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LeMaitre Q3 2017 Sales $24.8mm (+7%), Record EPS $0.25 (+49%)

10/26/17

BURLINGTON, Mass., Oct. 26, 2017 (GLOBE NEWSWIRE) -- LeMaitre Vascular, Inc. (Nasdaq:LMAT), a provider of vascular devices, implants and services, today reported Q3 2017 results, provided guidance, and announced a $0.055/share dividend.

Q3 2017 Results

  • Sales of $24.8mm, +7% vs. Q3 2016
  • Operating income of $5.1mm, -5%
  • Record net income of $5.0mm, +56%
  • Record earnings per diluted share of $0.25, +49%
  • Cash & equivalents up $7.4mm during the quarter to a record $37.5mm          

Q3 2017 sales of $24.8mm increased 7% (-2% organic) vs. Q3 2016.  Allografts and shunts led growth.  Sales in the Americas were up 6% while international sales increased 8%. 

Gross margin decreased to 70.8% in Q3 2017 from 73.3% in Q3 2016, primarily due to product and geographic mix.

Operating expenses in Q3 2017 were $12.5mm, a 7% increase vs. the year-earlier quarter, driven largely by increased general and administrative expenses.

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 (7/27/2017)  Current Guidance
 Q4  2017 Sales N/A $25.8mm - $26.6mm
  (Midpoint: +13% reported, +8% organic) 
Q4  2017 Gross Margin N/A 70.3%
 Q4  2017 Operating Income N/A $5.7mm - $6.3mm
(Midpoint: +53%)
 Q4  2017 Earnings Per Diluted Share    N/A $0.19 - $0.21
(Midpoint: +49%)
 2017 Sales $101.9mm
(+14% reported, +8% organic)
$100.6mm - $101.4mm
(Midpoint: +13% reported, +7% organic)
 2017 Gross Margin 70.0% 70.2%
 2017 Operating Income $21.1mm (+29%) $20.4mm - $21.0mm
(Midpoint: +27%)
 2017 Earnings Per Diluted Share $0.79 (+44%) $0.83 - $0.85
(Midpoint: +53%)
     

Quarterly Dividend

On October 24, 2017, the Company's Board of Directors approved a quarterly dividend of $0.055/share of common stock. The dividend will be paid December 7, 2017 to shareholders of record on November 22, 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 99745674. 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 Q4 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.

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

             
LEMAITRE VASCULAR, INC (NASDAQ: LMAT)          
CONDENSED CONSOLIDATED BALANCE SHEETS           
(amounts in thousands)          
             
             
       September 30, 2017    December 31, 2016  
      (unaudited)      
Assets          
             
Current assets:          
    Cash and cash equivalents   $   37,514     $   24,288    
  Accounts receivable, net       13,553         13,191    
  Inventory       21,095         19,578    
  Prepaid expenses and other current assets       3,480         1,970    
Total current assets       75,642         59,027    
             
Property and equipment, net       11,367         8,012    
Goodwill       23,850         23,426    
Other intangibles, net       8,669         9,897    
Deferred tax assets       1,562         1,399    
Other assets       179         163    
             
Total assets   $   121,269     $   101,924    
             
             
Liabilities and stockholders' equity          
             
Current liabilities:          
  Accounts payable   $   1,617     $   1,217    
  Accrued expenses       8,803         8,804    
  Acquisition-related obligations        1,690         461    
Total current liabilities       12,110         10,482    
             
Deferred tax liabilities       1,948         1,941    
Other long-term liabilities       1,098         2,001    
Total liabilities       15,156         14,424    
             
Stockholders' equity          
  Common stock       207         200    
  Additional paid-in capital       92,685         85,378    
  Retained earnings        25,109         15,335    
  Accumulated other comprehensive loss       (2,280 )       (4,583 )  
  Treasury stock       (9,608 )       (8,830 )  
Total stockholders' equity       106,113         87,500    
             
Total liabilities and stockholders' equity   $   121,269     $   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   For the nine months ended  
    September 30, 2017   September 30, 2016   September 30, 2017   September 30, 2016  
                   
