LeMaitre Vascular Q4 2009 Record Sales $13.6mm (+12%), Op. Profit $1.2mm

BURLINGTON, Mass., March 4, 2010 (GLOBE NEWSWIRE) -- LeMaitre Vascular, Inc. (Nasdaq:LMAT), a provider of peripheral vascular devices and implants, today announced Q4 and full year 2009 financial results. The Company posted record quarterly sales of $13.6 million, operating income of $1.2 million and increased cash of $1.7 million excluding share repurchases. The Company also announced 2010 Q1 and full-year guidance.

Q4 2009 sales increased 12% versus Q4 2008, with Vascular sales increasing 25% and Endovascular decreasing 10%. Vascular sales benefitted from strong results across all product lines, the inclusion of the XenoSure Biologic Patch, and the stronger Euro. Endovascular sales were negatively impacted by decreases in TAArget stent graft sales, partially offset by the stronger Euro. Geographically, sales in the Americas increased 10%, while sales in Europe and Japan grew 13% and 27%, respectively. On an organic basis, Q4 2009 sales increased 4% versus the prior year.

Sales in 2009 were $50.9 million, a 4% increase over 2008. Sales increased 11% in Vascular while sales decreased 7% in Endovascular. Sales in the Americas increased 8% while international sales were flat. On an organic basis versus the prior year, 2009 sales increased 4% both in the Americas and internationally.

The Company reported a gross margin of 74.9% in Q4 2009, up from 69.6% in Q4 2008. The increase was driven by manufacturing efficiencies, higher average selling prices, and the stronger Euro. The full year 2009 gross margin was 73.3% versus 69.6% in 2008.

Q4 2009 operating profit was $1.2 million versus $354,000 in Q4 2008. Full year 2009 operating profit was $1.9 million versus a $2.9 million operating loss in 2008. Sales growth and an expanded gross margin drove improvements in both periods.

Net income in Q4 2009 was $1.3 million, or $0.08 per diluted share, versus net income of $312,000 in Q4 2008, or $0.02 per diluted share. Net income for 2009 was $1.6 million versus a net loss of $3.3 million in 2008.

The Company's cash and marketable securities increased by $1.7 million (excluding $427,000 of share repurchases) during Q4 2009 to $24.0 million at December 31, 2009. The increase was largely the result of $1.3 million in net income, and $635,000 of depreciation, amortization and stock-based compensation.

George W. LeMaitre, Chairman and CEO, said, "In Q4 the Company continued to demonstrate an ability to grow sales and add to the bottom line. Our 12% sales growth and expanded gross margin enabled us to more than triple our profitability versus Q4 2008, and I was happy to see our cash increase during the quarter. Looking ahead, our Q1 2010 guidance indicates sales growth of about 17%, driven in part by our lower cost North American sales rep model, which allows us more feet on the street."

Sales and marketing expenses increased 9% in Q4 2009 to $4.8 million, representing 35% of sales in Q4 2009 versus 36% in the year-earlier quarter. The Company ended 2009 with 61 sales representatives versus 52 at the end of 2008.

General and administrative expenses increased 6% in Q4 2009 to $2.4 million. Increases were due to additional spending in Europe, as well as changes in foreign exchange rates. General and administrative expenditures represented 18% of sales in Q4 2009 versus 19% in the year-earlier quarter.

R&D expenses increased 32% to $1.7 million in Q4 2009, a result of higher product development, regulatory and clinical affairs spending. Research and development expenditures represented 13% of sales in Q4 2009 versus 11% in the year earlier quarter. During Q4 2009 the Company received approval to market its AnastoClip GC Vessel Closure System in Europe. Also, in January 2010 the Company received its AlboGraft Vascular Graft 510(k) from the USFDA.

The Company expects 2010 sales of $55.0 million and operating income of $4.5 million. The Company also expects Q1 2010 sales of $13.3 million, and operating income of $750,000. Guidance amounts exclude the effects of future acquisitions, foreign exchange rate changes, distributor terminations and factory consolidations.

Conference Call Reminder

Management will conduct a conference call at 5:00 p.m. EST today to review the Company's financial results and discuss its business outlook for 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 866-783-2146 (+1-857-350-1605 for international callers), using passcode 90277372. For interested individuals unable to join the live conference call, a replay will be available on the Company's website.

About LeMaitre Vascular

LeMaitre Vascular is a provider of devices for the treatment of peripheral vascular disease. The Company develops, manufactures and markets disposable and implantable vascular devices to address the needs of vascular surgeons. The Company's devices are used to treat peripheral vascular disease, a condition the Company believes affects at least 20 million people worldwide.

Well-known to vascular surgeons, the Company's diversified product portfolio consists of brand name devices used in arteries and veins outside of the heart, including the Expandable LeMaitre Valvulotome, Pruitt F3 Carotid Shunt, TAArget Thoracic Stent Graft, UnBalloon Non-Occlusive Modeling catheter and AlboGraft Vascular Graft.

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 and third parties.

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 properly understand the Company's short-term and long-term financial trends, investors may wish to consider the impact of certain non-cash or non-recurring items, when used as a supplement to financial performance measures in accordance with GAAP. These items result from facts and circumstances that vary in frequency and/or impact on continuing operations. In addition, management uses results of operations before such items to evaluate the operational performance of the Company and as a basis for strategic planning. Investors should consider these non-GAAP measures 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 addition, this press release includes sales growth after adjusting for foreign exchange and distribution of the XenoSure Biologic Patch. We refer to this as organic sales growth. The Company analyzes net sales on a constant currency basis net of acquisitions and other non-recurring events 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 and other strategic transactions are episodic in nature and highly variable in sales impact, 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 both management and the Company's investors. The Company commenced distribution of the XenoSure Biologic Patch in Q1 2009.

Forward-Looking Statements

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, statements regarding the Company's financial and operational guidance are forward-looking, involving risks and uncertainties. The Company's current quarterly and full year financial results, as discussed in this release, are preliminary and unaudited, and subject to adjustment. 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 predicted. These risks and uncertainties include, but are not limited to, the risk that the Company does not generate sufficient operating scale to maintain or increase profitability; risks related to product demand and market acceptance of the Company's products; the possibility that the Company's new products may fail to provide the desired safety and efficacy or may not be accepted by the market for other reasons; risks related to the global economic recession; the significant competition the Company faces from other companies, technologies, and alternative medical procedures; the risk that the Company does not realize the anticipated benefits of its strategic transactions; the risk that the Company may fail to expand its product offerings through internal development or acquisition; the general uncertainty related to seeking regulatory approvals for the Company's products; 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.

Financial Statements