Merit Medical Systems Inc (MMSI) 2025 Q1 法說會逐字稿

Welcome to the Merit Medical Systems first-quarter 2025 earnings conference call. (Operator Instructions) Please note that this conference call is being recorded and that the recording will be available on the company's website for replay purposes shortly.

歡迎參加 Merit Medical Systems 2025 年第一季財報電話會議。（操作員指示）請注意，本次電話會議正在錄音，錄音將很快在公司網站上提供，以供重播。

I would now like to turn the call over to Mr. Fred Lampropoulos, Merit Medical Systems' Founder, Chairman, and Chief Executive Officer. Please go ahead.

現在，我想將電話轉給 Merit Medical Systems 的創辦人、董事長兼執行長 Fred Lampropoulos 先生。請繼續。

Thank you, and welcome, everyone. I am joined on the call today by Raul Parra, our Chief Financial Officer and Treasurer; and Brian Lloyd, our Chief Legal Officer and Corporate Secretary.

謝謝大家，歡迎大家。今天與我一起參加電話會議的還有我們的財務長兼財務主管 Raul Parra 和我們的首席法律長兼公司秘書 Brian Lloyd。

Brian, would you mind taking us through the Safe Harbor Statements?

布萊恩，您介意帶我們了解安全港聲明嗎？

Thank you, Fred. This presentation contains forward-looking statements that receive Safe Harbor protection under federal securities laws. Although we believe these forward-looking statements are based upon reasonable assumptions, they are subject to risks and uncertainties.

謝謝你，弗雷德。本簡報包含受聯邦證券法安全港保護的前瞻性聲明。儘管我們相信這些前瞻性陳述是基於合理的假設，但它們仍受風險和不確定性的影響。

The realization of any of these risks or uncertainties, as well as extraordinary events or transactions impacting our company, could cause actual results to differ materially from the expectations and projections expressed or implied by our forward-looking statements.

任何這些風險或不確定性的實現，以及影響我們公司的異常事件或交易，都可能導致實際結果與我們的前瞻性陳述表達或暗示的預期和預測有重大差異。

In addition, any forward-looking statements represent our views only as of today, April 24, 2025, 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.

此外，任何前瞻性陳述僅代表我們截至 2025 年 4 月 24 日的觀點，不應被視為代表我們在任何其他日期的觀點。我們明確表示不承擔更新此類聲明的任何義務，除非適用法律要求。

Please refer to the sections entitled Cautionary Statement Regarding Forward-Looking Statements in today's press release and presentation for important information regarding such statements.

有關此類聲明的重要信息，請參閱今天的新聞稿和演示文稿中題為“關於前瞻性聲明的警告聲明”的部分。

For discussion of factors that could cause actual results to differ from these forward-looking statements, please also refer to our most recent filings with the SEC, which are available on our website.

有關可能導致實際結果與這些前瞻性陳述不同的因素的討論，請另參閱我們向美國證券交易委員會提交的最新文件，該文件可在我們的網站上查閱。

Our financial statements are prepared in accordance with the accounting principles, which are generally accepted in the United States. However, we believe certain non-GAAP 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.

我們的財務報表是根據美國普遍接受的會計原則編製的。然而，我們認為某些非公認會計準則財務指標可以為投資者提供有關我們持續經營業務的基本業務趨勢和業績的有用信息，並且有助於對此類經營業務進行同期比較。

This presentation also contains certain non-GAAP financial measures. A reconciliation of non-GAAP financial measures to the most directly comparable US GAAP measures is included in today's press release and presentation furnished to the SEC under Form 8-K. Please refer to the sections of our press release and presentation entitled, Non-GAAP Financial Measures.

本簡報也包含某些非公認會計準則財務指標。今天的新聞稿和根據 8-K 表格提交給美國證券交易委員會 (SEC) 的簡報中包含了非 GAAP 財務指標與最直接可比較的美國 GAAP 指標的對帳表。請參閱我們的新聞稿和簡報中題為「非公認會計準則財務指標」的部分。

For important information regarding non-GAAP financial measures discussed on this call. Readers should consider non-GAAP financial measures in addition to, not as a substitute for, financial reporting measures prepared in accordance with GAAP.

有關本次電話會議討論的非公認會計準則財務指標的重要資訊。讀者應將非 GAAP 財務指標視為根據 GAAP 編制的財務報告指標的補充，而不是替代品。

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 on the Investors page of our website.

請注意，這些計算結果可能無法與其他公司的類似指標進行比較。今天的新聞稿和我們的簡報均可在我們網站的投資者頁面上找到。

I will now turn the call back to Fred.

我現在將電話轉回給弗雷德。

Thank you, Brian. And let me start with a brief agenda of what we will cover during our prepared remarks. I will start with a summary of our first-quarter 2025 results. Then Raul will provide a more in-depth review of our quarterly financial results and our financial guidance for 2025, which we updated in today's press release. Then we will open the call for your questions.

謝謝你，布萊恩。首先，請容許我簡單介紹一下我們在準備好的發言中將要討論的內容。我將先總結我們 2025 年第一季的業績。然後，勞爾將對我們的季度財務業績和 2025 年財務指導進行更深入的回顧，我們在今天的新聞稿中對此進行了更新。然後我們將開始回答你們的提問。

Now, beginning with a review of our first quarter results, we reported total revenue of $355.4 million, up 9.8% year over year on a GAAP basis, and up 10.9% year over year on a constant currency basis. The constant currency revenue growth we delivered in the first quarter modestly exceeded the high end of the range of growth expectations that we outlined on our Q4 2024 earnings call.

現在，首先回顧我們的第一季業績，我們報告的總收入為 3.554 億美元，以 GAAP 計算同比增長 9.8%，按固定匯率計算同比增長 10.9%。我們在第一季實現的固定貨幣收入成長略微超過了我們在 2024 年第四季財報電話會議上概述的成長預期範圍的高端。

The better-than-expected constant currency revenue results were driven primarily by a 6% constant currency organic growth, roughly 100 basis points better than the 5% high end of the range we outlined in our first quarter guidance.

好於預期的恆定貨幣收入結果主要得益於 6% 的恆定貨幣有機增長，比我們在第一季度指引中概述的 5% 的高端範圍高出約 100 個基點。

With respect to our profitability performance in the first quarter, we delivered financial results that significantly exceeded our expectations. We delivered another quarter of significant year-over-year improvement in our non-GAAP operating margin, which increased nearly 230 basis points year over year to 19.3%, representing a first-quarter record for the company.

就第一季的獲利表現而言，我們取得的財務表現大大超出了我們的預期。我們的非公認會計準則營業利潤率在本季再次實現年比大幅提升，年成長近 230 個基點，達到 19.3%，創下公司第一季的最高紀錄。

We also delivered 15 % growth in our non-GAAP EPS, which exceeded the high end of our expectations as well. This performance was a direct result of our team's continued hard work and commitment to our strategic objectives. We are very proud of the strong execution of our team delivered in the first quarter of 2025.

我們的非公認會計準則每股收益也實現了 15% 的成長，這也超出了我們的預期上限。這一業績是我們團隊持續努力工作和致力於實現策略目標的直接結果。我們為團隊在 2025 年第一季的出色執行力感到非常自豪。

We believe our first-quarter results reflect the continued strong momentum in the business, and we are confident in our team's ability to deliver the total revenue guidance for 2025 we reaffirmed in today's press release. We have also provided updated non-GAAP EPS expectations for 2025, which Raul will review in detail later in the call.

我們相信，第一季的業績反映了業務持續強勁的發展勢頭，我們相信我們的團隊有能力實現我們在今天的新聞稿中重申的 2025 年總收入指引。我們也提供了 2025 年更新的非 GAAP EPS 預期，Raul 將在稍後的電話會議中詳細回顧。

In the interim, the key takeaway is that our updated non-GAAP EPS expectations reflect the current estimated impact of tariffs, trade policies, and related actions recently implemented by the United States and other countries. Beside these trade-related impacts, we have made no material changes to the operating financial assumptions for the balance of fiscal year 2025 versus what our non-GAAP EPS guidance range previously assumed.

在此期間，關鍵的一點是，我們更新的非公認會計準則每股收益預期反映了美國和其他國家最近實施的關稅、貿易政策和相關行動的當前估計影響。除了這些與貿易相關的影響之外，我們對 2025 財年餘額的經營財務假設與我們先前假設的非 GAAP EPS 指導範圍相比沒有做出重大改變。

Despite the continued challenges related to the dynamic and uncertain global macro environment, our team is executing well. We remain focused on delivering continued strong execution, solid constant currency growth, and strong free cash flow generation in 2025, as well as continued progress in our continued growth initiatives program and related financial targets for the three-year period ending December 31, 2026.

儘管全球宏觀環境不斷變化且不確定，挑戰依然存在，但我們的團隊表現良好。我們將繼續致力於在 2025 年實現持續強勁的執行力、穩健的固定匯率增長和強勁的自由現金流生成，以及在截至 2026 年 12 月 31 日的三年期間繼續推進我們的持續增長計劃和相關財務目標。

Now, with that said, let me turn the call over to Raul for an in-depth review of our quarterly financial results. and updated financial guidance for 2025. Raul.

現在，話雖如此，讓我將電話轉給勞爾，讓他深入審查我們的季度財務業績，並更新 2025 年的財務指導。勞爾。

Thank you, Fred. I will start with a detailed review of our revenue results in the first quarter, beginning with the sales performance of each of our primary reportable product categories. Note, unless otherwise stated, all growth rates are approximated and presented on both a year over year and constant currency basis.

謝謝你，弗雷德。我將首先詳細回顧我們第一季的收入結果，首先介紹我們每個主要報告產品類別的銷售表現。請注意，除非另有說明，所有成長率均為近似值，並以同比和固定匯率為基礎表示。

First quarter, total revenue growth was driven by 9% growth in our Cardiovascular segment and 64% growth in our Endoscopy segment. Cardiovascular segment sales exceeded the high end of the expectations we outlined on our fourth quarter call.

第一季度，總收入成長主要得益於心血管部門 9% 的成長和內視鏡部門 64% 的成長。心血管部門的銷售額超過了我們在第四季度電話會議上提出的最高預期。

Our total revenue results include approximately $9.2 million of revenue from our acquisitions of the lead management product portfolio from Cook Medical and approximately $6.6 million of revenue from our acquisition of the assets of EndoGastric Solutions.

我們的總收入包括從庫克醫療收購領先管理產品組合所獲得的約 920 萬美元收入，以及從收購 EndoGastric Solutions 資產所獲得的約 660 萬美元收入。

Excluding sales of acquired products, segment revenue growth on an organic constant currency basis, was 6.2% for a Cardiovascular segment, while organic growth in our Endoscopy segment was essentially flat year over year.

不包括收購產品的銷售額，以有機固定匯率計算，心血管部門的部門收入成長率為 6.2%，而內視鏡部門的有機成長與去年同期基本持平。

Turning to a review of our first quarter revenue results by product category. Cardiac intervention product sales increased 12% and represented the largest driver of Cardiovascular segment growth in the period.

按產品類別回顧我們第一季的營收結果。心臟介入產品銷售額成長了 12%，成為本期間心血管部門成長的最大推手。

Growth was driven primarily by contributions from acquisition of Cook Medical products. Excluding the contributions from the sales of acquired products, cardiac intervention product sales increased approximately 2% on an organic constant currency basis within the range of organic growth expectations we assumed for Q1.

成長主要得益於收購庫克醫療產品帶來的貢獻。不計收購產品銷售的貢獻，心臟介入產品銷售額以有機固定匯率計算成長約 2%，在我們對第一季有機成長預期範圍內。

Sales of our OEM products increased 21% in Q1, well ahead of the mid-single digit growth our guidance assumed. The stronger than expected OEM performance in Q1 was substantially driven by customer demand in the US, offset partially by sales to OEM customers outside the US, which continues to see demand trends impacted by the macro environment.

我們的 OEM 產品銷售額在第一季成長了 21%，遠高於我們預期的中等個位數成長。第一季 OEM 業績強於預期，主要得益於美國客戶的需求，但美國以外 OEM 客戶的銷售部分抵消了這一增長，因為美國以外 OEM 客戶的需求趨勢繼續受到宏觀環境的影響。

Sales of our peripheral intervention or PI products increased 6.8%. Growth in the PI product category was driven primarily by sales of our access, embolotherapy, and delivery system products which increased in the mid-teens year over year. Sales of our custom procedural solutions or CPS products decreased 0.3%, which was in line with our expectations.

