UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): November 8, 2018
GLOBUS MEDICAL, INC.
(Exact name of registrant as specified in charter)
DELAWARE | 001-35621 | 04-3744954 | ||
(State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification No.) | ||
2560 GENERAL ARMISTEAD AVENUE, AUDUBON, PA 19403
(Address of principal executive offices) (Zip Code)
(610) 930-1800
(Registrant’s telephone number, including area code)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
o | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
o | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
o | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
o | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Indicate by check mark whether the registrant is an emerging growth company as defined in as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company | o |
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. | o |
Item 2.02. Results of Operations and Financial Condition.
On November 8, 2018, we issued a press release reporting, among other things, our sales and operating results for the three- and nine- month period ended September 30, 2018. A copy of the press release is furnished as Exhibit 99.1 to this report.
In accordance with general instruction B.2 to Form 8-K, the information included in this Item 2.02, and the exhibits attached hereto, shall be deemed to be “furnished” and shall not be deemed to be “filed” with the Securities and Exchange Commission for purposes of Section 18 of the Securities Exchange Act of 1934, as amended.
Item 9.01. Financial Statements and Exhibits.
Exhibit No. | Description |
99.1 | |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
GLOBUS MEDICAL, INC. | ||
(Registrant) | ||
Dated: | November 8, 2018 | /s/ DANIEL T. SCAVILLA |
Daniel T. Scavilla | ||
Executive Vice President, | ||
Chief Financial Officer | ||
Chief Commercial Officer | ||
Exhibit 99.1
Globus Medical Reports Third Quarter 2018 Results
AUDUBON, PA, November 8, 2018: Globus Medical, Inc. (NYSE:GMED), a leading musculoskeletal solutions company, today announced its financial results for the third quarter ended September 30, 2018.
• | Worldwide sales were $169.2 million, an increase of 11.5% as reported |
• | Third quarter net income was $35.2 million, an increase of 37.6% |
• | Diluted earnings per share (EPS) was $0.35 and non-GAAP diluted EPS was $0.39 |
• | Non-GAAP diluted EPS increased 29.2% compared to third quarter of 2017 |
• | Non-GAAP adjusted EBITDA was 34.1% of sales |
“The third quarter marks the fourth consecutive quarter of double-digit organic growth for Globus Medical, as our U.S. Spine business continues to take market share, growing by 7.5%; our international revenue increased by 16.8%; and Emerging Technologies contributed $6.3 million", said Dave Demski, CEO. "During the third quarter, we completed the acquisition of Surgimap®, the leading surgical planning software for spine. The addition of Surgimap® will further strengthen Globus Medical’s ExcelsiusGPS® platform by streamlining workflow and enabling superior data analytics. The level of adoption we are seeing by surgeons in accounts with our ExcelsiusGPS® robotic system continues to show positive momentum and the pipeline for potential robotic sales is robust."
Worldwide sales for the third quarter were $169.2 million, an increase of 11.5% over the third quarter of 2017. Revenue from Emerging Technologies was primarily due to continued demand for our ExcelsiusGPS® robotics and navigation system.
Third quarter sales in the U.S., including robotics, increased by 10.5% compared to the third quarter of 2017. International sales increased by 16.8% over the third quarter of 2017 on an as-reported basis and 18.5% on a constant currency basis.
Third quarter GAAP net income was $35.2 million, an increase of 37.6% over the same period last year. Diluted EPS for the third quarter was $0.35, as compared to $0.26 for the third quarter 2017. Non-GAAP diluted EPS for the third quarter was $0.39, compared to $0.30 in the third quarter of 2017, an increase of 29.2%.
The company generated net cash provided by operating activities of $51.8 million and non-GAAP free cash flow of $36.4 million in the third quarter, and ended the quarter with cash, cash equivalents and marketable securities of $541.6 million. The company remains debt free.
