Merit Medical Systems, Inc. · NASDAQ:MMSI
Merit Medical Systems — Q4 2017 Earnings Presentation
20 slides from Merit Medical Systems's earnings presentation, Feb 28, 2018
Slide 1: Fourth Quarter and FY2017 Results, 2018 Guidance
FRED LAMPROPOULOS Chairman & CEO BERNARD BIRKETT CFO Fourth Quarter and FY2017 Results 2018 Guidance Exhibit 99.2
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
Q4 2017 Q4 2016 FY 2017 FY 2016 Revenue $190.9M $157.7M $727.9M $603.8M Gross Margin 44.9% 44.5% 44.8% 43.9% Net Income $6.8M $7.5M $27.5M $20.1M EPS $0.13 $0.17 $0.55 $0.45 Financial Summary GAAP 4
Slide 5: Financial Summary Non-GAAP
Q4 2017 Q4 2016 FY 2017 FY 2016 Revenue (Constant Currency) $188.2M $157.7M $727.3M $603.8M Revenue (Reported) $190.9M $157.7M $727.9M $603.8M Gross Margin 47.9% 48.4% 48.1% 46.9% Net Income $16.8M $13.8M $64.3M $45.1M EPS $0.33 $0.31 $1.28 $1.01 Financial Summary Non-GAAP 5
Slide 6: Q4 2017 Revenue by Market
Q4 2017 Revenue by Market (GAAP 19.3%) (GAAP 56.3%) (GAAP 24.4%) 6 (GAAP 24.4%) ( AAP 19.3 ) (GAAP 56.3%)
Slide 7: FY 2017 Revenue by Market
FY 2017 Revenue by Market (GAAP 18.5%) (GAAP 57.8%) (GAAP 23.7%) 7 (GAAP 23.7%) (GAAP 18.5%) (GAAP 57.8%)
Slide 8: 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 8
Slide 9: 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 9
Slide 10: New Products in 2018
– CorVocet™ Biopsy Device – DiamondTOUCH™ Inflation Device – BasixTAU™ Inflation Device – Bone & Spine Biopsy Products – ReSolve CirQ™ Nephrostomy Catheter – FastBreak™ Breakaway Connector New Products in 2018 10
Slide 11: Global Reach
Global Reach Toronto, Canada Maastricht, Pennsylvania, USA. Venlo, The Netherlands The Netherlands Moscow, Russia Being, China Utah, USA Shanghai, China Pea may aa a ‘China Kuala Lumpur, Malaysia © R&D O Manufacturing O Sales . ‘Melbourne, Australia er,
Slide 12: 2018 Guidance
Revenue $838M - $851M Gross Margin GAAP 45.6% - 46.5% Gross Margin Non-GAAP 49.7% - 50.8% EPS GAAP $0.77 - $0.85 EPS Non-GAAP $1.57 - $1.69 2018 Guidance 12
Slide 13: Strategic priorities
1 2 3 4 Enhance growth and profitability Through R&D, sales model optimization, cost discipline, and operational focus Optimize operational capability Through lean processes, cost effective environments, and asset utilization Target high-growth, high-return opportunities Through understanding, innov
Slide 14: 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 15: 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 16: 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 December 31, 2017 December 31, 2016 Pre-Tax Tax Impact (a) After-Tax Per Share Impact Pre-Tax Tax Impact (a) After-Tax Per Share Impact GAAP net income $
Slide 17: 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) Twelve Months Ended Twelve Months Ended December 31, 2017 December 31, 2016 Pre-Tax Tax Impact (a) After-Tax Per Share Impact Pre-Tax Tax Impact (a) After-Tax Per Share Impact GAAP net income
Slide 18: 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 Year Ended December 31, December 31, % Change 2017 2016 % Change 2017 2016 Reported Revenue 21.0%
Slide 19: 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 Year Ended December 31, December 31, 2017 2016 2017 2016 Reported Gross Margin 44.9% 44.5% 44.8% 43.9% Add back impact of: Amortization of intangibles 2.9%
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