Masimo Corporation · NASDAQ:MASI
Masimo — Q2 2019 Earnings Presentation
18 slides from Masimo's earnings presentation, Jul 31, 2019
Slide 1: Second Quarter 2019 Earnings Presentation
Second Quarter 2019 Improving Patient Outcomes Earnings Presentation | July 31, 2019 Reducing the Cost of Care®
Slide 2: Forward-Looking Statements
FORWARD-LOOKING STATEMENTS These presentations contain forward-looking statements within the meaning of federal securities laws, including, among others, statements about our expectations, plans, strategies or prospects. We generally use the words “may,” “will,” “expect,” “believe,” “anticipate,” “p
Slide 3: Non-GAAP Financial Measures
NON-GAAP FINANCIAL MEASURES The non-GAAP financial measures contained herein are a supplement to the corresponding financial measures prepared in accordance with U.S. generally accepted accounting principles (GAAP). The non-GAAP financial measures presented exclude certain items that are more fully
Slide 4: Second Quarter 2019 Highlights
Second Quarter 2019 Highlights Total revenue, including royalty and other revenue, was $229.7 million Revenue Product revenue increased 13.6% to $229.5 million, or 14.8% on a constant currency basis(1) Shipments Shipments of noninvasive technology boards and monitors increased 2.9% to 60,400
Slide 5: Second Quarter 2019 Results
Second Quarter 2019 Results GAAP Non-GAAP (1) vs. Prior Year Constant (in millions; except % and EPS) Reported Q2 2019 Q2 2019 Q2 2018 Currency Product Revenue $229.5 $229.5 $202.0 13.6% 14.8% Royalty and Other Revenue 0.1 - - - - Revenue $229.7 $229.5 $202.0 13.6% 14.8% Gross Margin 67.2% 67.2% 65.
Slide 6: Second Quarter 2019 Results
Second Quarter 2019 Results Non-GAAP (1) Non-GAAP (1) Product Revenue Operating Margin EPS $230M 23.1% $0.76 21.1% $202M $0.61 Constant Currency +14.8%Growth (1) +200 bps +24.6% Q2 2018 Q2 2019 Q2 2018 Q2 2019 Q2 2018 Q2 2019 (1) Non-GAAP measures shown exclude the impact of Royalty and Other Revenu
Slide 7: Full Year 2019 Financial Guidance
Full Year 2019 Financial Guidance Total revenue, including royalty and other revenue, of $926.3 million Revenue Product revenue increasing 11.5% to $925.0 million, or 12.2% on a constant currency basis(1) GAAP operating margin of 23.9% Profitability Non-GAAP operating margin(1) improving 200
Slide 8: Full Year 2019 Financial Guidance
Full Year 2019 Financial Guidance GAAP Non-GAAP (1) vs. Prior Year Constant (in millions; except % and EPS) Reported FY 2019 FY 2019 FY 2018 Currency Product Revenue $925.0 $925.0 $829.9 11.5% 12.2% Royalty and Other Revenue 1.3 - - - - Revenue $926.3 $925.0 $829.9 11.5% 12.2% Gross Margin 66.8% 66.
Slide 9: Full Year 2019 Financial Guidance
Full Year 2019 Financial Guidance Non-GAAP (1) Non-GAAP (1) Product Revenue Operating Margin EPS $925M 24.0% $3.15 22.0% $830M $2.65 Constant Currency +12.2%Growth (1) +200 bps +18.9% FY 2018 FY 2019 FY 2018 FY 2019 FY 2018 FY 2019 (1) Non-GAAP measures shown exclude the impact of Royalty and Other
Slide 10: Appendices: GAAP to Non-GAAP Adjustments and Reconciliations
APPENDICES Improving Patient Outcomes GAAP to Non-GAAP Reducing the Cost of Care® Adjustments and Reconciliations
Slide 11: Description of Non-GAAP Adjustments
Description of Non-GAAP Adjustments The non-GAAP financial measures reflect adjustments for the following items, as well as the related income tax effects thereof: Constant currency adjustments Some of our sales agreements with foreign customers provide for payment in currencies other than the U.S.
Slide 12: Description of Non-GAAP Adjustments
Description of Non-GAAP Adjustments Realized and unrealized gains or losses from foreign currency transactions: We are exposed to foreign currency gains or losses on outstanding foreign currency denominated receivables and payables related to certain customer sales agreements, product costs and othe
Slide 13: Constant Currency Product Revenue
Constant Currency Product Revenue (1),(2) RECONCILIATION OF GAAP PRODUCT REVENUE GROWTH TO CONSTANT CURRENCY PRODUCT REVENUE GROWTH (3) (in thousands, except percentages) Q2 2018 FY 2018 Q2 2019 2019 Guidance GAAP product revenue $ 202,004 $ 829,874 $ 229,510 $ 925,000 Constant currency F/X adjustme
Slide 14: Non-GAAP Gross Margin %
Non-GAAP Gross Margin % (1),(2) RECONCILIATION OF GAAP GROSS PROFIT/MARGIN TO NON-GAAP GROSS PROFIT/MARGIN: (3) (in thousands, except percentages) Q2 2018 FY 2018 Q2 2019 2019 Guidance GAAP gross profit/margin $ 142,147 $ 574,892 $ 154,339 $ 618,601 Non-GAAP adjustments: Royalty and other revenue, n
Slide 15: Non-GAAP Operating Expense %
Non-GAAP Operating Expense % (1),(2) RECONCILIATION OF GAAP OPERATING EXPENSES TO NON-GAAP OPERATING EXPENSES: (3) (in thousands, except percentages) Q2 2018 FY 2018 Q2 2019 2019 Guidance GAAP selling, general and administrative operating expenses$ 70,450 $ 285,417 $ 78,160 Non-GAAP adjustments: Acq
Slide 16: Non-GAAP Operating Margin %
Non-GAAP Operating Margin % (1),(2) RECONCILIATION OF GAAP OPERATING INCOME/MARGIN TO NON-GAAP OPERATING INCOME/MARGIN: (3) (in thousands, except percentages) Q2 2018 FY 2018 Q2 2019 2019 Guidance GAAP operating income/margin$ 51,612 $ 208,044 $ 52,004 $ 220,950 Non-GAAP adjustments: Royalty and oth
Slide 17: Non-GAAP Net Income and Diluted EPS
Non-GAAP Net Income and Diluted EPS (1),(2) RECONCILIATION OF GAAP NET INCOME TO NON-GAAP NET INCOME: (3) (in thousands, except EPS) Q2 2018 FY 2018 Q2 2019 2019 Guidance GAAP net income $ 43,853 $ 193,543 $ 44,888 $ 188,804 Non-GAAP adjustments: Royalty and other revenue, net of related costs (9,41
Slide 18: Adjusted Free Cash Flow
Adjusted Free Cash Flow (1),(2) RECONCILIATION OF FREE CASH FLOW TO ADJUSTED FREE CASH FLOW (in thousands) Q2 2018 FY 2018 Q2 2019 Net cash provided by operating activities Net cash provided by operating activities$ 55,904 $ 239,527 $ 58,311 Purchases of property and equipment, net (5,642) (17,126)