Merit Medical Systems, Inc. (NASDAQ: MMSI), a leading
manufacturer and marketer of proprietary disposable devices used in
interventional, diagnostic and therapeutic procedures, particularly
in cardiology, radiology, oncology, critical care and endoscopy,
today announced revenue of $257.9 million for the quarter ended
December 31, 2019, an increase of 10.6% over revenue of
$233.2 million for the quarter ended December 31, 2018.
Core revenue on a comparable, constant currency basis* for the
fourth quarter of 2019 would have been up 8.5% over revenue for the
comparable quarter of 2018. For the year ended December 31, 2019,
Merit's revenue was $994.9 million, up 12.7% compared to revenue of
$882.8 million for the year ended December 31, 2018. Core revenue
on a comparable, constant currency basis* for the year ended
December 31, 2019 would have been up 8.1% when compared to 2018.
Merit’s GAAP operating margin for the fourth
quarter of 2019 was (1.3%), compared to GAAP operating margin of
5.9% for the fourth quarter of 2018. Merit’s non-GAAP operating
margin* for the fourth quarter of 2019 was 12.7%, compared to
non-GAAP operating margin* of 14.2% for the fourth quarter of 2018.
Merit’s GAAP operating margin for the year ended December 31, 2019
was 1.6%, compared to GAAP operating margin of 6.6% for the year
ended December 31, 2018. Merit’s non-GAAP operating margin* for the
year ended December 31, 2019 was 11.8%, compared to non-GAAP
operating margin* of 13.6% for the year ended December 31,
2018.
Merit’s GAAP net loss for the fourth quarter of
2019 was $(4.2) million, or $(0.08) per share, compared to GAAP net
income of $9.2 million, or $0.16 per share, for the fourth quarter
of 2018. Merit’s non-GAAP net income* for the quarter ended
December 31, 2019 was $22.1 million, or $0.40 per share,
compared to $27.0 million, or $0.48 per share, for the quarter
ended December 31, 2018. For the year ended December 31,
2019, Merit's GAAP net income was $5.5 million, or $0.10 per share,
compared to $42.0 million, or $0.78 per share, for 2018. Merit's
non-GAAP net income* for the year ended December 31, 2019 was $82.1
million, or $1.46, compared to $91.3 million, or $1.69 per share,
for 2018.
Merit’s GAAP gross margin for the fourth quarter
of 2019 was 43.3%, compared to GAAP gross margin of 44.9% for the
fourth quarter of 2018. Merit’s non-GAAP gross margin* for the
fourth quarter of 2019 was 48.3%, compared to non-GAAP gross
margin* of 49.4% for the fourth quarter of 2018. Merit's GAAP gross
margin for the year ended December 31, 2019 was 43.5%, compared to
44.7% for 2018. Merit's non-GAAP gross margin* for the year ended
December 31, 2019 was 48.6% compared to 48.9% for 2018.
“We are pleased with the strong performance
across our business during the fourth quarter and that the
integration of our most recent acquisitions is largely complete,”
said Fred P. Lampropoulos, Merit’s Chairman and Chief Executive
Officer. “As noted in our recent press release, we have received a
number of important new regulatory approvals. These approvals,
along with other internally developed products scheduled for
release and a full pipeline of new products in the works, give us
confidence in the future growth of the company.”
Merit continues to execute upon several
initiatives aimed at driving increased shareholder value. These
initiatives include consolidation of manufacturing facilities to
drive operating expense reductions and the implementation of
programs to incent Merit’s sales force to focus on products that
will improve Merit’s financial performance. As it pertains to
the manufacturing consolidation initiatives, Merit plans to move
production of 14 products to its facilities in Tijuana, Mexico or
Pearland, Texas, and expects to consolidate four facilities from
2020-2021. Merit projects that these initiatives will result
in cost savings of approximately $6 million to $10 million
annually. On the sales force incentive front, Merit
specifically identified certain product lines, including biopsy,
drainage and Cianna products, where it believes it can drive
greater customer focus and ultimately increase revenue growth and
margins.