我們的周邊介入或 PI 產品的銷售額成長了 6.8%。PI 產品類別的成長主要得益於我們的通路、栓塞治療和輸送系統產品的銷售，這些產品的銷售額比去年同期成長了十幾歲。我們的定製程式解決方案或 CPS 產品的銷售額下降了 0.3%，這符合我們的預期。

Turning to a brief summary of our sales performance on a geographic basis. Our first quarter sales in the US increased 14% on a constant currency basis and 9% on an organic constant currency basis, exceeding the high end of our expectations by 170 basis points. We were pleased to see continued strong demand from our US customers in the first quarter. International sales increased 6% year over year and increased 1.9% on an organic constant currency basis.

以下是我們按地域劃分的銷售業績的簡要總結。我們第一季在美國的銷售額以固定匯率計算成長了 14%，以有機固定匯率計算成長了 9%，超出了我們預期的高端 170 個基點。我們很高興看到第一季美國客戶的需求持續強勁。國際銷售額年增 6%，以有機固定匯率計算成長 1.9%。

Sales results in the APAC and EMEA regions came in at the high end of our expectations, while sales in the Rest of the World region modestly exceeded our expectations. With respect to China specifically, sales decreased 10% compared to a low single-digit growth rate assumed in our guidance. We continue to see quarter-to-quarter variability in growth trends related to volume-based procurement programs as we have previously cautioned.

亞太地區和歐洲、中東和非洲地區的銷售業績達到了我們預期的高位，而世界其他地區的銷售略微超出了我們的預期。具體到中國市場，銷售額下降了 10%，而我們預測的成長率僅為個位數。正如我們之前警告的那樣，我們繼續看到與基於數量的採購計劃相關的成長趨勢逐季度變化。

In the first quarter, however, VBP was essentially in line, and we would attribute the softer-than-expected revenue results to the broader macro environment. Turning to a review of our P&L performance. For the avoidance of doubt, unless otherwise noted, my commentary will focus on the company's non-GAAP results during the first quarter of 2025, and all growth rates are approximated and presented on a year over year basis.

然而，在第一季度，VBP 的業績基本上符合預期，我們將營收結果弱於預期歸因於更廣泛的宏觀環境。回顧一下我們的損益表現。為避免疑義，除非另有說明，我的評論將集中於公司 2025 年第一季的非 GAAP 業績，所有成長率均為近似值，並以同比計算。

We have included reconciliations from our GAAP reported results to the related non-GAAP items in our press release and the presentation available on our website. Gross profit increased approximately 15% in the first quarter.

我們在新聞稿和網站上的簡報中納入了 GAAP 報告結果與相關非 GAAP 項目的對帳。第一季毛利成長約15%。

Our gross margin was 53.4%, up 251 basis points. The increase in gross margin year over year was driven by favorable product and geographic revenue mix and improvements in pricing, freight and distribution costs. Operating expenses increased 10.5% year over year.

我們的毛利率為53.4%，上漲251個基點。毛利率年增率是由於有利的產品和地域收入組合以及定價、運費和分銷成本的改善。營業費用較去年同期成長10.5%。

The increase in operating expenses was driven by an 11% increase in SG&A expense and an 8% increase in R&D expense compared to the prior year period. Total operating income in the first quarter increased $13.5 million or 25% from the first quarter of 2024 to $68.4 million.

營業費用的增加是由於與去年同期相比，銷售、一般及行政費用增加了 11% 以及研發費用增加了 8%。第一季總營業收入較 2024 年第一季增加 1,350 萬美元，增幅 25%，達到 6,840 萬美元。

Our operating margin was 19.3% compared to 17% in the prior year period, an increase of 229 basis points year over year. First quarter other expense net was $1.7 million compared to expense of $0.1 million last year. The change in other expense net was driven by lower interest income associated with lower cash balances, offset partially by lower interest expense compared to the prior year period.

我們的營業利益率為 19.3%，而去年同期為 17%，較去年同期成長 229 個基點。第一季其他支出淨額為 170 萬美元，去年同期為 10 萬美元。其他淨費用的變動是由於現金餘額減少導致的利息收入減少，但與去年同期相比利息支出減少部分抵銷了這項變動。

First-quarter net income was $52.9 million or $0.86 per share compared to $44.1 million or $0.75 per share in the prior year period. We are pleased with our profitability performance in the first quarter, where we leveraged stronger-than-expected revenue results to drive significant expansion in operating margin and strong growth in non-GAAP diluted earnings per share, both of which exceeded the high end of our expectations.

第一季淨收入為 5,290 萬美元，即每股 0.86 美元，而去年同期淨收入為 4,410 萬美元，即每股 0.75 美元。我們對第一季的獲利表現感到滿意，我們利用強於預期的收入結果推動營業利潤率的大幅擴張和非公認會計準則每股攤薄收益的強勁增長，這兩項表現均超出了我們預期的高端。

Note, our first quarter non-GAAP EPS results included incremental dilution related to our convertible debt that represented approximately $0.02 to Q1 EPS as expected.

請注意，我們的第一季非 GAAP EPS 結果包括與我們的可轉換債務相關的增量稀釋，這相當於預期的第一季 EPS 約 0.02 美元。

Turning to a review of our balance sheet and financial condition. We generated $19.5 million of free cash flow in the first quarter of 2025, down 20% year over year. The year-over-year decrease in free cash flow generation was a result of increased capital expenditures compared to the first quarter of 2024, as expected and investments in working capital, offset partially by growth in net income and other noncash items.

回顧我們的資產負債表和財務狀況。我們在 2025 年第一季產生了 1,950 萬美元的自由現金流，年減 20%。自由現金流產生的同比下降是由於與 2024 年第一季相比資本支出增加（符合預期）以及營運資本投資，但淨收入和其他非現金項目的成長部分抵消了這一影響。

As of March 31, 2025, Merit had cash and cash equivalents of $395.5 million, total debt obligations of $747.5 million and outstanding letter of credit guarantees of $2.9 million with additional available borrowing capacity of approximately $697 million compared to cash and cash equivalents of $376.7 million, total debt obligations of $747.5 million and outstanding letter of credit guarantees of $2.9 million, which -- with additional available borrowing capacity of approximately $697 million as of December 31, 2024.

截至 2025 年 3 月 31 日，Merit 的現金和現金等價物為 3.955 億美元，總債務為 7.475 億美元，未償還信用證擔保為 290 萬美元，額外可用借款能力約為 6.97 億美元，而截至 2024 年 12 月 31 日，Merit為 76 億美元，Merit 76 億美元7.475 億美元，未償還信用證擔保為 290 萬美元，額外可用借款能力約為 6.97 億美元。

Our net leverage ratio as of March 31 was 1.8 times on an adjusted basis. Turning to a review of our fiscal year 2025 financial guidance, which we updated in today's press release. For reference, we have included a table in our earnings press release, which details each of our formal financial guidance ranges and how those ranges compared to our initial guidance ranges issued on our fourth quarter call in February.

截至 3 月 31 日，我們的淨槓桿率經調整後為 1.8 倍。回顧我們 2025 財年的財務指導，我們在今天的新聞稿中對其進行了更新。作為參考，我們在收益新聞稿中附上了一張表格，其中詳細列出了我們的每個正式財務指導範圍，以及這些範圍與我們在 2 月份第四季度電話會議上發布的初步指導範圍相比的情況。

Our 2025 guidance assumes the following: GAAP net revenue growth of 8% to 10% year over year, which we expect to result from net revenue growth of approximately 7% to 9% in our Cardiovascular segment and net revenue growth of approximately 34% to 37% in our Endoscopy segment and a headwind from changes in foreign currency exchange rates of approximately $4.9 million or approximately 36 basis points to growth year over year. Excluding the impact of changes in foreign currency exchange rates, we expect total net revenue growth on a constant currency basis in the range of 8.7% to 10.2% in 2025.

我們對 2025 年的指引假設如下：GAAP 淨收入年增 8% 至 10%，我們預期這將源自於心血管部門淨收入成長約 7% 至 9%，內視鏡部門淨收入成長約 34% 至 37%，以及外匯匯率變動所帶來的阻力約 490 萬美元或同比基數增長約 36 個基點。排除外匯匯率變動的影響，我們預期 2025 年總淨收入成長率（以固定匯率計算）將在 8.7% 至 10.2% 之間。

Among other factors to consider when evaluating our projected constant currency revenue growth range for 2025 are the following items: first, the midpoint of our total constant currency growth range now assumes 11% growth in the US and 7% growth outside the US.

在評估我們預期的 2025 年固定匯率收入成長範圍時，需要考慮的其他因素包括：首先，我們總固定匯率成長範圍的中點現在假設美國成長 11%，美國以外成長 7%。

The 7% constant currency growth we expect outside the US continues to assume low double-digit growth in the EMEA, high teens growth in Rest of World region and approximately 1% growth in the APAC region. The modest growth we expect in APAC sales is substantially related to China, where we project growth in unit sales on a year-over-year basis, but we expect total revenue to face continued headwinds related to volume-based procurement policies.

我們預計美國以外地區將以 7% 的固定匯率成長率成長，這繼續假設 EMEA 地區將實現低兩位數成長，世界其他地區將實現高十位數成長，而 APAC 地區將實現約 1% 的成長。我們預計亞太地區銷售額將出現溫和成長，這主要與中國市場有關，我們預計中國市場的單位銷售額將同比增長，但我們預計總收入將繼續面臨與批量採購政策相關的阻力。

Second, our total net revenue guidance for fiscal year 2025 also assumes inorganic revenue contributions from the acquisitions of assets from EndoGastric Solutions and Cook Medical, which closed on July 1, 2024, and November 1, 2024, respectively, in the range of $45 million to $46 million in the aggregate.

其次，我們對 2025 財年的總淨收入指引也假設，收購 EndoGastric Solutions 和 Cook Medical 的資產將帶來無機收入貢獻，這兩項收購分別於 2024 年 7 月 1 日和 2024 年 11 月 1 日完成，總額在 4,500 萬美元至 4,600 萬美元之間。

Excluding this inorganic revenue, our guidance reflects total net revenue growth on a constant currency organic basis in the range of approximately 5% to 7% year over year. Third, for the full year 2025 period, we continue to forecast US revenue from the sales of WRAPSODY CIE in the range of $7 million to $9 million. Our full year 2025 US.

除此無機收入外，我們的預期反映出以固定匯率計算的總淨收入成長率將達到約 5% 至 7%。第三，對於 2025 年全年，我們繼續預測 WRAPSODY CIE 在美國的銷售收入將在 700 萬至 900 萬美元之間。我們的 2025 年全年美國。

WRAPSODY CIE revenue range continues to assume a larger weighting of revenue in the second half of 2025 versus the first half and a larger weighting of revenue in the fourth quarter versus the third quarter. With respect to profitability guidance for 2025, we now expect non-GAAP diluted earnings per share in the range of $3.29 to $3.42 compared to our prior guidance range of $3.58 to $3.70.

WRAPSODY CIE 收入範圍繼續假設 2025 年下半年的收入相對於上半年的權重較大，第四季的收入相對於第三季的權重較大。關於 2025 年的獲利預測，我們現在預計非 GAAP 稀釋每股盈餘將在 3.29 美元至 3.42 美元之間，而我們先前的預測範圍為 3.58 美元至 3.70 美元。

The change in our non-GAAP EPS expectations for 2025 is primarily a result of the projected impact of tariffs, trade policies and related actions recently implemented by the US and other countries, which are expected to increase our cost of goods sold, among other consequences. By the way of reminder, our initial 2025 guidance range introduced in February assumed that the 2025 tariff structure will remain substantially unchanged during 2025.

我們對 2025 年非 GAAP 每股盈餘預期的變化主要是由於美國和其他國家最近實施的關稅、貿易政策和相關行動的預期影響，預計這些影響將增加我們的銷售成本以及其他後果。順便提醒一下，我們在二月推出的初始 2025 年指導範圍假設 2025 年關稅結構在 2025 年將基本保持不變。

While the tariff situation and potential retaliatory measures by other countries remains highly uncertain and dynamic, we elected to estimate the potential impact on our non-GAAP EPS results this year in the interest of transparency. To that end, our updated non-GAAP EPS expectations now reflect an incremental $26.3 million of tariff-related manufacturing costs in our cost of goods line item.

