Globus Medical Reports Second Quarter 2024 Results
Globus Medical (NYSE: GMED) reported its Q2 2024 financial results, showing significant growth. Worldwide net sales reached $629.7 million, a 115.9% increase year-over-year. GAAP net income was $31.8 million, with GAAP diluted EPS at $0.23 and non-GAAP diluted EPS at $0.75. The company's growth was largely driven by the NuVasive acquisition and increased sales in spine products and enabling technology.
U.S. net sales grew by 103.5%, while international sales surged by 182.3%. Despite the revenue increase, GAAP net income decreased by 45% due to amortization costs and restructuring expenses. Globus Medical raised its 2024 guidance, projecting revenue between $2.47 to $2.49 billion and non-GAAP EPS of $2.80 to $2.90.
Globus Medical (NYSE: GMED) ha riportato i risultati finanziari del secondo trimestre 2024, mostrando una crescita significativa. Le vendite nette globali hanno raggiunto i 629,7 milioni di dollari, con un incremento del 115,9% rispetto all'anno precedente. L'utile netto GAAP è stato di 31,8 milioni di dollari, con un EPS diluito GAAP di 0,23 dollari e un EPS diluito non GAAP di 0,75 dollari. La crescita dell'azienda è stata principalmente guidata dall'acquisizione di NuVasive e dall'aumento delle vendite nei prodotti per la colonna vertebrale e nelle tecnologie abilitanti.
Le vendite nette negli Stati Uniti sono cresciute del 103,5%, mentre le vendite internazionali sono aumentate del 182,3%. Nonostante l'aumento delle entrate, l'utile netto GAAP è diminuito del 45% a causa dei costi di ammortamento e delle spese per ristrutturazione. Globus Medical ha alzato le previsioni per il 2024, prevedendo entrate comprese tra 2,47 e 2,49 miliardi di dollari e un EPS non GAAP di 2,80 a 2,90 dollari.
Globus Medical (NYSE: GMED) reportó sus resultados financieros del segundo trimestre de 2024, mostrando un crecimiento significativo. Las ventas netas mundiales alcanzaron los 629,7 millones de dólares, un aumento del 115,9% en comparación con el año anterior. La utilidad neta GAAP fue de 31,8 millones de dólares, con un EPS diluido GAAP de 0,23 dólares y un EPS diluido no GAAP de 0,75 dólares. El crecimiento de la compañía fue impulsado en gran parte por la adquisición de NuVasive y el aumento de las ventas en productos de columna y tecnología habilitadora.
Las ventas netas en EE. UU. crecieron un 103,5%, mientras que las ventas internacionales aumentaron un 182,3%. A pesar del aumento de ingresos, la utilidad neta GAAP disminuyó un 45% debido a costos de amortización y gastos de reestructuración. Globus Medical elevó su guía para 2024, proyectando ingresos entre 2.47 y 2.49 mil millones de dólares y un EPS no GAAP de 2.80 a 2.90 dólares.
Globus Medical (NYSE: GMED)는 2024년 2분기 재무 결과를 발표하며 상당한 성장을 보였습니다. 전 세계 순매출은 6억 2,970만 달러로, 전년 대비 115.9% 증가했습니다. GAAP 순이익은 3,180만 달러였으며, GAAP 희석 EPS는 0.23달러, 비 GAAP 희석 EPS는 0.75달러였습니다. 회사의 성장은 주로 NuVasive 인수와 척추 제품 및 지원 기술 판매 증가에 의해 주도되었습니다.
미국의 순매출은 103.5% 증가했으며, 해외 판매는 182.3% 급증했습니다. 수익 증가에도 불구하고, GAAP 순이익은 상각 비용 및 구조 조정 비용으로 인해 45% 감소했습니다. Globus Medical은 2024년 수익 예상치를 상향 조정하여 24억 7,000만에서 24억 9,000만 달러, 비 GAAP EPS는 2.80에서 2.90 달러 사이로 예측했습니다.