Merit’s revenue by category for the three and
twelve months ended December 31, 2019, compared to the
corresponding periods in 2018, was as follows (unaudited, in
thousands, except for percentages):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
December 31, |
|
|
|
Year Ended
December 31, |
|
|
% Change |
|
2019 |
|
2018 |
|
% Change |
|
2019 |
|
2018 |
Cardiovascular |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stand-alone devices |
|
11.9 |
|
% |
$ |
106,191 |
|
$ |
94,896 |
|
11.0 |
|
% |
$ |
401,466 |
|
$ |
361,613 |
Cianna Medical |
|
n/a |
|
|
|
13,813 |
|
|
6,292 |
|
n/a |
|
|
|
49,536 |
|
|
6,292 |
Custom kits and procedure trays |
|
0.6 |
|
% |
|
34,599 |
|
|
34,397 |
|
0.8 |
|
% |
|
135,856 |
|
|
134,756 |
Inflation devices |
|
(2.8 |
) |
% |
|
22,166 |
|
|
22,802 |
|
(1.9 |
) |
% |
|
90,681 |
|
|
92,419 |
Catheters |
|
8.1 |
|
% |
|
45,067 |
|
|
41,695 |
|
14.4 |
|
% |
|
177,876 |
|
|
155,525 |
Embolization devices |
|
12.7 |
|
% |
|
13,904 |
|
|
12,332 |
|
4.1 |
|
% |
|
52,072 |
|
|
50,038 |
CRM/EP |
|
7.9 |
|
% |
|
13,671 |
|
|
12,672 |
|
9.5 |
|
% |
|
53,494 |
|
|
48,834 |
Total |
|
10.8 |
|
% |
|
249,411 |
|
|
225,086 |
|
13.1 |
|
% |
|
960,981 |
|
|
849,477 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Endoscopy |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Endoscopy devices |
|
4.3 |
|
% |
|
8,511 |
|
|
8,163 |
|
1.8 |
|
% |
|
33,871 |
|
|
33,276 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
|
10.6 |
|
% |
$ |
257,922 |
|
$ |
233,249 |
|
12.7 |
|
% |
$ |
994,852 |
|
$ |
882,753 |
In addition to the commercial, clinical and
operational progress discussed above, Merit is also implementing a
more simplified manner of characterizing its revenues to more
closely reflect the commercial focus of its business by call point
and end markets. “We recognize that our historical characterization
of our revenues by certain product categories failed to adequately
represent the scale of our business at these key call points. We
believe this new approach will more clearly reflect how we sell our
products to our customers in each of our focused end markets and
more adequately reflect the underlying commercial momentum in the
business,” said Lampropoulos. Merit plans to provide
historical reconciliation of these categories in the future, but
has provided a summary of the projected format in its accompanying
investor presentation.
Merit noted that during the fourth quarter of
2019, it recorded an impairment expense of approximately $20.5
million related to its arrangement with NinePoint Medical, Inc., in
which Merit fully impaired its loan to NinePoint and its option to
purchase the outstanding equity of NinePoint. In addition, Merit
recorded a write-off of $1.6 million of accrued interest related to
the loan to NinePoint.
2020 GUIDANCE
Based upon information currently available to
Merit’s management, Merit estimates for the year ending
December 31, 2020, absent material acquisitions, non-recurring
transactions or other factors beyond Merit’s control, the
following:
|
|
|
|
Financial Measure |
|
2020 Guidance (Pre-Coronavirus) |
|
|
|
|
Net Sales |
|
|
$1,044- $1,064 million |
|
|
|
|
GAAP |
|
|
|
Earnings per share |
|
|
$0.62 - $0.72 |
Operating margin |
|
|
6% - 7% |
|
|
|
|
Non-GAAP |
|
|
|
Earnings per share |
|
|
$1.58 - $1.68 |
Operating margin |
|
|
13% - 14% |
Not included in Merit’s guidance is any
anticipated impact of the coronavirus outbreak on Merit’s
business. While it is too early to adequately forecast the
potential impact, or duration, of the outbreak on Merit’s 2020
financial performance, Merit currently estimates that a full
quarter of a continued coronavirus outbreak at current levels could
result in an impact in the range of $14 million to $19 million in
net sales, and $0.08 to $0.12 in non-GAAP EPS. Merit does not
have enough information to estimate any potential impact beyond
that point, but intends to disseminate additional information as
events unfold. Importantly, Merit has taken the precautions
it believes are necessary to encourage the safety of its employees
and its business. Adjustments in inventory and logistics are also
being made as necessary.
Merit’s financial guidance for the year
ending December 31, 2020 is subject to risks and uncertainties
identified in Merit’s public filings.
CONFERENCE CALL
Merit will hold its investor conference call
(conference ID 4079914) today, Monday, February 24, 2020, at
5:00 p.m. Eastern (4:00 p.m. Central, 3:00 p.m.
Mountain, and 2:00 p.m. Pacific). The domestic telephone
number is (844) 578‑9672 and the international number is (508)
637‑5656. A live webcast and slide deck will also be available at
Merit.com.
