CONMED Corporation (CNMD) Earnings Call Transcript & Summary

Welcome, everyone. I'm Robbie Marcus, the Medtech analyst at JPMorgan. I'm happy to move to our next session, which is CONMED. I have the CEO, Curt Hartman, who's going to be presenting. And then we're going to be followed up in Q&A with Todd Garner, the CFO. Just a few reminders for everyone in this virtual environment. You can go to the JPMorgan Healthcare Conference website and grab the slide deck to follow along at your own pace. [Operator Instructions] So with that, Curt, take it away, and I will join you for Q&A afterwards.

Great. Thank you, Robbie, and good morning, everybody. And I do want to point out, Todd is here with me and he'll be joining in the Q&A. Hopefully, you've been able to access the presentation, and I'll try to keep cadence with you by calling out the page numbers as I go through them. So first is Page 2, which is a reminder of our forward-looking statement. I'll then move into Page 3, which is something that we've been publishing now for a couple of years. We started out with the CONMED vision. We highlight the focus behind that vision. And at the bottom of the page, you'll see 5 of our key operating pillars. And I think when organizations and companies put these things together, they do them with great intent to help drive focus. I think where they really get tested is when you have a challenge like the global pandemic. And I'm proud to say that we operated the company very much to the spirit and the intent of this vision, this focus and these operating pillars, and they endured through that environment. So really proud of the organization for embracing these. Really proud of the organization globally for putting these into the way we approached our work in the face of a pandemic in 2020 and as we continue into 2021. Moving now to Page 4. You're going to be seeing objectives for shareholders. So how do we translate those visions into the benefit of our shareholders? And this is not a new slide, so hopefully you're familiar with this. We firmly believe that given the markets we're in that we can aggregate growth and profitability and significantly increase the valuation of this company. That has been the journey from day 1, and that continues even in the face of the pandemic to be our journey. We are in large, growing markets. Growing market share is the strategy. And finally, we think because of our position, because of our focus on innovation, that we ought to be able to deliver above-market revenue and profitability growth over the long term. And if you're familiar with the CONMED story, you would see that we have been doing that as you go back into 2018, 2019. Obviously, a little disruption here in 2020 when you look at how the pandemic has influenced the overall surgical market. Moving into Slide 5. How did we navigate the pandemic? We think we navigated it with an extreme focus on our customer. And I would remind you back in April in our earnings call, we said we have 3 priorities: number one, employee, customer safety and wellbeing; number two, financial security of the company; and number three, the future because we did not see the pandemic as a long-term event that would disrupt the world of surgery. We saw it as something we had to navigate. This slide that I have up in front of you, Slide 5, really calls out a few things. Number one, we still are very much focused on safety. We continue to prioritize it for our employees. We have manufacturing facilities that we've had employees continue to come into each and every day. We continue to prioritize it in our customer interactions with our sales teams. And we continue to prioritize it with every interaction as we talk about people and movement of people through our company. Second was agility and resilience, so the 2 terms that we've really tried to embrace within our company. And this one specifically speaks to our financial agility and resilience. Everybody on the call is probably familiar that we did an amendment to our credit agreement. As time has passed, it'll be true that we did not need to do that amendment, but we're very proud of how we've been able to navigate in the pandemic and work on our leverage ratios. At the height of the pandemic, the leverage ratio got up to 5.4. At the end of Q3, it was down to 4.9. And we're projecting at the end of 2021 to be below 3.5. I would just remind you, the leverage ratio was elevated because in February of 2019, we acquired Buffalo Filter. And at that point in time, we said that at the end of '21, we would be at 3. So even with the pandemic, we're still pretty close to that original chart on the leverage ratio getting down close to 3 by the end of '21. And then finally, this last part, talking about the future challenges or opportunities. We have really tried to embrace what's important to the customer as we've navigated 2020. The medical device world, really hard push, really try to embrace the best of salespeople, the best of your customer. And we've really tried to listen to what's important to the customer and not be pushing technology and be ready to embrace what the customer wants when they need it with our reps presence and with our technology presence. Jumping on to Slide 6. I want to highlight the opportunity. The first one is our orthopedics category. And if you look on the left of the slide, you'll see that our estimate for the full year is about 63% of this business for us is outside the U.S., about 37% in the U.S. It's about a 70-30 split on consumables, a little higher in 2020 because of less capital sales given the pandemic. If you move to the middle of the slide, we operate in 4 categories within the world of orthopedics. We're in sports medicine. It's the highest growth category on the page. It's market large. It's got big competitors. Tissue supports the sports medicine. We do that through our MTF partnership. And then we have 2 complementary adjacencies to the sports medicine category, our powered instruments and surgical visualization. The business of sports medicine is about 60% to 70% in the surgery center in the U.S. market. And you can see over on the right side what we're trying to highlight here is if we continue on the innovation front, if we continue by the sales force expansion and engagement with customers, that 1 market share point in each of these categories is really meaningful to the CONMED story. And we're using this based on 2019 revenue, a more normalized revenue year. But if we acquired 1 market share point in each of our categories in orthopedics, it would represent about 8% growth for the total company. So again, big markets and big opportunities for CONMED. If I now move to Slide 7, it's the same story on general surgery. A few nuances, though. You'll notice that in general surgery, it's about 70% of the revenue is in the U.S. market, 30% outside. Both orthopedics and general surgery, that pie chart is predicated on the history of how these businesses were run. And we're trying to normalize those businesses over time. Again, going over to the right side, the middle of the slide here, access, energy and instruments, 3 categories. Those 3 categories make up our advanced surgical business. Access is where the AirSeal platform sits. Energy is where the Buffalo Filter platform sits. Endoscopic technologies and critical care, 2 other businesses within general surgery, more legacy businesses. And important to note here today that as we began 2021, we took our endo -- endoscopic technologies and critical care businesses and put those together to leverage the sales footprint and de management infrastructure. Both of those businesses have done a nice job in recent years by enhancing