MERIT MEDICAL SYSTEMS INC Q3 FY2024 earnings call

Fred starts with overview of Q3 results and acquisition. Joe updates on US WRAPSODY program progress: positive 6-month trial findings, regulatory and reimbursement strategies, and revenue performance by product categories and geographies. Raul reviews P&L, balance sheet, and financial condition, including updated guidance for 2024.

Total revenue was $339.8 million, up 7.8% year-over-year on a GAAP basis and 7.9% on constant currency. Cardiovascular segment: Peripheral Intervention products +7.7%, Custom Procedural Solutions +4%, Cardiac Intervention +2%, OEM +8.5% (but softer outside US). Endoscopy segment: +86% revenue growth. Revenue contributions: Cardiovascular and Endoscopy segments with respective growths and organic/inorganic factors considered.

2024 GAAP net revenue growth 6.9%-7.6%, constant currency 7.4%-8.1%. Cardiovascular segment net revenue growth 5%-6%, Endoscopy 49%-52%. Q4 total revenue GAAP 5.5%-8.2%, constant currency 6.1%-8.8%. Non-GAAP operating margins Q4 17.8%-18.8%, EPS $0.80-$0.86. Cook acquisition expected to add $40M annualized revenue 2025, with partial year contribution in 2024.

Risks related to forward-looking statements, including uncertainties in realizing assumptions, impact of risks/uncertainties on actual results differing from projections. OEM sales affected by supply chain and logistics issues. Regulatory and reimbursement processes for WRAPSODY and Cook acquisition may face delays or uncertainties.

Q: On Cook acquisition halo effect, A: Joe and Fred discuss sales force alignment and revenue addition.

Q: On WRAPSODY add-on payment, A: Fred talks about submission and pricing.

Q: On WAVE results impact in Europe, A: Joe says data well received but time needed.

Q: On 4Q organic growth, A: Raul discusses OEM and supply chain.

Q: On WRAPSODY pricing and reimbursement, A: Raul and Fred talk about assumptions and commercial strategy.

Q: On SKU rationalization, A: Joe discusses gross margin drivers and SKU plans.

Q: On sales force for therapeutic products, A: Fred and Joe talk about sales team training and capabilities.

Q: On OEM logistics impact 2025, A: Fred discusses discrete logistics issue and demand.

Q: On Cook integration, A: Joe talks about sales professionals and manufacturing transfer.

Q: On WRAPSODY training and launch, A: Brian talks about training and VAC committee.

Q: On FDA communication and WRAPSODY inquiries, A: Fred and Joe discuss FDA process and website traffic.

Q: On M&A leverage, A: Raul talks about leverage ratio and discipline.

Q: On Cook sales synergy and China environment, A: Joe discusses global opportunities and China volume-based purchasing