• Q4 2018 worldwide revenue of $233.2 million, up 22.2% as reported over Q4 2017
  • Q4 2018 core revenue on a comparable, constant currency basis* up 13.1% over Q4 2017
  • Q4 2018 GAAP EPS was $0.16, compared to $0.13 in Q4 2017
  • Q4 2018 non-GAAP EPS* was $0.48, compared to $0.33 in Q4 2017

* Core revenue on a constant currency basis, non-GAAP EPS, non-GAAP net income and non-GAAP gross margin are non-GAAP financial measures. A reconciliation of these and other non-GAAP financial measures used in this release to their most directly comparable GAAP financial measures is included under the heading “Non-GAAP Financial Measures” below.

SOUTH JORDAN, Utah, Feb. 26, 2019 (GLOBE NEWSWIRE) -- Merit Medical Systems, Inc. (NASDAQ: MMSI), a leading manufacturer and marketer of proprietary disposable devices used in interventional, diagnostic and therapeutic procedures, particularly in cardiology, radiology, oncology, critical care and endoscopy, today announced revenue of $233.2 million for the quarter ended December 31, 2018, an increase of 22.2% over revenue of $190.9 million for the quarter ended December 31, 2017. Core revenue on a comparable, constant currency basis* for the fourth quarter of 2018 would have been up 13.1% over revenue for the comparable quarter of 2017. For the year ended December 31, 2018, Merit's revenue was $882.8 million, up 21.3% compared to revenue of $727.9 million for the year ended December 31, 2017. Core revenue on a comparable, constant currency basis* for the year ended December 31, 2018 would have been up 11.4% when compared to 2017.

Merit’s GAAP net income for the fourth quarter of 2018 was $9.2 million, or $0.16 per share, compared to GAAP net income of $6.8 million, or $0.13 per share, for the fourth quarter of 2017. Merit’s non-GAAP net income* for the quarter ended December 31, 2018 was $27.0 million, or $0.48 per share, compared to $16.8 million, or $0.33 per share, for the quarter ended December 31, 2017.

For the year ended December 31, 2018, Merit's GAAP net income was $42.0 million, or $0.78 per share, compared to $27.5 million, or $0.55 per share, for 2017. Merit's non-GAAP net income* for the year ended December 31, 2018 was $91.3 million, or $1.69, compared to $64.3 million, or $1.28 per share, for 2017.

Merit's GAAP gross margin for the fourth quarter of 2018 was 44.9%, compared to GAAP gross margin of 44.9% for the fourth quarter of 2017. Merit's non-GAAP gross margin* for the fourth quarter of 2018 was 49.4%, compared to non-GAAP gross margin* of 47.9% for the fourth quarter of 2017. Merit's GAAP gross margin for the year ended December 31, 2018 was 44.7%, compared to 44.8% for 2017. Merit's non-GAAP gross margin* for the year ended December 31, 2018 was 48.9% compared to 48.1% for 2017.

Merit’s revenue by category for the three and twelve months ended December 31, 2018, compared to the corresponding periods in 2017, was as follows (unaudited, in thousands, except for percentages):

   Three Months Ended    Twelve Months Ended
   December 31,    December 31,
 % Change 2018 2017  % Change 2018 2017
Cardiovascular            
Stand-alone devices40.5% $101,188  $71,997   33.6% $367,905  $275,456 
Custom kits and procedure trays(1.7)% 34,397  35,007   6.9% 134,756  126,089 
Inflation devices11.0% 22,802  20,546   15.7% 92,419  79,875 
Catheters24.9% 41,695  33,390   21.7% 155,525  127,747 
Embolization devices(2.1)% 12,332  12,596   1.0% 50,038  49,532 
CRM/EP27.5% 12,672  9,936   16.5% 48,834  41,914 
Total22.7% 225,086  183,472   21.2% 849,477  700,613 
             
Endoscopy            
Endoscopy devices9.9% 8,163  7,425   22.2% 33,276  27,239 
             
Grand Total22.2% $233,249  $190,897   21.3% $882,753  $727,852 

Note: Certain revenue categories for 2017 have been adjusted from prior disclosures to reflect changes in product classifications to be consistent with updates in Merit's management of its product portfolios during 2018.
  

