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Press Release

LeMaitre Q2 2022 Financial Results

July 28, 2022 at 4:05 PM EDT

BURLINGTON, Mass., July 28, 2022 (GLOBE NEWSWIRE) -- LeMaitre (Nasdaq:LMAT), a provider of vascular devices, implants and services, today reported Q2 2022 results, announced a $0.125/share quarterly dividend and provided guidance.

Q2 2022 Financial Results

  • Sales of $42.1mm, +4% (+8% organic) vs. Q2 2021
  • Gross margin of 66.0%
  • Op. income reported $5.8mm, -48%
  • Op. income ex. special charge $8.9mm, -20%
  • Earnings per diluted share reported $0.16, -60%
  • Earnings per diluted share ex. special charge $0.29, -26%
  • Cash and investments +$4.8mm to $75.7mm

Biologics drove Q2 2022 sales growth: XenoSure (+21%), allografts (+25%) and Artegraft (+11%). Q2 organic sales growth was led by EMEA (+11%) and APAC (+11%), while the Americas grew 6%. The strong dollar reduced sales by $1.7mm.

The gross margin increased to 66.0% in Q2 2022 (vs. 65.8%). The Company had 203 direct labor employees on staff as of June 30, up 54% year-over-year. The Company closed its St. Etienne factory in Q2 2022, resulting in a $3.1mm special charge.

Q2 2022 operating margin was 14%; excluding the $3.1mm special charge the operating margin was 21%. Excluding the special charge, Q2 operating expense growth was 21%, driven by a 26% larger salesforce on June 30 (111 reps) and regulatory expenses.

George LeMaitre, Chairman and CEO, said “Based on better-than-expected Q2 sales, we increased annual guidance to 10% organic growth. We also achieved several milestones: we opened a Seoul office, closed a French factory, filed for Chinese XenoSure cardiac approval and received the Omniflow II CE Mark.”

Business Outlook

  Q3 2022 Guidance Q4 2022 Guidance 2022 Full Year Guidance
Sales $39.0mm - $41.0mm
(Mid: $40.0mm, +4%, +10% Org.)
$41.2mm - $43.2mm
(Mid: $42.2mm, +7%, +11% Org.)
$162.7mm - $165.3mm
(Mid:$164.0mm, +6%, +10% Org.)
Gross Margin 66.7% 67.5% 66.5%
Op. Income $6.8mm - $8.2mm
(Mid: $7.5mm, -17%)
$8.5mm - $9.9mm
(Mid: $9.2mm, +10%)
$29.5mm - $31.2mm
(Mid $30.4mm, -17%)
Op. Income Ex-Spec. Charge - - $32.7mm - $34.4mm
(Mid: $33.6mm, -8%)
EPS $0.24 - $0.29
(Mid: $0.27, -10%)
$0.29 - $0.35
(Mid: $0.32, +15%)
$0.99 - $1.05
(Mid: $1.02, -19%)
EPS Ex-Spec. Charge - - $1.14 - $1.19
(Mid: $1.17, -7%)

Quarterly Dividend

On July 26, 2022, the Company's Board of Directors approved a quarterly dividend of $0.125/share of common stock. The dividend will be paid on September 8, 2022 to shareholders of record on August 25, 2022.

Share Repurchase Program

On February 22, 2022, the Company's Board of Directors authorized the repurchase of up to $20.0mm of the Company’s common stock. The repurchase program may be suspended or discontinued at any time and will conclude on February 22, 2023, 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. Access to the live call is available by registering online here. All registrants will receive dial-in information and a PIN allowing them to access the live call. The audio webcast can also be accessed live or via replay through a webcast at http://www.lemaitre.com/investor. 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 management believes that in order to better understand the Company's short- 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 operating income, operating margin, and EPS excluding special charge for Q2 2022 and guidance for operating income and EPS excluding special charge. 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 the aforementioned non-GAAP profitability measures 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 the presentation of operating income, operating margin and EPS excluding special charge for Q2 2022 and guidance for operating income and EPS excluding special charge provides an alternative and meaningful view of the Company’s profitability excluding the impact of the closure of the Company’s St. Etienne, France factory, a non-recurring event.

