gmed-20230803x8k
false0001237831DE00012378312023-08-032023-08-03

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):  August 3, 2023  

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 19403-5214

(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):

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading Symbols

Name of exchange on which registered

Class A Common Stock, par value $.001 per share

GMED

New York Stock Exchange

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     

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.



Item 2.02. Results of Operations and Financial Condition.

On August 3, 2023, we issued a press release reporting, among other things, our sales and operating results for the three-month period ended June 30, 2023. 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

Press Release dated August 3, 2023

104

The cover page from this Current Report on Form 8-K, formatted as Inline XBRL.



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:

August 3, 2023

/s/ KEITH PFEIL

 

 

 

 

 

Keith Pfeil

 

 

Chief Financial Officer

Chief Accounting Officer

Senior Vice President

 

 

(Principal Financial Officer)

Exhibit 991 Earnings Release

Exhibit 99.1





Globus Medical Reports Second Quarter 2023 Results



AUDUBON, PA, August 3, 2023: Globus Medical, Inc. (NYSE: GMED), a leading musculoskeletal solutions company, today announced its financial results for the quarter ended June 30, 2023.



·

Worldwide net sales were $291.6 million, an increase of 10.6%

·

GAAP net income for the quarter was $57.7 million

·

GAAP diluted earnings per share (“EPS”) was $0.57 and non-GAAP diluted EPS was $0.63

·

Non-GAAP adjusted EBITDA was  $96.1 million, or 33.0% of net sales



“Globus achieved a record quarter, delivering our highest quarterly revenue yet of $292 million, an increase of 10.6% over the second quarter of 2022. Non-GAAP EPS was $0.63, an increase of 12.3%” said Dan Scavilla, President and CEO. “Our U.S. Spine business launched three innovative new products in the quarter, two of which are focused on the scoliosis market. The REFLECT™ Scoliosis Correction System was designed to correct progressive scoliosis in young patients while preserving motion and allowing for future modulated growth. REFLECT™ is the company’s first FDA Humanitarian Device Exemption (HDE) product launch. We also launched the MARVEL™ Growing Rod System, which is designed for pediatric patients with early onset scoliosis to obtain and maintain correction while allowing for growth through minimally invasive distraction. I would like to congratulate our talented Product Development team for bringing these two innovative products to market so we can help patients with spine disorders live more healthy lives.



Worldwide net sales for the second quarter of 2023 were $291.6 million, an as-reported increase of 10.6% over the second quarter of 2022.   U.S. net sales for the second quarter of 2023 increased by 9.0% compared to the second quarter of 2022. International net sales increased by 20.2% over the second quarter of 2022 on an as-reported basis, and an increase of 22.0% on a constant currency basis.



GAAP net income for the second quarter of 2023 was $57.7 million, an increase of 5.7% over the same period in the prior year. Diluted EPS for the second quarter was $0.57, compared to $0.53 for the second quarter of 2022.  Non-GAAP diluted EPS for the second quarter of 2023 was $0.63, compared to $0.56 in the second quarter of 2022 an increase of 12.3% driven primarily by higher net sales.

 

Net cash provided by operating activities was $35.0 million, and non-GAAP free cash flow was $17.2 million for the second quarter of 2023. The Company remains debt free.



2023 Annual Guidance



The Company today increased its full year 2023 net sales guidance to $1.125 billion, up from $1.100 billion, and reaffirmed non-GAAP diluted earnings per share of $2.30.


 

Conference Call Information



Globus Medical will hold a teleconference to discuss its second quarter 2023 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. 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 related costs/licensing, and acquisition of in-process research and development, 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.  Acquisition of in-process research and development represents the expensing of acquired assets with no alternative future use and related fees.



