Merit Medical Systems, Inc. · NASDAQ:MMSI
Merit Medical Systems — FY2019 Earnings Presentation
21 slides from Merit Medical Systems's earnings presentation, 2020
Slide 1: Fourth Quarter and Full Year 2019 Results
Fourth Quarter and Full Year 2019 Results 2020 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: Merit Medical Systems at a Glance
Merit Medical Systems at a Glance NIMBLE & POSITIONED FOR CONTINUED GROWTH DIVERSIFIED PORTFOLIO AND MANUFACTURING FOOTPRINT $995M 2019 Revenue ~200 >13,000 12 Proprietary Disposable Manufacturing ~14% 10-Year CAGR Medical Product Customers facilities Worldwide Categories > 1.3M Sq. Ft. ~ 6,400 Empl
Slide 5: Merit's Investment Highlights
Merit’s Investment Highlights Leading disposable medical product solutions provider across all of our target end markets Robust innovation engine driving substantial portfolio expansion and product growth Dedicated commercial engine of ~300 direct reps and distributor relationships in over 120 count
Slide 6: Multiple Drivers of Sustainable Growth
Multiple Drivers of Sustainable Growth Domestic Market International Markets Bringing new technologies to market Global expansion through development through innovation and acquisition and leverage of commercial footprint Expand Served Opportunistic Innovation Distributor to Direct Infrastructure Ma
Slide 7: Key Merit Medical Updates
Key Merit Medical Updates ▪ Several key product regulatory approvals: – SwiftNINJA® Steerable Microcatheter (China) – InQwire® Amplatz Guide Wire (China) – Merit SureCross® Support Catheter (China) – CE mark for Cianna Scout® Surgical Guidance System (Europe) – De Novo classification order for Surfa
Slide 8: FY20 Revenue Reporting Changes
FY20 Revenue Reporting Changes Merit is providing new revenue reporting alignment beginning in 2020 to provide better visibility to investors Prior Reporting New Reporting Cardiovascular – CRM / EP – Stand-Alone Devices Cardiac Intervention – Cianna Medical – Custom Kits and Procedure Trays – Inflat
Slide 9: Financial Summary GAAP
Financial Summary GAAP Q4 2019 Q4 2018 FY 2019 FY 2018 Revenues $257.9M $233.2M $994.9M $882.8M Gross Margin 43.3% 44.9% 43.5% 44.7% Operating Margin (1.3%) 5.9% 1.6% 6.6% Net Income (Loss) ($4.2M) $9.2M $5.5M $42.0M EPS ($0.08) $0.16 $0.10 $0.78 9
Slide 10: Financial Summary Non-GAAP
Financial Summary Non-GAAP* Q4 2019 Q4 2018 FY 2019 FY 2018 Revenues $253.2M $233.2M $954.3M $882.8M (Core Constant Currency)† Gross Margin 48.3% 49.4% 48.6% 48.9% Operating Margin 12.7% 14.2% 11.8% 13.6% Net Income $22.1M $27.0M $82.1M $91.3M EPS $0.40 $0.48 $1.46 $1.69 * See "Notes to Non-GAAP Fin
Slide 11: Revenue by Geography
Revenue by Geography FULL YEAR 2019 REVENUE BREAKDOWN REVENUE GROWTH EMEA 2019 International 17.5% (YoY) 24.6% Non-GAAP 18.7% Non-GAAP 26.2% United States 57.9% Non-GAAP 55.1% Q4 2019 (QoQ) GAAP Non-GAAP Core Constant Currency* * Non-GAAP measure, representing net organic sales on a constant currenc
Slide 12: 2020 Guidance
2020 Guidance Financial Measure 2020 Guidance (Pre-Coronavirus) Net Sales $1,044 – $1,064 million Earnings Per Share (GAAP) $0.62 – $0.72 Operating Margin (GAAP) 6% – 7% Earnings Per Share (Non-GAAP) $1.58 – $1.68 Operating Margin (Non-GAAP) 13% – 14% We currently anticipate that a full quarter of c
Slide 13: 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 14: 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 revenue of subsidiaries whose functional currency is other than the U.S. dollar at the applicable foreign exchange rates in effec
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) T hree Months Ended T hree Months Ended December 31, 2019 December 31, 2018 Pre-T ax T ax Impact (a) After-T ax Per Share Impact Pre-T ax T ax Impact (a) After-T ax Per Share Impact GAAP net i
Slide 16: 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, 2019 December 31, 2018 Pre-T ax T ax Impact (a) After-T ax Per Share Impact Pre-T ax T ax Impact (a) After-T ax Per Share Impact GAAP net income $ 2,193 $ 3,
Slide 17: Reconciliation of GAAP Operating Income to Non-GAAP Operating Income
Reconciliation of GAAP Operating Income to Non-GAAP Operating Income (Unaudited, in thousands except per share amounts) T hree Months Ended T hree Months Ended Year Ended Year Ended December 31, 2019 December 31, 2018 December 31, 2019 December 31, 2018 Amounts % Sales Amounts % Sales Amounts % Sale
Slide 18: Footnotes to Reconciliations of GAAP to Non-GAAP
Footnotes to Reconciliations of GAAP Net Income to Non-GAAP Net Income and GAAP Operating Income to Non-GAAP Operating 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, rel
Slide 19: Reconciliation of Reported Revenue to Core Revenue and Constant Currency
Reconciliation of Reported Revenue to Core Revenue (Non-GAAP), Constant Currency Revenue Reconciliation of Reported Revenue to Core Revenue (Non-GAAP), Constant Currency Revenue (Non-GAAP), and Core (Non-GAAP), and Core Revenue on a Constant Currency Basis (Non-GAAP) Revenue on a Constant Currency B
Slide 20: Reconciliation of Reported Gross Margin to Non-GAAP Gross Margin
Reconciliation of Reported Gross Margin to Non-GAAP Gross Margin (Unaudited, in thousands except per share amounts) T hree Months Ended Year Ended December 31, December 31, 2019 2018 2019 2018 Reported Gross Margin 43.3 % 44.9 % 43.5 % 44.7 % Add back impact of: Amortization of intangibles 5.0 % 4.0
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