Merit Medical Systems, Inc. · NASDAQ:MMSI
Merit Medical Systems — Q4 2022 Earnings Presentation
20 slides from Merit Medical Systems's earnings presentation, Feb 22, 2023
Slide 1: Fourth Quarter 2022 Results
Fourth Quarter 2022 Results Merit Medical Investor Call February 22, 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 Q4 2022 Q4 2021 2022 2021 Revenue $293.4M $278.5M $1,151.0M $1,074.8M Gross Margin 45.9% 46.3% 45.1% 45.2% Operating Margin 10.4% 7.9% 7.6% 5.7% Net Income $33.4M $20.6M $74.5M $48.5M Earnings per Share $0.58 $0.36 $1.29 $0.84 4
Slide 5: Financial Summary (Non-GAAP)
Financial Summary Non-GAAP* Q4 2022 Q4 2021 2022 2021 Revenue $301.5M $278.5M $1,174.8M $1,074.8M (constant currency, organic) † Gross Margin 49.5% 50.0% 48.8% 49.3% Operating Margin 17.8% 17.4% 17.0% 16.0% Net Income $46.0M $40.8M $155.8M $136.2M Earnings per Share $0.79 $0.71 $2.70 $2.37 * See "No
Slide 6: Revenue Breakdown – Q4
Revenue Breakdown – Q4 In thousands, except percentages Region Q4 2022 Q4 2021 $ Change % Change CC % Change* U.S. $168,322 $157,230 $11,092 7.1% 5.0% APAC 58,057 57,784 273 0.5% 11.0% EMEA 56,938 54,258 2,680 4.9% 14.5% Rest of World 10,098 9,220 878 9.5% 9.2% Total International 125,093 121,262 3,
Slide 7: Revenue Breakdown – Fiscal Year
Revenue Breakdown – Fiscal Year In thousands, except percentages Region 2022 2021 $ Change % Change CC % Change* U.S. $650,559 $608,878 $41,681 6.8% 5.3% APAC 240,713 227,402 13,311 5.9% 11.9% EMEA 217,681 206,327 11,354 5.5% 14.9% Rest of World 42,028 32,144 9,884 30.7% 30.2% Total International 50
Slide 8: Financial Metrics
Financial Metrics Metric Q4 2022 Q4 2021 YTD 2022 YTD 2021 Depreciation & Amortization $20.5M $20.9M $81.8M $84.1M Stock Comp (performance-based) 1.2M 1.0M 5.5M 5.0M Stock Comp (not performance-based) 3.2M 3.5M 12.5M 11.1M Operating Cash Flow 28.0M 45.8M 114.3M 147.2M Capital Expenditures-Property a
Slide 9: 2023 Financial Guidance
2023 Financial Guidance Financial Measure Guidance Net Sales $1.194 billion to $1.210 billion Net Income (GAAP) $100 million to $105 million Earnings Per Share (GAAP) $1.72 to $1.80 Net Income (Non-GAAP)* $163 million to $168 million Earnings Per Share (Non-GAAP)* $2.80 to $2.89 * See "Notes to Non-
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 Months Ended Three M onths Ended December 31, 2022 December 31, 2021 Pre-Tax Tax Impact After-Tax Per Share Impact Pre-Tax Tax Impact After-Tax Per Share Impact GAAP net income $ 30,155
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, 2022 December 31, 2021 Pre-Tax Tax Imp act After-Tax Per Share Impact Pre-Tax Tax Impact After-Tax Per Share Impact GAAP net income $ 82,629 $ (8,113) $ 74,5
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) T hree Months Ended T hree Months Ended Year Ended Year Ended December 31, 2022 December 31, 2021 December 31, 2022 December 31, 2021 Amounts % Sales Amounts % Sales Amounts % Sales Amou
Slide 17: Footnotes to Reconciliations
Footnotes to Reconciliations of GAAP Net Income to Non-GAAP Net Income and GAAP Operating Income 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 compensation e
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) Three Months Ended Year Ended December 31, December 31, % Change 2022 2021 % Change 2022 2021 Reported Revenue 5.4 % $ 293,415 $
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 Year Ended December 31, December 31, 2022 2021 2022 2021 Reported Gross Margin 45.9 % 46.3 % 45.1 % 45.2 % Add back impact of: Amortization of intangibles 3.6 % 3.8 % 3.7
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