Merit Medical Reports Fourth Quarter and Full Year 2024 Results and Issues Fiscal Year 2025 Guidance
Merit Medical Systems (NASDAQ: MMSI) reported strong Q4 2024 results with revenue of $355.2 million, up 9.4% year-over-year. The company achieved constant currency revenue growth of 10.1% and organic growth of 6.1%.
Key Q4 metrics include GAAP operating margin of 10.3%, non-GAAP operating margin of 19.6%, and GAAP EPS of $0.46. Free cash flow increased 18.4% to $65.3 million.
For full-year 2024, Merit reported revenue of $1.357 billion, up 7.9%, with GAAP EPS of $2.03 (up 25.3%) and free cash flow of $185.7 million (up 67.5%).
Notable developments include the acquisition of Cook Medical's lead management portfolio, FDA approval of the Wrapsody device for dialysis patients, and integration of the EsophyX Z+ device.
The company issued FY2025 guidance projecting revenue of $1.470-1.490 billion (8-10% growth) and non-GAAP EPS of $3.58-3.70 (4-7% growth).
Merit Medical Systems (NASDAQ: MMSI) ha riportato risultati solidi per il quarto trimestre del 2024, con un fatturato di 355,2 milioni di dollari, in aumento del 9,4% rispetto all'anno precedente. L'azienda ha registrato una crescita del fatturato a cambio costante del 10,1% e una crescita organica del 6,1%.
I principali indicatori del quarto trimestre includono un margine operativo GAAP del 10,3%, un margine operativo non GAAP del 19,6% e un utile per azione GAAP di 0,46 dollari. Il flusso di cassa libero è aumentato del 18,4%, raggiungendo i 65,3 milioni di dollari.
Per l'intero anno 2024, Merit ha riportato un fatturato di 1,357 miliardi di dollari, in aumento del 7,9%, con un utile per azione GAAP di 2,03 dollari (in aumento del 25,3%) e un flusso di cassa libero di 185,7 milioni di dollari (in aumento del 67,5%).
Sviluppi notevoli includono l'acquisizione del portafoglio di gestione dei lead di Cook Medical, l'approvazione da parte della FDA del dispositivo Wrapsody per i pazienti in dialisi e l'integrazione del dispositivo EsophyX Z+.
L'azienda ha emesso una previsione per l'anno fiscale 2025 che prevede un fatturato di 1,470-1,490 miliardi di dollari (crescita dell'8-10%) e un utile per azione non GAAP di 3,58-3,70 dollari (crescita del 4-7%).
Merit Medical Systems (NASDAQ: MMSI) reportó resultados sólidos en el cuarto trimestre de 2024, con ingresos de $355.2 millones, un aumento del 9.4% en comparación con el año anterior. La compañía logró un crecimiento de ingresos a tipo de cambio constante del 10.1% y un crecimiento orgánico del 6.1%.
Las métricas clave del cuarto trimestre incluyen un margen operativo GAAP del 10.3%, un margen operativo no GAAP del 19.6% y un EPS GAAP de $0.46. El flujo de caja libre aumentó un 18.4% a $65.3 millones.
Para el año completo 2024, Merit reportó ingresos de $1.357 mil millones, un aumento del 7.9%, con un EPS GAAP de $2.03 (un aumento del 25.3%) y un flujo de caja libre de $185.7 millones (un aumento del 67.5%).
Desarrollos notables incluyen la adquisición del portafolio de gestión de leads de Cook Medical, la aprobación de la FDA del dispositivo Wrapsody para pacientes en diálisis y la integración del dispositivo EsophyX Z+.
La compañía emitió una guía para el año fiscal 2025 proyectando ingresos de $1.470-1.490 mil millones (crecimiento del 8-10%) y un EPS no GAAP de $3.58-3.70 (crecimiento del 4-7%).
메리트 메디컬 시스템즈 (NASDAQ: MMSI)는 2024년 4분기 실적을 발표하며 3억 5,520만 달러의 매출을 기록했으며, 이는 전년 대비 9.4% 증가한 수치입니다. 회사는 상수 통화 기준으로 10.1%의 매출 성장과 6.1%의 유기적 성장을 달성했습니다.
4분기 주요 지표로는 GAAP 운영 마진 10.3%, 비 GAAP 운영 마진 19.6%, GAAP 주당순이익(EPS) 0.46 달러가 포함됩니다. 자유 현금 흐름은 18.4% 증가하여 6,530만 달러에 달했습니다.
2024년 전체 연도에 대해 메리트는 13억 5,700만 달러의 매출을 보고했으며, 이는 7.9% 증가한 수치입니다. GAAP EPS는 2.03 달러(25.3% 증가)이며, 자유 현금 흐름은 1억 8,570만 달러(67.5% 증가)입니다.
주요 개발 사항으로는 쿡 메디컬의 리드 관리 포트폴리오 인수, 투석 환자를 위한 Wrapsody 장치의 FDA 승인, EsophyX Z+ 장치의 통합이 포함됩니다.
회사는 2025 회계연도 가이던스를 발표하며 14억 7천만에서 14억 9천만 달러(8-10% 성장)와 비 GAAP EPS 3.58-3.70 달러(4-7% 성장)를 예상하고 있습니다.
Merit Medical Systems (NASDAQ: MMSI) a annoncé des résultats solides pour le quatrième trimestre 2024, avec un chiffre d'affaires de 355,2 millions de dollars, en hausse de 9,4% par rapport à l'année précédente. L'entreprise a enregistré une croissance du chiffre d'affaires à taux de change constant de 10,1% et une croissance organique de 6,1%.
Les indicateurs clés du quatrième trimestre comprennent une marge opérationnelle GAAP de 10,3%, une marge opérationnelle non GAAP de 19,6% et un BPA GAAP de 0,46 dollar. Le flux de trésorerie libre a augmenté de 18,4% pour atteindre 65,3 millions de dollars.
Pour l'année complète 2024, Merit a rapporté un chiffre d'affaires de 1,357 milliard de dollars, en hausse de 7,9%, avec un BPA GAAP de 2,03 dollars (en hausse de 25,3%) et un flux de trésorerie libre de 185,7 millions de dollars (en hausse de 67,5%).
Parmi les développements notables, on trouve l'acquisition du portefeuille de gestion des leads de Cook Medical, l'approbation par la FDA du dispositif Wrapsody pour les patients en dialyse et l'intégration du dispositif EsophyX Z+.
