Cantel Medical (CMD) 10 Dec 192020 Q1 Earnings call transcript

Good day and welcome to the Cantel Medical First Quarter 2020 Earnings Conference Call. At this time all participants are in a listen-only mode. I would now like to turn the call over to the Vice President of FP&A, an Investor Relations of Cantel Medical Corp Mr. Matt Micowski.

You may begin.

morning good and you everyone. Thank and we On President, Chief the Yellin, Financial Diker, Blakeman, Corporate Strategy of Officer; and Senior and Chuck George today’s Executive Vice Fotiades, Vice and President, Seth Controller call, Board; Officer; President Chairman Executive Chief Shaun Officer. Capone, have and President Development; Corporative Brian Vice Senior Chief Accounting

for year issued Earlier press release results the XXXX. financial fiscal of company a the morning, quarter this the first announcing

supplemental on presentation along Relations a complement in In today’s non-GAAP presentation, addition, posted Presentations. we Investor This to with references, call. have the under section can Cantel’s of reconciliations be found website

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

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

performer seeing reported important pleased XX.X% we're strongest gross of the to individual this Dental quarter modest XX% revenue company whole profile and margin and growth was segment have the organically Overall portfolio this basis. performance a its past was number on good Much performance of stories, in the expansion a delivering across growing quarter. accomplished and underway. The you, for are was quarter but a initiatives solid mid-teens the Matt. excited Cantel. has the as overall a we taken Thank with

year the creating period destocking it favorable and depressed You was by shortage year-over-year chemistry ago comparison. segment this in a may in recall inventory that a

That very solid performance saw revenue. door driving being quarter said, out this we the

closed very last of on of on is a It's to know, the contributing Hu-Friedy the quarter. only the month results, in go Hu-Friedy underway. as more acquisition forward to one our Xst, integration an the expected team swing. is Crosstex we importantly By market October and you in of and full As terrific Hu-Friedy basis. performed and go place, consolidated been The organic quarter management good coordination second expect a start, is we month and

our strategic the respect the was performance to fiscal are of because still segment, we hemodialysis X.X% In progress. do while period. in are water the high the a on business second the review down purity Sciences to base Canadian water year Life a organically the stable with expect business this and sale better transition our water hemodialysis revenue in The finalizing the ago and second year. actually of quarter be down reported see We performed below half With to business modestly the encouraged expected. of X.X% basis than but

the expect second to an later outcome report in We quarter.

half the we The this performance are business This the which the specific medical less to we expect result in organic few year. a year segment is grew this this ago. back resolve in in a X.X% reasons and to versus is seeing of quarter revenue of used what than

adoption was we is delayed important One impacting start second of the shipping we this and which good at product. important counting their on valve, First, some performance product cleaning results. the products market new new quarter, quarter and to began were of contribute this our to our are launch anticipating

The second the activity valves segment. health in major in increased is notably factor disposable competitive systems,

Now I inroads. new categories that the products competitive the not we disposable make but pioneered allowed in technologies, or leader, referring any to we've to competition am and are

successfully we our competition both need and value in dealt our right game while decision products with of in past, Circle new up pursuing. with Full have are we proposition the to the leveraging which of Protection, makers, We actively

in now are There that to are portfolio. our important ensure continued segment initiatives three overall process in our of growth medical

to point launched systems. key C-suite a account in new to major field elevate we structure organization have call our director in First, sales health our

in value complete decision differentiated and not potential. our have Nearly and unique what is clinical customer relevant as the of The two-thirds makers where be. offer visible proposition protection endoscopy. of most been C-suite as selling untapped messaging we we economic focus circle of will the benefit to we of Our is value now and is

in have we are products cleaning organization starting this consumable new to refresh R&D to offering, Secondly, more focus restructured effort launch with the and our quarter. and reallocating the valve continuously

product cadence is new and the next a months. introductions over goal to of enhancements produce Our XX steady product

Third, we're to markets. and efforts. our penetration high Clifford I over in review were in and in centers procedural recently products Europe U.S., Geographically up potential underdeveloped to broaden Europe Peter meaningfully in surgery our stepping effort of in the

the more financial balance of developments, the this to outlook discuss opportunity. surgery in demonstrated in know We focused can a new have we clinical for products. addition performance a benefits center a team economically the added the the we this to support clearly to turn procedural we the I that will now our of a story conscious, and with back energized more more and Likewise, have look for is and are the come I surgery year. that compelling segment value consumable segment and Shaun We over have initiated centers will initiative. effort about articulate important closer at

everyone. down we additional significant questions remarks, noteworthy an prepared are to financial paring added effort am In deck details with have color during follow Thanks George, financial good and may financial the Q&A. commentary simplify the reported can the to available and on in of any morning to you normal for I The the the cover most results drivers. you earnings course along

