Q1 2024 reported revenue of $323.5 million, up 8.7% compared to Q1 2023 Q1 2024 constant currency revenue* up 9.3% compared to Q1 2023 Q1 2024 constant currency revenue, organic* up 7.0% compared to Q1 2023 Q1 2024 GAAP operating margin of 11.1%, compared to 8.9% in Q1 2023 Q1 2024 non-GAAP operating margin* of 17.3%, compared to 16.1% in Q1 2023 Q1 2024 GAAP EPS $0.48, up 35.5%, compared to $0.36 in Q1 2023 Q1 2024 non-GAAP EPS* $0.77, up 18.7%, compared to $0.64 in Q1 2023 * 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 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, April 30, 2024 (GLOBE NEWSWIRE) -- Merit Medical Systems, Inc. (NASDAQ:MMSI), a leading global manufacturer and marketer of healthcare technology, today announced revenue of $323.5 million for the quarter ended March 31, 2024, an increase of 8.7% compared to the quarter ended March 31, 2023. Constant currency revenue, organic, for the first quarter of 2024 increased 7.0% compared to the prior year period. Merit's revenue by operating segment and product category for the three-month periods ended March 31, 2024 and 2023 was as follows (unaudited; in thousands, except for percentages):   Three Months Ended   Reported         Constant Currency *   March 31,         Impact of foreign   March 31,         2024   2023   % Change   exchange   2024   % Change Cardiovascular                                   Peripheral Intervention $ 134,626   $ 113,783   18.3   %   $ 367     $ 134,993   18.6   % Cardiac Intervention   90,688     85,328   6.3   %     932       91,620   7.4   % Custom Procedural Solutions   48,794     47,701   2.3   %     403       49,197   3.1   % OEM   39,266     41,164   (4.6 ) %     (37 )     39,229   (4.7 ) % Total   313,374     287,976   8.8   %     1,665       315,039   9.4   %                                     Endoscopy                                   Endoscopy Devices   10,134     9,589   5.7   %     27       10,161   6.0   %                                     Total $ 323,508   $ 297,565   8.7   %   $ 1,692     $ 325,200   9.3   %                                           Merit's GAAP gross margin for the first quarter of 2024 was 46.9%, compared to GAAP gross margin of 46.5% for the prior year period. Merit's non-GAAP gross margin* for the first quarter of 2024 was 50.9%, compared to non-GAAP gross margin* of 50.1% for the first quarter of 2023. Merit's GAAP net income for the first quarter of 2024 was $28.2 million, or $0.48 per share, compared to GAAP net income of $20.7 million, or $0.36 per share, for the first quarter of 2023. Merit's non-GAAP net income* for the first quarter of 2024 was $44.8 million, or $0.77 per share, compared to non-GAAP net income* of $37.5 million, or $0.64 per share, for the first quarter of 2023. "We delivered better-than-expected revenue and financial results in the first quarter," said Fred P. Lampropoulos, Merit's Chairman and Chief Executive Officer. "Our constant currency, organic, revenue increased 7.0% year-over-year and our constant currency total revenue increased 9.3%, both of which exceeded the high-end of our expectations. We also delivered year-over-year improvement in profitability with our non-GAAP gross and operating margins increasing 80 bps and 115 bps, respectively, and our non-GAAP earnings per share increasing 19% year-over-year. This strong growth and profitability performance drove free cash flow generation of approximately $25 million of in the quarter as well. We are pleased with the solid start to the fiscal year and remain confident in our team's ability to deliver continued strong execution, stable constant currency growth, improving profitability and solid free cash flow generation in 2024." As of March 31, 2024, Merit had cash and cash equivalents of $581.9 million, total debt obligations of $822.5 million, and available borrowing capacity of approximately $657 million, compared to cash and cash equivalents of $587 million, total debt obligations of $846.6 million, and available borrowing capacity of approximately $626 million as of December 31, 2023. Reaffirmed Fiscal Year 2024 Financial Guidance Based upon the information currently available to Merit's management, for the year ending December 31, 2024, absent material acquisitions, non-recurring transactions or other factors beyond Merit's current expectations, Merit