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LeMaitre Q3 2015 Sales $19.0mm (+12% organic), Record Op. Inc. $3.3mm (+79%)

10/27/15

BURLINGTON, Mass., Oct. 27, 2015 (GLOBE NEWSWIRE) -- LeMaitre Vascular, Inc. (Nasdaq:LMAT), a provider of vascular devices, today reported Q3 2015 results, announced a $0.04/share dividend and provided guidance.

Q3 2015 results included:

  • Sales of $19.0mm, +9% reported (+12% organic) vs. Q3 2014
  • Record operating income of $3.3mm vs. $1.9mm, +79%
  • Record operating margin of 17%
  • Record net income of $2.1mm vs. $0.9mm, +124%
  • Earnings of $0.11 per diluted share vs. $0.05, +115%
  • Record EBITDA of $4.0mm vs. $2.7mm, +47%
  • Cash increased $4.2mm to $23.6mm



Q3 2015 sales of $19.0mm increased 9% (+12% organic) vs. Q3 2014.  The XenoSure patch and the Omniflow II graft led growth in the quarter.  International sales increased 11%, while sales in the Americas increased 7%.   

Gross margin improved to 71.0% in Q3 2015 from 68.6% in Q3 2014 primarily due to manufacturing efficiencies and increases in average selling prices.    

Operating expenses in Q3 2015 were $10.2mm, flat against the year-earlier quarter. The Company ended Q3 2015 with 82 sales reps vs. 81 at the end of Q3 2014.

“I am pleased to report record operating income of $3.3 million in Q3 and our 6th consecutive quarter of double digit operating margins,” said George W. LeMaitre, Chairman and CEO.  “We continue to pursue 10% sales growth and 20% profit growth.”

Quarterly Dividend

On October 22, 2015, the Company's Board of Directors approved a quarterly dividend of $0.04/share of common stock. The dividend will be paid December 4, 2015 to shareholders of record on November 20, 2015.

Business Outlook

The Company expects Q4 2015 sales of $20.1mm, a reported increase of 8% vs. Q4 2014. Excluding currency effects and acquisitions, this represents 12% sales growth (organic growth). The Company expects Q4 2015 gross margin of 68.5%. The Company also expects Q4 2015 operating income of $2.6mm (13% operating margin), a 5% decline vs. Q4 2014.

The Company has increased its full-year 2015 sales guidance to $78.0mm, a reported increase of 10% vs. 2014. Excluding currency effects and acquisitions, this represents 13% sales growth (organic growth). The Company expects 2015 gross margin of 68.7%. The Company has increased its 2015 operating income guidance to $11.0mm (14% operating margin), a 73% increase vs. 2014.

Conference Call Reminder

Management will conduct a conference call at 5:00pm ET today to review the Company's financial results and discuss its business outlook for the remainder of the year. The conference call will be broadcast live over the Internet. Individuals who are interested in listening to the webcast should log on to the Company's website at www.lemaitre.com/investor. The conference call may also be accessed by dialing 877-474-9506 (+1 857-244-7559 for international callers), using passcode 14845228. 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 Vascular

LeMaitre Vascular is a provider of devices for the treatment of peripheral vascular disease, a condition that affects more than 20 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 and the LeMaitre Vascular logo are registered trademarks of LeMaitre Vascular, Inc. This press release contains 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 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 Q4 2015 and 2015 sales, gross margin 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 and pricing; 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 SEC, all of which are 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)          
             
             
      September 30, 2015   December 31, 2014  
      (unaudited)      
Assets          
             
Current assets:          
  Cash and cash equivalents   $   23,629     $   18,692    
  Accounts receivable, net       11,339         10,803    
  Inventory       15,920         16,714    
  Prepaid expenses and other current assets       3,089         2,379    
Total current assets       53,977         48,588    
             
Property and equipment, net       6,788         6,878    
Goodwill       17,717         17,281    
Other intangibles, net       6,656         7,157    
Deferred tax assets       1,306         1,418    
Other assets       168         170    
             
Total assets   $   86,612     $   81,492    
             
             
Liabilities and stockholders' equity          
             
Current liabilities:          
  Accounts payable   $   931     $   1,127    
  Accrued expenses       7,598         7,479    
  Acquisition-related obligations        304         1,435    
Total current liabilities       8,833         10,041    
             
Deferred tax liabilities       2,917         2,919    
Other long-term liabilities       676         325    
Total liabilities       12,426         13,285    
             
Stockholders' equity          
  Common stock, $0.01 par value; authorized 37,000,000 shares; issued 19,499,818          
  shares at September 30, 2015, and 18,778,436 shares at December 31, 2014       195         188    
  Additional paid-in capital       80,188         75,389    
  Retained earnings        6,356         3,248    
  Accumulated other comprehensive loss       (4,033 )       (2,365 )  
  Treasury stock, at cost; 1,431,139 shares at September 30, 2015, and 1,407,211       (8,520 )       (8,253 )  
  shares at December 31, 2014       -         -    
Total stockholders' equity       74,186         68,207    
             
