Merit Medical Systems, Inc. · NASDAQ:MMSI
Merit Medical Systems — Q3 2022 Earnings Presentation
20 slides from Merit Medical Systems's earnings presentation, Oct 26, 2022
Slide 1: Third Quarter 2022 Results
Third Quarter 2022 Results Merit Medical Investor Call October 26, 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 (GAAP)
Financial Summary GAAP Q3 2022 Q3 2021 YTD 2022 YTD 2021 Revenue $287.2M $267.0M $857.6M $796.3M Gross Margin 44.8% 45.1% 44.8% 44.8% Operating Margin 6.5% 6.0% 6.7% 4.9% Net Income $15.3M $12.0M $41.1M $27.8M Earnings per Share $0.27 $0.21 $0.71 $0.49 4
Slide 5: Financial Summary (Non-GAAP)
Financial Summary Non-GAAP* Q3 2022 Q3 2021 YTD 2022 YTD 2021 Revenue $295.2M $267.0M $873.3M $796.3M (constant currency, organic) † Gross Margin 48.4% 49.1% 48.5% 49.0% Operating Margin 16.1% 14.8% 16.7% 15.6% Net Income $37.0M $30.2M $109.7M $95.4M Earnings per Share $0.64 $0.52 $1.91 $1.67 * See
Slide 6: Revenue Breakdown – Q3
Revenue Breakdown – Q3 In thousands, except percentages Region Q3 2022 Q3 2021 $ Change % Change CC % Change* U.S. $164,571 $151,505 $13,066 8.6% 6.6% APAC 60,175 56,950 3,225 5.7% 13.7% EMEA 52,060 49,733 2,327 4.7% 17.3% Rest of World 10,369 8,833 1,536 17.4% 18.8% Total International 122,604 115,
Slide 7: Revenue Breakdown – YTD
Revenue Breakdown – YTD In thousands, except percentages Region YTD 2022 YTD 2021 $ Change % Change CC % Change* U.S. $482,237 $451,648 $30,589 6.8% 5.4% APAC 182,656 169,618 13,038 7.7% 12.3% EMEA 160,743 152,068 8,675 5.7% 15.0% Rest of World 31,930 22,925 9,005 39.3% 38.6% Total International 375
Slide 8: Financial Metrics
Financial Metrics Metric Q3 2022 Q3 2021 YTD 2022 YTD 2021 Depreciation & Amortization $20.4M $20.8M $61.3M $63.2M Stock Comp (performance-based) 1.4M 1.6M 4.4M 4.0M Stock Comp (not performance-based) 3.2M 3.2M 9.3M 7.6M Operating Cash Flow 35.5M 25.0M 86.3M 101.4M Capital Expenditures-Property and
Slide 9: Updated 2022 Financial Guidance
Updated 2022 Financial Guidance Financial Measure Revised Guidance Prior Guidance Net Sales $1.145 billion to $1.151 billion $1.123 billion to $1.135 billion Net Income (GAAP) $64.8 million to $68.3 million $62.4 million to $68.3 million Earnings Per Share (GAAP) $1.13 to $1.19 $1.08 to $1.18 Net In
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) 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 September 30, 2022 September 30, 2021 Pre-Ta
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) Nine Months Ended Nine Months Ended September 30, 2022 September 30, 2021 Pre-Tax Tax Impact After-Tax Per Share Impact Pre-Tax Tax Impact After-Tax Per Share Impact GAAP net income $ 52,474 $
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 Months Ended Three Months Ended Nine Months Ended Nine Months Ended September 30, 2022 September 30, 2021 September 30, 2022 September 30, 2021 Amounts % Sales Amounts % Sales Amou
Slide 17: Footnotes to Reconciliations of GAAP to Non-GAAP
Footnotes to Reconciliations of GAAP Net Income to Non-GAAP Net Income and GAAP Operating Income to Non-GAAP Operating Income a) Represents the write-off of inventory related to the divestiture or exit of certain businesses or product lines. b) Represents performance-based share-based compensation e
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) Three Months Ended Nine Months Ended September 30, September 30, % Change 2022 2021 % Change 2022 2021 Reported Revenue 7.5 % $ 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) Three Months Ended Nine Months Ended September 30, September 30, 2022 2021 2022 2021 Reported Gross Margin 44.8 % 45.1 % 44.8 % 44.8 % Add back impact of: Amortization of intangibles 3.7 % 4
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