如何經營業務。

And then can you give us a sense of some of the G&A expenditures for and some of the synergies that you talked about? It looked like Q4 had about $9 million higher on G&A from plus 3 plus 6 from each side? And how should we think about that for Q1 and the balance of the year before some of these synergies start kicking in, at least on the G&A front?

然後，您能否讓我們了解一些 G&A 支出以及您談到的一些協同效應？看起來第 4 季度的 G&A 增加了大約 900 萬美元，來自雙方的加 3 加 6？在這些協同效應開始發揮作用之前，我們應該如何考慮第一季度和今年餘下時間，至少在 G&A 方面？

So you're asking about how Q1 will compare to Q4 and expectations for deal costs?

所以你問的是第一季度與第四季度相比如何以及對交易成本的預期？

Yes. I think as you're -- it looks talk about $9 million spent in the fourth quarter. So does that tail off in the first quarter swiftly or not swiftly? Or is it going to take a few quarters?

是的。我認為你是 - 它看起來談論在第四季度花費了 900 萬美元。那麼，這種情況在第一季度會迅速減少還是不會迅速減少？還是需要幾個季度？

So deal-specific costs will probably be another heavy quarter in Q1 in terms of spend, right? Because there's still ongoing legal fees kind of right up to the end, a lot of the banker fees will get paid post-closing. So that's a that's a Q1 transaction time line. Then we'll shift to more cost to achieve the synergies. As Keith mentioned in his scripted comments, right, the severance costs will increase and be probably most heavy in the middle part of this year. So we'll transition from what I call, deal setup and closing costs to now cost onetime cost to achieve the synergies, the bulk of which this year will likely be IT system integration costs and headcount costs occurring over Q3 -- Q2 and Q3 probably.

因此，就支出而言，特定於交易的成本可能會是第一季度的另一個沉重的季度，對吧？因為直到最後還有持續的法律費用，所以很多銀行費用將在交易結束後支付。這就是第一季度交易時間線。然後我們將轉向更多的成本來實現協同效應。正如基思在他的腳本評論中提到的那樣，對，遣散費將增加，並且可能在今年年中最為沈重。因此，我們將從我所說的交易設置和關閉成本過渡到現在的一次性成本，以實現協同效應，其中大部分可能是今年第三季度發生的 IT 系統集成成本和員工成本——可能是第二季度和第三季度.

(Operator Instructions) Our next question comes from Dave Turkaly from JMP Securities.

（操作員說明）我們的下一個問題來自 JMP Securities 的 Dave Turkaly。

Maybe one for Bost. I don't want to put him on the spot here, but I guess what I'm trying to look at here is there something either range or targeted area for either free cash flow or earnings. I imagine you're not going to want to comment on that, and I understand. But how about even timing? When do you think we'll be ready to sort of put this together and have sort of directionally some bottom line targets as well?

也許一個給博斯特。我不想讓他在這里當場，但我想我想在這裡看到的是自由現金流或收益的範圍或目標區域。我想你不會想對此發表評論，我理解。但即使是時間呢？您認為我們什麼時候會準備好將這些放在一起並有一些方向性的底線目標？

Yes. It's clearly a focus for the first quarter to be able to get through the integration and now we're running our annual operating plan for the combined company and digesting the synergies going through what we built into the deal model. So I think we have a good sense at a high level and talk about some high-level financial metrics and expectations that were built in the deal model. But yes, we're just not in a position to give any kind of clarity beyond the top line because we're still working through that first combined company operating plan. But I suspect we'll be in a better position to give more color down the P&L and in terms of big picture cash flow on our first quarter call in early May.

是的。顯然，第一季度的重點是能夠完成整合，現在我們正在為合併後的公司製定年度運營計劃，並消化通過我們在交易模型中建立的協同效應。所以我認為我們在高層次上有很好的感覺，並討論了交易模型中建立的一些高層次財務指標和期望。但是，是的，我們只是無法提供超出頂線的任何清晰度，因為我們仍在製定第一個合併後的公司運營計劃。但我懷疑我們將處於更好的位置，可以在 5 月初的第一季度電話會議上提供更多關於損益表和宏觀現金流的信息。

And then I know that both the companies have worked on the commercial expanding the teams. I think (inaudible) they focus on larger distributors of late. Will you guys combine be able to take advantage of all the changes you've made both on the OpEx and the SeaSpine side? I think you said not a lot of overlap, but even some of these new changes, would that be true that you'll be able to maintain some of the new choices you've made both sides?

