AUDUBON, Pa., July 26, 2016 (GLOBE NEWSWIRE) -- Globus Medical, Inc. (NYSE:GMED), a leading musculoskeletal implant manufacturer, today announced its financial results for the second quarter ended June 30, 2016.
- Worldwide sales increased 2.9% as reported to $137.5 million, or 3.1% on a constant currency basis
- Second quarter net income increased 7.3% to $25.8 million, or 18.8% of sales
- Diluted earnings per share (EPS) increased 6.9% to $0.27
- Non-GAAP diluted EPS increased 10.6% to $0.29
- Non-GAAP Adjusted EBITDA (AEBITDA) was 36.5% of sales
- Company issues new 2016 guidance for sales of $575 million
David Paul, Chairman and CEO said, “Second quarter sales were $137.5 million, a year-over-year increase of approximately 3%. The Globus team essentially grew sales along with the overall spine market this quarter but leveraged that top line growth into non-GAAP EPS of $0.29, which was 10.6% higher than the same quarter last year. Our AEBITDA for the quarter was 36.5% of sales, compared to 35.0% in the second quarter of 2015, marking the eighth consecutive year of mid-thirties AEBITDA margin.
During the second quarter, we continued progress with product development, sales force expansion and made further progress integrating our two most recent acquisitions. We remain confident in our long term growth prospects and our ability to sustain our industry leading profitability by the continued execution of our strategy of introducing innovative products, expanding our U.S. and international sales footprint, and controlling our expenses.”
Second quarter sales in the U.S. grew by 2.7% over the second quarter of 2015. International sales increased by 5.7% over the second quarter of 2015 on an as reported basis and 8.1% on a constant currency basis.
Second quarter net income was $25.8 million, an increase of 7.3% over the same period last year. Diluted EPS for the second quarter was $0.27, as compared to $0.25 for the second quarter 2015. Non-GAAP diluted EPS for the second quarter was $0.29.
The company generated net cash provided by operating activities of $23.0 million and non-GAAP free cash flow of $13.0 million in the second quarter. Cash, cash equivalents and marketable securities ended the quarter at $390.1 million. The company remains debt free.
2016 and 2017 Annual Guidance
The company today issued new guidance for full year 2016 sales of approximately $575 million including $10M from the Alphatec International acquisition, and GAAP earnings per share of approximately $1.17. Guidance for non-GAAP diluted EPS, which excludes, among other things, acquisition related items as described below, remains unchanged at $1.20 per share. The company preliminarily projects 2017 full year sales of $640M including $40M from the acquisition and expects to provide guidance at the fourth quarter call.
