Globus Medical(US:GMED)2025-11-06 22:10Sales Performance - Total net sales for the three months ended September 30, 2025, were $769.0 million, an increase of $143.3 million or 22.9% compared to $625.7 million in the same period of 2024[159]. - Net sales in the United States increased by $121.8 million, or 24.6%, driven by Nevro sales of $83.3 million and Musculoskeletal Solutions and Neuromonitoring sales of $48.4 million[159]. - International net sales increased by $21.5 million, or 16.5%, primarily due to Nevro sales of $15.9 million and an increase in Musculoskeletal Solutions spine product sales of $6.0 million[160]. - Total net sales increased by $250.4 million, or 13.5%, to $2.1 billion for the nine months ended September 30, 2025, driven by a $224.1 million increase in U.S. sales[173]. - International net sales rose by $26.3 million, or 6.9%, for the nine months ended September 30, 2025, with significant contributions from the Europe and Middle East region[174]. Cost and Expenses - Cost of sales decreased by $18.0 million, or 6.6%, to $252.5 million, with the percentage of net sales dropping to 32.8% from 43.2%[162]. - Cost of sales decreased by $75.3 million, or 9.8%, to $696.7 million for the nine months ended September 30, 2025, resulting in a cost of sales percentage of 33.0%[175]. - Research and development expenses increased by $2.7 million, or 7.6%, to $38.1 million, representing 4.9% of net sales[163]. - Research and development expenses decreased by $19.3 million, or 14.8%, to $111.1 million for the nine months ended September 30, 2025, representing 5.3% of net sales[176]. - Selling, general and administrative expenses rose by $73.6 million, or 30.6%, to $313.6 million, accounting for 40.8% of net sales[164]. - Selling, general and administrative expenses increased by $131.8 million, or 18.1%, to $860.0 million for the nine months ended September 30, 2025, accounting for 40.7% of net sales[177]. - Acquisition-related costs surged by $18.9 million, or 151.3%, to $31.5 million for the nine months ended September 30, 2025, primarily due to costs associated with the Nevro Merger[179]. - Restructuring costs decreased by $9.9 million, or 41.5%, to $13.9 million for the nine months ended September 30, 2025, representing 0.7% of net sales[180]. Income and Tax - A bargain purchase gain of $3.8 million was recorded due to adjustments related to the Nevro Merger, representing 0.5% of net sales[168]. - The company reported a bargain purchase gain of $114.4 million for the nine months ended September 30, 2025, attributed to the Nevro Merger[181]. - The income tax provision increased by $19.8 million, or 381.7%, to $25.0 million for the three months ended September 30, 2025, with an effective tax rate of 17.4%[170]. Cash Flow and Financing - Net cash provided by operating activities for the nine months ended September 30, 2025, was $504.86 million, an increase of $194.56 million compared to $310.30 million in 2024[187]. - Cash used in investing activities increased by $171.64 million, primarily due to acquisition-related costs of $234.9 million[189]. - Net cash used in financing activities was $692.38 million, largely due to the repayment of senior convertible notes amounting to $450 million[190]. - The company reported a net income increase of $320.8 million, contributing to higher cash from operating activities[188]. - The effect of foreign exchange rate changes on cash was an increase of $18.41 million for the nine months ended September 30, 2025[187]. - The company experienced a decrease in cash and cash equivalents of $412.67 million for the nine months ended September 30, 2025[187]. - The company has no outstanding borrowings under the September 2023 Credit Agreement as of September 30, 2025[186]. - The company is subject to financial covenants, including a funded net indebtedness to adjusted EBITDA ratio[186]. Mergers and Acquisitions - The Nevro Merger was completed on April 3, 2025, with Nevro's common stock converted into cash at $5.85 per share[150]. - The company entered into a revolving credit facility of up to $400 million with a termination date of September 27, 2028[186]. - The company acquired additional obligations and commitments related to the NuVasive and Nevro mergers, including contingent consideration arrangements and senior convertible notes[192]. - International net sales accounted for approximately 19.4% of total net sales during the nine months ended September 30, 2025[155]. - The company plans to expand its U.S. sales force to strengthen its market position[154].