Total liabilities and stockholders' equity   $   86,612     $   81,492    
             

 


                   
  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 nine months ended  
    September 30, 2015   September 30, 2014   September 30, 2015   September 30, 2014  
                   
Net sales $   19,025     $   17,501     $   57,869     $   52,416    
Cost of sales     5,509         5,498         18,106         16,813    
                   
Gross profit     13,516         12,003         39,763         35,603    
                   
Operating expenses:                
  Sales and marketing     5,489         5,091         16,866         16,857    
  General and administrative     3,455         3,765         10,375         10,376    
  Research and development     1,421         1,109         3,904         3,590    
  Gain on Divestitures     (360 )       -         (360 )       -    
  Medical device excise tax     190         178         554         518    
  Impairment charges     -         -         -         161    
  Restructuring charges     -         8         -         500    
                   
Total operating expenses     10,195         10,151         31,339         32,002    
                   
Income from operations     3,321         1,852         8,424         3,601    
                   
Other income (loss):     3         (5 )       7         (4 )  
  Other income (loss), net     (185 )       52         (142 )       30    
                   
Income before income taxes     3,139         1,899         8,289         3,627    
                   
Provision for income taxes     1,047         965         3,061         1,628    
                   
Net income  $   2,092     $   934     $   5,228     $   1,999    
                   
Earnings per share of common stock                
  Basic $   0.12     $   0.05     $   0.30     $   0.12    
  Diluted $   0.11     $   0.05     $   0.29     $   0.12    
                   
Weighted - average shares outstanding:                
  Basic     17,865         17,348         17,625         16,358    
  Diluted     18,497         17,709         18,136         16,772    
                   
                   
Cash dividends declared per common share  $   0.040     $   0.035     $   0.120     $   0.105    
                   

 

                                   
  LEMAITRE VASCULAR, INC (NASDAQ: LMAT)                          
  SELECTED NET SALES INFORMATION                          
  (amounts in thousands)                                
  (unaudited)                                
                                   
                                   
    For the three months ended    For the nine months ended   
    September 30, 2015   September 30, 2014   September 30, 2015   September 30, 2014  
    $   %   $   %   $   %   $   %  
Net Sales by Geography                                
  Americas $   11,916       63 %   $   11,102       63 %   $   35,870       62 %   $   32,566       62 %  
  International     7,109       37 %       6,399       37 %       21,999       38 %       19,850       38 %  
Total Net Sales $   19,025       100 %   $   17,501       100 %   $   57,869       100 %   $   52,416       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 September  30, 2015                
    Net sales as reported   $   19,025              
    Impact of currency exchange rate fluctuations       1,348              
    Net impact of acquisitions and divestitures excluding currency     (791 )            
      Adjusted net sales       $   19,582          
                     
  For the three months ending September 30, 2014                
    Net sales as reported   $   17,501              
    Net impact of divestitures excluding currency       (71 )            
      Adjusted net sales       $   17,430          
                     
     Adjusted net sales increase for the three months ending September 30, 2015    $   2,152       12 %    
                     
                     
Reconciliation between GAAP and Non-GAAP sales growth:                
  For the three months ending December 31, 2015                
    Net sales per guidance   $   20,100              
    Impact of currency exchange rate fluctuations       956              
    Net impact of acquisitions and divestitures excluding currency     (120 )            
      Adjusted net sales   .   $   20,936          
                     
  For the three months ending December 31, 2014                
    Net sales as reported   $   18,682              
    Net impact of divestitures excluding currency       (1 )            
      Adjusted net sales       $   18,681          
                     
     Adjusted net sales increase for the three months ending December 31, 2015    $   2,255       12 %    
                     
                     
Reconciliation between GAAP and Non-GAAP sales growth:                
  For the year ending December 31, 2015                
    Net sales per guidance   $   77,967              
    Impact of currency exchange rate fluctuations       5,410              
    Net impact of acquisitions and divestitures excluding currency     (3,401 )            
      Adjusted net sales       $   79,976          
                     
  For the year ending December 31, 2014                
    Net sales as reported   $   71,097              
    Net impact of divestitures excluding currency       (76 )            
      Adjusted net sales       $   71,021          
                     
     Adjusted net sales increase for the year ending December 31, 2015      $   8,955       13 %    
                     
                     
                     
        For the three months ended   For the nine months ended
        September 30, 2015   September 30, 2014   September 30, 2015   September 30, 2014
Reconciliation between GAAP and Non-GAAP EBITDA                
  Net income, as reported   $   2,092     $   934     $   5,228     $   1,999  
  Amortization and depreciation expense       825         802         2,497         2,422  
  Interest income net       3         (5 )       7         (4 )
  Provision for income taxes       1,047         965         3,061         1,628  
                     
  EBITDA   $   3,967     $   2,696     $   10,793     $   6,045  
                     

 

 

 

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

LeMaitre Vascular, Inc.