LeMaitre Q4 2017 Record Sales $26.2mm (+12%), Record Op. Income $6.3mm (+62%)

LeMaitre Q4 2017 Record Sales $26.2mm (+12%), Record Op. Income $6.3mm (+62%)

BURLINGTON, Mass., Feb. 21, 2018 (GLOBE NEWSWIRE) -- LeMaitre Vascular, Inc. (Nasdaq:LMAT), a provider of vascular devices, implants and services, today reported Q4 2017 results, provided guidance, and announced a 27% dividend increase to $0.07/share.

Q4 2017 Results

  • Record sales of $26.2mm, +12% vs. Q4 2016
  • Record operating income of $6.3mm vs. $3.9mm, +62%
  • Net income of $4.3mm vs. $2.6mm, +65%
  • Earnings of $0.21 per diluted share vs. $0.13, +60%
  • Record EBITDA of $7.4mm vs. $4.8mm, +55%

Q4 2017 sales of $26.2mm increased 12% (+7% organic) vs. Q4 2016.  Allografts, valvulotomes, and patches led growth.  Sales in the Americas and Europe/Middle East/Africa were up 15% and 22% respectively while sales in Asia/Pac Rim decreased 41%.

Gross margin increased to 69.8% in Q4 2017 from 69.5% in Q4 2016 primarily due to product and geographic mix.

Operating expenses in Q4 2017 were $11.9mm, a 3% decrease vs. the year-earlier quarter. The Company ended the quarter with 90 sales reps vs. 96 at the end of Q4 2016.

Full Year 2017 Results

  • Sales of $100.9mm, +13% reported (+7% organic) vs. 2016
  • Operating income of $21.1mm vs. $16.3mm, +29%
  • Net income of $17.2mm vs. $10.6mm, +62%
  • EPS of $0.86 per diluted share vs. $0.55, +56%
  • Dividends paid of $0.22 per share vs $0.18, +22%
  • EBITDA of $25.0mm vs. $19.8mm, +26%

George W. LeMaitre, Chairman and CEO said, “Sales increased 13% in 2017, while operating income was up 29%.  We continue to pursue 10% annual reported sales growth and 20% annual operating income growth.”

Business Outlook

Guidance Summary
Q1  2018 Sales$26.0mm - $26.6mm
  (Midpoint: +9% reported, +4% organic) 
Q1  2018 Gross Margin71.5%
Q1  2018 Operating Income$5.0mm - $5.6mm
(Midpoint: +25%)
Q1 2018 Earnings Per Diluted Share$0.19 - $0.21
(Midpoint: +21%)
2018 Sales$110.0mm - $111.6mm
(Midpoint: +10% reported, +7% organic)
2018 Gross Margin71.5%
2018 Operating Income$25.4mm - $26.6mm
(Midpoint: +23%)
2018 Earnings Per Diluted Share$0.96 - $1.00
(Midpoint: +14%)

Quarterly Dividend

On February 15, 2018, the Company's Board of Directors approved an increased quarterly dividend of $0.07/share of common stock. The dividend will be paid April 5, 2018 to shareholders of record on March 22, 2018.

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 9114999. 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 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 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 2018 and 2018 sales, gross margin, operating income and earnings per share. 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 of significant fluctuations in our quarterly and annual results due to numerous factors; 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; 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 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, 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.

CONTACT: J.J. Pellegrino, CFO
LeMaitre Vascular
781-425-1691
[email protected]

       
LEMAITRE VASCULAR, INC (NASDAQ: LMAT)     
CONDENSED CONSOLIDATED BALANCE SHEETS      
(amounts in thousands)     
       
       
   December 31, 2017 December 31, 2016 
   (unaudited)   
Assets     
       
Current assets:     
 Cash and cash equivalents $  19,096  $  24,288  
 Short-term marketable securities    22,564   -  
 Accounts receivable, net    15,000     13,191  
 Inventory and other deferred costs    21,046     19,578  
 Prepaid expenses and other current assets    2,605     1,970  
Total current assets    80,311     59,027  
       
Property and equipment, net    12,378     8,012  
Goodwill    23,844     23,426  
Other intangibles, net    8,234     9,897  
Deferred tax assets    1,378     1,399  
Other assets    178     163  
       
Total assets $  126,323  $  101,924  
       
       
Liabilities and stockholders' equity     
       
Current liabilities:     
 Accounts payable $  1,543  $  1,217  
 Accrued expenses    9,770     8,804  
 Acquisition-related obligations     1,876     461  
Total current liabilities    13,189     10,482  
       
Deferred tax liabilities    2,176     1,941  
Other long-term liabilities    1,188     2,001  
Total liabilities    16,553     14,424  
       
Stockholders' equity     
 Common stock    207     200  
 Additional paid-in capital    93,127     85,378  
 Retained earnings     28,333     15,335  
 Accumulated other comprehensive loss    (2,289)    (4,583) 
 Treasury stock    (9,608)    (8,830) 
Total stockholders' equity    109,770     87,500  
       
