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Press Release

LeMaitre Q4 2021 Financial Results

February 24, 2022 at 4:05 PM EST

BURLINGTON, Mass., Feb. 24, 2022 (GLOBE NEWSWIRE) -- LeMaitre (Nasdaq:LMAT), a provider of vascular devices, implants and services, today reported Q4 2021 results, announced a $0.125/share quarterly dividend (+14%) and provided guidance.

Q4 2021 Financial Results

  • Sales of $39.5mm, +5% (+6% organic) vs. Q4 2020
  • Op. income of $8.3mm, -13%
  • Op. margin of 21%
  • Net income of $6.2mm, -12%
  • Earnings of $0.28 per diluted share, -18%
  • Cash and investments +$2.9mm to $70.0mm

Q4 2021 sales were driven by bovine grafts (Artegraft) and bovine patches (XenoSure). The Americas was up 8%, EMEA was up 1%, and Asia/Pac was down 3%.

The gross margin increase to 65.7% (vs. 65.0% in Q4 2020) was driven by higher average selling prices and an improved sales mix.

Op. income decreased 13% to $8.3mm in Q4 2021, driven by a 17% headcount increase as well as higher clinical and regulatory expenses.

George LeMaitre, Chairman and CEO, said, “Despite considerable hiring we produced a Q4 op. margin of 21% and the dividend is now increasing for the 11th straight year.”

2021 Financial Results

Sales growth of 19% for full-year 2021 was driven by bovine grafts, valvulotomes, bovine patches and carotid shunts. Op. income and net income both grew 27% in 2021 as sales growth outpaced op. expense growth. 2021 EBITDA of $45.8mm coupled with the follow-on stock offering enabled the final Artegraft acquisition loan pay-down during the year and a record cash balance of $70.0mm at year-end.

Business Outlook

  Q1 2022 Guidance
Sales $37.7mm - $39.7mm
(Mid: $38.7mm, +8%, +10% Org.)
Gross Margin 66.2%
Op. Income $7.1mm - $8.4mm
(Mid: $7.7mm, -3%)
EPS $0.26 - $0.30
(Mid: $0.28, -1%)
   
  2022 Full Year Guidance
Sales $162mm - $166mm
(Mid: $164mm, +6%, +8% Org.)
Gross Margin 67.2%
Op. Income $38.5mm - $41.1mm
(Mid: $39.8mm, +9%)
EPS $1.35 - $1.45
(Mid: $1.40, +12%)

Quarterly Dividend

On February 22, 2022, the Company's Board of Directors approved a quarterly dividend of $0.125/share of common stock. The dividend will be paid on March 24, 2022 to shareholders of record on March 8, 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. The conference call may also be accessed by dialing 800-773-2954 (+1 847-413-3731 for international callers), using passcode 50283055. 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-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 growth 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, 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 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. 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 foreign regulatory requirements to market and sell our products outside the United States; 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)        
           
      December 31, 2021   December 31, 2020
      (unaudited)    
Assets        
           
Current assets:        
  Cash and cash equivalents   $ 13,855     $ 26,764  
  Short-term marketable securities     56,104       214  
  Accounts receivable, net     19,631       19,552  
  Inventory and other deferred costs     46,104       45,115  
  Prepaid expenses and other current assets     4,189       2,618  
Total current assets     139,883       94,263  
           
Property and equipment, net     17,059       15,036  
Right-of-use leased assets     15,071       16,066  
Goodwill     65,945       65,945  
Other intangibles, net     52,710       58,905  
Deferred tax assets     1,566       1,686  
Other assets     568       909  
           
Total assets   $ 292,802     $ 252,810  
           
           
Liabilities and stockholders' equity        
           
Current liabilities:        
  Current portion of long-term debt   $ -     $ 2,500  
  Accounts payable     2,340       2,394  
  Accrued expenses     16,332       17,525  
  Acquisition-related obligations     1,271       772  
  Lease liabilities - short-term     1,870       1,954  
Total current liabilities     21,813       25,145  
           
Long-term debt, net     -       35,532  
Lease liabilities - long-term     14,067       14,791  
Deferred tax liabilities     70       127  
Other long-term liabilities     2,701       4,643  
Total liabilities     38,651       80,238  
           
Stockholders' equity        
  Common stock     235       221  
  Additional paid-in capital     181,630       114,924  
  Retained earnings     88,125       70,554  
  Accumulated other comprehensive loss     (3,435 )     (1,525 )
  Treasury stock     (12,404 )     (11,602 )
Total stockholders' equity     254,151       172,572  
           
