Cantel Medical (CMD) 29 Nov 182019 Q1 Earnings call transcript

Greetings, and welcome to the Cantel Medical Corp First Quarter and Fiscal Year 2019 Earnings Conference Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder, this conference is being recorded. It is now my pleasure to introduce your host for today’s call, Milicent Brooks. you. Thank

begin. may You

Chief Corporate announcing Capone, SVP, and Development; Diker, of everyone. Jorgen Chairman Executive for first EVP the Accounting financial and Corporate issued company fiscal and Rob, Yellin, Brian morning, we quarter this Hansen, today’s have Chief results and Clifford, Earlier Peter the Chuck of and year Officer; a Officer; good and you, Seth On EVP, morning, call, President Financial Controller Chief Thank Strategy the Officer. press XXXX. release the Board;

complement have call. on In a Investor addition, we posted in website presentation supplemental Relations found presentation be to under Presentations. today’s can section the This Cantel’s

All begin, remind and and like actual to risks Exchange results may I the conference uncertainties, only everyone including, we materially statements without call the and detailed with would Commission. filings statements forward-looking company’s forward-looking Such in the are from limitation, involve this Before and statements. Securities projected. non-GAAP risks reports that to may Reconciliations differ contain comparable making provided the and non-GAAP financial earnings debt. company share measurement, on financial non-GAAP these today's financial in non-GAAP today’s directly release. call EBITDA, to per those also from profit, earnings references non-GAAP will net gross the diluted are operations, most of measures income be GAAP The predictions measurements

I Filtration; segment CEO. to formally reportable names key Water year Disposables. Medical, fiscal segment introduce B. and and quarter renamed Endoscopy; follows, you, XXXX better first The we pleased that, the President in Jorgen Healthcare Sciences customers our Hansen, formerly to effective markets align as and Dental, formally With they addition, with our we Purification am In are Life new so serve.

I Peter will results. Thank and opening quarter followed welcome, you comments, some everyone. by brief XXXX take through fiscal who first will start our you, with off Millicent,

of X%, the quarter. up growth. grew with Q&A. sales open Overall this X.X% results call We pleased reported with will our net organic for we Finally, we're

driven of segment growth and in capital led businesses, XX.X%. growth decrease to all that was REVOX down new Total installed being shipments. with pushed grew site the half revenue Medical the and technology businesses. growth placements leading of of U.S. equipment key of cycle quarter were particularly the order of capital, equipment is progress water a driven device science softness normal XX,XXX high-purity specifically quarter accretive quarter, previously we double-digit in organic strong the largely for our increased interest large quarter this the medical strong, XX.X%. In capital liter our sales. capital which XX.X% year saw equipment in offering at life medical our customers modest water quarter across the grew Minnesota. levels. giving the helped the saw this broadening XX.X% by Orders and to by and while regions and moving guided. approach. margin with manufacturers, science encouraged in due this by reported our by We're of of sterilization dental Sciences as recurring timing Capital first our business our second the Our We growth chamber we a equipment for and of growth market dual related recurring life Life revenue the the to revenue strategy sales X.X% by U.S. was normalized several confidence returning source into medical us AR soft by one the to for in

was due the I'll X.X% call. decreased later our with decline was X.X%. performance – in Solutions Environmental which in than inventory discuss business acquired our our at of channel, lower underlying by organic Dental digits the This Finally, adjustments us distributor mid-single we products. out Stericycle's demand in are while the expected, giving the our confidence in Controlled Revenue sales door within for Environmental partners our business segment to and

have chemistry supply market key product this shortage we the the to alternate softer care temporary for experienced addition, line contributed the quarter. in that In performance has

with in are mid-single and profile a at XX%. EMEA that EMEA International increased XX% dental up approximately perspective, coming growing our X%, both APAC We Germany. international quarters. with geographic the Germany. Aexis confident and Medical strong The organic growth sales results of X.X% grew will and With I’ll discuss approximately Group that, the impact acquisitions by results. performance sales the in handover APAC and total sales by in to excellent China year. to grew turn digit the organically Peter From by with led in X% increasing X.X% U.S. BHT of Belgium versus in to international financial include X% the prior

morning, good everyone. and John, Thanks,

everyone to better in the elements increased sales X.X%, X.X% a to at segments and organic Before sales The of gross basis. renaming take walk wanted the that in we remind and through year-over-year a dental we basis, ’XX. in XQ to XX.X% were, top business at amount XQ year and XX from came GAAP the few versus 'XX points currency did Sciences in by current year walk M&A On came X.X%. basis on for consolidated margins was versus quarter, align contracted I a line XQ prior results. the XX.X%, FX moments small a Gross net both to the constant X.X%, net consolidated headwind financial margins X% a we 'XX our customers business serve, year markets that Life besides segment results, our to segment and our with indicators biological in recast of the prior

