Globus Medical, Inc. (NYSE: GMED), a leading musculoskeletal
solutions company, today announced its financial results for the
quarter ended March 31, 2024.
- Worldwide net sales were $606.7
million, an increase of 119.3%, or 119.8% on a constant currency
basis
- GAAP net loss for the quarter was
$7.1 million
- GAAP diluted earnings per share
(“EPS”) was ($0.05) and non-GAAP diluted EPS was $0.72
- Non-GAAP adjusted EBITDA was $166.6
million, or 27.5% of net sales
“Since the NuVasive merger closed in September
of last year, we worked aggressively to execute our integration
strategy and are making significant progress towards rapidly
reaching steady state. I am pleased with the first quarter results
delivered by strong teamwork and partnership throughout our
organization. Surgeons and hospitals are responding favorably to
our best-in-class product offering of clinically advanced devices
and enabling technologies and worldwide sales reflect the long-term
potential of our company,” said Dan Scavilla, President and Chief
Executive Officer. “We are pleased with the engagement and
retention levels of our surgeon customers and sales force and
continue to see great opportunities to improve patient care. We are
now one company with one galvanizing mission of being the most
innovative musculoskeletal technology company in the world. I
believe the potential for Globus has never been greater, as we
continue to redefine surgery with procedural solutions built around
enabling technology.”
“Our first quarter was focused on driving
salesforce retention and alignment, process standardization and
delivering on actions to improve operating efficiencies moving
ahead, while achieving planned cost synergies,” commented Keith
Pfeil, COO-CFO. “As we are now almost nine months into operating as
a combined company, I am pleased to see us executing against our
integration objectives and realizing the early stages of our
vision. We continue to be well positioned in delivering against our
commitments for the year.”
Worldwide net sales for the first quarter of
2024 were $606.7 million, an as-reported increase of 119.3% over
the first quarter of 2023. U.S. net sales for the first quarter of
2024 increased by 106.3% compared to the first quarter of 2023.
International net sales increased by 190.7% over the first quarter
of 2023 on an as-reported basis, and an increase of 194.1% on a
constant currency basis. Net Sales increases were driven by the
addition of NuVasive, as well as increased volume of spine product
sales and enabling technology products and services.
GAAP net loss for the first quarter of 2024 was
$7.1 million, a decrease of 114.5% over the same period in the
prior year. Diluted EPS for the first quarter was ($0.05), compared
to $0.48 for the first quarter of 2023. The GAAP net loss was
primarily driven by the amortization costs of
purchase-accounting-related fair-value step ups and restructuring
costs. Non-GAAP diluted EPS for the first quarter of 2024, which
excludes, among other costs, both acquisition related and
restructuring costs, was $0.72, compared to $0.53 in the first
quarter of 2023, an increase of 36.4%.
Net cash provided by operating activities was
$52.4 million, and non-GAAP free cash flow was $23.8 million for
the first quarter of 2024.
2024 Annual
Guidance
The Company today updated its guidance for full year 2024
revenue in the range of $2.460 to $2.485 billion, and non-GAAP
fully diluted earnings per share in the range of $2.75 to $2.85.
This updated guidance is an increase over the prior full year 2024
revenue guidance of $2.450 to $2.475 billion, and non-GAAP fully
diluted earnings per share guidance of $2.68 to $2.70.
Conference Call Information
Globus Medical will hold a teleconference to
discuss its first quarter 2024 results with the investment
community at 4:30 p.m. Eastern Time today. Participants may access
the conference call live via webcast on the Investors page of
Globus Medical’s website at
http://www.investors.globusmedical.com/news-events/events-webcasts.
To participate via telephone, please register in
advance at this link. Upon registration, all telephone participants
will receive a confirmation email detailing how to join the
conference call, including the dial-in number along with a unique
passcode and registrant ID that can be used to access the call. The
audio archive will be available after the call on the Investor page
of the Globus Medical website.
About Globus Medical, Inc.
Based in Audubon, Pennsylvania, Globus Medical,
Inc. was founded in 2003 by an experienced team of professionals
with a shared vision to create products that enable surgeons to
promote healing in patients with musculoskeletal disorders.
Additional information can be accessed at
www.globusmedical.com.
Non-GAAP Financial Measures
To supplement our financial statements prepared
in accordance with U.S. generally accepted accounting principles
(“U.S. GAAP”), management uses certain non-GAAP financial measures.
