LeMaitre Q3 2024 Financial Results

LeMaitre Q3 2024 Financial Results




LeMaitre Q3 2024 Financial Results

BURLINGTON, Mass., Oct. 31, 2024 (GLOBE NEWSWIRE) — LeMaitre (Nasdaq:LMAT), a provider of vascular devices, implants, and services, reported Q3 2024 results, announced a $0.16/share quarterly dividend, and provided guidance.

Q3 2024 Financial Results

  • Sales $54.8mm, +16% (+16% organic) vs. Q3 2023
  • Gross margin 67.8%, +280 bps
  • Op. income $13.1mm, +43%
  • Op. margin 24%
  • Earnings per diluted share $0.49, +46%
  • Cash up $10.8mm sequentially to $123.9mm

Grafts (+24%), patches (+13%) and carotid shunts (+18%) drove Q3 sales growth. APAC sales increased 24%, EMEA 22% and the Americas 12%.

The gross margin increased to 67.8% (vs. 65.0% in Q3 2023), driven by price increases and manufacturing efficiencies.

Operating income of $13.1mm was up 43% vs. Q3 2023. Operating expenses grew 11.1% in Q3 largely due to additional sales offices and personnel. The company employed 28 sales managers and 146 sales reps at quarter end, up 17% and 7%, respectively.

Chairman/CEO George LeMaitre said, “2024 is shaping up to be a year of healthy sales and profit growth. Increased guidance now implies a 2024 op. margin of 24%, vs. 19% in 2023.”

Business Outlook

  Q4 2024 Guidance Full Year Guidance
Sales $54.9mm – $56.9mm
(Mid: $55.9mm, +14%, +14% Org.)
$219.0mm – $221.0mm
(Mid: $220.0mm, +14%, +13% Org.)
Gross Margin 68.0% 68.3%
Op. Income $12.6mm – $14.0mm
(Mid: $13.3mm, +30%)
$52.0mm – $53.4mm
(Mid: $52.7mm, +44%)
(Mid: $52.7mm, +42% Ex-Special)*
Op. Margin (Mid) 24% 24%
EPS $0.47 – $0.51
(Mid: $0.49, +30%)
$1.91 – $1.96
(Mid: $1.94, +44%)
(Mid: $1.94, +43% Ex-Special)*

*Special charges in 2023 were related to the St. Etienne factory closure.

Quarterly Dividend

On October 24, 2024, the Company’s Board of Directors approved a quarterly dividend of $0.16/share of common stock. The dividend will be paid on December 5, 2024, to shareholders of record on November 21, 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 to 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 sales, 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, companies that develop products or services that may impact the use of our products such as drugs to treat diabetes or weight loss; the risks from competition from other companies; 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 related to product demand and market acceptance of the Company’s products and pricing; risks from implementing a new enterprise resource planning system; the risk of significant fluctuations in our quarterly and annual results due to numerous factors; the risk that we may not be able to maintain our recent levels of profitability; our reliance on sole source suppliers; disruptions or breaches of information technology systems; the risk that the Company may not realize the anticipated benefits of its strategic activities; 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 acceleration or deceleration of product growth rates; 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.com

LEMAITRE VASCULAR, INC. (NASDAQ: LMAT)          
CONDENSED CONSOLIDATED BALANCE SHEETS        
(amounts in thousands)          
             
             
      September 30, 2024   December 31, 2023  
      (unaudited)      
Assets          
             
Current assets:          
  Cash and cash equivalents   $ 21,001     $ 24,269    
  Short-term marketable securities     102,888       80,805    
  Accounts receivable, net     32,269       25,064    
  Inventory and other deferred costs     65,021       58,080    
  Prepaid expenses and other current assets     5,937       6,380    
Total current assets     227,116       194,598    
             
Property and equipment, net     23,924       21,754    
Right-of-use leased assets     17,195       18,027    
Goodwill     65,945       65,945    
Other intangibles, net     37,303       41,711    
Deferred tax assets     1,310       1,003    
Other assets     4,232       3,740    
             
Total assets   $ 377,025     $ 346,778    
             
             
Liabilities and stockholders’ equity          
             
Current liabilities:          
  Accounts payable   $ 1,651     $ 3,734    
  Accrued expenses     23,493       23,650    
  Acquisition-related obligations     1,476       24    
  Lease liabilities – short-term     2,723       2,471    
Total current liabilities     29,343       29,879    
             
Lease liabilities – long-term     15,603       16,624    
Deferred tax liabilities     109       107    
Other long-term liabilities     896       2,268    
Total liabilities     45,951       48,878    
             
Stockholders’ equity          
  Common stock     241       239    
  Additional paid-in capital     210,748       200,755    
  Retained earnings     137,506       115,430    
  Accumulated other comprehensive loss     (3,156 )     (4,625 )  
  Treasury stock     (14,265 )     (13,899 )  
Total stockholders’ equity     331,074       297,900    
             
Total liabilities and stockholders’ equity   $ 377,025     $ 346,778    
             
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 nine months ended
    September 30, 2024   September 30, 2023   September 30, 2024   September 30, 2023
                 
Net sales $ 54,819   $ 47,411     $ 164,146   $ 144,601  
Cost of sales   17,641     16,596       51,835     50,817  
                 
