U.S. Markets close in 52 mins
  • S&P 500

    3,584.64
    +27.10 (+0.76%)
     
  • Dow 30

    29,651.81
    +388.33 (+1.33%)
     
  • Nasdaq

    11,913.82
    +58.85 (+0.50%)
     
  • Russell 2000

    1,785.34
    +1.21 (+0.07%)
     
  • Crude Oil

    42.17
    +0.43 (+1.03%)
     
  • Gold

    1,869.60
    +8.10 (+0.44%)
     
  • Silver

    24.23
    +0.18 (+0.74%)
     
  • EUR/USD

    1.1862
    -0.0014 (-0.1186%)
     
  • 10-Yr Bond

    0.8570
    +0.0280 (+3.38%)
     
  • Vix

    23.70
    +0.59 (+2.55%)
     
  • GBP/USD

    1.3291
    +0.0038 (+0.2858%)
     
  • USD/JPY

    103.8280
    +0.0570 (+0.0549%)
     
  • BTC-USD

    18,412.92
    -41.83 (-0.23%)
     
  • CMC Crypto 200

    364.26
    +2.83 (+0.78%)
     
  • FTSE 100

    6,351.45
    +17.10 (+0.27%)
     
  • Nikkei 225

    25,527.37
    -106.93 (-0.42%)
     

LeMaitre Vascular Announces Q3 2020 Financial Results

LeMaitre Vascular, Inc.
·11 min read

BURLINGTON, Mass., Oct. 29, 2020 (GLOBE NEWSWIRE) -- LeMaitre Vascular, Inc. (Nasdaq:LMAT), a provider of vascular devices, implants and services, today reported Q3 2020 results and announced a $0.095/share quarterly dividend.

Q3 2020 Results

  • Sales of $36.4mm, +25% (-3% organic) vs. Q3 2019

  • Op. income of $10.0mm, +70%

  • Op. margin of 28%

  • Net income of $7.5mm, +45%

  • Earnings of $0.37 per diluted share, +44%

  • EBITDA of $12.6mm, +79%

  • Cash & equivalents up $9.3mm to $34.4mm

  • Debt down $4.5mm to $60.5mm

The Company posted sales growth in the Americas (+37%), Asia/Pac (+12%) and Europe/Middle East/Africa (+6%). The three recent acquisitions (Artegraft, CardioCel and Eze-Sit) and the return of elective surgery drove growth.

Gross margin decreased to 62.3% in Q3 2020 (vs. 69.3% in Q3 2019) primarily due to Artegraft purchase-price accounting.

Operating expenses decreased 11% to $12.7mm in Q3 2020 (vs. $14.3mm). This decline was driven by COVID-related cost-cuts, including reduced sales & marketing expenses.

Chairman & CEO George LeMaitre said, “Record sales in Q3 and tight expense control led to healthy bottom-line results and an improved balance sheet.”

Business Outlook

Guidance

Q4 2020 Sales

$34.0mm - $38.0mm
(Midpoint:+19%)

Q4 2020 Gross Margin

65.5%

Q4 2020 Operating Income

$7.1mm - $9.7mm
(Midpoint:+70%)

Q4 2020 Earnings Per Share

$0.25 - $0.35
(Midpoint: +32%)

2020 Sales

$125.8mm - $129.8mm
(Midpoint:+9%)

2020 Gross Margin

65.6%

2020 Operating Income

$26.3mm - $28.9mm
(Midpoint:+30%)

2020 Earnings Per Share

$0.94 - $1.04
(Midpoint: +12%)

Quarterly Dividend

On October 20, 2020, the Company's Board of Directors approved a quarterly dividend of $0.095/share of common stock. The dividend will be paid on December 3, 2020 to shareholders of record on November 19, 2020.

Share Repurchase Program

On February 13, 2020, the Company's Board of Directors authorized the repurchase of up to $10.0mm of the Company’s common stock. The repurchase program may be suspended or discontinued at any time and will conclude on February 14, 2021, unless extended by the Board.

Conference Call Reminder

Management will conduct a conference call at 5:00 p.m. ET today to review the Company's Q3 2020 financial results. 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 4052529. 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 Vascular

LeMaitre Vascular 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 and the LeMaitre Vascular logo are registered trademarks 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 excludes 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 duration and severity of the impact of COVID-19 on the global economy, our customers, our suppliers and our company; the duration of the lapse in CE mark approval for certain of our devices; compliance with foreign regulatory requirements to market and sell our products outside the United States; 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.


