Globus Medical, Inc. (NYSE: GMED), a leading musculoskeletal
solutions company, today announced its financial results for the
quarter ended June 30, 2023.
- Worldwide net sales were $291.6
million, an increase of 10.6%
- GAAP net income for the quarter was
$57.7 million
- GAAP diluted earnings per share
(“EPS”) was $0.57 and non-GAAP diluted EPS was $0.63
- Non-GAAP adjusted EBITDA was $96.1
million, or 33.0% of net sales
“Globus achieved a record quarter, delivering
our highest quarterly revenue yet of $292 million, an increase of
10.6% over the second quarter of 2022. Non-GAAP EPS was $0.63, an
increase of 12.3%” said Dan Scavilla, President and CEO. “Our U.S.
Spine business launched three innovative new products in the
quarter, two of which are focused on the scoliosis market. The
REFLECT™ Scoliosis Correction System was designed to correct
progressive scoliosis in young patients while preserving motion and
allowing for future modulated growth. REFLECT™ is the company’s
first FDA Humanitarian Device Exemption (HDE) product launch. We
also launched the MARVEL™ Growing Rod System, which is designed for
pediatric patients with early onset scoliosis to obtain and
maintain correction while allowing for growth through minimally
invasive distraction. I would like to congratulate our talented
Product Development team for bringing these two innovative products
to market so we can help patients with spine disorders live more
healthy lives.”
Worldwide net sales for the second quarter of
2023 were $291.6 million, an
as-reported increase of 10.6% over the second
quarter of 2022. U.S. net sales for the second quarter of
2023 increased by 9.0% compared to the second quarter of
2022. International net sales increased by 20.2% over the
second quarter of 2022 on an as-reported basis, and an increase of
22.0% on a constant currency basis.
GAAP net income for the second quarter of 2023
was $57.7 million, an increase of 5.7% over the same
period in the prior year. Diluted EPS for the second quarter
was $0.57, compared to $0.53 for the second quarter
of 2022. Non-GAAP diluted EPS for the second quarter of 2023 was
$0.63, compared to $0.56 in the second quarter of 2022 an increase
of 12.3% driven primarily by higher net sales.
Net cash provided by operating activities
was $35.0 million, and non-GAAP free cash flow
was $17.2 million for the second quarter of 2023. The
Company remains debt free.
2023 Annual
Guidance
The Company today increased its full year 2023 net sales
guidance to $1.125 billion, up from $1.100 billion, and reaffirmed
non-GAAP diluted earnings per share of $2.30.
Conference Call Information
Globus Medical will hold a teleconference to
discuss its second quarter 2023 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.
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 related costs/licensing, and acquisition of in-process
research and development, 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. 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, 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. Acquisition of in-process
research and development represents the expensing of acquired
assets with no alternative future use and related fees.
In addition, for the period ended June 30, 2023
