Merit Medical Systems, Inc. · NASDAQ:MMSI
Merit Medical Systems — Q2 2023 Earnings Presentation
20 slides from Merit Medical Systems's earnings presentation, Jul 25, 2023
Slide 1: Second Quarter 2023 Results
Second Quarter 2023 Results Merit Medical Investor Call July 25, 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 Q2 2023 Q2 2022 YTD 2023 YTD 2022 Revenue $320.1M $295.0M $617.6M $570.4M Gross Margin 47.7% 45.8% 47.1% 44.9% Operating Margin 9.0% 7.9% 8.9% 6.7% Net Income $20.2M $15.3M $40.9M $25.8M Earnings per Share $0.35 $0.27 $0.70 $0.45 4
Slide 5: Financial Summary (Non-GAAP)
Financial Summary Non-GAAP* Q2 2023 Q2 2022 YTD 2023 YTD 2022 Revenue $321.7M $295.0M $624.1M $570.4M (constant currency, organic) † Gross Margin 51.4% 49.3% 50.8% 48.6% Operating Margin 19.9% 19.1% 18.1% 16.9% Net Income $47.6M $42.3M $85.1M $72.7M Earnings per Share $0.81 $0.73 $1.46 $1.26 * See "
Slide 6: Revenue Breakdown – Q2
Revenue Breakdown – Q2 In thousands, except percentages Region Q2 2023 Q2 2022 $ Change % Change CC % Change* U.S. $179,582 $164,674 $14,908 9.1% 8.8% APAC 68,713 61,995 6,718 10.8% 16.2% EMEA 59,623 56,694 2,929 5.2% 4.6% Rest of World 12,138 11,613 525 4.5% 4.6% Total International 140,474 130,302
Slide 7: Revenue Breakdown – YTD
Revenue Breakdown – YTD In thousands, except percentages Region YTD 2023 YTD 2022 $ Change % Change CC % Change* U.S. $350,942 $317,666 $33,276 10.5% 9.8% APAC 126,249 122,481 3,768 3.1% 9.0% EMEA 117,676 108,683 8,993 8.3% 10.4% Rest of World 22,754 21,561 1,193 5.5% 5.9% Total International 266,67
Slide 8: Financial Metrics
Financial Metrics Metric Q2 2023 Q2 2022 YTD 2023 YTD 2022 Depreciation & Amortization $21.8M $20.4M $42.3M $40.9M Stock Comp (performance-based) 2.4M 1.8M 3.7M 3.0M Stock Comp (not performance-based) 3.2M 2.7M 5.8M 6.1M Operating Cash Flow 17.3M 38.8M 31.8M 50.8M Capital Expenditures-Property and E
Slide 9: Updated 2023 Financial Guidance
Updated 2023 Financial Guidance Prior Year (As Reported) Updated Guidance Prior Guidance (1) Year Ended Year Ending % Change Year Ending % Change Financial Measure December 31, 2022 December 31, 2023 Y/Y December 31, 2023 Y/Y Net Sales(2) $1.151 billion $1.230 - $1.244 billion 7% - 8% $1.230 - $1.24
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 June 30, 2023 June 30, 2022 Pre-Tax Tax Impact After-Tax Per Share Impact Pre-Tax Tax Impact After-Tax Per Share Impact GAAP net income $ 24,900 $ (4,65
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) Six M onths Ended Six M onths Ended June 30, 2023 June 30, 2022 Pre-Tax Tax Impact After-Tax Per Share Impact Pre-Tax Tax Impact After-Tax Per Share Impact GAAP net income $ 50,400 $ (9,452) $
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 Six M onths Ended Six M onths Ended June 30, 2023 June 30, 2022 June 30, 2023 June 30, 2022 Amounts % Sales Amounts % Sales Amounts % Sales Amount
Slide 17: Footnotes to Reconciliations of GAAP Net 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 consulting expenses related to the Foundations
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 Six Months Ended June 30, June 30, % Change 2023 2022 % Change 2023 2022 Reported Revenue 8.5 % $ 320,056 $ 2
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 Six Months Ended June 30, June 30, 2023 2022 2023 2022 Reported Gross Margin 47.7 % 45.8 % 47.1 % 44.9 % Add back impact of: Amortization of intangibles 3.6 % 3.6 % 3.6 %
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