Patterson Companies Inc (PDCO) 2023 Q4 法說會逐字稿

Hello, and welcome to the Patterson Companies Inc. Fourth Quarter Fiscal 2023 Earnings Conference Call. (Operator Instructions)

您好，歡迎參加 Patterson Companies Inc. 2023 財年第四季度收益電話會議。 （操作員說明）

I will now turn the conference over to John Wright, Vice President of Investor Relations. Please go ahead.

我現在將會議交給投資者關係副總裁約翰·賴特 (John Wright)。請繼續。

Thank you, operator. Good morning, everyone, and thank you for participating in Patterson Companies Fiscal 2023 Fourth Quarter and Full Year Conference Call. Joining me today are Patterson President and Chief Executive Officer, Don Zurbay, and Patterson Chief Financial Officer, Kevin Barry.

謝謝你，接線員。大家早上好，感謝您參加 Patterson Companies 2023 財年第四季度和全年電話會議。今天與我一起出席的有帕特森總裁兼首席執行官唐·祖貝 (Don Zurbay) 和帕特森首席財務官凱文·巴里 (Kevin Barry)。

After a review of our results and outlook by management, we will open the call to your questions. Before we begin, let me remind you that certain statements made during this conference call are forward-looking in nature and subject to certain risks and uncertainties. These factors, which could cause actual results to materially differ from those indicated in such forward-looking statements are discussed in detail in our Form 10-K and our other filings with the Securities and Exchange Commission. We encourage you to review this material.

管理層對我們的結果和前景進行審查後，我們將召開電話會議回答您的問題。在開始之前，請允許我提醒您，本次電話會議中所做的某些陳述本質上具有前瞻性，並存在一定的風險和不確定性。這些因素可能導致實際結果與此類前瞻性陳述中所示的結果存在重大差異，我們在 10-K 表格和向美國證券交易委員會提交的其他文件中詳細討論了這些因素。我們鼓勵您查看此材料。

In addition, comments about the markets we serve, including growth rates and market shares, are based upon the company's internal analysis and estimates. The content of this conference call contains time-sensitive information that is accurate only as of the date of the live broadcast, June 21, 2023. Patterson undertakes no obligation to revise or update any forward-looking statements to reflect events or circumstances after the date of this call. Also, a financial slide presentation can be found in the Investor Relations section of our website at pattersoncompanies.com.

此外，對我們所服務的市場的評論，包括增長率和市場份額，都是基於公司的內部分析和估計。本次電話會議的內容包含時間敏感信息，僅截至直播日期（2023 年 6 月 21 日）準確。帕特森不承擔修改或更新任何前瞻性陳述以反映該日期之後的事件或情況的義務這次通話的。此外，您還可以在我們網站 pattersoncompanies.com 的投資者關係部分找到財務幻燈片演示。

Please note that in this morning's conference call, we will reference our adjusted results for the fourth quarter and full year fiscal '23. A reconciliation table in our press release is provided to adjust reported GAAP measures, namely operating income, other income, expense, net income before taxes, income tax expense, net income, net income attributable to Patterson Companies, Inc. and diluted earnings per share attributable to Patterson Companies, Inc. or the impact of deal amortization, integration and business restructuring expenses, legal reserves, inventory donation charges and gains on investments, along with the related tax effects of these items.

請注意，在今天上午的電話會議中，我們將參考第四季度和 23 財年全年的調整後業績。我們的新聞稿中提供了一個調節表，用於調整報告的 GAAP 指標，即營業收入、其他收入、費用、稅前淨收入、所得稅費用、淨收入、歸屬於 Patterson Companies, Inc. 的淨收入和稀釋每股收益歸因於 Patterson Companies, Inc. 的影響或交易攤銷、整合和業務重組費用、法定準備金、庫存捐贈費用和投資收益的影響，以及這些項目的相關稅收影響。

We will also discuss free cash flow as defined in our earnings release, which is a non-GAAP measure and use the term internal sales to represent net sales adjusted to exclude the impact of foreign currency, contributions from recent acquisitions and the extra week of selling results in the first quarter of fiscal '22. These non-GAAP measures are not intended to be a substitute for our GAAP results. This call is being recorded and will be available for replay starting at 10 a.m. Central Time for a period of 1 week. Now I'd like to hand the call over to Don Zurbay.

我們還將討論收益發布中定義的自由現金流，這是一種非公認會計原則衡量標準，並使用內部銷售額一詞來表示調整後的淨銷售額，以排除外幣的影響、最近收購的貢獻以及額外一周的銷售'22 財年第一季度的業績。這些非公認會計準則衡量標準無意取代我們的公認會計準則結果。此通話正在錄音，並可在中部時間上午 10 點開始重播，為期 1 週。現在我想把電話轉給唐·祖爾貝 (Don Zurbay)。

Thanks, John, and good morning, everyone. Patterson had an exceptionally strong fourth quarter, including a fiscal year in which we achieved our financial goals and delivered value for our customers and shareholders. On the top line, year-over-year internal sales increased approximately 6% during the fourth quarter and increased nearly 3% for the fiscal year including sales growth across both the Dental and Animal Health segments.

謝謝約翰，大家早上好。帕特森第四季度的表現異常強勁，包括我們實現財務目標並為客戶和股東創造價值的財年。在營收方面，第四季度內部銷售額同比增長約 6%，本財年增長近 3%，其中包括牙科和動物保健領域的銷售額增長。

We delivered year-over-year adjusted operating margin expansion in both of our business segments and for Patterson overall achieving adjusted operating margin of nearly 7% for the fourth quarter and approximately 5% for the fiscal year. Our strong performance enabled us to return $157 million to shareholders during fiscal '23 in the form of cash dividends and share repurchases. And we delivered fiscal '23 adjusted EPS growth of 7% year-over-year, culminated by a record fourth quarter of $0.84 per diluted share, an 18% increase compared to the prior year. These results are a clear demonstration that our value proposition continues to resonate with customers, progress we are making to drive margin improvement and outstanding execution against our strategic plan. I'm proud of the entire Patterson team and grateful for their continued hard work and dedication.

我們的兩個業務部門均實現了同比調整後營業利潤率擴張，帕特森第四季度整體調整後營業利潤率接近 7%，本財年調整後營業利潤率約為 5%。我們強勁的業績使我們能夠在 23 財年以現金股息和股票回購的形式向股東返還 1.57 億美元。我們的 23 財年調整後每股收益同比增長 7%，第四季度稀釋後每股收益達到創紀錄的 0.84 美元，比上一年增長 18%。這些結果清楚地表明我們的價值主張繼續與客戶產生共鳴，我們在推動利潤率提高方面取得的進展以及我們戰略計劃的出色執行。我為整個帕特森團隊感到自豪，並感謝他們持續的辛勤工作和奉獻精神。

Before we jump into the details of the quarter, I'd like to take a step back to put our results in context. Our strong performance during the fourth quarter and throughout fiscal '23 as a continuation of the momentum we have been building for several years. I joined Patterson 5 years ago during the early months of fiscal 2019. At that time, Patterson was experiencing challenges that were reflected in several areas, including the company's financial results. In my previous role as CFO, I worked closely with the rest of our leadership team to develop a strategy to change the trajectory of the business, accelerate our performance and position Patterson for sustainable, long-term value creation. Thanks to the focused efforts of the entire Patterson team, I believe we have more than delivered on these objectives.

在我們深入了解本季度的細節之前，我想先回顧一下我們的結果。我們在第四季度和整個 23 財年的強勁表現是我們多年來建立的勢頭的延續。我於 5 年前在 2019 財年的頭幾個月加入 Patterson。當時，Patterson 正在經歷多個領域的挑戰，包括公司的財務業績。在擔任首席財務官之前，我與領導團隊的其他成員密切合作，制定了一項戰略，以改變業務發展軌跡，提高我們的績效，並使帕特森能夠創造可持續的長期價值。感謝整個帕特森團隊的集中努力，我相信我們已經實現了這些目標。

During the period from fiscal '19 to fiscal '23, we have increased reported net sales by $1 billion with average annual internal sales growth of 5%, increased our adjusted operating margin from 3.7% for fiscal '19 to 4.9% in fiscal '23, with an average annual improvement of 30 basis points. And we increased our adjusted EPS for $1.40 for fiscal '19 to $2.42 per diluted share in fiscal '23, with an average annual improvement of 15%. Our strong and continually improving year-over-year financial results is clear evidence that our strategy is working. And the numbers are particularly impressive, given the past 5 years include the historic challenges posed by the pandemic and other macroeconomic factors. The key takeaway is that we have a great foundation to build from and a proven track record of success. And with the combination of our culture, strategy and people, I am confident we will continue to drive improved performance over time.

在 19 財年至 23 財年期間，我們報告的淨銷售額增加了 10 億美元，內部銷售年均增長率為 5%，調整後的營業利潤率從 19 財年的 3.7% 提高到 23 財年的 4.9% ，年均提高30個基點。我們將 19 財年調整後每股收益 1.40 美元提高到 23 財年攤薄每股 2.42 美元，年均增長 15%。我們強勁且持續改善的逐年財務業績明確證明我們的戰略正在發揮作用。考慮到過去五年中疫情和其他宏觀經濟因素帶​​來的歷史性挑戰，這些數字尤其令人印象深刻。關鍵的一點是，我們擁有良好的基礎和良好的成功記錄。通過我們的文化、戰略和人員的結合，我相信我們將隨著時間的推移繼續推動績效的提高。

Now I'll provide some more detail on the growth drivers in each of our segments during the fiscal fourth quarter before sharing some perspective on the path ahead. Let's start with Dental. In the fourth quarter, Dental segment internal sales increased 8% year-over-year, including growth across our consumables, equipment and value-added service categories. We also achieved year-over-year operating margin expansion in the fourth quarter and for the full fiscal year. A few specific highlights from our Dental segment. First, equipment sales were up 19% in the fourth quarter on a tough prior year comparison, driven by strength across all equipment categories. As we've discussed previously, our quarterly equipment results can fluctuate quarter-to-quarter due to factors that influence the timing of sales. But when you widen the lens, the long-term trend of our equipment sales performance provides a clear view of our strength in this category.