2018 Annual Guidance
The company today issued new guidance for full year 2018 sales of $705 million and non-GAAP diluted earnings per share of $1.62. 2018 guidance was previously sales of $700 million and non-GAAP diluted earnings per share of $1.55.
Conference Call Information
Globus Medical will hold a teleconference to discuss its 2018 third 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
1-720-545-0060 International 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, November 15, 2018. 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 1012-6377.
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, provisions for litigation, and acquisition related costs/licensing, and net gain from the sale of assets, 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. Net gain from sale of assets represents the gain on sale of assets and the offsetting impact of costs incurred through the sale.
In addition, for the period ended September 30, 2018 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, net gain from the sale of assets and the tax effects of such adjustments. 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, net gain from the sale of assets and the tax effects of such adjustments, which we believe are not reflective of underlying business trends. Additionally, for the periods ended September 30, 2018 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 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, 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
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(unaudited)
Three Months Ended | Nine Months Ended | ||||||||||||||
(In thousands, except per share amounts) | September 30, 2018 | September 30, 2017 | September 30, 2018 | September 30, 2017 | |||||||||||
Sales | $ | 169,236 | $ | 151,744 | $ | 517,031 | $ | 459,943 | |||||||
Cost of goods sold | 37,849 | 36,798 | 113,456 | 109,597 | |||||||||||
Gross profit | 131,387 | 114,946 | 403,575 | 350,346 | |||||||||||
Operating expenses: | |||||||||||||||
Research and development | 15,527 | 10,887 | 41,738 | 32,266 | |||||||||||
Selling, general and administrative | 75,131 | 63,362 | 227,949 | 194,859 | |||||||||||
Provision for litigation | — | 2,537 | — | 2,780 | |||||||||||
Amortization of intangibles | 2,160 | 2,080 | 6,525 | 5,671 | |||||||||||
Acquisition related costs | 268 | 285 | 1,289 | 1,290 | |||||||||||
Total operating expenses | 93,086 | 79,151 | 277,501 | 236,866 | |||||||||||
Operating income | 38,301 | 35,795 | 126,074 | 113,480 | |||||||||||
Other income/(expense), net | 4,296 | 1,562 | 14,904 | 5,848 | |||||||||||
Income before income taxes | 42,597 | 37,357 | 140,978 | 119,328 | |||||||||||
Income tax provision | 7,389 | 11,766 | 21,254 | 36,356 | |||||||||||
Net income | $ | 35,208 | $ | 25,591 | $ | 119,724 | $ | 82,972 | |||||||
Earnings per share: | |||||||||||||||
Basic | $ | 0.36 | $ | 0.27 | $ | 1.23 | $ | 0.86 | |||||||
Diluted | $ | 0.35 | $ | 0.26 | $ | 1.18 | $ | 0.85 | |||||||
Weighted average shares outstanding: | |||||||||||||||
Basic | 98,328 | 96,318 | 97,671 | 96,160 | |||||||||||
Diluted | 101,804 | 97,849 | 101,275 | 97,607 | |||||||||||
GLOBUS MEDICAL, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except par value) | September 30, 2018 | December 31, 2017 | |||||
ASSETS | (unaudited) | ||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 145,295 | $ | 118,817 | |||
