Q3 2024 Globus Medical Inc Earnings Call Transcript
Key Points
- Globus Medical Inc (GMED) reported a strong third quarter with sales of $626 million, marking a 63% increase year-over-year.
- The company achieved a record non-GAAP EPS of $0.83, a 45% increase despite a 20% increase in diluted shares.
- Record free cash flow of $162 million was reported, equivalent to the full year 2023 free cash flow.
- The company launched four new products in Q3, contributing to a total of 13 product launches year-to-date.
- International spinal implant business delivered record sales in Q3, growing 86% on a constant currency basis compared to the prior year.
- GAAP gross profit decreased to 53% from 62.2% in the prior year quarter, primarily due to step-up amortization from the NuVasive merger.
- The company is facing an FDA warning letter related to internal processes for handling complaints, which could impact customer perception.
- Net interest expense in Q3 was $0.8 million compared to net interest income of $7.8 million in the prior year, due to cash used for various financial activities.
- The company expects full year SG&A expenses to improve only 1 to 2 percentage points over the full year 2023 as a percentage of sales.
- There is a potential risk of dis-synergies, although the company has not specified the exact impact or timeline for resolution.
Welcome to Globus Medical's third-quarter 2024 earnings call. (Operator Instructions) I will now turn the call over to Brian Kearns, Senior Vice President of Business Development and Investor Relations. Mr. Kearns, please go ahead.
Thank you, Victor, and thank you, everyone, for being with us today. Joining today's call from Globus Medical will be Dan Scavilla, President and CEO; and Keith Pfeil, Chief Operating Officer and Chief Financial Officer. This review is being made available via webcast, accessible through the Investor Relations section of the Globus Medical website at www.globusmedical.com.
Before we begin, let me remind you that some of the statements made during this review are or may be considered forward-looking statements. Our Form 10-K for the 2023 fiscal year and our subsequent filings with the Securities and Exchange Commission identify certain factors that could cause our actual results to differ materially from
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