Globus Medical, Inc. (NYSE:GMED) Q1 2018 Earnings Conference Call Transcript

May 02, 2018 • 04:30 pm ET

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Globus Medical, Inc. (NYSE:GMED) Q1 2018 Earnings Conference Call Transcript

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Presentation
Operator
Operator

Hello and welcome to the Globus Medical's First Quarter 2018 Earnings Call. My name is Monique, and I'll be your event specialist today. All lines have been placed on mute to prevent any background noise. And please note that today's earning call is being recorded. This earnings call may also be accessed going to Globus Medical's Investor Relations website under the Events section and clicking on the Live Webcast button. It is now my pleasure to turn today's program over to Brian Kearns, Vice President for Business Development and Investor Relations. Mr. Kearns, you may begin.

Executive
Brian Kearns

Thank you Monique and thank you everyone for being with us today. Joining today's call from Globus Medical will be Dave Demski, CEO; Dan Scavilla, Senior Vice President and CFO; Anthony Williams, President; and David Paul, Executive Chairman. 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-Q for the 2018 first quarter, and our subsequent filings with the Securities and Exchange Commission identify certain factors that could cause our actual results to differ materially from those projected in any forward-looking statements made today.

Our SEC filings, including the 10-Q, are available on our website. We do not undertake to update any forward-looking statements as a result of new information or future events or developments. Our discussion today will also include certain financial measures that are not calculated in accordance with generally accepted accounting principles or GAAP. We believe these non-GAAP financial measures provide additional information pertinent to our business performance. These non-GAAP financial measures should not be considered replacements for, and should be read together with the most directly comparable GAAP financial measures. Reconciliations to the most directly comparable GAAP measures are available in the schedules accompanying the press release, and on the Investor Relations section of the Globus Medical website.

With that, I'll now turn the call over to Dave Demski, our CEO.

Executive
David M. Demski

Thank you, Brian and good afternoon everyone. The Globus team delivered another exceptional performance in the first quarter of 2018. Worldwide revenue for the quarter was $174 million, an increase of 11.9% over Q1 '17. Non-GAAP EPS for the first quarter was $0.41 per share, an increase of 31% over last year. We achieved above-market growth rates in all parts of our business. Adjusting for the one fewer selling day in Q1 '18, U.S. Spine revenues were up 4%, International revenues were up 12.6% and Emerging Technologies contributed $12.8 million in the quarter. We continue to build momentum in our U.S. business, led by growth in CREO, CREO MIS, Biologics, and expandable technology. We have a strong lineup of systems we expect to launch in the back half of 2018, including several enhancements to our CREO platform, 3D-printed antibody devices, and our next generation expandable TLIF spacer.

We hired several high-quality competitive reps