Cantel Medical (CMD) 17 Sep 202020 Q4 Earnings call transcript

Hello, everyone, and thank you for joining us today, for this Cantel Medical Fourth Quarter 2020 Earnings Call.

As a reminder, all phone participants are in a listen-only mode, but after today’s prepared remarks, you will have the opportunity to ask questions and instructions on how to do so will be shared at that time. And now, to get us started with opening remarks and introductions, I’m pleased to turn the floor to Vice President of FP&A and Investor Relations, Mr. Matt Micowski. Welcome, Matt.

morning, good and you, everyone. Thank Yellin, we On and Chief Blakeman, the and Senior Diker, and Brian Seth of Vice and President Financial Senior Chuck George today's Chief Growth Fotiades, Officer; Shaun Officer; President Capone, call, Controller Board; Clifford, Chief Chairman Peter Vice Accounting President Corporate Chief have Officer. Executive Officer; Vice Executive and Operating Chief Officer; President, quarter the company results issued a fiscal announcing release financial fourth morning, press for the the this of XXXX. year Earlier

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

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

financial directly forward-looking company measurements earnings statement The over supplemental to provided and measures. our the presentation George. is non-GAAP on release. of in press most financial that in call call contained to release. financial Reconciliations these concerning now With making the turn to also earnings today's comparable be will I'll GAAP information references today's measures are Additional said,

quarter the impact financial pleased execution in Peter COVID. Thank you, amidst fourth and of cover I'm initiatives. Matt. I overview perspective key from we with Overall, will will provide spend the executed Shaun, on our more brief the will how time the comments.

our We of to management operating with has Our never strategy control respect prevention in been goals more expense. relevant. infection achieved and

achieve execute to continue activities. worked We and quarter. revolver. in And million protocols facilitate in our to drive return protocols to adoption to uninterrupted on $XX on the integration on Cantel September, initiatives and exceeded maintain customers new and the the continued cash early And a normal we We related to down management in performance. paid facilities all with We Hu-Friedy safety we of X.X.

As of strengthening. we and procedures XX% and said improved dental about pre-COVID they to in our this both and in levels, medical are XX% are have morning, at steadily release

Given the support, We're quarter, last are full the just elective the providing of indicated critical expect we exact not nature a we certain Therefore, we guidance. procedures conventional not as recovery. financial timing. of we

we do expenses will However, control, to what operating execute profitability. want we we and how clarity can give on on

the year XXXX. to impact quarter, first expect exit so plus, the fourth EBITDAS the we the which which we same Specifically, we gradually entered margin quarter our margin from earlier in with COVID to EBITDAS that the fiscal improve at XX% is calendar

to continue as pay execute cash down on also will debt management We practical. and

which detail. growth Peter execute projects will Finally, several cover and some in we fund will

it over I Before to to future. turning underscore key want a Shaun, our takeaway about

has seeing will and for COVID a we a near-term procedures of is impact relevance on had be Cantel's that infection ground to new developing this to provide education, and we prevention the In training, normal. businesses, our medical products and in fast revenue, factor While the longer-term. importance the are able and being how customers, offering on support that us care deliver COVID dental with elevating, and solutions, to providers instrumental are

hear We about. more serve demand, you are up to will gearing as this

So with that, Shaun.

with going to go and brief financial our George, Thanks, good I'm results commentary. through key morning, everyone.

well the XQ, and to I last insight volume the given to year-over-year comparisons results XXXX. like provide provide as like sequential first close with more relevant comparisons some begin impact, quarter, of 'XX, the COVID. I'd that, Following specific financial into will the I during context will to references with as part additional to

cover the on decline can basis. QX negative questions with 'XX you This for are standard prior but of both year-over-year by dental the the growing to June grew financial and medical routine X.X% due expected. the and year, as Life segment segments negative and constant Q&A. in in negative to remained basis, a reported decreased reported a available of exceeded an COVID-related on negative by July. recovering in the Overall, procedures. deck resilient we have dental Hu-Friedy, Sciences earnings during you Life currency deferrals in organic Dialysis of dental additional declined relatively course, on XX.X% have follow Dialysis any flat Sciences an fourth sales acquisition M&A Net may expectations the and details Of XX% versus X.X% XX%. driven volumes which faster procedural primarily accounted the the our quarter our X.X% was basis, of and organic impact and for with offset The during XX.X%, along, pandemic,