For example, non-GAAP Adjusted EBITDA, which represents net income
before interest income, net and other non-operating expenses,
provision for income taxes, depreciation and amortization,
stock-based compensation expense, provision for litigation,
acquisition of in-process research and development, merger and
acquisition related costs/licensing, restructuring related costs,
certain foreign currency acquisition-related impacts, and gains and
losses from strategic investments, is useful as an additional
measure of operating performance, and particularly as a measure of
comparative operating performance from period to period, as it is
reflective of changes in pricing decisions, cost controls and other
factors that affect operating performance, and it removes the
effect of our capital structure, asset base, income taxes and
interest income and expense. Our management also uses non-GAAP
Adjusted EBITDA for planning purposes, including the preparation of
our annual operating budget and financial projections. Provision
for litigation represents costs incurred for litigation settlements
or unfavorable verdicts when the loss is known or considered
probable and the amount can be reasonably estimated, or in the case
of a favorable settlement, when income is realized. Merger and
acquisition related costs/licensing represents the change in fair
value of business-acquisition-related contingent consideration;
costs related to integrating recently acquired businesses,
including but not limited to costs to exit or convert contractual
obligations, severance, retention bonus, duplicative costs and
information system conversion; and specific costs related to the
consummation of the acquisition process such as banker fees, legal
fees, and other acquisition related professional fees, as well as
one-time licensing fees. Restructuring related costs include
severance, retention bonus, accelerated stock-based compensation
expense, and costs associated with consolidating facilities.
Acquisition of in-process research and development represents the
expensing of acquired assets with no alternative future use and
related fees. We also adjusted for certain foreign currency impacts
related to the acquisition costs and gains/losses on strategic
investments within other assets as we believe these impacts are not
a measure of our operating performance.
In addition, for the period ended March 31, 2024
and for other comparative periods, we are presenting non-GAAP net
income and non-GAAP Diluted Earnings Per Share, which represent net
income and diluted earnings per share excluding the provision for
litigation, amortization of intangibles, acquisition of in-process
research and development, merger and acquisition related
costs/licensing, restructuring related costs, certain foreign
currency impacts, gains and losses from strategic investments, the
impact of dilution attributable to the Convertible Notes, and the
tax effects of all of the foregoing adjustments. We also present
Non-GAAP gross profit, which excludes the impacts of any inventory
acquisition-related costs within cost of goods sold. The tax effect
adjustment represents the tax effect of the pre-tax non-GAAP
adjustments excluded from non-GAAP net income. The tax impact of
the non-GAAP adjustments is calculated based on the consolidated
effective tax rate on a GAAP basis, applied to the non-GAAP
adjustments, unless the underlying item has a materially different
tax treatment, in which case the estimated tax rate applicable to
the adjustment is used. We believe these non-GAAP measures are also
useful indicators of our operating performance, and particularly as
additional measures of comparative operating performance from
period to period as they remove the effects of the foregoing items,
which we believe are not reflective of underlying business trends.
Additionally, for the period ended March 31, 2024 and for other
comparative periods, we also define the non-GAAP measure of free
cash flow as the net cash provided by operating activities,
adjusted for the impact of restricted cash, less the cash impact of
purchases of property and equipment. We believe that this financial
measure provides meaningful information for evaluating our overall
financial performance for comparative periods as it facilitates an
assessment of funds available to satisfy current and future
obligations and fund acquisitions. Furthermore, the non-GAAP
measure of constant currency net sales growth is calculated by
translating current year net sales at the same average exchange
rates in effect during the applicable prior year period. We believe
constant currency net sales growth provides insight to the
comparative increase or decrease in period net sales, in dollar and
percentage terms, excluding the effects of fluctuations in foreign
currency exchange rates.
Non-GAAP adjusted EBITDA, non-GAAP net income,
non-GAAP diluted earnings per share, non-GAAP gross profit, free
cash flow and constant currency net sales growth are not calculated
in conformity with U.S. GAAP. Non-GAAP financial measures have
limitations as analytical tools and should not be considered in
isolation or as a substitute for financial measures prepared in
accordance with U.S. GAAP. These measures do not include certain
expenses that may be necessary to evaluate our liquidity or
operating results. Our definitions of non-GAAP adjusted EBITDA,
non-GAAP net income, non-GAAP diluted earnings per share, non-GAAP
gross profit, free cash flow and constant currency net sales growth
may differ from that of other companies and therefore may not be
comparable.
