Prepared By R.R. Donnelley Financial -- Form 8-K
 
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):  08/01/2007
 
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
(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))
 

Information to be included in the report

 
Item 2.02.    Results of Operations and Financial Condition
 
On August 1, 2007, LeMaitre Vascular, Inc. issued a press release regarding its financial and operational results for the second quarter ended June 30, 2007. A copy of the press release is furnished as Exhibit 99.1 to this report.

The information in this report, including the Exhibit 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 exhibit is furnished as part of this report, where indicated:

(d) Exhibits.

Exhibit No.   Description

99.1                Press release issued by LeMaitre Vascular, Inc. on August 1, 2007, announcing its financial and operational results for the second quarter ended June 30, 2007, furnished herewith.
 

 

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: August 01, 2007
     
By:
 
/s/    Christopher H. Martin

               
Christopher H. Martin
               
Assistant Secretary
 
 


 

Exhibit Index
 
Exhibit No.

  
Description

EX-99.1
  
Press Release

 

For information contact:

J.J. Pellegrino

Chief Financial Officer

LeMaitre Vascular, Inc.

781.221.2266 x 106

jpellegrino@lemaitre.com

 

LeMaitre Vascular Reports Q2 2007 Revenue of $10.3 Million, an 18% Increase

BURLINGTON, Mass., August 1, 2007 /PRNewswire-FirstCall via COMTEX Network/ -- LeMaitre Vascular, Inc. (NASDAQ: LMAT), a provider of peripheral vascular devices and implants, today announced Q2 2007 financial results. Revenues for Q2 2007 were $10.3 million, a quarterly record, and an increase of 18% versus Q2 2006.

Q2 2007 revenues increased 46% in the Company's Endovascular and Dialysis Access category and 8% in the Vascular category, while revenues decreased 3% in the General Surgery category. Sales growth was driven in part by the continued acceleration of the endovascular procedure market, productivity gains from recently hired sales representatives, direct marketing efforts, and the distribution of the Powerlink stent graft in Europe.

For Q2 2007, the Company reported a gross margin of 73.8%, versus 69.6% in Q2 2006. Q2 2006 results included a one time inventory charge of $277,000 resulting from the shutdown of the Expedial dialysis graft product line. The Company ended Q2 2007 with $27.9 million in cash and marketable securities, compared with $28.6 million at the end of Q1 2007.

George W. LeMaitre, Chairman and CEO said, "I am pleased to report that we continue to deliver on our plan. We posted solid sales gains in Q2 2007 and have improved our year-over-year sales growth rate in each of the last three quarters. During Q2 2007 we also received approval from the FDA for our pivotal UNITE abdominal stent graft trial, enabling Dr. Karthikeshwar Kasirajan to implant our first UNITE stent graft at Emory University Hospital. In addition, the Company was able to effectively control its bottom line in Q2 2007, despite continuing to invest in its sales and R&D efforts."

The operating loss for Q2 2007 was $447,000, compared to an operating loss of $1,050,000 for Q2 2006. Q2 2007 operating losses were primarily due to increased sales force and R&D expenditures, as well as the costs associated with being a public company. Q2 2006 operating losses included an impairment charge of $406,000 for the Expedial product line write-down, as well as a $147,000 restructuring charge from the consolidation of the Company's Phoenix facility.

The Company reported net income of $227,000 for Q2 2007, or $0.01 per basic and diluted share, compared to a net loss of $1,089,000, or $0.14 per basic and diluted share, for Q2 2006. Q2 2007 net income benefited from interest income of $344,000, as well as a significant tax benefit related to the Company's Japanese subsidiary.

Sales and marketing expenses for Q2 2007 increased 23% to $4,737,000 from $3,865,000 for Q2 2006. The Company ended Q2 2007 with 48 sales representatives, compared to 37 at the end of Q2 2006.

For Q2 2007, general and administrative expenses increased by 27% over Q2 2006, to $2,206,000, primarily due to the higher costs associated with being a publicly-traded company.