L'entreprise a publié une prévision pour l'exercice 2025 projetant un chiffre d'affaires de 1,470 à 1,490 milliard de dollars (croissance de 8 à 10%) et un BPA non GAAP de 3,58 à 3,70 dollars (croissance de 4 à 7%).
Merit Medical Systems (NASDAQ: MMSI) hat im vierten Quartal 2024 starke Ergebnisse mit einem Umsatz von 355,2 Millionen Dollar gemeldet, was einem Anstieg von 9,4% im Vergleich zum Vorjahr entspricht. Das Unternehmen erzielte ein Umsatzwachstum in konstanter Währung von 10,1% und ein organisches Wachstum von 6,1%.
Wichtige Kennzahlen für das vierte Quartal umfassen eine GAAP-Betriebsrendite von 10,3%, eine Non-GAAP-Betriebsrendite von 19,6% und einen GAAP-EPS von 0,46 Dollar. Der freie Cashflow stieg um 18,4% auf 65,3 Millionen Dollar.
Für das Gesamtjahr 2024 berichtete Merit von einem Umsatz von 1,357 Milliarden Dollar, was einem Anstieg von 7,9% entspricht, mit einem GAAP-EPS von 2,03 Dollar (Anstieg um 25,3%) und einem freien Cashflow von 185,7 Millionen Dollar (Anstieg um 67,5%).
Bemerkenswerte Entwicklungen umfassen die Übernahme des Lead-Management-Portfolios von Cook Medical, die FDA-Zulassung des Wrapsody-Geräts für Dialysepatienten und die Integration des EsophyX Z+-Geräts.
Das Unternehmen gab eine Prognose für das Geschäftsjahr 2025 heraus, die einen Umsatz von 1,470-1,490 Milliarden Dollar (Wachstum von 8-10%) und einen Non-GAAP-EPS von 3,58-3,70 Dollar (Wachstum von 4-7%) prognostiziert.
- Revenue growth of 9.4% in Q4 2024 to $355.2M
- Non-GAAP operating margin improved to 19.6% from 16.6%
- Free cash flow increased 67.5% to $185.7M in FY2024
- GAAP EPS grew 25.3% to $2.03 for FY2024
- FDA approval received for Wrapsody device
- Q4 GAAP EPS declined 2.6% to $0.46
- Total debt of $747.5M as of December 2024
- Lower projected EPS growth (4-7%) compared to revenue growth (8-10%) for 2025
Insights
Merit Medical Systems (MMSI) delivered exceptional Q4 and full-year 2024 financial results that demonstrate the company's successful transition from a pure growth story to a more balanced model emphasizing profitability and cash generation alongside strategic expansion.
The Q4 revenue of
Merit's margin expansion has been particularly impressive. The Q4 non-GAAP gross margin improved 310 basis points to
Perhaps most impressive is Merit's free cash flow generation of
The company's 2025 guidance projects continued strong revenue growth of
Strategically, Merit's recent acquisitions and FDA approvals strengthen its position in high-growth segments. The Wrapsody endoprosthesis FDA approval addresses a critical need in dialysis patient care, while the Cook Medical acquisition enhances Merit's cardiac intervention portfolio. These moves diversify revenue streams and create cross-selling opportunities with Merit's existing product lines.
Merit's transformation into a company that delivers both growth and improving profitability positions it well in the current healthcare environment where cost pressures remain intense but innovation is still rewarded. The company appears well-positioned to continue its momentum through 2025 with a strengthened product portfolio and demonstrated operational excellence.
Merit Medical's Q4 and full-year 2024 results reveal a company successfully executing a sophisticated portfolio diversification strategy while simultaneously improving operational efficiency. The revenue growth of
The FDA approval of the Wrapsody endoprosthesis represents a significant milestone with substantial market potential. Maintaining vascular access patency remains one of the most challenging aspects of dialysis patient management, with current solutions often failing within 6-12 months. With approximately 2 million patients worldwide receiving hemodialysis and access dysfunction being the leading cause of hospitalizations in this population, Wrapsody addresses a critical unmet need. The device's cell-impermeable design potentially offers longer-term patency than conventional stent grafts, which could translate to fewer interventions and significant cost savings for the healthcare system.
The acquisition of Cook Medical's lead management portfolio strategically expands Merit's presence in the cardiac rhythm management space. Lead extraction and management procedures are increasing due to the growing number of cardiac device implantations and longer patient lifespans, creating more instances of lead failure or infection requiring extraction. This acquisition complements Merit's existing cardiac intervention portfolio and provides cross-selling opportunities with their vascular access and hemostasis products used in electrophysiology procedures.
Merit's impressive margin expansion – with Q4 non-GAAP gross margin improving 310 basis points to
The company's 2025 guidance projects continued strong revenue growth of
Strategically, Merit has positioned itself at the intersection of several favorable healthcare trends. Their focus on minimally invasive technologies aligns with the shift toward outpatient procedures. Their portfolio spans multiple specialties – interventional cardiology, radiology, oncology, and gastroenterology – providing diversification against reimbursement pressures in any single area. Additionally, their products address procedural efficiency and patient outcomes, supporting value-based care initiatives.
Merit's transformation from a primarily commodity medical device supplier to a provider of specialized, high-value therapeutic solutions is driving both top-line growth and margin expansion. With a strengthened product portfolio addressing significant clinical needs, robust cash generation, and demonstrated operational excellence, Merit appears well-positioned to continue outperforming in 2025 and beyond.
Fourth Quarter Highlights†
- Reported revenue of
$355.2 million , up9.4% - Constant currency revenue* and constant currency revenue, organic* up
10.1% and up6.1% , respectively - GAAP operating margin of
10.3% , compared to10.4% in prior year period - Non-GAAP operating margin* of
19.6% , compared to16.6% in prior year period - GAAP EPS
$0.46 , down2.6% , - Non-GAAP EPS*
$0.93 , up25.8% , and - Free cash flow* generation of
$65.3 million , up18.4%
Fiscal Year 2024 Highlights†
- Reported revenue of
$1.35 7 billion, up7.9% - Constant currency revenue* and constant currency revenue, organic* up
8.5% and up6.0% , respectively - GAAP operating margin of 11.5 %, compared to
9.9% in prior year - Non-GAAP operating margin* of
19.0% , compared to17.2% in prior year - GAAP EPS
$2.03 , up25.3% , - Non-GAAP EPS*
$3.46 , up21.3% , and - Free cash flow* generation of
$185.7 million , up67.5%
Fourth Quarter Business Developments
- Completed the acquisition of lead management portfolio of medical devices and certain related assets from Cook Medical Holdings, LLC
- Announced FDA premarket approval of the Wrapsody® Cell-Impermeable Endoprosthesis device, which is intended to extend long-term vessel patency in dialysis patients
- Substantially completed integration of the production, distribution and sale of the EsophyX® Z+ device previously acquired from Endogastric Solutions, Inc.
