Patterson Companies Inc (PDCO) 2024 Q3 法說會逐字稿

Good morning, and welcome to the Patterson Companies, Inc. Third Quarter Fiscal 2024 Earnings Call. Please note that today's call is being recorded. (Operator Instructions) I will now turn the call over to John Wright, Vice President of Investor Relations. You may begin your conference.

早安，歡迎參加 Patterson Companies, Inc. 2024 財年第三季財報電話會議。請注意，今天的通話正在錄音。 （操作員指示）我現在將電話轉給投資者關係副總裁約翰·賴特 (John Wright)。您可以開始您的會議了。

Thank you, operator. Good morning, everyone, and thank you for participating in Patterson Companies Fiscal 2024 Third Quarter Conference Call. Joining me today are Patterson President and Chief Executive Officer, Don Zurbay; and Patterson Chief Financial Officer, Kevin Barry. After a review of our results and outlook by management, we will open the call to your questions.

謝謝你，接線生。大家早安，感謝您參加 Patterson Companies 2024 財年第三季電話會議。今天與我一起出席的還有 Patterson 總裁兼執行長 Don Zurbay；和帕特森首席財務官凱文·巴里。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。

Before we begin, let me remind you that certain comments 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. In addition, comments about the markets we serve, including growth rates and market shares, are based upon the company's internal analysis and estimates.

在開始之前，請允許我提醒您，本次電話會議中發表的某些評論本質上具有前瞻性，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有重大差異，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。我們鼓勵您查看此資料。此外，對我們所服務的市場的評論，包括成長率和市場份額，都是基於公司的內部分析和估計。

The content of this conference call contains time-sensitive information that is accurate only as of the date of the live broadcast, February 28, 2024. 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.

本次電話會議的內容包含時間敏感信息，僅截至直播日期（2024 年 2 月 28 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，您也可以在我們網站 pattersoncompanies.com 的投資者關係部分找到財務幻燈片簡報。

Please note that in this morning's conference call, we will reference our adjusted results in the third quarter of fiscal 2024. The reconciliation tables in our press release are provided to adjust various reported GAAP measures or the impact of deal amortization and an interest rate swap, along with any related tax effect of these items. 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 net impact of an interest rate swap. These non-GAAP measures are not intended to be a substitute for our GAAP results.

請注意，在今天上午的電話會議中，我們將參考2024 財年第三季的調整後結果。我們新聞稿中的調節表用於調整各種報告的GAAP 指標或交易攤銷和利率互換的影響，以及這些項目的任何相關稅務影響。我們還將討論我們的收益發布中定義的自由現金流，這是一種非公認會計準則衡量標準，並使用術語「內部銷售額」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淨銷售額的影響。利率掉期。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。

This call is being recorded and will be available for replay starting today at 10 a.m. Central Time for a period of 1 week.

本次通話正在錄音，從中部時間今天上午 10 點開始可重播，為期 1 週。

Now I'd like to hand the call over to Don Zurbay.

現在我想把電話轉給唐·祖爾貝 (Don Zurbay)。

Thanks, John, and welcome, everyone, to Patterson's Fiscal 2024 Third Quarter Conference Call. I will begin my remarks today with the highlights of our consolidated results and then a review of our core strategic objectives and the progress we are making towards those goals, before providing details on the financial performance of each of our segments.

謝謝 John，歡迎大家參加 Patterson 的 2024 財年第三季電話會議。我今天的演講將首先重點介紹我們的綜合業績，然後回顧我們的核心策略目標以及我們在實現這些目標方面所取得的進展，然後提供有關我們每個部門的財務業績的詳細資訊。

I'll start with some key highlights. Our team executed well and successfully navigated a dynamic environment to deliver year-over-year sales growth and gross margin expansion. On the top line, year-over-year internal sales increased 0.3% driven by continued above-market sales growth in our dental consumables and production animal businesses, demonstrating the deep differentiated value proposition we provide customers across our end markets.

我將從一些關鍵亮點開始。我們的團隊執行得很好，成功駕馭了動態環境，實現了年比銷售成長和毛利率擴張。在營收方面，由於我們的牙科耗材和生產動物業務持續高於市場的銷售成長，內部銷售額同比增長了 0.3%，這證明了我們為整個終端市場的客戶提供的深度差異化價值主張。

Our initiatives to drive margin improvement continue to prove successful as we've expanded gross margin for Patterson as a whole by 30 basis points when compared to the same period a year ago. This result reflects our continued focus on efficiency, including working strategically with manufacturers, driving improved mix, exercising expense discipline and leveraging our cost structure.

我們推動利潤率改善的舉措持續取得成功，與去年同期相比，我們將 Patterson 的整體毛利率提高了 30 個基點。這一結果反映了我們對效率的持續關注，包括與製造商進行策略合作、推動改進組合、實行費用紀律和利用我們的成本結構。

On the bottom line, our financial results reflect ongoing cost discipline measures balanced against the continued strategic investments Patterson is making across our businesses to further enhance our long-term performance and profitability. We also returned nearly $150 million to shareholders in the form of dividends and share repurchases during the quarter.

歸根結底，我們的財務表現反映了持續的成本紀律措施，與帕特森在我們業務中進行的持續戰略投資相平衡，以進一步提高我們的長期業績和盈利能力。本季我們也以股利和股票回購的形式向股東返還了近 1.5 億美元。

Ultimately, Patterson generated an adjusted EPS of $0.59 for the third quarter. Looking forward, we are revising our fiscal 2024 earnings guidance to reflect our expectations for the fourth quarter, including continued headwinds in the dental equipment market, which I will provide more detail on shortly.

最終，帕特森第三季調整後每股收益為 0.59 美元。展望未來，我們正在修訂 2024 財年獲利指引，以反映我們對第四季度的預期，包括牙科設備市場持續面臨的不利因素，我將很快提供更多詳細資訊。

For fiscal year 2024, we now expect to deliver adjusted earnings in the range of $2.30 to $2.35 per diluted share. As we move forward, we remain confident in the resilience of our end markets, the strength of our business and Patterson's competitive positioning and value creation potential. Our confidence is underscored by our decision to repurchase approximately $125 million of shares during the third quarter and steadfast commitment to our long-term strategy.

對於 2024 財年，我們目前預計調整後每股攤薄收益將在 2.30 美元至 2.35 美元之間。隨著我們的前進，我們對終端市場的彈性、業務實力以及帕特森的競爭地位和價值創造潛力仍然充滿信心。我們決定在第三季回購約 1.25 億美元的股票，並堅定地致力於我們的長期策略，這增強了我們的信心。

Our team remains dedicated to executing against our long-term strategy, which, as a reminder, 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, evolve our products, channels and services to best serve the customers in our end markets; and fourth, improve efficiency and optimization.

我們的團隊仍然致力於執行我們的長期策略，提醒您，該策略旨在實現 4 個核心目標：首先，推動收入成長高於當前終端市場成長率；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，發展我們的產品、通路和服務，以最好地服務終端市場的客戶；第四，提高效率和優化。

Leveraging our strong balance sheet, we continue to invest across the business to drive progress on these strategic objectives during the third quarter. This included investments in our distribution capabilities and software offerings to further differentiate Patterson as a partner of choice for our customers.

憑藉我們強大的資產負債表，我們繼續在整個業務領域進行投資，以推動第三季這些策略目標的進展。這包括對我們的分銷能力和軟體產品的投資，以進一步使 Patterson 成為我們客戶的首選合作夥伴。

I'd like to highlight just a few specific examples that we have been working on to demonstrate our progress. First, the recently expanded dental distribution facility in Montreal, Canada is open and operational. This state-of-the-art facility equipped with a modern software system and advanced fulfillment infrastructure will enhance our ability to serve our Canadian customers effectively and efficiently. This modernization effort enables Patterson to further optimize our sales efforts, gain deeper insights into our customer needs and identify potential gaps in our offerings in this market, ultimately allowing us to bring Patterson's full value proposition to bear for our customers in Canada. We are excited about the opportunity our investment in Montreal can bring as we've seen the benefits of similar investments in other geographies.

我想強調一些我們一直在努力展示我們所取得的進展的具體例子。首先，最近在加拿大蒙特利爾擴建的牙科分銷設施已開放並投入營運。這個最先進的設施配備了現代化軟體系統和先進的履行基礎設施，將增強我們為加拿大客戶提供有效和高效服務的能力。這項現代化工作使 Patterson 能夠進一步優化我們的銷售工作，更深入地了解客戶需求，並找出我們在該市場的產品中的潛在差距，最終使我們能夠為加拿大客戶帶來 Patterson 的全部價值主張。我們對在蒙特婁的投資所能帶來的機會感到興奮，因為我們已經看到了其他地區類似投資的好處。

Our fully automated next-generation Animal Health fulfillment center in the U.K., which we call The Big Shed, has already fueled accelerated revenue growth and strengthened our market position in the region. During the third quarter, Patterson also continued to invest behind our robust suite of software solutions in both our Dental and Animal Health segments. As we've discussed previously, we believe the opportunity for growth within software is meaningful. And we're investing to enhance our existing products, drive productivity gains and cater to evolving customer preferences.

我們在英國的全自動化下一代動物保健履行中心（我們稱之為「The Big Shed」）已經推動了收入加速成長，並鞏固了我們在該地區的市場地位。在第三季度，帕特森也繼續投資於我們牙科和動物健康領域強大的軟體解決方案套件。正如我們之前討論的，我們相信軟體領域的成長機會是有意義的。我們正在投資增強現有產品、提高生產力並滿足不斷變化的客戶偏好。

For example during the third quarter, our Dental business announced a relationship with Pearl, a leading AI solution provider for the Dental business. This will enable us to integrate Pearl's AI pathology detection feature set called Second Opinion, into Patterson's Eaglesoft practice management software. Second Opinion uses AI to help dentists detect conditions commonly diagnosed in x-rays. It's a great example of the way we're investing in our existing solutions to create enhanced value for our customers. We are also partnering with Pearl to build integrations with our FUSE cloud-based practice management software and Dolphin practice management software. And those integrations will be announced at a future date.