XX%, increased an segment July. the equipment medical procedural the with XX% in declining procedures the revenue by driven Finally, June the actually year. QX, in approximately quarter, COVID-related in prior basis in organic fourth quarter decreased X% recurring as approximately elective the Sequentially declines. Capital XX.X% negative recurring versus on by quarter from and approximately decreased also revenue returned

XXXX, margins, XX%, margins declined by points Turning while basis points year-over-year non-GAAP to GAAP basis our contracted XX.X%. gross by to versus XX.X% consolidated the fourth XXX gross in XXX negative to quarter margins

$XX is million in sold that goods approximately I cost of you recall fixed. of our the If discussed third quarter,

relative to margin $X margin. So margin accounting our to approximately of is cost, degradation levels, for from unabsorbed almost fixed million attributable pre-COVID solely QX pre-COVID the

$XX.X profit op year-over-year to to million. basis, XX.X% million. non-GAAP GAAP down decreased XX% Moving profit, decreased profit a On year-over-year op $X.X to op

GAAP effective prior tax increase mix came under by benefit Act. quarter driven increase valuation year the by income rate XX.X%. to an XX.X% CARES federal at certain This at tax the noted the in loss the and prior benefit effective in loss to Non-GAAP allowable compared GAAP income additional impacted taxes Regarding for was of year compared the a before as positions. allowances The tax of carrybacks tax was XX.X%. XX.X% rate tax tax was quarter our and the in rate for geographic rates,

$X.XX, XXX.X% earnings GAAP As on result, per non-GAAP per a to while a negative year-over-year share earnings share basis XX.X% to $X.XX. decreased year-over-year decreased

adjusted at four down key By were for five EBITDA strength approximately a move for came XX%, in year-over-year, positive of from from sheet flow cash. XX% the million of in million, with sheet. pandemic, capital million, the flow of Inventory for on balance balance declined on source working quarter additional declined in year, the sequentially $XXX.X will accounts generated in operations $XX our $XX million years. the I approximately items. XXX.X% capital now $XX.X put receivables, payable basis. million Working Accounts increase with Even accounts of all $XXX $XX from has flow receivables flow relatively increase sequential cash of million, flat. five the management to that operating hand. the through cash on been cash in rest XX.X% million best month we Finally, to perspective the management, inventory a $X far, the increased in Cantel. Cash and an year from flow To year-over-year. and cash and to by at ending driven came XX% past the

$$X.X projects expected track our quarter following but better expense between cash volume able light COVID. to despite were was pleased XX% million we cash quarter, the was very suspended. flow and operating return year, essential that keep during levels to are this on Capital were challenges and for key of XX% We flows, to in a increase all of an the capital sales than

spend Cantel addition, year while debt ended back debt of XXXX. was total is million. In historical To the at spend CapEx in $X.X levels, net $XXX.X more $XX the at quarterly conclude our the versus ending million $XX quarter financials, million at billion, gross

to Our which times, net X.XX Hu-Friedy adjusted EBITDAS debt XX of months includes was ratio results.

maintain leverage XXXX, period our amendment reminder, provides liquidity and us of a million. suspension October minimum for facility a to requires As $XX ratio credit a through

are debt, $XX that worst following ample the of putting cash in even We maintain down collections the our a end fourth while was us to quarter paying our sheet in million flow balance in cushion the position months, September. with outstanding revolver encouraged positive, through

least down $XX including targeting are total $XXX pay in a year We paid month. of the at this XXXX, million to earlier million down fiscal

the quarters regarding two feel for too some the still year, to provide uncertain the specific like for is guidance I'd provide we next to approach revenue. full environment color Although, on our

range of First with $XXX to to first quarter expect quarter, for 'XX procedures given included million, external XX% XX% increase range. procedures revenue May all, see $XXX approximately the we a entire versus QX that the to sequentially XX% million we stabilizing the in in that a to

in rate QX. second continue expect quarter, though not recovery we to We at as our saw the the same into

to due have However, four it's days season. shipping the holiday in QX, we that fewer winter worth our remembering

will and a furloughs back volumes revenue place sequential increase normalization opting to Operating million I fourth stabilizing the as salaried we estimate from expense, a through to accruals in of and results So would enter from number quarter improvements, the in year, the even not total in with range. fiscal to day expect QX With $XX sequential $XX as improved see QX increase new rate our QX. drastically million in cut to that sales August. are million we QX operating in cessation bonus reductions QX. gradually recovering, furloughs relative $XX approximately employee on a commissions, in I of salary such our items, expense

