Cantel Medical (CMD) 2 Mar 192019 Q2 Earnings call transcript

Greetings! Welcome to Cantel Medical Corp’s, Second Quarter and Fiscal Year 2019 Earnings Call. At this time all participants are in a listen-only mode. A brief question-and-answer session will follow the formal presentation. [Operator Instructions]. Please note this conference is being recorded. the to turn Brooks. now will conference Milicent over I Thank you Ms. now may begin. you Brooks,

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

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

call risks Before forward-looking those in Such statements. with we only Securities begin, uncertainties, would and the to from reports the I the Exchange differ may conference contain and statements company’s may All like risks involve remind materially projected. without this including, predictions results Commission. limitation, forward-looking and and detailed actual are filings that statements everyone,

you, from measurements, profit, forward-looking EBITDAS, information call our of Earnings earnings and to Presentation on will release. contained non-GAAP earnings With most Reconciliations making The is share non-GAAP B. company the diluted financial financial Additional per Supplemental Release. also income today’s and gross to in President non-GAAP provided net to be Hansen, in statements today’s operations, concerning non-GAAP that, references non-GAAP to these the measurements introduce measures financial Jorgen debt. and directly pleased are comparable CEO. GAAP I’m

our quarter comments, followed off start I XXXX take opening financial Milicent. by us brief And results. will you, Thank everyone. some will welcome, Peter second who through with

open Q&A. the up will for we Finally, call

net quarter, growth softer basis constant Total see by driven in X.X% are reported the Total back sales in was in by double-digit grew businesses. results by partly growth on recurring grew to approach. a moving Water decreased in Dental the source equipment our segment U.S., to acquisitions growth decrease a Orders placements, soft AER driven market. high-purity the in key of Sciences of of continued our revenue by the offset our This partners. were for health with a CES our double-digit to X.X% due North our the X.X% rates by down for dual quarter, currency in medical cyclical Hemodialysis growth We equipment levels, organic XX.X%, Medical of at We US up the organic by was due X.X%. in growth equipment our Sciences grew Life a growth. X.X%. in water an toward segment, sales customers business Dental with offset from revenue giving normalized mainly which the inventory X.X%, in partly capital was M&A by disposition and to of and sales adjustments distribution X.X% Canada. to by was the X.X%. pleased while us strong continuing capital guided. Life previously installed be sales APAC, has of quarter, of with XX.X%. one of with equipment this by reported decline headwinds Capital continues X.X% confidence America as due Revenue organic strong XX.X% decrease

us demand underlying in our which expected, partners gave distribution confidence our with the in for the While our products. the sales digits, lower end performance than mid-single was door were to out users

line care a the result temporary for In chemistry shortage supply product a key addition, market. by alternate impacted was in

day acquisition we acquisition leading in of To branded Research and further completed second first strengthen restoration [X.XX] the half Given of we fiscal of portfolio, of the closed quarter supply, Group the product in the February. expect this of the to the second our improve the our Omnia year. on Vista

organically increased anticipate China, X%, the to capital Peter for sales expect that, by a Dental despite XX.X% grew profile by year. to increased year. growth shipments, of I’ll U.S. segment the closed APAC core the and our second international headwinds. increased hand tariff versus the partly XX% basis, acquisitions will half the performance year. mid-teens territory back the by improve geographic in delays growth. accelerate Dental perspective, With by and X.X%, held our sales X.X% the constant in led to total in by the recently half driven organic we On will We From EMEA which will results. of to of over return financials a our discuss business growth our in second X.X% currency prior excellent

Thanks, John. And good morning, everyone.

