Globus Medical, Inc. (NYSE:GMED), a leading musculoskeletal implant
manufacturer, today announced its financial results for the fourth
quarter and year ended December 31, 2016.
Fourth Quarter:
- Worldwide sales increased 6.3% as reported to $151.6 million,
or an increase of 6.5% on a constant currency basis
- Fourth quarter net income was $24.3 million, or 16.0% of
sales
- Diluted earnings per share (EPS) were $0.25
- Non-GAAP diluted EPS were $0.31
- Non-GAAP adjusted EBITDA was 37.7% of sales
Full Year 2016:
- Worldwide sales increased 3.5% as reported to $564.0 million,
or an increase of 3.8% on a constant currency basis
- Net income for the year was $104.3 million, or 18.5% of
sales
- Diluted EPS were $1.08
- Non-GAAP diluted EPS were $1.19
- Non-GAAP adjusted EBITDA was 37.4% of sales
David Paul, Chairman and CEO said, “Fourth
quarter sales were $151.6 million, a year-over-year increase of
6.3%. Despite our increased spending in support of our
pending robotics and trauma launches, our adjusted EBITDA margins
was an outstanding 37.7%. We also delivered EPS of $0.25 and
non GAAP EPS of $0.31.
"During the fourth quarter, we continued to make
progress with product development, sales force development and
integration of Alphatec's international business. We also
further expanded our in-house manufacturing capacity. We are
proud of our innovation and product development efforts, which
resulted in a total of 17 new product launches in 2016. We
have addressed our sales force expansion challenges and are
optimistic that we will return to more robust growth rates in the
second half of 2017. We also remain confident in our long-term
growth prospects and our ability to sustain industry-leading
profitability by continuing to execute on our strategy of rapid
product introduction, expansion of our U.S. and international sales
footprints, and diligent expense control.”
Fourth quarter sales in the U.S. decreased by
2.7% compared to the fourth quarter of 2015, primarily due to one
less selling day in the fourth quarter of 2016. International
sales increased by 109.0% over the fourth quarter of 2015 on an as
reported basis and 111.8% on a constant currency basis.
Fourth quarter GAAP net income was $24.3
million, a decrease of 35.4% over the same period last year
resulting from the one-time positive net income impact of $7.6
million in 2015 due to the settlement of outstanding
litigation. Diluted EPS for the fourth quarter was $0.25, as
compared to $0.39 for the fourth quarter 2015. Non-GAAP
diluted EPS, which removes the impact of this litigation and
acquisition related expenses, for the fourth quarter was $0.31,
compared to $0.32 in the fourth quarter of 2015.
The company generated net cash provided by
operating activities of $51.9 million and non-GAAP free cash flow
of $37.7 million in the fourth quarter. Cash, cash
equivalents and marketable securities ended the quarter at $350.8
million. The company remains debt free.
The company plans to request an extension to
file its Annual Report on Form 10-K for the fiscal year ended
December 31, 2016 by filing Form 12b-25, Notification of Late
Filing with the Securities and Exchange Commission. The
company concluded it is not able to compile all information
necessary to complete its Form 10-K by March 1, 2017 without
unreasonable effort or expense. The company anticipates
filing its Form 10-K for the fiscal year ended December 31, 2016
within the extension period.
2017 Annual GuidanceThe company
projects 2017 full year sales of $625 million and and non-GAAP
fully diluted earnings per share of $1.27.
Conference Call
InformationGlobus Medical will hold a teleconference to
discuss its 2016 fourth quarter and full year results with the
investment community at 5:30 p.m. Eastern Time today. Globus
invites all interested parties to join the call by dialing:
1-855-533-7141 United States
Participants1-720-545-0060 International ParticipantsThere 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 Monday, March 6,
2017. 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 6940-2658.
About Globus Medical,
Inc.Globus Medical, Inc. is a leading musculoskeletal
implant company based in Audubon, PA. The company 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.
Non-GAAP Financial MeasuresTo
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, provisions for litigation, technology
in-licensing fee, and acquisition related costs, 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.
