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LeMaitre Q1 2017 Record Sales $24.1 mm (+19%), Net Income $3.2 mm (+49%)

04/26/17

BURLINGTON, Mass., April 26, 2017 (GLOBE NEWSWIRE) -- LeMaitre Vascular, Inc. (Nasdaq:LMAT), a provider of vascular devices, implants and services, today reported Q1 2017 results, provided guidance, and announced a $0.055/share dividend.

Q1 2017 Results

  • Record sales of $24.1mm, +19% vs. Q1 2016
  • Operating income of $4.2mm vs. $3.3mm, +27%
  • Net income of $3.2mm vs. $2.2mm, +49%
  • Earnings of $0.16 per diluted share vs. $0.11, +42%
  • EBITDA of $5.2mm vs. $4.1mm, +26%
  • Cash & equivalents up $1.5mm during the quarter to $25.8mm

Q1 2017 sales of $24.1mm increased 19% (+13% organic) vs. Q1 2016.  XenoSure, RestoreFlow and AnastoClip led growth.  Sales in the Americas were up 26% while international sales increased 9%. 

Gross margin increased to 71.9% in Q1 2017 from 70.9% in Q1 2016, primarily due to manufacturing efficiencies.

Operating expenses in Q1 2017 were $13.2mm, a 19% increase vs. the year-earlier quarter driven by acquisition-related costs and professional fees. The Company ended the quarter with 95 sales reps vs. 92 at the end of Q1 2016.

George W. LeMaitre, Chairman and CEO said, “We continue to pursue 10% annual reported sales growth and 20% annual operating income growth.”      

Business Outlook

  Previous Guidance (2/21/2017) Current Guidance
Q2  2017 Sales N/A $25.4mm
(+13% reported, +10% organic)
Q2  2017 Gross Margin N/A 70.0 %
Q2  2017 Operating Income N/A $4.8mm (+27%)
Q2  2017 Earnings Per Share N/A $0.17 (+27%)
2017 Sales $99.0mm
(+11% reported, +9% organic)
$100.5mm
(+13% reported, +9% organic)
2017 Gross Margin 71.5 % 71.5 %
2017 Operating Income $20.0mm (+22%) $20.0mm (+22%)
2017 Earnings Per Share N/A $0.70 (+27%)

Quarterly Dividend

On April 24, 2017, the Company's Board of Directors approved a quarterly dividend of $0.055/share of common stock. The dividend will be paid June 8, 2017 to shareholders of record on May 24, 2017.

Conference Call Reminder

Management will conduct a conference call at 5:00pm ET today to review the Company's financial results and discuss its business outlook for the remainder of the year. The conference call will be broadcast live over the Internet. Individuals who are interested in listening to the webcast should 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 7880736. 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 contains 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 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, 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.

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. Specifically, forward-looking statements in this release include, but are not limited to, statements about the Company's expectations regarding Q2 2017 and 2017 sales, gross margin, operating income and earnings per share. 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 risk that the Company may not realize the anticipated benefits of its strategic activities; 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; risks related to the integration of acquisition targets; 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; adverse or fluctuating conditions in the general domestic and global economic markets 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, all of which are 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)          
             
             
      March 31, 2017   December 31, 2016  
      (unaudited)      
Assets          
             
Current assets:          
  Cash and cash equivalents   $   25,810     $   24,288    
  Accounts receivable, net       14,090         13,191    
  Inventory       20,596         19,578    
  Prepaid expenses and other current assets       2,008         1,970    
Total current assets       62,504         59,027    
             
Property and equipment, net       9,279         8,012    
Goodwill       23,629         23,426    
Other intangibles, net       9,524         9,897    
Deferred tax assets       1,421         1,399    
Other assets       165         163    
             
Total assets   $   106,522     $   101,924    
             
             
Liabilities and stockholders' equity          
             
Current liabilities:          
  Accounts payable   $   2,220     $   1,217    
  Accrued expenses       8,286         8,804    
  Acquisition-related obligations        259         461    
Total current liabilities       10,765         10,482    
             
Deferred tax liabilities       1,941         1,941    
Other long-term liabilities       2,198         2,001    
Total liabilities       14,904         14,424    
             