Globus Medical (NYSE: GMED) a annoncé ses résultats financiers pour le deuxième trimestre 2024, montrant une croissance significative. Les ventes nettes mondiales ont atteint 629,7 millions de dollars, soit une augmentation de 115,9 % par rapport à l'année précédente. Le résultat net GAAP s'élevait à 31,8 millions de dollars, avec un EPS dilué GAAP de 0,23 dollar et un EPS dilué non GAAP de 0,75 dollar. La croissance de l'entreprise a été largement tirée par l'acquisition de NuVasive et l'augmentation des ventes dans les produits de colonne vertébrale et la technologie habilitante.
Les ventes nettes aux États-Unis ont augmenté de 103,5 %, tandis que les ventes internationales ont explosé de 182,3 %. Malgré l'augmentation des revenus, le résultat net GAAP a diminué de 45 % en raison des coûts d'amortissement et des frais de restructuration. Globus Medical a relevé ses prévisions pour 2024, projetant des revenus compris entre 2,47 et 2,49 milliards de dollars et un EPS non GAAP de 2,80 à 2,90 dollars.
Globus Medical (NYSE: GMED) hat seine Finanzzahlen für das zweite Quartal 2024 veröffentlicht und ein signifikantes Wachstum gezeigt. Die weltweiten Nettoumsätze erreichten 629,7 Millionen US-Dollar, was einem Anstieg von 115,9% im Jahresvergleich entspricht. Der GAAP-Nettoertrag betrug 31,8 Millionen US-Dollar, mit einem GAAP-diluted EPS von 0,23 US-Dollar und einem non-GAAP-diluted EPS von 0,75 US-Dollar. Das Wachstum des Unternehmens wurde maßgeblich durch die Übernahme von NuVasive und den Anstieg der Verkäufe von Wirbelsäulenprodukten und unterstützender Technologie getrieben.
Die Nettoumsätze in den USA wuchsen um 103,5%, während die internationalen Umsätze um 182,3% anstiegen. Trotz des Umsatzwachstums sank der GAAP-Nettoertrag um 45% aufgrund von Abschreibungskosten und Umstrukturierungskosten. Globus Medical erhöhte seine Prognose für 2024 und rechnet mit einem Umsatz zwischen 2,47 und 2,49 Milliarden US-Dollar und einem non-GAAP EPS von 2,80 bis 2,90 US-Dollar.
- Worldwide net sales increased by 115.9% to $629.7 million
- Non-GAAP diluted EPS grew by 20% to $0.75
- International net sales surged by 182.3%
- U.S. net sales increased by 103.5%
- Company raised full-year 2024 revenue guidance to $2.47-$2.49 billion
- Non-GAAP adjusted EBITDA was $190.4 million, or 30.2% of net sales
- GAAP net income decreased by 45% to $31.8 million
- GAAP diluted EPS declined to $0.23 from $0.57 in Q2 2023
- Net cash provided by operating activities was $54.3 million, lower than the revenue growth rate
Insights
Globus Medical's Q2 2024 results show significant growth, largely driven by the NuVasive acquisition. Worldwide net sales surged
The non-GAAP metrics paint a more positive picture, with non-GAAP diluted EPS increasing
Globus Medical's Q2 results highlight its strategic positioning in the musculoskeletal solutions market. The substantial growth in enabling technology products and services, alongside increased spine product sales, indicates a successful execution of their long-term strategy. The integration of NuVasive appears to be progressing well, potentially creating a more competitive entity in the spine market.
The company's focus on "redefining surgery with procedural solutions built around enabling technology" aligns with industry trends towards minimally invasive procedures and robotics-assisted surgeries. This approach could lead to increased market share and improved patient outcomes. However, investors should monitor the integration process closely, as realizing synergies and maintaining innovation momentum will be important for sustaining growth in this competitive landscape.
AUDUBON, Pa., Aug. 06, 2024 (GLOBE NEWSWIRE) -- Globus Medical, Inc. (NYSE: GMED), a leading musculoskeletal solutions company, today announced its financial results for the quarter ended June 30, 2024.
