Merit Medical Reports Results For Second Quarter June 30, 2023

• Q2 2023 reported revenue of $320.1 million, up 8.5% year-over-year
• Q2 2023 constant currency revenue* up 9.4% year over year
• Q2 2023 constant currency revenue, organic* up 9.1% year-over-year
• Q2 2023 GAAP operating margin of 9.0%, compared to 7.9% in Q2 2022
• Q2 2023 non-GAAP operating margin* of 19.9%, compared to 19.1% in Q2 2022
• Q2 2023 GAAP EPS $0.35, compared to $0.27 in Q2 2022
• Q2 2023 non-GAAP EPS* of $0.81, compared to $0.73 in Q2 2022

* Constant currency revenue; constant currency revenue, organic; non-GAAP EPS; non-GAAP net income; non-GAAP operating income and margin; non-GAAP gross profit and margin; and free cash flow are non-GAAP financial measures. A reconciliation of these financial measures to their most directly comparable GAAP financial measures is included under the heading “Non-GAAP Financial Measures” below.

SOUTH JORDAN, Utah, July 25, 2023 (GLOBE NEWSWIRE) -- Merit Medical Systems, Inc. ( MMSI), a leading global manufacturer and marketer of healthcare technology, today announced revenue of $320.1 million for the quarter ended June 30, 2023, an increase of 8.5% compared to the quarter ended June 30, 2022. Constant currency revenue, organic, for the second quarter of 2023 increased 9.1% compared to the prior year period.

Merit’s revenue by operating segment and product category for the three and six-month periods ended June 30, 2023 and 2022 was as follows (unaudited; in thousands, except for percentages):

Merit’s GAAP gross margin for the second quarter of 2023 was 47.7%, compared to GAAP gross margin of 45.8% for the prior year period. Merit’s non-GAAP gross margin* for the second quarter of 2023 was 51.4%, compared to non-GAAP gross margin* of 49.3% for the second quarter of 2022.

Merit’s GAAP net income for the second quarter of 2023 was $20.2 million, or $0.35 per share, compared to GAAP net income of $15.3 million, or $0.27 per share, for the second quarter of 2022. Merit’s non-GAAP net income* for the second quarter of 2023 was $47.6 million, or $0.81 per share, compared to non-GAAP net income* of $42.3 million, or $0.73 per share, for the second quarter of 2022.

“We delivered 9.1% constant currency, organic revenue growth in the second quarter of 2023, exceeding the high-end of our expectations,” said Fred P. Lampropoulos, Merit’s Chairman and Chief Executive Officer. “We also delivered significant year-over-year improvements in profitability with non-GAAP gross and operating margins of 51.4% and 19.9%, respectively, and solid year-over-year growth in both non-GAAP net income and non-GAAP earnings per share. We are confident in our team’s ability to deliver our financial guidance for fiscal year 2023 and 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 June 30, 2023, Merit had cash and cash equivalents of $72.1 million, total debt obligations of $340 million, and available borrowing capacity of approximately $507 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*

*Percentage figures approximated; dollar figures may not foot due to rounding

2023 Net Sales Guidance - % Change from Prior Year (Constant Currency) Reconciliation*

*Percentage figures approximated and may not foot due to rounding

(1) “Prior Guidance” reflects Merit’s full-year 2023 financial guidance on a stand-alone basis previously introduced on April 26, 2023, plus the forecasted impacts, announced June 8, 2023, 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 closing dates through December 31, 2023.

(2) Net sales guidance for the twelve months ending December 31, 2023 continues to assume organic revenue in the range of $1.217 billion to $1.229 billion.

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, Tuesday, July 25, 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)