• LeMaitre Q2 2023 Financial Results

    Source: Nasdaq GlobeNewswire / 01 Aug 2023 16:05:54   America/New_York

    BURLINGTON, Mass., Aug. 01, 2023 (GLOBE NEWSWIRE) -- LeMaitre (Nasdaq:LMAT), a provider of vascular devices, implants and services, today reported Q2 2023 results, announced a $0.14/share quarterly dividend and provided guidance.

    Q2 2023 Financial Results

    • Sales $50.1mm, +19% (+16% organic) vs. Q2 2022
    • Op. income $9.5mm, +63% (+8% adjusted)
    • Op. margin 19%
    • Net income $8.1mm, +130% (+27% adjusted)
    • Earnings per diluted share $0.36, +127% (+25% adjusted)
    • Cash up $9.2mm to $90.2mm

    Bovine patches (+16%), valvulotomes (+18%), bovine grafts (+13%), carotid shunts (+22%) and allografts (+18%) drove Q2 sales. EMEA was up 26%, APAC 21% and the Americas 16%.

    The gross margin decreased to 64.0% in Q2 (vs. 66.0% in Q2 2022), driven by manufacturing inefficiencies and distribution sales of porcine patches, partially offset by price increases.

    Operating income of $9.5mm was up 63% vs. Q2 2022. Excluding St. Etienne factory closure charges, operating income was up 8%. Operating expenses (excluding St. Etienne charges) grew 19% due to sales rep growth and higher commissions, as well as CE-related regulatory costs.

    George LeMaitre, Chairman and CEO, said “16% organic sales growth and 25% adjusted EPS growth was a result of increased hospital procedures and our 9% price increase. In retrospect, our 2022 hiring surge seems well-timed.”

    Business Outlook

     Q3 2023 GuidanceQ4 2023 GuidanceFull Year 2023 Guidance
    Sales$46.5mm - $48.9mm
    (Mid: $47.7mm, +22%,
    +16% Org.)    		$49.3mm - $51.7mm
    (Mid: $50.5mm, +23%,
    +17% Org.)    		$193.0mm - $197.8mm
    (Mid: $195.4mm, +21%,
    +18% Org.)
    Gross Margin64.3%64.6%64.6% 
    Op. Inc.$7.4mm - $8.9mm
    (Mid: $8.2mm, +33%)    		$8.7mm - $10.2mm
    (Mid: $9.4mm, +36%)    		$33.4mm - $36.5mm
    (Mid $34.9mm, +30%)
    Op. Inc. Ex-Special*--$33.9mm - $37.0mm
    (Mid $35.4mm, +18%)
    EPS$0.28 - $0.33
    (Mid: $0.31, +24%)    		$0.32 - $0.38
    (Mid: $0.35, +39%)    		$1.23 - $1.34
    (Mid: $1.28, +38%)
    EPS Ex-Special*--$1.25 - $1.35
    (Mid: $1.30, +22%)

    *Special charges are related to the St. Etienne factory closure.

    Quarterly Dividend

    On July 25, 2023, the Company's Board of Directors approved a quarterly dividend of $0.14/share of common stock. The dividend will be paid on August 31, 2023 to shareholders of record on August 17, 2023.

    Share Repurchase Program

    On February 21, 2023, the Company's Board of Directors authorized the repurchase of up to $25.0mm of the Company’s common stock. The repurchase program may be suspended or discontinued at any time and will conclude on February 21, 2024, 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. Access to the live call is available by registering online here. All registrants will receive dial-in information and a PIN allowing them to access the live call. The audio webcast can also be accessed live or via replay through a webcast at www.lemaitre.com/investor. 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 www.lemaitre.com.

    Use of Non-GAAP Financial Measures

    LeMaitre management believes that in order to better understand the Company's short- 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, including EBITDA. This press release also provides guidance for operating income and EPS excluding the special charge relating to the closure of our St. Etienne factory and revenue related the Aziyo distribution agreement. 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 the aforementioned non-GAAP profitability measures 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, factory closures, 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 the presentation of guidance described above for operating income and EPS provides an alternative and meaningful view of the Company’s profitability.