through of cost, by removing an a But but flat is volume as XXXX. the increase million a the quarter. a set the approximately that cost QX, of net basis. to of we and approximately taking changes million $X quality we executing closely QX, well mirrors will equates committed in to QX stay up the and $X which pre-pandemic will approximately headcount million up EBITDAS result believe that are also first these more a for QX to improve additional as are react relative percentage structural earnings return our expected each ramp In to $XX on cost described $X actions quarter, to from we of in In driven to equivalent with above, However, savings us in our revenue. will and that sequentially We QX, savings million, we actions progress expect cost performance. of annualized decline an to savings to year, XXX

but listening XXX% details. we not path a by quarter, recovery our As hand provide EBITDAS now a the in be QX navigate to your updates. reminder, through each we additional Peter to volume to are over I targeting XX-K return XX% I'll XXXX, these a it with pre-COVID requiring George sequential week. And to in as volumes. a operational filing of to will patience mentioned, next appreciate few

long-term and first I have our Thanks, insight provide and on the the activities of morning, to observations then taken on additional and macro actions execute everyone. Shaun, for wanted both our good short we ground, on to on focus strategy.

range. we and as procedures our markets, and markets. levels third-party XX% XX% as overall of the As XX% just has been levels, to the forefront mid-April all procedures has challenging impact market. us insights, over quarter, QX close on The levels country be of GI fiscal heightened region, aware, like are on while well-controlled and on points normal we the in that pre-COVID of at it dental the shows pre-COVID the commercial COVID priorities control August hospitals at of the the Endoscopy to question, XX% medical these U.S. Since elevated elective second volumes claims in volumes. the to the other for the data well in UK estimate U.S. U.S. are baseline, long-term. to relevant perspective good practitioners. and our our XX% be significant. data in various seeing data, teams, we operating By industry where estimates, quarter Using XX% to this find procedures countries continued seem through that are a at sources, that XX% provide areas continue practices was through fell XX% believe the around pre-COVID spring and back more and steadily to surveys, aggregating strengthening nearly Internationally, IP&C to are will are our time, the for focus the Without is seen to the trends. and it to improved XX% Netherlands to From baseline. infection over external end healthcare Germany dental levels, to baseline in of second ASCs we have of summer And we're volumes Elective and like prevention we of by dental impacted have providers and the of that that COVID a to month low pre-COVID varies been virus and encouraged customer

long-term. as the to switching dental underlying which is two facemask A from the from the should IP&C Rapid reusable one patient systems valves or of of shifts coupled and to the dental tube provider use and The existing all patient single from change well the seeing Cantel delivery regard encounter, for enhanced compliance volumes, daily, procedures, adoption recommended over few each compliance producing per of protocols of switching oxide to protocols mask. per single patient to the sets drive infection nitric better with stronger sets types. single protocol. face face tube conversion as mask rationale use aerosol as nasal of return are are masks the use shifting use use with protocols, as of for general. single at market Use nasal shields out with a prevention in in We switched perhaps use benefit examples, products professionals day out well with for better existing

increased in our expanding With production face capacity. for sustained meaningfully we PPE, and have mask demand invested and the

located second all at For quarter, XX for the last two bringing production placed remain on two COVID, executing impact the will XX/X in additional 'XX. regional priorities end with machines in end Despite masks production our fiscal capacity. we've on be of the America, our and back-half been bringing North Six We we in while Italy the the support site those complete machines the circle two continued eight these be machines, Cantel will initiatives fourth our eight to we machines of month. and commercial demand. strategy. machines focused supporting mask key the ASCs, X.X sales as months, per Key of machines our the of our an our remaining focused enhanced on online in the initiatives. over organization, on the maximum been facemask mask the reconfiguration first the quarter, hospital In on X.X of just total million four focus support has to six capacity among U.S. first the orders double quarter, our priorities to of as by level anticipate well protection another of by of running on Cantel