In addition, for the period ended June  30, 2023 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 related costs/licensing, acquisition of in-process research and development, and the tax effects of all of the foregoing adjustments.  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 litigation, amortization of intangibles, acquisition related costs/licensing, acquisition of in-process research and development, and the tax effects of all of the foregoing adjustments, which we believe are not reflective of underlying business trends.  Additionally, for the period ended June  30, 2023 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, 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, 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 occurrence of any change, event, series of events or circumstances that could give rise to the termination of the merger contemplated by the Agreement and Plan of Merger currently pending between Globus and NuVasive, Inc. (the “Merger Agreement”), including a termination of the Merger Agreement under circumstances that could require Globus to pay a termination fee to NuVasive or require NuVasive to pay a termination fee to Globus; the inability to complete the Merger due to the failure to satisfy any of the conditions to the completion of the Merger, including receipt of the necessary approval under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 (the “HSR Act”), in a timely manner or otherwise; any unexpected costs, liabilities or delays related to the NuVasive transaction; the respective businesses of Globus and NuVasive may suffer as a result of uncertainty surrounding the transaction; the effect of the announcement of the transaction on the ability of Globus or NuVasive to retain and hire key personnel and maintain relationships with customers, suppliers and others with whom Globus or NuVasive does business, or on Globus’ or NuVasive’s operating results and business generally; 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.


 

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)

 

2023

 

2022

 

2023

 

2022

Net sales

 

$

291,615 

 

$

263,648 

 

$

568,303 

 

$

494,197 

Cost of goods sold

 

 

76,473 

 

 

68,470 

 

 

147,298 

 

 

127,637 

Gross profit

 

 

215,142 

 

 

195,178 

 

 

421,005 

 

 

366,560 



 

 

 

 

 

 

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

Research and development

 

 

21,347 

 

 

17,395 

 

 

42,429 

 

 

34,807 

Selling, general and administrative

 

 

120,069 

 

 

106,718 

 

 

242,485 

 

 

207,466 

Provision for litigation, net

 

 

(2,740)

 

 

 —

 

 

(2,740)

 

 

2,341 

Amortization of intangibles

 

 

4,547 

 

 

4,393 

 

 

9,148 

 

 

8,905 

Acquisition related costs

 

 

5,707 

 

 

(1,104)

 

 

7,068 

 

 

(1,180)

Total operating expenses

 

 

148,930 

 

 

127,402 

 

 

298,390 

 

 

252,339 



 

 

 

 

 

 

 

 

 

 

 

 

Operating income/(loss)

 

 

66,212 

 

 

67,776 

 

 

122,615 

 

 

114,221 



 

 

 

 

 

 

 

 

 

 

 

 

Other income/(expense), net

 

 

 

 

 

 

 

 

 

 

 

 

Interest income/(expense), net

 

 

8,294 

 

 

2,476 

 

 

14,791 

 

 

5,019 

Foreign currency transaction gain/(loss)

 

 

(548)

 

 

(1,107)

 

 

(336)

 

 

(1,498)

Other income/(expense)

 

 

716 

 

 

1,395 

 

 

793 

 

 

1,696 

Total other income/(expense), net

 

 

8,462 

 

 

2,764 

 

 

15,248 

 

 

5,217 



 

 

 

 

 

 

 

 

 

 

 

 

Income/(loss) before income taxes

 

 

74,674 

 

 

70,540 

 

 

137,863 

 

 

119,438 

Income tax provision

 

 

16,962 

 

 

15,950 

 

 

31,022 

 

 

26,764 



 

 

 

 

 

 

 

 

 

 

 

 

Net income/(loss)

 

$

57,712 

 

$

54,590 

 

$

106,841 

 

$

92,674 



 

 

 

 

 

 

 

 

 

 

 

 

Other comprehensive income/(loss), net of tax:

 

 

 

 

 

 

 

 

 

 

 

 

Unrealized gain/(loss) on marketable securities

 

 

40 

 

 

(5,031)

 

 

4,338 

 

 

(13,859)

Foreign currency translation gain/(loss)

 

 

315 

 

 

(3,170)

 

 

1,225 

 

 

(4,737)

Total other comprehensive income/(loss), net of tax

 

 

355 

 

 

(8,201)

 

 

5,563 

 

 

(18,596)

Comprehensive income/(loss)

 

$

58,067 

 

$

46,389 

 

$

112,404 

 

$

74,078 



 

 

 

 

 

 

 

 

 

 

 

 

Earnings per share:

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

0.57 

 

$

0.54 

 

$

1.06 

 

$

0.92 

Diluted

 

$

0.57 

 

$

0.53 

 

$

1.05 

 

$

0.90 

Weighted average shares outstanding:

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

100,373 

 

 

100,671 

 

 

100,326 

 

 

101,136 

Diluted

 

 

101,782 

 

 

102,884 

 

 

101,989 

 

 

103,480 
























 

GLOBUS MEDICAL, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(unaudited)











 

 

 

 

 

 



 

 

 

 

 

 



 

June 30,

 

December 31,

(In thousands, except share and per share values)

 

2023

 

2022

ASSETS

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

Cash and cash equivalents

 

$

306,452 

 

$

150,466 

Short-term marketable securities

 

 

306,376 

 

 

295,592 

Accounts receivable, net of allowances of $6,245 and $4,724, respectively

 

 

240,184 

 

 

213,247 

Inventories

 

 

335,556 

 

 

298,981 

Prepaid expenses and other current assets

 

 

19,684 

 

 

20,997 

Income taxes receivable

 

 

1,758 

 

 

4,061 

Total current assets

 

 

1,210,010 

 

 

983,344 

Property and equipment, net of accumulated depreciation of $364,215 and $343,036, respectively

 

 

248,048 

 

 

243,729 

Long-term marketable securities

 

 

391,521 

 

 

495,852 

Intangible assets, net

 

 

54,901 

 

 

63,574 

Goodwill

 

 

198,932 

 

 

197,471 

Other assets

 

 

47,215 

 

 

43,311 

Deferred income taxes

 

 

61,838 

 

 

48,845 

Total assets

 

$

2,212,465 

 

$

2,076,126 



 

 

 

 

 

 

LIABILITIES AND EQUITY

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

Accounts payable

 

$

33,811 

 

$

36,101 

Accrued expenses

 

 

89,606 

 

 

94,705 

Income taxes payable

 

 

1,758 

 

 

990 

Business acquisition liabilities

 

 

13,595 

 

 

13,308 

Deferred revenue

 

 

14,945 

 

 

14,100 

Payable to broker

 

 

1,505 

 

 

 -

Total current liabilities

 

 

155,220 

 

 

159,204 

Business acquisition liabilities, net of current portion

 

 

52,455 

 

 

54,950 

Deferred income taxes

 

 

5,299 

 

 

1,779 

Other liabilities

 

 

14,426 

 

 

13,820 

Total liabilities

 

 

227,400 

 

 

229,753 

 

 

 

 

 

 

 

Equity:

 

 

 

 

 

 

Class A common stock; $0.001 par value.  Authorized 500,000,000 shares; issued and outstanding 78,013,122 and 77,762,282 shares at June 30, 2023 and December 31, 2022, respectively

 

 

78 

 

 

78 

Class B common stock; $0.001 par value.  Authorized 275,000,000 shares; issued and outstanding 22,430,097 and 22,430,097 shares at June 30, 2023 and December 31, 2022, respectively

 

 

22 

 

 

22 

Additional paid-in capital

 

 

657,240 

 

 

630,952 

Accumulated other comprehensive income/(loss)

 

 

(19,067)

 

 

(24,630)

Retained earnings

 

 

1,346,792 

 

 

1,239,951 

Total equity

 

 

1,985,065 

 

 

1,846,373 

Total liabilities and equity

 

$

2,212,465 

 

$

2,076,126 






 

GLOBUS MEDICAL, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(unaudited)









 

 

 

 

 

 



 

 

 

 

 

 



 

Six Months Ended



 

June 30,

(In thousands)

 

2023

 

2022

Cash flows from operating activities:

 

 

 

 

 

 

Net income

 

$

106,841 

 

$

92,674 

Adjustments to reconcile net income to net cash provided by operating activities:

 

 

 

 

 

 

Depreciation and amortization

 

 

36,183 

 

 

33,764 

Amortization of premium (discount) on marketable securities

 

 

786 

 

 

3,208 

Write-down for excess and obsolete inventories, net

 

 

3,972 

 

 

4,068 

Stock-based compensation expense

 

 

17,542 

 

 

15,989 

Allowance for doubtful accounts

 

 

1,863 

 

 

(528)

Change in fair value of business acquisition liabilities

 

 

3,280 

 

 

(1,390)

Change in deferred income taxes

 

 

(11,160)

 

 

(7,939)