“2018 was an important and very positive year for the company and included the closing of the Becton Dickinson deal, the acquisitions of Cianna Medical and Vascular Insights, and the execution of our global growth and profitability plan,” said Fred P. Lampropoulos, Merit’s Chairman and Chief Executive Officer. “Integration of these new businesses and sales of our core products continue to drive growth to the point where we are confident forecasting an expansion of our 2019 core revenue growth to a range of 8 - 10%.”

“We believe our forecasted growth will be facilitated by recently introduced products such as the EmboCube™ Embolization Gelatin, the basixTAU™ Inflation Device, the Prelude Prestige™ Splittable Sheath Introducer, the Prelude Ideal™ Sheath Introducer, the PreludeSYNC™ Radial Hemostasis Device, as well as the momentum of our legacy products,” Lampropoulos continued.  “As we look forward, we are also comfortable adding a forecast for 2020, which we currently believe will be in the range of 8 - 10% core revenue growth, an addition of 100 - 150 basis points to gross margin, and net income improvement of approximately 14 - 19%. Please note that we believe this will be in addition to our 2019 range of 45.6 - 46.5% (GAAP) and 50.6 - 51.3% gross margin projection (non-GAAP).”

“Recently we opened a new distribution center in Reading, England in an effort to hedge against potential Brexit disruption, as well as a direct sales and distribution center in Johannesburg, South Africa,” Lampropoulos said. “We believe the ability to provide essentially same-day service to our customers in those regions will enhance customer confidence and increase our growth prospects.”

“Additionally, our new product pipeline is full,” Lampropoulos continued. “We expect to introduce 10 - 15 new products this year that will continue to support our overall business strategy. Our business measurements of top-line improvement, discipline of the SG&A and R&D expenses, and bottom-line improvement continue to support our business thesis. Finally, the healthcare market continues to consolidate, and we intend to continue to pursue opportunities that fit our overall strategy and financial metrics.”

2019 GUIDANCE
Based upon information currently available to Merit's management, Merit estimates for the year ending December 31, 2019, absent material acquisitions or non-recurring transactions, the following:

 Financial MeasureRange
 
 Net Sales$1,011 million-$1,030 million 
      
 GAAP    
 Earnings per share$1.02 -$1.13  
 Gross Margin 45.6%- 46.5% 
      
 Non-GAAP    
 Earnings per share$1.97 -$2.08  
 Gross Margin 50.6%- 51.3% 
      
 Effective Tax Rate 22.5%- 24.5% 

Merit’s financial guidance for the year ending December 31, 2019 is subject to risks and uncertainties identified in Merit’s public filings.

CONFERENCE CALL
Merit will hold its investor conference call (conference ID 9186535) today, Tuesday, February 26, 2019, at 5:00 p.m. Eastern (4:00 p.m. Central, 3:00 p.m. Mountain, and 2:00 p.m. Pacific). The domestic telephone number is (844) 578-9672 and the international number is (508) 637-5656. A live webcast and slide deck will also be available at merit.com.


CONSOLIDATED BALANCE SHEETS   
(In thousands)   
 December 31, December 31,
 2018 2017
 (Unaudited)  
ASSETS   
Current Assets   
Cash and cash equivalents$67,359  $32,336 
Trade receivables, net137,174  105,536 
Other receivables11,879  9,429 
Inventories197,536  155,288 
Prepaid expenses and other assets11,326  9,096 
Prepaid income taxes3,627  3,225 
Income tax refund receivables933  1,211 
Total current assets429,834  316,121 
    
Property and equipment, net331,452  292,820 
Intangible assets, net462,713  227,324 
Goodwill335,433  238,147 
Deferred income tax assets3,001  2,359 
Other assets57,579  35,040 
Total Assets$1,620,012  $1,111,811 
    
