LeMaitre Vascular, Inc. (Nasdaq:LMAT), a provider of vascular
devices, implants and services, today reported Q4 2016 results,
provided guidance, and announced a 22% dividend increase
to $0.055/share.
Q4 2016 Results
- Record sales of $23.3mm, +14% vs. Q4 2015
- Operating income of $3.9mm vs. $3.1mm, +27%
- Net income of $2.6mm vs. $2.5mm, +3%
- Earnings of $0.13 per diluted share vs. $0.13
- EBITDA of $4.8mm vs. $4.0mm, +18%
Q4 2016 sales of $23.3mm increased 14% (+11% organic) vs.
Q4 2015. XenoSure and AnastoClip led growth. Sales in
the Americas were up 17% while international sales increased
9%.
Gross margin decreased to 69.5% in Q4 2016 from 70.3% in Q4 2015
primarily due to product and geographic mix.
Operating expenses in Q4 2016 were $12.3mm, a 9% increase
vs. the year-earlier quarter. The Company ended the quarter with 96
sales reps vs. 86 at the end of Q4 2015.
Full Year 2016 Results
- Sales of $89.2mm, +14% reported (+12% organic) vs. 2015
- Operating income of $16.3mm vs. $11.5mm, +42%
- Net income of $10.6mm vs. $7.8mm, +37%
- EPS of $0.55 per diluted share vs. $0.42, +30%
- Dividends paid of $0.18 per share vs $0.16, +13%
- EBITDA of $19.8mm vs. $14.8mm, +34%
George W. LeMaitre, Chairman and CEO said, “Sales increased 14%
in 2016, while operating income was up 42%. We continue to
pursue 10% annual reported sales growth and 20% annual operating
income growth.”
Business Outlook
Guidance Summary |
Q1 2017 Sales |
$23.5mm (+16% reported, +12% organic) |
Q1 2017 Gross Margin |
71.0 |
% |
Q1 2017 Operating Income |
$3.9mm (+18%, 17% op. margin) |
2017 Sales |
$99.0mm (+11% reported, +9% organic) |
2017 Gross Margin |
71.5 |
% |
2017 Operating Income |
$20.0mm (+22%, 20% op. margin) |
Acquisition of Restore Flow Allografts
On November 10, 2016, the Company acquired the assets of Restore
Flow Allografts, LLC for $14.0 million, of which $12.0 million was
paid at closing and $2.0 million is expected to be paid in May
2018. Additional earnout payments may be paid through 2018
based on performance.
Restore Flow derives revenue from human tissue preservation
services, in particular the cryopreservation of peripheral vascular
veins and arteries. Prior to the acquisition, last twelve
months’ revenue for Restore Flow was $3.7mm, all within the United
States. Last twelve months’ operating income for Restore Flow
was approximately break-even.
Quarterly Dividend
On February 16, 2017, the Company's Board of Directors
approved an increased quarterly dividend of $0.055/share of
common stock. The dividend will be paid April 6, 2017 to
shareholders of record on March 22, 2017.
