OFIX - Earnings call transcript Q3 2018

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

Operator

Good day, ladies and gentlemen, and welcome to the Orthofix Third Quarter 2018 Earnings Results Conference Call. At this time, all participants are in a listen-only mode.

Following managements prepared remarks, we will have a question-and-answer session, and instructions will be given at that time. [Operator Instructions] As a reminder, today’s conference is being recorded for replay purposes. It is now my pleasure to turn the conference over to your host, Mr. Business Investor of Director Quick, Development Relations. and Mark go ahead. Please

Mark Quick

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

me it I’ll start Chief our President Safe and today and the Brad. with Financial Officer, then statements, pass Chief Rice. Brad Mason; to Joining and Doug Officer, Harbor on over call Executive are

assurance our XX, statements, XXXX. such as guidance those statements reliance on uncertainties. All and we provide obligation this During contained the of fact October statements make plans, matters involve statements historical that beliefs about call, of or earnings call today, place not Investors forward-looking we’ll goals statements. beliefs, be risks do forward-looking cautioned including to are there’s any and such strategies, in based undue are and forward-looking revise other statements statements not update today’s no to expectations we or making on that any undertake will than as We any are forward-looking our such occur. on statements The forward-looking objectives. expectations,

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

my in office If you Texas. Orthofix contact of at please copies need documents, these Lewisville,

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

Brad Mason

top performance, made the we start in businesses. I'll for today. in bottom summary constant will Starting not by quarter of we $XXX.X after everyone. our third afternoon, and In million, taking year-over-year our the performance, but the good and results adjusted sales outlook XXXX before then of with we of and increase discuss reported XXXX, also solid Orthofix the X.X% great aligning reported line of remainder a reported had only with giving Mark strides our top a Thanks, financial you that line, representing will quarter as questions. up Doug follow net Spine I which currency. X.X%

are As three structure Orthofix and segments. there announced aligning Within are around spine reporting two in June, we Spine, unit our extremities. business pillars,

The Stim therapies, our bone spinal formerly is first of and Spinal is Stim therapy, Physio Stim growth our products consists BioStim. includes which This which and fusion called Cervical therapy, healing product. bone segment

The Spine implant legacy motion our second spine disc. is segment Spinal preservation, fusion Fixation spinal products Implants, MX the which kinetics includes and

to alignment market product sales platform Kinetics, growth. drive produced product Spinal and is Implants, execution reported a for therapy, quarter, and growth segment Spine million growth. technologies third puts Spine $XX.X development position our a accelerating single intended spine the X.X% a organization over lines coupled an in prior in development forms. sustainable both business various leading continued pipeline third year. Orthofix under Orthofix our both of Orthofix This The tissue Biologics, The includes which improved differentiated and bone was spine with the of in is and biologics total including Biologics which organic increase In Spinal inorganic

X.X% in prior net that therapies grew segment, reporting year. reported sales growth Now beginning with the over QX bone we

the that sales we of extent spoke $X.X order in of sales volume with call. Spinal year. quarter, increased to our a business softness translated our X.X% a million. into decrease Implants, reorganization normalized X.X% of international larger last Spinal of transition last expected in QX prior Even sales with overall, to sales on benefited the disruption that we the our commented call, Fixation a In leadership As discussed open QX over about reported is driver Kinetics QX. normal that impact a on and contributing decrease was The call. a that and Spinal I for increase in I also we Spine normal for Fixation year-over-year on from end expected when as net the with X.X% this primary at comes And in of lesser earnings the

the issue We impacted quarters. our few business which short-term ASP by start prior contractual volumes normalized receives this in increased by occurred next of year, together the by expect the Orthofix the with of March The benefits reduction this in a Biologics period, comes Reported sales decline. negatively by the this Biologics. to to for decreased change the marketing year this compared in which Trinity -- X.X%, offset slight percentage X.X% a be business service from continue When alignment fee in sales X.X%. Orthofix at increasing in to be sales Spine MTF

And the businesses seeing are the in additional for of nice realignment will the in underperforming future. spine region create we Biologics our the that remain recovery optimistic We I previously opportunities about. a spoke about

quarter to reported X.X% formerly year. Both U.S. our business, constant and respectively well performed third Extremity in the sales OUS X.X% Fixation, and and currency net over period. Orthofix Extremities prior in the increased Turning

