Merit Medical Announces Results for the Quarter Ended September 30, 2013

Merit Medical Announces Results for the Quarter Ended September 30, 2013

                          Record Sales Up 20% for 3Q

                         Core Business Up 11% for 3Q

       Improved Performance in All Product Groups and Business Segments

                Gross Margin Up 150 Basis Points Sequentially

         3Q SG&A and R&D Expenses Down 300 Basis Points Sequentially

                          Non-GAAP EPS $0.25 for 3Q

SOUTH JORDAN, Utah, Oct. 23, 2013 (GLOBE NEWSWIRE) -- Merit Medical Systems,
Inc. (Nasdaq:MMSI), a leading manufacturer and marketer of proprietary
disposable medical devices used in interventional and diagnostic procedures,
particularly in cardiology, radiology and endoscopy, today announced record
revenues of $115.2 million for the quarter ended September 30, 2013, an
increase of 20% over revenues of $95.9 million for the third quarter of 2012.
Revenues for the nine-month period ended September 30, 2013 were a record
$329.0 million, compared with $292.1 million for the comparable nine-month
period in 2012, an increase of 13%.

Merit's non-GAAP net income for the quarter ended September 30, 2013, adjusted
to eliminate non-recurring costs and amortization of intangibles, was $10.5
million, or $0.25 per share, up 24% compared to $8.5 million, or $0.20 per
share, for the quarter ended September 30, 2012.

Merit's non-GAAP net income for the nine months ended September 30, 2013,
adjusted to eliminate non-recurring costs and amortization of intangibles, was
down 14% to $21.1 million, or $0.49 per share, compared to $24.6 million, or
$0.58 per share, for the corresponding period of 2012.

GAAP net income for the quarter ended September 30, 2013 was $5.6 million, or
$0.13 per share, compared to $7.2 million, or $0.17 per share, for the
comparable quarter of 2012.

GAAP net income for the nine-month period ended September 30, 2013 was $10.0
million, or $0.23 per share, compared to $19.1 million, or $0.45 per share,
for the corresponding period of 2012.

For both the three- and nine-month periods ended September 30, 2013, GAAP
operating income and net income were affected by a non-recurring, non-cash
impairment of approximately $4.3 million ($2.7 million after tax). Merit
recorded a write-down of intangible assets related to the decreased future
revenue forecast of an acquired product. Excluding the aforementioned one-time
impairment charge of $2.7 million after tax, GAAP net income would have been
$8.3 million, or $0.19 per share, for the quarter ended September 30, 2013, up
15% compared to $7.2 million, or $0.17 per share, for the quarter ended
September 30, 2012.

In the third quarter of 2013, compared to the third quarter of 2012, catheter
sales grew 17%; stand-alone device sales increased 15%; custom kit and tray
sales rose 15%; Merit Endotek sales were up 14%; BioSphere sales increased 6%;
and inflation device sales were down 4%. Excluding lower sales to an OEM
customer, inflation device sales rose 0.5%.

For the nine-month period ended September 30, 2013, compared to the nine-month
period ended September 30, 2012, catheter sales grew 15%; custom kit and tray
sales rose 10%; stand-alone device sales increased 7%; Merit Endotek sales
were up 6%; BioSphere sales decreased 4%; and inflation device sales were down
8%. Excluding lower sales to an OEM customer, inflation device sales rose
0.6%.

GAAP gross margin for the third quarter of 2013 was 44.3% of sales, compared
to 47.3% of sales for the third quarter of 2012 and 42.8% of sales for the
second quarter of 2013.GAAP gross margin for the nine-month period ended
September 30, 2013 was 42.9% of sales, compared to 46.7% of sales for the
comparable period of 2012.The reductions in gross margins from the three- and
nine-month periods ended September 30, 2012 to the corresponding periods of
2013 were due primarily to higher standard costs of 1.5% and 1.7% of sales,
respectively, resulting from lower production volumes for the three- and
nine-month periods ended September 30, 2013; amortization of developed
technology costs of 1.2% of sales for both periods of 2013, associated with
the integration of the operations of Thomas Medical; implementation of the
Medical Device Excise Tax of 1.0% of sales for both periods of 2013, which was
part of the Affordable Care Act; and non-recurring finished goods inventory
mark-up costs of 0.1% and 0.2% of sales, respectively, related to the Thomas
Medical acquisition for both periods of 2013. Excluding the non-recurring
Thomas Medical finished goods inventory mark-up costs, gross margin would have
been 44.4% and 43.1% of sales, respectively, for the three- and nine-month
periods ended September 30, 2013. Merit's non-GAAP gross margin was 46.5% of
sales for the quarter ended September 30, 2013, compared to 48.5% of sales for
the quarter ended September 30, 2012. Non-GAAP gross margin was 45.2% of
sales for the nine months ended September 30, 2013, compared to 47.9% of sales
for the nine months ended September 30, 2012.