Stockholders' equity          
  Common stock       202         200    
  Additional paid-in capital       86,683         85,378    
  Retained earnings        17,526         15,335    
  Accumulated other comprehensive loss       (3,963 )       (4,583 )  
  Treasury stock       (8,830 )       (8,830 )  
Total stockholders' equity       91,618         87,500    
             
Total liabilities and stockholders' equity   $   106,522     $   101,924    
             

 

           
  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, 2017   March 31, 2016  
           
Net sales $   24,139   $   20,258    
Cost of sales     6,786       5,902    
           
Gross profit     17,353       14,356    
           
Operating expenses:        
  Sales and marketing     6,954       6,273    
  General and administrative     4,548       3,337    
  Research and development     1,658       1,446    
           
Total operating expenses     13,160       11,056    
           
Income from operations     4,193       3,300    
           
Other income (loss):        
  Other income (loss), net     46       (35 )  
           
Income before income taxes     4,239       3,265    
           
Provision (benefit) for income taxes     1,020       1,099    
           
Net income  $   3,219   $   2,166    
           
Earnings per share of common stock        
  Basic $   0.17   $   0.12    
  Diluted $   0.16   $   0.11    
           
Weighted - average shares outstanding:        
  Basic     18,631       18,336    
  Diluted     19,707       18,860    
           
           
Cash dividends declared per common share  $   0.055   $   0.045    
           

 

                   
  LEMAITRE VASCULAR, INC (NASDAQ: LMAT)          
  SELECTED NET SALES INFORMATION          
  (amounts in thousands)                
  (unaudited)                
                   
                   
    For the three months ended   
    March 31, 2017   March 31, 2016  
    $   %   $   %  
Net Sales by Geography                
  Americas $   14,980   62 %   $   11,877   59 %  
  International     9,159   38 %       8,381   41 %  
Total Net Sales $   24,139   100 %   $   20,258   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 ending March 31, 2017              
    Net sales as reported   $   24,139            
    Impact of currency exchange rate fluctuations       285            
    Net impact of acquisitions excluding currency       (1,501 )          
      Adjusted net sales       $   22,923        
                   
  For the three months ending March 31, 2016              
    Net sales as reported   $   20,258            
    Net impact of divestitures excluding currency       -             
      Adjusted net sales       $   20,258        
                   
     Adjusted net sales increase for the three months ending March 31, 2017    $   2,665     13 %  
                   
                   
Reconciliation between GAAP and Non-GAAP sales growth:              
  For the three months ending June 30, 2017              
    Net sales per guidance   $   25,400            
    Impact of currency exchange rate fluctuations       456            
    Net impact of acquisitions excluding currency       (1,200 )          
      Adjusted net sales       $   24,656        
                   
  For the three months ending June 30, 2016              
    Net sales as reported   $   22,389            
    Net impact of divestitures excluding currency       -             
      Adjusted net sales       $   22,389        
                   
     Adjusted net sales increase for the three months ending June 30, 2017    $   2,267     10 %  
                   
                   
Reconciliation between GAAP and Non-GAAP sales growth:              
  For the year ending December 31, 2017              
    Net sales per guidance   $   100,500            
    Impact of currency exchange rate fluctuations       988            
    Net impact of acquisitions excluding currency       (4,476 )          
      Adjusted net sales       $   97,012        
                   
  For the year ending December 31, 2016              
    Net sales as reported   $   89,151            
    Net impact of divestitures excluding currency       -             
      Adjusted net sales       $   89,151        
                   
     Adjusted net sales increase for the year ending December 31, 2017      $   7,861     9 %  
                   
                   
                   
        For the three months ended      
        March 31, 2017   March 31, 2016      
Reconciliation between GAAP and Non-GAAP EBITDA              
  Net income as reported   $   3,219     $   2,166        
  Interest income       (20 )       (15 )      
  Amortization and depreciation expense       979         881        
  Provision for income taxes       1,020         1,099        
                   
  EBITDA   $   5,198     $   4,131        
                   
  EBITDA percentage increase         26 %      
                   

 

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

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