Merit Medical Systems, Inc. · NASDAQ:MMSI

Merit Medical Systems — Q3 2022 Earnings Presentation

20 slides from Merit Medical Systems's earnings presentation, Oct 26, 2022

1. Slide 1: Merit Medical Investor Call: Third Quarter 2022 Results

   1 Merit Medical Investor Call October 26, 2022 Third Quarter 2022 Results Fred Lampropoulos Chairman and CEO Raul Parra CFO

2. Slide 2: Cautionary Statement Regarding Forward-Looking Statements

   2 CAUTIONARY STATEMENTREGARDING FORWARD-LOOKING STATEMENTS Thispresentationandanyaccompanyingmanagementcommentaryinclude“forward-lookingstatements,”asdefinedwithinapplicablesecuritieslawsandregulations.Allstatementsinthis presentation,otherthanstatementsofhistoricalfact,are“forward-lookingstatements

3. Slide 3: Non-GAAP Financial Measures

   3 NON-GAAPFINANCIALMEASURES AlthoughMerit’sfinancialstatementsarepreparedinaccordancewithaccountingprinciplesgenerallyacceptedintheUnitedStatesof America(“GAAP”),Merit’smanagementbelievesthatcertainnon-GAAPfinancialmeasuresprovideinvestorswithusefulinformation regardingtheunderlyingbusinesstrendsand

4. Slide 4: Financial Summary GAAP

   4 Q3 2022Q3 2021YTD 2022YTD 2021 Revenue $287.2M$267.0M$857.6M$796.3M Gross Margin 44.8%45.1%44.8%44.8% Operating Margin 6.5%6.0%6.7%4.9% Net Income $15.3M$12.0M$41.1M$27.8M Earnings per Share $0.27$0.21$0.71$0.49 FinancialSummary GAAP 4

5. Slide 5: Financial Summary Non-GAAP

   5 Q3 2022Q3 2021YTD 2022YTD 2021 Revenue (constant currency, organic) † $295.2M$267.0M$873.3M$796.3M Gross Margin 48.4%49.1%48.5%49.0% Operating Margin 16.1%14.8%16.7%15.6% Net Income $37.0M$30.2M$109.7M$95.4M Earnings per Share $0.64$0.52$1.91$1.67 FinancialSummary Non-GAAP* 5 * See "Notes to Non-G

6. Slide 6: Revenue Breakdown – Q3

   6 RevenueBreakdown–Q3 RegionQ3 2022Q3 2021$ Change% ChangeCC % Change* U.S. $164,571$151,505$13,0668.6%6.6% APAC60,17556,9503,2255.7%13.7% EMEA52,06049,7332,3274.7%17.3% Rest of World10,3698,8331,53617.4%18.8% Total International 122,604115,5167,088 6.1%15.6% Total $287,175$267,021$20,1547.5%10.5% 6

7. Slide 7: Revenue Breakdown – YTD

   7 RevenueBreakdown–YTD RegionYTD 2022YTD 2021$ Change% ChangeCC % Change* U.S. $482,237$451,648$30,5896.8%5.4% APAC182,656169,61813,0387.7%12.3% EMEA160,743152,0688,6755.7%15.0% Rest of World31,93022,9259,00539.3%38.6% Total International 375,329344,61130,718 8.9%15.2% Total $857,566$796,259$61,3077

8. Slide 8: Financial Metrics

   8 FinancialMetrics MetricQ3 2022Q3 2021YTD 2022YTD 2021 Depreciation & Amortization$20.4M$20.8M$61.3M$63.2M Stock Comp (performance-based)1.4M1.6M4.4M4.0M Stock Comp (not performance-based)3.2M3.2M9.3M7.6M Operating Cash Flow35.5M25.0M86.3M101.4M Capital Expenditures-Property and Equipment15.8M6.8M3

9. Slide 9: Updated 2022 Financial Guidance

   9 * See "Notes to Non-GAAP Financial Measures" below for additional information regarding non-GAAP measures used in this presentation. Merit’s financial guidance for theyear ending December31, 2022,is subject to risks and uncertainties identified in this presentation and in Merit’s filings with the

