false 0001158895 0001158895 2020-10-29 2020-10-29

Washington, D.C. 20549
Form 8-K
Current Report
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported):  October 29, 2020
LeMaitre Vascular, Inc.
(Exact name of registrant as specified in its charter)
Commission File Number:  001-33092
(State or other jurisdiction of
(IRS Employer
Identification No.)
63 Second Avenue
Burlington, MA 01803
(Address of principal executive offices, including zip code)
(Registrant’s telephone number, including area code)
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
   Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

   Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

   Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

   Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Indicate by checkmark whether the company is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (240.12c-2 of this chapter).
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.   ☐
 Securities registered pursuant to Section 12(b) of the Exchange Act:
Title of each class
Trading symbol
Name of exchange on which registered
Common stock, $0.01 par value per share
The Nasdaq Global Market


Item 2.02. Results of Operations and Financial Condition.
On October 29, 2020, LeMaitre Vascular, Inc. (the “Company”) issued a press release regarding its preliminary financial and operational results for the quarter ended September 30, 2020. A copy of the press release is furnished as Exhibit 99.1 to this Report.
The information in this Item 2.02, including Exhibit 99.1 attached hereto, is intended to be furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 (the “Exchange Act”) or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933 or the Exchange Act, except as expressly set forth by specific reference in such filing.
Item 9.01. Financial Statements and Exhibits.
The following exhibits are furnished or filed as part of this Report, as applicable:
Exhibit No.
104 Cover Page Interactive Data File (embedded within the Inline XBRL document).
Exhibit Index
Exhibit No.
Press release issued by LeMaitre Vascular, Inc. on October 29, 2020.

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
LeMaitre Vascular, Inc.
Date: October 29, 2020
Joseph P. Pellegrino, Jr.
Joseph P. Pellegrino, Jr.
Chief Financial Officer

Exhibit 99.1



LeMaitre Vascular Announces Q3 2020 Financial Results


BURLINGTON, MA, October 29, 2020 - LeMaitre Vascular, Inc. (Nasdaq:LMAT), a provider of vascular devices, implants and services, today reported Q3 2020 results and announced a $0.095/share quarterly dividend.


Q3 2020 Results


     Sales of $36.4mm, +25% (-3% organic) vs. Q3 2019

●     Op. income of $10.0mm, +70%

●     Op. margin of 28%

●     Net income of $7.5mm, +45%

●     Earnings of $0.37 per diluted share, +44%

●     EBITDA of $12.6mm, +79%

●     Cash & equivalents up $9.3mm to $34.4mm

●     Debt down $4.5mm to $60.5mm


The Company posted sales growth in the Americas (+37%), Asia/Pac (+12%) and Europe/Middle East/Africa (+6%). The three recent acquisitions (Artegraft, CardioCel and Eze-Sit) and the return of elective surgery drove growth.


Gross margin decreased to 62.3% in Q3 2020 (vs. 69.3% in Q3 2019) primarily due to Artegraft purchase-price accounting.


Operating expenses decreased 11% to $12.7mm in Q3 2020 (vs. $14.3mm). This decline was driven by COVID-related cost-cuts, including reduced sales & marketing expenses.


Chairman & CEO George LeMaitre said, “Record sales in Q3 and tight expense control led to healthy bottom-line results and an improved balance sheet.” 



Business Outlook


Q4 2020 Sales  

$34.0mm - $38.0mm


Q4 2020 Gross Margin



Q4 2020 Operating Income  

$7.1mm - $9.7mm


Q4 2020 Earnings Per Share  

$0.25 - $0.35

(Midpoint: +32%)

2020 Sales  

$125.8mm - $129.8mm


2020 Gross Margin



2020 Operating Income  

$26.3mm - $28.9mm


2020 Earnings Per Share  

$0.94 - $1.04

(Midpoint: +12%)



Quarterly Dividend


On October 20, 2020, the Company's Board of Directors approved a quarterly dividend of $0.095/share of common stock. The dividend will be paid on December 3, 2020 to shareholders of record on November 19, 2020.



Share Repurchase Program


On February 13, 2020, the Company's Board of Directors authorized the repurchase of up to $10.0mm of the Company’s common stock. The repurchase program may be suspended or discontinued at any time and will conclude on February 14, 2021, unless extended by the Board.




Conference Call Reminder


Management will conduct a conference call at 5:00 p.m. ET today to review the Company's Q3 2020 financial results. 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 844-239-5284 (+1 512-961-6497 for international callers), using passcode 4052529. 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 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 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 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.


The Company has also reported non-GAAP outstanding debt, which excludes the impact of unamortized deferred financing costs. The Company believes that considering its debt in this manner provides a view of the amount owed on a cash basis. 



