Globus Medical, Inc. (NYSE: GMED), a leading musculoskeletal
solutions company, today announced preliminary unaudited sales
results for the fourth quarter and full year ending
December 31, 2023. The company anticipates fourth quarter 2023
sales of approximately $615.5 million, an increase of 124.2 percent
over the fourth quarter 2022 on an as-reported basis. Full year
2023 sales are expected to be approximately $1.567 billion, an
increase of 53.2 percent over the prior year on an as-reported
basis.
“2023 was a monumental year for Globus Medical.
We completed our merger with NuVasive to create the most innovative
technology company in the spine market. Our integration is
proceeding according to plan and we are pleased with our sales
retention thus far. To cap off this eventful year, our revenue for
the full year and fourth quarter of 2023 were both record-setting,
breaking previous highs in both U.S. Spine and Enabling
Technologies,” said Dan Scavilla, president and CEO. “We remain
focused on delivering product innovation, superior customer
service, and operational excellence as we continue to advance
patient care. 2024 is expected to be a very exciting year for
product launches, including the introduction of new enabling
technologies. While our core competencies and expertise have, and
will remain focused on the spine market, we are sowing the seeds
today to position our company for future growth drivers in the
broader musculoskeletal market. Globus Medical remains well
positioned to advance our vision of becoming the preeminent
musculoskeletal technology company to promote healing in
patients."
“We are pleased with our strong finish in Q4 and
our overall full year performance,” commented Keith Pfeil, CFO.
“Excluding the impacts of the September 1, 2023 merger with
NuVasive, Inc., legacy Globus fourth quarter revenue was
approximately $302.9 million, an increase of 10.4 percent over the
prior year fourth quarter. Full year 2023 legacy Globus revenue was
approximately $1.152 billion or 12.7 percent higher over the prior
year. Looking ahead, we are well positioned to execute
on our objectives for 2024 as we remain focused on the priorities
of sales growth, continued merger integration activities and
realizing synergy capture.”
The Company established its full year 2024
revenue guidance range of $2.450 billion to $2.475 billion and
fully diluted non-GAAP earnings per share range between $2.68 to
$2.70.
These preliminary results are unaudited and are
based on management’s initial analysis of operations for the
periods ended December 31, 2023, and are therefore subject to
change. The company expects to announce its fourth quarter and full
year 2023 financial results on February 20, 2024, after the market
close.
About Globus Medical, Inc.
Globus Medical, Inc. is a leading
musculoskeletal solutions 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. 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.
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, merger and acquisition related
costs/licensing, 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. 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.
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. 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.
Non-GAAP net income and non-GAAP diluted
earnings per share 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 net income and non-GAAP diluted earnings per share may
differ from that of other companies and therefore may not be
comparable.
We are unable to present a quantitative
reconciliation of our expected fully diluted GAAP earnings per
share to non-GAAP earnings per share as we are unable to predict
with reasonable certainty and without unreasonable effort the
impact and timing of provision for litigation, amortization of
intangibles, acquisition related costs/licensing, acquisition of
in-process research and development, merger and acquisition related
costs/licensing, 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. The financial impact of these items is uncertain and
is dependent on various factors, including timing, and could be
material to our Consolidated Statements of Income.
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, and our ability to integrate
the NuVasive business successfully and to achieve anticipated
synergies, 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.
ContactBrian KearnsSenior Vice
President, Business Development and Investor RelationsPhone: (610)
930-1800Email: investors@globusmedical.comwww.globusmedical.com
Globus Medical (NYSE:GMED)
Historical Stock Chart
From Mar 2024 to Apr 2024
Globus Medical (NYSE:GMED)
Historical Stock Chart
From Apr 2023 to Apr 2024