Globus Medical, Inc. (GMED) has reported a 0.96 percent fall in profit for the quarter ended Sep. 30, 2016. The company has earned $26.23 million, or $0.27 a share in the quarter, compared with $26.48 million, or $0.28 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $27.83 million, or $0.29 a share compared with $27.67 million or $0.29 a share, a year ago.
Revenue during the quarter went down marginally by 0.98 percent to $135.65 million from $136.99 million in the previous year period. Gross margin for the quarter expanded 85 basis points over the previous year period to 76.81 percent. Total expenses were 72.24 percent of quarterly revenues, up from 70.31 percent for the same period last year. That has resulted in a contraction of 194 basis points in operating margin to 27.76 percent.
Operating income for the quarter was $37.65 million, compared with $40.68 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $50.14 million compared with $50.52 million in the prior year period. At the same time, adjusted EBITDA margin improved 9 basis points in the quarter to 36.96 percent from 36.88 percent in the last year period.
David Paul, Chairman and CEO said, "Third quarter sales were $135.7 million, a year-over-year decrease of 1%. Despite our increased spending in support of our pending robotics and trauma launches, our EBITDA margins remained stable with the prior year, at 37.0%. We also delivered non-GAAP EPS of $0.29, in line with the prior year."
Operating cash flow improves significantly
Globus Medical, Inc. has generated cash of $120 million from operating activities during the nine month period, up 54.09 percent or $42.12 million, when compared with the last year period.
The company has spent $93.14 million cash to meet investing activities during the nine month period as against cash outgo of $115.14 million in the last year period.
Cash flow from financing activities was $5.51 million for the nine month period, up 2.34 percent or $0.13 million, when compared with the last year period.
Cash and cash equivalents stood at $90.19 million as on Sep. 30, 2016, up 78.59 percent or $39.69 million from $50.50 million on Sep. 30, 2015.
Working capital remains almost stable
Working capital of Globus Medical, Inc. remained almost stable for the quarter at $412.40 million, when compared with the previous year period. Current ratio was at 7.27 as on Sep. 30, 2016, up from 5.36 on Sep. 30, 2015.
Cash conversion cycle (CCC) has decreased to 180 days for the quarter from 296 days for the last year period. Days sales outstanding went up to 59 days for the quarter compared with 56 days for the same period last year.
Days inventory outstanding has decreased to 169 days for the quarter compared with 289 days for the previous year period. At the same time, days payable outstanding went down to 47 days for the quarter from 48 for the same period last year.
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