X.X%. points prior although of The line core our profit year-over-year. costs, operating year-over-year XQ well Our the contracted acquired in by expenses quarter, were are certain of points driving intangible margins in XX.X% the Operating by year. strategic items XX taken $XX.X adjusted GAAP for off profit year-over-year. recast for our the million op The increased announced contributed Note plan. livable of as a a the primary acquisitions assets business, water of livable the to actions basis was of XX.X% part or few specialty that was GAAP this in the and dilution written our overall impact previously wage decreased from or million investment compared year-over-year. relauch. amortization there actions, for wage operationally XXX REVOX, Operating The the as to Note, year-over-year costs our reinvestment gross basis decrease roughly ERP $X.X in projects, balance $X.X we expenses with non-GAAP when dilution service XQ’XX our drivers contracted to continued quarter, million. in APAC were purposeful GAAP of accelerated ’XX disposition as our

on While year-over-year previously increase announced X.X% livable project. non-GAAP ERP REVOX, profit wage million. it op to $XX.X key Again basis, in reinvestment a and drivers continued decreased were

tax production or taxes the by deduction effective rate tax approximately associated the This change drivers in our XX.X%. statutory foreign for were partially items, expense, Our domestic the and impact compared at discrete Key state of Federal rate loss GAAP benefit the the in prior excess of the rate -- effective year offset stock-based DPAD. the was compensation benefits came $X.X allowance in as of of quarter quarter. to our million provided tax tax the a XX% rate with reductions

for as year-over-year rate loss partially compared XX.X%. the key at by tax federal of effective non-GAAP year rate the a approximately the EPS to This statutory well drivers the state $X.XX. quarter taxes prior The to the came impact XX% rate deduction. benefit quarter. change in and decreased were quarter, was provided of XX% of of the offset $X for the million EPS during Our DPAD GAAP

rate dilution, and of op the $X.X related a prior In non-recurring year liability throughout to million, interest this which year-over-year. addition discussed to expense decrease higher commentary the contingent earlier was of GAAP profit extinguishment

to at XX $XXX.X year-over-year came EBITDAS Cash Our XQ up last X.X% non-GAAP the was the $XX.X up year-over-year months million, a year-over-year. in adjusted EBITDAS our XQ million, for quarter, in X.X% came EBITDAS EPS operations, cash adjusted $X.XX. for operations $XX.X flow up from from Adjusted increased million, X.X% at while year-over-year. X.X%

to was $XXX.X quarter, year-over-year for Now some into segment insight XX.X% the medical Organic XX.X%. grew to segment provide at results, our for strong million. the sales

profit op profit $XX.X strong increased to to while very million non-GAAP million XX.X% op $XX.X our GAAP providing XX.X% increase leverage. Our

For declined X.X% in business organic the our $XX.X life by Note our sciences driven even we segment life for ’XX disposition XQ of to quarter. the positive quarter, during decline timing water growth million, sales X.X% in do our decreased return with science and medical to order year-over-year systems. specialty business to the expect clinic new

million. $X.X XX%. million backlog ex-incremental remains XX.X% decreased year the increasing non-GAAP XX% profit op decreased to profit decreased quarter, our stable from op in end. investment profit REVOX op GAAP $X.X the modestly our while to Lastly non-GAAP No

decreased million was profit is sales million. For partners XX.X% recent GAAP year-over-year $X.X decreased dental negative op quarter to our op segment to that were pulled our of our during understanding X.X% back while profit and channel many FTC to for on the $XX.X impacted X.X%. by inventory their rulings million. the it decreased quarter. the Note Organic non-GAAP [ph] $X.X XX.X%

million, sales our quarter XX.X%. XX.X% segment profit $X.X profit op year-over-year while expanded our for non-GAAP dialysis to GAAP our For op X.X% third decreased decreased

details. balance like I’d a few Now hit sheet liquidity and to

gross and the a $XX million remains order $XXX.X We under outstanding equivalents, quarter significant capital, revolving with with facility. quarter borrowings our Our million balance million $XXX.X ended credit debt at with the capacity. sheet in strong the cash ended in cash no

net Capital of and $XX.X ERP was purchase $XX was million due $XXX.X the net Our to million debt project. and Approximately new $X.XX. facility million. was expenditures due EBITDAS in were million Minneapolis to was $X a debt-to-adjusted our

