CNMD - Earnings call transcript Q3 2021

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good day and thank you for standing by. Welcome to the Q3 Fiscal Year ‘21 CONMED Earnings Conference Call. At this time, all participants are in listen-only mode. [Operator Instructions] I now like to hand the conference over to CONMED for a brief announcement. Please go ahead.

Julie Hall

everyone. afternoon, Good

which differ call this from to forward-looking other conference statements cautioned those guarantees materially uncertainties are of its the performance release company's results, me risks you and current during today's remind its this any uncertainties future applicable except risks details that Before Laws. required management in for refer actual begins, company any as law. will that expectations. the during The update as objectives, under company's and Securities plans the to be on statements disclosed to its disclaims filings as call, and outlook and risks forward-looking be that the statements Please financial involve call discussed may are statements the SEC events, obligation and may let represent that terms and be by such forward-looking uncertainties making press regarding well differ actual cause under forward-looking defined and information Federal Investors materially. that as not results more are may may or any the comments results

non-GAAP hear adjusted also to during management will refer this discussion. You measurements certain

its to website. specified Company's reconciliations year-to-year technology other for adjusting earnings be special adjusted a figures the are earnings are against the monitoring excluding and normal or net not of that performance regular to measurements, by of While supporting benchmarking releases in these considered the these Adjusted basis company, for medical the measure a GAAP on to financial income uses outside quarter-to-quarter per These from in aid company substitute company's posted and figures items ongoing management operations. the income companies. the ongoing credits and the share company's are or charges

Executive Officer, completed, Curt of Hartman? Mr. Board, for to Chief announcements Hartman, turn opening the these the With President I Chair CONMED’s and remarks, required will call over

Curt Hartman

third you, and earnings Today you afternoon I'm Vice to third by Julie. an CONMED’s joined you we and XXXX provide quarter full Officer. Michelle outlook. for Chief our Executive walk year us results will and call. our thank through Financial and Garner, quarter Thank update Good President for joining Todd

then We your will questions. call the open to

Turning for to increase total our as $XXX.X reported increase sales an X.X% million third the a quarter results, of were currency constant quarter X.X% of representing in the same and versus year-over-year XXXX. million to the $XX.X quarter, XXXX. of income From income $X.X perspective during net net GAAP in an in our this And third third the quarter earnings compares totaled million. of

Excluding special versus a prior of comparability, affected that X.X% million income the our net $XX.X quarter. decline third items year, adjusted was

at Our third net in adjusted a prior decline earnings came diluted $X.XX, the quarter. versus year, per X.X% of share

than by call. with slowed a the more in the on global constant presence the while General from to international quarter quarter which talked even detail, currency the the an the Both at Orthopedics delivered Overall, was you Delta quarter. we delivered X.X%. Delta solid the the and increased domestic and the growth, Looking held X.X% of results growth business markets to their businesses Global variant, our aggressive clearly communicated Surgery that we when delivered business growth QX more positive had decent we variant impact felt

XXX% Surgery year General be expansion. in market QX end. quarter we're the complete as progress our across business In Finally, and Orthopedics the by is on we great U.S. from our complete a our the follow-up made track salesforce on expansion call, to announced

quarter excited well we team CONMED leadership team in business. a during both and by of to the near- made has exceptionally world, the finalize the the expansion strengths opportunities market of the We perform organization the remain and around The international that completed continue longer-term and environment. our be will and a positions I'm global an and variability. unpredictable proud of Our to soon. lot closing, progress had handful In of CONMED

focus now will on performance a of Our innovation, the remains and to walk enhanced I'll turn Todd? and strategy. meaningful analysis who provide through Todd over more call detailed service and our out. growing digital and financial you delivery

Todd Garner

Thank numbers All our to given included growth currency. numbers sales is in GAAP release. The will today I you, constant Curt. reference in be reconciliation press

an provide results As summarizes our of included that our usual, have deck in that also compared the updated XXXX you guidance interested for to view. the those sales on we quarter, website results investor of and

