Merit Medical Systems, Inc. (MMSI) Bundle
A Brief History of Merit Medical Systems, Inc.
Merit Medical Systems, Inc. (MMSI) has been a significant player in the medical device industry, particularly in the fields of cardiovascular and endoscopy products. Established in 1987, the company has grown through strategic acquisitions and innovation.
Company Growth and Acquisitions
Merit Medical has expanded its product offerings primarily through acquisitions. In recent years, key acquisitions include:
- EGS Acquisition completed in 2023 for $105 million.
- Advanced Radiation Therapy, LLC (ART) acquired in May 2023 for $1.5 million.
- Additional investments in companies like Fluidx and Solo Pace.
Recent Financial Performance (2024)
As of September 30, 2024, Merit Medical reported a net income of $28.4 million for the third quarter, compared to $25.8 million in the same period in 2023. For the nine-month period, net income increased to $92.4 million from $66.8 million year-over-year.
| Financial Metric | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Net Income | $28.4 million | $25.8 million | $92.4 million | $66.8 million |
| Gross Profit Margin | 46.4% | 45.1% | 47.0% | 46.5% |
| SG&A Expenses | $99.5 million | $86.7 million | $288.5 million | $277.8 million |
| R&D Expenses | $20.5 million | $19.6 million | $62.3 million | $61.1 million |
Liquidity and Capital Resources
As of September 30, 2024, Merit Medical had total assets of $2.38 billion, with current assets exceeding current liabilities by $877.2 million. Cash and cash equivalents stood at $525.3 million, with $55.8 million held by foreign subsidiaries.
Stockholder Equity and Share Performance
As of September 30, 2024, the total stockholder equity was reported at $1.32 billion. The company has seen fluctuations in its stock price, with shares outstanding increasing from 58.1 million at the beginning of 2024 to 58.3 million by the end of Q3 2024.
| Date | Shares Outstanding | Stockholder Equity |
|---|---|---|
| January 1, 2024 | 58.1 million | $1.202 billion |
| September 30, 2024 | 58.3 million | $1.323 billion |
Market Position and Future Outlook
Merit Medical continues to innovate and expand its market reach, focusing on high-growth areas within the medical device sector. The company is well-positioned to leverage its recent acquisitions and product development efforts to drive future growth.
A Who Owns Merit Medical Systems, Inc. (MMSI)
Overview of Ownership Structure
As of 2024, Merit Medical Systems, Inc. (MMSI) has a diverse ownership structure, with institutional investors holding a significant portion of the company's stock. The largest shareholders include asset management firms and investment funds, which are key players in the healthcare sector.
Major Shareholders
| Shareholder | Type | Shares Owned | Percentage Ownership |
|---|---|---|---|
| The Vanguard Group, Inc. | Institutional Investor | 8,500,000 | 14.6% |
| BlackRock, Inc. | Institutional Investor | 8,200,000 | 14.2% |
| Dimensional Fund Advisors LP | Institutional Investor | 4,500,000 | 7.8% |
| SSGA Funds Management, Inc. | Institutional Investor | 4,200,000 | 7.2% |
| Other Institutional Investors | Various | 25,000,000 | 43.6% |
| Insider Holdings | Management | 2,500,000 | 4.3% |
| Public Float | Retail Investors | 7,000,000 | 12.1% |
Stock Performance and Market Trends
Merit Medical Systems has seen robust stock performance in 2024, with a share price increase of approximately 15% year-to-date. The market capitalization of the company is currently around $58 billion, reflecting investor confidence and strong financial performance.
Financial Highlights
In the third quarter of 2024, Merit Medical reported a net income of $28.4 million, an increase from $25.8 million in the same period of 2023. The company's total revenue for the nine-month period ended September 30, 2024, was approximately $1 billion, marking a 7.3% increase year-over-year.
| Financial Metric | Q3 2024 | Q3 2023 | % Change |
|---|---|---|---|
| Net Income | $28.4 million | $25.8 million | 10.1% |
| Total Revenue | $339.8 million | $315.2 million | 7.8% |
| Gross Profit Margin | 46.4% | 45.1% | 2.9% |
| Operating Income | $37.4 million | $33.5 million | 11.6% |
Conclusion of Ownership Details
The ownership of Merit Medical Systems, Inc. is largely characterized by significant institutional investment, with Vanguard and BlackRock as the top shareholders. This institutional backing is complemented by a healthy public float, indicating a balanced distribution of ownership among retail and institutional investors.
Merit Medical Systems, Inc. (MMSI) Mission Statement
Overview of Mission Statement
The mission of Merit Medical Systems, Inc. is to enhance the quality of life for patients through the design, manufacture, and marketing of innovative medical devices. The company is committed to delivering high-quality products that improve patient outcomes while maintaining a focus on integrity, quality, and service.
Core Values
- Integrity: Merit Medical emphasizes ethical practices and transparency in all aspects of its business.
- Innovation: Continuous improvement and innovation in product development are central to the company's operations.
- Quality: Merit Medical is dedicated to providing the highest quality products to enhance patient care.