Gross profit   37,178     30,815       112,311     93,784  
                 
Operating expenses:              
  Sales and marketing   11,441     9,673       34,111     30,786  
  General and administrative   8,933     7,738       26,766     23,392  
  Research and development   3,656     4,224       12,032     12,615  
  Restructuring                 485  
Total operating expenses   24,030     21,635       72,909     67,278  
                 
Income from operations   13,148     9,180       39,402     26,506  
                 
Other income (expense):              
  Interest income   1,201     835       3,339     2,085  
  Foreign currency gain (loss)   202     (189 )     113     (429 )
                 
Income before income taxes   14,551     9,826       42,854     28,162  
                 
Provision for income taxes   3,410     2,324       10,000     6,522  
                 
Net income $ 11,141   $ 7,502     $ 32,854   $ 21,640  
                 
Earnings per share of common stock              
  Basic $ 0.50   $ 0.34     $ 1.46   $ 0.97  
  Diluted $ 0.49   $ 0.33     $ 1.45   $ 0.97  
                 
Weighted – average shares outstanding:              
  Basic   22,476     22,263       22,433     22,196  
  Diluted   22,836     22,481       22,723     22,411  
                 
                 
Cash dividends declared per common share  $ 0.16   $ 0.14     $ 0.48   $ 0.42  
                 

                                 
LEMAITRE VASCULAR, INC. (NASDAQ: LMAT)                        
SELECTED NET SALES INFORMATION                            
(amounts in thousands)                              
(unaudited)                              
                                 
                                 
    For the three months ended   For the nine months ended
    September 30, 2024   September 30, 2023   September 30, 2024   September 30, 2023
    $   %   $   %   $   %   $   %
Net Sales by Geography                              
  Americas $ 35,802   65 %   $ 31,863   67 %   $ 107,954   66 %   $ 97,496   67 %
  Europe, Middle East and Africa   15,001   28 %     12,322   26 %     44,694   27 %     38,179   26 %
  Asia Pacific   4,016   7 %     3,226   7 %     11,498   7 %     8,926   7 %
Total Net Sales $ 54,819   100 %   $ 47,411   100 %   $ 164,146   100 %   $ 144,601   100 %
                                 

                       
LEMAITRE VASCULAR, INC. (NASDAQ: LMAT)                  
NON-GAAP FINANCIAL MEASURES                  
(amounts in thousands)                  
(unaudited)                  
                       
        For the three months ended   For the nine months ended  
        September 30, 2024   September 30, 2023   September 30, 2024   September 30, 2023  
Reconciliation between GAAP and Non-GAAP EBITDA                  
  Net income as reported   $ 11,141     $ 7,502     $ 32,854     $ 21,640    
  Interest income     (1,201 )     (835 )     (3,339 )     (2,085 )  
  Amortization and depreciation expense     2,426       2,395       7,192       7,072    
  Provision for income taxes     3,410       2,324       10,000       6,522    
                       
  EBITDA   $ 15,776     $ 11,386     $ 46,707     $ 33,149    
                       
  EBITDA percentage increase         39%           41%    
                       

                   
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 September 30, 2024              
    Net sales as reported   $ 54,819            
    Impact of currency exchange rate fluctuations     (18 )          
        Adjusted net sales       $ 54,801      
                   
  For the three months ended September 30, 2023              
    Net sales as reported   $ 47,411            
        Adjusted net sales       $ 47,411      
                   
    Adjusted net sales increase for the three months ended September 30, 2024   $ 7,390   16%  
                   
                   
Reconciliation between GAAP and Non-GAAP projected sales growth:              
  For the three months ending December 31, 2024              
    Net sales per guidance (midpoint)   $ 55,900            
    Impact of currency exchange rate fluctuations     (75 )          
        Adjusted projected net sales       $ 55,825      
                   
  For the three months ended December 31, 2023              
    Net sales as reported   $ 48,883            
        Adjusted net sales       $ 48,883      
                   
    Adjusted projected net sales increase for the three months ending December 31, 2024   $ 6,942   14%  
                   
                   
Reconciliation between GAAP and Non-GAAP projected sales growth:              
  For the year ending December 31, 2024              
    Net sales per guidance (midpoint)   $ 220,046            
    Net distribution sales (non-organic)     (1,612 )          
    Impact of currency exchange rate fluctuations     273            
        Adjusted projected net sales       $ 218,707      
                   
  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   $ 25,223   13%  
                   
                   
Reconciliation between GAAP and Non-GAAP projected operating income:            
  For the year ending December 31, 2024              
    Operating income per guidance (midpoint)   $ 52,715            
        Adjusted projected operating income       $ 52,715      
                   
  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   $ 15,518   42%  
                   
                   
Reconciliation between GAAP and Non-GAAP projected EPS:              
  For the year ending December 31, 2024              
    EPS per guidance (midpoint)   $ 1.94            
        Adjusted EPS       $ 1.94      
                   
  For the year ended December 31, 2023              
    EPS as reported   $ 1.34            
    Impact of special charge     0.02            
        Adjusted EPS       $ 1.36      
                   
    Adjusted projected EPS increase for the year ending December 31, 2024   $ 0.58   43%