SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
---------
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED MARCH 31, 2002.
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM _____ TO
Commission File Number 0-18592
MERIT MEDICAL SYSTEMS, INC.
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(Exact name of Registrant as specified in its charter)
Utah 87-0447695
- ------------------------------- --------------------------
(State or other jurisdiction of (I.R.S. Identification No.
incorporation or organization)
1600 West Merit Parkway, South Jordan UT, 84095
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(Address of Principal Executive Offices)
(801) 253-1600
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(Registrant's telephone number, including area code)
Indicate by check mark whether the Registrant (1) has filed all reports
required to be filed by Sections 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
Registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days.
Yes X No
----- ----
Indicate the number of shares outstanding of each of the Registrant's
classes of common stock, as of the latest practicable date.
Common Stock 13,528,677
- --------------- -------------------------------
TITLE OR CLASS Number of Shares Outstanding at
May 14, 2002
MERIT MEDICAL SYSTEMS, INC.
INDEX TO FORM 10-Q
PART I. FINANCIAL INFORMATION PAGE
----
Item 1. Financial Statements
Consolidated Balance Sheets as of March 31, 2002
and December 31, 2001. . . . . . . . . . . . . . . . . . . . . . .1
Consolidated Statements of Operations for the three months
ended March 31, 2002 and 2001 . . . . . . . . . . . . . . . .. . 3
Consolidated Statements of Cash Flows for the three months
ended March 31, 2002 and 2001 . . . . . . . . . . . . . . . . . 4
Notes to Consolidated Financial Statements . . . . . . . . . . . 6
Item 2. Management's Discussion and Analysis of Financial Condition
and Results of Operations . . . . . . . . . . . . . . . . . . . 8
Item 3. Qualitative and Quantitative Disclosures About Market Risk . . . 11
PART II. OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K . . . . . . . . . . . . . . . .11
SIGNATURES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
MERIT MEDICAL SYSTEMS, INC.
CONSOLIDATED BALANCE SHEETS
MARCH 31, 2002 AND DECEMBER 31, 2001 (Unaudited)
- ----------------------------------------------------------------------------------------
ASSETS
------
March 31, December 31,
2002 2001
------------ ------------
CURRENT ASSETS:
Cash and cash equivalents $ 929,089 $ 341,690
Short-term investments 85,286 85,286
Trade receivables - net 15,090,272 14,748,021
Employee and related
party receivables 507,228 266,905
Irish Development Agency grant receivable 38,777 98,081
Inventories 19,151,617 20,823,616
Prepaid expenses and other assets 798,139 514,786
Deferred income tax assets 723,299 723,299
------------ ------------
Total current assets 37,323,707 37,601,684
------------ ------------
PROPERTY AND EQUIPMENT:
Land 1,252,066 1,252,066
Building 1,500,000 1,500,000
Manufacturing equipment 23,657,880 23,289,880
Automobiles 91,488 91,573
Furniture and fixtures 10,153,885 9,963,045
Leasehold improvements 5,797,665 5,659,457
Construction-in-progress 2,331,234 1,738,540
------------ ------------
Total 44,784,218 43,494,561
Less accumulated depreciation
and amortization (22,732,277) (21,671,501)
------------ ------------
Property and equipment - net 22,051,941 21,823,060
------------ ------------
OTHER ASSETS:
Patents, trademarks and licenses - net 2,353,162 2,434,632
Deposits 34,834 34,843
Cost in excess of the fair value of assets of acquired-net 4,764,596 4,764,596
------------ ------------
Total other assets 7,152,592 7,234,071
------------ ------------
TOTAL ASSETS $ 66,528,240 $ 66,658,815
============ ============
(Continued)
See Notes to Consolidated Financial Statements
1
MERIT MEDICAL SYSTEMS, INC.
