Orthofix Medical (OFIX) 8 Aug 232023 Q2 Earnings call transcript

Ladies and gentlemen, good afternoon. My name is Abby, and I will be your conference operator today. At this time, I would like to welcome everyone to the Orthofix Medical Second Quarter 2023 Earnings Conference Call. Today’s conference is being recorded, and all lines have been placed on mute to prevent any background noise. After the speaker’s remarks, there will be a question-and-answer session. Instructions] [Operator

I Gilmartin. the And Louisa over now at Smith will you. conference turn to Thank

begin. may You

Thank you, good quarter operator, and XXXX Orthofix to earnings second the call. afternoon, everyone. Welcome

Chief Financial Officer, Bostjancic. the are call Joining John Keith me Chief President on and and Valentine; Executive today Officer,

goals and historical guidance During call, facts statements statements, any earnings risks are provide be statements expectations, place occur. strategies, contained beliefs, and other objectives. such Investors about statements, statements to plans, our statements that making is matter forward-looking this All not forward-looking cautioned than we any or that will involve we undue uncertainties. forward-looking will those are in such of including the on reliance no as there assurance

on beliefs on are statements. August such make today’s any of not today, update The call and XXXX. as to forward-looking our We do obligation forward-looking X, undertake we based expectations or statements revise will

could forward-looking XX-K well under and X, that Risk filed factors year factors XX-Q cause disclosed in materially the to by be XX, December as ended future. August call the risk this Form the the as Form our make made XXXX Some additional on filings Factors SEC we statements afternoon, from include results the for heading actual XXXX in different us

wish results of non-GAAP our that financial may order properly U.S. release our investors to results. understand news to the financial to announcing reconciliations today’s In and review U.S. GAAP. accordance measures these financial XXXX measures. financial addition, Please quarter to determined refer we as call, measures a GAAP trends, with will in supplement in financial second today’s on We our refer non-GAAP these to believe various long-term matters short-term to for

At this to the I over point, call Keith. turn will

everyone and cross-selling manage We solid risk merger the you order through the opportunities the us performance with complementary volumes portfolios a dis-synergy quarter had strong and combination. most and afternoon. joining leveraged significantly, operational grew the revenue in effectively marked you, Louisa, January. business to by and this perhaps, Orthofix thank financial for Thank following associated across continued

of these value. in Orthofix teams relentlessly deliver to with is and successes the I’m and second to of representing quarter Revenue second motivated our some The business quarter reported working the pleased market pro was share and reflects capture incredibly strong gains and through I’m The share quarter. consistent high the progress million, team products market to expanded achievements are you XX% commitment the for and growth an distribution with growth above level $XXX eager from X% by XXXX forma innovative constant reach. of year-over-year. currency delivering our

each updates. call, at will For this look before XXXX providing category, John we year open highlights including performance financial and revenue, operational Then color product initiatives, I’ll detailed call innovation commercial questions. begin by channel for guidance your a provide and afternoon’s on full the for

primarily was create of Bone in X organization. which of Growth second by launched more $XX.X of This for on quarter marks increase AccelStim was a XXXX fracture the revenue the focused to million, made an the channel investments quarters double-digit driven BGT the or XX% sales recently product XXXX strength consecutive Therapies, and BGT, year-over-year. growth,

have surgery that also than increases rate more commercial performed and channel channel The year. SeaSpine healthy channels year-over-year, the from spine both cross-selling approved also by distribution volumes. well, legacy Medicare from Overall, benefited mid-single-digits driven spine by growing this through were complex X%

spinal implants X% forma pro exit declined international the global result $XXX.X biologics enabling quarter European and on and of implants, a revenue U.S. in while last in basis. on forma million, X.X% SeaSpine’s a growth on basis market representing technologies, to the exceeded of spinal revenue a on XXX% pro as year-over-year Moving totaled reported from a third basis, the year. Growth

recent less generated has rationalizing see inefficient that continue the and exclusive more larger, more distributors. in we aggressive onboarded exclusive distributor partners We in by revenue allowed strong the us which years, to growth to be

our C, franchise was the million procedures WaveForm the U.S. Fusion, franchise, system better From WaveForm the perspective, fastest in led ALIF, Lumbar quarter. Anterior by launched a the $XXX June, NorthStar cervical within A commercially target market product to and growing or we to interbody In the address Interbody

adoption as Pedicle-Based the Mariner increasing System Fathom see for we Retractor use Mariner system Screw Modular System in MIS accelerates. interest our Pedicle Additionally, of foundational technology with the