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 regulatory requirements to market and sell our products both in the U.S. and outside of the U.S.; 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)          
             
             
      June 30, 2022   December 31, 2021  
      (unaudited)      
Assets          
             
Current assets:          
  Cash and cash equivalents   $ 20,788     $ 13,855    
  Short-term marketable securities     54,895       56,104    
  Accounts receivable, net     21,542       19,631    
  Inventory and other deferred costs     47,192       46,104    
  Prepaid expenses and other current assets     3,243       4,189    
  Asset held for sale     826       -    
Total current assets     148,486       139,883    
             
Property and equipment, net     15,753       17,059    
Right-of-use leased assets     16,290       15,071    
Goodwill     65,945       65,945    
Other intangibles, net     49,598       52,710    
Deferred tax assets     2,369       1,566    
Other assets     984       568    
             
Total assets   $ 299,425     $ 292,802    
             
             
Liabilities and stockholders' equity          
             
Current liabilities:          
  Accounts payable   $ 2,844     $ 2,340    
  Accrued expenses     17,009       16,332    
  Acquisition-related obligations     1,758       1,271    
  Lease liabilities - short-term     1,794       1,870    
Total current liabilities     23,405       21,813    
             
Lease liabilities - long-term     15,420       14,067    
Deferred tax liabilities     64       70    
Other long-term liabilities     2,503       2,701    
Total liabilities     41,392       38,651    
             
Stockholders' equity          
  Common stock     235       235    
  Additional paid-in capital     184,605       181,630    
  Retained earnings     92,190       88,125    
  Accumulated other comprehensive loss     (6,444 )     (3,435 )  
  Treasury stock     (12,553 )     (12,404 )  
Total stockholders' equity     258,033       254,151    
             
Total liabilities and stockholders' equity   $ 299,425     $ 292,802    
             


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, 2022   June 30, 2021   June 30, 2022   June 30, 2021
                 
Net sales $ 42,108     $ 40,670     $ 81,669     $ 76,553  
Cost of sales   14,298       13,909       27,897       25,993  
                 
Gross profit   27,810       26,761       53,772       50,560  
                 
Operating expenses:              
  Sales and marketing   8,242       6,803       16,092       13,269  
  General and administrative   7,331       6,200       14,583       12,744  
  Research and development   3,346       2,652       6,278       5,496  
  Restructuring   3,107       -       3,107       -  
Total operating expenses   22,026       15,655       40,060       31,509  
                 
Income from operations   5,784       11,106       13,712       19,051  
                 
Other income (expense), net              
  Interest income   167       1       275       2  
  Interest expense   -       (495 )     -       (1,072 )
  Foreign currency gain (loss)   (403 )     (157 )     (443 )     (33 )
                 
Income before income taxes   5,548       10,455       13,544       17,948  
                 
Provision for income taxes   2,033       2,156       3,991       3,720  
                 
Net income $ 3,515     $ 8,299     $ 9,553     $ 14,228  
                 
Earnings per share of common stock              
  Basic $ 0.16     $ 0.40     $ 0.44     $ 0.69  
  Diluted $ 0.16     $ 0.40     $ 0.43     $ 0.68  
                 
Weighted - average shares outstanding:              
  Basic   21,958       20,611       21,947       20,579  
  Diluted   22,129       20,959       22,115       20,900  
                 
                 
Cash dividends declared per common share $ 0.125     $ 0.110     $ 0.250     $ 0.220  
                 


                                 
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, 2022   June 30, 2021   June 30, 2022   June 30, 2021
    $   %   $   %   $   %   $   %
Net Sales by Geography                              
  Americas $ 28,854   69 %   $ 27,329   67 %   $ 55,397   68 %   $ 51,028   67 %
  Europe, Middle East and Africa   10,749   25 %     10,803   27 %     21,243   26 %     20,665   27 %
  Asia Pacific   2,505   6 %     2,538   6 %     5,029   6 %     4,860   6 %
Total Net Sales $ 42,108   100 %   $ 40,670   100 %   $ 81,669   100 %   $ 76,553   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, 2022              
    Net sales as reported   $ 42,108            
    Impact of currency exchange rate fluctuations     1,686            
    Adjusted net sales       $ 43,794        
                   
  For the three months ended June 30, 2021              
    Net sales as reported   $ 40,670            
    Adjusted net sales       $ 40,670        
                   
    Adjusted net sales increase for the three months ended June 30, 2022     $ 3,124     8 %  
                   
                   
Reconciliation between GAAP and Non-GAAP projected sales growth:              
  For the three months ending September 30, 2022              
    Net sales per guidance (midpoint)   $ 40,045            
    Impact of currency exchange rate fluctuations     1,974            
    Adjusted projected net sales       $ 42,019        
                   
  For the three months ended September 30, 2021              
    Net sales as reported   $ 38,368            
    Adjusted net sales       $ 38,368        
                   
    Adjusted projected net sales increase for the three months ending September 30, 2022   $ 3,651     10 %  
                   
                   
Reconciliation between GAAP and Non-GAAP projected sales growth:              
  For the three months ending December 31, 2022              
    Net sales per guidance (midpoint)   $ 42,240            
    Impact of currency exchange rate fluctuations     1,692            
    Adjusted projected net sales       $ 43,932        
                   
  For the three months ended December 31, 2021              
    Net sales as reported   $ 39,503            
    Adjusted net sales       $ 39,503        
                   
    Adjusted projected net sales increase for the three months ending December 31, 2022   $ 4,429     11 %  
                   
