GlobeNewswire05.11.20
Globus Medical Inc. announced its financial results for the first quarter ended March 31, 2020.
“The COVID-19 pandemic presents one of the greatest healthcare challenges we have faced in recent history. We remain diligent in our commitment to protect the health of our people, support our surgeons and patients in need, and keep our company strong,” said Dave Demski, President and CEO. As we chart a course through this extraordinary and challenging time together, we have been heartened at every turn by the understanding, cooperation and support from so many people in the Globus Medical community. We are deeply thankful to our employees, their families, surgeons, suppliers and other parties for pulling together under such trying and fluid circumstances. Globus Medical continues to work closely with federal, state and local authorities to ensure alignment with their efforts.
“Our conservative financial philosophy has positioned us well to ride out this difficult time without having to reduce our commitment to any important long-term growth initiatives. We launched three new Spine products in the first quarter, and launched two additional innovative products in April. We are seeing great uptake from several products in our HEDRON line of 3D printed interbody spacers, the most comprehensive portfolio of 3D printed spacers in the industry. During the quarter, we also launched SABLE, our fourth-generation expandable MIS TLIF interbody spacer that was met with strong demand and great feedback. We look forward to bringing additional innovation to market in coming quarters as well,” said Demski.
Worldwide sales for the first quarter were $190.6 million, an increase of 4.2 percent over the first quarter of 2019 on an as-reported basis and 4.4 percent on a constant currency basis. We estimate the negative sales impact of COVID-19 to be approximately $20 million in the quarter. First quarter sales in the U.S., including robotics, increased by 7.4 percent compared to the first quarter of 2019. International sales decreased by 9.3 percent over the first quarter of 2019 on an as-reported basis and 8.3 percent on a constant currency basis.
First quarter GAAP net income was $25.9 million, a decrease of 21.9 percent over the same period last year. Diluted EPS for the first quarter was $0.25, as compared to $0.33 for the first quarter 2019. Non-GAAP diluted EPS for the first quarter was $0.29, compared to $0.36 in the first quarter of 2019, a decrease of 18.9 percent.
The Company generated net cash provided by operating activities of $42.3 million and non-GAAP free cash flow of $20.0 million in the first quarter, and ended the quarter with cash, cash equivalents and marketable securities of $657.0 million. The Company remains debt free.
On April 16, due to the rapidly evolving environment and continued uncertainties resulting from the COVID-19 pandemic, Globus Medical withdrew previously announced full year 2020 guidance. At this time, Globus Medical cannot predict the specific extent, or duration, of the impact of COVID-19 on its financial and operating results.
- Worldwide sales were $190.6 million, an increase of 4.2 percent as reported
- First quarter net income was $25.9 million
- Diluted earnings per share (EPS) was $0.25 and non-GAAP diluted EPS was $0.29
- Non-GAAP adjusted EBITDA was 26.5 percent of sales
“The COVID-19 pandemic presents one of the greatest healthcare challenges we have faced in recent history. We remain diligent in our commitment to protect the health of our people, support our surgeons and patients in need, and keep our company strong,” said Dave Demski, President and CEO. As we chart a course through this extraordinary and challenging time together, we have been heartened at every turn by the understanding, cooperation and support from so many people in the Globus Medical community. We are deeply thankful to our employees, their families, surgeons, suppliers and other parties for pulling together under such trying and fluid circumstances. Globus Medical continues to work closely with federal, state and local authorities to ensure alignment with their efforts.
“Our conservative financial philosophy has positioned us well to ride out this difficult time without having to reduce our commitment to any important long-term growth initiatives. We launched three new Spine products in the first quarter, and launched two additional innovative products in April. We are seeing great uptake from several products in our HEDRON line of 3D printed interbody spacers, the most comprehensive portfolio of 3D printed spacers in the industry. During the quarter, we also launched SABLE, our fourth-generation expandable MIS TLIF interbody spacer that was met with strong demand and great feedback. We look forward to bringing additional innovation to market in coming quarters as well,” said Demski.
Worldwide sales for the first quarter were $190.6 million, an increase of 4.2 percent over the first quarter of 2019 on an as-reported basis and 4.4 percent on a constant currency basis. We estimate the negative sales impact of COVID-19 to be approximately $20 million in the quarter. First quarter sales in the U.S., including robotics, increased by 7.4 percent compared to the first quarter of 2019. International sales decreased by 9.3 percent over the first quarter of 2019 on an as-reported basis and 8.3 percent on a constant currency basis.
First quarter GAAP net income was $25.9 million, a decrease of 21.9 percent over the same period last year. Diluted EPS for the first quarter was $0.25, as compared to $0.33 for the first quarter 2019. Non-GAAP diluted EPS for the first quarter was $0.29, compared to $0.36 in the first quarter of 2019, a decrease of 18.9 percent.
The Company generated net cash provided by operating activities of $42.3 million and non-GAAP free cash flow of $20.0 million in the first quarter, and ended the quarter with cash, cash equivalents and marketable securities of $657.0 million. The Company remains debt free.
On April 16, due to the rapidly evolving environment and continued uncertainties resulting from the COVID-19 pandemic, Globus Medical withdrew previously announced full year 2020 guidance. At this time, Globus Medical cannot predict the specific extent, or duration, of the impact of COVID-19 on its financial and operating results.