CONSOLIDATED BALANCE
SHEETS(In thousands)
|
|
|
|
|
|
|
|
|
December 31, |
|
|
|
|
2019 |
|
|
December 31, |
|
|
(unaudited) |
|
2018 |
|
ASSETS |
|
|
|
|
|
Current Assets |
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
44,320 |
|
|
$ |
67,359 |
|
Trade receivables, net |
|
|
155,365 |
|
|
|
137,174 |
|
Other receivables |
|
|
10,016 |
|
|
|
11,879 |
|
Inventories |
|
|
225,698 |
|
|
|
197,536 |
|
Prepaid expenses and current other assets |
|
|
12,497 |
|
|
|
11,326 |
|
Prepaid income taxes |
|
|
3,491 |
|
|
|
3,627 |
|
Income tax refund receivables |
|
|
3,151 |
|
|
|
933 |
|
Total current assets |
|
|
454,538 |
|
|
|
429,834 |
|
|
|
|
|
|
|
|
Property and equipment,
net |
|
|
378,785 |
|
|
|
331,452 |
|
Intangible assets, net |
|
|
445,312 |
|
|
|
462,713 |
|
Goodwill |
|
|
353,193 |
|
|
|
335,433 |
|
Deferred income tax
assets |
|
|
3,788 |
|
|
|
3,001 |
|
Right-of-use operating lease
assets |
|
|
80,244 |
|
|
|
— |
|
Other assets |
|
|
41,461 |
|
|
|
57,579 |
|
Total Assets |
|
|
1,757,321 |
|
|
|
1,620,012 |
|
|
|
|
|
|
|
|
LIABILITIES
AND STOCKHOLDERS’ EQUITY |
|
|
|
|
|
|
Current Liabilities |
|
|
|
|
|
|
Trade payables |
|
$ |
54,623 |
|
|
$ |
54,024 |
|
Accrued expenses |
|
|
105,184 |
|
|
|
96,173 |
|
Current portion of long-term debt |
|
|
7,500 |
|
|
|
22,000 |
|
Short-term operating lease liabilities |
|
|
11,550 |
|
|
|
— |
|
Income taxes payable |
|
|
2,799 |
|
|
|
3,146 |
|
Total current liabilities |
|
|
181,656 |
|
|
|
175,343 |
|
|
|
|
|
|
|
|
Long-term debt |
|
|
431,984 |
|
|
|
373,152 |
|
Deferred income tax
liabilities |
|
|
45,236 |
|
|
|
56,363 |
|
Long-term income taxes
payable |
|
|
347 |
|
|
|
392 |
|
Liabilities related to
unrecognized tax benefits |
|
|
1,990 |
|
|
|
3,013 |
|
Deferred compensation
payable |
|
|
14,855 |
|
|
|
11,219 |
|
Deferred credits |
|
|
2,122 |
|
|
|
2,261 |
|
Long-term operating lease
liabilities |
|
|
72,714 |
|
|
|
— |
|
Other long-term
obligations |
|
|
56,473 |
|
|
|
65,494 |
|
Total Liabilities |
|
|
807,377 |
|
|
|
687,237 |
|
|
|
|
|
|
|
|
Stockholders' Equity |
|
|
|
|
|
|
Common stock |
|
|
587,017 |
|
|
|
571,383 |
|
Retained earnings |
|
|
368,221 |
|
|
|
363,425 |
|
Accumulated other comprehensive loss |
|
|
(5,294 |
) |
|
|
(2,033 |
) |
Total Liabilities and
Stockholders' Equity |
|
$ |
1,757,321 |
|
|
$ |
1,620,012 |
|
CONSOLIDATED STATEMENTS OF
INCOME(Unaudited, in thousands except
per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
December 31, |
|
Year Ended
December 31, |
|
|
|
2019 |
|
|
2018 |
|
|
2019 |
|
|
2018 |
|
|
NET SALES |
|
$ |
257,922 |
|
|
$ |
233,249 |
|
|
$ |
994,852 |
|
|
$ |
882,753 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
COST OF SALES |
|
|
146,292 |
|
|
|
128,583 |
|
|
|
562,486 |
|
|
|
487,983 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GROSS PROFIT |
|
|
111,630 |
|
|
|
104,666 |
|
|
|
432,366 |
|
|
|
394,770 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING EXPENSES: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and administrative |
|
|
82,090 |
|
|
|
75,630 |
|
|
|
327,274 |
|
|
|
276,018 |
|
|
Research and development |
|
|
16,254 |
|
|
|
15,368 |
|
|
|
65,615 |
|
|
|
59,532 |
|
|
Impairment and other charges |
|
|
20,500 |
|
|
|
— |
|
|
|
23,750 |
|
|
|
657 |
|
|
Contingent consideration expense (benefit) |
|
|
(3,805 |
) |
|
|
(256 |
) |
|
|
(232 |
) |
|
|
(698 |
) |
|
Acquired in-process research and development |
|
|
— |
|
|
|
263 |
|
|
|
525 |
|
|
|
644 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total operating expenses |
|
|
115,039 |
|
|
|
91,005 |
|
|
|
416,932 |
|
|
|
336,153 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INCOME (LOSS) FROM
OPERATIONS |
|
|
(3,409 |
) |
|
|
13,661 |
|
|
|
15,434 |
|
|
|
58,617 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OTHER INCOME (EXPENSE): |
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income |
|
|
(1,317 |
) |
|
|
352 |
|
|
|
(291 |
) |
|
|
1,199 |
|
|
Interest expense |
|
|
(3,120 |
) |
|
|
(2,295 |
) |
|
|
(12,413 |
) |
|
|
(10,360 |
) |
|
Other expense (benefit) - net |
|
|
(116 |
) |
|
|
492 |
|
|
|
(537 |
) |
|
|
63 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total other expense — net |
|
|
(4,553 |
) |
|
|
(1,451 |
) |
|
|
(13,241 |
) |
|
|
(9,098 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INCOME (LOSS) BEFORE INCOME
TAXES |
|
|
(7,962 |
) |
|
|
12,210 |
|
|
|
2,193 |
|
|
|
49,519 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INCOME TAX EXPENSE
(BENEFIT) |
|
|
(3,757 |
) |
|
|
3,022 |
|
|
|
(3,258 |
) |
|
|
7,502 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET INCOME (LOSS) |
|
$ |
(4,205 |
) |
|
$ |
9,188 |
|
|
$ |
5,451 |
|
|
$ |
42,017 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EARNINGS (LOSS) PER COMMON
SHARE: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
(0.08 |
) |
|
$ |
0.17 |
|
|
$ |
0.10 |
|
|
$ |
0.80 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted |
|
$ |
(0.08 |
) |
|
$ |
0.16 |
|
|
$ |
0.10 |
|
|
$ |
0.78 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AVERAGE COMMON SHARES: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
55,210 |
|
|
|
54,850 |
|
|
|
55,075 |
|
|
|
52,268 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted |
|
|
55,210 |
|
|
|
56,514 |
|
|
|
56,235 |
|
|
|
53,931 |
|
|
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
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,
- core revenue,
- core revenue on a constant currency basis,
- non-GAAP gross margin,
- non-GAAP operating margin,
- non-GAAP net income, and
- non-GAAP earnings per share.
