LeMaitre Q4 2023 Financial Results

LeMaitre (Nasdaq:LMAT), a provider of vascular devices, implants and services, today reported Q4 2023 results, announced a $0.16/share quarterly dividend and provided guidance.

BURLINGTON, Mass., Feb. 27, 2024 (GLOBE NEWSWIRE) -- LeMaitre (Nasdaq:LMAT), a provider of vascular devices, implants and services, today reported Q4 2023 results, announced a $0.16/share quarterly dividend and provided guidance.

Q4 2023 Financial Results

  • Sales $48.9mm, +19% (+14% organic) vs. Q4 2022
  • Gross margin 68.1%, +450 bps
  • Op. income $10.2mm, +46%
  • Op. margin 21%
  • Net income $8.5mm, +50%
  • Earnings per diluted share $0.38, +49%
  • Cash up $8.1mm sequentially to $105.1mm

Bovine patches (+18%), allografts (+52%), valvulotomes (+12%), carotid shunts (+16%) and distributed porcine patches drove Q4 sales. EMEA sales increased 21%, the Americas 20% and APAC 11%.

The gross margin increased to 68.1% in Q4 (vs. 63.6% in Q4 2022) driven primarily by average selling price increases, as well as manufacturing efficiencies.

Operating income of $10.2mm was up 46% vs. Q4 2022. Operating expenses grew 21% year-over-year due to increased sales commissions, other compensation and CE-related regulatory costs.

Chairman/CEO George LeMaitre said, “Our 19% sales growth and gross margin recovery produced 46% op. income growth in Q4. Full year 2024 guidance implies an operating margin of 21%, up from 19% in 2023.”

Business Outlook

Q1 2024 Guidance Full Year 2024 Guidance
Sales $50.5mm - $52.9mm
(Mid: $51.7mm, +10%, +7% Org.)
$209.7mm - $214.3mm
(Mid: $212.0mm, +10%, +9% Org.)
Gross Margin 68.5% 68.0%
Op. Income $9.7mm - $11.3mm
(Mid: $10.5mm, +33%)
(Mid: $10.5mm, +28% Ex-Special)*
$43.4mm - $46.5mm
(Mid $45.0mm, +22%)
(Mid: $45.0mm, +21%, Ex-Special)*
EPS $0.36 - $0.41
(Mid: $0.39, +42%)
(Mid: $0.39, +37%, Ex-Special)*
$1.60 - $1.71
(Mid: $1.65, +23%)
(Mid: 1.65, +22%, Ex-Special)*

*Special charges in 2023 are related to the St. Etienne factory closure.

Quarterly Dividend

On February 21, 2024, the Company’s Board of Directors approved a quarterly dividend of $0.16/share of common stock. The dividend will be paid on March 28, 2024 to shareholders of record on March 14, 2024.

Share Repurchase Program

On February 21, 2024, the Company’s Board of Directors authorized the repurchase of up to $50.0mm of the Company’s common stock. The repurchase program may be suspended or discontinued at any time and will conclude on February 21, 2025, unless extended by the Board.

Conference Call Reminder

Management will conduct a conference call at 5:00pm ET today. The conference call will be broadcast live over the Internet. Individuals interested in listening to the webcast can log on to the Company’s website at www.lemaitre.com/investor. Access to the live call is available by registering online here. All registrants will receive dial-in information and a PIN allowing them to access the live call. The audio webcast can also be accessed live or via replay through a webcast at www.lemaitre.com/investor. 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

LeMaitre is a provider of devices, implants and services for the treatment of peripheral vascular disease, a condition that affects more than 200 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 is a registered trademark of LeMaitre Vascular, Inc. This press release may include other trademarks and trade names of the Company.

For more information about the Company, please visit www.lemaitre.com.

Use of Non-GAAP Financial Measures

LeMaitre management believes that in order to better understand the Company’s short- 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, including EBITDA. This press release also provides guidance for operating income and EPS excluding the special charge relating to the closure of our St. Etienne factory and revenue related the Aziyo distribution agreement. The Company refers to the calculation of non-GAAP sales growth percentages as “organic.” The Company analyzes non-GAAP sales on a constant currency basis, net of acquisitions and other non-recurring events, and the aforementioned non-GAAP profitability measures 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, divestitures, product discontinuations, factory closures, 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 the presentation of guidance described above for operating income and EPS provides an alternative and meaningful view of the Company’s profitability.

