Globus Medical, Inc. (GMED) has reported 2.51 percent rise in profit for the quarter ended Mar. 31, 2017. The company has earned $28.71 million, or $0.30 a share in the quarter, compared with $28.01 million, or $0.29 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $30.66 million, or $0.32 a share compared with $28.69 million or $0.30 a share, a year ago.

Revenue during the quarter grew 11.88 percent to $155.81 million from $139.26 million in the previous year period. Gross margin for the quarter contracted 22 basis points over the previous year period to 77.15 percent. Total expenses were 74.13 percent of quarterly revenues, up from 69.23 percent for the same period last year. That has resulted in a contraction of 490 basis points in operating margin to 25.87 percent.

Operating income for the quarter was $40.31 million, compared with $42.85 million in the previous year period.

However, the adjusted EBITDA for the quarter stood at $57.81 million compared with $53.24 million in the prior year period. At the same time, adjusted EBITDA margin contracted 112 basis points in the quarter to 37.11 percent from 38.23 percent in the last year period.

David Paul, chairman and chief executive officer said, "We are very pleased with our performance during the first quarter. We launched three new spine products, received our first trauma 510(k) clearance, had a strong competitive rep hiring quarter, further expanded our in-house manufacturing capacity, and continued to run an extremely efficient organization with best in class adjusted EBITDA margins. We remain confident in our long-term growth prospects and our ability to sustain industry-leading profitability by continuing to execute on our strategy of rapid product introduction, expansion of our U.S. and international sales footprints, and diligent expense control."

For fiscal year 2017, Globus Medical forecasts revenue to be $625 million. The company projects diluted earnings per share to be $1.27 on adjusted basis.

The company has spent $0.96 million cash to meet investing activities during the quarter as against cash outgo of $36.12 million in the last year period.

The company has spent $3.01 million cash to carry out financing activities during the quarter as against cash inflow of $1.60 million in the last year period.

Cash and cash equivalents stood at $182.44 million as on Mar. 31, 2017, up 124.47 percent or $101.16 million from $81.28 million on Mar. 31, 2016.

Working capital increases
Globus Medical, Inc. has recorded an increase in the working capital over the last year. It stood at $465.53 million as at Mar. 31, 2017, up 5.05 percent or $22.37 million from $443.16 million on Mar. 31, 2016. Current ratio was at 7.18 as on Mar. 31, 2017, up from 7.13 on Mar. 31, 2016.

Cash conversion cycle (CCC) has decreased to 153 days for the quarter from 316 days for the last year period. Days sales outstanding were almost stable at 52 days for the quarter, when compared with the last year period.

Days inventory outstanding has decreased to 143 days for the quarter compared with 304 days for the previous year period. At the same time, days payable outstanding went up to 42 days for the quarter from 41 for the same period last year.