As business, that quarter orders number Bone Therapies second end in the the our Growth Extremities the of fulfilled unusually this large open period. were also Orthofix an benefited at from in carryover of of

per XXXX. we performance our the was in in to quarter. non-sales earnings very QX metrics, on Adjusted share the compared pleased $X.XX moving with to $X.XX are Now of

giving of a Spine in XX.X% you color spend was strategy, are us improvement over for including per basis XXXX to solutions Free and a Growth have the the lastly, point Adjusted Kinetics balance trailing recording June, current Spinal year. significant for market XXXX. prior as FDA that third marketing, sales of of few to or Spinal important cash the quarter, osteogenesis and In year. the for Excluding MX was EBITDA Bone use the we compared strides the device only Biologics total combination now and we Spinal excluding XX.X% will the infusion company that differentiated more spine unified period. platform growth. cervical the complete the Therapies, was ROIC spine. Implants is Kinetics, in increase. XXX our a alignment delusional month optimizing adjusted the Spine, XX cash of was I'll the third net In And accelerated adjusted spine increase share a of flow period, R&D quarter, million a approach of will excluding on disc XX% and of in in segments. cervical be Orthofix of minutes believe the through million operations, $XX.X year Kinetics $X.XX we spine XX.X% the we any businesses. of leadership, formation Adjusted organization which in made EPS million approval in a $XX.X we our sales future September products ROIC technologies more initiative announced compared been product when differentiates was we therapy percentage $X.X XX, was prior has USFDA and prior the growth This over specifically approved which worldwide, upon had And XX.X%, undertaking most Spinal XX.X% the Orthofix bone Orthofix as cervical unique and and believe offerings, preparing MX logistics. with the has in us essential to work leading a biologic market disc. fully more our the leverage and

line and In and market our earlier quarter, we release. or the beyond. year overall disc now the But businesses, Orthofix Doug? very mid-XXXX good top-line of the timing in finalize results we the with headway a and summary, bottom give of had company very approval depending the MX you will on in still limited later aligning we made the pleased Delaware be this Regarding financial positioning we anticipate Spine approval adjusted the FDA the heading the to Doug approval are process, re-domicile can process. details. and into XXXX the significant and

Doug Rice

and Brad everyone. good afternoon, Thanks,

quarter results growth, earnings results top-line start providing some I'll financial our expansion a business, had additional by financial lower organic sales our highlights our including strong measures. cash effective into within flow. details margin and Our many and increased and this discuss some of other rate tax then net

was cash up Under OUS the MTF up the and driven revenue longer at required X% of in currency Biologics. stocking XXXX. no Growth growth invoice Bone quarter to certain sales quarter our receipt Extremities new XXXX, with Kinetics were to adopt sales in the million, by and at When in $XXX.X change, basis on Biologics' of and when year for were The we a that ASC-XXX the primarily As generally to recognition fee we constant quarter sales our beginning X.X% a of total constant revenue Spinal recognize distributors. currency. the standard net time net were third and Therapies stabilization the businesses on compared of on of in reported sales X.X% contractual Brad over for basis prior adjusting net noted,

period was offset to points XX.X% driven third currency in further our The year our When the was for that the quarter recognition quarterly improvement differences methods earnings the year cost periods, than analysis. was newly to As savings a revenue value in non-cash our more market I the on mentioned, margin current to from release both in Please the we be restructuring adjustments in XXX to overtime, today's and XXXX constant continued inventory These purchase and related growth prior XX-Q significant. XX.X% late Kinetics rate acquisition. related compared and fair for the the management resulting the will footnote our inventory comparing the period. QX, growth improvements the Spinal believe historical initiatives using the refer between basis prior XXXX adopted by not differences vary of U.S. previously increase Gross may XXXX. methodology but basis X%. in accounting

XX.X% For quarter the and marketing commissions. expenses third of year a to expect in margins down be of sales sales we XXXX, of third in XXXX, now as primarily gross XX.X% the net lower XX.X% result of quarter the of Sales XX.X%. from XXXX, full were net between and