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 related
costs/licensing, acquisition of in-process research and
development, and the tax effects of all of the foregoing
adjustments. 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
litigation, amortization of intangibles, acquisition related
costs/licensing, acquisition of in-process research and
development, and the tax effects of all of the foregoing
adjustments, which we believe are not reflective of underlying
business trends. Additionally, for the period ended June 30, 2023
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, 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, 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 occurrence of
any change, event, series of events or circumstances that could
give rise to the termination of the merger contemplated by the
Agreement and Plan of Merger currently pending between Globus and
NuVasive, Inc. (the “Merger Agreement”), including a termination of
the Merger Agreement under circumstances that could require Globus
to pay a termination fee to NuVasive or require NuVasive to pay a
termination fee to Globus; the inability to complete the Merger due
to the failure to satisfy any of the conditions to the completion
of the Merger, including receipt of the necessary approval under
the Hart-Scott-Rodino Antitrust Improvements Act of 1976 (the “HSR
Act”), in a timely manner or otherwise; any unexpected costs,
liabilities or delays related to the NuVasive transaction; the
respective businesses of Globus and NuVasive may suffer as a result
of uncertainty surrounding the transaction; the effect of the
announcement of the transaction on the ability of Globus or
NuVasive to retain and hire key personnel and maintain
relationships with customers, suppliers and others with whom Globus
or NuVasive does business, or on Globus’ or NuVasive’s operating
results and business generally; health epidemics, pandemics and
similar outbreaks, including the COVID-19 pandemic, 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 |
|
Six Months Ended |
|
|
June 30, |
|
June 30, |
(In thousands, except
per share amounts) |
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
Net sales |
|
$ |
291,615 |
|
|
$ |
263,648 |
|
|
$ |
568,303 |
|
|
$ |
494,197 |
|
Cost of goods sold |
|
|
76,473 |
|
|
|
68,470 |
|
|
|
147,298 |
|
|
|
127,637 |
|
Gross profit |
|
|
215,142 |
|
|
|
195,178 |
|
|
|
421,005 |
|
|
|
366,560 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
Research and development |
|
|
21,347 |
|
|
|
17,395 |
|
|
|
42,429 |
|
|
|
34,807 |
|
Selling, general and administrative |
|
|
120,069 |
|
|
|
106,718 |
|
|
|
242,485 |
|
|
|
207,466 |
|
Provision for litigation, net |
|
|
(2,740 |
) |
|
|
— |
|
|
|
(2,740 |
) |
|
|
2,341 |
|
Amortization of intangibles |
|
|
4,547 |
|
|
|
4,393 |
|
|
|
9,148 |
|
|
|
8,905 |
|
Acquisition related costs |
|
|
5,707 |
|
|
|
(1,104 |
) |
|
|
7,068 |
|
|
|
(1,180 |
) |
Total operating expenses |
|
|
148,930 |
|
|
|
127,402 |
|
|
|
298,390 |
|
|
|
252,339 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income/(loss) |
|
|
66,212 |
|
|
|
67,776 |
|
|
|
122,615 |
|
|
|
114,221 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
income/(expense), net |
|
|
|
|
|
|
|
|
|
|
|
|
Interest income/(expense), net |