然後我知道這兩家公司都致力於商業擴展團隊。我認為（聽不清）他們最近專注於更大的分銷商。你們能否結合起來利用你們在 OpEx 和 SeaSpine 方面所做的所有更改？我想你說的不是很多重疊，但即使是這些新變化中的一些，你是否能夠維持雙方做出的一些新選擇？

I do. I think that there's even opportunities were already in some discussions of current territories that even there's light overlap and how they can combine together. I think there's been -- we're fortunate. I think we're fortunate that we have a distribution teams that are excited about what the company's new portfolio is and how broad it is. And they want to be part of this growth profile.

我願意。我認為在當前領域的一些討論中甚至已經存在機會，即使有輕微的重疊以及它們如何結合在一起。我認為有——我們很幸運。我認為我們很幸運，我們有一個分銷團隊，他們對公司的新產品組合及其廣泛程度感到興奮。他們希望成為這種增長模式的一部分。

So I do feel very comfortable that the continued innovation will drive excitement for them as well because they see the future. They see the future is not just what the company looks like today, but we have a 2 to 3-year plan of even more innovation that will be exciting for the marketplace.

因此，我感到非常欣慰的是，持續的創新也會讓他們興奮，因為他們看到了未來。他們看到的未來不僅僅是公司今天的樣子，而且我們有一個 2 到 3 年的計劃，包括更多創新，這將令市場興奮不已。

And maybe one last one, if I could just squeeze one in. You mentioned on the SeaSpine part, the exit from Europe and I know if it works to fix, it's been some of the legacy sort of geography that certainly, at least in Italy and some other places was important. Is that -- when you combine do you wind up the Orthofix still stays there and you cross-sell with them? Or what are your thoughts on Europe specifically, if you had just recently -- I think exited at least for some of your products?

也許是最後一個，如果我能擠進去的話。你在 SeaSpine 部分提到了退出歐洲，我知道它是否能解決問題，它肯定是某種遺留的地理類型，至少在意大利是這樣還有其他一些地方很重要。那是——當你合併時，你會結束 Orthofix 仍然留在那裡並且你與他們交叉銷售嗎？或者你對歐洲有什麼特別的看法，如果你最近 - 我認為至少退出了你的一些產品？

Yes. I think Europe is a complicated challenge right now, to be frank. There's a lot of regulation. Some of it's getting pushed down the road, but still creates a great deal of, I would say, not even additional. It's dramatic expense to how you're going to promote and be able to market a product and sell a product in Europe. I think we're very fortunate that the traditional orthopedic business that's based out of Verona has been in place for a very long time. And they're in a different situation than I would categorize what Spinal Implants, specifically has to deal with.

是的。坦率地說，我認為歐洲現在是一個複雜的挑戰。有很多規定。其中一些被推下了道路，但仍然創造了大量，我想說，甚至不是額外的。對於您要如何在歐洲推廣和營銷產品以及銷售產品而言，這是一筆巨大的開支。我認為我們非常幸運，基於維羅納的傳統骨科業務已經存在了很長時間。他們所處的情況與我對脊柱植入物的分類不同，特別是必須處理的情況。

And so we'll continue to evaluate. We'll continue to evaluate how the European regulatory groups drive forward with some new plans that they're promising. But at this time, we wanted to be cost effective, a profitable venture for Spinal Implants in Europe. And we'll continue to pursue it in such a way.

因此，我們將繼續評估。我們將繼續評估歐洲監管機構如何推進他們承諾的一些新計劃。但在這個時候，我們希望具有成本效益，成為歐洲脊柱植入物的有利可圖的企業。我們將繼續以這種方式追求它。

We have no further questions in queue. I would like to turn the call back over to Keith Valentine for closing remarks.

隊列中沒有其他問題。我想將電話轉回給 Keith Valentine 作結束語。

So thank you again for joining us this afternoon. I'd like to save some over 1,500 dedicated employees in the Orthofix family. We appreciate your interest in the call and joining us today. We look forward to speaking to many of you throughout the rest of 2023 and hope you all have the opportunity to join us online at the teaching event coming up on March 13. Have a great evening.

再次感謝您今天下午加入我們。我想挽救 Orthofix 家族的 1,500 多名敬業員工。感謝您對今天的電話會議和加入我們感興趣。我們期待在 2023 年剩下的時間裡與你們中的許多人交談，並希望你們都有機會在線參加 3 月 13 日即將舉行的教學活動。祝大家度過一個愉快的夜晚。

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

今天的電話會議到此結束。感謝您的參與。您現在可以斷開連接。