ASC created for ASC first the a sales team. and space, the marketing have time dedicated Within we

share overall our demonstrating To CCOP as setting, the In clinicians, relationship be our setting, enhanced well that our and have penetration seeing ASC solution. value a deepening overall care of portfolio market directors the on account full of are improved to efficiency, our AER prevention the as acute our We with us the in great value the to to portfolio addition market. an the in of We ASCs, infection the focus broaden and clear, key we the IP&C benefits. drive brings hospital-owned this penetration opportunity with space, outpatient and success expansion within we the leading strong early within the of are investment to our by facilities. full ASC ASC see but opportunity for the

our continue further We clinicians in the has invest influence protocols, reprocessing healthcare solutions. with resulted these IP products to overall adoption to in our engagement systems broader and of CADs and workflow large their enhance which

product solely to from commercial to offering, capital With our transitioned key reps solution CCOP sales on while organization specialists, focused broad product department have the selling heads. in full enabled of this previously bag, focus a on our users we transition, to our sales still have We hospital consumables. team or

than This model builds in capability get this neutral within a had even the to that addition, have field we may that to sales we notable presence, have overall, strong has and commercial limited. better This been allowing a broader experimenting focus the assist reconfiguration are we access when be rather restructuring, UK. In is ensures yet the P&L. to a success with a reps inside us cost capability,

both consolidation have we as commercial well our efforts. Europe, into on Looking good the progress made as footprint

training to consolidation, expand quarter, with all as facility Italy. move to are August project Italy in continue Pomezia, track We our as to This was our our with Germany moving commercial 'XX to to to the all simplify translate BHT excellence on fourth in we our manufacturing commercial excellence we EMEA. Dusseldorf activity in center expect And our execute X. have the an German the important we from operation growth. Germany business, processes site In profit into of across of closed this and production sales office, accelerated parallel, our on successful AER well and location, deployment existing pace. our we our as Augsberg to strong continued Europe streamline on performance second-half at an to continue improve accelerate In

on continue integration excellent Finally, of dental make to we Hu-Friedy our business. the progress into

questions. strategic our on produce this and COVID times. stakeholders to global our teams now continued during markets, time managing I key but of enhances mentioned unprecedented, There in earlier, few come setups, enhanced is proposition products critical dentist our services take in office an infection are to execute the months, this for to thank resources. to we carefully this a that, prevention to over and confidence we've Despite addition on overall the our for want education for focus their offering. of the launch new to extraordinary future GreenLight priorities, our and and these essential As and With key daily X.X increased on is management and impact expenses the next while instrument the efforts Hu-Friedy system deliver short, the scaler, value focus customers add of business. more our end ready to unique on

first at for James. Gentlemen, Raymond thank Larry We'll Keusch, your Instructions] you remarks. hear from [Operator

maybe just questions couple of a and first. easiest one Good Thanks. guess the everyone. morning, I

And What capacity how machines fiscal dollar full with also full incremental all manufacturing, capacity should that once on, those we year? doubling your mask up does in new capacity. that at you obviously the it? imply about by trying speed, be to it be the end represent at with this you're think about, does amount? Just of just thinking So you're should a

Yes, going with Larry. the calibrate, us capacity. full a coming get or here, each to give those in it's us wave deployment To capacity take month on machines some to to of two probably up look, color

gives and the look, six up obviously eight by us have think on markets looking opportunity From would I at we're 'XX, an And a now looking us at perspective, are the So capacity. business. for ability it end fiscal of monetize the also should of side an for in of the manufacturer to bundling way opportunistic capacity probably mask as right portfolio in gives at be opportunity I to use think the very effective anchor we this PPE. of is machines the full an dental high the least revenue that quality running

we get we've very eight that cover to, business year. So, into deeper is can something we well-positioned machines feel grow the got we whether determine pretty to XX/X as again, aggressively, that

for Peter. that, So in it. just I case you maybe Maybe on just just on missed -- thank that,

if revenues had those all would that? you incremental So, capacity, off machines the of running full coming be what

$X say a the the if $X million would the capacity is probably could I get prize million Yes. we full quarter. size or of

just on percentage XQ versus think a think both through Okay, in worse trying the secondly, it numbers got basis perfect. Then dollar I and if XQ. And dental. I the have my to right, I'm

XQ April have So about. to and things recover to start you to you your start obviously, in as understand, just trying talk didn't

just I'm in again, there may So understand be on that resulted going that. to else what trying

Yes.

