• LeMaitre Q1 2021 Financial Results

    Source: Nasdaq GlobeNewswire / 29 Apr 2021 16:06:00   America/New_York

    BURLINGTON, Mass., April 29, 2021 (GLOBE NEWSWIRE) -- LeMaitre (Nasdaq:LMAT), a provider of vascular devices, implants and services, today reported Q1 2021 results and announced an $0.11/share quarterly dividend.

    Q1 2021 Results

    • Sales of $35.9mm, +17% (-5% organic) vs. Q1 2020
    • Op. income of $7.9mm, +83%
    • Op. margin of 22%
    • Net income of $5.9mm, +87%
    • Earnings of $0.28 per diluted share, +83%
    • EBITDA of $10.5mm, +83%
    • Debt paid down $7.0mm to $32.0mm

    Sales grew in the Americas (+29%) and Asia/Pac (+25%) while Europe/Middle East/Africa (-5%) declined. Sales growth was led by Artegraft, valvulotomes and embolectomy catheters, and was partially offset by CE Mark and COVID related issues.

    The gross margin decreased to 66.3% in Q1 2021 (vs. 67.0% in Q1 2020) primarily due to factory transitions and manufacturing inefficiencies. Operating expenses decreased 2% to $15.9mm in Q1 2021 (vs. $16.1mm) due to lower headcount and decreased travel.

    George LeMaitre, Chairman and CEO, said, “Double-digit sales growth and restrained expenses enabled 83% bottom-line growth. And our 22% op. margin enabled us to improve the balance sheet.”

    Business Outlook

     Guidance
    Q2 2021 Sales$37.0mm - $40.0mm
    (Midpoint: $38.5mm, +55%)
    Q2 2021 Gross Margin66.7%
    Q2 2021 Operating Income$8.0mm - $10.0mm
    (Midpoint: $9.0mm, +85%)
    Q2 2021 Earnings Per Share$0.28 - $0.36
    (Midpoint: $0.32, +86%)

    Quarterly Dividend

    On April 27, 2021, the Company's Board of Directors approved a quarterly dividend of $0.11/share of common stock. The dividend will be paid on June 3, 2021 to shareholders of record on May 19, 2021.

    Share Repurchase Program

    On February 23, 2021, the Company's Board of Directors authorized the repurchase of up to $15.0mm of the Company’s common stock. The repurchase program may be suspended or discontinued at any time and will conclude on February 22, 2022, unless extended by the Board.

    Conference Call Reminder

    Management will conduct a conference call at 5:00pm ET today. The conference call will be broadcast live over the Internet. Individuals interested in listening to the webcast can log on to the Company's website at www.lemaitre.com/investor. The conference call may also be accessed by dialing 844-239-5284 (+1 512-961-6497 for international callers), using passcode 7316629. For individuals unable to join the live conference call, a replay will be available on the Company's website.

    A reconciliation of GAAP to non-GAAP results is included in the tables attached to this release.

    About LeMaitre

    LeMaitre is a provider of devices, implants and services for the treatment of peripheral vascular disease, a condition that affects more than 200 million people worldwide. The Company develops, manufactures and markets disposable and implantable vascular devices to address the needs of its core customer, the vascular surgeon.

    LeMaitre is a registered trademark of LeMaitre Vascular, Inc. This press release may include other trademarks and trade names of the Company.

    For more information about the Company, please visit http://www.lemaitre.com.

    Use of Non-GAAP Financial Measures

    LeMaitre Vascular management believes that in order to better understand the Company's short-term and long-term financial trends, investors may wish to consider certain non-GAAP financial measures as a supplement to financial performance measures prepared in accordance with GAAP. Non-GAAP financial measures are not based on a comprehensive set of accounting rules or principles and do not have standardized meanings. These non-GAAP measures result from facts and circumstances that may vary in frequency and/or impact on continuing operations. Non-GAAP measures should be considered in addition to, and not as a substitute for, financial performance measures in accordance with GAAP. In addition to the description provided below, reconciliation of GAAP to non-GAAP results is provided in the financial statement tables included in this press release.