例如，在第三季度，我們的牙科業務宣布與牙科業務領先的人工智慧解決方案提供商 Pearl 建立合作關係。這將使我們能夠將 Pearl 的人工智慧病理檢測功能集（稱為「第二意見」）整合到 Patterson 的 Eaglesoft 實踐管理軟體中。 Second Opinion 使用人工智慧幫助牙醫檢測 X 光中常見的診斷疾病。這是我們投資現有解決方案為客戶創造更高價值的一個很好的例子。我們也與 Pearl 合作，與我們基於雲端的 FUSE 實踐管理軟體和 Dolphin 實踐管理軟體建立整合。這些整合將在未來的某個日期宣布。

On the Animal Health side, we've continued to invest in Turnkey, our market-leading enterprise resource planning system for cattle producers. Majority of U.S. cattle on automated feed systems are managed by the Turnkey platform. Our recent investments have focused on empowering cattle producers to make more data-driven decisions as they leverage Turnkey to run more efficient, profitable businesses. We have confidence in the investments we're making for the long-term growth and success of Patterson, especially as we continue to build a track record of driving returns from our strategic investments.

在動物保健方面，我們繼續投資 Turnkey，這是我們面向牛生產者的市場領先的企業資源規劃系統。大多數使用自動飼料系統的美國牛都是由交鑰匙平台管理的。我們最近的投資重點是幫助養牛生產者利用交鑰匙技術運作更有效率、更有利潤的業務，從而做出更多數據驅動的決策。我們對為帕特森的長期成長和成功而進行的投資充滿信心，特別是在我們繼續建立從策略投資中獲得回報的良好記錄的情況下。

Last year, Patterson completed acquisitions of Dairy Tech and RSVP and ACT. Today, Dairy Tech, which provides pasteurizing equipment for producers, is operating as a Patterson-owned brand and is continuing to perform ahead of our internal projections with strong margin contribution.

去年，Patterson 完成了 Dairy Tech 以及 RSVP 和 ACT 的收購。如今，為生產商提供巴氏滅菌設備的 Dairy Tech 作為 Patterson 旗下品牌運營，並繼續以強勁的利潤貢獻領先於我們的內部預測。

Meanwhile, our team is continuing to expand RSVP and ACT's geographic reach to serve more veterinarian staffing and video-based training services and needs across additional states as well as data extraction and conversion services. As we've said before, we remain committed to managing the organization with a keen focus on cost discipline. We continue to focus on running a rigorous process for this discipline and return on our investments that leverages best practices and advanced operational excellence across the enterprise.

同時，我們的團隊正在繼續擴大 RSVP 和 ACT 的地理覆蓋範圍，以滿足更多獸醫人員配備和基於視頻的培訓服務以及其他州的需求以及數據提取和轉換服務。正如我們之前所說，我們仍然致力於管理組織，並專注於成本紀律。我們繼續專注於在這一領域運行嚴格的流程，並利用整個企業的最佳實踐和先進的卓越營運來回報我們的投資。

As we enter the final quarter of fiscal 2024 and look forward to fiscal 2025, we continue to believe that the strength of our team, the resiliency of the Dental and Animal Health end markets and our comprehensive value proposition make Patterson well positioned to drive enhanced growth, profitability and value creation over the long term.

隨著我們進入 2024 財年最後一個季度並展望 2025 財年，我們仍然相信，我們團隊的實力、牙科和動物保健終端市場的彈性以及我們全面的價值主張使 Patterson 處於有利地位，能夠推動增長、長期獲利能力和價值創造。

Now I'll provide more detail on the financial performance in each of our 2 business segments during the fiscal third quarter. Let's start with Dental. In the third quarter, Dental segment internal sales increased 2.5% year-over-year, driven by robust performance in consumables. We believe both our consumables and equipment business performed better than the overall market during the third quarter.

現在，我將提供有關第三財季我們兩個業務部門的財務表現的更多詳細資訊。讓我們從牙科開始。第三季度，在耗材強勁表現的推動下，牙科業務內部銷售額年增 2.5%。我們相信我們的耗材和設備業務在第三季的表現優於整體市場。

The Patterson team's steadfast focus and execution has enabled us to consistently deliver above-market growth in consumables over the past year. In fact, if you take a look at the 4 fiscal quarters prior to Q3, we delivered an average quarterly year-over-year consumables growth of just over 5%, excluding certain infection control products. We built upon this track record in the third quarter, achieving over 6% growth in the category. And when excluding certain infection control products, just over 7% growth.

帕特森團隊堅定的專注和執行力使我們能夠在過去一年中持續實現高於市場水平的消耗品成長。事實上，如果你看一下第三季度之前的 4 個財政季度，我們的消耗品季度平均年增率略高於 5%，不包括某些感染控制產品。我們在第三季以此為基礎，實現了該類別超過 6% 的成長。若排除某些感染控制產品，成長率略高於 7%。

We attribute our continued success in consumable growth to Patterson's differentiated value proposition for Dental customers. It is rooted in strong execution on the deep relationships we have built with our dental customers over time, thanks to a mature and knowledgeable sales force that acts as a true partner to dental customers of all sizes, from independent practices to DSOs and everything in between. Our team is consistently seeking to be an indispensable partner that supports dentists with everything they need to run their practices, allowing them to focus on what's important, patient care. Our consumable performance during the quarter was also supported by consistent patient traffic, reflecting the dental end market's resiliency and ability to drive demand despite inflationary pressures. Patients continue to prioritize essential dental care even when they might be cutting back on some of the other discretionary spending.

我們將消耗品成長的持續成功歸功於 Patterson 為牙科客戶提供的差異化價值主張。它植根於我們長期以來與牙科客戶建立的深厚關係的強大執行力，這要歸功於成熟且知識淵博的銷售隊伍，他們是各種規模的牙科客戶（從獨立診所到DSO 以及介於兩者之間的一切）的真正合作夥伴。我們的團隊始終致力於成為不可或缺的合作夥伴，為牙醫提供其執業所需的一切支持，使他們能夠專注於重要的事情，即患者護理。我們在本季的耗材表現也得到了持續的患者流量的支持，反映出牙科終端市場的彈性和儘管通膨壓力仍能推動需求的能力。患者繼續優先考慮基本的牙科護理，即使他們可能會削減一些其他可自由支配的支出。

In the dental equipment business, internal sales declined by year-over-year basis about 2% as improved performance in high-tech equipment was more than offset by a decline in core equipment sales as we lap post-COVID supply chain delays. Our results demonstrate 2 key points. First, the variability of the dental equipment category and how equipment sales, whether high tech or core, can fluctuate year-over-year and quarter-to-quarter. During the third quarter, this [bore] out with lower-than-anticipated sales performance in our core equipment category.

在牙科設備業務中，內部銷售額年減約 2%，因為高科技設備業績的改善被新冠疫情後供應鏈延遲造成的核心設備銷售下降所抵消。我們的結果證明了兩個關鍵點。首先，牙科設備類別的變化以及設備銷售（無論是高科技設備還是核心設備）的同比和季度波動。第三季度，我們的核心設備類別的銷售業績低於預期。

Second, in our fiscal 2024 third quarter, equipment demand was challenged by continued macroeconomic pressures, including comparatively higher interest rates and less capital availability in the year-ago period. We expect these dynamics to continue to shape our equipment performance in the fourth quarter and revise our 2024 full year adjusted EPS guidance accordingly. We have navigated economic cycles successfully in the past. We remain confident in our ability to overcome these headwinds by continuing to work strategically with our manufacturing partners, and by delivering comprehensive support that enables our customers to streamline operations, optimize resources and ultimately focus on patient care.

其次，在 2024 財年第三季度，設備需求受到持續宏觀經濟壓力的挑戰，包括去年同期相對較高的利率和可用資本減少。我們預計這些動態將持續影響我們第四季的設備業績，並相應修改我們的 2024 年全年調整後每股收益指引。我們過去成功地駕馭了經濟週期。我們仍然對克服這些不利因素充滿信心，透過繼續與我們的製造合作夥伴進行策略合作，並提供全面的支持，使我們的客戶能夠簡化營運、優化資源並最終專注於患者護理。

What's most important are the longer-term trends. The growing use of digital technology enables dentists to offer an improved patient experience with a higher level of oral health care. That improved experience for both dentists and patients drives demand for innovation and supports a long runway of growth over time. When new technology enters the marketplace, Patterson is best positioned to sell, finance, install and service that technology with a complete life cycle of those investments.

最重要的是長期趨勢。數位技術的日益普及使牙醫能夠透過更高水準的口腔保健來改善患者體驗。牙醫和患者體驗的改善推動了創新需求，並支持長期成長。當新技術進入市場時，帕特森最有能力在這些投資的完整生命週期中銷售、融資、安裝和服務該技術。

Finally, Dental internal sales in our value-added services category were roughly flat compared to the prior year period. Value-added services represent the entire suite of offerings we provide to our customers that enhance the customer experience, drive loyalty and help make Patterson an indispensable partner in their practice. The Dental value-added services category includes software and e-services, a foundation of a modern dental practice that remains a long-term growth opportunity for Patterson. We are confident that continuing to invest in and promote our cloud-based software helps maximize our value-added services offerings and will deepen our comprehensive value proposition to our customers.

最後，加值服務類別的牙科內部銷售額與去年同期大致持平。加值服務代表了我們向客戶提供的整套產品，這些產品可增強客戶體驗、提高忠誠度並幫助 Patterson 成為其實踐中不可或缺的合作夥伴。牙科增值服務類別包括軟體和電子服務，這是現代牙科診所的基礎，仍然是 Patterson 的長期成長機會。我們相信，繼續投資和推廣我們的基於雲端的軟體有助於最大限度地提高我們的增值服務產品，並將深化我們對客戶的全面價值主張。

Looking ahead, we believe Dental market remains stable with healthy underlying fundamentals, including an aging population, practice modernization and the direct link between the patient's oral health and overall health. We remain confident in our team's ability to effectively navigate the dynamic environment and achieve our long-term goals.

