Merit Medical Systems, Inc. (NASDAQ: MMSI), a leading global
manufacturer and marketer of healthcare technology, today announced
revenue of $315.2 million for the quarter ended
September 30, 2023, an increase of 9.8% compared to the
quarter ended September 30, 2022. Constant currency
revenue, organic, for the third quarter of 2023 increased 7.1%
compared to the prior year period.
Merit’s revenue by operating segment and product
category for the three and nine-month periods ended
September 30, 2023 and 2022 was as follows (unaudited; in
thousands, except for percentages):
|
|
Three Months Ended |
|
|
Reported |
|
|
|
|
Constant Currency * |
|
|
September 30, |
|
|
|
|
Impact of foreign |
|
September 30, |
|
|
|
|
|
2023 |
|
2022 |
|
% Change |
|
exchange |
|
2023 |
|
% Change |
Cardiovascular |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Peripheral Intervention |
|
$ |
128,385 |
|
$ |
110,698 |
|
16.0 |
% |
|
$ |
(98 |
) |
|
$ |
128,287 |
|
15.9 |
% |
Cardiac Intervention |
|
|
89,106 |
|
|
86,848 |
|
2.6 |
% |
|
|
202 |
|
|
|
89,308 |
|
2.8 |
% |
Custom Procedural Solutions |
|
|
48,624 |
|
|
45,692 |
|
6.4 |
% |
|
|
(63 |
) |
|
|
48,561 |
|
6.3 |
% |
OEM |
|
|
39,969 |
|
|
35,711 |
|
11.9 |
% |
|
|
(223 |
) |
|
|
39,746 |
|
11.3 |
% |
Total |
|
|
306,084 |
|
|
278,949 |
|
9.7 |
% |
|
|
(182 |
) |
|
|
305,902 |
|
9.7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Endoscopy |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Endoscopy Devices |
|
|
9,146 |
|
|
8,226 |
|
11.2 |
% |
|
|
1 |
|
|
|
9,147 |
|
11.2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
|
$ |
315,230 |
|
$ |
287,175 |
|
9.8 |
% |
|
$ |
(181 |
) |
|
$ |
315,049 |
|
9.7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended |
|
|
Reported |
|
|
|
|
Constant Currency * |
|
|
September 30, |
|
|
|
|
Impact of foreign |
|
September 30, |
|
|
|
|
|
2023 |
|
2022 |
|
% Change |
|
exchange |
|
2023 |
|
% Change |
Cardiovascular |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Peripheral Intervention |
|
$ |
368,077 |
|
$ |
327,426 |
|
12.4 |
% |
|
$ |
2,584 |
|
|
$ |
370,661 |
|
13.2 |
% |
Cardiac Intervention |
|
|
268,209 |
|
|
257,909 |
|
4.0 |
% |
|
|
3,214 |
|
|
|
271,423 |
|
5.2 |
% |
Custom Procedural Solutions |
|
|
145,709 |
|
|
141,047 |
|
3.3 |
% |
|
|
1,545 |
|
|
|
147,254 |
|
4.4 |
% |
OEM |
|
|
123,340 |
|
|
106,173 |
|
16.2 |
% |
|
|
(163 |
) |
|
|
123,177 |
|
16.0 |
% |
Total |
|
|
905,335 |
|
|
832,555 |
|
8.7 |
% |
|
|
7,180 |
|
|
|
912,515 |
|
9.6 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Endoscopy |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Endoscopy Devices |
|
|
27,516 |
|
|
25,011 |
|
10.0 |
% |
|
|
71 |
|
|
|
27,587 |
|
10.3 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
|
$ |
932,851 |
|
$ |
857,566 |
|
8.8 |
% |
|
$ |
7,251 |
|
|
$ |
940,102 |
|
9.6 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Merit’s GAAP gross margin for the third quarter
of 2023 was 45.1%, compared to GAAP gross margin of 44.8% for the
prior year period. Merit’s non-GAAP gross margin* for the third
quarter of 2023 was 49.8%, compared to non-GAAP gross margin* of
48.4% for the third quarter of 2022.
Merit’s GAAP net income for the third quarter of
2023 was $25.8 million, or $0.44 per share, compared to GAAP net
income of $15.3 million, or $0.27 per share, for the third quarter
of 2022. Merit’s non-GAAP net income* for the third quarter of 2023
was $43.5 million, or $0.75 per share, compared to non-GAAP net
income* of $37.0 million, or $0.64 per share, for the third quarter
of 2022.
“We delivered 7.1% constant currency, organic,
revenue growth and 9.7% constant currency total revenue growth in
the third quarter of 2023, including the contributions of our
recently acquired interventional solutions from AngioDynamics,”
said Fred P. Lampropoulos, Merit’s Chairman and Chief Executive
Officer. “Our third quarter revenue results exceeded the high end
of our expectations, reflecting broad-based strength across each of
our primary product categories, particularly in the U.S. We also
delivered significant year-over-year improvements in profitability
with non-GAAP operating income, net income and earnings per share
increasing 25%, 18% and 16%, respectively, year-over-year. We are
comfortable with our team’s ability to achieve our financial
guidance for fiscal year 2023 – which we updated this afternoon -
and expect continued progress in year three of our Foundations for
Growth Program and the related financial targets for the three-year
period ending December 31, 2023.”
As of September 30, 2023, Merit had
cash and cash equivalents of $58.7 million, total debt obligations
of $287.1 million, and available borrowing capacity of
approximately $558 million, compared to cash and cash equivalents
of $58.4 million, total debt obligations of $198.2 million, and
available borrowing capacity of approximately $523 million as of
December 31, 2022.
