Orthofix Medical (OFIX) 5 Mar 242023 Q4 Earnings call transcript

Good afternoon, and welcome to Orthofix Medical's Q4 and Full Year 2023 Earnings Call. [Operator Instructions] As a reminder, this conference call is being recorded. I would now like to turn the call over to Louisa Smith, Vice President of Gilmartin Group. Thank you. Please go ahead.

everyone. afternoon, Good Orthofix the XXXX Call. Earnings Welcome Fourth to Quarter

today and Financial Chief Joining Julie me Massimo President call the Chief on Executive, are Calafiore; Andrews. Officer, and

forward-looking and During beliefs, that facts strategies, our objectives. provide are any or than be and we including this historical making expectations, statements, guidance call, those of goals involve All uncertainties. plans, earnings risks forward-looking statements any other will about statements we statements

there is update are occur. such March as beliefs undertake Investors today, will X, of not obligation forward-looking contain call matter our undue revise to The today's expectations based forward-looking are not we will any to assurance on reliance no such in cautioned place statements make statements statements. XXXX. the on as do or and on that statements such forward-looking We

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

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

why fundamentals our exceptionally this I'll and and thank is talented has has change you, and by remained this for the creation. part begin I but organization. company joined as believe Thank saying my CEO. Orthofix. Orthofix's afternoon value executed great the The for I you, been of leaders strong us employees BIM future Orthofix business This our strong, through fundamentals, quarterly have impressive have be well. months, for potential company in XX earnings call committed to Louisa, Yes, joining and and our last everyone,

We Fourth was accelerated predictions to leverage successes, team, be guidance, part our against current Orthofix work sales momentum our quarter future performance our we and no distribution we opportunities. strategic pleased exception. so unlock momentum U.S.A. channel. network executed past our also Despite the and value-creating in gained expanded otherwise, and on that I'm initiatives. Spine of build to

During the more financial the last having want is in and X opportunity about turn and time to sights solutions, company year. some admired had some I more the early initial our performance than a call spend front in-depth our we encouraged I have the on affirmed this beliefs. the results. to to long-held Then highlighting chance and look weeks, stakeholders Julie and to observation joined and value speak quarter my about creation areas growth ever throughout at innovative and fourth I'll over the us. its I've business call provide and prioritized sharing for my Orthofix that of to many those thoughts

of the this deal combined strong model. competing. patients, how clinical operational improved where internal growth company operations fundamental to evolving as strategy well Spine, and in a of transition, delivering First Biologics ability needs confident foremost, that our great recent throughout demonstrating I've spent remained are fits into of periods I observed have surgeons we There Therapies. understanding the Growth time and our company misgiving across about the efficiencies. Orthopedics, Bone should while no with serve and I'm be also business the has the stable Orthofix durable markets as of

We within relationship orthopedics. specifically performed and spinal with a partners. our have market market and consolidation Disruption throughout and well in the spine XXXX, share created maintaining gaining commercial opportunities

continuing to distributors, of we our We existing any build network. these is have high-value optimizing I losing sales want Orthofix to opportunities that are while out relationship channel. taken advantage our adding

In X% Spinal quarter alone, fourth U.S.A. sales of were to alone. new the our attributed Implant distributors

intact. orthopedics. create merger important that it's combination our a portfolios across to betting compelling note Orthofix and together business Additionally, product to class remains thesis We complementary uniquely platform generics spine

value the We cross-selling I within capture And as already have a our are benefit portfolios inherent specialized market. being to leverage well positioned seen of whole. to able

our global continued and the XD solutions With the real-time FLASH that towards the highlight navigation in solutions operating year. growth partner the has space, seeking in surgical will next-generation In plan the with requires the data-driven information a flexibility in XX% over and surgeons system. is real-time translating us fully in a of upon Spine the leverage surgery foundation by detecting adapt. to within progresses and investment, to reality remains leader plan a this data-driven unique as Orthofix installations XD want in its been I and segment establish Orthofix advancements an tools spine increase technology to we spine. past orthopedics and group, changes for hardware in supported our build third, to choice

the EBITDA certain of portfolio Furthermore, substitutes. Biologics gains ultimately bone X business our created preference merger unit, between mineralized is bone products SeaSpine Biologics The procedure Biologics synthetic Cellular breadth significant the meet segment. enable the and matrices, in the unit for and the most cash a best-in-class matrices capital-efficient substitute requirements. specific of to company. Orthofix and The driving with bone also Orthofix X and

to data we platform overall GPO strategy. our did the subtract and an retain synergies, diverse spine that remain associated distributors. part of Spine relates Orthopedics Biologics access with Gearing to this and internal IDN As offering a broaden or helps clinical

