Merit Medical Systems, Inc. · NASDAQ:MMSI
Merit Medical Systems — JP Morgan Healthcare Conference 2024
27 slides from Merit Medical Systems's conference presentation, Dec 7, 2023
Slide 1: JP Morgan Healthcare Conference 2024 Investor Presentation
STRICTLY PRIVATE & CONFIDENTIAL JP Morgan Healthcare Conference 2024 Investor Presentation
Slide 2: Cautionary Statement Regarding Forward-Looking Statements
STRICTLY PRIVATE & CONFIDENTIAL 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 s
Slide 3: Cautionary Statement Regarding Forward-Looking Statements (Continued)
STRICTLY PRIVATE & CONFIDENTIAL Cautionary Statement Regarding Forward-Looking Statements (Continued) Merit does not, as a matter of course, publicly disclose projected preliminary revenue, whether on an annual or quarterly basis, due to the unpredictability of the underlying assumptions and estimat
Slide 4: Today’s Presenters
STRICTLY PRIVATE & CONFIDENTIAL Today’s Presenters Fred Lampropoulos Raul Parra Chairman & CEO Chief Financial Officer Founder of Merit Medical Systems CFO since 2018 35+ years at Merit 14+ years at Merit Invented and holds over 200 medical device patents Director at American Express Nat
Slide 5: Merit Medical Systems at a Glance
STRICTLY PRIVATE & CONFIDENTIAL Merit Medical Systems at a Glance Founded in 1987 ● Headquartered in South Jordan, Utah ● Initial Public Offering in 1990 Revenue by Geography Revenue by Product Category Scaled & Positioned for Continued Growth (YTD 2023) (YTD 2023) Revenue $1,151M/$933M (2022 and YT
Slide 6: Key Investment Highlights
STRICTLY PRIVATE & CONFIDENTIAL Key Investment Highlights Merit Represents a Compelling Investment Opportunity Leading medical product solutions provider across multiple target end markets Robust innovation engine driving substantial portfolio expansion and product growth Dedicated commercial engine
Slide 7: Diversified, Growing Portfolio
STRICTLY PRIVATE & CONFIDENTIAL Diversified, Growing Portfolio CARDIOVASCULAR (97.1%) ENDOSCOPY (2.9%) CI (28.8%) PI (39.5%) CP (15.6%) OEM (13.2%) Endoscopy Supports minimally invasive Gastroenterology: Complete range Broad line of medical devices Custom and standard kit and Coating servi
Slide 8: Demonstrated History of Successful M&A
STRICTLY PRIVATE & CONFIDENTIAL Demonstrated History of Successful M&A Revenues ($ in millions) 11/20: KA Medical 02/19: BrightWater Medical 11/12: Janin Group 11/12: Thomas Medical 02/18: BD/Bard Biopsy & Drainage Assets 11/18: Cianna Medical 02/09: Alveolus 06/09: Hatch Medical 02/16: Hero Graft 1
Slide 9: Recent Product Acquisitions (May and June 2023)
STRICTLY PRIVATE & CONFIDENTIAL Recent Product Acquisitions (May and June 2023) Dialysis Catheter Portfolio & BioSentry Biopsy Tract Sealant System Two separate product acquisitions closed in May and June 2023 Dialysis catheter products and BioSentry® Biopsy Tract Sealant System from AngioDynami
Slide 10: Merit’s Foundations for Growth | Plan & Goals
STRICTLY PRIVATE & CONFIDENTIAL Merit’s Foundations for Growth | Plan & Goals (Launched November 2020) COMPANY-WIDE 3-YEAR PLAN DRIVERS & EXPECTATIONS Multiple drivers of Merit's overall revenue growth profile Maintain above-market growth Growth • Innovate and deliver solutions to the market that Dr
Slide 11: Recent Performance
STRICTLY PRIVATE & CONFIDENTIAL Recent Performance 11
Slide 12: Q3/YTD (9/30) Financial Summary: Non-GAAP
Q3/YTD (9/30) Financial Summary: Non-GAAP In millions, except per share amounts and percentages % Change/ % Change/ Q3 2023 Q3 2022 YTD 2023 YTD 2022 bps / bps / GAAP Revenue $307.7M $287.2M 7.1% (9.7%) $931.8M $857.6M 8.7% (9.6%) (constant currency) † Gross Margin 49.8% 48.4% 140 bps 50.4% 48.5%
Slide 13: 2023 Financial Guidance (as of October 2023)
