Orthofix Medical Inc (OFIX) 2023 Q2 法說會逐字稿

Ladies and gentlemen, good afternoon. My name is Abby, and I will be your conference operator today. At this time, I would like to welcome everyone to the Orthofix Medical Second Quarter 2023 Earnings Conference Call. (Operator Instructions). Thank you. And I will now turn the conference over to Louisa Smith at Gilmartin. You may begin.

女士們、先生們，午安。我叫艾比，今天我將擔任你們的會議操作員。現在，我歡迎大家參加 Orthofix Medical 2023 年第二季財報電話會議。 （操作員說明）。謝謝。現在我將把會議交給吉爾馬丁的路易莎史密斯。你可以開始了。

Thank you, operator, and good afternoon, everyone. Welcome to the Orthofix Second Quarter 2023 Earnings Call. Joining me on the call today are President and Chief Executive Officer, Keith Valentine; and Chief Financial Officer, John Bostjancic.

謝謝接線員，大家下午好。歡迎參加 Orthofix 2023 年第二季財報電話會議。今天和我一起參加電話會議的是總裁兼執行長 Keith Valentine；財務長約翰‧博斯特詹西奇 (John Bostjancic)。

During this call, we will make forward-looking statements that involve risks and uncertainties. All statements other than those of historical facts are forward-looking statements, including any earnings guidance we provide 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, August 8, 2023. 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 risk factors disclosed under the heading Risk Factors in our Form 10-K for the year ended December 31, 2022 and Form 10-Q filed this afternoon, August 8, 2023, as well as additional SEC filings we make in the future.

在本次電話會議中，我們將做出涉及風險和不確定性的前瞻性聲明。除歷史事實之外的所有陳述均為前瞻性陳述，包括我們提供的任何盈利指引以及有關我們的計劃、信念、戰略、期望、目的或目標的任何陳述。請投資人不要過度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今天（2023 年 8 月 8 日）的信念和期望。我們不承擔任何修改或更新此類前瞻性陳述的義務。一些可能導致實際結果與我們在電話會議中做出的前瞻性陳述存在重大差異的因素包括我們截至2022 年12 月31 日的表格10-K 和表格10- 中“風險因素”標題下披露的風險因素。Q 於 2023 年 8 月 8 日下午提交，以及我們將來向 SEC 提交的其他文件。

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 matters as a supplement to the financial measures determined in accordance with U.S. GAAP. Please refer to today's news release announcing our second quarter 2023 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，我們將參考各種非公認會計準則財務指標。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事項，作為根據美國公認會計準則確定的財務措施的補充。請參閱今天發布的 2023 年第二季業績的新聞稿，以了解這些非 GAAP 財務指標與我們的美國 GAAP 財務表現的對帳。

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

此時，我會將電話轉給基斯。

Thank you, Louisa, and thank you, everyone, for joining us this afternoon. Orthofix had a strong quarter marked by solid operational and financial performance following the merger in January. We grew order volumes and leveraged cross-selling opportunities across the complementary portfolios and perhaps most significantly continue to effectively manage through the revenue dis-synergy risk associated with the business combination.

謝謝你，路易莎，也謝謝大家今天下午加入我們。 Orthofix 在 1 月合併後表現強勁，營運和財務表現穩健。我們增加了訂單量，並利用了互補投資組合的交叉銷售機會，也許最重要的是繼續有效地管理與業務合併相關的收入不協同風險。

The Orthofix team is incredibly motivated by these successes, and our teams are working relentlessly to capture market share and deliver value. I'm pleased with the progress of the business, and I'm eager to share with you some high-level achievements from the second quarter.

Orthofix 團隊因這些成功而深受鼓舞，我們的團隊正在不懈地努力，以佔領市場份額並創造價值。我對業務進展感到滿意，也很高興與大家分享第二季取得的一些高水準成果。

Revenue for the second quarter of 2023 was $187 million, representing reported growth of 58% and pro forma constant currency growth of 7% year-over-year. The strong quarter reflects our commitment to delivering consistent above-market gains through innovative products and an expanded distribution reach. For this afternoon's call, I'll begin by providing color on each product category, including revenue, innovation initiatives, operational highlights and commercial channel updates. Then, John will provide a detailed look on financial performance and guidance for full 2023 year before we open the call for your questions.

2023 年第二季營收為 1.87 億美元，報告成長 58%，預計以固定匯率計算年增 7%。這一強勁的季度反映了我們致力於透過創新產品和擴大分銷範圍實現持續高於市場的收益的承諾。在今天下午的電話會議中，我將首先介紹每個產品類別的情況，包括收入、創新舉措、營運亮點和商業管道更新。然後，在我們開始詢問您的問題之前，John 將詳細介紹 2023 年全年的財務表現和指導。

Bone Growth Therapies, or BGT, revenue for the second quarter of 2023 was $52.7 million, an increase of 10% year-over-year. This marks 2 consecutive quarters of double-digit BGT growth, which was primarily driven by the fracture channel on the strength of the recently launched AccelStim product and investments made in 2022 to create a more focused sales organization.

骨生長療法（BGT）2023年第二季營收為5,270萬美元，較去年同期成長10%。這標誌著 BGT 連續兩個季度實現兩位數成長，這主要是由於最近推出的 AccelStim 產品的斷裂管道以及 2022 年為創建更專注的銷售組織而進行的投資所推動的。

The spine channel also performed well, growing mid-single digits year-over-year, driven by cross-selling through the legacy C-spine distribution channel and from healthy complex spine surgery volumes. Overall, both commercial channels have also benefited from more than 6% rate increases that were approved by Medicare this year.

脊柱渠道也表現良好，在傳統 C 脊柱分銷渠道的交叉銷售和健康的複雜脊柱手術量的推動下，同比增長中個位數。總體而言，這兩個商業管道也受益於今年 Medicare 批准的超過 6% 的費率上漲。

Moving on to spinal implants, biologics and enabling technologies. Global revenue totaled $105.3 million, representing 145% growth year-over-year on a reported basis and 5.4% on a pro forma basis. Growth in the U.S. exceeded 7% on a pro forma basis, while international revenue declined as a result of C-spine's exit from the European spinal implants market in the third quarter of last year. We continue to see strong growth generated by the larger, more exclusive distributor partners that we onboarded in recent years, which has allowed us to be more aggressive in rationalizing the less exclusive and revenue inefficient distributors.