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 66556990. 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 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
Q1 2017 and 2017 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 services and the productivity of the
Company's direct sales force and distributors may not be correct;
risks related to the integration of acquisition targets; the risk
that a recall of our products and other offerings could result in
significant costs or negative publicity; risks related to product
and service demand and market acceptance of the Company's products,
services and pricing; 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) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2016 |
|
December 31, 2015 |
|
|
|
(unaudited) |
|
|
Assets |
|
|
|
|
|
|
|
|
|
|
Current
assets: |
|
|
|
|
|
Cash and cash
equivalents |
|
$ |
24,288 |
|
|
$ |
27,451 |
|
|
Accounts receivable,
net |
|
|
13,191 |
|
|
|
11,971 |
|
|
Inventory and other
deferred costs |
|
|
19,578 |
|
|
|
15,205 |
|
|
Prepaid expenses and
other current assets |
|
|
1,970 |
|
|
|
3,557 |
|
Total
current assets |
|
|
59,027 |
|
|
|
58,184 |
|
|
|
|
|
|
|
Property
and equipment, net |
|
|
8,012 |
|
|
|
7,022 |
|
Goodwill |
|
|
23,426 |
|
|
|
17,789 |
|
Other
intangibles, net |
|
|
9,897 |
|
|
|
6,336 |
|
Deferred
tax assets |
|
|
1,399 |
|
|
|
1,205 |
|
Other
assets |
|
|
163 |
|
|
|
168 |
|
|
|
|
|
|
|
Total
assets |
|
$ |
101,924 |
|
|
$ |
90,704 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities
and stockholders' equity |
|
|
|
|
|
|
|
|
|
|
Current
liabilities: |
|
|
|
|
|
Accounts payable |
|
$ |
1,217 |
|
|
$ |
1,366 |
|
|
Accrued expenses |
|
|
8,804 |
|
|
|
8,837 |
|
|
Acquisition-related
obligations |
|
|
461 |
|
|
|
165 |
|
Total
current liabilities |
|
|
10,482 |
|
|
|
10,368 |
|
|
|
|
|
|
|
Deferred
tax liabilities |
|
|
1,941 |
|
|
|
1,678 |
|
Other
long-term liabilities |
|
|
2,001 |
|
|
|
774 |
|
Total
liabilities |
|
|
14,424 |
|
|
|
12,820 |
|
|
|
|
|
|
|
Stockholders' equity |
|
|
|
|
|
Common stock |
|
|
200 |
|
|
|
197 |
|
|
Additional paid-in
capital |
|
|
85,378 |
|
|
|
82,094 |
|
|
Retained
earnings |
|
|
15,335 |
|
|
|
8,161 |
|
|
Accumulated other
comprehensive loss |
|
|
(4,583 |
) |
|
|
(4,049 |
) |
|
Treasury stock |
|
|
(8,830 |
) |
|
|
(8,519 |
) |
Total
stockholders' equity |
|
|
87,500 |
|
|
|
77,884 |
|
|
|
|
|
|
|
Total
liabilities and stockholders' equity |
|
$ |
101,924 |
|
|
$ |
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 year ended |
|
|
|
December 31, 2016 |
|
December 31, 2015 |
|
December 31, 2016 |
|
December 31, 2015 |
|
|
|
|
|
|
|
|
|
|
|
Net
sales |
$ |
23,288 |
|
|
$ |
20,483 |
|
|
$ |
89,151 |
|
|
$ |
78,352 |
|
|
Cost of
sales |
|
7,094 |
|
|
|
6,080 |
|
|
|
26,215 |
|
|
|
24,186 |
|
|
|
|
|
|
|
|
|
|
|
|
Gross
profit |
|
16,194 |
|
|
|
14,403 |
|
|
|
62,936 |
|
|
|
54,166 |
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses: |
|
|
|
|
|
|
|
|
|
Sales and
marketing |
|
6,753 |
|
|
|
5,914 |
|
|
|
26,105 |
|
|
|
22,780 |
|
|
|
General and
administrative |
|
4,011 |
|
|
|
3,635 |
|
|
|
14,354 |
|
|
|
14,010 |
|
