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LeMaitre Q2 2022 Financial Results
ソース: Nasdaq GlobeNewswire / 28 7 2022 16:05:51 America/New_York
BURLINGTON, Mass., July 28, 2022 (GLOBE NEWSWIRE) -- LeMaitre (Nasdaq:LMAT), a provider of vascular devices, implants and services, today reported Q2 2022 results, announced a $0.125/share quarterly dividend and provided guidance.
Q2 2022 Financial Results
- Sales of $42.1mm, +4% (+8% organic) vs. Q2 2021
- Gross margin of 66.0%
- Op. income reported $5.8mm, -48%
- Op. income ex. special charge $8.9mm, -20%
- Earnings per diluted share reported $0.16, -60%
- Earnings per diluted share ex. special charge $0.29, -26%
- Cash and investments +$4.8mm to $75.7mm
Biologics drove Q2 2022 sales growth: XenoSure (+21%), allografts (+25%) and Artegraft (+11%). Q2 organic sales growth was led by EMEA (+11%) and APAC (+11%), while the Americas grew 6%. The strong dollar reduced sales by $1.7mm.
The gross margin increased to 66.0% in Q2 2022 (vs. 65.8%). The Company had 203 direct labor employees on staff as of June 30, up 54% year-over-year. The Company closed its St. Etienne factory in Q2 2022, resulting in a $3.1mm special charge.
Q2 2022 operating margin was 14%; excluding the $3.1mm special charge the operating margin was 21%. Excluding the special charge, Q2 operating expense growth was 21%, driven by a 26% larger salesforce on June 30 (111 reps) and regulatory expenses.
George LeMaitre, Chairman and CEO, said “Based on better-than-expected Q2 sales, we increased annual guidance to 10% organic growth. We also achieved several milestones: we opened a Seoul office, closed a French factory, filed for Chinese XenoSure cardiac approval and received the Omniflow II CE Mark.”
Business Outlook
Q3 2022 Guidance Q4 2022 Guidance 2022 Full Year Guidance Sales $39.0mm - $41.0mm
(Mid: $40.0mm, +4%, +10% Org.)$41.2mm - $43.2mm
(Mid: $42.2mm, +7%, +11% Org.)$162.7mm - $165.3mm
(Mid:$164.0mm, +6%, +10% Org.)Gross Margin 66.7% 67.5% 66.5% Op. Income $6.8mm - $8.2mm
(Mid: $7.5mm, -17%)$8.5mm - $9.9mm
(Mid: $9.2mm, +10%)$29.5mm - $31.2mm
(Mid $30.4mm, -17%)Op. Income Ex-Spec. Charge - - $32.7mm - $34.4mm
(Mid: $33.6mm, -8%)EPS $0.24 - $0.29
(Mid: $0.27, -10%)$0.29 - $0.35
(Mid: $0.32, +15%)$0.99 - $1.05
(Mid: $1.02, -19%)EPS Ex-Spec. Charge - - $1.14 - $1.19
(Mid: $1.17, -7%)Quarterly Dividend
On July 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 September 8, 2022 to shareholders of record on August 25, 2022.
Share Repurchase Program
On February 22, 2022, the Company's Board of Directors authorized the repurchase of up to $20.0mm of the Company’s common stock. The repurchase program may be suspended or discontinued at any time and will conclude on February 22, 2023, 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 http://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 http://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 as well as operating income, operating margin, and EPS excluding special charge for Q2 2022 and guidance for operating income and EPS excluding special charge. 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 operating income, operating margin and EPS excluding special charge for Q2 2022 and guidance for operating income and EPS excluding special charge provides an alternative and meaningful view of the Company’s profitability excluding the impact of the closure of the Company’s St. Etienne, France factory, a non-recurring event.