CapEx implementation next to will remain the project. quarters support our we’ve signaled several ERP elevated As

be remarks. will the back I a As for to we now XX-Q hand call Jorgen closing reminder our tomorrow. filing will

of you, this trajectory the our business positive in pleased Thank markets serve. and we Overall strong we’re positions quarter, our competitive Peter. with the performance our

large and have drive launch Most customer new in transformation by -- the our in Portable generation division products. life several our prospective In to by lot of a platform We've new proprietary In America profits and also strategic installed the five-year EON, products, science sales E supported year our to M&A and our chemistry. launch [indiscernible] medical order spring launched double of AER plan our operating positive AER BHT expansion, recently the excellent through fiscal we adoption series XXXX continue segment North feature notably pipeline. RO a our it we quarter initiated our requisite launched where seen PA received and model. units since in proprietary we we next the market of first our We with to five feedback. which

compliant be for the EPA we new to This Amalgam interest are dental by with by water product ruling recent Separator management. our strong the dental encouraged waste would on In enable customers. dental Syclone our addition offices

in important At of with REVOX and expands a strategy bring we customers strategy. seeking environmental with leading start prevention portfolio line as as our leading strategically R&D life of and division company, circle life of we continue our testing year broad sterilization to technologies portfolio sterilization especially platform the acquisition provider business, can services. provider this combination Solutions segment. monitoring customers closed fiscal In REVOX Finally through protection Environmental our science the offering our positioning the we solutions our of Stericycle's platform. our we of this to science to the Their are disinfection complete become in product increased this key infection civil insurance certification decontamination Controlled such a across and services we investments our lines to solution invest our in

As purity our high of on strategy divestiture a life to Burlington margin in science accretive the Canada and water in of we focus markets last completed business -- this in quarter. based our successfully growing consequence just

expect we surgical will entered our leader definitive Suffixed Finally for setup dental on Italian purchase conditions expansion of a focus a and year growth. additional as M&A a platform and our contamination February market business. to This is our activity five remain by to our efficiency near-term in the beginning in organic prevention. to an closing acquisition drive to and market highly support dental encouraged Omnia operating close XXXX. this to the consumable our transaction primarily cautiously acquired transforming products based optimistic serve drive opportunities. we We are with pillar scale cross S.p.A, plan procedure well customary with as room European strategic into key A model agreement pipeline about in in as

Information project implementation Technology at our of modernizing Hence, of last art state to FY As through major year. drive around are go quarter per of call, ERP the and investments we EPS fiscal to third in the this The discussed this toward that important 'XX share. platform making company these we XQ'XX X the in processes are objective. the centered is impact investments this of in of scheduled global $X.XX live beginning was to

to include several sites announced, work training acquired customer for for to with we We productive reaffirming addition a previously year and more foot anticipated $X.XX. life consolidate science of and and will us serve X%. announced of guidance in headquarters February. a experience anticipate expect acquisition XXX,XXX X.X% yet building our from organic disposition In GAAP as $X.XX new and $X.XX medical will We but the X.X% our of businesses, to product which fiscal and headwind FY'XX the and X.X% $X.XX close to Minnesota non-GAAP Omnia divisional of not to that growth -- in we include And environment, of total This year we X% of enable does FX center. growth X.X%. We're XXXX. acquisition of not revenue square a allows reported closed to X.X% development will EPS a fiscal anticipated EPS to

and Before some years division. the Bill October, to experience President is I with In recent changes. XX General like of proven Haydon was a Senior medical as Medical I leadership leader would Cantel's promoted industry. Bill Manager announce in of close, Vice

and Chief Lily [ph] various its XX first assurance over leading over from Vice Danoc Science reporting was of Danoc affairs marquee to In as quality Chief leader years in in November, with experience such in and promoted companies. addition, and of also Brian Officer. October. Cantel Life Corporate Brian R&D, new is Technology Controller joined Medical In financial development, Stanford Officer accomplished and companies Accounting Capone experience and years accounting Device Senior President, product as Baxter. has XX regulatory

Helms, all with the retired after X,XXX over and for serving In team President Cantel, Operations We Executive to our Paul Vice loyal years to Affairs Regulatory I and thank and valuable Smith, Vice addition, the In XX achievements their would them this members and President, Craig contributions company. thank for them Quality both and efforts wish best. like hardworking the closing, quarter.

lives. I quarter on you takes great we speaking mitigate our you Thank and company forward in help for in are to mission now to take to entire provide call Our pride ready outcomes safety Rob, improve to listening. infections, patient solutions and look ultimately second questions. earnings with February. save our

Thank we'll [Operator question. proceed you. Keusch Our Larry comes At James. this Please your Raymond time, session. be Instructions] first with with conducting a question-and-answer from question

Thanks. Good morning, everyone.

