Fourth Quarter Highlights†
- Reported revenue of $355.2 million, up 9.4%
- Constant currency revenue* and constant currency revenue, organic* up 10.1% and up 6.1%, respectively
- GAAP operating margin of 10.3%, compared to 10.4% in prior year period
- Non-GAAP operating margin* of 19.6%, compared to 16.6% in prior year period
- GAAP EPS $0.46, down 2.6%,
- Non-GAAP EPS* $0.93, up 25.8%, and
- Free cash flow* generation of $65.3 million, up 18.4%
- Reported revenue of $1.357 billion, up 7.9%
- Constant currency revenue* and constant currency revenue, organic* up 8.5% and up 6.0%, respectively
- GAAP operating margin of 11.5 %, compared to 9.9% in prior year
- Non-GAAP operating margin* of 19.0%, compared to 17.2% in prior year
- GAAP EPS $2.03, up 25.3%,
- Non-GAAP EPS* $3.46, up 21.3%, and
- Free cash flow* generation of $185.7 million, up 67.5%
- Completed the acquisition of lead management portfolio of medical devices and certain related assets from Cook Medical Holdings, LLC
- Announced FDA premarket approval of the Wrapsody® Cell-Impermeable Endoprosthesis device, which is intended to extend long-term vessel patency in dialysis patients
- Substantially completed integration of the production, distribution and sale of the EsophyX® Z+ device previously acquired from Endogastric Solutions, Inc.
- Revenue of $1.470 billion to $1.490 billion, up 8% - 10% year-over-year
- Non-GAAP EPS of $3.58 to $3.70, up 4% - 7% year-over-year
* Constant currency revenue; constant currency revenue, organic; non-GAAP gross profit and margin; non-GAAP operating income and margin; non-GAAP net income; non-GAAP EPS; and free cash flow figures (used here and below) 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, Feb. 25, 2025 (GLOBE NEWSWIRE) -- Merit Medical Systems, Inc. (NASDAQ: MMSI), a leading global manufacturer and marketer of healthcare technology, today announced revenue of $355.2 million for the quarter ended December 31, 2024, an increase of 9.4% compared to the quarter ended December 31, 2023. Constant currency revenue for the fourth quarter of 2024 increased 10.1% compared to the prior year period and increased 6.1% compared to the prior year period on a constant currency revenue, organic, basis. Revenue for the year ended December 31, 2024 was $1.357 billion, an increase of 7.9% compared to the year ended December 31, 2023. Constant currency revenue for 2024 increased 8.5% compared to the prior year and increased 6.0% compared to the prior year on a constant currency revenue, organic, basis.
"We finished 2024 with strong momentum by delivering better-than-expected financial results in the fourth quarter, reflecting continued strong execution,” said Fred P. Lampropoulos, Merit's Chairman and Chief Executive Officer. "Our constant currency revenue, organic, and our constant currency total revenue exceeded the high-end of our expectations in the fourth quarter. We delivered impressive year-over-year improvements in our non-GAAP operating margin and our non-GAAP earnings per share, which increased 305 basis points and 26%, respectively, year-over-year. We also delivered strong free cash flow generation in the fourth quarter and generated more than $185 million in fiscal year 2024, representing an increase of 67% year-over-year.”
Mr. Lampropoulos continued: "We are introducing 2025 financial guidance which reflects confidence in our team's ability to deliver continued strong execution, stable constant currency growth, improving profitability and solid free cash flow generation. We also remain focused on our Continued Growth Initiatives Program and on achieving the related financial targets for the three-year period ending December 31, 2026.”