儘管關稅情勢和其他國家可能採取的報復措施仍然具有高度不確定性和動態性，但為了透明度起見，我們選擇估計今年非公認會計準則每股收益結果的潛在影響。為此，我們更新的非 GAAP EPS 預期現在反映了我們商品成本項目中與關稅相關的製造成本增加 2,630 萬美元。

This figure includes tariffs on countries from which we import raw materials and products as well as potential additional tariffs on certain exports from the US. Roughly 94% of the total expected increase in our 2025 cost of goods is related to our business in China, the majority of which is related to retaliatory tariffs on goods exported from the US into China.

這個數字包括對我們進口原材料和產品的國家徵收的關稅以及對美國某些出口產品徵收的潛在額外關稅。我們 2025 年商品成本預計總增幅中約有 94% 與我們在中國的業務有關，其中大部分與美國對中國出口商品徵收的報復性關稅有關。

The remaining 6% of the total expected increase in our 2025 cost of goods is coming from the 10% tariff rate on goods imported into the US from a number of countries around the world. Importantly, the $26.3 million figure is based on all available information as of April 24, 2025, and does not include any impact from new and/or additional tariffs or retaliatory actions or changes to currently announced tariffs, which could change the anticipated impact to our non-GAAP EPS in 2025.

我們2025年商品成本預計總增幅的剩餘6%來自對從世界多個國家進口到美國的商品徵收的10%的關稅。重要的是，2,630 萬美元的數字是基於截至 2025 年 4 月 24 日的所有可用資訊得出的，並不包括任何新的和/或額外的關稅或報復行動或對當前宣布的關稅的變化的影響，這些可能會改變對我們 2025 年非 GAAP EPS 的預期影響。

The ultimate impact from new and/or additional tariffs or retaliatory actions or changes to currently announced tariffs on our business will depend on the timing, amount, scope and nature of such tariffs, among other factors, most of which are currently unknown. Our team is working hard on potential mitigation strategies to offset the expected potential impact of these new tariffs.

新的和/或額外的關稅或報復行動或對目前宣布的關稅的變化對我們業務的最終影響將取決於此類關稅的時間、金額、範圍和性質等因素，其中大多數目前尚不清楚。我們的團隊正在努力研究潛在的緩解策略，以抵消這些新關稅預期帶來的潛在影響。

We believe we have a pathway to offsetting up to 45% of the expected annualized tariffs, although the timing of implementation means these projected benefits are unlikely to be realized in our cost of goods until 2026. We are encouraged by the prospects of leveraging many of our CGI initiatives, specifically in terms of reprioritizing planned efforts to help reduce the cost, improve productivity and optimize production and logistics.

我們相信，我們有辦法抵消高達 45% 的預期年化關稅，儘管實施時間意味著這些預計的收益不太可能在 2026 年之前在我們的商品成本中實現。我們對利用許多 CGI 計劃的前景感到鼓舞，特別是在重新調整計劃工作優先順序以幫助降低成本、提高生產力和優化生產和物流方面。

We believe we are well positioned to navigate the anticipated headwinds related to these new tariffs given our multiyear focus on margin and profitability-enhancing CGI initiatives. This is a rapidly changing situation, which we are monitoring carefully. Given the frequency of recent changes in our tariff policy, we do not intend to provide interim updates in response to each news item or related rumor.

我們相信，鑑於我們多年來一直專注於提高利潤率和盈利能力的 CGI 計劃，我們已做好準備應對與這些新關稅相關的預期阻力。形勢瞬息萬變，我們正在密切關注。鑑於我們的關稅政策最近變化頻繁，我們不打算針對每條新聞或相關謠言提供臨時更新。

Rather, we will provide updates as we deem appropriate on our quarterly earnings calls or in other public formats as we gain further visibility and clarity regarding the situation. Returning to a discussion of our updated 2025 financial guidance assumptions. For modeling purposes, our fiscal year 2025 financial guidance now assumes non-GAAP operating margins in the range of approximately 17.6% to 18% compared to 19.4% to 19.7% previously.

相反，隨著我們對情況有了進一步的了解和了解，我們將在季度收益電話會議或其他公開形式上提供我們認為合適的更新。回到我們更新的 2025 年財務指導假設的討論。出於建模目的，我們 2025 財年的財務指導現在假設非 GAAP 營業利潤率在約 17.6% 至 18% 之間，而之前為 19.4% 至 19.7%。

Note, the change in our 2025 non-GAAP operating margin expectations is directly attributable to the incremental $26.3 million of tariffs related to cost of goods. Non-GAAP interest and other expense net of approximately $4.8 million compared to non-GAAP income of $1.1 million last year, non-GAAP tax rate of approximately 21% and diluted shares outstanding of approximately 61 million compared to approximately 62 million previously.

請注意，我們對 2025 年非 GAAP 營業利潤率預期的變化直接歸因於與商品成本相關的 2,630 萬美元增量關稅。非公認會計準則利息和其他費用淨額約為 480 萬美元，而去年非公認會計準則收入為 110 萬美元，非公認會計準則稅率約為 21%，稀釋流通股數約為 6,100 萬股，而之前約為 6,200 萬股。

Note, our weighted average share count assumption now reflects incremental dilution of approximately 0.9 million shares related to our convertible debt facility compared to our prior guidance, which assumed approximately 1.8 million shares. We now estimate incremental share dilution related to our convertible debt facility represents an impact of approximately $0.05 to our non-GAAP EPS in 2025 compared to approximately $0.11 assumed in our prior guidance range.

請注意，我們的加權平均股數假設現在反映了與我們的可轉換債務工具相關的約 0.9 百萬股的增量稀釋，而我們先前的指導則假設約 1.8 百萬股。我們現在估計，與我們的可轉換債務工具相關的增量股份稀釋將對我們 2025 年的非 GAAP EPS 產生約 0.05 美元的影響，而我們先前指導範圍的假設約為 0.11 美元。

Finally, we continue to expect to generate free cash flow of at least $150 million in 2025, inclusive of the expectation that we invest approximately $90 million to $100 million in capital expenditures this year. The step-up in CapEx investment this year is directly related to construction of a new distribution center in South Jordan, Utah. We would also like to provide additional transparency related to our growth and profitability expectations for the second quarter of 2025.

最後，我們繼續預期 2025 年將產生至少 1.5 億美元的自由現金流，其中包括我們今年預計投資約 9,000 萬至 1 億美元的資本支出。今年資本支出的增加與猶他州南喬丹新配送中心的建設有直接關係。我們還希望提供有關 2025 年第二季成長和獲利預期的更多透明度。

Specifically, we expect our total revenue to increase in the range of approximately 8.6% to 11.1% on a GAAP basis and up approximately 8.7% to 11.2% on a constant currency basis. The midpoint of our second quarter constant currency sales growth expectations assumes approximately 13% growth in the US and 6% growth in international markets.

具體而言，我們預計我們的總收入將按 GAAP 計算將增長約 8.6% 至 11.1%，按固定匯率計算將增長約 8.7% 至 11.2%。我們第二季固定匯率銷售成長預期的中點假設美國成長約 13%，國際市場成長 6%。

Note, our second quarter constant currency sales growth expectations include inorganic revenue in the range of $17 million to $18 million. Excluding inorganic contributions, our second quarter total revenue is expected to increase in the range of approximately 4% to 6% on an organic constant currency basis.

請注意，我們對第二季固定匯率銷售成長的預期包括 1,700 萬美元至 1,800 萬美元範圍內的無機收入。不包括無機貢獻，我們第二季的總營收預計將以有機固定匯率計算成長約 4% 至 6%。

With respect to our profitability expectations for the second quarter of 2025, we expect non-GAAP operating margins in the range of approximately 17% to 18.75% compared to 20.1% last year and non-GAAP EPS in the range of $0.80 to $0.90 compared to $0.92 last year.

關於我們對 2025 年第二季度的盈利預期，我們預計非 GAAP 營業利潤率將在約 17% 至 18.75% 之間，而去年為 20.1%，非 GAAP 每股收益將在 0.80 美元至 0.90 美元之間，而去年為 0.92 美元。

I will now turn the call back to Fred for closing comments.

現在我將把電話轉回給弗雷德，請他發表最後評論。

Raul, well done. That's a lot of information. But before we open the call for questions, I just want to add that the US WRAPSODY CIE program is progressing well. We are pleased with the response following the presentation of 12-month AVF data from our WRAPSODY WAVE trial at the Society of Interventional Radiology on March 30.

勞爾，幹得好。這些資訊有很多。但在我們開始提問之前，我只想補充一點，美國 WRAPSODY CIE 計畫進展順利。我們對 3 月 30 日在介入放射學會上展示 WRAPSODY WAVE 試驗的 12 個月 AVF 數據後的反應感到非常滿意。

Adoption and utilization are trending positively, and we continue to forecast U.S. revenue from the sales of the WRAPSODY CIE in the range of $7 million to $9 million in 2025. Our team continues to execute on our reimbursement strategy, which is focused on securing add-on reimbursement payment for both the hospital and office-based sites of care.

採用和利用趨勢呈現正面趨勢，我們繼續預測 2025 年美國從 WRAPSODY CIE 的銷售中獲得的收入將在 700 萬至 900 萬美元之間。我們的團隊繼續執行我們的報銷策略，該策略專注於確保醫院和辦公室護理場所的附加報銷支付。

With respect to recent progress and developments on our NTAP submission specifically, on April 11, CMS released proposed fiscal year '26 payment rates for the hospital inpatient prospective payment system, which include updates on our WRAPSODY CIE NTAP submission. We are pleased to see CMS confirm that the WRAPSODY CIE meets the cost criterion and that CMS is proposing to approve the WRAPSODY CIE for new technology add-on payments in fiscal year 2026.

關於我們 NTAP 提交的最新進展和發展，具體而言，4 月 11 日，CMS 發布了 26 財年醫院住院預付費系統的支付率提案，其中包括我們 WRAPSODY CIE NTAP 提交的更新。我們很高興看到 CMS 確認 WRAPSODY CIE 符合成本標準，而 CMS 提議在 2026 財年批准 WRAPSODY CIE 用於新技術附加付款。

Importantly, CMS is also proposing that the maximum new technology add-on payment for a case involving the use of the Merit WRAPSODY CIE would be $3,770 for fiscal year 2026, which is, if finalized as proposed, would support our anticipated cost to the hospital inclusive of all the components and accessories of $5,800. We continue to anticipate receiving final decisions with respect to NTAP and TPT add-on reimbursement status in June 2025.

重要的是，CMS 還提議，對於涉及使用 Merit WRAPSODY CIE 的案例，2026 財年的最高新技術附加支付額為 3,770 美元，如果按照提議最終確定，這將支持我們預計的醫院成本，包括所有組件和配件 5,800 美元。我們將繼續預期在 2025 年 6 月收到有關 NTAP 和 TPT 附加報銷狀態的最終決定。

Now that wraps up our prepared remarks. Operator, we would like to now open up the line for questions.

我們的準備好的演講到此結束。接線員，我們現在想開放熱線來回答問題。

(Operator Instructions) Jason Bednar, Piper Sandler.

（操作員指示）Jason Bednar、Piper Sandler。

Hey. guys. Good afternoon. Congrats on another nice quarter here. Look, a lot of investor focus and questions on the tariff topic. I'll start there to unpack some of the moving parts. And thanks, Raul, for all the color and quantification in the prepared remarks. Can you give maybe a bit more color on maybe some of the mitigation efforts you have in mind?

嘿，大家好。午安.恭喜您又度過了一個愉快的季度。瞧，很多投資人關注並質疑關稅問題。我將從那裡開始解開一些活動部件。感謝勞爾 (Raul) 在準備好的發言中提供的所有細節和量化資訊。您能否更詳細地介紹一下您所考慮的一些緩解措施？

Are you able to talk about what some of those are? Have you already started down the path of those mitigation efforts? And then just so we can think about this appropriately on an annualized basis after mitigation, I hope I don't lose your on numbers. But is that $26 million closer to $40 million to $50 million on an annualized basis, but you expect to offset 45% of that through mitigation and that those efforts would be felt -- those mitigation efforts are felt at some point in '26, but probably starting not at the beginning of the year? Sorry, I'm just trying to figure out really how to baseline ourselves when we look at kind of a full-year fully mitigated basis.

您能談談其中的一些嗎？您是否已經開始採取這些緩解措施？然後，為了讓我們在緩解之後以年度化的方式適當地考慮這個問題，我希望我不會在數字上迷失你。但是，以年率計算，這 2600 萬美元是否更接近 4000 萬至 5000 萬美元，但您預計通過緩解措施可以抵消其中的 45%，並且這些努力將會顯現出來 - 這些緩解措施將在 26 年的某個時候顯現出來，但可能不會在年初就開始顯現？抱歉，我只是想弄清楚，當我們考慮全年完全緩解的基礎時，如何真正為自己設定基準。

Yeah. No, it's a lot to unpack there, Jason, so I'll try and hit on everything.