GAAP selling, general and administrative expenses for the third quarter of
2013 were 27.2% of sales, compared to 30.1% of sales for the third quarter of
2012.For the nine-month period ended September 30, 2013, GAAP SG&A expenses
were 28.9% of sales, compared to 30.3% of sales for the first nine months of
2012. The decrease in SG&A expenses during both periods was primarily due to
the implementation of cost-cutting initiatives in expenses such as trade shows
and conventions, 401(k) employer match, and bonuses. Non-GAAP SG&A expenses
for the third quarter of 2013 were 26.2% of sales, compared to 29.5% of sales
for the third quarter of 2012. Non-GAAP SG&A expenses for the nine months
ended September 30, 2013 were 27.3% of sales, compared to 29.3% of sales for
the nine months ended September 30, 2012.

Research and development costs during the third quarter of 2013 were 6.3% of
sales, compared to 7.4% of sales for the third quarter of 2012.Research and
development costs were 7.6% of sales for the first nine months of 2013,
compared to 6.9% of sales for the comparable period of 2012.The decrease in
research and development costs for the third quarter of 2013 can be attributed
to an Irish government research and development benefit related to Merit's new
building in Galway, Ireland.The increase in research and development expenses
for the nine months ended September 30, 2013 was primarily due to headcount
additions for research and development to support new product development,
personnel increases in Merit's regulatory department to support registrations
in foreign countries to expand international product offerings, and research
and development costs associated with the acquisition of Thomas Medical.

"Although we had anticipated lower revenue growth due to seasonal
considerations, we are very pleased with the sales and operational results for
the third quarter," said Fred P. Lampropoulos, Merit's Chairman and Chief
Executive Officer."Overall revenue growth of 20% was driven by core product
growth of 11%.This growth, combined with lower SG&A expenses sequentially and
year-to-date, delivered results we are pleased with."

"We are working aggressively to implement our plan to consolidate facilities
and increase automation in both production and documentation of our
procedures," Lampropoulos said."We intend to continue these efforts
throughout and beyond 2014 and we believe these efforts are some of the
factors which will contribute to our goal of continued gross margin
improvement."

"We believe our pipeline of developed products, such as the basixTOUCH™
Inflation Syringe, ASAP® LP Aspiration Catheter, Prelude Ease™ Sheath
Introducer, PhD™ Hemostatic Valve, as well as the newly acquired products of
Datascope Corp. and Radial Assist, will provide substantial sales momentum
moving forward," Lampropoulos continued."Specifically, the combination of the
internally developed Ultimate™ and MIV™ radial catheters and our Prelude™
sheaths, along with the SAFEGUARD® pressure assisted device and the RadBoard®
product lines, give us a platform to support our radial program.We believe
radial access continues to be one of the fastest-growing segments in an
otherwise somewhat lackluster cardiology market."

"All of our product groups and business segments improved in the third quarter
compared to year-to-date results," Lampropoulos added."This performance is a
result of focus and leadership of our management team worldwide."

Merit's income from operations was $8.4 million for the third quarter of 2013,
compared to $9.1 million for the third quarter of 2012.For the nine-month
period ended September 30, 2013, income from operations was $16.9 million,
compared to $25.3 million for the corresponding period of 2012.

Merit's income tax expense for the third quarter of 2013 reflects an effective
tax rate of 12.9%, compared to an effective tax rate of 20.0% for the third
quarter of 2012.For the nine-month period ended September 30, 2013, Merit's
effective tax rate was 14.0%, compared to 26.0% for the comparable period of
2012.The decrease in the effective tax rate for both periods was primarily
the result of a higher mix of earnings from Merit's foreign operations
(primarily Ireland), which are taxed at a lower rate than Merit's U.S.
operations and the release of unrecognized tax benefits due to statute of
limitation expirations. In addition, the effective tax rate for the nine
months ended September 30, 2013 was lower than the corresponding period of
2012, due primarily to the reinstatement of the federal research and
development credit for the 2012 tax year. The credit was reinstated by the
American Taxpayer Relief Act of 2012, which was signed on January 2, 2013 and
recognized as a discrete benefit in the first quarter of 2013.