XXXX. compared For the of third third to quarter of quarter total sales X.X% the increased XXXX, our

Our year U.S. prior X.X% versus sales quarter. the increased

surgery the increased U.S. Our the internationally orthopedics XXXX, third orthopedics internationally third prior quarter grew for XXXX strong over Total ago. worldwide surgery and X.X% sales general third general a X.X% the X.X%. revenue X.X% was which orthopedics Worldwide of international increased the revenue year. over the and quarter in X.X% year sales revenue general increased increased for quarter. decreased revenue grew In XX.X%. the us XXXX U.S. X.X% growing quarter to of X.X% a compared quarter surgery in growth

move statement. side let's to the Now expense of income the

tax. assets included expenses Research press quarter basis will special financing is for refinancing expense for quarter release. points margin XX.X%, fees include GAAP third and the debt quarter. higher X.X% was quarter. items, amortization the costs, discuss discount than profitability, which of in year of debt integrations, the from XX to third prior points was acquisitions an manufacturing, increase numbers and sales, amortization Adjusted basis the to gross charges development prior excluding Reconciliation total XX net our consolidations, year We of and of restructurings, and of related and intangible deferred

an expenses of XXX than was XXXX. XX.X% points SG&A Third sales, were basis which basis higher QX on adjusted of quarter

QX. on opportunities As we talked to have million $X.X based invested excess tax general Interest plan. rate the future of to stock principally both adding The in from predict, QX quarters. but orthopedics. surgery and is about an we few to us, expect last the difficult effective on in same sales benefit a as adjusted Curt ahead discussed don't This in in benefit expected ago, basis. revenue lower This adjusted due quarter, was the significant expense was and we than minutes XX.X% tax we was resources

expect effective adjusted to quarters. be tax coming XX% our to the rate continue around in We

totaled or GAAP net diluted per diluted or $X.XX ago. compared income $X.X $X.XX quarter $XX.X share a per income million year Third net to million of share

$XX.X of impact million of of compared the net of XXXX. discussed in this an reported $XX.X quarter, the adjusted adjusted third income Excluding income special earlier, we items net to million quarter

in quarter adjusted Our diluted earnings $X.XX versus the year period. net were $X.XX this prior share per

the at compared quarter of the XXth, ago. to Accounts compared the $XX.X $XX.X as number ago. days, three was months days days Turning September compared XXX of days were days months of to as the cash million balance to sheet, million XX three Inventory XX, XX balance XXXX. June end at XXX days same to quarter were our receivable end

are moving of of XXth. our million debt revenue. purposely was at We the supply end building versus Long-term quarter June items inventory and the the in of mitigate to as anticipation million faster the pressures of increasing chain on $XXX $XXX

this below to prior $X.X quarter times XX, XXXX $XX.X compared million was in by has million in a expenditures to end believe operations quarter. the $XX.X ago. year. ratio of Cash $X.X times year third should we year quarter continue and X.X provided X.X flow to compared million September the leverage we Capital be million the the were from was for Our third

on Now September. and The in variance move sequentially of impact peak Delta the guidance. let's quarter each financial to negative revenue month increased third

at and the improvement has full October QX basis require the million While approximately procedure staffing certainly constant of believe supply than trends XX% continued quarter achievable. or year new assuming guidance slower in end revenue of growth XXXX the Despite been no growth to $XXX in QX revenue, about billion improving start which points with $X.XXX currency is we are still setbacks so with That and approximately existing over far. currency lower our in of acceleration gradual headwind. represents hospital fourth XXX expected of would

represents range between over to cash QX be XX% growth adjusted expect XX%. XXXX, the QX and in We in $X.XX $X.XX, EPS of which to

For that to to put of I'll and prior cash just back of year Michelle. that like $X.XX guidance to it to open the $X.XX the questions call With $X.XX hand at would adjusted our EPS to your full $X.XX. we'd narrowing range our

Operator

[Operator Instructions] Our question first comes from Steed with Travis Barclays.

open. line Your is

Travis Steed

the Hi. question. taking Thanks for

assumes looks it first, were for all clarify the clarification; you just look versus rates QX versus range, for what a – could growth at XXXX? guidance QX, QX like X% if you Just if in QX XXXX that

Curt Hartman

me get XXX.X. was so Travis, there Let that XXX be over would XXXX really quick,

don't percent I So the here... have

Travis Steed

we are late up kind color Sorry. in kind versus QX? here of to It's follow QX some and in get impacts a O-U.S. early U.S. that's what I offline. can can October shaping I bigger on question picture saw a you COVID versus how through up of the okay. thinking more going ask