XXXX increased sales in at a and basis X.X%, with FX X.X%. and XX% currency XQ M&A versus XX.X% contributing Net constant on negative organic year-over-year X.X%, XXXX

Our last margins gross versus year while by to XXX XX GAAP gross basis expanded XX.X% points non-GAAP points XX% by margins contracted basis year-over-year.

in Our along GAAP driving which margins in inventory the mix Hu-Friedy step-up increased QX of Life Dental some pressure. medical. the year-over-year margin operations, pressure amortization and gross our include was Sciences to the helped profile accretive offset with productivity bulk

which year-over-year just million under the to decreased million. profit Moving a On expenses and down of profit, a in year-over-year XX.X% XX.X approximately million. associated non-GAAP Hu-Friedy driven mainly came restructuring-related XX.X to at XX.X increased acquisition, GAAP to profit by op million, op costs XX.X% op X.X basis, of

basis accretion helped Life that it is XXX this drive Hu-Friedy approximately note Sciences contributed year business of While important improvement that within to the in in segment to unit. actions increase, taken XXXX points fiscal

quarter XX.X% primarily non-U.S. increased to the Moving denominated rate tax operations. higher This losses at associated to tax lesser rate, and with to international GAAP rate compensation increase with of Non-GAAP a came valuation expense as non-U.S. of Hu-Friedy. prior to excess tax by with was increased again stock-based in tax was increase the rate XX.X% addition year allowance earnings changes with of and due XX% XX%. the effective the with primarily driven extent tax our for non-U.S. compared compared driven exposure the prior as the rate effective Hu-Friedy's to in year associated by

As GAAP $X.XX. decreased EPS a result, XX.X% to year-over-year

the with we of quarter water incurred acquisition profit On hemodialysis contraction dilution, the $X.XX, a result earlier a of to again our related increased the to anticipated higher year-over-year increased commentary discussed as op expense GAAP addition non-GAAP prior the In related solid year. of EPS a X.X% from to basis, result the of first borrowings interest to Hu-Friedy.

move EBITDAS Finally, adjusted at sheet flow year-over-year. on balance in million I XX.X million, to key and up items. XX.X cash now the came will

Cash only operations working this and our XX.X XXX.X note and in quarter entire in from of X.X ended in addition reported contribution. cash with one would balance month like will cash working million quarter by million I flow that sheet skewed at capital. of metrics equivalents capital the Hu-Friedy's with be million. We came the to

flat however, more year use million, SAP of capital improvements we believe as cash capital worth we is increasing was that an anticipate this It quarter have the XX.X in post Hu-Friedy, noting still costs. Excluding working do, was is ramp CAPEX There down to progresses. working SAP as also reflecting further work stabilized sequentially. and the that

quarter acquisition gross our to profile the debt ended net XXX.X debt million. with is Moving million at XXX.X while the debt Hu-Friedy our

debt contribution month adjusted to reported Our is having due within capital to leverage working ratio skewed one is Similar note the Hu-Friedy X.XX. of please first to the ratio quarter. only net that EBITDAS

of end the at XX-Q remarks. George the now our filing be day. will closing we back reminder call will a to As I for the hand

to continue includes which EPS from affirm the guidance $X.XX the non-GAAP $X.XX for impact to Hu-Friedy. We our year fiscal of

While give like guidance in performance year. we quarter expect in with by second that first quarterly will half I of we segment up a the in say profile meaningful performance the medical a second step don't quarter the

