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Press Release

LeMaitre Q4 2017 Record Sales $26.2mm (+12%), Record Op. Income $6.3mm (+62%)

February 21, 2018 at 4:06 PM EST

BURLINGTON, Mass., Feb. 21, 2018 (GLOBE NEWSWIRE) -- LeMaitre Vascular, Inc. (Nasdaq:LMAT), a provider of vascular devices, implants and services, today reported Q4 2017 results, provided guidance, and announced a 27% dividend increase to $0.07/share.

Q4 2017 Results

  • Record sales of $26.2mm, +12% vs. Q4 2016
  • Record operating income of $6.3mm vs. $3.9mm, +62%
  • Net income of $4.3mm vs. $2.6mm, +65%
  • Earnings of $0.21 per diluted share vs. $0.13, +60%
  • Record EBITDA of $7.4mm vs. $4.8mm, +55%

Q4 2017 sales of $26.2mm increased 12% (+7% organic) vs. Q4 2016.  Allografts, valvulotomes, and patches led growth.  Sales in the Americas and Europe/Middle East/Africa were up 15% and 22% respectively while sales in Asia/Pac Rim decreased 41%.

Gross margin increased to 69.8% in Q4 2017 from 69.5% in Q4 2016 primarily due to product and geographic mix.

Operating expenses in Q4 2017 were $11.9mm, a 3% decrease vs. the year-earlier quarter. The Company ended the quarter with 90 sales reps vs. 96 at the end of Q4 2016.

Full Year 2017 Results

  • Sales of $100.9mm, +13% reported (+7% organic) vs. 2016
  • Operating income of $21.1mm vs. $16.3mm, +29%
  • Net income of $17.2mm vs. $10.6mm, +62%
  • EPS of $0.86 per diluted share vs. $0.55, +56%
  • Dividends paid of $0.22 per share vs $0.18, +22%
  • EBITDA of $25.0mm vs. $19.8mm, +26%

George W. LeMaitre, Chairman and CEO said, “Sales increased 13% in 2017, while operating income was up 29%.  We continue to pursue 10% annual reported sales growth and 20% annual operating income growth.”

Business Outlook

Guidance Summary
Q1  2018 Sales $26.0mm - $26.6mm
  (Midpoint: +9% reported, +4% organic) 
Q1  2018 Gross Margin 71.5%
Q1  2018 Operating Income $5.0mm - $5.6mm
(Midpoint: +25%)
Q1 2018 Earnings Per Diluted Share $0.19 - $0.21
(Midpoint: +21%)
2018 Sales $110.0mm - $111.6mm
(Midpoint: +10% reported, +7% organic)
2018 Gross Margin 71.5%
2018 Operating Income $25.4mm - $26.6mm
(Midpoint: +23%)
2018 Earnings Per Diluted Share $0.96 - $1.00
(Midpoint: +14%)

Quarterly Dividend

On February 15, 2018, the Company's Board of Directors approved an increased quarterly dividend of $0.07/share of common stock. The dividend will be paid April 5, 2018 to shareholders of record on March 22, 2018.

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 844-239-5284 (+1 512-961-6497 for international callers), using passcode 9114999. 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, 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 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 2018 and 2018 sales, gross margin, operating income and earnings per share. 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 of significant fluctuations in our quarterly and annual results due to numerous factors; 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; 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 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, 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.

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

             
LEMAITRE VASCULAR, INC (NASDAQ: LMAT)          
CONDENSED CONSOLIDATED BALANCE SHEETS           
(amounts in thousands)          
             
             
      December 31, 2017   December 31, 2016  
      (unaudited)      
Assets          
             
Current assets:          
  Cash and cash equivalents   $   19,096     $   24,288    
  Short-term marketable securities       22,564       -    
  Accounts receivable, net       15,000         13,191    
  Inventory and other deferred costs       21,046         19,578    
  Prepaid expenses and other current assets       2,605         1,970    
Total current assets       80,311         59,027    
             
Property and equipment, net       12,378         8,012    
Goodwill       23,844         23,426    
Other intangibles, net       8,234         9,897    
Deferred tax assets       1,378         1,399    
Other assets       178         163    
             
Total assets   $   126,323     $   101,924    
             
             
Liabilities and stockholders' equity          
             
Current liabilities:          
  Accounts payable   $   1,543     $   1,217    
  Accrued expenses       9,770         8,804    
  Acquisition-related obligations        1,876         461    
Total current liabilities       13,189         10,482    
             
Deferred tax liabilities       2,176         1,941    
Other long-term liabilities       1,188         2,001    
Total liabilities       16,553         14,424    
             
Stockholders' equity          
  Common stock       207         200    
  Additional paid-in capital       93,127         85,378    
  Retained earnings        28,333         15,335    
  Accumulated other comprehensive loss       (2,289 )       (4,583 )  
  Treasury stock       (9,608 )       (8,830 )  
Total stockholders' equity       109,770         87,500    
             
Total liabilities and stockholders' equity   $   126,323     $   101,924    
             

 

                   
  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, 2017   December 31, 2016   December 31, 2017   December 31, 2016  
                   
