Slide 1: Non-GAAP Measures, Adjustments and Definitions
© 2019 Masimo Non-GAAP Measures, Adjustments and Definitions Revised August 9, 2022
Slide 2: Forward-Looking Statements
© 2019 Masimo Forward-Looking Statements Masimo Corporation (“Masimo”, “MASI”, or the “Company”) cautions you that statements included in this presentation that are not a description of historical facts are forward-looking statements that involve risks, uncertainties, assumptions and other factors w
Slide 3: Non-GAAP Measures & Adjustments
© 2019 Masimo The Company uses certain non-GAAP financial measures such as constant currency product revenue growth, non-GAAP gross profit/margin percentage, non-GAAP SG&A expense percentage, non-GAAP R&D expense percentage, non-GAAP operating income/margin percentage, non-GAAP provision for income
Slide 4: Measures & Adjustments (continued)
© 2019 Masimo Non-GAAP Measures & Adjustments (continued) The Company also uses non-GAAP liquidity measures such as adjusted free cash flow, which excludes certain cash items related to the foregoing that may impact period-to-period comparability, and adjusted EBITDA, which excludes non-cash stock-b
Slide 5: Constant currency revenue adjustments; acquisition, integration and related costs
© 2019 Masimo Non-GAAP Definitions > Constant currency revenue adjustments ▪ Some of our sales agreements with foreign customers provide for payment in currencies other than the U.S. Dollar. These foreign currency revenues, when converted into U.S. Dollars, can vary significantly from period-to-peri
Slide 6: Litigation related expenses, settlements and awards
© 2019 Masimo Non-GAAP Definitions (continued) > Litigation related expenses, settlements and awards ▪ These transactions represent gains, losses, and other related costs associated with certain litigation matters, which can vary in their characteristics, frequency and significance to our operating
Slide 7: Financing related adjustments
© 2019 Masimo Non-GAAP Definitions (continued) > Financing related adjustments ▪ The Company may enter into various financial arrangements whereby costs are incurred and certain instrument features are valued and expensed accordingly but are not necessarily indicative of the on-going cash flow gener
Slide 8: Adjusted free cash flow
© 2019 Masimo Non-GAAP Definitions (continued) > Adjusted free cash flow ▪ Represents free cash flow (cash flow from operations less cash used in the purchase of property, plant and equipment) adjusted for the impact of cash receipts or payments relating to certain previously described non-GAAP adju