展望未來，我們認為牙科市場保持穩定，基本面健康，包括人口老化、實踐現代化以及患者口腔健康與整體健康之間的直接聯繫。我們對我們的團隊有效駕馭動態環境並實現我們的長期目標的能力充滿信心。

Now let's move on to our Animal Health segment. During the third quarter, Patterson's Animal Health segment internal sales decreased 1.5% year-over-year as above-market growth in the production animal business was more than offset by reduced sales in the companion animal business. Our Animal Health team achieved year-over-year adjusted operating margin improvement of 22 basis points, further building upon their track record of year-over-year operating margin expansion in 6 of the last 8 fiscal quarters. This excellent progression is testament to the Animal Health team's disciplined execution of the margin-accretive initiatives that we have put in place.

現在讓我們繼續我們的動物健康部分。第三季度，帕特森動物保健部門的內部銷售額年減 1.5%，因為生產動物業務高於市場的成長被伴侶動物業務銷售額的減少所抵消。我們的動物保健團隊調整後營業利潤率同比提高了 22 個基點，進一步鞏固了他們在過去 8 個財政季度中的 6 個季度中營業利潤率同比增長的記錄。這項出色的進展證明了動物保健團隊嚴格執行我們已實施的利潤成長計畫。

In companion animal, our internal sales in the third quarter declined by low single digits. This performance reflects our own strategic decisions and continued discipline to focus on more profitable business in the quarter in ways that modestly reduced our top line growth while supporting our margin enhancement initiatives. This includes working closely with vendors who reward us for our extensive value proposition. We remain committed to driving continued margin expansion while sustaining healthy top line performance within stable end market. Over the long term, we expect the companion animal market to grow in the low single digits, building upon the substantial growth this market has experienced since the onset of the pandemic. The health of this end market is supported by strong fundamentals and positive long-term trends in pet parenting.

在伴侶動物方面，我們第三季的內部銷售額下降了低個位數。這項業績反映了我們自己的策略決策和持續的紀律，即在本季度專注於利潤更高的業務，從而適度降低我們的營收成長，同時支持我們的利潤提升計劃。這包括與那些因我們廣泛的價值主張而獎勵我們的供應商密切合作。我們仍致力於推動利潤率持續擴張，同時在穩定的終端市場中保持健康的營收表現。從長遠來看，我們預計伴侶動物市場將以較低的個位數成長，這是建立在該市場自大流行爆發以來經歷的大幅成長的基礎上的。這一終端市場的健康發展得到了寵物育兒領域強勁的基本面和積極的長期趨勢的支持。

On the production animal side. Thanks to our team's outstanding execution, third quarter internal sales grew by low single digits in a dynamic market environment. We believe Patterson continues to outperform the broader production animal market due to the strength of our omnichannel presence, highly tailored distribution strategy and comprehensive offering across species.

在生產動物方面。由於我們團隊出色的執行力，第三季內部銷售額在動態的市場環境中實現了低個位數成長。我們相信，由於我們全通路的實力、高度客製化的分銷策略和跨物種的全面產品，帕特森將繼續跑贏更廣泛的生產動物市場。

Across the Animal Health segment, our value-added services category delivered robust double-digit growth during the quarter, reflecting continued demand for our suite of software solutions and e-services that resonate strongly with customers. Similar to our Dental segment, our value-added services offering is a differentiator for Patterson and enables us to support the full life cycle of equipment for our customers. We're confident that the opportunity for continued growth within software remains significant. And we continue to invest in existing solutions to better leverage our strong foundation, add to our capabilities and address evolving customer preferences. As we look ahead, we believe our Animal Health business is positioned for continued success.

在動物保健領域，我們的加值服務類別在本季實現了兩位數的強勁成長，反映出對我們的軟體解決方案和電子服務套件的持續需求，與客戶產生了強烈的共鳴。與我們的牙科部門類似，我們的增值服務產品是 Patterson 的優勢所在，使我們能夠為客戶的設備的整個生命週期提供支援。我們相信，軟體領域持續成長的機會仍然很大。我們繼續投資現有解決方案，以更好地利用我們強大的基礎，增強我們的能力並滿足不斷變化的客戶偏好。展望未來，我們相信我們的動物保健業務將持續成功。

Now I'll turn the call over to Kevin Barry to provide more details on our financials.

現在我將把電話轉給凱文·巴里 (Kevin Barry)，以提供有關我們財務狀況的更多詳細資訊。

Thank you, Don, and good morning, everyone. In my prepared remarks this morning, I will cover the financial results for our third quarter of fiscal '24, which ended on January 27, 2024, and then conclude with our outlook for the remainder of our fiscal year. Let's begin by covering the financial results.

謝謝你，唐，大家早安。在今天早上準備好的發言中，我將介紹截至 2024 年 1 月 27 日結束的 24 財年第三季的財務業績，然後總結我們對本財年剩餘時間的展望。讓我們先介紹一下財務業績。

Consolidated reported sales for Patterson Companies in our fiscal '24 third quarter were $1.62 billion, an increase of 1.0% over the third quarter of 1 year ago. Internal sales increased 0.3% compared to the same period last year.

Patterson Companies 在 2024 財年第三季的綜合銷售額為 16.2 億美元，比一年前第三季成長 1.0%。內部銷售額比去年同期成長0.3%。

Gross margin for the third fiscal quarter '24 was 21.7%, an increase of 30 basis points compared to the prior year period. Beginning with our fiscal '24 second quarter, we began providing the financial metric adjusted gross margin, which is a non-GAAP financial measure that adjust gross margin for the impact of the mark-to-market accounting related to our equipment financing portfolio and the associated interest rate swap hedging instruments. The accounting impact of the mark-to-market adjustment impacts our total company gross margin, but not the gross margin within our business segment. And as previously mentioned, the net impact of interest rate fluctuations between the swap and the equipment financing portfolio has minimal impact to net income.

2024 年第三財季的毛利率為 21.7%，比去年同期成長了 30 個基點。從 24 財年第二季開始，我們開始提供財務指標調整後毛利率，這是一項非 GAAP 財務指標，根據與我們的設備融資組合相關的按市值計價會計的影響調整毛利率，相關利率掉期對沖工具。以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。如前所述，掉期和設備融資組合之間的利率波動對淨利潤的影響很小。

For the third quarter of fiscal '24, our adjusted gross margin was 21.6%, an increase of 30 basis points compared to the year-ago period. Adjusted operating expenses as a percentage of net sales for the third quarter of fiscal '24 were 16.8% and unfavorable by 70 basis points compared to the third quarter of fiscal '23. A portion of the unfavorable comparison is attributable to expenses associated with the strategic investments we made to enhance our distribution capabilities and software (inaudible) in the quarter.

24財年第三季度，我們調整後的毛利率為21.6%，比去年同期成長了30個基點。 24 財年第三季調整後營運費用佔淨銷售額的百分比為 16.8%，與 23 財年第三季相比下降了 70 個基點。不利比較的部分原因是我們在本季為增強分銷能力和軟體（聽不清楚）而進行的策略投資相關的費用。

In the third quarter of fiscal '24, our consolidated adjusted operating margin was 4.7%, a decrease of 50 basis points compared to the third quarter of last year. Adjusted operating margin includes the adjustment of the interest rate swap mentioned previously. For the remainder of fiscal '24, we intend to continue exercising expense discipline while also prioritizing the margin enhancement initiatives that have been yielding results within our business segments and for the company overall.

2024財年第三季度，我們的綜合調整後營業利益率為4.7%，比去年第三季下降了50個基點。調整後的營業利益率包括前面提到的利率互換的調整。在 24 財年的剩餘時間裡，我們打算繼續實行費用紀律，同時優先考慮提高利潤率的舉措，這些舉措在我們的業務部門和整個公司中取得了成果。

Our adjusted tax rate for the third quarter of fiscal '24 was 23.3%, an increase of 80 basis points compared to the prior year period. Reported net income attributable to Patterson Companies, Inc. for the third quarter of fiscal '24 was $47.7 million or $0.52 per diluted share. This compares to reported net income in the third quarter of last year of $53.9 million or $0.55 per diluted share. Adjusted net income attributable to Patterson Companies, Inc. for the third quarter of fiscal '24 was $55.0 million or $0.59 per diluted share. This compares to $61.1 million or $0.62 per diluted share in the third quarter of fiscal '23. This decrease in adjusted earnings per diluted share for the fiscal third quarter was primarily due to lower sales of dental equipment and increased operating expenses compared to the prior year period.

我們2024財年第三季的調整後稅率為23.3%，比去年同期增加了80個基點。 2024 財年第三季 Patterson Companies, Inc. 公佈的淨利為 4,770 萬美元，或攤薄後每股收益 0.52 美元。相比之下，去年第三季報告的淨利潤為 5,390 萬美元，即稀釋後每股收益 0.55 美元。 2024 財年第三季調整後歸屬於 Patterson Companies, Inc. 的淨利為 5,500 萬美元，或攤薄後每股收益 0.59 美元。相比之下，2023 財年第三季的 6,110 萬美元或稀釋後每股 0.62 美元。第三財季調整後每股攤薄收益的下降主要是由於與去年同期相比，牙科設備銷售下降和營運費用增加。

Now let's turn to our business segments, starting with our Dental business. In the third quarter of fiscal '24, internal sales for our Dental business increased 2.5% compared to the third quarter of fiscal '23. Internal sales of dental consumables increased 6.3% compared to 1 year ago, despite being impacted by continued price deflation of certain infection control products. Internal sales of non-infection control products increased 7.2% in the third quarter of fiscal '24 compared to the year-ago period. This negative impact from infection control product deflation has steadily moderated over the past year, and we expect the year-over-year deflationary impact to normalize by the end of fiscal year '24.