|
|
8,294 |
|
|
|
2,476 |
|
|
|
14,791 |
|
|
|
5,019 |
|
Foreign currency transaction gain/(loss) |
|
|
(548 |
) |
|
|
(1,107 |
) |
|
|
(336 |
) |
|
|
(1,498 |
) |
Other income/(expense) |
|
|
716 |
|
|
|
1,395 |
|
|
|
793 |
|
|
|
1,696 |
|
Total other income/(expense), net |
|
|
8,462 |
|
|
|
2,764 |
|
|
|
15,248 |
|
|
|
5,217 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income/(loss) before income taxes |
|
|
74,674 |
|
|
|
70,540 |
|
|
|
137,863 |
|
|
|
119,438 |
|
Income tax provision |
|
|
16,962 |
|
|
|
15,950 |
|
|
|
31,022 |
|
|
|
26,764 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
income/(loss) |
|
$ |
57,712 |
|
|
$ |
54,590 |
|
|
$ |
106,841 |
|
|
$ |
92,674 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other comprehensive
income/(loss), net of tax: |
|
|
|
|
|
|
|
|
|
|
|
|
Unrealized gain/(loss) on marketable securities |
|
|
40 |
|
|
|
(5,031 |
) |
|
|
4,338 |
|
|
|
(13,859 |
) |
Foreign currency translation gain/(loss) |
|
|
315 |
|
|
|
(3,170 |
) |
|
|
1,225 |
|
|
|
(4,737 |
) |
Total other comprehensive
income/(loss), net of tax |
|
|
355 |
|
|
|
(8,201 |
) |
|
|
5,563 |
|
|
|
(18,596 |
) |
Comprehensive
income/(loss) |
|
$ |
58,067 |
|
|
$ |
46,389 |
|
|
$ |
112,404 |
|
|
$ |
74,078 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per
share: |
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
0.57 |
|
|
$ |
0.54 |
|
|
$ |
1.06 |
|
|
$ |
0.92 |
|
Diluted |
|
$ |
0.57 |
|
|
$ |
0.53 |
|
|
$ |
1.05 |
|
|
$ |
0.90 |
|
Weighted average
shares outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
100,373 |
|
|
|
100,671 |
|
|
|
100,326 |
|
|
|
101,136 |
|
Diluted |
|
|
101,782 |
|
|
|
102,884 |
|
|
|
101,989 |
|
|
|
103,480 |
|
GLOBUS MEDICAL, INC. AND
SUBSIDIARIESCONDENSED CONSOLIDATED BALANCE
SHEETS(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30, |
|
December 31, |
(In thousands, except
share and per share values) |
|
2023 |
|
|
2022 |
|
ASSETS |
|
|
|
|
|
|
Current
assets: |
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
306,452 |
|
|
$ |
150,466 |
|
Short-term marketable
securities |
|
|
306,376 |
|
|
|
295,592 |
|
Accounts receivable, net of
allowances of $6,245 and $4,724, respectively |
|
|
240,184 |
|
|
|
213,247 |
|
Inventories |
|
|
335,556 |
|
|
|
298,981 |
|
Prepaid expenses and other
current assets |
|
|
19,684 |
|
|
|
20,997 |
|
Income taxes receivable |
|
|
1,758 |
|
|
|
4,061 |
|
Total current assets |
|
|
1,210,010 |
|
|
|
983,344 |
|
Property and equipment, net of
accumulated depreciation of $364,215 and $343,036,
respectively |
|
|
248,048 |
|
|
|
243,729 |
|
Long-term marketable
securities |
|
|
391,521 |
|
|
|
495,852 |
|
Intangible assets, net |
|
|
54,901 |
|
|
|
63,574 |
|
Goodwill |
|
|
198,932 |
|
|
|
197,471 |
|
Other assets |
|
|
47,215 |
|
|
|
43,311 |
|
Deferred income taxes |
|
|
61,838 |
|
|
|
48,845 |
|
Total assets |
|
$ |
2,212,465 |
|
|
$ |
2,076,126 |
|
|
|
|
|
|
|
|
LIABILITIES AND
EQUITY |
|
|
|
|
|
|
Current
liabilities: |
|
|
|
|
|
|
Accounts payable |
|
$ |
33,811 |
|
|
$ |
36,101 |
|
Accrued expenses |
|
|
89,606 |
|
|
|
94,705 |
|
Income taxes payable |
|
|
1,758 |
|
|
|
990 |
|
Business acquisition
liabilities |
|
|
13,595 |
|
|
|
13,308 |
|
Deferred revenue |
|
|
14,945 |
|
|
|
14,100 |
|
Payable to broker |
