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 provided a revised presentation of its annual revenues under
new product categories for the years ended December 31, 2019, 2018,
and 2017, as well as quarterly revenues for the quarterly periods
from March 31, 2018 to December 31, 2019. As discussed in its
quarterly financial conference call held on February 24, 2020,
Merit has revised the format for presentation of its revenues in
new product categories. During that call, Merit outlined the
revised format and indicated that it would provide historical
information consistent with the revised format. The revised
presentation format is shown below.
“The purpose of the revised presentation format
is to provide users of our financial statements with revenue
information in revised product categories that more closely reflect
the focus of our business by call point and end market,” said Fred
P. Lampropoulos, Merit’s Chairman and Chief Executive Officer. “We
believe this new format 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.”
Merit conducts its business through two
operating segments: Cardiovascular (which includes Cardiac
Intervention, Peripheral Intervention, Custom Procedural Solutions,
and OEM) and Endoscopy. The revised presentation format discussed
in this release does not change or replace Merit’s historical
operating segments but rather provides revenue reporting under new
categories for products within each operating segment. The diagram
below illustrates the transition of Merit’s product categories from
its historical presentation to its revised presentation:
Historical Presentation |
|
Revised Presentation |
Operating Segment |
Product Categories |
|
Operating Segment |
Product Categories |
Cardiovascular |
-Stand-Alone Devices |
|
Cardiovascular |
-Peripheral Intervention |
|
-Cianna Medical |
|
|
-Cardiac Intervention |
|
-Custom Kits and Procedure Trays |
|
|
-Custom Procedural Solutions |
|
-Inflation Devices |
|
|
-OEM |
|
-Catheters |
|
|
|
|
-Embolization Devices |
|
|
|
|
-CRM/EP |
|
|
|
Endoscopy |
-Endoscopy Devices |
|
Endoscopy |
-Endoscopy Devices |
Merit’s revenue under the new product categories for the years
ended December 31, 2019, 2018, and 2017, respectively, was as
follows (unaudited, in thousands):
|
|
2019 |
|
2018 |
|
2017 |
Cardiovascular |
|
|
|
|
|
|
|
|
|
Peripheral Intervention |
|
$ |
350,936 |
|
$ |
276,113 |
|
$ |
203,976 |
Cardiac Intervention |
|
|
304,797 |
|
|
278,496 |
|
|
234,986 |
Custom Procedural Solutions |
|
|
187,359 |
|
|
180,332 |
|
|
166,483 |
OEM |
|
|
117,889 |
|
|
114,536 |
|
|
95,168 |
Total |
|
|
960,981 |
|
|
849,477 |
|
|
700,613 |
|
|
|
|
|
|
|
|
|
|
Endoscopy |
|
|
|
|
|
|
|
|
|
Endoscopy devices |
|
|
33,871 |
|
|
33,276 |
|
|
27,239 |
|
|
|
|
|
|
|
|
|
|
Total |
|
$ |
994,852 |
|
$ |
882,753 |
|
$ |
727,852 |
Merit’s core* revenue (a non-GAAP financial
measure) by product category for the years ended December 31,
2019, 2018, and 2017, respectively, was as follows (unaudited, in
thousands):
|
|
2019 |
|
2018 |
|
2017 |
Cardiovascular |
|
|
|
|
|
|
|
|
|
Peripheral Intervention |
|
$ |
297,928 |
|
$ |
225,568 |
|
$ |
187,463 |
Cardiac Intervention |
|
|
304,797 |
|
|
278,496 |
|
|
234,986 |
Custom Procedural Solutions |
|
|
187,359 |
|
|
169,127 |
|
|
112,481 |
OEM |
|
|
117,889 |
|
|
114,465 |
|
|
94,665 |
Total |
