Merit Medical Reports Results for Quarter Ended June 30, 2021
- Q2 2021 reported revenue of $280.3 million, up 28.4% compared to Q2 2020
- Q2 2021 constant currency revenue, organic* up 25.5% compared to Q2 2020
- Q2 2021 GAAP EPS of $0.09, compared to GAAP loss per share of ($0.34) in Q2 2020
- Q2 2021 non-GAAP EPS* of $0.62, compared to $0.31 in Q2 2020
* Constant currency revenue; constant currency revenue, organic; core revenue; non-GAAP EPS; non-GAAP net income; non-GAAP operating income and margin; non-GAAP gross 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 29, 2021 (GLOBE NEWSWIRE) -- Merit Medical Systems, Inc. (NASDAQ: MMSI), a leading manufacturer and marketer of proprietary medical devices used in interventional, diagnostic and therapeutic procedures, particularly in cardiology, radiology, oncology, critical care and endoscopy, today announced revenue of $280.3 million for the quarter ended June 30, 2021, an increase of 28.4% compared to the quarter ended June 30, 2020. Constant currency revenue, organic* for the second quarter of 2021 was up 25.5% compared to the prior year period.
Merit’s GAAP gross margin for the second quarter of 2021 was 44.3%, compared to GAAP gross margin of 38.6% for the prior year period. Merit’s non-GAAP gross margin* for the second quarter of 2021 was 48.7%, compared to non-GAAP gross margin* of 44.7% for the prior year period.
Merit’s GAAP net income for the second quarter of 2021 was $4.9 million, or $0.09 per share, compared to a GAAP net loss of ($19.1) million, or ($0.34) per share, for the second quarter of 2020. Merit’s non-GAAP net income* for the second quarter of 2021 was $35.3 million, or $0.62 per share, compared to non-GAAP net income* of $17.4 million, or $0.31 per share, for the prior year period.
Merit’s revenue by operating segment and product category for the three and six-month periods ended June 30, 2021, compared to the corresponding periods in 2020, was as follows (unaudited; in thousands, except for percentages):
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
% Change | 2021 | 2020 | % Change | 2021 | 2020 | |||||||||||
Cardiovascular | ||||||||||||||||
Peripheral Intervention | 45.4 | % | $ | 105,600 | $ | 72,635 | 24.3 | % | $ | 198,514 | $ | 159,710 | ||||
Cardiac Intervention | 29.8 | % | 85,653 | 66,005 | 15.7 | % | 160,390 | 138,596 | ||||||||
Custom Procedural Solutions | 7.3 | % | 48,636 | 45,319 | 1.2 | % | 94,057 | 92,940 | ||||||||
OEM | 14.8 | % | 32,403 | 28,218 | 6.8 | % | 60,337 | 56,475 | ||||||||
Total | 28.3 | % | 272,292 | 212,177 | 14.6 | % | 513,298 | 447,721 | ||||||||
Endoscopy | ||||||||||||||||
Endoscopy devices | 29.7 | % | 8,033 | 6,194 | 12.5 | % | 15,940 | 14,175 | ||||||||
Total | 28.4 | % | $ | 280,325 | $ | 218,371 | 14.6 | % | $ | 529,238 | $ | 461,896 | ||||
“We delivered better-than-expected revenue results for the second quarter, driven by strong execution and improving customer demand trends as the global recovery continues to progress,” said Fred P. Lampropoulos, Merit’s Chairman and Chief Executive Officer. “Other financial results for the second quarter were impressive as well; the combination of our strong top-line growth, and contributions from our multi-year strategic initiatives undertaken as part of our Foundations for Growth Program, resulted in significant expansion in our non-GAAP margins* and growth in our non-GAAP net income* and non-GAAP EPS* of 103% and 100%, respectively, year-over-year.”
Mr. Lampropoulos continued: “We are pleased with the strong financial results we have delivered over the first half of 2021 and remain optimistic in our outlook for measured improvement in the operating environment as we move through the remainder of 2021. We have updated our 2021 guidance as a result of our better-than-expected second quarter results and a more favorable outlook for growth in the second half of 2021. We now expect total revenue growth, on a constant currency basis*, of approximately 9% to 10% year-over-year and, importantly, excluding the impact of divestitures and product sales that uniquely benefitted from pandemic-related demand trends in 2020, our constant currency revenue guidance* now reflects growth of approximately 12% to 13% in 2021. We also continue to expect profitability improvement and notable free cash flow* generation driven by strong execution and contributions from our multi-year strategic initiatives undertaken as part of our Foundations for Growth Program.”
As of June 30, 2021, Merit had cash on hand of approximately $70.0 million, long term debt obligations of approximately $293 million, and available borrowing capacity of $444 million, compared to cash on hand of approximately $56.9 million, long term debt obligations of $352 million, and available borrowing capacity of $389 million as of December 31, 2020.