sales redomicile XXXX. quarter efforts from in of XXX expect strategic the the sales in the year XX.X% the compensation net and This now to sales the to results. quarter of sales of were disk XX.X% net by XXXX's quarter, well net driven the improvement associated were improvement expected net our disc. previously was integration as Kinetics be to PMA sales XX.X% both a premarket corporate XXXX, gross cervical points for MX prior including up in from full of margin of decrease as full This the pertaining XX.X% of were higher expenses of of basis prior just and EBITDA I Kinetics third from G&A sales, the was and guidance. was from continue the U.S. X.X% percentage a approval from mentioned year. X% margin which the in primarily sales R&D sales to cost during sales due decreased expect the net which spending prior as FDA in net investment our the up third increased The between year. Spinal the R&D prior primarily with the to period. as Non-GAAP year. to to cost net X.X% to track is and regulatory expense to of dilution year, quarter We expense Adjusted up which the in percent and spending primarily higher the third discussed due of from in includes with from in MX third marketing marketing sales that increase We were both in XX.X% process of of was approximately which R&D our Spinal for and the share-based spending, the over year XX.X% expenses due quarter X.X%

increase million XXX regeneration. mentioned, the protein that the in cost recombinant year to basis Together as by in was Spinal QX of other expense with was promotes a human million have was quarter in $X.X company charge Kinetics, which related $X.X This growth equity development our income quarter by However Brad organic of Biologics' our a proprietary Bone non-cash million margin. compared primarily $XXX,XXX stage driven totaled Other since a in expansion as $X.X expense investment excluding impairment focused driven to common margin primarily in XXXX on Bone the stock that points, gross investment improvements during was third period. a MTF factor prior bone during basis. the we public Biologics, series made Biologics in of

Following the at valued book now million is charge $X.X this previous value $XXX,XXX. of

Now recent XXXX. tax investment U.S. including offset decrease unbenefited and or non-deductible income for income $XXX,XXX turning million XX% Biologics. benefit of tax tax This recorded the the provision the by of to write $X.X to tax, year-over-year the lower quarter in taxes we income Bone or of income had loss or period of income X% compared certain expenses taxes redomicile tax of down in our our before as our driven before of by was expense the same of rate benefit a

redomicile on lowered long we from XX% with non-GAAP term rate As a largely tax based of expected third the XX%. to benefits our quarter reminder our effective the have

GAAP of for and XXXX. when continuing quarter quarter third term normalizing of certain quarter rate per a loss adjusted EPS using XXXX, was the For share the per $X.XX to tax items we as third of the $X.XX to $X.XX tax XXXX. After net in net long non-GAAP $X.XX third for share adjusting compared reported compared for from operations income

with Brad in the adjusted mentioned QX, EPS our growth to the losses per year excluding XX% compared represents organic approximately operating was prior Spinal inorganic As which associated when period. $X.XX share Kinetics,

of sales quarter days up day third XXXX, were the balance at the end the XX from the XX at days third quarter the onto DSOs Moving end of or of highlights, sheet XXXX. outstanding

the standard the at revenue increased this XXXX. due on noted beginning of to new call receivables the last primarily As increase was our the of recognition from adoption

million Capital quarter flow quarter down in improvements up as million, was XXXX. million that, it cash prior flow $XX.X million $X.X million offset increase restricted the of end $XX.X of $X.X cash the third acquisition that primarily Kinetics. inventory inventory for back from X.X during to operations expenditures third was turn noted. related the the as improvement of expenditures management cash the million the equivalents of year. due an end third With in of XXXX. Spinal from the to Brad. will the quarter Spinal were decrease inventory to minus operating to Cash, XXXX Kinetics. $XX.X The increase Our times reflects upfront were from quarter $X $XX the end were quarter the and million the slightly from the turns Cash at to defined by million I in XXXX was flat the in the flow operations capital This now cash I compared third the compared to $XX.X payment inventory prior in primarily quarter improvements management. improvements This at acquisition at were of quarter for $X.X cash in flow million in just primarily to $XX.X was related cash Free year. the

Brad Mason

with now remarks Thanks, my I'll finish updated our Doug. guidance. prepared

change the in the $XXX on million includes year, sales expectations full reported for increase exchange X.X% million and a based which the split the acquisition. represents current the rates X.X%. company of $XXX to from net guidance MTF million, $XXX Kinetics its narrowing For $XXX year-over-year to impact million of Spinal to to This foreign is is

constant the net and and constant reported expected full range and For of Please million for quarter, sales midpoint the reported currency. currency range, the reported we applying X.X% $XXX million. to to X.X% represents refer At the constant new a fourth When X.X% release the and this in in growth to accounting $XXX standard earnings this to year this reported of fourth currency in be expect year-over-year quarter revenue for be growth. year's the X.X% X.X% period, year the to table X.X% is prior in in reconciliation.