earlier Adult As we launched which participate Deformity in more we procedures through Mariner year. system, the this complex spine

motion to Society Surgery, initial treatment or the MX-C is International for device of results Spine abstract study the ISASS. with first symptomatic specific Cervical the of single for X-year pleased from the of of presentation Advancement results associated X-year of a Disc the cervical June we to radiculopathy. clinical The MX public were franchise, at the the preservation MX respect With present in the Artificial use level

and using decreases X-year through were of other post-op. artificial commercially the MX-C SSI disc artificial that in leads that Only rates highlights decreases X.X% neck retained cervical and Index the among study X secondary cohort, is disc were observed disability discs. Neck to scores which years pain comparable in observed available MX-C reported periods were surgical then the follow-up interventions to by arm prior measured the as The and cervical Disability at for

team scheduled matrix in company. franchise, for approximately and this Osteoco million product offering historically which new The drive significantly growth XXXX. product product were fourth quarter, biologics of an been the should market our looking has line collagen not synthetic Within combined which several in [ph], launches forward $XXX to the and extensions strengthen the in launch advanced segment, category additional the we biologics has also expected strong a

quarter, earnout of the six with million earnout to units technologies one placed with via placed Turning and to an in enabling This second total annual the of total. via X franchise, the commitment we of being number XD eight, $X.X placed units in brings in U.S. those the arrangement. XD revenue

segment, basis. growth mid-single-digit represents Orthopedics a $XX a in basis million, U.S. which both growth on our Global reported markets. posted the constant revenue and We year-over-year totaled and on international X% X.X% In currency

investments in sales to leading increased product positive continue yield and Our our results. channel, surgeon our programs education market innovation,

growth EVO, in TrueLok Fitbone Tornado in and worldwide. was circular portfolio, to Galaxy Gemini quarter clinical Revenue XXX,XXX our June, more launched Phantom of by XX of for recently years the than lines. and addition announced latest the recently frame launch use which TrueLok patients In celebrated product the TrueLok led we the we Hinges,

range ahead share to on improving coupled Based our to growth multiple opportunities us full our guidance million, of of raise led taking to of we end be are confidence $X guidance. confident $XXX to business segments, an the million for top-line to progress million environment the of prior an XXXX revenue as low meaningful $XXX high and across our a market ability the macro increase with us, within and drive our date and a in backdrop, year

made complexity, combined businesses and nicely, revenue many P&L executed that The the continues decisions the and teams for organization. progress cash to critical many integration on and generate growth, the of merged leverage benefit and reduce future flow X programs will

distributors actions and of the critical mission include for final capability statement new rationalize systems, many meaningfully the information spinal implementation of and systems, Some cross-selling redundant the and of the and of ERP other decisions implant key those selection to development spinal legacy each to company’s implant company. a decisions of vision the a systems, for

cost also details to are later. We sold and John on identify will and operating more new synergies, continuing refine expense of which goods provide

to the MedTech improving perspective, throughout macro are Orthofix volume capture strategically where market, spine sector, advantage share. trends position procedure a an additional From the within especially is

a our our those commercial that broad increased revenue of out to yet organization, innovative effective case, team And as successful to product I’m from best utilization, of higher coming combined patients Our per satisfies confident and with a the thrilled with across ready an offerings, products and capitalize care. second increased strategy, surgeons an come. and I’m product number tailwinds. quarter is demand cross-selling the is portfolio momentum underlying of and continuum on

our John and With that, call full second to updated I’ll with the guidance results turn financial financial quarter year. respect over for for detail to further the

and Keith, afternoon, Thanks, good everyone.

XX% the the more the reported grew first a basis. for year-over-year growth recently the to franchise $XX.X $XXX BGT double-digit sequentially Keith of forma a which by million. second the growth was X% over of second quarter which This grew on consecutive growth earlier, led quarter quarter million, and pro XXXX. revenue Revenue by of over AccelStim product, and led marks was XX% than launched total As the year BGT, for XX% noted increase prior XXXX was

enthusiastic of very year-to-date are the setting high-single-digit this growth about are for to we we expectations growth rate, XX% for the remainder mid- year. While

