LeMaitre Q3 2016 Record Sales $23.2 mm (+22%), Record Op. Income $5.3 mm (+61%)


BURLINGTON, Mass., Oct. 26, 2016 (GLOBE NEWSWIRE) -- LeMaitre Vascular, Inc. (Nasdaq:LMAT), a provider of vascular devices, today reported Q3 2016 results, provided increased guidance, and announced a $0.045/share dividend.

Q3 2016 Results

  • Record sales of $23.2mm, +22% vs. Q3 2015
  • Record operating income of $5.3mm vs. $3.3mm, +61%
  • Record net income of $3.2mm vs. $2.1mm, +54%
  • Record earnings of $0.17 per diluted share vs. $0.11, +48%
  • Record EBITDA of $6.1mm vs $4.0mm, +55%
  • Cash & equivalents up $5.3mm during the quarter to $34.7mm

Q3 2016 sales of $23.2mm increased 22% (+20% organic) vs. Q3 2015.  XenoSure and valvulotomes led growth.  International sales and The Americas sales both increased 22%.

Gross margin improved to 73.3% in Q3 2016 from 71.0% in Q3 2015 largely due to XenoSure and other production efficiencies, improved product mix, and average selling price increases.

Operating expenses in Q3 2016 were $11.7mm, a 15% increase vs. the year-earlier quarter. The Company ended the quarter with 91 sales reps vs. 82 at the end of Q3 2015.

George W. LeMaitre, Chairman and CEO said, “Sales increased 22% in Q3, while operating profits were up 61%.  We continue to pursue 10% annual sales growth and 20% annual profit growth.”

Business Outlook

The Company is providing Q4 2016 guidance and raising full-year 2016 guidance as summarized below:

Guidance Summary
 Previous (7/27/2016 )Current
Q4  2016 SalesN/A$23.1mm
(+13% reported, +13% organic)
Q4  2016 Gross MarginN/A 73.0%
Q4  2016 Operating IncomeN/A$4.7mm
(+52%, 20% op. margin)
2016 Sales$88.3mm
(+13% reported, +12% organic)
$89.0mm
(+14% reported, +12% organic)
2016 Gross Margin 70.5% 71.5%
2016 Operating Income$15.9mm
(+38%, 18% op. margin)
$17.1mm
(+49%, 19% op. margin)

Baxter Vascu-Guard Safety Alert

On June 24, 2016, Baxter Healthcare Corporation (Baxter) issued a safety alert requesting that hospitals discontinue and quarantine the use of certain lots of its Vascu-Guard peripheral vascular patches. On August 11, 2016 Baxter began releasing newly manufactured lots to fulfill orders while continuing their investigation related to the safety alert.  During Q3 2016, LeMaitre Vascular recorded approximately $1.4mm in incremental XenoSure patch sales related to the Baxter issue.  The Company expects to retain approximately $500,000 of the increased patch sales in Q4 2016. 

Quarterly Dividend

On October 24, 2016, the Company's Board of Directors approved a quarterly dividend of $0.045/share of common stock. The dividend will be paid December 5, 2016 to shareholders of record on November 21, 2016.

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 844-239-5284 (+1 512-961-6497 for international callers), using passcode 3268033. 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 Q4 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 a recall of our products could result in significant costs or negative publicity; 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)
 
       
       
   September 30, 2016 December 31, 2015 
   (unaudited)   
Assets     
       
Current assets:     
 Cash and cash equivalents $34,650  $27,451  
 Accounts receivable, net  12,176   11,971  
 Inventory  17,430   15,205  
 Prepaid expenses and other current assets  3,979   3,557  
Total current assets  68,235   58,184  
       
Property and equipment, net  7,490   7,022  
Goodwill  18,206   17,789  
Other intangibles, net  5,872   6,336  
Deferred tax assets  1,327   1,205  
Other assets  176   168  
       
Total assets $101,306  $90,704  
       
       
Liabilities and stockholders' equity     
       
Current liabilities:     
 Accounts payable $1,148  $1,366  
 Accrued expenses  10,308   8,837  
 Acquisition-related obligations  608   165  
Total current liabilities  12,064   10,368  
       
Deferred tax liabilities  1,680   1,678  
Other long-term liabilities  872   774  
Total liabilities  14,616   12,820  
       
Stockholders' equity     
 Common stock  200   197  
 Additional paid-in capital  84,837   82,094  
 Retained earnings  13,568   8,161  
 Accumulated other comprehensive loss  (3,213)  (4,049) 
 Treasury stock  (8,702)  (8,519) 
Total stockholders' equity  86,690   77,884  
       