- Worldwide net sales were
$629.7 million , an increase of115.9% or117.3% on a constant currency basis - GAAP net income for the quarter was
$31.8 million - GAAP diluted earnings per share (“EPS”) was
$0.23 and non-GAAP diluted EPS was$0.75 - Non-GAAP adjusted EBITDA was
$190.4 million , or30.2% of net sales
“I’m pleased with the quarterly results, demonstrating our team’s strong performance as we continue to execute our long-term growth strategy, deliver on NuVasive integration plans, launch meaningful new products into the market and drive strong financial performance,” said Dan Scavilla, President and Chief Executive Officer. “I believe the potential for Globus has never been greater, as we redefine surgery with procedural solutions built around enabling technology.”
“Our second quarter results demonstrate our continued commitment to achieving excellence in commercial execution, while driving integration objectives to achieve synergy goals,” commented Keith Pfeil, COO-CFO. “I am pleased with our results thus far in 2024 and I believe we remain well positioned to deliver against our objectives for the remainder of this year, as well as into the future. Looking ahead, we will continue to focus on commercial initiatives to drive profitable growth and operational initiatives to drive enhanced efficiencies.”
Worldwide net sales for the second quarter of 2024 were
GAAP net income for the second quarter of 2024 was
Net cash provided by operating activities was
2025 Annual Guidance
The Company raised its guidance for full year 2024 revenue to be in the range of
Conference Call Information
Globus Medical will hold a teleconference to discuss its second 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 June 30, 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 June 30, 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 SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF INCOME (unaudited) | |||||||||||||||
| Three Months Ended | Six Months Ended | ||||||||||||||
| June 30, | June 30, | ||||||||||||||
| (In thousands, except per share amounts) | 2024 | 2023 | 2024 | 2023 | |||||||||||
| Net sales | $ | 629,691 | $ | 291,615 | $ | 1,236,357 | $ | 568,303 | |||||||
| Cost of sales | 260,040 | 76,473 | 501,527 | 147,298 | |||||||||||
| Gross profit | 369,651 | 215,142 | 734,830 | 421,005 | |||||||||||
| Operating expenses: | |||||||||||||||
| Research and development | 37,698 | 21,347 | 94,966 | 42,429 | |||||||||||
| Selling, general and administrative | 238,119 | 120,069 | 486,829 | 242,485 | |||||||||||
| Provision for litigation, net | 1,335 | (2,740 | ) | 1,304 | (2,740 | ) | |||||||||
| Amortization of intangibles | 29,709 | 4,547 | 59,385 | 9,148 | |||||||||||
| Acquisition-related costs | 13,734 | 5,707 | 16,152 | 7,068 | |||||||||||
| Restructuring Costs | (566 | ) | — | 18,575 | |||||||||||
| Total operating expenses | 320,029 | 148,930 | 677,211 | 298,390 | |||||||||||
| Operating income/(loss) | 49,622 | 66,212 | 57,619 | 122,615 | |||||||||||
| Other income/(expense), net | |||||||||||||||
| Interest income/(expense), net | (2,335 | ) | 8,294 | (4,229 | ) | 14,791 | |||||||||
| Foreign currency transaction gain/(loss) | (703 | ) | (548 | ) | (16,074 | ) | (336 | ) | |||||||
| Other income/(expense) | 997 | 716 | 1,707 | 793 | |||||||||||