In addition, for the period ended
December 31, 2016 and for other comparative periods, we are
presenting non-GAAP net income and non-GAAP diluted earnings per
share, which represents net income and diluted earnings per share
excluding the provision for litigation, amortization of
intangibles, acquisition related costs/licensing, prior period
adjustment and the tax effects of such adjustments. Prior
period adjustments represent the cumulative impact of prior year
adjustments related to depreciation, scrap and provision for excess
and obsolete inventory, none of which were individually material to
the related year's financial position or results of
operations. 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,
prior period adjustments and the tax effects of such adjustments,
which we believe are not reflective of underlying business
trends. Additionally, for the periods ended December 31,
2016 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 sales growth
is calculated by translating current year sales at the same average
exchange rates in effect during the applicable prior year
period. We believe constant currency sales growth provides
insight to the comparative increase or decrease in period 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 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 sales growth may differ from that of other companies and
therefore may not be comparable. Additionally, we have recast
prior periods for non-GAAP net income and non-GAAP diluted earnings
per share.
Safe Harbor StatementsAll
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, 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
successfully integrate the international operations acquired from
Alphatec, both in general and on our anticipated timeline, our
ability to transition Alphatec’s international customers to Globus
products, our ability to realize the expected benefits to our
results from the Alphatec acquisition, 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 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 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 |
CONSOLIDATED STATEMENTS OF
INCOME |
(unaudited) |
|
|
Three Months Ended |
|
Year Ended |
(In thousands,
except per share amounts) |
December 31, 2016 |
|
December 31, 2015 |
|
December 31, 2016 |
|
December 31, 2015 |
Sales |
$ |
151,590 |
|
|
$ |
142,587 |
|
|
$ |
563,994 |
|
|
$ |
544,753 |
|
Cost of goods sold |
39,002 |
|
|
34,940 |
|
|
134,705 |
|
|
132,333 |
|
Gross profit |
112,588 |
|
|
107,647 |
|
|
429,289 |
|
|
412,420 |
|
|
|
|
|
|
|
|
|
Operating
expenses: |
|
|
|
|
|
|
|
Research
and development |
13,643 |
|
|
9,672 |
|
|
44,532 |
|
|
36,312 |
|
Selling,
general and administrative |
60,839 |
|
|
52,802 |
|
|
222,156 |
|
|
210,241 |
|
Provision
for litigation |
100 |
|
|
(11,701 |
) |
|
3,156 |
|
|
(11,268 |
) |
Amortization of intangibles |
1,805 |
|
|
389 |
|
|
3,478 |
|
|
1,561 |
|
Acquisition related costs |
479 |
|
|
488 |
|
|
1,826 |
|
|
3,352 |
|
Total operating expenses |
76,866 |
|
|
51,650 |
|
|
275,148 |
|
|
240,198 |
|
|
|
|
|
|
|
|
|
Operating income |
35,722 |
|
|
55,997 |
|
|
154,141 |
|
|
172,222 |
|
Other
income, net |
755 |
|
|
236 |
|
|
3,138 |
|
|
583 |
|
Income before income taxes |
36,477 |
|
|
56,233 |
|
|
157,279 |
|
|
172,805 |
|
Income tax
provision |
12,179 |
|
|
18,632 |
|
|
52,938 |
|
|
60,021 |
|
|
|
|
|
|
|
|
|
Net
income |
$ |
24,298 |
|
|
$ |
37,601 |
|
|
$ |
104,341 |
|
|
$ |
112,784 |