|
|
907,973 |
|
|
787,656 |
|
|
629,595 |
|
|
|
|
|
|
|
|
|
|
Endoscopy |
|
|
|
|
|
|
|
|
|
Endoscopy devices |
|
|
32,776 |
|
|
28,533 |
|
|
27,239 |
|
|
|
|
|
|
|
|
|
|
Total |
|
$ |
940,749 |
|
$ |
816,189 |
|
$ |
656,834 |
Merit’s revenue by product category for the
three-month periods ended March 31, June 30, September 30, and
December 31, 2019, compared to the corresponding periods of
2018, was as follows (unaudited, in thousands):
|
|
Three-Month Period Ended |
2019 |
|
March 31 |
|
June 30 |
|
September 30 |
|
December 31 |
Cardiovascular |
|
|
|
|
|
|
|
|
|
|
|
|
Peripheral Intervention |
|
$ |
84,633 |
|
$ |
88,848 |
|
$ |
84,265 |
|
$ |
93,192 |
Cardiac Intervention |
|
|
72,540 |
|
|
79,643 |
|
|
74,859 |
|
|
77,755 |
Custom Procedural Solutions |
|
|
45,861 |
|
|
47,216 |
|
|
46,258 |
|
|
48,024 |
OEM |
|
|
27,446 |
|
|
30,959 |
|
|
29,044 |
|
|
30,440 |
Total |
|
|
230,480 |
|
|
246,666 |
|
|
234,426 |
|
|
249,411 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Endoscopy |
|
|
|
|
|
|
|
|
|
|
|
|
Endoscopy devices |
|
|
7,869 |
|
|
8,866 |
|
|
8,623 |
|
|
8,511 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
|
$ |
238,349 |
|
$ |
255,532 |
|
$ |
243,049 |
|
$ |
257,922 |
|
|
|
|
|
|
|
|
|
|
|
|
|
2018 |
|
|
|
|
|
|
|
|
|
|
|
|
Cardiovascular |
|
|
|
|
|
|
|
|
|
|
|
|
Peripheral Intervention |
|
$ |
59,892 |
|
$ |
69,283 |
|
$ |
69,840 |
|
$ |
77,099 |
Cardiac Intervention |
|
|
65,419 |
|
|
72,749 |
|
|
68,681 |
|
|
71,647 |
Custom Procedural Solutions |
|
|
45,754 |
|
|
44,918 |
|
|
44,098 |
|
|
45,562 |
OEM |
|
|
24,790 |
|
|
29,437 |
|
|
29,531 |
|
|
30,778 |
Total |
|
|
195,855 |
|
|
216,387 |
|
|
212,150 |
|
|
225,086 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Endoscopy |
|
|
|
|
|
|
|
|
|
|
|
|
Endoscopy devices |
|
|
7,180 |
|
|
8,423 |
|
|
9,509 |
|
|
8,163 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
|
$ |
203,035 |
|
$ |
224,810 |
|
$ |
221,659 |
|
$ |
233,249 |
Merit’s core* revenue (a non-GAAP financial
measure) by product category for the three-month periods ended
March 31, June 30, September 30, and December 31, 2019,
compared to the corresponding periods of 2018, was as follows
(unaudited, in thousands):
|
|
Three-Month
Period Ended |
2019 |
|
March 31 |
|
June 30 |
|
September 30 |
|
December 31 |
Cardiovascular |
|
|
|
|
|
|
|
|
|
|
|
|
Peripheral Intervention |
|
$ |
65,466 |
|
$ |
75,589 |
|
$ |
70,120 |
|
$ |
86,753 |
Cardiac Intervention |
|
|
72,540 |
|
|
79,643 |
|
|
74,859 |
|
|
77,755 |
Custom Procedural Solutions |
|
|
45,861 |
|
|
47,216 |
|
|
46,258 |
|
|
48,024 |
OEM |
|
|
27,446 |
|
|
30,959 |
|
|
29,044 |
|
|
30,440 |
Total |
|
|
211,313 |
|
|
233,407 |
|
|
220,281 |
|
|
242,972 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Endoscopy |
|
|
|
|
|
|
|
|
|
|
|
|
Endoscopy devices |
|
|
7,234 |
|
|
8,408 |
|
|
8,623 |
|
|
8,511 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
|
$ |
218,547 |
|
$ |
241,815 |
|
$ |
228,904 |
|
$ |
251,483 |
|
|
|
|
|
|
|
|
|
|
|
|
|
2018 |
|
|
|
|
|
|
|
|
|
|
|
|
Cardiovascular |
|
|
|
|
|
|
|
|
|
|
|
|
Peripheral Intervention |
|
$ |
52,839 |
|
$ |
56,603 |
|
$ |
57,519 |
|
$ |
58,606 |
Cardiac Intervention |
|
|
65,419 |
|
|
72,749 |
|
|
68,681 |
|
|
71,647 |
Custom Procedural Solutions |
|
|
38,479 |
|
|
42,883 |
|
|
42,206 |
|
|
45,559 |
OEM |
|
|
24,719 |
|
|
29,437 |