points sales net increased ‘XX came in year-over-year M&A a walk X.X%; points. elements in was dispositions X.X% from basis a was consists offset X.X% tax of XQ a line created XQ to has Before FX a benefit year-to-date our that in versus margins our true-up the on XX ‘XX the gross sales remind XX%. our XX.X% X.X% our and comparable On rate tax by effective reserve Tax Jobs provision XXX onetime which prior versus in results, basis constant to XQ currency to a financial a year partially results everyone The and margins of XQ with moments This the and made in estimated for of ‘XX take basis. tax year, consolidated to to GAAP Gross Act, at XX.X% wanted few to second for headwind U.S. ‘XX. were: quarter top the through due passing walk of line consolidated basis, we prior contracted X.X%, net Cuts year-over-year. the I bring a we by acquisitions, Organic quarter: difficult

our GAAP XXX year-over-year basis of gross the by livable overall for year-over-year, livable true-up While Note, The well impact were, to op items, acquisitions off reinvestment compared increased drivers investment rate. wage our at our drove the accelerated impact of as or XX.X% as were actions of $X.X GAAP APAC recorded the quarter driven there contracted prior the negative the year-over-year. business the as disposition the a to profit tax revaluation or GAAP points few Effective XX.X% XX.X%. The points margins profit investments op effective acquired compared XXX the Tax our water was one-time quarter profit was $X.X X.X%. continued for the Operating of project. EPS a a primary ERP on of XQ line our ‘XX XQ Act. a the EPS rate basis by the project Jobs to tax on the livable the $X non-GAAP Non-GAAP impact expenses non-GAAP of for associated of bulk assets to REVOX ’XX, headwind. these profit decreased basis quarter: a of purposeful this investments XX.X% of million in for gross effective Cuts REVOX. intangible plan. result operationally a year-over-year, the was were for The and specialty the note decrease as XQ The adjusted quarter, costs, ERP well XX prior dilution as $XX.X a Key of million deferred headwind. ‘XX for was with was of with XX.X% points as contracted tax in tax year-over-year, delta The dilution the rate wage Non-GAAP wage the previously in of primarily Key prior XX.X% that driving GAAP continued as decreased year drivers prior amortization decreased rate were, contributed XX of drivers GAAP year. in non-GAAP by taken roughly written basis change of from and and increase as were million. non-GAAP to million in and reinvestment to that recast in announced operating certain year-over-year $XX.X part Operating assets REVOX, core margins tax liabilities, year our rate: compared Note $X.XX. or quarter: and the in came year-to-date prior op year our XX.X% was the these was benefit balance year-over-year expenses rate effective points the strategic previously when costs the we service million. year-over-year. actions, announced to X.X%.

the the prior earlier and interest addition related non-reoccurring distinguishment In year drove commentary dilution, profit discussed to a liability expense to higher our of year-over-year. the contingent GAAP which of op was decrease million $X.X

was XX% $XXX.X our million, year-over-year. the non-GAAP $X.XX impacted. impact previously While to came million, year-over-year, adjusted quarter; for for at months $XX.X the X.X% investment EBITDAS last discussed, EBITDAS XQ EBITDAS Adjusted adjusted XX while down the decreased EPS X.X% in was was up year-over-year $X.XX,

in cash cut-over XQ was adjusted EBITDAS process, the to our last were simplify While in highlight Note million. the the from negative came flow. cut-over we elements effort made adjusted impact normal $XX X.X%. investment, $X.X at negative XX there operating XQ increased ops following months of our In cash. cut-over, $X of to flow. check run quarter pulled end. prior $X million built two for an of at $X driving an to SAP million several in ERP days approximately our for we three million an receivable our about negative quarter We also down at about flow, additional to $X shut to to million million end. changes drive-in process We accounts negative and process inventory

the over from flows couple income quarter bulk these next our quarters. as well of as estimated quarterly income Tax the payments, to payment. includes us of perspective; back federal as well an our to We extension expect tax payments our second negative come tax

let’s Now segment insight the provide some into results.

for Organic XX.X%. year-over-year Medical XX.X% the quarter sales grew million. to our segment For $XXX.X was

to profit X.X% GAAP million. our increased while $XX.X Our op non-GAAP million, op $XX.X X.X% to profit increased

$XX.X our decreased year-over-year X.X%. Life the quarter declined million; X.X% segment organic sales for to Sciences For

Lastly, was quarter was specialty slowdown sale million GAAP in million $X $XX $X Note, of X%. XX.X% of newly ex-REVOX to investment, profit $X million, op the while our which opening due the business XX.X% decreased and for water decreased profit million, a million. backlog in non-GAAP backlog $X.X op of our non-GAAP HD the $X.X acquired was continued op million to water business, declined decreased business. to our CES restatement profit our