Okay, questions. we are ready to take

Instructions]. [Operator

comes from first James. Our question Keusch Larry of Raymond

that medical guess the business good the for water. anticipate on comments morning water reporting that start obviously you for in to there. I I you, everyone. an I review medical XQ the two Thank indicated that outcome wanted around heard -- the later with George, you unit. points strategic business

second struggling it exactly taking what that so mean, a trying time fourth to to on? understand And that you. will at the provide decide So, remove Thank just keep be with associated answer were is there I'm understand of trying does guess the it, at point that? the is, to whether this since why as as decide prepared does or one the just you you again I'm to an release ultimately just to question quarter, understand going to mean long it I of what's part press has

issue more out provide and that's all it's the because of the contemplating have it why segment, life to three is I go numbers, a We segment. water actually principal information, Sure. sale historical outside second as the were including time, of be you have to if to would than came need a that history The the sciences balance the one way tend I'll lot it think to pulling understand -- and and question really to long an an I represented sheet it reason readily P&Ls so taken first, it, all the of guessed, more asset with longer more, then not has this as but this. available did frankly to quarters by firm. and accounting really have extract it needed validated and attendant to the able understood the why the and would almost it I for and we synonymous do Okay. took but

So, a took that to outset, lot would have really than it. longer done, of time at considerable a I that's really expected amount the get but

we those be, of and you the to you potential to mean business, it's articulated could keep options interested Secondly, could who know been -- are, what can and it. part Obviously we of options the parties a that sell takes all obviously the organize the that that's the evaluate time I process.

when public the definitively comes out reporting part press other we I the to expectation and material or fashion. but clearly mean will Cantel out, be expect So, event, a so is report some of the we not disclose opportunity, external Cantel or certainly that's some a of because are we that -- to it's part time it's of it's it's will we form -- is answer it what provide in release,

and that's come guess to want medical I be sure so questions back there to won't make plenty of I there implementation understand. I just but on the will helpful. go Okay, ERP just perfect, I

should sitting if and still just expect drive you So when about incremental comment that's Thanks. obviously left understand improvement the are done really anything and to challenges what's you the to to that here with what addressing that? out we want working that was be just when flat Hu-Friedy, where but that exclude start begin talked does there you we heard capital that had. to I sequentially

will the benefits. capital take at about speak looking then I'll first so, working we're how and Alright more Shaun specifically

initial and way today So, -- tomorrow way than higher we're productive everybody's benefits. order -- is is to working conversion this today sort of than of some the exceptionally. some kind shipments We allows manage in you I The for in more each the the particularly put refresh inventory is good the yesterday. satisfaction resource better at is in -- and I answer that. against XXXX. we is and this better mean that Where The ultimately just stumbled progress. memory, we least the better going that can terms functionality, is capital to making day best really United of than started customer States back February transition in maintaining

a give which we're fiscal there. at What about we I'll that we working time can think longer-term And terms we looking progress point of of we're about let trying potential what what we But half I in what from to talked view, and question in a we're an expect obviously year back to talk an Shaun -- see the a we perspective. as about continue will manifest Shaun does expect XX% improvement performance itself about with the is talk XXXX, I specifically preempt for the spoke me to just speak as last this we're to to SAP capital is we've of come to more of ultimately let say said of margin, that operating it, the transpire making. what EBITDAS feel the to improved contributor is improvement. be exit We that, because near-term the about how to rate this the about achieve company. it given from year going we that

so And is hi Shaun. this Larry

kind working reporting would to I so is of way think accelerating capital of SAP. source believe QX that going in we use the working trend the again of So the reiterate able to think out we that as capital improvements been we've to and about of both as the speak cash trough the hit forward able an rest with been we've of to make

expect it happen a the seeing ball think million. I the modest that balance we to start in is compared cash. deleverage of of from we I the XX the bit some the as will of expectation gets we've mentioned and as of the but probably be reasonable I call that second $XX that will so year off still because and And little QX that year expect most uses trough in if would that acceleration -- towards would rolling will that million actually XXXX again that hit you and will believe sheet half half of slower latter the more improvements a we've see in you'll we to

Okay, appreciate great, thank guys, you it.

next Mishan at to Matthew go KeyBanc. We will

the taking good morning Great, guys. thank you for and questions

flow of is next a restructure expectation follow-up Just as the what and build out XXXX to XXXX that and the kind as cash stages for business you free in ERP? the of the

I of that would our to of points more mean top I add I a to be to would of normalized basis for kind say then XXX it XX% XX% Hu-Friedy XX% which core basis sales. to XX% close a on be will to of around XXX that. historical Well expect approximately us And

basis. So somewhere normalized cash annualized annualized of XX% going see a sales an forward in I'd free XXXX expect to XX% on basis flow to a percentage of between as at say

it XXXX? what you mean for XXXX, as normal I would number the would say in be is it normalizes

the had let -- to get number don't on back me -- you if a bit question because XXXX next quite me of QX the We you let to one-offs. obviously go

it's annualized So but you have I me not that for back get let on number an that. you to