XXX product charge second for quarter XX.X% step Orthopedics. SeaSpine with quarter; be and and dilutive decrease we million merger-related non-cash second acquired to on purchase inventory attributable XXXX. XXXX, XX.X% amortized gross by acquired was the of was for than which business decisions; gross estimate SeaSpine of basis margin spinal $X.X to merger-related compared impact almost Orthofix’s up XX.X%, $X.X to recorded gross fair following factors, compared XX.X% the was a connection of XXXX value charges legacy rationalization margin implants the in quarter for the GAAP GAAP obsolete of gross prior driven for legacy in million legacy margin accounting margin, for the Adjusted that overall entirely second the excess points. during more year inventory period quarter the to The was of

XXXX year-over-year pro second We SeaSpine entirely adjusted Orthofix second financial of for in to Orthofix’s is forma legacy that Likewise, XX.X%. increased legacy of the SeaSpine Orthofix’s overall on a adjusted are business gross results acquired basis revised not estimate On decrease gross GAAP the to the the the SeaSpine’s results quarter the that in to gross presentation. adjusted margin including dilutive results. for conform by quarter basis, financial impact reflected margin XXXX XXX the due of Recall points margin. of to

product gross margins second that adjusted additional GAAP rationalization well efficiencies utilization from to E&O economies driven in negatively merger. other by to from charges to gross expect as scale we impacted over set inventory decisions. implant recognize of likely further time rationalization of be the as generate merger-related product the expect XXXX half margin and by We increase spinal is we as

The the in GAAP of second sales with and XX% of integration and from GAAP net by severance in expenses higher second for year marketing with consist quarter Adjusted the of sales, marketing quarter prior driven primarily sales compensation. associated related retention sales costs XXXX second net XX% increase up the the were stock-based XX% a expenses and XXXX. were and is period. quarter in merger of

to compared in XXXX second G&A $X.X year net prior for the prior XX% the the increase in expenses for in million XX% driven higher the from including second of was were G&A quarter, $X accrued of million stock-based in period. merger up quarter of were costs, sales, XX% XX% and GAAP Adjusted net compensation, expenses fees. year period. costs, primarily The as by G&A GAAP retention severance and related professional of well expenses sales as

albeit retention were XXXX, record quarter, amounts to XX% through expenses expect from the employees at additional prior in respective We those second in sales, of GAAP lower XXXX net remainder affected expenses worked dollar year throughout R&D their of end XX% severance of and period. down as the the dates. quarter per

which realization the X% to higher of to lower of were readiness by R&D EU prior GAAP the slightly MDR synergies, expense. for and with driven second consistent the related expenses R&D compensation decrease primarily year stock-based merger-related The net period. offset was spend by compliance, quarter, Adjusted were and sales

in be focus market, of new and invest differentiated X% continues XXXX. on the to revenue expect and bringing innovative we between products to X% to to R&D and end, that on Our

quarter in the of XXXX quarter in second financial $XX.X for adjusted second pro SeaSpine the EBITDA was estimate XXXX, quarter the for On of XXXX, of million of to the period. for basis, of forma results million, that including by we $X.X prior Adjusted million XXXX. quarter EBITDA increased the year compared to second million a $X.X $X.X the second compared

EBITDA core provides synergies and of amounts valuable are measures we our non-GAAP adjusted as to in increase to performance operating expect information gross continue adjusted period operating our XXXX, expense subsequent our We on through year. from margin other results of financial period companies the that comparability against of that we Adjusted realize operating the to in industry. remainder believe facilitates of merger-related increasing EBITDA and quarters

presentation financial back we filed that the is on X-K A news to was the and and gross investor GAAP adjusted updated of adjusted tables in A current EBITDA this margin EBITDA issued gross in reconciliation pro the of our adjusted today. that reconciliation of afternoon. presented forma release report the of adjusted included included pro is we Form forma margin in

million on under including $XX July, June cash outstanding the borrowings million $XXX and now and million of our we $XX.X totaled of facility. million, credit equivalents we have $X in additional XXXX made XX, currently Cash borrowings

cash the Our flows the for and expenditures, a million which $XX.X $XX.X flow, from of includes free cash XXXX, of capital significant sequential was decrease operating second outflow an first the quarter $X.X the million XXXX first quarters an flow for of second million, million Free estimated for of cash and respectively, spend reported included of on items. merger-related quarter XXXX. $XX.X and

a X% As Keith basis. which revenue our forma for $XXX on year revenue pro to full indicated, represents million increasing expect X% $XXX million, XXXX between we guidance now are the and growth be and year-over-year to

in will revenue we patterns and to increase implant we be consistent providing third spinal expect fourth revenue quarterly quarter are seasonality second enabled we later fairly And anticipating from additional revenue. a with the quarter third by specific deployment meaningful While significant of quarter. aren’t sets the the of due number a typical quarter the in guidance, that

