Full Press Release Details
LeMaitre Q2 2016 Record Sales $22.4mm (+13%), Record Op. Income $3.8mm (+35%)
$5.0mm Share Repurchase
BURLINGTON, MA, July 27, 2016 - LeMaitre Vascular, Inc. (Nasdaq:LMAT), a provider of vascular devices, today reported Q2 2016 results,
provided increased guidance, announced a $0.045/share dividend and authorized a $5.0mm share repurchase program.
Q2 2016 sales of $22.4mm increased 13% (+10% organic) vs. Q2
2015. XenoSure and valvulotomes led growth. International sales increased 22%, while The Americas grew 7%.
Gross margin improved to 68.6%
in Q2 2016 from 66.0% in Q2 2015, largely due to XenoSure production efficiencies and ASP increases across most product lines.
Operating expenses in Q2
2016 were $11.6mm, a 12% increase vs. the year-earlier quarter. The Company ended the quarter with 91 sales reps vs. 81 at the end of Q2 2015.
George W. LeMaitre, Chairman and CEO said, Sales increased 13% in Q2 while operating profits were up 35%. We continue to pursue 10% annual sales
growth and 20% annual profit growth.
Baxter Vascu-Guard Safety Alert
Baxter Healthcare Corporation issued a Safety Alert dated June 24, 2016, requesting that U.S. hospitals discontinue the use of certain lots of its Vascu-Guard
peripheral vascular patches. This Safety Alert was then issued in the U.K., Germany, Italy, Korea and other international markets. As a result, LeMaitre Vascular is experiencing higher than normal XenoSure patch sales. The Company s Q3 2016
guidance includes $1.25mm of incremental XenoSure sales, and Q4 2016 guidance includes $500,000 of incremental XenoSure sales. In developing its guidance, LeMaitre Vascular has assumed the Safety Alert will end September 30, 2016.
The Company is providing Q3 2016
guidance and raising full-year 2016 guidance as summarized below:
| Guidance Summary | ||||
| Previous (5/02/2016) | Current | |||
| Q3 2016 Sales | N/A | $22.2mm (+17% reported, +17% organic) | ||
| Q3 2016 Gross Margin | N/A | 72.0% | ||
| Q3 2016 Operating Income | N/A | $4.3mm (+29%, 19% op. margin) | ||
| 2016 Sales | $85.7mm (+9% reported, +8% organic) | $88.3mm (+13% reported, +12% organic) | ||
| 2016 Gross Margin | 70.5% | 70.5% | ||
| 2016 Operating Income | $14.3mm (+24%, 17% op. margin) | $15.9mm (+38%, 18% op. margin) |
On July 25, 2016, the Company s Board of Directors approved a quarterly dividend of $0.045/share of common stock. The dividend will be
paid September 6, 2016 to shareholders of record on August 22, 2016.
Share Repurchase Program
On July 25, 2016, the Company s Board of Directors authorized the repurchase of up to $5.0mm of the Company s outstanding common stock from time to
time on the open market or in privately negotiated transactions. The timing and number of any shares repurchased will be determined by Company management, based on their evaluation of market conditions and other factors. Repurchases may also be made
under a Rule 10b5-1 plan, which would permit shares to be repurchased when the Company might otherwise be precluded from doing so under insider trading laws. The repurchase program may be suspended or discontinued at any time and will conclude no
later than July 25, 2017, unless extended by the Company s Board of Directors. The repurchase program will be funded using the Company s available cash and cash equivalents.
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 53259228.