|
|
Research and
development |
|
1,521 |
|
|
|
1,575 |
|
|
|
6,141 |
|
|
|
5,479 |
|
|
|
Gain on
divestiture |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(360 |
) |
|
|
Medical device excise
tax |
|
- |
|
|
|
190 |
|
|
|
- |
|
|
|
744 |
|
|
|
|
|
|
|
|
|
|
|
|
Total
operating expenses |
|
12,285 |
|
|
|
11,314 |
|
|
|
46,600 |
|
|
|
42,653 |
|
|
|
|
|
|
|
|
|
|
|
|
Income from
operations |
|
3,909 |
|
|
|
3,089 |
|
|
|
16,336 |
|
|
|
11,513 |
|
|
|
|
|
|
|
|
|
|
|
|
Other
income: |
|
|
|
|
|
|
|
|
|
Other income (loss),
net |
|
(75 |
) |
|
|
46 |
|
|
|
(94 |
) |
|
|
(89 |
) |
|
|
|
|
|
|
|
|
|
|
|
Income
before income taxes |
|
3,834 |
|
|
|
3,135 |
|
|
|
16,242 |
|
|
|
11,424 |
|
|
|
|
|
|
|
|
|
|
|
|
Provision
for income taxes |
|
1,237 |
|
|
|
605 |
|
|
|
5,652 |
|
|
|
3,666 |
|
|
|
|
|
|
|
|
|
|
|
|
Net
income |
$ |
2,597 |
|
|
$ |
2,530 |
|
|
$ |
10,590 |
|
|
$ |
7,758 |
|
|
|
|
|
|
|
|
|
|
|
|
Earnings
per share of common stock |
|
|
|
|
|
|
|
|
|
Basic |
$ |
0.14 |
|
|
$ |
0.14 |
|
|
$ |
0.57 |
|
|
$ |
0.44 |
|
|
|
Diluted |
$ |
0.13 |
|
|
$ |
0.13 |
|
|
$ |
0.55 |
|
|
$ |
0.42 |
|
|
|
|
|
|
|
|
|
|
|
|
Weighted -
average shares outstanding: |
|
|
|
|
|
|
|
|
|
Basic |
|
18,585 |
|
|
|
18,175 |
|
|
|
18,485 |
|
|
|
17,764 |
|
|
|
Diluted |
|
19,558 |
|
|
|
18,781 |
|
|
|
19,241 |
|
|
|
18,316 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash
dividends declared per common share |
$ |
0.045 |
|
|
$ |
0.040 |
|
|
$ |
0.180 |
|
|
$ |
0.160 |
|
|
|
LEMAITRE VASCULAR, INC (NASDAQ: LMAT) |
|
|
|
|
|
|
|
|
|
|
|
|
|
SELECTED NET SALES INFORMATION |
|
|
|
|
|
|
|
|
|
|
|
|
|
(amounts in
thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the three months
ended |
|
For the year
ended |
|
|
December 31, 2016 |
|
December 31, 2015 |
|
December 31, 2016 |
|
December 31, 2015 |
|
|
$ |
|
% |
|
$ |
|
% |
|
$ |
|
% |
|
$ |
|
% |
Net
Sales by Geography |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Americas |
$ |
14,116 |
|
61 |
% |
|
$ |
12,105 |
|
59 |
% |
|
$ |
53,710 |
|
60 |
% |
|
$ |
47,975 |
|
61 |
% |
|
International |
|
9,172 |
|
39 |
% |
|
|
8,378 |
|
41 |
% |
|
|
35,441 |
|
40 |
% |
|
|
30,377 |
|
39 |
% |
Total Net Sales |
$ |
23,288 |
|
100 |
% |
|
$ |
20,483 |
|
100 |
% |
|
$ |
89,151 |
|
100 |
% |
|
$ |
78,352 |
|
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, 2016 |
|
|
|
|
|
|
|
|
|
|
Net sales as
reported |
|
$ |
23,288 |
|
|
|
|
|
|
|
|
|
Impact of currency
exchange rate fluctuations |
|
|
150 |
|
|
|
|
|
|
|
|
|
Net impact of
acquisitions excluding currency |
|
|
(770 |
) |
|
|
|
|
|
|
|
|
Adjusted net sales |
|
|
|
$ |
22,668 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the
three months ended December 31, 2015 |
|
|
|
|
|
|
|
|
|
|
Net sales as
reported |
|
$ |
20,483 |
|
|
|
|
|
|
|
|
|
Net impact of
divestitures excluding currency |
|
|
(7 |
) |
|
|
|
|
|
|
|
|
Adjusted net sales |
|
|
|
$ |
20,476 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted net sales increase for the three months ended
December 31, 2016 |
|
$ |
2,192 |
|
|
|
11 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation between GAAP and Non-GAAP sales growth: |