Curt Hartman

Yes.

yet. I look from U.S. market from certainly said, variant think completely to outside not Asia impact but the we as as to business we QX in into and And on it U.S. the anybody's Delta don't our you as unfolded. October, the we it grew better got we Australia, That's market the of as experience think September Korea export, Todd noted, Delta of had off that the most Canada peaked Todd variant. Asia, say woods the the and Travis, towards as the end felt geographies, feel quarter all as out didn't impact middle impact got had the that areas, I

staffing, there lot or into to I schedules, things subsiding as Delta surgery or but still of variant some all think quarter. are there's further a get things we whether those factoring level out the into of another, it's and

Travis Steed

do trying to that's – subside some see question what we the you these what, in and to the the assuming saw next into you issues QX on I staffing QX going to be of of in issues was is just with in how guess, QX going as Or are versus with I we're early to where and Alright, think guidance dealing XXXX? assume going move Delta year? what you're still impact helpful. some us think about

Curt Hartman

would Yes. in a that it is the sharper assumption I like. see bounce said, like more to back. subside, We guidance started right. has it liked does have than I the would mean, gradually have we But

we from so XX do through get wait January. better, things quarter, that getting but to but expect we'll to better as and in gradually better then extrapolate and it's probably talk here, the it's more we gradually So about getting

Travis Steed

All right. a lot. Thanks Great.

Operator

J.P. question from with Marcus next Our comes Robbie Morgan.

line Your open. is

Robbie Marcus

Great. Thanks the for question. Two for taking me.

First capital really like quarter. what up put business a one, good looked to the me

and So any and quarter could other maybe on Buffalo that? on what's about? color Filter driving there air in filtration drivers the how you think the did minute spend Any just a business to

Curt Hartman

had respectable we a Robbie, quarter. Yes. Capitol

that dollar noted it and AirSeal had remind the in Whereas capital comp that we largest of those going Just obviously higher and had with momentum capital mind, power was on a there's everybody in earlier value value. a from a new the is new Buffalo Filter But platform, keep Buffalo businesses. just the platform, the we video to power Filter year AirSeal the be year tools tool side video, and behind smaller along not is again, ago. in

results X% So our us, we X% way the the the U.S. growth, where really growth market the had U.S. outside with and kind the in was was capital driven it of well then consistent of in the kind range. overall tell

Robbie Marcus

Got it.

thinking. fourth for quarter beat softer and quarter a the reiterated by than narrowed guidance, implying me been or question Todd, for $X.XX you we'd bit in Second

So third maybe trying in any there, quarter guidance. Thanks to delay been you that quarter? the Were just thought any the expenses a of and it, some lot. process there in or takes from puts walk thinking might've up could your expenses fourth Just of pushed out through of step get and there?

Todd Garner

expect as QX, but and The It's lower looked in knew being Robbie. still impactful the Delta the to and it And going a we QX did we to so don't than impacting of half we back were $X.XX to not tax. to slow way related then – the where tax was, at Sure, as expected is. to didn't as QX be Great we fairly be continue. it expect we ago, look down that and was we XXXX we back it question. of simple; it really, quarter to that if expect actually was rate beat you

strong QX So expect like than We QX getting did but to back it's expect I as definitely QX, don't be better be said, July. we do we better. to as in

little been trending storm So ago. We're and envisioned longer has are growth has well. things duration prospects a three all the and temporary this – still still the still changed, than but same, months stronger opportunities long-term a little nothing our we

change. So that's really the only

Robbie Marcus

Got it. Understood. questions. Appreciate the

Operator

question Li with Young comes UBS. Our from next

open. line Your is

Young Li

risks you much a COVID the What to so Thanks some have other accurate of been also been compared start the bigger guys do – to you guess result questions assumptions, the I the there's more supply more have another whole of great. some in think outside that do your off, as have for surge? and issues inflation, more taking of impact in conservative Okay, what as of questions the companies. some see is about chain, you components, months macro list COVID from of mean, you cetera. overblown? guess I major investors coming a are and there's staffing, potentially a, I et paying what attention to other