|
|
|
|
|
|
|
|
|
Earnings per
share: |
|
|
|
|
|
|
|
Basic |
$ |
0.25 |
|
|
$ |
0.39 |
|
|
$ |
1.09 |
|
|
$ |
1.19 |
|
Diluted |
$ |
0.25 |
|
|
$ |
0.39 |
|
|
$ |
1.08 |
|
|
$ |
1.17 |
|
Weighted
average shares outstanding: |
|
|
|
|
|
|
|
Basic |
95,862 |
|
|
95,273 |
|
|
95,647 |
|
|
95,046 |
|
Diluted |
96,513 |
|
|
96,214 |
|
|
96,432 |
|
|
96,073 |
|
GLOBUS MEDICAL, INC. AND
SUBSIDIARIES |
CONSOLIDATED BALANCE SHEETS |
|
(In thousands,
except par value) |
December 31, 2016 |
|
December 31, 2015 |
|
|
|
|
ASSETS |
(unaudited) |
|
|
Current
assets: |
|
|
|
Cash and cash
equivalents |
$ |
132,639 |
|
|
$ |
60,152 |
|
Restricted cash |
477 |
|
|
26,119 |
|
Short-term marketable
securities |
157,673 |
|
|
220,877 |
|
Accounts receivable,
net of allowances of $2,771 and $2,513, respectively |
91,983 |
|
|
77,681 |
|
Inventories |
112,692 |
|
|
105,260 |
|
Prepaid expenses and
other current assets |
14,502 |
|
|
7,351 |
|
Income taxes
receivable |
3,800 |
|
|
8,672 |
|
Deferred income
taxes |
— |
|
|
38,687 |
|
Total current assets |
513,766 |
|
|
544,799 |
|
Property and equipment,
net of accumulated depreciation of $166,711 and $139,144,
respectively |
124,229 |
|
|
114,743 |
|
Long-term marketable
securities |
60,444 |
|
|
48,762 |
|
Note receivable |
30,000 |
|
|
— |
|
Intangible assets,
net |
61,706 |
|
|
33,242 |
|
Goodwill |
105,926 |
|
|
91,964 |
|
Other assets |
928 |
|
|
590 |
|
Deferred income
taxes |
30,638 |
|
|
— |
|
Total assets |
$ |
927,637 |
|
|
$ |
834,100 |
|
|
|
|
|
LIABILITIES AND
EQUITY |
|
|
|
Current
liabilities: |
|
|
|
Accounts payable |
$ |
17,472 |
|
|
$ |
15,971 |
|
Accrued expenses |
46,401 |
|
|
53,769 |
|
Income taxes
payable |
1,911 |
|
|
763 |
|
Business acquisition
liabilities, current |
14,108 |
|
|
12,188 |
|
Total current liabilities |
79,892 |
|
|
82,691 |
|
Business acquisition
liabilities, net of current portion |
5,972 |
|
|
21,126 |
|
Deferred income
taxes |
7,876 |
|
|
13,260 |
|
Other liabilities |
1,819 |
|
|
1,699 |
|
Total liabilities |
95,559 |
|
|
118,776 |
|
Commitments and
contingencies |
|
|
|
Equity: |
|
|
|
Common stock; $0.001
par value. Authorized 785,000 shares; issued and outstanding 95,930
and 95,320 shares at December 31, 2016 and December 31, 2015,
respectively |
96 |
|
|
95 |
|
Additional paid-in
capital |
211,725 |
|
|
192,629 |
|
Accumulated other
comprehensive loss |
(8,642 |
) |
|
(1,958 |
) |
Retained earnings |
628,899 |
|
|
524,558 |
|
Total equity |
832,078 |
|
|
715,324 |
|
Total liabilities and equity |
$ |
927,637 |
|
|
$ |
834,100 |
|
GLOBUS MEDICAL, INC. AND
SUBSIDIARIES |
CONSOLIDATED STATEMENTS OF CASH
FLOWS |
(unaudited) |
|
|
Year Ended |
(In
thousands) |
December 31, 2016 |
|
December 31, 2015 |
Cash flows from
operating activities: |
|
|
|
Net income |
$ |
104,341 |
|
|
$ |
112,784 |
|
Adjustments to
reconcile net income to net cash provided by operating
activities: |
|
|
|
Depreciation and amortization |
38,771 |
|
|
24,084 |
|
Amortization of premium on marketable securities |
4,068 |
|
|
3,354 |
|
Write-down for excess and obsolete inventories |
12,836 |
|
|
9,924 |
|
Stock-based compensation expense |
11,382 |
|
|
9,639 |
|
Excess
tax benefit related to nonqualified stock options |
(1,571 |
) |
|
(2,050 |
) |
Allowance
for doubtful accounts |
685 |
|
|
1,465 |
|
Change in
fair value of contingent consideration |
2,866 |
|
|
3,118 |
|
Non-cash
settlement of accrued expenses |
(4,632 |
) |
|
(8,405 |
) |
Impairment of intangible assets |