是的。不，傑森，有很多事情需要解決，所以我會盡力解決所有問題。

Yeah. Look, our mitigating efforts are really centered around some of the CGI initiatives that we had ongoing, product line efficiencies, moving items to lower cost areas, a lot of what we've already been doing. I think we're really lucky that we had CGI that was in place, similar to what happened with when COVID happened.

是的。你看，我們的緩解措施實際上集中在我們正在進行的一些 CGI 計劃、產品線效率、將產品轉移到成本較低的地區，很多都是我們已經在做的事情。我認為我們真的很幸運，我們有 CGI，類似於 COVID 發生時發生的情況。

I mean I think we just put our heads down. We kept doing what we knew we had to do from an execution standpoint. That's exactly how we're treating this tariff situation here. We've got a punch list of things that we already had on the board that we needed to do. And so we're just going to continue to do those items and just stay focused on that.

我的意思是，我認為我們只是低下頭。從執行的角度來看，我們一直在做我們知道必須做的事情。這正是我們處理此關稅情況的方式。我們已經在董事會上列出了需要完成的事項清單。因此，我們將繼續做這些事情，並集中精力於此。

A lot of variability, as you know, in the tariffs and to try and focus on that specifically would be a pretty daunting task. So again, we've got a punch list of CGI items and initiatives that we had on the board. We're going to continue to do those and focus on those. There's things we've already started to do that were quick wins that our operations group did initially. You can redirect shipments from a country of origin into the specific country avoiding some of the tariffs.

如你所知，關稅存在很大差異，試圖集中精力解決這個問題是一項非常艱鉅的任務。因此，我們再次向董事會提交了一份 CGI 項目和計劃的清單。我們將繼續做這些事情並專注於這些事情。我們已經開始做的一些事情是我們的營運團隊最初所做的，並且取得了快速的成果。您可以將貨物從原產國轉移到特定國家，以避免部分關稅。

So there's things like that or building up of inventory from our Mexican facility. You saw some of that buildup in the first quarter, a little bit in the -- you probably didn't notice it as much in the fourth quarter because we did decrease inventory. But there was things we were already working on in the background. And again, I won't get too much into it. I think the math that you did on your -- on the annualized amount, I mean, I can't argue against that, right?

所以就有這樣的事情，或是從我們的墨西哥工廠建立庫存。您在第一季看到了一些庫存增加，但在第四季度您可能沒有註意到那麼多，因為我們確實減少了庫存。但我們已經在幕後做一些事情了。再次強調，我不會對此進行過多的討論。我認為你對年化金額所做的計算，我的意思是，我無法反駁這一點，對嗎？

I mean it's the math. But again, those mitigating control or cost control items have already started. Some of them just take effort. And again, some of them were already on our punch list for CGI initiatives.

我的意思是這是數學。但同樣，那些緩解控製或成本控制專案已經開始了。有些只是需要付出努力。而且，其中一些已經在我們的 CGI 計劃清單上了。

All right. That's really helpful. Yeah. No, I appreciate that it's pretty messy right now and not just for Merit. So I totally get it.

好的。這真的很有幫助。是的。不，我知道現在的情況很混亂，而且不只是為了 Merit。我完全理解。

I want to come back and a follow-up here on the China market specifically. The demand situation there it seemed maybe a bit weaker than what was originally forecasted. It might be hard to tell. But from where you sit, Fred and Raul, do you think this was all macro related? Was there any demand impact tied to the trade tensions with the US?

我想回過頭來具體跟進一下中國市場的情況。那裡的需求情況似乎比最初預測的要弱一些。這可能很難說。但從你們的角度來看，弗雷德和勞爾，你們認為這一切都與宏觀有關嗎？與美國的貿易緊張局勢是否對需求產生了影響？

And then given where everything stands today, I guess, how are you internally thinking about the demand for Merit products in China over the balance of this year?

那麼考慮到目前的情況，我想，您內部是如何考慮今年全年中國對 Merit 產品的需求的？

Yeah. So volume-based purchasing, which is one of the ones that we kind of have to deal with from a quarter-to-quarter variability was essentially in line with our expectations. The softer-than-expected kind of revenue results were really more related just to the overall broader macro environment. Nothing to call out specifically, nothing that really would concern us. I would say that really -- I'd say they finished the quarter pretty strong, and I would add nothing to it.

是的。因此，基於數量的採購（我們必須處理的季度間變化之一）基本上符合我們的預期。收入結果低於預期實際上與整體宏觀環境更為相關。沒有什麼特別值得指出的，也沒有什麼真正讓我們擔心的。我想說的是，他們在本季的表現相當強勁，我不會再補充任何內容。

And we haven't changed the full year outlook for China. I think we continue to be excited about the market. Clearly, we're paying attention to what the tariff situation is, but we're not making any long-term decisions based on what's going on with these tariffs.

我們並未改變對中國全年的展望。我認為我們繼續對市場感到興奮。顯然，我們正在關注關稅情況，但我們不會根據這些關稅的情況做出任何長期決策。

And Jason, we are a global company with a long-term strategy. We've been through whether it be COVID or financial crisis and whatever the issues have come in the past. And we'll look at all the issues and measure them as they come along and continue on to what I think has brought us to this point, and you saw that result in the first quarter. So I mean it's strong in a lot of areas, and I think we're hitting the right things, but we're paying a lot of attention to this. But as you know, it changes -- I mean, our biggest concern was just overnight, what changes in terms of what we worked on versus what happens when we talk right now, and it's a moving target.

傑森，我們是一家擁有長期策略的全球性公司。無論是新冠疫情還是金融危機，以及過去出現的各種問題，我們都經歷過。我們將研究所有問題，並在問題出現時對其進行衡量，並繼續推進我認為已經讓我們達到這一點的進程，您在第一季就看到了這一結果。所以我的意思是它在很多領域都很強大，我認為我們正在做正確的事情，但我們對此非常關注。但正如你所知，情況發生了變化——我的意思是，我們最大的擔憂只是在一夜之間，我們所做的事情與我們現在談論的事情相比會發生什麼變化，這是一個不斷變化的目標。

And -- but the strategy is what's important.

而且——但策略才是最重要的。

Well said. Thanks, guys.

說得好。謝謝大家。

Larry Biegelsen, Wells Fargo.

富國銀行的拉里·比格爾森。

Hey, guys. This is Simran on for Larry. Thanks for taking the questions.

嘿，大家好。這是 Simran 為 Larry 上場。感謝您回答這些問題。

Maybe just to follow up on Jason's second question around China. What are some of the items that I guess are underlying the softer demand that you're seeing in China? And do you think that can get worse given sort of the escalating geopolitical tensions that you're seeing in the region? And how should we think about sort of the recovery of China throughout the year?

也許只是為了跟進傑森關於中國的第二個問題。我認為哪些因素是造成中國需求疲軟的原因？鑑於您所看到的該地區地緣政治緊張局勢不斷升級，您認為情況會變得更糟嗎？那我們該如何看待中國全年的復甦呢？

Yeah. Well, we don't get into kind of country-specific as far as how we guide and the monthly cadence or quarterly cadence. But just in general, OEM was a little bit soft. Again, we see variability in OEM from time to time. As you saw, OEM was really strong overall, like over 20% growth.

是的。嗯，就我們如何指導以及每月或每季的節奏而言，我們不會涉及特定國家的情況。但總體來說，OEM 有點軟。再次，我們時常會看到 OEM 的變化。如您所見，OEM 整體表現非常強勁，成長率超過 20%。

So there was a little bit of softness in China related to it. Nothing that, again, we would specifically call out. And again, I'll just highlight that we haven't changed our guidance for China for the full year.

因此，中國在這方面表現得有些軟弱。再次強調，我們沒有什麼好特別指出的。我再次強調，我們沒有改變對中國全年業績的預期。

Got it. That's helpful. And maybe just a follow-up on the tariff color. I appreciate all the color that you guys have given. Just to dig in on the impact in China, are you willing to disclose like what percentage of sales in China are manufactured in the U.S.

知道了。這很有幫助。也許只是對關稅顏色進行跟進。我很感謝你們所給予的所有色彩。為了深入了解對中國的影響，您是否願意透露中國銷售的產品中有多少比例是在美國製造的？

And maybe just more broadly speaking, which manufacturing plants service China and how have you guys shifted manufacturing in the interim to sort of help mitigate some of that impact?

或許更廣泛地說，哪些製造廠為中國提供服務，以及你們在此期間如何轉移製造業以幫助減輕部分影響？

Again, I think we provided a lot of information already. So I don't know that we're going to provide anything else other than to say of the $26.3 million that's impacting us this year related to the tariffs, roughly 94% of that is China, right? And the majority of that is inventory that we're importing into China, right? So again, I think that really gives you kind of what you need. And yes, that's all we have.

再次強調，我認為我們已經提供了很多資訊。所以我不知道我們還會提供什麼，除了說今年與關稅相關的 2630 萬美元，其中大約 94% 來自中國，對嗎？其中大部分是我們進口到中國的庫存，對嗎？所以，我再說一遍，我認為這確實能滿足您的需求。是的，這就是我們所擁有的一切。

Okay. Great. Thanks.

好的。偉大的。謝謝。

Yeah. Thank you.

是的。謝謝。

Steve Lichtman, Oppenheimer.

奧本海默的史蒂夫·利希特曼。

Thanks. Hi, guys. I guess first question just on the quarter. Last couple of quarters, including this one, gross margin coming in well ahead. So obviously, great to see heading into this tariff period. Can you talk a little bit more, Raul, about sort of what you're seeing as the underlying driver there?

謝謝。嗨，大家好。我想第一個問題只是關於本季的。包括本季在內的最近幾個季度，毛利率都大幅上升。顯然，很高興看到進入這個關稅期。勞爾，您能否再多談談您認為背後的驅動因素是什麼？

Steve, I think I owe you lunch for that question.

史蒂夫，我想我欠你一頓午餐，因為你問了這個問題。

Dinner.

晚餐。

Yeah. No, look, thank you for the question. Honestly, we're super excited about the performance of the company. And I'll call it kind of pre-tariffs, right? I mean the business is doing really well.

是的。不，看，謝謝你的提問。說實話，我們對公司的表現感到非常興奮。我會稱之為關稅前，對嗎？我的意思是生意確實做得很好。

As you saw, Q1 was an outstanding quarter. I thought it was a great start to the year and set us up well for the rest of the year. The underlying business is doing great. Gross margin, as you mentioned, came in very strong. And it's really a combination of everything we're doing, whether it's our sales force, focusing on the acquisitions that we have that we've integrated, the product mix, the focus on higher gross margin products and pricing.

如您所見，第一季是一個出色的季度。我認為這是今年的一個好開端，為我們今年餘下的時間打下了良好的基礎。基礎業務表現良好。正如您所說，毛利率非常高。這實際上是我們所做的一切的結合，無論是我們的銷售隊伍，還是專注於我們整合的收購、產品組合，還是專注於更高毛利率的產品和定價。

And then our operations group, trying to fight through all the different battles that they have to fight through from an operational kind of efficiency standpoint and product line movement. So all parts of things that we've done and our punch list of CGI items that we have.

然後，我們的營運團隊試圖從營運效率和產品線運動的角度來應對他們必須應對的所有不同戰鬥。這就是我們所做的所有事情以及我們擁有的 CGI 項目清單。

So again, it's a group effort. It requires everybody to kind of be marching to the same target. And we've been doing that now for quite a bit of time, and it's really nice to see that gross margin kind of be where it's at.

所以，這又是一個集體努力的結果。它要求每個人都朝著同一個目標前進。我們已經這樣做了相當長一段時間，很高興看到毛利率達到目前的水平。

We're super excited about how it came out. As you guys know, we were expecting a lower gross margin for the quarter. And the way it came in, I thought was a really good start to the year.

