Slide 1: Non-GAAP Measures, Adjustments and Definitions
© 2019 Masimo Non-GAAP Measures, Adjustments and Definitions Revised 6/30/2021
Slide 2: Forward-Looking Statements
© 2019 Masimo Forward-Looking Statements Masimo Corporation (“Masimo”, “MASI”, or the “Company”) cautions you that statements included in this presentation that are not a description of historical facts are forward-looking statements that involve risks, uncertainties, assumptions and other factors w
Slide 3: Non-GAAP Measures & Adjustments
© 2019 Masimo The Company uses certain non-GAAP financial measures such as constant currency product revenue growth, non-GAAP gross profit/margin percentage, non-GAAP SG&A expense percentage, non-GAAP R&D expense percentage, non-GAAP operating income/margin percentage, non-GAAP provision for income
Slide 4: Measures & Adjustments (continued)
© 2019 Masimo Non-GAAP Measures & Adjustments (continued) The Company also uses non-GAAP liquidity measures such as adjusted free cash flow, which excludes certain cash items related to the foregoing that may impact period-to-period comparability, and adjusted EBITDA, which excludes non-cash stock-b
Slide 5: Constant currency revenue adjustments; royalty and other revenue
© 2019 Masimo Non-GAAP Definitions > Constant currency revenue adjustments ▪ Some of our sales agreements with foreign customers provide for payment in currencies other than the U.S. Dollar. These foreign currency revenues, when converted into U.S. Dollars, can vary significantly from period-to-peri
Slide 6: Litigation related expenses and settlements; business transition costs
© 2019 Masimo Non-GAAP Definitions (continued) > Litigation related expenses and settlements ▪ These transactions represent gains, losses, and other related costs associated with certain litigation matters, which can vary in their characteristics, frequency and significance to our operating results.
Slide 7: Early debt repayment charges, tax impact and tax events
© 2019 Masimo Non-GAAP Definitions (continued) > Charges associated with the early repayment of debt and non-cash interest expense ▪ The Company may enter into convertible debt arrangements whereby certain instrument features are valued and expensed accordingly but are not necessarily indicative of
Slide 8: Dilutive share impact and adjusted free cash flow
© 2019 Masimo Non-GAAP Definitions (continued) > Dilutive share impact related to certain financial instruments ▪ The Company may enter into certain financial instruments with potential dilutive effects for earnings per share purposes. For GAAP earnings per diluted share purposes, the Company cannot