3,472 |
|
|
— |
|
Change in
deferred income taxes |
(3,810 |
) |
|
6,235 |
|
(Increase)/decrease in: |
|
|
|
Restricted cash |
25,641 |
|
|
(2,749 |
) |
Accounts
receivable |
(4,668 |
) |
|
(4,193 |
) |
Inventories |
(10,503 |
) |
|
(19,327 |
) |
Prepaid
expenses and other assets |
4,568 |
|
|
(1,203 |
) |
Increase/(decrease) in: |
|
|
|
Accounts
payable |
(23 |
) |
|
(3,825 |
) |
Accounts
payable to related-party |
— |
|
|
(5,359 |
) |
Accrued
expenses and other liabilities |
(18,164 |
) |
|
(878 |
) |
Income
taxes payable/receivable |
6,634 |
|
|
(657 |
) |
Net cash
provided by operating activities |
171,893 |
|
|
121,957 |
|
|
|
|
|
Cash flows from
investing activities: |
|
|
|
Purchases
of marketable securities |
(287,263 |
) |
|
(297,707 |
) |
Maturities of marketable securities |
281,885 |
|
|
188,702 |
|
Sales of
marketable securities |
52,802 |
|
|
57,728 |
|
Purchases
of property and equipment |
(40,909 |
) |
|
(50,760 |
) |
Issuance
of note receivable |
(30,000 |
) |
|
— |
|
Acquisition of businesses, net of cash acquired |
(76,068 |
) |
|
(48,513 |
) |
Net cash used
in investing activities |
(99,553 |
) |
|
(150,550 |
) |
|
|
|
|
Cash flows from
financing activities: |
|
|
|
Payment
of business acquisition liabilities |
(5,404 |
) |
|
(1,200 |
) |
Proceeds
from exercise of stock options |
5,874 |
|
|
5,477 |
|
Excess
tax benefit related to nonqualified stock options |
1,571 |
|
|
2,050 |
|
Net cash
provided by financing activities |
2,041 |
|
|
6,327 |
|
|
|
|
|
Effect of foreign
exchange rate on cash |
(1,894 |
) |
|
153 |
|
|
|
|
|
Net
increase/(decrease) in cash and cash equivalents |
72,487 |
|
|
(22,113 |
) |
Cash and cash
equivalents, beginning of period |
60,152 |
|
|
82,265 |
|
Cash and cash
equivalents, end of period |
$ |
132,639 |
|
|
$ |
60,152 |
|
|
|
|
|
Supplemental
disclosures of cash flow information: |
|
|
|
Interest
paid |
35 |
|
|
9 |
|
Income
taxes paid |
$ |
50,087 |
|
|
$ |
57,100 |
|
Supplemental Financial
Information |
|
Sales by Geographic Area: |
|
|
|
|
(Unaudited) |
Three Months Ended |
|
Year Ended |
(In
thousands) |
December 31, 2016 |
|
December 31, 2015 |
|
December 31, 2016 |
|
December 31, 2015 |
United States |
$ |
127,477 |
|
|
$ |
131,051 |
|
|
$ |
500,226 |
|
|
$ |
498,191 |
|
International |
24,113 |
|
|
11,536 |
|
|
63,768 |
|
|
46,562 |
|
Total sales |
$ |
151,590 |
|
|
$ |
142,587 |
|
|
$ |
563,994 |
|
|
$ |
544,753 |
|
Sales by Product Category: |
|
(Unaudited) |
Three Months Ended |
|
Year Ended |
(In
thousands) |
December 31, 2016 |
|
December 31, 2015 |
|
December 31, 2016 |
|
December 31, 2015 |
Innovative Fusion |
$ |
79,609 |
|
|
$ |
73,631 |
|
|
$ |
287,594 |
|
|
$ |
288,062 |
|
Disruptive
Technology |
71,981 |
|
|
68,956 |
|
|
276,400 |
|
|
256,691 |
|
Total sales |
$ |
151,590 |
|
|
$ |
142,587 |
|
|
$ |
563,994 |
|
|
$ |
544,753 |
|
Liquidity and Capital Resources: |
|
(Unaudited) |
December 31, 2016 |
|
December 31, 2015 |
(In
thousands) |
|
|
|
Cash and cash
equivalents |
$ |
132,639 |
|
|
$ |
60,152 |
|
Short-term marketable
securities |
157,673 |
|
|
220,877 |
|
Long-term marketable
securities |
60,444 |
|
|
48,762 |
|
Total cash, cash
equivalents and marketable securities |
$ |
350,756 |
|
|
$ |
329,791 |
|
|
|
|
|
Available borrowing
capacity under revolving credit facility |
50,000 |
|
|
50,000 |
|
Working capital |
$ |
433,874 |
|
|
$ |
462,108 |
|
|
|
|
|
|
|
|
|
The following tables reconcile GAAP to Non-GAAP
financial measures.