Merit’s management team uses these non-GAAP
financial measures to evaluate Merit’s profitability and
efficiency, to compare operating results to prior periods, to
evaluate changes in the operating 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
earnings per share, non-GAAP gross margin, non-GAAP operating
margin, and non-GAAP net income (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 transactions, non-cash expenses related to amortization
or write-off of previously acquired tangible and intangible assets,
severance expenses, expenses resulting from non-ordinary course
litigation, governmental proceedings or changes in tax or industry
regulations, 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 investors and potential investors to review
the reconciliations of its non-GAAP financial measures to the
comparable GAAP financial measures, and not to rely on any single
financial measure to evaluate Merit’s business or results of
operations.
Constant Currency Revenue
Merit’s revenue on a constant currency basis is
prepared by translating the current-period reported revenue of
subsidiaries whose functional currency is other than the U.S.
dollar at the applicable foreign exchange rates in effect during
the comparable prior-year period. The constant currency revenue
adjustments of $1.7 million and $13.5 million for the three and
twelve-month periods ended December 31, 2019, respectively,
were calculated using the applicable average foreign exchange rates
for the three and twelve-month periods ended December 31, 2018,
respectively.
Core Revenue and Core Revenue on a Constant Currency Basis
Merit’s core revenue is defined (a) with
respect to prior fiscal year periods, as GAAP revenue, and
(b) with respect to current fiscal year periods, as GAAP
revenue, less revenue from certain acquisitions and strategic
transactions. For the three and twelve-month periods ended
December 31, 2019, Merit’s core revenue excludes revenues
attributable to (i) the acquisition of (1) certain
divested assets of Becton, Dickinson and Company in
February 2018 (excluded January 2019 only), (2) the
assets of DirectACCESS Medical, LLC in May 2018 (excluded
through April 2019 only), (3) Cianna Medical, Inc.
in November 2018 (excluded through October 2019 only),
(4) the assets of Vascular Insights, LLC in December 2018
(excluded through November 2019 only), (5) Brightwater
Medical, Inc. in June 2019, and (6) Fibrovein Holdings
Limited in August 2019 and (ii) distribution arrangements
executed with NinePoint Medical, Inc. in April 2018
(excluded through April 2019 only) and QXMedical, LLC in
May 2018 (excluded through May 2019 only). Core revenue
on a constant currency basis is defined as core revenue (as
described in the first sentence of this paragraph) adjusted to
eliminate the foreign exchange impact related to those core
revenues for the relevant period, using the applicable average
foreign exchange rates in effect for the comparable prior-year
periods presented.
Non-GAAP Gross Margin
Non-GAAP gross margin 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 Operating Margin
Non-GAAP operating margin is calculated by
adjusting GAAP operating income (loss) 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 new acquisitions, non-cash expenses related to
amortization or write-off of previously acquired tangible and
intangible assets, severance expenses, expenses resulting from
non-ordinary course litigation, governmental proceedings or changes
in industry regulations, as well as other items set forth in the
tables below.
Non-GAAP Net Income
Non-GAAP net income is calculated by adjusting
GAAP net income (loss) for the items set forth in the definition of
non-GAAP operating margin above, as well as for expenses related to
debt issuance costs and changes in tax regulations, as well as
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.
Other Non-GAAP Financial Measure Reconciliation
The tables in this release set forth
supplemental financial data and corresponding reconciliations of
non-GAAP operating margin, non-GAAP net income and non-GAAP
earnings per share to Merit’s operating income, net income and
earnings per share prepared in accordance with GAAP, respectively,
for the three and twelve-month periods ended December 31, 2019 and
2018. The non-GAAP operating margin and non-GAAP net income
adjustments referenced in the following tables do not reflect
stock-based compensation expense of approximately $2.5 million and
$1.6 million for the three-month periods ended December 31, 2019
and 2018, respectively, and approximately $9.4 million and $6.1
million for the twelve-month periods ended December 31, 2019 and
2018, respectively.
