Life Science Company News
Back to overview

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 Intervention45.4% $105,600 $72,635 24.3%$198,514 $159,710
Cardiac Intervention29.8%  85,653  66,005 15.7% 160,390  138,596
Custom Procedural Solutions7.3%  48,636  45,319 1.2% 94,057  92,940
OEM14.8%  32,403  28,218 6.8% 60,337  56,475
Total28.3%  272,292  212,177 14.6% 513,298  447,721
                 
Endoscopy                
Endoscopy devices29.7%  8,033  6,194 12.5% 15,940  14,175
                 
Total28.4% $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   GlobeNewswire
By: GlobeNewswire - 29 Jul 2021
Back to overview

Enhance your business development with Biotechgate
Try for free »