their innovation platform. But they've also done a very nice job in exiting some noncritical categories, OEM products that we were providing that really didn't fit with where we wanted to go. So this year, we felt it appropriate to put those 2 businesses together. So on a go-forward basis, our general surgery category will be made of advanced surgical and the advanced endoscopic technologies business. But again, on the right side of your screen, you'll see that 1 market share point in each of those categories represents about 10% growth for the total company. So again, great opportunity in general surgery, great opportunity in orthopedics, all predicated again on us continuing to drive the innovation story. Moving to Slide 8. This again speaks to our focus on innovation and the future of CONMED. The first 2 bullet points here speak to Buffalo Filter and AirSeal. Those are very easy for me to talk about. They are both highly innovative platforms, high-growth platforms when we acquired them. They have both continued on that trend. And both benefited, candidly, from the pandemic as surgical societies started writing about technologies that you may want to embrace when surgery return and how these technologies would be helpful to providing a safe operating room environment. They don't -- those surgical societies don't name technologies, but they do put out specifications, and those specifications read right on these technologies. So as we got into the second quarter, the first quarter earnings call in April, we noted those surgical societies. We got to the second quarter earnings call, we said we're starting to see the benefit. In the third quarter earnings call, we said the financial implications was starting to show up in our numbers. What I'm most proud of on this slide is the third bullet point, and everybody was questioning how would R&D work in a pandemic. And literally, we moved our R&D off-site over a weekend. And what I'm really proud to share is that in 2019, we put out 62 new SKUs. We actually did better in 2020. We put out 118 new SKUs. And the key launches there include pediatric AirSeal application, a new power tool platform. We advanced both our sports offering in the hip and knee portfolios. And we recently introduced a brand-new video platform that we're really excited about. It's been years in the making. We're very excited about the early receptivity in the marketplace. And really looking forward to getting these technologies more fully embraced in the hands of our sales reps on a global sample basis and then into the marketplace. But a very exciting year and one that highlighted our continued focus on the importance of innovation in our marketplaces. Jumping to Slide 9. The next 3 slides, 9, 10 and 11, tell a little bit of the story of the importance of innovation and how it has reshaped CONMED as a company. I start with 2015, the first year we really started driving innovation. I'm not going to go through the bullet points here. But you can see in the pie chart, we were over 60% weighted towards orthopedics, and general surgery really did not have a big commercial focus. And it had a lot of, what I would call me-too products, not a lot of innovation in the portfolio. The organizational design did not embrace the customer, and it was not focused on driving innovation. It was more focused on harvesting the products that were in the marketplace. And the R&D efforts of the company were concentrated on a few bets, and it was very inconsistent in its delivery. If you fast forward to the way we see 2020 ending, the first thing you notice is the pie chart. Over 50% of our revenue is now concentrated in general surgery. Both general surgery and orthopedics have benefited from enhanced innovation, expansion of the sales team. And in both cases, an improving customer dynamic. Customers do not give you your trust because you show up with a new product. It's something that's earned over time, and it does take a while. But a steady stream of innovation, a steady stream of sales force competency expansion through better training, better hiring, better management practices have allowed us to continue to drive customer engagement year in and year out. And importantly, you'll notice on the bottom of the slide that everything we do on innovation is focused at driving a margin profile, both at the gross and operating margin that is an improvement over where we stand today. And there are very few exceptions to that when we sort through our R&D innovation cycle. So a big evolution from that first chart in 2015 to where we finish 2020. Now the third slide, we're attempting to dive into a little more detail here, Slide 11. What I've done here on the general surgery slide is put in a bar chart. And that bar chart represents the combination of the AirSeal and the Buffalo Filter platform. And what we're trying to show you here is that as we ended 2020, we estimate that over 25% of our revenue will come from those 2 platforms. And we expect that category, AirSeal and Buffalo Filter, to continue to grow north of 20% on a global basis. So again, more general surgery emphasis over the last 5 years, 2 high-growth platforms, over 25% of the revenue now accounted for by those high-growth platforms, both very early in their market development and both in a high-growth category, while we continue to enhance our innovation in the rest of general surgery and the sports medicine offering for the company. Moving on to Slide 12. We do talk about the long-term future of the company. And a year ago, we said that we were going to be picking up our emphasis on environmental, social and governance. And I would just remind everybody, this starts with the executive leadership team and with the boardroom in collaboration working together to make this an important priority for the company. And a year ago, we said we were going to be hiring a resource to lead this effort. I'm very proud to say we did hire that resource. We deferred that hire to the second half of the year given everything and the uncertainty created by the pandemic. But we've hired that resource and very excited by the early days that, that resource is leading across the company. I put up a few of the key takeaways here from our environmental, social and governance aspects. You can look at our Board. We have 30% gender diversity. And our committee chair rotation is on a cadence of every 5 years, which we think is very healthy to keep best practices moving forward. And I'd just highlight at the bottom, advancing the ESG efforts remains a focus area for CONMED. We're a long way from done here. I don't think you ever get done, candidly. I think it's an ongoing journey. But very excited by the steps that we took in 2020 even while dealing with the pandemic. And finally, on Slide 13, I just want to bring it all together here in closing thoughts. As a company, we have said from day 1, we have an intense focus on solving the unmet needs of the health care provider, and we're going to do that through innovation and that will drive increased market shares. We serve large, attractive markets. Hopefully, you take that away when you look at those 2 previous slides that I speak to the opportunity. We believe that aggregating growth over the long term will drive and can drive meaningful shareholder value. And importantly, as you go back to the very first slide, I showed in terms of the operating pillars, the way we focus on the customer, we're focused on doing things the right way. We think our ESG efforts will continue to drive that as well and being good corporate citizens. So that is the end of the presentation, Robbie. I'll turn it back to you, and we'll ask Todd to join the video here.