|
|
29,531 |
|
|
30,778 |
Total |
|
|
181,456 |
|
|
201,672 |
|
|
197,937 |
|
|
206,590 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Endoscopy |
|
|
|
|
|
|
|
|
|
|
|
|
Endoscopy devices |
|
|
6,944 |
|
|
6,774 |
|
|
7,626 |
|
|
7,189 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
|
$ |
188,400 |
|
$ |
208,446 |
|
$ |
205,563 |
|
$ |
213,779 |
The following is a discussion of what management
believes are the most significant drivers of fluctuations in the
new product categories for the periods indicated:
Peripheral Intervention
Revenue. Peripheral intervention revenue for the
year ended December 31, 2019 was $350.9 million, up 27.1% compared
to peripheral intervention revenue of $276.1 million for the year
ended December 31, 2018. Core* peripheral intervention revenue for
the year ended December 31, 2019 was up 7.9% when compared to 2018
reported peripheral intervention revenue. Peripheral intervention
revenue for the year ended December 31, 2019 was favorably affected
by sales of breast cancer localization products (from Merit’s
acquisition of Cianna Medical, Inc. (“Cianna Medical”)),
angiography products, drainage products (which includes sales from
Merit’s acquisition of Becton, Dickinson and Company (“BD”) product
lines), biopsy products (which includes sales of products acquired
from BD), intervention products (which includes sales from Merit’s:
acquisition of the ClariVein® products from Vascular Insights, LLC;
acquisition of Fibrovein Holdings Limited; acquisition of the
assets of DirectACCESS Medical, LLC; and distribution agreement
executed with QX Medical, LLC), delivery systems, and embolic
products.
Peripheral intervention revenue for the year
ended December 31, 2018 was $276.1 million, up 35.4% compared to
peripheral intervention revenue of $204.0 million for the year
ended December 31, 2017. Core* peripheral intervention revenue for
the year ended December 31, 2018 was up 10.6% when compared to 2017
reported peripheral intervention revenue. Peripheral intervention
revenue for the year ended December 31, 2018 was favorably affected
by sales of: breast cancer localization products (from Merit’s
acquisition of Cianna Medical), angiography products, drainage
products (which includes sales of products acquired from BD),
biopsy products (which includes sales of products acquired from BD
and sales from Merit’s acquisition of the assets of Laurane Medical
S.A.S.), and delivery systems.
Cardiac Intervention
Revenue. Cardiac intervention revenue and core*
cardiac intervention revenue for the year ended December 31, 2019
were $304.8 million, up 9.4% compared to cardiac intervention
revenue of $278.5 million for the year ended December 31, 2018.
Cardiac intervention revenue for the year ended December 31, 2019
was favorably affected by increased sales of access, intervention,
angiography, and cardiac rhythm management and electrophysiology
(“CRM/EP”) products.
Cardiac intervention revenue and core* cardiac
intervention revenue for the year ended December 31, 2018 were
$278.5 million, up 18.5% compared to cardiac intervention revenue
of $235.0 million for the year ended December 31, 2017. Cardiac
intervention revenue for the year ended December 31, 2018 was
favorably affected by increased sales of access, intervention,
angiography, CRM/EP, and fluid management products.
