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Press Release

LeMaitre Q2 2021 Financial Results

July 29, 2021 at 4:05 PM EDT

BURLINGTON, Mass., July 29, 2021 (GLOBE NEWSWIRE) -- LeMaitre (Nasdaq:LMAT), a provider of vascular devices, implants and services, today reported Q2 2021 results, announced an $0.11/share quarterly dividend and provided guidance.

Q2 2021 Financial Results

  • Sales of $40.7mm, +64% (+35% organic) vs. Q2 2020
  • Op. income of $11.1mm, +128%
  • Op. margin of 27%
  • Net income of $8.3mm, +137%
  • Earnings of $0.40 per diluted share, +131%
  • EBITDA of $13.3mm, +108%

Q2 2021 sales were driven by Artegraft ($6.7mm), valvulotomes, carotid shunts, patches and allografts. By geography, the Americas was up 83%, Europe/Middle East/Africa +36% and Asia/Pac +30%.

The gross margin decline to 65.8% (vs. 68.5% in Q2 2020) was driven by changes in product mix, manufacturing inefficiencies from 2020 personnel reductions, and inventory write-downs.

Q2 2021 op. income increased 128% to $11.1mm in Q2 2021, more than 1/3 of which was contributed by Artegraft. Op. income was also up due to restrained headcount growth.

On July 16 2021, the Company completed a $54.5mm follow-on public stock offering. $23.0mm of the net proceeds were used to repay long-term debt, with the remainder to be used for general corporate purposes.

George LeMaitre, Chairman and CEO, said, “The addition of Artegraft and restrained op. expenses increased profits 128%.”

Business Outlook

Item Q3 2021 Guidance Q4 2021 Guidance FY 2021 Guidance
Sales $38.3mm - $40.3mm
(Midpoint: $39.3, +8%)
$39.3mm - $41.3mm
(Midpoint: $40.3, +7%)
$154.1mm - $158.1mm
(Midpoint: $156.1, +21%)
Gross Margin 66.6% 67.5% 66.6%
Op. Income $9.3mm - $10.6mm
(Midpoint: $10.0mm, -1%)
$9.3mm - $10.7mm
(Midpoint: $10.0mm, +5%)
$37.7mm - $40.4mm
(Midpoint: $39.0mm, +36%)
EPS $0.30 - $0.35
(Midpoint: $0.33, -11%)
$0.33 - $0.38
(Midpoint: $0.35, +4%)
$1.30 - $1.40
(Midpoint: $1.35, +30%)

Quarterly Dividend

On July 22, 2021, the Company's Board of Directors approved a quarterly dividend of $0.11/share of common stock. The dividend will be paid on September 9, 2021 to shareholders of record on August 26, 2021.

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. The conference call may also be accessed by dialing 844-239-5284 (+1 512-961-6497 for international callers), using passcode 1899078. 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 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.

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 foreign regulatory requirements to market and sell our products outside the United States; the duration and severity of the impact of COVID-19 on the global economy, our customers, our suppliers and our company; 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)          
             
             
      June 30, 2021   December 31, 2020  
      (unaudited)      
Assets          
             
Current assets:          
  Cash and cash equivalents   $ 21,541     $ 26,764    
  Short-term marketable securities     215       214    
  Accounts receivable, net     20,741       19,552    
  Inventory and other deferred costs     44,751       45,115    
  Prepaid expenses and other current assets     2,772       2,618    
Total current assets     90,020       94,263    
             
Property and equipment, net     15,794       15,036    
Right-of-use leased assets     16,244       16,066    
Goodwill     65,945       65,945    
Other intangibles, net     55,777       58,905    
Deferred tax assets     1,649       1,686    
Other assets     1,076       909    
             
Total assets   $ 246,505     $ 252,810    
             
             
Liabilities and stockholders' equity          
             
Current liabilities:          
  Current portion of long-term debt   $ 3,000     $ 2,500    
  Accounts payable     2,059       2,394    
  Accrued expenses     13,766       17,525    
  Acquisition-related obligations     701       772    
  Lease liabilities - short-term     1,954       1,954    
Total current liabilities     21,480       25,145    
             