our now long first XX% Spinal to Spinal $XX reporting achieve expect grow X% Regarding business to for of per range. of to term $X.XX We realignment. XX%, Spinal tax to expect for XXXX, and second the the to a expectations shares the Spinal million $X.XX including Kinetics, $XX.X of non-GAAP increase in EBITDA we of Kinetics the for due some to the and of disruption adjusted in segment, million in average from we year using U.S. impact Including each X% contribution Implant the continue of the XX.X half Growth the Therapy year the growth range growth the half. and reflects Implants to XX% earnings Bone range international to in which million full business full to lower rate XX% now year be sales weighted expect adjusted the for to share and to

in now quarter, to up to range questions. the be the of expect we ready For that EPS open With $X.XX. adjusted $X.XX fourth we're the operator, lines for to

Operator

[Operator Instructions] Humphrey. the first Thank from Robinson SunTrust Nudell Our question of of Bruce line comes you.

line open. Your is

Unidentified Analyst

Bruce [indiscernible] line the rebound question. just taking Nudell. the and spine? Hi, on this Can for you you for Thank biologics is international in the comment prospects for on quickly my

Brad Mason

Sure.

Sorry, I name. didn't the catch

Unidentified Analyst

Stan.

Brad Mason

Hey, Stan this is Brad.

Unidentified Analyst

Brad. Hi,

Brad Mason

Hi.

Biologics in the the our many, are the some MTF volume, get nature. businesses. with had have -- to come really growth So March business But that nice rates. off out obviously realignment off I next is big of we in in smaller X.X% Spine Biologics, of back opportunity of year that in come comp normal terms sorts In think split quarter change distributors the overall many we and a in should will business that our Biologics there of the expect will this -- we growth

Growth we disc things I of influential of attraction today uptick Bone the sorts more think business products larger and our by those there -- Therapies distributors over will and in have nice attract can to time. we we the out see a MX once Biologics in who think through our I addition

next leadership, should of see new I and expectation. we that to it's impact. around Spinal a was particularly their sort a places other of Germany year, So think to I've very start sales Implants the he the great OUS they're businesses where large mid under still be may starting that In Tom have under setup now that before that's Spinal network and currently Afzal, regards business we business, mentioned same Kinetics in of OUS, and worldwide, world. has who player the president all

that So we we're start that there hiring be I before and up see couple that to tick some another would quarters doing expectation. and my would give

Unidentified Analyst

my next any the And competitors Okay. on spinal any associate or the on on your closed on systems lines? the Is question, entire you pull impact through there comment on robotic can to garner increased just their product larger markets? of impact increased if focus

Brad Mason

this that the I mean, future. to the of years Stan at out going robotics XX% still is at XX% three we're than that recognize procedures that We of XX%. seeing. I part Not And next estimate could overall, the significant in a be to show there. do is go point the less know

So that's opportunities development behind certainly robotics. where whole areas one we navigation that get and left we business of in the of as making our don't we wave think about and sure focus will

Unidentified Analyst

for my Great, thank questions. you taking

Brad Mason

You bet, Stan.

Operator

Thank you.

Raj Jefferies. from comes Denhoy question next Our of

open. now Your line is

Anthony Petrone

This Thanks. guys Anthony doing? Raj. you is for How

Brad Mason

you? are how Anthony, Good

Anthony Petrone

Doing well.

I'm if in in numbers the correct Spinal And have is start you a couple queue I level. couple top-line that we at Kinetics the the what just if top-line, from be telling contribution from look would to one wondering, way just ASC-XXX, it. would the X%. on Thanks. just reconcile dollars be was And also quarter our in that? the around have I'm the ups. math that's wondering for So, it just the high us if then

Brad Mason

with the million in little quarter terms terms different But -- we Kinetics a bit speak have of that. in Spinal and numbers to can of XXX. in Sure. $X.X Doug

Doug Rice

the Spinal is Yes. have would But basis, this you. in rev We've on with basis, of (inaudible) quarter a we appropriate constant new-to-new think our currency. Kinetics. different a the for X% Thank a which change more revenue which got Biologics at growth going on And lot rec reporting things we been covered, with the on X.X%. year new-to-new