LIABILITIES AND STOCKHOLDERS' EQUITY   
Current Liabilities   
Trade payables$54,024  $34,931 
Accrued expenses96,173  58,932 
Current portion of long-term debt22,000  19,459 
Income taxes payable3,146  2,298 
Total current liabilities175,343  115,620 
    
Long-term debt373,152  259,013 
Deferred income tax liabilities56,363  23,289 
Long-term income taxes payable392  4,846 
Liabilities related to unrecognized tax benefits3,013  2,746 
Deferred compensation payable11,219  11,181 
Deferred credits2,261  2,403 
Other long-term obligations65,494  16,379 
Total liabilities687,237  435,477 
    
Stockholders' Equity   
Common stock571,383  353,392 
Retained earnings363,425  321,408 
Accumulated other comprehensive income (loss)(2,033) 1,534 
Total stockholders' equity932,775  676,334 
Total Liabilities and Stockholders' Equity$1,620,012  $1,111,811 


        
CONSOLIDATED STATEMENTS OF INCOME       
(Unaudited, in thousands except per share amounts)      
 Three Months Ended Year Ended
 December 31, December 31,
 2018 2017 2018 2017
        
NET SALES$233,249  $190,897  $882,753  $727,852 
        
COST OF SALES128,583  105,241  $487,983  $401,599 
        
GROSS PROFIT104,666  85,656  394,770  326,253 
        
OPERATING EXPENSES       
Selling, general and administrative75,629  59,239  276,018  229,134 
Research and development15,368  12,727  59,532  51,403 
Acquired in-process research and development263    644  12,136 
Intangible asset impairment charge  809  657  809 
Contingent consideration expense(256) (338) (698) (298)
Total91,004  72,437  336,153  293,184 
        
INCOME FROM OPERATIONS13,662  13,219  58,617  33,069 
        
OTHER INCOME (EXPENSE)       
Interest income352  115  1,199  381 
Interest expense(2,296) (1,801) (10,360) (7,736)
Gain on bargain purchase  243    11,039 
Other income (expense) - net492  (496) 63  (872)
Total other income (expense) - net(1,452) (1,939) (9,098) 2,812 
        
INCOME BEFORE INCOME TAXES12,210  11,280  49,519  35,881 
        
INCOME TAX EXPENSE3,022  4,474  7,502  8,358 
        
NET INCOME$9,188  $6,806  $42,017  $27,523 
        
EARNINGS PER COMMON SHARE:       
Basic$0.17  $0.14  $0.80  $0.56 
        
Diluted$0.16  $0.13  $0.78  $0.55 
        
AVERAGE COMMON SHARES:       
Basic54,850  50,208  52,268  48,805 
        
Diluted56,514  51,722  53,931  50,101 

   

Non-GAAP Financial Measures
Although Merit’s financial statements are prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”), Merit’s management believes that certain non-GAAP financial measures referred to in this release provide investors with useful information regarding the underlying business trends and performance of Merit’s ongoing operations and can be useful for period-over-period comparisons of such operations. Non-GAAP financial measures used in this release include:

  • 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.

Constant Currency Revenue
Merit’s revenue on a constant currency basis is prepared by translating the current-period reported revenue of subsidiaries whose functional currency is other than the U.S. dollar at the applicable foreign exchange rates in effect during the comparable prior-year period. The constant currency revenue adjustments of $2.2 million and $(5.2) million for the three and twelve-month periods ended December 31, 2018, respectively, were calculated using the applicable average foreign exchange rates for the three and twelve-month periods ended December 31, 2017, respectively.

