Merit Medical Systems, Inc. · NASDAQ:MMSI
Merit Medical Systems — Q4 2016 Earnings Presentation
17 slides from Merit Medical Systems's earnings presentation, Feb 21, 2017
Slide 1: Fourth Quarter and FY2016 Results, 2017 Guidance
Exhibit 99.2 Fourth Quarter and FY2016 Results 2017 Guidance FRED LAMPROPOULOS Chairman & CEO BERNARD BIRKETT CFO 1
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
Slide 3: Non-GAAP Financial Measures; Trademarks
NON-GAAP FINANCIAL MEASURES Although Merit’s financial statements are prepared in accordance with accounting principles which are generally accepted in the United States of America (“GAAP”), Merit’s management believes that certain non-GAAP financial measures provide investors with useful informatio
Slide 4: Financial Summary: GAAP
Financial Summary GAAP Q4 2016 Q4 2015 FY2016 FY2015 Revenue $157.7M $138.4M $603.8M $542.1M Gross Margin 44.5% 43.6% 43.9% 43.5% Net Income $7.5M $6.4M $20.1M $23.8M EPS $0.17 $0.14 $0.45 $0.53 4
Slide 5: Financial Summary: Non-GAAP
Financial Summary Non-GAAP Q4 2016 Q4 2015 FY2016 FY2015 Revenue (Constant Currency) $159.0M $138.4M $608.8M $542.1M Revenue (Reported) $157.7M $138.4M $603.8M $542.1M Gross Margin 48.4% 45.6% 46.9% 45.6% Net Income $13.8M $10.8M $45.1M $38.5M EPS $0.31 $0.24 $1.01 $0.87 5
Slide 6: Q4 2016 Revenue by Market
Q4 2016 Revenue by Market Q4 2016 Revenue by Market in Revenue Growth: Q416 to Q415 Constant Currency 30.0% 25.9% 25.0% 23.8% EMEA 16.6% (16.3% GAAP) 20.0% Other International 15.0% 12.2% United States 11.7% 11.7% 24.2% (24.0% GAAP) 59.2% 9.4% (59.7% GAAP) 10.0% 5.0% 0.0% United States Other Interna
Slide 7: 2016 YTD Revenue by Market
2016 YTD Revenue by Market Revenue Growth: 2016 to 2015 2016 Revenue by Market in 18.0% 16.6% Constant Currency 16.0% 15.1% 14.0% 12.9% 12.9% 12.0% 10.0% 8.0% 6.0% 4.6% 4.0% 2.0% 1.3% 0.0% United States Other International EMEA 7
Slide 8: Global Reach
Global Reach Toronto, Canada Utah, USA . Maastricht, Moscow, Russia Bejing, China Pennsylvania, USA Venlo, The Netherlands no Shanghai, China The Netherlands 7 or 4 H Seoul, re; South Korea cy sOr= _O— Tokyo, Japan t — Hong Kong Guangzhou, China Versailles, France b Q Roissy, France Virginia, USA Ca
Slide 9: Growth Drivers for 2017
Growth Drivers for 2017 • New Products - CorVocet™ Biopsy System - SwiftNINJA® Steerable Microcatheter - Elation™ GI & Pulmonary Balloons - TWISTER® PLUS Rotatable Retrieval Device - PreludeEASE™ Hydrophilic Sheath Introducer - PreludeSync™ Radial Compression Device 9
Slide 10: Growth Drivers for 2017
Growth Drivers for 2017 • New Products - HeRO® Graft - Super HeRO® - True Form™ Guide Wires - Heartspan® Transseptal Sheath - Amplatz Guide Wires - Merit PAK™ Pedal Access • Wholesale to Retail - Japan 10
Slide 11: Growth Drivers for 2017
Growth Drivers for 2017 • New Products - Critical Care Products from Argon® - DualCap® Disinfection & Protection 11
Slide 12: 2017 Guidance
2017 Guidance Revenues $713M - $723M Gross Margin GAAP 45.0% - 45.5% Gross Margin Non-GAAP 48.0% - 48.5% EPS GAAP $0.54 - $0.60 EPS Non-GAAP $1.15 - $1.20 12
Slide 13: Enhance growth and profitability; optimize operational capability
1 2 3 4 Enhance growth Optimize operational Target high-growth, Disciplined, and profitability capability high-return customer-focused opportunities enterprise Through R&D, sales Through lean processes, model optimization, cost effective Through understanding, Guided by strong core cost discipline,
Slide 14: 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 15: Notes to Non-GAAP Financial Measures (continued)
NOTES TO NON-GAAP FINANCIAL MEASURES (continued) Core Revenue Merit’s core revenue is defined as reported revenue, excluding revenues attributable to the acquisition of the HeRO® Graft and DFINE, Inc. in 2016. Other Non-GAAP Financial Measure Reconciliation The following table sets forth supplementa
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