Matt Trerotola: Yes. I mean our Knee growth is still driving that Hip & Knee growth number. We’ve got nice growth of Hip, but the Knee growth is still is very strong. And certainly, within the Knee, we lapped some of the strong contributions from the Revision launch ramping. And so that had some impact and a little bit of deceleration in Knee from Q3 to Q4. But yes, I mean, the market environment from the front half of last year to the back half of last year was certainly a slower — an elevated market environment in the first half and then more normal in the back half. But at any given quarter, sometimes the things are going to bounce around a little bit, and we try to focus on making sure that each year we’re driving that full double-digit growth and the growth in relation to markets in each of our anatomies that we’ve committed and talked about.
Operator: The next question is from Jason Wittes with Loop Capital.
Jason Wittes : ROTH MKM, but that’s okay. So just some follow-ups at this point as well. First off, in terms of just the margin expansion this year, can we assume most of that’s in gross margin? And there’s some offsets in SG&A? Or how do we think about how to model that for the 2024?
Ben Berry: Yes. I mean I think I would say that, yes, you’re thinking about it right in terms of how the composition happens here. Again, we’ll work through that as we go as we kind of get the full integration of Lima into the organization. But again, in terms of the kind of the macro level picture, again, we see really strong EBITDA margin improvement lift by adding Lima plus getting the core expansions that we’ve also talked about. So overall, we would say a lot of that comes from gross margin, but then we’ll kind of see how it all plays in as we start to integrate Lima.
Jason Wittes : Okay. That’s helpful. And then in terms of just modeling as well, I know you weren’t specific about ’24 until now. You did mention Lima would be accretive, which it is. But if I look at my — the way at least we model, even consensus, EBITDA is much better, which is great. EPS is a little bit lower, I guess, from a guidance standpoint. I assume much of that has to do with interest rates? Or are there other give and takes to know that I’m not aware of?
Ben Berry: Yes. I think you’re right on, Jason. So think about it this way, underlying core business EPS growth of double digit, slightly accretive lima. You got about 1 point tax headwind, so that’s about $0.03. And then with interest rates and the paydown that we were able to do in Q4 with the financing that we did for Lima, so we paid down the revolver, we got about a $0.05 benefit as well. So if you kind of take all those components and you look at the underlying growth, you would say kind of you see nice strong core EPS improvement as well as contribution from Lima.
Jason Wittes : Okay. That’s helpful. And then a comment you made earlier about having sort of tailwinds in 2023, largely catch-up from COVID and et cetera. But it sounds like you don’t feel that initially that will repeat for 2024. Just curious in terms of what you’re basing that off of. Is that just looking at physician backlogs? Or just kind of what indicators are out there from a macro standpoint?
Matt Trerotola: Yes. I mean, it’s really a conservative planning assumption, right? I think, as I said earlier in the call, last year demonstrated that, if you get periods of time when the utilization of surgery can be high for whatever reason, if you get periods of time when there’s extra ability to drive surgery, last year showed that both in the U.S. and outside the U.S., there is pent-up demand, and we can have elevated growth rates as that pent-up demand gets worked through. I think the math suggests that there’s still quite a bit of pent-up demand that really wasn’t satisfied through the COVID period. And so we would expect that this year and in the coming years, if you hit parts of the year where things are really clean, right, you have not at a COVID or flu or storms or whatever, if we hit parts of the year that are very clean, like the early part of last year, the system is going to run at a higher utilization rate in the U.S. and you’re going to get extra growth.
And we saw that early last year, as well as an easy comp early last year. And outside the U.S., there was decisions early in the year by a couple of countries to put extra capacity into the system and pay for more surgery in a period of time so that some of that backlog can get cleared. And that led to things running at a higher rate for some of the early part of last year. And so we think a reasonable planning assumption for this year is a normal Recon growth rate, which would mean that a little bit of that tailwind from last year gets recreated, but we don’t get an extra growth. But at the same time, there’s certainly the opportunity for more of that pent-up demand to be worked off and to have another oversized market growth rate. We just think it’s more prudent not to plan for that.
Operator: This concludes our question-and-answer session. I would like to turn the conference back over to Mr. Trerotola for any closing remarks.
Matt Trerotola : Thank you for joining us this morning. I want to end the call by thanking our team members around the world for the success of 2023. We’re stepping into 2024 with a lot of momentum and excitement across the organization and remain committed to delivering value for all of our internal and external stakeholders. Thank you for listening today, and we look forward to sharing our first quarter results with you in May.
Operator: The conference has now concluded. Thank you for attending today’s presentation. You may now disconnect.