R & D expenses increased 14% to $1,118,000 for Q2 2007, compared to $985,000 for Q2 2006. The increase was driven largely by the hiring of additional product development engineers and related product development expenses.

Business Outlook

The Company reaffirmed prior 2007 revenue guidance of $39.5-$41.0 million. The Company also expects to record a net loss in 2007 based on the further development of its sales force, as well as increased investment in R&D. The Company reiterated its goal of achieving profitability by the end of 2008. In addition, the Company expects to employ 50-55 sales representatives in Q1 2008. The Company's guidance for future financial performance does not include the impact of any potential acquisitions.

Conference Call Reminder

Management will conduct a conference call at 5:00 p.m. EDT today to review the Company's financial results. The conference call will be broadcast live over the internet. Individuals who are interested in listening to the webcast should log on to the Company's website at www.lemaitre.com/investor. The conference call may also be accessed by dialing 866-761-0749 (1-617-614-2707 for international callers) using passcode: 41292671. For interested individuals unable to join the live conference call, a replay will be available on the Company's website.

About LeMaitre Vascular

LeMaitre Vascular is a provider of devices for the treatment of peripheral vascular disease. We develop, manufacture and market disposable and implantable vascular devices to address the needs of vascular surgeons and interventionalists. The Company's devices and implants are used to treat peripheral vascular disease; a condition that we estimate affects more than 20 million people worldwide.

Well-known to vascular surgeons, the Company's diversified portfolio of peripheral vascular devices and implants consists of brand name products including the EndoFit and UniFit stent grafts, the Expandable LeMaitre Valvulotome, the Pruitt-Inahara Carotid Shunt and the AnastoClip Vessel Closure System.

LeMaitre and the LeMaitre Vascular logo are trademarks of LeMaitre Vascular, Inc., registered in the U.S. and other countries. This press release contains other trademarks and trade names of the Company and other third parties, which are the properties of their respective owners.

For more information about the Company, please visit http://www.lemaitre.com.

 

Forward-Looking Statements

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. Specifically, statements regarding the Company's financial guidance for 2007 and 2008, and its operational objectives for 2007, and enrollment in the Company's UNITE abdominal stent graft clinical study, are forward-looking statements involving risks and uncertainties. The Company's Q2 2007 interim financial statements, as discussed in this release, are preliminary and unaudited, and subject to adjustment. 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 include, but are not limited to, risks related to product demand and market acceptance of the Com pany's products, the significant competition the Company faces from other companies, technologies and alternative medical procedures, the Company's ability to expand its sales force, particularly in markets where the Company thinks it is currently underrepresented, the Company's ability to expand its product offerings through internal development or acquisition, the Company's ability to realize the anticipated benefits of its acquisitions, disruption at the Company's single manufacturing facility, the Company's lack of experience with and general uncertainty related to seeking regulatory approvals for its products, particularly in the United States, potential claims of third parties that the Company's products infringe their intellectual property rights and the risks and uncertainties described in the Company's Annual Report on Form 10-K for the year ended December 31, 2006, under the heading "Risk Factors" filed with the SEC, and available on its investor relations website at http://www.lemaitre.c om and on the SEC's website at http://www.sec.gov, and in subsequent SEC filings. 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.

 

Financial Statements

LEMAITRE VASCULAR, INC (NASDAQ: LMAT)

CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS

(amounts in thousands, except share data)

(unaudited)

 

 

For the three months ended:

 

For the six months ended:

       
 

June 30, 2007

 

June 30, 2006

 

June 30, 2007

 

June 30, 2006

               

Net sales

$10,315

 

$8,760

 

$20,198

 

$17,331

Cost of sales

2,702

 

2,665

 

5,215

 

4,926

Gross profit

7,613

 

6,095

 

14,983

 

12,405

               

Operating expenses:

             

Sales and marketing

4,737

 

3,865

 

9,548

 

7,114

General and administrative

2,206

 

1,742

 

4,576

 

3,514

Research and development

1,118

 

985

 

2,272

 

1,781

Restructuring charges

(1)

 

147

 

5

 

