Merit Medical Q1 2019 Earnings Report
NOTES TO NON-GAAP FINANCIAL MEASURES
For additional details, please see the accompanying press release and forward-looking statement disclosure.
These presentation materials and associated commentary from Merit's management, as well as the press release issued today, use non-GAAP financial
measures, including:
constant currency revenue,
core revenue,
core revenue on a constant currency basis,
non-GAAP gross margin,
non-GAAP net income, and
non-GAAP earnings per share.
Merit's management team uses these non-GAAP financial measures to evaluate Merit's profitability and efficiency, to compare operating results to prior
periods, to evaluate changes in the operating results of its operating segments, and to measure and allocate financial resources internally. However, Merit's
management does not consider such non-GAAP measures in isolation or as an alternative to such measures determined in accordance with GAAP.
Readers should consider non-GAAP measures used in this release in addition to, not as a substitute for, financial reporting measures prepared in accordance
with GAAP. These non-GAAP financial measures generally exclude some, but not all, items that may affect Merit's net income. In addition, they are subject to
inherent limitations as they reflect the exercise of judgment by management about which items are excluded. Merit believes it is useful to exclude such items in
the calculation of non-GAAP earnings per share, non-GAAP gross margin and non-GAAP net income (in each case, as further illustrated in the reconciliation
table below) because such amounts in any specific period may not directly correlate to the underlying performance of Merit's business operations and can vary
significantly between periods as a result of factors such as new acquisitions, non-cash expenses related to amortization or write-off of previously acquired
tangible and intangible assets, severance expenses, expenses resulting from non-ordinary course litigation, governmental proceedings or changes in tax
regulations, and debt issuance costs. Merit may incur similar types of expenses in the future, and the non-GAAP financial information included in this release
should not be viewed as a statement or indication that these types of expenses will not recur. Additionally, the non-GAAP financial measures used in this
release may not be comparable with similarly titled measures of other companies. Merit urges investors and potential investors to review the reconciliations of
its non-GAAP financial measures to the comparable GAAP financial measures, and not to rely on any single financial measure to evaluate Merit's business or
results of operations.
MA MERITMEDICA™
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