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.; the duration and severity of the impact of COVID-19 on the global economy, our customers, our suppliers and our company; 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.comLEMAITRE VASCULAR, INC. (NASDAQ: LMAT) CONDENSED CONSOLIDATED BALANCE SHEETS (amounts in thousands) June 30, 2022 December 31, 2021 (unaudited) Assets Current assets: Cash and cash equivalents $ 20,788 $ 13,855 Short-term marketable securities 54,895 56,104 Accounts receivable, net 21,542 19,631 Inventory and other deferred costs 47,192 46,104 Prepaid expenses and other current assets 3,243 4,189 Asset held for sale 826 - Total current assets 148,486 139,883 Property and equipment, net 15,753 17,059 Right-of-use leased assets 16,290 15,071 Goodwill 65,945 65,945 Other intangibles, net 49,598 52,710 Deferred tax assets 2,369 1,566 Other assets 984 568 Total assets $ 299,425 $ 292,802 Liabilities and stockholders' equity Current liabilities: Accounts payable $ 2,844 $ 2,340 Accrued expenses 17,009 16,332 Acquisition-related obligations 1,758 1,271 Lease liabilities - short-term 1,794 1,870 Total current liabilities 23,405 21,813 Lease liabilities - long-term 15,420 14,067 Deferred tax liabilities 64 70 Other long-term liabilities 2,503 2,701 Total liabilities 41,392 38,651 Stockholders' equity Common stock 235 235 Additional paid-in capital 184,605 181,630 Retained earnings 92,190 88,125 Accumulated other comprehensive loss (6,444 ) (3,435 ) Treasury stock (12,553 ) (12,404 ) Total stockholders' equity 258,033 254,151 Total liabilities and stockholders' equity $ 299,425 $ 292,802 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 six months ended June 30, 2022 June 30, 2021 June 30, 2022 June 30, 2021 Net sales $ 42,108 $ 40,670 $ 81,669 $ 76,553 Cost of sales 14,298 13,909 27,897 25,993 Gross profit 27,810 26,761 53,772 50,560 Operating expenses: Sales and marketing 8,242 6,803 16,092 13,269 General and administrative 7,331 6,200 14,583 12,744 Research and development 3,346 2,652 6,278 5,496 Restructuring 3,107 - 3,107 - Total operating expenses 22,026 15,655 40,060 31,509 Income from operations 5,784 11,106 13,712 19,051 Other income (expense), net Interest income 167 1 275 2 Interest expense - (495 ) - (1,072 ) Foreign currency gain (loss) (403 ) (157 ) (443 ) (33 ) Income before income taxes 5,548 10,455 13,544 17,948 Provision for income taxes 2,033 2,156 3,991 3,720 Net income $ 3,515 $ 8,299 $ 9,553 $ 14,228 Earnings per share of common stock Basic $ 0.16 $ 0.40 $ 0.44 $ 0.69 Diluted $ 0.16 $ 0.40 $ 0.43 $ 0.68 Weighted - average shares outstanding: Basic 21,958 20,611 21,947 20,579 Diluted 22,129 20,959 22,115 20,900 Cash dividends declared per common share $ 0.125 $ 0.110 $ 0.250 $ 0.220 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, 2022 June 30, 2021 June 30, 2022 June 30, 2021 $ % $ % $ % $ % Net Sales by Geography Americas $ 28,854 69 % $ 27,329 67 % $ 55,397 68 % $ 51,028 67 % Europe, Middle East and Africa 10,749 25 % 10,803 27 % 21,243 26 % 20,665 27 % Asia Pacific 2,505 6 % 2,538 6 % 5,029 6 % 4,860 6 % Total Net Sales $ 42,108 100 % $ 40,670 100 % $ 81,669 100 % $ 76,553 100 % 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 June 30, 2022 Net sales as reported $ 42,108 Impact of currency exchange rate fluctuations 1,686 Adjusted net sales $ 43,794 For the three months ended June 30, 2021 Net sales as reported $ 40,670 Adjusted net sales $ 40,670 Adjusted net sales increase for the three months ended June 30, 2022 $ 3,124 8 % Reconciliation between GAAP and Non-GAAP projected sales growth: For the three months ending September 30, 2022 Net sales per guidance (midpoint) $ 40,045 Impact of currency exchange rate fluctuations 1,974 Adjusted projected net sales $ 42,019 For the three months ended September 30, 2021 Net sales as reported $ 38,368 Adjusted net sales $ 38,368 Adjusted projected net sales increase for the three months ending September 30, 2022 $ 3,651 10 % Reconciliation between GAAP and Non-GAAP projected sales growth: For the three months ending December 31, 