Updated Fiscal Year 2023 Financial Guidance
Based upon the information currently available
to Merit’s management, for the year ending December 31,
2023, absent material acquisitions, non-recurring transactions or
other factors beyond Merit’s current expectations, Merit now
expects the following:
Revenue and Earnings 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 |
|
$1.151 billion |
$1.242 - $1.251 billion |
8% - 9% |
$1.230 - $1.244 billion |
7% - 8% |
Cardiovascular Segment |
|
$1.118 billion |
$1.205 - $1.214 billion |
8% - 9% |
$1.193 - $1.207 billion |
7% - 8% |
Endoscopy Segment |
|
$32.8 million |
$36.9 - $37.0 million |
13% |
$36.8 - $37.0 million |
12% - 13% |
|
|
|
|
|
|
|
GAAP |
|
|
|
|
|
|
Net Income |
|
$74.5 million |
$89 - $92 million |
|
$76 - $81 million |
|
Earnings Per Share |
|
$1.29 |
$1.52 - $1.58 |
|
$1.30 - $1.39 |
|
|
|
|
|
|
|
|
Non-GAAP |
|
|
|
|
|
|
Net Income |
|
$155.8 million |
$171 - $174 million |
|
$164 - $170 million |
|
Earnings Per Share |
|
$2.70 |
$2.93 - $2.99 |
|
$2.81 - $2.92 |
|
*Percentage figures approximated; dollar figures
may not foot due to rounding
2023 Net Sales Guidance - % Change from Prior
Year (Constant Currency) Reconciliation*
|
|
|
|
|
|
|
Updated Guidance |
|
|
Low |
|
High |
2023 Net Sales Guidance - % Change from Prior Year (GAAP) |
|
7.9% |
|
8.7% |
Estimated impact of foreign
currency exchange rate fluctuations |
|
-0.5% |
|
-0.4% |
2023 Net Sales Guidance - %
Change from Prior Year (Constant Currency) |
|
8.4% |
|
9.1% |
*Percentage figures approximated and may not
foot due to rounding
(1) |
“Prior Guidance” refers to Merit’s full-year 2023 financial
guidance on a stand-alone basis originally issued on February 22,
2023 and as subsequently supplemented on April 26, 2023, June 8,
2023 and July 25, 2023, primarily to (i) reflect the forecasted
financial impacts of the acquisition of the dialysis catheter
portfolio and BioSentry® Biopsy Tract Sealant System from
AngioDynamics, Inc. (“AngioDynamics”) and the acquisition of the
Surfacer® Inside-Out® Access Catheter System from Bluegrass
Vascular Technologies, Inc. (“BVT”) from their respective
acquisition closing dates through December 31, 2023 and (ii) adjust
for Merit’s quarterly financial results. |
Merit’s financial guidance for the year ending
December 31, 2023 is subject to risks and uncertainties
identified in this release and Merit’s filings with the U.S.
Securities and Exchange Commission (the “SEC”).
CONFERENCE CALL
Merit will hold its investor conference call
today, Thursday, October 26, 2023, at 5:00 p.m. Eastern
(4:00 p.m. Central, 3:00 p.m. Mountain, and
2:00 p.m. Pacific). To access the conference call,
please pre-register using the following
link. Registrants will
receive confirmation with dial-in details. A live webcast
and slide deck will also be available at merit.com.
|
CONSOLIDATED BALANCE SHEETS(in thousands) |
|
|
|
|
|
|
|
|
|
September 30, |
|
|
|
|
|
2023 |
|
|
December 31, |
|
|
(Unaudited) |
|
2022 |
|
ASSETS |
|
|
|
|
|
|
Current Assets |
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
58,673 |
|
|
$ |
58,408 |
|
Trade receivables, net |
|
|
167,824 |
|
|
|
164,677 |
|
Other receivables |
|
|
13,576 |
|
|
|
12,992 |
|
Inventories |
|
|
303,923 |
|
|
|
265,991 |
|
Prepaid expenses and other assets |
|
|
27,954 |
|
|
|
22,324 |
|
Prepaid income taxes |
|
|
3,936 |
|
|
|
3,913 |
|
Income tax refund receivables |
|
|
9,432 |
|
|
|
779 |
|
Total current assets |
|
|
585,318 |
|
|
|
529,084 |
|
|
|
|
|
|
|
|
Property and equipment,
net |
|
|
383,326 |
|
|
|
382,976 |
|
Intangible assets, net |
|
|
340,193 |
|
|
|
275,872 |
|
Goodwill |
|
|
381,052 |
|
|
|
359,821 |
|
Deferred income tax
assets |
|
|
6,438 |
|
|
|
6,599 |
|
Operating lease right-of-use
assets |
|
|
63,633 |
|
|
|
65,262 |
|
Other assets |
|
|
48,545 |
|
|
|
44,352 |
|
Total Assets |
|
$ |
1,808,505 |
|
|
$ |
1,663,966 |
|
|
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY |
|
|
|
|
|
|
Current Liabilities |
|
|
|
|
|
|
Trade payables |
|
$ |
48,862 |
|
|
$ |
68,504 |
|
Accrued expenses |
|
|
119,291 |
|
|
|
123,189 |
|
Current portion of long-term debt |
|
|
3,750 |
|
|
|
11,250 |
|
Current operating lease liabilities |
|
|
11,688 |
|
|
|
11,005 |
|
Income taxes payable |
|
|
3,542 |
|
|
|
6,697 |
|
Total current liabilities |
|
|
187,133 |
|
|
|
220,645 |
|
|
|
|
|
|
|
|
Long-term debt |
|
|
282,370 |
|
|
|
186,759 |
|
Deferred income tax
liabilities |
|
|
18,458 |
|
|
|
18,462 |
|
Long-term income taxes
payable |
|
|
347 |
|
|
|
347 |
|
Liabilities related to
unrecognized tax benefits |
|
|
1,912 |
|
|
|
1,912 |
|
Deferred compensation
payable |
|
|
15,508 |
|
|
|
15,264 |
|
Deferred credits |
|
|
1,631 |
|
|
|
1,708 |
|
Long-term operating lease
liabilities |
|
|
57,455 |
|
|
|
59,736 |
|
Other long-term
obligations |
|
|
13,806 |
|
|
|
14,736 |
|
Total liabilities |
|
|
578,620 |
|
|
|
519,569 |
|
|
|
|
|
|
|
|
Stockholders' Equity |
|
|
|
|
|
|
Common stock |