|
|
|
|
|
|
|
|
|
For the
year ended December 31, 2016 |
|
|
|
|
|
|
|
|
|
|
Net sales as
reported |
|
$ |
89,151 |
|
|
|
|
|
|
|
|
|
Impact of currency
exchange rate fluctuations |
|
|
177 |
|
|
|
|
|
|
|
|
|
Net impact of
acquisitions excluding currency |
|
|
(1,684 |
) |
|
|
|
|
|
|
|
|
Adjusted net sales |
|
|
|
$ |
87,644 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the
year ended December 31, 2015 |
|
|
|
|
|
|
|
|
|
|
Net sales as
reported |
|
$ |
78,352 |
|
|
|
|
|
|
|
|
|
Net impact of
divestitures excluding currency |
|
|
(30 |
) |
|
|
|
|
|
|
|
|
Adjusted net sales |
|
|
|
$ |
78,322 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted net sales increase for the year ended December 31,
2016 |
|
|
$ |
9,322 |
|
|
|
12 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation between GAAP and Non-GAAP sales growth: |
|
|
|
|
|
|
|
|
|
For the
three months ended March 31, 2017 |
|
|
|
|
|
|
|
|
|
|
Net sales per
guidance |
|
$ |
23,500 |
|
|
|
|
|
|
|
|
|
Impact of currency
exchange rate fluctuations |
|
|
332 |
|
|
|
|
|
|
|
|
|
Net impact of
acquisitions excluding currency |
|
|
(1,195 |
) |
|
|
|
|
|
|
|
|
Adjusted net sales |
|
|
|
$ |
22,637 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the
three months ended March 31, 2016 |
|
|
|
|
|
|
|
|
|
|
Net sales as
reported |
|
$ |
20,258 |
|
|
|
|
|
|
|
|
|
Net impact of
divestitures excluding currency |
|
|
- |
|
|
|
|
|
|
|
|
|
Adjusted net sales |
|
|
|
$ |
20,258 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted net sales increase for the three months ended March
31, 2017 |
|
$ |
2,379 |
|
|
|
12 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation between GAAP and Non-GAAP sales growth: |
|
|
|
|
|
|
|
|
|
For the
year ended December 31, 2017 |
|
|
|
|
|
|
|
|
|
|
Net sales per
guidance |
|
$ |
99,000 |
|
|
|
|
|
|
|
|
|
Impact of currency
exchange rate fluctuations |
|
|
1,605 |
|
|
|
|
|
|
|
|
|
Net impact of
acquisitions excluding currency |
|
|
(3,520 |
) |
|
|
|
|
|
|
|
|
Adjusted net sales |
|
|
|
$ |
97,085 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 |
|
|
$ |
7,934 |
|
|
|
9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the three months ended |
|
For the year ended |
|
|
|
|
December 31, 2016 |
|
December 31, 2015 |
|
December 31, 2016 |
|
December 31, 2015 |
Reconciliation between GAAP and Non-GAAP EBITDA |
|
|
|
|
|
|
|
|
|
Net income
as reported |
|
$ |
2,597 |
|
|
$ |
2,530 |
|
|
$ |
10,590 |
|
|
$ |
7,758 |
|
|
Interest
(income) expense, net |
|
|
(12 |
) |
|
|
(6 |
) |
|
|
(67 |
) |
|
|
(13 |
) |
|
Amortization and depreciation expense |
|
|
933 |
|
|
|
897 |
|
|
|
3,591 |
|
|
|
3,394 |
|
|
Provision
for income taxes |
|
|
1,237 |
|
|
|
605 |
|
|
|
5,652 |
|
|
|
3,666 |
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA |
|
$ |
4,755 |
|
|
$ |
4,026 |
|
|
$ |
19,766 |
|
|
$ |
14,805 |
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA
percentage increase |
|
|
|
|
18 |
% |
|
|
|
|
34 |
% |
|
|
|
|
|
|
|
|
|
|
|
CONTACT: J.J. Pellegrino, CFO
LeMaitre Vascular
781-425-1691
jjpellegrino@lemaitre.com
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