Merit's revenue by operating segment and product category for the three and twelve-month periods ended December 31, 2024 and 2023 was as follows (unaudited; in thousands, except for percentages):
| Three Months Ended | |||||||||||||||||||||||
| Reported | Constant Currency * | ||||||||||||||||||||||
| December 31, | Impact of foreign | December 31, | |||||||||||||||||||||
| 2024 | 2023 | % Change | exchange | 2024 | % Change | ||||||||||||||||||
| Cardiovascular | |||||||||||||||||||||||
| Peripheral Intervention | $ | 140,363 | $ | 134,143 | 4.6 | % | $ | 1,152 | $ | 141,515 | 5.5 | % | |||||||||||
| Cardiac Intervention | 95,673 | 90,242 | 6.0 | % | 836 | 96,509 | 6.9 | % | |||||||||||||||
| Custom Procedural Solutions | 51,223 | 49,624 | 3.2 | % | 150 | 51,373 | 3.5 | % | |||||||||||||||
| OEM | 50,441 | 41,216 | 22.4 | % | 44 | 50,485 | 22.5 | % | |||||||||||||||
| Total | 337,700 | 315,225 | 7.1 | % | 2,182 | 339,882 | 7.8 | % | |||||||||||||||
| Endoscopy | |||||||||||||||||||||||
| Endoscopy Devices | 17,458 | 9,290 | 87.9 | % | 19 | 17,477 | 88.1 | % | |||||||||||||||
| Total | $ | 355,158 | $ | 324,515 | 9.4 | % | $ | 2,201 | $ | 357,359 | 10.1 | % | |||||||||||
| Year Ended | |||||||||||||||||||||||
| Reported | Constant Currency * | ||||||||||||||||||||||
| December 31, | Impact of foreign | December 31, | |||||||||||||||||||||
| 2024 | 2023 | % Change | exchange | 2024 | % Change | ||||||||||||||||||
| Cardiovascular | |||||||||||||||||||||||
| Peripheral Intervention | $ | 552,168 | $ | 502,220 | 9.9 | % | $ | 2,852 | $ | 555,020 | 10.5 | % | |||||||||||
| Cardiac Intervention | 370,993 | 358,451 | 3.5 | % | 3,022 | 374,015 | 4.3 | % | |||||||||||||||
| Custom Procedural Solutions | 201,201 | 195,333 | 3.0 | % | 1,192 | 202,393 | 3.6 | % | |||||||||||||||
| OEM | 177,382 | 164,556 | 7.8 | % | 46 | 177,428 | 7.8 | % | |||||||||||||||
| Total | 1,301,744 | 1,220,560 | 6.7 | % | 7,112 | 1,308,856 | 7.2 | % | |||||||||||||||
| Endoscopy | |||||||||||||||||||||||
| Endoscopy Devices | 54,770 | 36,806 | 48.8 | % | 95 | 54,865 | 49.1 | % | |||||||||||||||
| Total | $ | 1,356,514 | $ | 1,257,366 | 7.9 | % | $ | 7,207 | $ | 1,363,721 | 8.5 | % | |||||||||||
Merit's GAAP gross margin for the fourth quarter of 2024 was 48.7%, compared to GAAP gross margin of 46.4% for the fourth quarter of 2023. Merit's non-GAAP gross margin* for the fourth quarter of 2024 was 53.5%, compared to non-GAAP gross margin* of 50.4% for the fourth quarter of 2023. GAAP gross margin for fiscal year 2024 was 47.4%, compared to GAAP gross margin of 46.4% for fiscal year 2023. Non-GAAP gross margin* for fiscal year 2024 was 51.7%, compared to non-GAAP gross margin* of 50.4% for fiscal year 2023.
Merit's GAAP net income for the fourth quarter of 2024 was $27.9 million, or $0.46 per share, compared to GAAP net income of $27.6 million, or $0.47 per share, for the fourth quarter of 2023. Merit's non-GAAP net income* for the fourth quarter of 2024 was $56.3 million, or $0.93 per share, compared to non-GAAP net income* of $43.1 million, or $0.74 per share, for the fourth quarter of 2023. GAAP net income for fiscal year 2024 was $120.4 million, or $2.03 per share, compared to GAAP net income of $94.4 million, or $1.62 per share, for fiscal year 2023. Non-GAAP net income* for fiscal year 2024 was $205.4 million, or $3.46 per share, compared to non-GAAP net income* of $166.5 million, or $2.85 per share, for fiscal year 2023.
As of December 31, 2024, Merit had cash and cash equivalents of $376.7 million, total debt obligations of $747.5 million, and outstanding letter of credit guarantees of $2.9 million, compared to cash and cash equivalents of $587 million, total debt obligations of $846.6 million, and outstanding letter of credit guarantees of $2.7 million as of December 31, 2023. Merit had additional available borrowing capacity of approximately $697 million as of December 31, 2024.
Fiscal Year 2025 Financial Guidance
Based upon the information currently available to Merit's management, for the year ending December 31, 2025, absent material acquisitions, non-recurring transactions or other factors beyond Merit's current expectations, Merit anticipates the following financial results:
Revenue and Earnings Guidance*
| Prior Year(As Reported) | Guidance | |||
| Financial Measure | Year Ended | Year Ending | % Change | |
| December 31, 2024 | December 31, 2025 | Y/Y | ||
| Net Sales | $1.357 billion | $1.470 - $1.490 billion | 8% - 10% | |
| Cardiovascular Segment | $1.302 billion | $1.395 - $1.413 billion | 7% - 9% | |
| Endoscopy Segment | $54.8 million | $74.6 - $76.7 million | 36% - 40% | |
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