現在讓我們轉向我們的業務部門，從牙科業務開始。在 24 財年第三季度，我們牙科業務的內部銷售額比 23 財年第三季成長了 2.5%。儘管受到某些感染控制產品價格持續下跌的影響，牙科耗材的內部銷售額仍較一年前成長了 6.3%。與去年同期相比，2024 財年第三季非感染控制產品的內部銷售額成長了 7.2%。感染控制產品通貨緊縮帶來的負面影響在過去一年中穩步減弱，我們預計將在 24 財年末正常化。

Internal sales of dental equipment during the quarter decreased 2.4% compared to 1 year ago. Our equipment category continues to be impacted by headwinds related to macroeconomic concerns, a higher interest rate environment and selling price declines. However, during the third quarter, digital x-ray and CAD/CAM equipment categories posted positive sales growth, reflecting the desire from many dentists to continue investing in technology to modernize their practices. Internal sales of value-added services in the third quarter of fiscal '24 decreased 0.2% over the prior year period. Value-added services, including our software offerings, represent the entire suite of offerings we provide to our customers to help make us an indispensable partner to their practice. We remain confident in the investments we have made in this important category and the continued progress on our long-term strategy.

本季牙科設備的內部銷售額與一年前相比下降了 2.4%。我們的設備類別持續受到宏觀經濟擔憂、利率上升和銷售價格下降等不利因素的影響。然而，在第三季度，數位 X 光和 CAD/CAM 設備類別的銷售出現正增長，反映出許多牙醫希望繼續投資技術以實現其實踐現代化。 2024 財年第三季增值服務內部銷售額年減 0.2%。加值服務，包括我們的軟體產品，代表了我們向客戶提供的整套產品，以幫助我們成為他們實踐中不可或缺的合作夥伴。我們對這一重要類別的投資以及長期策略的持續進展仍然充滿信心。

Adjusted operating margin in the Dental segment was 8.9% in the third quarter of fiscal '24, which represents a 130 basis point decrease over the prior year period. Increased operating expenses related to our SAP implementation and warehouse expansion in Canada, along with investments in our software and technical service business, drove the unfavorable comparison in adjusted operating margin on a year-over-year basis.

2024 財年第三季度，牙科業務調整後營業利益率為 8.9%，較上年同期下降 130 個基點。與加拿大 SAP 實施和倉庫擴建相關的營運費用增加，以及對軟體和技術服務業務的投資，導致調整後營運利潤率同比出現不利比較。

Now let's move to our Animal Health segment. In the third quarter of fiscal '24, internal sales of our Animal Health business decreased 1.5% compared to the third quarter of fiscal '23. Internal sales for our total companion animal business during the quarter decreased 3.8% over the prior year period. Positive internal sales performance from our NVS business in the U.K. was more than offset by a decline in internal sales in the U.S. companion animal business. Internal sales for our production animal business in the fiscal third quarter increased 1.1% compared to the prior year period. Our production animal team continues to execute well on a challenging market, and our omnichannel approach across several species continues to pay off with sales growth above the overall market. The adjusted operating margin in our Animal Health segment was 4.4% in the fiscal '24 third quarter (inaudible) 20 basis points from the prior year period. Gross margins in our Animal Health segment were up in the fiscal '24 third quarter, and additional operating expense discipline drove the operating margin increase on a year-over-year basis.

現在讓我們轉到動物保健部分。在 24 財年第三季度，我們的動物保健業務的內部銷售額與 23 財年第三季度相比下降了 1.5%。本季我們伴侶動物業務的內部銷售額比去年同期下降了 3.8%。我們在英國 NVS 業務的積極內部銷售業績被美國伴侶動物業務內部銷售的下降所抵消。第三財季我們生產動物業務的內部銷售額比去年同期成長了 1.1%。我們的生產動物團隊繼續在充滿挑戰的市場中表現出色，我們在多個物種上的全通路方法繼續獲得回報，銷售成長高於整體市場。 2024 財年第三季度，我們的動物保健部門調整後的營業利潤率為 4.4%（聽不清楚），比去年同期提高了 20 個基點。我們的動物保健部門的毛利率在 2024 財年第三季有所上升，額外的營運費用紀律推動了營運利潤率同比增長。

Now let me cover cash flow and balance sheet items. During the first 9 months of fiscal '24, our free cash flow improved by $11.9 million compared to the same period 1 year ago. This was primarily due to a decreased level of working capital in the first 9 months of fiscal '24 compared to the prior year period. Now look -- turning now to capital allocation. Our capital spending in the first 9 months of fiscal '24 was $51.2 million, which is $8.8 million higher than the first 9 months of fiscal '23. This increased spending reflects the investments we are making in our distribution capabilities as well as software and value-added services.

現在讓我介紹一下現金流量和資產負債表項目。在 2024 財年的前 9 個月，我們的自由現金流與一年前同期相比增加了 1,190 萬美元。這主要是由於 24 財年前 9 個月的營運資本水準與去年同期相比有所下降。現在看——現在轉向資本配置。我們在 24 財年的前 9 個月的資本支出為 5,120 萬美元，比 23 財年的前 9 個月增加了 880 萬美元。支出的增加反映了我們對分銷能力以及軟體和增值服務的投資。

We continue to execute on a key capital allocation strategy of returning cash to our shareholders. In the third quarter of fiscal '24, we declared a quarterly cash dividend of $0.26 per diluted share, which was then paid at the beginning of the fourth quarter of fiscal '24. We also repurchased approximately $124 million of shares during the third quarter of fiscal '24, returning a total of $148.8 million to shareholders through dividends and share repurchases. And through the first 9 months of fiscal '24, we have returned $289.6 million to our shareholders through dividends and share repurchases.

我們繼續執行向股東返還現金的關鍵資本配置策略。在 24 財年第三季度，我們宣布季度現金股利為稀釋後每股 0.26 美元，然後在 24 財年第四季初支付。我們也在 24 財年第三季回購了約 1.24 億美元的股票，透過股利和股票回購向股東總共返還了 1.488 億美元。在 2024 財年的前 9 個月，我們透過股利和股票回購向股東返還了 2.896 億美元。

Let me conclude with our outlook for the remainder of fiscal '24. Today, we are revising our fiscal '24 GAAP earnings guidance to a range of $1.99 to $2.04 per diluted share and our adjusted earnings guidance range to $2.30 to $2.35 per diluted share. We have made these revisions to our GAAP and adjusted earnings per share guidance to account for the current macroeconomic environment and aforementioned conditions in our end markets that we believe are likely to persist for the remainder of our fiscal '24 year.

最後讓我對 24 財年剩餘時間的展望進行總結。今天，我們將 24 財年 GAAP 獲利指引修訂為稀釋後每股 1.99 美元至 2.04 美元，調整後獲利指引範圍為稀釋後每股 2.30 美元至 2.35 美元。我們對 GAAP 進行了這些修訂，並調整了每股收益指引，以考慮到當前的宏觀經濟環境以及我們認為終端市場的上述條件可能會在我們 24 財年的剩餘時間內持續存在。

And now I will turn the call back over to Don for some additional comments.

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 want to thank the entire Patterson team for their continued hard work and commitment to our strategy of serving our customers.

謝謝，凱文。在我們開始問答之前，我要感謝整個帕特森團隊的持續努力和對我們服務客戶策略的承諾。

As we conclude fiscal 2024, we remain focused on navigating the current environment by staying true to our strategic objectives and achieving operational excellence. Our efforts are concentrated on executing to end our fiscal year in a position of strength. We are confident that the strength of our team, the resiliency of the Dental and Animal Health end markets and our comprehensive value proposition make Patterson well positioned to drive enhanced growth, profitability and value creation over the long term.

在 2024 財年結束之際，我們仍然專注於透過忠於我們的策略目標和實現卓越營運來應對當前環境。我們的努力集中在以強勢的方式結束我們的財政年度。我們相信，我們團隊的實力、牙科和動物保健終端市場的彈性以及我們全面的價值主張使 Patterson 能夠在長期推動成長、盈利和價值創造方面處於有利地位。

That concludes our prepared remarks. Kevin and I will be glad to take questions. Operator, please open the line.

我們準備好的演講到此結束。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 Michael Cherny with Leerink Partners.

（操作員說明）您的第一個問題來自 Leerink Partners 的 Michael Cherny。

Maybe if we can just start on equipment, both from a revenue growth perspective as well as subsequent margins. I know you've -- this is in the first quarter, you've talked about macro-oriented pressures. But obviously, the trend on challenges in the equipment side have been challenging. As you think about not only ending the year but diving into '25, how do you think about where your visibility stands, be it the health of the backlog, how you think about the backlog conversion rates and what that means, especially as we kick off into '25, knowing obviously, full well you haven't actually given '25 color yet.

也許我們可以從設備開始，無論是從收入成長還是隨後的利潤角度來看。我知道您在第一季談到了宏觀壓力。但顯然，設備方面的挑戰趨勢一直充滿挑戰。當您不僅考慮結束這一年，還考慮進入25 年時，您如何看待您的可見性，無論是積壓的健康狀況，您如何看待積壓的轉換率及其意味著什麼，尤其是當我們踢的時候進入'25，顯然，完全清楚你還沒有真正給出'25 顏色。

Yes. Thanks, Michael. Well, I think we're watching the backlog closely. And we think while our fourth quarter guidance, we talk about some of the macroeconomic pressures on the equipment side of the business, I think for us, we think that ultimately, the strength of that market and our position in it is really going to be what carries the day. And so I think if you're looking forward to FY '25 and obviously, being careful here trying to help you. But being careful about our comments, I think we think that as we move into fiscal '25, there's -- we should see improvement. We should see improvement in the equipment side of the business. And that's kind of (inaudible) as of right now.

