LeMaitre Q3 2016 Record Sales $23.2 mm (+22%), Record Op. Income $5.3 mm (+61%)
October 26 2016 - 4:05PM
LeMaitre Vascular, Inc. (Nasdaq:LMAT), a provider of vascular
devices, today reported Q3 2016 results, provided increased
guidance, and announced a $0.045/share dividend.
Q3 2016 Results
- Record sales of $23.2mm, +22% vs. Q3 2015
- Record operating income of $5.3mm vs. $3.3mm,
+61%
- Record net income of $3.2mm vs. $2.1mm, +54%
- Record earnings of $0.17 per diluted share vs. $0.11,
+48%
- Record EBITDA of $6.1mm vs $4.0mm, +55%
- Cash & equivalents up $5.3mm during the quarter to
$34.7mm
Q3 2016 sales of $23.2mm increased 22% (+20% organic) vs.
Q3 2015. XenoSure and valvulotomes led growth.
International sales and The Americas sales both increased 22%.
Gross margin improved to 73.3% in Q3 2016 from 71.0% in Q3 2015
largely due to XenoSure and other production efficiencies, improved
product mix, and average selling price increases.
Operating expenses in Q3 2016 were $11.7mm, a 15% increase
vs. the year-earlier quarter. The Company ended the quarter with 91
sales reps vs. 82 at the end of Q3 2015.
George W. LeMaitre, Chairman and CEO said, “Sales increased 22%
in Q3, while operating profits were up 61%. We continue to
pursue 10% annual sales growth and 20% annual profit growth.”
Business Outlook
The Company is providing Q4 2016 guidance and raising full-year
2016 guidance as summarized below:
Guidance Summary |
|
Previous (7/27/2016 ) |
Current |
Q4 2016 Sales |
N/A |
$23.1mm(+13% reported, +13% organic) |
Q4 2016 Gross Margin |
N/A |
|
73.0 |
% |
Q4 2016 Operating Income |
N/A |
$4.7mm(+52%, 20% op. margin) |
2016 Sales |
$88.3mm(+13% reported, +12% organic) |
$89.0mm(+14% reported, +12% organic) |
2016 Gross Margin |
|
70.5 |
% |
|
71.5 |
% |
2016 Operating Income |
$15.9mm(+38%, 18% op. margin) |
$17.1mm(+49%, 19% op. margin) |
Baxter Vascu-Guard Safety Alert
On June 24, 2016, Baxter Healthcare Corporation (Baxter) issued
a safety alert requesting that hospitals discontinue and quarantine
the use of certain lots of its Vascu-Guard peripheral vascular
patches. On August 11, 2016 Baxter began releasing newly
manufactured lots to fulfill orders while continuing their
investigation related to the safety alert. During Q3 2016,
LeMaitre Vascular recorded approximately $1.4mm in incremental
XenoSure patch sales related to the Baxter issue. The Company
expects to retain approximately $500,000 of the increased patch
sales in Q4 2016.
Quarterly Dividend
On October 24, 2016, the Company's Board of Directors
approved a quarterly dividend of $0.045/share of common stock.
The dividend will be paid December 5, 2016 to
shareholders of record on November 21, 2016.
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 3268033. 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
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
Q4 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 a recall of our products could result in significant
costs or negative publicity; 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 events.