    In this press release, the Company has reported non-GAAP sales growth percentages after adjusting for the impact of foreign currency exchange, business development transactions, and/or other events as well as EBITDA or earnings before interest, taxes, depreciation and amortization. The Company refers to the calculation of non-GAAP sales growth percentages as "organic." The Company analyzes non-GAAP sales on a constant currency basis, net of acquisitions and other non-recurring events, and EBITDA to better measure the comparability of results between periods. Because changes in foreign currency exchange rates have a non-operating impact on net sales, and acquisitions, divestitures, product discontinuations, and other strategic transactions are episodic in nature and are highly variable to the reported sales results, the Company believes that evaluating growth in sales on a constant currency basis net of such transactions provides an additional and meaningful assessment of sales to management. The Company believes that evaluating EBITDA provides an approximation of the cash generating ability of its operations.

    The Company has also reported non-GAAP outstanding debt, which takes into account the impact of unamortized deferred financing costs. The Company believes that considering its debt in this manner provides a view of the amount owed on a cash basis.

    Forward-Looking Statements

    The Company's current financial results, as discussed in this release, are preliminary and unaudited, and subject to adjustment. This press release contains forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Statements in this press release regarding the Company's business that are not historical facts may be "forward-looking statements" that involve risks and uncertainties. Forward-looking statements are based on management's current, preliminary expectations and are subject to risks and uncertainties that could cause actual results to differ from the results expected, including, but not limited to, the status of our global regulatory approvals and compliance with foreign regulatory requirements to market and sell our products outside the United States; the duration of the lapse in CE mark approval for certain of our devices; the final closure of an audit by one of our notified bodies in support of the issuance and/or maintenance of CE marks covering certain of our products or the failure of such audit to be successfully closed; the duration and severity of the impact of COVID-19 on the global economy, our customers, our suppliers and our company; the risk of significant fluctuations in our quarterly and annual results due to numerous factors; the risk that assumptions about the market for the Company’s products and the productivity of the Company’s direct sales force and distributors may not be correct; the risk that we may not be able to maintain our recent levels of profitability; the risk that the Company may not realize the anticipated benefits of its strategic activities; risks related to the integration of acquisition targets; the acceleration or deceleration of product growth rates; risks related to product demand and market acceptance of the Company’s products and pricing; the risk that a recall of our products could result in significant costs or negative publicity; the risk that the Company is not successful in transitioning to a direct-selling model in new territories and other risks and uncertainties included under the heading "Risk Factors" in our most recent Annual Report on Form 10-K, as updated by our subsequent filings with the SEC, which are all available on the Company's investor relations website at http://www.lemaitre.com and on the SEC's website at http://www.sec.gov. Undue reliance should not be placed on forward-looking statements, which speak only as of the date they are made. The Company undertakes no obligation to update publicly any forward-looking statements to reflect new information, events, or circumstances after the date they were made, or to reflect the occurrence of unanticipated events.

    CONTACT: J.J. Pellegrino, CFO, LeMaitre
    781-425-1691
    jjpellegrino@lemaitre.com

    LEMAITRE VASCULAR, INC (NASDAQ: LMAT)   
    CONDENSED CONSOLIDATED BALANCE SHEETS    
    (amounts in thousands)   
         
         
      March 31, 2021 December 31, 2020
      (unaudited)  
    Assets   
         
    Current assets:   
     Cash and cash equivalents$23,525  $26,764 
     Short-term marketable securities 214   214 
     Accounts receivable, net 20,126   19,552 
     Inventory and other deferred costs 45,071   45,115 
     Prepaid expenses and other current assets 1,721   2,618 
    Total current assets 90,657   94,263 
         
    Property and equipment, net 15,200   15,036 
    Right-of-use leased assets 15,478   16,066 
    Goodwill 65,945   65,945 
    Other intangibles, net 57,339   58,905 
    Deferred tax assets 1,640   1,686 
    Other assets 1,110   909 
         