| Total other income/(expense), net | (2,041 | ) | 8,462 | (18,596 | ) | 15,248 | |||||||||
| Income/(loss) before income taxes | 47,581 | 74,674 | 39,023 | 137,863 | |||||||||||
| Income tax provision/(benefit) | 15,821 | 16,962 | 14,380 | 31,022 | |||||||||||
| Net income/(loss) | $ | 31,760 | $ | 57,712 | $ | 24,643 | $ | 106,841 | |||||||
| Other comprehensive income/(loss), net of tax: | |||||||||||||||
| Unrealized gain/(loss) on marketable securities | 492 | 40 | 871 | 4,338 | |||||||||||
| Foreign currency translation gain/(loss) | (1,298 | ) | 315 | (2,530 | ) | 1,225 | |||||||||
| Total other comprehensive income/(loss), net of tax | (806 | ) | 355 | (1,659 | ) | 5,563 | |||||||||
| Comprehensive income/(loss) | $ | 30,954 | $ | 58,067 | $ | 22,984 | $ | 112,404 | |||||||
| Earnings per share: | |||||||||||||||
| Basic | $ | 0.23 | $ | 0.57 | $ | 0.18 | $ | 1.06 | |||||||
| Diluted | $ | 0.23 | $ | 0.57 | $ | 0.18 | $ | 1.05 | |||||||
| Weighted average shares outstanding: | |||||||||||||||
| Basic | 135,195 | 100,373 | 135,276 | 100,326 | |||||||||||
| Diluted | 136,979 | 101,782 | 136,836 | 101,989 | |||||||||||
| GLOBUS MEDICAL, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited) | |||||||
| June 30, | December 31, | ||||||
| (In thousands, except share and per share values) | 2024 | 2023 | |||||
| ASSETS | |||||||
| Current assets: | |||||||
| Cash and cash equivalents | $ | 410,424 | $ | 467,292 | |||
| Short-term marketable securities | 82,509 | 50,497 | |||||
| Accounts receivable, net of allowances of | 611,784 | 503,235 | |||||
| Inventories | 770,463 | 848,135 | |||||
| Prepaid expenses and other current assets | 46,213 | 44,580 | |||||
| Income taxes receivable | 2,498 | 1,635 | |||||
| Total current assets | 1,923,891 | 1,915,374 | |||||
| Property and equipment, net of accumulated depreciation of | 571,776 | 586,932 | |||||
| Operating lease right of use assets | 53,881 | 59,931 | |||||
| Long-term marketable securities | 27,795 | 75,428 | |||||
| Intangible assets, net | 866,565 | 924,603 | |||||
| Goodwill | 1,454,117 | 1,434,540 | |||||
| Other assets | 77,569 | 78,590 | |||||
| Deferred income taxes | 18,199 | 10,685 | |||||
| Total assets | $ | 4,993,793 | $ | 5,086,083 | |||
| LIABILITIES AND EQUITY | |||||||
| Current liabilities: | |||||||
| Accounts payable | $ | 67,163 | $ | 56,671 | |||
| Accrued expenses | 215,885 | 240,460 | |||||
| Operating lease liabilities | 11,118 | 11,967 | |||||
| Income taxes payable | 11,429 | 3,845 | |||||
| Senior convertible notes | 430,485 | — | |||||
| Business acquisition liabilities | 38,221 | 61,035 | |||||
| Deferred revenue | 19,845 | 18,369 | |||||
| Total current liabilities | 794,146 | 392,347 | |||||
| Business acquisition liabilities, net of current portion | 83,111 | 78,323 | |||||
| Operating lease liabilities | 87,702 | 91,037 | |||||
| Senior convertible notes | — | 417,400 | |||||
| Deferred income taxes and other tax liabilities | 27,264 | 84,421 | |||||
| Other liabilities | 25,205 | 24,596 | |||||
| Total liabilities | 1,017,428 | 1,088,124 | |||||
| Equity: | |||||||
| Class A common stock; | 113 | 114 | |||||
| Class B common stock; | 22 | 22 | |||||
| Additional paid-in capital | 2,913,609 | 2,870,749 | |||||
| Accumulated other comprehensive income/(loss) | (11,851 | ) | (10,192 | ) | |||
| Retained earnings | 1,074,472 | 1,137,266 | |||||
