Globus Medical 2013 Sales Rise 12.6 Percent If there is indeed a slowdown in the spinal fusion ma

Globus Medical 2013 Sales Rise 12.6 Percent
If there is indeed a slowdown in the spinal fusion market, Globus Medical Inc. certainly didn’t encounter it last year. The Audubon, Pa.-based company grew global sales by 14.6 percent in the fourth quarter of 2013 and 12.6 percent for the whole year.

Globus reported $115.2 million in sales for Q4 and $434.5 million in sales for 2013, according to the firm’s latest earnings report.

“2013 was an outstanding year for Globus Medical. Our full year adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) was 34.7 percent of sales; we launched 16 new products; and we completed the acquisition of Excelsius Surgical,” Chairman and CEO David Paul said. “This performance was the result of consistent, sustained execution of our strategy. I am very proud of the performance of our team in 2013 and continue to be confident in our ability to produce profitability.”

Net income for the year fell 7 percent to $68.6 million or $0.73 per diluted share while non-GAAP net income for 2013 jumped 15 percent to $84.4 million or $0.90 per diluted share. Net income remained flat in the fourth quarter at $21 million (compared with $20.8 million, or 22 cents per diluted share, for Q4 2012). Non-GAAP net income for the fourth quarter surged 15.3 percent to $24 million or 25 cents per diluted share.

“We performed extremely well in the fourth quarter,” President and Chief Operating Officer Dave Demski said. “Our international sales growth reaccelerated in the fourth quarter, achieving a growth rate of 28.7 percent. In the U.S., we finished a record sales force recruiting year, adding more net territories than at any time in our history. The launch of our CREO pedicle screw platform has been progressing well, and we are very encouraged by the reception this product is receiving from our customers.”

Non-GAAP adjusted EBITDA for the year and quarter ending Dec. 31, were 34.7 percent and 37.3 percent, respectively, of sales—solid increases compared with non-GAAP adjusted EBITDA of 35.4 percent and 34.6 percent of sales for the fourth quarter of 2012. The medical device excise tax reduced adjusted EBITDA margin by 1.6 percent for the year and fourth quarter of 2013.

Cash, cash equivalents and marketable securities ended the year at $275.5 million, increasing by $63.1 million during year. The company remains debt free.