現在，我將提供有關第四財季每個部門的增長驅動因素的更多詳細信息，然後再分享對未來道路的一些看法。讓我們從牙科開始吧。第四季度，牙科部門內部銷售額同比增長 8%，其中消耗品、設備和增值服務類別均實現增長。我們還在第四季度和整個財年實現了同比營業利潤率增長。我們牙科部門的一些具體亮點。首先，在所有設備類別的強勁推動下，第四季度設備銷售額與去年同期相比增長了 19%。正如我們之前討論的，由於影響銷售時間的因素，我們的季度設備業績可能會出現季度波動。但當你擴大視野時，我們設備銷售業績的長期趨勢可以清楚地看到我們在這一類別中的實力。

Over the last 8 quarters, our average quarterly equipment internal sales growth is 8%. Evidence that our dental customers are investing in their practices and a testament to our value proposition and market-leading capability to sell, finance, install and service new technology innovation. Second, our consumables portfolio of non-infection control products continued to perform well with over 4% internal sales growth. Within our infection control product portfolio, we are still experiencing a deflationary impact for certain products compared to the year ago period. While this impact is moderating, we expect this trend to persist into fiscal '24 and stabilize in the second half of the year. And third, our value-added service category achieved double-digit internal sales growth during the fourth quarter primarily due to strong performance in technical service, software and e-services.

在過去 8 個季度中，我們的平均季度設備內部銷售增長率為 8%。我們的牙科客戶正在投資於他們的實踐，這證明了我們的價值主張和銷售、融資、安裝和服務新技術創新的市場領先能力。其次，我們的非感染控制產品消耗品組合繼續表現良好，內部銷售增長超過4%。在我們的感染控制產品組合中，與去年同期相比，某些產品仍然受到通貨緊縮的影響。雖然這種影響正在減弱，但我們預計這種趨勢將持續到 24 財年，並在下半年趨於穩定。第三，我們的增值服務類別在第四季度實現了兩位數的內部銷售增長，這主要得益於技術服務、軟件和電子服務的強勁表現。

Value-added services represents a comprehensive suite of offerings we provide to our customers that makes us an indispensable partner to their practice. These offerings are central to our value proposition, create sticky customer relationships and enhance profitability. A comprehensive suite of software and e-services products include on-premise and cloud-based solutions that handle everything from revenue cycle management to practice analytics and insights and patient communication. These products truly are the nerve center of dental practice to help our customers operate efficiently, scale their business, and provide a better patient experience. Software and e-services are a key part of our strategy going forward, and we will expand our investment in this area to ensure Patterson remains the partner of choice for dentists looking to modernize their practices.

增值服務代表了我們為客戶提供的一整套產品，這使我們成為他們實踐中不可或缺的合作夥伴。這些產品是我們價值主張的核心，可以建立粘性的客戶關係並提高盈利能力。一套全面的軟件和電子服務產品包括本地和基於雲的解決方案，可處理從收入周期管理到實踐分析和見解以及患者溝通的所有事務。這些產品確實是牙科診所的神經中樞，可幫助我們的客戶高效運營、擴大業務並提供更好的患者體驗。軟件和電子服務是我們未來戰略的關鍵部分，我們將擴大在這一領域的投資，以確保帕特森仍然是尋求現代化診所的牙醫的首選合作夥伴。

Additionally, our leading technical service offering both contributes to and benefits from our strong equipment sales and allows us to serve our customers at a higher level. We believe our technical service offering is a competitive advantage for us as our customers turn to and trust Patterson for ensuring their equipment is delivering for their practice. Looking ahead, the dental market remains healthy, and we are confident that our Dental business will continue to benefit from strong fundamentals, including an aging population, demand for practice modernization, a growing appreciation for oral health as a key link to overall health, and consistently strong traffic following a rebound from pandemic levels. I'm proud of the Dental team's execution and commitment to serving our customers.

此外，我們領先的技術服務既有助於我們強勁的設備銷售，也使我們受益匪淺，並使我們能夠為客戶提供更高水平的服務。我們相信，我們的技術服務對我們來說是一種競爭優勢，因為我們的客戶轉向並信任 Patterson，以確保他們的設備能夠滿足他們的實踐需求。展望未來，牙科市場依然健康，我們相信，我們的牙科業務將繼續受益於強勁的基本面，包括人口老齡化、實踐現代化的需求、人們日益認識到口腔健康是整體健康的關鍵環節，以及從大流行水平反彈後，交通持續強勁。我為牙科團隊的執行力和為客戶服務的承諾感到自豪。

Let's now turn to Animal Health. During the fourth quarter of fiscal '23, our internal sales increased 3% year-over-year, driven primarily by sales growth in the companion animal business. The Animal Health segment also achieved operating margin expansion in both the fourth quarter and for the full fiscal year. In Companion, our internal sales in the fourth quarter increased by mid-single digits as we continued to outperform a healthy and growing market. This sustained growth demonstrates the successful continued execution of our plan, including excellent performance from our internal and external sales teams, operational discipline and our value-added consultative approach.

現在讓我們轉向動物健康。在 23 財年第四季度，我們的內部銷售額同比增長 3%，這主要是由伴侶動物業務的銷售增長推動的。動物保健部門在第四季度和整個財年也實現了營業利潤率擴張。在 Companion 中，隨著我們繼續跑贏健康且不斷增長的市場，我們第四季度的內部銷售額實現了中個位數增長。這種持續增長證明了我們計劃的成功持續執行，包括我們內部和外部銷售團隊的出色表現、運營紀律和我們的增值諮詢方法。

On the production animal side, fourth quarter internal sales decreased nearly 1% year-over-year from the impact of certain market headwinds and including the drought impact on (inaudible) and antibiotic pricing pressure that we've discussed previously. Despite these challenges, Patterson delivered low single-digit internal sales growth for the full fiscal year as we benefited from the depth of our offerings and omnichannel presence. Patterson is well-positioned to navigate different market cycles because of our comprehensive solutions for diverse customers across a wide range of animal species.

在生產動物方面，由於某些市場逆風的影響，包括我們之前討論過的干旱影響（聽不清）和抗生素定價壓力，第四季度內部銷售額同比下降近 1%。儘管面臨這些挑戰，帕特森在整個財年實現了較低的個位數內部銷售增長，因為我們受益於我們的產品深度和全渠道業務。 Patterson 憑藉我們為各種動物物種的不同客戶提供的全面解決方案，能夠很好地駕馭不同的市場週期。

Across the Animal Health segment, our value-added services category delivered double-digit growth during the fourth quarter and for the full fiscal year. Largely attributed to strong sales of our software solutions and equipment service. Similar to our Dental business, we offer a robust software portfolio to our veterinary customers and provides them with critical infrastructure to manage and execute their daily workflows. We remain focused on positioning Patterson Animal Health who is the leading provider of technology, software, data insights, services and products to the animal health industry. As we enter fiscal 2024 with momentum across the business, I want to take a few minutes to touch on our key areas of focus going forward.

在動物保健領域，我們的增值服務類別在第四季度和整個財年實現了兩位數的增長。很大程度上歸功於我們的軟件解決方案和設備服務的強勁銷售。與我們的牙科業務類似，我們為獸醫客戶提供強大的軟件產品組合，並為他們提供關鍵基礎設施來管理和執行日常工作流程。我們仍然專注於將 Patterson Animal Health 定位為動物保健行業技術、軟件、數據洞察、服務和產品的領先提供商。隨著我們進入 2024 財年，整個業務勢頭強勁，我想花幾分鐘時間談談我們未來的重點關注領域。

We continue to execute and refine our overall strategy, which is designed to achieve 4 core objectives. First, drive revenue growth above the current end market growth rates. Second, build upon the progress we've made to enhance our margin performance. Third, continually evolve our products, channels and services to best serve the customers in our end markets. And fourth, improve efficiency and optimization. This objective includes a rigorous focus on cost discipline as well as targeted investments to leverage best practices and advance operational excellence across the entire enterprise. Patterson is well-positioned to achieve these objectives, and our team is aligned around several initiatives that build upon our momentum and advance our strategic goals.

我們繼續執行和完善我們的總體戰略，旨在實現 4 個核心目標。首先，推動收入增長高於當前終端市場增長率。其次，在我們已經取得的進展的基礎上，提高我們的利潤表現。第三，不斷發展我們的產品、渠道和服務，為終端市場的客戶提供最好的服務。第四，提高效率和優化。這一目標包括嚴格關注成本紀律以及有針對性的投資，以利用最佳實踐並促進整個企業的卓越運營。帕特森完全有能力實現這些目標，我們的團隊圍繞多項舉措保持一致，這些舉措增強了我們的勢頭並推進了我們的戰略目標。

I'd like to highlight a few of the key areas of focus in the year ahead which includes expanding our investments in strategic growth opportunities like software and value-added services. There has been a growing demand among our customers and vendors for tightly integrated software technology and actionable data and insights to drive top and bottom line growth and compete more effectively. As we've discussed today, Patterson already offers a robust suite of software solutions in both our Dental and Animal Health segments. But we believe the opportunity for growth within software remains significant. As we move forward, we are expanding our investment in our existing solutions to better leverage our strong foundation and to our capabilities and address evolving customer preferences.

我想強調未來一年的一些關鍵重點領域，其中包括擴大我們對軟件和增值服務等戰略增長機會的投資。我們的客戶和供應商對緊密集成的軟件技術以及可操作的數據和見解的需求不斷增長，以推動營收和利潤的增長並更有效地競爭。正如我們今天所討論的，Patterson 已經在我們的牙科和動物健康領域提供了一套強大的軟件解決方案。但我們相信軟件領域的增長機會仍然很大。隨著我們的前進，我們正在擴大對現有解決方案的投資，以更好地利用我們強大的基礎和能力，並滿足不斷變化的客戶偏好。

Beyond software, we are also focused on expanding our value-added services more broadly. Customers are increasingly turning to partners like Patterson to address their central business needs and ease their administrative burden. Value-added services have been an important and differentiating category at Patterson for some time. However, I believe we can achieve more in this area, and it will remain a top priority. Importantly, our comprehensive value-added services offerings are central to the value proposition of our core distribution categories and drive sales across consumables and equipment. While we expand investments in key areas, we are also focusing on adapting our business to meet evolving industry dynamics.

除了軟件之外，我們還致力於更廣泛地擴展我們的增值服務。客戶越來越多地轉向像 Patterson 這樣的合作夥伴來滿足他們的核心業務需求並減輕他們的管理負擔。一段時間以來，增值服務一直是 Patterson 的一個重要且差異化的類別。不過，我相信我們可以在這一領域取得更多成就，並且仍將是重中之重。重要的是，我們全面的增值服務產品對於我們核心分銷類別的價值主張至關重要，並推動消耗品和設備的銷售。在我們擴大關鍵領域投資的同時，我們還專注於調整我們的業務，以滿足不斷變化的行業動態。

As our customers' needs change, we will adapt to meet them where they are and exceed their expectations including a continued focus on product and channel optimization to ensure our go-to-market approach is designed to best serve and strengthen the people who keep us and our animals healthy. To meet these changing expectations, we must also be willing to drive greater efficiencies within all areas of our organization. Across the business, we are committed to expanding our best practices, managing our expenses, and leveraging common platforms and eliminating redundancies. Taken together, our strategic areas of focus build upon our strong foundation and success over the past several years to further distinguish our market position and drive enhanced growth, profitability to value creation over the long-term.