我們對它的問世感到非常興奮。如你們所知，我們預計本季的毛利率會較低。我認為，從這個角度來看，這是今年的一個非常好的開始。

I wanted to ask on the cadence of tariff impact because this goes to the annualization. I've been doing the numbers, apologies if I got this wrong, but it seems like the second quarter impact is not too far off from 3Q and 4Q. Am I right on that? And if that's the case, then that annualization number would actually be lower than sort of --

我想問一下關稅影響的節奏，因為這涉及到年度化。我一直在計算數字，如果我錯了請見諒，但看起來第二季度的影響與第三季和第四季的影響相去不遠。我說得對嗎？如果是這樣的話，那麼年化數字實際上會低於--

Yeah. I'll give you the numbers because I think that's a fair question to kind of -- I think you should kind of think about it, obviously, in the way our inventory turns, right? And obviously, you're not going to know that, but our inventory turns over five months. And so that $26 million, as you can expect, has been turned through those inventories. As far as the 2025 total impact, roughly 83% of it would be in the second ha

是的。我會給你這些數字，因為我認為這是一個公平的問題——我認為你應該考慮一下，顯然，我們的庫存週轉方式，對吧？顯然，您不會知道這一點，但我們的庫存週轉率是五個月。因此，正如您所預料的，這 2600 萬美元已經透過這些庫存轉入。就 2025 年的整體影響而言，大約 83% 的衝擊將發生在第二季。

Okay, that helps. Thanks.

好的，這有幫助。謝謝。

Robbie Marcus, JPMorgan.

摩根大通的羅比·馬庫斯。

Great. Thanks for taking the questions. Two for me. First, one another tariff question, one not tariff related. Tariff related, you said earlier in the call, you've left your underlying operational expense assumptions alone in the rest of the guide. And I wonder how much opportunity is there to pull back on planned spending or not invest in certain projects to help minimize the EPS impact this year? And then I have a follow-up.

偉大的。感謝您回答這些問題。對我來說是兩個。首先，另一個關稅問題，與關稅無關。與關稅相關的是，您在電話會議中早些時候說過，在指南的其餘部分中，您沒有提及基本的營運費用假設。我想知道，有多少機會可以減少計劃支出或不投資某些項目，以幫助最大限度地減少今年每股收益的影響？然後我有一個後續問題。

Yeah. I think that's a great question, Robbie. Look, I'll just say that we were off to a really good start in Q1, right? We performed really well. We left our guidance unchanged, that underlying guidance as of now.

是的。我認為這是一個很好的問題，羅比。你看，我只想說我們在第一季的開局非常好，對吧？我們表現得非常好。我們維持目前的指導方針不變。

Again, I think we've got a lot of things that we're throwing at kind of the tariff situation. Obviously, we had a really good game plan that started essentially, I'd say, 1.25 years ago, but it's really a combination of the last 6.5 years with Foundations for Growth and Continued Growth Initiatives. So there's things we can do. I don't want to get into kind of the whole detailing out of what we're going to do or not do. But I can tell you that we do have a game plan of -- and CGI is a big component of that.

再說一次，我認為我們在關稅問題上面臨很多困難。顯然，我們有一個非常好的計劃，基本上是在 1.25 年前開始的，但它實際上是過去 6.5 年「成長基礎」和「持續成長計畫」的結合。所以我們可以做一些事情。我不想詳細談論我們要做什麼或不做什麼。但我可以告訴你，我們確實有一個遊戲計劃——而 CGI 是其中的一個重要組成部分。

And we're happy that we had that program in place. And again, we're just going to keep our heads down and just keep marching.

我們很高興已經實施了該計劃。再說一次，我們只會埋頭苦幹，繼續前進。

Raul, I think you said something earlier on, but we had a plan already in place and much like Foundations for Growth, Robbie, we kind of hit the road running. We were already running when this started with a plan that when you have situations like this, it fits perfectly because we get a little bit of a jump on it. And all the things that you need to do, we're working on in one way or the other as we speak.

勞爾，我想你之前說過，但我們已經制定了計劃，就像「成長基礎」羅比一樣，我們開始全力以赴。當這一切開始時，我們就已經在製定計劃了，當你遇到這樣的情況時，這個計劃非常合適，因為我們可以提前做好準備。你們需要做的所有事情，我們都在以某種方式努力完成。

Great. And maybe as a follow-up, you reiterated your free cash flow guidance of at least $150 million in 2025, which to me is kind of impressive given the EPS headwind from tariffs. Maybe speak to that, how you're able to do that, where it's coming from and how you're able to offset the tariff impact on free cash flow? Thanks.

偉大的。也許作為後續，您重申了 2025 年至少 1.5 億美元的自由現金流指導，考慮到關稅帶來的每股收益阻力，這對我來說令人印象深刻。也許可以談談這一點，您如何做到這一點，它來自哪裡以及如何抵消關稅對自由現金流的影響？謝謝。

Yeah. Look, I mean, I thought we got off to a good start in Q1, right? $20 million probably doesn't sound impressive to you guys. To us, in the first quarter when we're paying out bonuses, we're rebuilding inventory from the shutdown in the fourth quarter.

是的。看，我的意思是，我認為我們在第一季有一個好的開始，對吧？2000萬美元對你們來說可能不算什麼。對我們來說，在第一季度發放獎金的同時，我們正在重建第四季度停工造成的庫存。

Sales meetings.

銷售會議。

Yeah, sales meetings. There's a lot of things that hit us. And so I thought, again, we were pretty happy with that number. And I'm staring at the eyes of our COO here right now, and he's looking at the inventory numbers as we speak right now and finding ways to offset some of the headwinds.

是的，銷售會議。有很多事情對我們造成影響。因此我再次認為，我們對這個數字非常滿意。我現在正盯著我們首席營運長的眼睛，他正在查看庫存數字，並想辦法抵消一些不利因素。

Some of the things that we're going to do, Robbie, there's things that we can do from a manufacturing standpoint where China has a certain amount of inventory that we can kind of burn through, so we don't have to build certain amounts of inventory.

羅比，我們要做的有些事情是從製造的角度出發的，因為中國有一定數量的庫存，我們可以消耗掉這些庫存，所以我們不必建立一定數量的庫存。

There's all sorts of little things that we can do to help mitigate some of the working capital issues that the tariffs bring on, which we think are, again, completely manageable. That's why we held the $150 million in free cash flow. And then there's other things that we're just going to be trying to look at from an offsetting standpoint.

我們可以做各種各樣的小事來幫助緩解關稅帶來的一些營運資金問題，我們認為這些問題是完全可以控制的。這就是我們持有1.5億美元自由現金流的原因。然後，我們將嘗試從抵消的角度來看待其他事情。

Great. Thanks a lot.

偉大的。多謝。

Yeah. Thank you. Good to have you on the calls.

是的。謝謝。很高興您接聽電話。

Craig Bijou, Bank of America Securities.

克雷格‧比約 (Craig Bijou)，美國銀行證券公司。

Good afternoon, guys. Thanks for taking the questions. I wanted to start with a follow-up on China. And I guess the question is, given the underperformance in Q1, but as you said, Raul, the guidance for the year hasn't changed.

大家下午好。感謝您回答這些問題。我想先談談中國的情況。我想問題是，鑑於第一季的表現不佳，但正如你所說，勞爾，今年的指導並沒有改變。

I guess maybe just what's your confidence that it was either something that specifically happened in Q1 and you can recover some of those sales in the subsequent quarters? Or is it a market issue that may get better throughout the year? Just maybe a little bit more color or understanding on what happened there.

我想也許您有信心這是否是第一季發生的事情，並且您可以在隨後的幾個季度恢復部分銷售額？或者這是一個全年可能會好轉的市場問題？也許只是對那裡發生的事情有更多的了解或理解。

Yeah. No, again, I'll just kind of repeat what I said, right? I mean the underlying fundamentals of the demand in China were great, right? I mean they were as expected, I guess, I should say. The only item that stood out was the OEM dynamic.

是的。不，我再說一遍，我只是重複我說過的話，對嗎？我的意思是中國需求的基本面很好，對嗎？我的意思是，我想，我應該這麼說，他們正如預期的那樣。唯一引人注目的是 OEM 動態。

And again, we see variability in OEM from time to time, that's country, region specific. It's nothing new to us. We've been in the OEM business for the greater part of Merit's history. And so we're used to it. So for us, it's really nothing to see.

而且，我們時常會看到 OEM 的變化，這是特定於國家和地區的。這對我們來說並不是什麼新鮮事。在 Merit 的大部分歷史中，我們一直從事 OEM 業務。所以我們已經習慣了。所以對我們來說，這實在沒什麼好看的。

And probably the most important thing is we haven't changed our full year outlook for China.

或許最重要的是我們沒有改變對中國全年的展望。

Well. Raul, if you look at last year and look at the OEM business, minus 5%, plus 5%, plus 10%, plus 20%. And we can go through history, and you'll see the same type. It's all about timing, not about demand.

出色地。勞爾，如果你看看去年的 OEM 業務，減 5%，加 5%，加 10%，加 20%。回顧歷史，我們會看到同樣的情況。一切都與時機有關，與需求無關。

Got it. That's helpful. And actually, a pretty good segue into my second question, which is on the OEM business and the strength that I think you called out in the US particularly. But 20-plus percent growth the last two quarters.

知道了。這很有幫助。實際上，這很好地引出了我的第二個問題，即關於 OEM 業務以及您特別提到的美國的優勢。但最近兩個季度的成長率超過了20%。

I guess, what's driving that growth? And maybe more specifically in that question is, have you seen some inventory pull forward or build out from some customers ahead of some of the tariffs? Is that something that may be driving some of that underlying growth?

我想，是什麼推動了這種成長？也許這個問題更具體地是，您是否看到一些庫存在某些關稅實施之前從某些客戶提前或增加？這是否會推動一些潛在的成長？

I don't think so. The reason I say that we did see some of that maybe in certain areas. But on the OEM side, remember, it's going to get into inventory. By the time we send something OEM, it's going to have to go through their system and probably going to get hit with it anyway. So as a practical matter, it's new accounts -- it's accounts, again, building on what we've been doing for years and years, and that's the quality, the reliability.

我不這麼認為。我之所以這麼說，是因為我們確實在某些領域看到了一些這樣的情況。但在 OEM 方面，請記住，它將進入庫存。當我們發送 OEM 東西時，它必須經過他們的系統，而且很可能會受到影響。因此，從實際角度來說，這是新的帳戶——這些帳戶再次建立在我們多年來所做的事情的基礎上，這就是品質和可靠性。

That's always what drives Merit's business and OEM and the breadth of market. It's the same story and fair pricing. It's a good business. But it's -- again, we don't want to make small of this, but it's what we've been doing for a long time. And you'll see these variations from time to time.

這始終是推動 Merit 業務、OEM 和市場廣度發展的動力。這是一個同樣的故事，而且定價也合理。這是一門好生意。但這是——再說一次，我們不想小看這一點，但這是我們長期以來一直在做的事情。您會不時看到這些變化。

But I don't think that there's anybody out there building inventory now so they can pay a tariff on it. I don't see that at all. In fact, just the opposite. I mean being responsible in their purchasing.

但我不認為現在有人在建立庫存，以便支付關稅。我根本沒看到這一點。事實上，恰恰相反。我的意思是對他們的採購負責。

Yeah. And remember, I mean, we signed that Arcadia deal with Medtronic last year, and we're seeing some of that demand, too. So again, OEM has always been a high single-digit grower for us. That's the expectation this year. Nothing's changed.

是的。請記住，我們去年與美敦力簽署了 Arcadia 協議，我們也看到了一些需求。所以，OEM 對我們來說一直是個高個位數成長的領域。這是今年的期望。一切都沒有改變。

Got it. Thanks, guys.

知道了。謝謝大家。

David Rescott, Baird.

大衛雷斯科特，貝爾德。

Oh great, thanks. Can I be heard?

噢，太好了，謝謝。我能被聽見嗎？

Yeah, we've got you, David.

是的，我們抓住你了，大衛。

Another one on the tariff kind of commentary here. You called out that 45% number as the potential estimate that you could be able to offset with some shifting around or some investments that you have. A two-part question. One, I guess, is the 45% related to whatever that $23.6 million annualized number looks like? Is the majority of that again coming from China or is there some pieces in in Mexico and elsewhere?

這裡還有另一篇關於關稅的評論。您所說的 45% 是一個潛在估計值，您可以透過一些調整或投資來抵消這種影響。這個問題由兩個部分組成。首先，我猜 45% 是否與 2,360 萬美元的年化數字有關？其中大部分是否再次來自中國，還是有一些來自墨西哥和其他地方？

And when you think about like the internal decisions around how you make those investments, I mean, you could come in tomorrow and the expected tariffs could be half of what they are today. So how do you internally make the decisions around what the go-forward timing is on when those investments are made to attempt to offset some of these tariff headwinds?