are for full the adjusted year estimates gross XXXX. to margin, maintaining For issued range and previously XX% between XX% we

million, from For basis. XX% adjusted EBITDA, year to XX% raising pro the million $XX pharma for to on full are increase $XX million a $XX to a $XX represents the to we million which XXXX, range

realize expect increase followed more as synergies. sequential a We third by fourth expense increase in meaningful we to a increase very the generate quarter in EBITDA, revenue fully quarter and adjusted operating modest

an free flow that XXXX. approximately will the expect million $XXX for outflow be cash year to full continue We

year. operating to to a the the in cash facility borrowing sufficient healthy year, revenue the continue credit continues throughout first will the the spend we under leverage of we grow cash As gain and remainder despite half balance, to we of maintain the that believe have capacity heavy

generating to merger-related synergies the for synergies XXXX initiatives. now Finally, by we $XX goods We to of are synergies product of cost estimates and updating estimates expense COGS to anticipate initial comparison our other OpEx estimated than include million annualized of and million. previously related sold $XX rationalization in more

have spent synergies in cost now with to million $XX XXXX. more we those as is that rate the those $XX than than more $XX on synergy approximately achieve annualized dollars expect We run to exit expected million of to basis realized The $XX of million, an previous higher compared million to total of target estimate being XXXX.

achieved with operational pleased integration We that far are and so very have this year. progress the we financial,

continue initiatives will on and update to We highlight progress our those on future calls. earnings

Wednesday, an leadership host on in Texas XX, Day to and executive plan Investor important We our Louisville, financial guidance. provide which headquarters updates longer-term will at September business

I’d to to At up. to turn back over point, call this wrap the Keith like

been collaborate, of we’ve the dedication proud extremely after the of company of their far, team Orthofix all Orthofix able and months thank the accomplish for closing to like to innovate new do this their which all we personal. it that our through merger. We the I’m and just [ph] creatively to [rally the to I’d relentlessly X And year. so employees make and bold, commitment we and be innovate, this lives earlier of patients, renewed improve our disrupt. aim mission, unveiled to clouding] we the

open point, line this operator, At for please the questions.

[Operator you. question take Blackman Instructions] And Thank our will we with Stifel. from first Matt

Your line open. is

is as dis-synergies And Thanks any got the baked quantify you everybody. a the guide And follow-up. So there related. higher in to is quarter? is you you lost this taking but magnitude for probably to sales then portfolio the I there the the into challenging, Maybe potentially there and appreciate bit? revenue start, afternoon, is maybe rationalize SKU are in Good this dis-synergies way questions. far then for second way my and of any I’ve But Thanks. how along anything rationalization, is that? now saw

Matt. Hey,

so to navigate the share term dis-synergy we any been and revenue to focused with haven’t Difficulty] news, market early It’s diligence. not is quantify, first a through the we’ve So question, we taking risks successfully the seen of respect [Technical the in growing on due much good and meaning, most saw there’s which right? more

The second was… question

there’s the legacy that baked year? have sales the now the you is potential Just portfolio of you of of the for rest And of revenue sort get into lost that as guide rid the on products. whether some and rationalizing higher

Yes.

made of about half a the was about outcome the systems. of first the in and reduce news implant there’s meaningful good of systems. last SeaSpine. a spinal right? early overlapping the about was go-forward one And half the balanced legacy quarter from And be it the decisions So really the to reduction of systems pleased the that’s from legacy that will in opportunity rationalization we’re by Orthofix those So an XX%, is

with runway lost So and for portfolios careful revenue, we’re a plans plans. forward We’ve longer sort product for – got both short-term to of transition potential then kill while short-term rationalization. very of immediately outline moving there’s that being and term

that rationalization distributors without put as look any that goal communicating is the time opportunistically sales for survive surgeons over sure deploy our we that activities to So attacked good systems to time. sets And make and existing with we revenue. take to those that’s do going that additional cannibalize to growth the plan losing then have revenue of and to to a generating first to aren’t going

feel So we’ve the plans outlined. confident with we

years. is goal that get to of The done all the X within next

first accelerate systems then sets sooner years. X going as where we’re be opportunistically and we for possibly. others those redeploy and foremost will how going again, Some to look just at others, sets rationalization to rationalized could to growth But, the growth aren’t than as take much deploy that

synergy of an sort that. obviously really increase to ask in I’ll then appreciate just And follow-up, cost the hear expectation. nice I one

