Merit Medical Systems (MMSI) Canaccord Genuity 44th Annual Growth Conference & Private Company Showcase 2024 summary

Company overview and growth

• Founded in 1987, now with nearly $5B market cap and over 7,000 employees worldwide.

• Achieved $1.3B in revenue this year, with 9% organic constant currency growth last year.

• Portfolio includes 16,000 SKUs across 280 proprietary medical product categories.

• 97% of business is cardiovascular, 3% endoscopy, with recent acquisitions set to double endoscopy revenue.

• Vertically integrated global manufacturing and distribution footprint, with 57% of business in the U.S.

Financial performance and guidance

• Delivered 400 basis points of operating margin improvement and $300M in free cash flow over the last three years.

• New guidance for FY: 6.4%-7.8% constant currency growth, adjusted EPS $0.77-$0.82.

• $58M free cash flow in Q2, $83M year-to-date, targeting $130M+ for the year.

• Next long-range plan targets 5%-7% CAGR, 20%-22% operating margins, and $400M+ free cash flow by 2026.

• Strong execution and conservative guidance, with momentum expected to continue.

M&A and strategic initiatives

• Recent acquisitions include AngioDynamics, Bluegrass, and EGS, with EGS nearly doubling endoscopy revenue and sales force.

• EGS integration expected to be accretive within a year, with production moving in-house by year-end.

• M&A activity is opportunistic, supported by a $750M convertible raise and strong cash flow.

• Focus remains on finding assets that fit strategic and financial criteria, especially in endoscopy.