接下來是脊椎植入物、生物製劑和支援技術。全球收入總計 1.053 億美元，報告年增 145%，預計成長 5.4%。美國市場預計成長超過 7%，而國際收入則因 C-spine 去年第三季退出歐洲脊椎植入物市場而下降。我們繼續看到近年來我們加入的規模更大、更排他性的經銷商合作夥伴帶來的強勁增長，這使我們能夠更加積極地合理化那些排他性較低和收入效率低下的經銷商。

From a product perspective, our cervical franchise led by NorthStar and WaveForm C was the fastest-growing franchise within the quarter. In June, we commercially launched the WaveForm A interbody system to target the Anterior Lumbar Interbody Fusion, or ALIF, procedures. To better address the $200 million market in the U.S., additionally, we see increasing interest in our foundational Mariner modular pedicle screw system technology as adoption of the Fathom Pedicle-Based Retractor System for use with the Mariner MIS system accelerates as we participate in more complex spine procedures through the Mariner Adult Deformity System, which we launched earlier this year.

從產品角度來看，我們以 NorthStar 和 WaveForm C 為首的頸椎特許經營業務是本季成長最快的特許經營業務。 6 月，我們在商業上推出了 WaveForm A 椎間系統，以針對前腰椎椎間融合 (ALIF) 手術。此外，為了更好地滿足美國2 億美元的市場需求，我們看到人們對我們的基礎Mariner 模組化椎弓根螺釘系統技術越來越感興趣，因為隨著我們參與更複雜的項目，Fathom 椎弓根牽開器系統與Mariner MIS 系統一起使用的速度加快。透過我們今年稍早推出的 Mariner 成人畸形系統進行脊椎手術。

With respect to the M6 motion preservation franchise, we were pleased to present in June initial results from a 7-year study of the M6 device at the International Society for the Advancement of Spine Surgery or ISASS. The abstract is the first public presentation of specific 7-year clinical results associated with the use of the M6-C artificial cervical disc for the treatment of single-level symptomatic cervical radiculopathy.

關於 M6 運動保存專營權，我們很高興在 6 月公佈了國際脊椎外科促進會 (ISASS) 對 M6 設備進行的 7 年研究的初步結果。摘要是首次公開介紹與使用 M6-C 人工頸椎間盤治療單節段症狀性頸神經根病變相關的 7 年具體臨床結果。

The study highlights that using the M6-C artificial cervical disc leads to decreases in disability as measured by the Neck Disability Index and decreases in the neck and arm pain scores that were observed at prior follow-up periods and were then retained through 7 years post op. Only 6.9% of secondary surgical interventions were observed among the M6-C disc cohort, which is comparable to 7-year SSI rates reported for other commercially available artificial cervical discs.

研究強調，使用 M6-C 人工頸椎間盤可降低頸部殘疾指數測量的殘疾程度，並降低先前追蹤期間觀察到的頸部和手臂疼痛評分，並保留至術後 7 年作品。在 M6-C 椎間盤隊列中僅觀察到 6.9% 的二次手術幹預，這與其他市售人工頸椎間盤報告的 7 年 SSI 率相當。

Within the biologic franchise, we were looking forward to the expected launch of [osteoco], an advanced synthetic collagen matrix in the fourth quarter, which should significantly strengthen our product offering and drive growth in this approximately $250 million market segment, which has not historically been a strong product category for the combined company. The biologics team also has several additional line extensions in new product launches scheduled in 2024.

在生物製劑專營權範圍內，我們期待預計在第四季度推出的[osteoco]，這是一種先進的合成膠原蛋白基質，這將顯著增強我們的產品供應，並推動這個約2.5 億美元的細分市場的成長，該細分市場在歷史上從未有過成長。成為合併後公司的強大產品類別。生物製劑團隊還計劃在 2024 年推出新產品，進行幾項額外的產品線擴展。

Turning to the enabling technologies franchise. We placed 6 7D units in the second quarter, with 5 being placed in the U.S. and 1 of those via an earn-out arrangement. This brings the total number of 7D units placed via earnout to 8 with an annual revenue commitment of $4.8 million in total. In the Global Orthopedics segment, revenue totaled $29 million, which represents 6.4% year-over-year growth on a reported basis and 5% on a constant currency basis. We posted mid-single-digit growth in both our U.S. and international markets. Our increased investments in product innovation, our sales channel and our market-leading surgeon education programs continue to yield positive results.

轉向支援技術專營權。我們在第二季放置了 6 個 7D 單位，其中 5 個被放置在美國，其中 1 個是透過收益安排放置。這使得透過賺取收益放置的 7D 單位總數達到 8 個，年收入承諾總額為 480 萬美元。在全球骨科領域，營收總計 2,900 萬美元，按報告計算年增 6.4%，以固定匯率計算年增 5%。我們在美國和國際市場均實現了中個位數成長。我們在產品創新、銷售管道和市場領先的外科醫生教育計劃方面不斷加大投資，並繼續取得積極成果。

Revenue growth in the quarter was led by our recently launched TrueLok EVO, Galaxy Gemini and FITBONE product lines. In June, we announced the launch of TrueLok Phantom and Tornado Hinges, the latest addition to the TrueLok circular frame portfolio for which we recently celebrated 30 years of clinical use in more than 100,000 patients worldwide.

本季的營收成長主要得益於我們最近推出的 TrueLok EVO、Galaxy Gemini 和 FITBONE 產品線。 6 月，我們宣布推出 TrueLok Phantom 和 Tornado 鉸鏈，這是 TrueLok 圓形框架產品組合的最新成員，最近我們慶祝了該產品在全球超過 100,000 名患者中臨床使用 30 週年。

Based on our progress to date and the meaningful market share taking opportunities ahead of us, we are confident in our ability to drive top line growth across multiple business segments. Coupled with an improving macro environment as a backdrop, the confidence led us to raise our guidance for full year 2023 revenue to be within a range of $752 million and $758 million, an increase of $2 million to the low and high end of our prior guidance.

基於我們迄今為止的進展以及我們面前的有意義的市場份額搶佔機會，我們對推動多個業務領域的營收成長的能力充滿信心。加上宏觀環境不斷改善的背景，我們的信心促使我們將 2023 年全年收入指引上調至 7.52 億美元至 7.58 億美元之間，比之前指引的低端和高端增加了 200 萬美元。 。

The integration of the 2 merged businesses continues to progress nicely and the teams made many critical decisions and executed on many programs that will benefit revenue growth, reduce complexity and generate future P&L and cash flow leverage for the combined organization. Some of those key decisions and actions include the implementation of a cross-selling capability to distributors for each of the legacy companies' spinal implant systems, decisions to meaningfully rationalize the many redundant spinal implant systems, final selection of critical ERP and other information systems and the development of a new mission and vision statement for the company. We are also continuing to refine and identify new operating expense and cost of goods sold synergies, which John will provide more details on later.

