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LeMaitre Q4 2023 Financial Results

February 27, 2024 at 4:06 PM EST

BURLINGTON, Mass., Feb. 27, 2024 (GLOBE NEWSWIRE) -- 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 GuidanceFull 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 Margin68.5%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 https://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.


     
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%
          


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

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