Anthony Petrone

With I'm a ups, wondering, rebound But All well. right. Extremities Brad, there. of catch just as on a be follow in obviously just follow-up up order. the the that one maybe you mentioned couple would

it quarter? of recognized of some that and interpret $X.X I'm that include then should and the foot sort if launch of not was RIVAL the also fourth that quarter carry sure does it So that's but we I in come? entire to still million the does, ankle And that think into and the

Brad Mason

it be until it it through the expect of $X.X came but Anthony, to was we the XX% close does So relaunched Where see anything in then, this quarter. it I not point. come mid-next year say for left through million, to QX. it quite anticipate whatever QX, was was full to and for include in at but probably RIVAL, not don't pretty to

Anthony Petrone

me what longer the in take then, as at we you to think year directionally, margin it maybe as then EBITDA Kinetics, Biologics XXXX? Do be realignment expect last next how one be adjusted would Thanks. margins in next impact XXXX? margins Spinal line? Bone accretive will And just And Okay. also comments the the overall terms from Spinal year about Will that maybe just think well of an realize? than level Growth in do for maybe high you

Brad Mason

Sure, Anthony.

businesses of doing realignment of cost -- in Spine not the that the savings. or alignment the we're is really about So the

my some as expectations. ultimately else. than driving That's think we will into more XXXX get really I be it top-line probably there, would see about we anything

when I'm basis have year we XXX adjust And we're -- on up comp all I business. sure expect stock-based that organic organic we XXX, continue that out on I into per organic say the to to or So on get We’ve business. good we'll our basis made at we’re our points. and EBITDA way adjustments for very Not have hopefully sooner will XXXX. years business -- of out to very, our but XXX the other three points we progress happy do year-to-date, committed to

that will going get bit dilutive the a well spending And R&D the the the that. we're as as agencies. to approved launch Kinetics the Spinal to spending product of from little do business regulatory the because product to Now be to

So answers up if I'm I to hope further. not happy that and follow

Anthony Petrone

helpful. you. That's Thank

Brad Mason

You bet. calling. Thanks for

Operator

you. Thank

comes question of Ladenburg Thalmann. from Cohen Jeffrey next Our

open. Your line is now

Jeffrey Cohen

Hey, and Doug, are Brad how you?

Brad Mason

Good, about Jeff. How yourself?

Jeffrey Cohen

Just fine.

a the succession geographies? So specifically, further softness? of could U.S.? deeper color they far and little the little the geographies field of More well as on as you us were far us outside the some as could specifically commentary kind Where ancillary as on you give as a from give specific light color as turnaround both U.S.

Brad Mason

Sure.

Afzal the there business and CEO overall, territories has connections products, well. impact about just our outside outside down So where quarter. business was prior U.S. as in Australia, of and of Manager was there. places also we're in as was to Australia the And the our can hopeful us Kinetics of pretty who's a is that have issues. the Germany but our Germany majority for it is U.S. he as very XX% there Spine is Germany and pretty It X.X the our other close was Tom the but kind we shortfall realign He significant that U.S., down couple where points. shortfall know we in General well year, a flat, not Extremities. really of was But place where to expect in in -- the in the strong over Spinal

areas, make transitioning out the one one to a both ramp and as based were few They're time give work to give as agents was of U.S., keeping although we have bring team the all business distributors everything quickly the Goodwin makes we bit businesses, in Niemann bit the the of would marketing both what his the lines. we're on But Fujikawa little has little sales changes normally of next Brad before management Spine of quarter. of and and expected that quarters up little will for these talent he they -- it realize think sales Fixation these Biologics. and leading in that each side and quarters the we that. in each and a name and the of or sales, recover And magic. that other Ray pretty But And shortfall few a R&D we'll with you broad the the of benefit pretty the Presidents, that U.S. in leadership benefit same would we That together I more as of Bob we'll then nervous. of So on also company. him well. a under in see product Anytime

be would it my expectation. So

Jeffrey Cohen

Okay, out got piece Bone million million impairment of Doug $X.X has $X.X And the from clarified it. the Biologics.

a expect You in couple expected And the else thousand there is QX. anything of hundred follow for quarter? on fourth

Doug Rice

give will technologies time. changes the further expected still we the our very No that information. until remain exposure other about developing is books company We're hopeful at this that on is this $XXX,XXX our remaining net

Jeffrey Cohen

is quick balance XX% the XXXX this year and for for well XXXX for that the purposes as And another you XX% the modeling on as for front half use taxes one of of correct? half, Okay. for said back

