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LeMaitre Q4 2015 Record Sales $20.5mm (+14% organic), Record Net Income $2.5mm (+32%)

02/24/16

BURLINGTON, Mass., Feb. 24, 2016 (GLOBE NEWSWIRE) -- LeMaitre Vascular, Inc. (Nasdaq:LMAT), a provider of vascular devices, today reported Q4 2015 results, announced an increased dividend of $0.045/share and provided guidance.

Q4 2015 results included:

  • Record sales of $20.5mm, +10% reported (+14% organic) vs. Q4 2014
  • Operating income of $3.1mm vs. $2.7mm, +13%
  • Operating margin of 15%
  • Record net income of $2.5mm vs. $1.9mm, +32%
  • Record EPS of $0.13 per diluted share vs. $0.11, +25%
  • Record EBITDA of $4.0mm vs. $3.6mm, +12%
  • Cash increased $3.8mm to $27.5mm

Q4 2015 sales of $20.5mm increased 10% (+14% organic) vs. Q4 2014.  XenoSure and TRIVEX led growth in Q4.  Sales in the Americas were up 11% while international sales increased 8%.

Gross margin improved to 70.3% in Q4 2015 from 68.7% in Q4 2014 primarily due to increases in average selling prices and XenoSure manufacturing efficiencies, offset by the effects of the strong dollar.

Operating expenses in Q4 2015 were $11.3mm, up 12% from $10.1mm in the year-earlier quarter. The Company ended Q4 2015 with 86 sales reps vs. 81 at the end of Q4 2014.

Full year 2015 results included:

  • Sales of $78.4mm, +10% reported (+13% organic) vs. 2014
  • Operating income of $11.5mm vs. $6.3mm, +82%
  • Operating margin of 15%
  • Net income of $7.8mm vs. $3.9mm, +98%
  • EPS of $0.42 per diluted share vs. $0.23, +83%
  • EBITDA of $14.8mm vs. $9.7mm, +53%
  • Cash increased $8.8mm to $27.5mm

Chairman and CEO George W. LeMaitre said, “In 2015 we posted 10% sales growth and 82% operating income growth.  This is in line with our often-stated objectives: 10% sales growth and 20% profit growth.”

Quarterly Dividend

On February 22, 2016, the Company's Board of Directors approved an increased quarterly dividend of $0.045/share of common stock. The dividend will be paid April 4, 2016 to shareholders of record on March 21, 2016.

Business Outlook

The Company expects Q1 2016 sales of $20.2mm, a reported increase of 7% vs. Q1 2015 (+8% organic). The Company expects Q1 2016 gross margin of 71.0%. The Company expects Q1 2016 operating income of $2.9mm (14% operating margin), a 26% increase vs. Q1 2015.

The Company expects full-year 2016 sales of $84.7mm, a reported increase of 8% vs. 2015 (+9% organic). The Company expects 2016 gross margin of 71.0%. The Company expects full-year 2016 operating income to increase by 23% to $14.2mm (17% 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 866-318-8617 (+1-617-399-5136 for international callers), using passcode 18480722. 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 Q1 2016 and 2016 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)        
           
           
      December 31, 2015   December 31, 2014
      (unaudited)    
Assets        
           
Current assets:        
  Cash and cash equivalents   $ 27,451     $ 18,692  
  Accounts receivable, net     11,971       10,803  
  Inventory     15,205       16,714  
  Prepaid expenses and other current assets     3,557       2,379  
Total current assets     58,184       48,588  
           
Property and equipment, net     7,022       6,878  
Goodwill     17,789       17,281  
Other intangibles, net     6,336       7,157  
Deferred tax assets     1,205       1,418  
Other assets     168       170  
           
Total assets   $ 90,704     $ 81,492  
           
           
Liabilities and stockholders' equity        
           
Current liabilities:        
  Accounts payable   $ 1,366     $ 1,127  
  Accrued expenses     8,837       7,479  
  Acquisition-related obligations     165       1,435  
Total current liabilities     10,368       10,041  
           
Deferred tax liabilities     1,678       2,919  
Other long-term liabilities     774       325  
Total liabilities     12,820       13,285  
           
Stockholders' equity        
  Common stock, $0.01 par value; authorized 37,000,000 shares; issued 19,748,321        
  shares at December 31, 2015, and 18,778,436 shares at December 31, 2014     197       188  
  Additional paid-in capital     82,094       75,389  
  Retained earnings     8,161       3,248  
  Accumulated other comprehensive loss     (4,049 )     (2,365 )
  Treasury stock, at cost; 1,431,139 shares at December 31, 2015, and 1,407,211        
  shares at December 31, 2014     (8,519 )     (8,253 )
Total stockholders' equity     77,884       68,207  
           
Total liabilities and stockholders' equity   $ 90,704     $ 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 year ended
    December 31, 2015   December 31, 2014   December 31, 2015   December 31, 2014
                 
Net sales $ 20,483     $ 18,681     $ 78,352     $ 71,097  
Cost of sales   6,080       5,853       24,186       22,666  
                 
Gross profit   14,403       12,828       54,166       48,431  
                 
Operating expenses:              
  Sales and marketing   5,914       5,230       22,780       22,087  
  General and administrative   3,635       3,513       14,010       13,889  
  Research and development   1,575       1,081       5,479       4,671  
  Gain on divestiture   -       -       (360 )     -  
  Medical device excise tax   190       171       744       689  
  Impairment charges   -       68       -       229  
  Restructuring charges   -       26       -       526  
                 
