Q1 2022 Financial Results
- Sales of $39.6mm, +10% (+13% organic) vs. Q1 2021
- Op. income of $7.9mm, +0%
- Op. margin of 20%
- Net income of
$6 .0mm, +2% - Earnings of
$0 .27 per diluted share, -4% - Cash and investments
+$0 .9mm to$70 .9mm
Q1 2022 sales growth was driven by Artegraft, XenoSure, carotid shunts, allografts and valvulotomes. By geography, sales were driven by the
The gross margin decreased to 65.6% (vs. 66.3% in Q1 2021). The strong
Operating income of
Direct-to-Hospital in
In April, 2022 LeMaitre agreed to buy out its Korean distributor, JiSang, for
St. Etienne Factory Closure
In April, 2022 LeMaitre committed to the closure of its
This factory closure will result in approximately
Business Outlook – Impact of Stronger
Since the Company’s
Q2 2022 Guidance | 2022 Full Year Guidance | |
Sales | (Mid: |
(Mid: |
Gross Margin | 65.3% | 65.9% |
Op. Income | (Mid: |
(Mid |
Op. Income Excluding Special Charges | (Mid: |
(Mid: |
EPS | (Mid: |
(Mid: |
EPS Excluding Special Charges | (Mid: |
(Mid: |
Quarterly Dividend
On April 26, 2022, the Company's Board of Directors approved a quarterly dividend of $0.125/share of common stock. The dividend will be paid on June 2, 2022 to shareholders of record on May 17, 2022.
Share Repurchase Program
On
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 844-239-5284 (+1-512-961-6497 for international callers), using passcode 8054167. 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 guidance for operating income and EPS before special charges. 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, 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 for operating income and EPS excluding special charges 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
CONTACT:
781-425-1691
jjpellegrino@lemaitre.com
CONDENSED CONSOLIDATED BALANCE SHEETS | |||||||||
(amounts in thousands) | |||||||||
(unaudited) | |||||||||
Assets | |||||||||
Current assets: | |||||||||
Cash and cash equivalents | $ | 15,560 | $ | 13,855 | |||||
Short-term marketable securities | 55,322 | 56,104 | |||||||
Accounts receivable, net | 21,386 | 19,631 | |||||||
Inventory and other deferred costs | 46,664 | 46,104 | |||||||
Prepaid expenses and other current assets | 2,479 | 4,189 | |||||||
Total current assets | 141,411 | 139,883 | |||||||
Property and equipment, net | 16,683 | 17,059 | |||||||
Right-of-use leased assets | 14,687 | 15,071 | |||||||
65,945 | 65,945 | ||||||||
Other intangibles, net | 51,194 | 52,710 | |||||||
Deferred tax assets | 1,977 | 1,566 | |||||||
Other assets | 556 | 568 | |||||||
Total assets | $ | 292,453 | $ | 292,802 | |||||
Liabilities and stockholders' equity | |||||||||
Current liabilities: | |||||||||
Accounts payable | $ | 2,194 | $ | 2,340 | |||||
Accrued expenses | 12,918 | 16,332 | |||||||
Acquisition-related obligations | 1,283 | 1,271 | |||||||
Lease liabilities - short-term | 1,872 | 1,870 | |||||||
Total current liabilities | 18,267 | 21,813 | |||||||
Lease liabilities - long-term | 13,705 | 14,067 | |||||||
Deferred tax liabilities | 68 | 70 | |||||||
Other long-term liabilities | 2,626 | 2,701 | |||||||
Total liabilities | 34,666 | 38,651 | |||||||
Stockholders' equity | |||||||||
Common stock | 235 | 235 | |||||||
Additional paid-in capital | 183,305 | 181,630 | |||||||
Retained earnings | 91,420 | 88,125 | |||||||
Accumulated other comprehensive loss | (4,624 | ) | (3,435 | ) | |||||
(12,549 | ) | (12,404 | ) | ||||||
Total stockholders' equity | 257,787 | 254,151 | |||||||
Total liabilities and stockholders' equity | $ | 292,453 | $ | 292,802 | |||||
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS | ||||||||
(amounts in thousands, except per share amounts) | ||||||||
(unaudited) | ||||||||
For the three months ended | ||||||||
Net sales | $ | 39,561 | $ | 35,883 | ||||
Cost of sales | 13,599 | 12,084 | ||||||
Gross profit | 25,962 | 23,799 | ||||||
Operating expenses: | ||||||||
Sales and marketing | 7,850 | 6,466 | ||||||
General and administrative | 7,252 | 6,544 | ||||||
Research and development | 2,932 | 2,844 | ||||||
Total operating expenses | 18,034 | 15,854 | ||||||
Income from operations | 7,928 | 7,945 | ||||||
Other income (expense), net | ||||||||
Interest income | 108 | 1 | ||||||
Interest expense | - | (577 | ) | |||||
Foreign currency gain (loss) | (40 | ) | 124 | |||||
Income before income taxes | 7,996 | 7,493 | ||||||