be you I you perhaps hope gross an give and of you or what And of incremental the margin it here, mentioned give that savings example in beyond of you – you’ve some us would us Thanks. continue heard think the on side example maybe cost your may of to cost uncover sort an goods, as above that out? Just just found. opportunities incremental laid dig just I

get And the we those of be. Yeah, recall continue to our targets, COGS was that there’s of each operating you out a as on the planning. possibilities a decisions long focused we just unit million for goods product our was cost didn’t the to first good $XX But through definite synergy when what upside strategic might year-X really sold, the business critical range by put synergies, we determine rationalization have important because be would of COGS synergies could really step. what first opportunities the expense sense as and one

systems, of made So saving by the sort the product those approximately COGS coming right? increase to There’s that surviving maintain resources of the purchase XXXX is higher supplier because we’ll volumes. million can come we’ve Looking volumes of around get audits, and of fewer supplier decisions at needed with cost cost now the base. rationalizing bulk legacy rationalization, suppliers supplier we lots $XX those of sustaining our of a suppliers fewer rationalization, for those to to systems our outline ancillary that increase synergies that critical and from savings line, from benefits expectations

But investor wanted talked think increase we’ve on opportunities So about prior line, we calls. there’s of the the community margin more of savings that to found, goods sold cost which update opportunity we I particularly with should drive the ahead. certainly

a thumb let’s take follow-up have number of one on, terms of this cost an drop how to about, outperformance think sort a example, rule just sort of again, synergies the line, framework reinvesting? through versus about of Thanks. drop about in think I guys rule apologize let any as of I how we reinvestment are to you’d you about thinking And, the much there that. higher on of question for much you’d bottom that. thumb think Just versus line as across more any again, Is of through sort

kind I into. Analyst bank further we’ve much other how that of able we’d to process, strategic of Yeah, of XX, we’ll Day mentioned And the synergies we’ll where think, onto as part we be that take those we’re to color for the versus deep doing provide got some in which planning September scheduled reinvest opportunities. that’s our

we’re So at certainly looking both.

growth come activities, of will will efficiency at be both call. other provide them or redeployed to we more scale investor color financial type the that on then some And and go economies so guidance others that towards as or to of long-term bank

you right. guys. Thank so stay We’ll tuned. much, All

Matt. Thanks,

with our will next from We question Zimmerman BTIG. Ryan take

Your is line open.

This Hi. is Ryan. for [ph] on Izzy

salesforce been How just for process? have integration And So far? most one this impacted has the what me. progressed challenging of the integration or most areas by so

And Obviously, to merging is as lot of getting as speak, place, of and obviously getting think, what in stability. both to integration make existing new place. was the There’s we sales management on first started turning I most there’s step did going that first just sure a really structure over we in we relationships is all relationships. the

stability the teams. about good of feel the So

we think through some having actually have instead of I pick and forces great of to joining examples coming distributors opposing already together forces.

few continue the like to early done think, as will something I a going is and a over something year quick quarters, always that. and of that mapped to X of But So, This progresses is we’re to, course in good as the integrate year out. this a play. we’ve formula and be not have next This rationalize kind place well. we

Great. Thank the you for taking question.

take And Thalmann. will with we Jeffrey next Cohen from Instructions] our Ladenburg [Operator question

open. line Your is

Hi, Keith you? How and John. are

Good. John? How doing, are you

Hi, John.

couple our Just from end. a

channels you’re seeing talk that And XD could selling what’s that’s products could your more where being you the the conducted complex of in in complex of cases being that ask driven and being from us, in and So to the nature? some are cases physicians it for more cases, and about become you – Orthofix out? by sales about complex? or that Is how you again specifically stratify some driving the of complex the involved hate the called

on the tell we’re XD. portions system with complexity deformity make highest the XD’s and often Certainly, sure the radiation in to uses some of has a and that is you, Jeff, radiation we excitement applications, around I’ll area a those advance really that patients. lot of our And in of only but of we’re forget for interesting. doing we’re our continue nicely lists it’s momentum seeing not of of integrated care advanced Mariner cases radiation deformity don’t direction, in getting deformity Part or Yeah, good limited kind it’s more in we’ve of is demonstrating what the overall.

the choice And the us great Mariner of with to from BGT sector. the of XD product expansion for to preferred ability if is has perspective. course, opportunity that a a be created think greater I then, the that line the And deformity the for combination two continue opportunity needed and of this greater and patient awareness for there [ph] in

true care post-operatively case treatment continuum So that [ph]. help a plan BGT. have OR we’re if help necessary it’s modality, an excited in case, the assist then, to the can And integrate that can we we is with course, can of we of additional

more Okay. Got one me. for And it.