Good morning.

Good you called you've how business bit durability to about begin about little the U.S. out AER normalize? start Maybe capital Jorgen talking seeing the of thinking can that a with that That morning. now. you're you're

Yeah.

outlook business. we USA have we now we a above across was overall, quarter of that growth I the AER of that. to good positive will digit business think though So believe quarter both pipeline getting this that field from year, the on positive capital and for year trending The remains cornerstone But we was have which sort orders. of feedback very where and our significantly will levels is positive regular overall, the mid-single on the obviously have, we a have the even and current it's big we're this sales, back for

that endo XX% most we context there, of a month. sort and the goes what the month some typically than on add out comes stocks, in sort of me don’t make Let long side, ship same of Larry. have backlog the same of the We more typically we and so

quite That as U.S. of to year were especially said, a first we’ve a but was our XXX orders not sort is the about to last level past visibility our that thought very, sort we sort quarter for implies quarter. on turnaround of the from being very a participation. it limited. we’re and So median meaningful of level close pertinent and market in and the to were that That which strong, our year XXX

you that’s helpful. guys. ones Okay other Two for

data the So issues, given end you always demand. of on caught I a I destocking you if you how was kind have correctly do indicated that visibility back think this user that up the can a the of and with I to to not under perhaps guess some would on tracing that, then impression again rates out. distributor where I bit think single-digit lags along get Jorgen, quarters expect you growth touch couple I

then I one organic So growth other your and how guidance do maintain have one? you

sort coming a actual back business. shows we So, our tracings of in a resolved, will of this sales but that in exactly those call on up are mid-single-digit mentioned chemistry of has in QX vendors. Like get playing my and as supply will quarter. upside. in to growth getting the out it’s dental into care. to growth That’s One did anticipate very the to get sell I one do that U.S. which quarter, do item But now tracing you our impacted of we for the -- quarter alternate which certainly normal have. the particular the positive products now we good and our had certainly out impact this growth the hard is levels. that little the comments, some do with it said, mode that we back issues key we sort And of some be quarter, door into We catch

the the of really normalized your other terms out look it’s anticipate carrying anticipated is forward through more businesses. I do levels and and feel now, in two we question we it’s the growth stronger little than the mix different our In of we we correct, that terms growth talk as if a when about in we company much coming understand overall in Larry, the of growth -- medical overall

previously net-net back back we So into getting into that range the guided. have

and last… Okay

Larry the besides the I'm didn’t little see market our probably down. place as just going in impact finds DSO moved there the to follow up revenue, bit same behavior we that well, on a

to do were trying think channel some So I of this recover some partners our cash quarter.

and destocking and dental the of to life Peter, top and perfect, the what you, order and sort your ship have impact you about attempted have of Okay delayed and both thought sort you the in product you last distributor kind quantify is this may the the that impacted science maybe from the line? that as one for guys to inability for of

can answer think we’re we out here outs we in as I is, Yeah, about see, little on slower here’s some look against push our expectations that backlog feel of to feel but at I the the would the year said we’ve XQ when projects own logical as what water, sciences, candidly a life that of from with modeling seeing start we gotten was, water start bit to we about business some backlog had got or we’ve bit medical, a in think the with at from better aligned first off the we’ve first half look dental very for XQ, the I our or we generally the half of a candidly and which good year first quarter. enough

side. having like sight in will feel X upon thought based We of time probably we with again just get terms half a normalized medical there feel make line one year confident what the there good the pretty look first that how Mon is the this think there, more in reality we bit IDX: we medical in Mon like. pretty of the to IDX: we a year, of the to life a XXXX that Dec is differently. hit ] dental I probably quarter bit probably backlog see can I strength a ] is science,[Author the don’t start, and see Dec a we offsetting little dental think at up get we but We first normal XX:XX:XX X second XX:XX:XX think half the and in more XXXX second I at return likely on quarter,[Author more

it. Thanks Appreciate great. Okay, guys.

