AUDUBON, Pa., May 02, 2019 (GLOBE NEWSWIRE) — Globus Medical, Inc. (NYSE:GMED), a leading musculoskeletal solutions company, today announced its financial results for the first quarter ended March 31, 2019.
- Worldwide sales were $182.9 million, an increase of 4.9% as reported
- First quarter net income was $33.2 million, a decrease of 16.0%
- Diluted earnings per share (EPS) was $0.33 and non-GAAP diluted EPS was $0.36
- Non-GAAP diluted EPS decreased 13.4% compared to first quarter of 2018
- Non-GAAP adjusted EBITDA was 31.1% of sales
“Our first quarter results demonstrate continued strong momentum in the Musculoskeletal Solutions portion of our business, growing at 8.7% on an as reported basis and 9.6% in constant currency, well above the overall market,” said Dave Demski, President and CEO. “Enabling Technologies contributed $7.2 million and the impressive level of surgeon adoption in accounts with our ExcelsiusGPS® robotic system continues to validate our vision of the future of computer assisted spine surgery.”
Worldwide sales for the first quarter were $182.9 million, an increase of 4.9% over the first quarter of 2018 on an as-reported basis and 5.7% on a constant currency basis. First quarter sales in the U.S., including robotics, increased by 1.3% as quarterly seasonality and longer sales cycles dampened robotic sales compared to the first quarter of 2018. International sales increased by 23.0% over the first quarter of 2018 on an as-reported basis and 27.9% on a constant currency basis.
First quarter GAAP net income was $33.2 million, a decrease of 16.0% over the same period last year. Diluted EPS for the first quarter was $0.33, as compared to $0.39 for the first quarter 2018. Non-GAAP diluted EPS for the first quarter was $0.36, compared to $0.41 in the first quarter of 2018, a decrease of 13.4%.
The company generated net cash provided by operating activities of $39.2 million and non-GAAP free cash flow of $11.0 million in the first quarter, and ended the quarter with cash, cash equivalents and marketable securities of $621.5 million. The company remains debt free.
The company today announced Rob Liptak stepped down from the Globus Medical Board of Directors effective May 1, 2019. “Rob joined the Board as part of our Series E financing in 2007 led by Clarus Ventures. He has been a valuable contributor to our success for nearly twelve years and we will miss him,” said Mr. Demski. Mr. Liptak has assumed a role that precludes him from serving on public company Boards. The company also announced the appointment of Steve Zarrilli to the Globus Medical Board of Directors, effective May 1, 2019. Mr. Zarrilli is currently President and CEO of University Science Center in Philadelphia, the oldest and largest urban research hub in the US. Prior to his current role, Mr. Zarrilli was President and CEO of Safeguard Scientifics, a public company that provides growth equity capital to technology and healthcare enterprises.
2019 Annual Guidance
The company today confirmed guidance for full year 2019 sales of $770 million and non-GAAP diluted earnings per share of $1.72.
Conference Call Information
Globus Medical will hold a teleconference to discuss its 2019 first quarter results with the investment community at 4:30 p.m. Eastern Time today. Globus invites all interested parties to join the call by dialing:
|1-855-533-7141||United States Participants|
There is no pass code for the teleconference.
For interested parties who do not wish to ask questions, the teleconference will be webcast live and may be accessed through a link on the Globus Medical website at investors.globusmedical.com.
The call will be archived until Thursday, May 9, 2019. The audio archive can be accessed by calling 1-855-859-2056 in the U.S. or 1-404-537-3406 from outside the U.S. The passcode for the audio replay is 1012-6393.