Masimo Corporation · NASDAQ:MASI
Masimo — Q1 2020 Earnings Presentation
17 slides from Masimo's earnings presentation, Apr 28, 2020
Slide 1: First Quarter 2020 Earnings Presentation
First Quarter 2020 Improving Patient Outcomes Earnings Presentation | April 28, 2020 Reducing the Cost of Care®
Slide 2: Forward-Looking Statements
FORWARD-LOOKING STATEMENTS These presentations contain forward-looking statements within the meaning of federal securities laws, including, among others, statements about our expectations, plans, strategies or prospects. We generally use the words “may,” “will,” “expect,” “believe,” “anticipate,” “p
Slide 3: Non-GAAP Financial Measures
NON-GAAP FINANCIAL MEASURES The non-GAAP financial measures contained herein are a supplement to the corresponding financial measures prepared in accordance with U.S. GAAP. The non-GAAP financial measures presented exclude certain items that are more fully described in the Appendix. Management belie
Slide 4: First Quarter 2020 Highlights
First Quarter 2020 Highlights Total revenue, including royalty and other revenue, increased 16.4% to $269.6 million Revenue Product revenue increased 16.9% to $269.6 million, or 17.5% on a constant currency basis(1) Shipments Shipments of noninvasive technology boards and monitors were 72,100
Slide 5: First Quarter 2020 Results – GAAP
First Quarter 2020 Results – GAAP(1) (in millions; except % and EPS) Q1 2020 Q1 2019 vs. Prior Year Comments Increased demand for our products from both direct and OEM customers, which has Revenue $269.6 $231.7 16.4% continued into the first month of the second quarter. Gross margin improvement due
Slide 6: First Quarter 2020 Results – Non-GAAP
First Quarter 2020 Results – Non-GAAP(1) vs. Prior Year Constant (in millions; except % and EPS) Q1 2020 Q1 2019 Reported Comments Currency Increased demand for our products from both direct and OEM Revenue $269.6 $230.5 16.9% 17.5% customers, which has continued into the first month of the second q
Slide 7: First Quarter 2020 Results – Non-GAAP
First Quarter 2020 Results – Non-GAAP(1) Non-GAAP(1) Non-GAAP(1) Product Revenue Operating Margin EPS $270M 26.3% $0.97 24.0% $231M $0.79 Constant Currency +17.5% Growth(1) +230 bps +22.8% Q1 2019 Q1 2020 Q1 2019 Q1 2020 Q1 2019 Q1 2020 (1) Non-GAAP measures shown have been adjusted for certain item
Slide 8: Context for 2020 Outlook
Context for 2020 Outlook • Given the uncertainties around the COVID-19 pandemic and its potential impacts on our business, we are no longer offering guidance for 2020. • The potential positive impacts include increased demand for our products from both direct and OEM customers. • The potential negat
Slide 9: Appendices: GAAP to Non-GAAP Adjustments and Reconciliations
APPENDICES Improving Patient Outcomes GAAP to Non-GAAP Reducing the Cost of Care® Adjustments and Reconciliations
Slide 10: Description of Non-GAAP Adjustments
Description of Non-GAAP Adjustments The non-GAAP financial measures reflect adjustments for the following items, as well as the related income tax effects thereof: Constant currency adjustments Some of our sales agreements with foreign customers provide for payment in currencies other than the U.S.
Slide 11: Description of Non-GAAP Adjustments
Description of Non-GAAP Adjustments Realized and unrealized gains or losses from foreign currency transactions: We are exposed to foreign currency gains or losses on outstanding foreign currency denominated receivables and payables related to certain customer sales agreements, product costs and othe
Slide 12: Constant Currency Product Revenue
Constant Currency Product Revenue(1),(2) RECONCILIATION OF GAAP PRODUCT REVENUE GROWTH TO CONSTANT CURRENCY PRODUCT REVENUE GROWTH (in thousands, except percentages) Q1 2019 Q1 2020 GAAP product revenue $ 230,548 $ 269,625 Constant currency F/X adjustments 1,247 Constant currency (non-GAAP) product
Slide 13: Non-GAAP Gross Margin %
Non-GAAP Gross Margin %(1),(2) RECONCILIATION OF GAAP GROSS PROFIT/MARGIN TO NON-GAAP GROSS PROFIT/MARGIN: (in thousands, except percentages) Q1 2019 Q1 2020 GAAP gross profit/margin $ 151,642 $ 185,629 Non-GAAP adjustments: Royalty and other revenue, net of related costs (1,048) - Acquisition & inv
Slide 14: Non-GAAP Operating Expense %
Non-GAAP Operating Expense %(1),(2) RECONCILIATION OF GAAP OPERATING EXPENSES TO NON-GAAP OPERATING EXPENSES: (in thousands, except percentages) Q1 2019 Q1 2020 GAAP selling, general and administrative operating expenses $ 74,204 $ 89,877 Non-GAAP adjustments: Acquisition & investment related costs
Slide 15: Non-GAAP Operating Margin %
Non-GAAP Operating Margin %(1),(2) RECONCILIATION OF GAAP OPERATING INCOME/MARGIN TO NON-GAAP OPERATING INCOME/MARGIN: (in thousands, except percentages) Q1 2019 Q1 2020 GAAP operating income/margin $ 56,023 $ 69,010 Non-GAAP adjustments: Royalty and other revenue, net of related costs (1,048) - Acq
Slide 16: Non-GAAP Net Income and Diluted EPS
Non-GAAP Net Income and Diluted EPS(1),(2) RECONCILIATION OF GAAP NET INCOME TO NON-GAAP NET INCOME: (in thousands, except percentages) Q1 2019 Q1 2020 GAAP net income $ 49,322 $ 64,456 Non-GAAP adjustments: Royalty and other revenue, net of related costs (1,048) - Acquisition & investment related c
Slide 17: Adjusted Free Cash Flow
Adjusted Free Cash Flow(1),(2) RECONCILIATION OF FREE CASH FLOW TO ADJUSTED FREE CASH FLOW (in thousands, except percentages) Q1 2019 Q1 2020 Net cash provided by operating activities Net cash provided by operating activities $ 42,468 $ 42,355 Purchases of property and equipment, net (6,963) (37,004