lmat20240227_8k.htm
false 0001158895 0001158895 2024-02-27 2024-02-27

 
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
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):  February 27, 2024
 
LeMaitre Vascular, Inc.
(Exact name of registrant as specified in its charter)
 
Commission File Number:  001-33092
 
Delaware
 
04-2825458
(State or other jurisdiction of
 
(IRS Employer
incorporation)
 
Identification No.)
 
63 Second Avenue
Burlington, MA 01803
(Address of principal executive offices, including zip code)
 
781-221-2266
(Registrants 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))
 
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
LMAT 
The Nasdaq Global Market
 
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 (§240.12b-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.   ☐
 
 

 
 
Item 2.02. Results of Operations and Financial Condition.
 
On February 27, 2024, LeMaitre Vascular, Inc. (the “Company”) issued a press release regarding its preliminary financial and operational results for the quarter ended December 31, 2023. 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.
 
 
Disclaimer on Forward-Looking Statements
 
This current report on Form 8-K contains forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Statements 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 predicted. These risks and uncertainties include risks and uncertainties included under the heading “Risk Factors” in the Company’s most recent Annual Report on Form 10-K, as updated by its 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.
 
 
Item 9.01. Financial Statements and Exhibits.
 
The following exhibits are furnished or filed as part of this Report, as applicable:
 
(d)   Exhibits.
 
     
Exhibit No.
 
Description
     
99.1
 
104   Cover Page Interactive Data File (embedded within the Inline XBRL document)
 
 

 
 
Signature(s)
 
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: February 27, 2024
By:
Joseph P. Pellegrino, Jr.
/s/ JOSEPH P. PELLEGRINO, JR.
   
Joseph P. Pellegrino, Jr.
Chief Financial Officer
 
 

 
 
Exhibit Index
 
   
Exhibit No.
Description
   
99.1
Press release issued by LeMaitre Vascular, Inc. on February 27, 2024.
104 Cover Page Interactive Data File (embedded within the Inline XBRL document)
 
 
ex_631464.htm

Exhibit 99.1

 

LeMaitre Q4 2023 Financial Results

 

BURLINGTON, MA, February 27, 2024 - LeMaitre (Nasdaq:LMAT), a provider of vascular devices, implants and services, today reported Q4 2023 results, announced a $0.16/share quarterly dividend and provided guidance.

 

Q4 2023 Financial Results

 

 

Sales $48.9mm, +19% (+14% organic) vs. Q4 2022

 

Gross margin 68.1%, +450 bps

 

Op. income $10.2mm, +46%

 

Op. margin 21%

 

Net income $8.5mm, +50%

 

Earnings per diluted share $0.38, +49%

 

Cash up $8.1mm sequentially to $105.1mm

 

Bovine patches (+18%), allografts (+52%), valvulotomes (+12%), carotid shunts (+16%) and distributed porcine patches drove Q4 sales. EMEA sales increased 21%, the Americas 20% and APAC 11%.

 

The gross margin increased to 68.1% in Q4 (vs. 63.6% in Q4 2022) driven primarily by average selling price increases, as well as manufacturing efficiencies.

 

Operating income of $10.2mm was up 46% vs. Q4 2022. Operating expenses grew 21% year-over-year due to increased sales commissions, other compensation and CE-related regulatory costs.

 

Chairman/CEO George LeMaitre said “Our 19% sales growth and gross margin recovery produced 46% op. income growth in Q4. Full year 2024 guidance implies an operating margin of 21%, up from 19% in 2023.”

 

Business Outlook

 

 

Q1 2024 Guidance

Full Year 2024 Guidance

Sales

$50.5mm - $52.9mm

(Mid: $51.7mm, +10%, +7% Org.)

$209.7mm - $214.3mm

(Mid: $212.0mm, +10%, +9% Org.)

Gross Margin

68.5%

68.0%

Op. Income

$9.7mm - $11.3mm

(Mid: $10.5mm, +33%)

(Mid: $10.5mm, +28% Ex-Special)*

$43.4mm - $46.5mm

(Mid $45.0mm, +22%)

(Mid: $45.0mm, +21%, Ex-Special)*

EPS

$0.36 - $0.41

(Mid: $0.39, +42%)

(Mid: $0.39, +37%, Ex-Special)*

$1.60 - $1.71

(Mid: $1.65, +23%)

(Mid: 1.65, +22%, Ex-Special)*

*Special charges in 2023 are related to the St. Etienne factory closure.

 

Quarterly Dividend

 

On February 21, 2024, the Company's Board of Directors approved a quarterly dividend of $0.16/share of common stock. The dividend will be paid on March 28, 2024 to shareholders of record on March 14, 2024.

 

Share Repurchase Program

 

On February 21, 2024, the Company's Board of Directors authorized the repurchase of up to $50.0mm of the Company’s common stock. The repurchase program may be suspended or discontinued at any time and will conclude on February 21, 2025, 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. Access to the live call is available by registering online here. All registrants will receive dial-in information and a PIN allowing them to access the live call. The audio webcast can also be accessed live or via replay through a webcast at www.lemaitre.com/investor. 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 www.lemaitre.com.

