LeMaitre Q4 2016 Record Sales $23.3 mm (+14%), Op. Income $3.9 mm (+27%)


BURLINGTON, Mass., Feb. 21, 2017 (GLOBE NEWSWIRE) -- LeMaitre Vascular, Inc. (Nasdaq:LMAT), a provider of vascular devices, implants and services, today reported Q4 2016 results, provided guidance, and announced a 22% dividend increase to $0.055/share.

Q4 2016 Results

  • Record sales of $23.3mm, +14% vs. Q4 2015
  • Operating income of $3.9mm vs. $3.1mm, +27%
  • Net income of $2.6mm vs. $2.5mm, +3%
  • Earnings of $0.13 per diluted share vs. $0.13
  • EBITDA of $4.8mm vs. $4.0mm, +18%

Q4 2016 sales of $23.3mm increased 14% (+11% organic) vs. Q4 2015.  XenoSure and AnastoClip led growth.  Sales in the Americas were up 17% while international sales increased 9%.

Gross margin decreased to 69.5% in Q4 2016 from 70.3% in Q4 2015 primarily due to product and geographic mix.

Operating expenses in Q4 2016 were $12.3mm, a 9% increase vs. the year-earlier quarter. The Company ended the quarter with 96 sales reps vs. 86 at the end of Q4 2015.

Full Year 2016 Results

  • Sales of $89.2mm, +14% reported (+12% organic) vs. 2015
  • Operating income of $16.3mm vs. $11.5mm, +42%
  • Net income of $10.6mm vs. $7.8mm, +37%
  • EPS of $0.55 per diluted share vs. $0.42, +30%
  • Dividends paid of $0.18 per share vs $0.16, +13%
  • EBITDA of $19.8mm vs. $14.8mm, +34%

 

George W. LeMaitre, Chairman and CEO said, “Sales increased 14% in 2016, while operating income was up 42%.  We continue to pursue 10% annual reported sales growth and 20% annual operating income growth.”             

Business Outlook

Guidance Summary
Q1  2017 Sales$23.5mm
(+16% reported, +12% organic)
Q1  2017 Gross Margin71.0%
Q1  2017 Operating Income$3.9mm
(+18%, 17% op. margin)
2017 Sales$99.0mm
(+11% reported, +9% organic)
2017 Gross Margin71.5%
2017 Operating Income$20.0mm
(+22%, 20% op. margin)

Acquisition of Restore Flow Allografts

On November 10, 2016, the Company acquired the assets of Restore Flow Allografts, LLC for $14.0 million, of which $12.0 million was paid at closing and $2.0 million is expected to be paid in May 2018.  Additional earnout payments may be paid through 2018 based on performance. 

Restore Flow derives revenue from human tissue preservation services, in particular the cryopreservation of peripheral vascular veins and arteries.  Prior to the acquisition, last twelve months’ revenue for Restore Flow was $3.7mm, all within the United States.  Last twelve months’ operating income for Restore Flow was approximately break-even.

Quarterly Dividend

On February 16, 2017, the Company's Board of Directors approved an increased quarterly dividend of $0.055/share of common stock. The dividend will be paid April 6, 2017 to shareholders of record on March 22, 2017.

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 66556990. 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, implants and services 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 Q1 2017 and 2017 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 services and the productivity of the Company's direct sales force and distributors may not be correct; risks related to the integration of acquisition targets; the risk that a recall of our products and other offerings could result in significant costs or negative publicity; risks related to product and service demand and market acceptance of the Company's products, services and pricing; 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)    
      
      
   December 31, 2016 December 31, 2015
   (unaudited)  
Assets    
      
Current assets:    
 Cash and cash equivalents $  24,288  $  27,451 
 Accounts receivable, net    13,191     11,971 
 Inventory and other deferred costs    19,578     15,205 
 Prepaid expenses and other current assets    1,970     3,557 
Total current assets    59,027     58,184 
      
Property and equipment, net    8,012     7,022 
Goodwill    23,426     17,789 
Other intangibles, net    9,897     6,336 
Deferred tax assets    1,399     1,205 
Other assets    163     168 
      
Total assets $  101,924  $  90,704 
      
      
Liabilities and stockholders' equity    
      
Current liabilities:    
 Accounts payable $  1,217  $  1,366 
 Accrued expenses    8,804     8,837 
 Acquisition-related obligations     461     165 
Total current liabilities    10,482     10,368 
      
Deferred tax liabilities    1,941     1,678 
Other long-term liabilities    2,001     774 
Total liabilities    14,424     12,820 
      
Stockholders' equity    
 Common stock    200     197 
 Additional paid-in capital    85,378     82,094 
 Retained earnings     15,335     8,161 
 Accumulated other comprehensive loss    (4,583)    (4,049)
 Treasury stock    (8,830)    (8,519)
Total stockholders' equity    87,500     77,884 
      
Total liabilities and stockholders' equity $  101,924  $  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 year ended 
  December 31, 2016 December 31, 2015 December 31, 2016 December 31, 2015 
          
