Merit Medical Announces Projected Preliminary Unaudited Revenue for the Year Ended December 31, 2023 and Plans to Announce Fourth Quarter and Year End 2023 Results and Issue Fiscal Year 2024 Guidance on February 28, 2024 - Seite 2

Merit’s management team uses this non-GAAP financial measure 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 this non-GAAP measure in isolation or as an alternative to measures determined in accordance with GAAP.

Readers should consider the non-GAAP measure used in this release in addition to, not as a substitute for, financial reporting measures prepared in accordance with GAAP. This non-GAAP financial measure generally excludes some, but not all, items that may affect Merit’s net income. In addition, it is subject to inherent limitations as it reflects the exercise of judgment by management about which items are excluded. The non-GAAP financial measure used in this release may not be comparable with similarly titled measures of other companies. Merit urges readers to review the reconciliation of the non-GAAP financial measure to its most directly comparable GAAP financial measure 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 preliminary approximate constant currency revenue adjustment of $6.4 million to preliminary approximate reported revenue for the twelve-month period ended December 31, 2023 was calculated using the applicable average foreign exchange rates for the twelve-month period ended December 31, 2022.

Non-GAAP Financial Measure Reconciliation

The following table sets forth supplemental financial data and corresponding reconciliation of non-GAAP constant currency revenue to Merit’s corresponding financial measure prepared in accordance with GAAP for the twelve-month period ended December 31, 2023.

Reconciliation of Preliminary Approximate Reported Revenue Range to Preliminary Approximate Constant Currency Revenue Range (Non-GAAP)
(Unaudited; in thousands except percentages)

				Year Ended
				December 31,
		% Change		2023			2022
Preliminary Approximate Reported Revenue Range		9.0 - 9.4	%	$	1,255,000 - 1,259,000		$	1,150,981
Add: Impact of foreign exchange					6,400			—
Preliminary Approximate Constant Currency Revenue (a)		9.6 - 9.9	%	$	1,261,400 - 1,265,400		$	1,150,981

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(a)   A non-GAAP financial measure. For a definition of this non-GAAP financial measure, see the section of this release entitled “Non-GAAP Financial Measure.”