|
|
695,181 |
|
|
|
675,174 |
|
Retained earnings |
|
|
547,555 |
|
|
|
480,773 |
|
Accumulated other comprehensive loss |
|
|
(12,851 |
) |
|
|
(11,550 |
) |
Total stockholders' equity |
|
|
1,229,885 |
|
|
|
1,144,397 |
|
Total Liabilities and
Stockholders' Equity |
|
$ |
1,808,505 |
|
|
$ |
1,663,966 |
|
|
CONSOLIDATED STATEMENTS OF INCOME(Unaudited; in
thousands except per share amounts) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Nine Months Ended |
|
|
September 30, |
|
September 30, |
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
Net sales |
|
$ |
315,230 |
|
|
$ |
287,175 |
|
|
$ |
932,851 |
|
|
$ |
857,566 |
|
Cost of sales |
|
|
173,031 |
|
|
|
158,602 |
|
|
|
499,508 |
|
|
|
473,019 |
|
Gross profit |
|
|
142,199 |
|
|
|
128,573 |
|
|
|
433,343 |
|
|
|
384,547 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and administrative |
|
|
86,854 |
|
|
|
89,780 |
|
|
|
277,925 |
|
|
|
259,282 |
|
Research and development |
|
|
19,646 |
|
|
|
19,221 |
|
|
|
61,089 |
|
|
|
55,074 |
|
Impairment charges |
|
|
— |
|
|
|
— |
|
|
|
270 |
|
|
|
1,672 |
|
Contingent consideration expense |
|
|
562 |
|
|
|
915 |
|
|
|
2,177 |
|
|
|
4,702 |
|
Acquired in-process research and development |
|
|
— |
|
|
|
— |
|
|
|
1,550 |
|
|
|
6,671 |
|
Total operating expenses |
|
|
107,062 |
|
|
|
109,916 |
|
|
|
343,011 |
|
|
|
327,401 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from operations |
|
|
35,137 |
|
|
|
18,657 |
|
|
|
90,332 |
|
|
|
57,146 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income (expense): |
|
|
|
|
|
|
|
|
|
|
|
|
Interest income |
|
|
181 |
|
|
|
116 |
|
|
|
533 |
|
|
|
316 |
|
Interest expense |
|
|
(4,841 |
) |
|
|
(1,831 |
) |
|
|
(10,534 |
) |
|
|
(4,180 |
) |
Other income (expense) — net |
|
|
(255 |
) |
|
|
660 |
|
|
|
291 |
|
|
|
(808 |
) |
Total other expense — net |
|
|
(4,915 |
) |
|
|
(1,055 |
) |
|
|
(9,710 |
) |
|
|
(4,672 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income
taxes |
|
|
30,222 |
|
|
|
17,602 |
|
|
|
80,622 |
|
|
|
52,474 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax expense |
|
|
4,388 |
|
|
|
2,330 |
|
|
|
13,840 |
|
|
|
11,359 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
|
$ |
25,834 |
|
|
$ |
15,272 |
|
|
$ |
66,782 |
|
|
$ |
41,115 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per common share |
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
0.45 |
|
|
$ |
0.27 |
|
|
$ |
1.16 |
|
|
$ |
0.73 |
|
Diluted |
|
$ |
0.44 |
|
|
$ |
0.27 |
|
|
$ |
1.14 |
|
|
$ |
0.71 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares
outstanding |
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
57,682 |
|
|
|
56,835 |
|
|
|
57,525 |
|
|
|
56,707 |
|
Diluted |
|
|
58,375 |
|
|
|
57,586 |
|
|
|
58,345 |
|
|
|
57,573 |
|
|
CONSOLIDATED STATEMENTS OF CASH FLOWS(In
thousands - unaudited) |
|
|
|
|
|
|
|
|
|
Nine Months Ended |
|
|
September 30, |
|
|
2023 |
|
|
2022 |
|
CASH FLOWS FROM OPERATING
ACTIVITIES: |
|
|
|
|
Net income |
|
$ |
66,782 |
|
|
$ |
41,115 |
|
Adjustments to reconcile net income to net cash provided by
operating activities: |
|
|
|
|
|
|
Depreciation and amortization |
|
|
66,359 |
|
|
|
61,312 |
|
Loss on disposition of business |
|
|
— |
|
|
|
1,389 |
|
Write-off of certain intangible assets and other long-term
assets |
|
|
461 |
|
|
|
1,733 |
|
Amortization of right-of-use operating lease assets |
|
|
8,621 |
|
|
|
7,819 |
|
Adjustments related to contingent consideration liabilities |
|
|
2,177 |
|
|
|
2,888 |
|
Acquired in-process research and development |
|
|
1,550 |
|
|
|
6,671 |
|
Stock-based compensation expense |
|
|
15,346 |
|
|
|
13,691 |
|
Other adjustments |
|
|
5,427 |
|
|
|
568 |
|
Changes in operating assets and liabilities, net of acquisitions
and divestitures |
|
|
(83,823 |
) |
|
|
(50,903 |
) |
Total adjustments |
|
|
16,118 |
|
|
|
45,168 |
|
Net cash, cash equivalents,
and restricted cash provided by operating activities |
|
|
82,900 |
|
|
|
86,283 |
|
|
|
|
|
|
|
|
CASH FLOWS FROM INVESTING
ACTIVITIES: |
|
|
|
|
|
|
Capital expenditures for property and equipment |
|
|
(27,151 |
) |
|
|
(32,539 |
) |
Cash paid in acquisitions, net of cash acquired |
|
|
(138,278 |
) |
|
|
(4,712 |
) |
Other investing, net |
|
|
(1,575 |
) |
|
|
(2,817 |
) |
Net cash, cash equivalents,
and restricted cash used in investing activities |
|
|
(167,004 |
) |
|
|
(40,068 |
) |
|
|
|
|
|
|
|
CASH FLOWS FROM FINANCING
ACTIVITIES: |
|
|
|
|
Proceeds from issuance of common stock |
|
|
11,446 |
|
|
|
6,733 |
|
Proceeds from issuance of long-term debt |
|
|
88,875 |
|
|
|
(26,257 |
) |
Long-term debt issuance costs |
|
|
(5,240 |
) |
|
|
— |
|
Contingent payments related to acquisitions |
|
|
(3,502 |
) |
|
|
(32,862 |
) |
Payment of taxes related to an exchange of common stock |
|
|
(5,123 |
) |
|
|
(2,125 |
) |
Net cash, cash equivalents,
and restricted cash provided by (used in) financing activities |
|
|
86,456 |
|
|
|
(54,511 |
) |
Effect of exchange rates on