|
|
1,505 |
|
|
|
- |
|
Total current liabilities |
|
|
155,220 |
|
|
|
159,204 |
|
Business acquisition
liabilities, net of current portion |
|
|
52,455 |
|
|
|
54,950 |
|
Deferred income taxes |
|
|
5,299 |
|
|
|
1,779 |
|
Other liabilities |
|
|
14,426 |
|
|
|
13,820 |
|
Total liabilities |
|
|
227,400 |
|
|
|
229,753 |
|
|
|
|
|
|
|
|
Equity: |
|
|
|
|
|
|
Class A common stock; $0.001
par value. Authorized 500,000,000 shares; issued and outstanding
78,013,122 and 77,762,282 shares at June 30, 2023 and
December 31, 2022, respectively |
|
|
78 |
|
|
|
78 |
|
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 June 30, 2023 and
December 31, 2022, respectively |
|
|
22 |
|
|
|
22 |
|
Additional paid-in
capital |
|
|
657,240 |
|
|
|
630,952 |
|
Accumulated other
comprehensive income/(loss) |
|
|
(19,067 |
) |
|
|
(24,630 |
) |
Retained earnings |
|
|
1,346,792 |
|
|
|
1,239,951 |
|
Total equity |
|
|
1,985,065 |
|
|
|
1,846,373 |
|
Total liabilities and equity |
|
$ |
2,212,465 |
|
|
$ |
2,076,126 |
|
GLOBUS MEDICAL, INC. AND
SUBSIDIARIESCONDENSED CONSOLIDATED STATEMENTS OF
CASH FLOWS(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended |
|
|
June 30, |
(In
thousands) |
|
2023 |
|
|
2022 |
|
Cash flows from
operating activities: |
|
|
|
|
|
|
Net income |
|
$ |
106,841 |
|
|
$ |
92,674 |
|
Adjustments to reconcile net
income to net cash provided by operating activities: |
|
|
|
|
|
|
Depreciation and amortization |
|
|
36,183 |
|
|
|
33,764 |
|
Amortization of premium (discount) on marketable securities |
|
|
786 |
|
|
|
3,208 |
|
Write-down for excess and obsolete inventories, net |
|
|
3,972 |
|
|
|
4,068 |
|
Stock-based compensation expense |
|
|
17,542 |
|
|
|
15,989 |
|
Allowance for doubtful accounts |
|
|
1,863 |
|
|
|
(528 |
) |
Change in fair value of business acquisition liabilities |
|
|
3,280 |
|
|
|
(1,390 |
) |
Change in deferred income taxes |
|
|
(11,160 |
) |
|
|
(7,939 |
) |
(Gain)/loss on disposal of assets, net |
|
|
129 |
|
|
|
200 |
|
Payment of business acquisition related liabilities |
|
|
(1,490 |
) |
|
|
(1,099 |
) |
(Increase)/decrease in: |
|
|
|
|
|
|
Accounts receivable |
|
|
(28,237 |
) |
|
|
(30,224 |
) |
Inventories |
|
|
(38,658 |
) |
|
|
(31,421 |
) |
Prepaid expenses and other assets |
|
|
(2,100 |
) |
|
|
1,268 |
|
Increase/(decrease) in: |
|
|
|
|
|
|
Accounts payable |
|
|
(2,769 |
) |
|
|
12,375 |
|
Accrued expenses and other liabilities |
|
|
(888 |
) |
|
|
(7,408 |
) |
Income taxes payable/receivable |
|
|
3,047 |
|
|
|
(1,964 |
) |
Net cash provided
by/(used in) operating activities |
|
|
88,341 |
|
|
|
81,573 |
|
Cash flows from
investing activities: |
|
|
|
|
|
|
Purchases of marketable securities |
|
|
(81,381 |
) |
|
|
(179,096 |
) |
Maturities of marketable securities |
|
|
159,328 |
|
|
|
170,572 |
|
Sales of marketable securities |
|
|
21,788 |
|
|
|
66,655 |
|
Purchases of property and equipment |
|
|
(33,859 |
) |
|
|
(43,724 |
) |
Acquisition of businesses, net of cash acquired and purchases of
intangible and other assets |
|
|
(2,662 |
) |
|
|
(1,175 |
) |
Net cash provided
by/(used in) investing activities |
|
|
63,214 |
|
|
|
13,232 |
|
Cash flows from
financing activities: |
|
|
|
|
|
|
Payment of business acquisition liabilities |
|
|
(4,034 |
) |