Curt Hartman

throughout And the that our local positioning in comment this. of and the Well, taken part comment and have I first – have engaged able not this. I all we're do to both I the appreciate we eye executive our are team we because And is Todd on the of COVID. that's because around their managing markets of highly in how habits off appreciate

comment team, I because so into that. do And recognizing appreciate want a your and to I it my congratulatory for turn note executive you take

your logistics and remain are that little that there's hospital seems supply very to as moving And well up moved kind terms how bit and of priority. into a local There's are be staffing well. long because slowing variants? known. rankings to be up question, And the topics right of then shortages broad geographies some ongoing I the the more challenges surgery locations; disruption seems Now there their to versus have think in base obviously deferred of

these getting on suppliers. very Tier noted, to supply said have that literally in of meeting things, we've Tier X and virus X, these to X, think building as of on easier we've single proud every not more reach past as team. dove into I calls of And the logistics in our XXXX only been instead been on. this day our out, of perhaps They but anticipation been the March global topics Todd we've moved challenging Tier in inventory and

and not which relative evident minimize manage feel healthcare because and be hospital the that respectable for is saying work, but we're to time And there these surgery position and return of of their like things a position workers, pretty team to pressure in our so need are, for wildcard people all cases we may to overall supply normal operations. very and hearing see can there's new is lessen, but logistics. disruption. at feel what really Not mean COVID of fatigue, The schedules like and to same we seen. staffing, things, that. to will any and alignment same challenges and hospital remains to is CONMED the all good reading biggest healthcare things, And kind that venue If we're the maybe it drop all me

we or challenges we stepping of frame other would I how even Todd, focus. future have the quarter were you that's don't if look XXXX. it's the here, looking into know, I any or whether think comments this areas I out So into at as

Todd Garner

No. I agree.

early all those in since of are on that point I would you to and top think out XXXX. we've deck supply concerns, focused the had – very very supply hands kind mentioned our I side, of a the approach we've all on been just February

date. to a since So couple months at maintain we've intensity that the maybe we'd three months. level for of that we or of same at thought been have time intense And that focus

best So our managing the suppliers we is close to can. as and team very it

to hopefully we as far So have good manage continue far. to be able so that and we so

Young Li

U.S. as color. was higher expect a like Appreciate than really helpful performance Northeast performance in insights some the follow-up; native you guess the increase? vaccinated the of to the you some differences a wondering countries. pace little bit what from O-U.S. as talk you slower rebounds of of to the That's coming I the if guess that. as get the can vaccination I recovery October great. would but well months as regions I the about about we see, comment back a the can Okay, ortho and rates of such as higher heard regional in what

Curt Hartman

a level. a It's with Yes. interesting start going to macro I'm question. really

performer I markets those They've a think press for in at number performance I up of think so. the do a continue in orthopedics number tenured we're sound our if with while Canada, history the Asian orthopedics pleased they'll of leadership. a our markets. markets you with release, look and been facing markets They headwinds and years Australia, have very put across lot very to some good very international like in a

in challenge speaking orthopedics and now market. we've the has downs. Our U.S. Broadly ups been had

consistency efforts performance. U.S. don't To our brutally correlation. specific into who about that We orthopedics I haven't was operating are honest performance, operating where the our clearly May, of be moved you at about a is mode XX%. in down has commented that our of that I in rates geographies focused. Facility been vaccination June an normal and is just surgeon at see with XXX% at year. orthopedic he with dinner and road since I'd last

the question. is healthcare one to business And to orthopedics answer this no operating there Our systems that is in environment? are track more how

geographies with So a I higher to performance correlation again see don't vaccination orthopedic with rates.

protocols health then this heavier, would time. at on assume weight logically vaccination that, I at to practices and rates eyes system least You and behavior this, but in my point think seemed the through the

Young Li

All right. Great. Thank you so much.

Operator

Needham Matson Company. comes from with next & question Our Mike

is open. line Your

Mike Matson

questions. my taking for Thanks Yes.

