LeMaitre Q4 2023 Financial Results

ソース: Nasdaq GlobeNewswire / 27 2 2024 16:05:18 America/New_York

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 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 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

LeMaitre Q4 2023 Financial Results

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