兩家合併後的業務的整合繼續順利進行，團隊做出了許多關鍵決策並執行了許多計劃，這些決策將有利於收入成長、降低複雜性並為合併後的組織產生未來的損益和現金流槓桿。其中一些關鍵決策和行動包括為每個傳統公司的脊椎植入系統向經銷商實施交叉銷售能力、有意義地合理化許多冗餘脊椎植入系統的決策、關鍵 ERP 和其他資訊系統的最終選擇以及為公司製定新的使命和願景宣言。我們也正在繼續完善和確定新的營運費用和銷售成本協同效應，約翰稍後將提供更多詳細資訊。

From a macro perspective, procedure volume trends are improving throughout the med tech sector, especially within the spine market, where Orthofix is in an advantaged position to strategically capture additional share. our broad and innovative product portfolio satisfies demand from patients and surgeons across the continuum of care. And with an increased number of product offerings, increased product utilization, higher revenue per case and an effective cross-selling strategy, our commercial team is ready to capitalize on those underlying tailwinds. I'm thrilled with our momentum coming out of the successful second quarter as a combined organization, and I'm confident that the best is yet to come.

從宏觀角度來看，整個醫療技術領域的手術量趨勢正在改善，尤其是在脊椎市場，Orthofix 處於戰略性佔領額外份額的優勢地位。我們廣泛且創新的產品組合可滿足患者和外科醫生在整個護理過程中的需求。隨著產品數量的增加、產品利用率的提高、每箱收入的增加以及有效的交叉銷售策略，我們的商業團隊已準備好利用這些潛在的有利因素。作為一個合併後的組織，我們第二季的成功所帶來的動力讓我感到非常興奮，我相信最好的尚未到來。

With that, I'll turn the call over to John for further detail with respect to our second quarter financial results and updated financial guidance for the full year.

接下來，我將把電話轉給約翰，以了解有關我們第二季度財務業績和全年最新財務指引的更多詳細資訊。

Thanks, Keith, and good afternoon, everyone. As Keith noted earlier, total revenue for the second quarter of 2023 was $187 million, a 58% reported increase over the prior year and 7% growth on a pro forma basis. Revenue growth was led by BGT, which grew 10% year-over-year to $52.7 million. This marks the second consecutive quarter of double-digit growth for the BGT franchise and was led by the recently launched AccelStim product, which grew more than 20% sequentially over the first quarter of 2023.

謝謝基思，大家下午好。正如 Keith 早些時候指出的那樣，2023 年第二季度的總收入為 1.87 億美元，較上年增長 58%，預計增長 7%。營收成長由 BGT 帶動，年增 10% 至 5,270 萬美元。這標誌著 BGT 特許經營權連續第二個季度實現兩位數增長，並由最近推出的 AccelStim 產品帶動，該產品比 2023 年第一季連續增長超過 20%。

While we are very enthusiastic about the 12% year-to-date growth rate, we are setting expectations for mid- to high single-digit growth for the remainder of this year. GAAP gross margin for the second quarter of 2023 was 63.9% compared to 73.2% for the second quarter of 2022. Adjusted gross margin was 71.6% for the second quarter of 2023 compared to 73.9% for prior year period for legacy Orthofix.

雖然我們對今年迄今 12% 的成長率感到非常興奮，但我們預計今年剩餘時間將實現中高個位數成長。 2023 年第二季的 GAAP 毛利率為 63.9%，而 2022 年第二季為 73.2%。2023 年第二季 調整後毛利率為 71.6%，而傳統 Orthofix 上一年同期的毛利率為 73.9%。

The decrease in GAAP gross margin was almost entirely driven by the following merger-related factors: a $9.4 million noncash purchase accounting fair value step-up charge attributable to C-spine acquired inventory that was amortized during the quarter; $3.8 million of excess and obsolete spinal implants inventory charges recorded in connection with merger-related product rationalization decisions; and the dilutive impact of the acquired legacy C-spine business on legacy Orthofix' overall gross margin, which we estimate to be more than 200 basis points. Recall that legacy C-spine's financial results for the second quarter of 2022 are not reflected in Orthofix' GAAP results.

GAAP 毛利率的下降幾乎完全是由以下與合併相關的因素驅動的：由於 C-spine 收購的庫存而產生的 940 萬美元非現金採購會計公允價值遞增費用，該費用在本季度攤銷；與合併相關的產品合理化決策相關的 380 萬美元過剩和過時脊椎植入物庫存費用；收購的傳統 C-spine 業務對傳統 Orthofix 的整體毛利率產生稀釋影響，我們估計該影響將超過 200 個基點。回想一下，傳統 C-spine 2022 年第二季的財務表現並未反映在 Orthofix 的 GAAP 業績中。

Likewise, the year-over-year decrease in adjusted gross margin is entirely due to the dilutive impact of acquired legacy C-spine business while Orthofix' overall adjusted gross margin. On a pro forma basis, including the financial results of C-spine for the second quarter of 2022 revised to conform to the Orthofix presentation, we estimate that adjusted gross margin increased by 120 basis points to 71.6%. We expect adjusted gross margins to increase over time as we recognize efficiencies from spinal implant set utilization and product rationalization as well as other economies of scale that we expect to generate from the merger.

同樣，調整後毛利率的同比下降完全是由於收購的傳統 C-spine 業務的攤薄影響以及 Orthofix 整體調整後毛利率的影響。在備考基礎上，包括為符合 Orthofix 演示而修訂的 C-spine 2022 年第二季度財務業績，我們估計調整後毛利率將增長 120 個基點，達到 71.6%。我們預計調整後的毛利率將隨著時間的推移而增加，因為我們認識到脊椎植入物裝置的利用和產品合理化的效率以及我們預期合併產生的其他規模經濟。

GAAP gross margin in the second half of 2023 is likely to be negatively impacted by additional merger-related E&O inventory charges driven by further product rationalization decisions. GAAP sales and marketing expenses in the second quarter of 2023 were 53% of net sales, up from 51% in the second quarter of 2022. Adjusted sales and marketing expenses were 50% of net sales for the second quarter, consistent with the prior year period. The increase in GAAP is primarily driven by integration-related severance and retention costs associated with the merger and higher stock-based compensation.