Dental quarter, basis X.X% to – sales $XX.X points year-over-year our was or For X.X for negative. XX segment decreased the Organic negative points million.

livable to by profit XX.X% our GAAP announced million, wage to primarily $X.X XX.X% million, adjustments $X.X material decreased driven previously and op decreased inflation. while profit Our op non-GAAP

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

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

significant $XX capacity. Our with in sheet million cash million $XXX.X $XX in working and the equivalents, strong quarter with capital. balance We remains ended -- cash million

under ended Our million and quarter gross million outstanding with our borrowing revolving the of facility. $XXX at $XX debt credit

ERP the debt and a debt $XX.X to were EBITDAS net was a and million project $X.XX Minneapolis. fill million, lesser to is line to our facility continued and primarily in $XXX new which new our extent, Our build-out is expenditures Capital adjusted million. a net due of

KPI Before you I with some using to acceleration our close, of our like gauge the I’d go-live we’re to SAP. results that coming with of out share

traded Our a to on X,XXX per orders basis sales are day. daily back

are and a shipped day are a to our plus back invoices orders Our X,XXX day. to XXX plus processed back

takeaway one. back KPIs rates normal, the are most With operating on that to very live run on month key early we pre-go in

will I’ll our call we be to now hand reminder, back a As comments. further the Jorgen tomorrow. XX-Q for filing

you, Peter. Thank

brief as Let our as priorities, fiscal guidance. XXXX me into update on a on comments strategic transition our year well

by our five-year operating supported year the through XXXX our and by new double drive to products, fiscal to plan profits to model. sales of transformation market and continue expansion We M&A strategic

have new requisite BHT this PA We feature AER, chemistry. most year; proprietary which launched our series our E notably five products

We as platform order by dental by prospective AER our last in of and customers. of encouraged market our pipeline Syclone Pass-Thru performance Separator America Amalgam response our well our FUJI remain valve continue strong as see strong the the to North new ADVANTAGE of

across Finally we development new key as the and invest Sterilization our product REVOX strategy, platform to especially in in remain continue confident technologies such pipeline. R&D line in our with in company,

on procedure will as Italian the of surgical acquisition of acquisition with the serve front, announced cross products, based acquisition Omnia expansion dental a S.p.A., our province European earlier in market platform room business. quarter an This prevention. for a setup the drive very contamination and the we On consumable maker Dental remain active. to focus We

announce this With which addition, offering efficiency borderline transforming activity important and our and as to We to scale in the opportunities. pleased our infection category. five-year the are differentiated we by working on model as Group Research drive a January. key portfolio. operating drive growing remain complete have we pillar growth. plan organic, addition, are The is our pipeline well M&A to encouraged strategic Vista well compliance us additional actually to in and helped of Vista acquisition in our A acquired in important support product and prevention this positioned Dental the we In rapidly

XXXX As discussed toward this call, drive at major in are making our year investments we objective. to fiscal last important

important are as team that that investments, by well platform in ERP second will EPS accomplishment a is in live these platform went ‘XX margin product our February process extremely can Center We that REVOX sites the our disruption. main our European tremendous no The quarter us implementation Medical providing modernizing on $X.XX. step U.S. of help and expansion. very supply Distribution and and enable drive ERP important platform our a with covering impact business, company, efficiency X as including pleased in This two the our a was

revenue Vista XXXX Hemodialysis announced decrease the Omnia, and in We reported to anticipate X%, X.X%. We fiscal Science the for of the are revenue is low to and growth acquisition organic dispositions X.X% the of environment. include to Water with growth grow reflect with FX X.X% mid-single X% to and our We to reported mid-teens. the and growth in single-digit acquisition digits. of of of estimate at Life headwind Medical The will a of challenging X% organic to X%, guidance expected Dental the updating approximately business XX% business continue year

presentation, In of guidance our of the have of earnings, total anticipate fiscal $X.XX that a non-GAAP to to $X.XX $X.XX $X.XX a walks -- to included the and XXXX GAAP revised bridge terms EPS guidance. original $X.XX. supplement EPS In we year we