Fiscal Year 2025 Guidance
- Revenue of
$1.47 0 billion to$1.49 0 billion, up8% -10% year-over-year - Non-GAAP EPS of
$3.58 t o$3.70 , up4% -7% year-over-year
† Comparisons noted in the bullet points are calculated for the current quarter compared with the fourth quarter of 2023 or for the current year compared with fiscal year 2023, as applicable, unless otherwise specified. Amounts in this release are rounded while percentages are calculated from the underlying amounts.
* Constant currency revenue; constant currency revenue, organic; non-GAAP gross profit and margin; non-GAAP operating income and margin; non-GAAP net income; non-GAAP EPS; and free cash flow figures (used here and below) 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, Feb. 25, 2025 (GLOBE NEWSWIRE) -- Merit Medical Systems, Inc. (NASDAQ: MMSI), a leading global manufacturer and marketer of healthcare technology, today announced revenue of
“We finished 2024 with strong momentum by delivering better-than-expected financial results in the fourth quarter, reflecting continued strong execution,” said Fred P. Lampropoulos, Merit’s Chairman and Chief Executive Officer. “Our constant currency revenue, organic, and our constant currency total revenue exceeded the high-end of our expectations in the fourth quarter. We delivered impressive year-over-year improvements in our non-GAAP operating margin and our non-GAAP earnings per share, which increased 305 basis points and
Mr. Lampropoulos continued: “We are introducing 2025 financial guidance which reflects confidence in our team’s ability to deliver continued strong execution, stable constant currency growth, improving profitability and solid free cash flow generation. We also remain focused on our Continued Growth Initiatives Program and on achieving the related financial targets for the three-year period ending December 31, 2026.”
Merit’s revenue by operating segment and product category for the three and twelve-month periods ended December 31, 2024 and 2023 was as follows (unaudited; in thousands, except for percentages):
| Three Months Ended | |||||||||||||||||||||||
| Reported | Constant Currency * | ||||||||||||||||||||||
| December 31, | Impact of foreign | December 31, | |||||||||||||||||||||
| 2024 | 2023 | % Change | exchange | 2024 | % Change | ||||||||||||||||||
| Cardiovascular | |||||||||||||||||||||||
| Peripheral Intervention | $ | 140,363 | $ | 134,143 | 4.6 | % | $ | 1,152 | $ | 141,515 | 5.5 | % | |||||||||||
| Cardiac Intervention | 95,673 | 90,242 | 6.0 | % | 836 | 96,509 | 6.9 | % | |||||||||||||||
| Custom Procedural Solutions | 51,223 | 49,624 | 3.2 | % | 150 | 51,373 | 3.5 | % | |||||||||||||||
| OEM | 50,441 | 41,216 | 22.4 | % | 44 | 50,485 | 22.5 | % | |||||||||||||||
| Total | 337,700 | 315,225 | 7.1 | % | 2,182 | 339,882 | 7.8 | % | |||||||||||||||
| Endoscopy | |||||||||||||||||||||||
| Endoscopy Devices | 17,458 | 9,290 | 87.9 | % | 19 | 17,477 | 88.1 | % | |||||||||||||||
| Total | $ | 355,158 | $ | 324,515 | 9.4 | % | $ | 2,201 | $ | 357,359 | 10.1 | % | |||||||||||
| Year Ended | |||||||||||||||||||||||
| Reported | Constant Currency * | ||||||||||||||||||||||
| December 31, | Impact of foreign | December 31, | |||||||||||||||||||||
| 2024 | 2023 | % Change | exchange | 2024 | % Change | ||||||||||||||||||
| Cardiovascular | |||||||||||||||||||||||
| Peripheral Intervention | $ | 552,168 | $ | 502,220 | 9.9 | % | $ | 2,852 | $ | 555,020 | 10.5 | % | |||||||||||
| Cardiac Intervention | 370,993 | 358,451 | 3.5 | % | 3,022 | 374,015 | 4.3 | % | |||||||||||||||
| Custom Procedural Solutions | 201,201 | 195,333 | 3.0 | % | 1,192 | 202,393 | 3.6 | % | |||||||||||||||
| OEM | 177,382 | 164,556 | 7.8 | % | 46 | 177,428 | 7.8 | % | |||||||||||||||
| Total | 1,301,744 | 1,220,560 | 6.7 | % | 7,112 | 1,308,856 | 7.2 | % | |||||||||||||||
| Endoscopy | |||||||||||||||||||||||
| Endoscopy Devices | 54,770 | 36,806 | 48.8 | % | 95 | 54,865 | 49.1 | % | |||||||||||||||
| Total | $ | 1,356,514 | $ | 1,257,366 | 7.9 | % | $ | 7,207 | $ | 1,363,721 | 8.5 | % | |||||||||||
Merit’s GAAP gross margin for the fourth quarter of 2024 was
Merit’s GAAP net income for the fourth quarter of 2024 was
As of December 31, 2024, Merit had cash and cash equivalents of
Fiscal Year 2025 Financial Guidance
Based upon the information currently available to Merit’s management, for the year ending December 31, 2025, absent material acquisitions, non-recurring transactions or other factors beyond Merit’s current expectations, Merit anticipates the following financial results:
Revenue and Earnings Guidance*
| Prior Year(As Reported) | Guidance | |||
| Financial Measure | Year Ended | Year Ending | % Change | |
| December 31, 2024 | December 31, 2025 | Y/Y | ||
| Net Sales | ||||
| Cardiovascular Segment | ||||
| Endoscopy Segment | ||||
| Non-GAAP | ||||
| Earnings Per Share** | ||||
*Percentage figures approximated; dollar figures may not foot due to rounding
**Merit’s non-GAAP earnings per share reflect the dilutive impact of its
2025 Net Sales Guidance - % Change from Prior Year (Constant Currency) Reconciliation*
| Guidance | |||
| Low | High | ||
| 2025 Net Sales Guidance - % Change from Prior Year (GAAP) | |||
| Estimated impact of foreign currency exchange rate fluctuations | |||
| 2025 Net Sales Guidance - % Change from Prior Year (Constant Currency) | |||
*Percentage figures approximated and may not foot due to rounding
Merit does not provide guidance for GAAP reported financial measures (other than revenue) or a reconciliation of forward-looking non-GAAP financial measures to the most directly comparable GAAP reported financial measures (other than revenue) because Merit is unable to predict with reasonable certainty the financial impact of various items which could impact Merit’s future financial results, such as expenses related to acquisitions or other extraordinary transactions, non-cash expenses related to amortization or write-off of previously acquired tangible and intangible assets, certain employee termination benefits, performance-based stock compensation expenses, expenses resulting from non-ordinary course litigation or administrative proceedings and resulting settlements, governmental proceedings, and changes in governmental or industry regulations. These items are uncertain, depend on various factors, and could have a material impact on GAAP reported results for the guidance period. For the same reasons, Merit is unable to address the significance of the unavailable information, which could be material to future results. Specifically, Merit is not, without unreasonable effort, able to reliably predict the impact of these items and Merit believes inclusion of a reconciliation of these forward-looking non-GAAP measures to their GAAP counterparts could be confusing to investors or cause undue reliance.