And forward kind and then fair. debt is strategy your of moving level how M&A here? guess the pipeline That's the given M&A active I

we've acquisition in be while made to very Hu-Friedy -- to we're of not the and expecting continue we short-term the anything in obviously Well obviously short-term. the doing

If gestate. model to took you it how which is Hu-Friedy acquisitions a while an we acquisition cultivate look at a and at look of as

in the a and the relationships past of we've an that be for forward. going continues nature obviously cultivate would to picture to important we now of it and them many them. But view in growth working -- are are we had how So continue proprietary part are on be things Cantel we

And active. so it's

would And to these necessarily they I'm in if response you -- -- been they're then what you're anyways that they strategic to trying would not actions very this kind understand of anyway. you medical like or like have is are response the what to disruptions doing you're just seeing, the to actions seem doing moving -- you implemented competitive like seem Are kind what to understand of seeing? have you're you're they're in just I'm taking they of this seem some trying

both bit See, of there's going of we've what's at a I quarter. didn't Look -- obviously that's quarter just this think on. start one the what transpired day

to ought to think so three major And that's the an think a saw of product our more recognition lot us or performance product and got opportunities the I been the as valve last needed new new particularly of product be example And our while amongst organization. doing a on all and an think health slowdown ongoing the good a not quarter of basis. be. of that more the I we cadence an step new needed new over think -- lot new growth valve valve products what's been that opportunities consumables. But ought like cadence I to them to And or should are honest to in product as balance look starting we've transformational you we ideas product Particularly the very obviously fueled systems. particularly that think allocated it's new there's it out you what centric with when in cadence years these we at I a regular part in we've last really to be I up. kinds be arsenal

systems or generate about. restructure news to take things reorganization could of to organization our kinds that the the and health this accelerate things needed new and which we ASCs be So into to can sales

bundling the robust equipment organization control a and we've obviously and a valve is we certainly is is these four transpired what's protection. The gotten considerably what's and prevention Director processes one. centric That discussion. is, really here sale people's C-suite discussion together to or over consumables. transpired infection focused organization had systems system not been full the of you circle three very fairly years selling larger. look we've We've capital Account and health around where is C-suite obviously real know the at But had sales our last said the distinctiveness assessing and So health as that's all Key as a have

be there relative And to our become so need talk has apparent. more competition's the bundle to to bundle about

about finally the respect always there's question think And look, market year I this the and with it of expand in been the Obviously then to our talked that in sort place increased behind markets We've underpenetrated. about changed. what's each take that's where putting but past that's of of hospital kind really penetration need now into emphasis consumables. to them this so to we've been in the terms needs

characterize I So my it. that's way -- that's the

XX% two while then questions. conservative then And seeing for to been it for if you guidance last me coming year? -- after for have you out for guess important and Thanks going So out. when why said this, and a the with your you am I and expect in you valve you I'm were not more cleaning approximately taking this initially is start jump I to medical a is why guys? what

is the ago three yeah asking know I today, it I question not where where XX%. around guidance gets months we answer's term yes. we the which I changing ought six think Look medicals months we me we're think expectation we to be over or of that about I differently Well, longer performance at kind I do -- what to and I but it have the being things talked believe look, knew probably that's do to sort if will of don't think respect coming still it saw first with I our ago like

X% will one XX% quarter it sure. know the quarter, next and You

I'm long in here, Viking in our be figure on and a need I fessing to we're we tailwind and of you may how think a lasts sort where to the up water. the the the metaphor row. a bit ship transition tailwind sales out look We've had like that we've little the situation made we're and then sort trying of

differently to things And the but get you some of get there. we're to and have to starting same you do the to perform goal

that's to So bit a terms transition think I execution. we make in the of needed of

valve your cleaning will the we Now answer question.

and has certain really the reprocessing to device through that the the be that's use valve for the adapter, in into used I excited is category obvious reprocessor by to gives disposable product overall the the call GAAP be how cycle candidly we to The of in we used OEM. because It's could that a you about to something practice. endoscope. ensure put in have instrument valves an itself talk run order think product are have that cycle efficiency our a single that's drive able us to internal and valve are been and was suite an that appropriate in the been of There more cycle. to the a all reprocessing been supplied sort has that that It channels. a that Historically been it in it cleaning in we're been what cycle pretty get help portfolio can

So their the I product. have team enthusiasm our there's of new hands lot in on know a to

you. Thank

[Operator Instructions].

