Merit Medical Systems, Inc. · NASDAQ:MMSI
Merit Medical Systems — Q2 2019 Earnings Presentation
22 slides from Merit Medical Systems's earnings presentation, Jul 25, 2019
Slide 1: Second Quarter 2019 Results; Revised 2019 Guidance
Second Quarter 2019 Results; Revised 2019 Guidance FRED LAMPROPOULOS Chairman & CEO Raul Parra CFO
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
Financial Summary GAAP Q2 2019 Q2 2018 YTD 2019 YTD 2018 Revenue $255.5M $224.8M $493.9M $427.8M Gross Margin 43.8% 44.5% 43.9% 44.0% Net Income $6.9M $10.9M $13.1M $16.2M EPS $0.12 $0.21 $0.23 $0.31 4
Slide 5: Financial Summary Non-GAAP
Financial Summary Non-GAAP* Q2 2019 Q2 2018 YTD 2019 YTD 2018 Revenue (Core, Constant Currency)† $246.5M $224.8M $469.8M $427.8M Non-GAAP Gross Margin 48.7% 48.9% 48.9% 48.2% Non-GAAP Net Income $23.8M $22.4M $44.4M $38.3M Non-GAAP EPS $0.42 $0.43 $0.79 $0.74 * See "Notes to Non-GAAP Financial Measu
Slide 6: Revised Guidance
Revised Guidance Financial Measure Prior Guidance Revised Guidance Reported Sales $1,011 - $1,030 million $1,007 - $1,029 million GAAP Earnings per share $1.02 - $1.13 $0.62 - $0.84 Gross Margin 45.6% - 46.5% 44.1% - 44.8% Non-GAAP Earnings per share $1.97 - $2.08 $1.74 - $1.97 Gross Margin 50.6% -
Slide 7: Q2 2019 Revenue by Region
Q2 2019 Revenue by Region (Non-GAAP 19.0%) (Non-GAAP 27.7%) (Non-GAAP 53.3%) * Non-GAAP measure, representing net organic sales on a constant currency basis. See "Notes to Non- GAAP Financial Measures" below for full definition of all Non-GAAP measures. 7
Slide 8: YTD 2019 Revenue by Region
YTD 2019 Revenue by Region (Non-GAAP 19.6%) (Non-GAAP 27.0%) (Non-GAAP 53.4%) * Non-GAAP measure, representing net organic sales on a constant currency basis. See "Notes to Non- GAAP Financial Measures" below for full definition of all Non-GAAP measures. 8
Slide 9: Newly Acquired Products
Newly Acquired Products – SAVI SCOUT® Wire-Free Radar Localization with SCOUT® Reflector – SAVI® Brachytherapy Breast Radiation – ClariVein® Infusion Catheter 9
Slide 10: Newly Developed Products
Newly Developed Products – TEMNO Elite™ Biopsy Device – Next Generation Heartspan® Transseptal Needle – RadialFLO™ Arterial Catheter – Nu-STAR™ Tumor Ablation System 10
Slide 11: Newly Developed Products
Newly Developed Products – PreludeSYNC DISTAL™ Hemostasis Device – Torpedo™ Gelatin Foam – EmboCube™ Embolization Gelatin 11
Slide 12: Newly Developed Products
Newly Developed Products – Impress® Uterine Artery Catheter (UAC2) Marker Band TransitionDistal Tip Hub 12
Slide 13: Newly Developed Products
Newly Developed Products – Next Generation Fountain® Infusion Catheter – DualCap® Arterial Line Disinfecting Cap System 13
Slide 14: Newly Developed Products
Newly Developed Products – HeRO® Arterial Graft Component – BlueFIRE™ Inflation Device with Wireless Technology – Kyphoplasty Balloons 14
Slide 15: 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 16: 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 17: 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 June 30, 2019 June 30, 2018 Tax Impact Per Share Tax Impact Per Share Pre-Tax (a) After-Tax Impact Pre-Tax (a) After-Tax Impact GAAP net income $ 8,999 $
Slide 18: 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) Six Months Ended Six Months Ended June 30, 2019 June 30, 2018 Tax Impact Per Share Tax Impact Per Share Pre-Tax (a) After-Tax Impact Pre-Tax (a) After-Tax Impact GAAP net income $ 15,845 $ (2,
Slide 19: Footnotes to Reconciliations of GAAP Net Income to Non-GAAP Net Income
Footnotes to Reconciliations of GAAP Net Income to Non-GAAP Net Income (a) Reflects the tax effect associated with pre-tax income and the non-GAAP adjustments. (b) Represents transaction costs and certain integration costs, including travel, related to acquisitions. (c) Represents incremental expens
Slide 20: 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) Three Months Ended Six Months Ended June 30, June 30, % Change 2019 2018 % Change 2019 2018 Repor
Slide 21: Reconciliation of Reported Gross Margin to Non-GAAP Gross Margin
Reconciliation of Reported Gross Margin to Non-GAAP Gross Margin (Non-GAAP) (Unaudited, as a percentage of reported revenue) Three Months Ended Six Months Ended June 30, June 30, 2019 2018 2019 Reported Gross Margin 43.8% 44.5% 43.9% 44.0% Add back impact of: Amortization of intangibles 4.8% 3.5% 4.
Slide 22: Merit Medical
MERIT DIC Understand. Innovate. Deliver.”
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