LeMaitre Vascular, Inc. (Nasdaq:LMAT), a provider of peripheral
vascular devices and implants, today announced Q4 and full year
2009 financial results. The Company posted record quarterly sales
of $13.6 million, operating income of $1.2 million and increased
cash of $1.7 million excluding share repurchases. The Company
also announced 2010 Q1 and full-year guidance.
Q4 2009 sales increased 12% versus Q4 2008, with Vascular sales
increasing 25% and Endovascular decreasing 10%. Vascular sales
benefitted from strong results across all product lines, the
inclusion of the XenoSure Biologic Patch, and the stronger Euro.
Endovascular sales were negatively impacted by decreases in TAArget
stent graft sales, partially offset by the stronger Euro.
Geographically, sales in the Americas increased 10%, while sales in
Europe and Japan grew 13% and 27%, respectively. On an organic
basis, Q4 2009 sales increased 4% versus the prior year.
Sales in 2009 were $50.9 million, a 4% increase over 2008. Sales
increased 11% in Vascular while sales decreased 7% in Endovascular.
Sales in the Americas increased 8% while international sales
were flat. On an organic basis versus the prior year, 2009 sales
increased 4% both in the Americas and internationally.
The Company reported a gross margin of 74.9% in Q4 2009, up from
69.6% in Q4 2008. The increase was driven by manufacturing
efficiencies, higher average selling prices, and the stronger Euro.
The full year 2009 gross margin was 73.3% versus 69.6% in 2008.
Q4 2009 operating profit was $1.2 million versus $354,000 in Q4
2008. Full year 2009 operating profit was $1.9 million versus
a $2.9 million operating loss in 2008. Sales growth and an
expanded gross margin drove improvements in both periods.
Net income in Q4 2009 was $1.3 million, or $0.08 per diluted
share, versus net income of $312,000 in Q4 2008, or $0.02 per
diluted share. Net income for 2009 was $1.6 million versus a
net loss of $3.3 million in 2008.
The Company's cash and marketable securities increased by $1.7
million (excluding $427,000 of share repurchases) during Q4 2009 to
$24.0 million at December 31, 2009. The increase was largely the
result of $1.3 million in net income, and $635,000 of depreciation,
amortization and stock-based compensation.
George W. LeMaitre, Chairman and CEO, said, "In Q4 the Company
continued to demonstrate an ability to grow sales and add to the
bottom line. Our 12% sales growth and expanded gross margin
enabled us to more than triple our profitability versus Q4 2008,
and I was happy to see our cash increase during the quarter.
Looking ahead, our Q1 2010 guidance indicates sales growth of about
17%, driven in part by our lower cost North American sales rep
model, which allows us more feet on the street."
Sales and marketing expenses increased 9% in Q4 2009 to $4.8
million, representing 35% of sales in Q4 2009 versus 36% in the
year-earlier quarter. The Company ended 2009 with 61 sales
representatives versus 52 at the end of 2008.
General and administrative expenses increased 6% in Q4 2009 to
$2.4 million. Increases were due to additional spending in Europe,
as well as changes in foreign exchange rates. General and
administrative expenditures represented 18% of sales in Q4 2009
versus 19% in the year-earlier quarter.
R&D expenses increased 32% to $1.7 million in Q4 2009, a
result of higher product development, regulatory and clinical
affairs spending. Research and development expenditures
represented 13% of sales in Q4 2009 versus 11% in the year earlier
quarter. During Q4 2009 the Company received approval to market its
AnastoClip GC Vessel Closure System in Europe. Also, in
January 2010 the Company received its AlboGraft Vascular Graft
510(k) from the USFDA.
Business Outlook
The Company expects 2010 sales of $55.0 million and operating
income of $4.5 million. The Company also expects Q1 2010 sales
of $13.3 million, and operating income of $750,000. Guidance
amounts exclude the effects of future acquisitions, foreign
exchange rate changes, distributor terminations and factory
consolidations.
Conference Call Reminder
Management will conduct a conference call at 5:00 p.m. EST today
to review the Company's financial results and discuss its business
outlook for 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 866-783-2146 (+1-857-350-1605 for international
callers), using passcode 90277372. For interested individuals
unable to join the live conference call, a replay will be available
on the Company's website.
About LeMaitre Vascular
LeMaitre Vascular is a provider of devices for the treatment of
peripheral vascular disease. The Company develops,
manufactures and markets disposable and implantable vascular
devices to address the needs of vascular surgeons. The Company's
devices are used to treat peripheral vascular disease, a condition
the Company believes affects at least 20 million people
worldwide.