Safe Harbor Statements
All statements included in this press release
other than statements of historical fact are forward-looking
statements and may be identified by their use of words such as
“believe,” “may,” “might,” “could,” “will,” “aim,” “estimate,”
“continue,” “anticipate,” “intend,” “expect,” “plan” and other
similar terms. These forward-looking statements are based on our
current assumptions, expectations and estimates of future events
and trends. Forward-looking statements are only predictions and are
subject to many risks, uncertainties and other factors that may
affect our businesses and operations and could cause actual results
to differ materially from those predicted. These risks and
uncertainties include, but are not limited to, the risks and costs
associated with the integration of the NuVasive business and our
ability to successfully integrate and achieve anticipated synergies
with the integration, health epidemics, pandemics and similar
outbreaks, factors affecting our quarterly results, our ability to
manage our growth, our ability to sustain our profitability, demand
for our products, our ability to compete successfully (including
without limitation our ability to convince surgeons to use our
products and our ability to attract and retain sales and other
personnel), our ability to rapidly develop and introduce new
products, our ability to develop and execute on successful business
strategies, our ability to comply with laws and regulations that
are or may become applicable to our businesses, our ability to
safeguard our intellectual property, our success in defending legal
proceedings brought against us, trends in the medical device
industry, general economic conditions, and other risks. For a
discussion of these and other risks, uncertainties and other
factors that could affect our results, you should refer to the
disclosure contained in our most recent annual report on Form 10-K
filed with the U.S. Securities and Exchange Commission, including
the sections labeled “Risk Factors” and “Cautionary Note Concerning
Forward-Looking Statements,” and in our Forms 10-Q, Forms 8-K and
other filings with the U.S. Securities and Exchange Commission.
These documents are available at www.sec.gov. Moreover, we operate
in an evolving environment. New risk factors and uncertainties
emerge from time to time and it is not possible for us to predict
all risk factors and uncertainties, nor can we assess the impact of
all factors on our business or the extent to which any factor, or
combination of factors, may cause actual results to differ
materially from those contained in any forward-looking statements.
Given these risks and uncertainties, readers are cautioned not to
place undue reliance on any forward-looking statements.
Forward-looking statements contained in this press release speak
only as of the date of this press release. We undertake no
obligation to update any forward-looking statements as a result of
new information, events or circumstances or other factors arising
or coming to our attention after the date hereof.
GLOBUS MEDICAL, INC. AND
SUBSIDIARIESCONDENSED CONSOLIDATED STATEMENTS OF
INCOME(unaudited)
|
|
|
|
|
|
Three Months Ended |
|
March 31, |
(In thousands, except
per share amounts) |
2024 |
|
2023 |
Net sales |
$ |
606,666 |
|
$ |
276,688 |
