LeMaitre Q2 2017 Record Sales $25.8 mm (+15%), Record EPS $0.23 (+69%)
July 27 2017 - 4:05PM
LeMaitre Vascular, Inc. (Nasdaq:LMAT), a provider of vascular
devices, implants and services, today reported Q2 2017 results,
provided increased guidance, announced a $0.055/share dividend and
authorized a $7.5mm share repurchase program.
Q2 2017 Results
- Record sales of $25.8mm, +15% vs. Q2 2016
- Record operating income of $5.5mm, +46%
- Record net income of $4.6mm, +78%
- Record earnings per diluted share of $0.23, +69%
- Record EBITDA of $6.4mm, +35%
- Cash & equivalents up $4.3mm during the quarter to
$30.1mm
Q2 2017 sales of $25.8mm increased 15% (+10% organic) vs.
Q2 2016. Biologic patches and grafts led growth. Sales
in the Americas were up 22% while international sales increased
5%.
Gross margin decreased to 68.0% in Q2 2017 from 68.6% in Q2
2016, primarily due to the addition of recently-acquired products,
as well as manufacturing inefficiencies.
Operating expenses in Q2 2017 were $12.0mm, a 3% increase
vs. the year-earlier quarter, driven by acquisition-related
costs.
George W. LeMaitre, Chairman and CEO said, “We continue to
pursue 10% annual reported sales growth and 20% annual operating
income growth.”
Business Outlook
|
|
Previous Guidance (4/26/2017) |
Current Guidance |
Q3 2017 Sales |
|
N/A |
$25.4mm (+10% reported, +3% organic) |
Q3 2017 Gross Margin |
|
N/A |
70.0% |
Q3 2017 Operating Income |
|
N/A |
$5.1mm (-5%) |
Q3 2017 Earnings Per Diluted Share |
|
N/A |
$0.20 (+20%) |
2017 Sales |
|
$100.5mm (+13% reported, +9% organic) |
$101.9mm (+14% reported, +8% organic) |
2017 Gross Margin |
|
71.5% |
70.0% |
2017 Operating Income |
|
$20.0mm (+22%) |
$21.1mm (+29%) |
2017 Earnings Per Diluted Share |
|
$0.70 (+27%) |
$0.79 (+44%) |
Quarterly Dividend
On July 25, 2017, the Company's Board of Directors approved
a quarterly dividend of $0.055/share of common stock. The
dividend will be paid September 7, 2017 to shareholders
of record on August 23, 2017.
Share Repurchase Program
On July 25, 2017, the Company's Board of Directors authorized
the repurchase of up to $7.5mm of the Company’s common stock on the
open market or in privately negotiated transactions using available
cash. The repurchase program may be suspended or discontinued
at any time and will conclude on July 25, 2018, unless extended by
the Board.
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 54505762. 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
Q3 2017 and 2017 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 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; 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) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30, 2017 |
|
December 31, 2016 |
|
|
(unaudited) |
|
|
Assets |
|
|
|
|
|
|
|
|
|
Current assets: |
|
|
|
|
Cash and
cash equivalents |
|
$ |
30,120 |
|
|
$ |
24,288 |
|
Accounts
receivable, net |
|
|
14,590 |
|
|
|
13,191 |
|
Inventory |
|
|
20,463 |
|
|
|
19,578 |
|
Prepaid
expenses and other current assets |
|
|
2,916 |
|
|
|
1,970 |
|
Total current
assets |
|
|
68,089 |
|
|
|
59,027 |
|
|
|
|
|
|
Property and equipment,
net |
|
|
9,544 |
|
|
|
8,012 |
|
Goodwill |
|
|
23,645 |
|
|
|
23,426 |
|
Other intangibles,
net |
|
|
9,083 |
|
|
|
9,897 |
|
Deferred tax
assets |
|
|
1,514 |
|
|
|
1,399 |
|
Other assets |
|
|
179 |
|
|
|
163 |
|
|
|
|