Just early stepping this Salesforce this comp going year. back expansion through you're

mean, like big up I just setting building I chain you're something of am yourselves of a missing I there's between understand seems here? pretty XXXX, it lines of lot mean, the a kind that kind for but You're inventory. reading supply issues, I

Curt Hartman

innovation But your trying side majority. of the that, we've is is disruption, there's tag that faster business with AirSeal familiar markets been the I want this remained that's on it excited and our see Buffalo we very think keep we do next felt this And delivering And market we're in been very We of think but year serve. doing that. and the both would to but first the is would digest do if about. focused customers clearly less myself in pipeline of like pipeline And quarter the we the table forward be we going normally than everybody And but and and connecting what do. on motivated it was I didn't I in has to it in say developments we us how disruptive. with management the inorganic I look I'd the a things but clearly which organic those lot and all we're the that expansion we that in on we from that mid-year, opportunities they those entire those I announced go, the think the of and working – on we about be we that, innovation in grow And in call, really can so, has market some there as the to things year. Mike, it, than Filter delivery the you disruption team our any honest of we'll products. front team this that of but team of absorbed our second direction and than very be been reinvest also talked that we're us to the very in and with handle have focus when and the sophisticated the pretty Todd, appropriately question, organic when trying And are for we to us. earlier through side could to half said more Salesforce at on early into And year. could all last going year

Mike Matson

Okay. I understand. Yes.

Curt Hartman

Mike. Sorry,

Mike Matson

say to you going something? were Todd

Todd Garner

in seasonality was I insightful question. our end routine is a QX things some at to holidays I is because little in usually going for actually we of Yes, have there an bit. inventory And maintenance The of a QX of year. and just lot normal the it's plant the add and point high closures think

is usually it so, anyway. the point high And

would for expectations the side. say obviously The other higher sales had is on what I point QX that we than happened

were And so, we it. building

because so, And about added the would revenue up it talked right. post-pandemic terrific. lower, definitely back could this But love for higher sales XXXX all go resources think, we of expect Those inventory is are kind we've we've clean of question, have once opportunities we once We are as crux if front in I to we're things be Yes, the accurate. that to bullish storm revenue about passes, together. would we of strong bullish would is procedures about mean, because – if And normal. And your us. which I be a where will would sign that. are it year be sales

Mike Matson

back high you the Okay. mixed growth margin. and what's primarily highest the model gross up maybe to this back; look little it, points products, the bit is I is from about AirSeal XX Thanks. wanted it goes talk But things? Filter was or quarter. on I Buffalo basis And I could know you've just My margin had. year ask ago quarterly then a mean, I it only driving from XXXX. the one to gross other

Todd Garner

really Yes, it's it is. And good.

QX. and above freight we're going the consider supply everything half. And it I we've costs. a on range going with in margin. was expect back that's to You in that little And world that same level QX. inflation and XX% the got We charges, in the for still in increased yes, the said be

those be XXXX of been we headwinds January. to But are about improvement the to kind thanks increasing where we'll yes, to and meaningful business and that able real those costs, mix to and overcome in continue the us that are. has allow it's talk watch We in still

see forward would to I we as historical and when marks. do one look you if to lookalike, days your definitely look it this the for low weren't we you be days. better. forward those And of COVID, So,

Mike Matson

to Yes, of it. I'm in front have for six a waiting it Thanks Todd.

Operator

comes question with from Rick next Our Stifel. Wise

open. is line Your

Rick Wise

any to afternoon to recent quarters, recent been maybe similar Maybe point assume you growth both. here? off Buffalo and and been dynamics AirSeal Filter, this assume want short-term you with highlight? we XX% rate, Good smoke another better. update or us it's growing evacuation obviously in the just Curt starting business is out the the – should impervious that of relatively I just to that's that's And COVID pressures or some

Curt Hartman

Yes, thanks, great question.

news definitely So, above mark we XX% that is mark continue of we the to good expect year-to-date and a below. are growth, going above was the that QX that to dip be forward.

saw So shortfall, we QX, below did dip on the procedure sales actual mark. we the in our smoke that OEM because of declines side. And the

to a business actually a now above be I declined important us. said, we be year-to-date and minority where remain that in of that's bullish So to the business. the that's OEM really we And think our will like said. majority QX. those number not But they growth of But continue on drivers we

Rick Wise

reasonable quarter And that a Todd, fourth your assumption? that sort assumes improvement, is sequential of guidance,