Merit’s financial guidance for the year ending December 31, 2025 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, February 25, 2025, at 5:00 p.m., Eastern Time. 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) | |||||||
| December 31, | |||||||
| 2024 | December 31, | ||||||
| (Unaudited) | 2023 | ||||||
| ASSETS | |||||||
| Current Assets | |||||||
| Cash and cash equivalents | $ | 376,715 | $ | 587,036 | |||
| Trade receivables, net | 190,243 | 177,885 | |||||
| Other receivables | 16,588 | 10,517 | |||||
| Inventories | 306,063 | 303,871 | |||||
| Prepaid expenses and other assets | 28,544 | 24,286 | |||||
| Prepaid income taxes | 3,286 | 4,016 | |||||
| Income tax refund receivables | 2,335 | 859 | |||||
| Total current assets | 923,774 | 1,108,470 | |||||
| Property and equipment, net | 386,165 | 383,523 | |||||
| Intangible assets, net | 498,265 | 325,883 | |||||
| Goodwill | 463,511 | 382,240 | |||||
| Deferred income tax assets | 16,044 | 7,288 | |||||
| Operating lease right-of-use assets | 65,508 | 63,047 | |||||
| Other assets | 65,336 | 54,793 | |||||
| Total Assets | $ | 2,418,603 | $ | 2,325,244 | |||
| LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||
| Current Liabilities | |||||||
| Trade payables | $ | 68,502 | $ | 65,944 | |||
| Accrued expenses | 134,077 | 120,447 | |||||
| Current operating lease liabilities | 10,331 | 12,087 | |||||
| Income taxes payable | 3,492 | 5,086 | |||||
| Total current liabilities | 216,402 | 203,564 | |||||
| Long-term debt | 729,551 | 823,013 | |||||
| Deferred income tax liabilities | 240 | 5,547 | |||||
| Long-term income taxes payable | — | 347 | |||||
| Liabilities related to unrecognized tax benefits | 2,118 | 1,912 | |||||
| Deferred compensation payable | 19,197 | 17,167 | |||||
| Deferred credits | 1,502 | 1,605 | |||||
| Long-term operating lease liabilities | 54,783 | 56,259 | |||||
| Other long-term obligations | 15,451 | 13,830 | |||||
| Total liabilities | 1,039,244 | 1,123,244 | |||||
| Stockholders' Equity | |||||||
| Common stock | 703,219 | 638,150 | |||||
| Retained earnings | 695,541 | 575,184 | |||||
| Accumulated other comprehensive loss | (19,401 | ) | (11,334 | ) | |||
| Total stockholders' equity | 1,379,359 | 1,202,000 | |||||
| Total Liabilities and Stockholders' Equity | $ | 2,418,603 | $ | 2,325,244 | |||
| CONSOLIDATED STATEMENTS OF INCOME (Unaudited, in thousands except per share amounts) | |||||||||||||||
| Three Months Ended | Year Ended | ||||||||||||||
| December 31, | December 31, | ||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||
| Net sales | $ | 355,158 | $ | 324,515 | $ | 1,356,514 | $ | 1,257,366 | |||||||
| Cost of sales | 182,175 | 173,986 | 713,181 | 673,494 | |||||||||||
| Gross profit | 172,983 | 150,529 | 643,333 | 583,872 | |||||||||||
| Operating expenses: | |||||||||||||||
| Selling, general and administrative | 111,074 | 95,751 | 399,731 | 373,676 | |||||||||||
| Research and development | 25,194 | 21,639 | 87,466 | 82,728 | |||||||||||
| Impairment charges | — | — | — | 270 | |||||||||||
| Contingent consideration expense (benefit) | 151 | (473 | ) | 443 | 1,704 | ||||||||||
| Acquired in-process research and development | — | — | — | 1,550 | |||||||||||
| Total operating expenses | 136,419 | 116,917 | 487,640 | 459,928 | |||||||||||
| Income from operations | 36,564 | 33,612 | 155,693 | 123,944 | |||||||||||
| Other income (expense): | |||||||||||||||
| Interest income | 4,741 | 1,923 | 26,230 | 2,456 | |||||||||||
| Interest expense | (7,993 | ) | (4,977 | ) | (31,219 | ) | (15,511 | ) | |||||||
| Other income (expense) — net | (167 | ) | 909 | (711 | ) | 1,200 | |||||||||
| Total other expense — net | (3,419 | ) | (2,145 | ) | (5,700 | ) | (11,855 | ) | |||||||
| Income before income taxes | 33,145 | 31,467 | 149,993 | 112,089 | |||||||||||
| Income tax expense | 5,198 | 3,838 | 29,636 | 17,678 | |||||||||||
| Net income | $ | 27,947 | $ | 27,629 | $ | 120,357 | $ | 94,411 | |||||||
| Earnings per common share | |||||||||||||||
| Basic | $ | 0.48 | $ | 0.48 | $ | 2.07 | $ | 1.64 | |||||||
| Diluted | $ | 0.46 | $ | 0.47 | $ | 2.03 | $ | 1.62 | |||||||
| Weighted average shares outstanding | |||||||||||||||
| Basic | 58,541 | 57,793 | 58,218 | 57,593 | |||||||||||
| Diluted | 60,613 | 58,385 | 59,365 | 58,356 | |||||||||||
| CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited, in thousands) | |||||||
| Year Ended | |||||||
| December 31, | |||||||
| 2024 | 2023 | ||||||
| CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||
| Net income | $ | 120,357 | $ | 94,411 | |||
| Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
| Depreciation and amortization | 102,709 | 89,985 | |||||
| Gain on disposition of a business | — | (431 | ) | ||||
| Write-off of certain intangible assets and other long-term assets | 456 | 506 | |||||
| Amortization of right-of-use operating lease assets | 12,023 | 11,307 | |||||
| Fair value adjustments related to contingent consideration liabilities | 443 | 1,704 | |||||
| Acquired in-process research and development | — | 1,550 | |||||
| Deferred income taxes | (14,873 | ) | (12,643 | ) | |||
| Stock-based compensation expense | 28,473 | 21,333 | |||||
| Other adjustments | 8,156 | 7,451 | |||||
| Changes in operating assets and liabilities, net of acquisitions and divestitures | (36,945 | ) | (70,022 | ) | |||
| Total adjustments | 100,442 | 50,740 | |||||
| Net cash, cash equivalents, and restricted cash provided by operating activities | 220,799 | 145,151 | |||||
| CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||
| Capital expenditures for property and equipment | (35,140 | ) | (34,290 | ) | |||
| Cash paid for notes receivable and other investments | (10,433 | ) | (4,755 | ) | |||
| Cash paid in acquisitions, net of cash acquired | (320,182 | ) | (134,523 | ) | |||
| Other investing, net | (2,898 | ) | (1,779 | ) | |||
| Net cash, cash equivalents, and restricted cash used in investing activities | (368,653 | ) | (175,347 | ) | |||
| CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||
| Proceeds from issuance of common stock | 40,908 | 15,584 | |||||
| Proceeds from (payments on) long-term debt | (99,063 | ) | 619,579 | ||||
| Purchase of capped call option | — | (66,528 | ) | ||||
| Long-term debt issuance costs | — | (677 | ) | ||||
| Contingent payments related to acquisitions | (261 | ) | (3,569 | ) | |||
| Payment of taxes related to an exchange of common stock | (1,592 | ) | (5,123 | ) | |||
| Net cash, cash equivalents, and restricted cash provided by (used in) financing activities | (60,008 | ) | 559,266 | ||||
| Effect of exchange rates on cash | (2,515 | ) | (484 | ) | |||
| Net increase (decrease) in cash, cash equivalents and restricted cash | (210,377 | ) | 528,586 | ||||
| CASH, CASH EQUIVALENTS AND RESTRICTED CASH: | |||||||
| Beginning of period | 589,144 | 60,558 | |||||
| End of period | $ | 378,767 | $ | 589,144 | |||
| RECONCILIATION OF CASH, CASH EQUIVALENTS AND RESTRICTED CASH TO THE CONSOLIDATED BALANCE SHEETS: | |||||||
| Cash and cash equivalents | 376,715 | 587,036 | |||||
| Restricted cash reported in prepaid expenses and other current assets | 2,052 | 2,108 | |||||
| Total cash, cash equivalents and restricted cash | $ | 378,767 | $ | 589,144 | |||
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 the non-GAAP financial measures 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. Non-GAAP financial measures used in this release include:
- constant currency revenue;
- constant currency revenue, organic;
- non-GAAP gross profit and margin;
- non-GAAP operating income and margin;
- non-GAAP net income;
- non-GAAP earnings per share; and
- free cash flow.
Merit’s management team uses these non-GAAP financial measures 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 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 gross profit and margin, non-GAAP operating income and margin, non-GAAP net income, and non-GAAP earnings per share (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 or other extraordinary transactions, non-cash expenses related to amortization or write-off of previously acquired tangible and intangible assets, certain employee termination benefits, expenses resulting from non-ordinary course litigation or administrative proceedings and resulting settlements, governmental proceedings or changes in tax or industry regulations, gains or losses on disposal of certain assets, 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 readers to review the reconciliations of its non-GAAP financial measures to their most directly comparable GAAP financial measures 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 constant currency revenue adjustments of
Constant Currency Revenue, Organic
Merit’s constant currency revenue, organic, is defined, with respect to prior fiscal year periods, as GAAP revenue. With respect to current fiscal year periods, constant currency revenue, organic, is defined as constant currency revenue (as defined above), less revenue from certain acquisitions. For the three-month period ended December 31, 2024, Merit’s constant currency revenue, organic, excludes revenues attributable to (i) the assets acquired from Cook Medical Holdings, LLC (“Cook Medical”) in November 2024 and (ii) the assets acquired from EndoGastric Solutions, Inc. (“EGS”) in July 2024. For the twelve-month period ended December 31, 2024, Merit’s constant currency revenue, organic, excludes revenues attributable to (a) the assets acquired from EGS in July 2024, (b) the assets acquired from Cook Medical in November 2024 and (c) the assets acquired from AngioDynamics, Inc. in June 2023.
Non-GAAP Gross Profit and Margin
Non-GAAP gross profit is calculated by reducing GAAP cost of sales by amounts recorded for amortization of intangible assets, corporate restructuring charges, and inventory mark-up related to acquisitions. Non-GAAP gross margin is calculated by dividing non-GAAP gross profit by reported net sales.
Non-GAAP Operating Income and Margin
Non-GAAP operating income is calculated by adjusting GAAP operating income 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 acquisitions or other extraordinary transactions, non-cash expenses related to amortization or write-off of previously acquired tangible and intangible assets, certain employee termination benefits, performance-based stock compensation expenses, expenses resulting from non-ordinary course litigation or administrative proceedings and resulting settlements, governmental proceedings, and changes in governmental or industry regulations, as well as other items referenced in the tables below. Non-GAAP operating margin is calculated by dividing non-GAAP operating income by reported net sales.
Non-GAAP Net Income
Non-GAAP net income is calculated by adjusting GAAP net income for the items set forth in the definition of non-GAAP operating income above, as well as for expenses related to debt issuance costs, gains or losses on disposal of certain assets and 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.
