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Press Release

LeMaitre Q1 2021 Financial Results

April 29, 2021 at 4:06 PM EDT

BURLINGTON, Mass., April 29, 2021 (GLOBE NEWSWIRE) -- LeMaitre (Nasdaq:LMAT), a provider of vascular devices, implants and services, today reported Q1 2021 results and announced an $0.11/share quarterly dividend.

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 Americas (+29%) and Asia/Pac (+25%) while Europe/Middle East/Africa (-5%) declined. Sales growth was led by Artegraft, valvulotomes and embolectomy catheters, and was partially offset by CE Mark and COVID related issues.

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 $15.9mm in Q1 2021 (vs. $16.1mm) due to lower headcount and decreased travel.

George LeMaitre, Chairman and CEO, said, “Double-digit sales growth and restrained expenses enabled 83% bottom-line growth. And our 22% op. margin enabled us to improve the balance sheet.”

Business Outlook

  Guidance
Q2 2021 Sales $37.0mm - $40.0mm
(Midpoint: $38.5mm, +55%)
Q2 2021 Gross Margin 66.7%
Q2 2021 Operating Income $8.0mm - $10.0mm
(Midpoint: $9.0mm, +85%)
Q2 2021 Earnings Per Share $0.28 - $0.36
(Midpoint: $0.32, +86%)

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 February 23, 2021, the Company's Board of Directors authorized the repurchase of up to $15.0mm of the Company’s common stock. The repurchase program may be suspended or discontinued at any time and will conclude on February 22, 2022, unless extended by the Board.

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 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 of the lapse in CE mark approval for certain of our devices; the final closure of an audit by one of our notified bodies in support of the issuance and/or maintenance of CE marks covering certain of our products or the failure of such audit to be successfully closed; 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.

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

LEMAITRE VASCULAR, INC (NASDAQ: LMAT)      
CONDENSED CONSOLIDATED BALANCE SHEETS      
(amounts in thousands)      
         
         
    March 31, 2021   December 31, 2020
    (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  
Goodwill   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 )
  Treasury stock   (11,690 )     (11,602 )
Total stockholders' equity   177,525       172,572  
         
Total liabilities and stockholders' equity $ 247,369     $ 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
    March 31, 2021   March 31, 2020
         
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  


  LEMAITRE VASCULAR, INC (NASDAQ: LMAT)        
  SELECTED NET SALES INFORMATION          
  (amounts in thousands)              
  (unaudited)              
                 
                 
    For the three months ended
    March 31, 2021   March 31, 2020
    $   %   $   %
Net Sales by Geography              
  Americas $ 23,699   66 %   $ 18,336   60 %
  Europe/Middle East/Africa   9,862   27 %     10,350   34 %
  Asia/Pacific Rim   2,322   7
%     1,865   6 %
Total Net Sales $ 35,883   100 %   $ 30,551   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 March 31, 2021              
    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 March 31, 2020              
    Net sales as reported $ 30,551          
    Adjusted net sales       $ 30,551    
                   
    Adjusted net sales decrease for the three months ended March 31, 2021       $ (1,447)   -5%
                   
                   
Reconciliation between GAAP and non-GAAP debt outstanding:              
  As of March 31, 2021              
    Debt as reported $ 31,235          
    Add back unamortized deferred financing costs   765          
    Adjusted debt outstanding       $ 32,000    
                   
                   
      For the three months ended    
        March 31, 2021     March 31, 2020    
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%    

 

 


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Source: LeMaitre Vascular, Inc.