Q1 2021 Results
- Sales of $35.9mm, +17% (-5% organic) vs. Q1 2020
- Op. income of $7.9mm, +83%
- Op. margin of 22%
- Net income of
$5 .9mm, +87% - Earnings of
$0 .28 per diluted share, +83% - EBITDA of
$10 .5mm, +83% - Debt paid down
$7 .0mm to$32 .0mm
Sales grew in the
The gross margin decreased to 66.3% in Q1 2021 (vs. 67.0% in Q1 2020) primarily due to factory transitions and manufacturing inefficiencies. Operating expenses decreased 2% to
Business Outlook
| Guidance | |
| Q2 2021 Sales | (Midpoint: |
| Q2 2021 Gross Margin | 66.7% |
| Q2 2021 Operating Income | (Midpoint: |
| Q2 2021 Earnings Per Share | (Midpoint: |
Quarterly Dividend
On April 27, 2021, the Company's Board of Directors approved a quarterly dividend of $0.11/share of common stock. The dividend will be paid on June 3, 2021 to shareholders of record on May 19, 2021.
Share Repurchase Program
On
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 7316629. 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.
The Company has also reported non-GAAP outstanding debt, which takes into account 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
CONTACT:
781-425-1691
jjpellegrino@lemaitre.com
| CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||
| (amounts in thousands) | ||||||||
| (unaudited) | ||||||||
| Assets | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 23,525 | $ | 26,764 | ||||
| Short-term marketable securities | 214 | 214 | ||||||
| Accounts receivable, net | 20,126 | 19,552 | ||||||
| Inventory and other deferred costs | 45,071 | 45,115 | ||||||
| Prepaid expenses and other current assets | 1,721 | 2,618 | ||||||
| Total current assets | 90,657 | 94,263 | ||||||
| Property and equipment, net | 15,200 | 15,036 | ||||||
| Right-of-use leased assets | 15,478 | 16,066 | ||||||
| 65,945 | 65,945 | |||||||
| Other intangibles, net | 57,339 | 58,905 | ||||||
| Deferred tax assets | 1,640 | 1,686 | ||||||
| Other assets | 1,110 | 909 | ||||||
| Total assets | $ | 247,369 | $ | 252,810 | ||||
| Liabilities and stockholders' equity | ||||||||
| Current liabilities: | ||||||||
| Current portion of long-term debt | $ | 2,750 | $ | 2,500 | ||||
| Accounts payable | 2,561 | 2,394 | ||||||
| Accrued expenses | 14,365 | 17,525 | ||||||
| Acquisition-related obligations | 776 | 772 | ||||||
| Lease liabilities - short-term | 1,848 | 1,954 | ||||||
| Total current liabilities | 22,300 | 25,145 | ||||||
| Long-term debt | 28,485 | 35,532 | ||||||
| Lease liabilities - long-term | 14,360 | 14,791 | ||||||
| Deferred tax liabilities | 124 | 127 | ||||||
| Other long-term liabilities | 4,575 | 4,643 | ||||||
| Total liabilities | 69,844 | 80,238 | ||||||
| Stockholders' equity | ||||||||
| Common stock | 221 | 221 | ||||||
| Additional paid-in capital | 117,236 | 114,924 | ||||||
| Retained earnings | 74,221 | 70,554 | ||||||
| Accumulated other comprehensive loss | (2,463 | ) | (1,525 | ) | ||||
| (11,690 | ) | (11,602 | ) | |||||
| Total stockholders' equity | 177,525 | 172,572 | ||||||
| Total liabilities and stockholders' equity | $ | 247,369 | $ | 252,810 | ||||
| CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS | ||||||||
| (amounts in thousands, except per share amounts) | ||||||||
| (unaudited) | ||||||||
| For the three months ended | ||||||||
| Net sales | $ | 35,883 | $ | 30,551 | ||||
| Cost of sales | 12,084 | 10,068 | ||||||
| Gross profit | 23,799 | 20,483 | ||||||
| Operating expenses: | ||||||||
| Sales and marketing | 6,466 | 7,945 | ||||||
| General and administrative | 6,544 | 5,191 | ||||||
| Research and development | 2,844 | 2,994 | ||||||
| Total operating expenses | 15,854 | 16,130 | ||||||
| Income from operations | 7,945 | 4,353 | ||||||
| Other income: | ||||||||
| Interest income | 1 | 105 | ||||||
| Interest expense | (577 | ) | - | |||||
| Foreign currency gain (loss) | 124 | (178 | ) | |||||
| Income before income taxes | 7,493 | 4,280 | ||||||
| Provision for income taxes | 1,564 | 1,106 | ||||||
| Net income | $ | 5,929 | $ | 3,174 | ||||
| Earnings per share of common stock | ||||||||
| Basic | $ | 0.29 | $ | 0.16 | ||||
| Diluted | $ | 0.28 | $ | 0.16 | ||||
| Weighted - average shares outstanding: | ||||||||
| Basic | 20,546 | 20,168 | ||||||
| Diluted | 20,847 | 20,438 | ||||||
| Cash dividends declared per common share | $ | 0.110 | $ | 0.095 | ||||
| SELECTED NET SALES INFORMATION | ||||||||||||
| (amounts in thousands) | ||||||||||||
| (unaudited) | ||||||||||||
| For the three months ended | ||||||||||||
| $ | % | $ | % | |||||||||
| $ | 23,699 | 66 | % | $ | 18,336 | 60 | % | |||||
| 9,862 | 27 | % | 10,350 | 34 | % | |||||||
| Asia/ |
2,322 | 7 |
% | 1,865 | 6 | % | ||||||
| Total |
$ | 35,883 | 100 | % | $ | 30,551 | 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 | $ | 35,883 | ||||||||
| Impact of currency exchange rate fluctuations | (947) | |||||||||
| Net impact of acquisitions excluding currency | (5,832) | |||||||||
| Adjusted net sales | $ | 29,104 | ||||||||
| For the three months ended |
||||||||||
| Net sales as reported | $ | 30,551 | ||||||||
| Adjusted net sales | $ | 30,551 | ||||||||
| Adjusted net sales decrease for the three months ended |
$ | (1,447) | -5% | |||||||
| Reconciliation between GAAP and non-GAAP debt outstanding: | ||||||||||
| As of |
||||||||||
| Debt as reported | $ | 31,235 | ||||||||
| Add back unamortized deferred financing costs | 765 | |||||||||
| Adjusted debt outstanding | $ | 32,000 | ||||||||
| For the three months ended | ||||||||||
| Reconciliation between GAAP and Non-GAAP EBITDA | ||||||||||
| Net income as reported | $ | 5,929 | $ | 3,174 | ||||||
| Interest (income) expense, net | 576 | (105) | ||||||||
| Amortization and depreciation expense | 2,388 | 1,538 | ||||||||
| Provision for income taxes | 1,564 | 1,106 | ||||||||
| EBITDA | $ | 10,457 | $ | 5,713 | ||||||
| EBITDA percentage increase | 83% | |||||||||
Source: LeMaitre Vascular, Inc.