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Jun 30, 2020

Merit Medical Q2 2020 Earnings Report

Merit Medical experienced a revenue decline but demonstrated progress in strategic goals and free cash flow generation.

Key Takeaways

Merit Medical reported a decrease in revenue for Q2 2020, with a worldwide revenue of $218.4 million, a (14.5)% decrease compared to Q2 2019. The company reported a GAAP loss per share of $(0.34) and a non-GAAP EPS of $0.31. Despite the revenue decline, the company generated $32 million in free cash flow and continued progress on strategic goals.

Worldwide revenue decreased by (14.5)% to $218.4 million compared to Q2 2019.

Core revenue on a constant currency basis decreased by (13.6)% compared to Q2 2019.

GAAP loss per share was $(0.34), compared to GAAP EPS of $0.12 in Q2 2019.

Non-GAAP EPS was $0.31, compared to $0.42 in Q2 2019.

Total Revenue
$218M
Previous year: $256M
-14.5%
EPS
$0.31
Previous year: $0.42
-26.2%
GAAP Operating Margin
-8.7%
Non-GAAP Operating Margin
11.2%
Gross Profit
$84.2M
Previous year: $112M
-24.8%
Cash and Equivalents
$49.7M
Previous year: $35.2M
+41.3%
Free Cash Flow
$32M
Previous year: $4.48M
+614.1%
Total Assets
$1.72B
Previous year: $1.74B
-1.2%

Merit Medical

Merit Medical

Merit Medical Revenue by Segment

Forward Guidance

Due to the general uncertainty and rapidly changing global environment related to the COVID-19 pandemic and corresponding economic downturn, Merit’s management has concluded that it cannot issue financial guidance for the remainder of 2020.

Revenue & Expenses

Visualization of income flow from segment revenue to net income