178

Impairment charge

-

 

406

 

7

 

406

Total operating expenses

8,060

 

7,145

 

16,408

 

12,993

               

Loss from operations

(447)

 

(1,050)

 

(1,425)

 

(588)

               

Other income (expense):

             

Interest income (expense)

344

 

(54)

 

696

 

(100)

Other income

28

 

86

 

53

 

131

Total other income

372

 

32

 

749

 

31

               

Loss before income taxes

(75)

 

(1,018)

 

(676)

 

(557)

               

Provision (benefit) for income taxes

(302)

 

71

 

(274)

 

162

               

Net income (loss)

$227

 

$(1,089)

 

$(402)

 

$(719)

               

Net income (loss) per share of common stock:

             

Basic

$0.01

 

$(0.14)

 

$(0.03)

 

$(0.11)

Diluted

$0.01

 

$(0.14)

 

$(0.03)

 

$(0.11)

               

Weighted average shares outstanding:

             

Basic

15,378

 

8,539

 

15,358

 

8,496

Diluted

15,760

 

8,539

 

15,358

 

8,496

 

LEMAITRE VASCULAR, INC (NASDAQ: LMAT)

CONDENSED CONSOLIDATED BALANCE SHEETS

(amounts in thousands)

 

 

June 30, 2007

 

December 31, 2006

 

(unaudited)

 

(audited)

       

Assets

     
       

Current assets:

     

Cash and cash equivalents

$12,474

 

$15,391

Marketable securities

15,459

 

15,417

Accounts receivable, net

6,080

 

5,060

Inventories

7,335

 

6,081

Other current assets

1,344

 

1,692

Total current assets

42,692

 

43,641

       

Property and equipment, net

2,352

 

2,389

Goodwill

9,161

 

8,853

Other intangibles, net

1,864

 

1,930

Other assets

159

 

150

Total assets

$56,228

 

$56,963

       
       

Liabilities and Stockholders' Equity

     
       

Current liabilities:

     

Accounts payable

$1,311

 

$818

Accrued expenses

3,562

 

4,528

Current portion of capital leases

-

 

32

Total current liabilities

4,873

 

5,378

Deferred tax liabilities

833

 

833

Other long-term liabilities

26

 

53

Total liabilities

5,732

 

6,264

       

Stockholders' equity:

     

Common stock

155

 

153

Additional paid-in capital

60,706

 

60,504

Accumulated deficit

(10,348)

 

(9,946)

Accumulated other comprehensive income

68

 

73

Less: Treasury stock

(85)

 

(85)

Total stockholders' equity

50,496

 

50,699

Total liabilities and stockholders' equity

$56,228

 

$56,963

 

LEMAITRE VASCULAR, INC (NASDAQ: LMAT)

SELECTED NET SALES INFORMATION

(amounts in thousands)

(unaudited)

 

 

For the three months ended:

 

For the six months ended:

       
 

June 30, 2007

 

June 30, 2006

 

June 30, 2007

 

June 30, 2006

 

$

 

%

 

$

 

%

 

$

 

%

 

$

 

%

Net Sales by Product Category:

                             

Endovascular & Dialysis

$3,672

 

36%

 

$2,522

 

29%

 

$7,045

 

35%

 

$4,849

 

28%

Vascular

5,660

 

55%

 

5,222

 

59%

 

11,234

 

56%

 

10,494

 

61%

General Surgery

983

 

9%

 

1,016

 

12%

 

1,919

 

9%

 

1,988

 

11%

Total Net Sales

$10,315

 

100%

 

$8,760

 

100%

 

$20,198

 

100%

 

$17,331

 

100%

                               

Net Sales by Geography

                             

United States and Canada

$6,074

 

59%

 

$5,595

 

64%

 

$11,996

 

59%

 

$11,118

 

64%

Outside the United States and Canada

4,241

 

41%

 

3,165

 

36%

 

8,202

 

41%

 

6,213

 

36%

 

$10,315

 

100%

 

$8,760

 

100%

 

$20,198

 

100%

 

$17,331

 

100%