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 duration and severity of the impact of COVID-19 on the global economy, our customers, our suppliers and our company; the duration of the lapse in CE mark approval for certain of our devices; compliance with foreign regulatory requirements to market and sell our products outside the United States; 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 Vascular








(amounts in thousands)



September 30, 2020


December 31, 2019






Current assets:


Cash and cash equivalents

  $ 29,279     $ 11,786  

Short-term marketable securities

    5,097       20,895  

Accounts receivable, net

    19,625       16,572  

Inventory and other deferred costs

    45,639       39,527  

Prepaid expenses and other current assets

    2,612       3,312  

Total current assets

    102,252       92,092  

Property and equipment, net

    14,133       14,854  

Right-of-use leased assets

    16,373       15,208  


    65,945       39,951  

Other intangibles, net

    60,539       24,893  

Deferred tax assets

    1,385       1,084  

Other assets

    942       259  

Total assets

  $ 261,569     $ 188,341  

Liabilities and stockholders' equity


Current liabilities:


Current portion of long-term debt

  $ 2,250     $ -  

Revolving line of credit

    21,000       -  

Accounts payable

    2,168       2,604  

Accrued expenses

    14,679       14,014  

Acquisition-related obligations

    2,543       2,476  

Lease liabilities - short-term

    1,806       1,757  

Total current liabilities

    44,446       20,851  

Long-term debt

    36,229       -  

Lease liabilities - long-term

    15,192       13,955  

Deferred tax liabilities

    90       1,179  

Other long-term liabilities

    4,629       4,215  

Total liabilities

    100,586       40,200  

Stockholders' equity


Common stock

    218       217  

Additional paid-in capital

    109,640       105,934  

Retained earnings

    65,457       57,029  

Accumulated other comprehensive loss

    (3,009 )     (4,007 )

Treasury stock

    (11,323 )     (11,032 )

Total stockholders' equity

    160,983       148,141  

Total liabilities and stockholders' equity

  $ 261,569     $ 188,341  






(amounts in thousands, except per share amounts)




For the three months ended


For the nine months ended

    September 30, 2020    

September 30, 2019

    September 30, 2020    

September 30, 2019


Net sales

  $ 36,416     $ 29,100     $ 91,818     $ 87,062  

Cost of sales

    13,712       8,934               27,117  

Gross profit

    22,704       20,166       60,216       59,945  

Operating expenses:


Sales and marketing

    5,157       7,429       17,788       22,887  

General and administrative

    5,901       4,551       16,425       14,026  

Research and development

    2,098       2,281       7,230       6,777  

Gain on sale of building

    (470 )     -       (470 )     -  

Total operating expenses

    12,686       14,261               43,690  

Income from operations

    10,018       5,905       19,243       16,255  

Other income:


Interest expense

    (665 )     -       (732 )     -  
Other income (loss), net     25       (15 )             236  

Income before income taxes

    9,378       5,890       18,425       16,491  

Provision for income taxes

    1,865       706               3,170  

Net income

  $ 7,513       5,184     $ 14,187       13,321  

Earnings per share of common stock



  $ 0.37       0.26     $ 0.70       0.68  


  $ 0.37       0.25     $ 0.69       0.66  

Weighted - average shares outstanding:



    20,254       19,871       20,201       19,731  


    20,474       20,378       20,434       20,258  
Cash dividends declared per common share   $ 0.095       0.085     $ 0.285       0.255  






(amounts in thousands)





For the three months ended


For the nine months ended


September 30, 2020


September 30, 2019


September 30, 2020


September 30, 2019










Net Sales by Geography



  $ 24,184       66 %   $ 17,698       61 %   $ 57,462       63 %   $ 51,584       59 %

Europe/Middle East/Africa

    10,039       28 %     9,452       32 %     28,339       31 %     29,479       34 %

Asia/Pacific Rim

    2,193       6 %     1,950       7 %     6,017       6 %     5,999       7 %

Total Net Sales

  $ 36,416       100 %   $ 29,100       100 %   $ 91,818       100 %   $ 87,062       100 %






(amounts in thousands)



Reconciliation between GAAP and Non-GAAP sales growth:


For the three months ended September 30, 2020


Net sales as reported

  $ 36,416                  

Impact of currency exchange rate fluctuations

    (484 )                

Net impact of acquisitions excluding currency

    (7,584 )                

Adjusted net sales

          $ 28,348          

For the three months ended September 30, 2019


Net sales as reported

  $ 29,100                  

Adjusted net sales

          $ 29,100          

Adjusted net sales increase for the three months ended September 30, 2020

    $ (752 )     -3 %

Reconciliation between GAAP and non-GAAP debt outstanding:


As of September 30, 2020


Debt as reported

  $ 59,479                  

Add back unamortized deferred financing costs


Adjusted debt outstanding

          $ 60,500          





For the three months ended


For the nine months ended


September 30, 2020


September 30, 2019


September 30, 2020


September 30, 2019


Reconciliation between GAAP and Non-GAAP EBITDA


Net income as reported

  $ 7,513     $ 5,184     $ 14,187     $ 13,321  

Interest (income) expense, net

    650       (193 )     537       (574 )

Amortization and depreciation expense

    2,599       1,345       5,778       3,975  

Provision for income taxes

    1,865       706       4,238       3,170  


  $ 12,627     $ 7,042     $ 24,740     $ 19,892  

EBITDA percentage increase

            79 %             24 %