All right. Well, Curt, I want to follow or start on one of your last slides you had there, Slide 11, where you had basically AirSeal and Buffalo Filter, 25% of the business exiting 2020. That's a really big number, at least versus what I was thinking. So before I get to the forward-looking question, I looked, I didn't see any full fourth quarter or full 2020 numbers. But maybe you could give us a sense of how those 2 businesses have trended throughout 2020 and how that compared to your original expectations coming into the year.

Yes. No, a great question and one that we know is on the minds of investors. Those were both big investments. AirSeal was acquired and closed on January 4, 2016. Buffalo Filter was acquired and closed February 11, 2019. Both highly innovative platforms. Both high-growth platforms when we acquired them. And in the normal operating environment, both of those platforms through sales force expansion, customer education and great clinical studies have continued to have high rates of growth. As we entered 2020 and as the pandemic became more and more prevalent, we candidly weren't certain. I mean, obviously, both of those have a consumable component. So if surgery slows down, the consumable component slows down, obviously. But what we saw as we got into March and April, when the global surgical societies start putting protocols out for safe operating room environment, they don't name companies' products, but they put statements out. And when those statements read on our technology, we're able to use that marketing, if you will, that advertisement to help educate customers. And that -- those statements from SAGES and American College of Surgeons, those were extremely important to the company and really helped take 2 platforms that were already growing at a nice rate and accelerate those growth rates in 2020. And that has continued. We talked about it in the April call. We said it was starting to materially impact our results in the July call. And in the third quarter call, it clearly was demonstrated in the numbers. Again, as COVID is going to move surgical procedure volumes up or down depending on what's going on in any given geography, the consumables are going to move up or down. The real value in the COVID time period has been the marketing awareness that has been created over those 2 technologies. I couldn't have done that at 50 trade shows. But when societies put that out and the clinicians who are members of those societies read that, they start asking questions and we were ready with digital connectivity as well as when the environment allowed direct sales force connectivity to help further enhance education in that surgeon community and show that technology. And when it relates to Buffalo Filter, the nursing community, which were already very much behind these efforts. So hopefully, that gives a sense for how the years unfold in those 2 technologies.