(Gain)/loss on disposal of assets, net

 

 

129 

 

 

200 

Payment of business acquisition related liabilities

 

 

(1,490)

 

 

(1,099)

(Increase)/decrease in:

 

 

 

 

 

 

Accounts receivable

 

 

(28,237)

 

 

(30,224)

Inventories

 

 

(38,658)

 

 

(31,421)

Prepaid expenses and other assets

 

 

(2,100)

 

 

1,268 

Increase/(decrease) in:

 

 

 

 

 

 

Accounts payable

 

 

(2,769)

 

 

12,375 

Accrued expenses and other liabilities

 

 

(888)

 

 

(7,408)

Income taxes payable/receivable

 

 

3,047 

 

 

(1,964)

Net cash provided by/(used in) operating activities

 

 

88,341 

 

 

81,573 

Cash flows from investing activities:

 

 

 

 

 

 

Purchases of marketable securities

 

 

(81,381)

 

 

(179,096)

Maturities of marketable securities

 

 

159,328 

 

 

170,572 

Sales of marketable securities

 

 

21,788 

 

 

66,655 

Purchases of property and equipment

 

 

(33,859)

 

 

(43,724)

Acquisition of businesses, net of cash acquired and purchases of intangible and other assets

 

 

(2,662)

 

 

(1,175)

Net cash provided by/(used in) investing activities

 

 

63,214 

 

 

13,232 

Cash flows from financing activities:

 

 

 

 

 

 

Payment of business acquisition liabilities

 

 

(4,034)

 

 

(3,553)

Proceeds from exercise of stock options

 

 

8,058 

 

 

11,331 

Repurchase of common stock

 

 

 —

 

 

(144,493)

Net cash provided by/(used in) financing activities

 

 

4,024 

 

 

(136,715)

Effect of foreign exchange rates on cash

 

 

407 

 

 

(387)

Net increase/(decrease) in cash and cash equivalents

 

 

155,986 

 

 

(42,297)

Cash and cash equivalents at beginning of period

 

 

150,466 

 

 

193,069 

Cash and cash equivalents at end of period

 

$

306,452 

 

$

150,772 

Supplemental disclosures of cash flow information:

 

 

 

 

 

 

Income taxes paid

 

$

38,979 

 

$

36,696 

Purchases of property and equipment included in accounts payable and accrued expenses

 

$

5,366 

 

$

5,019 




 

Supplemental Financial Information



Net Sales by Product Category:











 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 



 

Three Months Ended

 

Six Months Ended



 

June 30,

 

June 30,

(In thousands)

 

2023

 

2022

 

2023

 

2022

Musculoskeletal Solutions

 

$

256,855 

 

$

234,242 

 

$

508,462 

 

$

451,644 

Enabling Technologies

 

 

34,760 

 

 

29,406 

 

 

59,841 

 

 

42,553 

Total net sales

 

$

291,615 

 

$

263,648 

 

$

568,303 

 

$

494,197 





Liquidity and Capital Resources:









 

 

 

 

 

 



 

 

 

 

 

 



 

June 30,

 

December 31,

(In thousands)

 

2023

 

2022

Cash and cash equivalents

 

$

306,452 

 

$

150,466 

Short-term marketable securities

 

 

306,376 

 

 

295,592 

Long-term marketable securities

 

 

391,521 

 

 

495,852 

Total cash, cash equivalents and marketable securities

 

$

1,004,349 

 

$

941,910 



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)

2023

 

2022

 

2023

 

2022

Net income/(loss)

$

57,712 

 

$

54,590 

 

$

106,841 

 

$

92,674 

Interest (income)/expense, net

 

(8,294)

 

 

(2,476)

 

 

(14,791)

 

 

(5,019)

Provision for income taxes

 

16,962 

 

 

15,950 

 

 

31,022 

 

 

26,764 

Depreciation and amortization

 

18,075 

 

 

16,927 

 

 

36,183 

 

 

33,764 

EBITDA

 

84,455 

 

 

84,991 

 

 

159,255 

 

 

148,183 

Stock-based compensation expense

 

8,589 

 

 

7,837 

 

 

17,542 

 

 

15,989 

Provision for litigation, net

 

(2,740)

 

 

 —

 

 