Cost of sales |
|
241,487 |
|
|
70,825 |
Gross profit |
|
365,179 |
|
|
205,863 |
|
|
|
|
|
Operating
expenses: |
|
|
|
|
Research and development |
|
57,268 |
|
|
21,082 |
Selling, general and administrative |
|
248,710 |
|
|
122,416 |
Provision for litigation, net |
|
(31 |
) |
|
— |
Amortization of intangibles |
|
29,676 |
|
|
4,601 |
Acquisition-related costs |
|
2,418 |
|
|
1,361 |
Restructuring Costs |
|
19,141 |
|
|
— |
Total operating expenses |
|
357,182 |
|
|
149,460 |
|
|
|
|
|
Operating income/(loss) |
|
7,997 |
|
|
56,403 |
|
|
|
|
|
Other
income/(expense), net |
|
|
|
|
Interest income/(expense), net |
|
(1,894 |
) |
|
6,497 |
Foreign currency transaction gain/(loss) |
|
(15,371 |
) |
|
212 |
Other income/(expense) |
|
710 |
|
|
77 |
Total other income/(expense), net |
|
(16,555 |
) |
|
6,786 |
|
|
|
|
|
Income/(loss) before income taxes |
|
(8,558 |
) |
|
63,189 |
Income tax
provision/(benefit) |
|
(1,441 |
) |
|
14,060 |
|
|
|
|
|
Net
income/(loss) |
$ |
(7,117 |
) |
$ |
49,129 |
|
|
|
|
|
Other comprehensive
income/(loss), net of tax: |
|
|
|
|
Unrealized gain/(loss) on marketable securities |
|
379 |
|
|
4,298 |
Foreign currency translation gain/(loss) |
|
(1,232 |
) |
|
910 |
Total other comprehensive
income/(loss), net of tax |
|
(853 |
) |
|
5,208 |
Comprehensive
income/(loss) |
$ |
(7,970 |
) |
$ |
54,337 |
|
|
|
|
|
Earnings per
share: |
|
|
|
|
Basic |
$ |
(0.05 |
) |
$ |
0.49 |
Diluted |
$ |
(0.05 |
) |
$ |
0.48 |
Weighted average
shares outstanding: |
|
|
|
|
Basic |
|
135,358 |
|
|
100,279 |
Diluted |
|
135,358 |
|
|
102,196 |
|
|
|
|
|
|
GLOBUS MEDICAL, INC. AND
SUBSIDIARIESCONDENSED CONSOLIDATED BALANCE
SHEETS(unaudited)
|
|
|
|
|
|
|
|
|
March 31, |
|
December 31, |
(In thousands, except
share and per share values) |
|
2024 |
|
2023 |
ASSETS |
|
|
|
|
|
|
Current
assets: |
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
354,062 |
|
|
$ |
467,292 |
|
Short-term marketable
securities |
|
|
80,408 |
|
|
|
50,497 |
|
Accounts receivable, net of
allowances of $11,527 and $8,934, respectively |
|
|
534,333 |
|
|
|
503,235 |
|
Inventories |
|
|
816,196 |
|
|
|
848,135 |
|
Prepaid expenses and other
current assets |
|
|
43,209 |
|
|
|
44,580 |
|
Income taxes receivable |
|
|
366 |
|
|
|
1,635 |
|
Total current assets |
|
|
1,828,574 |
|
|
|
1,915,374 |
|
Property and equipment, net of
accumulated depreciation of $447,122 and $425,695,
respectively |
|
|
578,887 |
|
|
|
586,932 |
|
Operating lease right of use
assets |
|
|
56,347 |
|
|
|
59,931 |
|
Long-term marketable
securities |
|
|
51,256 |
|
|
|
75,428 |
|
Intangible assets, net |
|
|
888,208 |
|
|
|
924,603 |
|
Goodwill |
|
|
1,451,106 |
|
|
|
1,434,540 |
|
Other assets |
|
|
78,216 |
|
|
|
78,590 |
|
Deferred income taxes |
|
|
11,018 |
|
|
|
10,685 |
|
Total assets |
|
$ |
4,943,612 |
|
|
$ |
5,086,083 |
|
|
|
|
|
|
|
|
LIABILITIES AND
EQUITY |
|
|
|
|
|
|
Current
liabilities: |
|
|
|
|
|
|
Accounts payable |
|
$ |
50,487 |
|
|
$ |
56,671 |
|
Accrued expenses |
|
|
210,011 |
|
|
|
240,460 |
|
Operating lease
liabilities |
|
|
11,749 |
|
|
|
11,967 |
|
Income taxes payable |
|
|
43,058 |
|
|
|
3,845 |
|
Senior convertible notes |
|
|
424,044 |
|
|
|
— |
|
Business acquisition
liabilities |
|
|
29,649 |
|
|
|
61,035 |
|
Deferred revenue |
|
|
17,077 |
|
|
|
18,369 |
|
