Merit Medical Systems, Inc. · NASDAQ:MMSI
Merit Medical Systems — Q1 2021 Earnings Presentation
18 slides from Merit Medical Systems's earnings presentation, Apr 29, 2021
Slide 1: First Quarter 2021 Results
First Quarter 2021 Results Merit Medical Investor Call April 29, 2021 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 2021 Q1 2020 Q1 2021 Q1 2020 Revenues $248.9M $243.5M $245.1M† $243.5M† Gross Margin 45.0% 42.6% 49.2%* 48.5%* Operating Margin 5.7% 0.6% 15.6%* 12.7%* Net Income (Loss) $11.0M $(3.2)M $29.9M* $21.1M* Earnings/(Loss) per Share $0.19 $(0.06) $0.52* $0.38* * A non-G
Slide 5: Revenue Breakdown – Q1
Revenue Breakdown – Q1 In thousands, except percentages Region Q1 2021 Q1 2020 $ Change % Change CC % Change* U.S. $141,372 $141,056 $316 0.2% 1.4% APAC 51,219 42,500 8,719 20.5% 13.9% EMEA 49,512 52,348 (2,836) (5.4)% (11.1)% Rest of World 6,810 7,621 (811) (10.6)% (7.3)% Total International 107,54
Slide 6: Q1 2021 Financial Metrics
Q1 2021 Financial Metrics Metric Q1 2021 Q1 2020 Depreciation & Amortization $21.4M $23.3M Stock Comp (performance-based) 1.0M 0.5M Stock Comp (not performance-based) 2.6M 2.3M Operating Cash Flow 35.2M 28.9M Capital Expenditures 6.2M 14.0M 6
Slide 7: 2021 Financial Guidance - Updated
2021 Financial Guidance - Updated Financial Measure 2021 Guidance Net Sales $994 million to $1,014 million Net Income (GAAP)* $47.3 million to $55.9 million Earnings Per Share (GAAP)* $0.83 to $0.98 Net Income (Non-GAAP)* $104.8 million to $112.7 million Earnings Per Share (Non-GAAP)* $1.84 to $1.98
Slide 8: 2021 Revenue Guidance: Reconciliation from '21 GAAP Growth Range to '21 Core Growth Range
2021 Revenue Guidance: Reconciliation from ’21 GAAP Growth Range to ’21 Core Growth Range The following should be considered when evaluating the GAAP revenue growth range implied by our 2021 guidance: FY Actuals Forecasted Q1 Low High Revenue Growth - GAAP 2.2% 3.1% 5.2% Impact of FX -1.6% -0.9% -0.
Slide 9: Appendix
Appendix 9
Slide 10: 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 11: 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 12: Notes to Non-GAAP Financial Measures (cont.)
Notes to Non-GAAP Financial Measures (cont.) Non-GAAP Gross Margin Non-GAAP gross margin is calculated by reducing GAAP cost of sales by amounts recorded for amortization of intangible assets and inventory mark-up related to acquisitions, divided by reported net sales. Non-GAAP Operating Income and
Slide 13: Reconciliation of GAAP Net Income (Loss) to Non-GAAP Net Income
Reconciliation of GAAP Net Income (Loss) to Non-GAAP Net Income (Unaudited; in thousands except per share amounts) Three Months Ended Three Months Ended March 31, 2021 March 31, 2020 Pre-Tax Tax Impact After-Tax Per Share Impact Pre-Tax Tax Impact After-Tax Per Share Impact GAAP net income (loss) $
Slide 14: 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) Reconciliation of GAAP Net Income Three Months Ended (Loss) to Non-GAAP Three Months Ended Net Income (Unaudited, in thousands except per share amounts) March 31, 2021 March 31, 2020 Amo
Slide 15: Footnotes to Reconciliations of GAAP Net Income and Operating Income
Footnotes to Reconciliations of GAAP Net Income (Loss) to Non-GAAP Net Income and GAAP Operating Income to Non-GAAP Operating Income a) Represents write-off of inventory related to the suspension of Merit’s distribution agreement with NinePoint Medical, Inc. b) Represents performance-based share-bas
Slide 16: Reconciliation of Reported Revenue to Constant Currency, Organic, and Core Revenue
Reconciliation of Reported Revenue to Constant Currency Revenue (Non-GAAP), Constant Currency Revenue, Organic (Non-GAAP), and Core Revenue (Non-GAAP) (Unaudited; in thousands except percentages) Three Months Ended March 31, % Change 2021 2020 Reported Revenue 2.2 % $ 248,913 $ 243,525 Add: Impact o
Slide 17: 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) Three Months Ended March 31, 2021 2020 Reported Gross Margin 45.0 % 42.6 % Add back impact of: Amortization of intangibles 4.3 % 5.3 % Inventory write-off (a) — % 0.6 Non-GAAP Gross Margin 4
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