|
|
Total assets |
|
$ |
112,054 |
|
|
$ |
101,924 |
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
stockholders' equity |
|
|
|
|
|
|
|
|
|
Current
liabilities: |
|
|
|
|
Accounts
payable |
|
$ |
1,574 |
|
|
$ |
1,217 |
|
Accrued
expenses |
|
|
7,687 |
|
|
|
8,804 |
|
Acquisition-related obligations |
|
|
136 |
|
|
|
461 |
|
Total current
liabilities |
|
|
9,397 |
|
|
|
10,482 |
|
|
|
|
|
|
Deferred tax
liabilities |
|
|
1,946 |
|
|
|
1,941 |
|
Other long-term
liabilities |
|
|
2,400 |
|
|
|
2,001 |
|
Total liabilities |
|
|
13,743 |
|
|
|
14,424 |
|
|
|
|
|
|
Stockholders'
equity |
|
|
|
|
Common
stock |
|
|
204 |
|
|
|
200 |
|
Additional paid-in capital |
|
|
88,759 |
|
|
|
85,378 |
|
Retained
earnings |
|
|
21,122 |
|
|
|
15,335 |
|
Accumulated other comprehensive loss |
|
|
(2,944 |
) |
|
|
(4,583 |
) |
Treasury
stock |
|
|
(8,830 |
) |
|
|
(8,830 |
) |
Total stockholders'
equity |
|
|
98,311 |
|
|
|
87,500 |
|
|
|
|
|
|
Total liabilities and
stockholders' equity |
|
$ |
112,054 |
|
|
$ |
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 six months ended |
|
June 30, 2017 |
|
June 30, 2016 |
|
June 30, 2017 |
|
June 30, 2016 |
|
|
|
|
|
|
|
|
Net sales |
$ |
25,753 |
|
|
$ |
22,389 |
|
$ |
49,892 |
|
|
$ |
42,647 |
Cost of sales |
|
8,237 |
|
|
|
7,022 |
|
|
15,023 |
|
|
|
12,924 |
|
|
|
|
|
|
|
|
Gross profit |
|
17,516 |
|
|
|
15,367 |
|
|
34,869 |
|
|
|
29,723 |
|
|
|
|
|
|
|
|
Operating
expenses: |
|
|
|
|
|
|
|
Sales and
marketing |
|
6,599 |
|
|
|
6,539 |
|
|
13,553 |
|
|
|
12,812 |
General
and administrative |
|
3,747 |
|
|
|
3,411 |
|
|
8,295 |
|
|
|
6,748 |
Research
and development |
|
1,634 |
|
|
|
1,634 |
|
|
3,292 |
|
|
|
3,080 |
|
|
|
|
|
|
|
|
Total operating
expenses |
|
11,980 |
|
|
|
11,584 |
|
|
25,140 |
|
|
|
22,640 |
|
|
|
|
|
|
|
|
Income from
operations |
|
5,536 |
|
|
|
3,783 |
|
|
9,729 |
|
|
|
7,083 |
|
|
|
|
|
|
|
|
Other income: |
|
|
|
|
|
|
|
Other
income (expense), net |
|
(70 |
) |
|
|
53 |
|
|
(24 |
) |
|
|
18 |
|
|
|
|
|
|
|
|
Income before income
taxes |
|
5,466 |
|
|
|
3,836 |
|
|
9,705 |
|
|
|
7,101 |
|
|
|
|
|
|
|
|
Provision (benefit) for
income taxes |
|
834 |
|
|
|
1,238 |
|
|
1,854 |
|
|
|
2,337 |
|
|
|
|
|
|
|
|
Net income |
$ |
4,632 |
|
|
$ |
2,598 |
|
$ |
7,851 |
|
|
$ |
4,764 |
|
|
|
|
|
|
|
|
Earnings per share of
common stock |
|
|
|
|
|
|
|
Basic |
$ |
0.25 |
|
|
$ |
0.14 |
|
$ |
0.42 |
|
|
$ |
0.26 |
Diluted |
$ |
0.23 |
|
|
$ |
0.14 |
|
$ |
0.40 |
|
|
$ |
0.25 |
|
|
|
|
|
|
|
|
Weighted - average
shares outstanding: |
|
|
|
|
|
|
|
Basic |
|
18,816 |
|
|
|
18,408 |
|
|
18,724 |
|
|
|
18,372 |
Diluted |
|
19,975 |
|
|
|
18,978 |
|
|
19,855 |
|
|
|
18,926 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash dividends declared
per common share |
$ |
0.055 |
|
|
$ |
0.045 |
|
$ |
0.110 |
|
|
$ |
0.090 |
|
|
|
|
|
|
|
|
LEMAITRE VASCULAR, INC (NASDAQ: LMAT) |
|
|
|
|
|
|
SELECTED NET SALES INFORMATION |
|
|
|
|
|
|
|
|
|
|
|
|
(amounts in
thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the three months ended |
|
For the six months ended |
|
June 30, 2017 |
|
June 30, 2016 |
|
June 30, 2017 |
|
June 30, 2016 |
|
$ |
|
% |
|
$ |
|
% |
|
$ |
|
% |
|
$ |
|
% |
Net Sales by
Geography |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Americas |
$ |
16,089 |
|
62 |
% |
|
$ |
13,189 |
|
59 |
% |
|
$ |
31,069 |
|
62 |
% |
|
$ |