 

Use of Non-GAAP Financial Measures

 

LeMaitre management believes that in order to better understand the Company's short- 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, including EBITDA. This press release also provides guidance for operating income and EPS excluding the special charge relating to the closure of our St. Etienne factory and revenue related the Aziyo distribution agreement. 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 the aforementioned non-GAAP profitability measures 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, factory closures, 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 the presentation of guidance described above for operating income and EPS provides an alternative and meaningful view of the Company’s profitability.

 

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 regulatory requirements to market and sell our products both in the U.S. and outside of the U.S.; risks from implementing a new enterprise resource planning system; the risks from competition from other companies; 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, 2023

   

December 31, 2022

 
   

(unaudited)

         

Assets

               
                 

Current assets:

               

Cash and cash equivalents

  $ 24,269     $ 19,134  

Short-term marketable securities

    80,805       63,557  

Accounts receivable, net

    25,064       22,040  

Inventory and other deferred costs

    58,080       50,271  

Prepaid expenses and other current assets

    6,380       6,731  

Total current assets

    194,598       161,733  
                 

Property and equipment, net

    21,754       17,901  

Right-of-use leased assets

    18,027       15,634  

Goodwill

    65,945       65,945  

Other intangibles, net

    41,711       46,527  

Deferred tax assets

    1,003       1,745  

Other assets

    3,740       991  
                 

Total assets

  $ 346,778     $ 310,476  
                 
                 

Liabilities and stockholders' equity

               
                 

Current liabilities:

               

Accounts payable

  $ 3,734     $ 2,903  

Accrued expenses

    23,650       19,967  

Acquisition-related obligations

    24       573  

Lease liabilities - short-term

    2,471       1,886  

Total current liabilities

    29,879       25,329  
                 

Lease liabilities - long-term

    16,624       14,710  

Deferred tax liabilities

    107       69  

Other long-term liabilities

    2,268       2,167  

Total liabilities

    48,878       42,275  
                 

Stockholders' equity

               

Common stock

    239       237  

Additional paid-in capital

    200,755       189,268  

Retained earnings

    115,430       97,773  

Accumulated other comprehensive loss

    (4,625 )     (6,031 )

Treasury stock

    (13,899 )     (13,046 )

Total stockholders' equity

    297,900       268,201  
                 

Total liabilities and stockholders' equity

  $ 346,778     $ 310,476  

 

 

 

 

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, 2023

   

December 31, 2022

   

December 31, 2023

   

December 31, 2022

 
                                 

Net sales

  $ 48,883     $ 40,954     $ 193,484     $ 161,651  

Cost of sales

    15,618       14,900       66,435       56,755  
                                 

Gross profit

    33,265       26,054       127,049       104,896  
                                 

Operating expenses:

                               

Sales and marketing

    10,268       8,600       41,054       32,921  

General and administrative

    8,440       6,933       31,832       28,745  

Research and development

    4,351       3,554       16,966       13,294  

Restructuring

    -       -       485       3,107  

Total operating expenses

    23,059       19,087       90,337       78,067  
                                 

Income from operations

    10,206       6,967       36,712       26,829  
                                 

Other income (expense), net

                               

Interest income

    992       447       3,077       986  

Other income (loss), net

    115       384       (314 )     (325 )
                                 

Income before income taxes

    11,313       7,798       39,475       27,490  
                                 

Provision for income taxes

    2,848       2,171       9,370       6,854  
                                 

Net income

  $ 8,465     $ 5,627     $ 30,105     $ 20,636  
                                 

Earnings per share of common stock

                               

Basic

  $ 0.38     $ 0.26     $ 1.36     $ 0.94  
                                 

Diluted

  $ 0.38     $ 0.25     $ 1.34     $ 0.93  
                                 

Weighted - average shares outstanding:

                               

Basic

    22,278       22,023       22,217       21,975  
                                 

Diluted

    22,459       22,238       22,423       22,171  
                                 
                                 

Cash dividends declared per common share

  $ 0.140     $ 0.125     $ 0.560     $ 0.500  

 

 

 

 

LEMAITRE VASCULAR, INC. (NASDAQ: LMAT)

SELECTED NET SALES INFORMATION

(amounts in thousands)

(unaudited)

 

   

For the three months ended

   

For the year ended

 
   

December 31, 2023

   

December 31, 2022

   

December 31, 2023

   

December 31, 2022

 
   

$

   

%

   

$

   

%

   

$

   

%

   

$

   

%

 

Net Sales by Geography

                                                               

Americas

  $ 32,812       67 %   $ 27,415       67 %   $ 130,308       67 %   $ 109,439       68 %

Europe, Middle East and Africa

    12,920       26 %     10,689       26 %     51,099       27 %     41,854       26 %

