Core Insights - Merit Medical Systems, Inc. will present updates on two pivotal studies at the CIRSE conference in Lisbon, Portugal on September 14, 2024 [1] - The WAVE study will showcase 6-month clinical outcomes, while the MOTION study's design and methodology will also be discussed [2] Company Overview - Founded in 1987, Merit Medical specializes in the development, manufacture, and distribution of proprietary disposable medical devices for interventional, diagnostic, and therapeutic procedures [5] - The company serves hospitals globally with a sales force and clinical support team of over 700 individuals and employs approximately 7,100 people worldwide [5] Event Sponsorship - Merit Medical will sponsor two symposia during the CIRSE conference, focusing on clinical management of synovial arterial hypervascularity in the knee and long-term patency strategies for hemodialysis patients [3] - The symposia will be accessible with a free myCIRSE account, allowing on-demand viewing within 24 hours after the live sessions [5] Leadership Statement - Fred Lampropoulos, Chairman and CEO of Merit Medical, expressed honor in attending CIRSE and connecting with physician partners and interventional radiologists [4]

Financial Data and Key Metrics Changes - The company reported total revenue of $338 million in Q2 2024, representing a 5.6% year-over-year increase on a GAAP basis and a 6.6% increase on a constant currency basis, exceeding previous expectations [7][8] - Non-GAAP gross profit and operating profit grew by 6% and 11% respectively, leading to margin expansions of approximately 15 basis points and 92 basis points [8][27] - Free cash flow reached nearly $58 million in Q2, a record for the company, contributing to over $82 million in free cash flow for the first half of 2024, a more than fivefold increase year-over-year [9][28] Business Line Data and Key Metrics Changes - The Cardiovascular segment grew by 6%, while the Endoscopy segment saw a significant increase of 16% in sales [18] - Peripheral intervention product sales increased by 11%, accounting for nearly 74% of total Cardiovascular segment growth [19] - Endoscopy segment sales exceeded expectations, indicating a normalization of growth trends [21] Market Data and Key Metrics Changes - U.S. sales increased by 8.5% on a constant currency basis, while international sales grew by 4% year-over-year [22] - Sales in the APAC region showed a 1% growth, significantly better than the previously expected decline of 10% to 11% [22] - China sales decreased by 5% year-over-year, which was better than the low 20% decline anticipated [22][42] Company Strategy and Development Direction - The company announced the acquisition of EndoGastric Solutions for approximately $105 million, enhancing its endoscopy product portfolio and expanding its footprint in the gastrointestinal market [14][15] - The company is focused on delivering strong execution, stable constant currency growth, and improving profitability through its growth initiatives program [9][10] - New product introductions and clinical validations are part of the company's strategy to enhance its product offerings and market presence [10][11] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the business's performance, highlighting strong U.S. and international growth [40] - The company anticipates continued strong free cash flow generation and has raised its free cash flow target for 2024 to at least $130 million [59] - Management is confident in achieving updated financial guidance, reflecting a strong outlook for the remainder of the year [29][31] Other Important Information - The company has made significant enhancements to its executive leadership team and Board of Directors, which is expected to support its growth initiatives [12][13] - The company is preparing for the presentation of clinical results from its WRAPSODY studies at key medical meetings, which could influence future market positioning [12][63] Q&A Session Summary Question: Guidance and Momentum - The company is optimistic about maintaining momentum from the first half of the year into the second half, with better-than-expected results from China [38][40] Question: EndoGastric Solutions Integration - The company plans to combine sales teams for cross-selling opportunities, enhancing efficiency and market reach [45][47] Question: WRAPSODY Competition - Management believes in the superiority of their technology compared to competitors and is excited about future market opportunities [52][54] Question: Gross Margin Trends - The company is pleased with gross margin performance and expects it to remain stable moving forward [41][43] Question: Free Cash Flow Utilization - The company anticipates strong free cash flow generation and plans to utilize it effectively to support growth initiatives [59]

For the quarter ended June 2024, Merit Medical (MMSI) reported revenue of $338 million, up 5.6% over the same period last year. EPS came in at $0.92, compared to $0.81 in the year-ago quarter. The reported revenue represents a surprise of +0.92% over the Zacks Consensus Estimate of $334.94 million. With the consensus EPS estimate being $0.88, the EPS surprise was +4.55%. While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street ex ...