Short-term marketable securities | 227,466 | 254,890 | |||||
Accounts receivable, net of allowances of $3,655 and $3,963, respectively | 118,847 | 116,676 | |||||
Inventories | 124,372 | 108,409 | |||||
Prepaid expenses and other current assets | 13,951 | 11,166 | |||||
Current portion of note receivable | 3,333 | 1,667 | |||||
Income taxes receivable | 13,137 | 8,717 | |||||
Total current assets | 646,401 | 620,342 | |||||
Property and equipment, net of accumulated depreciation of $210,120 and $191,760, respectively | 161,768 | 143,167 | |||||
Long-term marketable securities | 168,850 | 56,133 | |||||
Note receivable | 25,833 | 28,333 | |||||
Intangible assets, net | 89,522 | 78,659 | |||||
Goodwill | 124,015 | 123,890 | |||||
Other assets | 6,726 | 7,947 | |||||
Deferred income taxes | 15,391 | 20,031 | |||||
Total assets | $ | 1,238,506 | $ | 1,078,502 | |||
LIABILITIES AND EQUITY | |||||||
Current liabilities: | |||||||
Accounts payable | $ | 23,061 | $ | 25,039 | |||
Accrued expenses | 47,764 | 52,594 | |||||
Income taxes payable | 2,322 | 3,274 | |||||
Business acquisition liabilities | 6,693 | 11,411 | |||||
Deferred revenue | 1,878 | 755 | |||||
Total current liabilities | 81,718 | 93,073 | |||||
Business acquisition liabilities, net of current portion | 3,378 | 4,508 | |||||
Deferred income taxes | 9,623 | 10,669 | |||||
Other liabilities | 2,670 | 2,474 | |||||
Total liabilities | 97,389 | 110,724 | |||||
Commitments and contingencies | |||||||
Equity: | |||||||
Common stock; $0.001 par value. Authorized 785,000 shares; issued and outstanding 98,450 and 96,658 shares at September 30, 2018 and December 31, 2017, respectively | 99 | 97 | |||||
Additional paid-in capital | 291,875 | 238,341 | |||||
Accumulated other comprehensive loss | (6,828 | ) | (6,907 | ) | |||
Retained earnings | 855,971 | 736,247 | |||||
Total equity | 1,141,117 | 967,778 | |||||
Total liabilities and equity | $ | 1,238,506 | $ | 1,078,502 | |||
GLOBUS MEDICAL, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited)
Nine Months Ended | |||||||
(In thousands) | September 30, 2018 | September 30, 2017 | |||||
Cash flows from operating activities: | |||||||
Net income | $ | 119,724 | $ | 82,972 | |||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
Depreciation and amortization | 29,694 | 33,773 | |||||
Amortization of premium on marketable securities | 1,808 | 2,258 | |||||
Write-down for excess and obsolete inventories | 8,326 | 8,158 | |||||
Stock-based compensation expense | 17,078 | 10,659 | |||||
Allowance for doubtful accounts | 388 | 1,135 | |||||
Change in fair value of business acquisition liabilities | 592 | 1,011 | |||||
Change in deferred income taxes | 1,606 | 815 | |||||
(Gain)/loss on disposal of assets, net | (3,694 | ) | — | ||||
(Increase)/decrease in: | |||||||
Accounts receivable | (2,900 | ) | (2,200 | ) | |||
Inventories | (23,042 | ) | (6,956 | ) | |||
Prepaid expenses and other assets | (81 | ) | (974 | ) | |||
Increase/(decrease) in: | |||||||
Accounts payable | (4,858 | ) | (344 | ) | |||
Accrued expenses and other liabilities | (1,965 | ) | (9,377 | ) | |||
Income taxes payable/receivable | (5,324 | ) | (6,709 | ) | |||
Net cash provided by operating activities | 137,352 | 114,221 | |||||
Cash flows from investing activities: | |||||||
Purchases of marketable securities | (382,347 | ) | (227,699 | ) | |||
Maturities of marketable securities | 210,066 | 168,418 | |||||
