LeMaitre Q1 2016 Sales $20.3mm (+7%), Op. Inc. $3.3mm (+43%)


BURLINGTON, Mass., May 02, 2016 (GLOBE NEWSWIRE) -- LeMaitre Vascular, Inc. (Nasdaq:LMAT), a provider of vascular devices, today reported Q1 2016 results, announced a $0.045/share dividend and provided guidance.

Q1 2016 results included:

  • Sales of $20.3mm, +7% vs. Q1 2015
  • Gross Margin of 70.9% vs. 69.2%
  • Operating income of $3.3mm vs. $2.3mm, +43%
  • Operating margin of 16% vs. 12%
  • Net income of $2.2mm vs. $1.4mm, +58%
  • Earnings of $0.11 per diluted share vs. $0.08, +49%
  • Record EBITDA of $4.1mm vs. $3.2mm, +31% 

Q1 2016 sales of $20.3mm increased 7% (+7% organic) vs. Q1 2015.  Biological patches, catheters, and valvulotomes led growth.  International sales increased 14%, while sales in The Americas increased 3%.

Gross margin improved to 70.9% in Q1 2016 from 69.2% in Q1 2015 due to ASP increases and XenoSure production efficiencies.

Operating expenses in Q1 2016 were $11.1mm, a 2% increase versus the year-earlier quarter. The Company ended Q1 2016 with 92 sales reps vs. 81 at the end of Q1 2015.

George W. LeMaitre, Chairman and CEO said, “Sales increased 7% in Q1 while profits were up 43%.  We also acquired the ProCol biologic graft during the quarter.  We will continue to pursue 10% annual sales growth and 20% annual profit growth.”

Quarterly Dividend

On April 25, 2016, the Company's Board of Directors approved a quarterly dividend of $0.045/share of common stock. The dividend will be paid June 8, 2016 to shareholders of record on May 25, 2016.

Business Outlook

The Company expects Q2 2016 sales of $21.6mm, a reported increase of 9% vs. Q2 2015. Excluding currency effects and acquisitions, this represents 7% sales growth (organic growth). The Company expects Q2 2016 gross margin of 69.0%. The Company also expects Q2 2016 operating income of $3.2mm (15% operating margin), an increase of 15% vs. Q2 2015.

The Company has increased its full-year 2016 sales guidance to $85.7mm, a reported increase of 9% vs. 2015. Excluding currency effects and acquisitions, this represents 8% sales growth (organic growth). The Company expects 2016 gross margin of 70.5%. The Company has increased its 2016 operating income guidance to $14.3mm (17% operating margin), a 24% increase vs. 2015.

Conference Call Reminder

Management will conduct a conference call at 5:00pm ET today to review the Company's financial results and discuss its business outlook for the remainder of the year. 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 877-469-0772 (+1 615-247-0083 for international callers), using passcode 95573476. 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 Vascular

LeMaitre Vascular is a provider of devices for the treatment of peripheral vascular disease, a condition that affects more than 20 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 and the LeMaitre Vascular logo are registered trademarks of LeMaitre Vascular, Inc. This press release contains 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 Vascular management believes that in order to better understand the Company's short-term 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 EBITDA or earnings before interest, taxes, depreciation and amortization. The Company refers to the calculation of non-GAAP sales percentages as "organic." The Company analyzes non-GAAP sales on a constant currency basis, net of acquisitions and other non-recurring events, and EBITDA 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, 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 evaluating EBITDA provides an approximation of the cash generating ability of its operations.

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. Specifically, forward-looking statements in this release include, but are not limited to, statements about the Company's expectations regarding Q2 2016 and 2016 sales, gross margin and operating income levels. 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 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; risks related to the integration of acquisition targets; risks related to product demand and market acceptance of the Company's products and pricing; the risk that the XenoSure product is not as accretive and does not achieve the gross margins currently anticipated by the Company; the risk that the Company is not successful in transitioning to a direct-selling model in new territories; adverse or fluctuating conditions in the general domestic and global economic markets 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, all of which are 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.