|
|
(3,553 |
) |
Proceeds from exercise of stock options |
|
|
8,058 |
|
|
|
11,331 |
|
Repurchase of common stock |
|
|
— |
|
|
|
(144,493 |
) |
Net cash provided
by/(used in) financing activities |
|
|
4,024 |
|
|
|
(136,715 |
) |
Effect of foreign exchange
rates on cash |
|
|
407 |
|
|
|
(387 |
) |
Net
increase/(decrease) in cash and cash equivalents |
|
|
155,986 |
|
|
|
(42,297 |
) |
Cash and cash equivalents at
beginning of period |
|
|
150,466 |
|
|
|
193,069 |
|
Cash and cash
equivalents at end of period |
|
$ |
306,452 |
|
|
$ |
150,772 |
|
Supplemental disclosures of
cash flow information: |
|
|
|
|
|
|
Income taxes paid |
|
$ |
38,979 |
|
|
$ |
36,696 |
|
Purchases of property and equipment included in accounts payable
and accrued expenses |
|
$ |
5,366 |
|
|
$ |
5,019 |
|
Supplemental Financial
Information
Net Sales by Product
Category:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Six Months Ended |
|
|
June 30, |
|
June 30, |
(In
thousands) |
|
2023 |
|
2022 |
|
2023 |
|
2022 |
Musculoskeletal
Solutions |
|
$ |
256,855 |
|
$ |
234,242 |
|
$ |
508,462 |
|
$ |
451,644 |
Enabling
Technologies |
|
|
34,760 |
|
|
29,406 |
|
|
59,841 |
|
|
42,553 |
Total net
sales |
|
$ |
291,615 |
|
$ |
263,648 |
|
$ |
568,303 |
|
$ |
494,197 |
Liquidity and Capital
Resources:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30, |
|
December 31, |
(In
thousands) |
|
2023 |
|
2022 |
Cash and cash
equivalents |
|
$ |
306,452 |
|
$ |
150,466 |
Short-term
marketable securities |
|
|
306,376 |
|
|
295,592 |
Long-term
marketable securities |
|
|
391,521 |
|
|
495,852 |
Total cash, cash
equivalents and marketable securities |
|
$ |
1,004,349 |
|
$ |
941,910 |
The following tables reconcile GAAP to Non-GAAP
financial measures.
Non-GAAP Adjusted EBITDA Reconciliation
Table:
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Six Months Ended |
|
June 30, |
|
June 30, |
(In thousands, except
percentages) |
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
Net income/(loss) |
$ |
57,712 |
|
|
$ |
54,590 |
|
|
$ |
106,841 |
|
|
$ |
92,674 |
|
Interest (income)/expense,
net |
|
(8,294 |
) |
|
|
(2,476 |
) |
|
|
(14,791 |
) |
|
|
(5,019 |
) |
Provision for income
taxes |
|
16,962 |
|
|
|
15,950 |
|
|
|
31,022 |
|
|
|
26,764 |
|
Depreciation and
amortization |
|
18,075 |
|
|
|
16,927 |
|
|
|
36,183 |
|
|
|
33,764 |
|
EBITDA |
|
84,455 |
|
|
|
84,991 |
|
|
|
159,255 |
|
|
|
148,183 |
|
Stock-based compensation
expense |
|
8,589 |
|
|
|
7,837 |
|
|
|
17,542 |
|
|
|
15,989 |
|
Provision for litigation,
net |
|
(2,740 |
) |
|
|
— |
|
|
|
(2,740 |
) |
|
|
2,341 |
|
Acquisition related
costs/licensing |
|
5,809 |
|
|
|
(943 |
) |
|
|
7,184 |
|
|
|
(286 |
) |
Adjusted EBITDA |
$ |
96,113 |
|
|
$ |
91,885 |
|
|
$ |
181,241 |
|
|
$ |
166,227 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income/(loss) as a
percentage of net sales |
|
19.8 |
% |
|
|
20.7 |
% |
|
|
18.8 |
% |
|
|
18.8 |
% |
Adjusted EBITDA as a
percentage of net sales |
|
33.0 |
% |
|
|
34.9 |
% |
|
|
31.9 |
% |
|
|
33.6 |
% |
Non-GAAP Net Income Reconciliation
Table:
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Six Months Ended |
|
June 30, |
|
June 30, |
(In
thousands) |
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
Net income/(loss) |
$ |
57,712 |