cash |
|
|
(2,181 |
) |
|
|
(5,862 |
) |
Net increase (decrease) in
cash, cash equivalents and restricted cash |
|
|
171 |
|
|
|
(14,158 |
) |
|
|
|
|
|
|
|
CASH, CASH EQUIVALENTS AND
RESTRICTED CASH: |
|
|
|
|
|
|
Beginning of period |
|
|
60,558 |
|
|
|
67,750 |
|
End of period |
|
$ |
60,729 |
|
|
$ |
53,592 |
|
|
|
|
|
|
|
|
RECONCILIATION OF CASH, CASH
EQUIVALENTS AND RESTRICTED CASH TO THE CONSOLIDATED BALANCE
SHEETS: |
|
|
|
|
|
|
Cash and cash equivalents |
|
|
58,673 |
|
|
|
51,481 |
|
Restricted cash reported in prepaid expenses and other current
assets |
|
|
2,056 |
|
|
|
2,111 |
|
Total cash, cash equivalents
and restricted cash |
|
$ |
60,729 |
|
|
$ |
53,592 |
|
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 the non-GAAP financial measures referenced
in this release provide investors with useful information regarding
the underlying business trends and performance of Merit’s ongoing
operations and can be useful for period-over-period comparisons of
such operations. Non-GAAP financial measures used in this release
include:
- constant
currency revenue;
- constant
currency revenue, organic;
- non-GAAP gross
profit and margin;
- non-GAAP
operating income and margin;
- non-GAAP net
income;
- non-GAAP
earnings per share; and
- free cash
flow.
Merit’s management team uses these non-GAAP
financial measures to evaluate Merit’s profitability and
efficiency, to compare operating and financial results to prior
periods, to evaluate changes in the results of its operating
segments, and to measure and allocate financial resources
internally. However, Merit’s management does not consider such
non-GAAP measures in isolation or as an alternative to measures
determined in accordance with GAAP.
Readers should consider non-GAAP measures used
in this release in addition to, not as a substitute for, financial
reporting measures prepared in accordance with GAAP. These non-GAAP
financial measures generally exclude some, but not all, items that
may affect Merit’s net income. In addition, they are subject to
inherent limitations as they reflect the exercise of judgment by
management about which items are excluded. Merit believes it is
useful to exclude such items in the calculation of non-GAAP gross
profit and margin, non-GAAP operating income and margin, non-GAAP
net income, and non-GAAP earnings per share (in each case, as
further illustrated in the reconciliation tables below) because
such amounts in any specific period may not directly correlate to
the underlying performance of Merit’s business operations and can
vary significantly between periods as a result of factors such as
acquisition or other extraordinary transactions, non-cash expenses
related to amortization or write-off of previously acquired
tangible and intangible assets, certain severance expenses,
expenses resulting from non-ordinary course litigation or
administrative proceedings and resulting settlements, corporate
transformation expenses, governmental proceedings or changes in tax
or industry regulations, gains or losses on disposal of certain
assets, and debt issuance costs. Merit may incur similar types of
expenses in the future, and the non-GAAP financial information
included in this release should not be viewed as a statement or
indication that these types of expenses will not recur.
Additionally, the non-GAAP financial measures used in this release
may not be comparable with similarly titled measures of other
companies. Merit urges readers to review the reconciliations of its
non-GAAP financial measures to their most directly comparable GAAP
financial measures included herein, and not to rely on any single
financial measure to evaluate Merit’s business or results of
operations.
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 during the
comparable prior-year period and adjusting for the effects of
hedging transactions on reported revenue, which are recorded in the
U.S. dollar. The constant currency revenue adjustments of ($0.2)
million and $7.3 million to reported revenue for the three and
nine-month periods ended September 30, 2023 were
calculated using the applicable average foreign exchange rates for
the three and nine-month periods ended
September 30, 2022.
Constant Currency Revenue, Organic
Merit’s constant currency revenue, organic, is
defined, with respect to prior fiscal year periods, as GAAP
revenue. With respect to current fiscal year periods, constant
currency revenue, organic, is defined as constant currency revenue
(as defined above), less revenue from certain acquisitions. For the
three and nine-month periods ended September 30, 2023,
Merit’s constant currency revenue, organic, excludes revenues
attributable to certain assets acquired from AngioDynamics in June
2023 and BVT in May 2023.
Non-GAAP Gross Profit and Margin
Non-GAAP gross profit is calculated by reducing
GAAP cost of sales by amounts recorded for amortization of
intangible assets and inventory mark-up related to acquisitions.