2023 Financial Guidance (as of October 2023) Prior Year (As Reported) Updated Guidance Year Ended Year Ending % Change Financial Measure December 31, 2022 December 31, 2023 Y/Y Net Sales $1.151 billion $1.242 - $1.251 billion 8% - 9% Cardiovascular Segment $1.118 billion $1.205 - $1.214 billion 8% -
Slide 14: 2023 Preliminary Unaudited Revenue Guidance
2023 Preliminary Unaudited Revenue Guidance MERIT MEDICAL ANNOUNCES PROJECTED PRELIMINARY UNAUDITED REVENUE FOR THE YEAR ENDED DECEMBER 31, 2023 2023 reported preliminary unaudited revenue in the range of approximately $1.255 billion - $1.259 billion, up approximately 9.0% - 9.4% year-over-year
Slide 15: Summary
STRICTLY PRIVATE & CONFIDENTIAL Summary Strong top-line growth driven by a diversified portfolio and geographic mix Proven acquisition track-record and capabilities Well capitalized balance sheet and strong free cash flow generation in 2023 Commitment to operational excellence delivering mar
Slide 16: Appendix
STRICTLY PRIVATE & CONFIDENTIAL Appendix 16
Slide 17: Non-GAAP Financial Measures
STRICTLY PRIVATE & CONFIDENTIAL 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 referenced in this
Slide 18: Reconciliation of Preliminary Approximate Reported Revenue Range to Constant Currency Revenue Range
STRICTLY PRIVATE & CONFIDENTIAL Reconciliation of Preliminary Approximate Reported Revenue Range to Preliminary Approximate Constant Currency Revenue Range (Non-GAAP) (Unaudited; in thousands except percentages) Year Ended December 31, % Change 2023 2022 Preliminary Approximate Reported Revenue Rang
Slide 19: Reconciliation of Reported Revenue to Constant Currency Revenue, Organic
STRICTLY PRIVATE & CONFIDENTIAL 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 2023 2022 % Change 202
Slide 20: Reconciliation of GAAP Gross Margin to Non-GAAP Gross Margin
STRICTLY PRIVATE & CONFIDENTIAL Reconciliation of GAAP Gross Margin to Non-GAAP Gross Margin (Unaudited; as a percentage of reported revenue) Three Months Ended Nine Months Ended September 30, September 30, 2023 2022 2023 2022 Reported Gross Margin 45.1 % 44.8 % 46.5 % 44.8 % Add back impact of: Amo
Slide 21: Reconciliation of GAAP Operating Income to Non-GAAP Operating Income
STRICTLY PRIVATE & CONFIDENTIAL 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, 2023 September 30, 2022 September 30, 2023 September 30, 2022
Slide 22: Reconciliation of GAAP Net Income to Non-GAAP Net Income
STRICTLY PRIVATE & CONFIDENTIAL 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, 2023 September 30, 2022 Pre-Tax Tax Impact After-Tax Per Share Impact Pre-Tax Tax Impact After-Tax Per Share
Slide 23: Reconciliation of Reported Revenue to Constant Currency Revenue, Organic
STRICTLY PRIVATE & CONFIDENTIAL 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,
Slide 24: Reconciliation of GAAP Gross Margin to Non-GAAP Gross Margin
STRICTLY PRIVATE & CONFIDENTIAL 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. (a) Represents the write-off of inventory related to the divestiture or exit of certain busin
Slide 25: Reconciliation of GAAP Operating Income to Non-GAAP Operating Income
STRICTLY PRIVATE & CONFIDENTIAL 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. a) Represents the write-off of inventory related to the divestiture or exit of certain bu
Slide 26: Reconciliation of GAAP Net Income to Non-GAAP Net Income
STRICTLY PRIVATE & CONFIDENTIAL Reconciliation of GAAP Net Income to Non-GAAP Net Income (Unaudited; in thousands except per share amounts) 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 business
Slide 27: STRICTLY PRIVATE & CONFIDENTIAL
STRICTLY PRIVATE & CONFIDENTIAL
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