Merit Medical to Present “Foundations for Growth” Program and Financial Targets for 2020 to 2023

SOUTH JORDAN, Utah, Nov. 10, 2020 (GLOBE NEWSWIRE) -- Merit Medical Systems, Inc. (NASDAQ: MMSI), a leading manufacturer and marketer of proprietary disposable medical devices used in interventional, diagnostic and therapeutic procedures, particularly in cardiology, radiology, oncology, critical care and endoscopy, will hold an investor call today to introduce its multi-year financial targets for growth and improved profitability and will host a question-and-answer session.

The Company’s new multi-year financial targets for the period 2020 to 2023 are:

• Total revenue is expected to increase at a compound annual growth rate (CAGR) of 5% to 7% - on an organic, constant currency, basis*, for the three fiscal years ending December 31, 2023.
  
  
• GAAP operating margin of 13.7% to 17.0% and non-GAAP operating margin* of 18% to 21% for the twelve months ending December 31, 2023.
  
  
• Cumulative free cash flow* generation of at least $300 million for the three fiscal years ending December 31, 2023.

*  Organic revenue, organic revenue on a constant currency basis, non-GAAP operating margin and free cash flow are non-GAAP financial measures. A reconciliation of these non-GAAP financial measures to their most directly comparable GAAP financial measures is included under the heading “Non-GAAP Financial Measures” below.

The Company also reaffirmed its 2020 financial guidance, as follows:

Based upon information currently available to Merit’s management, Merit estimates for the year ending December 31, 2020, absent material acquisitions, non-recurring transactions or other factors beyond Merit’s control, the following:

• Net revenue in the range of $950.0 million to $959.0 million, representing a decrease of approximately 3.5% to 4.5% year over year, as compared to net revenue of $994.9 million for the twelve months ended December 31, 2019. The fiscal year 2020 revenue guidance range assumes:
  • Net revenue from the cardiovascular segment of between $921.0 million and $930.0 million, representing a decrease of approximately 3% to 4% year-over-year as compared to net revenue of $961.0 million for the twelve months ended December 31, 2019.
  • Net revenue from the endoscopy segment of between $28.6 million and $28.9 million, representing a decrease of approximately 14.5% to 15.5% year-over-year as compared to net revenue of $33.9 million for the twelve months ended December 31, 2019.
• GAAP net loss in the range of $(11.8) million to $(15.0) million, or $(0.21) to $(0.27) per diluted share, compared to GAAP net income of $5.5 million, or $0.10 per diluted share, for the twelve months ended December 31, 2019.
• Non-GAAP net income in the range of $85.5 million to $88.5 million, or $1.52 to $1.57 per diluted share, compared to non-GAAP net income of $82.1 million, or $1.46 per diluted share, for the twelve months ended December 31, 2019.

Merit’s financial guidance for the year ending December 31, 2020 is subject to risks and uncertainties identified in this release and Merit’s public filings.