Non-GAAP gross margin is calculated by dividing non-GAAP gross
profit by reported net sales.
Non-GAAP Operating Income and
Margin
Non-GAAP operating income is calculated by
adjusting GAAP operating income for certain items which are deemed
by Merit’s management to be outside of core operations and vary in
amount and frequency among periods, such as expenses related to
acquisitions or other extraordinary transactions, non-cash expenses
related to amortization or write-off of previously acquired
tangible and intangible assets, certain severance expenses,
performance-based stock compensation expenses, corporate
transformation expenses, expenses resulting from non-ordinary
course litigation or administrative proceedings and resulting
settlements, governmental proceedings, and changes in governmental
or industry regulations, as well as other items referenced in the
tables below. Non-GAAP operating margin is calculated by dividing
non-GAAP operating income by reported net sales.
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 assets,
changes in tax regulations, and other items set forth in the tables
below.
Non-GAAP EPS
Non-GAAP EPS is defined as non-GAAP net income
divided by the diluted shares outstanding for the corresponding
period.
Free Cash Flow
Free cash flow is defined as cash flow from
operations calculated in accordance with GAAP, less capital
expenditures for property and equipment calculated in accordance
with GAAP, as set forth in the consolidated statement of cash
flows.
Non-GAAP Financial Measure Reconciliations
The following tables set forth supplemental
financial data and corresponding reconciliations of non-GAAP
financial measures to Merit’s corresponding financial measures
prepared in accordance with GAAP, in each case, for the three and
nine-month periods ended September 30, 2023 and 2022. The
non-GAAP income adjustments referenced in the following tables do
not reflect non-performance-based stock compensation expense of
approximately $3.4 million and $3.2 million for the three-month
periods ended September 30, 2023 and 2022, respectively
and $9.2 million and $9.3 million for the nine-month periods ended
September 30, 2023 and 2022, respectively.
Reconciliation of GAAP Net Income to
Non-GAAP Net Income(Unaudited; in thousands except per
share amounts)
|
|
Three Months Ended |
|
|
September 30, 2023 |
|
|
Pre-Tax |
|
Tax Impact |
|
After-Tax |
|
Per Share Impact |
GAAP net income |
|
$ |
30,222 |
|
|
$ |
(4,388 |
) |
|
$ |
25,834 |
|
|
$ |
0.44 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
Cost of Sales |
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of intangibles |
|
|
13,120 |
|
|
|
(3,154 |
) |
|
|
9,966 |
|
|
|
0.17 |
|
Inventory mark-up related to acquisitions |
|
|
1,741 |
|
|
|
(418 |
) |
|
|
1,323 |
|
|
|
0.02 |
|
Operating Expenses |
|
|
|
|
|
|
|
|
|
|
|
|
Contingent consideration expense |
|
|
562 |
|
|
|
(123 |
) |
|
|
439 |
|
|
|
0.01 |
|
Amortization of intangibles |
|
|
2,329 |
|
|
|
(560 |
) |
|
|
1,769 |
|
|
|
0.03 |
|
Performance-based share-based compensation (a) |
|
|
2,403 |
|
|
|
(344 |
) |
|
|
2,059 |
|
|
|
0.04 |
|
Corporate transformation and restructuring (b) |
|
|
2,790 |
|
|
|
(670 |
) |
|
|
2,120 |
|
|
|
0.04 |
|
Acquisition-related |
|
|
107 |
|
|
|
(26 |
) |
|
|
81 |
|
|
|
0.00 |
|
Medical Device Regulation expenses (c) |
|
|
2,444 |
|
|
|
(587 |
) |
|
|
1,857 |
|
|
|
0.03 |
|
Other (d) |
|
|
(2,946 |
) |
|
|
707 |
|
|
|
(2,239 |
) |
|
|
(0.04 |
) |
Other (Income) Expense |
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of long-term debt issuance costs |
|
|
425 |
|
|
|
(102 |
) |
|
|
323 |
|
|
|
0.01 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP net income |
|
$ |
53,197 |
|
|
$ |
(9,665 |
) |
|
$ |
43,532 |
|
|
$ |
0.75 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted shares |
|
|
|
|
|
|
|
|
|
|
|
58,375 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
September 30, 2022 |
|
|
Pre-Tax |
|
Tax Impact |
|
After-Tax |
|
Per Share Impact |
GAAP net income |
|
$ |
17,602 |
|
$ |
(2,330 |
) |
|
$ |
15,272 |
|
$ |
0.27 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
Cost of Sales |
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of intangibles |
|
|
10,487 |
|
|
(2,571 |
) |
|
|
7,916 |
|
|
0.14 |
Operating Expenses |
|
|
|
|
|
|
|
|
|
|
|
|
Contingent consideration expense |
|
|
915 |
|
|
— |
|
|
|
915 |
|
|
0.02 |
Amortization of intangibles |
|
|
1,554 |
|
|
(384 |
) |
|
|
1,170 |
|
|
0.02 |
Performance-based share-based compensation (a) |
|
|
1,353 |
|
|
(70 |
) |
|
|
1,283 |
|
|
0.02 |
Corporate transformation and restructuring (b) |
|
|
8,535 |
|
|
(1,796 |
) |
|
|
6,739 |
|
|
0.12 |
Acquisition-related |
|
|
667 |
|
|
(163 |
) |
|
|
504 |
|
|
0.01 |
Medical Device Regulation expenses (c) |
|
|
3,873 |
|
|
(948 |
) |
|
|
2,925 |
|
|
0.05 |
Other (d) |
|
|
116 |
|
|
(28 |
) |
|
|
88 |
|
|
0.00 |
Other (Income) Expense |
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of long-term debt issuance costs |
|
|
151 |
|
|
(37 |
) |
|
|
114 |
|
|
0.00 |
Loss on disposal of business unit |
|
|
135 |
|
|
(32 |
) |
|
|
103 |
|
|
0.00 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP net income |
|
$ |
45,388 |
|
$ |
(8,359 |
) |
|
$ |
37,029 |
|
$ |
0.64 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted shares |
|
|
|
|
|
|
|
|
|
|
|
57,586 |
_______________________Note: Certain per share impacts may not
sum to totals due to rounding.