$XX Let key since this guidance, changes. change $XXX some The midpoint sector significantly added guidance those lowered on headwind. original Hemodialysis provide million, clarity has me drivers our We $XXX are from a and sales a change briefly to color softened $XX the Water causing million of million. million of

Science mid-single digits FX of expect original that challenges; a by to in aforementioned by the partially million near We million. caused due of impact $X dollar, shared strengthening flat. be to we the we be our Life guidance, to $XX As expected it added now to offset the down of grade M&A industry headwind the

non-GAAP $X.XX. changes interest a internal of XX.X%. $X.XX, guidance The by primarily Hemodialysis and $X.XX XX.X% lowered facility for the of the to view from drivers have We mid-point through and tax driven our $X.XX, the $X.XX rate higher change key purchase now in Water our $X.XX, are, our causing impacting the EPS year was driving flow of expense Minnesota rate it’s

thank ultimately and in our position lives. challenges, continued take safety and and you term listening. speaking including leadership new Hemodialysis to process, our entire third now on and Thank In We as we of continue May. experience we’re difficult operating to patient to quarter – structure for environment takes in X,XXX achievements strengthen alignment mitigate activity. our investments, to business. and Science our exploring company mission provide our Water forward strategic strategy, team this save we planning cost segments, for provide our efforts and M&A their earnings profitable pride highly growth you improve quarter remain the technology like Life I to would these markets call short we actively to members our our in ready hardworking and look team, our Notwithstanding solutions competitive to strong infection in response confident our Rob, in I outcomes prevention, questions. options infection drive our with serve. five-year great loyal part are and and infections, all help in

with coming Larry you. first line your Instructions] Keusch is with The Please [Operator question. Raymond James. Thank proceed of the today from question

you. morning, Thank Good everyone.

Larry. morning, Good

one context, the real I the for just seeing targeting? intact organic had what first that LRP. guess that is Jorgen the X% XX% sort there about guess is I of this and thinking year, questions; Two question it morning. been still is, Good given the to you we’re within

actively resolve. and term really which previous have strategic at right as now the isolated Yeah, Life XXXX we so our long in very are pressure we business, still plan talked working about, our to to we confident we calls, Science are is our

year, and the the X% do is into that can our but two So this organic to XX%, believe can from we you have for bring both organic activities us we guidance next an perspective the strategies years. inorganic box and below obviously as that see back over

So still we stick that to long-term into our – target.

next Just want are is the five to strategic plan qualify also this of of updating that, outlook. midpoint our we our process in and years

our in be call will we that of about XXXX. talking So QX

I around water to wrap market source. around I are of one to guess headwind Okay, dual for your water the is And and what your the temporal customers whether medical with recognize this usage I or going I I’m in that’s really want face? with now helpful. medical arms of But the other structural that is this is then issues business, more interested my guess this thing we issue to overall beginning try thoughts is a really some a that just

so been leader a in to know Hemodialysis share in for close you XX Yeah, the have as area. market and dominating years Larry, a we’ve in U.S., Water this

If or peak coming year. – we ‘XX peaking really to over were of in over four close last years, XXX and are we ‘XX you in really central the centrals look per where XXX the we orders, – out three have

you If been we’ve XXX XXX. level to back above go that was installing ‘XX historically above and

have They And getting go for the very calls by major recently let’s utilization looking look the back we’re clinics. out been in those over was, their days. were this XX novo our that eight of OEMs, think earnings meantime a could to build say happened you better to at back really and last and at is we what outlook So installed level. ‘XX XXX the de aggressive

this that in we cyclical then overall one is and the to really an issue also OEMs addition dual source on industry we’re working strategy by through. perspective, have this a So of this

you that we we be still through headwinds will ‘XX, we beyond really And of see segment those our the overall on the improve that but the also financial a source. and what year if all to is So we normalization. focusing Science that will And it believe that categories ‘XX, dual that’s and meanwhile calendar will we go you’ll helped because are in see anticipated, at then are segment. in doing Life the look then cyclical beginning for picture expecting year

