BURLINGTON, Mass., Oct. 27, 2022 (GLOBE NEWSWIRE) — LeMaitre (Nasdaq:LMAT), a provider of vascular devices, implants and services, today reported Q3 2022 results, announced a $0.125/share quarterly dividend and provided guidance.

Q3 2022 Financial Results

  • Sales of $39.0mm, +2% (+7% organic) vs. Q3 2021
  • Op. income $6.2mm, -32%
  • Op. margin of 16%
  • Net income of $5.5mm, -16%
  • Earnings per diluted share $0.25, -17%
  • Cash and investments +$4.1mm to $79.7mm

Q3 2022 sales growth was driven by carotid shunts (+23%), Artegraft (+12%), allografts (+10%) and embolectomy catheters (+10%). By geography, organic sales increased 11% in APAC, 8% in EMEA and 6% in the Americas. The strong U.S. dollar reduced sales by $1.9mm.

The gross margin decreased to 64.2% in Q3 2022 (vs. 64.8% in Q3 2021). The strong dollar reduced the gross margin by 1.7% year-over-year. The Company had 213 direct labor employees as of September 30, up 54% year-over-year.

Q3 2022 operating income was $6.2mm. Q3 operating expense growth was driven by increased headcount, including a 28% larger salesforce (118 reps on September 30), as well as MDR-related regulatory expenses.

George LeMaitre, Chairman and CEO, said “In Q3 we grew 7% organically and increased our cash balance by $4.1 million to $79.7 million. We continue to build sales rep and direct labor headcount, both now at high-water marks. We expect these investments will drive organic sales growth and improvement to the gross margin in the quarters ahead.”

Business Outlook

    Q4 2022 Guidance 2022 Full Year Guidance
  Sales $39.8mm – $42.2mm
(Mid: $41.0mm, +4%, +9% Org.)
$160.5mm – $162.9mm
(Mid:$161.7mm, +5%, +9% Org.)
  Gross Margin 65.8% 65.4%
  Op. Income $6.6mm – $8.2mm
(Mid: $7.4mm, -11%)
$26.5mm – $28.0mm
(Mid $27.2mm, -25%)
  Op. Income Ex- Spec. Charge $29.6mm – $31.1mm
(Mid: $30.3mm, -17%)
  EPS $0.24 – $0.29
(Mid: $0.26, -5%)
$0.91 – $0.97
(Mid: $0.94, -25%)
  EPS Ex-
Spec. Charge
$1.02 – $1.08
(Mid: $1.05, -16%)

Quarterly Dividend

On October 25, 2022, the Company’s Board of Directors approved a quarterly dividend of $0.125/share of common stock. The dividend will be paid on December 1, 2022 to shareholders of record on November 17, 2022.

Share Repurchase Program

On February 22, 2022, the Company’s Board of Directors authorized the repurchase of up to $20.0mm of the Company’s common stock. The repurchase program may be suspended or discontinued at any time and will conclude on February 22, 2023, unless extended by the Board.

Board Appointment

On September 21, 2022, the Company’s Board of Directors appointed Martha Shadan as an independent director. Ms. Shadan has over 20 years of life sciences experience, including President and CEO at Miach Orthopedics and Rotation Medical. Ms. Shadan currently serves on the boards of CVRx and AdvaMed.

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 http://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 http://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 as well as EBITDA or earnings before interest, taxes, depreciation and amortization and guidance for full year operating income and EPS excluding special charge. 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, 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. The Company believes that the presentation of full year guidance for operating income and EPS excluding special charge provides an alternative and meaningful view of the Company’s profitability excluding the impact of the closure of the Company’s St. Etienne, France factory, a non-recurring event.

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.; the duration and severity of the impact of COVID-19 on the global economy, our customers, our suppliers and our company; 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 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.

