Joe Busky: But we are selling in Europe under CE.
Doug Bryant: CE. Yeah. Two questions. Let’s be clear. Eliza, are you asking about Triage? Are you asking about on the VITROS system?
Joe Busky: Triage.
Eliza Garcia: Triage.
Doug Bryant: Are you asking — okay. Perfect. Perfect. Yeah. We are currently. And in fact, we are in the process of setting up an automated manufacturing line for the high sense troponin on the Triage. And we fully expect that the yields will be better, that our costs will be better and we should be competitive in that market. So I think it’s safe to say that it’s a pretty good opportunity for us there.
Eliza Garcia: Great. Thanks so much guys for taking all my questions.
Joe Busky: Thank you.
Operator: Thank you. The next question comes from Alex Nowak of Craig-Hallum. Please proceed.
Alex Nowak: Okay. Great. Good afternoon, everyone. I want to continue on the theme around the flu season and just how to think about it here for 2023. You put the flu number at $230 million, $270 million for 2023, but if you go back to 2019, you did $140 million of flu sales that year. So is this really the new normal with combo testing or is the difference really more about the share gains that you were talking about? And if it’s share gains, what does that mean for the rest of the Sofia business that you could pull alongside that instrument?
Doug Bryant: Well, it is due to share gain, because you remember that we placed a significant number. We were in the year that you are talking about, I think, our total installed base in the U.S. was under 40,000. Globally we — I think we were at 42,000. And we are now 77,000 instruments in the United States, 21,400 customers. That’s up 6% over the prior trailing 12-month period. So, yeah, if we have an expectation that we will have pull-through on the product, but that’s that shows up in RSV and strep, as Joe mentioned. So I think it’s a pretty reasonable estimate for the time being. I sense that you are challenging us a little bit and thinking it could be higher, that’s possible. But I think we are — I think we have a peg right for the moment.
Alex Nowak: Okay. Makes total sense. And then I just wanted to get some clarification around the EBITDA to free cash flow conversion, $245 million adjusted EBITDA, I have actual free cash flow being like $76 million. I know there’s some onetime items in there, so your recurring free cash flow numbers a bit higher than that. But can you maybe walk through the divergence between EBITDA, free cash flow, recurring free cash flow this quarter and then what to expect in 2023?
Joe Busky: Yeah. The quarter free cash flow — recurring free cash flow that was $169 million of operating cash, less $59 million of CapEx and then you lay on add back, if you will, $25 million of one-time or non-recurring and that gets you to $135 million for the quarter, which is 55% of our adjusted EBITDA and looking forward into the guidance, we expect to be in that same range for 2023, call it, the low end of the range of 50% to 65%, so somewhere in that 55% range makes sense for next year — for this year I should say.
Alex Nowak: Okay. So expect that for next year?
Joe Busky: Yeah. That’s right.
Alex Nowak: Okay. Got it. Thank you.
Doug Bryant: Sure.
Joe Busky: Thank you.
Operator: Thank you. The next question comes from Jack Meehan of Nephron. Please proceed.