| Total equity | 3,976,365 | 3,997,959 | |||||
| Total liabilities and equity | $ | 4,993,793 | $ | 5,086,083 | |||
| GLOBUS MEDICAL, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) | ||||||||
| Six Months Ended | ||||||||
| June 30, | ||||||||
| (In thousands) | 2024 | 2023 | ||||||
| Cash flows from operating activities: | ||||||||
| Net income | $ | 24,643 | $ | 106,841 | ||||
| Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
| Acquired in-process research and development | 12,613 | — | ||||||
| Depreciation and amortization | 118,849 | 36,183 | ||||||
| Amortization of premiums on marketable securities | (14 | ) | 786 | |||||
| Provision for excess and obsolete inventory | 10,498 | 3,972 | ||||||
| Amortization of inventory fair value step up | 107,341 | — | ||||||
| Amortization of 2025 Note fair value step up | 13,315 | — | ||||||
| Stock-based compensation expense | 30,073 | 17,542 | ||||||
| Allowance for doubtful accounts | 11,481 | 1,863 | ||||||
| Change in fair value of business acquisition liabilities | 12,739 | 3,280 | ||||||
| Change in deferred income taxes | (65,275 | ) | (11,160 | ) | ||||
| (Gain)/loss on disposal of assets, net | 464 | 129 | ||||||
| Payment of business acquisition-related liabilities | (16,965 | ) | (1,490 | ) | ||||
| Net (gain)/loss from foreign currency adjustment | 6,558 | — | ||||||
| (Increase) decrease in: | ||||||||
| Accounts receivable | (124,206 | ) | (28,237 | ) | ||||
| Inventories | (22,855 | ) | (38,658 | ) | ||||
| Prepaid expenses and other assets | (2,001 | ) | (2,100 | ) | ||||
| Increase (decrease) in: | ||||||||
| Accounts payable | 11,561 | (2,769 | ) | |||||
| Accrued expenses and other liabilities | (28,951 | ) | (888 | ) | ||||
| Income taxes payable/receivable | 6,777 | 3,047 | ||||||
| Net cash provided by/(used in) operating activities | 106,645 | 88,341 | ||||||
| Cash flows from investing activities: | ||||||||
| Purchases of marketable securities | (12,174 | ) | (81,381 | ) | ||||
| Maturities of marketable securities | 21,709 | 159,328 | ||||||
| Sales of marketable securities | 7,404 | 21,788 | ||||||
| Purchases of property and equipment | (56,366 | ) | (33,859 | ) | ||||
| Acquisition of businesses, net of cash acquired and purchases of intangible and other assets | (17,535 | ) | (2,662 | ) | ||||
| Net cash provided by/(used in) investing activities | (56,962 | ) | 63,214 | |||||
| Cash flows from financing activities: | ||||||||
| Payment of business acquisition-related liabilities | (33,921 | ) | (4,034 | ) | ||||
| Net proceeds from exercise of stock options | 17,651 | 8,058 | ||||||
| Payments related to tax withholdings for share-based compensation | (5,955 | ) | — | |||||
| Repurchase of common stock | (84,787 | ) | — | |||||
| Net cash provided by/(used in) financing activities | (107,012 | ) | 4,024 | |||||
| Effect of foreign exchange rates on cash | 461 | 407 | ||||||
| Net increase/(decrease) in cash and cash equivalents | (56,868 | ) | 155,986 | |||||
| Cash and cash equivalents at beginning of period | 467,292 | 150,466 | ||||||
| Cash and cash equivalents at end of period | $ | 410,424 | $ | 306,452 | ||||
| Supplemental disclosures of cash flow information: | ||||||||
| Income taxes paid, net | $ | 71,586 | $ | 38,979 | ||||
| Non-cash investing and financing activities: | ||||||||