2023 年下半年的 GAAP 毛利率可能會受到進一步產品合理化決策推動的與合併相關的額外 E&O 庫存費用的負面影響。 2023 年第二季GAAP 銷售和行銷費用佔淨銷售額的53%，高於2022 年第二季的51%。調整後的銷售和行銷費用佔第二季淨銷售額的50%，與去年一致時期。公認會計準則的成長主要是由與合併相關的整合相關遣散費和保留成本以及更高的股票薪酬所推動的。

GAAP G&A expenses in the second quarter of 2023 were 18% of net sales, up from 13% in the prior year period. Adjusted G&A expenses were 11% of net sales for the second quarter compared to 10% for the prior year period. The increase in GAAP G&A expenses was driven primarily by $6.2 million in higher stock-based compensation as well as $3 million of merger-related costs including accrued severance and retention costs and professional fees. We expect to record additional severance and retention expenses throughout the remainder of 2023 and albeit at lower dollar amounts per quarter as those affected employees work through their respective end dates.

2023 年第二季 GAAP 一般管理費用佔淨銷售額的 18%，高於去年同期的 13%。調整後的一般管理費用佔第二季淨銷售額的 11%，而去年同期為 10%。 GAAP G&A 費用的增加主要是由於 620 萬美元的股票薪酬增加以及 300 萬美元的合併相關成本（包括應計遣散費和保留成本以及專業費用）推動的。我們預計在 2023 年剩餘時間內將記錄額外的遣散費和保留費用，儘管隨著受影響的員工在各自的結束日期工作，每季的金額會降低。

GAAP R&D expenses in the second quarter of 2023 were 10% of net sales, down from 11% in the prior year period. Adjusted R&D expenses were 8% of net sales for the second quarter, consistent with the prior year period. The decrease to GAAP R&D was primarily driven by lower spend related to EU MDR readiness and compliance and the realization of merger-related synergies, which were slightly offset by higher stock-based compensation expense.

2023 年第二季 GAAP 研發費用佔淨銷售額的 10%，低於去年同期的 11%。調整後的研發費用佔第二季淨銷售額的 8%，與去年同期持平。 GAAP 研發費用的減少主要是由於與歐盟 MDR 準備和合規性以及合併相關協同效應的實現相關的支出減少，但股票薪酬費用的增加略有抵消。

Our focus continues to be on bringing innovative and differentiated new products to the market. And to that end, we expect to invest between 8% and 9% of revenue on R&D in 2023. Adjusted EBITDA for the second quarter of 2023 was $9.9 million compared to $11.4 million for the second quarter of 2022.

我們的重點仍然是將創新和差異化的新產品推向市場。為此，我們預計 2023 年將營收的 8% 至 9% 用於研發。2023 年第二季調整後 EBITDA 為 990 萬美元，而 2022 年第二季為 1,140 萬美元。

On a pro forma basis, including the financial results of C-spine for the second quarter of 2022, we estimate that adjusted EBITDA increased by $3.2 million in the second quarter of 2023 compared to $6.7 million in the prior year period. We expect adjusted EBITDA to continue to increase in subsequent quarters of 2023 as we realized increasing amounts of merger-related operating expense synergies through the remainder of the year.

根據預計，包括 C-spine 2022 年第二季的財務業績，我們估計 2023 年第二季調整後 EBITDA 增加了 320 萬美元，而去年同期為 670 萬美元。我們預計調整後 EBITDA 將在 2023 年後續季度繼續成長，因為我們在今年剩餘時間內實現了與合併相關的營運費用綜效的增加。

Adjusted gross margin and adjusted EBITDA are non-GAAP financial measures that we believe provides valuable information on our operating results that facilitates comparability of our core operating performance from period to period and against other companies in our industry. A reconciliation of GAAP to adjusted gross margin and adjusted EBITDA is presented in the financial tables of the news release we issued this afternoon. A reconciliation of pro forma adjusted gross margin and pro forma adjusted EBITDA is included in the back of our updated investor presentation that was included in the current report on Form 8-K that we filed today.

調整後毛利率和調整後 EBITDA 是非 GAAP 財務指標，我們認為它們提供了有關我們經營業績的寶貴信息，有助於我們不同時期的核心經營業績以及與行業其他公司的可比性。我們今天下午發布的新聞稿的財務表格中列出了 GAAP 與調整後毛利率和調整後 EBITDA 的調整表。預計調整後毛利率和預計調整後 EBITDA 的調節表包含在我們更新的投資者簡報的後面，該簡報包含在我們今天提交的 8-K 表格的當前報告中。

Cash and cash equivalents on June 30, 2023, totaled $37.6 million and including the $8 million of additional borrowings we made in July, we now currently have $59 million of outstanding borrowings under our $175 million credit facility.

截至 2023 年 6 月 30 日，現金及現金等價物總計 3,760 萬美元，包括我們 7 月額外借款的 800 萬美元，目前我們在 1.75 億美元的信貸額度下有 5,900 萬美元的未償還借款。

Our free cash flow, which includes operating cash flows and capital expenditures, was an outflow of $18.3 million for the second quarter of 2023, a significant sequential decrease from the $45.9 million reported for the first quarter of 2023. Free cash flow for the first and second quarters of 2023 included an estimated $15.5 million and $5.8 million, respectively, of spend on merger-related items.

2023 年第二季度，我們的自由現金流（包括營運現金流量和資本支出）流出 1,830 萬美元，較 2023 年第一季報告的 4,590 萬美元大幅下降。2023 年第二季度的合併相關項目支出估計分別為1550 萬美元和580 萬美元。

As Keith indicated, we are increasing our revenue guidance and now expect revenue for the full year 2023 to be between $752 million and $758 million, which represents 7% to 8% year-over-year growth on a pro forma basis. While we aren't providing specific quarterly guidance, we expect that third quarter revenue will be fairly consistent with second quarter revenue, and we are anticipating a meaningful increase in the fourth quarter due to typical seasonality patterns and from the additional revenue enabled by the deployment of a significant number of spinal implant sets later in the third quarter.

正如 Keith 指出的那樣，我們正在提高收入指引，目前預計 2023 年全年收入將在 7.52 億美元至 7.58 億美元之間，預計將年增 7% 至 8%。雖然我們沒有提供具體的季度指導，但我們預計第三季的收入將與第二季的收入相當一致，並且由於典型的季節性模式以及部署帶來的額外收入，我們預計第四季度將出現有意義的增長第三季稍後將生產大量脊椎植入物。

For adjusted gross margin, we are maintaining previously issued estimates to range between 71% and 72% for the full year 2023. For adjusted EBITDA, we are raising the range from $40 million to $45 million to $42 million to $46 million for the full year 2023, which represents a 53% to 68% increase on a pro forma basis. We expect to generate a very modest sequential increase in third quarter adjusted EBITDA followed by a meaningful increase in the fourth quarter, as we increase revenue and more fully realized operating expense synergies.