|
Non-GAAP Adjusted EBITDA Reconciliation
Table: |
|
(Unaudited) |
Three Months Ended |
|
Year Ended |
(In thousands,
except percentages) |
December 31, 2016 |
|
December 31, 2015 |
|
December 31, 2016 |
|
December 31, 2015 |
Net income |
$ |
24,298 |
|
|
$ |
37,601 |
|
|
$ |
104,341 |
|
|
$ |
112,784 |
|
Interest income,
net |
(1,164 |
) |
|
(406 |
) |
|
(3,057 |
) |
|
(1,304 |
) |
Provision for income
taxes |
12,179 |
|
|
18,632 |
|
|
52,938 |
|
|
60,021 |
|
Depreciation and
amortization |
17,235 |
|
|
6,415 |
|
|
38,771 |
|
|
24,084 |
|
EBITDA |
52,548 |
|
|
62,242 |
|
|
192,993 |
|
|
195,585 |
|
Stock-based
compensation expense |
2,945 |
|
|
2,704 |
|
|
11,382 |
|
|
9,639 |
|
Provision for
litigation |
100 |
|
|
(11,701 |
) |
|
3,156 |
|
|
(11,268 |
) |
Acquisition related
costs/licensing |
5,280 |
|
|
488 |
|
|
6,931 |
|
|
3,577 |
|
Prior period
adjustment, excluding depreciation |
(3,697 |
) |
|
— |
|
|
(3,697 |
) |
|
— |
|
Adjusted EBITDA |
$ |
57,176 |
|
|
$ |
53,733 |
|
|
$ |
210,765 |
|
|
$ |
197,533 |
|
|
|
|
|
|
|
|
|
Net income as a
percentage of sales |
16.0 |
% |
|
26.4 |
% |
|
18.5 |
% |
|
20.7 |
% |
Adjusted EBITDA as a
percentage of sales |
37.7 |
% |
|
37.7 |
% |
|
37.4 |
% |
|
36.3 |
% |
Non-GAAP Net Income Reconciliation
Table: |
|
(Unaudited) |
Three Months Ended |
|
Year Ended |
(In
thousands) |
December 31, 2016 |
|
December 31, 2015 |
|
December 31, 2016 |
|
December 31, 2015 |
Net income |
$ |
24,298 |
|
|
$ |
37,601 |
|
|
$ |
104,341 |
|
|
$ |
112,784 |
|
Provision for
litigation |
100 |
|
|
(11,701 |
) |
|
3,156 |
|
|
(11,268 |
) |
Amortization of
intangibles |
1,805 |
|
|
389 |
|
|
3,478 |
|
|
1,561 |
|
Acquisition related
costs/licensing |
5,280 |
|
|
488 |
|
|
6,931 |
|
|
3,577 |
|
Prior period
adjustment |
1,765 |
|
|
— |
|
|
1,765 |
|
|
— |
|
Tax effect of adjusting
items |
(3,054 |
) |
|
3,803 |
|
|
(5,166 |
) |
|
2,127 |
|
Non-GAAP net
income |
$ |
30,194 |
|
|
$ |
30,580 |
|
|
$ |
114,505 |
|
|
$ |
108,781 |
|
Non-GAAP Diluted Earnings Per Share
Reconciliation Table: |
|
(Unaudited) |
Three Months Ended |
|
Year Ended |
(Per share
amounts) |
December 31, 2016 |
|
December 31, 2015 |
|
December 31, 2016 |
|
December 31, 2015 |
Diluted earnings per
share, as reported |
$ |
0.25 |
|
|
$ |
0.39 |
|
|
$ |