CONSOLIDATED BALANCE SHEETS
MARCH 31, 2002 AND DECEMBER 31, 2001 (Unaudited)
- ----------------------------------------------------------------------------------------
LIABILITIES AND STOCKHOLDERS' EQUITY
------------------------------------
March 31, December 31,
2002 2001
------------ ------------
CURRENT LIABILITIES:
Current portion of long-term debt $ 581,452 $ 598,086
Trade payables 4,332,313 4,659,295
Accrued expenses 6,383,769 4,817,595
Advances from employees 152,495 128,624
Income taxes payable 1,457,274 486,763
------------ ------------
Total current liabilities 12,907,303 10,690,363
DEFERRED INCOME TAX LIABILITIES 1,686,710 1,654,383
LONG-TERM DEBT 490,313 5,727,381
DEFERRED CREDITS 883,015 928,280
------------ ------------
Total Liabilities 15,967,341 19,000,407
------------ ------------
STOCKHOLDERS' EQUITY:
Preferred stock- 5,000,000 shares authorized
as of March 31, 2002 and December
31, 2001, respectively, no shares issued
Common stock- no par value; 20,000,000
shares authorized; 13,516,705 and
13,377,021 shares issued at March 31, 2002
and December 31, 2001, respectively 26,527,840 25,958,295
Accumulated other comprehensive loss (646,901) (652,940)
Retained earnings 24,679,960 22,353,053
------------ ------------
Total stockholders' equity 50,560,899 47,658,408
------------ ------------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 66,528,240 $ 66,658,815
============ ============
See Notes to Consolidated Financial Statements
2
MERIT MEDICAL SYSTEMS, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED MARCH 31, 2002 AND 2001 (Unaudited)
- -------------------------------------------------------------------------------
March 31, March 31,
2002 2001
----------- -----------
NET SALES $28,672,168 $26,788,373
COST OF SALES 17,520,388 17,568,999
----------- -----------
GROSS PROFIT 11,151,780 9,219,374
----------- -----------
OPERATING EXPENSES:
Selling, general and administrative 6,705,248 6,006,073
Research and development 963,289 1,130,072
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TOTAL OPERATING EXPENSES 7,668,537 7,136,145
----------- -----------
INCOME FROM OPERATIONS 3,483,243 2,083,229
OTHER EXPENSE - NET 60,362 436,067
----------- -----------
INCOME BEFORE INCOME TAXES 3,422,881 1,647,162
INCOME TAX EXPENSE 1,095,974 460,737
----------- -----------
NET INCOME $ 2,326,907 $ 1,186,425
=========== ===========
EARNINGS PER COMMON SHARE -
Basic $ .17 $ .10
=========== ===========
Diluted $ .16 $ .10
=========== ===========
AVERAGE COMMON SHARES -
Basic 13,415,144 12,180,083
=========== ===========
Diluted 14,511,719 12,334,506
=========== ===========
See Notes to Consolidated Financial Statements
3
MERIT MEDICAL SYSTEMS, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE THREE MONTHS ENDED MARCH 31, 2002 AND 2001 (Unaudited)
- -------------------------------------------------------------------------------
March 31, March 31,
2002 2001
----------- -----------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $ 2,326,907 $ 1,186,425
----------- -----------
Adjustments to reconcile net income to net
cash provided by in operating activities:
Depreciation and amortization 1,111,747 1,112,130
Bad debt expense 42,900 59,417
Gain on sales of
property and equipment (204)
Amortization of deferred credits (39,996) (34,710)
Deferred income taxes 32,327 32,255
Changes in operating assets and liabilities:
Trade receivables (385,151) (1,195,687)
Employee and related party receivables (240,323) 34,051
Irish Development Agency grant receivable 54,035 123,743
Inventories 1,671,999 2,149,837
Prepaid expenses and other assets (283,353) (237,557)
Deposits 9 2,414
Trade payables (326,982) (277,608)
Accrued expenses 1,566,174 1,642,902
Advances from employees 23,871 41,428
Income taxes payable 970,511 635,134
----------- -----------
Total adjustments 4,197,564 4,087,749
----------- -----------
Net cash provided by operating activities 6,524,471 5,274,174
----------- -----------
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures for:
Property and equipment (1,297,145) (743,856)
Intangible assets 37,890 (99,029)
Proceeds from sale of property and equipment 301
----------- -----------
Net cash used in investing activities (1,258,954) (842,885)
----------- -----------
See Notes to Consolidated Financial Statements
4