Needham Company. at and Mike Mattson to Next

just Hi, thanks the questions medical I business. with questions. continue to want on taking for my some more

it's a that they've So launched guess I a a I valve in for had newer a had while. valve competitor you've guess market, here.

just than penetrated case and maybe zero their game the is their much better really behavior a huge guess or or what's newer is it with it's products, as the changed -- like more now valve, now old of it because a more just that I of their not a the changed job there's something? the in past seemed sort bundling So they impact, other better or there valve are it is somehow, strategy doing wasn't just sum market has

ours valves have and new are to the our in marketplace. the that are are compare differentiated competitors basis. take respect valves not see that any in additional the same the first new against product seen part. the is Matt, and don't any with There we've products players been from introductions offering. Seth We Hi we in differentiated benefits that features I'll there With field of what this meaningfully any equivalent to out

focus I approach spoke that really we've in of in of is the bundling that are think process level the perspective. to really you of question from the and what competitively seen to efforts a that's your a some and different as we sales change undertaking respond marketplace

Yeah.

to result. more continue while their to them as to into increase make the a systems We've we they'll as that -- up long think XXX% to think So grow get to time add we their we've led couple of obviously XXXX-XXXX. and their ahead -- a that valve had just of for look that penetration. to penetration to a at I share. start we can battlefield leverage started bundle. were just it to market. make took across. penetration, Seth's -- this battlefield story battlefield with It comments go to of there which because bundle in that health -- ways as way sort get to be it, a in focus we've order a made battlefield That valve We they are continue the market Competitors They for period valve about show

our valve we're with others So queue. commenced do things we've I more you got think to just to to which you two on is one, we've the cleaning -- want valve we is continue look what compete if innovate in have that kind what and some then learned to of

to fact the And the competitive that secondly, story broader to that call two we you get higher and can't to competitors to that distinct And story the in circle clinical we at message. we've course complete that that a and that order historically necessarily been it that's revert to to can't a that provide. we and take to by major embrace it And summer take to is education to that people out to is that flush it that major level that be we now. it's the continue advantage build same beginning needed where in what and earnest we in we replicated point the training have have of the started either it take is in a and -- out

way a think from So about we competitive I think that's how -- to the view. what's transpired

because things switching to some three like these contracts happening. are years, It's aren't taken up And every it's of come every people day. a gestate not while

So that there's to you a complacent find some it's you. on major the of time where sudden bundle period all emerge can the been valve situation takes systems that health with a get a of you've this had and of you've if that just in the story out

we're So and point total focus take on that, learned now why bundle we've we know the need why this level. the we to pushing higher the call to a

you the products thanks. area? about the business new of procedural could talk medical helpful, within outside any very sounds just And Okay, then products

to talk of I'm issue. present will a Well, competitive once aren't about think we sort that trying just some

I enhance that have that referred were in manual having was impact We Plus which to the products in fuller compliance used to a which that's and of is we -- quarter ScopeBuddy first product we a called the anticipating cleaning delayed. that the and process one facilitate the

So a that's certainly one lot getting quarter. see that promise we the of particularly second for

And had in the another ultimately in Australia we've for that's sterilization going a effort machine. application sterility have market. -- broader require again that product new the that being that sterilization not another individual launching which we're we're to the first-half a part a requirements phenomenon of they endoscopy a world phenomenon that's longer-term anticipated and the it's requirements school around really different new benchmark product and each second a claim that certainly half had provides depending on We that upon for AERs for a within has we on which it's our but

the and I business. thanks just really Dental mean the organic growth on was then XX% Okay, strong.

the So door was that with the is destocking, actually some there? or just of it is some gone that through inventory restocking the there out double-digit tracings their distributors indicated is demand of having

I Yeah, pointed a you recall and destocking we chemistry the out on and that. in look year-ago had we period think shortage talked -- about we OPA may

So the I call out-the-door year-ago to weaker clearly category. which there would having is a performance was it period. benefit That single-digit a depending said upon the mid-to-high

the the four So organic five but people of virtually an a may two-year stack of the obviously has performance board across deal Accutron to of if be the of at with year-ago assurance, to I business. sort having scenario. our performance more at all strong treatment, that and sort be wouldn't sterility end that the do mid dental; XX% a points said you are categories look And of it higher with single-digit. water maybe or ongoing but it was chemistries, But

again So a profile good overall.

lot. a thanks Alright,

We'll next Ramgopal Mitra at go Sidoti. to

Thanks good the hi for Yes, questions. taking morning.

