Q4 2014 results included:
-
Record sales of
$18 .7mm, +4% -
Record EBITDA of
$3 .6mm, +85% -
Record operating income of
$2 .7mm, +134% - Record operating margin of 15%
-
Net income of
$1 .9mm, +157% -
Earnings of
$0.11 per diluted share, +120%
Improved profitability resulted from higher sales, a higher gross margin and lower operating expenses.
Q4 2014 record sales of
Gross margin in Q4 2014 increased to 68.7% from 66.7% in Q4 2013. This 200 basis point increase was largely due to manufacturing efficiencies and average selling price increases.
Total operating expenses in Q4 2014 were
Full-year 2014 sales were
Chairman and CEO
Quarterly Dividend
On
Business Outlook
The Company expects Q1 2015 sales of
The Company expects full-year 2015 sales of
Conference Call Reminder
Management will conduct a conference call at
A reconciliation of GAAP to non-GAAP ("organic") results is included in the tables attached to this release.
About
LeMaitre and the
For more information about the Company, please visit http://www.lemaitre.com.
Use of Non-GAAP Financial Measures
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 Q1 2015 and 2015 sales and operating income levels. 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; the risk that the XenoSure product is not as accretive and does not achieve the gross margins currently anticipated by the Company; 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
Financial Statements
LEMAITRE VASCULAR, INC (NASDAQ: LMAT) | ||
CONDENSED CONSOLIDATED BALANCE SHEETS | ||
(amounts in thousands) | ||
December 31, 2014 | December 31, 2013 | |
(unaudited) | ||
Assets | ||
Current assets: | ||
Cash and cash equivalents | $ 18,692 | $ 14,711 |
Accounts receivable, net | 10,803 | 10,590 |
Inventory | 16,714 | 13,255 |
Prepaid expenses and other current assets | 2,379 | 3,169 |
Total current assets | 48,588 | 41,725 |
Property and equipment, net | 6,878 | 5,810 |
Goodwill | 17,281 | 15,031 |
Other intangibles, net | 7,157 | 6,144 |
Deferred tax assets | 1,418 | 1,615 |
Other assets | 170 | 167 |
Total assets | $ 81,492 | $ 70,492 |
Liabilities and stockholders' equity | ||
Current liabilities: | ||
Accounts payable | $ 1,127 | $ 1,235 |
Accrued expenses | 7,479 | 7,993 |
Acquisition-related obligations | 1,435 | 992 |
Total current liabilities | 10,041 | 10,220 |
Deferred tax liabilities | 2,919 | 3,461 |
Other long-term liabilities | 325 | 249 |
Total liabilities | 13,285 | 13,930 |
Stockholders' equity | ||
Common stock | 188 | 170 |
Additional paid-in capital | 75,389 | 65,354 |
Retained earnings (accumulated deficit) | 3,248 | (667) |
Accumulated other comprehensive loss | (2,365) | (253) |
Treasury stock | (8,253) | (8,042) |
Total stockholders' equity | 68,207 | 56,562 |
Total liabilities and stockholders' equity | $ 81,492 | $ 70,492 |
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 year ended | |||
December 31, 2014 | December 31, 2013 | December 31, 2014 | December 31, 2013 | |
Net sales | $ 18,681 | $ 17,916 | $ 71,097 | $ 64,549 |
Cost of sales | 5,853 | 5,960 | 22,666 | 19,434 |
Gross profit | 12,828 | 11,956 | 48,431 | 45,115 |
Operating expenses: | ||||
Sales and marketing | 5,230 | 5,865 | 22,087 | 22,143 |
General and administrative | 3,513 | 3,345 | 13,889 | 12,576 |
Research and development | 1,081 | 1,402 | 4,671 | 5,243 |
Medical device excise tax | 171 | 172 | 689 | 635 |
Restructuring charges | 26 | -- | 526 | -- |
Impairment charges | 68 | -- | 229 | -- |
Total operating expenses | 10,089 | 10,784 | 42,091 | 40,597 |
Income from operations | 2,739 | 1,172 | 6,340 | 4,518 |
Other income (loss): | ||||
Interest income (expense), net | (46) | 6 | (16) | (8) |
Other income (loss), net | -- | (80) | (4) | (182) |
Income before income taxes | 2,693 | 1,098 | 6,320 | 4,328 |
Provision for income taxes | 777 | 352 | 2,405 | 1,126 |
Net income | $ 1,916 | $ 746 | $ 3,915 | $ 3,202 |
Earnings per share of common stock | ||||
Basic | $ 0.11 | $ 0.05 | $ 0.24 | $ 0.21 |
Diluted | $ 0.11 | $ 0.05 | $ 0.23 | $ 0.20 |
Weighted - average shares outstanding: | ||||
Basic | 17,371 | 15,455 | 16,614 | 15,317 |
Diluted | 17,713 | 15,921 | 17,008 | 15,764 |
Cash dividends declared per common share | $ 0.035 | $ 0.030 | $ 0.140 | $ 0.120 |
LEMAITRE VASCULAR, INC (NASDAQ: LMAT) | ||||||||
SELECTED NET SALES INFORMATION | ||||||||
(amounts in thousands) | ||||||||
(unaudited) | ||||||||
For the three months ended | For the year ended | |||||||
December 31, 2014 | December 31, 2013 | December 31, 2014 | December 31, 2013 | |||||
$ | % | $ | % | $ | % | $ | % | |
Net Sales by Geography | ||||||||
Americas | $ 10,936 | 59% | $ 11,005 | 61% | $ 43,502 | 61% | $ 41,140 | 64% |