Reconciliation of GAAP Net Income to
Non-GAAP Net Income(Unaudited; in thousands except per
share amounts)
|
|
Nine Months Ended |
|
|
September 30, 2023 |
|
|
Pre-Tax |
|
Tax Impact |
|
After-Tax |
|
Per Share Impact |
GAAP net income |
|
$ |
80,622 |
|
|
$ |
(13,840 |
) |
|
$ |
66,782 |
|
|
$ |
1.14 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
Cost of Sales |
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of intangibles |
|
|
35,184 |
|
|
|
(8,460 |
) |
|
|
26,724 |
|
|
|
0.46 |
|
Inventory mark-up related to acquisitions |
|
|
2,001 |
|
|
|
(480 |
) |
|
|
1,521 |
|
|
|
0.03 |
|
Operating Expenses |
|
|
|
|
|
|
|
|
|
|
|
|
Contingent consideration expense |
|
|
2,177 |
|
|
|
(121 |
) |
|
|
2,056 |
|
|
|
0.04 |
|
Impairment charges |
|
|
270 |
|
|
|
— |
|
|
|
270 |
|
|
|
0.00 |
|
Amortization of intangibles |
|
|
5,959 |
|
|
|
(1,436 |
) |
|
|
4,523 |
|
|
|
0.08 |
|
Performance-based share-based compensation (a) |
|
|
6,067 |
|
|
|
(771 |
) |
|
|
5,296 |
|
|
|
0.09 |
|
Corporate transformation and restructuring (b) |
|
|
14,203 |
|
|
|
(3,409 |
) |
|
|
10,794 |
|
|
|
0.19 |
|
Acquisition-related |
|
|
5,218 |
|
|
|
(1,253 |
) |
|
|
3,965 |
|
|
|
0.07 |
|
Medical Device Regulation expenses (c) |
|
|
9,112 |
|
|
|
(2,187 |
) |
|
|
6,925 |
|
|
|
0.12 |
|
Other (d) |
|
|
(1,309 |
) |
|
|
314 |
|
|
|
(995 |
) |
|
|
(0.02 |
) |
Other (Income) Expense |
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of long-term debt issuance costs |
|
|
1,054 |
|
|
|
(253 |
) |
|
|
801 |
|
|
|
0.01 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP net income |
|
$ |
160,558 |
|
|
$ |
(31,896 |
) |
|
$ |
128,662 |
|
|
$ |
2.21 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted shares |
|
|
|
|
|
|
|
|
|
|
|
58,345 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended |
|
|
September 30, 2022 |
|
|
Pre-Tax |
|
Tax Impact |
|
After-Tax |
|
Per Share Impact |
GAAP net income |
|
$ |
52,474 |
|
$ |
(11,359 |
) |
|
$ |
41,115 |
|
$ |
0.71 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
Cost of Sales |
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of intangibles |
|
|
31,539 |
|
|
(7,733 |
) |
|
|
23,806 |
|
|
0.41 |
Operating Expenses |
|
|
|
|
|
|
|
|
|
|
|
|
Contingent consideration expense |
|
|
4,702 |
|
|
(17 |
) |
|
|
4,685 |
|
|
0.08 |
Impairment charges |
|
|
1,672 |
|
|
(318 |
) |
|
|
1,354 |
|
|
0.02 |
Amortization of intangibles |
|
|
4,749 |
|
|
(1,176 |
) |
|
|
3,573 |
|
|
0.06 |
Performance-based share-based compensation (a) |
|
|
4,354 |
|
|
(413 |
) |
|
|
3,941 |
|
|
0.07 |
Corporate transformation and restructuring (b) |
|
|
20,432 |
|
|
(4,702 |
) |
|
|
15,730 |
|
|
0.27 |
Acquisition-related |
|
|
1,901 |
|
|
(465 |
) |
|
|
1,436 |
|
|
0.02 |
Medical Device Regulation expenses (c) |
|
|
8,451 |
|
|
(2,069 |
) |
|
|
6,382 |
|
|
0.11 |
Other (d) |
|
|
7,845 |
|
|
(1,863 |
) |
|
|
5,982 |
|
|
0.10 |
Other (Income) Expense |
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of long-term debt issuance costs |
|
|
453 |
|
|
(111 |
) |
|
|
342 |
|
|
0.01 |
Loss on disposal of business unit |
|
|
1,390 |
|
|
(32 |
) |
|
|
1,358 |
|
|
0.02 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP net income |
|
$ |
139,962 |
|
$ |
(30,258 |
) |
|
$ |
109,704 |
|
$ |
1.91 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted shares |
|
|
|
|
|
|
|
|
|
|
|
57,573 |
_______________________Note: Certain per share impacts may not
sum to totals due to rounding.