                   
Reconciliation between GAAP and Non-GAAP projected sales growth:              
  For the year ending December 31, 2022              
    Net sales per guidance (midpoint)   $ 163,954            
    Impact of currency exchange rate fluctuations     6,170            
    Adjusted projected net sales       $ 170,124        
                   
  For the year ended December 31, 2021              
    Net sales as reported   $ 154,424            
    Adjusted net sales       $ 154,424        
                   
    Adjusted projected net sales increase for the year ending December 31, 2022   $ 15,700     10 %  
                   
                   
Reconciliation between GAAP and Non-GAAP operating income:              
  For the three months ended June 30, 2022              
    Operating income as reported   $ 5,784            
    Impact of special charge     3,107            
    Adjusted operating income       $ 8,891        
                   
  For the three months ended June 30, 2021              
    Operating income as reported   $ 11,106            
    Adjusted operating income       $ 11,106        
                   
    Adjusted operating income decrease for the three months ended June 30, 2022   $ (2,215 )   -20 %  
                   
                   
Reconciliation between GAAP and Non-GAAP projected operating income:            
  For the year ending December 31, 2022              
    Operating income per guidance (midpoint)   $ 30,374            
    Impact of special charge     3,207            
    Adjusted projected operating income       $ 33,581        
                   
  For the year ended December 31, 2021              
    Operating income as reported   $ 36,425            
    Adjusted operating income       $ 36,425        
                   
    Adjusted projected operating income decrease for the year ending December 31, 2022   $ (2,844 )   -8 %  
                   
                   
Reconciliation between GAAP and Non-GAAP EPS:              
  For the three months ended June 30, 2022              
    EPS as reported   $ 0.16            
    Impact of special charge     0.13            
    Adjusted EPS       $ 0.29        
                   
  For the three months ended June 30, 2021              
    EPS as reported   $ 0.40            
    Adjusted EPS       $ 0.40        
                   
    Adjusted EPS decrease for the three months ended June 30, 2022       $ (0.10 )   -26 %  
                   
                   
Reconciliation between GAAP and Non-GAAP projected EPS:              
  For the year ending December 31, 2022              
    EPS per guidance (midpoint)   $ 1.02            
    Impact of special charge     0.15            
    Adjusted EPS       $ 1.17        
                   
  For the year ended December 31, 2021              
    EPS as reported   $ 1.25            
    Adjusted EPS       $ 1.25        
                   
    Adjusted projected EPS decrease for the year ending December 31, 2022   $ (0.08 )   -7 %  
                   
                   
EMEA sales growth reconciliation between GAAP and Non-GAAP:              
  For the three months ended June 30, 2022              
    Net sales as reported   $ 10,749            
    Impact of currency exchange rate fluctuations     1,276            
    EMEA adjusted net sales       $ 12,025        
                   
  For the three months ended June 30, 2021              
    Net sales as reported   $ 10,803            
    Adjusted net sales       $ 10,803        
                   
    EMEA adjusted net sales increase for the three months ended June 30, 2022   $ 1,222     11 %  
                   
                   
APAC sales growth reconciliation between GAAP and Non-GAAP:              
  For the three months ended June 30, 2022              
    Net sales as reported   $ 2,505            
    Impact of currency exchange rate fluctuations     313            
    APAC adjusted net sales       $ 2,818        
                   
  For the three months ended June 30, 2021              
    Net sales as reported   $ 2,538            
    Adjusted net sales       $ 2,538        
                   
    APAC adjusted net sales increase for the three months ended June 30, 2022   $ 280     11 %  
                   
                   
Americas sales growth reconciliation between GAAP and Non-GAAP:              
  For the three months ended June 30, 2022              
    Net sales as reported   $ 28,854            
    Impact of currency exchange rate fluctuations     98            
    Americas adjusted net sales       $ 28,952        
                   
  For the three months ended June 30, 2021              
    Net sales as reported   $ 27,329            
    Adjusted net sales       $ 27,329        
                   
    Americas adjusted net sales increase for the three months ended June 30, 2022   $ 1,623     6 %  
                   
                   
Reconciliation between GAAP and Non-GAAP operating margin:              
  For the three months ended June 30, 2022              
    Operating margin as reported     14 %          
    Impact of special charge     7 %          
    Adjusted operating margin         21 %      
                   
Reconciliation between GAAP and Non-GAAP operating expenses:              
  For the three months ended June 30, 2022              
    Operating expenses as reported   $ 22,026            
    Impact of special charge     (3,107 )          
    Adjusted operating expenses       $ 18,919        
                   
  For the three months ended June 30, 2021              
    Operating expenses as reported   $ 15,655            
    Adjusted operating income       $ 15,655        
                   
    Adjusted operating expense decrease for the three months ended June 30, 2022   $ 3,264     21 %  
                   

 


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Source: LeMaitre Vascular, Inc.