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

LEMAITRE VASCULAR, INC. (NASDAQ: LMAT)
CONDENSED CONSOLIDATED BALANCE SHEETS
(amounts in thousands)
           
           
      September 30, 2022   December 31, 2021
      (unaudited)    
Assets        
           
Current assets:        
  Cash and cash equivalents   $ 16,913     $ 13,855  
  Short-term marketable securities     62,826       56,104  
  Accounts receivable, net     20,094       19,631  
  Inventory and other deferred costs     47,711       46,104  
  Prepaid expenses and other current assets     4,842       4,189  
  Asset held for sale     756        
Total current assets     153,142       139,883  
           
Property and equipment, net     15,351       17,059  
Right-of-use leased assets     15,785       15,071  
Goodwill     65,945       65,945  
Other intangibles, net     48,063       52,710  
Deferred tax assets     2,789       1,566  
Other assets     973       568  
           
Total assets   $ 302,048     $ 292,802  
           
           
Liabilities and stockholders’ equity        
           
Current liabilities:        
  Accounts payable   $ 2,848     $ 2,340  
  Accrued expenses     17,400       16,332  
  Acquisition-related obligations     1,363       1,271  
  Lease liabilities – short-term     1,828       1,870  
Total current liabilities     23,439       21,813  
           
Lease liabilities – long-term     14,897       14,067  
Deferred tax liabilities     60       70  
Other long-term liabilities     2,405       2,701  
Total liabilities     40,801       38,651  
           
Stockholders’ equity        
  Common stock     236       235  
  Additional paid-in capital     186,798       181,630  
  Retained earnings     94,896       88,125  
  Accumulated other comprehensive loss     (8,127 )     (3,435 )
  Treasury stock     (12,556 )     (12,404 )
Total stockholders’ equity     261,247       254,151  
           
Total liabilities and stockholders’ equity   $ 302,048     $ 292,802  

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, 2022   September 30, 2021   September 30, 2022   September 30, 2021
                 
Net sales $ 39,028     $ 38,368     $ 120,697     $ 114,921  
Cost of sales   13,958       13,502       41,855       39,495  
                 
Gross profit   25,070       24,866       78,842       75,426  
                 
Operating expenses:              
  Sales and marketing   8,229       6,941       24,321       20,210  
  General and administrative   7,229       6,004       21,812       18,748  
  Research and development   3,462       2,848       9,740       8,344  
  Restructuring               3,107        
Total operating expenses   18,920       15,793       58,980       47,302  
                 
Income from operations   6,150       9,073       19,862       28,124  
                 
Other income (expense), net              
  Interest income   264       54       539       56  
  Interest expense         (621 )           (1,693 )
  Foreign currency gain (loss)   (266 )     (72 )     (709 )     (105 )
                 
Income before income taxes   6,148       8,434       19,692       26,382  
                 
Provision for income taxes   692       1,930       4,683       5,650  
                 
Net income $ 5,456     $ 6,504     $ 15,009     $ 20,732  
                 
Earnings per share of common stock              
  Basic $ 0.25     $ 0.30     $ 0.68     $ 0.99  
  Diluted $ 0.25     $ 0.30     $ 0.68     $ 0.98  
                 
Weighted – average shares outstanding:              
  Basic   21,984       21,592       21,959       20,920  
  Diluted   22,217       21,935       22,149       21,251  
                 
                 
Cash dividends declared per common share $ 0.125     $ 0.110     $ 0.375     $ 0.330  

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, 2022   September 30, 2021   September 30, 2022   September 30, 2021
    $   %   $   %   $   %   $   %
Net Sales by Geography                              
  Americas $ 26,627     68 %   $ 25,299     66 %   $ 82,024     68 %   $ 76,327     67 %
  Europe, Middle East and Africa   9,922     25 %     10,535     27 %     31,165     26 %     31,200     27 %
  Asia Pacific   2,479     7 %     2,534     7 %     7,508     6 %     7,394     6 %
Total Net Sales $ 39,028     100 %   $ 38,368     100 %   $ 120,697     100 %   $ 114,921     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 September 30, 2022              
    Net sales as reported   $ 39,028          
    Impact of currency exchange rate fluctuations     1,895          
        Adjusted net sales       $ 40,923        
                   
  For the three months ended September 30, 2021              
    Net sales as reported   $ 38,368          
        Adjusted net sales       $ 38,368        
                   
    Adjusted net sales increase for the three months ended September 30, 2022   $ 2,555     7 %  
                   
                   
APAC sales growth reconciliation between GAAP and Non-GAAP:              
  For the three months ended September 30, 2022              
    Net sales as reported   $ 2,479          
    Impact of currency exchange rate fluctuations     334          
       APAC adjusted net sales       $ 2,813        
                   