Reconciliation of Reported 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, 2023 |
|
September 30, 2022 |
|
September 30, 2023 |
|
September 30, 2022 |
|
|
Amounts |
|
% Sales |
|
Amounts |
|
% Sales |
|
Amounts |
|
% Sales |
|
Amounts |
|
% Sales |
Net Sales as Reported |
|
$ |
315,230 |
|
|
|
|
|
$ |
287,175 |
|
|
|
|
$ |
932,851 |
|
|
|
|
|
$ |
857,566 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP Operating Income |
|
|
35,137 |
|
|
11.1 |
|
% |
|
|
18,657 |
|
6.5 |
% |
|
|
90,332 |
|
|
9.7 |
|
% |
|
|
57,146 |
|
6.7 |
% |
Cost of Sales |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of intangibles |
|
|
13,120 |
|
|
4.2 |
|
% |
|
|
10,487 |
|
3.7 |
% |
|
|
35,184 |
|
|
3.8 |
|
% |
|
|
31,539 |
|
3.7 |
% |
Inventory mark-up related to acquisitions |
|
|
1,741 |
|
|
0.6 |
|
% |
|
|
— |
|
— |
|
|
|
2,001 |
|
|
0.2 |
|
% |
|
|
— |
|
— |
|
Operating Expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Contingent consideration expense |
|
|
562 |
|
|
0.2 |
|
% |
|
|
915 |
|
0.3 |
% |
|
|
2,177 |
|
|
0.2 |
|
% |
|
|
4,702 |
|
0.5 |
% |
Impairment charges |
|
|
— |
|
|
— |
|
|
|
|
— |
|
— |
|
|
|
270 |
|
|
0.0 |
|
% |
|
|
1,672 |
|
0.2 |
% |
Amortization of intangibles |
|
|
2,329 |
|
|
0.7 |
|
% |
|
|
1,554 |
|
0.5 |
% |
|
|
5,959 |
|
|
0.6 |
|
% |
|
|
4,749 |
|
0.6 |
% |
Performance-based share-based compensation (a) |
|
|
2,403 |
|
|
0.8 |
|
% |
|
|
1,353 |
|
0.5 |
% |
|
|
6,067 |
|
|
0.7 |
|
% |
|
|
4,354 |
|
0.5 |
% |
Corporate transformation and restructuring (b) |
|
|
2,790 |
|
|
0.9 |
|
% |
|
|
8,535 |
|
3.0 |
% |
|
|
14,203 |
|
|
1.5 |
|
% |
|
|
20,432 |
|
2.4 |
% |
Acquisition-related |
|
|
107 |
|
|
0.0 |
|
% |
|
|
667 |
|
0.2 |
% |
|
|
5,218 |
|
|
0.6 |
|
% |
|
|
1,901 |
|
0.2 |
% |
Medical Device Regulation expenses (c) |
|
|
2,444 |
|
|
0.8 |
|
% |
|
|
3,873 |
|
1.3 |
% |
|
|
9,112 |
|
|
1.0 |
|
% |
|
|
8,451 |
|
1.0 |
% |
Other (d) |
|
|
(2,946 |
) |
|
(0.9 |
) |
% |
|
|
116 |
|
0.0 |
% |
|
|
(1,309 |
) |
|
(0.1 |
) |
% |
|
|
7,845 |
|
0.9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP Operating Income |
|
$ |
57,687 |
|
|
18.3 |
|
% |
|
$ |
46,157 |
|
16.1 |
% |
|
$ |
169,214 |
|
|
18.1 |
|
% |
|
$ |
142,791 |
|
16.7 |
% |
_______________________Note: Certain percentages may not sum to
totals due to rounding.
a) |
Represents performance-based share-based compensation expense,
including stock-settled and cash-settled awards. |
|
|
b) |
Includes consulting expenses related to the Foundations for Growth
Program, $4.3 million for write-offs of other long-term assets
associated with restructuring activities in the nine-month period
ended September 30, 2023, and other transformation costs, including
severance related to corporate initiatives. |
|
|
c) |
Represents incremental expenses incurred to comply with the E.U.
Medical Device Regulation (“MDR”). |
|
|
d) |
The three-month period ended September 30, 2023 includes an
insurance reimbursement of approximately $(3.0) million for costs
incurred in responding to an inquiry by the U.S. Department of
Justice (the “DOJ”) which was settled in 2020. The nine-month
period ended September 30, 2023 also includes acquired in-process
research and development charges of $1.6 million. The three-month
period ended September 30, 2022 includes costs to comply with
Merit’s corporate integrity agreement with the DOJ. The nine-month
period ended September 30, 2022 also includes acquired in-process
research and development charges of $6.7 million and legal costs
associated with a shareholder derivative proceeding. |
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 |
|
2023 |
|
|
2022 |
|
% Change |
|
2023 |
|
|
2022 |
Reported Revenue |
|
9.8 |
% |
$ |
315,230 |
|
|
$ |
287,175 |
|
8.8 |
% |
$ |
932,851 |
|
|
$ |
857,566 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Add:
Impact of foreign exchange |
|
|
|
|
(181 |
) |
|
|
— |
|
|
|
|
7,251 |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Constant
Currency Revenue (a) |
|
9.7 |
% |
$ |
315,049 |
|
|
$ |
287,175 |
|
9.6 |
% |
$ |
940,102 |
|
|
$ |
857,566 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less:
Revenue from certain acquisitions |
|
|
|
|
(7,344 |
) |
|
|
— |
|
|
|
|
(8,286 |
) |
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Constant
Currency Revenue, Organic (a) |
|
7.1 |
% |
$ |
307,705 |
|
|
$ |
287,175 |
|
8.7 |
% |
$ |
931,816 |
|
|
$ |
857,566 |
_______________________
(a) |
A non-GAAP financial measure. For a definition of this and other
non-GAAP financial measures, see the section of this release
entitled “Non-GAAP Financial Measures.” |
Reconciliation of Reported Gross Margin to Non-GAAP
Gross Margin (Non-GAAP)(Unaudited; as a percentage of
reported revenue)
|
|
Three Months Ended |
|
|
Nine Months Ended |
|
|
|
September 30, |
|
|
September 30, |
|
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
Reported Gross Margin |
|
45.1 |
% |
|
44.8 |
% |
|
46.5 |
% |
|
44.8 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Add back impact of: |
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of intangibles |
|
4.2 |
% |
|
3.7 |
% |
|
3.8 |
% |
|
3.7 |
% |
Inventory mark-up related to acquisitions |
|
0.6 |
% |
|
— |
% |
|
0.2 |
% |
|
— |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP Gross Margin |
|
49.8 |
% |
|
48.4 |
% |
|
50.4 |
% |
|
48.5 |
% |
_______________________Note: Certain percentages may not sum to
totals due to rounding.
