Mike Petusky: And I just want to absolutely make sure I understand, the EBITDA guidance would suggest something like more than 50% down in terms of EBITDA in €˜23 versus €˜22, correct?
Mike Levitz: So when we guided for the year, when we started the year, we guided last year at mid-single digits. We came in at 8% and as we’re guiding this year, we are guiding at the low-single digits because of the multiple product launches, increased general corporate spend and all the things that Sheryl and I just referred to. One of the things that we are when — Cheryl says where — the answer to your question, Cheryl says where laser focused on these targets. It’s because we are — these are very large market opportunities, very different than the market opportunities the company has historically had in its joint preservation business as you can see by the size of the X-Twist rotator cuff market, that RevoMotion, reverse shoulder market and then now as Cheryl described the new patch system and they were coming out with that we’re really excited about.
These are very big opportunities. The dollar amounts that we’re spending are much smaller than you’re seeing a lot of companies out there spending a lot of money to buy into this space. And we’ve decided that we are able to do it organically with a much smaller level of spend. So we — as we’ve been saying, our capital allocation approach is to focus on investments in those things nearest to whom are organic opportunities to really drive this value and realize the opportunity in front of us and that’s what’s reflected in the guidance.
Mike Petusky: Right. But you are going to be down based on your guidance 50% plus?
Mike Levitz: Our guided EBITDA number for 2023 is lower than our guided EBITDA in 2022 and is purely a function of timing of these investments so that we can realize the value from them.
Mike Petusky: All right. Thank you.
Mike Levitz: In addition to the fact that there are increased costs associated with the legacy business. And so those are the things that we just have to factor in. I mean, we’re not immune from the things you heard about from all the other companies out there of inflation and people costs and all these other things. And so that’s reflected in there, but we also reiterated our multiyear targets because the opportunity is significant and the drop down to be able to leverage this spend we believe is very real intangible.
Mike Petusky: Okay. All right. Thank you. I appreciate it.
Operator: Thank you. There are no further questions in the queue. I’d like to hand the call back over to Cheryl Blanchard for closing remarks.
Cheryl Blanchard: I’d like to thank everybody for joining us tonight. We look forward to reporting out on the year that we got ahead. We’re reiterating that 2023 is a real value inflection point for Anika. We’re building a best-in-class portfolio as we continue launching exciting new products in the high opportunity spaces we’re in and as we optimize our commercial U.S. reach and focus. So thanks everybody for your time tonight. We appreciate your time.
Operator: Ladies and gentlemen, this does conclude today’s teleconference. Thank you for your participation. You may disconnect your lines at this time and have a wonderful day.