| Accrued purchases of property and equipment | $ | 9,508 | $ | 5,366 | ||||
| Supplemental Financial Information Net Sales by Product Category: | ||||||||||||
| Three Months Ended | Six Months Ended | |||||||||||
| June 30, | June 30, | |||||||||||
| (In thousands) | 2024 | 2023 | 2024 | 2023 | ||||||||
| Musculoskeletal Solutions | $ | 592,913 | $ | 256,855 | $ | 1,167,610 | $ | 508,462 | ||||
| Enabling Technologies | 36,778 | 34,760 | 68,747 | 59,841 | ||||||||
| Total net sales | $ | 629,691 | $ | 291,615 | $ | 1,236,357 | $ | 568,303 | ||||
| Liquidity and Capital Resources: | ||||||
| June 30, | December 31, | |||||
| (In thousands) | 2024 | 2023 | ||||
| Cash and cash equivalents | $ | 410,424 | $ | 467,292 | ||
| Short-term marketable securities | 82,509 | 50,497 | ||||
| Long-term marketable securities | 27,795 | 75,428 | ||||
| Total cash, cash equivalents and marketable securities | $ | 520,728 | $ | 593,217 | ||
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) | 2024 | 2023 | 2024 | 2023 | |||||||||||
| Net income/(loss) | $ | 31,760 | $ | 57,712 | $ | 24,643 | $ | 106,841 | |||||||
| Interest (income)/expense, net | 2,335 | (8,294 | ) | 4,229 | (14,791 | ) | |||||||||
| Provision for income taxes | 15,821 | 16,962 | 14,380 | 31,022 | |||||||||||
| Depreciation and amortization | 63,588 | 18,075 | 118,849 | 36,183 | |||||||||||
| EBITDA | 113,504 | 84,455 | 162,101 | 159,255 | |||||||||||
| Stock-based compensation expense | 12,735 | 8,589 | 25,174 | 17,542 | |||||||||||
| Provision for litigation, net | 1,335 | (2,740 | ) | 1,304 | (2,740 | ) | |||||||||
| Merger and acquisition-related costs/licensing | 67,613 | 5,809 | 124,000 | 7,184 | |||||||||||
| Acquisition of in-process research and development | — | — | 12,613 | — | |||||||||||
| Net (gain) loss from strategic investments | (490 | ) | — | (267 | ) | — | |||||||||
| Non-cash acquisition-related foreign currency impacts | (4,633 | ) | — | 6,558 | — | ||||||||||
| Restructuring costs | 371 | — | 25,533 | — | |||||||||||
| Adjusted EBITDA | $ | 190,435 | $ | 96,113 | $ | 357,016 | $ | 181,241 | |||||||
| Net income/(loss) as a percentage of net sales | |||||||||||||||
| Adjusted EBITDA as a percentage of net sales | |||||||||||||||
| Non-GAAP Net Income Reconciliation Table: | |||||||||||||||
| Three Months Ended | Six Months Ended | ||||||||||||||
| June 30, | June 30, | ||||||||||||||
| (In thousands) | 2024 | 2023 | 2024 | 2023 | |||||||||||
| Net income/(loss) | $ | 31,760 | $ | 57,712 | $ | 24,643 | $ | 106,841 | |||||||
| Provision for litigation, net | 1,335 | (2,740 | ) | 1,304 | (2,740 | ) | |||||||||
| Amortization of intangibles | 29,709 | 4,547 | 59,385 | 9,148 | |||||||||||
| Merger and acquisition-related costs/licensing | 67,613 | 5,809 | 124,000 | 7,184 | |||||||||||
| Acquisition of in-process research and development | — | — | 12,613 | — | |||||||||||
| Non-cash acquisition-related foreign currency impacts | (4,633 | ) | — | 6,558 | — | ||||||||||
| Restructuring Costs | 371 | — | 25,534 | — | |||||||||||
| Net gain/(loss) on strategic investments | (490 | ) | — | (267 | ) | — | |||||||||
| Tax effect of adjusting items | (22,941 | ) | (1,730 | ) | (52,947 | ) | (3,059 | ) | |||||||
| Non-GAAP net income/(loss) | $ | 102,724 | $ | 63,598 | $ | 200,823 | $ | 117,374 | |||||||