become yet and beginning collagen if AccelStim the call at quarter-over-quarter could BGT? the recap Thank that? its did sequential was secondly, the biologics, And material Has the matrix. within What about that with call us you on you out Osteoco, little XX% a for of growth. talked You status you. there, then

Yeah.

place getting will and this I excited to launch, one getting it certainly everything answer and organized. second year first. be but going plans and That’s The we’re later about

handling it the been really fully exciting think that We’re And to sure the excited that been to ability. has just line this properties features has we traditionally an haven’t for that able going both penetrate. synthetics. that area we to be product that make most legacy has want that are the like because marketplace those kind particular that for We and companies of

was question and around AccelStim. first in on The

Jeff. meaningful base. part a it’s a overall dollars, of meaningful not It’s year-over-year revenue still the part growth Yeah, the of

well. So pull the as good room PhysioStim of helping news for and of is to think on through some AccelStim, that’s part create that the there’s I lots grow franchise

So…

sales and momentum that what’s Yeah, of and Jeff, I for more was to the meeting, that product beginning we good focus, the year, a obviously meeting, it. that, that obviously, love that we think was with on seeing our see more had was a at too, continue focused is marker and post-sales a

ahead So we’re the that. certainly that’s very excited opportunity uptake with and about the

it. questions. Got Perfect. for Thanks taking our

You it. got

And final Dave will JMP from Turkaly our we take with Securities. question

is open. Your line

good Hey, evening.

Hi.

maybe called it Keith, I growing of…Hello? component actually think the you out, fastest was cervical the being

You’re lost back. We moment. a you for

said about you cervical? So

I that’s my me, apologize. bad. felt could so nobody I like hear

fastest spinal think lumbar think in called we and being was even cervical cervical of the I if spine component look out how is, if business. that you the could million to of maybe wondering growing relative as us you base. help big at sort about implant franchise, I maybe $XXX that

Yes, I average The know lower. posterior you biggest per is often largely think the that billable are procedures revenue cervical. case, cervical as or an opportunity highest

have we the the excitement specifically line think a I though product on for SeaSpine. legacy was cervical is it newer portfolio

making base advantage now and lot broader we we’re investments sets take of sure distribution fusion range. that able promote to putting all and a being cervical can and getting the of we’re so excitement And of a

is data. to and have meets again, it preservation make we fusion that That aligns But And a we one seen to newest that enough to it the have launch have broader that good portfolio X-year obviously, sure then area. think X-year and elsewhere focus area market. the I we’ve product at the sets is distribution on we that, what motion an enough support of in that range properly as But, in mentioned, nicely about, industry. we’re cervical, the really cervical and addition nicely excited data the strong to I with in

I of on Should together? quick sold on and Stim maybe your standpoint franchises about be to the you hear spinal guess separate sort selling Bone side. thoughts as implants how Therapies a obviously from two growing at I that channel? have those look if you managing thoughts Should on guess plan or I’d you forces Growth Keith, your your love the follow-up, well, about, any spinal specifically

couple and ago, actually review strategically a quarterly looking We it’s something it’s are seen had weeks a more more they have getting very an the that I’ll local team. been they’re weeks they’re been as in Yeah, we relationship teams team with cross-selling are ago couple with a representation. doubt great. as do trying engage patients to nice that mind, also just out say fitted and taken continue very And unique I of but tell only engage just distribution days are of to sure without of in their them refine. that surgeons, that at the our you they our group with synergies involved, XX care the business for and has and involved. there doing close a is BGT to Keep job a When that have spine not more incentive of to making there’s new channel very of. with

an And so important there is handoff.

And was at on going referencing see much how co-selling going how cross QBR is so on. and to is much that great it

to And now think opportunity some to BGT that large anytime team’s really nice to in forward clearly, got that or and incentivize very drive that continue to last year. introduced there so, there’s have team is continue exposure year a did because plans an that that to that’s expand and been keep I late mind, last

Thank you.

closing the Keith at no remarks. back call now are there Mr. to I Valentine questions turn this further will for time. And

the this and interest great We look to you for deliver again going momentum us performance in the afternoon since Orthofix. merger Thank Have afternoon. to your again of thank forward leverage will and impressive forward. evening, built more XXXX rest and joining we’ve you a for even the

Ladies concludes today’s for participation. and and we you your call thank gentlemen, this

You now disconnect. may