Custom Procedural Solutions
Revenue. Custom procedural solutions revenue and
core* custom procedural solutions revenue for the year ended
December 31, 2019 were approximately $187.4 million, up 3.9%
compared to customer procedural solutions revenue of $180.3 million
for the year ended December 31, 2018. Custom procedural solutions
revenue for the year ended December 31, 2019 was favorably affected
by sales of critical care products and kits.
Custom procedural solutions revenue for the year
ended December 31, 2018 was $180.3 million, up 8.3% compared to
custom procedural solutions revenue of $166.5 million for the year
ended December 31, 2017. Core* custom procedural solutions revenue
for the year ended December 31, 2018 was up 1.6% when compared to
2017 reported custom procedural solutions revenue. Custom
procedural solutions revenue for the year ended December 31, 2018
was favorably affected by sales of trays (including the impact of
the acquisition of ITL Healthcare Pty Ltd.), critical care
products, (including sales from the critical care division of Argon
Medical Devices and sales of the DualCap® Disinfection and
Protection System, a product acquired with the assets of Catheter
Connections, Inc.), and kits.
OEM Revenue.
OEM revenue and core* OEM revenue for the year ended December 31,
2019 was approximately $117.9 million, up 2.9% compared to OEM
revenue of $114.5 million for the year ended December 31, 2018. OEM
revenue for the year ended December 31, 2019 was favorably affected
by sales of coatings and peripheral intervention products.
OEM revenue for the year ended December 31, 2018
was $114.5 million, up 20.4% compared to OEM revenue of $95.2
million for the year ended December 31, 2017. Core* OEM revenue for
the year ended December 31, 2018 was up 20.3% when compared to 2017
reported OEM revenue. OEM revenue for the year ended December 31,
2018 was favorably affected by sales of coatings and cardiac
intervention products.
Endoscopy Device
Revenue. Endoscopy device revenue for
the year ended December 31, 2019 was $33.9 million,
up 1.8%, compared to endoscopy device revenue of $33.3 million for
the year ended December 31, 2018. Core* endoscopy device revenue
for the year ended December 31, 2019 was down (1.5)% when compared
to 2018 reported endoscopy device revenue. Endoscopy device revenue
for the year ended December 31, 2019 was favorably affected by
increased sales of Merit’s EndoMAXX™ fully covered esophageal
stent, Elation® balloon dilator, and AEROmini® fully covered
esophageal stent, partially offset by decreased sales of other
stents.
Endoscopy device revenue for the year ended
December 31, 2018 was $33.3 million, up 22.2%, compared
to endoscopy device revenue of $27.2 million for the year ended
December 31, 2017. Core* endoscopy device revenue for the year
ended December 31, 2018 was up 4.8% when compared to 2017 reported
endoscopy device revenue. This increase was primarily related to
sales of products marketed under Merit’s distribution arrangement
with NinePoint Medical, Inc. and EndoMAXX Esophageal Stents.
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. Core Revenue is
a Non-GAAP financial measure used in this release.
Merit’s management team uses 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. 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.
Core Revenue
Merit’s core revenue is defined as GAAP revenue
less revenue from certain acquisitions and strategic transactions.
Merit’s core revenue excludes revenues attributable to (i) the
acquisition of (1) the HeRO® Graft in February 2016 (excluded
January 2017 only), (2) DFINE, Inc. in July 2016 (excluded through
June 2017 only), (3) the assets of Catheter Connections, Inc. in
January 2017 (excluded through January 2018 only), (4) the critical
care division of Argon Medical Devices, Inc. in January 2017
(excluded through January 2018 only), (5) the assets of Osseon LLC
in July 2017 (excluded through June 2018 only), (6) the assets of
Laurane Medical S.A.S. in August 2017 (excluded through July 2018
only) (7) ITL Healthcare Pty. Ltd. in October 2017 (excluded
through September 2018 only) (8) certain divested assets of BD
in February 2018 (excluded through January 2019), (9) the
assets of DirectACCESS Medical, LLC in May 2018 (excluded
through April 2019), (10) Cianna Medical in November 2018
(excluded through October 2019) (11) the assets of Vascular
Insights, LLC in December 2018 (excluded through November
2019) (12) Brightwater Medical, Inc. in June 2019,
and (13) Fibrovein Holdings Limited in August 2019 and
(ii) distribution arrangements executed with NinePoint
Medical, Inc. in April 2018 (excluded through April 2019)
and QXMedical, LLC in May 2018 (excluded through May
2019).