Net sales $   26,153   $   23,288     $   100,867   $   89,151    
Cost of sales     7,901       7,094         30,170       26,215    
                   
Gross profit     18,252       16,194         70,697       62,936    
                   
Operating expenses:                
  Sales and marketing     6,194       6,753         25,948       26,105    
  General and administrative     4,153       4,011         17,010       14,354    
  Research and development     1,583       1,521         6,636       6,141    
                   
Total operating expenses     11,930       12,285         49,594       46,600    
                   
Income from operations     6,322       3,909         21,103       16,336    
                   
Other income:                
  Other income (loss), net     6       (75 )       3       (94 )  
                   
Income before income taxes     6,328       3,834         21,106       16,242    
                   
Provision for income taxes     2,044       1,237         3,929       5,652    
                   
Net income  $   4,284   $   2,597     $   17,177   $   10,590    
                   
Earnings per share of common stock                
  Basic $   0.22   $   0.14     $   0.91   $   0.57    
  Diluted $   0.21   $   0.13     $   0.86   $   0.55    
                   
Weighted - average shares outstanding:                
  Basic     19,264       18,585         18,961       18,485    
  Diluted     20,191       19,558         20,033       19,241    
                   
                   
Cash dividends declared per common share  $   0.055   $   0.045     $   0.220   $   0.180    
                   

 

                                   
  LEMAITRE VASCULAR, INC (NASDAQ: LMAT)                          
  SELECTED NET SALES INFORMATION                              
  (amounts in thousands)                                
  (unaudited)                                
                                   
                                   
    For the three months ended    For the year ended   
    December 31, 2017   December 31, 2016   December 31, 2017   December 31, 2016  
    $   %   $   %   $   %   $   %  
Net Sales by Geography                                
  Americas $   16,186   62 %   $   14,116   61 %   $   62,696   62 %   $   53,710   60 %  
  Europe/Middle East/Africa     8,856   34 %       7,278   31 %       32,516   32 %       29,531   33 %  
  Asia/Pacific Rim     1,111   4 %       1,894   8 %       5,655   6 %       5,910   7 %  
Total Net Sales $   26,153   100 %   $   23,288   100 %   $   100,867   100 %   $   89,151   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 December 31, 2017                  
    Net sales as reported   $   26,153                
    Impact of currency exchange rate fluctuations       (705 )              
    Net impact of acquisitions excluding currency       (530 )              
      Adjusted net sales       $   24,918            
                       
  For the three months ended December 31, 2016                  
    Net sales as reported   $   23,288                
    Net impact of divestitures excluding currency     -                
      Adjusted net sales       $   23,288            
                       
     Adjusted net sales increase for the three months ended December 31, 2017    $   1,630       7 %      
                       
                       
Reconciliation between GAAP and Non-GAAP sales growth:                  
  For the year ended December 31, 2017                  
    Net sales as reported   $   100,867                
    Impact of currency exchange rate fluctuations       (415 )              
    Net impact of acquisitions excluding currency       (5,186 )              
      Adjusted net sales       $   95,266            
                       
  For the year ended December 31, 2016                  
    Net sales as reported   $   89,151                
    Net impact of divestitures excluding currency     -                
      Adjusted net sales       $   89,151            
                       
     Adjusted net sales increase for the year ended December 31, 2017      $   6,115       7 %      
                       
Reconciliation between GAAP and Non-GAAP sales growth:                  
  For the three months ended March 31, 2018                  
    Net sales per guidance   $   26,348                
    Impact of currency exchange rate fluctuations       (1,220 )              
    Net impact of acquisitions excluding currency     -                
      Adjusted net sales       $   25,128            
                       
  For the three months ended March 31, 2017                  
    Net sales as reported   $   24,139                
    Net impact of divestitures excluding currency     -                
      Adjusted net sales       $   24,139            
                       
     Adjusted net sales increase for the three months ended March 31, 2018    $   989       4 %      
                       
                       
Reconciliation between GAAP and Non-GAAP sales growth:                  
  For the year ended December 31, 2018                  
    Net sales per guidance   $   110,800                
    Impact of currency exchange rate fluctuations       (3,258 )              
    Net impact of acquisitions excluding currency     -                
      Adjusted net sales       $   107,542            
                       
  For the year ended December 31, 2017                  
    Net sales as reported   $   100,867                
    Net impact of divestitures excluding currency     -                
      Adjusted net sales       $   100,867            
                       
     Adjusted net sales increase for the year ended December 31, 2018      $   6,675       7 %      
                       
                       
                       
        For the three months ended   For the year ended  
        December 31, 2017   December 31, 2016   December 31, 2017   December 31, 2016  
Reconciliation between GAAP and Non-GAAP EBITDA                  
  Net income as reported   $   4,284     $   2,597     $   17,177     $   10,590    
  Interest (income) expense, net       (58 )       (12 )       (158 )       (67 )  
  Amortization and depreciation expense       1,088         933         4,055         3,591    
  Provision for income taxes       2,044         1,237         3,929         5,652    
                       
  EBITDA   $   7,358     $   4,755     $   25,003     $   19,766    
                       
  EBITDA percentage increase         55 %         26 %  
                       

 


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Source: LeMaitre Vascular, Inc.