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
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 Q3 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
CONTACT: J.J. Pellegrino
LEMAITRE VASCULAR, INC (NASDAQ: LMAT)
CONDENSED CONSOLIDATED BALANCE SHEETS
| June 30, 2016 | December 31, 2015 | |||||||
| (unaudited) | ||||||||
| Assets | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 29,315 | $ | 27,451 | ||||
| Accounts receivable, net | 12,838 | 11,971 | ||||||
| Inventory | 16,961 | 15,205 | ||||||
| Prepaid expenses and other current assets | 3,308 | 3,557 | ||||||
| Total current assets | 62,422 | 58,184 | ||||||
| Property and equipment, net | 7,324 | 7,022 | ||||||
| Goodwill | 18,150 | 17,789 | ||||||
| Other intangibles, net | 6,211 | 6,336 | ||||||
| Deferred tax assets | 1,245 | 1,205 | ||||||
| Other assets | 177 | 168 | ||||||
| Total assets | $ | 95,529 | $ | 90,704 | ||||
| Liabilities and stockholders equity | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 1,550 | $ | 1,366 | ||||
| Accrued expenses | 7,810 | 8,837 | ||||||
| Acquisition-related obligations | 776 | 165 | ||||||
| Total current liabilities | 10,136 | 10,368 | ||||||
| Deferred tax liabilities | 1,679 | 1,678 | ||||||
| Other long-term liabilities | 864 | 774 | ||||||
| Total liabilities | 12,679 | 12,820 | ||||||
| Stockholders equity | ||||||||
| Common stock | 199 | 197 | ||||||
| Additional paid-in capital | 83,425 | 82,094 | ||||||
| Retained earnings | 11,272 | 8,161 | ||||||
| Accumulated other comprehensive loss | (3,525 | ) | (4,049 | ) | ||||
| Treasury stock | (8,521 | ) | (8,519 | ) | ||||
| Total stockholders equity | 82,850 | 77,884 | ||||||
| Total liabilities and stockholders equity | $ | 95,529 | $ | 90,704 |
LEMAITRE VASCULAR, INC (NASDAQ: LMAT)
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
in thousands, except per share amounts)
| For the three months ended | For the six months ended | |||||||||||||||
| June 30, 2016 | June 30, 2015 | June 30, 2016 | June 30, 2015 | |||||||||||||
| Net sales | $ | 22,389 | $ | 19,897 | $ | 42,647 | $ | 38,844 | ||||||||
| Cost of sales | 7,022 | 6,767 | 12,924 | 12,597 | ||||||||||||
| Gross profit | 15,367 | 13,130 | 29,723 | 26,247 | ||||||||||||
| Operating expenses: | ||||||||||||||||
| Sales and marketing | 6,539 | 5,519 | 12,812 | 11,376 | ||||||||||||
| General and administrative | 3,411 | 3,303 | 6,748 | 6,921 | ||||||||||||
| Research and development | 1,634 | 1,331 | 3,080 | 2,484 | ||||||||||||
| Medical device excise tax | 183 | 363 | ||||||||||||||
| Total operating expenses | 11,584 | 10,336 | 22,640 | 21,144 | ||||||||||||
| Income from operations | 3,783 | 2,794 | 7,083 | 5,103 | ||||||||||||
| Other income: | ||||||||||||||||
| Other income, net | 53 | 30 | 18 | 47 | ||||||||||||
| Income before income taxes | 3,836 | 2,824 | 7,101 | 5,150 | ||||||||||||
| Provision (benefit) for income taxes | 1,238 | 1,057 | 2,337 | 2,014 | ||||||||||||
| Net income | $ | 2,598 | $ | 1,767 | $ | 4,764 | $ | 3,136 | ||||||||
| Earnings per share of common stock | ||||||||||||||||
| Basic | $ | 0.14 | $ | 0.10 | $ | 0.26 | $ | 0.18 | ||||||||
| Diluted | $ | 0.14 | $ | 0.10 | $ | 0.25 | $ | 0.17 | ||||||||
| Weighted - average shares outstanding: | ||||||||||||||||
| Basic | 18,408 | 17,582 | 18,372 | 17,503 | ||||||||||||
| Diluted | 18,978 | 18,065 | 18,926 | 17,930 | ||||||||||||
| Cash dividends declared per common share | $ | 0.045 | $ | 0.040 | $ | 0.090 | $ | 0.080 |
LEMAITRE VASCULAR, INC (NASDAQ: LMAT)
SELECTED NET SALES INFORMATION
(amounts in thousands)