當你考慮如何進行這些投資的內部決策時，我的意思是，你明天進來時預期的關稅可能是今天的一半。那麼，當進行這些投資以試圖抵消部分關稅阻力時，您如何在內部做出關於未來時機的決定？

I think that's where we're really lucky, David, to be honest with you. Again, we had a punch list of items that we were going to do as part of Continued Growth Initiatives. And so for us, it's just keep our heads down, let's not react to all the tweets and news headlines that are happening on an hourly basis. So let's -- we've got our punch list. Let's just stay focused on that.

說實話，大衛，我認為這就是我們真正幸運的地方。再次，我們列出了作為持續成長計劃的一部分我們要完成的項目清單。所以對於我們來說，我們只需要保持低調，不要對每小時發生的所有推文和新聞頭條做出反應。那麼，我們——我們有了待辦事項清單。讓我們只關注這一點。

Let's make sure we're focused on the performance of the business, which I hope you guys are appreciating what we did in Q1. But we've got things that we were already working on. We'll continue to work on those. We're not making any long-term decisions based on this -- on these tariffs. I mean I think it's just way too volatile to try and change the direction of the company or try and do something that's going to be essentially wrong in 24 hours if something changes.

讓我們確保我們專注於業務表現，我希望你們欣賞我們在第一季所做的事情。但我們已經開始著手處理一些事情了。我們將繼續致力於此。我們不會根據這些關稅做出任何長期決定。我的意思是，我認為試圖改變公司的方向或嘗試做一些如果在 24 小時內發生變化就會本質上錯誤的事情，這太不穩定了。

So Fred, do you have anything?

那麼弗雷德，你有什麼嗎？

Yeah. Well, listen, I think we're confident in our plan. We've been through this before. Everybody -- remember, our compensation is aligned, everything is aligned, and they're not new to us. I mean we are battle-worn troops.

是的。好吧，聽著，我認為我們對我們的計劃很有信心。我們以前也經歷過這樣的事。每個人——請記住，我們的薪酬是一致的，一切都是一致的，這對我們來說並不新鮮。我的意思是我們是久經沙場的部隊。

I mean I can't speak to others. I can just tell you this is a fighting group that goes and gets refreshed and comes back and continues the mission. So that's where we are. We're confident in our targets. We're confident in the long-term plan.

我的意思是我無法和別人說話。我只能告訴你，這是一支戰鬥隊伍，他們出去休整，然後回來繼續執行任務。這就是我們現在的狀況。我們對我們的目標充滿信心。我們對長期計劃充滿信心。

And we look at the day-to-day, does this change anything? Should we consider this? We meet almost every day to talk about this, not almost every day. Is there anything here that we need to think about or adjust and adapt? And we go through those things every day.

我們看看每天發生的事情，這會改變什麼嗎？我們應該考慮這一點嗎？我們幾乎每天都會開會討論這個問題，但不是幾乎每天都會。這裡有什麼是我們需要思考或調整和適應的嗎？我們每天都會經歷這些事情。

But it's the long-term plan that really essentially covers all this stuff anyway that you would do in your planning. So it's -- I hate to say this, but I know I don't, actually. It's business as usual. It's what we're used to. It's what you've been seeing for a number of years now.

但無論如何，長期計劃實際上涵蓋了您在計劃中要做的所有這些事情。所以——我不想這麼說，但我知道事實上我不會這麼說。一切如常。這是我們習以為常的。這就是您多年來一直看到的情況。

And it's why we're confident when we throw out a number, we mean it. And I think hopefully, we built enough confidence amongst the investment community and our analysts that if we say it, that's what we're going to do.

這就是為什麼當我們說出一個數字時，我們充滿信心，我們是認真的。我希望，我們已經在投資界和分析師中建立了足夠的信心，只要我們說了，我們就會做到。

Okay. Great. Maybe on gross margins, again, I know it's already been called out, but the gross margins this quarter were obviously significantly ahead of what our Street expectations were. I think maybe this is the second quarter where you've had really a pretty significant benefit. Really, I think you said you threw the kitchen sink at it last quarter, and that was what drove the upside.

好的。偉大的。也許就毛利率而言，我知道這已經被提及了，但本季的毛利率顯然大大高於華爾街的預期。我想這也許是您獲得真正顯著效益的第二季。真的，我認為你說過你在上個季度竭盡全力，而這正是推動其上漲的因素。

So curious for the second part of this year, how you're thinking about that underlying first quarter performance translating to what the otherwise unaffected gross margins by tariffs could have been, meaning that is what you saw or the trends you saw in Q3 and Q1 of just this pretty significant gross margin upside kind of where the business was tracking to ahead of this tariff headwind? Thank you.

所以我很好奇今年下半年的情況，您認為第一季的基本業績與未受關稅影響的毛利率有何關係？這意味著您在第三季和第一季看到的趨勢是，毛利率有相當大的上升，而企業是在關稅逆風面前走上這條路的？謝謝。

Yeah. Look, I'm going to keep talking about CGI. So hopefully, you guys are getting -- no, they can't hear that. We're focused on CGI and the initiatives that we drew up last year. And it's just a compounding effect of what we're doing.

是的。瞧，我將繼續談論 CGI。所以希望你們能夠明白——不，他們聽不到。我們專注於 CGI 和我們去年制定的計劃。這只是我們所做事情的複合效應。

We're working hard at it. And I think we keep throwing the kitchen sink at the gross margin. That's our approach. I mean if you want to know what we're doing, we're doing everything we can. We just need to find more things to throw in the kitchen sink, I guess.

我們正在努力。我認為我們一直在竭盡全力降低毛利率。這就是我們的方法。我的意思是，如果你想知道我們在做什麼，我們正在盡我們所能。我想，我們只是需要找到更多東西丟進廚房水槽。

But we're doing everything we can. And it's working. I think it's very motivating to us because I don't think people understand how hard it is to move that gross margin. And we've been fighting that fight for -- as long as I've been here, I've been here 15 years. In the last seven years, it's been really fun to see that gross margin start to get where we think it should be.

但我們正在盡一切努力。並且它正在發揮作用。我認為這對我們來說非常有激勵作用，因為我認為人們不了解提高毛利率有多困難。自從我來到這裡，我們就一直在為這個目標而奮鬥——我已經在這裡15年了。在過去的七年裡，我們很高興地看到毛利率開始達到我們認為應該達到的水平。

And there's a lot more to be had there.

那裡還有很多東西可以得到。

Michael Petusky, Barrington Research.

巴林頓研究公司的麥可‧佩圖斯基（Michael Petusky）

Hey. Good evening, guys. So I guess I would have expected -- and I'm not going to pretend, I know more about China ordering patterns than I do, but I guess I would have expected some stocking-type orders either late in the quarter or possibly right after the quarter ended in very early April. Did you guys see any evidence of that kind of ordering out of any of the customers in China?

嘿。大家晚上好。所以我想我會預料到——而且我不會假裝，我比我更了解中國的訂購模式，但我想我會預料到在本季度末或可能在四月初本季度結束後會有一些庫存類型的訂單。你們有沒有看到任何證據顯示中國客戶有此類訂購行為？

Well, I think Fred hinted at it a little bit right in one of his comments saying that we did see a little bit of that in certain markets. And I think that was pretty standard, I would say, for most. I mean we did something similar. We built up inventory in Mexico in anticipation and brought it over to the U.S. So yes, I wouldn't say that it was anything material that I would call out or that we were concerned that we all of a sudden fall off a cliff.

嗯，我認為弗雷德在他的一條評論中暗示了這一點，他說我們確實在某些市場看到了一點這種情況。我想說，對大多數人來說，這是相當標準的。我的意思是我們也做了類似的事情。我們預先在墨西哥建立了庫存，並將其運往美國。所以，是的，我不會說這是什麼值得我大聲疾呼的重大事件，也不會說我們擔心我們會突然跌落懸崖。

Did it hit Q1? Or did it -- or was it more in very, very early Q2?

它達到 Q1 了嗎？或者確實如此——或者更確切地說是在第二季度初期？

Yeah, I mean I'm not going to get into Q2. I'll just say that it was towards the tail end of the first quarter. I'm really good at dancing, Mike.

是的，我的意思是我不會進入第二季。我只想說那是在第一季末的時候。我真的很擅長跳舞，麥克。

The boxing footwork. Okay. So I did want to also ask about Endoscopy. I'm just curious, sometimes you do M&A, meaning the generic, you do M&A and there's some customer loss for whatever reason. I'm just curious, the guide down, is that associated with customer attrition?

拳擊步法。好的。所以我確實也想問一下有關內視鏡檢查的問題。我只是好奇，有時你會進行併購，也就是說，你進行併購，但無論出於何種原因，都會失去一些客戶。我只是好奇，指南的下降是否與客戶流失有關？

Or what's going on there, if you can speak to that?

或者那裡發生了什麼事，您可以談談嗎？

I don't think so. I think the plan was that we'd start integrating the sales forces at the end of the year and then it would come over. Then again, with all the things that were going on, I don't think it's a significant issue at all. And in fact, if anything, our sales forces in terms of the 2 groups now selling the same product is moving along better because we had planned it that way. We didn't want to stuff it down somebody's throat for the last half.

我不這麼認為。我認為我們的計劃是在今年年底開始整合銷售隊伍，然後一切都會順利完成。再說了，考慮到發生的所有事情，我認為這根本不是一個重大問題。事實上，如果有什麼不同的話，那就是就目前銷售相同產品的兩個團隊而言，我們的銷售團隊進展得更好了，因為我們就是這麼計劃的。我們不想在後半段強迫別人接受這個事實。

We wanted to stabilize it. All of the product is being built here. We wanted to make sure we could respond to that in terms of making sure that we had inventories and we were producing it, which we are. So I think it's just -- yes, it is part of what the plan.

我們想讓它穩定下來。所有產品都在這裡生產。我們希望確保我們能夠對此做出反應，確保我們有庫存並且正在生產，而我們也確實這樣做了。所以我認為這只是——是的，這是計劃的一部分。

Yeah. I mean -- and you don't -- you're not privy to, obviously, our quarterly cadence, Mike, but we anticipated that the second half of the year would be stronger than the first half. And that's just, again, as Fred mentioned, you've got two sales forces that are coming together. They've got to kind of -- even though they've been training on the products for half of the year last year, it just takes a little bit of time. And we've been through this before.

是的。我的意思是——你不知道——你顯然不知道我們的季度節奏，麥克，但我們預計下半年的表現會比上半年更強勁。正如弗雷德所提到的那樣，您已經擁有兩支銷售團隊並肩作戰。他們必須這樣做——儘管他們去年已經花了半年時間對產品進行培訓，但這仍然需要一點時間。我們以前也經歷過這樣的事。

We understand that there's always a little bit of disruption. And it's just one of those lessons learned. And I think we planned it that way. It wasn't a surprise to us.

我們知道總會有一點點混亂。這只是我們學到的教訓之一。我認為我們就是這樣計劃的。這對我們來說並不意外。

Okay. And then let me sneak one last one in. In terms of OEM, and I know you're sort of downplaying it and hey, this is sort of what we do and there is some lumpiness to it. But at the same time, it's been really positive lumpiness here the last couple of two, three quarters.

好的。然後讓我偷偷地再說最後一個。就 OEM 而言，我知道您有點輕視它，嘿，這就是我們所做的事情，而且其中存在一些不平衡之處。但同時，過去兩三個季度，這裡的經濟一直呈現積極的成長勢頭。

And I'm just curious, is there sort of with the new accounts you guys sort of alluded to maybe a new normal for the nearer term in terms of sort of growth expectations around that business? I mean, is mid-single-digit growth no longer really the right way to model that at least over the next several quarters?

我只是好奇，你們是否暗示，就該業務的成長預期而言，新帳戶在近期可能會成為一種新常態？我的意思是，至少在未來幾個季度中，中等個位數的成長是否不再是模擬這一現象的正確方法？

I mean we're expecting high single-digit growth for the year. So I guess, yes, that would be the wrong way to model it.

我的意思是我們預計今年的成長率將達到個位數高值。所以我想，是的，那將是一種錯誤的建模方式。

Well, I mean it was 21% in Q1, though. If you're saying high single-digit growth, you probably are assuming roughly mid-single-digit growth the rest of the way.