Payable to broker |
|
|
249 |
|
|
|
— |
|
Total current liabilities |
|
|
786,324 |
|
|
|
392,347 |
|
Business acquisition
liabilities, net of current portion |
|
|
81,661 |
|
|
|
78,323 |
|
Operating lease
liabilities |
|
|
89,809 |
|
|
|
91,037 |
|
Senior convertible notes |
|
|
— |
|
|
|
417,400 |
|
Deferred income taxes and
other tax liabilities |
|
|
39,952 |
|
|
|
84,421 |
|
Other liabilities |
|
|
23,505 |
|
|
|
24,596 |
|
Total liabilities |
|
|
1,021,251 |
|
|
|
1,088,124 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity: |
|
|
|
|
|
|
Class A common stock; $0.001
par value. Authorized 500,000,000 shares; issued and outstanding
112,626,136 and 113,905,565 shares at March 31, 2024 and
December 31, 2023, respectively |
|
|
113 |
|
|
|
114 |
|
Class B common stock; $0.001
par value. Authorized 275,000,000 shares; issued and outstanding
22,430,097 and 22,430,097 shares at March 31, 2024 and
December 31, 2023, respectively |
|
|
22 |
|
|
|
22 |
|
Additional paid-in
capital |
|
|
2,886,436 |
|
|
|
2,870,749 |
|
Accumulated other
comprehensive income/(loss) |
|
|
(11,045 |
) |
|
|
(10,192 |
) |
Retained earnings |
|
|
1,046,835 |
|
|
|
1,137,266 |
|
Total equity |
|
|
3,922,361 |
|
|
|
3,997,959 |
|
Total liabilities and equity |
|
$ |
4,943,612 |
|
|
$ |
5,086,083 |
|
|
|
|
|
|
|
|
|
|
GLOBUS MEDICAL, INC. AND
SUBSIDIARIESCONDENSED CONSOLIDATED STATEMENTS OF
CASH FLOWS(unaudited)
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
March 31, |
(In
thousands) |
|
2024 |
|
2023 |
Cash flows from
operating activities: |
|
|
|
|
|
|
Net income |
|
$ |
(7,117 |
) |
|
$ |
49,129 |
|
Adjustments to reconcile net
income to net cash provided by operating activities: |
|
|
|
|
|
|
Acquired in-process research and development |
|
|
12,613 |
|
|
|
— |
|
Depreciation and amortization |
|
|
55,261 |
|
|
|
18,108 |
|
Amortization of premiums on marketable securities |
|
|
24 |
|
|
|
482 |
|
Provision for excess and obsolete inventory |
|
|
3,914 |
|
|
|
2,055 |
|
Amortization of inventory fair value step up |
|
|
53,670 |
|
|
|
— |
|
Amortization of 2025 Note fair value step up |
|
|
6,658 |
|
|
|
— |
|
Stock-based compensation expense |
|
|
17,260 |
|
|
|
8,953 |
|
Allowance for doubtful accounts |
|
|
2,968 |
|
|
|
810 |
|
Change in fair value of business acquisition liabilities |
|
|
(165 |
) |
|
|
(446 |
) |
Change in deferred income taxes |
|
|
(45,091 |
) |
|
|
(3,979 |
) |
(Gain)/loss on disposal of assets, net |
|
|
34 |
|
|
|
81 |
|
Payment of business acquisition-related liabilities |
|
|
(16,115 |
) |
|
|
(772 |
) |
Net (gain)/loss from foreign currency adjustment |
|
|
11,191 |
|
|
|
— |
|
(Increase) decrease in: |
|
|
|
|
|
|
Accounts receivable |
|
|
(36,393 |
) |
|
|
(9,861 |
) |
Inventories |
|
|
(8,986 |
) |
|
|
(22,470 |
) |
Prepaid expenses and other assets |
|
|
1,778 |
|
|
|
836 |
|
Increase (decrease) in: |
|
|
|
|
|
|
Accounts payable |
|
|
(5,753 |
) |
|
|
3,916 |
|
Accrued expenses and other liabilities |
|
|
(33,881 |
) |
|
|
(9,969 |
) |
Income taxes payable/receivable |
|
|
40,517 |
|
|
|
16,440 |
|
Net cash provided
by/(used in) operating activities |
|
|
52,387 |
|
|
|
53,313 |
|
Cash flows from
investing activities: |
|
|
|
|
|
|
Purchases of marketable securities |
|
|
(8,017 |
) |
|
|
(69,141 |
) |
Maturities of marketable securities |
|
|
85 |