Long-term debt     19,448       35,532    
Lease liabilities - long-term     15,069       14,791    
Deferred tax liabilities     125       127    
Other long-term liabilities     4,550       4,643    
Total liabilities     60,672       80,238    
             
Stockholders' equity          
  Common stock     222       221    
  Additional paid-in capital     119,291       114,924    
  Retained earnings     80,253       70,554    
  Accumulated other comprehensive loss     (2,243 )     (1,525 )  
  Treasury stock     (11,690 )     (11,602 )  
Total stockholders' equity     185,833       172,572    
             
Total liabilities and stockholders' equity   $ 246,505     $ 252,810    
             



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, 2021   June 30, 2020   June 30, 2021   June 30, 2020
                 
Net sales $ 40,670     $ 24,851     $ 76,553     $ 55,402  
Cost of sales   13,909       7,822       25,993       17,890  
                 
Gross profit   26,761       17,029       50,560       37,512  
                 
Operating expenses:              
  Sales and marketing   6,803       4,686       13,269       12,631  
  General and administrative   6,200       5,332       12,744       10,523  
  Research and development   2,652       2,139       5,496       5,133  
                 
Total operating expenses   15,655       12,157       31,509       28,287  
                 
Income from operations   11,106       4,872       19,051       9,225  
                 
Other income (expense), net              
  Interest income   1       74       2       179  
  Interest expense   (495 )     (66 )     (1,072 )     (66 )
  Foreign currency gain (loss)   (157 )     (113 )     (33 )     (291 )
                 
Income before income taxes   10,455       4,767       17,948       9,047  
                 
Provision for income taxes   2,156       1,267       3,720       2,373  
                 
Net income $ 8,299     $ 3,500     $ 14,228     $ 6,674  
                 
Earnings per share of common stock              
  Basic $ 0.40     $ 0.17     $ 0.69     $ 0.33  
  Diluted $ 0.40     $ 0.17     $ 0.68     $ 0.33  
                 
Weighted - average shares outstanding:              
  Basic   20,611       20,180       20,579       20,174  
  Diluted   20,959       20,399       20,900       20,415  
                 
                 
Cash dividends declared per common share  $ 0.110     $ 0.095     $ 0.220     $ 0.190  
                 



                                 
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, 2021   June 30, 2020   June 30, 2021   June 30, 2020
    $   %   $   %   $   %   $   %
Net Sales by Geography                              
  Americas $ 27,329   67 %   $ 14,942   60 %   $ 51,028   67 %   $ 33,278   60 %
  Europe/Middle East/Africa   10,803   27 %     7,950   32 %     20,665   27 %     18,300   33 %
  Asia/Pacific Rim   2,538   6 %     1,959   8 %     4,860   6 %     3,824   7 %
Total Net Sales $ 40,670   100 %   $ 24,851   100 %   $ 76,553   100 %   $ 55,402   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 June 30, 2021                  
    Net sales as reported   $ 40,670                
    Impact of currency exchange rate fluctuations     (1,186 )              
    Net impact of acquisitions excluding currency     (5,982 )              
    Adjusted net sales       $ 33,502            
                       
  For the three months ended June 30, 2020                  
    Net sales as reported   $ 24,851                
    Adjusted net sales       $ 24,851            
                       
    Adjusted net sales increase for the three months ended June 30, 2021   $ 8,651       35 %      
                       
                       
Reconciliation between GAAP and non-GAAP debt outstanding:                  
  As of June 30, 2021                  
    Debt as reported   $ 22,448                
    Add back unamortized deferred financing costs     552                
    Adjusted debt outstanding       $ 23,000            
                       
                       
        For the three months ended   For the six months ended  
        June 30, 2021   June 30, 2020   June 30, 2021   June 30, 2020  
Reconciliation between GAAP and Non-GAAP EBITDA                  
  Net income as reported   $ 8,299     $ 3,500     $ 14,228     $ 6,674    
  Interest (income) expense, net     494       (8 )     1,070       (113 )  
  Amortization and depreciation expense     2,389       1,639       4,777       3,177    
  Provision for income taxes     2,156       1,267       3,720       2,373    
                       
  EBITDA   $ 13,338     $ 6,398     $ 23,795     $ 12,111    
                       
  EBITDA percentage increase         108 %         96 %  
                       


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

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Source: LeMaitre Vascular, Inc.