Net sales$  23,288  $  20,483  $  89,151  $  78,352  
Cost of sales   7,094     6,080     26,215     24,186  
          
Gross profit   16,194     14,403     62,936     54,166  
          
Operating expenses:        
 Sales and marketing   6,753     5,914     26,105     22,780  
 General and administrative   4,011     3,635     14,354     14,010  
 Research and development   1,521     1,575     6,141     5,479  
 Gain on divestiture   -     -     -     (360) 
 Medical device excise tax   -     190     -     744  
          
Total operating expenses   12,285     11,314     46,600     42,653  
          
Income from operations   3,909     3,089     16,336     11,513  
          
Other income:        
 Other income (loss), net   (75)    46     (94)    (89) 
          
Income before income taxes   3,834     3,135     16,242     11,424  
          
Provision for income taxes   1,237     605     5,652     3,666  
          
Net income $  2,597  $  2,530  $  10,590  $  7,758  
          
Earnings per share of common stock        
 Basic$  0.14  $  0.14  $  0.57  $  0.44  
 Diluted$  0.13  $  0.13  $  0.55  $  0.42  
          
Weighted - average shares outstanding:        
 Basic   18,585     18,175     18,485     17,764  
 Diluted   19,558     18,781     19,241     18,316  
          
          
Cash dividends declared per common share $  0.045  $  0.040  $  0.180  $  0.160  

 

 LEMAITRE VASCULAR, INC (NASDAQ: LMAT)            
 SELECTED NET SALES INFORMATION            
 (amounts in thousands)               
 (unaudited)               
                 
                 
  For the three months ended  For the year ended 
  December 31, 2016 December 31, 2015 December 31, 2016 December 31, 2015
  $ % $ % $ % $ %
Net Sales by Geography               
 Americas$  14,116 61% $  12,105 59% $  53,710 60% $  47,975 61%
 International   9,172 39%    8,378 41%    35,441 40%    30,377 39%
Total Net Sales$  23,288 100% $  20,483 100% $  89,151 100% $  78,352 100%

 

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 December 31, 2016        
  Net sales as reported $  23,288       
  Impact of currency exchange rate fluctuations    150       
  Net impact of acquisitions excluding currency    (770)      
    Adjusted net sales   $  22,668     
           
 For the three months ended December 31, 2015        
  Net sales as reported $  20,483       
  Net impact of divestitures excluding currency    (7)      
    Adjusted net sales   $  20,476     
           
   Adjusted net sales increase for the three months ended December 31, 2016  $  2,192   11%  
           
           
Reconciliation between GAAP and Non-GAAP sales growth:        
 For the year ended December 31, 2016        
  Net sales as reported $  89,151       
  Impact of currency exchange rate fluctuations    177       
  Net impact of acquisitions excluding currency    (1,684)      
    Adjusted net sales   $  87,644     
           
 For the year ended December 31, 2015        
  Net sales as reported $  78,352       
  Net impact of divestitures excluding currency    (30)      
    Adjusted net sales   $  78,322     
           
   Adjusted net sales increase for the year ended December 31, 2016   $  9,322   12%  
           
Reconciliation between GAAP and Non-GAAP sales growth:        
 For the three months ended March 31, 2017        
  Net sales per guidance $  23,500       
  Impact of currency exchange rate fluctuations    332       
  Net impact of acquisitions excluding currency    (1,195)      
    Adjusted net sales   $  22,637     
           
 For the three months ended March 31, 2016        
  Net sales as reported $  20,258       
  Net impact of divestitures excluding currency    -        
    Adjusted net sales   $  20,258     
           
   Adjusted net sales increase for the three months ended March 31, 2017  $  2,379   12%  
           
           
Reconciliation between GAAP and Non-GAAP sales growth:        
 For the year ended December 31, 2017        
  Net sales per guidance $  99,000       
  Impact of currency exchange rate fluctuations    1,605       
  Net impact of acquisitions excluding currency    (3,520)      
    Adjusted net sales   $  97,085     
           
 For the year ended December 31, 2016        
  Net sales as reported $  89,151       
  Net impact of divestitures excluding currency    -        
    Adjusted net sales   $  89,151     
           
   Adjusted net sales increase for the year ended December 31, 2017   $  7,934   9%  
           
           
           
    For the three months ended For the year ended
    December 31, 2016 December 31, 2015 December 31, 2016 December 31, 2015
Reconciliation between GAAP and Non-GAAP EBITDA        
 Net income as reported $  2,597  $  2,530  $  10,590  $  7,758 
 Interest (income) expense, net    (12)    (6)    (67)    (13)
 Amortization and depreciation expense    933     897     3,591     3,394 
 Provision for income taxes    1,237     605     5,652     3,666 
           
 EBITDA $  4,755  $  4,026  $  19,766  $  14,805 
           
 EBITDA percentage increase    18%    34%
           

 


 

 


            

Contact Data