2022 Net sales per guidance (midpoint) $ 42,240 Impact of currency exchange rate fluctuations 1,692 Adjusted projected net sales $ 43,932 For the three months ended December 31, 2021 Net sales as reported $ 39,503 Adjusted net sales $ 39,503 Adjusted projected net sales increase for the three months ending December 31, 2022 $ 4,429 11 % Reconciliation between GAAP and Non-GAAP projected sales growth: For the year ending December 31, 2022 Net sales per guidance (midpoint) $ 163,954 Impact of currency exchange rate fluctuations 6,170 Adjusted projected net sales $ 170,124 For the year ended December 31, 2021 Net sales as reported $ 154,424 Adjusted net sales $ 154,424 Adjusted projected net sales increase for the year ending December 31, 2022 $ 15,700 10 % Reconciliation between GAAP and Non-GAAP operating income: For the three months ended June 30, 2022 Operating income as reported $ 5,784 Impact of special charge 3,107 Adjusted operating income $ 8,891 For the three months ended June 30, 2021 Operating income as reported $ 11,106 Adjusted operating income $ 11,106 Adjusted operating income decrease for the three months ended June 30, 2022 $ (2,215 ) -20 % Reconciliation between GAAP and Non-GAAP projected operating income: For the year ending December 31, 2022 Operating income per guidance (midpoint) $ 30,374 Impact of special charge 3,207 Adjusted projected operating income $ 33,581 For the year ended December 31, 2021 Operating income as reported $ 36,425 Adjusted operating income $ 36,425 Adjusted projected operating income decrease for the year ending December 31, 2022 $ (2,844 ) -8 % Reconciliation between GAAP and Non-GAAP EPS: For the three months ended June 30, 2022 EPS as reported $ 0.16 Impact of special charge 0.13 Adjusted EPS $ 0.29 For the three months ended June 30, 2021 EPS as reported $ 0.40 Adjusted EPS $ 0.40 Adjusted EPS decrease for the three months ended June 30, 2022 $ (0.10 ) -26 % Reconciliation between GAAP and Non-GAAP projected EPS: For the year ending December 31, 2022 EPS per guidance (midpoint) $ 1.02 Impact of special charge 0.15 Adjusted EPS $ 1.17 For the year ended December 31, 2021 EPS as reported $ 1.25 Adjusted EPS $ 1.25 Adjusted projected EPS decrease for the year ending December 31, 2022 $ (0.08 ) -7 % EMEA sales growth reconciliation between GAAP and Non-GAAP: For the three months ended June 30, 2022 Net sales as reported $ 10,749 Impact of currency exchange rate fluctuations 1,276 EMEA adjusted net sales $ 12,025 For the three months ended June 30, 2021 Net sales as reported $ 10,803 Adjusted net sales $ 10,803 EMEA adjusted net sales increase for the three months ended June 30, 2022 $ 1,222 11 % APAC sales growth reconciliation between GAAP and Non-GAAP: For the three months ended June 30, 2022 Net sales as reported $ 2,505 Impact of currency exchange rate fluctuations 313 APAC adjusted net sales $ 2,818 For the three months ended June 30, 2021 Net sales as reported $ 2,538 Adjusted net sales $ 2,538 APAC adjusted net sales increase for the three months ended June 30, 2022 $ 280 11 % Americas sales growth reconciliation between GAAP and Non-GAAP: For the three months ended June 30, 2022 Net sales as reported $ 28,854 Impact of currency exchange rate fluctuations 98 Americas adjusted net sales $ 28,952 For the three months ended June 30, 2021 Net sales as reported $ 27,329 Adjusted net sales $ 27,329 Americas adjusted net sales increase for the three months ended June 30, 2022 $ 1,623 6 % Reconciliation between GAAP and Non-GAAP operating margin: For the three months ended June 30, 2022 Operating margin as reported 14 % Impact of special charge 7 % Adjusted operating margin 21 % Reconciliation between GAAP and Non-GAAP operating expenses: For the three months ended June 30, 2022 Operating expenses as reported $ 22,026 Impact of special charge (3,107 ) Adjusted operating expenses $ 18,919 For the three months ended June 30, 2021 Operating expenses as reported $ 15,655 Adjusted operating income $ 15,655 Adjusted operating expense decrease for the three months ended June 30, 2022 $ 3,264 21 % 