MERIT MEDICAL SYSTEMS, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS (Continued) FOR THE THREE MONTHS ENDED
MARCH 31, 2002 AND 2001 (Unaudited)
- ----------------------------------------------------------------------------------
March 31, December 31,
2002 2001
----------- -----------
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from issuance of common stock $ 569,545 $ 109,139
Principal payments on long-term debt (5,253,702) (4,440,829)
----------- -----------
Net cash used in financing activities (4,684,157) (4,331,690)
----------- -----------
EFFECT OF EXCHANGE RATES ON CASH 6,039 (42,891)
----------- -----------
NET INCREASE IN CASH 587,399 56,708
CASH AT BEGINNING OF PERIOD 341,690 412,384
----------- -----------
CASH AT END OF PERIOD $ 929,089 $ 469,092
=========== ===========
SUPPLEMENTAL DISCLOSURES OF CASH
FLOW INFORMATION:
Cash paid during the period for:
Interest (including capitalized interest of $17,282
and $16,771, respectively) $ 51,510 $ 70,792
=========== ===========
Income taxes $ 93,136 $ 118,360
=========== ===========
SUPPLEMENTAL DISCLOSURE OF NONCASH
INVESTING AND FINANCING ACTIVITIES:
During the three month periods ended March 31, 2001, the Company entered into a
note payable totaling $271,169 for manufacturing equipment and furniture and
fixtures.
See Notes to Consolidated Financial Statements
5
MERIT MEDICAL SYSTEMS, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)
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1. Basis of Presentation. In the opinion of management, the accompanying
consolidated financial statements contain all adjustments, consisting only of
normal recurring accruals, necessary for a fair presentation of the financial
position of the Company as of March 31, 2002 and December 31, 2001, and the
results of its operations and cash flows for the three months ended March 31,
2002 and 2001. The results of operations for the three months ended March 31,
2002 and 2001 are not necessarily indicative of the results for a full year
period.
2. Inventories. Inventories at March 31, 2002 and December 31, 2001 consisted of
the following:
March 31, December 31,
2002 2001
-------------- ---------------
Raw materials $ 7,170,837 $ 7,501,253
Work-in-process 4,381,572 3,001,250
Finished goods 11,333,132 13,716,474
Less reserve for obsolete inventory (3,733,924) (3,395,361)
-------------- ---------------
Total $ 19,151,617 $ 20,823,616
============== ===============
3. Income Taxes. The Company has not fully allocated income tax expense between
current and deferred for the quarters ended March 31, 2002 and 2001. The
effective tax rate for the three months ended March 31, 2002 and 2001 is below
the 35% federal statutory tax rate, as the result of research tax credits now
available and the Company's profitable operations in Ireland which are taxed at
a tax rate that is lower than the Company's U.S. overall effective rate.
4. Reporting Comprehensive Income. The Company determined that the only
transaction considered to be an additional component of comprehensive income is
the cumulative effect of foreign currency translation adjustments. As of March
31, 2002 and December 31, 2001, the cumulative effect of such transactions
reduced stockholders' equity by approximately $646,901 and $652,940,
respectively. Comprehensive income for the three months ended March 31, 2002 and
2001 is computed as follows:
Three Months Ended
March 31,
2002 2001
------------ -------------
Net Income $ 2,326,907 $ 1,186,425
Foreign currency translation 6,039 (42,891)
------------ -------------
Comprehensive income $ 2,332,946 $ 1,143,534
============ =============
6
MERIT MEDICAL SYSTEMS, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Continued)
- -------------------------------------------------------------------------------
5. Goodwill and Other Intangible Assets. The Company has adopted, effective
January 1, 2002, Statement of Financial Accounting Standards (SFAS) No. 142,
Goodwill and Other Intangible Assets. Under SFAS No. 142, the Company will no
longer amortize goodwill from past business acquisitions and will review
annually the impairment of goodwill, or more frequently if impairment indicators
arise. The Company has completed its initial testing of goodwill and has
determined that there is no impairment. The unamortized amount of goodwill at
December 31, 2001, was $4.8 million.
