Merit Medical Systems, Inc. · NASDAQ:MMSI
Merit Medical Systems — Q2 2021 Earnings Presentation
21 slides from Merit Medical Systems's earnings presentation, Jul 29, 2021
Slide 1: Second Quarter 2021 Results
Second Quarter 2021 Results Merit Medical Investor Call July 29, 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 Q2 2021 Q2 2020 YTD 2021 YTD 2020 Revenues $280.3M $218.4M $529.2M $461.9M Gross Margin 44.3% 38.6% 44.6% 40.7% Operating Margin 3.2% (8.7%) 4.4% (3.8%) Net Income (Loss) $4.9M ($19.1)M $15.9M ($22.2)M Earnings/(Loss) per Share $0.09 ($0.34) $0.28 ($0.40) 4
Slide 5: Financial Summary (Non-GAAP)
Financial Summary NON-GAAP* Q2 2021 Q2 2020 YTD 2021 YTD 2020 Revenues $274.1M $218.4M $519.1M $461.9M (constant currency, organic) † Gross Margin 48.7% 44.7% 48.9% 46.7% Operating Margin 16.3% 11.2% 16.0% 12.0% Net Income $35.3M $17.4M $65.2M $38.5M Earnings per Share $0.62 $0.31 $1.14 $0.69 * See
Slide 6: Revenue Breakdown – QTD
Revenue Breakdown – QTD In thousands, except percentages Region Q2 2021 Q2 2020 $ Change % Change CC % Change* U.S. $158,771 $118,140 $40,631 34.4% 36.1% APAC 61,449 55,011 6,438 11.7% 4.5% EMEA 52,823 40,047 12,776 31.9% 22.3% Rest of World 7,282 5,173 2,109 40.8% 33.6% Total International 121,554
Slide 7: Revenue Breakdown – YTD
Revenue Breakdown – YTD In thousands, except percentages Region YTD 2021 YTD 2020 $ Change % Change CC % Change* U.S. $300,143 $259,196 $40,947 15.8% 17.2% APAC 112,668 97,511 15,157 15.5% 8.6% EMEA 102,335 92,395 9,940 10.8% 3.4% Rest of World 14,092 12,794 1,298 10.1% 9.2% Total International 229,
Slide 8: Q2 2021 Financial Metrics
Q2 2021 Financial Metrics Metric Q2 2021 Q2 2020 YTD 2021 YTD 2020 Depreciation & Amortization $21.0M $23.7M $42.4M $47.0M Stock Comp (performance-based) 1.3M 1.1M 2.4M 1.5M Stock Comp (not performance-based) 1.8M 2.4M 4.4M 4.7M Operating Cash Flow 41.2M 44.4M 76.4M 73.2M Capital Expenditures 6.6M 1
Slide 9: 2021 Financial Guidance - Updated
2021 Financial Guidance - Updated Financial Measure Prior Guidance Revised Guidance Net Sales $994 million to $1,014 million $1,060 million to $1,070 million Net Income (GAAP) $47.3 million to $55.9 million $43.2 million to $51.8 million Earnings Per Share (GAAP) $0.83 to $0.98 $0.75 to $0.91 Net In
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 Q2 YTD Low High Revenue Growth - GAAP 28.4% 14.6% 10.0% 11.0% Impact of FX -2
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 June 30, 2021 June 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 income (lo
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) Six Months Ended Six Months Ended June 30, 2021 June 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 income (loss) $
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 Six Months Ended Six Months Ended June 30, 2021 June 30, 2020 June 30, 2021 June 30, 2020 Amounts % Sales Amounts % Sales Amounts % Sales A
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 Six Months Ended June 30, June 30, % Change 2021 2020 % Change 2021 2020 Reported Re
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 Six Months Ended June 30, June 30, 2021 2020 2021 2020 Reported Gross Margin 44.3 % 38.6 % 44.6 % 40.7 % Add back impact of: Amortization of intangibles 3.8 % 5.9 % 4.0 %
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