    Total assets$247,369  $252,810 
         
         
    Liabilities and stockholders' equity   
         
    Current liabilities:   
     Current portion of long-term debt$2,750  $2,500 
     Accounts payable 2,561   2,394 
     Accrued expenses 14,365   17,525 
     Acquisition-related obligations 776   772 
     Lease liabilities - short-term 1,848   1,954 
    Total current liabilities 22,300   25,145 
         
    Long-term debt 28,485   35,532 
    Lease liabilities - long-term 14,360   14,791 
    Deferred tax liabilities 124   127 
    Other long-term liabilities 4,575   4,643 
    Total liabilities 69,844   80,238 
         
    Stockholders' equity   
     Common stock 221   221 
     Additional paid-in capital 117,236   114,924 
     Retained earnings 74,221   70,554 
     Accumulated other comprehensive loss (2,463)  (1,525)
     Treasury stock (11,690)  (11,602)
    Total stockholders' equity 177,525   172,572 
         
    Total liabilities and stockholders' equity$247,369  $252,810 



     LEMAITRE VASCULAR, INC (NASDAQ: LMAT)  
     CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
     (amounts in thousands, except per share amounts)   
     (unaudited)   
         
      For the three months ended
      March 31, 2021 March 31, 2020
         
    Net sales$35,883  $30,551 
    Cost of sales 12,084   10,068 
         
    Gross profit 23,799   20,483 
         
    Operating expenses:   
     Sales and marketing 6,466   7,945 
     General and administrative 6,544   5,191 
     Research and development 2,844   2,994 
         
    Total operating expenses 15,854   16,130 
         
    Income from operations 7,945   4,353 
         
    Other income:   
     Interest income 1   105 
     Interest expense (577)  - 
     Foreign currency gain (loss) 124   (178)
         
    Income before income taxes 7,493   4,280 
         
    Provision for income taxes 1,564   1,106 
         
    Net income$5,929  $3,174 
         
    Earnings per share of common stock   
     Basic$0.29  $0.16 
     Diluted$0.28  $0.16 
         
    Weighted - average shares outstanding:   
     Basic 20,546   20,168 
     Diluted 20,847   20,438 
         
         
    Cash dividends declared per common share$0.110  $0.095 


     LEMAITRE VASCULAR, INC (NASDAQ: LMAT)    
     SELECTED NET SALES INFORMATION     
     (amounts in thousands)       
     (unaudited)       
             
             
      For the three months ended
      March 31, 2021 March 31, 2020
      $ % $ %
    Net Sales by Geography       
     Americas$23,699 66% $18,336 60%
     Europe/Middle East/Africa 9,862 27%  10,350 34%
     Asia/Pacific Rim 2,322 7
    		%  1,865 6%
    Total Net Sales$35,883 100% $30,551 100%


    LEMAITRE VASCULAR, INC (NASDAQ: LMAT)       
    NON-GAAP FINANCIAL MEASURES       
    (amounts in thousands)       
    (unaudited)       
              
    Reconciliation between GAAP and Non-GAAP sales growth:       
     For the three months ended March 31, 2021       
      Net sales as reported$ 35,883     
      Impact of currency exchange rate fluctuations (947)     
      Net impact of acquisitions excluding currency (5,832)     
      Adjusted net sales   $29,104  
              
     For the three months ended March 31, 2020       
      Net sales as reported$30,551     
      Adjusted net sales   $30,551  
              
      Adjusted net sales decrease for the three months ended March 31, 2021   $(1,447) -5%
              
              
    Reconciliation between GAAP and non-GAAP debt outstanding:       
     As of March 31, 2021       
      Debt as reported$31,235     
      Add back unamortized deferred financing costs 765     
      Adjusted debt outstanding   $32,000  
              
              
       For the three months ended  
        March 31, 2021  March 31, 2020  
    Reconciliation between GAAP and Non-GAAP EBITDA       
     Net income as reported$5,929 $3,174  
     Interest (income) expense, net 576  (105)  
     Amortization and depreciation expense 2,388  1,538  
     Provision for income taxes 1,564  1,106  
              
     EBITDA$10,457 $5,713  
              
     EBITDA percentage increase    83%  

     

     


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