隨著客戶需求的變化，我們將適應他們的需求並超越他們的期望，包括持續關注產品和渠道優化，以確保我們的市場進入方法能夠最好地服務和加強留住我們的員工我們的動物健康。為了滿足這些不斷變化的期望，我們還必須願意提高組織所有領域的效率。在整個業務範圍內，我們致力於擴展我們的最佳實踐、管理我們的費用、利用通用平台並消除冗餘。總而言之，我們的戰略重點領域建立在過去幾年的堅實基礎和成功之上，以進一步區分我們的市場地位，並推動長期增長、盈利能力和價值創造。

Our strategy is reflected in the fiscal '24 adjusted earnings guidance range of $2.45 to $2.55 per diluted share that we initiated today. This guidance accounts for our plans to invest behind strategic growth opportunities as well as our commitment to deliver year-over-year internal sales growth and adjusted operating margin expansion for the total company and across both our Dental and Animal Health segments. Now I'll turn the call over to Kevin Barry to provide more detail on our financial results.

我們的戰略反映在我們今天啟動的 24 財年調整後每股攤薄收益指引範圍 2.45 美元至 2.55 美元中​​。該指導說明了我們投資戰略增長機會的計劃，以及我們為整個公司以及牙科和動物保健部門實現內部銷售同比增長和調整後營業利潤擴張的承諾。現在我將把電話轉給凱文·巴里 (Kevin Barry)，以提供有關我們財務業績的更多詳細信息。

Thank you, Don, and good morning, everyone. In my prepared remarks, I will cover the financial results for our fourth quarter of fiscal '23, which ended on April 29, 2023, as well as our full year results for fiscal '23. I will also discuss our fiscal '24 earnings guidance we issued this morning along with several modeling assumptions related to the financial outlook for the next fiscal year.

謝謝你，唐，大家早上好。在我準備好的發言中，我將介紹截至 2023 年 4 月 29 日結束的 23 財年第四季度的財務業績，以及 23 財年的全年業績。我還將討論我們今天早上發布的 24 財年盈利指引，以及與下一財年財務前景相關的幾個建模假設。

Consolidated reported sales for Patterson Companies in our fiscal '23 fourth quarter were $1.7 billion, an increase of 5.0% versus the fourth quarter 1 year ago. Internal sales for the fourth quarter of fiscal '23, which are adjusted for the effects of currency translation and contributions from recent acquisitions increased 5.7% compared to the same period last fiscal year. For the full year of fiscal '23, Consolidated reported sales for Patterson Companies were $6.5 billion, a decrease of 0.4% versus the same period 1 year ago. Internal sales for fiscal '23, which are adjusted for the effects of currency translation, contributions from recent acquisitions, and the extra week of selling results in the first quarter of fiscal 2022 increased 2.9% compared to fiscal 2022.

Patterson Companies 在 2023 財年第四季度的綜合銷售額為 17 億美元，與一年前第四季度相比增長了 5.0%。 23 財年第四季度的內部銷售額（根據貨幣換算的影響和近期收購的貢獻進行調整）與上一財年同期相比增長了 5.7%。 23 財年全年，帕特森公司綜合報告銷售額為 65 億美元，比一年前同期下降 0.4%。 23 財年的內部銷售額（根據貨幣換算的影響、最近收購的貢獻以及 2022 財年第一季度額外一周的銷售業績進行調整）與 2022 財年相比增長了 2.9%。

Our fourth quarter fiscal '23 gross margin was 22.6% and an increase of 140 basis points compared to the prior year. Our gross margin in the fourth quarter of fiscal '23 was negatively impacted by 10 basis points by the mark-to-market accounting adjustment from rising interest rates on our equipment financing portfolio. Any positive or negative impact related to our equipment financing portfolio is nearly offset by our corresponding hedging instrument which is reflected in the interest and other expense line on our P&L. So the net result has a minimal impact on our adjusted earnings per share. If you recall, this dynamic also occurred in the fourth quarter of last fiscal year when the negative impact of the mark-to-market accounting calculation was 50 basis points.

我們 23 財年第四季度的毛利率為 22.6%，比上一年增加了 140 個基點。由於設備融資組合利率上升而按市值計價的會計調整，我們 23 財年第四季度的毛利率受到了 10 個基點的負面影響。與我們的設備融資組合相關的任何正面或負面影響幾乎都被我們相應的對沖工具所抵消，這些對沖工具反映在我們損益表的利息和其他費用項目中。因此，最終結果對我們調整後每股收益的影響很小。如果您還記得的話，這種動態也發生在上一財年第四季度，當時按市值計算的會計計算的負面影響為 50 個基點。

When normalizing for market-to-market accounting adjustments in both periods, our gross margin rate in the fourth quarter of fiscal '23 is 100 basis points higher than the fourth quarter of fiscal '22. Remember, the accounting impact of the mark-to-market adjustment impacts our total company gross margin, but not the gross margin within our business segment. For the full year of fiscal '23, our adjusted gross margin was 21.2%, an improvement of 138 basis points compared to the full year of fiscal [2022]. Normalizing for the impact of the mark-to-market accounting adjustment to the equipment financing portfolio in both periods resulted in a 50 basis points improvement in our gross margin in fiscal '23 compared to fiscal '22.

當對兩個時期的市場對市場會計調整進行正常化時，我們在 23 財年第四季度的毛利率比 22 財年第四季度高出 100 個基點。請記住，按市價調整的會計影響會影響我們公司的總毛利率，但不會影響我們業務部門的毛利率。在 23 財年全年，我們調整後的毛利率為 21.2%，比 [2022] 財年全年提高了 138 個基點。將這兩個時期按市價計價的會計調整對設備融資組合的影響進行標準化，導致我們 23 財年的毛利率比 22 財年提高了 50 個基點。

Importantly, during the fiscal fourth quarter and for the entire fiscal '23 year, each of our business units posted a year-over-year increase to their respective gross margins versus the prior year period. Across the company, we continue to focus on pricing and cost execution and improving our mix by driving higher growth of margin-accretive product categories.

重要的是，在第四財季和整個 23 財年，我們每個業務部門的毛利率均較上年同期有所增長。在整個公司範圍內，我們繼續關注定價和成本執行，並通過推動利潤增長產品類別的更高增長來改善我們的產品組合。

Adjusted operating expenses as a percentage of net sales for the fourth quarter of fiscal '23 were 16.0% and favorable by 26 basis points compared to the fourth quarter of fiscal '22. For the full year of fiscal 2023, adjusted operating expenses as a percentage of net sales were 16.4% and slightly unfavorable to the prior year by 15 basis points compared to fiscal '22. In the fourth quarter of fiscal '23, our consolidated adjusted operating margin was 6.7%, an increase of 166 basis points compared to the fourth quarter of last year. For the full year fiscal '23, our consolidated adjusted operating margin was 4.9%, an improvement of 48 basis points over the prior fiscal year.

23 財年第四季度調整後運營費用占淨銷售額的百分比為 16.0%，與 22 財年第四季度相比提高了 26 個基點。 2023 財年全年，調整後運營費用占淨銷售額的百分比為 16.4%，與上一年相比，與 22 財年相比略有下降 15 個基點。 23財年第四季度，我們的綜合調整後營業利潤率為6.7%，比去年第四季度增長了166個基點。 23 財年全年，我們的綜合調整後營業利潤率為 4.9%，比上一財年提高了 48 個基點。

Again, when normalizing for the accounting impact of the mark-to-market adjustment in both periods related to gross margin consolidated adjusted operating margin for the fourth quarter of fiscal '23 expanded by 110 basis points compared to the fourth quarter of fiscal '22. And for the full year of fiscal '23, consolidated operating margin expanded by 40 basis points over the full year of fiscal '22.

同樣，當對兩個時期按市價調整對毛利率的會計影響進行標準化時，23 財年第四季度的綜合調整後營業利潤率與 22 財年第四季度相比擴大了 110 個基點。 23 財年全年，綜合營業利潤率比 22 財年全年擴大了 40 個基點。

I am proud of our team's efforts to deliver on our commitment to drive operating margin expansion in each of our business segments and for the total company in fiscal '23. The foundational initiatives we put in place to improve gross margin with pricing and cost execution, working more closely with strategic vendors who reward us for our sales performance, driving improved mix, exercising expense discipline and leveraging our cost structure have certainly translated to a higher level of profitability for Patterson. Our adjusted tax rate for the fourth quarter of fiscal '23 was 24.4%, an increase of 140 basis points compared to the prior year. For the full year of fiscal '23, our adjusted tax rate was 23.6%, a decrease of 20 basis points compared to full year fiscal '22.

我為我們的團隊努力兌現我們的承諾而感到自豪，即在 23 財年推動每個業務部門和整個公司的營業利潤率擴張。我們通過定價和成本執行來提高毛利率、與獎勵我們銷售業績的戰略供應商更密切地合作、推動改進組合、實行費用紀律和利用我們的成本結構所採取的基本舉措無疑已經轉化為更高的水平帕特森的盈利能力。我們23財年第四季度的調整後稅率為24.4%，比上年增加140個基點。 23 財年全年，我們的調整後稅率為 23.6%，比 22 財年全年下降了 20 個基點。

Reported net income attributable to Patterson Companies, Inc. for the fourth quarter of fiscal '23 was $75 million or $0.77 per diluted share. This compares to reported net income in the fourth quarter of last year of $63.9 million or $0.65 per diluted share. Adjusted net income attributable to Patterson Companies in the fourth quarter of fiscal '23, which excludes deal amortization and gains on investments to $82.4 million or $0.84 per diluted share, a record quarter for Patterson. This compares to $70.4 million or $0.71 per diluted share in the fourth quarter of fiscal '22. This 18% year-over-year increase in adjusted earnings per diluted share for the fourth quarter was primarily due to increased sales of dental equipment and value-added services as well as operating margin expansion in both business segments.

