Merit Medical Systems, Inc.

Q4 2020 Earnings Conference Call

2/24/2021

spk_1: Good afternoon, ladies and gentlemen.
spk_2: And welcome to the fourth quarter 2020 earnings Conference call for Merit Medical Systems Inc. At this time, all participants have been placed in. Listen, only mode. Please note that this conference call is being recorded and that the recording will be available on the company's website for replay shortly. I would now like to turn the call over to Mr Fred Lymberopoulos, Merit Medical Systems founder, chairman and Chief Executive Officer. Please go ahead, sir.
spk_1: Thank you, Liz. And welcome everyone to medicals. Fourth quarter, 2020 earnings conference call. I'm joined on the call today by Raul Parra, our chief financial officer and treasure, and Brian Lloyd, our chief legal officer and corporate secretary. Brian, would you mind taking us to the safe harbor provisions, please?
spk_0: Thank you. Fred. Before we get started, I would like to remind everyone that this presentation contains forward looking statements that receive safe harbor protection and our federal securities laws. Although we believe these forward looking statements are based upon reasonable assumptions, they are subject to unknown risks and uncertainties. The realization of any of these risks or uncertainties, including the unpredictable effect of the ongoing Covid 19 pandemic, as well as extraordinary events or transactions impacting our company could cause actual results to differ materially from those currently anticipated. In addition, any forward looking statements represent our views only as of today, February 24th 2021 and should not be relied upon as representing our views as of any other date. We specifically disclaim any obligation to update such statements except as required by applicable law. Please refer to the section entitled Disclosure regarding Forward Looking Statements in today's presentation for important information regarding such statements, please also refer to our most recent findings with the SEC for discussion of factors that could cause actual results. To differ from these forward looking statements, our financial statements are prepared in accordance with the county principles which are generally accepted in the United States. However, we believe certain non gap financial measures provide investors with useful information regarding the underlying business trends and performance of our ongoing operations, and can be useful for period over period comparisons of such operations. This presentation also concerns contains certain non gap financial measures. Reconciliation of non gap financial measures to the most directly comparable US gap measures is included in today's press release and presentation furnished to the SEC under Form eight K. Please refer to the sections of our presentation entitled Non Gap Financial Measures and Notes. Deunan. Get Financial Measures for important information regarding Non Gap Financial Measures Discussed on this call, readers should consider non gap financial measures in addition to not as a substitute for financial reporting measures prepared in accordance with Gap. Please note that these calculations may not be comparable with similarly titled measures of other companies. Both today's press release and our presentation are available in the Investors page of our website. I will now turn the call back to Fred.
spk_1: Thank you, Brian, and let me start with a brief agenda of what we will cover during our prepared remarks today. I will start with an overview of our revenue performance in the fourth quarter, including the business trends we experienced during the quarter and the areas of our business that performed well. Despite the challenging operating environment. I will then provide an update on our operating progress and highlights during the fourth quarter. After my opening remarks, Raul will provide you with a more in depth review of our quarterly financial results in the formal financial guidance for 2021 that we introduced in this afternoon's press release, as well as the summary of our balance sheet and financial conditions. Then we will open the call to your questions now, beginning with the review of the fourth quarter revenue performance. We reported total gap revenues of 250 million in quarter four, essentially flat compared to the prior year period and above the high end of our guidance range, which called for fourth quarter revenue to decline to 25% year over year in quarter four. Total quarter revenue on a constant currency basis declined 1% year over year, reflecting the benefit to our gap revenue results as a result of changes in exchange rates compared to the prior year period, our total gap revenue growth performance was driven by a 0.3% growth in sales of our cardiovascular products, which was partially offset by a 7% decrease in sales of our endoscopy products compared to the prior year. Both of these results exceeded the high end of our guidance ranges, which called for the sales decline of 1 to 16, 1 and 16% year over year respectively in quarter four
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