| For the three months ended | For the six months ended | |||||||||||||||||||||||||||||||
| June 30, 2016 | June 30, 2015 | June 30, 2016 | June 30, 2015 | |||||||||||||||||||||||||||||
| $ | % | $ | % | $ | % | $ | % | |||||||||||||||||||||||||
| Net Sales by Geography | ||||||||||||||||||||||||||||||||
| Americas | $ | 13,189 | 59 | % | $ | 12,371 | 62 | % | $ | 25,066 | 59 | % | $ | 23,954 | 62 | % | ||||||||||||||||
| International | 9,200 | 41 | % | 7,526 | 38 | % | 17,581 | 41 | % | 14,890 | 38 | % | ||||||||||||||||||||
| Total Net Sales | $ | 22,389 | 100 | % | $ | 19,897 | 100 | % | $ | 42,647 | 100 | % | $ | 38,844 | 100 | % |
LEMAITRE VASCULAR, INC (NASDAQ: LMAT)
NON-GAAP FINANCIAL MEASURES
(amounts in thousands)
| Reconciliation between GAAP and Non-GAAP sales growth: | ||||||||||||||||
| For the three months ending June 30, 2016 | ||||||||||||||||
| Net sales as reported | $ | 22,389 | ||||||||||||||
| Impact of currency exchange rate fluctuations | (126 | ) | ||||||||||||||
| Net impact of acquisitions excluding currency | (434 | ) | ||||||||||||||
| Adjusted net sales | $ | 21,829 | ||||||||||||||
| For the three months ending June 30, 2015 | ||||||||||||||||
| Net sales as reported | $ | 19,897 | ||||||||||||||
| Net impact of divestitures excluding currency | (4 | ) | ||||||||||||||
| Adjusted net sales | $ | 19,893 | ||||||||||||||
| Adjusted net sales increase for the three months ending June 30, 2016 | $ | 1,936 | 10 | % | ||||||||||||
| Reconciliation between GAAP and Non-GAAP sales growth: | ||||||||||||||||
| For the three months ending September 30, 2016 | ||||||||||||||||
| Net sales per guidance | $ | 22,200 | ||||||||||||||
| Impact of currency exchange rate fluctuations | 168 | |||||||||||||||
| Net impact of acquisitions excluding currency | (250 | ) | ||||||||||||||
| Adjusted net sales | $ | 22,118 | ||||||||||||||
| For the three months ending September 30, 2015 | ||||||||||||||||
| Net sales as reported | $ | 19,025 | ||||||||||||||
| Net impact of divestitures excluding currency | (55 | ) | ||||||||||||||
| Adjusted net sales | $ | 18,970 | ||||||||||||||
| Adjusted net sales increase for the three months ending September 30, 2016 | $ | 3,148 | 17 | % | ||||||||||||
| Reconciliation between GAAP and Non-GAAP sales growth: | ||||||||||||||||
| For the year ending December 31, 2016 | ||||||||||||||||
| Net sales per guidance | $ | 88,300 | ||||||||||||||
| Impact of currency exchange rate fluctuations | 269 | |||||||||||||||
| Net impact of acquisitions excluding currency | (1,152 | ) | ||||||||||||||
| Adjusted net sales | $ | 87,417 | ||||||||||||||
| For the year ending December 31, 2015 | ||||||||||||||||
| Net sales as reported | $ | 78,352 | ||||||||||||||
| Net impact of divestitures excluding currency | (199 | ) | ||||||||||||||
| Adjusted net sales | $ | 78,153 | ||||||||||||||
| Adjusted net sales increase for the year ending December 31, 2016 | $ | 9,624 | 12 | % | ||||||||||||
| For the three months ended | For the six months ended | |||||||||||||||
| June 30, 2016 | June 30, 2015 | June 30, 2016 | June 30, 2015 | |||||||||||||
| Reconciliation between GAAP and Non-GAAP EBITDA | ||||||||||||||||
| Net income as reported | $ | 2,598 | $ | 1,767 | $ | 4,764 | $ | 3,136 | ||||||||
| Interest income | (16 | ) | (4 | ) | (31 | ) | (4 | ) | ||||||||
| Amortization and depreciation expense | 931 | 840 | 1,812 | 1,672 | ||||||||||||
| Provision for income taxes | 1,238 | 1,057 | 2,337 | 2,014 | ||||||||||||
| EBITDA | $ | 4,751 | $ | 3,660 | $ | 8,882 | $ | 6,818 | ||||||||
| EBITDA percentage increase | 30 | % | 30 | % |