  For the three months ended September 30, 2021              
    Net sales as reported   $ 2,534          
        Adjusted net sales       $ 2,534        
                   
    APAC adjusted net sales increase for the three months ended September 30, 2022   $ 279     11 %  
                   
                   
EMEA sales growth reconciliation between GAAP and Non-GAAP:              
  For the three months ended September 30, 2022              
    Net sales as reported   $ 9,922          
    Impact of currency exchange rate fluctuations     1,486          
        EMEA adjusted net sales       $ 11,408        
                   
  For the three months ended September 30, 2021              
    Net sales as reported   $ 10,535          
        Adjusted net sales       $ 10,535        
                   
    EMEA adjusted net sales increase for the three months ended September 30, 2022   $ 873     8 %  
                   
                   
Americas sales growth reconciliation between GAAP and Non-GAAP:              
  For the three months ended September 30, 2022              
    Net sales as reported   $ 26,627          
    Impact of currency exchange rate fluctuations     74          
        Americas adjusted net sales       $ 26,701        
                   
  For the three months ended September 30, 2021              
    Net sales as reported   $ 25,299          
        Adjusted net sales       $ 25,299        
                   
    Americas adjusted net sales increase for the three months ended September 30, 2022   $ 1,402     6 %  
                   
                   
Reconciliation between GAAP and Non-GAAP projected sales growth:              
  For the three months ending December 31, 2022              
    Net sales per guidance (midpoint)   $ 41,000          
    Impact of currency exchange rate fluctuations     2,049          
        Adjusted projected net sales       $ 43,049        
                   
  For the three months ended December 31, 2021              
    Net sales as reported   $ 39,503          
        Adjusted net sales       $ 39,503        
                   
    Adjusted projected net sales increase for the three months ending December 31, 2022   $ 3,546     9 %  
                   
                   
Reconciliation between GAAP and Non-GAAP projected sales growth:              
  For the year ending December 31, 2022              
    Net sales per guidance (midpoint)   $ 161,697          
    Impact of currency exchange rate fluctuations     6,445          
        Adjusted projected net sales       $ 168,142        
                   
  For the year ended December 31, 2021              
    Net sales as reported   $ 154,424          
        Adjusted net sales       $ 154,424        
                   
    Adjusted projected net sales increase for the year ending December 31, 2022   $ 13,718     9 %  
                   
                   
Reconciliation between GAAP and Non-GAAP projected operating income:            
  For the year ending December 31, 2022              
    Operating income per guidance (midpoint)   $ 27,242          
    Impact of special charge     3,107          
        Adjusted projected operating income       $ 30,349        
                   
  For the year ended December 31, 2021              
    Operating income as reported   $ 36,425          
        Adjusted operating income       $ 36,425        
                   
    Adjusted projected operating income decrease for the year ending December 31, 2022   $ (6,076 )   -17 %  
                   
                   
Reconciliation between GAAP and Non-GAAP projected EPS:              
  For the year ending December 31, 2022              
    EPS per guidance (midpoint)   $ 0.94          
    Impact of special charge   $ 0.11          
        Adjusted EPS       $ 1.05        
                   
  For the year ended December 31, 2021              
    EPS as reported   $ 1.25          
        Adjusted EPS       $ 1.25        
                   
    Adjusted projected EPS decrease for the year ending December 31, 2022   $ (0.20 )   -16 %  

LEMAITRE VASCULAR, INC. (NASDAQ: LMAT)
NON-GAAP FINANCIAL MEASURES
(amounts in thousands)
(unaudited)
             
             
    For the three months ended   For the nine months ended   LTM
    September 30, 2022   September 30, 2022   September 30, 2022
Reconciliation between GAAP and Non-GAAP EBITDA          
  Net income as reported $ 5,456     $ 15,009     $ 21,184  
  Interest (income) expense, net   (264 )     (539 )     (154 )
  Amortization and depreciation expense   2,328       7,145       9,504  
  Provision for income taxes   692       4,683       6,413  
             
  EBITDA $ 8,212     $ 26,298     $ 36,947  
             

error: Content is protected !!