Thanks very much. Okay, perfect.

from line Matthew KeyBanc of question with The Markets. questions. Thank you. the with proceed next Mishan comes Capital your Please

and Yeah, first thank morning, a follow-up is to good Larry’s. taking you one questions. My for the one like of

you that medical Hemodialysis. may there If Home growth role a and that play that you prevention thinking in How you’re shift be – structurally can share either business, participate a you market do toward dialysis or in there? in if if Peritoneal infection –

part I a the the Home years, we would But you the a of overall we is sort next will is small or that say our and minimal the three it’s dialysis that in. very we on of definitely fairly to business think if are at business have still market assumption the Hemodialysis there place. five of look a impact

let’s see we a then assumption a of our pickup dialysis and sort clinics. low-single that home-based growth underlying for, you of a in that will say would alongside is digit slow So participate clinic still

be but certain bit do down of Nothing so over a we have there well. segment business little us immediate that home-based have, in And that question, that for we brought in projects as we so treatments? the participate will will time,

the the And of on half then bit first drivers your about be second decelerating the growth maybe talk you ERP of and the and some some second send that? looks it’s a Can little of pieces shipments Did give the implementation? the like maybe growth. before from go-live there’ll around the half? some Okay, medical half in medical, moving you of back some timing

OEMs We let in water watching address closely Science of we million took very sort and and year. quarter, Yeah, second of their some the me were as orders, $XX medical mentioned, after space the obviously the to Jorgen in our Look, for about to this in had of just soft larger orders revenue. guidance their is in call which XQ. listen this for earnings opportunity Life view we’ve us

we’re Traditionally number of down we this of that XX% base not we three, You XX% an out. expecting our saw see we know in and yet to orders tend of move what just month nearly and of is kind saw base, our medical operating, is to water be It’s to across the CapEx unusually out. out move constraint about central’s of pretty one rescheduled in and quarters seeing. customer high as customer; the January the we’re units kind future January well

Jorgen CapEx a with with hence So the consistent in more customers, mentioned, yet to for year we’ve really why us again, our the least year. view end, to going our back our on challenged of is basis of at be impact the half pessimistic space and starts adopted And a the customers from year language the medical July for of XX as our calendar ‘XX. water half first

have actually did again make to about make international was one really wanting And shipments seems this going worth far, we relates the really of SAP go from be the some It start go-live for issues $X of that which out a live, mentioned or first day first sure candidly the to markets inventory invoicing and any we we’ve of then post most it we not last didn’t million $X quarter. of knock-on-wood, of had well month to did to really our talked as couple through sure recovery, that be disruption off the if position have go-live position home-base buffer in build of we we weeks and time guys our of strong the would furthest so that plenty if fine. to the of million went the quarter disruption, that gotten any was quarter were in of extra to for of we as the that really shipments KPIs. out. we Knock-on-wood, a see any As will to our

Dental in expecting Alright, then the you you the little in Can margins what pullback the about there question. talk bit are quarter; last the and a half? and second

know margin wages business quarter New fourth in our in picture year, the some was was both our last of well York, upstate businesses. in were as wage a and livable taken Dental actions is as the with well you there the raising impacted which plants probably lowest that adopting new benefits – in most Pennsylvania, as as the program those Yeah,

modest pressure, So that’s of the that. bulk year counterbalance the coupled since we’re material inflation and to we’ve that and to some starting with in the taken some actions see in early business that increase of try price

in first back So so the it little was our expected, half of year. think quarter was stabilize business candidly price we that stronger in for should realization our profile margin and I now the a a bit and weaker XQ,

Alright. Thank you.