Reconciliation of GAAP Revenue to
Core Revenue (Non-GAAP)For the
years ended December 31, 2019, 2018, and 2017,
respectively (Unaudited, in thousands except per
share amounts)
2019 |
|
GAAP Revenue |
|
Revenue fromAcquisitions (a) |
|
Core Revenue |
Cardiovascular |
|
|
|
|
|
|
|
|
|
Peripheral Intervention |
|
$ |
350,936 |
|
$ |
53,008 |
|
$ |
297,928 |
Cardiac Intervention |
|
|
304,797 |
|
|
— |
|
|
304,797 |
Custom Procedural Solutions |
|
|
187,359 |
|
|
— |
|
|
187,359 |
OEM |
|
|
117,889 |
|
|
— |
|
|
117,889 |
Total |
|
|
960,981 |
|
|
53,008 |
|
|
907,973 |
|
|
|
|
|
|
|
|
|
|
Endoscopy |
|
|
|
|
|
|
|
|
|
Endoscopy devices |
|
|
33,871 |
|
|
1,095 |
|
|
32,776 |
|
|
|
|
|
|
|
|
|
|
Total |
|
$ |
994,852 |
|
$ |
54,103 |
|
$ |
940,749 |
|
|
|
|
|
|
|
|
|
|
2018 |
|
GAAP Revenue |
|
Revenue fromAcquisitions (a) |
|
Core Revenue |
Cardiovascular |
|
|
|
|
|
|
|
|
|
Peripheral Intervention |
|
$ |
276,113 |
|
$ |
50,545 |
|
$ |
225,568 |
Cardiac Intervention |
|
|
278,496 |
|
|
— |
|
|
278,496 |
Custom Procedural Solutions |
|
|
180,332 |
|
|
11,205 |
|
|
169,127 |
OEM |
|
|
114,536 |
|
|
71 |
|
|
114,465 |
Total |
|
|
849,477 |
|
|
61,821 |
|
|
787,656 |
|
|
|
|
|
|
|
|
|
|
Endoscopy |
|
|
|
|
|
|
|
|
|
Endoscopy devices |
|
|
33,276 |
|
|
4,743 |
|
|
28,533 |
|
|
|
|
|
|
|
|
|
|
Total |
|
$ |
882,753 |
|
$ |
66,564 |
|
$ |
816,189 |
|
|
|
|
|
|
|
|
|
|
2017 |
|
GAAP Revenue |
|
Revenue fromAcquisitions (a) |
|
Core Revenue |
Cardiovascular |
|
|
|
|
|
|
|
|
|
Peripheral Intervention |
|
$ |
203,976 |
|
$ |
16,513 |
|
$ |
187,463 |
Cardiac Intervention |
|
|
234,986 |
|
|
— |
|
|
234,986 |
Custom Procedural Solutions |
|
|
166,483 |
|
|
54,002 |
|
|
112,481 |
OEM |
|
|
95,168 |
|
|
503 |
|
|
94,665 |
Total |
|
|
700,613 |
|
|
71,018 |
|
|
629,595 |
|
|
|
|
|
|
|
|
|
|
Endoscopy |
|
|
|
|
|
|
|
|
|
Endoscopy devices |
|
|
27,239 |
|
|
— |
|
|
27,239 |
|
|
|
|
|
|
|
|
|
|
Total |
|
$ |
727,852 |
|
$ |
71,018 |
|
$ |
656,834 |
Reconciliation of GAAP Revenue to Core Revenue
(Non-GAAP)For the three-month
periods ended March 31, June 30, September 30, and December 31,
2019 and 2018, respectively(Unaudited, in
thousands)
|
|
Three-Month Period Ended March 31,
2019 |
|
Three-Month Period Ended June 30,
2019 |
|
|
GAAP Revenue |
|
Revenue fromAcquisitions (a) |
|
Core Revenue |
|
GAAP Revenue |
|
Revenue fromAcquisitions (a) |
|
Core Revenue |
Cardiovascular |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Peripheral Intervention |
|
$ |
84,633 |
|
$ |
19,167 |
|
$ |
65,466 |
|
$ |
88,848 |
|
$ |
13,259 |
|
$ |
75,589 |
Cardiac Intervention |
|
|
72,540 |
|
|
— |
|
|
72,540 |
|
|
79,643 |
|
|
— |
|
|
79,643 |
Custom Procedural Solutions |
|
|
45,861 |
|
|
— |
|
|
45,861 |
|
|
47,216 |
|
|
— |
|
|
47,216 |
OEM |
|
|
27,446 |
|
|
— |
|
|
27,446 |
|
|
30,959 |
|
|
— |
|
|
30,959 |
Total |
|
|
230,480 |
|
|
19,167 |
|
|
211,313 |
|
|
246,666 |
|
|
13,259 |
|
|
233,407 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Endoscopy |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Endoscopy devices |
|
|