是的。謝謝，麥可。嗯，我認為我們正在密切關注積壓的情況。我們認為，在我們的第四季度指導中，我們談論了業務設備方面的一些宏觀經濟壓力，我認為對我們來說，我們認為最終，該市場的實力和我們在其中的地位確實將是什麼帶來了這一天。因此，我認為，如果您期待 25 財年，顯然，請小心謹慎，試圖為您提供幫助。但請謹慎對待我們的評論，我認為，當我們進入 25 財年時，我們應該會看到改進。我們應該看到業務設備方面的改善。到目前為止，這就是（聽不清楚）。

Okay. And then as you think about that potential for improvement, how do you think about the internal spend levels? And what I mean by that is you talked about trying to drive ongoing operational improvements. I know it's something that's been a big part of your work basically since you joined the company, Don. Where do you think you are in terms of operational efficiency across the organization? And what are the puts and takes that you can control on your own to offset any potential variability on demand curves?

好的。然後，當您考慮改進的潛力時，您如何看待內部支出水準？我的意思是，您談到了努力推動持續的營運改善。我知道自從你加入公司以來，這一直是你工作的重要組成部分，Don。您認為您在整個組織的營運效率方面處於什麼位置？您可以自行控制哪些看跌期權和看跌期權，以抵消需求曲線上的任何潛在變化？

Yes. So I'll maybe start, and then Kevin can add here. But I think -- we think we have a lot of opportunity here. I think I've mentioned this in the past, but when we put Kevin Pohlman in place in the Chief Operating Officer role, a big part of his responsibilities really relate to how to get the efficiencies out of the business. So we really -- we tapped into, but not have really tapped into significantly as we look across the business and look across our 3 businesses and how we operate.

是的。所以我可能會開始，然後凱文可以在這裡添加。但我認為——我們認為我們這裡有很多機會。我想我過去已經提到過這一點，但是當我們讓凱文·波爾曼擔任首席營運長時，他的大部分職責實際上與如何提高業務效率有關。因此，當我們縱觀整個業務、縱觀我們的 3 項業務以及我們的營運方式時，我們確實有所利用，但並沒有真正充分利用。

So there's a lot of good work being done in this area. Some of it is short-term gains and things that we could get at right away that we've worked through. But a big part of that are things that take a little more time. Kind of by definition, those are the things that are going to take us more time to get at, and we're working through those right now.

因此，這個領域正在做很多好的工作。其中一些是短期收益，以及我們已經解決的可以立即獲得的東西。但其中很大一部分是需要更多時間的事情。根據定義，這些事情需要我們花更多時間才能完成，而我們現在正在解決這些問題。

So I feel really good about the opportunity there. I think when we looked into this idea, and we put Kevin in place, he's doing a great job and it's kind of bearing out like I thought it would. So more to come on that. But maybe I'll ask Kevin if he has any comments.

所以我對那裡的機會感到非常高興。我認為，當我們研究這個想法並讓凱文就位時，他做得很好，而且就像我想像的那樣。所以還有更多的事情要做。但也許我會問凱文他是否有意見。

Yes. I think a good example of that here in our fiscal '24, we've had a real focus on investing in some of those opportunities in our logistics network. And we came online with 2 new distribution centers in our network, one in the U.K., one in Canada. And that team has done some really good work to leverage our capital spend this year into initiatives that, to Don's point, will start paying out with better efficiencies in that part of our operation going forward. So I think that's a good example of things that we're doing now that as we go forward, we see -- we're putting our capital to good work. It's going to bear some fruit in the expense line going forward.

是的。我認為，24 財年就是一個很好的例子，我們真正專注於投資物流網絡中的一些機會。我們的網路中新增了 2 個配送中心，一個位於英國，一個位於加拿大。團隊已經做了一些非常好的工作，將我們今年的資本支出用於各種計劃，對於唐來說，這些計劃將開始在我們未來的營運部分中以更高的效率進行支付。所以我認為這是我們現在正在做的事情的一個很好的例子，隨著我們的前進，我們看到——我們正在把我們的資本投入到好的工作中。它將在未來的支出方面取得一些成果。

Your next question comes from the line of Jon Block with Stifel.

你的下一個問題來自 Jon Block 和 Stifel 的對話。

Maybe just one on each side of the business. Dental consumables continues to certainly be one of the highlights. And maybe, Don, just your thoughts if the mid-single-digit growth is sustainable going forward. Or were some of these results more onetime due to the challenges that a competitor was having? And maybe just taking a step back, can you speak to the tailwinds that you think you got or lack thereof from the competitors' challenges over the past few months? And then I'll ask my follow-up.

也許業務的每一方只有一個。牙科耗材無疑仍然是亮點之一。唐，也許這只是您的想法，未來中個位數的成長是否可持續。或者其中一些結果是由於競爭對手面臨的挑戰而導致的？也許退一步，您能談談您認為自己在過去幾個月裡從競爭對手的挑戰中獲得或缺乏的順風車嗎？然後我會問我的後續行動。

Yes. Thanks, Jon. So a few things. Obviously, there's a little bit of art in terms of trying to pin down the exact benefit from the challenges of our competitor. So it's a little bit difficult to calculate with precision. But I think if you take a look at the 4 fiscal quarters prior to Q3, we've been delivering in this area just over 5% growth when you exclude the certain infection control products. And so that's kind of been our baseline. And really, that continued in the quarter.

是的。謝謝，喬恩。所以有幾件事。顯然，試圖從競爭對手的挑戰中確定確切的利益是有一點技巧的。所以要精確計算有點困難。但我認為，如果你看一下第三季度之前的 4 個財政季度，如果排除某些感染控制產品，我們在這一領域的成長率略高於 5%。這就是我們的基線。事實上，這種情況在本季仍在繼續。

Our best estimate right now of the impact of that is it added about 2 percentage points to that growth. So you could think about the 7% growth we had, excluding infection control products, as really probably more in the 5 range, which is consistent with kind of where we've been. And for us, we tried to take a pretty disciplined and sustainable approach to what happened there. And so we were looking for share that we think is something that we can sustain and hold on to. And -- but really, the story for me is less about that and more about just the continued execution of the team in the market here at the 5% level over an extended period of time.

我們目前對其影響的最佳估計是，該成長將增加約 2 個百分點。因此，您可以想像我們的 7% 成長（不包括感染控制產品），實際上可能更多在 5 範圍內，這與我們一直以來的情況一致。對我們來說，我們試圖對那裡發生的事情採取非常嚴格和可持續的方法。因此，我們正在尋找我們認為可以維持和持有的份額。但實際上，對我來說，故事的重點不是這個，而是團隊在很長一段時間內以 5% 的水平在市場上持續執行的情況。

Got it. That was very helpful. And then just a pivot to Animal Health. The down low single digit, I think that was a number for companion animal seems to have lagged the industry of late. And you talked a little bit about why in terms of, I guess, I'll sort of call it margin integrity. I think you may have alluded to that last quarter as well. So importantly, does this have another, call it, 2 quarters or so until you lap it? And then looking forward into your next -- maybe fiscal year, do you see any access for Animal Health distributors in the companion animal side for, call it, access to increase products, certain product lines coming to light in coming quarters?

知道了。這非常有幫助。然後只是轉向動物健康。低個位數，我認為這是伴侶動物的數字，最近似乎落後於該行業。你談到了為什麼，我想，我會稱之為保證金完整性。我想您可能也提到了上個季度的情況。所以重要的是，這是否還有另一個，稱之為，2 個季度左右，直到你完成一圈？然後展望下一個財年，您是否認為伴侶動物方面的動物保健分銷商有機會增加產品，某些產品線將在未來幾季曝光？

Yes. Well, on the first question, I think yes, we're taking a very disciplined approach in this area. I think when you're dealing with the margin profile there, we have a disciplined way of looking at profitability by customer and a lot of data. And you're right. For us, it's been important to take that disciplined approach to the customers and profitability and make sure that we're serving the customers that value our proposition and that we feel like we can earn that profitability with.

是的。嗯，關於第一個問題，我認為是的，我們在這一領域採取了非常嚴格的方法。我認為，當您處理那裡的利潤狀況時，我們有一種嚴格的方法來查看客戶和大量數據的盈利能力。你是對的。對我們來說，重要的是對客戶和盈利能力採取嚴格的方法，並確保我們為重視我們主張的客戶提供服務，並且我們認為我們可以透過這種盈利能力獲得盈利。

Your question on -- we did mention that last quarter. It's a continuing dynamic this quarter. I'm not sure we're going to completely lap it in the next 2 quarters. This has actually been going on for some time, and we'll see how the industry evolves. But you could probably think about it as lapping in 2 quarters, but there could be some holdover. I just think it really proves our approach here on all 3 businesses, but particularly as you look at the Animal Health businesses and their margin profile, this is a very extremely important initiative for us. Yes, there are some innovative products coming. We're excited about it. So without going into maybe details on exactly all the things that are there, we have some good plans for the companion business.

你的問題是——我們上個季度確實提到過這一點。本季這種情況持續存在。我不確定我們是否會在接下來的兩個季度內完全完成它。這種情況實際上已經持續了一段時間，我們將看看這個行業如何發展。但你可能會認為它是在兩個季度內完成的，但可能會有一些延遲。我只是認為這確實證明了我們在所有 3 項業務上的做法，但特別是當您查看動物保健業務及其利潤狀況時，這對我們來說是一項非常重要的舉措。是的，有一些創新產品即將推出。我們對此感到興奮。因此，在不詳細討論所有事情的情況下，我們對配套業務有一些很好的計劃。

Maybe the one thing I'll add, Jon, is just as we have -- we have planned for and expect to have the top line performance we've seen in the companion business. But that team has done a good job of holding the business model and to the margin profile. They're expanding the way we expect. So just to build on Don's point, I think we're doing this in a planful, disciplined way.

也許我要補充的一件事是，喬恩，正如我們所做的那樣——我們已經計劃並期望獲得我們在伴侶業務中看到的最高業績。但該團隊在保持商業模式和利潤狀況方面做得很好。他們正在以我們期望的方式擴張。因此，為了以唐的觀點為基礎，我認為我們正在以有計劃、有紀律的方式來做這件事。

Yes. And I think one thing you could -- we mentioned in the call, when you look at the RSVP and ACT transaction as an example here, where it's not only innovative products that are coming, but we're looking to expand our service offerings as well into higher margin, more sustainable EBITDA streams.