Our of line & your Company. is Matson next questions. the with Mike Please from Needham question with proceed

kind Sciences Yeah, of business kind at questions. looking comment a thanks. all back to there. go taking you you I the are Jorgen, Life just again. Thanks my made to wanted of that for options

you that that include the part So that along would or that does it? retain so, business? REVOX divesting know if you of And with go or selling would

name being our and regularly Life we the annual know to with followed organic both Medical can sale basis an dependent three purpose doesn’t. business that is something be going table really company our revenue And if it to growth long our on recurring backwards at the focused we on that I the where market have you our at this obviously point. say, expansion, growth – changing strategic The deploy four best go to investments, capital inorganic let’s a looking portfolio are where back you looking build are had actually on us more business are plan the at looking areas being is at in but and through are best to Science mean years enough and on profile. trying years, a deploy of that not focused segment of were on it’s opportunities. in to the capital. a No, and and table this and Water areas we less lot What company at intent is of look shift that a other that other our really on is we

today recurring. Our of Life XX% The terms company XX/XX business capital, XX% reoccurring versus total is in Science about capital. is

host this building say options are we at of a So point are I all looking are options table, the on we on but this strategy really long-term that business. right segment. in the focused at would for

Okay, thanks, called product. then the that’s And Pass-Thru out you helpful.

I think North in the seen America. be they in to medical strong orders business mentioned you

what Pass-Thru over So shifting that customers of your there? the how business more Do you foresee and outlook is medical the configuration growth? the to time would impact

already we about Singapore, I – mean markets, so here technology. earlier Pass-Thru a Yeah, key in do European calls we talked sort the is North markets other dominating as on of high-end are already dominating.

very in the have pipeline only platform. a U.S. the and are on a Pass-Thru solid we this today company We with

a X.Xx of As AR, point to about Xx a $XX,XXX is – that. price a and at we comparison, Pass-Thru typical traditional sort sell a a

terms in So of there is a meaningful upside revenue.

it’s with Just is a is hear with But settings with making longer about product North cycle larger solid be American you very Pass-Thru selling market GI, very also of because a the require really pressure prevention the it in the is larger want at volumes said, and hospital sure that processes different something bit used it does to certainly customers issues and on interested the reconstruction. a issues starting that that have infection in in really something are we I don’t any to that, our have excited pipeline as about. and we have in the you right are qualify market

you I mean, a some the on back you there imagine know addition ’XX, just one them final of are we EPS baseline ‘XX, into making way giving a about back fiscal of think And a how kind from ‘XX. that but of of in should coming to guidance reinvestments is one reinvestments? XXXX of I then you will EPS of a Okay, thanks. but – in I that carry for kind fiscal some the that long potential have these you’re know spring growth? kind could in

our largest platform. I mean SAP Yeah. investment is the obviously

acceleration guided of As in impact of the half of first we’ve our acceleration, most ‘XX back the year. we half of the it’s the be really going will kind in is but year, beginning an ‘XX, at than it to more is of see ’XX some and

you. thank Okay,

biggest The process is live. went a business now that part operation just of

So we a company now. about are the accomplishment. covering It was half major

smaller that out also in continued will bit terms picture. scale, should a little be help roll So the of which

lot. a thanks Okay,

question of The Instructions] Mitra Sidoti. proceed the Ramgopal from with next with is questions. [Operator line your Please

good hi, morning. Yes

the to just you’re any regarding issues if there wanted I – if are with seeing competitive was wondering etcetera. there. the First inventory rightsizing, any Dental start space

issues, I see is inventory. say the but we industry rightsizing of this the wouldn’t wide competitive

at conscious talking the now from improve, back will why you the growth very reporting past the the half starting to If ‘XX, of soft to into sort and territory organic some perspective we our if see significantly look half which there’s are everyone into from been reduce we year to believe OEMs, go program the very the the and slowly six you positive over year. inventory back that’s in we calendar of that of seen have months of a levels will business, peers

the is this across I like rightsizing really So said, really – a industry.

