Merit Medical Systems, Inc. · NASDAQ:MMSI

Merit Medical Systems — Q4 2018 Earnings Presentation

20 slides from Merit Medical Systems's earnings presentation, Feb 26, 2019

  1. Slide 1: Fourth Quarter and Full Year 2018 Results, 2019 Guidance

    Exhibit 99.2 Fourth Quarter and Full Year 2018 Results, 2019 Guidance FRED LAMPROPOULOS Chairman & CEO Raul Parra CFO

  2. 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

  3. 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

  4. Slide 4: Financial Summary GAAP

    Financial Summary GAAP Q4 2018 Q4 2017 YTD 2018 YTD 2017 Revenue $233.2M $190.9M $882.8M $727.9M Gross Margin 44.9% 44.9% 44.7% 44.8% Net Income $9.2M $6.8M $42.0M $27.5M EPS $0.16 $0.13 $0.78 $0.55 4

  5. Slide 5: Financial Summary Non-GAAP

    Financial Summary Non-GAAP Q4 2018 Q4 2017 YTD 2018 YTD 2017 Revenue (Constant Currency) $235.5M $190.9M $877.6M $727.9M Non-GAAP Gross Margin 49.4% 47.9% 48.9% 48.1% Non-GAAP Net Income $27.0M $16.8M $91.3M $64.3M Non-GAAP EPS $0.48 $0.33 $1.69 $1.28 5

  6. Slide 6: Q4 2018 Revenue by Market

    Q4 2018 Revenue by Market (Non-GAAP 23.9%) (Non-GAAP 18.4%) (Non-GAAP 57.7%)

  7. Slide 7: YTD 2018 Revenue by Market

    YTD 2018 Revenue by Market (Non-GAAP 18.5%) (Non-GAAP 24.9%) (Non-GAAP 56.6%)

  8. Slide 8: New Products in 2019

    New Products in 2019 – SAVI SCOUT® Wire-Free Radar Localization with SCOUT® Reflector – SAVI® Brachytherapy Breast Radiation – ClariVein® Infusion Catheter 8

  9. Slide 9: New Products in 2019

    New Products in 2019 – TEMNO Elite™ Biopsy Device – Next Generation Heartspan® Transseptal Needle – RadialFLO™ Arterial Catheter – Nu-STAR™ Tumor Ablation System 9

  10. Slide 10: New Products in 2019

    New Products in 2019 – PreludeSYNC DISTAL™ Hemostasis Device – EmboCube™ Embolization Gelatin 10

  11. Slide 11: New Products in 2019

    New Products in 2019 – Next Generation Fountain® Infusion Catheter – DualCap® Arterial Line Disinfecting Cap System 11

  12. Slide 12: New Products in 2019

    New Products in 2019 – HeRO® Graft ePTFE Arterial Graft Component – BlueFIRE™ Inflation Device with Wireless Technology – Nika™ Kyphoplasty Balloons 12

  13. 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,

  14. 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 sales of subsidiaries whose functional currency is other than the U.S. dollar at the applicable foreign exchange rates in effect

  15. 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) Three Months Ended Three Months Ended December 31, 2018 December 31, 2017 Tax Impact Per Share Tax Impact Per Share Pre-Tax (a) After-Tax Impact Pre-Tax (a) After-Tax Impact GAAP net income $

  16. 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, 2018 December 31, 2017 Tax Impact Per Share Tax Impact Per Share Pre-Tax (a) After-Tax Impact Pre-Tax (a) After-Tax Impact GAAP net income $ 49,519 $ (7,502)

  17. Slide 17: Reconciliation of Reported Revenue to Core and Constant Currency Revenue

    Reconciliation of Reported Revenue to Core Revenue (Non-GAAP), Constant Currency Revenue (Non-GAAP), and Core Revenue on a Constant Currency Basis (Non-GAAP) (Unaudited; in thousands except percentages) Three Months Ended Year Ended December 31, December 31, % Change 2018 2017 % Change 2018 2017 Rep

  18. Slide 18: Reconciliation of Reported Gross Margin to Non-GAAP Gross Margin

    Reconciliation of Reported Gross Margin to Non-GAAP Gross Margin (Non-GAAP) (Unaudited, as a percentage of reported revenue) Three Months Ended Year Ended December 31, December 31, 2018 2017 2018 2017 Reported Gross Margin 44.9% 44.9% 44.7% 44.8% Add back impact of: Amortization of intangibles 4.0%

  19. Slide 19: 2019 Guidance

    2019 GUIDANCE Financial Measure Range Reported Sales $1,011 million - $1,030 million GAAP Earnings per share $1.02 - $1.13 Gross Margin 45.6% - 46.5% Non-GAAP Earnings per share $1.97 - $2.08 Gross Margin 50.6% - 51.3% Effective Tax Rate 22.5% - 24.5% 19

  20. Slide 20: Merit. Understand. Innovate. Deliver.

    MERIT. 2DICx, Understand. Innovate. Deliver.”

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