With the adoption of SFAS No. 142, the Company reassessed the useful lives and
residual values of all acquired intangible assets to make any necessary
amortization period adjustments. Based on that assessment, no adjustments were
made to the amortization period or residual values of other intangible assets.
The following table reconciles net income and earnings per share information for
the three months ended March 31, 2002 and 2001, for the non amortization
provision of goodwill for SFAS No. 142:
Three Months Ended
March 31, March 31 ,
2002 2001
-------------------------------------------------
Report net income $2,326,907 $1,186,425
Add back: goodwill amortization, net of tax 53,615
-------------------------------------------------
Adjusted net income $2,326,907 $1,240,040
=================================================
Basic earnings per share:
Reported earnings per common share $0.17 $0.10
Add back: goodwill amortization, net of tax -*
-------------------------------------------------
Adjusted earnings per common share $0.17 $0.10
=================================================
Diluted earnings per share:
Reported earnings per common share $0.16 $0.10
Add back: goodwill amortization, net of tax -*
-------------------------------------------------
Adjusted earnings per common share $0.16 $0.10
=================================================
*There was no impact on basic and diluted earnings per share for the $53,615
added back to net income for the three months ended March 31, 2001.
The following table reflects the components of intangible assets as of March 31,
2002:
Gross Carrying Accumulated
Amount Amortization Net
------------------------------------------
Amortized Intangible Assets:
Patents $2,594,325 $ (691,348) $ 1,902,977
Trademarks 348,124 (164,025) 184,099
Licenses 591,005 (324,919) 266,086
------------------------------------------
Total $3,533,454 $(1,180,292) $ 2,353,162
==========================================
Unamortized Intangible Assets:
Goodwill $5,477,356 $ (712,760) $ 4,764,596
=========================================
6. Stock Split. On March 28, 2002, the Company announced a five-for-four stock
split effective April 8, 2002. All earnings per share and share data have been
adjusted to reflect the split, because it was consummated prior to releasing the
March 31, 2002 form 10-Q.
7
MERIT MEDICAL SYSTEMS, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Continued)
- --------------------------------------------------------------------------------
Estimated amortization expense for the intangible assets for the current year
and five succeeding fiscal years is as follows:
Aggregate Amortization Expense:
- ---------------------------------------------
For year ended 12/31/2002 $235,596
Estimated Amortization Expense:
- ----------------------------------------------
For year ended 12/31/2003 $203,940
For year ended 12.31/2004 183,385
For year ended 12/31/2005 177,286
For year ended 12/31/2006 174,496
For year ended 12/31/2007 $172,283
ITEM 2:
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
- --------------------------------------------------------------------------------
Overview
Merit Medical Systems enjoyed its best quarter in history, experiencing record
revenues and earnings in the three months ended March 31, 2002. The Company's
sales increased over 7% for the first quarter 2002 compared to the first quarter
of 2001, across most product lines, particularly inflation devices and catheter
products. Continued positive momentum in manufacturing efficiency has resulted
in favorable labor and overhead utilization as compared to the first three
months of 2001.
Management has continued to reduce inventory with an additional reduction of
almost $1.7 million since December 31, 2001 and over $9 million during the last
two years. This reduction in inventory has resulted in lower inventory carrying
costs. The Company's cash flow from operations was a record $6.5 million for the
first three months of 2002, and the Company was able to reduce its long-term
debt by $5.3 million during the period. In just over 19 months the Company has
reduced its line of credit balance over $30 million, from $30.4 million at
August 24, 2000 to $0 as of March 31, 2002. This lower debt, combined with
falling interest rates, has resulted in a significant decrease in interest
expense.
Management is pleased to report that the fundamental financial performance of
the Company has improved over the last year in almost every area. Sales are up,
productivity has increased, gross margins have improved, and debt balances and
interest costs are down, resulting in much improved cash flows, net income, and
earnings per share.
On March 28, 2002 the Company announced that its board of directors had approved
a five-for-four forward stock split for all Stockholders of record on April 8,
2002. All applicable comparative financial information has been restated to
reflect this stock split.