Yes. Unfortunately, I'm a numbers guy. I'm a financial analyst. So I see Todd laughing there. Can you give us a sense -- you're thinking greater than 20% going forward, is this something that was up 50% in 2020? 30%? Just any sort of directional magnitude would even be really helpful because it's one of the top questions we get from investors.

Right. And Robbie, you're a financial guy, a numbers guy. And Todd and I are both numbers guys, but we're also consistent. We don't break out product line details like that. But I think...

I can ask, right?

You can and you should. And I think the important point to know, you just saw a slide where we said it was going to grow 20% or greater. That should give you an indication about how strong we feel about these platforms on a global basis. We do not put statements like that in slides lightly. We give those type of things great thought. Breaking out the fact that it was over 25% of the business, we gave that great thought. And we do that because they are important drivers of our platform. I also don't want those simple statements to detract from the rest of the story. We've had a lot of good growth in the CET business over years. It's smaller, obviously, but it's still a growth driver. We've had a lot of exciting technology coming into orthopedics on a global basis now. And people, I think, are aware that in orthopedics now we had some leadership transitions there. And Pat Beyer, who runs our global orthopedics franchise, he ran all of international, we're now connecting our global innovation platform for orthopedics and we think that will further enhance our outcomes in orthopedics. So we're excited by that piece of the pie as well.

So along the -- staying with the numbers, I always viewed CONMED -- I believe your guidance was for somewhere in the 6% to 8% growth range. And you're looking at end markets growing, what, 4 plus if you take out the air filtration and smoke evacuation, 25%...

3% to 5%. Yes.

Yes. So like your mantra has always been grow a little better than our competitors. So let's say, base business is 5%, 6%, something like that. Add in smoke evacuation and air filtration, well, that's -- if you do 25% of the business growing 20% plus, that's another 4 points of growth there, so. So is -- should we be looking at CONMED as like an 8% to 10% growth business coming out of COVID? Is that a crazy thought?

Well, I think, and Todd can weigh in here, the journey we were on back in 2018, we said not less than mid-single digits on the top and not less than double on the bottom. And as we exited 2019, we were closer to the high single digits. And obviously, 2020 disrupted everybody. So a little hesitant to say where we will be, but what we're setting up to be is a growth company driven by our innovation. And we've put a lot of time and energy into that. And clearly, we've had 2 very good acquisitions that have been above that. But we've got as much attention on the internal innovation. So you put it all together and things go the way we hope, we're certainly not going to back away from the not-less-than mid-single digits. And we'll see where things could go. I don't know, Todd, if you have other comments on that.

Yes. I think your logic and your math is mostly right there, Robbie. 25% of the business growing 20% is actually 5% growth. If everything else was flat, right, if everything else was 0, you're 5% with that. I think the big question in your logic chain there is when is the market going to grow? When are we post-COVID? When do we get back to that kind of 3% to 5% market growth? So yes, so with that one caveat of the when we get back there, I think your logic is right. If the market is back there, we should grow faster than the market on the rest of the portfolio, and then these growth drivers are on top of that.

Yes. Maybe we could cut out a segment here and talk really exactly about that. First, you didn't give fourth quarter numbers here, but what are you -- any trends you can give us? You're in a Reg FD environment here, so feel free to at least give us some qualitative comments around what you're seeing, your best guess as to what's to come in '21. Again, I know you haven't given guidance, but just maybe trend-wise or high-level thoughts about how you're planning out for the year. And then after that, I know there's a lot of questions. I'll get back to it. But a lot of people come to me and ask me, well, why is CONMED grow above its peers? Why does this company have better products or a more focused sales force? So I want to tackle each of those 3 things. It's basically the 3 top questions I get from investors here. So maybe if you could start with fourth quarter and the trends, and any comments you could give us on what you've seen throughout the end of 2020.