Sales of marketable securities | 85,234 | 34,751 | |||||
Purchases of property and equipment | (42,538 | ) | (37,878 | ) | |||
Proceeds from sale of assets | 4,000 | — | |||||
Acquisition of businesses, net of cash acquired, and purchases of intangible and other assets | (14,825 | ) | (31,501 | ) | |||
Net cash used in investing activities | (140,410 | ) | (93,909 | ) | |||
Cash flows from financing activities: | |||||||
Payment of business acquisition liabilities | (6,513 | ) | (5,234 | ) | |||
Proceeds from exercise of stock options | 36,245 | 6,943 | |||||
Net cash (used in)/provided by financing activities | 29,732 | 1,709 | |||||
Effect of foreign exchange rate on cash | (196 | ) | 778 | ||||
Net increase in cash, cash equivalents, and restricted cash | 26,478 | 22,799 | |||||
Cash, cash equivalents, and restricted cash, beginning of period | 118,817 | 67,431 | |||||
Cash, cash equivalents, and restricted cash, end of period | $ | 145,295 | $ | 90,230 | |||
Supplemental disclosures of cash flow information: | |||||||
Interest paid | — | 34 | |||||
Income taxes paid | $ | 24,894 | $ | 49,008 | |||
Supplemental Financial Information
Sales by Geographic Area:
(Unaudited) | Three Months Ended | Nine Months Ended | |||||||||||||
(In thousands) | September 30, 2018 | September 30, 2017 | September 30, 2018 | September 30, 2017 | |||||||||||
United States | $ | 139,097 | $ | 125,933 | $ | 429,823 | $ | 381,870 | |||||||
International | 30,139 | 25,811 | 87,208 | 78,073 | |||||||||||
Total sales | $ | 169,236 | $ | 151,744 | $ | 517,031 | $ | 459,943 | |||||||
Sales by Revenue Stream:
(Unaudited) | Three Months Ended | Nine Months Ended | |||||||||||||
(In thousands) | September 30, 2018 | September 30, 2017 | September 30, 2018 | September 30, 2017 | |||||||||||
Spine products | $ | 162,952 | $ | 151,744 | $ | 484,149 | $ | 459,943 | |||||||
Emerging Technology products | 6,284 | — | 32,882 | — | |||||||||||
Total sales | $ | 169,236 | $ | 151,744 | $ | 517,031 | $ | 459,943 | |||||||
Liquidity and Capital Resources:
(Unaudited) | September 30, 2018 | December 31, 2017 | |||||
(In thousands) | |||||||
Cash and cash equivalents | $ | 145,295 | $ | 118,817 | |||
Short-term marketable securities | 227,466 | 254,890 | |||||
Long-term marketable securities | 168,850 | 56,133 | |||||
Total cash, cash equivalents and marketable securities | $ | 541,611 | $ | 429,840 | |||
The following tables reconcile GAAP to Non-GAAP financial measures.
Non-GAAP Adjusted EBITDA Reconciliation Table:
(Unaudited) | Three Months Ended | Nine Months Ended | |||||||||||||
(In thousands, except percentages) | September 30, 2018 | September 30, 2017 | September 30, 2018 | September 30, 2017 | |||||||||||
Net income | $ | 35,208 | $ | 25,591 | $ | 119,724 | $ | 82,972 | |||||||
Interest income, net | (3,852 | ) | (1,738 | ) | (9,114 | ) | (4,746 | ) | |||||||
Provision for income taxes | 7,389 | 11,766 | 21,254 | 36,356 | |||||||||||
Depreciation and amortization | 10,461 | 10,838 | 29,694 | 33,773 | |||||||||||
EBITDA | 49,206 | 46,457 | 161,558 | 148,355 | |||||||||||
Stock-based compensation expense | 5,545 | 3,596 | 17,078 | 10,659 | |||||||||||
Provision for litigation | — | 2,537 | — | 2,780 | |||||||||||
Acquisition related costs/licensing | 2,169 | 784 | 3,847 | 2,838 | |||||||||||
Net gain from sale of assets | 764 | — | (3,593 | ) | — | ||||||||||