Core Revenue and Core Revenue on a Constant Currency Basis
Merit’s core revenue is defined (a) with respect to prior fiscal year periods, as GAAP revenue, and (b) with respect to current fiscal year periods, as GAAP revenue, less revenue from certain acquisitions and strategic transactions. For the three and twelve-month periods ended December 31, 2018, Merit’s core revenue excludes revenues from (i) the acquisition of (1) the assets of Catheter Connections, Inc. in January 2017 (excluded January 2018 only), (2) the critical care division of Argon Medical Devices, Inc. in January 2017 (excluded January 2018 only), (3) Osseon LLC in July 2017 (excluded through June 2018 only), (4) Laurane Medical S.A.S. in August 2017 (excluded through July 2018 only), (5) ITL Healthcare Pty. Ltd. in October 2017 (excluded through September 2018 only), (6) certain divested assets of Becton, Dickinson and Company in February 2018, (7) the assets of DirectACCESS Medical, LLC in May 2018, (8) Cianna Medical, Inc. in November 2018, (9) certain assets of Vascular Insights, LLC in December 2018, and (ii) revenues from (1) the distribution arrangement with NinePoint Medical, Inc. executed in April 2018 and (2) the distribution arrangement with QXMedical, LLC executed in May 2018. Core revenue on a constant currency basis is defined as core revenue (as described in the first sentence of this paragraph) plus the foreign exchange impact related to those core sales, using the applicable foreign exchange rates in effect for the comparable prior-year periods presented.

Non-GAAP Gross Margin
Non-GAAP gross margin is calculated by reducing GAAP cost of sales by amounts recorded for amortization of intangible assets and inventory mark-up related to acquisitions.

Non-GAAP Net Income
Non-GAAP net income is calculated by adjusting GAAP net income for certain items which are deemed by Merit’s management to be outside of core operations and vary in amount and frequency among periods, such as expenses related to 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, as well as other items set forth in the table below.

Non-GAAP EPS
Non-GAAP EPS is defined as non-GAAP net income divided by the diluted shares outstanding for the corresponding period.

Other Non-GAAP Financial Measure Reconciliation
The tables in this release set forth supplemental financial data and corresponding reconciliations of non-GAAP net income and non-GAAP earnings per share to Merit’s net income and earnings per share prepared in accordance with GAAP for the three and twelve-month periods ended December 31, 2018 and 2017. The non-GAAP income adjustments referenced in these table do not reflect stock-based compensation expense of approximately $1.6 million and $1.2 million for the three-month periods ended December 31, 2018 and 2017, respectively, and approximately $6.1 million and $4.1 million for the years ended December 31, 2018 and 2017, respectively.

Reconciliation of GAAP Net Income to Non-GAAP Net Income   
(Unaudited, in thousands except per share amounts)   
     
 Three Months Ended
 December 31, 2018
 Pre-TaxTax Impact (a)After-TaxPer Share Impact
GAAP net income$12,210 $(3,022)$9,188 $0.16 
     
Non-GAAP adjustments:    
Cost of Sales    
Amortization of intangibles9,245 (2,365)6,880 0.13 
Inventory mark-up related to acquisitions1,255 (323)932 0.02 
Operating Expenses    
Severance440 (114)326 0.01 
Acquisition-related (b)4,465 (876)3,589 0.06 
Fair value adjustment to contingent consideration (c)(256)68 (188)0.00 
Long-term asset impairment charge (d)70 (18)52 0.00 
Acquired in-process research and development263 (67)196 0.00 
Amortization of intangibles2,574 (679)1,895 0.03 
Special legal expense (f)1,363 (351)1,012 0.02 
Other (Income) Expense    
Amortization of long-term debt issuance costs201 (52)149 0.00 
Tax expense related to tax reform (h) 3,005 3,005 0.05 
     
Non-GAAP net income$31,830 $(4,794)$27,036 $0.48 
     
Diluted shares   56,514 
     
 Three Months Ended
 December 31, 2017
 Pre-TaxTax Impact (a)After-TaxPer Share Impact
GAAP net income$11,280 $(4,474)$6,806 $0.13 
     
