Merit Medical Systems, Inc. · NASDAQ:MMSI
Merit Medical Systems — FY2021 Earnings Presentation
21 slides from Merit Medical Systems's earnings presentation, Feb 24, 2022
Slide 1: 2021 Results and 2022 Guidance
2021 Results and 2022 Guidance Merit Medical Investor Call February 24, 2022 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 2021 Q4 2020 YTD 2021 YTD 2020 Revenue $278.5M $258.0M $1,074.8M $963.9M Gross Margin 46.3% 43.1% 45.2% 41.6% Operating Margin 7.9% 6.2% 5.7% (0.2%) Net Income (Loss) $20.6M $15.4M $48.5M ($9.8M) Earnings/(Loss) per Share $0.36 $0.27 $0.84 ($0.18) 4
Slide 5: Financial Summary (Non-GAAP)
Financial Summary NON-GAAP* Q4 2021 Q4 2020 YTD 2021 YTD 2020 Revenue $279.6M $258.0M $1,064.2M $963.9M (constant currency, organic) † Gross Margin 50.0% 47.9% 49.3% 47.1% Operating Margin 17.4% 15.7% 16.0% 13.7% Net Income $40.8M $30.8M $136.2M $93.3M Earnings per Share $0.71 $0.54 $2.37 $1.65 * Se
Slide 6: Revenue Breakdown – QTD
Revenue Breakdown – QTD In thousands, except percentages Region Q4 2021 Q4 2020 $ Change % Change CC % Change* U.S. $157,230 $147,756 $9,474 6.4% 6.6% APAC 57,784 53,679 4,105 7.6% 7.2% EMEA 54,258 48,455 5,803 12.0% 14.1% Rest of World 9,220 8,114 1,106 13.6% 14.1% Total International 121,262 110,2
Slide 7: Revenue Breakdown – YTD
Revenue Breakdown – YTD In thousands, except percentages Region YTD 2021 YTD 2020 $ Change % Change CC % Change* U.S. $608,878 $550,061 $58,817 10.7% 11.7% APAC 227,402 201,520 25,882 12.8% 8.4% EMEA 206,327 184,623 21,704 11.8% 8.2% Rest of World 32,144 27,671 4,473 16.2% 15.0% Total International
Slide 8: Financial Metrics
Financial Metrics Metric Q4 2021 Q4 2020 YTD 2021 YTD 2020 Depreciation & Amortization $20.9M $23.6M $84.1M $94.1M Stock Comp (performance-based) 1.0M 1.1M 5.0M 3.7M Stock Comp (not performance-based) 3.5M 3.0M 11.1M 10.6M Operating Cash Flow 45.8M 36.9M 147.2M 165.3M Capital Expenditures-Property a
Slide 9: 2022 Financial Guidance
2022 Financial Guidance Financial Measure Guidance Range Net Sales $1.117 billion to $1.140 billion Net Income (GAAP) $75.4 million to $84.0 million Earnings Per Share (GAAP) $1.30 to $1.45 Net Income (Non-GAAP)* $140.0 million to $148.7 million Earnings Per Share (Non-GAAP)* $2.41 to $2.56 * 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 revenue growth range implied by our 2021 guidance: FY Actuals Forecasted Q4 YTD Low High Revenue Growth - GAAP 7.9% 11.5% 10.0% 11.0% Impact of FX 0.4% -1.
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 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, 2021 December 31, 2020 Pre-Tax Tax Impact After-Tax Per Share Impact Pre-Tax Tax Impact After-Tax Per Share Impact GAAP net income $ 20,181 $
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) Year Ended Year Ended December 31, 2021 December 31, 2020 Pre-Tax Tax Impact After-Tax Per Share Impact Pre-Tax Tax Impact After-Tax Per Share Impact GAAP net income (loss) $ 53,917 $ (
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 Year Ended Year Ended December 31, 2021 December 31, 2020 December 31, 2021 December 31, 2020 Amounts % Sales Amounts % Sales Amounts % Sal
Slide 18: Footnotes to Reconciliations of 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 performance-based share-based compensation expense, including stock-settled and cash-settled awards. b) Includes severance related to corporate in
Slide 19: Reconciliation of Reported Revenue to Constant Currency, Organic and Core 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 Year Ended December 31, December 31, % Change 2021 2020 % Change 2021 2020 Reported
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 Year Ended December 31, December 31, 2021 2020 2021 2020 Reported Gross Margin 46.3 % 43.1 % 45.2 % 41.6 % Add back impact of: Amortization of intangibles 3.8 % 4.9 % 4.0
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