(2,740)

 

 

2,341 

Acquisition related costs/licensing

 

5,809 

 

 

(943)

 

 

7,184 

 

 

(286)

Adjusted EBITDA

$

96,113 

 

$

91,885 

 

$

181,241 

 

$

166,227 



 

 

 

 

 

 

 

 

 

 

 

Net income/(loss) as a percentage of net sales

 

19.8% 

 

 

20.7% 

 

 

18.8% 

 

 

18.8% 

Adjusted EBITDA as a percentage of net sales

 

33.0% 

 

 

34.9% 

 

 

31.9% 

 

 

33.6% 



Non-GAAP Net Income Reconciliation Table:











 

 

 

 

 

 

 

 

 

 

 



Three Months Ended

 

Six Months Ended



June 30,

 

June 30,

(In thousands)

2023

 

2022

 

2023

 

2022

Net income/(loss)

$

57,712 

 

$

54,590 

 

$

106,841 

 

$

92,674 

Provision for litigation, net

 

(2,740)

 

 

 —

 

 

(2,740)

 

 

2,341 

Amortization of intangibles

 

4,547 

 

 

4,393 

 

 

9,148 

 

 

8,905 

Acquisition related costs/licensing

 

5,809 

 

 

(943)

 

 

7,184 

 

 

(286)

Tax effect of adjusting items

 

(1,730)

 

 

(780)

 

 

(3,059)

 

 

(2,441)

Non-GAAP net income/(loss)

$

63,598 

 

$

57,260 

 

$

117,374 

 

$

101,192 




 

Non-GAAP Diluted Earnings Per Share Reconciliation Table:











 

 

 

 

 

 

 

 

 

 

 



Three Months Ended

 

Six Months Ended



June 30,

 

June 30,

(In thousands)

2023

 

2022

 

2023

 

2022

Diluted earnings per share, as reported

$

0.57 

 

$

0.53 

 

$

1.05 

 

$

0.90 

Provision for litigation, net

 

(0.03)

 

 

 —

 

 

(0.03)

 

 

0.02 

Amortization of intangibles

 

0.04 

 

 

0.05 

 

 

0.09 

 

 

0.09 

Acquisition related costs/licensing

 

0.06 

 

 

(0.01)

 

 

0.07 

 

 

(0.00)

Tax effect of adjusting items

 

(0.02)

 

 

0.00 

 

 

(0.03)

 

 

(0.02)

Non-GAAP diluted earnings per share

$

0.63 

 

$

0.56 

 

$

1.15 

 

$

0.98 



*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)

2023

 

2022

 

2023

 

2022

Net cash provided by operating activities

$

35,028 

 

$

36,883 

 

$

88,341 

 

$

81,573 

Purchases of property and equipment

 

(17,868)

 

 

(23,753)

 

 

(33,859)

 

 

(43,724)

Free cash flow

$

17,160 

 

$

13,130 

 

$

54,482 

 

$

37,849 



 

 

 

 

 

 

 

 

 

 

 



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)

 

2023

 

2022

 

Growth

 

Period Net Sales  

 

Growth

United States

 

$

245,490 

 

$

225,280 

 

9.0%

 

$

 —

 

9.0%

International

 

 

46,125 

 

 

38,368 

 

20.2%

 

 

(688)

 

22.0%

Total net sales

 

$

291,615 

 

$

263,648 

 

10.6%

 

$

(688)

 

10.9%

































 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

 



 

Six Months Ended

 

Reported

 

Currency
Impact on 

 

Constant
Currency



 

June 30,

 

Net Sales

 

Current

 

Net Sales

(In thousands, except percentages)

 

2023

 

2022

 

Growth

 

Period Net Sales  

 

Growth

United States

 

$

479,609 

 

$

421,683 

 

13.7%

 

$

 —

 

13.7%

International

 

 

88,694 

 

 

72,514 

 

22.3%

 

 

(3,036)

 

26.5%

Total net sales

 

$

568,303 

 

$

494,197 

 

15.0%

 

$

(3,036)

 

15.6%





Contact:

Brian Kearns

Senior Vice President, Business Development and Investor Relations

Phone: (610) 930-1800

Email: investors@globusmedical.com

www.globusmedical.com