CONFERENCE CALL

Merit Medical invites all interested parties to participate in its conference
call today, (Wednesday, October 23^rd, 2013) 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 (877) 941-0844, and the international number is (480) 629-9835.A
live webcast will also be available for the conference call at www.merit.com.

BALANCE SHEET                                                 
(Unaudited in thousands)                                      
                                                September 30, December 31,
                                                2013          2012
ASSETS                                                        
Current Assets                                                
Cash and cash equivalents                        $9,115     $9,719
Trade receivables, net                           57,279      53,402
Employee receivables                             249         169
Other receivables                                2,502       2,672
Inventories                                      81,057      84,599
Prepaid expenses                                 4,922       4,133
Prepaid income taxes                             1,266       1,250
Deferred income tax assets                       4,989       4,976
Income tax refunds receivable                    1,102       1,076
Total Current Assets                             162,481     161,996
                                                             
Property and equipment, net                      261,963     234,803
Other intangibles, net                           101,805     118,131
Goodwill                                         175,489     175,108
Deferred income tax assets                       4,237       4,237
Other assets                                     12,208      11,034
Total Assets                                     $718,183   $705,309
                                                             
LIABILITIES AND STOCKHOLDERS' EQUITY                          
Current Liabilities                                           
Trade payables                                   23,637      34,637
Accrued expenses                                 27,308      27,269
Current portion of long-term debt                10,000      10,000
Advances from employees                          729         551
Income taxes payable                             1,871       547
Total Current Liabilities                        63,545      73,004
                                                             
                                                             
Deferred income tax liabilities                  2,436       2,373
Liabilities related to unrecognized tax benefits 2,035       2,938
Deferred compensation payable                    6,821       5,956
Deferred credits                                 3,107       2,980
Long-term debt                                   241,157     227,566
Other long-term obligations                      3,456       8,915
Total Liabilities                                322,557     323,732
                                                             
Stockholders' Equity                                          
Common stock                                     174,551     172,341
Retained earnings                                220,448     210,418
Accumulated other comprehensive loss             627         (1,182)
Total stockholders' equity                       395,626     381,577
Total Liabilities and Stockholders' Equity       $718,183   $705,309

                                                               
INCOME STATEMENT                                                
(Unaudited, in thousands except                                 
per share amounts)
                               Three Months Ended     Nine Months Ended
                               September 30,          September 30,
                               2013        2012       2013        2012
                                                               
SALES                           $115,210 $95,907 $329,033 $292,057
                                                               
COST OF SALES                   64,180    50,572   188,025   155,528
                                                               
GROSS PROFIT                    51,030    45,335   141,008   136,529
                                                               
OPERATING EXPENSES                                              
Selling, general and            31,350    28,880   95,002    88,638
administrative
Research and development        7,308     7,098    25,064    20,130
Intangible asset impairment     8,089               8,089     
charge
Contingent consideration        (4,108)              (4,075)    
benefit
Acquired in-process research               275                 2,450
and development
Total                           42,639    36,253   124,080   111,218
                                                               
INCOME FROM OPERATIONS          8,391     9,082    16,928    25,311
                                                               
OTHER INCOME (EXPENSE)                                          
Interest income                 69        57       200       176
Interest (expense)              (1,916)    (128)     (5,297)    (352)
Other income (expense)          (104)      26       (174)      633
Total other income (expense) -  (1,951)    (45)      (5,271)    457
net
                                                               
INCOME BEFORE INCOME TAX        6,440     9,037    11,657    25,768
EXPENSE
                                                               
INCOME TAX EXPENSE              833       1,811    1,627     6,699
                                                               
NET INCOME                      $5,607   $7,226  $10,030  $19,069
                                                               
EARNINGS PER SHARE--                                            
Basic                           $0.13    $0.17   $0.24    $0.45
                                                               
Diluted                         $0.13    $0.17   $0.23    $0.45
                                                               
AVERAGE COMMON SHARES--                                         
Basic                           42,596      42,202     42,560      42,087
                                                               
Diluted                         42,872      42,692     42,793      42,536

Although Merit's financial statements are prepared in accordance with
accounting principles which are generally accepted in the United States of
America ("GAAP"), Merit's management believes that certain non-GAAP financial
measures 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. The following
table sets forth supplemental financial data and corresponding reconciliations
to GAAP financial statements for the three- and nine-month periods ended
September 30, 2013 and 2012, respectively.Readers should consider these
non-GAAP measures in addition to, not as a substitute for, financial reporting
measures prepared in accordance with GAAP.These non-GAAP financial measures
exclude some, but not all, items that affect Merit's net income.Additionally,
these calculations may not be comparable with similarly titled measures of
other companies.