2023 財年第四季度 Patterson Companies, Inc. 公佈的淨利潤為 7500 萬美元，或攤薄後每股收益 0.77 美元。相比之下，去年第四季度報告的淨利潤為 6390 萬美元，即稀釋後每股收益 0.65 美元。 23 財年第四季度調整後歸屬於帕特森公司的淨利潤（不包括交易攤銷和投資收益）達到 8240 萬美元，即稀釋後每股 0.84 美元，這是帕特森創紀錄的季度業績。相比之下，2022 財年第四季度的 7040 萬美元或稀釋後每股 0.71 美元。第四季度調整後每股攤薄收益同比增長 18%，主要是由於牙科設備和增值服務銷量的增加以及兩個業務部門營業利潤率的擴大。

Both reported and adjusted net income in the fiscal 2023 fourth quarter contained a onetime gain of $3.6 million or $0.03 per diluted share related to the sale of a real estate asset. For the full year of fiscal '23, reported net income attributable to Patterson Companies, Inc. was $207.6 million or $2.12 per diluted share compared to $203.2 million or $2.06 per diluted share in fiscal 2022. Adjusted net income attributable to Patterson Companies, Inc. in fiscal '23, which excludes deal amortization, integration and business restructuring expenses, legal reserves, inventory donation charges and gains on investments, totaled $236.4 million or $2.42 per diluted share compared to $223.7 million or $2.27 per diluted share in the prior fiscal year.

2023 財年第四季度報告和調整後的淨利潤均包含與出售房地產資產相關的一次性收益 360 萬美元，即稀釋後每股收益 0.03 美元。 23 財年全年，歸屬於 Patterson Companies, Inc. 的淨利潤為 2.076 億美元，即稀釋後每股收益 2.12 美元，而 2022 財年為 2.032 億美元，即稀釋後每股收益 2.06 美元。調整後歸屬於 Patterson Companies, Inc. 的淨利潤為 2.076 億美元，即稀釋後每股收益 2.12 美元。 23財年，不包括交易攤銷、整合和業務重組費用、法定準備金、庫存捐贈費用和投資收益，總計為2.364億美元，即稀釋後每股2.42美元，而上一財年為2.237億美元，即稀釋後每股2.27美元。

Now let's turn to our business segments, starting with our Dental business. In the fourth quarter of fiscal '23, internal sales for our Dental business increased 8.0% compared to the fourth quarter of fiscal '22. When excluding the impact of price deflation of certain infection control products, internal sales for our Dental business increased 10.8% in the fourth quarter of fiscal '23 compared to the fourth quarter of fiscal '22. Internal sales of dental consumables in the fourth quarter increased 0.3% compared to 1 year ago. And again, were impacted by the continued moderation of infection control products compared to the pandemic-related performance last year. Internal sales of non-infection control products increased 4.4% in the fiscal fourth quarter compared to the year ago period.

現在讓我們轉向我們的業務部門，從牙科業務開始。在 23 財年第四季度，我們牙科業務的內部銷售額與 22 財年第四季度相比增長了 8.0%。當排除某些感染控制產品價格通貨緊縮的影響時，與 22 財年第四季度相比，23 財年第四季度牙科業務的內部銷售額增長了 10.8%。第四季度牙科耗材內部銷售額較一年前增長0.3%。與去年大流行相關的表現相比，再次受到感染控制產品持續放緩的影響。第四財季非感染控制產品的內部銷售額同比增長 4.4%。

For the full year of fiscal '23, internal sales of consumables declined by 2.1% due to the price deflation of PPE products during the year. Excluding the impact of these products, dental consumables increased by 3.1% in fiscal '23 compared to fiscal '22. In the fourth quarter of fiscal '23, internal sales of dental equipment increased 19.2% compared to the fourth quarter of fiscal '22 with strong growth across all product categories. Our sales team drove equipment demand to finish our fiscal '23 with strong momentum as Dental customers continue to invest to maintain and improve their practices or open additional offices. For the full year of fiscal '23, internal sales of dental equipment increased 4.9% over fiscal '22. Internal sales of value-added services for the fourth quarter of fiscal '23 increased 13.4% over the prior year period led by solid year-over-year performance of our technical service team and continued growth of our software and e-services business.

23財年全年，由於年內PPE產品價格下降，消耗品的內部銷售下降了2.1%。排除這些產品的影響，與 22 財年相比，23 財年牙科耗材增長了 3.1%。 23 財年第四季度，牙科設備的內部銷售額比 22 財年第四季度增長了 19.2%，所有產品類別均強勁增長。隨著牙科客戶繼續投資以維持和改進他們的實踐或開設更多辦事處，我們的銷售團隊以強勁的勢頭推動了設備需求，以完成我們的 23 財年。 23 財年全年，牙科設備的內部銷售額比 22 財年增長了 4.9%。 23 財年第四季度增值服務內部銷售額比上年同期增長 13.4%，這得益於我們技術服務團隊同比穩健的表現以及軟件和電子服務業務的持續增長。

Value-added services represent the entire suite of offerings we provide to our customers that help make us an indispensable partner to their practice, and these valuable offerings are also mix favorable to our P&L. For the full year of fiscal '23, Internal sales of value-added services increased 8.1% compared to fiscal '22. Adjusted operating margins in Dental were 12.1% in the fiscal fourth quarter and a 205 basis point improvement over the prior year period. This operating margin performance in the fourth quarter of fiscal '23 reflects the continued efforts of our dental team to improve gross margins through driving higher growth plus margin-accretive products, as well as exercising continued expense discipline to deliver operating margin expansion in the fiscal fourth quarter of fiscal '23.

增值服務代表了我們向客戶提供的整套產品，幫助我們成為他們實踐中不可或缺的合作夥伴，這些有價值的產品也有利於我們的損益。 23 財年全年，增值服務的內部銷售比 22 財年增長了 8.1%。第四財季牙科業務調整後營業利潤率為 12.1%，比上年同期提高 205 個基點。 23 財年第四季度的營業利潤率表現反映了我們的牙科團隊不斷努力通過推動更高的增長和利潤增值產品來提高毛利率，以及實行持續的費用紀律以在第四財季實現營業利潤率的擴張23 財年季度。

In addition, the dental operating margin contained a onetime gain of $3.6 million related to the sale of a real estate asset in the fourth quarter. For the full year of fiscal '23, adjusted operating margins in our dental business, of 10.0%, a 65 basis point improvement over the prior fiscal year.

此外，牙科營業利潤還包含與第四季度出售房地產資產相關的 360 萬美元一次性收益。 23 財年全年，我們牙科業務調整後的營業利潤率為 10.0%，比上一財年提高了 65 個基點。

Now let's move on to our Animal Health segment. In the fourth quarter of fiscal '23, internal sales for our Animal Health business increased 3.2% compared to the same period 1 year ago. For the full year of fiscal '23, internal sales for our Animal Health business were up 3.4% compared to fiscal year 2022. Internal sales for our companion animal business in the fourth quarter of fiscal '23 increased 6.7% compared to the prior year.

現在讓我們繼續我們的動物健康部分。 23 財年第四季度，我們動物保健業務的內部銷售額與一年前同期相比增長了 3.2%。在 23 財年全年，我們的動物保健業務的內部銷售額與 2022 財年相比增長了 3.4%。在 23 財年第四季度，我們的伴侶動物業務的內部銷售額與上一年相比增長了 6.7%。

For the full year of fiscal '23, Internal sales in our companion animal business increased 5.3% compared to fiscal '22. Internal sales for our production animal business in the fourth quarter of fiscal '23 decreased by 0.7% compared to the same period 1 year ago. For the full year of fiscal '23, internal sales in our production animal business increased 1.2% compared to fiscal '22.

在 23 財年全年，我們的伴侶動物業務的內部銷售額與 22 財年相比增長了 5.3%。 2023 財年第四季度我們生產性動物業務的內部銷售額與一年前同期相比下降了 0.7%。 23 財年全年，我們的生產動物業務的內部銷售額與 22 財年相比增長了 1.2%。

Adjusted operating margins in our Animal Health segment in the fiscal fourth quarter were 5.5%, an increase of 57 basis points from the prior year. For the full year of fiscal '23, adjusted operating margins in our Animal Health segment were 4.2%, which represents 36 basis points of margin expansion compared to fiscal 2022. Our Animal Health team continues to drive business with strategic manufacturing partners who value our ability to increase sales, while also exercising expense disciplines our Animal Health team delivered operating margin expansion for the fourth quarter of fiscal '23 and for the full year of fiscal ['23.]

第四財季動物保健業務調整後營業利潤率為 5.5%，比上年增長 57 個基點。在 23 財年全年，我們動物保健部門的調整後營業利潤率為 4.2%，與 2022 財年相比，利潤率擴大了 36 個基點。我們的動物保健團隊繼續與重視我們能力的戰略製造合作夥伴一起推動業務發展為了增加銷售額，同時遵守費用紀律，我們的動物保健團隊在 23 財年第四季度和 23 財年全年實現了營業利潤率擴張。

Now let me cover free cash flow and capital allocation. During fiscal '23, our free cash flow declined by $14.4 million compared to the same period 1 year ago. This was primarily due to an increased level of capital spending in fiscal '23 and as well as a slightly higher level of receivables related to the strong sales month we had in April. Now turning to capital allocation. We continue to execute on our strategy to return cash to our shareholders. In the fourth quarter of fiscal '23, we declared a quarterly cash dividend of $0.26 per diluted share, which was then paid at the beginning of the first quarter of fiscal '24. Also in the fourth quarter of fiscal '23 the company repurchased approximately 1.5 million shares of stock. During fiscal '23, Patterson Companies returned $156.8 million of cash to shareholders in the form of dividends and share repurchases.

現在讓我介紹一下自由現金流和資本配置。在 23 財年，我們的自由現金流與一年前同期相比下降了 1,440 萬美元。這主要是由於 23 財年資本支出水平增加，以及與 4 月份銷售強勁相關的應收賬款水平略有上升。現在轉向資本配置。我們繼續執行向股東返還現金的戰略。在 23 財年第四季度，我們宣布季度現金股息為稀釋後每股 0.26 美元，然後在 24 財年第一季度初支付。同樣在 23 財年第四季度，該公司回購了約 150 萬股股票。在 23 財年，帕特森公司以股息和股票回購的形式向股東返還了 1.568 億美元現金。

Let me conclude with our financial outlook for fiscal '24. This morning, we issued a GAAP earnings guidance range for fiscal '24 of $2.14 to $2.24 per diluted share, and an adjusted earnings guidance range of $2.45 to $2.55 per diluted share. For modeling purposes, let me highlight a few additional items to consider as you think about our guidance for fiscal '24. First, as mentioned earlier, our fiscal 2023 adjusted EPS of $2.42 benefited from a onetime gain related to the sale of real estate assets, which represented approximately $0.03 of adjusted EBITDA. Second, we are modeling low to mid-single-digit revenue growth in fiscal '24. This is inclusive of some continued deflation of PPE products compared to the pricing of these products during fiscal '23. We are also modeling operating margin expansion for both business units and the total business.

