AUDUBON, PA — Globus Medical, Inc. (NYSE: GMED), a leader in musculoskeletal solutions, announced a significant increase in worldwide net sales for the quarter ended March 31, 2024, highlighting the initial success following its merger with NuVasive. The company’s sales surged to $606.7 million, marking a 119.3% increase from the previous year, with growth attributed to expanded product offerings and enhanced market reach.
Despite this revenue leap, Globus Medical reported a GAAP net loss of $7.1 million for the quarter, contrasting with its performance a year ago. This loss, amounting to a diluted earnings per share (EPS) of ($0.05), primarily stemmed from amortization and restructuring costs related to the recent merger. However, when adjusting for these and other select costs, the non-GAAP diluted EPS stood at $0.72, up 36.4% from the first quarter of 2023, showcasing the underlying financial health and operational efficiency of the company.
Dan Scavilla, President and CEO of Globus Medical, attributed the robust sales performance to the firm’s strategic integration efforts post-merger, emphasizing the positive reception from surgeons and hospitals to their advanced medical devices and technologies. The merger’s success is seen as a key driver in reinforcing Globus Medical’s vision to be the world’s most innovative musculoskeletal technology company.
Keith Pfeil, COO-CFO, noted the focus on salesforce retention, process standardization, and operating efficiencies as instrumental in realizing cost synergies and advancing the company’s long-term objectives. With nearly nine months into the combined operations, Globus Medical is optimistic about its trajectory and commitment to redefining surgical procedures through innovative solutions.
The increase in U.S. net sales by 106.3% and international sales by up to 194.1% on a constant currency basis, particularly highlights the global demand for the company’s spine products and enabling technology. This surge in sales reflects not only the successful integration of NuVasive’s offerings but also the growing market confidence in Globus Medical’s expanded capabilities.
Despite the quarterly net loss, the financial results suggest a promising outlook for Globus Medical as it navigates post-merger integration challenges. The company’s ability to generate substantial operating cash flow and maintain a positive non-GAAP free cash flow indicates solid operational strengths that could support sustained growth and profitability in the future. Globus Medical’s strategic focus and financial resilience position it well to capitalize on emerging opportunities in the rapidly evolving healthcare sector, promising enhanced patient care and shareholder value.
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