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. 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 status of our global regulatory approvals and compliance with regulatory requirements to market and sell our products both in the U.S. and outside of the U.S.; risks from implementing a new enterprise resource planning system; the risks from competition from other companies; the risk of significant fluctuations in our quarterly and annual results due to numerous factors; 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; the risk that we may not be able to maintain our recent levels of profitability; the risk that the Company may not realize the anticipated benefits of its strategic activities; risks related to the integration of acquisition targets; the acceleration or deceleration of product growth rates; 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 Company is not successful in transitioning to a direct-selling model in new territories 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, which are all available on the Company’s investor relations website at http://www.lemaitre.com and on the SEC’s website at https://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, 2023 December 31, 2022
(unaudited)
Assets
Current assets:
Cash and cash equivalents $ 24,269 $ 19,134
Short-term marketable securities 80,805 63,557
Accounts receivable, net 25,064 22,040
Inventory and other deferred costs 58,080 50,271
Prepaid expenses and other current assets 6,380 6,731
Total current assets 194,598 161,733
Property and equipment, net 21,754 17,901
Right-of-use leased assets 18,027 15,634
Goodwill 65,945 65,945
Other intangibles, net 41,711 46,527
Deferred tax assets 1,003 1,745
Other assets 3,740 991
Total assets $ 346,778 $ 310,476
Liabilities and stockholders’ equity
Current liabilities:
Accounts payable $ 3,734 $ 2,903
Accrued expenses 23,650 19,967
Acquisition-related obligations 24 573
Lease liabilities - short-term 2,471 1,886
Total current liabilities 29,879 25,329
Lease liabilities - long-term 16,624 14,710
Deferred tax liabilities 107 69
Other long-term liabilities 2,268 2,167
Total liabilities 48,878 42,275
Stockholders’ equity
Common stock 239 237
Additional paid-in capital 200,755 189,268
Retained earnings 115,430 97,773
Accumulated other comprehensive loss (4,625 ) (6,031 )
Treasury stock (13,899 ) (13,046 )
Total stockholders’ equity 297,900 268,201
Total liabilities and stockholders’ equity $ 346,778 $ 310,476

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, 2023 December 31, 2022 December 31, 2023 December 31, 2022
Net sales $ 48,883 $ 40,954 $ 193,484 $ 161,651
Cost of sales 15,618 14,900 66,435 56,755
Gross profit 33,265 26,054 127,049 104,896
Operating expenses:
Sales and marketing 10,268 8,600 41,054 32,921
General and administrative 8,440 6,933 31,832 28,745
Research and development 4,351 3,554 16,966 13,294
Restructuring - - 485 3,107
Total operating expenses 23,059 19,087 90,337 78,067
Income from operations 10,206 6,967 36,712 26,829
Other income (expense), net
Interest income 992 447 3,077 986
Other income (loss), net 115 384 (314 ) (325 )
Income before income taxes 11,313 7,798 39,475 27,490
Provision for income taxes 2,848 2,171 9,370 6,854
Net income $ 8,465 $ 5,627 $ 30,105 $ 20,636
Earnings per share of common stock
Basic $ 0.38 $ 0.26 $ 1.36 $ 0.94
Diluted $ 0.38 $ 0.25 $ 1.34 $ 0.93
Weighted - average shares outstanding:
Basic 22,278 22,023 22,217 21,975
Diluted 22,459 22,238 22,423 22,171
Cash dividends declared per common share $ 0.140 $ 0.125 $ 0.560 $ 0.500

LEMAITRE VASCULAR, INC. (NASDAQ: LMAT)
SELECTED NET SALES INFORMATION
(amounts in thousands)
(unaudited)
For the three months ended For the year ended
December 31, 2023 December 31, 2022 December 31, 2023 December 31, 2022
$ % $ % $ % $ %
Net Sales by Geography
Americas $ 32,812 67 % $ 27,415 67 % $ 130,308 67 % $ 109,439 68 %
Europe, Middle East and Africa 12,920 26 % 10,689 26 % 51,099 27 % 41,854 26 %
Asia Pacific 3,151 7 % 2,850 7 % 12,077 6 % 10,358 6 %
Total Net Sales $ 48,883 100 % $ 40,954 100 % $ 193,484 100 % $ 161,651 100 %

