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
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
Chairman & CEO
Business Outlook
| Guidance | |
| Q4 2020 Sales | (Midpoint:+19%) |
| Q4 2020 Gross Margin | 65.5% |
| Q4 2020 Operating Income | (Midpoint:+70%) |
| Q4 2020 Earnings Per Share | (Midpoint: +32%) |
| 2020 Sales | (Midpoint:+9%) |
| 2020 Gross Margin | 65.6% |
| 2020 Operating Income | (Midpoint:+30%) |
| 2020 Earnings Per Share | (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
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
| CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||||
| (amounts in thousands) | ||||||||||
| (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 | ||||||||
| 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 | ) | ||||||
| (11,323 | ) | (11,032 | ) | |||||||
| Total stockholders' equity | 160,983 | 148,141 | ||||||||
| Total liabilities and stockholders' equity | $ | 261,569 | $ | 188,341 | ||||||
| CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS | ||||||||||||||||
| (amounts in thousands, except per share amounts) | ||||||||||||||||
| (unaudited) | ||||||||||||||||
| For the three months ended | For the nine months ended | |||||||||||||||
| 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 | ||||||||
| SELECTED NET SALES INFORMATION | |||||||||||||||||||||||||
| (amounts in thousands) | |||||||||||||||||||||||||
| (unaudited) | |||||||||||||||||||||||||
| For the three months ended | For the nine months ended | ||||||||||||||||||||||||
| $ | % | $ | % | $ | % | $ | % | ||||||||||||||||||
| $ | 24,184 | 66 | % | $ | 17,698 | 61 | % | $ | 57,462 | 63 | % | $ | 51,584 | 59 | % | ||||||||||
| 10,039 | 28 | % | 9,452 | 32 | % | 28,339 | 31 | % | 29,479 | 34 | % | ||||||||||||||
| Asia/ |
2,193 | 6 | % | 1,950 | 7 | % | 6,017 | 6 | % | 5,999 | 7 | % | |||||||||||||
| Total |
$ | 36,416 | 100 | % | $ | 29,100 | 100 | % | $ | 91,818 | 100 | % | $ | 87,062 | 100 | % | |||||||||
| NON-GAAP FINANCIAL MEASURES | |||||||||||||||||||
| (amounts in thousands) | |||||||||||||||||||
| (unaudited) | |||||||||||||||||||
| Reconciliation between GAAP and Non-GAAP sales growth: | |||||||||||||||||||
| For the three months ended |
|||||||||||||||||||
| 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 |
|||||||||||||||||||
| Net sales as reported | $ | 29,100 | |||||||||||||||||
| Adjusted net sales | $ | 29,100 | |||||||||||||||||
| Adjusted net sales increase for the three months ended |
$ | (752 | ) | -3 | % | ||||||||||||||
| Reconciliation between GAAP and non-GAAP debt outstanding: | |||||||||||||||||||
| As of |
|||||||||||||||||||
| 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 | ||||||||||||||||||
| 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:J.J. Pellegrino , CFO,LeMaitre Vascular 781-425-1691 jjpellegrino@lemaitre.com
Source: LeMaitre Vascular, Inc.