Well-known to vascular surgeons, the Company's diversified
product portfolio consists of brand name devices used in arteries
and veins outside of the heart, including the Expandable LeMaitre
Valvulotome, Pruitt F3 Carotid Shunt, TAArget Thoracic Stent Graft,
UnBalloon Non-Occlusive Modeling catheter and AlboGraft Vascular
Graft.
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 and third
parties.
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 properly
understand the Company's short-term and long-term financial trends,
investors may wish to consider the impact of certain non-cash or
non-recurring items, when used as a supplement to financial
performance measures in accordance with GAAP. These items result
from facts and circumstances that vary in frequency and/or impact
on continuing operations. In addition, management uses results of
operations before such items to evaluate the operational
performance of the Company and as a basis for strategic planning.
Investors should consider these non-GAAP measures 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 addition, this press release includes sales growth after
adjusting for foreign exchange and distribution of the XenoSure
Biologic Patch. We refer to this as organic sales growth. The
Company analyzes net sales on a constant currency basis net of
acquisitions and other non-recurring events 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 and other strategic transactions are
episodic in nature and highly variable in sales impact, 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 both management and the Company's
investors. The Company commenced distribution of the XenoSure
Biologic Patch in Q1 2009.
Forward-Looking Statements
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, statements regarding the
Company's financial and operational guidance are forward-looking,
involving risks and uncertainties. The Company's current
quarterly and full year financial results, as discussed in this
release, are preliminary and unaudited, and subject to
adjustment. 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 predicted. These risks and uncertainties
include, but are not limited to, the risk that the Company does not
generate sufficient operating scale to maintain or increase
profitability; risks related to product demand and market
acceptance of the Company's products; the possibility that the
Company's new products may fail to provide the desired safety and
efficacy or may not be accepted by the market for other reasons;
risks related to the global economic recession; the significant
competition the Company faces from other companies, technologies,
and alternative medical procedures; the risk that the Company does
not realize the anticipated benefits of its strategic transactions;
the risk that the Company may fail to expand its product offerings
through internal development or acquisition; the general
uncertainty related to seeking regulatory approvals for the
Company's products; 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.
Financial Statements
LEMAITRE VASCULAR, INC. (Nasdaq:LMAT)
CONDENSED CONSOLIDATED BALANCE SHEETS
(amounts in thousands)
December 31, 2009
December 31, 2008
(unaudited)
Assets
Current assets:
Cash and cash equivalents
$ 23,192
$ 15,895
Marketable securities
808
5,359
Accounts receivable, net
7,778
7,244
Inventories
6,498
6,959
Other current assets
1,274
1,659
Total current assets
39,550
37,116
Property and equipment, net
2,101
2,327
Goodwill
11,022
11,022
Other intangibles, net
3,316
2,883
Other assets
917
1,051
Total assets
$ 56,906
$ 54,399
Liabilities and stockholders' equity
Current liabilities:
Accounts payable
$ 1,136
$ 606
Accrued expenses
5,412
5,543
Acquisition-related liabilities
--
784
Total current liabilities
6,548
6,933
Long term debt
188
78
Deferred tax liabilities
1,546
1,260
Other long-term liabilities
411
380
Total liabilities
8,693
8,651
Stockholders' equity
Common stock
159
157
Additional paid-in capital
63,475
62,290
Accumulated deficit
(14,596)
(16,194)
Accumulated other comprehensive gain (loss)
94
(272)
Less: treasury stock
(919)
(233)
Total stockholders' equity
48,213
45,748
Total liabilities and stockholders' equity
$ 56,906
$ 54,399
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, 2009
December 31, 2008
December 31, 2009
December 31, 2008
Net sales
$ 13,584
$ 12,111
$ 50,908
$ 48,720
Cost of sales
