Merit Medical Systems, Inc. · NASDAQ:MMSI
Merit Medical Systems — Q3 2017 Earnings Presentation
23 slides from Merit Medical Systems's earnings presentation, Oct 25, 2017
Slide 1: Third Quarter FY2017 Results
FRED LAMPROPOULOS Chairman & CEO BERNARD BIRKETT CFO Third Quarter FY2017 Results 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
Q3 2017 Q3 2016 YTD 2017 YTD 2016 Revenue $179.3M $157.0M $537.0M $446.1M Gross Margin 44.9% 43.2% 44.8% 43.7% Net Income (Loss) $(3.6)M $1.0M $20.7M $12.6M EPS $(0.07) $0.02 $0.42 $0.28 Financial Summary GAAP 4
Slide 5: Financial Summary Non-GAAP
Q3 2017 Q3 2016 YTD 2017 YTD 2016 Revenue (Constant Currency) $178.3M $157.0M $539.1M $446.1M Revenue (Reported) $179.3M $157.0M $537.0M $446.1M Gross Margin 48.1% 46.8% 48.2% 46.4% Net Income $16.5M $11.5M $47.4M $31.4M EPS $0.32 $0.26 $0.96 $0.70 Financial Summary Non-GAAP 5
Slide 6: Q3 2017 Revenue by Market
Q3 2017 Revenue by Market Revenue by Market in Constant Currency EMEA: 18.0% United States: 57.8% Other International: 24.2% GAAP Constant Currency Revenue Growth Q3'17 over Q3'16 40 35 30 25 20 15 10 5 0 % G ro w th United States Other International EMEA 5% 32.9% 25.7% 5% 32.6% 22.1% (GAAP 18.5%) (
Slide 7: YTD 2017 Revenue by Market
YTD 2017 Revenue by Market Revenue by Market in Constant Currency EMEA: 18.3% United States: 58.1% Other International: 23.6% GAAP Constant Currency Revenue Growth YTD'17 over YTD'16 40 35 30 25 20 15 10 5 % G ro w th United States Other International EMEA 12.4% 33.9% 33.4% 12.4% 35.1% 34.7% (GAAP 1
Slide 8: Purchase of IntelliWire from IntelliMedical Technologies
Purchase of IntelliWire™ from IntelliMedical Technologies — Robotically Steerable Guide Wire — Controlled with User Interface — Significant Advancement in the Field of Interventional Cardiology
Slide 9: Purchase of Bone Biopsy Portfolio from Laurane Medical
Purchase of Bone Biopsy Portfolio from Laurane Medical — All Kits include A Biopsy Needle — Allows for Multiple Biopsy Passes and t 4 uv i Ablation Access Superior Diagnostic Sampling.
Slide 10: Purchase of ITL Healthcare
Purchase of ITL Healthcare — Acquired on October 2, 2017 — Pack Business in Melbourne, Australia — 64 Employees — Clean Room, Sterilizer, and Warehouse
Slide 11: Global Reach
Global Reach Toronto, Conada ‘Maastricht, Moscow, Russia. ‘ eijing, China Pennsylvania, ‘The Netherlands ‘Shonghai, China Seoul, SO ‘South Korea cate usa—G uP ee Homey 2 AR conn ‘Tijuano, Mexico Texas,USA ‘O Manufacturing © Soles
Slide 12: New Products in 2017
New Products in 2017 - CorVocet™ Biopsy System - SwiftNINJA® Steerable Microcatheter : - Elation® GI & Pulmonary Balloons f - TWISTER® PLUS Rotatable Retrieval Device ‘ - PreludeEASE™ Hydrophilic Sheath intredager -P Radial Comp ion Device
Slide 13: New Products in 2017
New Products in 2017 HeRO® Graft Super HeRO® True Form™ Reshapable Guide Wire HeartSpan® Steerable Sheath InQwire® Amplatz Guide Wires Merit PAK™ Pedal Access
Slide 14: New Products in 2017
New Products in 2017 - Critical Care Products from Argon Medical Devices, Inc. - DualCap® Disinfection & Protection from Catheter Connections, Inc.
Slide 15: Enhance growth and profitability
Enhance growth and profitability ainaust R&D, sales optimization, cost cee ine, and operational focus Optimize operational capability Through tan processes, cost effective Caer anleeh utilization opportuni Disciplined, customer-focused enterprise Cac and delving values to globally dl t |, and ae eee
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 September 30, 2017 Pre-Tax Tax Impact(a) After-Tax Per Share Impact GAAP net income $ (2,205) $ (1,364) $ (3,569) $ (0.07) Non-GAAP adjustments: Cost of Sales Amortization o
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) Nine Months Ended September 30, 2017 Pre-Tax Tax Impact (a) After-Tax Per Share Impact GAAP net income $ 24,601 $ (3,884) $ 20,717 $ 0.42 Non-GAAP adjustments: Cost of Sales Amortization of in
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 Nine Months Ended September 30, September 30, % Change 2017 2016 % Change 2017 2016 Reported Reve
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, in thousands) (As a percentage of reported revenue) Three Months Ended Nine Months Ended September 30, September 30, 2017 2016 2017 2016 Reported Gross Margin 44.9% 43.2% 44.8% 43.7% Add back impact of: Amortizat
Slide 22: Revised 2017 Guidance
Revised 2017 Guidance 22 Previous Guidance Revised Guidance Revenue $722M - 727M $722M - 727M Gross Margin GAAP 45.0% - 45.5% 45.0% - 45.5% Gross Margin Non-GAAP 48.0% - 48.5% 48.0% - 48.5% EPS GAAP $0.80 - $0.86 $0.55 - $0.61 * EPS Non-GAAP $1.23 - $1.28 $1.23 - $1.28 *Revision due to the impact of
Slide 23: Merit Medical: Understand. Innovate. Deliver.
UZ) AERTTDIC®. Understand. Innovate. Deliver.”
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