|
|
|
85,546 |
|
Sales of marketable securities |
|
|
2,565 |
|
|
|
13,240 |
|
Purchases of property and equipment |
|
|
(28,568 |
) |
|
|
(15,991 |
) |
Acquisition of businesses, net of cash acquired and purchases of
intangible and other assets |
|
|
(12,649 |
) |
|
|
(2,662 |
) |
Net cash provided
by/(used in) investing activities |
|
|
(46,584 |
) |
|
|
10,992 |
|
Cash flows from
financing activities: |
|
|
|
|
|
|
Payment of business acquisition-related liabilities |
|
|
(30,475 |
) |
|
|
(1,919 |
) |
Net proceeds from exercise of stock options |
|
|
3,413 |
|
|
|
4,859 |
|
Payments related to tax withholdings for share-based
compensation |
|
|
(5,343 |
) |
|
|
— |
|
Repurchase of common stock |
|
|
(83,316 |
) |
|
|
— |
|
Net cash provided
by/(used in) financing activities |
|
|
(115,721 |
) |
|
|
2,940 |
|
Effect of foreign exchange
rates on cash |
|
|
(3,312 |
) |
|
|
(26 |
) |
Net
increase/(decrease) in cash and cash equivalents |
|
|
(113,230 |
) |
|
|
67,219 |
|
Cash and cash equivalents at
beginning of period |
|
|
467,292 |
|
|
|
150,466 |
|
Cash and cash
equivalents at end of period |
|
$ |
354,062 |
|
|
$ |
217,685 |
|
|
|
|
|
|
|
|
Supplemental
disclosures of cash flow information: |
|
|
|
|
|
|
Income taxes paid, net |
|
$ |
1,967 |
|
|
$ |
1,724 |
|
Non-cash investing and
financing activities: |
|
|
|
|
|
|
Accrued purchases of property and equipment |
|
$ |
5,426 |
|
|
$ |
6,493 |
|
|
|
|
|
|
|
|
|
|
Supplemental Financial
Information
Net Sales by Product
Category:
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
March 31, |
(In
thousands) |
|
2024 |
|
2023 |
Musculoskeletal Solutions |
|
$ |
574,697 |
|
$ |
251,607 |
Enabling Technologies |
|
|
31,969 |
|
|
25,081 |
Total net sales |
|
$ |
606,666 |
|
$ |
276,688 |
|
|
|
|
|
|
|
Liquidity and Capital
Resources:
|
|
|
|
|
|
|
|
|
March 31, |
|
December 31, |
(In
thousands) |
|
2024 |
|
2023 |
Cash and cash equivalents |
|
$ |
354,062 |
|
$ |
467,292 |
Short-term marketable
securities |
|
|
80,408 |
|
|
50,497 |
Long-term marketable
securities |
|
|
51,256 |
|
|
75,428 |
Total cash, cash equivalents
and marketable securities |
|
$ |
485,726 |
|
$ |
593,217 |
|
|
|
|
|
|
|
The following tables reconcile GAAP to Non-GAAP
financial measures.
Non-GAAP Adjusted EBITDA Reconciliation
Table:
|
|
|
|
|
|
|
Three Months Ended |
|
March 31, |
(In thousands, except
percentages) |
2024 |
|
2023 |
Net income/(loss) |
$ |
(7,117 |
) |
|
$ |
49,129 |
|
Interest (income)/expense,
net |
|
1,894 |
|
|
|
(6,497 |
) |
Provision for income
taxes |
|
(1,441 |
) |
|
|
14,060 |
|
Depreciation and
amortization |
|
55,261 |
|
|
|
18,109 |
|
EBITDA |
|
48,597 |
|
|
|
74,801 |
|
Stock-based compensation
expense |
|
12,439 |
|
|
|
8,953 |
|
Provision for litigation,
net |
|
(31 |
) |
|
|
— |
|
Merger and acquisition-related
costs/licensing |
|
56,387 |
|
|
|
1,375 |
|
Acquisition of in-process
research and development |
|
12,613 |
|
|
|
— |
|
Net (gain) loss from strategic
investments |
|
223 |
|
|
|
— |
|
Non-cash acquisition-related
foreign currency impacts |
|
11,191 |
|
|
|
— |
|
Restructuring costs |
|
25,162 |
|
|
|
— |
|
Adjusted EBITDA |
$ |
166,581 |
|
|
$ |
85,129 |
|
|
|
|
|
|
|
Net income/(loss) as a
percentage of net sales |
|
-1.2 |
% |
|
|
17.8 |
% |
Adjusted EBITDA as a
percentage of net sales |
|
27.5 |