7,869 |
|
|
635 |
|
|
7,234 |
|
|
8,866 |
|
|
458 |
|
|
8,408 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
|
$ |
238,349 |
|
$ |
19,802 |
|
$ |
218,547 |
|
$ |
255,532 |
|
$ |
13,717 |
|
$ |
241,815 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three-Month Period Ended September 30,
2019 |
|
Three-Month Period Ended December 31,
2019 |
|
|
GAAP Revenue |
|
Revenue fromAcquisitions (a) |
|
Core Revenue |
|
GAAP Revenue |
|
Revenue fromAcquisitions (a) |
|
Core Revenue |
Cardiovascular |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Peripheral Intervention |
|
$ |
84,265 |
|
$ |
14,145 |
|
$ |
70,120 |
|
$ |
93,192 |
|
$ |
6,439 |
|
$ |
86,753 |
Cardiac Intervention |
|
|
74,859 |
|
|
— |
|
|
74,859 |
|
|
77,755 |
|
|
— |
|
|
77,755 |
Custom Procedural Solutions |
|
|
46,258 |
|
|
— |
|
|
46,258 |
|
|
48,024 |
|
|
— |
|
|
48,024 |
OEM |
|
|
29,044 |
|
|
— |
|
|
29,044 |
|
|
30,440 |
|
|
— |
|
|
30,440 |
Total |
|
|
234,426 |
|
|
14,145 |
|
|
220,281 |
|
|
249,411 |
|
|
6,439 |
|
|
242,972 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Endoscopy |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Endoscopy devices |
|
|
8,623 |
|
|
— |
|
|
8,623 |
|
|
8,511 |
|
|
— |
|
|
8,511 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
|
$ |
243,049 |
|
|
14,145 |
|
|
228,904 |
|
$ |
257,922 |
|
$ |
6,439 |
|
$ |
251,483 |
|
|
Three-Month Period Ended March 31,
2018 |
|
Three-Month Period Ended June 30,
2018 |
|
|
GAAP Revenue |
|
Revenue fromAcquisitions (a) |
|
Core Revenue |
|
GAAP Revenue |
|
Revenue fromAcquisitions (a) |
|
Core Revenue |
Cardiovascular |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Peripheral Intervention |
|
$ |
59,892 |
|
$ |
7,053 |
|
$ |
52,839 |
|
$ |
69,283 |
|
$ |
12,680 |
|
$ |
56,603 |
Cardiac Intervention |
|
|
65,419 |
|
|
— |
|
|
65,419 |
|
|
72,749 |
|
|
— |
|
|
72,749 |
Custom Procedural Solutions |
|
|
45,754 |
|
|
7,275 |
|
|
38,479 |
|
|
44,918 |
|
|
2,035 |
|
|
42,883 |
OEM |
|
|
24,790 |
|
|
71 |
|
|
24,719 |
|
|
29,437 |
|
|
— |
|
|
29,437 |
Total |
|
|
195,855 |
|
|
14,399 |
|
|
181,456 |
|
|
216,387 |
|
|
14,715 |
|
|
201,672 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Endoscopy |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Endoscopy devices |
|
|
7,180 |
|
|
236 |
|
|
6,944 |
|
|
8,423 |
|
|
1,649 |
|
|
6,774 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
|
$ |
203,035 |
|
$ |
14,635 |
|
$ |
188,400 |
|
$ |
224,810 |
|
$ |
16,364 |
|
$ |
208,446 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three-Month Period Ended September 30,
2018 |
|
Three-Month Period Ended December 31,
2018 |
|
|
GAAP Revenue |
|
Revenue fromAcquisitions (a) |
|
Core Revenue |
|
GAAP Revenue |
|
Revenue fromAcquisitions (a) |
|
Core Revenue |
Cardiovascular |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Peripheral Intervention |
|
$ |
69,840 |
|
$ |
12,321 |
|
$ |
57,519 |
|
$ |
77,099 |
|
$ |
18,493 |
|
$ |
58,606 |
Cardiac Intervention |
|
|
68,681 |
|
|
— |
|
|
68,681 |
|
|
71,647 |
|
|
— |
|
|
71,647 |
Custom Procedural Solutions |