是的。我認為你可以做一件事——我們在電話中提到，當你以 RSVP 和 ACT 交易為例時，它不僅是即將到來的創新產品，而且我們希望擴大我們的服務範圍進入利潤率更高、更可持續的EBITDA 流。

Your next question comes from the line of Jason Bednar with Piper Sandler.

你的下一個問題來自 Jason Bednar 和 Piper Sandler 的對話。

I want to build a bit on some of the questions that have been already asked here this morning. But maybe starting first with margins. I know the dental equipment performance here in the quarter probably doesn't help a whole lot. But the other side of the business and consumables was pretty strong as you called out. You talked about your share gains. That's traditionally a higher-margin business, and that growth that you got in the quarter should be enough to give you leverage.

我想在今天早上已經提出的一些問題的基礎上再做一些闡述。但也許先從利潤開始。我知道本季牙科設備的表現可能沒有太大幫助。但正如您所說，業務和消耗品的另一面相當強勁。您談到了您的股票收益。傳統上，這是一項利潤率較高的業務，您在本季獲得的成長應該足以為您提供槓桿作用。

So I guess my question is, why didn't it come through in a better way or a bigger way? And can you help maybe with what margins would have been, if not for some of those distribution and software investments that you were making that weighed on profitability in the quarter?

所以我想我的問題是，為什麼它沒有以更好或更大的方式實現？如果不是您進行的某些分銷和軟體投資影響了本季的獲利能力，您能否幫助我們了解利潤率會是多少？

Yes, Jason, I think what I'd point to is within the quarter, we did see our gross margins expand for the company. And so while there are some puts and takes from a mix standpoint like you point out within our business, gross margin, you're right -- gross margin consumables mix is favorable in the Dental business. But also, candidly, the production animal, the Animal Health business dilutes that a bit. So -- but net-net, we did grow our gross margins in the quarter. And the issue from an operating margin standpoint was on the expense line.

是的，傑森，我想我要指出的是，在本季度內，我們確實看到公司的毛利率有所擴大。因此，雖然從混合的角度來看，就像您在我們的業務中指出的那樣，毛利率存在一些變化，但您是對的——毛利率消耗品組合在牙科業務中是有利的。但坦白說，生產動物、動物保健業務也削弱了這一點。所以，但淨淨來看，我們本季的毛利率確實有成長。從營業利益率的角度來看，問題在於費用項目。

And to your point, you're right. We talked a little bit in Q2 about how we are making some investments in the business. And we expected our expense burden here in Q3 to be a bit higher and normalize here as we go into Q4. And that really does relate to the kind of those distribution facilities coming online here earlier in the quarter as well as the ongoing investments we are making in our software capabilities. I don't know -- I don't quite have a basis point to give you in terms of if you strip all that out, what normalized. I think we -- as we go,n what I would tell you, I think, is going into Q4 here and beyond, we're obviously very focused on leveraging our operating expenses and getting that back in line. So we do see that as a tailwind to the op margin performance of the company.

就你的觀點而言，你是對的。我們在第二季討論如何對該業務進行一些投資。我們預計第三季的費用負擔會更高一些，並在進入第四季時恢復正常。這確實與本季早些時候上線的分發設施的類型以及我們對軟體功能的持續投資有關。我不知道——我不太有一個基點可以給你，如果你把所有這些都去掉，什麼是標準化的。我認為，隨著我們的進展，我想，進入第四季度及以後，我們顯然非常注重利用我們的營運支出並使其恢復正常。因此，我們確實認為這是該公司營運利潤率表現的推動力。

Yes. And Jason, I mean, I would just add one thing. I mean our -- just at a macro level, our P&L margin initiatives also -- a big part of that is really just built on leveraging sales growth. So when you look overall at the business, our sales growth was -- it's 4% in the first quarter, and the last 2 quarters has lagged behind a bit just because of the equipment dynamics. So that makes the leveraging story more difficult. But as we move forward and get that growth rate back in line, I think you'll see the results of that.

是的。傑森，我的意思是，我只想補充一件事。我的意思是，我們的——就宏觀層面而言，我們的損益利潤率計劃——其中很大一部分實際上只是建立在利用銷售成長的基礎上。因此，當你縱觀整個業務時，我們的銷售成長是——第一季為 4%，而過去兩個季度由於設備動態而略有落後。因此，這使得槓桿故事變得更加困難。但隨著我們向前邁進並使成長率恢復正常，我認為您會看到結果。

Okay. Maybe one follow-up and then another question. Just what should we expect in terms of maybe the spend that comes out that was maybe elevated the last quarter to fiscal second, third quarter that comes out as we go forward into the fourth quarter and think about '25 numbers. And then shifting over to Animal Health. Your next year of comps are easier. But I guess what I'm curious about here is whether you have visibility on that companion business turning the corner. Is there visibility on patient traffic getting better? Are there some branded products that are turning generic that might be an opportunity for you? Can you help us with whether there's any shift in direct versus agency? Is that the turn of the calendar year that we should be aware of as we model out the upcoming quarters?

好的。也許是一個後續行動，然後是另一個問題。我們應該期待什麼，也許上個季度可能會增加到第二、第三財季的支出，當我們進入第四季並考慮「25」的數字時，就會出現這種情況。然後轉向動物健康。你明年的比賽會更容易。但我想我好奇的是你是否能看到該夥伴業務的轉機。患者流量是否有改善？是否有一些正在變得通用的品牌產品可能對您來說是一個機會？您能否幫助我們了解直接與代理商之間是否有任何轉變？在我們為即將到來的幾個季度進行建模時，我們應該注意這一點嗎？

Yes. I think maybe on your first question about the OpEx, I think what I'd say is for Q4, we typically see better leverage on our OpEx than we do earlier in the year. And I expect that trend to continue. So basically, say it another way, I'd expect our OpEx percent of sales to decrease from where we've been here in Q3 into Q4, and similar to what it did last year. And then, I'm sorry, I was thinking about your first question, Jason, with your second question on companion.

是的。我想也許關於你關於營運支出的第一個問題，我想我想說的是第四季度，我們通常會看到比今年早些時候更好的營運支出槓桿。我預計這種趨勢將持續下去。因此，基本上，換句話說，我預計我們的營運支出佔銷售額的百分比將從第三季到第四季有所下降，與去年的情況類似。然後，對不起，傑森，我正在考慮你的第一個問題和關於同伴的第二個問題。

Yes. Yes. And I think, Jason, so we're not -- again, trying to be pretty helpful for you as much as possible. But I think as we get into this, we're still working through our budgets for fiscal '25 and kind of the dynamics that we think will play into that, so we'll probably try to stay a bit disciplined. And that's a great question as we get into next quarter's call and talk through the budget for the year.

是的。是的。我想，傑森，所以我們不會再一次嘗試盡可能地為您提供幫助。但我認為，當我們進入這個階段時，我們仍在製定 25 財年的預算以及我們認為將發揮作用的動態，因此我們可能會嘗試保持一點紀律。當我們進入下一季的電話會議並討論今年的預算時，這是一個很好的問題。

Your next question comes from Jeff Johnson with Baird.

您的下一個問題來自 Jeff Johnson 和 Baird。

Yes. I joined late in all disclosure here, so I apologize if any of this has been asked. But Don, I joined as you were answering. I think it was Jon Block's question just on kind of the share pickup or growth points you seem to point to, from some disruption from one of your competitors here in the last few months. I couldn't tell in your answer if you thought those 2 points were sustainable or if you'd probably get that back and go back to that 5% number you alluded to kind of in the prior quarter. So one, just if you could clarify that.

是的。我很晚才參與這裡的所有披露，因此如果有人提出任何問題，我深表歉意。但是唐，當你回答的時候我加入了。我認為喬恩·布洛克（Jon Block）的問題只是關於你似乎指出的份額回升或增長點，來自過去幾個月你的競爭對手之一的一些幹擾。我無法在你的回答中判斷你是否認為這 2 點是可持續的，或者你是否可能會收回這一點並回到你在上一季度提到的 5% 的數字。所以，如果你能澄清這一點的話。

More importantly, when I look at the consumables market in North America, I don't think it's growing 5%. I mean it seems like there's a little value seepage from kind of premium branded down to lower-priced branded or private label. And I'm sure you guys are (inaudible) in that trade down that's happening. And I think on volumes, I don't think are growing more than probably low single digits at the very best. So where are you getting that 5%? We've heard that some of the online discounters have been stagnant, if not maybe even losing share the last couple of years. Is it coming from some of the value-added competitors? Just where do you think at 5%, you're getting kind of what I think is probably a couple of few points above market growth over these last 4, 5, 6 quarters?

更重要的是，當我觀察北美的消耗品市場時，我認為它沒有成長 5%。我的意思是，從高端品牌到低價品牌或自有品牌似乎有一點價值滲透。我確信你們（聽不清楚）正在發生這種情況。我認為就銷量而言，我認為成長最多也不會超過個位數。那你從哪裡得到這 5% 呢？我們聽說，一些線上折扣店在過去幾年中一直停滯不前，甚至可能失去市場份額。它是否來自一些增值競爭對手？您認為在 5% 的情況下，我認為您的成長率可能比過去 4、5、6 個季度的市場成長率高出幾個百分點？

Yes. Thanks, Jeff. And too bad, you missed all the prepared comments. It's all brilliant. But I think the 5%, when we look at this, it really is across the board. I mean I think -- I know that sounds a bit like a pad answer, but when we look through it, I would say that's the best way I can explain it to you. There's not a specific area that I would point to that says, here's where we're doing so much better than anywhere else. I think it's just been across the board. And so to us, that feels good. I think we feel like our value proposition here and our process there is working.