      
LEMAITRE VASCULAR, INC (NASDAQ: LMAT)    
CONDENSED CONSOLIDATED BALANCE SHEETS     
(amounts in thousands)    
      
      
   March 31, 2016 December 31, 2015
   (unaudited)  
Assets    
      
Current assets:    
 Cash and cash equivalents $25,941  $27,451 
 Accounts receivable, net  13,017   11,971 
 Inventory  17,897   15,205 
 Prepaid expenses and other current assets  2,887   3,557 
Total current assets  59,742   58,184 
      
Property and equipment, net  7,355   7,022 
Goodwill  18,192   17,789 
Other intangibles, net  6,660   6,336 
Deferred tax assets  1,265   1,205 
Other assets  170   168 
      
Total assets $93,384  $90,704 
      
      
Liabilities and stockholders' equity    
      
Current liabilities:    
 Accounts payable $1,773  $1,366 
 Accrued expenses  7,668   8,837 
 Acquisition-related obligations  723   165 
Total current liabilities  10,164   10,368 
      
Deferred tax liabilities  1,680   1,678 
Other long-term liabilities  916   774 
Total liabilities  12,760   12,820 
      
Stockholders' equity    
 Common stock  198   197 
 Additional paid-in capital  82,563   82,094 
 Retained earnings  9,502   8,161 
 Accumulated other comprehensive loss  (3,120)  (4,049)
 Treasury stock  (8,519)  (8,519)
Total stockholders' equity  80,624   77,884 
      
Total liabilities and stockholders' equity $93,384  $90,704 
      

 

LEMAITRE VASCULAR, INC (NASDAQ: LMAT)
  
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
  
(amounts in thousands, except per share amounts)  
(unaudited)  
     
  For the three months ended
  March 31, 2016 March 31, 2015
     
Net sales$20,258  $18,947 
Cost of sales 5,902   5,830 
     
Gross profit 14,356   13,117 
     
Operating expenses:   
 Sales and marketing 6,273   5,858 
 General and administrative 3,337   3,617 
 Research and development 1,446   1,152 
 Medical device excise tax -   181 
     
Total operating expenses 11,056   10,808 
     
Income from operations 3,300   2,309 
     
Other income (loss):   
 Other income (loss), net (35)  17 
     
Income before income taxes 3,265   2,326 
     
Provision (benefit) for income taxes 1,099   957 
     
Net income$2,166  $1,369 
     
Earnings per share of common stock   
 Basic$0.12  $0.08 
 Diluted$0.11  $0.08 
     
Weighted - average shares outstanding:   
 Basic 18,336   17,422 
 Diluted 18,860   17,796 
     
     
Cash dividends declared per common share$0.045  $0.040 
     

 

LEMAITRE VASCULAR, INC (NASDAQ: LMAT)
    
SELECTED NET SALES INFORMATION
    
(amounts in thousands)    
(unaudited)    
         
         
  For the three months ended 
  March 31, 2016 March 31, 2015
  $ % $ %
Net Sales by Geography       
 Americas$11,877   59% $11,583   61%
 International 8,381   41%  7,364   39%
Total Net Sales$20,258   100% $18,947   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 ending March 31, 2016      
  Net sales as reported $20,258     
  Impact of currency exchange rate fluctuations  219     
  Net impact of acquisitions excluding currency  (143)    
  Adjusted net sales   $20,334   
         
 For the three months ending March 31, 2015      
  Net sales as reported $18,947     
  Net impact of divestitures excluding currency  (4)    
  Adjusted net sales   $18,943   
         
  Adjusted net sales increase for the three months ending March 31, 2016 $1,391   7%
         
         
Reconciliation between GAAP and Non-GAAP sales growth:      
 For the three months ending June 30, 2016      
  Net sales per guidance $21,600     
  Impact of currency exchange rate fluctuations  (242)    
  Net impact of acquisitions excluding currency  (200)    
  Adjusted net sales   $21,158   
         
 For the three months ending June 30, 2015      
  Net sales as reported $19,897     
  Net impact of divestitures excluding currency  (44)    
  Adjusted net sales   $19,853   
         
  Adjusted net sales increase for the three months ending June 30, 2016 $1,305   7%
         
         
Reconciliation between GAAP and Non-GAAP sales growth:      
 For the year ending December 31, 2016      
  Net sales per guidance $85,700     
  Impact of currency exchange rate fluctuations  (611)    
  Net impact of acquisitions excluding currency  (893)    
  Adjusted net sales   $84,196   
         
 For the year ending December 31, 2015      
  Net sales as reported $78,352     
  Net impact of divestitures excluding currency  (235)    
  Adjusted net sales   $78,117   
         
  Adjusted net sales increase for the year ending December 31, 2016  $6,079   8%
         
         
         
    For the three months ended  
    March 31, 2016 March 31, 2015  
Reconciliation between GAAP and Non-GAAP EBITDA      
 Net income as reported $2,166  $1,369   
 Interest income  (15)  -   
 Amortization and depreciation expense  881   832   
 Provision for income taxes  1,099   957   
         
 EBITDA $4,131  $3,158   
         
 EBITDA percentage increase    31%  
         



            

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