對於調整後的毛利率，我們維持先前發布的2023 年全年預估在71% 至72% 之間。對於調整後的EBITDA，我們將全年的範圍從4,000 萬美元至4,500 萬美元提高到4,200萬美元至4,600 萬美元。預計到 2023 年將成長 53% 至 68%。隨著我們增加收入和更充分地實現營運費用綜效，我們預計第三季調整後 EBITDA 將出現非常溫和的環比成長，隨後第四季將出現有意義的成長。

We continue to expect that free cash flow will be an approximately $100 million outflow for the full year 2023. As revenue continues to grow and we continue to gain operating leverage throughout the remainder of the year, we believe that we will have sufficient borrowing capacity under the credit facility to maintain a healthy cash balance despite the heavy cash spend in the first half of the year.

我們仍然預計 2023 年全年自由現金流將流出約 1 億美元。隨著收入持續增長以及我們在今年剩餘時間內繼續獲得運營槓桿，我們相信我們將擁有足夠的借貸能力儘管上半年現金支出大量，但信貸安排仍可維持健康的現金餘額。

Finally, we are updating our estimates of merger-related expense synergies to include initial estimates for cost of goods sold synergies related to product rationalization and other initiatives. We now anticipate generating more than $50 million of annualized COGS and OpEx synergies by 2025 in comparison to the previously estimated $40 million.

最後，我們正在更新合併相關費用綜效的估計，以包括與產品合理化和其他措施相關的銷售成本協同效應的初步估計。我們現在預計到 2025 年，年化 COGS 和營運支出綜效將超過 5,000 萬美元，而先前估計為 4,000 萬美元。

We expect to have realized more than $30 million of those synergies on an annualized run rate basis as we exit 2023. The cost to achieve that higher synergy target is now expected to total approximately $45 million compared to the previous estimate of $40 million with more than $30 million of those dollars being spent in 2023.

我們預計，到2023 年退出時，以年化運行率計算，這些協同效應將實現超過3000 萬美元。實現更高協同效應目標的成本目前預計總計約為4500 萬美元，而之前的估計為4000 萬美元，超過2000 萬美元。其中 3000 萬美元將在 2023 年支出。

We are very pleased with the financial, operational and integration progress that we have achieved so far this year. We will continue to highlight and update our progress on those initiatives on future earnings calls. We plan to host an Investor Day at our Lewisville, Texas headquarters on Wednesday, September 20, at which executive leadership will provide important business updates and longer-term financial guidance.

我們對今年迄今所取得的財務、營運和整合進展感到非常滿意。我們將在未來的財報電話會議上繼續強調和更新這些措施的進展。我們計劃於 9 月 20 日星期三在德克薩斯州路易斯維爾總部舉辦投資者日活動，屆時執行領導層將提供重要的業務更新和長期財務指導。

At this point, I'd like to turn the call back over to Keith to wrap up.

此時，我想將電話轉回給基斯結束。

I'm extremely proud of the Orthofix team and all that we've been able to accomplish so far just 7 months after the closing of the merger. I'd like to thank all the employees of Orthofix for their dedication to the company and their renewed commitment to our mission, which we unveiled earlier this year. We collaborate, innovate and improve the lives of patients. We make it personal, and we aim to do this through our new rally cry: be bold, relentlessly innovate and creatively disrupt.

我對 Orthofix 團隊以及我們在合併結束後僅 7 個月內所取得的成就感到非常自豪。我要感謝 Orthofix 的所有員工對公司的奉獻以及對我們今年早些時候公佈的使命的重新承諾。我們合作、創新並改善患者的生活。我們將其個性化，我們的目標是透過我們新的口號來實現這一目標：大膽、不懈創新和創造性顛覆。

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

此時，接線員，請開通提問線路。

(Operator Instructions) And we will take our first question from Mat Blackman with Stifel.

（操作員說明）我們將接受 Stifel 的 Mat Blackman 提出的第一個問題。

Maybe to start, is there any way -- and I appreciate this is probably challenging. But is there any way to quantify the magnitude of dis-synergies you saw in the second quarter, so revenue dis-synergies? And then maybe this is related. But the SKU rationalization, how far along are you in that? And is there anything baked into the now higher guide for potentially lost sales as you rationalize that -- the portfolio a bit? And then I've got a follow-up.

也許首先，有什麼辦法嗎——我知道這可能很有挑戰性。但有什麼方法可以量化您在第二季度看到的不協同效應（即收入不協同效應）的程度嗎？也許這是相關的。但是 SKU 合理化，你們進展到什麼程度了？當你合理化這一點時，現在更高的指導中是否有任何內容可能會導致銷售損失——投資組合？然後我有一個後續行動。

Mat, so with respect to the first question, we haven't seen a meaningful

Mat，所以關於第一個問題，我們還沒有看到有意義的

(technical difficulty)

（技術難度）

so there's not much to quantify, which is the good news, right? It's more focused on growing and taking market share. And we've been able to successfully navigate through any of the early term revenue dis-synergy risks we saw in the due diligence. The second question was...

所以沒有太多需要量化的，這是好消息，對吧？它更專注於成長和占領市場份額。我們已經能夠成功地應對我們在盡職調查中看到的任何早期收入不協同風險。第二個問題是...

Just rationalizing the portfolio and whether there's potential revenue lost sales as you sort of get rid of some of the legacy products. And is that baked into the higher guide that you have now for the rest of the year?

只是合理化產品組合，以及當您擺脫一些遺留產品時是否存在潛在的收入損失。這是否已納入今年剩餘時間的更高指南中？

Yes, yes. So one of the early decisions made in the first quarter was the rationalization of the overlapping spinal implant systems. And we're really pleased that there's an opportunity to reduce those by about 50%, right? So that's a meaningful reduction in the systems. And the good news is it was a balanced outcome of about half of the go-forward systems will be from legacy Orthofix and the last -- about half from legacy C-spine, so moving forward with both portfolios.

是的是的。因此，第一季做出的早期決定之一是對重疊的脊椎植入系統進行合理化。我們真的很高興有機會將這些減少約 50%，對嗎？因此，這是對系統的有意義的減少。好消息是，這是一個平衡的結果，大約一半的前進系統將來自傳統的 Orthofix，而最後一個系統——大約一半來自傳統的 C-spine，因此這兩個產品組合都將繼續前進。

And while there's a potential for lost revenue, we're being very careful to outline plans for that product rationalization. We've got sort of a runway of short term -- kill immediately short term and then longer-term transition plan.