|
|
|
|
|
|
|
LEMAITRE VASCULAR, INC (NASDAQ: LMAT) |
|
CONDENSED CONSOLIDATED BALANCE
SHEETS |
|
(amounts
in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September 30, 2016 |
|
December 31, 2015 |
|
|
|
|
(unaudited) |
|
|
|
Assets |
|
|
|
|
|
|
|
|
|
|
|
|
Current
assets: |
|
|
|
|
|
|
Cash and
cash equivalents |
|
$ |
34,650 |
|
|
$ |
27,451 |
|
|
|
Accounts
receivable, net |
|
|
12,176 |
|
|
|
11,971 |
|
|
|
Inventory |
|
|
17,430 |
|
|
|
15,205 |
|
|
|
Prepaid
expenses and other current assets |
|
|
3,979 |
|
|
|
3,557 |
|
|
Total
current assets |
|
|
68,235 |
|
|
|
58,184 |
|
|
|
|
|
|
|
|
|
Property
and equipment, net |
|
|
7,490 |
|
|
|
7,022 |
|
|
Goodwill |
|
|
18,206 |
|
|
|
17,789 |
|
|
Other
intangibles, net |
|
|
5,872 |
|
|
|
6,336 |
|
|
Deferred
tax assets |
|
|
1,327 |
|
|
|
1,205 |
|
|
Other
assets |
|
|
176 |
|
|
|
168 |
|
|
|
|
|
|
|
|
|
Total
assets |
|
$ |
101,306 |
|
|
$ |
90,704 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities
and stockholders' equity |
|
|
|
|
|
|
|
|
|
|
|
|
Current
liabilities: |
|
|
|
|
|
|
Accounts
payable |
|
$ |
1,148 |
|
|
$ |
1,366 |
|
|
|
Accrued
expenses |
|
|
10,308 |
|
|
|
8,837 |
|
|
|
Acquisition-related obligations |
|
|
608 |
|
|
|
165 |
|
|
Total
current liabilities |
|
|
12,064 |
|
|
|
10,368 |
|
|
|
|
|
|
|
|
|
Deferred
tax liabilities |
|
|
1,680 |
|
|
|
1,678 |
|
|
Other
long-term liabilities |
|
|
872 |
|
|
|
774 |
|
|
Total
liabilities |
|
|
14,616 |
|
|
|
12,820 |
|
|
|
|
|
|
|
|
|
Stockholders' equity |
|
|
|
|
|
|
Common
stock |
|
|
200 |
|
|
|
197 |
|
|
|
Additional paid-in capital |
|
|
84,837 |
|
|
|
82,094 |
|
|
|
Retained
earnings |
|
|
13,568 |
|
|
|
8,161 |
|
|
|
Accumulated other comprehensive loss |
|
|
(3,213 |
) |
|
|
(4,049 |
) |
|
|
Treasury
stock |
|
|
(8,702 |
) |
|
|
(8,519 |
) |
|
Total
stockholders' equity |
|
|
86,690 |
|
|
|
77,884 |
|
|
|
|
|
|
|
|
|
Total
liabilities and stockholders' equity |
|
$ |
101,306 |
|
|
$ |
90,704 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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, 2016 |
|
September 30, 2015 |
|
September 30, 2016 |
|
September 30, 2015 |
|
|
|
|
|
|
|
|
|
|
|
Net
sales |
$ |
23,216 |
|
|
$ |
19,025 |
|
|
$ |
65,863 |
|
|
$ |
57,869 |
|
|
Cost of
sales |
|
6,197 |
|
|
|
5,509 |
|
|
|
19,121 |
|
|
|
18,106 |
|
|
|
|
|
|
|
|
|
|
|
|
Gross
profit |
|
17,019 |
|
|
|
13,516 |
|
|
|
46,742 |
|
|
|
39,763 |
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses: |
|
|
|
|
|
|
|
|
|
Sales and
marketing |
|
6,541 |
|
|
|
5,489 |
|
|
|
19,353 |
|
|
|
16,866 |
|
|
|
General and
administrative |
|
3,595 |
|
|
|
3,455 |
|
|
|
10,343 |
|
|
|
10,375 |
|
|
|
Research and
development |
|
1,539 |
|
|
|
1,421 |
|
|
|
4,619 |
|
|
|
3,904 |
|
|
|
Gain on
Divestiture |
|
- |
|
|
|
(360 |
) |
|
|
|
|
(360 |
) |
|
|
Medical device excise
tax |
|
- |
|
|
|
190 |
|
|
|
- |
|
|
|
554 |
|
|
|
|
|
|
|
|
|
|
|
|
Total
operating expenses |
|
11,675 |
|
|
|
10,195 |
|
|
|
34,315 |
|
|
|
31,339 |
|
|
|
|
|
|
|
|
|
|
|