Sure. So we are not going to announce Q4 today. I think it should be obvious to everybody based on headlines and news and activity around the world that the virus was more impactful to procedures in Q4 than it was in Q3, for example, right? So the virus was a bigger headwind in Q4 than it was in Q3 for everybody, right? Our customers have proven to be resilient. I think the great news -- if you compare it back to Q2, for example, when governments took a very heavy hand in deciding what hospitals could and couldn't do, that was very damaging not only to our customers and procedures but it was damaging to public health in general, right? What was different in Q3 and Q4 -- now let's talk in the U.S. specifically. In the U.S., the government -- the governors took a step back and allowed the hospitals to do their own prioritization and own filtering of how to manage the pandemic. And we saw the resilience of procedures even in kind of high COVID case numbers, the customers were able to manage through that and be fairly resilient. It certainly wasn't anywhere close to normal procedure growth that we would expect. But I think by and large in Q3 across the industry, I think companies did pretty well and so did we. And that is maintained in Q4, right? In the U.S., governors have allowed hospitals to manage the pandemic. And so I think you'll see continued resilience from the customer. Although, as I said, obviously, they were dealing with a tougher headwind in Q4 than they were in Q3. Now internationally, you still see governments with a fairly heavy hand, right? You still see hard levers being pulled, especially in Europe and in other places. So you'll probably see more impact internationally from the pandemic in Q4 than you did in Q3. And that's probably about as much as I want to say about Q4 until we give our report at the end of the month. I will tell you that we suspended guidance back in March when the pandemic started and have not provided guidance all the way through 2020. Curt and I both really want to get back to providing guidance. We still are in this pandemic, right? I know there's lots of optimism about light at the end of the tunnel or exiting the tunnel. But we're still in the tunnel, right? And so -- but we've got a couple of weeks here before we report earnings. But we would like to get back to the guidance game. It may need to be with a wider range than we're used to or other caveats. But it's kind of -- it's an interesting situation to be in. Sitting here today, I feel much more comfortable about guiding the last 3 quarters of 2021 than I would the first quarter of 2021. We -- usually, it's the inverse. Usually, you're more confident about the near term. And I think the Q1 is probably the toughest quarter to guide right now. But anyway, that's where our head is right now, but we hope to be able to provide investors with some sort of guidance on our Q4 call.

Got it. And then just to follow up the last question I asked, what is it that allows CONMED to outperform its peers? At face value, it doesn't seem like the level of innovation is so incredibly different, yet time and time again, you're able to just grow a little bit faster than your peers in your market. So what is it that allows you to do that?

Robbie, our focus here is, it is about the growth rate versus the markets we serve. It's -- we challenge everybody to get out there and grow faster than your markets. And we say that because simply put, we're not the large market share player. Now we have a few products that are larger market share players. But number one, the assignment, the focus, if you will, is to hire people who we know can operate in this space and grow faster than the markets. We have to support them with a steady stream of innovation, and that has been the mantra from day 1. And we're agnostic. It could be organic innovation or inorganic innovation. And it doesn't have to be the entire portfolio. We've got a couple of platform technologies that really give us entrée to the OR, AirSeal. If you're the rep who brought in AirSeal, that's an only in class product, there is no other AirSeal out there. There are people who say they have AirSeal. But if you look at the clinical studies, if you look at what we can do, no one else can do that. If you look at the differentiation we have in a Buffalo Filter platform, no one else can do that. And then you jump over into orthopedics, it's a harder battle. We've said that from day 1 because we were starting in a bigger hole. But what we've really tried to do is listen to the customer and say how can we help you reduce surgical time, how can we help you be more efficient. And we're coming out with that cadence of new products in orthopedics and trying to slowly build that franchise. And so we're a very focused organization. I personally am a very focused person. I don't let a lot distract us. And I try to carry that through the organization. And the leadership team has embraced that, and they drive a very focused agenda. And 2020 was phenomenal case in point. It would have been very easy in the face of pandemic to get distracted. I could not be more proud of my management team for retaining their focus on our sales force, our internal employees and new product innovation. I said at your conference in 2015 that the CONMED story was going to be about people and products. And in the face of a pandemic, we never lost sight of our people. We gave supplemental pay to all of our manufacturing people who came in the door day in and day out at the worst period. We gave year-end bonuses to all of our manufacturing people. Took our fully commissioned sales force and gave them guaranteed pay and said, we want you in the game when the markets open back up and we're going to give you world-class training. And we didn't let any other things distract us. And I think our focus is what helps us differentiate and it carries right through the organization. So everybody wants to look for something magical. I just think it's management focus, and I have a wonderfully focused management team here. Really proud of them for what they did.