儘管可能會造成收入損失，但我們正在非常謹慎地制定產品合理化計劃。我們有某種短期跑道——立即取消短期計劃，然後取消長期過渡計劃。

So our goal, as we deploy additional sets, is to put those first to revenue generating growth activities and then opportunistically look to cannibalize existing sales for the systems that aren't going to survive that rationalization over time. And that's going to take time communicating with the surgeons and distributors to make sure that we have a good plan of attack to do that without losing any revenue.

因此，當我們部署更多設備時，我們的目標是先將這些設備用於創收成長活動，然後伺機蠶食那些無法隨著時間的推移而在合理化過程中生存下來的系統的現有銷售。這需要時間與外科醫生和經銷商溝通，以確保我們有一個良好的攻擊計劃來做到這一點而不損失任何收入。

So we feel confident with the plans we've outlined. The goal is to get all of that done within the next 2 years. Some systems will be rationalized sooner than others. Others could take as much as 2 years. But again, we're going to look at how we deploy sets first and foremost for growth and then opportunistically redeploy those sets that aren't going to grow to just accelerate the rationalization where possible.

因此，我們對我們所製定的計劃充滿信心。目標是在未來兩年內完成所有這些工作。有些系統將比其他系統更早合理化。其他人可能需要長達兩年的時間。但同樣，我們將首先考慮如何部署集以實現增長，然後機會主義地重新部署那些不會增長的集，以盡可能加速合理化。

I really, really appreciate that. And then I'll just ask one follow-up. Obviously, nice to hear sort of an increase in the cost synergy expectation. Can you maybe give us an example -- I think and I heard you mentioned gross margin or cost of goods. Just give us an example perhaps of some of the incremental savings you've found? And would it be your hope that as you continue to sort of dig in here that you may uncover incremental opportunities on the cost side above and beyond what you've just laid out?

我真的真的很感激。然後我會問一個後續問題。顯然，很高興聽到成本協同預期增加。您能否給我們舉個例子——我想並且我聽到您提到了毛利率或商品成本。請給我們舉個例子，說明您發現的一些增量節省？您是否希望，當您繼續深入研究時，您可能會發現成本方面的增量機會，超出您剛剛提出的範圍？

Yes. There's definite upside possibilities as we continue to get through each business unit and our long-range strategic planning. But for the cost of goods sold, you might recall when we put out our first synergy targets, the $40 million by year 3, that was really just focused on operating expense synergies because we didn't really have a good sense of what the COGS opportunities would be. And one of the critical decisions to determine what those COGS synergies could be was the product rationalization is a first important step.

是的。隨著我們繼續完善每個業務部門和我們的長期策略規劃，肯定存在上升的可能性。但對於銷售商品的成本，您可能還記得，當我們提出第一個協同目標時，即到第三年達到4000 萬美元，實際上只是關注營運費用協同效應，因為我們並沒有真正了解COGS 的含義。機會將會是。確定這些銷貨成本協同效應的關鍵決策之一是產品合理化，這是重要的第一步。

So the bulk of the increase to approximately $50 million of saving -- for cost synergies by 2025 is coming from the COGS line because now that we've made those critical decisions around product rationalization, we can outline sort of the expectations of savings we'll get from higher purchase volumes for those surviving systems, right, looking at our suppliers and rationalizing suppliers to increase our volumes.

因此，到 2025 年，成本協同效應將增加約 5000 萬美元的節省，其中大部分來自 COGS 系列，因為現在我們已經圍繞產品合理化做出了這些關鍵決策，我們可以概述我們的節省預期。我們將從那些倖存系統的更高採購量中獲得收益，對吧，看看我們的供應商並合理化供應商以增加我們的數量。

There's lots of ancillary cost benefits that come with a supplier rationalization, fewer supplier audits, fewer sustaining resources needed to maintain those legacy systems and that supplier base. So I think there's more opportunity ahead, but we certainly wanted to update the investor community with the savings opportunities we found, particularly at the cost of goods sold line, which should drive the margin accretion we've talked about on prior calls.

供應商合理化、更少的供應商審計、更少的維護這些遺留系統和供應商基礎所需的持續資源會帶來許多輔助成本效益。因此，我認為未來還有更多機會，但我們當然希望向投資者社群通報我們發現的節省機會，特別是在商品銷售成本方面，這應該會推動我們在之前的電話會議中討論過的利潤增長。

And I apologize. I have one more sort of follow-up question on that. Is there a rule of thumb on -- again, let's take this as an example of a higher number for cost synergies. As we think about drop-through versus reinvestment, just in terms of outperformance across any line, are you guys thinking about, again, a sort of rule of thumb of how much you'd let drop through to the bottom line versus how much you'd think about reinvesting? Just any sort of framework to think about that?

我道歉。對此我還有一個後續問題。是否有經驗法則——再一次，讓我們以此作為成本綜效較高數字的例子。當我們考慮直接投資與再投資時，就任何一條線的優異表現而言，你們是否再次考慮一種經驗法則，即您願意讓多少資金到達底線，而不是您要投入多少資金？會考慮再投資嗎？只是任何類型的框架來思考這個問題嗎？

Yes. We're doing that as part of our strategic planning process, which we're deep into, and we mentioned the Analyst Day that we've got scheduled for September 20. I think that's where we'll be able to provide some further color on how much of those synergies we'll kind of take to the bank versus reinvest in other opportunities. So we're certainly looking at both. And some of them will go to the bank, and others will be redeployed towards growth or other efficiency or economies of scale type activity. So more color to come on that as we provide that long-term financial guidance at that investor call.

是的。我們這樣做是作為我們深入研究的戰略規劃流程的一部分，我們提到了定於 9 月 20 日舉行的分析師日。我認為我們將能夠在此提供一些進一步的信息我們將在多大程度上將這些綜效帶給銀行，而不是再投資其他機會。所以我們肯定會同時考慮兩者。其中一些將進入銀行，另一些將被重新部署用於成長或其他效率或規模經濟類型的活動。當我們在投資者電話會議上提供長期財務指導時，就會有更多的色彩出現。

We will take our next question from Ryan Zimmerman with BTIG.

我們將接受 BTIG 的 Ryan Zimmerman 提出的下一個問題。

This is Ise on for Ryan. First one for me, how has the integration of the sales force progressed so far? And what areas have been most challenging or most impacted by this integration process?