Non-GAAP adjustments:    
Cost of Sales    
Amortization of intangibles5,490 (1,848)3,642 0.07 
Inventory mark-up related to acquisitions279 (39)240 0.00 
Operating Expenses    
Severance446 (171)275 0.01 
Acquisition-related (b)1,593 (532)1,061 0.02 
Fair value adjustment to contingent consideration (c)(338)131 (207)0.00 
Long-term asset impairment charge (d)93 (36)57 0.00 
Intangible asset impairment charge (e)809  809 0.02 
Amortization of intangibles1,908 (703)1,205 0.02 
Special legal expense (f)2,001 (779)1,222 0.02 
Other (Income) Expense    
Gain on bargain purchase (g)(243) (243)0.00 
Amortization of long-term debt issuance costs171 (67)104 0.00 
Tax expense related to tax reform (h) 1,855 1,855 0.04 
     
Non-GAAP net income$23,489 $(6,663)$16,826 $0.33 
     
Diluted shares   51,722 


Reconciliation of GAAP Net Income to Non-GAAP Net Income   
(Unaudited, in thousands except per share amounts)   
     
 Year Ended
 December 31, 2018
 Pre-TaxTax Impact (a)After-TaxPer Share Impact
GAAP net income$49,519 $(7,502)$42,017 $0.78 
     
Non-GAAP adjustments:    
Cost of Sales    
Amortization of intangibles31,795 (8,123)23,672 0.43 
Inventory mark-up related to acquisitions5,233 (1,347)3,886 0.07 
Operating expenses    
Severance920 (205)715 0.01 
Acquisition-related (b)7,584 (1,679)5,905 0.11 
Fair value adjustment to contingent consideration (c)(698)(21)(719)(0.01)
Long-term asset impairment charge (d)156 (40)116 0.00 
Acquired in-process research and development644 (166)478 0.01 
Intangible asset impairment charge (e)657 (169)488 0.01 
Amortization of intangibles9,438 (2,503)6,935 0.12 
Special legal expense (f)5,645 (1,453)4,192 0.08 
Other (Income) Expense    
Amortization of long-term debt issuance costs804 (207)597 0.01 
Tax expense related to tax reform (h) 3,005 3,005 0.06 
     
Non-GAAP net income$111,697 $(20,410)$91,287 $1.69 
     
Diluted shares   53,931 
     
 Year Ended
 December 31, 2017
 Pre-TaxTax Impact (a)After-TaxPer Share Impact
GAAP net income$35,881 $(8,358)$27,523 $0.55 
     
Non-GAAP adjustments:    
Cost of Sales    
Amortization of intangibles20,705 (7,550)13,155 0.26 
Inventory mark-up related to acquisitions3,400 (1,253)2,147 0.04 
Operating Expenses    
Severance2,185 (847)1,338 0.03 
Acquisition-related (b)6,648 (2,048)4,600 0.09 
Fair value adjustment to contingent consideration (c)(298)116 (182)0.00 
Long-term asset impairment charge (d)179 (70)109 0.00 
Acquired in-process research and development12,136 (97)12,039 0.24 
Intangible asset impairment charge (e)809  809 0.02 
Amortization of intangibles6,111 (2,324)3,787 0.07 
Special legal expense (f)12,616 (4,908)7,708 0.15 
Other (Income) Expense    
Gain on bargain purchase (g)(11,039) (11,039)(0.22)
Amortization of long-term debt issuance costs685 (267)418 0.01 
Tax expense related to tax reform (h) 1,855 1,855 0.04 
     
Non-GAAP net income$90,018 $(25,751)$64,267 $1.28 
     
Diluted shares   50,101 
      

(a) 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.
(b) Represents transaction and certain direct integration costs, including travel, related to acquisitions.
(c) Represents changes in the fair value of contingent consideration liabilities and contingent receivables associated with prior acquisitions.
(d) Represents abandoned patents.
(e) Represents impairment charges related to certain acquired intangible assets.
(f) Costs incurred in responding to an inquiry from the U.S. Department of Justice.
(g) Represents the gain on bargain purchase realized from the acquisition of the critical care division of Argon Medical Devices, Inc.
(h) Net tax impact related to the enactment of the Tax Cuts and Jobs Act