Adjusted EBITDA | $ | 57,684 | $ | 53,374 | $ | 178,890 | $ | 164,632 | |||||||
Net income as a percentage of sales | 20.8 | % | 16.9 | % | 23.2 | % | 18.0 | % | |||||||
Adjusted EBITDA as a percentage of sales | 34.1 | % | 35.2 | % | 34.6 | % | 35.8 | % | |||||||
Non-GAAP Net Income Reconciliation Table:
(Unaudited) | Three Months Ended | Nine Months Ended | |||||||||||||
(In thousands) | September 30, 2018 | September 30, 2017 | September 30, 2018 | September 30, 2017 | |||||||||||
Net income | $ | 35,208 | $ | 25,591 | $ | 119,724 | $ | 82,972 | |||||||
Provision for litigation | — | 2,537 | — | 2,780 | |||||||||||
Amortization of intangibles | 2,160 | 2,080 | 6,525 | 5,671 | |||||||||||
Acquisition related costs/licensing | 2,169 | 784 | 3,847 | 2,838 | |||||||||||
Net gain from sale of assets | 764 | — | (3,593 | ) | — | ||||||||||
Tax effect of adjusting items | (884 | ) | (1,677 | ) | (1,248 | ) | (3,443 | ) | |||||||
Non-GAAP net income | $ | 39,417 | $ | 29,315 | $ | 125,255 | $ | 90,818 | |||||||
Non-GAAP Diluted Earnings Per Share Reconciliation Table:
(Unaudited) | Three Months Ended | Nine Months Ended | |||||||||||||
(Per share amounts) | September 30, 2018 | September 30, 2017 | September 30, 2018 | September 30, 2017 | |||||||||||
Diluted earnings per share, as reported | $ | 0.35 | $ | 0.26 | $ | 1.18 | $ | 0.85 | |||||||
Provision for litigation | — | 0.03 | — | 0.03 | |||||||||||
Amortization of intangibles | 0.02 | 0.02 | 0.06 | 0.06 | |||||||||||
Acquisition related costs/licensing | 0.02 | 0.01 | 0.04 | 0.03 | |||||||||||
Net gain from sale of assets | 0.01 | — | (0.04 | ) | — | ||||||||||
Tax effect of adjusting items | (0.01 | ) | (0.02 | ) | (0.01 | ) | (0.04 | ) | |||||||
Non-GAAP diluted earnings per share | $ | 0.39 | $ | 0.30 | $ | 1.24 | $ | 0.93 | |||||||
* amounts might not add due to rounding | |||||||||||||||
Non-GAAP Free Cash Flow Reconciliation Table:
(Unaudited) | Three Months Ended | Nine Months Ended | |||||||||||||
(In thousands) | September 30, 2018 | September 30, 2017 | September 30, 2018 | September 30, 2017 | |||||||||||
Net cash provided by operating activities | $ | 51,788 | $ | 34,795 | $ | 137,352 | $ | 114,221 | |||||||
Adjustment for impact of restricted cash | — | — | — | — | |||||||||||
Purchases of property and equipment | (15,371 | ) | (12,817 | ) | (42,538 | ) | (37,878 | ) | |||||||
Non-GAAP free cash flow | $ | 36,417 | $ | 21,978 | $ | 94,814 | $ | 76,343 | |||||||
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) | September 30, 2018 | September 30, 2017 | |||||||||||||||
United States | $ | 139,097 | $ | 125,933 | 10.5 | % | — | 10.5 | % | ||||||||
International | 30,139 | 25,811 | 16.8 | % | $ | (436 | ) | 18.5 | % | ||||||||
Total sales | $ | 169,236 | $ | 151,744 | 11.5 | % | $ | (436 | ) | 11.8 | % | ||||||
(Unaudited) | Nine Months Ended | Reported Growth | Currency Impact on Current Period | Constant Currency Growth | |||||||||||||
(In thousands, except percentages) | September 30, 2018 | September 30, 2017 | |||||||||||||||
United States | $ | 429,823 | $ | 381,870 | 12.6 | % | — | 12.6 | % | ||||||||
International | 87,208 | 78,073 | 11.7 | % | $ | 2,061 | 9.1 | % | |||||||||
Total sales | $ | 517,031 | $ | 459,943 | 12.4 | % | $ | 2,061 | 12.0 | % | |||||||
Contact:
Brian Kearns
Vice President, Business Development and Investor Relations
Phone: (610) 930-1800
Email: investors@globusmedical.com
www.globusmedical.com