3,411
3,687
13,604
14,817
Gross profit
10,173
8,424
37,304
33,903
Operating expenses:
Sales and marketing
4,807
4,407
17,710
19,762
General and administrative
2,421
2,274
9,852
9,999
Research and development
1,716
1,301
5,910
5,328
Restructuring charges
--
4
1,777
1,147
Impairment charge
--
84
106
597
Total operating expenses
8,944
8,070
35,355
36,833
Income (loss) from operations
1,229
354
1,949
(2,930)
Other income:
Interest income, net
8
9
12
301
Other income (expense), net
75
(101)
254
(192)
Total other income, net
83
(92)
266
109
Income (loss) before income taxes
1,312
262
2,215
(2,821)
Provision (benefit) for income taxes
43
(50)
617
493
Net income (loss)
$ 1,269
$ 312
$ 1,598
$ (3,314)
Net income (loss) per share of common stock:
Basic
$ 0.08
$ 0.02
$ 0.10
$ (0.21)
Diluted
$ 0.08
$ 0.02
$ 0.10
$ (0.21)
Weighted average shares outstanding:
Basic
15,722
15,632
15,687
15,572
Diluted
16,066
15,921
15,916
15,572
LEMAITRE VASCULAR, INC. (Nasdaq:LMAT)
SELECTED NET SALES INFORMATION
(amounts in thousands)
(unaudited)
For the three months ended
December 31, 2009
December 31, 2008
$
%
$
%
Net Sales by Product Category:
Endovascular
$ 3,702
27%
$ 4,110
34%
Vascular
8,741
64%
6,973
58%
General Surgery
1,007
8%
1,002
8%
13,450
99%
12,085
100%
OEM
134
1%
26
0%
Total Net Sales
$ 13,584
100%
$ 12,111
100%
Net Sales by Geography
Americas
$ 7,704
57%
$ 6,973
58%
International
5,880
43%
5,138
42%
Total Net Sales
$ 13,584
100%
$ 12,111
100%
For the year ended
December 31, 2009
December 31, 2008
$
%
$
%
Net Sales by Product Category:
Endovascular
$ 14,782
29%
$ 15,946
33%
Vascular
31,846
63%
28,573
58%
General Surgery
3,836
7%
3,928
8%
50,464
99%
48,447
99%
OEM
444
1%
273
1%
Total Net Sales
$ 50,908
100%
$ 48,720
100%
Net Sales by Geography
Americas
$ 29,420
58%
$ 27,201
56%
International
21,488
42%
21,519
44%
Total Net Sales
$ 50,908
100%
$ 48,720
100%
LEMAITRE VASCULAR, INC. (Nasdaq:LMAT)
IMPACT OF FOREIGN CURRENCY AND BUSINESS ACTIVITIES
(amounts in thousands)
(unaudited)
2009
Q4
Q3
Q2
Q1
Total net sales
13,584
13,346
12,630
11,348
Impact of currency exchange rate fluctuations (1)
613
(215)
(699)
(622)
Net impact of acquisitions, distributed sales and
discontinued products, excluding currency
exchange rate fluctuations (2)
397
333
234
101
2008
Q4
Q3
Q2
Q1
Total net sales
12,111
12,023
12,739
11,847
Impact of currency exchange rate fluctuations (1)
(448)
452
836
674
Net impact of acquisitions, distributed sales and
discontinued products, excluding currency
exchange rate fluctuations (2)
235
703
929
1,133
(1) Represents the impact of the change in foreign exchange
rates compared to the corresponding quarter of the prior year
based on the weighted average exchange rate for each quarter.
(2) Represents the impact of sales of products of acquired
businesses and distributed sales of other manufacturers' products,
net of sales related to discontinued products and other activities,
based on 12 months' sales following the date of the event or
transaction, for the current period only.
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 December 31, 2009
Net sales as reported
$ 13,584
Impact of currency exchange rate fluctuations
(613)
Net impact of acquisitions, distributed sales and
discontinued products, excluding currency
(397)
Adjusted net sales
$ 12,574
For the three months ending December 31, 2008
Net Sales as reported
$ 12,111
Adjusted net sales increase for the three months ending
December 31, 2009
$ 463
4%
Reconciliation between GAAP and Non-GAAP sales growth for the
Americas:
For the year ending December 31, 2009
Net sales as reported
$ 29,420
Net impact of acquisitions, distributed sales and
discontinued products, excluding currency
(1,065)
Adjusted net sales
$ 28,355
For the year ending December 31, 2008
Net Sales as reported
$ 27,201
Adjusted net sales increase for the year ending December
31, 2009
$ 1,154
4%
Reconciliation between GAAP and Non-GAAP sales growth for
International:
For the year ending December 31, 2009
Net sales as reported
$ 21,488
Impact of currency exchange rate fluctuations
923
Adjusted net sales
$ 22,411
For the year ending December 31, 2008
Net Sales as reported
$ 21,519
Adjusted net sales increase for the year ending December
31, 2009
$ 892
4%
CONTACT: LeMaitre Vascular, Inc.
J.J. Pellegrino, Chief Financial Officer
781.221.2266 x106
jpellegrino@lemaitre.com
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