Curt Hartman

the those guidance be mark mean in that lines assumes quarter the I aggregate. above fourth should XX% Yes, product

Rick Wise

Got you.

expect to whether don't in in Curt. Turning XXXX even is XXXX, which skews pipeline, always know more to slides XXXX. should me, we innovation the XX your be I highlight than back the fascinating new XXXX to XXX

time story the tougher whether you that a to that and given level, product challenges access, access are carrying of physician having hear so going of new speak? So, But about be innovation I'd to at adoption? and like the message aspect of the [indiscernible] getting is How sort street to the and curious hear hospital that. I'd

Curt Hartman

any one of restrictions clearly that to any evaluations. COVID access no great and been and and at The slows facilities product, on the demonstrate in time trials new may variant, is organization's new that. technology, whichever There places healthcare deny a and do question. it It's have given ability down

for advance the those focused they're quarter go said, treating. And us of care And to they believe front you a the slowed to that get the year, the to is the on and focus apparent no Delta are in narrowed new we that's really product high you needs, technology an the that going things of If customers. that But ensure hands priority, innovation our patient we we're we're the of surgeon, list our been marketplace give use solve of doing. denying they back last very variant. in the example, better there because that what third of opportunity as if we've evaluations and

making very it's so, find there. feel vehicles you of that's unique digital And cetera. the for been is about team with. or progress get very I in-person, enhance the And webinars, can et has up And resource webinars to that attention I industry And to through in strategy, in referenced clinicians. comments. those learned don't to part do all and our no ways access my get very we're substitute And digital wrong. think working I to we've new hard digital up our good and which upgrade to there. innovation are that me good our There opening But game

Rick Wise

what last sneak could we waiting patients briefly, and contemplate. delayed that more think really, I backlog extent there to are that do procedures one be genuinely one If a you to Yes. of treated in as is

Okay, maybe XXXX. it? is the a through but you. it's or the about you in quarter starting the slower quarter, thinking be we would go thinking like, here about how Thank slowly you we head and are backlog that as Is than way large should fourth there into

Curt Hartman

that other different shut hit, want a some are blanket a procedures. off in of suite defer related there COVID, more have of come But down deferrals definitely availability, in patients broadly. seem out having are areas by is or a off come longer, family-related as on issues for don't to down There general, is have different out shutdowns areas brought procedures to shut whether there think areas of amount there their statement. quicker. I waiting with to little I waiting backlog surgical either bit of move Yes, that it's issues. that staff as of other because Other a I been deferral backlog. and to harder want dealing and or a availability, for

believe of backlog is I they that I there. out So, quickly and do happens, how present that there answer. When patients a give cannot you

Rick Wise

Got you. you. Thank

Operator

Our with Mishan Matthew question comes next from KeyBanc.

open. is line Your

Matthew Mishan

doing? Todd Good you how afternoon. Curt, are

Curt Hartman

Good.

Todd Garner

Good,

Matthew Mishan

Good.

I think sense Delta any Filter a capital and procedures, on Buffalo of there get is like way of of all AirSeal us the you of but give we can versus placements pace procedures? impact

Curt Hartman

the of pace the versus capital So, placement procedures.

break more the case And many answer surgery. AirSeal, robot, question, a said, outside So, if inside would tag towards U.S. in geared it times, I easy pointed and resonates surgery, of been laparoscopic I they Matt in the in we AirSeal U.S. two that the the general it's investing is that a still are investing towards scenarios would think as And way more into along. it's we've today. robotic pretty different

a both So, to if benefit if well it. things AirSeal procedures that they're we path do will of robot, you are down down, of organizations. And relationship, that to that with to but slowing investing along lagging continue likelihood come partnership, work is the high in there on or a going the the to is

I outside an behind smoke, momentum it remind And much U.S. the very so a is the platform, everybody AirSeal I would On good stage. and just both there's in still the think early U.S.

they because the room long, of adoption, have and has on impact surgical to still they the industry in evacuation the The that's market. in You broad resistance surgeon. develop brush strokes extra using the and still smoke equipment are been for are the very not

it's working of smoke every with kind and ebb opportunity. a procedures filtration evacuation, as customers we're day them to So develop still users. into And flow, developmental

developmental that of one data. can were don't. actually smoke. AirSeal, looking it the more at statistics as aspect those Todd that relative because had as on me. to answer to that defer states that And right tie was to there's legislation, in can't we I some because marketplace have quite much I'll to don't interesting have question, think to I of that I procedures surgical front But him And a So, I

So Todd?