Free Cash Flow
Free cash flow is defined as cash flow from operations calculated in accordance with GAAP, less capital expenditures for property and equipment calculated in accordance with GAAP, as set forth in the consolidated statement of cash flows.
Non-GAAP Financial Measure Reconciliations
The following tables set forth supplemental financial data and corresponding reconciliations of non-GAAP financial measures to Merit’s corresponding financial measures prepared in accordance with GAAP, in each case, for the three and twelve-month periods ended December 31, 2024 and 2023. The non-GAAP income adjustments referenced in the following tables do not reflect non-performance-based stock compensation expense of approximately
Reconciliation of GAAP Net Income to Non-GAAP Net Income
(Unaudited, in thousands except per share amounts)
| Three Months Ended | |||||||||||||||
| December 31, 2024 | |||||||||||||||
| Pre-Tax | Tax Impact | After-Tax | Per Share Impact | ||||||||||||
| GAAP net income | $ | 33,145 | $ | (5,198 | ) | $ | 27,947 | $ | 0.46 | ||||||
| Non-GAAP adjustments: | |||||||||||||||
| Cost of Sales | |||||||||||||||
| Amortization of intangibles | 16,832 | (3,978 | ) | 12,854 | 0.21 | ||||||||||
| Inventory mark-up related to acquisitions | 75 | (17 | ) | 58 | 0.00 | ||||||||||
| Operating Expenses | |||||||||||||||
| Contingent consideration expense | 151 | 48 | 199 | 0.00 | |||||||||||
| Amortization of intangibles | 2,385 | (564 | ) | 1,821 | 0.03 | ||||||||||
| Performance-based share-based compensation (b) | 5,841 | (141 | ) | 5,700 | 0.09 | ||||||||||
| Corporate restructuring (c) | 1,098 | (260 | ) | 838 | 0.01 | ||||||||||
| Acquisition-related | 5,239 | (1,237 | ) | 4,002 | 0.07 | ||||||||||
| Medical Device Regulation expenses (d) | 1,395 | (329 | ) | 1,066 | 0.02 | ||||||||||
| Other (e) | 71 | (16 | ) | 55 | 0.00 | ||||||||||
| Other (Income) Expense | |||||||||||||||
| Amortization of long-term debt issuance costs | 2,338 | (552 | ) | 1,786 | 0.03 | ||||||||||
| Non-GAAP net income | $ | 68,570 | $ | (12,244 | ) | $ | 56,326 | $ | 0.93 | ||||||
| Diluted shares | 60,613 | ||||||||||||||
| Three Months Ended | |||||||||||||||
| December 31, 2023 (a) | |||||||||||||||
| Pre-Tax | Tax Impact | After-Tax | Per Share Impact | ||||||||||||
| GAAP net income | $ | 31,467 | $ | (3,838 | ) | $ | 27,629 | $ | 0.47 | ||||||
| Non-GAAP adjustments: | |||||||||||||||
| Cost of Sales | |||||||||||||||
| Amortization of intangibles | 12,611 | (3,032 | ) | 9,579 | 0.16 | ||||||||||
| Corporate restructuring (c) | 448 | (108 | ) | 340 | 0.01 | ||||||||||
| Inventory mark-up related to acquisitions | 68 | (17 | ) | 51 | 0.00 | ||||||||||
| Operating Expenses | |||||||||||||||
| Contingent consideration benefit | (473 | ) | 74 | (399 | ) | (0.01 | ) | ||||||||
| Amortization of intangibles | 2,334 | (562 | ) | 1,772 | 0.03 | ||||||||||
| Performance-based share-based compensation (b) | 2,459 | (350 | ) | 2,109 | 0.04 | ||||||||||
| Corporate restructuring (c) | (137 | ) | 34 | (103 | ) | (0.00 | ) | ||||||||
| Acquisition-related | 68 | (16 | ) | 52 | 0.00 | ||||||||||
| Medical Device Regulation expenses (d) | 2,710 | (651 | ) | 2,059 | 0.04 | ||||||||||
| Other (e) | 41 | (10 | ) | 31 | 0.00 | ||||||||||
| Other (Income) Expense | |||||||||||||||
| Amortization of long-term debt issuance costs | 585 | (140 | ) | 445 | 0.01 | ||||||||||
| Gain on disposal of business unit | (431 | ) | — | (431 | ) | (0.01 | ) | ||||||||
| Non-GAAP net income | $ | 51,750 | $ | (8,616 | ) | $ | 43,134 | $ | 0.74 | ||||||
| Diluted shares | 58,385 | ||||||||||||||
_________________________
Note: Certain per-share impacts may not sum to totals due to rounding.
