Merit Medical Systems, Inc. (NASDAQ: MMSI), a leading global
manufacturer and marketer of healthcare technology, today announced
projected preliminary unaudited revenue in the range of
approximately $1.255 to $1.259 billion for the year ended December
31, 2023, a projected increase of approximately 9.0% to 9.4%
compared to revenue reported for the year ended December 31, 2022.
Projected preliminary unaudited constant currency revenue for the
year ended December 31, 2023, increased in the range of
approximately 9.6% to 9.9% compared to the prior year period.
Merit plans to announce its financial results
for the fourth quarter and year ended December 31, 2023, and issue
fiscal year 2024 guidance after the close of the stock market on
Wednesday, February 28, 2024. Merit plans to hold its investor
conference call on the same day (Wednesday, February 28, 2024) 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 can be accessed
using this link. A link to both
register for the conference call and view the webcast will be made
available at www.merit.com.
Non-GAAP Financial Measure
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 measure of constant
currency revenue referenced in this release may 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.
Merit’s management team uses this non-GAAP
financial measure 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 this non-GAAP measure in
isolation or as an alternative to measures determined in accordance
with GAAP.
Readers should consider the non-GAAP measure
used in this release in addition to, not as a substitute for,
financial reporting measures prepared in accordance with GAAP. This
non-GAAP financial measure generally excludes some, but not all,
items that may affect Merit’s net income. In addition, it is
subject to inherent limitations as it reflects the exercise of
judgment by management about which items are excluded. The non-GAAP
financial measure used in this release may not be comparable with
similarly titled measures of other companies. Merit urges readers
to review the reconciliation of the non-GAAP financial measure to
its most directly comparable GAAP financial measure 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 preliminary approximate constant currency revenue
adjustment of $6.4 million to preliminary approximate reported
revenue for the twelve-month period ended December 31, 2023 was
calculated using the applicable average foreign exchange rates for
the twelve-month period ended December 31, 2022.
Non-GAAP Financial Measure Reconciliation
The following table sets forth supplemental
financial data and corresponding reconciliation of non-GAAP
constant currency revenue to Merit’s corresponding financial
measure prepared in accordance with GAAP for the twelve-month
period ended December 31, 2023.
Reconciliation of Preliminary Approximate Reported
Revenue Range to Preliminary Approximate Constant Currency Revenue
Range (Non-GAAP)(Unaudited; in thousands
except percentages)
|
|
|
|
|
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|
|
|
|
|
|
|
Year Ended |
|
|
|
|
December 31, |
|
|
% Change |
|
2023 |
|
2022 |
Preliminary Approximate
Reported Revenue Range |
|
9.0 - 9.4 |
% |
$ |
1,255,000 - 1,259,000 |
|
$ |
1,150,981 |
|
|
|
|
|
|
|
|
|
Add: Impact of foreign
exchange |
|
|
|
|
6,400 |
|
|
— |
|
|
|
|
|
|
|
|
|
Preliminary Approximate
Constant Currency Revenue (a) |
|
9.6 - 9.9 |
% |
$ |
1,261,400 - 1,265,400 |
|
$ |
1,150,981 |
|
|
|
|
|
|
|
|
|
(a) A non-GAAP financial
measure. For a definition of this non-GAAP financial measure, see
the section of this release entitled “Non-GAAP Financial
Measure.”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 projected revenue and constant currency revenue
(non-GAAP) 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, Inc. and Bluegrass Vascular
Technologies, Inc. (“BVT”) and its ability to achieve anticipated
financial results, product development and other anticipated
benefits of 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 European Union Medical Device Regulation, 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.
Merit does not, as a matter of course, publicly
disclose projected preliminary revenue, whether on an annual or
quarterly basis, due to the unpredictability of the underlying
assumptions and estimates. Merit’s announcement of projected
preliminary unaudited revenue information in this release should
not be regarded as an indication that Merit considered, or now
considers, projected preliminary revenue information to be material
or to be a reliable prediction of actual future results, and the
projected preliminary revenue information set forth in this release
should not be relied upon as such. Readers should not expect Merit
to make similar disclosures of projected preliminary revenue
information in the future.
Merit cautions that the projected preliminary
unaudited revenue information set forth in this release is subject
to adjustment and based upon subjective decisions and assumptions.
Accordingly, there can be no assurance that the results reflected
in the projected preliminary unaudited revenue information will be
realized, and actual results may differ materially from those
reflected in such projected preliminary revenue information. As a
result, the projected preliminary unaudited revenue information
should not be relied on as necessarily predictive of Merit’s actual
results.
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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