Asia Pacific

    3,151       7 %     2,850       7 %     12,077       6 %     10,358       6 %

Total Net Sales

  $ 48,883       100 %   $ 40,954       100 %   $ 193,484       100 %   $ 161,651       100 %

 

 

 

 

LEMAITRE VASCULAR, INC. (NASDAQ: LMAT)

NON-GAAP FINANCIAL MEASURES

(amounts in thousands)

(unaudited)

 

   

For the three months ended

   

For the year ended

 
   

December 31, 2023

   

December 31, 2022

   

December 31, 2023

   

December 31, 2022

 

Reconciliation between GAAP and Non-GAAP EBITDA

                               

Net income as reported

  $ 8,465     $ 5,627     $ 30,105     $ 20,636  

Interest (income) expense, net

    (992 )     (447 )     (3,077 )     (986 )

Amortization and depreciation expense

    2,443       2,288       9,515       9,433  

Provision for income taxes

    2,848       2,171       9,370       6,854  
                                 

EBITDA

  $ 12,764     $ 9,639     $ 45,913     $ 35,937  
                                 

EBITDA percentage increase (decrease)

            32 %             28 %

 

 

 

 

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, 2023

                       

Net sales as reported

  $ 48,883                  

Net distribution sales

    (1,479 )                

Impact of currency exchange rate fluctuations

    (556 )                

Adjusted net sales

          $ 46,848          
                         

For the three months ended December 31, 2022

                       

Net sales as reported

  $ 40,954                  

Adjusted net sales

          $ 40,954          
                         

Adjusted net sales increase for the three months ended December 31, 2023

          $ 5,894       14 %
                         
                         

Reconciliation between GAAP and Non-GAAP projected sales growth:

                       

For the three months ending March 31, 2024

                       

Net sales per guidance (midpoint)

  $ 51,722                  

Net distribution sales

    (1,247 )                

Impact of currency exchange rate fluctuations

    (35 )                

Adjusted projected net sales

          $ 50,440          
                         

For the three months ended March 31, 2023

                       

Net sales as reported

  $ 47,075                  

Adjusted net sales

          $ 47,075          
                         

Adjusted projected net sales increase for the three months ending March 31, 2024

    $ 3,365       7 %
                         
                         

Reconciliation between GAAP and Non-GAAP projected sales growth:

                       

For the year ending December 31, 2024

                       

Net sales per guidance (midpoint)

  $ 212,000                  

Net distribution sales

    (1,574 )                

Impact of currency exchange rate fluctuations

    133                  

Adjusted projected net sales

          $ 210,559          
                         

For the year ended December 31, 2023

                       

Net sales as reported

  $ 193,484                  

Adjusted net sales

          $ 193,484          
                         

Adjusted projected net sales increase for the year ending December 31, 2024

    $ 17,075       9 %
                         
                         

Reconciliation between GAAP and Non-GAAP projected operating income:

                       

For the three months ending March 31, 2024

                       

Operating income per guidance (midpoint)

  $ 10,490                  

Adjusted projected operating income

          $ 10,490          
                         

For the three months ended March 31, 2023

                       

Operating income as reported

  $ 7,874                  

Impact of special charge

    305                  

Adjusted operating income

          $ 8,179          
                         

Adjusted projected operating income increase for the three months ending March 31, 2024

    $ 2,311       28 %
                         
                         

Reconciliation between GAAP and Non-GAAP projected operating income:

                       

For the year ending December, 2024

                       

Operating income per guidance (midpoint)

  $ 44,955                  

Adjusted projected operating income

          $ 44,955          
                         

For the year ended December 31, 2023

                       

Operating income as reported

  $ 36,712                  

Impact of special charge

    485                  

Adjusted operating income

          $ 37,197          
                         

Adjusted projected operating income increase for the year ending December 31, 2024

    $ 7,758       21 %
                         
                         

Reconciliation between GAAP and Non-GAAP projected EPS:

                       

For the three months ending March 31, 2024

                       

EPS per guidance (midpoint)

  $ 0.39                  

Adjusted EPS

          $ 0.39          
                         

For the three months ended March 31, 2023

                       

EPS as reported

  $ 0.27                  

Impact of special charge, including tax

    0.01                  

Adjusted EPS

          $ 0.28          
                         

Adjusted projected EPS increase for the three months ending March 31, 2024

    $ 0.11       37 %
                         
                         

Reconciliation between GAAP and Non-GAAP projected EPS:

                       

For the year ending December 31, 2024

                       

EPS per guidance (midpoint)

  $ 1.65                  

Adjusted EPS

          $ 1.65          
                         

For the year ended December 31, 2023

                       

EPS as reported

  $ 1.34                  

Impact of special charge, including tax

    0.01                  

Adjusted EPS

          $ 1.35          
                         

Adjusted projected EPS increase for the year ending December 31, 2024

          $ 0.30       22 %