Well, great. Maybe moving on. Todd, you touched on how you feel better about giving the last 3 quarter guidance of '21. And I just pulled up Street consensus here for 2021 on EPS. And I mean you could fly a whole fleet of 747s through the EPS range here. We have $3.29 on the high end, $1.98 on the low end. And I'm sitting at $3. Consensus is $2.82. Obviously, you haven't given guidance yet. But I've heard you say time and time again that you were in the midst of a significant operating margin expansion time at CONMED as you were integrating Buffalo Filter and you continue to find ways to improve margin throughout the business. How do you feel about that statement now? We're not -- like you said, the light -- we see the light at the end of the tunnel, but we're not out of the tunnel. Do you feel like you can come out of COVID on track with your plans, it'll be a headwind? Or do you think COVID can help get you further beyond where you might have been without COVID in terms of operating margin expansion?

Yes, great question. And I think if there were parallel universes, Robbie, and there was one where COVID never happened and the reality of the one we're in, I think the reality we will have a better operating margin post-COVID than we would have if COVID had never happened. I'm saying calendar months. And we've been forced to get more lean and get more sophisticated in certain areas. And also, I think part of it is a gift from the market. We spend a lot of money on conferences and trade shows. And I think it will be a number of years before that -- the industry is back to that kind of spend. It probably eventually does return, but it's probably -- it's certainly not in 2021. It's probably not in 2022. So we've talked about for the last couple of years, we now have an infrastructure that can compete and win and support a much higher revenue base. And so by the time those kind of commercial expenses get back to pre-COVID levels, I believe we'll have a higher revenue base to absorb those costs. So that's a long way to say I feel better about our comments on operating margin profile and improving profitability in general than I did before. Now that's all in the context of being post-COVID. Now the big question is when are we post-COVID, right? And there will certainly...

You clearly have the answer.

And there will be certainly noise along the way, right? We know that for -- in gross margin, for example, when your plants are underproducing what they were built to do, which is what we've been doing this year, that throws off unfavorable manufacturing variances which cloud the story. But when you look at our -- the mix, we talk about the news you were excited about today and we are excited to share today on the contribution, the percentage of the company that's represented by AirSeal and Buffalo, those are both high-growing and accretive gross margin products. So -- and as Curt talked about, everything we're investing in is accretive gross margin. And so as you operate with focus, like Curt talked about, and along the way you're shifting the mix of the portfolio to faster-growing and higher-margin products, it's only good for your profitability.

Got it. And Todd, do I think of this -- your gross margin for the business is mid-50s, upper 50s, is this something that's more like a traditional medtech type of gross margin in the 70s for these 2 products on the disposables?

For those 2 -- so AirSeal is in the 70s. Buffalo, I told you at the beginning of the year that it would be in the 60s by the end of 2020, and we were ahead of that schedule. So Buffalo is now in the 60s and AirSeal is in the low 70s.

Great. And we just have a few minutes left here. I want to end with a question on where do we go from here? You have these 2 products and you lay out on the slide that you're still extremely low in the penetration curve, particularly with Buffalo Filter. I mean surgeons and nurses breathing the equivalent of several packs of cigarettes according to some studies. And this is a really inexpensive, fantastic way to remove the smoke. What is it going to take to get this to go from mid-single digit to some number significantly higher and when?

Robbie, I think it's just fundamental market development. And as I tried to say, the COVID environment has greatly accelerated the market development and awareness. I think as it relates specifically to smoke evacuation and filtration, the global nurse association have been incredible advocates for a safe workplace. And candidly, they deserve it. It's got to be one of the few workplaces where hazardous smoke is still allowed to exist. So I think the company is going to work on that by our expanded sales presence. The company is going to work on that through clinical training and education, clinical studies. The nurse societies continue to work on that and the messaging that these societies have put out greatly accelerated the awareness. Again, these were markets that were already growing double digits, and we think that's going to be here for a while.

Well, great. Curt, Todd, thank you so much for joining today. Unfortunately, we're out of time. But I look forward to seeing your final 2020 numbers and the big growth rates from AirSeal and Buffalo Filter, and look forward to a better 2021. Thanks for joining.

Thank you, Robbie. Thank you, everybody.