Provision for income taxes | 1,958 | 1,564 | ||||||
Net income | $ | 6,038 | $ | 5,929 | ||||
Earnings per share of common stock | ||||||||
Basic | $ | 0.28 | $ | 0.29 | ||||
Diluted | $ | 0.27 | $ | 0.28 | ||||
Weighted - average shares outstanding: | ||||||||
Basic | 21,935 | 20,546 | ||||||
Diluted | 22,103 | 20,847 | ||||||
Cash dividends declared per common share | $ | 0.125 | $ | 0.110 | ||||
SELECTED NET SALES INFORMATION | ||||||||||||
(amounts in thousands) | ||||||||||||
(unaudited) | ||||||||||||
For the three months ended | ||||||||||||
$ | % | $ | % | |||||||||
$ | 26,543 | 67 | % | $ | 23,699 | 66 | % | |||||
10,494 | 27 | % | 9,862 | 27 | % | |||||||
2,524 | 6 | % | 2,322 | 7 | % | |||||||
Total |
$ | 39,561 | 100 | % | $ | 35,883 | 100 | % | ||||
NON-GAAP FINANCIAL MEASURES | ||||||||||||
(amounts in thousands) | ||||||||||||
(unaudited) | ||||||||||||
Reconciliation between GAAP and Non-GAAP sales growth: | ||||||||||||
For the three months ended |
||||||||||||
Net sales as reported | $ | 39,561 | ||||||||||
Impact of currency exchange rate fluctuations | 820 | |||||||||||
Adjusted net sales | $ | 40,381 | ||||||||||
For the three months ended |
||||||||||||
Net sales as reported | $ | 35,883 | ||||||||||
Adjusted net sales | $ | 35,883 | ||||||||||
Adjusted net sales increase for the three months ended |
$ | 4,498 | 13 | % | ||||||||
Reconciliation between GAAP and Non-GAAP projected sales growth: | ||||||||||||
For the three months ending |
||||||||||||
Net sales per guidance (midpoint) | $ | 41,100 | ||||||||||
Impact of currency exchange rate fluctuations | 1,695 | |||||||||||
Adjusted projected net sales | $ | 42,795 | ||||||||||
For the three months ended |
||||||||||||
Net sales as reported | $ | 40,670 | ||||||||||
Adjusted net sales | $ | 40,670 | ||||||||||
Adjusted projected net sales increase for the three months ending |
$ | 2,125 | 5 | % | ||||||||
Reconciliation between GAAP and Non-GAAP projected sales growth: | ||||||||||||
For the year ending |
||||||||||||
Net sales per guidance (midpoint) | $ | 161,961 | ||||||||||
Impact of currency exchange rate fluctuations | 5,055 | |||||||||||
Adjusted projected net sales | $ | 167,016 | ||||||||||
For the year ended |
||||||||||||
Net sales as reported | $ | 154,424 | ||||||||||
Adjusted net sales | $ | 154,424 | ||||||||||
Adjusted projected net sales increase for the year ending |
$ | 12,592 | 8 | % | ||||||||
Reconciliation between GAAP and Non-GAAP projected operating income: | |||||||||||
For the three months ending |
|||||||||||
Operating income per guidance (midpoint) | $ | 6,370 | |||||||||
Impact of special charges | 2,593 | ||||||||||
Adjusted projected operating income | $ | 8,963 | |||||||||
For the three months ended |
|||||||||||
Operating income as reported | $ | 11,106 | |||||||||
Adjusted operating income | $ | 11,106 | |||||||||
Adjusted projected operating income decrease for the three months ending |
$ | (2,143) | -19 | % | |||||||
Reconciliation between GAAP and Non-GAAP projected operating income: | |||||||||||
For the year ending |
|||||||||||
Operating income per guidance (midpoint) | $ | 32,714 | |||||||||
Impact of special charges | 3,103 | ||||||||||
Adjusted projected operating income | $ | 35,817 | |||||||||
For the year ending |
|||||||||||
Operating income as reported | $ | 36,425 | |||||||||
Adjusted operating income | $ | 36,425 | |||||||||
Adjusted projected operating income decrease for the year ending |
$ | (608) | -2 | % | |||||||
Reconciliation between GAAP and Non-GAAP projected EPS: | |||||||||||
For the three months ending |
|||||||||||
EPS per guidance (midpoint) | $ | 0.23 | |||||||||
Impact of special charges | 0.09 | ||||||||||
Adjusted EPS | $ | 0.32 | |||||||||
For the three months ended |
|||||||||||
EPS as reported | $ | 0.40 | |||||||||
Adjusted EPS | $ | 0.40 | |||||||||
Adjusted projected EPS decrease for the three months ending |
$ | (0.08) | -20 | % | |||||||
Reconciliation between GAAP and Non-GAAP projected EPS: | |||||||||||
For the year ending |
|||||||||||
EPS per guidance (midpoint) | $ | 1.15 | |||||||||
Impact of special charges | 0.11 | ||||||||||
Adjusted EPS | $ | 1.26 | |||||||||
For the year ended |
|||||||||||
EPS as reported | $ | 1.25 | |||||||||
Adjusted EPS | $ | 1.25 | |||||||||
Adjusted projected EPS increase for the year ending |
$ | 0.01 | 1 | % |
Source: LeMaitre Vascular, Inc.