% |
|
|
30.8 |
% |
|
|
|
|
|
|
|
|
Non-GAAP Net Income Reconciliation
Table:
|
|
|
|
|
|
|
Three Months Ended |
|
March 31, |
(In
thousands) |
2024 |
|
2023 |
Net income/(loss) |
$ |
(7,117 |
) |
|
$ |
49,129 |
|
Provision for litigation,
net |
|
(31 |
) |
|
|
— |
|
Amortization of
intangibles |
|
29,676 |
|
|
|
4,601 |
|
Merger and acquisition-related
costs/licensing |
|
56,387 |
|
|
|
1,375 |
|
Acquisition of in-process
research and development |
|
12,613 |
|
|
|
— |
|
Non-cash acquisition-related
foreign currency impacts |
|
11,191 |
|
|
|
— |
|
Restructuring Costs |
|
25,162 |
|
|
|
— |
|
Net gain/(loss) on strategic
investments |
|
223 |
|
|
|
— |
|
Tax effect of adjusting
items |
|
(30,006 |
) |
|
|
(1,329 |
) |
Non-GAAP net
income/(loss) |
$ |
98,098 |
|
|
$ |
53,776 |
|
|
|
|
|
|
|
|
|
Non-GAAP Gross Profit Reconciliation
Table:
|
|
|
|
|
|
|
Three Months Ended |
|
March 31, |
(In
thousands) |
2024 |
|
2023 |
Cost of sales |
$ |
241,487 |
|
|
$ |
70,825 |
|
Merger and acquisition related
costs/licensing |
|
(53,670 |
) |
|
|
(1,361 |
) |
Adjusted cost of sales |
$ |
187,817 |
|
|
$ |
69,464 |
|
|
|
|
|
|
|
Adjusted gross profit |
$ |
418,849 |
|
|
$ |
207,224 |
|
Adjusted gross profit as a
percentage |
|
69.0 |
% |
|
|
74.9 |
% |
|
|
|
|
|
|
|
|
Non-GAAP Diluted Earnings Per Share
Reconciliation Table:
|
|
|
|
|
|
|
Three Months Ended |
|
March 31, |
(In
thousands) |
2024 |
|
2023 |
Diluted earnings per share, as reported |
$ |
(0.05 |
) |
|
$ |
0.48 |
|
Provision for litigation,
net |
|
(0.00 |
) |
|
|
— |
|
Amortization of
intangibles |
|
0.22 |
|
|
|
0.05 |
|
Merger and acquisition-related
costs/licensing |
|
0.41 |
|
|
|
0.01 |
|
Acquisition of in-process
research and development |
|
0.09 |
|
|
|
— |
|
Net (gain) loss from strategic
investments |
|
0.00 |
|
|
|
— |
|
Non-cash acquisition-related
foreign currency impacts |
|
0.08 |
|
|
|
— |
|
Tax effect of adjusting
items |
|
(0.22 |
) |
|
|
(0.01 |
) |
Restructuring costs |
|
0.18 |
|
|
|
— |
|
Non-GAAP diluted earnings per
share |
$ |
0.72 |
|
|
$ |
0.53 |
|
|
|
|
|
|
|
|
|
*amounts might not add due to rounding
Non-GAAP Free Cash Flow Reconciliation
Table:
|
|
|
|
|
|
|
Three Months Ended |
|
March 31, |
(In
thousands) |
2024 |
|
2023 |
Net cash provided by operating activities |
$ |
52,387 |
|
|
$ |
53,313 |
|
Purchases of property and
equipment |
|
(28,568 |
) |
|
|
(15,991 |
) |
Free cash flow |
$ |
23,819 |
|
|
$ |
37,322 |
|
|
|
|
|
|
|
|
|
Non-GAAP Net Sales on a Constant Currency
Basis Comparative Table:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Reported |
|
Currency Impact
on |
|
Constant Currency |
|
|
March 31, |
|
Net Sales |
|
Current |
|
Net Sales |
(In thousands, except
percentages) |
|
2024 |
|
2023 |
|
Growth |
|
Period Net Sales |
|
Growth |
United States |
|
$ |
482,927 |
|
$ |
234,120 |
|
106.3 |
% |
|
$ |
— |
|
|
106.3 |
% |
International |
|
|
123,739 |
|
|
42,568 |
|
190.7 |
% |
|
|
(1,460 |
) |
|
194.1 |
% |
Total net sales |
|
$ |
606,666 |
|
$ |
276,688 |
|
119.3 |
% |
|
$ |
(1,460 |
) |
|
119.8 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Contact:Brian KearnsSenior
Vice President, Business Development and Investor RelationsPhone:
(610) 930-1800Email:
investors@globusmedical.comwww.globusmedical.com
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