是的。謝謝，傑夫。太糟糕了，您錯過了所有準備好的評論。一切都很棒。但我認為，當我們審視這一點時，這 5% 確實是全面的。我的意思是，我認為——我知道這聽起來有點像紙上談兵的答案，但當我們仔細研究它時，我會說這是我可以向你解釋的最好方式。我沒有指出哪個具體領域表明，我們在這方面做得比其他地方好得多。我認為這只是全面的。所以對我們來說，這感覺很好。我認為我們覺得我們的價值主張和我們的流程正在發揮作用。

On the sustainability of the 2%. We try to take a disciplined approach, as I mentioned, to this and work with share that we thought could be stable for us. So I think that particular piece of it, we have optimism about our ability to keep it.

關於2%的可持續性。正如我所提到的，我們嘗試採取嚴格的方法來解決這個問題，並與我們認為對我們來說穩定的份額合作。所以我認為，我們對保留它的能力持樂觀態度。

As it relates to sustainability of a 7% growth rate. I won't necessarily comment on that. I mean it's a very competitive market. We like the trend here, and it's a trend over a longer period of time. So I think it's showing up as not just a onetime situation, but don't necessarily assume that we can keep up at 7% going forward.

因為它關係到 7% 成長率的可持續性。我不一定對此發表評論。我的意思是這是一個競爭非常激烈的市場。我們喜歡這裡的趨勢，而且這是一個較長時期的趨勢。所以我認為這不僅僅是一次性的情況，但不一定假設我們可以繼續保持 7% 的水平。

Helpful. And then, I guess, just a follow-up question. And again, hopefully, this wasn't covered or I'm not asking you to repeat anything. But basic equipment, you have a little bit less exposure, some less exposure to DSOs maybe than some of your competitors. So I think you're a good look at kind of what the private practice dentist is doing from an office remodel, office expansion standpoint in that.

有幫助。然後，我想，這只是一個後續問題。再次，希望這沒有被涵蓋，或者我不會要求你重複任何事情。但是對於基本設備，您的暴露程度要少一些，可能比您的一些競爭對手少一些對 DSO 的暴露。所以我認為你從辦公室改造、辦公室擴建的角度很好地了解了私人執業牙醫正在做的事情。

And we know prices settled out in basic equipment, probably closer back down to flash levels over the next 12 months relative to some elevated pricing in the past 12 months. So just where kind of is that volume growth on the basic equipment side in the private practice channel? Do you think there's still expansions and remodelings going on? Do you expect that the basic equipment market to be closer to flattish, up or down a little? Just any color there would be helpful.

我們知道，基本設備的價格可能會在未來 12 個月內回落到閃現水平，而過去 12 個月的價格會有所上漲。那麼，私人診所通路中基本設備方面的銷售成長到底如何呢？您認為擴建和改造仍在進行嗎？您預期基礎設備市場將趨於持平、上漲還是下跌？任何顏色都會有幫助。

Yes. No, I think there's definitely opportunity here for sure in the private practice as well. It moderated in the quarter. But again, as we've mentioned before, 3-month looks are (inaudible) far. So we would probably want to look at it as we move forward at more I wouldn't say historical norms, but you may want to look at the core equipment market over time here as we move forward as flat to slightly up.

是的。不，我認為私人診所也肯定有機會。該季度有所放緩。但正如我們之前提到的，3 個月的外觀（聽不清楚）還很遙遠。因此，當我們向前邁進時，我們可能會想看看它，我不會說歷史標準，但你可能想看看隨著時間的推移，隨著我們從持平到小幅上漲，核心設備市場的情況。

Your next question comes from Allen Lutz with Bank of America.

您的下一個問題來自美國銀行的艾倫·魯茨 (Allen Lutz)。

Dental patient traffic trends have been all over the place over the past 6 months or so. Can you speak to the trend that you observed during your fiscal 3Q? And any comments on the January exit rate and what you're seeing so far in February?

在過去 6 個月左右的時間裡，牙科患者的流量趨勢隨處可見。您能談談您在第三財季觀察到的趨勢嗎？對 1 月份的退出率以及您在 2 月份到目前為止所看到的情況有何評論？

Yes. Well, I guess I would say from our perspective, I mean I know there's been some movement up and down to some extent. But I would say generally, we view patient traffic as being pretty steady and favorable over the longer term here. And that's kind of our view, in terms of what we think happens as we move forward.

是的。好吧，我想我會說，從我們的角度來看，我的意思是我知道在某種程度上存在一些上下波動。但我想說的是，從長遠來看，我們認為患者流量相當穩定且有利。這就是我們對未來發展的看法。

Okay. Great. And then following up on a question around SG&A. I know it was up a little bit around strategic investments and software spend. Can you just speak to the duration of those investments? I'm not looking for any commentary on 2025, but just trying to understand when should we expect those spending trends to normalize a bit?

好的。偉大的。然後跟進有關 SG&A 的問題。我知道戰略投資和軟體支出略有上升。您能談談這些投資的期限嗎？我並不是在尋找 2025 年的任何評論，只是想了解我們何時應該期望這些支出趨勢稍微正常化？

Yes. I think for the portion of it that was related to some of those big distribution investments we made this year, those kind of have normalized here in Q4. So we'll see those kind of step down, but we continue to invest in our software portfolio. Those will be more sustaining as that team continues to work on those product feature sets. And some of that's capital so that expense. And so that will be more sustaining in our business, that part of the portfolio grows. So you will see a bit of a step down here in Q4 going forward, related really to those warehouse expansions.

是的。我認為，與我們今年進行的一些大型分銷投資相關的部分，在第四季度已經正常化。因此，我們會看到這種做法的減少，但我們會繼續投資於我們的軟體產品組合。隨著團隊繼續致力於這些產品功能集，這些將更具永續性。其中一些是資本，因此費用。因此，這部分投資組合將持續成長，從而使我們的業務更具可持續性。因此，您將在第四季度看到一些下降，這與倉庫擴張密切相關。

Your next question comes from Justin Lin with William Blair.

你的下一個問題來自賈斯汀·林和威廉·布萊爾。

First, just on the equipment side. What are you seeing in terms of pricing headwinds on the intraoral scanner side? Your competitor has talked about that for a while. So just curious to see how that dynamic plays at your dental equipment business.

首先，僅在設備方面。您認為口腔內掃描儀方面的定價不利因素是什麼？你的競爭對手已經談論這個話題有一段時間了。所以我很想知道這種動態如何在您的牙科設備業務中發揮作用。

Yes. We've -- I think was talking a bit about over the past number of quarters, the pricing pressure in those categories. I think we're starting to see some stabilization there. We're starting to sort of lap it. It might have another quarter or 2 of that headwind, but it's certainly seems to be stabilizing from what we see in our data on those high-tech categories.

是的。我認為我們在過去的幾個季度中討論了這些類別的定價壓力。我認為我們開始看到那裡的一些穩定性。我們開始嘗試一下。它可能還會面臨四分之一或二分之一的阻力，但從我們在這些高科技類別的數據中看到的情況來看，它似乎正在穩定下來。

Got it. And value-added services on the Dental side specifically, about flat year-over-year. Can you talk about what drove that? It seems a little wide compared to how that business had done historically in the past, call it, 6 quarters?

知道了。特別是牙科方面的加值服務，與去年同期持平。您能談談是什麼推動了這一點嗎？與該業務過去的表現相比，這似乎有點寬泛，稱之為 6 個季度？

Yes. So just to remind you that those -- that category encompasses kind of a variety of the services we provide our customers, including our software portfolio, our tech service repair portfolio. There can be some seasonality and puts and takes within our tech service business and those software businesses quarter-to-quarter. So like you said, we were kind of flattish here this quarter for that portfolio. But I think we'd say that those -- 1 quarter over the long term, we still expect that part of our business to grow faster than the overall as we continue to invest there.

是的。因此，我想提醒您的是，該類別涵蓋了我們為客戶提供的各種服務，包括我們的軟體產品組合、我們的技術服務維修產品組合。我們的技術服務業務和軟體業務每季可能存在一些季節性和波動。正如您所說，本季我們的投資組合表現平平。但我認為我們會說，從長遠來看，我們仍然預計，隨著我們繼續在那裡投資，我們的部分業務將比整體業務增長得更快。

Yes, I think that would be an important category to look at, again, like many of our categories, but that's an important one to look at over longer periods of time.

是的，我認為這將是一個值得關注的重要類別，就像我們的許多類別一樣，但這是一個需要長期關注的重要類別。

Your next question comes from Kevin Caliendo with UBS.

您的下一個問題來自瑞銀集團的 Kevin Caliendo。

I do want to talk a little bit about 2025. And while I'm not asking for specific guidance, I just want to think about -- when we think about headwinds and tailwinds as we bridge to '25, the things that you can control in terms of investment spend and capital deployment, should we think about those as being incrementally a headwind, a tailwind in terms of investment spend? Or the way you deploy capital this year was a little bit more aggressive than historical in terms of share buybacks. Just thinking about the things that you can control, what might be incrementally positive or negative to earnings growth for next year versus what we saw in fiscal '24?

我確實想談談 2025 年。雖然我不是在尋求具體指導，但我只是想想想，當我們考慮到 25 世紀的逆風和順風時，你可以控制哪些事情就投資支出和資本配置而言，我們是否應該將其視為投資支出的逆風或順風？或者說，今年的資本配置方式在股票回購上比歷史上更激進一些。想想你可以控制的事情，與我們在 24 財年看到的情況相比，明年的獲利成長可能會出現哪些正面或負面的增量？

Well, I think I'll start, and Don can chime in. Specifically on the share buybacks, you're right. We have returned a lot more capital to shareholders this year. And as a result of that, there will be a share count tailwind going into Q4 here and into fiscal '25 that will help us from an EPS standpoint.

好吧，我想我會開始，唐可以插話。特別是在股票回購方面，你是對的。今年我們向股東返還了更多的資本。因此，第四季和 25 財年的股票數量將出現順風，從每股盈餘的角度來看，這將有助於我們。

So that will certainly be a tailwind going into next year for some other capital expenses we've had this year. We have had an elevated amount of CapEx this year. As we get into our budgeting cycle this year, we're going to be evaluating what the right level is like we always do. It might step down a bit going into next year as we lap some of those investments made this year. But I still think we've got some really good investment opportunities internally that we want to fund, and we've got the balance sheet to do so. And then maybe, Don?