這是瑞安的一誠。我的第一個問題是，到目前為止，銷售團隊的整合進度如何？哪些領域最具挑戰性或受此整合過程影響最大？

Really, most of the integration is going on as we speak. I think that a lot of what we did first as we started merging was just to make sure there's stability. Obviously, the first step is getting all sales management in place, getting structure in place. There's obviously relationships to both existing and turning over new relationships. So feel good about the stability of the teams.

事實上，就在我們說話的時候，大部分整合正在進行中。我認為我們開始合併時首先做的很多事情只是為了確保穩定性。顯然，第一步是讓所有銷售管理到位，讓結構到位。顯然，現有關係和新關係都存在著關係。所以對球隊的穩定性感覺良好。

I think we have some great examples already of distributors that have been coming together and joining forces instead of having to pick through opposing forces. So I think we have a good formula in place. We're going to continue to rationalize and integrate as the year and early next year progresses as well. But we've always kind of mapped this out. This is not a quick play. This is something that will be done over the course of a few to 5 quarters, something like that.

我認為我們已經有一些很好的例子，分銷商已經走到一起，聯合起來，而不是必須在對立的力量中進行選擇。所以我認為我們已經制定了一個很好的公式。隨著今年和明年初的進展，我們將繼續合理化和整合。但我們總是對此進行規劃。這不是一場快速的比賽。這將在幾個到五個季度的時間內完成，類似的事情。

(Operator Instructions) And we will take our next question from Jeffrey Cohen with Ladenburg Thalmann.

（操作員說明）我們將回答 Jeffrey Cohen 和 Ladenburg Thalmann 提出的下一個問題。

Just a couple from our end. So could you talk about some of the -- I hate to ask again about the selling channels and the 7D? And how is 7D involved in driving some of the complex cases that you called out? And specifically in the complex cases, could you stratify for us where that's being driven from? And what's become more complex? Is it the sales of Orthofix products or the cases that you're seeing and that are being conducted by your physicians being more complex in nature?

離我們這邊只有幾個。那麼你能談談一些——我不想再問有關銷售管道和 7D 的問題嗎？ 7D 是如何參與推動您提到的一些複雜案例的？特別是在複雜的情況下，您能為我們分層一下這是從哪裡驅動的嗎？什麼變得更加複雜？是 Orthofix 產品的銷售還是您所看到的以及您的醫生正在處理的病例本質上更加複雜？

Yes, it's a good direction, Jeff. I'll tell you, it's interesting. Part of what we're seeing in the complexity of cases is, don't forget, we've advanced and nicely kind of integrated portions of our Mariner Deformity System and with our 7D. Certainly, a lot of the momentum we're getting on 7D is excitement in and around deformity. We continue to not only advance applications but make sure that the more we're doing in that area is really demonstrating [radiationless] or limited radiation for those patients.

是的，這是一個很好的方向，傑夫。我告訴你，這很有趣。我們在案例的複雜性中看到的一部分是，不要忘記，我們已經將我們的水手變形系統和 7D 進行了先進且完美的整合部分。當然，我們在 7D 上獲得的動力很大程度上來自於畸形及其周圍的興奮。我們不僅繼續推進應用，而且確保我們在該領域所做的更多工作真正為這些患者展示了[無輻射]或有限輻射。

And deformity care often has some of the highest uses of radiation overall. And I think the combination of the 2, with the product line expansion and the ability of 7D to continue to be the preferred choice for deformity, has created this greater awareness and greater opportunity for us in that sector. And then, of course, there is a great opportunity that marries in if needed for the patient from a BGT perspective.

畸形護理通常是輻射使用率最高的部分。我認為這兩者的結合，加上產品線的擴展和 7D 繼續成為畸形患者首選的能力，為我們在該領域創造了更大的意識和更大的機會。當然，從 BGT 的角度來看，如果患者需要的話，這是一個很好的結合機會。

So we're excited that, that true continuum of care is we can help plan a case. We can help integrate the case in the OR. And then, of course, postoperatively, if it's necessary to have an additional treatment modality, we can assist with BGT.

所以我們很高興，真正的連續護理是我們可以幫助規劃一個案例。我們可以幫助將病例整合到手術室中。當然，術後如果需要額外的治療方式，我們可以協助 BGT。

Okay. Got it. And one more if I may. The -- you talked a little at the beginning of the call about AccelStim and its 20% quarter-over-quarter sequential growth. Could you -- has that become material yet for BGT? And then secondly, within BGT, you -- I'm sorry, within biologics, you did call out [osteoco], the collagen matrix. What was the status there, if you could recap with us on that?

好的。知道了。如果可以的話，再來一張。您在電話會議開始時談到了 AccelStim 及其 20% 的季度環比增長。您能否—這已經成為 BGT 的材料了嗎？其次，在 BGT 中，很抱歉，在生物製劑中，您確實提到了 [osteoco]，即膠原蛋白基質。您能和我們一起回顧那裡的情況嗎？

Yes. Just think about -- the second one, we'll answer first. That's going to be a later this year launch, but we're excited about it and certainly getting plans in place and getting everything organized. We're most excited just because that has been traditionally an area for both legacy companies that we haven't really been able to fully penetrate. We want to make sure that this particular product line has that ability. We think that it has the features and the kind of handling properties that are going to be exciting in the marketplace for those that like synthetics. The first question was in and around...

是的。想一想──第二個，我們先回答。這將在今年稍後推出，但我們對此感到興奮，並且肯定會制定計劃並組織好一切。我們非常興奮，因為這一直是兩家傳統公司的傳統領域，我們還沒有真正能夠完全滲透。我們希望確保這個特定的產品線具有這種能力。我們認為它所具有的功能和操控性能對於喜歡合成材料的人來說將在市場上令人興奮。第一個問題是在......

On AccelStim. Yes, I mean, it's a meaningful part of the year-over-year growth dollars, Jeff. It's still not a meaningful part of the overall revenue base. So the good news is there's lots of room to grow for AccelStim. And I think that's helping create some pull-through on the Physio-Stim part of that franchise as well. So...

在 AccelStim 上。是的，我的意思是，這是同比增長中有意義的一部分，傑夫。它仍然不是整體收入基礎的重要組成部分。因此，好消息是 AccelStim 有很大的發展空間。我認為這也有助於為該系列的 Physio-Stim 部分創造一些突破。所以...

Yes, I think it was a good marker for that, too, Jeff, is that we kind of focus obviously at the beginning of the year, was our sales meeting. And obviously, that was a product that was focused on. And love seeing that post-sales meeting, we continue to see more and more momentum with it. So we're certainly very excited about the uptake and the opportunity that's ahead with them.