Updated Fiscal Year 2021 Financial Guidance
Based upon information currently available to Merit’s management, Merit is updating net revenue expectations for the year ending December 31, 2021. Absent material acquisitions, non-recurring transactions or other factors beyond Merit’s control, Merit now forecasts the following:
Financial Measure | Prior Guidance | Revised Guidance | ||||
Net Sales | $994 - $1,014 million | $1,060 - $1,070 million | ||||
GAAP | ||||||
Net Income | $47.3 - $55.9 million | $43.2 - $51.8 million | ||||
Earnings Per Share | $0.83 - $0.98 | $0.75 - $0.91 | ||||
Non-GAAP | ||||||
Net Income | $104.8 - $112.7 million | $118.8 - $127.1 million | ||||
Earnings Per Share | $1.84 - $1.98 | $2.07 - $2.22 | ||||
The updated net revenue range continues to assume a benefit from the changes in foreign currency exchange rates in the range of approximately $10.5 million to $11.5 million. The prior guidance range assumed growth of approximately 3.1% to 5.2% year over year and a benefit from changes in foreign currency exchange rates in the range of approximately $8.0 million to $8.5 million.
The updated fiscal year 2021 net revenue guidance range assumes:
- Net revenue from the cardiovascular segment of between $1,028 million and $1,038 million, representing an increase of approximately 10% to 11% year-over-year as compared to net revenue of $934.2 million for the twelve months ended December 31, 2020. The prior guidance assumed growth of approximately 3.1% to 5.2% year-over-year.
- Net revenue from the endoscopy segment of between $32.5 million and $32.7 million, representing an increase of approximately 9.6% to 10.2% year-over-year as compared to net revenue of $29.7 million for the twelve months ended December 31, 2020. The prior guidance assumed growth of approximately 4% to 7% year-over-year.
Merit’s financial guidance for the year ending December 31, 2021 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 (conference ID 3993753) today, Thursday, July 29, 2021, 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)
June 30, | |||||||
2021 | December 31, | ||||||
(Unaudited) | 2020 | ||||||
ASSETS | |||||||
Current Assets | |||||||
Cash and cash equivalents | $ | 69,672 | $ | 56,916 | |||
Trade receivables, net | 153,443 | 146,641 | |||||
Other receivables | 8,376 | 7,774 | |||||
Inventories | 194,524 | 198,019 | |||||
Prepaid expenses and other assets | 16,541 | 13,120 | |||||
Prepaid income taxes | 3,683 | 3,688 | |||||
Income tax refund receivables | 3,543 | 3,549 | |||||
Total current assets | 449,782 | 429,707 | |||||
Property and equipment, net | 373,801 | 382,728 | |||||
Intangible assets, net | 342,792 | 367,915 | |||||
Goodwill | 362,810 | 363,533 | |||||
Deferred income tax assets | 4,614 | 4,597 | |||||
Operating lease right-of-use assets | 70,767 | 78,240 | |||||
Other assets | 37,827 | 37,676 | |||||
Total Assets | $ | 1,642,393 | $ | 1,664,396 | |||
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||
Current Liabilities | |||||||
Trade payables | $ | 53,809 | $ | 49,837 | |||
Accrued expenses | 135,013 | 111,944 | |||||
Current portion of long-term debt | 7,500 | 7,500 | |||||
Current operating lease liabilities | 11,721 | 12,903 | |||||
Income taxes payable | 2,561 | 2,820 | |||||
Total current liabilities | 210,604 | 185,004 | |||||
Long-term debt | 284,900 | 343,722 | |||||
Deferred income tax liabilities | 33,271 | 33,312 | |||||
Long-term income taxes payable | 347 | 347 | |||||
Liabilities related to unrecognized tax benefits | 1,016 | 1,016 | |||||
Deferred compensation payable | 17,055 | 16,808 | |||||
Deferred credits | 1,869 | 1,923 | |||||
Long-term operating lease liabilities | 65,841 | 70,941 | |||||
Other long-term obligations | 35,056 | 52,748 | |||||
Total liabilities | 649,959 | 705,821 | |||||
Stockholders' Equity | |||||||
Common stock | 623,591 | 606,224 | |||||
Retained earnings | 373,677 | 357,803 | |||||
Accumulated other comprehensive loss | (4,834 | ) | (5,452 | ) | |||
Total stockholders' equity | 992,434 | 958,575 | |||||
Total Liabilities and Stockholders' Equity | $ | 1,642,393 | $ | 1,664,396 | |||
CONSOLIDATED STATEMENTS OF INCOME (LOSS)
(Unaudited; in thousands except per share amounts)
Three Months Ended | Six Months Ended | ||||||||||||||
June 30, | June 30, | ||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||
NET SALES | $ | 280,325 | $ | 218,371 | $ | 529,238 | $ | 461,896 | |||||||
COST OF SALES | 156,186 | 134,155 | 293,205 | 273,896 | |||||||||||
GROSS PROFIT | 124,139 |
By: GlobeNewswire
- 29 Jul 2021
Return to news
Upcoming Life Sciences Events
|