Merit Medical (MMSI) came out with quarterly earnings of $0.92 per share, beating the Zacks Consensus Estimate of $0.88 per share. This compares to earnings of $0.81 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of 4.55%. A quarter ago, it was expected that this maker of disposable medical devices would post earnings of $0.71 per share when it actually produced earnings of $0.77, delivering a surprise of 8.45%. Over the last f ...

Second Quarter 2024 Highlights† Reported revenue of $338.0 million, up 5.6% Constant currency revenue* up 6.6% Constant currency revenue, organic,* up 5.0% GAAP operating margin of 13.6%, compared to 9.0% in prior year period Non-GAAP operating margin* of 20.1%, compared to 19.1% in prior year period GAAP EPS $0.61, up 75.7% Non-GAAP EPS* $0.92, up 16.8% † Comparisons noted in the bullet points are calculated for the current quarter compared with the same prior year period unless otherwise specified. * The ...

Shares of Merit Medical Systems, Inc. (MMSI) scaled a new 52-week high of $86.44 on Jun 28, before closing the session slightly lower at $85.95. Over the past year, this Zacks Rank #3 (Hold) stock has gained 4.2% against the 2.2% decline of the industry. The S&P 500 has witnessed 23.7% growth in the said time frame. Over the past five years, the company registered earnings growth of 15.2% compared with the industry's 12.9% rise. The company's long-term expected growth rate of 10.8% compares with the industr ...

| --- | --- | |--------------------------------------------------------|--------------------------------------------------------------------------| | | | | PR/Media Inquiries: Sarah Comstock Merit Medical | Investor Inquiries: Mike Piccinino, CFA, IRC Westwicke - ICR | | +1-801-432-2864 | +1-443-213-0509 | | sarah.comstock@merit.com | mike.piccinino@westwicke.com | GERD is a digestive disorder that occurs when the lower esophageal sphincter doesn't tighten correctly, allowing acid from the stomach to enter ...

Core Viewpoint - Merit Medical Systems, Inc. has announced an asset purchase agreement with EndoGastric Solutions, Inc. for approximately $105 million, acquiring the EsophyX® Z+ device, which offers a minimally invasive treatment for GERD patients [1][3][26]. Financial Impact - The acquired assets from EndoGastric Solutions generated about $26 million in revenue for the twelve months ending December 31, 2023, and are expected to contribute between $13 million and $15 million in revenue from the closing date through December 31, 2024 [3][6]. - The acquisition is projected to add approximately $30 million in annualized revenue in the gastrointestinal endoscopy market, leveraging Merit's existing commercial footprint [6][26]. - Merit has updated its full-year 2024 financial guidance to reflect the impacts of this acquisition, reaffirming prior guidance for the standalone business [9][35]. Updated Financial Guidance - The updated financial guidance for the year ending December 31, 2024, includes net sales projected between $1.324 billion and $1.340 billion, reflecting a year-over-year growth of 5% to 7% [29]. - The cardiovascular segment is expected to generate net sales of $1.272 billion to $1.285 billion, while the endoscopy segment is projected to reach $53.3 million to $55.7 million, representing a significant increase from previous guidance [29]. - Non-GAAP earnings per share are now expected to be between $3.22 and $3.31, indicating a year-over-year increase of 7% to 10% [29]. Strategic Rationale - The acquisition aligns with Merit's Continued Growth Initiatives, enhancing its product portfolio in existing clinical specialties and expanding its presence in the multi-billion-dollar gastrointestinal market [26][7]. - The EsophyX Z+ device is designed to provide a durable, minimally invasive treatment option for chronic GERD, addressing a significant healthcare need [1][17].

GERD is a digestive disorder that occurs when the lower esophageal sphincter doesn't tighten correctly, allowing acid from the stomach to enter the esophagus. When this occurs chronically, it can result in serious health conditions, such as esophageal damage and cancer. The EsophyX Z+ device treats GERD by restoring the body's reflux barrier. * Non-GAAP net income; non-GAAP earnings per share; non-GAAP gross margin; non-GAAP operating margin and constant currency revenue are non-GAAP financial measures. A d ...

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