Merit Medical Systems, Inc. · NASDAQ:MMSI
Merit Medical Systems — Q2 2017 Earnings Presentation
20 slides from Merit Medical Systems's earnings presentation, Jul 26, 2017
Slide 1: Second Quarter FY2017 Results
1 Second Quarter FY2017 Results FRED LAMPROPOULOS Chairman & CEO BERNARD BIRKETT CFO TM Exhibit 99.2
Slide 2: Disclosure Regarding Forward-Looking Statements
2 DISCLOSURE 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 fact, are “forwa
Slide 3: Non-GAAP Financial Measures
3 NON-GAAP FINANCIAL MEASURES Although Merit’s financial statements are prepared in accordance with accounting principles which are generally accepted in the United States of America (“GAAP”), Merit’s management believes that certain non-GAAP financial measures provide investors with useful informat
Slide 4: Financial Summary GAAP
4 Financial Summary GAAP Q2 2017 Q2 2016 YTD 2017 YTD 2016 Revenue $186.5M $151.1M $357.6M $289.1M Gross Margin 45.1% 44.3% 44.8% 43.9% Net Income $9.5M $7.3M $24.3M $11.6M EPS $0.19 $0.16 $0.50 $0.26
Slide 5: Financial Summary Non-GAAP
5 Financial Summary Non-GAAP Q2 2017 Q2 2016 YTD 2017 YTD 2016 Revenue (Constant Currency) $188.7M $151.1M $361.0M $289.1M Revenue (Reported) $186.5M $151.1M $357.6M $289.1M Gross Margin 48.3% 46.4% 48.3% 46.1% Net Income $18.3M $11.5M $31.0M $19.8M EPS $0.36 $0.26 $0.64 $0.44
Slide 6: Q2 2017 Revenue by Market
6 Q2 2017 Revenue by Market United States 57.3% Other International 23.7% EMEA 19.0% Revenue by Market in Constant Currency United States Other International EMEA 14.4% 37.8% 39.6% 14.4% 40.6% 44.5% 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% United States Other International EMEA Revenue Growth in Constant
Slide 7: YTD 2017 Revenue by Market
7 YTD 2017 Revenue by Market United States 58.2% Other International 23.3% EMEA 18.5% Revenue by Market in Constant Currency United States Other International EMEA 15.2% 39.8% 36.2% 15.2% 42.0% 40.6% 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% United States Other International EMEA Revenue Growth in Constant
Slide 8: Global Reach
Global Reach Moastricht, Moscow, RUSH Bating, China
Slide 9: New Products in 2017
9 New Products in 2017 - CorVocet™ Biopsy System - SwiftNINJA® Steerable Microcatheter - Elation® GI & Pulmonary Balloons - TWISTER® PLUS Rotatable Retrieval Device - PreludeEASE™ Hydrophilic Sheath Introducer - PreludeSync™ Radial Compression Device
Slide 10: New Products in 2017
10 New Products in 2017 - HeRO® Graft - Super HeRO® - True Form™ Reshapable Guide Wire - HeartSpan® Transseptal Sheath - InQwire® Amplatz Guide Wires - Merit PAK™ Pedal Access
Slide 11: New Products in 2017
11 New Products in 2017 - Critical Care Products from Argon® - DualCap® Disinfection & Protection
Slide 12: Revised 2017 Guidance
12 Revised 2017 Guidance Previous Guidance Revised Guidance Revenue $713M - $723M $722M - $727M Gross Margin GAAP 45.0% - 45.5% 45.0% - 45.5% Gross Margin Non-GAAP 48.0% - 48.5% 48.0% - 48.5% EPS GAAP $0.80 - $0.86 $0.80 - $0.86 EPS Non-GAAP $1.15 - $1.20 $1.23 - $1.28
Slide 13: Disciplined, customer-focused enterprise
13 1 2 3 4 Disciplined, customer-focused enterprise Guided by strong core values to globally address unmet or underserved healthcare needs Target high-growth, high-return opportunities Through understanding, innovating, and delivering in peripheral, cardiac, OEM, and endoscopy business lines Optimiz
Slide 14: Notes to Non-GAAP Financial Measures
14 NOTES TO NON-GAAP FINANCIAL MEASURES For additional details, please see the accompanying press release and forward-looking statement disclosure. These presentation materials and associated commentary from Merit’s management, as well as the press release issued today, use non-GAAP financial measur
Slide 15: Notes to Non-GAAP Financial Measures (continued)
15 NOTES TO NON-GAAP FINANCIAL MEASURES (continued) Constant Currency Revenue Merit’s revenue on a constant currency basis is prepared by translating the current-period reported sales of subsidiaries whose functional currency is other than the U.S. dollar at the applicable foreign exchange rates in
Slide 16: Consolidated Statements of Income - Non-GAAP, Three Months Ended June 30, 2017
16 CONSOLIDATED STATEMENTS OF INCOME - NON-GAAP FOR THE THREE MONTHS ENDED JUNE 30, 2017 AND 2016 (Unaudited) In thousands, except per share data Pre-Tax Tax Impact (a) After-Tax Per Share Impact GAAP net income 11,313$ (1,830)$ 9,483$ 0.19$ Non-GAAP adjustments: Cost of Sales Amortization of intang
Slide 17: Consolidated Statements of Income - Non-GAAP, Six Months Ended June 30, 2017
17 CONSOLIDATED STATEMENTS OF INCOME - NON-GAAP FOR THE SIX MONTHS ENDED JUNE 30, 2017 AND 2016 (Unaudited) In thousands, except per share data Pre-Tax Tax Impact (a) After-Tax Per Share Impact GAAP net income 26,806$ (2,520)$ 24,286$ 0.50$ Non-GAAP adjustments: Cost of Sales Amortization of intangi
Slide 18: Reconciliation of Reported Revenue to Core Revenue and Constant Currency Revenue
18 Reconciliation of Reported Revenue to Core Revenue (Non-GAAP), Constant Currency Revenue (Non-GAAP), and Core Revenue on a Constant Currency Basis (Non-GAAP) (Unaudited, in thousands) % Change 2017 2016 % Change 2017 2016 Reported Revenue 23.5% 186,549$ 151,071$ 23.7% 357,618$ 289,148$ Add: Impac
Slide 19: Reconciliation of Reported Gross Margin to Non-GAAP Gross Margin
19 Reconciliation of Reported Gross Margin to Non-GAAP Gross Margin (Non-GAAP) (Unaudited, in thousands) (As a percentage of reported revenue) 2017 2016 2017 2016 Reported Gross Margin 45.1% 44.3% 44.8% 43.9% Less: Amortization of intangibles 2.7% 2.1% 2.7% 2.1% Inventory mark-up related to acquisit
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