是的，我認為這也是一個很好的標誌，傑夫，我們在年初的重點顯然是我們的銷售會議。顯然，這是一個受到關注的產品。我們很高興看到售後會議，我們繼續看到它越來越強勁的勢頭。因此，我們當然對他們的接受度和機會感到非常興奮。

And we will take our final question from David Turkaly with JMP Securities.

我們將回答 JMP 證券公司的 David Turkaly 提出的最後一個問題。

I think you called out -- actually, maybe it was Keith that -- cervical being the fastest growing department of -- hello?

我想你喊了——實際上，也許是基斯——子宮頸是生長最快的部門——你好？

Yes, you're back. We lost you for a moment. So you said about cervical?

是的，你回來了。我們暫時失去了你。那你說的是頸椎病嗎？

I apologize. I felt like nobody can hear me, so that's my bad. I think you called out cervical as being the fastest component of the spine franchise. And if we look at that sort of $105 million base, I was wondering if you could maybe help us think about how big cervical is and maybe even relative to lumbar in that spinal implant business.

我道歉。我覺得沒人聽得到我的聲音，所以這是我的錯。我認為您將頸椎稱為脊椎系列中最快的組成部分。如果我們看看這個 1.05 億美元的基數，我想知道您是否可以幫助我們考慮一下在脊椎植入物業務中頸椎有多大，甚至可能相對於腰椎有多大。

Yes. So I think you know that cervical procedures largely as a average revenue per case are often lower. The biggest opportunity or the highest billable is posterior cervical. I think the excitement we have, though, specifically on the cervical product line is it was a newer portfolio for legacy C-spine. And so we're getting a lot of excitement, and we're putting investments in sets and making sure that we can take advantage of a broader distribution base now being able to promote all of the cervical fusion range.

是的。所以我想你知道子宮頸手術在很大程度上是因為每個病例的平均收入通常較低。最大的機會或最高的費用是後頸椎。不過，我認為我們特別興奮的是頸椎產品線，因為它是傳統 C 型脊椎的更新產品組合。因此，我們感到非常興奮，我們正在對套件進行投資，並確保我們可以利用更廣泛的分銷基礎，現在能夠推廣所有頸椎融合系列。

And then in addition to that, obviously, a good cervical fusion portfolio meets nicely with a strong motion preservation in cervical. We're excited about it, as I mentioned, the 7-year data. That 7-year data really aligns nicely to what we've seen elsewhere in the industry. But again, we have to make sure that we are -- have enough sets and enough support to properly launch that in the broader distribution area. But it is an area of focus, and it is one that I think that we have the newest product range on the market.

除此之外，顯然，良好的頸椎融合組合可以很好地滿足頸椎的強大運動保護。正如我所提到的，我們對 7 年的數據感到興奮。 7 年的數據確實與我們在行業其他地方看到的數據非常吻合。但同樣，我們必須確保我們擁有足夠的設備和足夠的支持，以便在更廣泛的發行區域正確啟動它。但這是一個重點領域，我認為我們在市場上擁有最新的產品系列。

And I guess as a quick follow-up, if you look at bone growth therapies, obviously growing well. Any thoughts about -- from Keith, from your standpoint, about that selling channel? Should your spinal implants and maybe the Stim be sold together? Or should you have separate forces? Or I guess I'd love to hear your thoughts on how you plan on managing sort of those 2 franchises, specifically on the spinal side.

我想作為一個快速的後續行動，如果你看看骨骼生長療法，顯然生長得很好。從您的角度來看，基思對銷售管道有什麼想法嗎？您的脊椎植入物和 Stim 是否應該一起出售？或者你應該有單獨的力量嗎？或者我想我很想聽聽您對計劃如何管理這兩個特許經營權的想法，特別是在脊柱方面。

Yes. It's actually something we do, are strategically looking at and trying to continue to refine. I'll tell you, it's been great. We just had our quarterly business review just a couple of weeks ago, 10 days -- a couple of weeks ago with that team. And they, without a doubt, are the team that has seen more cross-selling synergies and have been doing a very nice job of getting more and more of the new distribution channel to them involved.

是的。這實際上是我們正在做的事情，正在策略性地考慮並試圖繼續改進。我告訴你，這太棒了。就在幾週前，十天前，我們剛剛與該團隊進行了季度業務審查。毫無疑問，他們是一支看到了更多交叉銷售協同效應的團隊，並且在讓越來越多的新分銷管道參與其中方面做得非常好。

When I say involved, making sure that there's an incentive for the spine teams that are out there to not only engage with their surgeons but also engage with local representations. Keep in mind, our BGT group is very unique in that they have a very close relationship with patients as they're fitted or taken care of. And so there is an important handoff. And so it was great at that QBR to see how much cross-referencing is going on and how much co-selling is going on.

當我說參與時，確保脊椎團隊有動力，不僅與外科醫生接觸，而且與當地代表接觸。請記住，我們的 BGT 團隊非常獨特，因為他們在安裝或照顧患者時與患者有著非常密切的關係。因此，有一個重要的交接。因此，在 QBR 上看到有多少交叉引用以及有多少共同銷售是很棒的。

And so clearly, there is an opportunity to continue to expand that. And I think that team has got some really nice plans to continue to incentivize and drive that forward because, keep in mind, there's a very large team that's now been introduced to BGT that did have that exposure late last year or anytime last year.

顯然，我們有機會繼續擴大這個範圍。我認為該團隊已經制定了一些非常好的計劃來繼續激勵和推動這一進程，因為請記住，現在有一個非常大的團隊被引入了BGT，他們在去年年底或去年的某個時候確實有過這種接觸。

And there are no further questions at this time. I will now turn the call back to Mr. Keith Valentine for closing remarks.

目前沒有其他問題。現在，我將把電話轉回給基斯·瓦倫丁先生，讓他致閉幕詞。

Thank you again for joining us this afternoon. We look forward to the rest of 2023 and will leverage the momentum we've built since the merger to deliver even more impressive performance going forward. Have a great afternoon and evening, and thank you again for your interest in Orthofix.

再次感謝您今天下午加入我們。我們期待 2023 年剩餘時間，並將利用合併以來建立的勢頭，在未來提供更令人印象深刻的業績。祝您有個愉快的下午和晚上，再次感謝您對 Orthofix 的興趣。

Ladies and gentlemen, this concludes today's call, and we thank you for your participation. You may now disconnect.

女士們、先生們，今天的電話會議到此結束，我們感謝你們的參與。您現在可以斷開連接。