|
Income from
operations |
|
5,344 |
|
|
|
3,321 |
|
|
|
12,427 |
|
|
|
8,424 |
|
|
|
|
|
|
|
|
|
|
|
|
Other
income: |
|
|
|
|
|
|
|
|
|
Other income (loss),
net |
|
(37 |
) |
|
|
(182 |
) |
|
|
(19 |
) |
|
|
(135 |
) |
|
|
|
|
|
|
|
|
|
|
|
Income
before income taxes |
|
5,307 |
|
|
|
3,139 |
|
|
|
12,408 |
|
|
|
8,289 |
|
|
|
|
|
|
|
|
|
|
|
|
Provision
for income taxes |
|
2,078 |
|
|
|
1,047 |
|
|
|
4,415 |
|
|
|
3,061 |
|
|
|
|
|
|
|
|
|
|
|
|
Net
income |
$ |
3,229 |
|
|
$ |
2,092 |
|
|
$ |
7,993 |
|
|
$ |
5,228 |
|
|
|
|
|
|
|
|
|
|
|
|
Earnings
per share of common stock |
|
|
|
|
|
|
|
|
|
Basic |
$ |
0.17 |
|
|
$ |
0.12 |
|
|
$ |
0.43 |
|
|
$ |
0.30 |
|
|
|
Diluted |
$ |
0.17 |
|
|
$ |
0.11 |
|
|
$ |
0.42 |
|
|
$ |
0.29 |
|
|
|
|
|
|
|
|
|
|
|
|
Weighted -
average shares outstanding: |
|
|
|
|
|
|
|
|
|
Basic |
|
18,524 |
|
|
|
17,865 |
|
|
|
18,423 |
|
|
|
17,625 |
|
|
|
Diluted |
|
19,248 |
|
|
|
18,497 |
|
|
|
19,103 |
|
|
|
18,136 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash
dividends declared per common share |
$ |
0.045 |
|
|
$ |
0.040 |
|
|
$ |
0.135 |
|
|
$ |
0.120 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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, 2016 |
|
September 30, 2015 |
|
September 30, 2016 |
|
September 30, 2015 |
|
|
|
$ |
|
% |
|
$ |
|
% |
|
$ |
|
% |
|
$ |
|
% |
|
Net
Sales by Geography |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Americas |
$ |
14,528 |
|
|
|
63 |
% |
|
$ |
11,916 |
|
|
|
63 |
% |
|
$ |
39,594 |
|
|
|
60 |
% |
|
$ |
35,870 |
|
|
|
62 |
% |
|
|
International |
|
8,688 |
|
|
|
37 |
% |
|
|
7,109 |
|
|
|
37 |
% |
|
|
26,269 |
|
|
|
40 |
% |
|
|
21,999 |
|
|
|
38 |
% |
|
Total Net Sales |
$ |
23,216 |
|
|
|
100 |
% |
|
$ |
19,025 |
|
|
|
100 |
% |
|
$ |
65,863 |
|
|
|
100 |
% |
|
$ |
57,869 |
|
|
|
100 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LEMAITRE VASCULAR, INC (NASDAQ: LMAT) |
|
SELECTED NET SALES INFORMATION |
|
(amounts
in thousands) |
|
|
|
For the nine months
ended |
|
|
|
|
|
(unaudited) |
|
|
|
September 30, 2016 |
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
|
% |
|
|
|
|
|
Net
Sales by Product Category |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Biologics |
|
|
|
|
|
|
|
|
$ |
17,270 |
|
|
|
26 |
% |
|
|
|
|
|
|
Non-biologics |
|
|
|
|
|
|
|
|
|
48,593 |
|
|
|
74 |
% |
|
|
|
|
|
Total Net Sales |
|
|
|
|
|
|
|
|
$ |
65,863 |
|
|
|
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 ending September 30, 2016 |
|
|
|
|
|
|
|
|
|
|
|
Net sales as
reported |
|
$ |
23,216 |
|
|
|
|
|
|
|
|
|
|
Impact of currency
exchange rate fluctuations |
|
|
(71 |
) |
|
|
|
|
|
|
|
|
|
Net impact of
acquisitions excluding currency |
|
|
(336 |
) |
|
|
|
|
|
|
|
|
|
Adjusted
net sales |
|
|
|
$ |
22,809 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the
three months ending September 30, 2015 |
|
|
|
|
|
|
|
|
|
|
|
Net sales as
reported |
|
$ |
19,025 |
|
|
|
|
|
|
|
|
|
|
Net impact of
divestitures excluding currency |
|
|
(15 |
) |
|
|
|