因此，對於我們今年的其他一些資​​本支出來說，這肯定會成為明年的順風車。今年我們的資本支出增加。當我們今年進入預算週期時，我們將像往常一樣評估正確的水平。進入明年，隨著我們放棄今年的一些投資，它可能會下降。但我仍然認為我們內部有一些非常好的投資機會，我們希望為這些機會提供資金，而且我們也有資產負債表可以這樣做。那也許，唐？

Yes, I mean I think Kevin brought up a good point at the end there. I mean it is elevated. Some of the particular projects that we've talked through here will go away. But we do and are finding more and more opportunities internally that are good investment value for us in terms of use of our capital. So I would expect us to continue to be aggressive to find all the internal projects we can that are going to benefit us in the future.

是的，我的意思是我認為凱文最後提出了一個很好的觀點。我的意思是它升高了。我們在這裡討論過的一些特定項目將會消失。但我們確實並且正在內部尋找越來越多的機會，這些機會對我們的資本使用而言具有良好的投資價值。因此，我希望我們能夠繼續積極尋找所有能夠在未來使我們受益的內部專案。

And if I can ask a quick follow-up on dental equipment. There's, I think, some of the messaging we heard from your competitor yesterday was that maybe demand was going to come back a little bit in the second half of calendar '24. And I guess what -- I'm not asking you for any of that, but do you think demand is elastic based on price where the prices have come down enough where now there's increased demand? Or was it purely macro interest rates and now that, that's a new normal, like things can recover? I'm just interested in your take on sort of what's driven equipment, both digital and core demand in either category, whether it's price, economics, interest rates or the like?

我是否可以要求快速跟進牙科設備。我認為，我們昨天從你們的競爭對手那裡聽到的一些訊息是，需求可能會在 24 年下半年有所回升。我猜想——我不是問你這些，但你認為需求是基於價格的彈性嗎？在價格已經下降足夠多而現在需求增加的情況下？或者純粹是宏觀利率，現在這是一種新常態，就像事情可以復甦一樣？我只是對您對驅動設備的看法感興趣，無論是價格、經濟、利率還是類似的數位和核心需求？

Yes. So we -- I would say both of those factors have factored in pretty significantly to what's happening here in the equipment market. I think it's also why it's been a little difficult to call exactly where we're going. I think, again, as we move into -- for us, as we move into our fiscal 2025, which starts in May, I think we feel like early in the year, we may not see it. But to your point, later in the year, I think we could see -- we will see some improvement. One of the factors here, too, is just we're a little bit tied to the innovation cycles and innovation. And we need that as well to help that dynamic. So as we move into the latter part of the calendar year, maybe the latter part of our fiscal year, we hope that's part of the equation that we think will drive that.

是的。因此，我想說，這兩個因素對設備市場發生的情況都產生了相當大的影響。我認為這也是為什麼很難準確地確定我們要去的地方。我再次認為，對我們來說，當我們進入 5 月開始的 2025 財年時，我認為我們感覺在今年早些時候，我們可能看不到這一點。但就你的觀點而言，在今年晚些時候，我認為我們可以看到——我們會看到一些改進。這裡的因素之一也是我們與創新週期和創新有一點連結。我們也需要它來幫助這種動態。因此，當我們進入日曆年的下半年，也許是我們財政年度的下半年時，我們希望這是我們認為將推動這一目標的方程式的一部分。

Your next question comes from Elizabeth Anderson with Evercore.

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

I was wondering if you could talk about the contribution of private label products in the quarter, particularly in Dental. And then as sort of a follow-on, how do you think about the opportunities within specialty? Is that something that you should continue -- that you have interest in sort of expanding a presence in that market? Obviously, you've seen very much above-market growth without that. So just be curious how you're thinking about that at this point in time.

我想知道您是否可以談談自有品牌產品在本季度的貢獻，特別是在牙科領域。接下來，您如何看待專業領域的機會？這是您應該繼續做的事情嗎？您有興趣擴大在該市場的業務嗎？顯然，如果沒有這一點，您已經看到了遠高於市場的成長。因此，請好奇您此時是如何思考這個問題的。

Yes. So on the private label side, Elizabeth, I'd say without giving the specific number, but that continues to be an area of focus for the team, especially as we've expanded some of the portfolio offerings in our private label. We've seen positive growth there, and we continue to see good adoption by our customers. And it's a big part of, I think, how we're growing the way we are. So I think that continues to be a real big focus for us and is paying some dividends in the market. And then...

是的。因此，在自有品牌方面，伊莉莎白，我想說沒有給出具體數字，但這仍然是團隊關注的一個領域，特別是當我們擴大了自有品牌中的一些產品組合時。我們在那裡看到了積極的成長，我們繼續看到客戶的良好採用。我認為，這是我們如何發展的一個重要組成部分。因此，我認為這仍然是我們真正關注的焦點，並且正在為市場帶來一些紅利。進而...

Yes, I think on the specialty side, that's obviously a segment of the market that we're not significantly in. So without kind of giving away anything on our strategy, I mean, certainly, over time, love to be in that area. It would need to be the right entry point, the right kind of transaction. So hard to say as we move forward whether that's something that will be part of our portfolio in the future.

是的，我認為在專業方面，這顯然是我們沒有重點關注的市場部分。因此，在不放棄我們策略的任何內容的情況下，我的意思是，隨著時間的推移，我們肯定會喜歡進入該領域。它需要是正確的切入點、正確的交易類型。隨著我們的前進，很難說這是否會成為我們未來產品組合的一部分。

Got it. And then if we just think about the 4Q cadence, can you remind us of the impact that you guys saw in terms of incentive comp from sort of the outperformance that you had in equipment in the fourth quarter of last year?

知道了。然後，如果我們只考慮第四季度的節奏，您能否提醒我們，你們從去年第四季的設備表現中看到的激勵補償方面的影響？

Yes. I mean I think what I may point you back to, Elizabeth, is kind of like to -- I think to Jason's question, I mean we -- even with that comp last year, we still saw or typically, we see some good leverage in the fourth quarter. I expect to see that again this year. There are a number of puts and takes in the OpEx arena here this fourth quarter as well.

是的。我的意思是，我想我可能會指出，伊麗莎白，有點像- 我認為傑森的問題，我的意思是我們- 即使去年有這樣的比較，我們仍然看到或通常，我們看到一些很好的槓桿作用在第四季。我希望今年能再次看到這一點。今年第四季度，營運支出領域也出現了許多變化。

So -- and to say that we expect to see some moderating spend in the fourth quarter on some of those initiatives we talked about. And again, I see a step down as a percent of sales from where we were in Q3.

因此，我們預計第四季度我們談到的一些舉措的支出將會放緩。再次，我認為銷售額的百分比較第三季有所下降。

Our last question today comes from Nathan Rich with Goldman Sachs.

我們今天的最後一個問題來自高盛的內森·里奇。

Great. Just maybe a couple of clarifications at the end. I think I wanted to go back to the revised outlook for equipment. And maybe just how that breaks down between core and digital. I understand core was softer in the quarter. Is that really what drove the revision to the outlook? And the competitor yesterday, I think, talked about the kind of robust kind of investment plans from practices on the more traditional side. So if that's what's driving your revised outlook, just would be curious to get your view there.

偉大的。最後可能只是做一些澄清。我想我想回到修改過的裝備前景。也許這就是核心和數字之間的差異。據我了解，本季核心業務較為疲軟。這真的是推動前景修正的原因嗎？我認為昨天的競爭對手談到了來自更傳統方面的實踐的那種穩健的投資計劃。因此，如果這就是您修改前景的原因，我很想知道您的看法。

Yes. I think it's fair, Nathan. And obviously, we're talking about a slightly different timeline, I think, than our competitor is. But as we kind of narrow in here on the last couple of months of our fiscal year, and we're looking at that whole environment. We certainly can see core was a bit softer here in Q3. And as we consider Q4, we built that, we built in for the next couple of months here.

是的。我認為這是公平的，內森。顯然，我認為我們正在談論的時間表與我們的競爭對手略有不同。但當我們在本財年的最後幾個月縮小範圍時，我們正在關注整個環境。我們當然可以看到第三季的核心有點軟。當我們考慮第四季度時，我們建立了這個，我們在這裡建立了接下來的幾個月。

Okay. And then, Kevin, I wonder if you could kind of give us a rough sense of maybe how the investment spend has been split between the Dental and Animal Health segments versus what might be in corporate. I guess it sounds like all else equal, kind of would expect a step up in margins as a result of that spend stepping down. So just curious where we should see that show up in the P&L?

好的。然後，凱文，我想知道您能否讓我們大致了解牙科和動物保健領域的投資支出與企業的投資支出是如何分配的。我想這聽起來就像其他條件一樣，由於支出減少，利潤率會提高。所以只是好奇我們應該在損益表中看到它出現在哪裡？

Yes, I'd say in terms of the distribution investments we made, that's fairly split. There was a significant one on Animal Health and on Dental. So that's really split. The software investments we're making at this point are more focused on the Dental portfolio. So that's where -- that one is going to run a little bit longer and -- than Animal Health.

是的，我想說，就我們所做的分銷投資而言，這是相當分散的。其中一項重要內容涉及動物健康和牙科。所以這確實是分裂的。我們目前所做的軟體投資更側重於牙科產品組合。因此，這就是——該項目的運行時間會比動物健康更長一些。

Okay. Well, that's -- I think that's all our questions. So we're going to sign off. And thank you all for the time today and interest in Patterson Companies, and we'll talk to you next quarter.

好的。嗯，我想這就是我們所有的問題。所以我們要簽了。感謝大家今天抽出寶貴的時間以及對帕特森公司的興趣，我們將在下個季度與您交談。

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

今天的電話會議到此結束。感謝您的參與。您現在可以斷開連線。