Reconciliation of Reported Revenue to Core Revenue (Non-GAAP), Constant Currency Revenue (Non-GAAP), and Core Revenue on a Constant Currency Basis (Non-GAAP)  
(Unaudited; in thousands except percentages)       
  Three Months Ended  Year Ended
  December 31,  December 31,
 % Change20182017 % Change20182017
Reported Revenue22.2%$233,249 $190,897  21.3%$882,753 $727,852 
        
Add: Impact of foreign exchange (a) 2,217    (5,163) 
        
Constant Currency Revenue23.3%$235,466 $190,897  20.6%$877,590 $727,852 
        
  Three Months Ended  Year Ended
  December 31,  December 31,
 % Change20182017 % Change20182017
Reported Revenue22.2%$233,249 $190,897  21.3%$882,753 $727,852 
        
Less: Revenue from certain acquisitions (b) (19,470)   (66,564) 
        
Core Revenue12.0%$213,779 $190,897  12.1%$816,189 $727,852 
        
Add: Impact of foreign exchange (a) 2,217    (5,163) 
        
Core Revenue on a Constant Currency Basis13.1%$215,996 $190,897  11.4%$811,026 $727,852 

 

(a) The constant currency revenue adjustments of $2.2 million and $(5.2) million to reported revenue and to core revenue, for the three and twelve months ended December 31, 2018, respectively, were calculated using the applicable average foreign exchange rates for the three and twelve months ended December 31, 2017, respectively.

(b) Merit’s core revenue is defined (a) with respect to prior fiscal year periods, as GAAP revenue, and (b) with respect to current fiscal year periods, as GAAP revenue, less revenue from certain acquisitions and strategic transactions. For the three and twelve-month periods ended December 31, 2018, Merit’s core revenue excludes revenues from (i) the acquisitions of (1) the assets of Catheter Connections, Inc. in January 2017 (excluded January 2018 only), (2) the critical care division of Argon Medical Devices, Inc. in January 2017 (excluded January 2018 only), (3) Osseon LLC in July 2017 (excluded through June 2018 only), (4) Laurane Medical S.A.S. in August 2017 (excluded through July 2018 only), (5) ITL Healthcare Pty. Ltd. in October 2017 (excluded through September 2018 only), (6) certain divested assets of Becton, Dickinson and Company in February 2018, (7) the assets of DirectACCESS Medical, LLC in May 2018, (8) Cianna Medical, Inc. in November 2018, (9) certain assets of Vascular Insights, LLC in December 2018, and (ii) revenues from (1) the distribution arrangement with NinePoint Medical, Inc. executed in April 2018 and (2) the distribution arrangement with QXMedical, LLC executed in May 2018.


Reconciliation of Reported Gross Margin to Non-GAAP Gross Margin (Non-GAAP)  
(Unaudited, as a percentage of reported revenue)    
      
 Three months ended Year Ended
 December 31, December 31,
 20182017 20182017
Reported Gross Margin44.9%44.9% 44.7%44.8%
      
Add back impact of:     
Amortization of intangibles4.0%2.9% 3.6%2.8%
Inventory mark-up related to acquisitions0.5%0.1% 0.6%0.5%
      
Non-GAAP Gross Margin49.4%47.9% 48.9%48.1%

  

ABOUT MERIT
Founded in 1987, Merit Medical Systems, Inc. is engaged in the development, manufacture and distribution of proprietary disposable medical devices used in interventional, diagnostic and therapeutic procedures, particularly in cardiology, radiology, oncology, critical care and endoscopy. Merit serves client hospitals worldwide with a domestic and international sales force and clinical support team totaling in excess of 300 individuals. Merit employs approximately 6,000 people worldwide with facilities in South Jordan, Utah; Pearland, Texas; Richmond, Virginia; Malvern, Pennsylvania; Rockland, Massachusetts; San Jose and Aliso Viejo, California; Maastricht and Venlo, The Netherlands; Paris, France; Galway, Ireland; Beijing, China; Tijuana, Mexico; Joinville, Brazil; Markham, Ontario, Canada; Melbourne, Australia; Tokyo, Japan; Reading, United Kingdom; Johannesburg, South Africa; and Singapore.