Reconciliation of GAAP Net Income
(Loss) to Non-GAAP Net Income(Unaudited, in
thousands except per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended December 31, 2019 |
|
|
Pre-Tax |
|
Tax Impact (a) |
|
After-Tax |
|
Per Share Impact |
GAAP net income (loss) |
|
$ |
(7,962 |
) |
|
$ |
3,757 |
|
|
$ |
(4,205 |
) |
|
$ |
(0.08 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
Cost of Sales |
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of intangibles |
|
|
12,825 |
|
|
|
(3,285 |
) |
|
|
9,540 |
|
|
|
0.17 |
|
Inventory mark-up related to acquisitions |
|
|
183 |
|
|
|
(47 |
) |
|
|
136 |
|
|
|
0.00 |
|
Operating Expenses |
|
|
|
|
|
|
|
|
|
|
|
|
Severance |
|
|
1,420 |
|
|
|
(369 |
) |
|
|
1,051 |
|
|
|
0.02 |
|
Acquisition-related (b) |
|
|
600 |
|
|
|
(154 |
) |
|
|
446 |
|
|
|
0.01 |
|
Medical Device Regulation expenses (c) |
|
|
366 |
|
|
|
(47 |
) |
|
|
319 |
|
|
|
0.01 |
|
Fair value adjustments to contingent consideration (d) |
|
|
(3,805 |
) |
|
|
(702 |
) |
|
|
(4,507 |
) |
|
|
(0.08 |
) |
Impairment and other charges (e) |
|
|
20,508 |
|
|
|
(5,279 |
) |
|
|
15,229 |
|
|
|
0.27 |
|
Amortization of intangibles |
|
|
2,675 |
|
|
|
229 |
|
|
|
2,904 |
|
|
|
0.06 |
|
Special legal expense (f) |
|
|
1,468 |
|
|
|
(378 |
) |
|
|
1,090 |
|
|
|
0.02 |
|
Other (Income) Expense |
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of long-term debt issuance costs |
|
|
151 |
|
|
|
(39 |
) |
|
|
112 |
|
|
|
0.00 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP net income |
|
$ |
28,429 |
|
|
$ |
(6,314 |
) |
|
$ |
22,115 |
|
|
$ |
0.40 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted shares (g) |
|
|
|
|
|
|
|
|
|
|
|
55,761 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended December 31, 2018 |
|
|
Pre-Tax |
|
Tax Impact (a) |
|
After-Tax |
|
Per Share Impact |
GAAP net income |
|
$ |
12,210 |
|
|
$ |
(3,022 |
) |
|
$ |
9,188 |
|
|
$ |
0.16 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
Cost of Sales |
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of intangibles |
|
|
9,245 |
|
|
|
(2,365 |
) |
|
|
6,880 |
|
|
|
0.13 |
Inventory mark-up related to acquisitions |
|
|
1,255 |
|
|
|
(323 |
) |
|
|
932 |
|
|
|
0.02 |
Operating Expenses |
|
|
|
|
|
|
|
|
|
|
|
|
Severance |
|
|
440 |
|
|
|
(114 |
) |
|
|
326 |
|
|
|
0.01 |
Acquisition-related (b) |
|
|
4,465 |
|
|
|
(876 |
) |
|
|
3,589 |
|
|
|
0.06 |
Fair value adjustments to contingent consideration (d) |
|
|
(256 |
) |
|
|
68 |
|
|
|
(188 |
) |
|
|
0.00 |
Acquired in-process research and development |
|
|
263 |
|
|
|
(67 |
) |
|
|
196 |
|
|
|
0.00 |
Impairment and other charges (e) |
|
|
70 |
|
|
|
(18 |
) |
|
|
52 |
|
|
|
0.00 |
Amortization of intangibles |
|
|
2,574 |
|
|
|
(679 |
) |
|
|
1,895 |
|
|
|
0.03 |
Special legal expense (f) |
|
|
1,363 |
|
|
|
(351 |
) |
|
|
1,012 |
|
|
|
0.02 |
Other (Income) Expense |
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of long-term debt issuance costs |
|
|
201 |
|
|
|
(52 |
) |
|
|
149 |
|
|
|
0.00 |
Tax expense related to tax reform (h) |
|
|
— |
|
|
|
3,005 |
|
|
|
3,005 |
|
|
|
0.05 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP net income |
|
$ |
31,830 |
|
|
$ |
(4,794 |
) |
|
$ |
27,036 |
|
|
$ |
0.48 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted shares |
|
|
|
|
|
|
|
|
|
|
|
56,514 |
Reconciliation of GAAP Net Income to
Non-GAAP Net Income(Unaudited, in
thousands except per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended December 31, 2019 |
|
|
Pre-Tax |
|
Tax Impact (a) |
|
After-Tax |
|
Per Share Impact |
GAAP net income |
|
$ |
2,193 |
|
|
$ |
3,258 |
|
|
$ |
5,451 |
|
|
$ |
0.10 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
Cost of Sales |
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of intangibles |
|
|
49,707 |
|
|
|
(12,730 |
) |
|
|
36,977 |
|
|
|
0.66 |
Inventory mark-up related to acquisitions |
|
|
1,122 |
|
|
|
(289 |
) |
|
|
833 |
|
|
|
0.01 |
Operating Expenses |
|
|
|
|
|
|
|
|
|
|
|
|
Severance |
|
|
4,963 |
|
|
|
(1,281 |
) |
|
|
3,682 |
|
|
|
0.06 |
Acquisition-related (b) |
|
|
3,497 |
|
|
|
(743 |
) |
|
|
2,754 |
|
|
|
0.05 |
Medical Device Regulation expenses (c) |