Reconciliation of GAAP Net Income to Non-GAAP Net Income
(Unaudited; in thousands except per share amounts)
| Year Ended | |||||||||||||||
| December 31, 2024 (a) | |||||||||||||||
| Pre-Tax | Tax Impact | After-Tax | Per Share Impact | ||||||||||||
| GAAP net income | $ | 149,993 | $ | (29,636 | ) | $ | 120,357 | $ | 2.03 | ||||||
| Non-GAAP adjustments: | |||||||||||||||
| Cost of Sales | |||||||||||||||
| Amortization of intangibles | 57,659 | (13,632 | ) | 44,027 | 0.74 | ||||||||||
| Inventory mark-up related to acquisitions | 634 | (149 | ) | 485 | 0.01 | ||||||||||
| Operating Expenses | |||||||||||||||
| Contingent consideration expense | 443 | 17 | 460 | 0.01 | |||||||||||
| Amortization of intangibles | 7,931 | (1,876 | ) | 6,055 | 0.10 | ||||||||||
| Performance-based share-based compensation (b) | 15,237 | (1,607 | ) | 13,630 | 0.23 | ||||||||||
| Corporate restructuring (c) | 3,128 | (739 | ) | 2,389 | 0.04 | ||||||||||
| Acquisition-related | 8,849 | (2,089 | ) | 6,760 | 0.11 | ||||||||||
| Medical Device Regulation expenses (d) | 7,515 | (1,774 | ) | 5,741 | 0.10 | ||||||||||
| Other (e) | 373 | (88 | ) | 285 | 0.00 | ||||||||||
| Other (Income) Expense | |||||||||||||||
| Amortization of long-term debt issuance costs | 6,769 | (1,598 | ) | 5,171 | 0.09 | ||||||||||
| Non-GAAP net income | $ | 258,531 | $ | (53,171 | ) | $ | 205,360 | $ | 3.46 | ||||||
| Diluted shares | 59,365 | ||||||||||||||
| Year Ended | |||||||||||||||
| December 31, 2023 (a) | |||||||||||||||
| Pre-Tax | Tax Impact | After-Tax | Per Share Impact | ||||||||||||
| GAAP net income | $ | 112,089 | $ | (17,678 | ) | $ | 94,411 | $ | 1.62 | ||||||
| Non-GAAP adjustments: | |||||||||||||||
| Cost of Sales | |||||||||||||||
| Amortization of intangibles | 47,795 | (11,492 | ) | 36,303 | 0.62 | ||||||||||
| Corporate restructuring (c) | 448 | (108 | ) | 340 | 0.01 | ||||||||||
| Inventory mark-up related to acquisitions | 2,069 | (497 | ) | 1,572 | 0.03 | ||||||||||
| Operating Expenses | |||||||||||||||
| Contingent consideration expense | 1,704 | (47 | ) | 1,657 | 0.03 | ||||||||||
| Impairment charges | 270 | — | 270 | 0.00 | |||||||||||
| Amortization of intangibles | 8,293 | (1,998 | ) | 6,295 | 0.11 | ||||||||||
| Performance-based share-based compensation (b) | 8,526 | (1,121 | ) | 7,405 | 0.13 | ||||||||||
| Corporate restructuring (c) | 7,065 | (1,695 | ) | 5,370 | 0.09 | ||||||||||
| Acquisition-related | 5,286 | (1,269 | ) | 4,017 | 0.07 | ||||||||||
| Medical Device Regulation expenses (d) | 11,822 | (2,838 | ) | 8,984 | 0.15 | ||||||||||
| Other (e) | (1,268 | ) | 304 | (964 | ) | (0.02 | ) | ||||||||
| Other (Income) Expense | |||||||||||||||
| Amortization of long-term debt issuance costs | 1,639 | (393 | ) | 1,246 | 0.02 | ||||||||||
| Gain on disposal of business unit | (431 | ) | — | (431 | ) | (0.01 | ) | ||||||||
| Non-GAAP net income | $ | 205,307 | $ | (38,832 | ) | $ | 166,475 | $ | 2.85 | ||||||
| Diluted shares | 58,356 | ||||||||||||||
_________________________
Note: Certain per-share impacts may not sum to totals due to rounding.
Reconciliation of Reported Operating Income to Non-GAAP Operating Income
(Unaudited, in thousands except percentages)
| Three Months Ended | Three Months Ended | Year Ended | Year Ended | ||||||||||||||||||||||||||||
| December 31, 2024 | December 31, 2023 (a) | December 31, 2024 (a) | December 31, 2023 (a) | ||||||||||||||||||||||||||||
| Amounts | % Sales | Amounts | % Sales | Amounts | % Sales | Amounts | % Sales | ||||||||||||||||||||||||
| Net Sales as Reported | $ | 355,158 | $ | 324,515 | $ | 1,356,514 | $ | 1,257,366 | |||||||||||||||||||||||
| GAAP Operating Income | 36,564 | 10.3 | % | 33,612 | 10.4 | % | 155,693 | 11.5 | % | 123,944 | 9.9 | % | |||||||||||||||||||
| Cost of Sales | |||||||||||||||||||||||||||||||
| Amortization of intangibles | 16,832 | 4.7 | % | 12,611 | 3.9 | % | 57,659 | 4.3 | % | 47,795 | 3.8 | % | |||||||||||||||||||
| Corporate restructuring (c) | — | — | 448 | 0.1 | % | — | — | 448 | 0.0 | % | |||||||||||||||||||||
| Inventory mark-up related to acquisitions | 75 | 0.0 | % | 68 | 0.0 | % | 634 | 0.0 | % | 2,069 | 0.2 | % | |||||||||||||||||||
| Operating Expenses | |||||||||||||||||||||||||||||||
| Contingent consideration expense (benefit) | 151 | 0.0 | % | (473 | ) | (0.1 | )% | 443 | 0.0 | % | 1,704 | 0.1 | % | ||||||||||||||||||
| Impairment charges | — | — | — | — | — | — | 270 | 0.0 | % | ||||||||||||||||||||||
| Amortization of intangibles | 2,385 | 0.7 | % | 2,334 | 0.7 | % | 7,931 | 0.6 | % | 8,293 | 0.7 | % | |||||||||||||||||||
| Performance-based share-based compensation (b) | 5,841 | 1.6 | % | 2,459 | 0.8 | % | 15,237 | 1.1 | % | 8,526 | 0.7 | % | |||||||||||||||||||
| Corporate restructuring (c) | 1,098 | 0.3 | % | (137 | ) | (0.0 | )% | 3,128 | 0.2 | % | 7,065 | 0.6 | % | ||||||||||||||||||
| Acquisition-related | 5,239 | 1.5 | % | 68 | 0.0 | % | 8,849 | 0.7 | % | 5,286 | 0.4 | % | |||||||||||||||||||
| Medical Device Regulation expenses (d) | 1,395 | 0.4 | % | 2,710 | 0.8 | % | 7,515 | 0.6 | % | 11,822 | 0.9 | % | |||||||||||||||||||
| Other (e) | 71 | 0.0 | % | 41 | 0.0 | % | 373 | 0.0 | % | (1,268 | ) | (0.1 | )% | ||||||||||||||||||
| Non-GAAP Operating Income | $ | 69,651 | 19.6 | % | $ | 53,741 | 16.6 | % | $ | 257,462 | 19.0 | % | $ | 215,954 | 17.2 | % | |||||||||||||||
_________________________
Note: Certain percentages may not sum to totals due to rounding.