FORWARD-LOOKING STATEMENTS
Statements contained in this release which are not purely historical, including, without limitation, statements regarding Merit's forecasted plans, net sales, net income (GAAP and non-GAAP), gross margin (GAAP and non-GAAP), earnings per share (GAAP and non-GAAP), effective tax rate and other financial results, anticipated or completed acquisitions, or the introduction of new products, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and are subject to risks and uncertainties such as those described in Merit's Annual Report on Form 10-K for the year ended December 31, 2017 and subsequent filings with the Securities and Exchange Commission. Such risks and uncertainties include inherent risks and uncertainties relating to Merit’s internal models or the projections in this release; risks relating to Merit's potential inability to successfully manage growth through acquisitions generally, including the inability to effectively integrate acquired operations or products or commercialize technology acquired through completed, proposed or future transactions; expenditures relating to research, development, testing and regulatory approval or clearance of Merit's products and risks that such products may not be developed successfully or approved for commercial use; governmental scrutiny and regulation of the medical device industry, including governmental inquiries, investigations and proceedings involving Merit;  restrictions on Merit's liquidity or business operations resulting from its debt agreements; infringement of Merit's technology or the assertion that Merit's technology infringes the rights of other parties; product recalls and product liability claims; changes in customer purchasing patterns or the mix of products Merit sells; risks and uncertainties associated with Merit’s information technology systems, including the potential for breaches of security and evolving regulations regarding privacy and data protection; the potential of fines, penalties or other adverse consequences if Merit's employees or agents violate the U.S. Foreign Corrupt Practices Act or other laws or regulations; the pending exit of the United Kingdom from the European Union and uncertainties about when, how or if such exit will occur; laws and regulations targeting fraud and abuse in the healthcare industry; potential for significant adverse changes in governing regulations, including reforms to the procedures for approval or clearance of Merit's products by the U.S. Food & Drug Administration or comparable regulatory authorities in other jurisdictions; changes in tax laws and regulations in the United States or other countries; increases in the prices of commodity components; negative changes in economic and industry conditions in the United States or other countries; termination or interruption of relationships with Merit's suppliers, or failure of such suppliers to perform; fluctuations in exchange rates; uncertainties relating to the LIBOR calculation method and the potential phasing out of LIBOR; concentration of a substantial portion of Merit's revenues among a few products and procedures; development of new products and technology that could render Merit's existing products obsolete; market acceptance of new products; volatility in the market price of Merit's common stock; modification or limitation of governmental or private insurance reimbursement policies; changes in healthcare policies or markets related to healthcare reform initiatives; failure to comply with applicable environmental laws; changes in key personnel; work stoppage or transportation risks; introduction of products in a timely fashion; price and product competition; availability of labor and materials; fluctuations in and obsolescence of inventory; and other factors referred to in Merit's Annual Report on Form 10-K for the year ended December 31, 2017 and other materials filed with the Securities and Exchange Commission. All subsequent forward-looking statements attributable to Merit or persons acting on its behalf are expressly qualified in their entirety by these cautionary statements. Actual results will likely differ, and may differ materially, from anticipated results. Financial estimates are subject to change and are not intended to be relied upon as predictions of future operating results, and Merit assumes no obligation to update or disclose revisions to those estimates.

TRADEMARKS
Unless noted otherwise, trademarks and registered trademarks used in this release are the property of Merit Medical Systems, Inc. and its subsidiaries in the United States and other jurisdictions.

Contact:  Anne-Marie Wright, Vice President, Corporate Communications
Phone:  (801) 208-4167  e-mail: awright@merit.com  Fax: (801) 253-1688