Merit Medical to Present “Foundations for Growth” Program and Financial Targets for 2020 to 2023 - Seite 3

Organic Revenue and Organic Revenue on a Constant Currency Basis

Merit’s organic revenue is defined as GAAP revenue adjusted for revenue from acquisitions or divestitures. Organic revenue on a constant currency basis is defined as organic revenue adjusted to eliminate the foreign exchange impact related to that organic revenue for the relevant period, using the applicable average foreign exchange rates in effect for the comparable prior-year periods presented. In the case of this release, the comparable baseline year is the year ending December 31, 2020. The compound annual growth rate (CAGR) calculation excludes a forecasted $4 million benefit from foreign exchange fluctuations for the year ending December 31, 2021.

Non-GAAP Operating Margin

Non-GAAP operating margin 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 new acquisitions, non-cash expenses related to amortization or write-off of previously acquired tangible and intangible assets, severance expenses, performance-based stock compensation expenses, corporate transformation expenses, expenses resulting from non-ordinary course litigation or administrative proceedings and resulting settlements, governmental proceedings or changes in industry regulations, as well as other items that could arise but which are not currently anticipated by management.

Free Cash Flow

Free cash flow is defined as cash flow from operations calculated in accordance with GAAP less capital expenditures calculated in accordance with GAAP, as set forth in the consolidated statement of cash flows.

Reconciliation of GAAP Operating Margin to Non-GAAP Operating Margin
(Unaudited, ss a percentage of forecasted sales)

		Low End			High End
		Year Ended			Year Ended
		December 31, 2023			December 31, 2023
		% Sales			% Sales
GAAP Operating Margin		13.7	%		17.0	%
Cost of Sales
Amortization of intangibles		3.8	%		3.6	%
Operating Expenses
Amortization of intangibles		0.5	%		0.4	%
Non-GAAP Operating Margin		18.0	%		21.0	%

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