LEMAITRE VASCULAR, INC. (NASDAQ: LMAT)
NON-GAAP FINANCIAL MEASURES
(amounts in thousands)
(unaudited)
For the three months ended For the year ended
December 31, 2023 December 31, 2022 December 31, 2023 December 31, 2022
Reconciliation between GAAP and Non-GAAP EBITDA
Net income as reported $ 8,465 $ 5,627 $ 30,105 $ 20,636
Interest (income) expense, net (992 ) (447 ) (3,077 ) (986 )
Amortization and depreciation expense 2,443 2,288 9,515 9,433
Provision for income taxes 2,848 2,171 9,370 6,854
EBITDA $ 12,764 $ 9,639 $ 45,913 $ 35,937
EBITDA percentage increase (decrease) 32 % 28 %

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, 2023
Net sales as reported $ 48,883
Net distribution sales (1,479 )
Impact of currency exchange rate fluctuations (556 )
Adjusted net sales $ 46,848
For the three months ended December 31, 2022
Net sales as reported $ 40,954
Adjusted net sales $ 40,954
Adjusted net sales increase for the three months ended December 31, 2023 $ 5,894 14 %
Reconciliation between GAAP and Non-GAAP projected sales growth:
For the three months ending March 31, 2024
Net sales per guidance (midpoint) $ 51,722
Net distribution sales (1,247 )
Impact of currency exchange rate fluctuations (35 )
Adjusted projected net sales $ 50,440
For the three months ended March 31, 2023
Net sales as reported $ 47,075
Adjusted net sales $ 47,075
Adjusted projected net sales increase for the three months ending March 31, 2024 $ 3,365 7 %
Reconciliation between GAAP and Non-GAAP projected sales growth:
For the year ending December 31, 2024
Net sales per guidance (midpoint) $ 212,000
Net distribution sales (1,574 )
Impact of currency exchange rate fluctuations 133
Adjusted projected net sales $ 210,559
For the year ended December 31, 2023
Net sales as reported $ 193,484
Adjusted net sales $ 193,484
Adjusted projected net sales increase for the year ending December 31, 2024 $ 17,075 9 %
Reconciliation between GAAP and Non-GAAP projected operating income:
For the three months ending March 31, 2024
Operating income per guidance (midpoint) $ 10,490
Adjusted projected operating income $ 10,490
For the three months ended March 31, 2023
Operating income as reported $ 7,874
Impact of special charge 305
Adjusted operating income $ 8,179
Adjusted projected operating income increase for the three months ending March 31, 2024 $ 2,311 28 %
Reconciliation between GAAP and Non-GAAP projected operating income:
For the year ending December, 2024
Operating income per guidance (midpoint) $ 44,955
Adjusted projected operating income $ 44,955
For the year ended December 31, 2023
Operating income as reported $ 36,712
Impact of special charge 485
Adjusted operating income $ 37,197
Adjusted projected operating income increase for the year ending December 31, 2024 $ 7,758 21 %
Reconciliation between GAAP and Non-GAAP projected EPS:
For the three months ending March 31, 2024
EPS per guidance (midpoint) $ 0.39
Adjusted EPS $ 0.39
For the three months ended March 31, 2023
EPS as reported $ 0.27
Impact of special charge, including tax 0.01
Adjusted EPS $ 0.28
Adjusted projected EPS increase for the three months ending March 31, 2024 $ 0.11 37 %
Reconciliation between GAAP and Non-GAAP projected EPS:
For the year ending December 31, 2024
EPS per guidance (midpoint) $ 1.65
Adjusted EPS $ 1.65
For the year ended December 31, 2023
EPS as reported $ 1.34
Impact of special charge, including tax 0.01
Adjusted EPS $ 1.35
Adjusted projected EPS increase for the year ending December 31, 2024 $ 0.30 22 %


CONTACT: J.J. Pellegrino, CFO, LeMaitre 781-425-1691 jjpellegrino@lemaitre.com

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