Growth to BGT, market or share. Bone the Therapies, to well take business positioned this growing Moving is continue and

fracture indication cervical the LIPUS PEMF are only and healing. company solutions both industry's offer the have to We for and

and acute cross-selling our business through propelling opportunity solution XXXX, is Spine with to trauma has the and AccelStim an our Orthopedics support franchise BGT In addition, to portfolio channels impressive market. of strategic complex internal limb sales to the pipeline the accelerate pediatric Throughout correction. is we expect adult deformity the the external deformity and to we to It for specialized and and potential its the just correction, States. reconstruction of United limb tap highly positioned solutions into uniquely and are starting in

Orthopedics out recently products. have planning for with Additionally, we use our platform software rolled

the products We across expanding of to many incorporate will platform be segments. application our

the Moving for priorities X to XXXX.

innovative the capital Orthofix. to profitably. and to First just we do Throughout off, our have efficiencies engine company the A been part merger that. combine of growth grow XXXX, with of SeaSpine's is it mandate the grow key thesis to able was

managing We quarter, cash to have cash sequentially flow we positive. are flow and every improved effectively exit XXXX adjusted EBITDA

value. profitable force that be will shareholder in ultimately creating a a will believe We key be differentiator growth and driving Orthofix peers for our amongst

We will second not to focus, and area our of Orthofix balanced portfolio we of one accomplish subscribe strengths to use mindset, and platform a intend my to the key growth greatest of

sales the stated, segments. As second leverage across and further to our channels priority product all is technologies

commodity platform key we further entire spine corner of the itself, company. not We unique occupies as company tend end nor and a driver portfolio orthopedics pure-play share the market of market a a products highlight gains. of are to Orthofix the

preference image of The positioning long-term In is an how surgery important capabilities for of with addition, and Adding sustained Biologics integration that, of spine our application the we to to business, market success. growth. redefine within XD believe aspect in and orthopedics indication surgeon us a fuel future increasingly we in of the guided for spine Enabling growth critical Technology fracture for orthopedics. is across and and layered spine

complementary evident. nature portfolio even becomes The our of more

other growth third of cross-selling is And through together Our the create enabling finally, priority work each to improving commitment and best-in-class our products innovation. offering, the a to opportunities. performance the

that to emerge As I've is we expect selected our key the where hardware, contributor a a engine. just growth to the combination our XD as spinal in XD formidable strengthened in our with we market segments, spine deformity, envisioned of noted, especially position contender. We

gain. continue growth and franchise. high-value recent market seeking share for also AccelStim to by profitable years, BGT the resources indication will in commit We growth unprecedented we structure to more that decision heavily a initiatives developing invest the in the In to enable fresh

X consecutive BGT of to is quarters direct growth investments double-digit reduction of the in result and delivered reallocating business. a have a We high growing

the this complex limb the at FITBONE well Similarly, driving norms for best-in-class platform a and position orthopedics and platform historical should market-leading investment The business. planned pipeline correction. current the in business to deformity above growth in the within take

market where invest to strategically our behind resources drive entire continue deepened and segment bottom products line. we growth can will across put without the portfolio and market We create above the

on will is being share key call opportunities into I the in updates fourth encouraged with chapter I the next findings. I'm Julie about and last very as and Orthofix initial meaningful now several year very that, performance able our by months move we full solid pleased my results. turn detail anticipate quarter With our the increasingly on to further the over for footing, and team's of to story.

Like company's and happy look very this Orthofix I'm to you, future contributing forward Massimo, Thank everyone. success. good Massimo, at join important the afternoon, and to to time

to reconciliation like to published regarding GAAP earlier our results. begin, of our release results, you results including I for press these refer Before today a remind please to non-GAAP information I'd our to

forma revenue will discussed basis currency year-over-year be changes unless noted. growth constant and a percentage all Additionally, a will on pro on be basis rates otherwise

of combined all a pro in results prepared in year will of adjusted I the to be on to results will otherwise comments and Orthofix that stated. prior on be non-GAAP addition, basis, and unless as including a SeaSpine In operations forma XXXX, comparisons referred my basis

and impact growth. in the forma QX, of to annualize we will longer no pro merger refer the Starting

year the provided with net track, remained to call. our finished strong call, earlier range pleased the end and quarter. Orthofix noted of performance sales we As quarter on were above Operating the the high deliver fourth third in in a

provide the through my and our review of year results units XXXX. business I'll on each for For quarter as as go commentary, for and well the full guidance financial

in XXXX, sales year. company fourth the $XXX.X X.X% were quarter of Total up prior over net million