8
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
- --------------------------------------------------------------------------------
Operations. The Company's sales and income increased to record levels for the
three months ended March 31, 2002 compared to the same period in 2001. The
Company also experienced record earnings of $2.3 million for the three months
ended March 31, 2002, compared to net income of $1.2 million for the same period
of 2001. The following table sets forth certain operational data as a percentage
of sales for the three months ended March 31, 2002 and 2001:
Three Months Ended
March 31,
2002 2001
--------------------------
Sales 100.0 % 100.0%
Gross profit 38.9 34.4
Selling, general and administrative 23.4 22.4
Research and development 3.4 4.2
Income from operations 12.1 7.8
Other expense .2 1.6
Net income 8.1 4.4
Sales. Sales for the first quarter of 2002 increased by 7.0%, or $1.9 million,
compared to the same period for 2001. This increase is due to sales volume
increases across most of the Company's product families and is compared to a
quarter which was at the time the highest ever, with some unusually high packer
and OEM orders early last year. The Company experienced increased sales of its
inflation devices (up 10.1%) and catheters (up 9.4%). To a lesser degree, this
increase was attributable to growth in sales of stand alone products (up 5.2%)
and kits (up 4.7%).
Gross Profit. Gross profit as a percentage of sales increased significantly in
the first quarter of 2002 to 38.9% as compared to 34.4% in the first quarter of
2001. The Company's margins are improving, due primarily to an increase in
efficiency and productivity gains by the operations group in the Utah
facilities. A lower head count in both direct labor and overhead areas of
production contributed to higher productivity. Continued improvements are still
possible at the Angleton plant which continues to have excess overhead and
capacity that negatively effect margins, but the negative variances are
beginning to shrink.
Operating Expenses. Operating expenses increased slightly as a percentage of
sales to 26.7% of sales in the first quarter of 2002 compared to 26.6% in the
first quarter of 2001. Selling, general and administrative costs as a percentage
of sales increased to 23.4%, in 2002, compared to 22.4% for the first quarter of
2001. The increase as a percentage of sales in the current period was due
primarily to an increase in expenses that exceeded, as a percentage basis, the
increase in revenues. These additional expenditures were related principally to
increased costs of expanding the direct sales force and their management both in
United States and international markets as well as some marketing expense
increases. Research and development expenses dropped by $166,783 and were 3.4%
of sales in the first quarter of 2002 compared to 4.2% of sales for the first
quarter of 2001. This decrease in expense was due primarily to the conversion of
research and development resources to manufacturing resources associated with
the new diagnostic wire product in Ireland.
Income. During the quarter ended March 31, 2002, the Company reported income
from operations of $3.5 million, an increase of 67% from income from operations
of $2.1 million for the comparable period in 2001. The increase in operating
income for the most recent quarter was attributable primarily to increased sales
and higher gross margins. Lower debt balances and interest rates helped decrease
interest expense. This combined for a net income of $2.3 million for the quarter
ended March 31, 2002 compared to a net income of $1.2 million for the same
quarter of 2001.
Liquidity and Capital Resources. At March 31, 2002, the Company's working
capital was $24.4 million, which represented a current ratio of 2.9 to 1. In
March 2000, in an effort to reduce bank fees, the Company decreased an available
secured bank line of credit to $22 million. At March 31, 2001, the outstanding
balance under the line of credit was $0 representing a reduction of over $30
million in about 19 months. Historically, the Company has incurred significant
9
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
OPERATIONS
- --------------------------------------------------------------------------------
expenses in connection with product development and introduction of new
products. Substantial capital has also been required to finance growth in
inventories and receivables. The Company's principal source of funding for these
and other expenses has been the sale of equity and cash generated from
operations, secured loans on equipment and bank lines of credit. The Company
believes that its present sources of liquidity and capital are adequate for its
current operations.