讓我以 24 財年的財務展望作為結束語。今天上午，我們發布了 24 財年 GAAP 每股攤薄收益指導範圍為 2.14 美元至 2.24 美元，調整後的每股攤薄收益指導範圍為 2.45 美元至 2.55 美元。出於建模目的，讓我重點介紹一些在您考慮我們的 24 財年指導時需要考慮的其他事項。首先，如前所述，我們的 2023 財年調整後每股收益為 2.42 美元，受益於與房地產資產出售相關的一次性收益，該收益相當於調整後 EBITDA 的約 0.03 美元。其次，我們對 24 財年的收入增長進行建模，得出低至中個位數的收入增長。與 23 財年這些產品的定價相比，這包括 PPE 產品的一些持續通貨緊縮。我們還對兩個業務部門和整個業務的營業利潤率擴張進行建模。

Third, as Don noted, our guidance reflects expanded investments to further develop and grow our software and value-added services capabilities. Fourth, we are modeling a higher overall tax rate of approximately 25%. This is higher than where we finished fiscal '23 due to increased tax rates in the U.K. and other adjustments to our tax expense. And finally, we expect to face additional headwinds in fiscal '24 regarding higher interest rates on our variable rate debt. If you exclude the onetime $0.03 per share benefit associated with the sale of the real estate asset from our fiscal '23 adjusted EPS performance, our fiscal 2024 adjusted EPS guidance range of $2.45 to $2.55 per diluted share, imply a 5% year-over-year growth at the midpoint and 7% year-over-year growth at the top end of our range. And now I will turn the call back over to Don for some additional comments.

第三，正如唐指出的那樣，我們的指導反映了為進一步開發和發展我們的軟件和增值服務能力而擴大的投資。第四，我們正在建模大約 25% 的更高總體稅率。由於英國稅率提高以及對稅務費用的其他調整，這一數字高於我們 23 財年結束時的水平。最後，我們預計 24 財年將面臨更多阻力，即浮動利率債務利率上升。如果您將與出售房地產資產相關的一次性每股 0.03 美元的收益從我們 23 財年調整後的 EPS 業績中排除，我們的 2024 財年調整後每股攤薄每股收益指導範圍為 2.45 美元至 2.55 美元，意味著同比增長 5%年增長率位於我們範圍的中點，7% 的同比增長率位於我們範圍的高端。現在我將把電話轉回給唐，徵求一些補充意見。

Thanks, Kevin. Before we open it up for Q&A, I'd like to reiterate a few key takeaways from our call this morning. Patterson had an exceptionally strong fourth quarter, including a fiscal year in which we achieved our financial goals of delivering year-over-year sales growth and adjusted operating margin expansion.

謝謝，凱文。在我們開始問答之前，我想重申一下今天早上電話會議中的一些關鍵要點。帕特森第四季度的表現異常強勁，包括我們實現了實現同比銷售增長和調整後營業利潤率擴張的財務目標的財年。

Our performance during the fourth quarter and throughout fiscal '23 is a continuation of our track record of success over the past several years. We continue to execute and refine our proven strategy to build upon this momentum. And we are well-positioned to drive enhanced growth, profitability and value creation over the long-term. That concludes our prepared remarks. Kevin and I will be glad to take questions. Operator, please open the line.

我們在第四季度和整個 23 財年的業績是我們過去幾年成功記錄的延續。我們將繼續執行和完善我們行之有效的戰略，以鞏固這一勢頭。我們處於有利位置，可以推動長期增長、盈利能力和價值創造。我們準備好的發言到此結束。凱文和我很樂意回答問題。接線員，請開通線路。

(Operator Instructions) Your first question comes from the line of Jason Bednar of Piper Sandler.

（操作員說明）您的第一個問題來自 Piper Sandler 的 Jason Bednar。

Congrats on a real nice quarter to close out the fiscal year. Don or Kevin, the margin performance here was extremely impressive in the fourth quarter. We have been going along a path of modest margin expansion here for the last, call it, few years. For the last couple of quarters, you just blow that out of the water. I understand the dental equipment strength this quarter probably helped. But you're sitting at multiyear highs in each of Dental and Animal Health even after adjusting for that one-time gain in Dental that you mentioned.

祝賀本財年以一個非常好的季度結束。唐或凱文，第四季度的利潤率表現非常令人印象深刻。過去幾年，我們一直在走一條利潤率適度擴張的道路。在過去的幾個季度裡，你只需要把它從水中吹出來即可。我了解本季度牙科設備的實力可能有所幫助。但即使在調整了您提到的牙科的一次性增長之後，您的牙科和動物健康業務仍處於多年來的高點。

So it's been a long road to get to where we're at. But could you talk about how you think about these multi-year high margin performance as we think forward to the coming years. I know you don't have a formal LRP out there, but where do you see the potential for Dental and Animal Health as you look ahead over the next few years?

因此，到達我們現在的位置還有很長的路要走。但是，當我們展望未來幾年時，您能否談談您如何看待這些多年的高利潤表現。我知道你們還沒有正式的 LRP，但展望未來幾年，您認為牙科和動物健康的潛力在哪裡？

Yes. Thanks, Jason, and I appreciate the comments. I think the margin journey has really been the last, I mean, you could say the last 4 or 5 years, but -- what we're looking at is the fact that the programs we put in place are working. The things that we're doing, we think are impactful and sustainable. And so as you look forward, I think we would talk about -- and I think we have talked about op profit margins for the company.

是的。謝謝杰森，我很欣賞這些評論。我認為利潤率之旅確實是最後一次，我的意思是，你可以說是過去 4 或 5 年，但是 - 我們正在關注的是我們實施的計劃正在發揮作用的事實。我們認為我們正在做的事情是有影響力和可持續的。因此，當你展望未來時，我認為我們會討論 - 我認為我們已經討論了公司的運營利潤率。

We like the 20 to 30 basis point improvement on a year-over-year basis, that could go up or down. And certainly, as we make some investment decisions that could impact that. But we're committed to operating profit improvement in both of the business units and the overall company. And that's a drumbeat that's constant here. We work really hard. There's a lot of programs in place. And the focus, as I mentioned, when we talk about those programs, our sustainable programs.

我們喜歡同比 20 到 30 個基點的改善，可能會上升也可能會下降。當然，當我們做出一些可能會影響這一點的投資決策時。但我們致力於提高業務部門和整個公司的營業利潤。這是這裡持續不斷的鼓聲。我們工作非常努力。有很多計劃。正如我提到的，當我們談論這些計劃、我們的可持續計劃時，重點是。

So I don't know maybe, Kevin, if you have any additional comments or thoughts on some specific things that you might mention. But we're pretty pleased with it. We're not surprised by it. And more importantly, we're excited about what that looks like going forward.

所以我不知道，凱文，您對您可能提到的一些具體事情是否有任何其他評論或想法。但我們對此非常滿意。我們對此並不感到驚訝。更重要的是，我們對未來的發展感到興奮。

Yes, Jason, I think the strength this year and this quarter, it really starts with the gross margin performance, and that speaks to some of these internal initiatives and focus areas that we've implemented around our mix of products, our efficiencies in our distribution network, our ability to drive that gross margin line really helps.

是的，傑森，我認為今年和本季度的實力，它確實始於毛利率表現，這說明了我們圍繞產品組合、我們的效率實施的一些內部舉措和重點領域。分銷網絡，我們推動毛利率線的能力確實有幫助。

And I think what's also long-term for us, too, as we feel like we've got a cost base that we can leverage. So as we're out winning with our customers and driving that top line. We feel really good that we can get some leverage over our operating expenses with how our operating day. That's going to allow us to both reinvest in the business as we need to, but also continue that margin expansion journey we're on.

我認為這對我們來說也是長期的，因為我們覺得我們已經有了可以利用的成本基礎。因此，當我們贏得客戶並推動營收增長時。我們感覺非常好，我們可以通過我們的運營日常來對我們的運營費用產生一些影響。這將使我們既可以根據需要對業務進行再投資，又可以繼續我們正在進行的利潤擴張之旅。

And it sounds like a lot of sustainability there. The dental equipment strength was probably the other big outlier in the quarter, at least to me, seems like a nice improvement in demand and tone from you all regarding just overall demand across the portfolio. How much of this is real time and therefore, an improvement in demand trends from what we've seen across the last couple of quarters versus how much is maybe a clearing of demand backlog that's been in place.

聽起來那裡有很多可持續性。牙科設備的實力可能是本季度的另一個大異常值，至少對我來說，就整個投資組合的整體需求而言，似乎需求和基調都有了很好的改善。其中有多少是實時的，因此，與我們在過去幾個季度看到的需求趨勢相比，有多少可能是對已經到位的需求積壓的清理。

Anything you can share on the order book exiting the quarter and maybe your confidence in seeing dental equipment sales grow in fiscal '24 within that low to mid-single-digit company-wide revenue guide you gave today?

對於本季度結束的訂單，您有什麼可以分享的嗎？也許您有信心看到 24 財年牙科設備銷售在您今天提供的全公司範圍低至中個位數的收入指南中增長？

Yes, I think you'd have to look at both things really. I mean, certainly, the second half of our year, particularly the fourth quarter, just given the cadence of some of the things we do shows strength. And so there's always a little bit of a second half bias. There's probably some clearing of the backlog.

是的，我認為你必須真正考慮這兩件事。我的意思是，當然，我們今年下半年，特別是第四季度，考慮到我們所做的一些事情的節奏顯示了力量。所以下半場總會有一點偏差。積壓的訂單可能會得到一些清理。

I think the most important thing, though, and if you go back here, equipment is lumpy. It was a very good quarter. We're not going to minimize it because we know what's behind it, and it was across the whole equipment portfolio. But I look back and we talked about this before, 3-month increments are important, but in equipment particularly, I think you look back over longer periods of time. And I'm particularly proud of 8% growth average over the last 8 quarters. I think that really smooths out all the things you're talking about and kind of gives you a good snapshot of what we're doing. We think that's above the market growth. We think it's our -- it shows kind of our advantage that we have in this area and kind of the full suite of products and really the life cycle management that we use when we talk to our customers about equipment sales. So I think a little of all that. But again, I think kind of step back and say how are we doing -- doing better than the market, and we're pretty proud of that.

