Zimmer Biomet Holdings, Inc. (NYSE:ZBH) Q3 2023 Earnings Call Transcript

Vijay Kumar: Sorry. On the deal M&A given current interest rate environment, can you talk with your herded rates for you know, deals?

Ivan Tornos: Yes. So look we would still look at debt financing over equity financing all day long. Even though, it’s 2x of where it was a year ago, it’s still versus historical rates still a pretty attractive source of capital. It has become marginally more difficult to make the deal economics work at, at these interest rates. So it just means that we’ve got to be that much more disciplined on our valuation and in our purchase price. And so that’s how we view things right now.

Operator: Thanks, Vijay. And thanks everyone for the question. Yes, absolutely. I think now we’re probably nearing the end of the call. I’ll turn it back over to Ivan just for any closing remarks.

A – Ivan Tornos: Yes, thank you Kerry. And I’ll keep it to two minutes or less here so we can close on time. But a couple of things here. Number one, really, really pleased with the progress here at Zimmer Biomet really proud of the team and the work that they have done they are doing, and most importantly, the work I know that we are going to continue to do excited about the markets, lots of questions on market dynamics. Every data points suggests that their healthy markets, their durable markets no. We’re not concerned about GLP-1s and I’ll say that with the utmost respect and humility, but every data point shows that this is not something we should be concerned about. The performance is strong and it’s going to continue to get there.

We saw a great Q3 performance in recon net of the hip issue OUS. It was solid. I like where we are with both hips and knees here in the U.S. in the largest market. I like the fact that we’ve seen set being in line now. I like the profile as we enter Q4 and as we get into 2024. I believe this will be the year for set. And I like the optionality that we got around M&A. So healthy market, solid portfolio, great opportunity to leverage the balance sheet. I do think it’s a different place, a different environment. So really excited to be here. Look forward to leading this great team. I look forward to answering more questions in quarters to come. Thank you for your time today.

Keri Mattox: Thanks everyone for joining us. The IR team will be in touch of course, and if you have questions or comments, please feel free to reach out. Thank you.

Operator: Thank you again for participating in today’s conference call. You may now disconnect.