Merit Medical Systems, Inc. · NASDAQ:MMSI
Merit Medical Systems — Q1 2018 Earnings Presentation
18 slides from Merit Medical Systems's earnings presentation, Apr 25, 2018
Slide 1: First Quarter 2018 Results
FRED LAMPROPOULOS Chairman & CEO BERNARD BIRKETT CFO First Quarter 2018 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
Q1 2018 Q1 2017 Revenue $203.0M $171.1M Gross Margin 43.4% 44.4% Net Income $5.3M $14.8M EPS $0.10 $0.32 Financial Summary GAAP 4
Slide 5: Financial Summary Non-GAAP
Financial Summary Non-GAAP 5 Q1 2018 Q1 2017 Revenue (Constant Currency) $197.9M $171.1M Revenue (Reported) $203.0M $171.1M Gross Margin 47.5% 48.3% Net Income $15.9M $12.7M EPS $0.31 $0.28
Slide 6: Q1 2018 Revenue by Market
Q1 2018 Revenue by Market (GAAP 19.3%) (GAAP 56.3%) (GAAP 24.4%) 6 (GAAP 24.4%) ( AAP 19.3 ) (GAAP 56.3%) (GAAP 26.0%) (GAAP 19.8%) (GAAP 54.2%) (GAAP 26.0%) (GAAP 19.8%) (GAAP 54.2%)
Slide 7: Assets Purchased from Becton, Dickinson and Company
Assets Purchased from Becton, Dickinson and Company – Achieve® Automatic Biopsy System – Pink Achieve™ Automatic Biopsy System – Original Temno™ Biopsy Device – Temno Evolution® Biopsy Device – Adjustable Coaxial Temno™ (ACT) Biopsy – Aspira® Drainage System 7
Slide 8: New Products in 2018
New Products in 2018 – FLO40XR™ Hemostasis Valve – PreludeSYNC DISTAL™ Radial Compression Device – Prelude Pursuit™ Splittable Sheath Introducer – Prelude IDeal™ Hydrophilic Sheath Introducer – Prelude Choice™ Hemostasis Valve Adapter 8
Slide 9: New Products in 2018
– DiamondTOUCH™ Inflation Device – BasixTAU™ Inflation Device – Enhanced CorVocet™ Biopsy Device – Bone & Spine Biopsy Products – ReSolve CirQ™ Nephrostomy Catheter – FastBreak™ Breakaway Connector New Products in 2018 9
Slide 10: NvisionVLE Imaging System
10 – Breakthrough Design – High-Speed Optical Probe – Real-Time Image-Guided Tissue Marking NvisionVLE® Imaging System
Slide 11: Global Reach
Global Reach Toronto, Canada Maastricht, Pennsylvania, USA. Venlo, The Netherlands The Netherlands Moscow, Russia Being, China Utah, USA Shanghai, China Seoul, California, USA —G Fra 2O— south Korea a . Hong Kong Guangzhou, China Istanbul, Turkey, Sao Paulo, Kuala Lumpur, © Rad Brazil ‘Malaysia O Ma
Slide 12: Enhance growth and profitability
1 2 3 4 Enhance growth and profitability Through R&D, sales model optimization, cost discipline, and operational focus Optimize operational capability Through lean processes, cost effective environments, and asset utilization Target high-growth, high-return opportunities Through understanding, innov
Slide 13: 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 14: 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 15: Reconciliation of GAAP Net Income to Non-GAAP Net Income
15 Reconciliation of GAAP Net Income to Non-GAAP Net Income (Unaudited, in thousands except per share amounts) Three Months Ended Three Months Ended March 31, 2018 March 31, 2017 Pre-Tax Tax Impact (a) After-Tax Per Share Impact Pre-Tax Tax Impact (a) After-Tax Per Share Impact GAAP net income $ 6,3
Slide 16: Reconciliation of Reported Revenue to Core Revenue
16 (a) The constant currency revenue adjustment of $(5.2) million to reported revenue and to core revenue for the three-month period ended March 31, 2018 was calculated using the applicable average foreign exchange rates for the three-month period ended March 31, 2017. (b) Represents revenue from th
Slide 17: Reconciliation of Reported Gross Margin to Non-GAAP Gross Margin
17 Reconciliation of Reported Gross Margin to Non-GAAP Gross Margin (Non-GAAP) (Unaudited, as a percentage of reported revenue) Three Months Ended March 31, 2018 2017 Reported Gross Margin 43.4% 44.4% Add back impact of: Amortization of intangibles 3.2% 2.8% Inventory mark-up related to acquisitions
Slide 18: Slide 18
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