LEMAITRE VASCULAR, INC (NASDAQ: LMAT)

CONDENSED CONSOLIDATED BALANCE SHEETS

(amounts in thousands)

September 30, 2020

December 31, 2019

(unaudited)

Assets

Current assets:

Cash and cash equivalents

$

29,279

$

11,786

Short-term marketable securities

5,097

20,895

Accounts receivable, net

19,625

16,572

Inventory and other deferred costs

45,639

39,527

Prepaid expenses and other current assets

2,612

3,312

Total current assets

102,252

92,092

Property and equipment, net

14,133

14,854

Right-of-use leased assets

16,373

15,208

Goodwill

65,945

39,951

Other intangibles, net

60,539

24,893

Deferred tax assets

1,385

1,084

Other assets

942

259

Total assets

$

261,569

$

188,341

Liabilities and stockholders' equity

Current liabilities:

Current portion of long-term debt

$

2,250

$

-

Revolving line of credit

21,000

-

Accounts payable

2,168

2,604

Accrued expenses

14,679

14,014

Acquisition-related obligations

2,543

2,476

Lease liabilities - short-term

1,806

1,757

Total current liabilities

44,446

20,851

Long-term debt

36,229

-

Lease liabilities - long-term

15,192

13,955

Deferred tax liabilities

90

1,179

Other long-term liabilities

4,629

4,215

Total liabilities

100,586

40,200

Stockholders' equity

Common stock

218

217

Additional paid-in capital

109,640

105,934

Retained earnings

65,457

57,029

Accumulated other comprehensive loss

(3,009

)

(4,007

)

Treasury stock

(11,323

)

(11,032

)

Total stockholders' equity

160,983

148,141

Total liabilities and stockholders' equity

$

261,569

$

188,341



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 nine months ended

September 30, 2020

September 30, 2019

September 30, 2020

September 30, 2019

Net sales

$

36,416

$

29,100

$

91,818

$

87,062

Cost of sales

13,712

8,934

31,602

27,117

Gross profit

22,704

20,166

60,216

59,945

Operating expenses:

Sales and marketing

5,157

7,429

17,788

22,887

General and administrative

5,901

4,551

16,425

14,026

Research and development

2,098

2,281

7,230

6,777

Gain on sale of building

(470

)

-

(470

)

-

Total operating expenses

12,686

14,261

40,973

43,690

Income from operations

10,018

5,905

19,243

16,255

Other income:

Interest expense

(665

)

-

(732

)

-

Other income (loss), net

25

(15

)

(86

)

236

Income before income taxes

9,378

5,890

18,425

16,491

Provision for income taxes

1,865

706

4,238

3,170

Net income

$

7,513

$

5,184

$

14,187

$

13,321

Earnings per share of common stock

Basic

$

0.37

$

0.26

$

0.70

$

0.68

Diluted

$

0.37

$

0.25

$

0.69

$

0.66

Weighted - average shares outstanding:

Basic

20,254

19,871

20,201

19,731

Diluted

20,474

20,378

20,434

20,258

Cash dividends declared per common share

$

0.095

$

0.085

$

0.285

$

0.255



LEMAITRE VASCULAR, INC (NASDAQ: LMAT)

SELECTED NET SALES INFORMATION

(amounts in thousands)

(unaudited)

For the three months ended

For the nine months ended

September 30, 2020

September 30, 2019

September 30, 2020

September 30, 2019

$

%

$

%

$

%

$

%

Net Sales by Geography

Americas

$

24,184

66

%

$

17,698

61

%

$

57,462

63

%

$

51,584

59

%

Europe/Middle East/Africa

10,039

28

%

9,452

32

%

28,339

31

%

29,479

34

%

Asia/Pacific Rim

2,193

6

%

1,950

7

%

6,017

6

%

5,999

7

%

Total Net Sales

$

36,416

100

%

$

29,100

100

%

$

91,818

100

%

$

87,062

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 September 30, 2020

Net sales as reported

$

36,416

Impact of currency exchange rate fluctuations

(484

)

Net impact of acquisitions excluding currency

(7,584

)

Adjusted net sales

$

28,348

For the three months ended September 30, 2019

Net sales as reported

$

29,100

Adjusted net sales

$

29,100

Adjusted net sales increase for the three months ended September 30, 2020

$

(752

)

-3

%

Reconciliation between GAAP and non-GAAP debt outstanding:

As of September 30, 2020

Debt as reported

$

59,479

Add back unamortized deferred financing costs

1,021

Adjusted debt outstanding

$

60,500

For the three months ended

For the nine months ended

September 30, 2020

September 30, 2019

September 30, 2020

September 30, 2019

Reconciliation between GAAP and Non-GAAP EBITDA

Net income as reported

$

7,513

$

5,184

$

14,187

$

13,321

Interest (income) expense, net

650

(193

)

537

(574

)

Amortization and depreciation expense

2,599

1,345

5,778

3,975

Provision for income taxes

1,865

706

4,238

3,170

EBITDA

$

12,627

$

7,042

$

24,740

$

19,892

EBITDA percentage increase

79

%

24

%







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