25,066 |
|
59 |
% |
International |
|
9,664 |
|
38 |
% |
|
|
9,200 |
|
41 |
% |
|
|
18,823 |
|
38 |
% |
|
|
17,581 |
|
41 |
% |
Total Net
Sales |
$ |
25,753 |
|
100 |
% |
|
$ |
22,389 |
|
100 |
% |
|
$ |
49,892 |
|
100 |
% |
|
$ |
42,647 |
|
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 June 30, 2017 |
|
|
|
|
|
|
|
|
Net sales
as reported |
|
$ |
25,753 |
|
|
|
|
|
|
|
Impact of
currency exchange rate fluctuations |
|
|
332 |
|
|
|
|
|
|
|
Net
impact of acquisitions excluding currency |
|
|
(1,517 |
) |
|
|
|
|
|
|
Adjusted
net sales |
|
|
|
$ |
24,568 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the
three months ending June 30, 2016 |
|
|
|
|
|
|
|
|
Net sales
as reported |
|
$ |
22,389 |
|
|
|
|
|
|
|
Net
impact of divestitures excluding currency |
|
|
- |
|
|
|
|
|
|
|
Adjusted
net sales |
|
|
|
$ |
22,389 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted net sales increase for the three months ending June
30, 2017 |
|
$ |
2,179 |
|
|
|
10 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation between
GAAP and Non-GAAP sales growth: |
|
|
|
|
|
|
|
|
For the
three months ending September 30, 2017 |
|
|
|
|
|
|
|
|
Net sales
per guidance |
|
$ |
25,440 |
|
|
|
|
|
|
|
Impact of
currency exchange rate fluctuations |
|
|
(230 |
) |
|
|
|
|
|
|
Net
impact of acquisitions excluding currency |
|
|
(1,350 |
) |
|
|
|
|
|
|
Adjusted
net sales |
|
|
|
$ |
23,860 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the
three months ending September 30, 2016 |
|
|
|
|
|
|
|
|
Net sales
as reported |
|
$ |
23,216 |
|
|
|
|
|
|
|
Net
impact of divestitures excluding currency |
|
|
- |
|
|
|
|
|
|
|
Adjusted
net sales |
|
|
|
$ |
23,216 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted net sales increase for the three months ending
September 30, 2017 |
|
$ |
644 |
|
|
|
3 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation between
GAAP and Non-GAAP sales growth: |
|
|
|
|
|
|
|
|
For the
year ending December 31, 2017 |
|
|
|
|
|
|
|
|
Net sales
per guidance |
|
$ |
101,900 |
|
|
|
|
|
|
|
Impact of
currency exchange rate fluctuations |
|
|
(304 |
) |
|
|
|
|
|
|
Net
impact of acquisitions excluding currency |
|
|
(4,990 |
) |
|
|
|
|
|
|
Adjusted
net sales |
|
|
|
$ |
96,606 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the
year ending 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 ending December 31,
2017 |
|
$ |
7,455 |
|
|
|
8 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the three months ended |
|
For the six months ended |
|
|
June 30, 2017 |
|
June 30, 2016 |
|
June 30, 2017 |
|
June 30, 2016 |
Reconciliation between
GAAP and Non-GAAP EBITDA |
|
|
|
|
|
|
|
|
Net
income as reported |
|
$ |
4,632 |
|
|
$ |
2,598 |
|
|
$ |
7,851 |
|
|
$ |
4,764 |
|
Interest
income |
|
|
(32 |
) |
|
|
(16 |
) |
|
|
(52 |
) |
|
|
(31 |
) |
Amortization and depreciation expense |
|
|
983 |
|
|
|
931 |
|
|
|
1,962 |
|
|
|
1,812 |
|
Provision
for income taxes |
|
|
834 |
|
|
|
1,238 |
|
|
|
1,854 |
|
|
|
2,337 |
|
|
|
|
|
|
|
|
|
|
EBITDA |
|
$ |
6,417 |
|
|
$ |
4,751 |
|
|
$ |
11,615 |
|
|
$ |
8,882 |
|
|
|
|
|
|
|
|
|
|
EBITDA
percentage increase |
|
|
|
|
35% |
|
|
|
|
|
31% |
|
|
|
|
|
|
|
|
|
|
CONTACT: J.J. Pellegrino, CFO
LeMaitre Vascular
781-425-1691
jjpellegrino@lemaitre.com
LeMaitre Vascular (NASDAQ:LMAT)
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