Merit Medical Systems, Inc. · NASDAQ:MMSI
Merit Medical Systems — FY2020 Earnings Presentation
19 slides from Merit Medical Systems's earnings presentation, Feb 24, 2021
Slide 1: 2020 Results and 2021 Guidance
2020 Results and 2021 Guidance Merit Medical Investor Call February 24, 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 (GAAP)
Financial Summary GAAP Q4 2020 Q4 2019 FY2020 FY2019 Revenues $258.0M $257.9M $963.9M $994.9M Gross Margin 43.1% 43.3% 41.6% 43.5% Operating Margin 6.2% (1.3%) (0.2%) 1.6% Net Income (Loss) $15.4M ($4.2M) ($9.8M) $5.5M Earnings (Loss) per $0.27 ($0.08) ($0.18) $0.10 Share 4
Slide 5: Financial Summary (Non-GAAP)
Financial Summary NON-GAAP* Q4 2020 Q4 2019 FY2020 FY2019 Revenues (core constant $255.0M $257.6M $964.0M $994.4M currency) † Gross Margin* 47.9% 48.3% 47.1% 48.6% Operating Margin* 15.7% 12.7% 13.7% 11.8% Net Income* $30.8M $22.1M $93.3M $82.1M Earnings per Share* $0.54 $0.40 $1.65 $1.46 * A non-GA
Slide 6: Revenue Breakdown – QTD
Revenue Breakdown – QTD Region Q4 2020 Q4 2019 $ Change % Change CC % Change* U.S. $147,756 $148,981 $(1,225) (0.8)% (0.1%) APAC 53,679 51,825 1,854 3.6% (1.2)% EMEA 48,455 49,005 (550) (1.1)% (5.5)% Rest of World 8,114 8,111 3 0.0% 7.6% Total International 110,248 108,941 1,307 1.2% (2.5)% Total $2
Slide 7: Revenue Breakdown – FY
Revenue Breakdown – FY Region FY 2020 FY 2019 $ Change % Change CC % Change* U.S. $550,061 $575,711 $(25,650) (4.5)% (4.3%) APAC 201,520 201,290 230 0.1% (0.2)% EMEA 184,623 187,553 (2,930) (1.6)% (2.2)% Rest of World 27,671 30,298 (2,627) (8.7)% (0.8)% Total International 413,814 419,141 (5,327) (1
Slide 8: 2021 Financial Guidance
2021 Financial Guidance Financial Measure 2021 Guidance Net Sales $990 million to $1.01 billion Net Income (GAAP) $47.3 million to $55.9 million Earnings Per Share (GAAP) $0.83 to $0.98 Net Income (Non-GAAP) $104.8 million to $112.7 million Earnings Per Share (Non-GAAP) $1.84 to $1.98 Merit’s financ
Slide 9: 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: Low End High End Revenue Growth - GAAP 2.7% 4.8% Impact of FX 0.5% 0.4% Revenue Growth - Constant C
Slide 10: Appendix
Appendix 10
Slide 11: 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 12: 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 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 rate
Slide 13: 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 December 31, 2020 December 31, 2019 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 in
Slide 14: 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) Year Ended Year Ended December 31, 2020 December 31, 2019 Pre-Tax Tax Impact After-Tax Per Share Impact Pre-Tax Tax Impact After-Tax Per Share Impact GAAP net income (loss) $ (13,231) $
Slide 15: 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) Reconciliation of GAAP Net Income T hree Months Ended (Loss) T hree Months Ended to Non-GAAP Year Ended Net Income Year Ended (Unaudited, in thousands except per share amounts) De
Slide 16: 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 write-off of inventory related to the closure of the ITL Healthcare Pty Ltd. (“ITL”) procedure pack operations in Australia and suspension of Meri
Slide 17: Reconciliation of Reported Revenue to Core Revenue 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 except percentages) T hree Months Ended Year Ended December 31, December 31, % Change 2020 2019 % Change 2020 2019 R
Slide 18: 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 Year Ended December 31, December 31, 2020 2019 2020 2019 Reported Gross Margin 43.1 % 43.3 % 41.6 % 43.5 % Add back impact of: Amortization of intangibles 4.9 % 5.0 % 5.3
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