不過，我認為最重要的是，如果你回到這裡，你會發現設備很不穩定。這是一個非常好的季度。我們不會最小化它，因為我們知道它背後的原因，而且它遍及整個設備組合。但我回顧一下，我們之前討論過這一點，3 個月的增量很重要，但特別是在設備方面，我認為你會回顧更長的時間。我對過去 8 個季度 8% 的平均增長率感到特別自豪。我認為這確實使您正在談論的所有事情變得更加順暢，並且可以讓您對我們正在做的事情有一個很好的了解。我們認為這高於市場增長。我們認為這是我們的——它顯示了我們在這一領域的優勢，以及我們在與客戶談論設備銷售時使用的全套產品以及真正的生命週期管理。所以我想了一點。但我想再退一步，說一下我們做得怎麼樣——比市場做得更好，我們對此感到非常自豪。

Your next question comes from the line of Michael Cherny of Bank of America.

你的下一個問題來自美國銀行的邁克爾·切爾尼（Michael Cherny）。

I want to echo the comments on a strong quarter and robust outlook. Maybe a 2-part question kind of interlocked, but you mentioned some of the dynamics regarding the pricing on PPE. Can you give us a sense, aside from that, about any variations to either the up or downside you expect over the course of the year? And I guess alongside that, as well, any dynamics either quarterly or at least from a total perspective of the magnitude of some of the innovation investments that you'll be making?

我想回應有關強勁季度和強勁前景的評論。也許是一個由兩部分組成的問題，有點相互關聯，但您提到了有關個人防護裝備定價的一些動態。除此之外，您能否讓我們了解一下您在這一年中預期的上行或下行的任何變化？我想除此之外，還有任何動態，無論是季度還是至少從總體角度來看，您將進行的一些創新投資的規模？

Maybe I'll let Kevin kind of walk through a little that as much as we're going to share here.

也許我會讓凱文稍微介紹一下我們將在這里分享的內容。

Yes. I think on the PPE dynamics, Michael, what we expect going forward is that we're starting to see the prices of that basket of products stabilize. But on a year-over-year basis, when you compare back first quarter F '24 to '23, we still expect to see a bit of a headwind that really should dissipate as we go through the first half of the year. That's really when we should lap it. That is built into our guidance.

是的。我認為，邁克爾，就個人防護用品的動態而言，我們預計未來我們將開始看到該籃子產品的價格趨於穩定。但與去年同期相比，當您將 24 年第一季度與 23 年第一季度進行比較時，我們仍然預計會看到一些逆風，而這種逆風在我們經歷今年上半年時確實應該消失。這確實是我們應該擁抱它的時候。這是我們的指導方針。

So we're in the guidance details I gave on the call, that's all built in there. I'd say, on some of the investments that we're anticipating making here this year, I'd say those -- we're starting those now. There probably will be a bit of a ramp as we go over the course of the year on the OpEx line.

所以我們在我在電話會議上提供的指導細節中，這些都內置在裡面。我想說，關於我們預計今年在這裡進行的一些投資，我想說的是——我們現在就開始這些投資。隨著我們在一年中的運營支出線可能會出現一些增長。

And anything else that's seasonally different from what you'd expect normally? Obviously, I think Jason asked about coming off the strong equipment quarter, but any other moving pieces, any product launches on either segment that you're expecting to have a meaningful variation versus what you normally expect to give in the year? Or what's built in the guidance?

還有什麼與您通常預期的季節性不同的事情嗎？顯然，我認為傑森詢問了強勁的設備季度的表現，但任何其他移動部件，任何一個細分市場的產品發布，您預計與您通常預期在今年提供的產品相比會產生有意義的變化？或者指南中包含哪些內容？

No, I don't think so. And again, I think Kevin mentioned some things that year-over-year, you can look at the impact when you talked about guidance. Obviously, the increasing interest rate environment, at least just on a year-over-year basis is a headwind and the software investments and those kind of things, but that's all built into the guidance. I think what it really shows is even with the guidance we've given, which is strong, we feel the underlying business is really set up to overcome those headwinds.

不，我不這麼認為。再說一次，我認為凱文逐年提到了一些事情，你可以在談論指導時看看其影響。顯然，不斷增長的利率環境（至少與去年同期相比）是一種逆風，軟件投資和諸如此類的事情也是如此，但這一切都已納入指導方針中。我認為它真正表明的是，即使我們給出了強有力的指導，我們也認為基礎業務確實是為了克服這些不利因素而建立的。

And your next question comes from the line of Nathan Rich of Goldman Sachs.

你的下一個問題來自高盛的內森·里奇。

I wanted to start on dental consumables. I think 3.1% for the fiscal year ex infection control. And Don, I think you called out kind of consistently strong patient traffic. Can you maybe talk about how you feel about health of the end market? And maybe for the fiscal year, how volume kind of compared to price? And should we think about a similar level of dental consumables growth into fiscal '24?

我想從牙科耗材開始。我認為本財年除感染控制外的增長率為 3.1%。唐，我認為您指出了持續強勁的患者流量。您能否談談您對終端市場健康狀況的看法？也許在本財年，銷量與價格相比如何？我們是否應該考慮到 24 財年牙科耗材的增長水平是否相似？

Yes. I think this is an area where at least in our business, what we're seeing is very steady traffic. I think our own internal data and the ADA data on utilization really is kind of bearing that out. But we're certainly seeing that in our customer base. And it's a combination of price and utilization.

是的。我認為至少在我們的業務中，我們所看到的這個區域的流量非常穩定。我認為我們自己的內部數據和 ADA 利用率數據確實證明了這一點。但我們確實在我們的客戶群中看到了這一點。這是價格和利用率的結合。

And I think -- as we look into next year, we're really not modeling any significant fluctuations in that. I think that's a good proxy right now for the way the business is operating. And probably if you're modeling it for next year, for us, at least, you'd look at that same kind of dynamic.

我認為，當我們展望明年時，我們實際上並沒有對任何重大波動進行建模。我認為這是目前企業運營方式的一個很好的代表。如果你為明年進行建模，至少對我們來說，你可能會看到同樣的動態。

Great. That's helpful. And as a follow-up, I wanted to go back to the earlier comments on margins. I think you talked about the 20 to 30 basis points as being a good target. But could you maybe just frame the opportunity from here relative to what it was in fiscal '19? You obviously talked about the progress that you made, but margins are kind of now kind of back above where they were kind of 5 years ago. Where do you kind of see the longer-term margin potential for this business, used to be at kind of 6% to 7% margins. Is that eventually where you can get back to if we look over the next 3, 5 years and play this forward?

偉大的。這很有幫助。作為後續行動，我想回到之前關於利潤的評論。我認為你談到 20 到 30 個基點是一個很好的目標。但您是否可以將這裡的機會與 19 財年的機會進行比較？您顯然談到了所取得的進展，但現在的利潤率又回到了 5 年前的水平。您認為該業務的長期利潤潛力在哪裡，過去的利潤率為 6% 至 7%。如果我們展望未來 3、5 年並向前推進，您最終會回到這個地方嗎？

Yes, Nathan. Well, I think I'd like to stay away from too much long-term guidance on specifics. I think over the last 5 years, in the earlier years in that cycle, we probably benefited a little bit more just from the idea that we were getting the business back on track and improving what was -- where we were.

是的，內森。嗯，我想我不想對具體細節提供過多的長期指導。我認為在過去 5 年中，在該週期的前幾年，我們可能從讓業務重回正軌並改善現狀的想法中受益更多。

But at the same time, we were putting in programs that were sustainable and that we thought would benefit our margin on a more consistent basis and long-term basis going forward. And so right now, what we're seeing is the benefit of those types of things. And again, when we look at this and we really think through margin initiatives, we're thinking through it in the -- from the standpoint of not a onetime or a short-term basis, but really what's a long-term sustainable program.

但與此同時，我們正在實施可持續的計劃，我們認為這些計劃將在更一致和長期的基礎上有利於我們的利潤。所以現在，我們看到的是這些類型的好處。再說一次，當我們審視這個問題並真正思考利潤計劃時，我們不是從一次性或短期的角度，而是從真正的長期可持續計劃的角度來思考它。

And so -- for me, as I look forward and we kind of talk about future I would say for our horizon for the foreseeable future, we're looking at that again at that 20 to 30 basis point improvement each year.

因此，對我來說，當我展望未來時，我們會談論未來，我會說，對於可預見的未來，我們會再次審視每年 20 到 30 個基點的改進。

And your next question comes from the line of Jonathan Block of Stifel.

您的下一個問題來自 Stifel 的 Jonathan Block。

Great. Thanks, guys. Good morning. Just the first one, maybe just in light of some of the trends throughout the most recent quarter? And Kevin, if I heard you correctly, you might have touched on it a little bit regarding the AR comments. It seems like April was strong. Is that correct? How did that sort of continue into May?

偉大的。多謝你們。早上好。只是第一個，也許只是考慮到最近一個季度的一些趨勢？ Kevin，如果我沒聽錯的話，你可能已經觸及了一些關於 AR 評論的問題。四月似乎很強大。那是對的嗎？這種情況是如何持續到五月的？

And then importantly, what are you extrapolating when we think about the full year guidance? If the recent trends were strong April and May, is it a continuation in the recent guide? Or did you build in any conservatism around that?

然後重要的是，當我們考慮全年指導時，您有何推斷？如果四月和五月的近期趨勢強勁，是否是近期指南的延續？或者你是否對此採取了保守主義態度？

Yes. I think talking about the dental market specifically, I'd just reiterate what Don said, we're just seeing very steady end market patient traffic. And for us, you start with kind of our consumables business, our value-added services business. I think that's been [steady] throughout the fourth quarter. Like Don said, we see that being fairly consistent as we look forward.

是的。我認為具體談論牙科市場時，我只是重申唐所說的話，我們只是看到非常穩定的終端市場患者流量。對於我們來說，您可以從我們的消耗品業務、增值服務業務開始。我認為整個第四季度這一情況一直[穩定]。正如唐所說，我們認為這與我們的預期相當一致。

Equipment. We did have a stronger equipment quarter that was more back-ended in the quarter for us. But again, I think we have, as we look forward, like we saw strength across all subcategories than equipment, which again, to us, speaks to the health of the end market. Dentists continue to invest in their in their practices, whether through expansion or optimizing within the practice they have new technology, and that's the strength of ours. And so as we look forward, we're going to continue to work with those dentists and make sure that we're meeting them where they need to go with the products that we offer. So I see those dynamics continue as we go into F '24 here, John.