| (a) | Beginning in the second quarter of 2024, consulting expenses associated with initiatives conducted under Merit’s Foundations for Growth Program (“FFG Program”) are not adjusted as part of its non-GAAP financial measures. As a result, Merit’s non-GAAP financial measures for prior periods have been recast for comparability. For the three-month period ended December 31, 2023, Merit’s non-GAAP financial measures have been updated to no longer adjust | |
| (b) | Represents performance-based share-based compensation expense, including stock-settled and cash-settled awards. | |
| (c) | Includes | |
| (d) | Represents incremental expenses incurred to comply with the E.U. Medical Device Regulation (“MDR”). | |
| (e) | Represents costs to comply with Merit’s corporate integrity agreement with the U.S. Department of Justice (the “DOJ”). The twelve-month period ended December 31, 2023 also includes an insurance reimbursement of approximately |
Reconciliation of Reported Revenue to Constant Currency Revenue (Non-GAAP), and Constant Currency Revenue, Organic (Non-GAAP)
(Unaudited, in thousands except percentages)
| Three Months Ended | Year Ended | ||||||||||||||||||||||
| December31, | December31, | ||||||||||||||||||||||
| % Change | 2024 | 2023 | % Change | 2024 | 2023 | ||||||||||||||||||
| Reported Revenue | 9.4 | % | $ | 355,158 | $ | 324,515 | 7.9 | % | $ | 1,356,514 | $ | 1,257,366 | |||||||||||
| Add: Impact of foreign exchange | 2,201 | — | 7,207 | — | |||||||||||||||||||
| Constant Currency Revenue (a) | 10.1 | % | $ | 357,359 | $ | 324,515 | 8.5 | % | $ | 1,363,721 | $ | 1,257,366 | |||||||||||
| Less: Revenue from certain acquisitions | (13,089 | ) | — | (31,457 | ) | — | |||||||||||||||||
| Constant Currency Revenue, Organic (a) | 6.1 | % | $ | 344,270 | $ | 324,515 | 6.0 | % | $ | 1,332,264 | $ | 1,257,366 | |||||||||||
_________________________
(a) A non-GAAP financial measure. For a definition of this and other non-GAAP financial measures, see the section of this release entitled “Non-GAAP Financial Measures.”
Reconciliation of Reported Gross Margin to Non-GAAP Gross Margin (Non-GAAP)
(Unaudited, as a percentage of reported revenue)
| Three Months Ended | Year Ended | ||||||||||||||
| December31, | December31, | ||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||
| Reported Gross Margin | 48.7 | % | 46.4 | % | 47.4 | % | 46.4 | % | |||||||
| Add back impact of: | |||||||||||||||
| Amortization of intangibles | 4.7 | % | 3.9 | % | 4.3 | % | 3.8 | % | |||||||
| Corporate restructuring (a) | — | 0.1 | % | — | % | 0.0 | % | ||||||||
| Inventory mark-up related to acquisitions | 0.0 | % | 0.0 | % | 0.0 | % | 0.2 | % | |||||||
| Non-GAAP Gross Margin | 53.5 | % | 50.4 | % | 51.7 | % | 50.4 | % | |||||||
_________________________
Note: Certain percentages may not sum to totals due to rounding.
(a) Represents corporate restructuring charges reflected within costs of sales including the write-off of inventory related to the divestiture or exit of certain businesses or product lines.
ABOUT MERIT
Founded in 1987, Merit is engaged in the development, manufacture, and distribution of proprietary medical devices used in interventional, diagnostic, and therapeutic procedures, particularly in cardiology, radiology, oncology, critical care, and endoscopy. Merit serves customers worldwide with a domestic and international sales force and clinical support team totaling more than 800 individuals. Merit employs approximately 7,400 people worldwide.
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS
This release contains forward-looking statements within the meaning of the Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements include, among others:
- statements proceeded or followed by, or that include the words, “may,” “will,” “should,” “expects,” “plans,” “anticipates,” “intends,” “seeks,” “believes,” “estimates,” “projects,” “forecasts,” “potential,” “target,” “continue,” “upcoming,” “optimistic” or other forms of these words or similar words or expressions, or the negative thereof or other comparable terminology;
- statements that address Merit’s future operating performance or events or developments that Merit’s management expects or anticipates will occur, including, without limitation, any statements regarding Merit’s projected revenues, earnings or other financial measures, Merit’s plans and objectives for future operations, Merit’s proposed new products or services, the integration, development or commercialization of the business or any assets acquired from other parties, future economic conditions or performance, the implementation of, and results which may be achieved through, Merit’s Continued Growth Initiatives Program or other business optimization initiatives, and any statements of assumptions underlying any of the foregoing; and
- statements regarding Merit’s past performance, efforts, or results about which inferences or assumptions may be made, including statements proceeded or followed by the words "preliminary," "initial," "potential," "possible," "diligence," "industry-leading," "compliant," "indications," or "early feedback" or other forms of these words or similar words or expressions, or the negative thereof or other comparable terminology.
Forward-looking statements contained in this release are based on management’s current expectations and assumptions regarding future events or outcomes, all of which 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, 2024 (the “2024 Annual Report”) and other filings with the SEC. While the following list is not comprehensive, such risks and uncertainties include inherent risks and uncertainties associated with Merit’s integration of products acquired from EGS and Cook Medical, Merit’s ability to achieve anticipated financial results, product development and other anticipated benefits of the EGS and Cook Medical acquisitions; uncertainties as to whether Merit will achieve sales, gross and operating margins, net income and earnings per share performance consistent with its forecasts associated with those completed and proposed acquisitions; shifts in trade policies in the U.S. or other countries, including new or modified tariffs or other measures; effects of the Convertible Notes on Merit’s net income and earnings per share performance; 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 DOJ; difficulties, delays and expenditures relating to development, testing and regulatory approval or clearance of Merit’s products, including the pursuit of approvals under the MDR, and risks that such products may not be developed successfully or approved for commercial use; the safety, efficacy and patient and physician adoption of Merit’s products; outcomes of ongoing and future clinical trials and market studies relating to Merit’s products; 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 or exposure to additional tax liabilities which may adversely affect Merit’s effective tax rate; termination of relationships with Merit’s suppliers, or failure of such suppliers to perform; 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; extreme weather events; geopolitical events; and other factors referenced in the 2024 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.
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: Sarah Comstock Merit Medical | Investor Inquiries: Mike Piccinino, CFA, IRC ICR Healthcare |
| +1-801-432-2864 | +1-443-213-0509 |
| sarah.comstock@merit.com | mike.piccinino@icrhealthcare.com |
FAQ
What were Merit Medical's (MMSI) Q4 2024 revenue and growth rates?
What is Merit Medical's (MMSI) revenue guidance for 2025?
What major acquisitions did Merit Medical (MMSI) complete in Q4 2024?
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What regulatory approvals did Merit Medical (MMSI) receive in Q4 2024?