QX, being in arguably the affected two and QX still QX, whereas April of all like wasn't right, months that though it's by weren't even business volume that, think did materially you COVID. you COVID affected, yet have in our overall had I

more just think April It's month So, there's really they the point overall, down the was it from like of our than volumes QX, worst. itself in really don't of were to in than obviously even QX I that, any though were view. more

as then And is, one, just thank perfect. and you -- Okay, the color. guess for for last Shaun you I

real any quarter look uncertainty you're what to that's here. was think the or the help around you how EBITDAS As challenging the out think think improvements recognize And put calendar better. just around about commentary and understand some the about the anticipating. that? that sequential I it's there, me I fourth But to saying numbers given little kind get quarter quarter below you're margin, like about the 'XX, dynamics Street again, to of bit for XX% should it fourth a thinking the itself be I does as

as kind you be from expectations, that any of kind that your what that of And over looking might at fourth for like guys different the Thank looks what it on year? Street you. provide can color was where XX% So what different might be as are the you quarter EBITDAS? plan what to

to of we of go back to talked call, Well, get the volume. back doesn't to about it that Larry, just kind what XXX% we require on

or thinking get we So that's medical not in to within in model something north and how dental. our requires really XX% of XX%. It

slope, a conditions see be XXX% to deal our in shouldn't something to how a as being where to to we're XX-XX the are now volumes even cost slope. that, committed surprising to to are right, And And into of committed our we anticipating we more well, at to us So the that going thrown which react we're first a saw to here future. quarter. we've And well than get obviously, that in -- continue quarter much going volumes, with recovery volumes then base XX%. second set is go continued any us initiatives the from combined we with to near for it's anticipate anyone progress against think of will the back to we right going very right modest south procedural Cantel be QX, that XX-XX advantage is an as sequential that in in give X.X, lower but we to again,

in an baking way certainly, they thinking to this. there's we are making through in that all certain of give you take potential think conservatism inherent to where continue that We're as And, were or will, So, we scenario. right, we that shocks we that out we're are back months in and end in of in going for obviously the the to we're we -- right if not this. can, now other But that's progress be as things April up. won't best

end will just like up say, more side to said. quarter. plus upside to the I’d XX%. of in look, put business Larry, wildly optimistic what wouldn't we're not between too today and Shaun missing the I'm XX% at expectation. on the being about a fourth the to in just people being on going even I was be we number out of add tell we we I much tell because where before, read going and in spoke side, conservative I And there's We you, no sure optimistic difference of that thought we'd the the end things.

look environment. So talk the in is to I about think that's current future, one way the at going to particularly how Cantel

I'll helpful. George. Okay. last really that, Thanks drop. and was then That one for And this on

thinking be about margin sure the first-half about we're sort you out any thoughts year start we we step then should this year? of is kind correctly. through Or pronounced you here, in get just in flatter EBITDAS kind of Shaun, of up? make would and it Just So, a of thinking as the more sequential the so improvements

Yes.

increase the from also rates, that degrade dollar then revenue margin On QX of think to margin drastically revenue And being be four in basis, even not from basis. QX. I you improved I on expect going drastically said days a QX, again, to QX obviously given probably flat somewhat. sequential if with revenue the shipping that's because to back that not right, about, that, QX improve will I QX the be a to with day with So to think would relatively

bump you more would and in QX So XX% to QX. see up the

guys. I Okay, appreciate Thanks, perfect. it.

Larry. you, Thank

next Matthew Please Our at KeyBanc. Mishan Matt. go from comes question ahead,

taking guys, and the morning. good questions, Thank you for

be track that how to With is on progress the your be? large be performance? metrics And attention just X.X, in and of what to going kind might able close your kind your I'm and are to gauge working should Cantel swings see to markets, understand you going of paying what you're we what curious, not

Yes, as Look, studies comps, we're Matt, new to a indicators Obviously, strategy ASCs is Peter. audit at down progressing path. sort revenue we're us of this that process reviews setups, at looking tell are at the or key we're looking on think how specifically. doing and comp and I we're looking ASC with that we

On the here couple CCOP an system. quarters, hospital, basically hospital play, for product measuring that we've the index the been in us of execution tells basket network a

obviously, territories CAD higher year over That’s revenue by versus investment not. we've as the of for been categories territories in looking than we in So territories terms in a at where non-CAD our do now. move obviously needle growth CAD-supported saw much did we

perspective. deployment key from in by regional by rep, of On excellence are sales still doing country, of module we're the by Europe the [ph], some indicators each really side, how the still commercial the really Comex we of in of are progressing tracking right we're deployment now, midst manager, since there a

the a tailwind for Is benefit? incremental to to as from if the are Peter, what be be for But the and it It overall which around And offices headwind? at seems thank Okay. Hu-Friedy, very then if you. some going I net you guess, And portfolio tradeoff running is to the a you question. or is neutral dental it look that is offices? going costs, moving potentially detail dental. much for Cantel the of dental