10. Slide 10: Appendix

    10 Appendix 10

11. Slide 11: Notes to Non-GAAP Financial Measures

    11 NotestoNon-GAAPFinancialMeasures Foradditionaldetails,pleaseseetheaccompanyingpressreleaseandforward-lookingstatementdisclosure. ThesepresentationmaterialsandassociatedcommentaryfromMerit’smanagement,aswellasthepressreleaseissuedtoday,usenon-GAAPfinancialmeasures,including: •constantcurrencyreven

12. Slide 12: Notes to Non-GAAP Financial Measures (cont.)

    12 NotestoNon-GAAPFinancialMeasures(cont.) ConstantCurrencyRevenue Merit’sconstantcurrencyrevenueispreparedbyconvertingthecurrent-periodreportedrevenueofsubsidiarieswhosefunctionalcurrencyisacurrencyotherthantheU.S.dollarat theapplicableforeignexchangeratesineffectduringthecomparableprior-yearperiod

13. Slide 13: Notes to Non-GAAP Financial Measures (cont.)

    13 NotestoNon-GAAPFinancialMeasures(cont.) Non-GAAPNetIncome Non-GAAPnetincomeiscalculatedbyadjustingGAAPnetincomefortheitemssetforthinthedefinitionofnon-GAAPoperatingincomeabove,aswellasforexpensesrelatedto debtissuancecosts,gainsorlossesondisposalofcertainassets,changesintaxregulations,aswellasoth

14. Slide 14: Reconciliation of GAAP Net Income to Non-GAAP Net Income

    14 ReconciliationofGAAPNetIncometoNon-GAAPNetIncome (Unaudited;inthousandsexceptpershareamounts) Note: Certain per share impacts may not sum to totals due to rounding. GAAP net income$17,602 $(2,330) $15,272 $0.27 $14,177 $(2,210) $11,967 $0.21 Non-GAAP adjustments: Cost of Sales Amortization of int

15. Slide 15: Reconciliation of GAAP Net Income to Non-GAAP Net Income

    15 ReconciliationofGAAPNetIncometoNon-GAAPNetIncome (Unaudited;inthousandsexceptpershareamounts) Note: Certain per share impacts may not sum to totals due to rounding. GAAP net income $ 52,474 $ (11,359) $ 41,115 $ 0.71 $ 33,736 $ (5,895) $ 27,841 $ 0.49 Non-GAAP adjustments: Cost of Sales Amortizat

16. Slide 16: Reconciliation of GAAP Operating Income to Non-GAAP Operating Income

    16 ReconciliationofGAAPOperatingIncometoNon-GAAPOperatingIncome (Unaudited;inthousandsexceptpercentages) Note: Certain percentages may not sum to totals due to rounding. Net Sales as Reported $287,175 $267,021 $857,566 $796,259 GAAP Operating Income 18,657 6.5 %15,931 6.0 %57,146 6.7 %39,020 4.9 % C

17. Slide 17: Footnotes to Reconciliations of GAAP Net Income and Operating Income

    17 Footnotes to Reconciliations of GAAP Net Income to Non-GAAP Net Income and GAAP Operating Income to Non-GAAP Operating Income a)Representsthewrite-offofinventoryrelatedtothedivestitureorexitofcertainbusinessesorproductlines. b)Representsperformance-basedshare-basedcompensationexpense,includingsto

18. Slide 18: Reconciliation of Reported Revenue to Constant Currency Revenue

    18 Reconciliation of Reported Revenue to Constant Currency Revenue (Non-GAAP), and Constant Currency Revenue, Organic (Non-GAAP) (Unaudited; in thousands except percentages) (a) A non-GAAP financial measure. For a definition of this and other non-GAAP financial measures, see the section of this pres

19. Slide 19: Reconciliation of GAAP Gross Margin to Non-GAAP Gross Margin

    19 ReconciliationofGAAPGrossMargintoNon-GAAPGrossMargin (Unaudited;asapercentageofreportedrevenue) Note: Certain percentages may not sum to totals due to rounding. a) Represents the write-off of inventory related to the divestiture or exit of certain businesses or product lines. Three Months Ended N

20. Slide 20: Slide 20

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