設備。我們確實有一個更強勁的設備季度，該季度對我們來說更加落後。但同樣，我認為，正如我們展望的那樣，我們看到了除設備之外的所有子類別的實力，這對我們來說再次說明了終端市場的健康狀況。牙醫繼續投資於他們的實踐，無論是通過擴展還是優化他們擁有的新技術，這就是我們的優勢。因此，展望未來，我們將繼續與這些牙醫合作，確保我們在他們需要的地方與他們會面，使用我們提供的產品。因此，約翰，當我們進入 F '24 時，我看到這些動態仍在繼續。

And then maybe just to pivot from Dental to Animal Health. Animal had solid results, and it seems like companion continues to lead the charge. But if I look at the companion animal numbers, if I've got it right, it looks like the fourth straight quarter of the 2-year stacked decelerating by a decent clip, right? I mean, from like a crazy levels of, call it, mid-30s to low double digits more recently.

然後也許只是從牙科轉向動物健康。動物取得了紮實的成果，而且同伴似乎繼續領先。但如果我看一下伴侶動物的數字，如果我沒猜錯的話，看起來兩年連續第四個季度的減速幅度相當大，對吧？我的意思是，從 30 多歲中期的瘋狂水平到最近的低兩位數。

Maybe if you can just talk to the companion animal market, the amount of resiliency and then what your rough expectations are going into fiscal '24, again, more specific to companion.

也許你可以談談伴侶動物市場，彈性程度，然後你對24財年的粗略預期，再次，更具體地針對伴侶動物。

Okay. Yes. Well, Thanks, John. I think over -- I think you're right. Look, over that period of time that you're referencing, there definitely has been moderation. You kind of talked about all the dynamics of the pandemic and the other factors. What we're seeing right now is with that moderation, visits are down slightly, but spending is up. I think as people are bringing pets back to the vet, there's maybe a catch-up element as well.

好的。是的。嗯，謝謝，約翰。我想了想——我認為你是對的。看，在你提到的那段時間裡，肯定是有節制的。您談到了流感大流行的所有動態和其他因素。我們現在看到的是，隨著這種適度的增長，訪問量略有下降，但支出卻有所增加。我認為，當人們把寵物帶回獸醫那裡時，可能也有一個追趕的因素。

But I think when we cut through it, again, we're in a healthy market. And I think from our data standpoint, we're outperforming the market. So we're a market share gainer, and that's where we want to be particularly, there will be some movements in the market, but we think we're gaining share.

但我認為，當我們再次突破它時，我們就處於一個健康的市場中。我認為從我們的數據角度來看，我們的表現優於市場。因此，我們是市場份額的獲得者，這就是我們特別想要的地方，市場上會有一些變動，但我們認為我們正在獲得份額。

Thank you. And your next question comes from the line of Jeff Johnson of Baird.

謝謝。你的下一個問題來自貝爾德公司的傑夫·約翰遜。

Most of my questions have been answered, but -- and you've used the word stability to hear a lot around the dental business. So I probably heard the answer to this question as well. But Don, when I think about the dental equipment business, notwithstanding your 8% growth over the last 8 quarters. I think over the last 6 months, it's been 5% growth over the last 12 months, it's been 5% growth. So is that a reasonably good with what you're seeing in the backlog and order trends. Is that kind of mid-single digit on dental equipment, a good jumping-off place to be thinking about as we go into fiscal '24 here?

我的大部分問題都已得到解答，但是——您在牙科行業中聽到過很多關於“穩定性”的詞。所以我可能也聽到了這個問題的答案。但是唐，當我想到牙科設備業務時，儘管您在過去 8 個季度增長了 8%。我認為過去 6 個月增長了 5%，過去 12 個月增長了 5%。這與您在積壓訂單和訂單趨勢中看到的情況相當不錯。牙科設備的這種中個位數是我們進入 24 財年時需要考慮的一個很好的起點嗎？

And then maybe if you could just talk about pricing around tech in equipment versus basic. I know basic is up very nicely. Is that helping offset fully some of the deflationary pressures on the tech side? Or just how those 2 are balancing out on pricing?

然後也許您可以談談設備技術與基礎設備的定價。我知道基本的已經很好了。這是否有助於完全抵消科技方面的部分通縮壓力？或者說這兩者在定價上是如何平衡的？

Yes. Well, Jeff, I think good question. I think on your 5% over the last 12 months, and we have 8% over the last 8 quarters. But I think that mid-single-digit range is good. I think that's a good way to think about this over the slightly longer-term. On the pricing, I think for us, we're seeing, again, not to beat on stability. But I think we're seeing pretty good stability on our pricing in this area.

是的。嗯，傑夫，我認為這是個好問題。我認為你們過去 12 個月的增長率為 5%，而我們過去 8 個季度的增長率為 8%。但我認為中間個位數範圍很好。我認為這是從更長遠的角度思考這個問題的好方法。在定價方面，我認為對我們來說，我們再次看到，不要在穩定性方面被擊敗。但我認為我們在這一領域的定價非常穩定。

We have a healthy program and a disciplined program and the pricing has held up in spite of some of the macroeconomic trends and so has the demand. So for us, this has been a good story and expect it to continue to be.

我們有一個健康的計劃和一個嚴格的計劃，儘管存在一些宏觀經濟趨勢，但定價仍然保持不變，需求也是如此。所以對我們來說，這是一個好故事，並期待它繼續下去。

And then I guess a follow-up question just on the consumable business. Obviously, you guys are overweight kind of general consumables. But with the Dolphin business in that, I think you probably have some decent insights at least on the orthodontic side. One of the things we've been seeing in our survey work is clearly, the patient volumes are holding in, but maybe spend per patient or some of the high end, high acuity mix coming down a little bit. So just what's your sense on kind of how much that steady patient is really helping the hygiene in the general consumables side versus the spend per patient. And maybe what you're seeing in some of your orthodontic data or anything like that, that would help us understand kind of that higher acuity spend level versus the general [hygiene.]

然後我想一個關於消費品業務的後續問題。顯然，你們都是超重的一般消耗品。但就海豚業務而言，我認為您至少在正畸方面可能有一些不錯的見解。我們在調查工作中看到的一件事顯然是，患者數量保持不變，但每個患者的支出或一些高端、高敏銳度組合的支出可能會略有下降。那麼，相對於每位患者的支出，您對穩定的患者對一般消耗品方面的衛生有多少真正的幫助有何看法。也許你在一些正畸數據或類似的數據中看到的，這將幫助我們理解與一般[衛生]相比更高的敏銳度支出水平。

Again, I think if you're getting at the mix of just demand and pricing, I mean -- I think it's kind of a little of both. I guess I'm not -- the orthodontic data probably isn't quite as applicable to us. So I haven't -- I would reference those back to more to the dental data, the 88 utilization. And just again, all the different elements of data that we are looking at really point to that kind of steady traffic -- that steady traffic theme.

再說一次，我認為如果你把需求和定價結合起來，我的意思是——我認為兩者都有一點。我想我不是——正畸數據可能不太適用於我們。所以我沒有——我會參考更多牙科數據，88 的利用率。再說一次，我們正在研究的所有不同數據元素確實都指向這種穩定的流量——穩定的流量主題。

And your next question comes from the line of Elizabeth Anderson of Evercore ISI.

您的下一個問題來自 Evercore ISI 的 Elizabeth Anderson。

Talking about some of the investments that you guys are thinking about in terms of software and value-added service. I think I heard you in one of prior questions today that, that would sort of be reflected in the OpEx line. I guess I just wanted to: a, confirm that; and b, I'd like to just sort of understand a little bit more if you have any sort of more details on specific areas. And then two, like -- how do you think about that kind of buy versus build? Is that kind of (inaudible) in your calculation? Or how do you guys think about that?

談論你們正在考慮的在軟件和增值服務方面的一些投資。我想我今天在之前的一個問題中聽到您說，這會在運營支出中反映出來。我想我只是想：a、確認這一點； b，如果您有關於特定領域的更多詳細信息，我想多了解一點。然後是兩個問題——您如何看待這種購買與構建？您的計算中有這種（聽不清）嗎？或者說大家對此有何看法？

Yes, Elizabeth. Thanks for the question. I think -- the -- let's maybe start with the buy versus build. I mean we -- we're looking at both as we continue to enhance our capabilities. We are generally committed to build. I think that's been our history, and that's been where we've been with Fuse. The investments themselves, it is reflected in the guidance. There's an element of operating expense. There is an element of capital that's involved. But overall, the higher investment is reflected in all the comments and the numbers we're talking through here today.

是的，伊麗莎白。謝謝你的提問。我想，我們也許可以從購買與構建開始。我的意思是，當我們繼續增強我們的能力時，我們正在考慮這兩方面。我們一般都致力於建設。我認為這就是我們的歷史，也是我們 Fuse 一直以來的發展歷程。投資本身反映在指導中。其中有一個因素是運營費用。這裡涉及到資本的因素。但總體而言，更高的投資反映在我們今天在這裡討論的所有評論和數字中。

And then additional capabilities, I guess I wouldn't get into all the -- just competitively get into all the specific capabilities. I think I would say that we are making investments in both our Eaglesoft platform and Fuse. I think our view is that we really are excited about where these products are and where they're headed. It's a very fast-paced and evolving area. So for us, having the features and functionality we need is important. But again, not only on the on-prem side, but on the cloud-based side. And so there's a lot of things happening here, a lot of technology and innovation, and it's happening quick. And so we're determined to stay ahead of that.

然後是額外的功能，我想我不會進入所有的——只是競爭性地進入所有特定的功能。我想我會說我們正在對 Eaglesoft 平台和 Fuse 進行投資。我認為我們的觀點是，我們真的對這些產品的現狀和發展方向感到興奮。這是一個節奏非常快且不斷發展的領域。因此對於我們來說，擁有我們需要的特性和功能非常重要。但同樣，不僅在本地，而且在基於雲的方面。所以這裡發生了很多事情，很多技術和創新，而且發生得很快。因此，我們決心保持領先地位。

And I guess my next question is should we think about the general dentistry market and sort of your presence among DSOs. How is that strategy at all changing? Have you seen any new dynamics there? I mean, obviously, you have some large customers. How are those relationships we haven't heard an update on that in a little while, so I'd just be sort of curious how you're viewing that in the current environment?

我想我的下一個問題是我們是否應該考慮一般牙科市場以及您在 DSO 中的存在。該策略有何變化？您是否看到了新的動態？我的意思是，顯然，你們有一些大客戶。這些關係怎麼樣，我們已經有一段時間沒有聽到這方面的最新消息了，所以我有點好奇你在當前環境下如何看待這一點？

I think it's really pretty steady this area. I mean, it's evolving. But our strategy is consistent. And so overall, I think this is a good story. I don't really -- there's the national side, there's regional side. Obviously, we're working on both of them. We think we have a good core competence, particularly on the regional DSO kind of area. But probably nothing new to report in terms of any different dynamics.

