First-Quarter Sales, Profits Rise at Globus Medical

The robotic surgery market apparently agrees with Globus Medical Inc.

The Audubon, Pa.-based musculoskeletal implant manufacturer experienced a strong first quarter, during which the company notched the acquisition of Excelsius Surgical. Profits jumped 6.3 percent to $21.1 million, or 22 cents per diluted share, on sales of $114.2 million during the three months ended March 31. That compared with profits of $19.9 million, or 21 cents per share on sales of $105 million during the same time last year.

Excluding special charges, adjusted earnings amounted to 24 cents per share, beating analysts consensus estimates by 2 cents.

“We are pleased with our results this quarter, having executed well on both the top and bottom lines while delivering strong cash flow. With the launch of five new products this quarter we have the momentum to maintain and expand our industry leading product portfolio,” Chairman/CEO David Paul said. “We also demonstrated additional operating leverage with an Adjusted EBITDA margin of 36.8 percent, a 300 basis point improvement over last year, demonstrating our continued ability to increase operating leverage in our business.”

First quarter net sales were $114.2 million, an 8.8 percent increase compared with $105 million last year. U.S. sales grew 5.6 percent over the first quarter of 2013 while international sales, representing 10.9 percent of total proceeds, skyrocketed 43 percent.

Cash, cash equivalents and marketable securities ended the quarter at $305.0 million, increasing by $29.5 million during the quarter. The company remains debt free.

The quarter was an important one for Globus, marking the company’s entry into robot-assisted surgery. The company closed the stealthy acquisition of Excelsius Surgical and its robotic positioning platform for spine and brain procedures.

The Excelsius system is designed to integrate intra-operative digital imaging with a robotic surgery device to hold patients in place during surgeries “with sub-millimeter accuracy.” Globus has said it expects the Excelsius system to win U.S. Food and Drug Administration clearance next year, with commercialization to follow in 2016.