|
|
44,098 |
|
|
1,892 |
|
|
42,206 |
|
|
45,562 |
|
|
3 |
|
|
45,559 |
OEM |
|
|
29,531 |
|
|
— |
|
|
29,531 |
|
|
30,778 |
|
|
— |
|
|
30,778 |
Total |
|
|
212,150 |
|
|
14,213 |
|
|
197,937 |
|
|
225,086 |
|
|
18,496 |
|
|
206,590 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Endoscopy |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Endoscopy devices |
|
|
9,509 |
|
|
1,883 |
|
|
7,626 |
|
|
8,163 |
|
|
974 |
|
|
7,189 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
|
$ |
221,659 |
|
$ |
16,096 |
|
$ |
205,563 |
|
$ |
233,249 |
|
$ |
19,470 |
|
$ |
213,779 |
(a) Merit’s core revenue is defined as GAAP
revenue less revenue from certain acquisitions and strategic
transactions. Merit’s core revenue excludes revenues attributable
to (i) the acquisition of (1) the HeRO® Graft in February 2016
(excluded January 2017 only), (2) DFINE, Inc. in July 2016
(excluded through June 2017 only), (3) the assets of Catheter
Connections, Inc. in January 2017 (excluded through January 2018
only), (4) the critical care division of Argon Medical Devices,
Inc. in January 2017 (excluded through January 2018 only), (5) the
assets of Osseon LLC in July 2017 (excluded through June 2018
only), (6) the assets of Laurane Medical S.A.S. in August 2017
(excluded through July 2018 only) (7) ITL Healthcare Pty. Ltd. in
October 2017 (excluded through September 2018 only) (8) certain
divested assets of BD in February 2018 (excluded through January
2019), (9) the assets of DirectACCESS Medical, LLC in May 2018
(excluded through April 2019), (10) Cianna Medical in November 2018
(excluded through October 2019) (11) the assets of Vascular
Insights, LLC in December 2018 (excluded through November 2019)
(12) Brightwater Medical, Inc. in June 2019, and (13) Fibrovein
Holdings Limited in August 2019 and (ii) distribution arrangements
executed with NinePoint Medical, Inc. in April 2018 (excluded
through April 2019) and QXMedical, LLC in May 2018 (excluded
through May 2019).
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 and other financial information,
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, 2019 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 projections; 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; negative changes in economic and industry conditions
in the United States or other countries, particularly changes
resulting from the ongoing COVID-19 pandemic; 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; 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, 2019 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 and its subsidiaries in the United States and other
jurisdictions. Solely for convenience, such trademarks and
tradenames sometimes appear without any “™” or “®” symbol. However,
failure to include such symbols is not intended to suggest, in any
way, that Merit will not assert its rights or the rights of any
applicable licensor, to these trademarks and tradenames.
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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