X.X% $XXX.X exit quarter net grew XXXX. currency double-digit growing X For market. the forma and occurred quarters revenues million Therapies order basis sales from to fourth growth marked full growth the franchise. Bone million, full consecutive in delivered quarter that for the XXXX of XX.X% to year for BGT year pro for The normalizing XXXX, QX XX.X% constant prior stocking European a $XX.X and SeaSpine's Growth the the of on onetime third were in

was growth channel. spine by the performance in This driven both above-market and fracture

We AccelStim investment just a is market our in $XXX great in channel the performance a continued the are we of have fracture The market, growth products million-plus market from focused fracture started. for and XX.X% with sales with quarter. seen the fourth getting and

quarter this year X.X% X% Global grew for the and full Spinal and Implants, Biologics Enabling Technologies XXXX.

mentioned quarter, revenue U.S. quarter will quarters. SeaSpine's XX.X% metric onetime As growth when occurred a motion European order normalizing is clarify, the Spine stocking that exit for providing which grew we that prior To in from Fixation this to in above, preservation excludes XXXX market. in third well rates. a this be is above market of future the

was focus on cross-selling. As cross exclusive QX, the we partnerships, saw by and in performance contract part more distributor increased driven access in large an

XXXX New partners July since U.S. revenue contributed approximately from distributor QX. in X% Spinal of Implants added

been our are partners. key able build pleased maintain relationships to have and with we We new existing that distributor

driven the as business growth, and year XXXX programs. by and investments distributor was growth solutions our the year. new X.X% led well channel performance in EVO surgeon that expansion our fourth made XXXX best-in-class by with The Full X.X% and Global and full grew were sales quarter strong the in with as education trauma U.S. and for XX.X% TrueLok Orthopedics

detail quarter, improvement Beginning We to QX on XXXX. line. some for the QX with a sales XXX forma non-GAAP gross over XX.X% basis moving adjusted the Now pro below margins. our delivered point

XX.X% non-GAAP mix. for were year, to due year compared basis XX.X% pro adjusted the to increases These forma basis. full XXX the full XXXX, For product on gross a a point improvement primarily margins were

available. not operating in between expenses SeaSpine, and and of differences to Orthofix pro legacy allocation forma year numbers classification prior legacy are Due methodologies

As line to both and for item GAAP will a of GAAP my comments on basis be on this, operating a result year XXXX results expenses full prior the for QX compared year.

is commissions stock-based year for GAAP XX.X% and XX.X% and to and of and of by compensation and severance retention net the year expenses sales result with integration-related the marketing the were full objectives. quarter full primarily and as and The quarter sales increase XXXX, QX compared for expenses marketing merger of the respectively. the sales full XXXX in a for associated achievement fourth XX.X% and cost certain sales of driven higher sales XX.X% year net for GAAP

for in merger-related and and of a general decrease were XXXX, of legal of same The by partially lower GAAP, XX.X% due from synergies, costs, is prior sales merger-related level down year. stock-based and quarter. a administrative quarter to reduction the XX.X% investigation QX costs compensation net offset expenses onetime

For year, increase costs. sales, prior increase the the and net legal integration-related general of to were to XX.X% XX.X% and expenses in merger full merger expenses and share-based is the for GAAP and up administrative and due investigation due year. compensation from This

full XXXX GAAP which R&D flat driven compensation expenses. stock-based merger-related quarter expenses XX.X% GAAP year was prior slightly by MDR related were R&D which to year GAAP XX.X%, prior primarily by synergies, the X.X% The to decrease spend realization of R&D compared for year. expenses the lower readiness for were higher quarter. the EU to offset and expenses in were for was

by merger was achieved year. payment offset retention the and synergies the to development expenses that Merger-related were related milestone during severance and

quarter, of increase the million pro on $XX.X or sales, EBITDA forma a adjusted net a QX over For was XXXX non-GAAP basis. X.X% XX%