International | 7,745 | 41% | 6,911 | 39% | 27,595 | 39% | 23,409 | 36% |
Total Net Sales | $ 18,681 | 100% | $ 17,916 | 100% | $ 71,097 | 100% | $ 64,549 | 100% |
For the three months ended | For the year ended | |||||||
December 31, 2014 | December 31, 2013 | December 31, 2014 | December 31, 2013 | |||||
$ | % | $ | % | $ | % | $ | % | |
Net Sales by Country | ||||||||
United States | $ 10,324 | 55% | $ 10,420 | 58% | $ 41,545 | 58% | $ 39,240 | 61% |
Germany | 2,087 | 11% | 1,773 | 10% | 7,639 | 11% | 6,939 | 11% |
Japan | 505 | 3% | 635 | 4% | 2,209 | 3% | 2,413 | 4% |
Other countries | 5,765 | 31% | 5,088 | 28% | 19,704 | 28% | 15,957 | 24% |
Total Net Sales | $ 18,681 | 100% | $ 17,916 | 100% | $ 71,097 | 100% | $ 64,549 | 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 December 31, 2014 | ||||
Net sales as reported | $ 18,681 | |||
Impact of currency exchange rate fluctuations | 670 | |||
Net impact of acquisitions and distributed sales excluding currency | (1,033) | |||
Adjusted net sales | $ 18,318 | |||
For the three months ending December 31, 2013 | ||||
Net sales as reported | $ 17,916 | |||
Net impact of divestures excluding currency | (6) | |||
Adjusted net sales | $ 17,910 | |||
Adjusted net sales increase for the three months ending December 31, 2014 | $ 408 | 2% | ||
Reconciliation between GAAP and Non-GAAP sales growth: | ||||
For the year ending December 31, 2014 | ||||
Net sales as reported | $ 71,097 | |||
Impact of currency exchange rate fluctuations | 388 | |||
Net impact of acquisitions and distributed sales excluding currency | (3,214) | |||
Adjusted net sales | $ 68,271 | |||
For the year ending December 31, 2013 | ||||
Net sales as reported | $ 64,549 | |||
Net impact of divestures excluding currency | (6) | |||
Adjusted net sales | $ 64,543 | |||
Adjusted net sales increase for the year ending December 31, 2014 | $ 3,728 | 6% | ||
Reconciliation between GAAP and Non-GAAP sales growth: | ||||
For the three months ending March 31, 2015 | ||||
Net sales per guidance | $ 17,800 | |||
Impact of currency exchange rate fluctuations | 1,020 | |||
Net impact of acquisitions and distributed sales excluding currency | (975) | |||
Adjusted net sales | $ 17,845 | |||
For the three months ending March 31, 2014 | ||||
Net sales as reported | $ 16,754 | |||
Net impact of divestures excluding currency | (19) | |||
Adjusted net sales | $ 16,735 | |||
Adjusted net sales increase for the three months ending March 31, 2015 | $ 1,110 | 7% | ||
Reconciliation between GAAP and Non-GAAP sales growth: | ||||
For the year ending December 31, 2015 | ||||
Net sales per guidance | $ 74,500 | |||
Impact of currency exchange rate fluctuations | 3,700 | |||
Net impact of acquisitions and distributed sales excluding currency | (2,725) | |||
Adjusted net sales | $ 75,475 | |||
For the year ending December 31, 2014 | ||||
Net sales as reported | $ 71,097 | |||
Net impact of divestures excluding currency | (76) | |||
Adjusted net sales | $ 71,021 | |||
Adjusted net sales increase for the year ending December 31, 2015 | $ 4,454 | 6% | ||
Reconciliation between GAAP and Non-GAAP sales growth - Excluding changes in foreign currency: | ||||
For the three months ending March 31, 2015 | ||||
Net sales per guidance | $ 17,800 | |||
Impact of currency exchange rate fluctuations | 1,020 | |||
Adjusted net sales | $ 18,820 | |||
For the three months ending March 31, 2014 | ||||
Net sales as reported | $ 16,754 | |||
Adjusted net sales increase for the three months ending March 31, 2015 | $ 2,066 | 12% | ||
Reconciliation between GAAP and Non-GAAP sales growth - Excluding changes in foreign currency: | ||||
For the year ending December 31, 2015 | ||||
Net sales per guidance | $ 74,500 | |||
Impact of currency exchange rate fluctuations | 3,700 | |||
Adjusted net sales | $ 78,200 | |||
For the year ending December 31, 2014 | ||||
Net sales as reported | $ 71,097 | |||
Adjusted net sales increase for the year ending December 31, 2015 | $ 7,103 | 10% | ||
For the three months ended | For the year ended | |||
December 31, 2014 | December 31, 2013 | December 31, 2014 | December 31, 2013 | |
Reconciliation between GAAP and Non-GAAP EBITDA | ||||
Net Income, as reported | $ 1,916 | $ 746 | $ 3,915 | $ 3,202 |
Amortization and depreciation expense | 912 | 819 | 3,334 | 2,793 |
Interest income (expense), net | (46) | 6 | (16) | (8) |
Provision for income taxes | 777 | 352 | 2,405 | 1,126 |
EBITDA | $ 3,559 | $ 1,923 | $ 9,638 | $ 7,113 |
EBITDA percentage increase | 85% | 35% |
CONTACT:J.J. Pellegrino Chief Financial OfficerLeMaitre Vascular, Inc. 781-425-1691 jpellegrino@lemaitre.com