Merit Medical Systems, Inc. · NASDAQ:MMSI
Merit Medical Systems — Q2 2022 Earnings Presentation
20 slides from Merit Medical Systems's earnings presentation, Jul 27, 2022
Slide 1: Merit Medical Investor Call Second Quarter 2022 Results
1 Merit Medical Investor Call July 27, 2022 Second Quarter 2022 Results Fred Lampropoulos Chairman and CEO Raul Parra CFO
Slide 2: Cautionary Statement Regarding Forward-Looking Statements
2 CAUTIONARY STATEMENT REGARDING FORWARD - LOOKING STATEMENTS This presentation and any accompanying management commentary include “forward - looking statements,” as defined within applicable securities laws and regulations .. All statements in this presentation, other than statements of historical
Slide 3: Non-GAAP Financial Measures
3 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 re
Slide 4: Financial Summary GAAP
4 Q2 2022 Q2 2021 YTD 2022 YTD 2021 Revenue $295.0M $280.3M $570.4M $529.2M Gross Margin 45.8% 44.3% 44.9% 44.6% Operating Margin 7.9% 3.2% 6.7% 4.4% Net Income $15.3M $4.9M $25.8M $15.9M Earnings per Share $0.27 $0.09 $0.45 $0.28 Financial Summary GAAP 4
Slide 5: Financial Summary Non-GAAP
5 Q2 2022 Q2 2021 YTD 2022 YTD 2021 Revenue (constant currency, organic) † $301.0M $280.3M $578.2M $529.2M Gross Margin 49.3% 48.7% 48.6% 48.9% Operating Margin 19.1% 16.3% 16.9% 16.0% Net Income $42.3M $35.3M $72.7M $65.2M Earnings per Share $0.73 $0.62 $1.26 $1.14 Financial Summary Non - GAAP* 5 *
Slide 6: Revenue Breakdown – Q2
6 Revenue Breakdown – Q 2 Region Q2 2022 Q2 2021 $ Change % Change CC % Change* U.S. $164,674 $158,771 $5,903 3.7% 2.6% APAC 61,995 61,449 546 0.9% 5.5% EMEA 56,694 52,823 3,871 7.3% 17.1% Rest of World 11,613 7,282 4,331 59.5% 57.5% Total International 130,302 121,554 8,748 7.2% 13.6% Total $294,97
Slide 7: Revenue Breakdown – YTD
7 Revenue Breakdown – YTD Region YTD 2022 YTD 2021 $ Change % Change CC % Change* U.S. $317,666 $300,143 $17,523 5.8% 4.8% APAC 122,481 112,668 9,813 8.7% 11.5% EMEA 108,683 102,335 6,348 6.2% 13.9% Rest of World 21,561 14,092 7,469 53.0% 51.1% Total International 252,725 229,095 23,630 10.3% 15.0%
Slide 8: Financial Metrics
8 Financial Metrics Metric Q2 2022 Q2 2021 YTD 2022 YTD 2021 Depreciation & Amortization $20.4M $21.0M $40.9M $42.4M Stock Comp (performance - based) 1.8M 1.3M 3.0M 2.4M Stock Comp (not performance - based) 2.7M 1.8M 6.1M 4.4M Operating Cash Flow 38.8M 41.2M 50.8M 76.4M Capital Expenditures - Proper
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 presentat ion. Merit’s financial guidance for the year ending December 31, 2022, is subject to risks and uncertainties identified in this prese ntation and in Merit’s filings
Slide 10: Appendix
10 Appendix 10
Slide 11: Notes Financial Measures
11 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 financia
Slide 12: Notes Financial Measures (cont.)
12 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
Slide 13: Notes Financial Measures (cont.)
13 Notes to Non - GAAP Financial Measures (cont .. ) Non - GAAP EPS Non - GAAP EPS is defined as non - GAAP net income divided by the diluted shares outstanding for the corresponding period .. Free Cash Flow Free cash flow is defined as cash flow from operations calculated in accordance with GAAP, l
Slide 14: Reconciliation of GAAP Net Income
14 Reconciliation of GAAP Net Income to Non - GAAP Net Income (Unaudited ; in thousands except per share amounts) Note: Certain per share impacts may not sum to totals due to rounding. GAAP net income $ 20,701 $ (5,403) $ 15,298 $ 0.27 $ 6,865 $ (1,949) $ 4,916 $ 0.09 Non-GAAP adjustments: Cost of S
Slide 15: Reconciliation of GAAP Net Income
15 Reconciliation of GAAP Net Income to Non - GAAP Net Income (Unaudited ; in thousands except per share amounts) Note: Certain per share impacts may not sum to totals due to rounding. GAAP net income $ 34,872 $ (9,029) $ 25,843 $ 0.45 $ 19,559 $ (3,685) $ 15,874 $ 0.28 Non-GAAP adjustments: Cost of
Slide 16: Reconciliation of GAAP Operating Income
16 Reconciliation of GAAP Operating Income to Non - GAAP Operating Income (Unaudited ; in thousands except percentages) Note: Certain percentages may not sum to totals due to rounding. Net Sales as Reported $ 294,976 $ 280,325 $ 570,391 $ 529,238 GAAP Operating Income 23,256 7.9 % 8,895 3.2 % 38,489
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) Represents the write - off of inventory related to the divestiture or exit of certain businesses or product lines .. b) Represents performance - based share - based
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 t
Slide 19: Reconciliation of GAAP Gross Margin
19 Reconciliation of GAAP Gross Margin to Non - GAAP Gross Margin (Unaudited ; as a percentage of reported revenue) Note: Certain percentages may not sum to totals due to rounding. 2022 2021 2022 2021 Reported Gross Margin 45.8 % 44.3 % 44.9 % 44.6 % Add back impact of: Amortization of intangibles 3
Slide 20: Slide 20
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