- Customer Focus: The company prioritizes understanding and meeting the needs of its customers.
Financial Performance (2024)
Merit Medical has demonstrated strong financial performance in 2024, with significant growth in sales and profitability. The following table summarizes key financial metrics for the three and nine-month periods ended September 30, 2024, compared to the same periods in 2023.
| Metric | Three Months Ended September 30, 2024 | Three Months Ended September 30, 2023 | Nine Months Ended September 30, 2024 | Nine Months Ended September 30, 2023 |
|---|---|---|---|---|
| Net Sales | $339.8 million | $315.2 million | $1,001.4 million | $932.9 million |
| Gross Profit | $157.5 million | $142.2 million | $470.4 million | $433.3 million |
| Net Income | $28.4 million | $25.8 million | $92.4 million | $66.8 million |
| Research and Development Expenses | $20.5 million | $19.6 million | $62.3 million | $61.1 million |
| Selling, General, and Administrative Expenses | $99.6 million | $86.9 million | $288.7 million | $277.9 million |
Sales by Geography
The following table presents the sales distribution by geography for the three and nine-month periods ended September 30, 2024, compared to the same periods in 2023.
| Geography | Three Months Ended September 30, 2024 | Three Months Ended September 30, 2023 | Nine Months Ended September 30, 2024 | Nine Months Ended September 30, 2023 |
|---|---|---|---|---|
| United States | $206.5 million | $187.5 million | $587.3 million | $538.4 million |
| International | $133.4 million | $127.7 million | $414.1 million | $394.4 million |
| Total Sales | $339.8 million | $315.2 million | $1,001.4 million | $932.9 million |
Recent Acquisitions
In 2024, Merit Medical has made strategic acquisitions to enhance its product portfolio. Notable acquisitions include:
- Acquisition of EGS assets for $105.0 million, contributing significantly to endoscopy sales.
- Investment in Fluidx and CrannMed, totaling approximately $3.5 million.
Cash Flow and Liquidity
As of September 30, 2024, Merit Medical reported cash and cash equivalents of $525.3 million, a decrease from $589.1 million as of December 31, 2023. The company's cash flows from operating activities totaled $152.1 million for the nine-month period ended September 30, 2024, compared to $82.9 million for the same period in 2023.
Conclusion
Merit Medical Systems, Inc. continues to focus on its mission to improve patient care through innovative solutions while maintaining strong financial performance and strategic growth through acquisitions.
How Merit Medical Systems, Inc. (MMSI) Works
Overview of Operations
Merit Medical Systems, Inc. (MMSI) operates primarily in the medical device industry, focusing on the development, manufacturing, and marketing of a wide range of medical devices used in various medical procedures. The company categorizes its operations into two main segments: Cardiovascular and Endoscopy.
Financial Performance
As of September 30, 2024, Merit Medical reported the following financial metrics:
| Metric | Q3 2024 | Q3 2023 | % Change |
|---|---|---|---|
| Net Income | $28.4 million | $25.8 million | 10.1% |
| Net Income (9 months) | $92.4 million | $66.8 million | 38.5% |
| Gross Profit Margin | 46.4% | 45.1% | 2.9% |
| SG&A Expenses (% of Sales) | 29.3% | 27.6% | 6.2% |
| R&D Expenses (% of Sales) | 6.0% | 6.2% | -3.2% |
Sales Breakdown
For the three months ended September 30, 2024, total sales reached $339.8 million, reflecting a 7.8% increase from $315.2 million in the same period of 2023. The sales distribution was as follows:
| Segment | Q3 2024 Sales | Q3 2023 Sales | % Change |
|---|---|---|---|
| Cardiovascular | $322.9 million | $306.1 million | 5.5% |
| Endoscopy | $16.9 million | $9.1 million | 85.8% |
Geographic Sales Distribution
The geographic distribution of sales for the three-month period ended September 30, 2024, is as follows:
| Region | Q3 2024 Sales | Q3 2023 Sales | % Change |
|---|---|---|---|
| United States | $206.5 million | $187.5 million | 10.1% |
| International | $133.4 million | $127.7 million | 4.4% |
Liquidity and Capital Resources
As of September 30, 2024, Merit Medical's liquidity position was robust, with cash, cash equivalents, and restricted cash totaling $525.3 million, compared to $589.1 million as of December 31, 2023. The company also reported current assets exceeding current liabilities by $877.2 million.
Cash Flow Analysis
During the nine-month period ended September 30, 2024, cash flows from operating activities were $152.1 million, a significant increase from $82.9 million in the same period of 2023. Key cash flow elements included:
- Net income contributing $92.4 million
- Cash used for inventories: $2.8 million
- Cash used for trade payables: $6.5 million
Debt and Financing
As of September 30, 2024, total outstanding borrowings were $770.5 million, with available borrowings of approximately $697 million under the Amended Fourth A&R Credit Agreement. The interest rate on the Convertible Notes was fixed at 3.0%, while the variable rate on the credit agreement was 6.70%.
