Merit Medical Systems, Inc. · NASDAQ:MMSI
Merit Medical Systems — Q4 2023 Earnings Presentation
20 slides from Merit Medical Systems's earnings presentation, Feb 28, 2024
Slide 1: Fourth Quarter 2023 Results
Fourth Quarter 2023 Results Merit Medical Investor Call February 28, 2024 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 Q4 2023 Q4 2022 % Change 2023 2022 % Change Revenue $324.5M $293.4M 10.6% $1,257.4M $1,151.0M 9.2% Gross Margin 46.4% 45.9% 1.2% 46.4% 45.1% 3.0% Operating Margin 10.4% 10.4% -0.1% 9.9% 7.6% 29.6% Net Income $27.6M $33.4M
Slide 5: Financial Summary: Non-GAAP
Financial Summary: Non-GAAP* In thousands, except per share amounts and percentages Q4 2023 Q4 2022 % Change 2023 2022 % Change Revenue $317.6M $293.4M 8.3% $1,249.4M $1,151.0M 8.6% (constant currency, organic) † Gross Margin 50.4% 49.5% 1.9% 50.4% 48.8% 3.4% Operating Margin 18.2% 17.8% 2.0% 18.2%
Slide 6: Revenue Breakdown – Q4
Revenue Breakdown – Q4 In thousands, except percentages Region Q4 2023 Q4 2022 $ Change % Change CC % Change* U.S. $188,542 $168,322 $20,220 12.0% 12.6% APAC 59,576 58,057 1,519 2.6% 3.8% EMEA 62,822 56,938 5,884 10.3% 6.7% Rest of World 13,575 10,098 3,477 34.4% 30.0% Total International 135,973 12
Slide 7: Revenue Breakdown – Fiscal Year
Revenue Breakdown – Fiscal Year In thousands, except percentages Region YTD 2023 YTD 2022 $ Change % Change CC % Change* U.S. $726,989 $650,559 $76,430 11.7% 11.7% APAC 245,656 240,713 4,943 2.1% 6.3% EMEA 235,704 217,681 18,023 8.3% 7.2% Rest of World 49,017 42,028 6,989 16.6% 14.6% Total Internati
Slide 8: Financial Metrics
Financial Metrics Metric Q4 2023 Q4 2022 YTD 2023 YTD 2022 Depreciation & Amortization $23.6M $20.5M $90.0M $81.8M Stock Comp (performance-based) 2.5M 1.2M 8.5M 5.5M Stock Comp (not performance-based) 3.5M 3.2M 12.7M 12.5M Operating Cash Flow 62.3M 28.0M 145.2M 114.3M Capital Expenditures-Property a
Slide 9: 2024 Financial Guidance
2024 Financial Guidance Prior Year (As Reported) Guidance Year Ended Year Ending % Change Financial Measure December 31, 2023 December 31, 2024 Y/Y Net Sales $1.257 billion $1.312 - $1.325 billion 4% - 5% Cardiovascular Segment $1.221 billion $1.272 - $1.285 billion 4% - 5% Endoscopy Segment $36.8 m
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 December 31, 2023 December 31, 2022 Pre-Tax Tax Impact After-Tax Per Share Impact Pre-Tax Tax Impact After-Tax Per Share Impact GAAP net income $ 31,467
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) Year Ended Year Ended December 31, 2023 December 31, 2022 Pre-Tax Tax Impact After-Tax Per Share Impact Pre-Tax Tax Impact After-Tax Per Share Impact GAAP net income $ 112,089 $ (17,678) $ 94,
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 Year Ended Year Ended December 31, 2023 December 31, 2022 December 31, 2023 December 31, 2022 Amounts % Sales Amounts % Sales Amounts % Sales Amou
Slide 17: Footnotes to Reconciliations of 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 corporate restructuring charges reflected within costs of sales including the write-off of inventory related to the divestiture or exit of certain businesses or
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 Year Ended December 31, December 31, % Change 2023 2022 % Change 2023 2022 Reported Revenue 10.6 % $ 324,515
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) T hree Months Ended Year Ended December 31, December 31, 2023 2022 2023 2022 Reported Gross Margin 46.4 % 45.9 % 46.4 % 45.1 % Add back impact of: Amortization of intangibles 3.9 % 3.6 % 3.8
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