Merit Medical Q1 2019 Earnings Report
Reconciliation of GAAP Net Income to Non-GAAP Net Income
(Unaudited, in thousands except per share amounts)
Three Months Ended
March 31, 2019
Tax Impact
Three Months Ended
March 31, 2018
GAAP net income
Non-GAAP adjustments:
Cost of Sales
Amortization of intangibles
Inventory mark-up related to acquisitions
Operating Expenses
Pre-Tax
(a)
After-Tax
Per Share
Impact
Tax Impact
Pre-Tax
(a)
After-Tax
Per Share
Impact
$
6,846 $
(651) $
6,195 $
0.11
$
6,359 $
(1,090) $
5,269 $
0.10
11,978
(3,067)
8,911
0.16
6,463
(1,606)
4,857
0.10
672
(173)
499
0.01
1,873
(481)
1,392
0.03
Severance
327
(84)
243
0.00
Acquisition-related (b)
565
(145)
420
0.01
1,970
(506)
1,464
0.03
Fair value adjustment to contingent consideration (c)
775
(141)
634
0.01
40
(10)
30
0.00
Long-term asset impairment charge (d)
211
(54)
157
0.00
56
(14)
42
0.00
Acquired in-process research and development
25
(7)
18
0.00
Amortization of intangibles
2,809
(739)
2,070
0.04
2,000
(532)
1,468
0.03
Special legal expense (e)
1,663
(428)
1,235
0.02
1,691
(435)
1,256
0.02
Other (Income) Expense
Amortization of long-term debt issuance costs
201
(52)
149
0.00
201
(52)
149
0.00
Tax expense related to restructuring (f)
91
91
0.00
Non-GAAP net income
$
26,072 $
(5,450) $
20,622 $
0.37
$
20,653 $
(4,726) $
15,927 $
0.31
Diluted shares
56,490
51,910
(a)
(b)
Reflects the tax effect associated with pre-tax income and the tax effect of non-GAAP adjustments based on statutory tax rates within the applicable markets with adjustments
Represents transaction costs and certain integration costs, including travel, related to acquisitions
(c)
(d)
Represents changes in the fair value of contingent consideration liabilities and contingent receivables associated with prior acquisitions
Represents abandoned patents and impairment of other long-term assets
(e)
Costs incurred in responding to an inquiry from the U.S. Department of Justice
(f)
Net tax expense related to non-recurring tax withholdings in connection with restructuring of certain international subsidiaries
MA MERITAEDICA
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