Seth. is this Matt,

to if for practice that enable get solutions to an to to volumes I they're suite, they're to obviously, them procedure looking the used dental think efficient flow, back get them broad in enable the to. back and to

Cantel, the it incremental for is I think probably on average, Hu-Friedy portfolio.

suited able of We sold. type chemistries, provide customers see products includes historically think that particular, to their of get well a the demand the both of most for. to the a offerings, respond which overall more for efficient it's I efficient substantial reprocessing practices and environment, PPE well in that to elements as to reprocessing addition system, enable I we've is to to the higher other those in they're in product type current to think whether IMS overall we're incremental volume well in consumable And looking product particular, That back our as sorts bundles provides workflow, products. dental practices.

And fee around then flow. cash lastly

of gain been steps the of on other some quarters, First around business? are excellent. thinking parts then And over congratulations year? of the last flow off, and for cash several cash takes next how about level that's the puts the costs you flow to Can of about free you free talk best ERP this and the implementation

start with cash I'll flow Okay, 'XX. for

thing $XX I in would 'XX. is to tune deleveraged in keep here million mind of did sheet half balance almost one of that, we latter the Just the successfully

continue as of the investment the a will expect also I that natural is AER recover, react So first-half to volumes outflow year. as have mix right inventory to to And we and modest would some to have to the coming up. volumes in be we going rightsize

the going sequential latter as expenses to things QX well back QX, restructuring here cash claw going our going some it have. think of that we're you in expect we'll to certainly we've launching in we in execution, of will outflow as I just about in naturally So, QX, have continued also the first-half while back also what there's -- are would going come if some in as this discussed you very we in invest if probably of and are that that the and Obviously, mitigate be that benefit not as year, first-half, modestly saw working costs and saw the and they that degrade we off capital successful half. we a right, -- to we're been in to payouts will I

So, mitigation, that our latter where year, will get get getting you'll stable that and clawbacks as benefit the terms back pretty from to the cash half to get half I latter of through in through those position of year is see million we'll be total get happen operating could numbers, the think there of the we to QX. up in most as cash going think of then the more of plus those. we of filed type start second-half our stay cash of the ramp that the I returns And some $XX back some to cash although, 'XX. tax And

EMEA, business but to And spike remainder think results think Hu-Friedy color Medical be laid we the note will up we the fiscal here up effectively, as move the to 'XX expect we've COVID, very legacy SAP 'XX will the been of dental add EMEA ERP done obviously. that that to spring. appropriate we've in we've plan Matt, that I platform cost just next a sure quietly, be I we year And make an the haven't action. out seen I’d to that'll the on pretty some and for of CapEx, that use And on platform in during of brought hard be you SAP. And working early

on I for average quarter CapEx go $X more you expect Yes. million like mean rails run-rate a that the not off 'XX. to type could is than to going million $XX

much. very you Thank Excellent.

Matt. you, Thank

from come will question next Mitra Ramgopal Sidoti. at Our the

morning. we cetera, that's related largely was good I about next Hi, wondering, we just first us. and out costs, restructuring look acquisition et behind how year, think should this to as Yes.

that now we going extent are the those through, depreciation of ongoing are But, Yes. other Europe type embedded restructuring Hu-Friedy throughout, the I you'll behind behind restructuring to us. acquisition footprint probably in through. costs continue costs with large come some bulk of I just of restructuring those most you'll cost us. think those point, in But see dental. some amortization to some again, cost come QX see the still some actions an your as come mean, be acquisition than yes, mean, see that's the in you'll I to costs

you've affected had that quarters new really global COVID Okay, curious just even highlighted et that? where changed that great. has obviously now to relates obviously was know introductions obviously, face outlook operations. example, as AER product has would And result but rationalizing I as or you've seen of the as masks it the obviously, the two Maybe comments a plus, was to accelerating portfolio? for any be how or opportunities, X.X thanks. look a any other around it initiative, And I you your cetera, you've implement

that's just cadence the that learned the cadence I business that running biggest right, is Mitra, the thing onto business we've fall across a on Yes. you changing can weekly think your a I execution for back us daily getting we've basis. or best seen monthly from quarterly to that on And business opportunity think an collectively standpoint the and a the basis. is running

