AUDUBON, PA — Globus Medical, Inc. (NYSE: GMED), a pioneer in the medical technology sector, recently released its financial results for the fourth quarter and the full fiscal year of 2023. Brimming with prosperity, 2023 was a pivotal year for Globus, marked by robust growth in net sales and a historical merger with NuVasive, Inc.
Net sales skyrocketed to $616.5 million in the fourth quarter, a staggering increase of 124.6%. Their year-end worldwide net sales also demonstrated significant advance, reaching $1.568.5 billion, a 53.3% rise on both a nominal and constant currency basis. These figures reflect impressive growth in both the domestic and international markets.
Globus reported a GAAP net income of $15.0 million for the fourth quarter and a considerable $122.9 million for the whole year. GAAP diluted earnings per share (EPS) were valued at $0.11 for the quarter and $1.07 for the year. Notably, the non-GAAP adjusted income before interest, tax, depreciation, and amortization (EBITDA) amounted to $170.0 million in Q4, representing 27.6% of net sales.
The merger with NuVasive, completed on September 1, 2023, has been a transformative milestone for Globus. The integration is advancing on schedule, reflecting the firm’s commitment to a smooth navigation and operational efficiency.
“Our merger with NuVasive has set the cornerstone for our vision of offering the best innovative technology and superior customer service for our surgeons and their patients,” said Dan Scavilla, CEO of Globus. The executive also spoke with anticipation about the firm’s upcoming product releases and its commitment to innovation and customer service.
Reflecting on the financial highlights of the year, Keith Pfeil, COO-CFO of Globus, emphasized the record-setting worldwide sales of Q4 and the full year. Excluding the impact of the NuVasive integration, Globus’ legacy fourth quarter revenue was $304.1 million, an uptick of 10.8% from Q4 2022, and their full year revenue was $1.154 billion, up by 12.8% from the previous year. The executive also highlighted the company’s continuing focus on the successful completion of the merger.
GAAP net income for Q4 did experience a temporary dip of 70.0% due to the inclusion of NuVasive results and acquisition-related expenses incurred since the merger’s closing date. However, non-GAAP net income for Q4 saw an uptick of 38.9%, primarily attributable to the contributions from the NuVasive merger.
On the liquidity front, net cash provided by operating activities totaled a hefty $258.9 million, while non-GAAP free cash flow hit $178.9 million for the full year of 2023.
As Globus moves into 2024, the company remains optimistic, announcing a revenue guidance range of $2.450 billion to $2.475 billion and fully diluted non-GAAP EPS between $2.68 to $2.70. The company, fortified by the successful NuVasive merger, is more than prepared to continue making waves in the medical technology sector.
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