Net sales $   24,822   $   23,216     $   74,714     $   65,863    
Cost of sales     7,245       6,197         22,269         19,121    
                     
Gross profit     17,577       17,019         52,445         46,742    
                   
Operating expenses:                
  Sales and marketing     6,201       6,541         19,754         19,353    
  General and administrative     4,562       3,595         12,857         10,343    
  Research and development     1,761       1,539         5,053         4,619    
                   
Total operating expenses     12,524       11,675         37,664         34,315    
                   
Income from operations     5,053       5,344         14,781         12,427    
                   
Other income:                
  Other income (expense), net     20       (37 )       (3 )       (19 )  
                   
Income before income taxes     5,073       5,307         14,778         12,408    
                   
Provision for income taxes     31       2,078         1,885         4,415    
                   
Net income  $   5,042   $   3,229     $   12,893     $   7,993    
                   
Earnings per share of common stock                
  Basic $   0.26   $   0.17     $   0.68     $   0.43    
  Diluted $   0.25   $   0.17     $   0.65     $   0.42    
                   
Weighted - average shares outstanding:                
  Basic     19,124       18,524         18,859         18,423    
  Diluted     20,147       19,248         19,970         19,103    
                   
                   
Cash dividends declared per common share  $   0.055   $   0.045     $   0.165     $   0.135    
                   

 

                                   
  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, 2017   September 30, 2016   September 30, 2017   September 30, 2016  
    $   %   $   %   $   %   $   %  
Net Sales by Geography                                
  Americas $   15,442   62 %   $   14,528   63 %   $   46,511   62 %   $   39,594   60 %  
  International     9,380   38 %       8,688   37 %       28,203   38 %       26,269   40 %  
Total Net Sales $   24,822   100 %   $   23,216   100 %   $   74,714   100 %   $   65,863   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 September 30, 2017                  
    Net sales as reported   $   24,822                
    Impact of currency exchange rate fluctuations       (327 )              
    Net impact of acquisitions excluding currency       (1,639 )              
      Adjusted net sales       $   22,856            
                       
  For the three months ending September 30, 2016                  
    Net sales as reported   $   23,216                
    Net impact of divestitures excluding currency       -                 
      Adjusted net sales       $   23,216            
                       
     Adjusted net sales decrease for the three months ending September 30, 2017    $   (360 )     -2 %      
                       
                       
Reconciliation between GAAP and Non-GAAP sales growth:   Mid-point of Range            
  For the three months ending December 31, 2017                  
    Net sales per guidance   $   26,240                
    Impact of currency exchange rate fluctuations       (668 )              
    Net impact of acquisitions excluding currency       (531 )              
      Adjusted net sales       $   25,041            
                       
  For the three months ending December 31, 2016                  
    Net sales as reported   $   23,288                
    Net impact of divestitures excluding currency       -                 
      Adjusted net sales       $   23,288            
                       
     Adjusted net sales increase for the three months ending December 31, 2017      $   1,753       8 %      
                       
                       
Reconciliation between GAAP and Non-GAAP sales growth:   Mid-point of Range            
  For the year ending December 31, 2017                  
    Net sales per guidance   $   100,954                
    Impact of currency exchange rate fluctuations       (582 )              
    Net impact of acquisitions excluding currency       (5,188 )              
      Adjusted net sales       $   95,184            
                       
  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      $   6,033       7 %      
                       
                       
                       
        For the three months ended   For the nine months ended  
        September 30, 2017   September 30, 2016   September 30, 2017   September 30, 2016  
Reconciliation between GAAP and Non-GAAP EBITDA                  
  Net income as reported   $   5,042     $   3,229     $   12,893     $   7,993    
  Interest income       (48 )       (24 )       (100 )       (55 )  
  Amortization and depreciation expense       1,004         846         2,966         2,658    
  Provision for income taxes       31         2,078         1,885         4,415    
                       
  EBITDA   $   6,029     $   6,129     $   17,644     $   15,011    
                       
  EBITDA percentage increase (decrease)         -2 %         18 %  
                       

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Source: LeMaitre Vascular, Inc.