As to far to faster us was hands done. move parts as work us pace. quality in business get opportunity to And those the that of to things out that started can capacity excess lay for people pairs certain of activities downtime required some had we allowed a I pre-COVID, Cantel think the with the I the initiatives created X.X move of with extra at those to smart actually think

things kind I've facing. just just are a Obviously, know focus that's and I But balance done some deals And for from Hu-Friedy. the as same a again, somewhat. a token, the to some potential this delever opportunities difficult year companies. No, of curious on maybe different competitors mixed the seeing Okay. And front, result pressures the of are you was I it's sheet also M&A heard number et up get in great. is of cetera, about come to you environment. now

Just front? again active around being any the M&A on maybe thoughts

time the significant. very I Look, we've wisely opportunities, Yes. as Cantel ahead. X.X these being, for we're said, on this are using And focused those which push Peter time been to think

think -- to get And our is that's I obviously deployment there. least So we ahead we of resource people where still us work can at greatest on that. the of focus have our

we -- down we quickly debt. look, some how been it's COVID pay Secondly, it's could obviously certainly if had impact, on

has we'll look issuance the management nature. the get is, good on that's is things, proprietary we things continue meaningfully, obviously with based we a down as improved you because to part took to follow ultimately our those Cantel. the to the down usually outside. -- And know our past year. we before know, so to start be out become to in We the debt we continue through and and assertively is building stay we all And go But more that convertible the we on want had paying focus active companies on of are looking relationships be way that primary as are news we the cash of You to debt. acquisitions do going

trigger structure do. we in So anything, actually continue months pulling we to off we be. work our But terms on it where capital as the part to want that'll that of getting on be a few

business are away savings that a have more CapEx, will cetera. of of and a margin, permanent mentioned by I back, Okay. there saw going we should more talked a nature, didn't interested you've improving this you permanent should of really of much How I just the the to past the to costs you've et then obviously cetera, terms But I'm obviously like thanks. of some yearend the just you'll in But lot and assumptions incur travel that again, clear. of great, of off sort what year. as just going be nature? that know of George, EBITDAS people bringing picks in about And be No, finally, cetera. see think et were non-essential be we in be to that's on et cost up, as some some be in of terms

operating in you discipline let thing the of a if certainly And over that to the a helped we functionality think, transpired we there's said I playbook. developed is answer what I things precise question. by look, that been SAPs six pretty way, manage really robust that's these But, high as can eight control we one sort I'll last level, put in place we is very a together, to how have improved. and at put Shaun, have months, months -- what expenses. guess, are these

have the until look, not color, to science to off But, the at where you operating precise please you we in really going. levers a same we number, add in to it's volumes. little expense order because a understand place put things improvement Shaun, hold know can to time, we to revenue want ahead. if continue in But control go the on OpEx more this is satisfy So

of the XX%, that and our is and that that's on Yes, right landing we we're of And will playbook, to the at how of be anticipation north $XX necessary. have how the world which that targeting the in to view half to we're get because latter right, that of as in react here, is I medical kind million mean, the key to what $XX the year XX% we million again, recovery, dental based get XX%. we to first-half

discretionary type QX, travel your obviously right, to expense. any other expense very, around control strict very base includes point, So expense very, on the and of

of we'll And on volumes. that on sequentially the headwind, of QX round took. you should from just then controls full that necessary, if back so, we $XX very, numbers, given off get coming you But do and of react with just million are tight that benefit continue raw coming million restructuring it, And $X we show of roughly very basis, back. quarter from have again, back a to to over the reiterate slowly little

Okay. questions. again Thanks taking for the

the come Company. Matson at question Mike from will our and line of Needham Gentlemen, next

thanks. Yes,

questions on Cantel had just X.X few a the I So, program.

within I that create force of business in -- create sales the call mentioned the U.S. a that and you’ve items. slides you’ve a the medical think capital So, procedural the and on you’ve sales taken kind