Total liabilities and stockholders' equity   $ 292,802     $ 252,810  
           


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, 2021   December 31, 2020   December 31, 2021   December 31, 2020
                 
Net sales $ 39,503     $ 37,548     $ 154,424     $ 129,366  
Cost of sales   13,547       13,146       53,042       44,748  
                 
Gross profit   25,956       24,402       101,382       84,618  
                 
Operating expenses:              
 Sales and marketing   7,445       5,912       27,655       23,700  
 General and administrative   6,753       6,076       25,501       22,501  
 Research and development   3,457       2,869       11,801       10,099  
 Gain on sale of building   -       -       -       (470 )
Total operating expenses   17,655       14,857       64,957       55,830  
                 
Income from operations   8,301       9,545       36,425       28,788  
                 
Other income (expense), net              
 Interest income   141       13       197       207  
 Interest expense   (526 )     (579 )     (2,219 )     (1,310 )
 Foreign currency gain (loss)   (11 )     (48 )     (116 )     (329 )
                 
Income before income taxes   7,905       8,931       34,287       27,356  
                 
Provision for income taxes   1,730       1,898       7,380       6,136  
                 
Net income $ 6,175     $ 7,033     $ 26,907     $ 21,220  
                 
Earnings per share of common stock              
 Basic $ 0.28     $ 0.35     $ 1.27     $ 1.05  
 Diluted $ 0.28     $ 0.34     $ 1.25     $ 1.04  
                 
Weighted - average shares outstanding:              
 Basic   21,860       20,380       21,157       20,246  
 Diluted   22,138       20,621       21,475       20,479  
                 
                 
Cash dividends declared per common share   $ 0.110     $ 0.095     $ 0.440     $ 0.380  
                 


LEMAITRE VASCULAR, INC. (NASDAQ: LMAT)                        
SELECTED NET SALES INFORMATION                            
(amounts in thousands)                              
(unaudited)                              
                                 
    For the three months ended   For the year ended
    December 31, 2021   December 31, 2020   December 31, 2021   December 31, 2020
    $   %   $   %   $   %   $   %
Net Sales by Geography                              
  Americas $ 25,948   65 %   $ 24,002   64 %   $ 102,265   66 %   $ 81,470   63 %
  Europe, Middle East and Africa   10,932   28 %     10,854   29 %     42,132   27 %     39,193   30 %
  Asia Pacific   2,623   7 %     2,692   7 %     10,027   7 %     8,703   7 %
Total Net Sales $ 39,503   100 %   $ 37,548   100 %   $ 154,424   100 %   $ 129,366   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, 2021                
    Net sales as reported   $ 39,503            
    Impact of currency exchange rate fluctuations     372            
        Adjusted net sales       $ 39,875          
                     
  For the three months ended December 31, 2020                
    Net sales as reported   $ 37,548            
        Adjusted net sales       $ 37,548          
                     
    Adjusted net sales increase for the three months ended December 31, 2021   $ 2,327       6 %    
                     
                     
Reconciliation between GAAP and Non-GAAP projected sales growth:            
  For the three months ending March 31, 2022                
    Net sales per guidance (midpoint)   $ 38,740            
    Impact of currency exchange rate fluctuations     722            
        Adjusted projected net sales       $ 39,462          
                     
  For the three months ended March 31, 2021                
    Net sales as reported   $ 35,883            
        Adjusted net sales       $ 35,883          
                     
    Adjusted projected net sales increase for the three months ending March 31, 2022   $ 3,579       10 %    
                     
                     
Reconciliation between GAAP and Non-GAAP projected sales growth:            
  For the year ending December 31, 2022                
    Net sales per guidance (midpoint)   $ 163,990            
    Impact of currency exchange rate fluctuations     2,018            
        Adjusted projected net sales       $ 166,008          
                     
  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   $ 11,584       8 %    
                     
                     
        For the year ended    
        December 31, 2021   December 31, 2020        
Reconciliation between GAAP and Non-GAAP EBITDA                
  Net income as reported   $ 26,907   $ 21,220                  
  Interest (income) expense, net     2,022     1,103                  
  Amortization and depreciation expense     9,475     8,224                  
  Provision for income taxes     7,380     6,136                  
                     
  EBITDA   $ 45,784   $ 36,683                  
                     
  EBITDA percentage increase (decrease)         25 %            
                     

 


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Source: LeMaitre Vascular, Inc.