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LeMaitre Q4 2014 Record Sales $18.7mm (+4%), Record Op. Inc. $2.7mm (+134%)

02/25/15

BURLINGTON, Mass., Feb. 25, 2015 (GLOBE NEWSWIRE) -- LeMaitre Vascular, Inc. (Nasdaq:LMAT), a provider of peripheral vascular devices and implants, today reported Q4 2014 results. The Company increased its quarterly dividend to $0.04/share and provided guidance.

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 $18.7mm increased 4% (+2% organic) vs. Q4 2013. International sales increased 12%, while The Americas declined 1%. Unit sales increased 17% in Q4 2014.

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 $10.1mm, down 6% from $10.8mm in the year-earlier quarter. The 6% decrease was driven largely by reduced selling expenses. The Company ended Q4 2014 with 81 sales reps vs. 85 at the end of Q4 2013.

Full-year 2014 sales were $71.1mm, an increase of 10% (+6% organic) vs. 2013. In 2014 international sales increased 18%, while the Americas increased 6%. In 2014 operating income increased 40% to $6.3mm, EBITDA increased 35% to $9.6mm, net income increased 22% to $3.9mm, and earnings per diluted share increased 15% to $0.23.

Chairman and CEO George LeMaitre said, "In 2014 we posted 10% sales growth and 40% operating income growth. This is in line with our often-stated objectives: 10% sales growth and 20% operating income growth."

Quarterly Dividend

On February 23, 2015, the Company's Board of Directors approved an increased quarterly dividend of $0.04/share of common stock. The dividend will be paid April 3, 2015 to shareholders of record on March 20, 2015.

Business Outlook

The Company expects Q1 2015 sales of $17.8mm, a reported increase of 6% vs. Q1 2014. Excluding the effects of changes in foreign currency exchange rates, this represents 12% sales growth. Excluding currency effects and acquisitions, this represents 7% sales growth (organic growth). The company expects Q1 2015 operating income of $1.4mm (8% operating margin).

The Company expects full-year 2015 sales of $74.5mm, a reported increase of 5% vs. 2014. Excluding the effects of changes in foreign currency exchange rates, this represents 10% sales growth. Excluding currency effects and acquisitions, this represents 6% sales growth (organic growth). The company expects full-year 2015 operating income to increase by 19% to $7.5mm (10% operating margin).

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 800-299-8538 (+1 617-786-2902 for international callers), using pass-code 43670609. 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 ("organic") 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 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 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.

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 Officer
         LeMaitre Vascular, Inc.
         781-425-1691
         jpellegrino@lemaitre.com

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LeMaitre Vascular, Inc.