Merit Medical Systems, Inc. · NASDAQ:MMSI
Merit Medical Systems — Q3 2023 Earnings Presentation
20 slides from Merit Medical Systems's earnings presentation, Oct 26, 2023
Slide 1: Third Quarter 2023 Results
Third Quarter 2023 Results Merit Medical Investor Call October 26, 2023 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 In thousands, except per share amounts and percentages Q3 2023 Q3 2022 % Change YTD 2023 YTD 2022 % Change Revenue $315.2M $287.2M 9.8% $932.9M $857.6M 8.8% Gross Margin 45.1% 44.8% 0.8% 46.5% 44.8% 3.6% Operating 11.1% 6.5% 71.6% 9.7% 6.7% 45.3% Margin Net Income $25.8M $15.
Slide 5: Financial Summary: Non-GAAP
Financial Summary: Non-GAAP* In thousands, except per share amounts and percentages Q3 2023 Q3 2022 % Change YTD 2023 YTD 2022 % Change Revenue $307.7M $287.2M 7.1% $931.8M $857.6M 8.7% (constant currency, organic) † Gross Margin 49.8% 48.4% 2.9% 50.4% 48.5% 4.0% Operating Margin 18.3% 16.1% 13.9% 1
Slide 6: Revenue Breakdown – Q3
Revenue Breakdown – Q3 In thousands, except percentages Region Q3 2023 Q3 2022 $ Change % Change CC % Change* U.S. $187,505 $164,571 $22,934 13.9% 14.3% APAC 59,831 60,175 (344) -0.6% 3.2% EMEA 55,206 52,060 3,146 6.0% 1.1% Rest of World 12,688 10,369 2,319 22.4% 17.8% Total International 127,725 12
Slide 7: Revenue Breakdown – YTD
Revenue Breakdown – YTD In thousands, except percentages Region YTD 2023 YTD 2022 $ Change % Change CC % Change* U.S. $538,447 $482,237 $56,210 11.7% 11.3% APAC 186,081 182,656 3,425 1.9% 7.1% EMEA 172,882 160,743 12,139 7.6% 7.4% Rest of World 35,441 31,930 3,511 11.0% 9.7% Total International 394,
Slide 8: Financial Metrics
Financial Metrics Metric Q3 2023 Q3 2022 YTD 2023 YTD 2022 Depreciation & Amortization $24.0M $20.4M $66.4M $61.3M Stock Comp (performance-based) 2.4M 1.4M 6.1M 4.4M Stock Comp (not performance-based) 3.4M 3.2M 9.2M 9.3M Operating Cash Flow 51.1M 35.5M 82.9M 86.3M Capital Expenditures-Property and E
Slide 9: Updated 2023 Financial Guidance
Updated 2023 Financial Guidance Prior Year (As Reported) Updated Guidance Prior Guidance (1) Year Ended Year Ending % Change Year Ending % Change Financial Measure December 31, 2022 December 31, 2023 Y/Y December 31, 2023 Y/Y Net Sales $1.151 billion $1.242 - $1.251 billion 8% - 9% $1.230 - $1.244 b
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 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 13: Notes to Non-GAAP Financial Measures (cont.)
Notes to Non-GAAP Financial Measures (cont.) Non-GAAP Net Income Non-GAAP net income is calculated by adjusting GAAP net income for the items set forth in the definition of non-GAAP operating income above, as well as for expenses related to debt issuance costs, gains or losses on disposal of certain
Slide 14: 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 M onths Ended Three M onths Ended September 30, 2023 September 30, 2022 Pre-Tax Tax Impact After-Tax Per Share Impact Pre-Tax Tax Impact After-Tax Per Share Impact GAAP net income $ 30,2
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) Nine M onths Ended Nine M onths Ended September 30, 2023 September 30, 2022 Pre-Tax Tax Impact After-Tax Per Share Impact Pre-Tax Tax Impact After-Tax Per Share Impact GAAP net income $ 80,622
Slide 16: Reconciliation of GAAP Operating Income to Non-GAAP Operating Income
Reconciliation of GAAP Operating Income to Non-GAAP Operating Income (Unaudited; in thousands except percentages) Three M onths Ended Three M onths Ended Nine M onths Ended Nine M onths Ended September 30, 2023 September 30, 2022 September 30, 2023 September 30, 2022 Amounts % Sales Amounts % Sales
Slide 17: Footnotes to Reconciliations of GAAP Net Income and Operating Income
Footnotes to Reconciliations of GAAP Net Income to Non-GAAP Net Income and GAAP Operating Income to Non-GAAP Operating Income a) Represents performance-based share-based compensation expense, including stock-settled and cash-settled awards. b) Includes consulting expenses related to the Foundations
Slide 18: Reconciliation of Reported Revenue to Constant Currency Revenue
Reconciliation of Reported Revenue to Constant Currency Revenue (Non-GAAP), and Constant Currency Revenue, Organic (Non-GAAP) (Unaudited; in thousands except percentages) T hree Months Ended Nine Months Ended September 30, September 30, % Change 2023 2022 % Change 2023 2022 Reported Revenue 9.8 % $
Slide 19: 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) Three Months Ended Nine Months Ended September 30, September 30, 2023 2022 2023 2022 Reported Gross Margin 45.1 % 44.8 % 46.5 % 44.8 % Add back impact of: Amortization of intangibles 4.2 % 3
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