I the maybe categories? things sales as familiar numbers. team, relative hospital a in to you not the to big just those the selling did not But force is the can maybe comment know currently? sales any think they're is with? a risk any have any probably And going size then how now And on you I having both, you're disruption there past, that for force separate ASC of team? of give that each of some from

this Mike, Peter. Yes. is

reps, ASC U.S., bag not eventually and we're the -- the focus with the the of ambition terms metro give in a to you where ASC ASC starting, eight the going In dedicated tell so and to targeted that's for you that, we've just top XX hopefully, the full I'm largest regions cover team again, size, regions. and I'll that natural

with to that benefits concept So, large bag multiple again, structure product the single an a full sharing the with a left expertise our in the the obviously sell territory strategy further account solution capital us was territory, reps, or knowledge. of called past, of what it opportunity the sale. But rep really we was pod

drive today. full migrated and dedicated piece the is, have really is share we've solely hospital key better to So we reps partnering CCO the that pocket hospital, on the achieve customers, bag the to hospital that with relationships to clinicians with the that CADs side sale change the in strong to

were couple here up headcount feet in And relatively proactive fourth a mix our quarter, basis full to total late a bag. of U.S. pretty was And be sales modestly we with training with heads, is familiar the were people might street, on we the and flat. anticipating the risk, more structure in to the So that terms going the It the of teams sessions executing quarter many on change. different. the third in of get far it's but

and August training and that it obviously And already and So had the continues September. started in in July before June. reconfiguration here

turnover. reps of XX% the about best key 'XX, the terms probably In we reconfiguration in from of takeaways the we our our of what It's talent, saw fiscal kept one in entire year -- June. as reps

time strongly end the 'XX. the sales required day, to we team the and had people successful from kept the and share, be a very we best that in team in the perspective, lion's we feel here of the spent at to bulk industry of So really retrain that

you thanks. COVID, to prior to new cadence. the had product then improve And trying Okay, talked I about know

two least cleaning think at one were that and a new Buddy there think things have I Plus. I you medical and valve, launched, you then Scope was the

new on products I any medical you're with any or everything know on matter. And you those products seeing But given products? aren't willing curious talk could you're about, that traction those focused other Thanks. I was happened as to So COVID. if for with maybe that's new comment that investors just that dental, just

the and almost XQ, the us and most fairness, positive. third XQ were gives fourth start so this COVID, the cleaning to of of on right, relaunch out things, quarter Yes, ways in in extremely the Scope the But late window like both to came many Plus second really quarter in non-traditional. the Buddy coming results due adapter were

reality these in programs, potential next in excited two to we think offers be an three the again, happening. just right is over suite, then on has side. at the us power dental the 'XX a they is launched of in amount And which about one practitioners are scaling very medical in other aggressive of our it new folks that opportunity I really now, products driving are Hu-Friedy huge concerned the keenly out, And the as the So reducing to of hold scaler days. dramatically ergonomics a time obviously last aerosol either we where and that's XX push as about eliminating the first-half really, aware or years

of that manual that to you've hygienists XXX% now going So lot a power scaling have got are to to a supplement been used using scaling. to manual as

going that there's and volume, time marketplace, this is be the to so, post-COVID used that into product are again, folks given, again, the the world. a coming we at perfect think home not to run And

Great.

Okay, thanks.

George? it thank to remarks. that was Ladies team final turn additional will from any for or question your I you And for our gentlemen, and today. leadership the audience the back closing Cantel questions.

today, sitting six is the for this pandemic I September impacted all it was individual COVID in It back you you. a the world March, What is and on been since Cantel. Thank of aware declared months transformational literally has we're Good. has can that been XX, a well time how of middle very and businesses. tell here

today, said. to we the And end this going is here in of mission geared have markets really these both up said, talked as in pay as I sit that relevant, I our dividends leaders, to our work we to, And as been markets about more years long-term. for we've us has serve customers. As never

where it manage how kind developing our by a we've on on on on such game is shareholders having even better. ability plus an with execute. could up putting really some competency that and depending that quarter. we again, stepped fourth remains even necessity, into at still topline, that confidence Secondly, gives are we the was want the our to to be uncertainty forth now execute see but driven that of XX% It be and the And, we But our our by at to where go understanding least operations. revenues

So today's in results that, with And on look QX our you participating in time. you few for to speaking thank months’ we call. to a forward

conclude Ladies and does update. all participation. gentlemen, thank We you this today's for your

now And disconnect may the hope you lines. day. of that we You rest your your enjoy