Merit Medical Systems, Inc. · NASDAQ:MMSI
Merit Medical Systems — Q3 2024 Earnings Presentation
20 slides from Merit Medical Systems's earnings presentation, Oct 30, 2024
Slide 1: Third Quarter 2024 Results
Third Quarter 2024 Results Merit Medical Investor Call October 30, 2024 Fred Lampropoulos Chairman and CEO Raul Parra CFO 1
Slide 2: Cautionary Statement Regarding Forward-Looking Statements
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS This presentation and any accompanying management commentary contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended.
Slide 3: Non-GAAP Financial Measures
NON-GAAP FINANCIAL MEASURES Although Merit’s financial statements are prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”), Merit’s management believes that certain non-GAAP financial measures provide investors with useful information regardin
Slide 4: Financial Summary: GAAP
Financial Summary: GAAP In millions, except per share amounts and percentages Q3 2024 Q3 2023 % Change YTD 2024 YTD 2023 % Change Revenue $339.8M $315.2M 7.8% $1,001.4M $932.9M 7.3% Gross Margin 46.4% 45.1% 2.8% 47.0% 46.5% 1.1% Operating Margin 11.0% 11.1% (1.6)% 11.9% 9.7% 22.9% Net Income $28.4M
Slide 5: Financial Summary: Non-GAAP
Financial Summary: Non-GAAP* In millions, except per share amounts and percentages Q3 2024 Q3 2023 % Change YTD 2024 YTD 2023 % Change Revenue $333.3M† $315.2M 5.7% $988.0M† $932.9M 5.9% Gross Margin 50.9% 49.8% 2.2% 51.1% 50.4% 1.3% Operating Margin 19.2% 17.4% 10.1% 18.8% 17.4% 7.9% Net Income $51
Slide 6: Revenue Breakdown – Q3
Revenue Breakdown – Q3 In thousands, except percentages Region Q3 2024 Q3 2023 $ Change % Change CC % Change* U.S. $206,492 $187,505 $18,987 10.1% 10.2% APAC 60,382 59,831 551 0.9% 0.6% EMEA 58,474 55,206 3,268 5.9% 4.8% Rest of World 14,497 12,688 1,809 14.3% 21.8% Total International 133,353 127,7
Slide 7: Revenue Breakdown - YTD
Revenue Breakdown - YTD In thousands, except percentages Region YTD 2024 YTD 2023 $ Change % Change CC % Change* U.S. $587,250 $538,447 $48,803 9.1% 9.3% APAC 190,053 186,081 3,972 2.1% 4.7% EMEA 181,802 172,882 8,920 5.2% 4.2% Rest of World 42,251 35,441 6,810 19.2% 21.0% Total International 414,10
Slide 8: Financial Metrics
Financial Metrics In millions Metric Q3 2024 Q3 2023 YTD 2024 YTD 2023 Depreciation & Amortization $26.4M $24.0M $74.1M $66.4M Stock Comp (performance-based) 3.7M 2.4M 9.4M 6.1M Stock Comp (not performance-based) 3.1M 3.4M 9.6M 9.2M Operating Cash Flow 47.3M 51.1M 152.1M 82.9M Capital Expenditures-P
Slide 9: Updated 2024 Financial Guidance
Updated 2024 Financial Guidance Updated Guidance (1) Prior Guidance (2) Financial Measure Year Ending % Change Year Ending % Change December 31, 2024 Y/Y December 31, 2024 Y/Y Net S ales $1.344 - $1.352 billion 6.9% - 7.6% $1.339 - $1.351 billion 6.5% - 7.5% Cardiovascular Segment $1.289 - $1.296 bi
Slide 10: Appendix
Appendix 10
Slide 11: Notes to Non-GAAP Financial Measures
Notes to Non-GAAP Financial Measures For additional details, please see the accompanying press release and forward-looking statement disclosure. These presentation materials and associated commentary from Merit’s management, as well as the press release issued today, use non-GAAP financial measures,
Slide 12: Notes to Non-GAAP Financial Measures (cont.)
Notes to Non-GAAP Financial Measures (cont.) Constant Currency Revenue Merit’s constant currency revenue is prepared by converting the current-period reported revenue of subsidiaries whose functional currency is a currency other than the U.S. dollar at the applicable foreign exchange rates in effect
Slide 13: Notes to Non-GAAP Financial Measures (cont.)
Notes to Non-GAAP Financial Measures (cont.) Non-GAAP Net Income Non-GAAP net income is calculated by adjusting GAAP net income for the items set forth in the definition of non-GAAP operating income above, as well as for expenses related to debt issuance costs and other items set forth in the tables
Slide 14: Reconciliation of GAAP Net Income to Non-GAAP Net Income
Reconciliation of GAAP Net Income to Non-GAAP Net Income (Unaudited; in thousands except per share amounts) Three M onths Ended Three M onths Ended September 30, 2024 September 30, 2023 (a) Pre-Tax Tax Impact After-Tax Per Share Impact Pre-Tax Tax Impact After-Tax Per Share Impact GAAP net income $
Slide 15: Reconciliation of GAAP Net Income to Non-GAAP Net Income
Reconciliation of GAAP Net Income to Non-GAAP Net Income (Unaudited; in thousands except per share amounts) Nine M onths Ended Nine M onths Ended September 30, 2024 (a) September 30, 2023 (a) Pre-Tax Tax Impact After-Tax Per Share Impact Pre-Tax Tax Impact After-Tax Per Share Impact GAAP net income
Slide 16: Reconciliation of GAAP Operating Income to Non-GAAP Operating Income
Reconciliation of GAAP Operating Income to Non-GAAP Operating Income (Unaudited; in thousands except percentages) Three M onths Ended Three M onths Ended Nine M onths Ended Nine M onths Ended September 30, 2024 September 30, 2023 (a) September 30, 2024 (a) September 30, 2023 (a) Amounts % Sales Amou
Slide 17: Footnotes to Reconciliations of GAAP Net Income and Operating Income
Footnotes to Reconciliations of GAAP Net Income to Non-GAAP Net Income and GAAP Operating Income to Non-GAAP Operating Income a) Beginning in the second quarter of 2024, consulting expenses associated with initiatives conducted under our Foundations for Growth Program (“FFG Program”) are not adjuste
Slide 18: Reconciliation of Reported Revenue to Constant Currency Revenue
Reconciliation of Reported Revenue to Constant Currency Revenue (Non-GAAP), and Constant Currency Revenue, Organic (Non-GAAP) (Unaudited; in thousands except percentages) T hree Months Ended Nine Months Ended September 30, September 30, % Change 2024 2023 % Change 2024 2023 Reported Revenue 7.8 % $
Slide 19: Reconciliation of GAAP Gross Margin to Non-GAAP Gross Margin
Reconciliation of GAAP Gross Margin to Non-GAAP Gross Margin (Unaudited; as a percentage of reported revenue) T hree Months Ended Nine Months Ended September 30, September 30, 2024 2023 2024 2023 Reported Gross Margin 46.4 % 45.1 % 47.0 % 46.5 % Add back impact of: Amortization of intangibles 4.4 %
Slide 20: Slide 20
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