|
|
$ |
54,590 |
|
|
$ |
106,841 |
|
|
$ |
92,674 |
|
Provision for litigation,
net |
|
(2,740 |
) |
|
|
— |
|
|
|
(2,740 |
) |
|
|
2,341 |
|
Amortization of
intangibles |
|
4,547 |
|
|
|
4,393 |
|
|
|
9,148 |
|
|
|
8,905 |
|
Acquisition related
costs/licensing |
|
5,809 |
|
|
|
(943 |
) |
|
|
7,184 |
|
|
|
(286 |
) |
Tax effect of adjusting
items |
|
(1,730 |
) |
|
|
(780 |
) |
|
|
(3,059 |
) |
|
|
(2,441 |
) |
Non-GAAP net
income/(loss) |
$ |
63,598 |
|
|
$ |
57,260 |
|
|
$ |
117,374 |
|
|
$ |
101,192 |
|
Non-GAAP Diluted Earnings Per Share
Reconciliation Table:
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Six Months Ended |
|
June 30, |
|
June 30, |
(In
thousands) |
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
Diluted earnings per share, as reported |
$ |
0.57 |
|
|
$ |
0.53 |
|
|
$ |
1.05 |
|
|
$ |
0.90 |
|
Provision for litigation,
net |
|
(0.03 |
) |
|
|
— |
|
|
|
(0.03 |
) |
|
|
0.02 |
|
Amortization of
intangibles |
|
0.04 |
|
|
|
0.05 |
|
|
|
0.09 |
|
|
|
0.09 |
|
Acquisition related
costs/licensing |
|
0.06 |
|
|
|
(0.01 |
) |
|
|
0.07 |
|
|
|
(0.00 |
) |
Tax effect of adjusting
items |
|
(0.02 |
) |
|
|
0.00 |
|
|
|
(0.03 |
) |
|
|
(0.02 |
) |
Non-GAAP diluted earnings per
share |
$ |
0.63 |
|
|
$ |
0.56 |
|
|
$ |
1.15 |
|
|
$ |
0.98 |
|
*amounts might not add due to rounding
Non-GAAP Free Cash Flow Reconciliation
Table:
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Six Months Ended |
|
June 30, |
|
June 30, |
(In
thousands) |
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
Net cash provided by operating activities |
$ |
35,028 |
|
|
$ |
36,883 |
|
|
$ |
88,341 |
|
|
$ |
81,573 |
|
Purchases of property and
equipment |
|
(17,868 |
) |
|
|
(23,753 |
) |
|
|
(33,859 |
) |
|
|
(43,724 |
) |
Free cash flow |
$ |
17,160 |
|
|
$ |
13,130 |
|
|
$ |
54,482 |
|
|
$ |
37,849 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP Net Sales on a Constant Currency
Basis Comparative Table:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Reported |
|
CurrencyImpact on |
|
ConstantCurrency |
|
|
June 30, |
|
Net Sales |
|
Current |
|
Net Sales |
(In thousands, except
percentages) |
|
2023 |
|
2022 |
|
Growth |
|
Period Net Sales |
|
Growth |
United States |
|
$ |
245,490 |
|
$ |
225,280 |
|
9.0 |
% |
|
$ |
— |
|
|
9.0 |
% |
International |
|
|
46,125 |
|
|
38,368 |
|
20.2 |
% |
|
|
(688 |
) |
|
22.0 |
% |
Total net sales |
|
$ |
291,615 |
|
$ |
263,648 |
|
10.6 |
% |
|
$ |
(688 |
) |
|
10.9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended |
|
Reported |
|
CurrencyImpact on |
|
ConstantCurrency |
|
|
June 30, |
|
Net Sales |
|
Current |
|
Net Sales |
(In thousands, except
percentages) |
|
2023 |
|
2022 |
|
Growth |
|
Period Net Sales |
|
Growth |
United States |
|
$ |
479,609 |
|
$ |
421,683 |
|
13.7 |
% |
|
$ |
— |
|
|
13.7 |
% |
International |
|
|
88,694 |
|
|
72,514 |
|
22.3 |
% |
|
|
(3,036 |
) |
|
26.5 |
% |
Total net sales |
|
$ |
568,303 |
|
$ |
494,197 |
|
15.0 |
% |
|
$ |
(3,036 |
) |
|
15.6 |
% |
Contact:Brian KearnsSenior
Vice President, Business Development and Investor RelationsPhone:
(610) 930-1800Email:
investors@globusmedical.comwww.globusmedical.com
Globus Medical (NYSE:GMED)
過去 株価チャート
から 5 2024 まで 5 2024
Globus Medical (NYSE:GMED)
過去 株価チャート
から 5 2023 まで 5 2024