|
|
|
|
|
|
Adjusted
net sales |
|
|
|
$ |
19,010 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
net sales increase for the three months ending September 30,
2016 |
|
$ |
3,799 |
|
|
|
20 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation between GAAP and Non-GAAP sales growth: |
|
|
|
|
|
|
|
|
|
|
For the
three months ending December 31, 2016 |
|
|
|
|
|
|
|
|
|
|
|
Net sales per
guidance |
|
$ |
23,100 |
|
|
|
|
|
|
|
|
|
|
Impact of currency
exchange rate fluctuations |
|
|
133 |
|
|
|
|
|
|
|
|
|
|
Net impact of
acquisitions excluding currency |
|
|
(330 |
) |
|
|
|
|
|
|
|
|
|
Adjusted
net sales |
|
|
|
$ |
22,903 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the
three months ending December 31, 2015 |
|
|
|
|
|
|
|
|
|
|
|
Net sales as
reported |
|
$ |
20,483 |
|
|
|
|
|
|
|
|
|
|
Net impact of
divestitures excluding currency |
|
|
(136 |
) |
|
|
|
|
|
|
|
|
|
Adjusted
net sales |
|
|
|
$ |
20,347 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
net sales increase for the three months ending December 31,
2016 |
|
$ |
2,556 |
|
|
|
13 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation between GAAP and Non-GAAP sales growth: |
|
|
|
|
|
|
|
|
|
|
For the
year ending December 31, 2016 |
|
|
|
|
|
|
|
|
|
|
|
Net sales per
guidance |
|
$ |
88,965 |
|
|
|
|
|
|
|
|
|
|
Impact of currency
exchange rate fluctuations |
|
|
167 |
|
|
|
|
|
|
|
|
|
|
Net impact of
acquisitions excluding currency |
|
|
(1,243 |
) |
|
|
|
|
|
|
|
|
|
Adjusted
net sales |
|
|
|
$ |
87,889 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the
year ending December 31, 2015 |
|
|
|
|
|
|
|
|
|
|
|
Net sales as
reported |
|
$ |
78,352 |
|
|
|
|
|
|
|
|
|
|
Net impact of
divestitures excluding currency |
|
|
(153 |
) |
|
|
|
|
|
|
|
|
|
Adjusted
net sales |
|
|
|
$ |
78,199 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
net sales increase for the year ending December 31, 2016 |
|
|
$ |
9,690 |
|
|
|
12 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the three months ended |
|
For the nine months ended |
|
|
|
|
|
September 30, 2016 |
|
September 30, 2015 |
|
September 30, 2016 |
|
September 30, 2015 |
|
Reconciliation between GAAP and Non-GAAP EBITDA |
|
|
|
|
|
|
|
|
|
|
Net income
as reported |
|
$ |
3,229 |
|
|
$ |
2,092 |
|
|
$ |
7,993 |
|
|
$ |
5,228 |
|
|
|
Interest
(income) expense, net |
|
|
(24 |
) |
|
|
(3 |
) |
|
|
(55 |
) |
|
|
(7 |
) |
|
|
Amortization and depreciation expense |
|
|
846 |
|
|
|
825 |
|
|
|
2,658 |
|
|
|
2,497 |
|
|
|
Provision
for income taxes |
|
|
2,078 |
|
|
|
1,047 |
|
|
|
4,415 |
|
|
|
3,061 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA |
|
$ |
6,129 |
|
|
$ |
3,961 |
|
|
$ |
15,011 |
|
|
$ |
10,779 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA
percentage increase |
|
|
|
|
55 |
% |
|
|
|
|
39 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
CONTACT:
J.J. Pellegrino, CFO
LeMaitre Vascular
781-425-1691
jjpellegrino@lemaitre.com
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