|
|
562 |
|
|
|
(98 |
) |
|
|
464 |
|
|
|
0.01 |
Fair value adjustments to contingent consideration (d) |
|
|
(232 |
) |
|
|
(47 |
) |
|
|
(279 |
) |
|
|
0.00 |
Acquired in-process research and development |
|
|
525 |
|
|
|
(135 |
) |
|
|
390 |
|
|
|
0.01 |
Impairment and other charges (e) |
|
|
24,587 |
|
|
|
(6,329 |
) |
|
|
18,258 |
|
|
|
0.32 |
Amortization of intangibles |
|
|
10,964 |
|
|
|
(2,884 |
) |
|
|
8,080 |
|
|
|
0.14 |
Special legal expense (f) |
|
|
6,508 |
|
|
|
(1,675 |
) |
|
|
4,833 |
|
|
|
0.09 |
Other (Income) Expense |
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of long-term debt issuance costs |
|
|
821 |
|
|
|
(211 |
) |
|
|
610 |
|
|
|
0.01 |
Tax expense related to restructuring (i) |
|
|
— |
|
|
|
93 |
|
|
|
93 |
|
|
|
0.00 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP net income |
|
$ |
105,217 |
|
|
$ |
(23,071 |
) |
|
$ |
82,146 |
|
|
$ |
1.46 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted shares |
|
|
|
|
|
|
|
|
|
|
|
56,235 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended December 31, 2018 |
|
|
Pre-Tax |
|
Tax Impact (a) |
|
After-Tax |
|
Per Share Impact |
GAAP net income |
|
$ |
49,519 |
|
|
$ |
(7,502 |
) |
|
$ |
42,017 |
|
|
$ |
0.78 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
Cost of Sales |
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of intangibles |
|
|
31,795 |
|
|
|
(8,123 |
) |
|
|
23,672 |
|
|
|
0.43 |
|
Inventory mark-up related to acquisitions |
|
|
5,233 |
|
|
|
(1,347 |
) |
|
|
3,886 |
|
|
|
0.07 |
|
Operating Expenses |
|
|
|
|
|
|
|
|
|
|
|
|
Severance |
|
|
920 |
|
|
|
(205 |
) |
|
|
715 |
|
|
|
0.01 |
|
Acquisition-related (b) |
|
|
7,584 |
|
|
|
(1,679 |
) |
|
|
5,905 |
|
|
|
0.11 |
|
Fair value adjustment to contingent consideration (d) |
|
|
(698 |
) |
|
|
(21 |
) |
|
|
(719 |
) |
|
|
(0.01 |
) |
Acquired in-process research and development |
|
|
644 |
|
|
|
(166 |
) |
|
|
478 |
|
|
|
0.01 |
|
Impairment and other charges (e) |
|
|
813 |
|
|
|
(209 |
) |
|
|
604 |
|
|
|
0.01 |
|
Amortization of intangibles |
|
|
9,438 |
|
|
|
(2,503 |
) |
|
|
6,935 |
|
|
|
0.12 |
|
Special legal expense (f) |
|
|
5,645 |
|
|
|
(1,453 |
) |
|
|
4,192 |
|
|
|
0.08 |
|
Other (Income) Expense |
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of long-term debt issuance costs |
|
|
804 |
|
|
|
(207 |
) |
|
|
597 |
|
|
|
0.01 |
|
Tax expense related to tax reform (h) |
|
|
— |
|
|
|
3,005 |
|
|
|
3,005 |
|
|
|
0.06 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP net income |
|
$ |
111,697 |
|
|
$ |
(20,410 |
) |
|
$ |
91,287 |
|
|
$ |
1.69 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted shares |
|
|
|
|
|
|
|
|
|
|
|
53,931 |
|
Reconciliation of Reported Operating
Income to Non-GAAP Operating
Income(Unaudited, in thousands except
per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Three Months Ended |
|
Year Ended |
|
Year Ended |
|
|
December 31, 2019 |
|
December 31, 2018 |
|
December 31, 2019 |
|
December 31, 2018 |
|
|
Amounts |
|
% Sales |
|
Amounts |
|
% Sales |
|
Amounts |
|
% Sales |
|
Amounts |
|
% Sales |
Net Sales as Reported |
|
$ |
257,922 |
|
|
|
|
|
$ |
233,249 |
|
|
|
|
|
$ |
994,852 |
|
|
|
|
|
$ |
882,753 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP Operating Income
(Loss) |
|
|
(3,409 |
) |
|
(1.3 |
) |
% |
|
|
13,661 |
|
|
5.9 |
|
% |
|
|
15,434 |
|
|
1.6 |
|
% |
|
|
58,617 |
|
|
6.6 |
|
% |
Cost of Sales |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of intangibles |
|
|
12,825 |
|
|
5.0 |
|
% |
|
|
9,245 |
|
|
4.0 |
|
% |
|
|
49,707 |
|
|
5.0 |
|
% |
|
|
31,795 |
|
|
3.6 |
|
% |
Inventory mark-up related to acquisitions |
|
|
183 |
|
|
0.1 |
|
% |
|
|
1,255 |
|
|
0.5 |
|
% |
|
|
1,122 |
|
|
0.1 |
|
% |
|
|
5,233 |
|
|
0.6 |
|
% |
Operating Expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Severance |
|
|
1,420 |
|
|
0.6 |
|
% |
|
|
440 |
|
|
0.2 |
|
% |
|
|
4,963 |
|
|
0.5 |
|
% |
|
|
920 |
|
|
0.1 |
|
% |
Acquisition-related (b) |
|
|
600 |
|
|
0.2 |
|
% |
|
|
4,465 |
|
|
1.9 |
|
% |
|
|
3,497 |
|
|
0.4 |
|
% |
|
|
7,584 |
|
|
0.9 |
|
% |
Medical Device Regulation expenses (c) |
|
|
366 |
|
|
0.1 |
|
% |
|
|
— |
