Merit Medical Systems, Inc. · NASDAQ:MMSI
Merit Medical Systems — Q1 2023 Earnings Presentation
17 slides from Merit Medical Systems's earnings presentation, Apr 26, 2023
Slide 1: First Quarter 2023 Results
First Quarter 2023 Results Merit Medical Investor Call April 26, 2023 Fred Lampropoulos Chairman and CEO Raul Parra CFO 1
Slide 2: Cautionary Statement Regarding Forward-Looking Statements
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 fact, ar
Slide 3: Non-GAAP Financial Measures
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 regardin
Slide 4: Financial Summary
Financial Summary GAAP NON-GAAP* Q1 2023 Q1 2022 Q1 2023 Q1 2022 Revenue $297.6M $275.4M $302.4M† $277.1M† Gross Margin 46.5% 43.9% 50.1%* 47.7%* Operating Margin 8.9% 5.5% 16.1%* 14.6%* Net Income $20.7M $10.5M $37.5M* $30.4M* Earnings per Share $0.36 $0.18 $0.64* $0.53* * See "Notes to Non-GAAP Fi
Slide 5: Revenue Breakdown – QTD
Revenue Breakdown – QTD In thousands, except percentages Region Q1 2023 Q1 2022 $ Change % Change CC % Change* U.S. $171,360 $152,992 $18,368 12.0% 10.9% APAC 57,536 60,486 (2,950) (4.9)% 1.5% EMEA 58,053 51,989 6,064 11.7% 16.8% Rest of World 10,616 9,948 668 6.7% 7.3% Total International 126,205 1
Slide 6: Financial Metrics
Financial Metrics Metric Q1 2023 Q1 2022 Depreciation & Amortization $20.6M $20.5M Stock Comp (performance-based) 1.3M 1.2M Stock Comp (not performance-based) 2.7M 3.4M Operating Cash Flow 14.5M 12.0M Capital Expenditures-Property and Equipment 12.8M 9.5M 6
Slide 7: Updated 2023 Financial Guidance
Updated 2023 Financial Guidance Financial Measure Updated Guidance Prior Guidance Net Sales $1.217 billion to $1.229 billion $1.194 billion to $1.210 billion Net Income (GAAP) $100 million to $105 million $100 million to $105 million Earnings Per Share (GAAP) $1.71 to $1.79 $1.72 to $1.80 Net Income
Slide 8: Appendix
Appendix 8
Slide 9: Notes to Non-GAAP Financial Measures
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 measures,
Slide 10: Notes to Non-GAAP Financial Measures (cont.)
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 rates in effect
Slide 11: Notes to Non-GAAP Financial Measures (cont.)
Notes to Non-GAAP Financial Measures (cont.) Non-GAAP Net Income Non-GAAP net income is calculated by adjusting GAAP net income for the items set forth in the definition of non-GAAP operating income above, as well as for expenses related to debt issuance costs, gains or losses on disposal of certain
Slide 12: Reconciliation of GAAP Net Income to Non-GAAP Net Income
Reconciliation of GAAP Net Income to Non-GAAP Net Income (Unaudited; in thousands except per share amounts) Three Months Ended Three Months Ended March 31, 2023 March 31, 2022 Pre-Tax Tax Impact After-Tax Per Share Impact Pre-Tax Tax Impact After-Tax Per Share Impact GAAP net income $ 25,500 $ (4,79
Slide 13: Reconciliation of GAAP Operating Income to Non-GAAP Operating Income
Reconciliation of GAAP Operating Income to Non-GAAP Operating Income (Unaudited; in thousands except percentages) Three Months Ended Three Months Ended March 31, 2023 March 31, 2022 Amounts % Sales Amounts % Sales Net Sales as Reported $ 297,565 $ 275,415 GAAP Operating Income 26,383 8.9 % 15,233 5.
Slide 14: Footnotes to Reconciliations of GAAP Net Income and Operating Income
Footnotes to Reconciliations of GAAP Net Income to Non-GAAP Net Income and GAAP Operating Income to Non-GAAP Operating Income a) Represents performance-based share-based compensation expense, including stock-settled and cash-settled awards. b) Includes consulting expenses related to the Foundations
Slide 15: Reconciliation of Reported Revenue to Constant Currency Revenue
Reconciliation of Reported Revenue to Constant Currency Revenue (Non-GAAP), and Constant Currency Revenue, Organic (Non-GAAP) (Unaudited; in thousands except percentages) Three Months Ended March 31, % Change 2023 2022 Reported Revenue 8.0 % $ 297,565 $ 275,415 Add: Impact of foreign exchange 4,873
Slide 16: Reconciliation of GAAP Gross Margin to Non-GAAP Gross Margin
Reconciliation of GAAP Gross Margin to Non-GAAP Gross Margin (Unaudited; as a percentage of reported revenue) Three Months Ended March 31, 2023 2022 Reported Gross Margin 46.5 % 43.9 % Add back impact of: Amortization of intangibles 3.6 % 3.8 % Non-GAAP Gross Margin 50.1 % 47.7 % Note: Certain perce
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