    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 regulatory requirements to market and sell our products both in the U.S. and outside of the U.S.; 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)     
           
           
       June 30, 2023 December 31, 2022 
       (unaudited)   
    Assets     
           
    Current assets:     
     Cash and cash equivalents $19,488  $19,134  
     Short-term marketable securities  70,689   63,557  
     Accounts receivable, net  26,406   22,040  
     Inventory and other deferred costs  53,831   50,271  
     Prepaid expenses and other current assets  4,076   6,731  
    Total current assets  174,490   161,733  
           
    Property and equipment, net  21,217   17,901  
    Right-of-use leased assets  15,804   15,634  
    Goodwill  65,945   65,945  
    Other intangibles, net  43,999   46,527  
    Deferred tax assets  2,081   1,745  
    Other assets  2,931   991  
           
    Total assets $326,467  $310,476  
           
           
    Liabilities and stockholders' equity     
           
    Current liabilities:     
     Accounts payable $3,519  $2,903  
     Accrued expenses  19,327   19,967  
     Acquisition-related obligations  651   573  
     Lease liabilities - short-term  2,358   1,886  
    Total current liabilities  25,855   25,329  
           
    Lease liabilities - long-term  14,449   14,710  
    Deferred tax liabilities  72   69  
    Other long-term liabilities  2,264   2,167  
    Total liabilities  42,640   42,275  
           
    Stockholders' equity     
     Common stock  239   237  
     Additional paid-in capital  196,941   189,268  
     Retained earnings  105,696   97,773  
     Accumulated other comprehensive loss  (5,822)  (6,031) 
     Treasury stock  (13,227)  (13,046) 
    Total stockholders' equity  283,827   268,201  
           
    Total liabilities and stockholders' equity $326,467  $310,476  
           



    LEMAITRE VASCULAR, INC. (NASDAQ: LMAT)      
    CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS    
    (amounts in thousands, except per share amounts)       
    (unaudited)       
             
      For the three months ended For the six months ended
      June 30, 2023 June 30, 2022 June 30, 2023 June 30, 2022
             
    Net sales$50,115 $42,108  $97,190  $81,669 
    Cost of sales 18,029  14,298   34,221   27,897 
             
    Gross profit 32,086  27,810   62,969   53,772 
             
    Operating expenses:       
    Sales and marketing 10,216  8,242   21,113   16,092 
    General and administrative 7,722  7,331   15,654   14,583 
    Research and development 4,516  3,346   8,391   6,278 
    Restructuring 180  3,107   485   3,107 
    Total operating expenses 22,634  22,026   45,643   40,060 
             
    Income from operations 9,452  5,784   17,326   13,712 
             
    Other income (expense):       
    Interest income 682  167   1,250   275 
    Foreign currency gain (loss) 185  (403)  (240)  (443)
             
    Income before income taxes 10,319  5,548   18,336   13,544 
             
    Provision for income taxes 2,221  2,033   4,198   3,991 
             
    Net income$8,098 $3,515  $14,138  $9,553 
             
    Earnings per share of common stock       
    Basic$0.36 $0.16  $0.64  $0.44 
    Diluted$0.36 $0.16  $0.63  $0.43 
             
    Weighted - average shares outstanding:       
    Basic 22,213  21,958   22,162   21,947 
    Diluted 22,451  22,129   22,371   22,115 
             
             
    Cash dividends declared per common share $0.140 $0.125  $0.280  $0.250 
             



                     
    LEMAITRE VASCULAR, INC. (NASDAQ: LMAT)            
    SELECTED NET SALES INFORMATION              
    (amounts in thousands)               
    (unaudited)               
                     
      For the three months ended  For the six months ended
      June 30, 2023 June 30, 2022 June 30, 2023 June 30, 2022
      $ % $ % $ % $ %
    Net Sales by Geography               
     Americas$33,507 67% $28,854 69% $65,633 67% $55,397 68%
     Europe, Middle East and Africa 13,580 27%  10,749 25%  25,857 27%  21,243 26%
     Asia Pacific 3,028 6%  2,505 6%  5,700 6%  5,029 6%
    Total Net Sales$50,115 100% $42,108 100% $97,190 100% $81,669 100%
                     



               
    LEMAITRE VASCULAR, INC (NASDAQ: LMAT)         
    NON-GAAP FINANCIAL MEASURES         
    (amounts in thousands)         
    (unaudited)         
               
       For the three months ended For the six months ended 
       June 30, 2023 June 30, 2022 June 30, 2023 June 30, 2022 
    Reconciliation between GAAP and Non-GAAP EBITDA         
     Net income as reported $8,098  $3,515  $14,138  $9,553  
     Interest (income) expense, net  (682)  (167)  (1,250)  (275) 
     Amortization and depreciation expense  2,326   2,444   4,677   4,817  
     Provision for income taxes  2,221   2,033   4,198   3,991  
               
     EBITDA $11,963  $7,825  $21,763  $18,086  
               
     EBITDA percentage increase    53%    20% 
               



              
    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 June 30, 2023       
      Net sales as reported $50,115      
      Net distribution sales  (1,233)     
      Impact of currency exchange rate fluctuations  12      
          Adjusted net sales   $48,894   
              
     For the three months ended June 30, 2022       
      Net sales as reported $42,108      
          Adjusted net sales   $42,108   
              