我認為這個地區真的很穩定。我的意思是，它正在發展。但我們的策略是一致的。總的來說，我認為這是一個好故事。我真的不知道——有國家方面，有地區方面。顯然，我們正在研究這兩方面。我們認為我們擁有良好的核心競爭力，特別是在區域 DSO 領域。但就任何不同的動態而言，可能沒有什麼新的可報告的。

Your next question comes from the line of Kevin Caliendo of UBS.

你的下一個問題來自瑞銀集團的 Kevin Caliendo。

I guess first one, is just on cadence. I know you don't like to give quarterly guidance and the like, but there is some lumpiness to some of the numbers. And just any kind of color you can provide us or help you can provide us as we think about modeling out the year to get to the guidance for the full year in terms of the quarterly or first half, second half, or even just sort of revenue growth expectations or margin expectations.

我想第一個只是節奏。我知道您不喜歡提供季度指導之類的信息，但某些數字有些混亂。當我們考慮對全年進行建模時，您可以提供給我們任何類型的顏色，或者您可以幫助我們提供的任何顏色，以獲得季度或上半年、下半年甚至只是某種形式的全年指導。收入增長預期或利潤率預期。

Yes, Ken, I'd say I think as we look forward, our first half, second half split should be fairly in line with the past couple of years in terms of how we're modeling it right now.

是的，肯，我想說，我認為，就我們現在的建模方式而言，我們的上半場和下半場劃分應該與過去幾年相當一致。

Okay. Great. And that's from an EPS perspective is what you're.

好的。偉大的。從 EPS 的角度來看，這就是你的情況。

Right. Correct.

正確的。正確的。

You talked a little bit on the equipment side and said there was strength across all 3 categories. I think you also said maybe there was a little bit of a drawdown in backlog. Can you maybe talk about where you're seeing demand where maybe you saw some of the backlog come in a little bit, where maybe demand increased a little bit across the categories as best you can. Any sort of color across the 3 about the changing dynamics between demand and backlog going, but what do you expect to be going forward more than looking back?

您在設備方面談了一些，並表示所有 3 個類別都有優勢。我想你也說過積壓訂單可能有所減少。您能否談談您在哪些方面看到了需求，也許您看到了一些積壓的情況，也許各個類別的需求都盡可能增加了一些。關於需求和積壓之間的動態變化，這三個方面有什麼不同的顏色，但是除了回顧過去之外，您還認為未來會發生什麼？

Yes. I think again, as we mentioned, it is a bit lumpy. So for me, we watch it back -- and we watch it through each of the categories and look at the data. I think the backlog kind of reflects the lumpiness. So the backlog at times is high at other times it's low. But I haven't -- I'm not drawing and I don't believe there's a correlation here between anything that's going on with our backlog at any time and kind of overall traffic and demand.

是的。我再次認為，正如我們提到的，它有點不穩定。所以對我來說，我們會回顧它——我們通過每個類別來觀察它並查看數據。我認為積壓反映了這種混亂狀態。因此，積壓有時很高，有時很低。但我沒有——我沒有畫圖，而且我不相信任何時候我們的積壓情況與總體流量和需求之間存在任何關聯。

It's -- depends more on innovation cycle, inventory we're holding and then installation. So but nothing that I'm going to -- nothing that we think would be interesting in terms of reporting this out right now that would give you more insight.

它更多地取決於創新周期、我們持有的庫存以及安裝。所以，但我不會做任何事情——我們認為現在就報告這一點來說沒有什麼有趣的事情可以讓你有更多的見解。

And for that, I'm going to go and move on to the next question. I'll bring up the person again in a second. And the next question comes from Brandon Vazquez of William Blair.

為此，我將繼續討論下一個問題。我稍後會再次提起這個人。下一個問題來自威廉·布萊爾的布蘭登·巴斯克斯。

Just one on consumable -- sorry, on equipment that we were talking about before. Some of the other peers in the space have been talking about how equipment demand has been strong, but there's been a little bit of a shift maybe in some markets, especially like internal scanners towards lower price maybe as we get higher in adoption curve. Curious if you guys are seeing any -- maybe the answer is no, given how strong of a quarter you had within equipment, but curious if you're seeing any higher demand for lower end prices within that segment or not?

只是關於消耗品的——抱歉，關於我們之前討論過的設備。該領域的其他一些同行一直在談論設備需求如何強勁，但某些市場可能發生了一些轉變，特別是隨著我們採用曲線的提高，內部掃描儀的價格可能會降低。好奇你們是否看到任何東西——也許答案是否定的，考慮到你們在設備方面的季度表現有多強勁，但好奇你們是否看到該細分市場對較低終端價格的更高需求？

Yes. I think -- I guess what I'd say is I think our teams do a really good job managing through those dynamics when they pop up. I mean we've got a pretty broad selection of multiple equipment categories and technologies. And our team out in the field is a really good job of understanding what a dental practice needs and how to meet those needs.

是的。我認為——我想我想說的是，我認為我們的團隊在管理這些動態時做得非常好。我的意思是，我們有多種設備類別和技術的相當廣泛的選擇。我們的現場團隊非常擅長了解牙科診所的需求以及如何滿足這些需求。

And in most markets if there is price declines, you generally see demand increase and adoption increase when those things happen. So I think that's what I'd say is we benefit from really skilled sales force that knows our customers and knows what's going to be a good match for them and a wide variety of products to meet those needs.

在大多數市場中，如果價格下跌，您通常會看到需求增加和採用率增加。所以我認為，我想說的是，我們受益於真正熟練的銷售人員，他們了解我們的客戶，知道什麼最適合他們，也知道各種各樣的產品可以滿足這些需求。

And then my second question, looking back at the value-added services and software segment, another great quarter for you guys there. And we asked a little bit earlier about what's in the pipeline, but maybe I'll ask that question slightly different.

然後是我的第二個問題，回顧一下增值服務和軟件領域，這對你們來說又是一個偉大的季度。我們早些時候問過正在醞釀什麼，但也許我會問這個問題略有不同。

Is there any way you can frame the opportunity for us within value-added services and software? Maybe any figures like what percent of your customers today are using your value-added services? Or what kind of pocket share can you get incrementally from current customers? Anything like that, just helpful to understand the market.

您是否可以通過任何方式在增值服務和軟件中為我們提供機會？也許有任何數字，比如今天有多少比例的客戶在使用您的增值服務？或者你可以從現有客戶那裡逐步獲得什麼樣的口袋份額？諸如此類的事情，都有助於了解市場。

Yes, I appreciate the question and definitely want to be helpful. Probably not going to give that level of data. It's something we track. I think maybe just suffice it to say that -- this is a very important part of our product portfolio. It's a high-margin part of our product portfolio and a huge focus for us going forward.

是的，我很欣賞這個問題，並且絕對希望能有所幫助。可能不會提供那種級別的數據。這是我們追踪的東西。我想也許只要這樣說就足夠了——這是我們產品組合中非常重要的一部分。這是我們產品組合中高利潤的部分，也是我們未來發展的重點。

Again, kind of reflected in the additional investments we're going to make here. But yes, probably at this point, I'm not going to give you too much of a breakdown. I think it's a big addressable market for us.

同樣，這也反映在我們將在這裡進行的額外投資中。但是，是的，也許在這一點上，我不會給你太多的細分。我認為這對我們來說是一個很大的潛在市場。

And your last question comes from the line of A.J. Rice of Credit Suisse.

你的最後一個問題來自 A.J.瑞士信貸的大米。

Maybe a couple of quick ones here. You mentioned a couple of times the impact of the rising rate environment. I wondered as you are looking at equipment financing and how your buyers are approaching the market, has that changed their willingness to finance equipment sales in any way? Are you seeing any changes or opportunities there?

也許這裡有幾個快速的。您多次提到利率上升環境的影響。我想知道，當您考慮設備融資以及您的買家如何進入市場時，這是否改變了他們以任何方式為設備銷售融資的意願？您看到那裡有什麼變化或機會嗎？

Yes, A.J., I'd say we haven't seen a dramatic change in how much of our sales get financed. We've obviously adjusted our rates to reflect the higher rate environment. But we also -- we work closely with our manufacturer partners to drive smart promotions that can drive more demand and sometimes those are in the financing area. And so we participate with them some of those promotions that can help the ROI for a dentist as they look at the opportunity.

是的，A.J.，我想說的是，我們的銷售融資比例並沒有發生巨大變化。我們顯然已經調整了費率以反映更高的費率環境。但我們也與製造商合作夥伴密切合作，推動明智的促銷活動，從而推動更多需求，有時這些促銷活動是在融資領域。因此，我們與他們一起參與一些促銷活動，這些促銷活動可以幫助牙醫在尋找機會時提高投資回報率。

And then maybe another sort of market-oriented question. There's been obviously a lot of discussion about the tightness of supply of dental hygienists and so forth. And you've also had similar commentary in the veterinary space. We're seeing a little bit of easing in some other areas. Are you seeing your ongoing customer base easing in either of those areas? And is that having any impact on wait times to get appointments? Or is that a potential help in the next year in your consumables side?

然後也許是另一種以市場為導向的問題。顯然，關於牙科保健員供應緊張等問題存在很多討論。在獸醫領域也有類似的評論。我們看到其他一些領域的情況有所放鬆。您是否發現這些領域中的任何一個領域的客戶群持續寬鬆？這對預約的等待時間有影響嗎？或者這對您明年的消耗品方面有潛在的幫助嗎？

Well, we're definitely aware there are some of those dynamics out there. It really has not shown up in the ADA data and on our data. And I think I go back to the comments on steady traffic. I think it's a challenge for dental (inaudible). Don't get me wrong. But for us, again, from what we're seeing right now, that's not been a major factor.

嗯，我們肯定知道其中存在一些動態。它確實沒有出現在 ADA 數據和我們的數據中。我想我要回到關於穩定流量的評論。我認為這對牙科來說是一個挑戰（聽不清）。別誤會我的意思。但對我們來說，從我們現在所看到的情況來看，這並不是一個主要因素。

Anyway, that's our last question. And I thank everybody for their time today and interest in Patterson Companies, and we'll talk to you shortly after our next quarter.

無論如何，這是我們的最後一個問題。我感謝大家今天抽出寶貴的時間以及對帕特森公司的興趣，我們將在下個季度結束後不久與您交談。

This concludes today's conference call. You may now disconnect.

今天的電話會議到此結束。您現在可以斷開連接。