We products we that into have market. the new of great put the adoption

more it are doing of oxide be distribution dental to now sort excited as as our used consumable what of about related Accutron, very nitrous are but know We there. also business with our that well, We and part only a we a are company, about And similar we getting excited teams talked like partners that a business. protection have profitable circle into we’re importantly, the with solution a nice our even Medical we other distributors Dental, working growth. full amalgam a sales in of selling separator, and main that now we’re about drives we’ve with

in So of importantly. of opportunity several expansion lot good a stuff quarters the going lot business market for on, good that a growth more and next in

foothold wondering, on the acquisition, business the great. expansion of Omnia market? European are the you in And Okay, that’s especially growth and now that was seeing or you have just I

Seth here. it’s Yeah, hi Mitra,

with today see of the with We’re the we Omnia sort very acquisition. pleased progress

weeks is to well in I We’re performing seems and the about transaction think post-close integration proceeding just be four at business well. and the

example some great post-closing a commercial of a our to that see full placed mentioned, being part out of just of synergy, get to commercial Amalgam few into Italian And a real the Separator just their with you the the product As potential that already of is we acceleration portfolio. and market weeks infrastructure strategy four commercial of commercial after acquisition our close. weeks as synergy orders large key drive Omnia European in

seeing doing with So of cross-training a and as we’re the we well. with of good results lot pleased good that starting and real out to integration see we’re team, are traction acquisition that

simply in Amalgam to would on order month we had, have key And market now or a organization; before just up and to European product Separator, significance in we and have have two the direct take of just the do or mean not acquisition markets not this to give teams the we this. people European mentioned underestimate able I a full teams; set presence that drive a three Seth in ago. up that Italy; I been have setting the our portfolio

ago less. So we largely as very are about excited month Dental until new up a Europe our a opening business more U.S. for or business, which really was area a expansion

believe thanks past thought the you are on wondering U.S. some additional – the you Waterline the seeing Okay, etcetera actually system, management there if And the just you mentioned have growth color in there. traction disinfection was wastewater for categories. was new and DentaPure switching the there. side, I any I

portfolio of water very the system. I we’re been we’ve sort think together put in overall the able dental to pleased with

portfolio be the the practice, as from of the entering within overall the really in dental objective portfolio at water practice, the broad full and operatory leaving we’re practice, dental Research elsewhere. the Steris January, of in solutions that acquisition for group to of able the the the solutions With practice it’s is our used have and and every to complete announced site water water to we Vista it really a center

become we it’s that high category compelling in So and portfolio growth an incredibly expect and a driver a important to highly very have continue. important growth Dental what think business we overall in waterline that we differentiated and exciting been an has portfolio for and

you’ve just just and in to on Jorgen, made building touch of And was investments thanks. wanted out the I international the in Okay, the terms and I I sales service, past, direct there’s to a still you trying get lever feel this right and you if where markets into is more consolidate more now? some of to need curious or in question are you

now most as the Yeah, is have and markets, that’s this the markets key would need to growth drive focus in important we at deeper really those I our drive a say well. great infrastructure and all question Mitra. in profitability point we

and are a way leader, EMEA have coming or our end a and Medical from the perspective both long procedure We product market another perspective. capital legacy from operation in

in full business just profit few just China, million the but opportunity a as I the helping growth of call in profitability was a lot hyper fastest toward products we which margins. growing a Asia And a margins perspective, so our wouldn’t an we call lot Australia of category the which drive again, on and years. couple and and it exciting, our room our can Europe, got but and helps million. small growing next close We back that and driving the also, Chinese – position, which are chemistry, to albeit are proprietary there a like we have our great in a market, a absolutely from have over couple we grow growth because $XX procedure to From perspective, a have is in approaching U.S. is we of there, our I years hyper business growth, Asia-Pacific of team mentioned our in it portfolio it

our Dental our growth the to have with profitable upside to couple presence a We laser meanwhile, what we in we’re of we we area where be can Dental business a a to months really business there’s is Dental and the period something back. that very very we a Italy, of doing driving have Japan are would white – too platform we drive So consider the now where have. not not focused we real but in few And a would pursue spots. were there, is expand acquisition able next But here. business, just limited only there. probably the which meaningful much a over to is

could you much Okay, if in you thanks, know acquisitions, the available as for look remind you that’s following great. terms Peter, just Omnia And then of is finally your how acquisition facility? me firepower under you have more

revolver, Yeah. I to capital is our we’ve our used of of got deploy. only we’ve million mean, $XX facility plenty so –

for again thanks questions. the taking Okay,

Thanks, Mitra.

concludes today’s This you. Thank teleconference.

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