First Hu-Friedy in wanted integration, better the it to Crosstex it done business, of to closing now I been two your integration as get clearly and if expected? the initial just I going curious it's it sense you've terms on relates only but the it's biggest terms is in relates a dental just months as what since was seeing take than you're the acquisition right of to

synergy very with the itself set Yeah, we and the Mitra, confident going out. is think targets achieving integration feel we really hi well Hu-Friedy I in

organization structure. said we've defined team leadership a and George As new

marketing Our preliminary efforts the focus commercial the for we're front commercial is structure, the product integration strategy. on the harmonizing offerings, really the where

as in dental have we the our deliver to market really the protection discussed. can we circle complete So customers

On is front includes funnel. service operating the the the started prioritizing and there. the We've actively strategy systems, our on customer back-office harmonizing defining IT products the and defining R&D supply chain, European working which commercial model new we're

two-months I well. going all-in-all So in over we're mean it's little

organization energy of and very feel is targets our XX million there's I to that that think synergies the combination. confident realize in the as what of think by this in And a potential to three clear positive ability we achievable. vision I in lot are year plus as

that the again of Okay, much to not that's or deconsolidation in it's fair? Europe anything much is pretty isolated. nature There is U.S. in no great and do that

clarify which you about? are to consolidation Just talking

mechanical in Europe…? the I referenced electro think you manufacturing

It's past this we completed Oh yeah, that. sorry. I basically am Yes happened That initiated now. in quarter.

that start from going to will benefits the And accrue so forward.

just an just couple know to terms for to that onto how company know I was then on was in stand pretty to update and just next side, of growth where the switching and trying get years? there, sense long-term contributing get that be the Okay back significant over you you REVOX. trying see supposed I I medical a catalyst of

mean I Yeah, to I we REVOX. think be encouraged very with continue

a and exist. the energy of that focus market technologies lot there's for alternative existing to think in the sterilization solutions I

the potential opportunity. as this of given deal technology parasitic and this us the view that think we confidence has really understanding niche in there I applications that around of product behind science a Again And type a a terms opportunity for focusing interest in acid is our low lot complex customers potential sterilization requirements. in-line this higher-value market. for great of from of vaporized for categories with and on volume, inquiry

think I driver later forward XXXX. in our So this working we and We customers as strong with this. longer-term ever as continue as in look this beginning growth a see development product on And pursue remains to to a of focus to

growth out environment saw then I the Okay, curious that's And you're of the we the fair. Asia-Pacific terms largely there? the in light seeing in we capital the in was of U.S. seeing on here uncertainties know by in no driven are just and Europe especially also some increase And I'm of medical

continue the U.S. outside on bullish be very we think to the opportunity I

half Each an have I a has little the there a good Australia very on view. think penetration opportunity we still There's around initiative first this opportunity product, very products of continue frankly improve point -- delay make more diligent in market different. steady procedural us. opportunity got down to prevention new the in progress. capital from position because a soft take an sterilization. Little Europe, China opportunity look liquid we likewise articulated has market's a for the as we've been we're on bit to with I capital exist to good of think been in and but the where infection But does obviously side. Europe I've control.

or on pass-through dirty-clean insisted arrangement of the upon that AER sort are We ones pioneered machines. the

too are we've not they surgery felt persuaded the opportunity always They and to And should conscious United products it's opportunity. little about value need States. look meaningful. be we the in a So procedural that be this convinced different learned and more was -- on from that centers

story and You present aspect did you creative for have the and in a time-saving systems the the talk than to them around it value more the health about be you to to States. how opportunity major United

them them sort them going benefit see we to training to and and think systems analytics We and months in should particular. teaching particular health giving that took and whatever Europe been has we higher there helps the sales and starting skill-sets half second now opportunity our and with procedural higher the three products so to opportunities target, salespeople perfect deal And with market-by-market in good analysis of of the in moved top who our some the the I and sale. in accounts is are us data -- U.S.

for Okay, the taking thanks questions. again

for back And additional holding questions any to other with turn comments. no conference I'll management closing the or

you. Perfect, good. Thank

on First you second and forward again of holidays to call our Thank wishing our happy call. on We thank questions and being reporting as back you. the well. quarter all for everybody you to for look

that today's attending. Ladies conclude day. We great a Have call. gentlemen for will you thank and