Total operating expenses   11,314       10,089       42,653       42,091  
                 
Income from operations   3,089       2,739       11,513       6,340  
                 
Other income (loss):              
  Other income (loss), net   46       (46 )     (89 )     (20 )
                 
Income before income taxes   3,135       2,693       11,424       6,320  
                 
Provision for income taxes   605       777       3,666       2,405  
                 
Net income $ 2,530     $ 1,916     $ 7,758     $ 3,915  
                 
Earnings per share of common stock              
  Basic $ 0.14     $ 0.11     $ 0.44     $ 0.24  
  Diluted $ 0.13     $ 0.11     $ 0.42     $ 0.23  
                 
Weighted - average shares outstanding:              
  Basic   18,175       17,371       17,764       16,614  
  Diluted   18,781       17,713       18,316       17,008  
                 
                 
Cash dividends declared per common share $ 0.040     $ 0.035     $ 0.160     $ 0.140  
                 

 

                                 
  LEMAITRE VASCULAR, INC (NASDAQ: LMAT)                        
  SELECTED NET SALES INFORMATION                        
  (amounts in thousands)                              
  (unaudited)                              
                                 
                                 
    For the three months ended    For the year ended
    December 31, 2015   December 31, 2014   December 31, 2015   December 31, 2014
    $   %   $   %   $   %   $   %
Net Sales by Geography                              
  Americas $ 12,105       59 %   $ 10,936       59 %   $ 47,975       61 %   $ 43,502       61 %
  International   8,378       41 %     7,745       41 %     30,377       39 %     27,595       39 %
Total Net Sales $ 20,483       100 %   $ 18,681       100 %   $ 78,352       100 %   $ 71,097       100 %
                                 
                                 
                                 
                                 
    For the three months ended    For the year ended
    December 31, 2015   December 31, 2014   December 31, 2015   December 31, 2014
    $   %   $   %   $   %   $   %
Net Sales by Country                              
  United States $ 11,403       56 %   $ 10,324       55 %   $ 45,177       58 %   $ 41,545       58 %
  Germany   2,190       11 %     2,087       11 %     9,090       12 %     7,639       11 %
  Italy   622       3 %     659       4 %     2,613       3 %     2,635       4 %
  Other countries   6,268       30 %     5,611       30 %     21,472       27 %     19,278       27 %
Total Net Sales $ 20,483       100 %   $ 18,681       100 %   $ 78,352       100 %   $ 71,097       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, 2015                
    Net sales as reported   $ 20,483              
    Impact of currency exchange rate fluctuations     983              
    Net impact of acquisitions excluding currency   (105 )            
    Adjusted net sales       $ 21,361          
                     
  For the three months ending December 31, 2014                
    Net sales as reported   $ 18,681              
    Adjusted net sales       $ 18,681          
                     
    Adjusted net sales increase for the three months ending December 31, 2015   $ 2,680       14 %    
                     
                     
Reconciliation between GAAP and Non-GAAP sales growth:                
  For the year ending December 31, 2015                
    Net sales as reported   $ 78,352              
    Impact of currency exchange rate fluctuations     5,493              
    Net impact of acquisitions excluding currency   (3,520 )            
    Adjusted net sales       $ 80,325          
                     
  For the year ending December 31, 2014                
    Net sales as reported   $ 71,097              
    Net impact of divestitures excluding currency     (71 )            
    Adjusted net sales       $ 71,026          
                     
    Adjusted net sales increase for the year ending December 31, 2015     $ 9,299       13 %    
                     
                     
Reconciliation between GAAP and Non-GAAP sales growth:                
  For the three months ending March 31, 2016                
    Net sales per guidance   $ 20,249              
    Impact of currency exchange rate fluctuations     225              
    Net impact of acquisitions excluding currency   (60 )            
    Adjusted net sales       $ 20,414          
                     
  For the three months ending March 31, 2015                
    Net sales as reported   $ 18,947              
    Adjusted net sales       $ 18,947          
                     
    Adjusted net sales increase for the three months ending March 31, 2016   $ 1,467       8 %    
                     
                     
Reconciliation between GAAP and Non-GAAP sales growth:                
  For the year ending December 31, 2016                
    Net sales per guidance   $ 84,749              
    Impact of currency exchange rate fluctuations     339              
    Net impact of acquisitions excluding currency   (80 )            
    Adjusted net sales       $ 85,008          
                     
  For the year ending December 31, 2015                
    Net sales as reported   $ 78,352              
    Net impact of divestitures excluding currency     (235 )            
    Adjusted net sales       $ 78,117          
                     
    Adjusted net sales increase for the year ending December 31, 2016     $ 6,891       9 %    
                     
                     
                     
        For the three months ended   For the year ended
        December 31, 2015   December 31, 2014   December 31, 2015   December 31, 2014
Reconciliation between GAAP and Non-GAAP EBITDA                
  Net Income, as reported   $ 2,530     $ 1,916     $ 7,758     $ 3,915  
  Amortization and depreciation expense     897       912       3,394       3,334  
  Interest income (expense), net     (6 )     -       (13 )     4  
  Provision for income taxes     605       777       3,666       2,405  
                     
  EBITDA   $ 4,026     $ 3,605     $ 14,805     $ 9,658  
                     
  EBITDA percentage increase         12 %         53 %
                     
CONTACT: J.J. Pellegrino, CFO
LeMaitre Vascular
781-425-1691
jpellegrino@lemaitre.com

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