Total liabilities and stockholders' equity $  126,323  $  101,924  
       

 

          
 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, 2017 December 31, 2016 December 31, 2017 December 31, 2016 
          
Net sales$  26,153 $  23,288  $  100,867 $  89,151  
Cost of sales   7,901    7,094     30,170    26,215  
          
Gross profit   18,252    16,194     70,697    62,936  
          
Operating expenses:        
 Sales and marketing   6,194    6,753     25,948    26,105  
 General and administrative   4,153    4,011     17,010    14,354  
 Research and development   1,583    1,521     6,636    6,141  
          
Total operating expenses   11,930    12,285     49,594    46,600  
          
Income from operations   6,322    3,909     21,103    16,336  
          
Other income:        
 Other income (loss), net   6    (75)    3    (94) 
          
Income before income taxes   6,328    3,834     21,106    16,242  
          
Provision for income taxes   2,044    1,237     3,929    5,652  
          
Net income $  4,284 $  2,597  $  17,177 $  10,590  
          
Earnings per share of common stock        
 Basic$  0.22 $  0.14  $  0.91 $  0.57  
 Diluted$  0.21 $  0.13  $  0.86 $  0.55  
          
Weighted - average shares outstanding:        
 Basic   19,264    18,585     18,961    18,485  
 Diluted   20,191    19,558     20,033    19,241  
          
          
Cash dividends declared per common share $  0.055 $  0.045  $  0.220 $  0.180  
          

 

                  
 LEMAITRE VASCULAR, INC (NASDAQ: LMAT)             
 SELECTED NET SALES INFORMATION               
 (amounts in thousands)                
 (unaudited)                
                  
                  
  For the three months ended  For the year ended  
  December 31, 2017 December 31, 2016 December 31, 2017 December 31, 2016 
  $ % $ % $ % $ % 
Net Sales by Geography                
 Americas$  16,186 62% $  14,116 61% $  62,696 62% $  53,710 60% 
 Europe/Middle East/Africa   8,856 34%    7,278 31%    32,516 32%    29,531 33% 
 Asia/Pacific Rim   1,111 4%    1,894 8%    5,655 6%    5,910 7% 
Total Net Sales$  26,153 100% $  23,288 100% $  100,867 100% $  89,151 100% 
                  

 

            
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, 2017         
  Net sales as reported $  26,153        
  Impact of currency exchange rate fluctuations    (705)       
  Net impact of acquisitions excluding currency    (530)       
    Adjusted net sales   $  24,918      
            
 For the three months ended December 31, 2016         
  Net sales as reported $  23,288        
  Net impact of divestitures excluding currency  -        
    Adjusted net sales   $  23,288      
            
   Adjusted net sales increase for the three months ended December 31, 2017  $  1,630   7%   
            
            
Reconciliation between GAAP and Non-GAAP sales growth:         
 For the year ended December 31, 2017         
  Net sales as reported $  100,867        
  Impact of currency exchange rate fluctuations    (415)       
  Net impact of acquisitions excluding currency    (5,186)       
    Adjusted net sales   $  95,266      
            
 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   $  6,115   7%   
            
Reconciliation between GAAP and Non-GAAP sales growth:         
 For the three months ended March 31, 2018         
  Net sales per guidance $  26,348        
  Impact of currency exchange rate fluctuations    (1,220)       
  Net impact of acquisitions excluding currency  -        
    Adjusted net sales   $  25,128      
            
 For the three months ended March 31, 2017         
  Net sales as reported $  24,139        
  Net impact of divestitures excluding currency  -        
    Adjusted net sales   $  24,139      
            
   Adjusted net sales increase for the three months ended March 31, 2018  $  989   4%   
            
            
Reconciliation between GAAP and Non-GAAP sales growth:         
 For the year ended December 31, 2018         
  Net sales per guidance $  110,800        
  Impact of currency exchange rate fluctuations    (3,258)       
  Net impact of acquisitions excluding currency  -        
    Adjusted net sales   $  107,542      
            
 For the year ended December 31, 2017         
  Net sales as reported $  100,867        
  Net impact of divestitures excluding currency  -        
    Adjusted net sales   $  100,867      
            
   Adjusted net sales increase for the year ended December 31, 2018   $  6,675   7%   
            
            
            
    For the three months ended For the year ended 
    December 31, 2017 December 31, 2016 December 31, 2017 December 31, 2016 
Reconciliation between GAAP and Non-GAAP EBITDA         
 Net income as reported $  4,284  $  2,597  $  17,177  $  10,590  
 Interest (income) expense, net    (58)    (12)    (158)    (67) 
 Amortization and depreciation expense    1,088     933     4,055     3,591  
 Provision for income taxes    2,044     1,237     3,929     5,652  
            
 EBITDA $  7,358  $  4,755  $  25,003  $  19,766  
            
 EBITDA percentage increase    55%    26%