      Adjusted net sales increase for the three months ended June 30, 2023   $6,786 16% 
              
              
    Reconciliation between GAAP and Non-GAAP operating income growth:       
     For the three months ended June 30, 2023       
      Operating income as reported $9,452      
      Impact of special charge  180      
          Adjusted operating income   $9,632   
              
     For the three months ended June 30, 2022       
      Operating income as reported $5,784      
      Impact of special charge  3,107      
          Adjusted operating income   $8,891   
              
      Adjusted operating income increase for the three months ended June 30, 2023   $741 8% 
              
              
    Reconciliation between GAAP and Non-GAAP net income growth:       
     For the three months ended June 30, 2023       
      Net income as reported $8,098      
      Impact of special charge, including tax  134      
          Adjusted net income   $8,232   
              
     For the three months ended June 30, 2022       
      Net income as reported $3,515      
      Impact of special charge, including tax  2,986      
          Adjusted net income   $6,501   
              
      Adjusted net income increase for the three months ended June 30, 2023   $1,731 27% 
              
              
    Reconciliation between GAAP and Non-GAAP EPS growth:       
     For the three months ended June 30, 2023       
      EPS as reported $0.36      
      Impact of special charge, including tax  0.01      
          Adjusted EPS   $0.37   
              
     For the three months ended June 30, 2022       
      EPS as reported $0.16      
      Impact of special charge, including tax  0.13      
          Adjusted EPS   $0.29   
              
      Adjusted EPS increase for the three months ended June 30, 2023   $0.08 25% 
              
              
    Reconciliation between GAAP and Non-GAAP operating expense growth:       
     For the three months ended June 30, 2023       
      Operating expenses as reported $22,634      
      Impact of special charge  (180)     
          Adjusted operating expenses   $22,454   
              
     For the three months ended June 30, 2022       
      Operating expenses as reported $22,026      
      Impact of special charge  (3,107)     
          Adjusted operating expenses   $18,919   
              
      Adjusted operating expense increase for the three months ended June 30, 2023   $3,535 19% 
              
              
    Reconciliation between GAAP and Non-GAAP projected sales growth:       
     For the three months ending September 30, 2023       
      Net sales per guidance (midpoint) $47,707      
      Net distribution sales  (1,667)     
      Impact of currency exchange rate fluctuations  (866)     
          Adjusted projected net sales   $45,174   
              
     For the three months ended September 30, 2022       
      Net sales as reported $39,028      
          Adjusted net sales   $39,028   
              
      Adjusted projected net sales increase for the three months ending September 30, 2023   $6,146 16% 
              
              
    Reconciliation between GAAP and Non-GAAP projected sales growth:       
     For the three months ending December 31, 2023       
      Net sales per guidance (midpoint) $50,500      
      Net distribution sales  (1,600)     
      Impact of currency exchange rate fluctuations  (1,020)     
          Adjusted projected net sales   $47,880   
              
     For the three months ended December 31, 2022       
      Net sales as reported $40,954      
          Adjusted net sales   $40,954   
              
      Adjusted projected net sales increase for the three months ending December 31, 2023   $6,926 17% 
              
              
    Reconciliation between GAAP and Non-GAAP projected sales growth:       
     For the year ending December 31, 2023       
      Net sales per guidance (midpoint) $195,397      
      Net distribution sales  (4,500)     
      Impact of currency exchange rate fluctuations  (824)     
          Adjusted projected net sales   $190,073   
              
     For the year ended December 31, 2022       
      Net sales as reported $161,651      
          Adjusted net sales   $161,651   
              
      Adjusted projected net sales increase for the year ending December 31, 2023   $28,422 18% 
              
              
    Reconciliation between GAAP and Non-GAAP projected operating income:       
     For the year ending December 31, 2023       
      Operating income per guidance (midpoint) $34,917      
      Impact of special charge  485      
          Adjusted projected operating income   $35,402   
              
     For the year ended December 31, 2022       
      Operating income as reported $26,829      
      Impact of special charge  3,107      
          Adjusted operating income   $29,936   
              
      Adjusted projected operating income increase for the year ending December 31, 2023   $5,466 18% 
              
              
    Reconciliation between GAAP and Non-GAAP projected EPS:       
     For the year ending December 31, 2023       
      EPS per guidance (midpoint) $1.28      
      Impact of special charge, including tax  0.02      
          Adjusted EPS   $1.30   
              
     For the year ended December 31, 2022       
      EPS as reported $0.93      
      Impact of special charge, including tax  0.13      
          Adjusted EPS   $1.06   
              
      Adjusted projected EPS increase for the year ending December 31, 2023   $0.24 22% 
              

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