Critical Accounting Policies and Estimates. In December 2001, the SEC requested
that all registrants discuss their most critical accounting policies. The SEC
indicated that a "critical accounting policy" is one which is both important to
the representation of the Company's financial condition and results and requires
management's most difficult, subjective or complex judgments, often as a result
of the need to make estimates about the effect of matters that are inherently
uncertain. The Company bases estimates on past experience and on various other
assumptions that are believed to be reasonable under the circumstances, the
results of which form the basis for making judgments about carrying values of
assets and liabilities that are not readily apparent from other sources. Actual
results may differ from these estimates under different assumptions or
conditions. The following are the Company's most critical accounting policies:
Inventory Obsolescence Reserve: The Company writes down its inventory for
estimated obsolescence for unmarketable and slow moving products that may expire
prior to being sold. If market conditions become less favorable than those
projected by management, additional inventory write-downs may be required. The
Company's obsolescence reserve was $3.7 million on March 31, 2002.
Allowance for Doubtful Accounts: The Company maintains allowances for doubtful
accounts for estimated losses resulting from the inability of customers to make
required payments. The allowance is based upon historical experience and current
customer information. If the financial condition of the Company's customers were
to deteriorate, resulting in an impairment of their ability to make payments,
additional allowances may be required. The Company's bad debt reserve was
$451,751 at March 31, 2002, in line with its historical experience with
collection of receivables.
Forward-Looking Statements. This Report includes "Forward-Looking Statements"
within the meaning of Section 27A of the Securities Act of 1933, as amended and
Section 21E of the Securities Exchange of 1934, as amended. All statements other
than statements of historical fact are "Forward-Looking Statements" for purpose
of these provisions, including any projections of earnings, revenues or other
financial items, any statements of the plans and objectives of management for
future operations, any statements concerning proposed new products or services,
any statements regarding future economic conditions or performance, and any
statements of assumptions underlying any of the foregoing. All Forward-Looking
Statements included in this document are made as of the date hereof and are
based on information available to Merit as of such date. Merit assumes no
obligation to update any Forward-Looking Statement. In some cases,
Forward-Looking Statements can be identified by the use of terminology such as
"may," "will," "expects," "plans," "anticipates," "intends," or "believes,"
"estimates," "potential," or "continue," or the negative thereof or other
comparable terminology. Although the Company believes that the expectations
reflected in the Forward-Looking Statements contained herein are reasonable,
there can be no assurance that such expectations or any of the Forward-Looking
Statements will prove to be correct, and actual results could differ materially
from those projected or assumed in the Forward-Looking Statements. Future
financial condition and results of operations, as well as any Forward-Looking
Statements are subject to inherent risks and uncertainties, including market
acceptance of the Company's products, timely product introductions potential
product recalls, delays in obtaining regulatory approvals, cost increases,
fluctuations in and obsolescence of inventory, price and product competition,
availability of labor and materials, development of new products and techniques
that render the Company's products obsolete, foreign currency fluctuation,
changes in health care are markets related to health care reform initiatives and
other factors referred to in the Company's press releases and reports filed with
the Securities and Exchange Commission. All subsequent Forward-Looking
Statements attributable to the Company or a person acting on its behalf are
expressly qualified in their entirety by these cautionary statements.
10
ITEM 3:
QUALITATIVE AND QUANTITATIVE DISCLOSURES ABOUT MARKET RISK
The Company principally hedges the EURO currency. The Company enters into
forward foreign exchange contracts to protect the Company from the risk that the
eventual net dollar cash flows resulting from transactions with foreign
customers and suppliers may be adversely affected by changes in currency
exchange rates. Such contracts are not significant to the financial position or
results of operations to the Company. The Company does not invest in hedges for
speculative proposes.
PART II - OTHER INFORMATION
ITEM 6: Exhibits and Reports on Form 8-K
(a) Exhibits - None
(b) Reports on Form 8-K - The Company filed a report on Form 8-K dated
February 15, 2002 to report certain financial information
discussed in the Company's 2001 fourth quarter and year-end
conference call.
11
MERIT MEDICAL SYSTEMS, INC
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
MERIT MEDICAL SYSTEMS, INC.
REGISTRANT
Date: May 14, 2002 /s/: FRED P. LAMPROPOULOS
-----------------------------------------------------------------------
FRED P. LAMPROPOULOS
PRESIDENT AND CHIEF EXECUTIVE OFFICER
Date: May 14, 2002 /s/: KENT W. STANGER
-----------------------------------------------------------------------
KENT W. STANGER
SECRETARY AND CHIEF FINANCIAL OFFICER
12