For by gross higher adjusted the full margins synergies. year, and a was X.X% EBITDA of sales, net million improvement, XXX or point basis $XX.X driven merger-related non-GAAP

drop a through on incremental represented revenue dollars. This XX%

results these cash From impact end we total million. restricted QX, by seeing the encouraged cash our materialize. of of standpoint, the $XX.X including synergies at are cash are as We approximately was balance, merger-related a

subsequently million $XXX fourth end an into $XX this January as a had under the And XXXX, During financing million in of we the arrangement. borrowings additional the We XXXX. entered borrowed arrangement. year, we quarter outstanding in X-year $XXX of of million

our strength and we quarter Overall, time results. our portfolio. into realization We XXXX. a gives quarter points The expansion the This adjusted us the XXXX to our of and growth growth resilience cost as during saw transition synergies. revenue with with improved as in with are business deliver basis all across fourth of exited the move ability profitable XXX pleased lines, EBITDA showed sequentially every we EBITDA of year of business confidence adjusted demonstrating we

XXXX on to moving Now full guidance. year

full net year-over-year X% range XXXX. are occur currency guidance constant note, expectations for year between sales rate implied basis. We $XXX foreign are for changes that current to and Please of rates not representing X% million on to on account throughout providing million, and exchange our a growth based do the may $XXX

EBITDA we million. adjusted EBITDA which non-GAAP for million full margin, to approximately XXXX XXXX midpoint the drop-through years, the the At of is expect X% represents year points XXX adjusted deliver to outlook Our of represents close guidance, XX% improvement EBITDA $XX our a over non-GAAP X margin revenue. of $XX From and of EBITDA post our perspective, incremental XXXX more first EBITDA adjusted merger. XXXX, guidance non-GAAP basis than XXXX

is post date the result is that the current progression wave $XX It market. complete, in have million in in represents merger. as synergies of the European implementation the $XX will also worth delivering towards ongoing and This remain that adjusting of noting we annualized to initial X achieved million and cost synergies we out years is we longer expenses of a to the MDR-related expense no be the believe close

fourth And positive. exit commitment finally, we our being to cash quarter of flow are reiterating XXXX the

While I not the comments with business do provide to providing we in are guidance, you quarterly cadence assist some our quarterly performance. of modeling to expected directional want our you on

below growth XXXX. stocking slightly range of QX expect to revenue guidance the timing due and be our in to We QX full year orders

due prior we disruption quarter. highest as growth closed year reflect Additionally, in year-over-year QX to expect the we rate the to

on individual the the on line specifics some P&L. for items Now

on First, margin. gross

the with are we in in margins XXXX. range, XX% to XXXX, line expecting gross For be

cost and decrease XXX leverage through approximately on to expenses points sales basis additional XXX incremental operating expect synergies. to We

the to million with to range compared Before income the full move XXXX. $XX $XX approximately $XX depreciation million. the items the line is $XX as EBITDA, I compensation in million of assist to expense, line, be for below in outlook is anticipated million you operating you of to in $XX to modeling to expense our we year million want Stock-based provide to with XXXX for range which

the operating let's touch briefly below line. income items the on Now

approximately for other expectation $X quarter. per and interest Our million is

expect we the XXX our year margin points the first be of to more weighted annualize as improvement EBITDA of We prior year basis towards adjusted synergies. half

the remaining stepping touch positive. to on and QX bulk half down and QX be the expect to our To breakeven front-end margin loaded We during exiting briefly progressing used second year With on be of focused investment synergies we improvement the with be magnitude QX. of QX XXXX. cash anticipate the with gross realized toward cash, in relative of to

of portion capital we we and drive merger-related XXXX, significant Spine driven investments instrument and A and for by expenditures. $XXX U.S. aimed outsized in realizing. growth expenses above-market of was Fixation, are operating sets onetime In inventory approximately which in million cash to this

in utilize flow to XXXX we these underlie that to and our ability cash drive Our beyond XXXX assets growth positive. belief will exit

At this for open point, line questions. will we the

[Operator question Stifel. Instructions] Blackman from Mathew will Our first come from

your start And Massimo understand help of drive ability from what's what's And like terms to et and I've in marching one orders divestitures, M&A, Maybe not got Board? Just cetera? table you, there? help with follow-up maybe what more the just your creation are for value Julie. to the any then us here, on

for the on to is marching value profitable now question. Yes. Look, focused the orders right for create you, growth. Thank the Matt, company

lot really the So my creating, team Orthofix market There a is that take a of like company. on and out have just and not opportunities I spine full driving accelerating the company focused would now care of growth. be let's say, there solidly we and portfolio right is

BGT, a have to levers use Technology. of Biologics, lot We Spine, in Orthopedics, Enabling

leveraging creation, we working have value and growth a great the profitable XD. remarks, my in said in leveraging innovation, I that on full what keep technology reiterating portfolio So

now, focus right on So execution.

