Merit Medical Systems, Inc. · NASDAQ:MMSI
Merit Medical Systems — Q1 2022 Earnings Presentation
17 slides from Merit Medical Systems's earnings presentation, Apr 27, 2022
Slide 1: First Quarter 2022 Results
First Quarter 2022 Results Merit Medical Investor Call April 27, 2022 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
Financial Summary GAAP NON-GAAP* Q1 2022 Q1 2021 Q1 2022 Q1 2021 Revenue $275.4M $248.9M $277.1M† $248.9M† Gross Margin 43.9% 45.0% 47.7%* 49.2%* Operating Margin 5.5% 5.7% 14.6%* 15.6%* Net Income $10.5M $11.0M $30.4M* $29.9M* Earnings per Share $0.18 $0.19 $0.53* $0.52* * See "Notes to Non-GAAP Fi
Slide 5: Revenue Breakdown – QTD
Revenue Breakdown – QTD In thousands, except percentages Region Q1 2022 Q1 2021 $ Change % Change CC % Change* U.S. $152,992 $141,372 $11,620 8.2% 7.4% APAC 60,486 51,219 9,267 18.1% 18.8% EMEA 51,989 49,512 2,477 5.0% 10.5% Rest of World 9,948 6,810 3,138 46.1% 44.2% Total International 122,423 107
Slide 6: Financial Metrics
Financial Metrics Metric Q1 2022 Q1 2021 Depreciation & Amortization $20.5M $21.4M Stock Comp (performance-based) 1.2M 1.0M Stock Comp (not performance-based) 3.4M 2.6M Operating Cash Flow 12.0M 35.2M Capital Expenditures-Property and Equipment 9.5M 6.2M 6
Slide 7: Reaffirmed 2022 Financial Guidance
Reaffirmed 2022 Financial Guidance Financial Measure Guidance Range Net Sales $1.117 billion to $1.140 billion Net Income (GAAP) $75.4 million to $84.0 million Earnings Per Share (GAAP) $1.30 to $1.45 Net Income (Non-GAAP)* $140.0 million to $148.7 million Earnings Per Share (Non-GAAP)* $2.41 to $2.
Slide 8: Appendix
Appendix 8
Slide 9: 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 10: 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 11: Notes to Non-GAAP Financial Measures (cont.)
Notes to Non-GAAP Financial Measures (cont.) Non-GAAP EPS Non-GAAP EPS is defined as non-GAAP net income divided by the diluted shares outstanding for the corresponding period. Free Cash Flow Free cash flow is defined as cash flow from operations calculated in accordance with GAAP, less capital expe
Slide 12: 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 M arch 31, 2022 M arch 31, 2021 Pre-Tax Tax Impact After-Tax Per Share Impact Pre-Tax Tax Impact After-Tax Per Share Impact GAAP net income $ 14,171 $ (
Slide 13: 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 March 31, 2022 March 31, 2021 Amounts % Sales Amounts % Sales Net Sales as Reported $ 275,415 $ 248,913 GAAP Operating Income 15,233 5.5 % 14,194
Slide 14: 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 performance-based share-based compensation expense, including stock-settled and cash-settled awards. b) Includes expenses related to the Foundations for Growth
Slide 15: 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 March 31, % Change 2022 2021 Reported Revenue 10.6 % $ 275,415 $ 248,913 Add: Impact of foreign exchange 1,71
Slide 16: 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 March 31, 2022 2021 Reported Gross Margin 43.9 % 45.0 % Add back impact of: Amortization of intangibles 3.8 % 4.3 % Non-GAAP Gross Margin 47.7 % 49.2 % Note: Certain perc
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