Q2 2024 Merit Medical Systems Inc Earnings Call Transcript
Key Points
- Merit Medical Systems Inc (MMSI) reported total revenue of $338 million in Q2, up 5.6% year over year on a GAAP basis and 6.6% on a constant currency basis.
- The company achieved a record free cash flow of nearly $58 million in Q2 and more than $82 million in the first half of 2024, representing a fivefold increase year over year.
- Non-GAAP gross profit and operating profit grew by 6% and 11% respectively, resulting in year-over-year margin expansion by approximately 15 basis points and 92 basis points.
- Merit Medical Systems Inc (MMSI) announced multiple regulatory clearances and commercial launches, including FDA 510(k) clearance for the Siege vascular plug and the Bearing nsPVA Express prefilled syringe.
- The acquisition of EndoGastric Solutions is expected to contribute $13 million to $15 million in sales in the second half of 2024 and be accretive to the company's multi-year growth profile.
- Sales of OEM products were softer than expected, with only a 5% year-over-year increase in Q2, which was below growth expectations.
- Despite better-than-expected results, the company continues to face pricing headwinds in China due to volume-based purchasing tenders.
- The company did not provide a specific timeline for FDA approval of the WRAPSODY Arteriovenous Access Efficacy (WAVE) pivotal study, creating uncertainty around its market entry.
- Operating expenses increased by 3% year over year, driven by a 2% increase in SG&A expenses and a 7% increase in R&D expenses.
- The acquisition of EndoGastric Solutions, while strategically beneficial, will be modestly dilutive to the company's full-year 2024 non-GAAP profitability due to the partial year contribution and lower interest income on cash balances used for the purchase.
Gentlemen, thank you for standing by. Welcome to the American Merit Systems second quarter 2024 earnings conference call. (Operator Instructions) Please note that this conference call is being recorded and the recording will be available on the company's website for replay shortly.
I would now like to turn the call over to Mr. Fred Lampropoulos, Merit Medical Systems' Founder, Chairman, and Chief Executive Officer. Please go ahead, sir.
Thank you and welcome, everyone. I am joined on today's call by Raul Parra, our Chief Financial Officer and Treasurer; Joe Wright, our President; and Brian Lloyd, our Chief Legal Officer and Corporate Secretary. Brian, would you mind reading us through the Safe Harbor statements, please?
Thanks, Fred.
I would like to remind everyone that this presentation contains forward-looking
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