|
|
— |
|
|
|
|
562 |
|
|
0.1 |
|
% |
|
|
— |
|
|
— |
|
|
Fair value adjustment to contingent consideration (d) |
|
|
(3,805 |
) |
|
(1.5 |
) |
% |
|
|
(256 |
) |
|
(0.1 |
) |
% |
|
|
(232 |
) |
|
(0.0 |
) |
% |
|
|
(698 |
) |
|
(0.1 |
) |
% |
Acquired in-process research & development |
|
|
— |
|
|
— |
|
|
|
|
263 |
|
|
0.1 |
|
% |
|
|
525 |
|
|
0.1 |
|
% |
|
|
644 |
|
|
0.1 |
|
% |
Impairment and other charges (e) |
|
|
20,508 |
|
|
8.0 |
|
% |
|
|
70 |
|
|
0.0 |
|
% |
|
|
24,587 |
|
|
2.5 |
|
% |
|
|
813 |
|
|
0.1 |
|
% |
Amortization of intangibles |
|
|
2,675 |
|
|
1.0 |
|
% |
|
|
2,574 |
|
|
1.1 |
|
% |
|
|
10,964 |
|
|
1.1 |
|
% |
|
|
9,438 |
|
|
1.1 |
|
% |
Special legal expense (f) |
|
|
1,468 |
|
|
0.6 |
|
% |
|
|
1,363 |
|
|
0.6 |
|
% |
|
|
6,508 |
|
|
0.7 |
|
% |
|
|
5,645 |
|
|
0.6 |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP Operating Income |
|
$ |
32,831 |
|
|
12.7 |
|
% |
|
$ |
33,080 |
|
|
14.2 |
|
% |
|
$ |
117,637 |
|
|
11.8 |
|
% |
|
$ |
119,991 |
|
|
13.6 |
|
% |
(a) Reflects the tax effect associated with
pre-tax income and the non-GAAP adjustments.(b) Represents
transaction costs and certain integration costs, including travel,
related to acquisitions.(c) Represents incremental expenses
incurred to comply with the Medical Device Regulation (MDR) in
Europe.(d) Represents changes in the fair value of contingent
consideration liabilities and contingent receivables as a result of
acquisitions.(e) Represents impairment charges related to abandoned
patents, other long-term assets, certain acquired intangible
assets, and in 2019 the option to purchase NinePoint and the
outstanding loan balance to NinePoint.(f) Costs incurred in
responding to an inquiry from the U.S. Department of Justice.(g)
For the three months ended December 31, 2019 the non-GAAP net
income per diluted share calculation includes 551 shares that were
excluded from the GAAP net income per diluted share calculation.(h)
Net tax impact related to the enactment of the Tax Cuts and Jobs
Act.(i) Net tax expense related to non-recurring tax withholdings
in connection with restructuring of certain international
subsidiaries.
Reconciliation of Reported Revenue to
Core Revenue (Non-GAAP), Constant Currency Revenue (Non-GAAP), and
Core Revenue on a Constant Currency Basis
(Non-GAAP)(Unaudited; in thousands
except percentages)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
|
Year Ended |
|
|
|
|
December 31, |
|
|
|
December 31, |
|
|
% Change |
|
2019 |
|
2018 |
|
% Change |
|
2019 |
|
2018 |
Reported Revenue |
|
10.6 |
% |
$ |
257,922 |
|
$ |
233,249 |
|
12.7 |
% |
$ |
994,852 |
|
$ |
882,753 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Add: Impact of foreign
exchange (a) |
|
|
|
|
1,694 |
|
|
— |
|
|
|
|
13,521 |
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Constant
Currency Revenue |
|
11.3 |
% |
$ |
259,616 |
|
$ |
233,249 |
|
14.2 |
% |
$ |
1,008,373 |
|
$ |
882,753 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
|
Year Ended |
|
|
|
|
December 31, |
|
|
|
December 31, |
|
|
% Change |
|
2019 |
|
|
2018 |
|
% Change |
|
2019 |
|
|
2018 |
Reported Revenue |
|
10.6 |
% |
$ |
257,922 |
|
|
$ |
233,249 |
|
12.7 |
% |
$ |
994,852 |
|
|
$ |
882,753 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less: Revenue from certain
acquisitions (b) |
|
|
|
|
(6,439 |
) |
|
|
— |
|
|
|
|
(54,103 |
) |
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Core
Revenue |
|
7.8 |
% |
$ |
251,483 |
|
|
$ |
233,249 |
|
6.6 |
% |
$ |
940,749 |
|
|
$ |
882,753 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Add: Impact of foreign
exchange (a) |
|
|
|
|
1,694 |
|
|
|
— |
|
|
|
|
13,521 |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Core Revenue
on a Constant Currency Basis |
|
8.5 |
% |
$ |
253,177 |
|
|
$ |
233,249 |
|
8.1 |
% |
$ |
954,270 |
|
|
$ |
882,753 |
(a) The constant currency revenue adjustments of
$1.7 million and $13.5 million to reported revenue and to core
revenue, for the three and twelve months ended December 31,
2019, respectively, were calculated using the applicable average
foreign exchange rates for the three and twelve months ended
December 31, 2018.