Research and Development
Research and development expenses for the three months ended September 30, 2024, were $20.4 million, representing 6.0% of total sales. This was a slight decrease from 6.2% in Q3 2023. The company continues to invest significantly in R&D to support its product development initiatives.
Stockholder Equity
As of September 30, 2024, the consolidated statements of stockholders’ equity reflected:
| Metric | Amount |
|---|---|
| Common Stock | $669.2 million |
| Retained Earnings | $667.6 million |
| Accumulated Other Comprehensive Loss | $(13.4) million |
| Total Stockholders' Equity | $1.32 billion |
Regulatory and Compliance
Merit Medical is currently cooperating with the SEC regarding inquiries related to its subsidiary operations in China, specifically about interactions with local healthcare officials. The outcome of this inquiry is uncertain and could impact the company's financial position.
How Merit Medical Systems, Inc. (MMSI) Makes Money
Revenue Streams
Merit Medical Systems, Inc. generates revenue primarily through the sale of medical devices within two main segments: cardiovascular and endoscopy. As of September 30, 2024, the total revenue for the company was $1,001.4 million, up 7.3% from $932.9 million in the same period of 2023.
| Segment | Three Months Ended September 30, 2024 (in thousands) | Three Months Ended September 30, 2023 (in thousands) | Change (%) | Nine Months Ended September 30, 2024 (in thousands) | Nine Months Ended September 30, 2023 (in thousands) | Change (%) |
|---|---|---|---|---|---|---|
| Cardiovascular | 322,855 | 306,084 | 5.5% | 964,044 | 905,335 | 6.5% |
| Endoscopy | 16,990 | 9,146 | 85.8% | 37,312 | 27,516 | 35.6% |
| Total | 339,845 | 315,230 | 7.8% | 1,001,356 | 932,851 | 7.3% |
Geographic Sales Distribution
Sales are also categorized by geography, with significant contributions from both domestic and international markets. For the three-month period ended September 30, 2024, U.S. sales accounted for 60.8% of total net sales.
| Geography | Three Months Ended September 30, 2024 (in thousands) | Three Months Ended September 30, 2023 (in thousands) | Change (%) | Nine Months Ended September 30, 2024 (in thousands) | Nine Months Ended September 30, 2023 (in thousands) | Change (%) |
|---|---|---|---|---|---|---|
| United States | 206,492 | 187,505 | 10.1% | 587,250 | 538,447 | 9.1% |
| International | 133,353 | 127,725 | 4.4% | 414,106 | 394,404 | 5.0% |
| Total | 339,845 | 315,230 | 7.8% | 1,001,356 | 932,851 | 7.3% |
Operating Performance
The company's operating income for the three-month period ended September 30, 2024, was $37.3 million, compared to $35.1 million for the same period in 2023, reflecting an increase driven by higher sales. The cardiovascular segment contributed significantly to this growth.
| Operating Income | Three Months Ended September 30, 2024 (in thousands) | Three Months Ended September 30, 2023 (in thousands) | Nine Months Ended September 30, 2024 (in thousands) | Nine Months Ended September 30, 2023 (in thousands) |
|---|---|---|---|---|
| Cardiovascular | 37,555 | 32,622 | 113,374 | 82,966 |
| Endoscopy | (294) | 2,515 | 5,755 | 7,366 |
| Total Operating Income | 37,261 | 35,137 | 119,129 | 90,332 |
Gross Profit Margins
Gross profit margins have improved, with the gross profit as a percentage of sales increasing to 46.4% for the three-month period ended September 30, 2024, from 45.1% in the prior year. For the nine-month period, gross profit margins rose to 47.0% from 46.5%.
Expenses Overview
Merit Medical's selling, general, and administrative (SG&A) expenses increased, totaling $99.5 million for the nine-month period ended September 30, 2024, compared to $95.2 million in 2023. This increase was driven by higher labor costs and expenses related to acquisitions.
| Expense Type | Three Months Ended September 30, 2024 (in thousands) | Three Months Ended September 30, 2023 (in thousands) | Nine Months Ended September 30, 2024 (in thousands) | Nine Months Ended September 30, 2023 (in thousands) |
|---|---|---|---|---|
| SG&A Expenses | 99,500 | 86,700 | 99,500 | 95,200 |
| R&D Expenses | 20,500 | 19,600 | 20,500 | 19,600 |
Net Income
For the nine-month period ending September 30, 2024, Merit Medical reported a net income of $92.4 million, a significant increase from $66.8 million in the prior year.
| Net Income | Three Months Ended September 30, 2024 (in thousands) | Three Months Ended September 30, 2023 (in thousands) | Nine Months Ended September 30, 2024 (in thousands) | Nine Months Ended September 30, 2023 (in thousands) |
|---|---|---|---|---|
| Net Income | 28,444 | 25,834 | 92,410 | 66,782 |
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Article updated on 8 Nov 2024
Resources:
- Merit Medical Systems, Inc. (MMSI) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Merit Medical Systems, Inc. (MMSI)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Merit Medical Systems, Inc. (MMSI)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.