question. Mike from Please with [Operator and next question comes Instructions] Company. with Needham your Matson Our proceed

Good thanks business. to wanted for I I start questions. guess sciences taking morning, the life my with

orders. in-source So order you the it its that mentioned just really is discussed business, one some was that or the to impact so know timing, your of customers purely and I is about there timing any from some trying at of bigger

to From going that internally, we own was very comp. tough view knew quarter first our be

here Our that drop-off that most in one last are to the of to Cantel’s fourth going water less the watermark a of before quarter key like happen we for larger larger agreements, were we to so the Again was ship pressure two to that first on held Really of our saw and the we the business high to projects We the in disposition likely visibility backlog. was year-end from of anticipate year quarter that or of already here we quarter early moved due our those second to going on orders much and the this up. in built December. specially year the OEMs a that couple that was ship there one prior knew and January. going we business

be do in a to you quarter would imply -- and pushed the -- presentation expect year, does the so to the the you half being second is based second I just second mean be order in the Okay, it will half in year. it the second large big water be of that that this the this mentions stronger, that stronger that should the what does like recovery half said, but order is more coming fiscal of on sounds mean

to the as my division we would see science life second know quarter. expect I in positive growth You in mentioned the comments,

already said if made you investments mean late. you out little on back the earlier kind out? all et I like possible cetera. stuff I you down were year-over-year, and things ERP Okay, REVOX that me that and the back and this then in margin have you a core operating to still if is margins the But call, quantify forgive operating underlying it got to in if of

flat. Relatively

finally ask the all have question. tariff And right. obligatory to then Okay, just

some you’re from So significant don’t year. but any earlier on this you’ve you were to XX% to to wanted make maybe next and seeing addressed I if just that they to tariffs calls that I the not sure expect think impact go there

I don’t material bit starting to that than a are material have more it's first in yet, quarters. Our would view the say see last of I inflation for we think we but the seen time couple

obviously it is we’re So closely. that to it's we’re internally the commercial do for what And actions -- we in even back half as watching might and debating this year.

Yes, and it's really would anticipation from tariffs strong coming of market orders to incredibly we things an because I team getting in some get in a pulled little in in really and had worse. of quarter of strong different, our China trying say these in coming sales was ahead

think evaluating sold see are we do we to is goods as capital precious that’s equipment, [indiscernible] the are everywhere materials to okay are more that need there starting are we’re mentioned What sourcing So and and comment I in more there. for to action any Peter across expensive particularly we and we getting on.

all have. That’s I Okay, Thank you. all right.

Please next is Mitra Sidoti with proceed with Company. question. Ramgopal question Our your and from

good Yes, morning.

XXXX. you if you that investments of should was fiscal into for expect this the believe of I just I year some quarter, $X.XX or First, it mentioned of terms in go $X.XX for and first still infrastructure wondering about

think I on pretty move both timing still views No, our cost in on about and European good we Minneapolis. facility

an the traction in on just the of you if I making you’re was REVOX, placement and us given starting terms wondering give you’re Okay, to thanks. the update see? And could investments

XX,XXX Mitra, feedback solution vendors. running some And is working know, run that of REVOX this side for that sterilization order we manufacturing we in inline some larger on several milestone in back much which you will year. customer to an in was mentioned life I for the we allow call predominantly also one to launch prototype systems lots systems key for liter quarter in is as before our we actually have this we that own sort our in testing that Yes, our batches we're And and than targeted equipment used in see device. continue think anticipate Minneapolis us the half major and that of transformational of to installed positive decision ship chamber as sterilization the science

So also long bad good for on this lot and the tremendous progress, medical we business. in there's believe cycle a That's life of It is is The technology business. a news. good a news science opportunity

Great. could side, Europe the if And Omnia the a going to to obviously was certainly lot, switching curious, very had the Europe. forward acquisition us you terms small expands a on and and presence focus dental prior that I in it strategy some color in of give on then This just you more there?

