Merit Medical Systems, Inc. · NASDAQ:MMSI
Merit Medical Systems — Q2 2018 Earnings Presentation
23 slides from Merit Medical Systems's earnings presentation, Jul 23, 2018
Slide 1: Second Quarter 2018 Results
Second Quarter 2018 Results FRED LAMPROPOULOS Chairman & CEO RAUL PARRA CFO
Slide 2: Disclosure Regarding Forward-Looking Statements
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 “forward
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 GAAP
Financial Summary GAAP Q2 2018 Q2 2017 YTD 2018 YTD 2017 Revenue $224.8M $186.5M $427.8M $357.6M Gross Margin 44.5% 45.1% 44.0% 44.8% Net Income $10.9M $9.5M $16.2M $24.3M EPS $0.21 $0.19 $0.31 $0.50 4
Slide 5: Financial Summary Non-GAAP
Financial Summary Non-GAAP Q2 2018 Q2 2017 YTD 2018 YTD 2017 Revenue (Constant Currency) $221.2M $186.5M $419.0M $357.6M Non-GAAP Gross Margin 48.9% 48.3% 48.2% 48.3% Non-GAAP Net Income $22.4M $18.3M $38.3M $31.0M Non-GAAP EPS $0.43 $0.36 $0.74 $0.64 5
Slide 6: Q2 2018 Revenue by Market
Q2 2018 Revenue by Market (Non(GAAP(GAAP-GAAP 18.9%) 18.9%) 18.3%) (GAAP 25.7%) (GAAP(Non-GAAP 25.7%) 25.4%) (GAAP 55.4%) (Non(GAAP-GAAP 55.4%) 56.3%) 6
Slide 7: YTD 2018 Revenue by Market
YTD 2018 Revenue by Market (Non(GAAP-GAAP 19.3%) 18.5%) (GAAP(Non-GAAP 25.9%) 25.5%) (Non(GAAP-GAAP 54.8%) 56.0%) 7
Slide 8: New Products in 2018
New Products in 2018 – FLO40XR™ Hemostasis Valve – PreludeSYNC™ DISTAL Radial Compression Device – Prelude Pursuit™ Splittable Sheath Introducer – Prelude IDeal™ Hydrophilic Sheath Introducer – Prelude Choice™ Hemostasis Valve Adapter 8
Slide 9: New Products in 2018
New Products in 2018 – CorVocet™ Biopsy Device – DiamondTOUCH™ Inflation Device – BasixTAU™ Inflation Device – Bone & Spine Biopsy Products – ReSolve CirQ™ Nephrostomy Catheter – FastBreak™ Breakaway Connector 9
Slide 10: New Products in 2018
New Products in 2018 – FirstChoice™ Ultra High Pressure PTA Balloon Catheters – Q50® PLUS Stent Graft Balloon Catheters Q50® PLUS is manufactured by and is a registered trademark of QXMédical. 10
Slide 11: Assets Purchased from Becton, Dickinson and Company
Assets Purchased from Becton, Dickinson and Company – Achieve® Automatic Biopsy System – Pink Achieve™ Automatic Biopsy System – Original Temno™ Biopsy Device – Temno Evolution® Biopsy Device – Adjustable Coaxial Temno™ (ACT) Biopsy – Aspira® Drainage System 11
Slide 12: NvisionVLE Imaging System
NvisionVLE® Imaging System – Breakthrough Design – High-Speed Optical Probe – Real-Time Image-Guided Tissue Marking ❖ NvisionVLE® Imaging System recently purchased by 4 major U.S. hospitals NvisionVLE ® is a registered trademark of NinePoint Medical, Inc. 12
Slide 13: Product Benefits from the Competitor Shortage
Product Benefits from the Competitor Shortage SHEATH INTRODUCERS GUIDE WIRES – Prelude® – InQwire® – Prelude IDeal™ Hydrophilic – InQwire® Amplatz – PreludeEASE™ – Merit H20™ Hydrophilic – Prelude PRO™ – Merit Laureate® Hydrophilic 13
Slide 14: Product Benefits from the Competitor Shortage
Product Benefits from the Competitor Shortage MICROCATHETERS COMPRESSION DEVICES CATHETERS – Merit Pursue™ – PreludeSYNC™ Radial – Impress® Hydrophilic – SwiftNINJA® Steerable – PreludeSYNC™ Distal – ConcierGE® Guiding – Merit Maestro® – Performa® Angiographic 14
Slide 15: Global Reach
Global Reach Toronto, Canada Maastricht, Moscow, Russia Pennsylvania, USA Venlo, The Netherlands The Netherlands Beijing, China Utah, USA Shanghai, China Seoul, 2O— South Korea = Versailles, fone Roissy, France ae New Jersey, USA - Virginia, USA California, SA—@ 2Ort O— Tokyo, Japan lone Hong Kong 2
Slide 16: 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 17: Notes to Non-GAAP Financial Measures (cont.)
NOTES TO NON-GAAP FINANCIAL MEASURES (cont.) 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 effect
Slide 18: 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 June 30, 2018 June 30, 2017 Pre-Tax Tax Impact (a) After-Tax Per Share Impact Pre-Tax Tax Impact (a) After-Tax Per Share Impact GAAP net income $ 11,565 $
Slide 19: 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) Six Months Ended Six Months Ended June 30, 2018 June 30, 2017 Pre-Tax Tax Impact (a) After-Tax Per Share Impact Pre-Tax Tax Impact (a) After-Tax Per Share Impact GAAP net income $ 17,925 $ (1,
Slide 20: Reconciliation of Reported Revenue to Core and Constant Currency Revenue
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) Three Months Ended Six Months Ended June 30, June 30, % Change 2018 2017 % Change 2018 2017 Reported Revenue 20.5%
Slide 21: Reconciliation of Reported Gross Margin to Non-GAAP Gross Margin
Reconciliation of Reported Gross Margin to Non-GAAP Gross Margin (Non-GAAP) (Unaudited, as a percentage of reported revenue) Three Months Ended Six Months Ended June 30, June 30, 2018 2017 2018 2017 Reported Gross Margin 44.5% 45.1% 44.0% 44.8% Add back impact of: Amortization of intangibles 3.5% 2.
Slide 22: Updated Guidance
Updated Guidance Year Ended December 31, 2018 Prior Guidance Updated Guidance Revenue $838 - $851 million $870 - $880 million GAAP Gross Margin 45.6% - 46.5% 45.0% - 45.5% GAAP EPS $0.77 - $0.85 $0.80 - $0.90 Non-GAAP Gross Margin 49.7% - 50.8% 48.9% - 49.4% Non-GAAP EPS $1.57 - $1.69 $1.60 - $1.70
Slide 23: Merit - Understand. Innovate. Deliver.
MERIT 201C% Understand. Innovate. Deliver.”
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