Merit Medical Systems, Inc. · NASDAQ:MMSI
Merit Medical Systems — Q3 2021 Earnings Presentation
21 slides from Merit Medical Systems's earnings presentation, Oct 28, 2021
Slide 1: Third Quarter 2021 Results
Third Quarter 2021 Results Merit Medical Investor Call October 28, 2021 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 Q3 2021 Q3 2020 YTD 2021 YTD 2020 Revenues $267.0M $244.0M $796.3M $705.9M Gross Margin 45.1% 41.8% 44.8% 41.1% Operating Margin 6.0% 0.0% 4.9% (2.5%) Net Income (Loss) $12.0M ($3.0)M $27.8M ($25.2)M Earnings/(Loss) per Share $0.21 ($0.05) $0.49 ($0.46) 4
Slide 5: Financial Summary (Non-GAAP)
Financial Summary NON-GAAP* Q3 2021 Q3 2020 YTD 2021 YTD 2020 Revenues $265.5M $244.0M $784.6M $705.9M (constant currency, organic) † Gross Margin 49.1% 47.0% 49.0% 46.8% Operating Margin 14.8% 15.0% 15.6% 13.0% Net Income $30.2M $24.0M $95.4M $62.5M Earnings per Share $0.52 $0.42 $1.67 $1.11 * See
Slide 6: Revenue Breakdown – QTD
Revenue Breakdown – QTD In thousands, except percentages Region Q3 2021 Q3 2020 $ Change % Change CC % Change* U.S. $151,505 $143,109 $8,396 5.9% 7.0% APAC 56,950 50,329 6,621 13.2% 9.2% EMEA 49,733 43,773 5,960 13.6% 11.6% Rest of World 8,833 6,764 2,069 30.6% 27.0% Total International 115,516 100,
Slide 7: Revenue Breakdown – YTD
Revenue Breakdown – YTD In thousands, except percentages Region YTD 2021 YTD 2020 $ Change % Change CC % Change* U.S. $451,648 $402,305 $49,343 12.3% 13.6% APAC 169,618 147,841 21,777 14.7% 8.8% EMEA 152,068 136,168 15,900 11.7% 6.0% Rest of World 22,925 19,557 3,368 17.2% 15.4% Total International
Slide 8: Q3 2021 Financial Metrics
Q3 2021 Financial Metrics Metric Q3 2021 Q3 2020 YTD 2021 YTD 2020 Depreciation & Amortization $20.8M $23.4M $63.2M $70.5M Stock Comp (performance-based) 1.6M 1.1M 4.0M 2.6M Stock Comp (not performance-based) 3.2M 3.0M 7.6M 7.6M Operating Cash Flow 25.0M 55.1M 101.4M 128.4M Capital Expenditures-Prop
Slide 9: 2021 Financial Guidance
2021 Financial Guidance Financial Measure Guidance Range Net Sales $1,060 million to $1,070 million Net Income (GAAP) $38.1 million to $46.4 million Earnings Per Share (GAAP) $0.66 to $0.81 Net Income (Non-GAAP)* $118.8 million to $127.1 million Earnings Per Share (Non-GAAP)* $2.07 to $2.22 * See "N
Slide 10: 2021 Revenue Guidance: Reconciliation from GAAP Growth Range to Core Growth Range
2021 Revenue Guidance: Reconciliation from ’21 GAAP Growth Range to ’21 Core Growth Range The following should be considered when evaluating the GAAP revenue growth range implied by our 2021 guidance: FY Actuals Forecasted Q3 YTD Low High Revenue Growth - GAAP 9.4% 12.8% 10.0% 11.0% Impact of FX -0.
Slide 11: Appendix
Appendix 11
Slide 12: 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 13: 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 14: Notes to Non-GAAP Financial Measures (cont.)
Notes to Non-GAAP Financial Measures (cont.) Non-GAAP Gross Margin Non-GAAP gross margin is calculated by reducing GAAP cost of sales by amounts recorded for amortization of intangible assets, certain inventory write-offs, and inventory mark-up related to acquisitions, divided by reported net sales.
Slide 15: Reconciliation of GAAP Net Income (Loss) to Non-GAAP Net Income
Reconciliation of GAAP Net Income (Loss) to Non-GAAP Net Income (Unaudited; in thousands except per share amounts) T hree Months Ended T hree Months Ended September 30, 2021 September 30, 2020 Pre-T ax T ax Impact After-T ax Per Share Impact Pre-T ax T ax Impact After-T ax Per Share Impact GAAP net
Slide 16: Reconciliation of GAAP Net Income (Loss) to Non-GAAP Net Income
Reconciliation of GAAP Net Income (Loss) to Non-GAAP Net Income (Unaudited; in thousands except per share amounts) Nine Months Ended Nine Months Ended September 30, 2021 September 30, 2020 Pre-T ax T ax Impact After-T ax Per Share Impact Pre-T ax T ax Impact After-T ax Per Share Impact GAAP net inco
Slide 17: Reconciliation of GAAP Operating Income (Loss) to Non-GAAP Operating Income
Reconciliation of GAAP Operating Income (Loss) to Non-GAAP Operating Income (Unaudited; in thousands except percentages) T hree Months Ended T hree Months Ended Nine Months Ended Nine Months Ended September 30, 2021 September 30, 2020 September 30, 2021 September 30, 2020 Amounts % Sales Amounts % S
Slide 18: Footnotes to Reconciliations of GAAP Net Income and Operating Income
Footnotes to Reconciliations of GAAP Net Income (Loss) to Non-GAAP Net Income and GAAP Operating Income (Loss) to Non-GAAP Operating Income a) Represents the write-off of inventory related to the divestiture or exit of certain businesses or product lines. b) Represents performance-based share-based
Slide 19: Reconciliation of Reported Revenue to Constant Currency Revenue
Reconciliation of Reported Revenue to Constant Currency Revenue (Non-GAAP), Constant Currency Revenue, Organic (Non-GAAP), and Core Revenue (Non-GAAP) (Unaudited; in thousands except percentages) T hree Months Ended Nine Months Ended September 30, September 30, % Change 2021 2020 % Change 2021 2020
Slide 20: 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) T hree Months Ended Nine Months Ended September 30, September 30, 2021 2020 2021 2020 Reported Gross Margin 45.1 % 41.8 % 44.8 % 41.1 % Add back impact of: Amortization of intangibles 4.0 %
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