Todd Garner

in were nurses known the we've drive trying Sure. understand state, the legislation. going the to follow on But the looking growth, the states growth was a have to happening. start some when true going even Yes, sort do right. is average those effective update legislation, what those get in of those certainly growth to demand enacted by date, And it's again, we its it yet of states. higher in handful impact legislation did just than we from is not And states, this that and of that at see that on that

is legislation but again, driver so, opportunity. beneficial, of the not the And

Curt Hartman

put the right. where where ahead first seen in had was something overall those moved they growth quarter states All that the of This rate. had place we've

Matthew Mishan

much. very you Thank excellent. Okay,

Operator

Matthew from Sandler. Piper comes question with OBrien Next

open. Your line is

Matthew OBrien

Good questions. afternoon. the Thanks for taking

slow if the For trying over related you quick the is get you did And starters to plan thinking, talked terms of next continue to business out of is that but staffing I'm those Or perspective one there result cetera, is some the to et you're they're several about softness investments, QX going that? slowdown in invest Delta the the that of guessing a you because in a the or of salesforce, both quarters the to other revenue I'm making quarters? on as according of next that are the investments saw down to and back snap and what any did shortages, first we from couple be fairly had to really QX? you coming a

Curt Hartman

end side said my handful with finish that progress the year. less XXX% And the of general completed surgery up. We quarter. in had done expansion comments, I the opening to we'll than Matt, we that in and great on the made had we be a the by No internationally, orthopedic

So, with very quickly. would down that be we

for and with a front relative saying, being for share the great But statement a also to for long-term we it said the these caution think marketplace you to where have I would we marketplace. make for agree And to of great fourth continued investments announced view that portfolio our in customers. the our quarter. get taking I a prepared I us more right the what want as We by the business This or great where candidly, technology. of we with is, company. saying have our first is, it long-term market the expansion. is are And quarter do salesforce So, didn't to

Matthew OBrien

and a it out of of by and company, follow-up impact that, the Thanks. the XXX coming Curt. investments did seems XXX, then XXX, Got it QX? salesforce, a growth what the sense give it long-term QX. it does these And Can the be behind bump thanks points? Should then bit for disruption a you for more does trajectory little linger in up the you basis might importantly, what you've in like it. to about And before, question, into us it talked salesforce it do QX? It of the

Curt Hartman

to not very I going don't attempt of quarter if a first I'll the know second the impact questions. expansion salesforce results. save those touch We'll things the one. given for to But quantify accurately overall on can answer a I Great, guidance. over one sales Yes. probably

professionals, it be we've basis territories But introduce XXX impact. customers that think go tell sales for was take you things. why to And I there points been their a have totally and the just long-term view you points sales nature. guessing. are new by all enough I existing into around is you when out or shifting so that's those to field know rep to that disruptive of just long I'd you XX some when when you do got you training, know these to have when basis priorities, time things

more goal. presented a opportunities the of additive these be outcomes more mark. and be we're payback, present Now, in more evaluations, experiences say the they going general start our mark, because should I and six-month company to trials, there. would because have the think be to therefore will we're nine-month both to And And I Todd that that's things overall in just

So leave it that. I'll at

Matthew OBrien

little you clear, just think by a bit be will year And Okay. that though, could largely to behind next or a bit? of be disruptions you into spill year, this more end the

Curt Hartman

be think be majority majority Matt, will it us of us. should behind of behind it I

Matthew OBrien

you. Thank Okay.

Operator

I'm Mr. back to call to over time. like turn I the you. at Mr. will Hartman? showing Thank now questions further this no Hartman for remarks. closing

Curt Hartman

us. right. time with thank All speaking call. Thank our spending to forward next third for And you little you your call a with And earnings today. you on We over of to you. you, Thank bit look look Michelle. everybody quarter our time appreciate

Operator

concludes This the program.

disconnect. You great. have Everyone a may now

CONMED (CNMD) 28 Oct 212021 Q3 Earnings call transcript