ABOUT MERIT
Founded in 1987, Merit Medical Systems, Inc. is
engaged in the development, manufacture, and distribution of
proprietary disposable medical devices used in interventional,
diagnostic, and therapeutic procedures, particularly in cardiology,
radiology, oncology, critical care, and endoscopy. Merit serves
client hospitals worldwide with a domestic and international sales
force and clinical support team totaling more than 700 individuals.
Merit employs approximately 7,100 people worldwide.
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS
Statements contained in this release which are
not purely historical, including, without limitation, statements
regarding Merit’s forecasted plans, revenues, net sales, net income
(GAAP and non-GAAP), operating income and margin (GAAP and
non-GAAP), gross profit and margin (GAAP and non-GAAP), earnings
per share (GAAP and non-GAAP) and other financial measures, future
growth and profit expectations or forecasted economic conditions,
or the implementation of, and results which may be achieved
through, Merit’s Foundations for Growth Program or other expense
reduction initiatives, or the development or commercialization of
new products, are forward-looking statements within the meaning of
Section 27A of the Securities Act of 1933, as amended, and Section
21E of the Securities Exchange Act of 1934, as amended, and are
subject to risks and uncertainties such as those described in
Merit’s Annual Report on Form 10-K for the year ended December 31,
2022 (the “2022 Annual Report”) and other filings with the SEC.
Such risks and uncertainties include inherent risks and
uncertainties associated with Merit’s integration of products
acquired from AngioDynamics and BVT and its ability to achieve
anticipated financial results, product development and other
anticipated benefits of the AngioDynamics and BVT acquisitions;
uncertainties as to whether Merit will achieve sales, gross and
operating margins, net income and earnings per share performance
consistent with its forecasts associated with those acquisitions;
disruptions in Merit’s supply chain, manufacturing or sterilization
processes; reduced availability of, and price increases associated
with, commodity components and other raw materials; adverse changes
in freight, shipping and transportation expenses; negative changes
in economic and industry conditions in the United States or other
countries, including inflation; risks relating to Merit’s potential
inability to successfully manage growth through acquisitions
generally, including the inability to effectively integrate
acquired operations or products or commercialize technology
developed internally or acquired through completed, proposed or
future transactions; risks associated with Merit’s ongoing or
prospective manufacturing transfers and facility consolidations;
fluctuations in interest or foreign currency exchange rates; risks
and uncertainties associated with Merit’s information technology
systems, including the potential for breaches of security and
evolving regulations regarding privacy and data protection;
governmental scrutiny and regulation of the medical device
industry, including governmental inquiries, investigations and
proceedings involving Merit; consequences associated with a
Corporate Integrity Agreement executed between Merit and the U.S.
Office of Inspector General; difficulties, delays and expenditures
relating to development, testing and regulatory approval or
clearance of Merit’s products, including the pursuit of approvals
under the MDR, and risks that such products may not be developed
successfully or approved for commercial use; litigation and other
judicial proceedings affecting Merit; the potential of fines,
penalties or other adverse consequences if Merit’s employees or
agents violate the U.S. Foreign Corrupt Practices Act or other laws
or regulations; restrictions on Merit’s liquidity or business
operations resulting from its debt agreements; infringement of
Merit’s technology or the assertion that Merit’s technology
infringes the rights of other parties; product recalls and product
liability claims; changes in customer purchasing patterns or the
mix of products Merit sells; laws and regulations targeting fraud
and abuse in the healthcare industry; potential for significant
adverse changes in governing regulations, including reforms to the
procedures for approval or clearance of Merit’s products by the
U.S. Food & Drug Administration or comparable regulatory
authorities in other jurisdictions; changes in tax laws and
regulations in the United States or other jurisdictions;
termination of relationships with Merit’s suppliers, or failure of
such suppliers to perform; concentration of a substantial portion
of Merit’s revenues among a few products and procedures;
development of new products and technology that could render
Merit’s existing or future products obsolete; market acceptance of
new products; dependance on distributors to commercialize Merit’s
products in various jurisdictions outside the United States;
volatility in the market price of Merit’s common stock;
modification or limitation of governmental or private insurance
reimbursement policies; changes in healthcare policies or markets
related to healthcare reform initiatives; failure to comply with
applicable environmental laws; changes in key personnel; work
stoppage or transportation risks; failure to introduce products in
a timely fashion; price and product competition; fluctuations in
and obsolescence of inventory; and other factors referenced in the
2022 Annual Report and other materials filed with the SEC.
All subsequent forward-looking statements
attributable to Merit or persons acting on its behalf are expressly
qualified in their entirety by these cautionary statements. Actual
results will likely differ, and may differ materially, from
anticipated results. Financial estimates are subject to change and
are not intended to be relied upon as predictions of future
operating results. Those estimates and all other forward-looking
statements included in this document are made only as of the date
of this document, and except as otherwise required by applicable
law, Merit assumes no obligation to update or disclose revisions to
estimates and all other forward-looking statements.
TRADEMARKS
Unless noted otherwise, trademarks and
registered trademarks used in this release are the property of
Merit Medical Systems, Inc., its subsidiaries, or its
licensors.
|
|
|
|
Contacts: |
|
|
PR/Media Inquiries:Teresa Johnson
Merit Medical |
Investor Inquiries:Mike
Piccinino, CFA, IRCWestwicke - ICR |
|
+1-801-208-4295 |
+1-443-213-0509 |
|
tjohnson@merit.com |
mike.piccinino@westwicke.com |
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