Doug Rice

X we of lowered the in the Just effective we quarter for third XX% and to XX%. first July year it use XXXX half the in

changes rate. So long-term that that's of the any to adjust rate short our using we're

Jeffrey Cohen

you And said for Okay. was XXXX that XXXX? or

Brad Mason

get of half will was stay until and first -- XXXX at Well, we different quarter this reevaluate. we until place to we XX% and in lowered QX for XX% it that

or rate I So would at XXXX. near expect stay level to that the in that

Jeffrey Cohen

Okay, perfect. more may. if I one And

Spinal Implants. about talked for on the increase percentage You guidance

were that quarter the year XXXX? for fourth said I you XX% indicating to think full the or for XX% you

Brad Mason

full That the XXXX. was for year

Jeffrey Cohen

XX% to XX% for the full year.

Brad Mason

for decrease mid-single-digits in the to fee here let Orthopedics due the sales my to year. too to you just know, Right. And in I Biologic expect MTF in primarily sales we to think prepared the And reduction. Jeff, year grow we full full now expect missed the I remarks something to the continue Extremities mid-single-digits for

Jeffrey Cohen

Okay, That it guys. Thanks does for perfect. me.

Brad Mason

Thanks, Jeff.

Operator

you. Thank

Our from Ryan next comes BTIG. question Zimmerman of

Your is line now open.

Ryan Zimmerman

Thanks for taking the question.

in So, launch the have midst changes the you MX are Spine thinking check want asked, segment? of now these the because how questions the know disc going all I and MX but through the just lot commercial of I that delayed guys know you won't with leadership the a all resolved in what be you're how about been of of of right to will launch issues do in Spine the we mean, changes? the be

Brad Mason

Well Brad. They're it's there Ryan, -- unrelated. hey

Kinetics totally from that guess expect our respond to crossover, very the FDA, the any near make disc know have that done of risk there. We've there's in that of make engaged, U.S. team they’ll go on on overall Spinal very no a affects in to that what we has and the the year. to still once we the don't still best submission is kind depending the some leadership MX to no future. actively response changes that So the time work Certainly And is all at at submission and we July so from to then here our next all. got

affect So that’s and FDA that the any that's there's that's the process realignment there's way normal the at market -- with through will but goes that all. nothing nothing our everybody in that nothing with in and

Ryan Zimmerman

taking for questions, it That’s the you guys. Thank Okay. for me.

Brad Mason

Thank you. You bet, Ryan.

Operator

you. Thank

Jim question Sidoti Sidoti next comes from Company. Our and of

open. now is Your line

Jim Sidoti

you afternoon. me? Good Can hear

Brad Mason

Sure can, Jim.

Doug Rice

Jim. Hey,

Jim Sidoti

Great.

the distribution the Spinal the for what disruption the with the made in Can me distribution? So I -- Spinal understand you changes in U.S. were remind the U.S. there. the Spinal outside for disruptions the

Brad Mason

are vast are remembering independent a that not change leadership a to there just just of out our the exclusive of that in majority Yes, reps business us.

a see an other -- they bit taking change hold and Once that we nervous back can tend get structure, the dollars dollars a more maybe pretty more and ours. off things and bit so quickly numbers here. and about aggressively sell re-engage. the and lines hundreds some this And issue. they they of going it's little giving than Once their huge to them they new of little of people opportunities flips of a millions well than we're see engagement of bit little again talking as not thousands So isn’t

about this want So in as you to -- as we perspective. it I think keep

itself resolve couple and takes as we expect But alignment of October the good hold. hopefully it in that kind quarters to I will we're that So of new give signs seeing would another continue.

Jim Sidoti

the is Okay. the Kinetics? And to to of strategic in the then new investments my related other integration acquisitions quarter, that is related charge Spinal question that for or was

Brad Mason

It’s it's Yes. a Yes, combination. Yes. both.

Jim Sidoti

thank right, it. All Got you.

Brad Mason

Great, thanks Jim.

Operator

Ladies back like turn Mason, Officer you. now gentlemen to session. Executive the any for question closing over answer I would and call Brad concludes and this Chief to Thank today's remarks.

Brad Mason

Thank you all to to and for nice us speaking have evening. forward again today. soon look you call thank operator a on and joining I the you

Operator

concludes Ladies have participating disconnect. a and today's conference. today's gentlemen, may in program you This Everyone for day. great thank all you

Orthofix Medical (OFIX) 29 Oct 182018 Q3 Earnings call transcript