I could MDR at about just then I'll Julie, and to queue. Just XXXX way sort the at it in take general. think if about that back or mid-$XX we appreciate in And should And right I be that. And 'XX in million. tack helpful guidance these should meeting looking of we correctly, basis right? philosophy if that Got that. Is the that add and an you there, sort approaching some could of guidance does future, And on it? looking you'll Is frame I'm ranges mean on think have million. $X.X it. the I this literally? be was back describe just it maybe the where in conviction them ranges then you get provide Are high upside, ranges would your there's help us and no, if apples-to-apples

Sure. expenses for XXXX Thanks, so Matt. Yes, $X.X the were MDR million.

ramp expect to down. We that

our it'll to that's around of business. think is ongoing in down expectation rate I that see ramp million, the that the run and $X kind we'll

included think EBITDA adjusted if our So that, you about guidance forward. that's going in

in. In deliver, We terms a we're that guidance, that we've and of philosophy the believe at confident commitment. that's set we guidance our on number can

I Massimo cadence be around we're job. that both the But what the seen in as confident We we've months provide said want we've pipeline to also parameters prudent. it. execute and X the we and our well. against informed to quarterly tried we the estimates are I've where are can believe into it But

next from from Our Ryan comes question BTIG. Zimmerman

okay? me, hear you Can

Yes.

Yes.

of say. of on double-digit I when I the appreciated on about want Matt, numbers. at on within quarterly about so one all expectations. pacing business kind segments first First that, with of bunch color kind the here Julie, of kind But low when I questions. Orthofix, versus SeaSpine Spine off, up I gave got to really think a congrats you of but and want of Orthofix, kind start maybe specifically on I One, type follow legacy first you up earnings to segment I should your mean, legacy was and quarter we SeaSpine forth. And business think putting the call,

appreciated. in BGT the you're follow-ups. Spine? to X%. be a kind be or expectations couple of wondering that versus Any I'm And for And guiding Core X% kind it Orthopedics splits have out of of there then how your growth, commentary would I terms of

Sure, Ryan.

about guidance today. growth U.S. breaking the not product at speaking, Spine quarter. market, think specific XX.X% But out generally we're Fixation line I we So our talked for

good we breaking not And we're so feel really item that. guidance. specific about But out line

enough. Fair Okay.

chug Sorry, Massimo, in? you to did want

no good. No,

rolling. keep I'll Okay.

And question, from, that worth committed profit I of it to frankly, do there's coming business to And you that of company? lot XX-K, not growth another look segment So And can to a from drive Why which from business about the remain ask most a can the at want segment you is point? what And that Orthopedics. in coming if perspective. where given profit see the you it profitability. this to describes profitability the keeping higher? potentially is is

if a right Orthofix. think is need is great this the on of we thing you structured, for is high. foundational are skewed that Europe, remember to look, how at we organization. one the very, -- question. totally it's Orthopedics But Yes, DNA maturity now, in very And this is the business And where of level

have I front see where market share. a we in an we think small of United what in enormous very States opportunity is us the

investment is focused right are there specific not the sales the we a making market lot now innovation. and around just also but of So marketing in that

that share United should let's States what Europe. and between you So if start expect time to the with the market say, over market, you

it market, States see you much much a faster, automatically will United the profitability. With grows higher

of very So is have of that segments. are we in one all different as opportunities Orthopedic about excited the we said, of the market I all them.

you like appreciated. be call And Where of opportunity maybe, let's follow-up Matt's question. could if there Understood. do one more costs? Appreciate little you operating look manage squeeze around say, X down Euro the kind XXX And XX, think XXX those a just your range costs at MDR points, to I it's bit. that. kind dropping a thoughts to of have basis I I else expenses come in of just in, to Julie, feel it, would if

Yes.

the XXXX. from in we're was last majority So be head annualizing going of count. to talked coming we still And about that that that we year synergies achieved our

XXXX or in go as see we'll -- that XXXX fully annualize me, So we excuse those. down

G&A -- it's leverage of just to same to addition, we need R&D revenue. part rate, it holding where don't In our we incremental revenue growth and that flat the were at creating on believe is invest