Merit Medical Systems, Inc.                                      
Non-GAAP Income Statement                                        
                                   Three Months Ended   Nine Months Ended
                                   September 30,        September 30,
                                   2013       2012      2013       2012
Non-GAAP ADJUSTMENTS                                             
GAAP net income                     $5,607  $7,226 $10,030 $19,069
                                                                
Acquisition costs                   32                526      67
Mark-up on finished goods (a)       164               744      
Severance                           65                1,411    252
Long-term asset impairment charges  27       17      80       27
(b)
Intangible asset impairment charges 8,089             8,089    
(c)
Long-term debt issuance charges     199               597      
Acquired in-process research and              275               2,450
development
Amortization of intangible assets                                
Cost of sales                       2,363    1,200   7,089    3,196
SG&A expense                        1,076    646     3,322    2,498
Contingent consideration benefit    (4,108)   (90)     (4,075)   370
(d)
Income tax effect of reconciling    (3,005)   (778)    (6,758)   (3,367)
items (e)
                                                                
                                   $10,509 $8,496 $21,055 $24,562
                                                                
Non-GAAP net income per share       $0.25   $0.20  $0.49   $0.58
                                                                
Diluted shares used to compute      42,872   42,692  42,793   42,536
Non-GAAP net income per share

The non-GAAP income for adjustments referenced in the preceding table does not
reflect stock-based compensation expense of approximately $289,000 and
approximately $429,000 for the three months ended September 30, 2013 and 2012,
respectively, and stock-based compensation of approximately $1.1 million and
approximately $1.5 million for the nine months ended September 30, 2013 and
2012, respectively.

(a) Increase in cost of goods sold related to the mark-up of finished goods
associated with Merit's acquisition of Thomas Medical Products, Inc.
(b) Amounts represent abandoned patents.
(c) Represents changes in the fair value of certain intangible assets
(d) Represents changes in the fair value of contingent consideration
liabilities for recent acquisitions.
(e) Reflects an estimated annual income tax rate of 38% on a non-GAAP basis.

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 and diagnostic procedures, particularly in cardiology,
radiology and endoscopy.Merit serves client hospitals worldwide with a
domestic and international sales force totaling approximately 200 individuals.
Merit employs approximately 3,000 people worldwide with facilities in South
Jordan, Utah; Angleton, Texas; Richmond, Virginia; Malvern, Pennsylvania;
Maastricht and Venlo, The Netherlands; Paris, France; Galway, Ireland;
Beijing, China; Copenhagen, Denmark; and Rockland, Massachusetts.

Statements contained in this release which are not purely historical,
including, without limitation, statements regarding Merit's forecasted
revenues, net income, financial results or anticipated acquisitions, 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, 2012. Such risks and uncertainties include risks relating to
Merit's potential inability to successfully manage growth through
acquisitions, including the inability to commercialize technology acquired
through completed, proposed or future transactions;product recalls and
product liability claims; 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; greater governmental scrutiny and regulation of the medical
device industry; reforms to the 510(k) process administered by the U.S. Food
and Drug Administration; compliance with governmental regulations and
administrative procedures; potential restrictions on Merit's liquidity or its
ability to operate its business in compliance with its current debt agreements
and the consequences of failing to comply with such agreements; possible
infringement of Merit's technology or the assertion that Merit's technology
infringes the rights of other parties; 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 and regulations; laws targeting
fraud and abuse in the healthcare industry; potential for significant adverse
changes in, or failure to comply with, governing regulations; the effect of
changes in tax laws and regulations in the United States or other countries;
the administrative burden and the expense associated with the Medical Device
Excise Tax; increases in the price of commodity components; negative changes
in economic and industry conditions in the United States and other countries;
termination or interruption of relationships with Merit's suppliers, or
failure of such suppliers to perform; fluctuations in Euro and GBP exchange
rates; Merit's need to generate sufficient cash flow to fund its debt
obligations, capital expenditures, and ongoing operations; concentration 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 health care markets related to health care
reform initiatives; failure to comply with applicable environmental laws;
changes in key personnel; work stoppage or transportation risks; uncertainties
associated with potential healthcare policy changes which may have a material
adverse effect on Merit; introduction of products in a timely fashion; price
and product competition; availability of labor and materials; cost increases;
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, 2012 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 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.

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

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