continues to expect the following: Revenue and Earnings Guidance*     Guidance     Year Ending % Change Financial Measure   December 31, 2024 Y/Y         Net Sales   $1.312 - $1.325 billion 4% - 5% Cardiovascular Segment   $1.272 - $1.285 billion 4% - 5% Endoscopy Segment   $39.7 - $40.1 million 8% - 9%         Non-GAAP       Earnings Per Share   $3.28 - $3.35 9% - 11%         *Percentage figures approximated; dollar figures may not foot due to rounding 2024 Net Sales Guidance - % Change from Prior Year (Constant Currency) Reconciliation*           Guidance   Low   High 2024 Net Sales Guidance - % Change from Prior Year (GAAP) 4.3%   5.4% Estimated impact of foreign currency exchange rate fluctuations 0.5%   0.5% 2024 Net Sales Guidance - % Change from Prior Year (Constant Currency) 4.8%   5.9%         *Percentage figures approximated and may not foot due to rounding Merit does not provide guidance for GAAP reported financial measures (other than revenue) or a reconciliation of forward-looking non-GAAP financial measures to the most directly comparable GAAP reported financial measures (other than revenue) because Merit is unable to predict with reasonable certainty the financial impact of items such as expenses related to acquisitions or other extraordinary transactions, non-cash expenses related to amortization or write-off of previously acquired tangible and intangible assets, certain 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, and changes in governmental or industry regulations. These items are uncertain, depend on various factors, and could have a material impact on GAAP reported results for the guidance period. For the same reasons, Merit is unable to address the significance of the unavailable information, which could be material to future results. Specifically, Merit is not, without unreasonable effort, able to reliably predict the impact of these items and Merit believes inclusion of a reconciliation of these forward-looking non-GAAP measures to their GAAP counterparts could be confusing to investors or cause undue reliance. Merit's financial guidance for the year ending December 31, 2024 is subject to risks and uncertainties identified in this release and Merit's filings with the U.S. Securities and Exchange Commission (the "SEC"). CONFERENCE CALL Merit will hold its investor conference call today, Tuesday, April 30, 2024, at 5:00 p.m. Eastern (4:00 p.m. Central, 3:00 p.m. Mountain, and 2:00 p.m. Pacific). To access the conference call, please pre-register using the following link. Registrants will receive confirmation with dial-in details. A live webcast and slide deck will also be available at merit.com. CONSOLIDATED BALANCE SHEETS (in thousands)               March 31,         2024   December 31,   (Unaudited)   2023 ASSETS           Current Assets           Cash and cash equivalents $ 581,921     $ 587,036   Trade receivables, net   180,663       177,885   Other receivables   10,980       10,517   Inventories   302,733       303,871   Prepaid expenses and other assets   24,437       24,286   Prepaid income taxes   4,088       4,016   Income tax refund receivables   453       859   Total current assets   1,105,275       1,108,470               Property and equipment, net   383,661       383,523   Intangible assets, net   317,484       325,883   Goodwill   381,539       382,240   Deferred income tax assets   7,072       7,288   Operating lease right-of-use assets   72,639       63,047   Other assets   58,682       54,793   Total Assets $ 2,326,352     $ 2,325,244               LIABILITIES AND STOCKHOLDERS' EQUITY           Current Liabilities           Trade payables $ 48,377     $ 65,944   Accrued expenses   113,220       120,447   Current operating lease liabilities   12,472       12,087   Income taxes payable   9,275       5,086   Total current liabilities   183,344       203,564               Long-term debt   800,136       823,013   Deferred income tax liabilities   5,519       5,547   Long-term income taxes payable   347       347   Liabilities related to unrecognized tax benefits   1,912       1,912   Deferred compensation payable   18,228       17,167   Deferred credits   1,579       1,605   Long-term operating lease liabilities   60,141       56,259   Other long-term obligations   14,956       13,830   Total liabilities   1,086,162       1,123,244