So we're at leverage looking that's point. what our for

Instructions] next Cohen Jeff [Operator from comes Thalmann. from Our Ladenburg question

market segment. for overall as as actually you your Jeff. I wanted your is Do drivers the to you This market to Jason rate are describe talk this shout the Can we for that a and BGT really of it? previously Destiny the special is him some of a to growth quickly to adjusting really and on see the grow asked, about growing promotion. you how within comparing getting BGT orders, out -- growth strategy? Are part central is you marching helping

question. the a also BGT we're perspective in are from this Like if this for segment just have But Look, business I'm divided, is Spine, market great familiar many but that advantage have see the we from with. we technology you sure we about reasons where very an not the that infrastructure how excited perspective. is leadership

cash. the Jason what team convert to up did to system we has I built of the think that have and all a orders great

market that bring So with we that, on the the small share. very have where okay, very markets. now how can focusing we good right on And fracture opportunity we now, are this then different a have a idea is all right know-how market we

EBITDA the from so gross margin you growing above keep we on us market focused see of that let's and BGT. positive will well really all the say, the and And fracture, bringing, see

Spine focus creating -- say, focus value great let's additional great a market now. say on right let's a on than So

Excellent.

especially on could count affect Julie, give Okay. us appreciate head top And and that? I'm really if the on for impacted how and the synergies, wondering around you adjusted current I EBITDA. then, the one just it the line update will synergies an you. the commentary how

the and think much expect don't impacted head I of count taken we last this was most more to So head impacted count action year. have count head or more year,

in I refer believe, our head our go K, You count there. and numbers, can see

from next Wittes from MKM. Our ROTH question comes Jason

muted. I you me -- Can I apologizes. hear you was now? Hello? think I Can

Jason, yes, you. we can hear

versus look Is goals I good. of, thinking Just is by speaking, growth Is or stated sort -- this pretty which numbers you heavy a just not growth when you're just way business about giving but of combination it high think, it? the started, investment. profitable trends division, -- generally conservatism line-by-line Or know conservative. your were -- should do I be reflection of -- with you this the that the just conservatism? growth guidance a somewhat look growth But Massimo

Yes. I mean, that. is this Julie. I'll take

look done We to business above expecting I not like X item of businesses, all detail, or Our I Massimo trends months and our earlier, we're market. said line are at job. the while and good. want And we've the it we that guidance deliver grow against We're giving what guidance we've with can commitment, we that's confidence execute to set believe where have that that we on and provided. into

XD. give just kind know in Could us placements color I Understood. XD? don't you if the outlook what is on some of anything you terms mentioned And of or then for

a Technology. XX%, came I of of the the you all had And XD. a if from Enabling on as overall we you focus of XD us remember, -- of notice said for see leveraging said, successful segment. contributor have in we're market specific all of last forecast now will platform unique the during let's giving, not franchise. that a our say, like in great been the success is year, is really the to marketplace. competitors revenue has Julie -- something Spine Even I important Look, that right been as But know the that And that

are we XXXX. in achieve the together excited XD of can contribution pretty So what about in XXXX for we

one just follow-up. Okay. Maybe

It that anticipate addressed Spine? of and particularly outlook this, in is. year, distributors I'm the Can just And to of adding. what the kind but you're throughout You high-quality stable you'll that kind like especially continue on sounds it's curious add is distributors. we

is Yes. Thank lot question. healthy and a you today a have Look, for pipeline. of we're what there doing excitement very Spine about we the And around Orthopedics.

is mergers, market the right happened opportunity is there the what's years. few go But great and is us to always through thesis recent last we fluctuation, you of that. now, capitalized to distributors Spine our see helped reps like do QX there. in And the go a of part show that of like product also that fully are the in to So So even given just

think see adding -- able we is we high-quality the our to keep in to that you So what married that it's towards vision accomplish -- going be want I will distributors Orthofix. around year,

lot there. opportunities deal of a So of out

in Massimo I'm sorry. growth to just to And we XX% in what revenue said, amplify Yes. had -- Enabling QX, year on last -- clarify Technology

questions. turn further I remarks. closing the over Massimo like call would Calafiore no back have any We to for to

of Look, today said I about reiterating enthusiasm close breadth future. have really and by initiative would you. and first company's the for their the Thank my in thank of Orthofix momentum also earlier, and to whole portfolio employees all fundamentals of be offering. optimism part underscored our maintaining I of worldwide their Orthofix Orthofix portfolio. X to my our stability I'll My across commitment to months as the

specific continue providing for initiatives dynamic patient dedicated in be will collaboration, forward value growth and a to granularity more creation opportunity look We are on and to innovation XXXX updates. organization going Thank care. you. to building a future great and

you Thank call. conference today's participation. for concludes This your

now You disconnect. may