嗯，我的意思是第一季的比例是 21%。如果您說的是高個位數成長，那麼您可能認為其餘部分的成長速度大致是中等個位數。

Yeah. I mean the figure is unchanged from prior guidance. Again, we continue to be excited about the opportunity that OEM has. It's one of those things that maybe we don't talk enough about. But every time we launch a product, right, that as long as that product is not competing directly with our sales force, our OEM group has an opportunity to go out and get new business.

是的。我的意思是這個數字與之前的指導相比沒有變化。再次，我們繼續對 OEM 所擁有的機會感到興奮。這可能是我們討論得不夠多的事情之一。但每次我們推出產品時，只要產品不與我們的銷售團隊直接競爭，我們的 OEM 集團就有機會出去獲得新業務。

And I think we're vertically integrated in everything we do. We build high-quality products. And I think that word gets out. And there are certain things that other people don't want to do, and we're more than willing to do them.

我認為我們所做的一切都是垂直整合的。我們生產高品質的產品。我認為這句話已經傳開了。有些事情別人不願意做，但我們非常願意去做。

Last part of that. Have the brand-new accounts that you guys have signed, have they had an outsized impact on the recent success in that business?

最後一部分。你們簽署的全新帳戶是否對該業務的近期成功產生了巨大影響？

I'm not going to get into the customer, but I'll just say we're excited about all the businesses coming our way.

我不想談論客戶，但我只想說，我們對所有來我們這裡的業務感到興奮。

Fair enough. Thanks.

很公平。謝謝。

Jim Sidoti, Sidoti and Company.

吉姆·西多蒂（Jim Sidoti），西多蒂公司。

Hi. Good afternoon. Thanks for taking the questions. So a part of your growth strategy has always been the inorganic growth through acquisitions. And your targets are just like you, they're subject to these tariffs. Has the number of targets increased? Or are people more willing to make deals as a result of this?

你好。午安.感謝您回答這些問題。因此，你們的成長策略的一部分一直是透過收購實現無機成長。您的目標客戶與您一樣，也需要繳納這些關稅。目標數量增加了嗎？還是人們因此更願意達成交易？

Yeah. Jim, listen, there's a lot of activity in the marketplace. I know that if you talk to the bigger firms and I've heard the M&A activity is down. There's a lot of stuff out there, and we're engaged in looking as we always have been, but we're busy looking at things. There's a lot of stuff out there.

是的。吉姆，聽著，市場上有很多活動。我知道，如果你與大公司交談，你會聽到併購活動正在減少。外面有很多東西，我們像往常一樣致力於尋找，但我們忙於尋找東西。那裡有很多東西。

People remodeling their portfolios and this and that. So we're busy looking at things.

人們重塑他們的投資組合等等。所以我們正忙著觀察事物。

And with regard to the two deals you did in the second half of last year, do you think that integration is complete at this point? Are you happy with the way things are working out there? Or do you think there's still more work to do?

就去年下半年達成的兩筆交易而言，您認為現在整合已經完成嗎？您對那裡的現狀滿意嗎？或者您認為還有更多工作要做？

Well, there's always more work to do. Part of it is, remember, the TSA on the Cook deal, it is going to take more time, but that was all planned. So it's not a surprise. And you just integrated the sales force where they're all now selling the same bag on the EGS. And then you had all the sales meetings and things like that.

嗯，總是有更多的工作要做。部分原因是，請記住，美國運輸安全局 (TSA) 就庫克的交易需要更多時間，但這都是計劃好的。所以這並不奇怪。而且您剛剛整合了銷售隊伍，現在他們都在 EGS 上銷售同一個包。然後你就參加了所有的銷售會議和諸如此類的事情。

So I think we are on plan and executing that plan as we've been talking through this entire meeting is that Merit is focused. We're on plan. We -- in terms of our CGI, we've reconfirmed our numbers for the CGI program through its life. And it's actually, in many ways, Jim, chaos and all this other stuff that's going on in the marketplace plays to Merit advantage because we're kind of steady Eddie. I mean people can rely on us, and I think that's important.

所以我認為我們正在按照計劃進行，並且正在執行該計劃，正如我們在整個會議期間所討論的那樣，Merit 是重點。我們正在按計劃進行。就我們的 CGI 而言，我們重新確認了 CGI 程式在其整個生命週期內的數字。事實上，吉姆，在很多方面，市場上發生的混亂和所有其他事情都對 Merit 有利，因為我們有點像穩定的埃迪。我的意思是人們可以信賴我們，我認為這很重要。

So I think you can -- I hope you can sense the enthusiasm for the business and what we're working on. We have plans. We are not a ship that's a drift.

所以我認為你可以——我希望你能感受到我們對這項業務以及我們正在做的事情的熱情。我們有計劃。我們不是一艘隨波逐流的船。

Got it. Thank you.

知道了。謝謝。

Jon Young, Canaccord.

喬恩楊（Jon Young），Canaccord。

Hey, Fred. Thanks for fitting me in. I want to touch on CGI. I know a pillar of it has been the SKU rationalization and also the raising prices. So how should we think about your ability to raise prices in this macro environment? And how much of that is factored into the guidance? And also, could you talk about what percentage of the US business is sold to GPOs? And are those contracts generally made on a January 1 annual basis? Thanks.

嘿，弗雷德。謝謝你幫我安排。我想談談 CGI。我知道其中的一個支柱是 SKU 合理化和價格上漲。那麼在這種宏觀環境下，我們該如何看待你漲價的能力呢？其中有多少因素被納入了指導之中？另外，您能談談美國業務中有多少比例是出售給 GPO 的嗎？這些合約通常是每年 1 月 1 日簽訂的嗎？謝謝。

Great question, Jon. Look, I think CGI obviously does include pricing. As you guys know, under Foundations for Growth, we've made a significant investment in a pricing department. And I think they continue to do an excellent job at helping our sales team and the management team with the visibility and contract management and contract compliance. Contracts are a big part of our business.

問得好，喬恩。看，我認為 CGI 顯然包含定價。眾所周知，在「成長基礎」的指導下，我們對定價部門進行了大量投資。我認為他們在幫助我們的銷售團隊和管理團隊提高可見度、合約管理和合約合規性方面繼續做得非常出色。合約是我們業務的重要組成部分。

I'm not going to get into the percentages or details of those. I think probably the underlying question you're trying to get at is, hey, can you raise prices to cover the tariffs? And I'm not going to get into that either other than to say pricing is one of the levers that we have in our bag as part of Continued Growth Initiatives. And again, we're not going to do anything that is going to be a detriment to our customers when there's very little visibility as to the length or amount or lack of amount, I guess, on these tariffs, right? So we're not going to upset our customers when this thing is changing every day.

我不會深入討論這些百分比或細節。我認為您可能想要了解的根本問題是，您能提高價格來支付關稅嗎？我不想深入討論這個問題，只想說定價是我們持續成長計畫中掌握的手段之一。再說一次，當這些關稅的期限、金額或金額不足都不太清楚時，我們不會做任何有損客戶利益的事情，對吧？因此，當事情每天都在變化時，我們不會讓客戶感到不安。

And Raul, you hit a very good point. If you go out and then jerk your customers around, you're going to break up everything we've spent all these years building and confidence. So you have to be wise, you have to be measured. But at the same time, you have to be able to pass on what you can and be wise about how you approach it. And I think that's what we've done.

勞爾，你說得非常正確。如果你出去然後欺騙你的客戶，你將會破壞我們這些年來建立的一切和信心。所以你必須要明智，你必須要有分寸。但同時，你必須能夠傳遞你所能傳遞的東西，並明智地選擇如何去處理它。我認為這就是我們所做的。

And it's not just the pricing part, but the contract management that Raul mentioned, there's a lot to this. I think it's one of the things that's been a big factor in both Foundations for Growth and CGI.

這不僅僅是定價部分，還包括 Raul 提到的合約管理，還有很多內容。我認為這是「成長基礎」和 CGI​​ 中的一個重要因素。

Okay. Great. And then if I could sneak just one more in here, too. Just any commentary on US WRAPSODY performance this quarter?

好的。偉大的。然後如果我能再偷偷地再來一次就好了。對本季美國 WRAPSODY 的表現有何評論？

I understand that we're waiting for the reimbursement, but the device had a strong showing at SIR. I know it is commercially available. So just any commentary on performance.

我知道我們正在等待退款，但該設備在 SIR 上表現非常出色。我知道它是可以商業購買的。所以只是對性能的任何評論。

We continue to be excited about this product, the WRAPSODY, where it's also, I think, very pleasing to see it come in the cadence and the various things that are happening like the add-ons and the trials and the information, the one-year data. I think we're hitting on all the cylinders. So the best way to say it is we continue to be very enthused and excited about that product and what it means for the future of the company.

我們繼續對這款產品 WRAPSODY 感到興奮，我認為，看到它的節奏和正在發生的各種事情（如附加組件、試驗和資訊、一年的數據）也感到非常高興。我認為我們正全力以赴。所以最好的說法是，我們繼續對該產品以及它對公司未來的意義感到非常熱情和興奮。

Great. Thanks, again.

偉大的。再次感謝。

Mike Matson, Needham.

麥克馬森，尼德姆。

Yeah. Thanks. So just one more on China and the tariff situation. So I think -- I don't know if you've broken out the percentage of your sales from China really, but I think it's sort of around 10% and it looks like you're taking your EPS guidance down by about 8%, and that's probably really for kind of a three-quarter impact. So I mean, is it safe to assume at least with these -- as long as these tariffs remain in place that you're kind of not really profitable in China sort of breakeven maybe at best with your China business?

是的。謝謝。關於中國和關稅情況，我再說一次。所以我認為——我不知道您是否已經真正列出了來自中國的銷售額百分比，但我認為大約在 10% 左右，而且看起來您將每股收益預期下調了約 8%，這可能真的會對三個季度產生影響。所以我的意思是，只要這些關稅仍然存在，我們是否可以安全地假設，你在中國的業務實際上不會獲利，最多只能達到收支平衡？

Again, we're not going to get into all those details, Mike. Again, the $26.3 million is a gross number. We think we can impact that with some of our CGI initiatives and roughly -- of that $26 million, 94% of it is related to China. And a big chunk of that is the imports going into there. So other than those details, we're paying attention to what's happening, and we'll make adjustments as we deem necessary.

再說一次，麥克，我們不會討論所有這些細節。再次強調，2630 萬美元是一個總數。我們認為，我們可以透過一些 CGI 舉措來影響這一點，其中大約 2600 萬美元的 94% 與中國有關。其中很大一部分是進口的。因此，除了這些細節之外，我們正在關注正在發生的事情，並根據需要做出調整。

But we've got a good game plan, as you can see by the results of the first quarter.

但我們有一個很好的比賽計劃，正如你從第一季的結果所看到的那樣。

Okay. All right. And then just one on WRAPSODY. So good to hear the news on NTAP. But on the TPT, so would that -- would there be -- should there be something on the TPT in the OPPS outpatient proposed rule when that is published later this year?

好的。好的。然後就 WRAPSODY 上有一個。很高興聽到有關 NTAP 的消息。但在 TPT 上，那麼，當 OPPS 門診擬議規則在今年稍後發佈時，是否應該在 TPT 上包含一些內容？

Yeah. Our best estimate of timing and everything is that we'll have all this information hopefully by June is kind of what our general thinking is. It's out for comment now, but the recommendation has been made. We satisfied the criteria. I think that the data speaks for itself. And there weren't that many companies that got these things and Merit is one of its breakthrough, as you know.

是的。我們對時間和一切的最佳估計是，我們希望在六月之前獲得所有這些信息，這是我們的整體想法。目前尚未徵求意見，但建議已經提出。我們滿足了標準。我認為數據說明了一切。而且，能夠獲得這些東西的公司並不多，而如你所知，Merit 就是它的突破之一。

The data has been outstanding, and I think will benefit both the physician and the patient. So as I mentioned previously, Mike, it's on schedule and meeting all of our expectations.

這些數據非常出色，我認為這對醫生和患者都有好處。正如我之前提到的，麥克，一切都按計劃進行，並滿足了我們所有的期望。

Okay, and then just the inpatient versus outpatient mix for WRAPSODY. Do you have any feel for that? Is it skew one way or the other?

好的，然後是 WRAPSODY 的住院和門診組合。你對此有什麼感受嗎？它是否向某一方向傾斜？

I mean we do have a -- but we're not going to disclose it. I think we continue to be happy. We're not going to provide interim revenue updates on WRAPSODY. We continue to expect the $7 million to $9 million and are excited about the news that we got.