| Non-GAAP Gross Profit Reconciliation Table: | |||||||||||||||
| Three Months Ended | Six Months Ended | ||||||||||||||
| June 30, | June 30, | ||||||||||||||
| (In thousands) | 2024 | 2023 | 2024 | 2023 | |||||||||||
| Cost of sales | $ | 260,040 | $ | 76,473 | $ | 501,527 | $ | 147,298 | |||||||
| Merger and acquisition related costs/licensing | (53,670 | ) | — | (107,341 | ) | — | |||||||||
| Adjusted cost of sales | $ | 206,370 | $ | 76,473 | $ | 394,186 | $ | 147,298 | |||||||
| Adjusted gross profit | $ | 423,321 | $ | 215,142 | $ | 842,171 | $ | 421,005 | |||||||
| Adjusted gross profit as a percentage | |||||||||||||||
| Non-GAAP Diluted Earnings Per Share Reconciliation Table: | ||||||||||||||||
| Three Months Ended | Six Months Ended | |||||||||||||||
| June 30, | June 30, | |||||||||||||||
| (In thousands) | 2024 | 2023 | 2024 | 2023 | ||||||||||||
| Diluted earnings per share, as reported | $ | 0.23 | $ | 0.57 | $ | 0.18 | $ | 1.05 | ||||||||
| Provision for litigation, net | 0.01 | (0.03 | ) | — | (0.03 | ) | ||||||||||
| Amortization of intangibles | 0.22 | 0.04 | 0.43 | 0.09 | ||||||||||||
| Merger and acquisition-related costs/licensing | 0.49 | 0.06 | 0.91 | 0.07 | ||||||||||||
| Acquisition of in-process research and development | — | — | 0.09 | — | ||||||||||||
| Net (gain) loss from strategic investments | (0.00 | ) | — | (0.00 | ) | — | ||||||||||
| Non-cash acquisition-related foreign currency impacts | (0.03 | ) | — | 0.05 | — | |||||||||||
| Tax effect of adjusting items | (0.17 | ) | (0.02 | ) | (0.39 | ) | (0.03 | ) | ||||||||
| Restructuring costs | 0.00 | — | 0.20 | — | ||||||||||||
| Non-GAAP diluted earnings per share | $ | 0.75 | $ | 0.63 | $ | 1.47 | $ | 1.15 | ||||||||
*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) | 2024 | 2023 | 2024 | 2023 | |||||||||||
| Net cash provided by operating activities | $ | 54,258 | $ | 35,028 | $ | 106,645 | $ | 88,341 | |||||||
| Purchases of property and equipment | (27,798 | ) | (17,868 | ) | (56,366 | ) | (33,859 | ) | |||||||
| Free cash flow | $ | 26,460 | $ | 17,160 | $ | 50,279 | $ | 54,482 | |||||||
| Non-GAAP Net Sales on a Constant Currency Basis Comparative Table: | ||||||||||||||||
| Three Months Ended | Reported | Currency Impact on | Constant Currency | |||||||||||||
| June 30, | Net Sales | Current | Net Sales | |||||||||||||
| (In thousands, except percentages) | 2024 | 2023 | Growth | Period Net Sales | Growth | |||||||||||
| United States | $ | 499,460 | $ | 245,490 | $ | — | ||||||||||
| International | 130,231 | 46,125 | (4,109 | ) | ||||||||||||
| Total net sales | $ | 629,691 | $ | 291,615 | $ | (4,109 | ) | |||||||||
| Six Months Ended | Reported | Currency Impact on | Constant Currency | |||||||||||||
| June 30, | Net Sales | Current | Net Sales | |||||||||||||
| (In thousands, except percentages) | 2024 | 2023 | Growth | Period Net Sales | Growth | |||||||||||
| United States | $ | 982,386 | $ | 479,609 | $ | — | ||||||||||
| International | 253,971 | 88,694 | (5,569 | ) | ||||||||||||
| Total net sales | $ | 1,236,357 | $ | 568,303 | $ | (5,569 | ) | |||||||||
Contact:
Brian Kearns
Senior Vice President, Business Development and Investor Relations
Phone: (610) 930-1800
Email: investors@globusmedical.com
www.globusmedical.com
FAQ
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