(b) Merit’s core revenue is defined
(a) with respect to prior fiscal year periods, as GAAP
revenue, and (b) with respect to current fiscal year
periods, as GAAP revenue, less revenue from certain acquisitions
and strategic transactions. For the three and twelve-month periods
ended December 31, 2019, Merit’s core revenue excludes
revenues attributable to (i) the acquisition of
(1) certain divested assets of Becton, Dickinson and Company
in February 2018 (excluded January 2019 only),
(2) the assets of DirectACCESS Medical, LLC in May 2018
(excluded through April 2019 only), (3) Cianna
Medical, Inc. in November 2018 (excluded through October
2019 only), (4) the assets of Vascular Insights, LLC in
December 2018 (excluded through November 2019 only),
(5) Brightwater Medical, Inc. in June 2019, and (6)
Fibrovein Holdings Limited in August 2019, and
(ii) distribution arrangements executed with NinePoint
Medical, Inc. in April 2018 (excluded through
April 2019 only) and QXMedical, LLC in May 2018 (excluded
through May 2019 only). Core revenue on a constant currency
basis is defined as core revenue (as described in the first
sentence of this paragraph) adjusted to eliminate the foreign
exchange impact related to those core revenues for the relevant
period, using the applicable average foreign exchange rates in
effect for the comparable prior-year periods presented.
Reconciliation of Reported Gross Margin
to Non-GAAP Gross Margin
(Non-GAAP)(Unaudited, as
a percentage of reported revenue)
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Year Ended |
|
|
|
December 31, |
|
December 31, |
|
|
|
2019 |
|
2018 |
|
2019 |
|
2018 |
|
Reported Gross Margin |
|
43.3 |
% |
44.9 |
% |
43.5 |
% |
44.7 |
% |
|
|
|
|
|
|
|
|
|
|
Add back impact of: |
|
|
|
|
|
|
|
|
|
Amortization of intangibles |
|
5.0 |
% |
4.0 |
% |
5.0 |
% |
3.6 |
% |
Inventory mark-up related to acquisitions |
|
0.0 |
% |
0.5 |
% |
0.1 |
% |
0.6 |
% |
|
|
|
|
|
|
|
|
|
|
Non-GAAP Gross Margin |
|
48.3 |
% |
49.4 |
% |
48.6 |
% |
48.9 |
% |
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 in excess of 300 individuals. Merit employs
approximately 6,400 people worldwide with facilities in South
Jordan, Utah; Pearland, Texas; Richmond, Virginia; Malvern,
Pennsylvania; Rockland, Massachusetts; Aliso Viejo, California;
Maastricht and Venlo, The Netherlands; Paris, France; Galway,
Ireland; Beijing, China; Tijuana, Mexico; Joinville, Brazil;
Markham, Ontario, Canada; Melbourne, Australia; Tokyo, Japan;
Reading, United Kingdom; Johannesburg, South Africa; and
Singapore.
FORWARD-LOOKING STATEMENTS
Statements contained in this release which are
not purely historical, including, without limitation, statements
regarding Merit’s forecasted plans, net sales, net income (GAAP and
non-GAAP), gross and operating margins (GAAP and non-GAAP),
earnings per share (GAAP and non-GAAP), effective tax rate and
other financial results, anticipated or completed acquisitions, the
introduction of new products, the potential impact of the ongoing
coronavirus outbreak, consolidation of Merit’s facilities or other
expense reduction initiatives or the consequences of existing or
future regulatory approvals, are forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of 1995
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, 2018 and subsequent filings with the Securities and Exchange
Commission. Such risks and uncertainties include inherent risks and
uncertainties relating to Merit’s internal models or the
projections in this release; 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
acquired through completed, proposed or future transactions;
expenditures relating to research, development, testing and
regulatory approval or clearance of Merit’s products and risks that
such products may not be developed successfully or approved for
commercial use; governmental scrutiny and regulation of the medical
device industry, including governmental inquiries, investigations
and proceedings involving Merit; litigation and other judicial
proceedings affecting Merit; 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; actions of
activist shareholders, including a potential proxy contest; product
recalls and product liability claims; changes in customer
purchasing patterns or the mix of products Merit sells; 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; 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; 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 countries; increases
in the prices of commodity components; negative changes in economic
and industry conditions in the United States or other countries;
termination or interruption of relationships with Merit’s
suppliers, or failure of such suppliers to perform; fluctuations in
exchange rates; uncertainties relating to the LIBOR calculation
method and the expected discontinuation of LIBOR; 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 products obsolete; market acceptance of new
products; 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; introduction of products in a
timely fashion; price and product competition; availability of
labor and materials; fluctuations in and obsolescence of inventory;
and other factors referred to in Merit’s Annual Report on Form 10-K
for the year ended December 31, 2018 and other materials filed with
the Securities and Exchange Commission. 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, and Merit assumes no
obligation to update or disclose revisions to those estimates.
TRADEMARKS
Unless noted otherwise, trademarks and
registered trademarks used in this release are the property of
Merit Medical Systems, Inc. and its subsidiaries in the United
States and other jurisdictions.
Contact: |
Anne-Marie Wright, Vice President, Corporate Communications |
Phone: |
(801) 208‑4167 e-mail:
awright@merit.com Fax: (801) 253‑1688 |
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