我的意思是我們確實有——但我們不會透露它。我想我們會繼續幸福。我們不會提供有關 WRAPSODY 的中期收入更新。我們繼續預期 700 萬至 900 萬美元，並對我們得到的消息感到興奮。

No, I understand. I guess what I was getting at is just is it -- which setting is it used more in? Or I mean, I guess you're not willing to answer understand, but --

不，我明白。我想我要問的是——它在哪種環境下使用得更多？或者我的意思是，我猜你不願意回答，但是--

Yeah. I mean it depends on who you talk to, Mike. Some people would tell you 60-40, 50-50. It just depends. But again, other than just saying those are the kind of things that you hear other people talk about.

是的。我的意思是這取決於你與誰交談，麥克。有些人會告訴你 60-40、50-50。這取決於具體情況。但再說一遍，除了說這些之外，你還會聽到其他人談論這些事情。

We don't talk on it because we'll wait until the data -- not the data, but until we get this thing done and get the word from CMS and then we'll pass that on as --

我們不談論它，因為我們要等到數據——不是數據，而是等到我們完成這件事，得到 CMS 的答复，然後我們才會把它傳遞出去--

Yeah. Alright. Got it. Thanks.

是的。好吧。知道了。謝謝。

Okay. Thank you.

好的。謝謝。

Jayson Bedford, Raymond James.

傑森貝德福德、雷蒙詹姆斯。

Good afternoon, guys. Thanks for squeezing me in. Just a few -- just to be clear on the mitigation, are there new initiatives that you're putting in place? Or are you just accelerating existing efforts?

大家下午好。謝謝你把我擠進來。僅舉幾例——只是為了清楚地了解緩解措施，您是否正在實施新的舉措？還是您只是在加速現有的努力？

I don't know that we're accelerating anything. We had initiatives that were on the list, and we're just attacking that list. I mean that's what we've been doing for the last 6-plus years, and we're just going to continue that. There's things that we did change that were short in nature, as I mentioned earlier, redirecting shipments, and that was helpful, holding off on sending more inventory to specific locations since they had plenty of finished goods. So there's things that we acted on that were very quick.

我不知道我們是否正在加速任何事情。我們已有一些清單上的舉措，我們只是在努力實現這些舉措。我的意思是，這就是我們過去六年多來一直在做的事情，而且我們將繼續這樣做。我們確實改變了一些本質上是短期的事情，正如我之前提到的，重新定向發貨，這很有幫助，因為特定地點有大量成品，所以我們可以推遲向這些地點發送更多庫存。因此，我們採取的行動非常迅速。

But all the other stuff that -- the things that kind of take time, those are just on the list, Jayson. And again, as we've mentioned before, plenty of times, we throw the kitchen sink at these things. And so it's just part of the process.

但是所有其他的事情——那些需要時間的事情，都列在清單上，傑森。再說一次，正如我們之前提到的，很多次，我們都會竭盡全力去解決這些問題。所以這只是過程的一部分。

And can I just add, Jayson, that another part of this is our counterparts in China. I mean we listen to what our management team on the ground that are fighting the fight. I mean we have our view here, but we also, I think, keep people engaged and don't ever try to think we're the only ones that know anything. In fact, quite to the opposite, our team, which is plentiful and well versed and experienced, we get them involved in all these conversations as well to develop a mutual strategy that becomes a single strategy for a company.

傑森，我還要補充一點，其中的另一部分是我們在中國的同行。我的意思是，我們聽取了正在一線奮戰的管理團隊的意見。我的意思是，我們在這裡有我們的觀點，但我認為，我們也讓人們參與進來，並且永遠不要認為我們是唯一知道任何事情的人。事實上，恰恰相反，我們的團隊人數眾多、知識淵博、經驗豐富，我們也讓他們參與所有這些對話，以製定共同策略，使其成為公司的單一戰略。

Yeah. I mean we're a team, right? I mean, whatever the political fight that's gone going, we have a team in China that we hold in high regards, and they're doing everything they can to make sure that we can pull through this.

是的。我的意思是我們是一個團隊，對嗎？我的意思是，無論政治鬥爭如何發展，我們在中國都有一支我們高度尊重的團隊，他們正在盡最大努力確保我們能夠度過難關。

They may have a suggestion or an idea, and we welcome all of those and talk about them quite often.

他們可能有建議或想法，我們歡迎所有這些並經常談論它們。

Okay. Just on the underlying gross margin, two straight quarters of 53% plus gross margin makes it a trend until tariffs, I guess. But the improvement is notable. Is there anything that kind of hit or inflected here in the last couple of quarters to drive that what is legitimately a step-up in underlying gross margin?

好的。僅從基本毛利率來看，我猜連續兩季的毛利率都維持在 53% 以上，這將形成一種趨勢，直到關稅出台。但進步是顯著的。過去幾季中是否存在類似的衝擊或影響，從而推動基礎毛利率的合理上升？

No. I mean, look, again, I think it's just -- it's the compounding efforts of everything we've done, whether it's the acquisitions, it's the efficiencies in operations, it's the sales focus on mix and pricing. Again, it just feels really good to see that gross margin come up.

不。我的意思是，再說一次，我認為這只是——這是我們所做的一切的複合努力，無論是收購，營運效率，還是銷售重點的組合和定價。再次，看到毛利率上升真的感覺很好。

And Jayson, I've got my Chief Operating Officer and my head sales and marketing guys sitting in the room. I mean a lot of the credit goes to them and the things that they're doing and their execution and our plans. This is not a surprise to us. We had hoped, but it has to come along and execution is the key. And that's what we've been doing. And there's -- as I think Raul said earlier, there's more to come.

傑森，我的營運長以及銷售和行銷主管都坐在這個房間裡。我的意思是，很多功勞都歸功於他們、他們所做的事情、他們的執行以及我們的計劃。這對我們來說並不意外。我們曾經希望如此，但它必須實現，而執行才是關鍵。這正是我們一直在做的事。而且──我認為正如勞爾之前所說的，還有更多的事情要做。

Yeah. And again, I can't emphasize enough that the core business, we've left guidance essentially the same, right, other than the tariffs. But that underlying business is doing great, and we're super excited about how we started in Q1. So more to come.

是的。我再強調一遍，除了關稅之外，我們對核心業務的指導基本上保持不變。但基礎業務表現良好，我們對第一季的開局感到非常興奮。未來還會有更多。

Just last one, and I realize we're getting on here. WRAPSODY, are you -- with the US launch, are you seeing any impact internationally, meaning a bit of a halo or anything like that?

只剩下最後一個了，我意識到我們已經到了這裡。WRAPSODY，隨著美國市場的推出，您是否看到了它在國際上的影響，例如光環之類的？

Well, I'll just simply say that having the data out there and having 1-year data is always helpful. So that helps to overcome either objections or compares you with other people who have been on the market before. So having data out there affects every location, yes.

好吧，我只是想簡單地說，擁有這些數據和一年的數據總是有幫助的。這樣可以幫助克服反對意見，或將你與之前進入市場的其他人進行比較。是的，數據會影響到每一個地方。

Okay, thank you.

好的，謝謝。

Jason Bednar, Piper Sandler.

傑森貝德納、派珀桑德勒。

Hey guys, thanks for taking the follow up, and again, sorry for for making this even longer. Just Raul, real quick on maybe helping us out with the EPS bridge here for the full year guide. So where am I -- I feel like I'm missing something. So you had the tariff impact was about $0.33, $0.34 of the headwind. You took the guide down $0.28, $0.29, something like that.

嘿夥計們，感謝你們的關注，再次為讓這篇文章變得更長而道歉。勞爾 (Raul)，也許很快就能幫助我們完成全年指南中的 EPS 橋樑。那麼我現在在哪裡——我感覺好像錯過了什麼。因此，關稅的影響約為 0.33 美元、0.34 美元的逆風。您把指導價降低了 0.28 美元、0.29 美元或類似的數字。

It seems like that $0.06 delta is you're picking up and the convert dilution is being less -- less now versus where it was 3 months ago. But you just beat by $0.12. And so I guess I'm wondering where that's coming -- where that's shaking out? And then also, I feel like currency is probably a tailwind as well. So I guess, help me out on what am I missing in the guide?

看起來你獲得的 0.06 美元增量和轉換稀釋度正在減少 — — 與 3 個月前相比有所減少。但你只贏了0.12美元。所以我很想知道這會帶來什麼結果──會帶來什麼影響？而且，我覺得貨幣可能也是一個順風。所以我想，請幫我解決指南中缺少什麼？

Yeah. You're not missing anything. Again, Jason, you know how we guide, right? I mean Q1, regardless -- let's just ignore the tariffs here for a minute. We -- coming out of Q1, we wouldn't have changed anything. That's just our standard practice.

是的。你沒有錯過任何東西。再說一次，傑森，你知道我們是如何引導的，對吧？我的意思是，不管怎樣，第一季——讓我們暫時忽略關稅。我們——從第一季開始，我們不會改變任何事情。這只是我們的標準做法。

We've never really changed guidance coming out of the first quarter. Typically, we give it some thought in the second quarter, and we'll see how things are shaking out. But typically, we will adjust our guidance in the third quarter, sometimes in the second, but not very frequently and hardly ever in the first quarter. So I think your math is right. We've got the $0.05 to $0.06 that's related to the dilution or the convert, I should call it.

我們從未真正改變第一季的業績指引。通常，我們會在第二季度考慮這個問題，然後看看事情會如何發展。但通常情況下，我們會在第三季調整我們的預期，有時在第二季調整，但頻率不會很高，幾乎不會在第一季調整。所以我認為你的數學是正確的。我們有 0.05 美元到 0.06 美元與稀釋或轉換有關，我應該這麼稱呼它。

And then you've got $0.34 for the tariffs. And then everything else, again, we left our guidance as is. So anything that you're missing is probably just related to that.

然後你需要支付 0.34 美元的關稅。對於其他一切，我們再次保持原有的指導。因此，您所遺漏的任何內容可能都與此有關。

Okay. So operational and currency are both upside from where we're sitting here today?

好的。那麼，從我們今天所處的位置來看，營運和貨幣都有所上升嗎？

That's correct.

沒錯。

Okay. Perfect. Thanks, guys.

好的。完美的。謝謝大家。

Thank you. I'm not showing any further questions. I would not like to turn it back over to Fred for closure marks.

謝謝。我沒有提出任何其他問題。我不想把它交還給弗雷德作為結束標記。

Well, listen, thank you very much for your comments, Raul. Actually, Raul, I better go to -- I won't be at these meetings following because I have to go to a business dinner. So --

好吧，聽著，非常感謝你的評論，勞爾。實際上，勞爾，我最好去——我不會參加接下來的會議，因為我必須去參加一個商務晚宴。所以--

And then jump on a plane.

然後跳上飛機。

Yeah. And then I've got to jump on a plane and head down to the Heart Rhythm show down in San Diego at 11:00 PM tonight. So -- but all that being said, I want to congratulate this team. They've worked hard. We have a cumulative effect of compounding, if you will, of the efforts of these programs.

是的。然後我必須搭飛機前往聖地牙哥參加今晚 11 點舉行的「心律」表演。所以——但話雖如此，我還是想祝賀這支球隊。他們已經很努力了。如果你願意的話，我們可以將這些計畫的努力累積，從而產生複合效應。

We -- our R&D, our efforts, our pricing, our inventories, our builds, I could go on and on. They are all the things that you would be working on with various adjustments and things. We're excited about the business. We're continuing to be excited about both the marketplace and the opportunities there as well as our internal efforts in R&D and other projects, which we won't talk about other than to let you know we're just excited about it. So it's been a long day.

我們——我們的研發、我們的努力、我們的定價、我們的庫存、我們的建設，我可以繼續說下去。這些都是您需要透過各種調整等方式來處理的事情。我們對這項業務感到很興奮。我們繼續對市場和那裡的機會以及我們在研發和其他項目方面的內部努力感到興奮，我們不會談論這些，只是想讓你們知道我們對此感到興奮。這真是漫長的一天。

We appreciate you taking the time and your interest, and we'll look forward to hearing from you again soon. Best wishes and signing off from Salt Lake City. Have a very good evening. Thank you.

感謝您抽出時間和關注，我們期待很快再次收到您的來信。來自鹽湖城的祝福和結束語。祝您晚上愉快。謝謝。

Thank you for your participation in today's conference. This does conclude the program. You may now disconnect. Everyone, have a great day.

感謝大家參加今天的會議。該計劃確實就此結束。您現在可以斷開連線。祝大家有個愉快的一天。