1.08 |
|
|
$ |
1.17 |
|
Provision for
litigation |
— |
|
|
(0.12 |
) |
|
0.03 |
|
|
(0.12 |
) |
Amortization of
intangibles |
0.02 |
|
|
— |
|
|
0.04 |
|
|
0.02 |
|
Acquisition related
costs/licensing |
0.05 |
|
|
0.01 |
|
|
0.07 |
|
|
0.04 |
|
Prior period
adjustment |
0.02 |
|
|
— |
|
|
0.02 |
|
|
— |
|
Tax effect of adjusting
items |
(0.03 |
) |
|
0.04 |
|
|
(0.05 |
) |
|
0.02 |
|
Non-GAAP diluted
earnings per share |
$ |
0.31 |
|
|
$ |
0.32 |
|
|
$ |
1.19 |
|
|
$ |
1.13 |
|
Non-GAAP Free Cash Flow Reconciliation
Table: |
|
(Unaudited) |
Three Months Ended |
|
Year Ended |
(In
thousands) |
December 31, 2016 |
|
December 31, 2015 |
|
December 31, 2016 |
|
December 31, 2015 |
Net cash provided by
operating activities |
$ |
51,896 |
|
|
$ |
44,080 |
|
|
$ |
171,893 |
|
|
$ |
121,957 |
|
Adjustment for impact
of restricted cash |
1 |
|
|
734 |
|
|
(25,641 |
) |
|
2,749 |
|
Purchases of property
and equipment |
(14,208 |
) |
|
(14,154 |
) |
|
(40,909 |
) |
|
(50,760 |
) |
Non-GAAP free cash
flow |
$ |
37,689 |
|
|
$ |
30,660 |
|
|
$ |
105,343 |
|
|
$ |
73,946 |
|
Non-GAAP Sales on a Constant Currency Basis
Comparative Table: |
|
(Unaudited) |
Three Months Ended |
|
Reported Growth |
|
Currency Impact on Current
Period |
|
Constant Currency
Growth |
(In thousands,
except percentages) |
December 31, 2016 |
|
December 31, 2015 |
|
|
|
United States |
$ |
127,477 |
|
|
$ |
131,051 |
|
|
(2.7 |
)% |
|
— |
|
|
(2.7 |
)% |
International |
24,113 |
|
|
11,536 |
|
|
109.0 |
% |
|
$ |
(326 |
) |
|
111.8 |
% |
Total sales |
$ |
151,590 |
|
|
$ |
142,587 |
|
|
6.3 |
% |
|
$ |
(326 |
) |
|
6.5 |
% |
(Unaudited) |
Year Ended |
|
Reported Growth |
|
Currency Impact on Current
Period |
|
Constant Currency
Growth |
(In thousands,
except percentages) |
December 31, 2016 |
|
December 31, 2015 |
|
|
|
United States |
$ |
500,226 |
|
|
$ |
498,191 |
|
|
0.4 |
% |
|
— |
|
|
0.4 |
% |
International |
63,768 |
|
|
46,562 |
|
|
37.0 |
% |
|
$ |
(1,594 |
) |
|
40.4 |
% |
Total sales |
$ |
563,994 |
|
|
$ |
544,753 |
|
|
3.5 |
% |
|
$ |
(1,594 |
) |
|
3.8 |
% |
Contact:
Daniel Scavilla
Senior Vice President, Chief Financial Officer
Phone: (610) 930-1800
Email: investors@globusmedical.com
www.globusmedical.com
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