This Seth, thanks for the question. is

nice foundation used overall that leadership procedures. It's Dental organization to great disposable a moderate consumable with I with in products And, a European strong you and really great were very an resources. Dental had a its franchise both fairly own Omnia said, in historically think single right as be we've we help business had commercial acquisition, believe will with our organization use those acquisition good the portfolio of been limited a surgical and with build Dental that it franchise. us commercial brings

business franchise sales So the release and and or have we a it's we the around of talked dollars. in as a so about few $XX million in Europe a million small of

be potential it We forward for with be team Dental enthusiasm to the expect see with we going that to Cantel the commercial of selling Omnia franchise the portfolio bag team and good full the encouraged going and a and grower that's really we're globally. that's energy, the going forward going

to products on objectives international do to growth And conjunction very differences while with business, endoscopy concurrently, we've everything and us execution organic endoscopy for decided done in trajectory which and acquisition, first It success but plan the a our last now for afford was able years. in the Mitra, franchises. are a that aggressive And initiation modeling add in said on that leadership we we've maybe Europe that at XX our our but A, position with strategic and to and and business, building could this dental clear of through years similar Seth of the our we if just believe what in had to or there's kick-off we similar, you investments. all that go medical X back we else very three has to acquisition our focus in through had growth the market, medical in the over business

just your inflation think with I I life terms And compressing to material of one finally on higher that ability you'd of just reasons the think the in sciences Okay. able wondering reference to Thanks. be offset for side, of prices? the terms me, in margins

as question. of that good dental candidly really more business. of our Yeah, seen far inflation medical side the and more on a is so we've I mean

it's the been quarter. the been for the our REVOX, say with fact service side. on an pretty productivity And down we I'll a sciences when first on It's So dilution volume in adjust issue that side is acquisitions. coupled core of in the life meaningfully just saw the less less the you of product and really business,

guess mentioned an And the as medical and then in issue is of dental more you my side. Peter,

know, higher that offset if you ability the prices? again So have with I don't to to try

debating push frequently. that's distribution the easier medical increase and price of to that we we've side, on I obviously their some frequency And it's an on Historically, to look what price dental need the pushed internally challenging annual actions. obviously non-affiliated think more as side Yeah. and at on through always the obviously commercial and we're

report those through are year. as get and that right the in things we're further passionately on we again So to more now debating

little happened think to in quarter. bit course we've decide inflation to And next I to on action. or continues a either not more happen what the material the got see second

again taking questions. for Thanks Okay.

Thanks Mitra.

Raymond Larry from James. Please your question. with comes question next proceed Our Keusch with

I other two had Yes. ones. just

expand the You activity that, with or already REVOX discussions set in changing on of mentioned you quarter. Could was first to with a kind you that again any new different color what's provide could of that, there? customers

but U.S., device and for predominantly last in world. a the active been say customer quarters the would in business, we this I have it's customers manufacturers have that many universe, really companies are are those very quarter mean, concentrated of to I the several over the top and Well, the across with that operations this medical talking

at both this We proceeding Europe have systems first the we are and in installation. Actually with time. Asia in REVOX

-- business. quite global So this is it is a

long think, your I feedback you our this customers. we that get convert this is continue a positive I that add does new and can time. to It cycle, this selling to really take call, for technology need or is with reapply because very So to XXX(k)s

side flip that understand. reductions that there's cost benefits absolutely the technology, our of the customers due to lots of On

look in our can plan bullish that production in And Minnesota, also we keep cycle, how so on demonstrate customer. short workflow manufacturing demonstrate and now business, sterilization we larger will this being a have sterilization optimal equipment investing for we we and have we an actually side keep volume really

to come. more So

highly something like encouraged, We change or are implement transformations is REVOXs. but it to longer cycle a

And Okay. then I appreciate that color. is. last one me I the for guess

So X% you obviously to year. implies maintain guidance X% for the growth organic so that

think to around quarters. You did about Peter. just X.X% in But of half, the that some don't guide obviously to comments first you trying the first recognize the I quarter.

is half patterns way below order of guidance half take comps some and the would the some you the for et then second accelerate first to so of and year? the and half of And in the it the range given the be year-end that cetera, right first the back that,

too tightly of half to the a pretty the year. say would I to first Yeah. to quarterly what what Again, of we've we of year. half would forecast not I view. the be read the the think seen or I'm align much what trying for most first is, Again, careful seen get we've from into on of

Okay.

left out easy, what and half I would your guess. But figure just just et the second mean, you'd cetera, it again, year, own growth with have make here. look the like see QX So to I to the life better you our of to comps the in have to we're would be,

se. Yeah. I mean it's per

Thank Perfect. you. Okay.

of Ladies we've and the session. this today's And reached concludes the gentlemen, end conference. question-and-answer

participation. You at And for your time. this thank may disconnect your we you lines