Total liabilities and stockholders' equity $101,306  $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 For the nine months ended 
  September 30, 2016 September 30, 2015 September 30, 2016 September 30, 2015 
          
Net sales$23,216  $19,025  $65,863  $57,869  
Cost of sales 6,197   5,509   19,121   18,106  
          
Gross profit 17,019   13,516   46,742   39,763  
          
Operating expenses:        
 Sales and marketing 6,541   5,489   19,353   16,866  
 General and administrative 3,595   3,455   10,343   10,375  
 Research and development 1,539   1,421   4,619   3,904  
 Gain on Divestiture -   (360)    (360) 
 Medical device excise tax -   190   -   554  
          
Total operating expenses 11,675   10,195   34,315   31,339  
          
Income from operations 5,344   3,321   12,427   8,424  
          
Other income:        
 Other income (loss), net (37)  (182)  (19)  (135) 
          
Income before income taxes 5,307   3,139   12,408   8,289  
          
Provision for income taxes 2,078   1,047   4,415   3,061  
          
Net income$3,229  $2,092  $7,993  $5,228  
          
Earnings per share of common stock        
 Basic$0.17  $0.12  $0.43  $0.30  
 Diluted$0.17  $0.11  $0.42  $0.29  
          
Weighted - average shares outstanding:        
 Basic 18,524   17,865   18,423   17,625  
 Diluted 19,248   18,497   19,103   18,136  
          
          
Cash dividends declared per common share$0.045  $0.040  $0.135  $0.120  
          

 

                  
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, 2016 September 30, 2015 September 30, 2016 September 30, 2015 
  $ % $ % $ % $ % 
Net Sales by Geography                
 Americas$14,528   63% $11,916   63% $39,594   60% $35,870   62% 
 International 8,688   37%  7,109   37%  26,269   40%  21,999   38% 
Total Net Sales$23,216   100% $19,025   100% $65,863   100% $57,869   100% 
                  
                  
                  
LEMAITRE VASCULAR, INC (NASDAQ: LMAT)
 
SELECTED NET SALES INFORMATION
 
(amounts in thousands)    For the nine months ended 
     
(unaudited)    September 30, 2016   
          $ %     
Net Sales by Product Category               
 Biologics        $17,270   26%     
 Non-biologics         48,593   74%     
Total Net Sales        $65,863   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 September 30, 2016         
  Net sales as reported $23,216        
  Impact of currency exchange rate fluctuations  (71)       
  Net impact of acquisitions excluding currency  (336)       
  Adjusted net sales   $22,809      
            
 For the three months ending September 30, 2015         
  Net sales as reported $19,025        
  Net impact of divestitures excluding currency  (15)       
  Adjusted net sales   $19,010      
            
  Adjusted net sales increase for the three months ending September 30, 2016 $3,799   20%   
            
            
Reconciliation between GAAP and Non-GAAP sales growth:         
 For the three months ending December 31, 2016         
  Net sales per guidance $23,100        
  Impact of currency exchange rate fluctuations  133        
  Net impact of acquisitions excluding currency  (330)       
  Adjusted net sales   $22,903      
            
 For the three months ending December 31, 2015         
  Net sales as reported $20,483        
  Net impact of divestitures excluding currency  (136)       
  Adjusted net sales   $20,347      
            
  Adjusted net sales increase for the three months ending December 31, 2016 $2,556   13%   
            
            
Reconciliation between GAAP and Non-GAAP sales growth:         
 For the year ending December 31, 2016         
  Net sales per guidance $88,965        
  Impact of currency exchange rate fluctuations  167        
  Net impact of acquisitions excluding currency  (1,243)       
  Adjusted net sales   $87,889      
            
 For the year ending December 31, 2015         
  Net sales as reported $78,352        
  Net impact of divestitures excluding currency  (153)       
  Adjusted net sales   $78,199      
            
  Adjusted net sales increase for the year ending December 31, 2016  $9,690   12%   
            
            
            
    For the three months ended For the nine months ended 
    September 30, 2016 September 30, 2015 September 30, 2016 September 30, 2015 
Reconciliation between GAAP and Non-GAAP EBITDA         
 Net income as reported $3,229  $2,092  $7,993  $5,228  
 Interest (income) expense, net  (24)  (3)  (55)  (7) 
 Amortization and depreciation expense  846   825   2,658   2,497  
 Provision for income taxes  2,078   1,047   4,415   3,061  
            
 EBITDA $6,129  $3,961  $15,011  $10,779  
            
 EBITDA percentage increase    55%    39% 
            



            

Tags


Contact Data