LMAT LeMaitre Vascular Inc

LeMaitre (Nasdaq:LMAT), a provider of vascular devices, implants and services, today reported Q4 2023 results, announced a $0.16/share quarterly dividend and provided guidance.

Q4 2023 Financial Results

• Sales $48.9mm, +19% (+14% organic) vs. Q4 2022
• Gross margin 68.1%, +450 bps
• Op. income $10.2mm, +46%
• Op. margin 21%
• Net income $8.5mm, +50%
• Earnings per diluted share $0.38, +49%
• Cash up $8.1mm sequentially to $105.1mm

Bovine patches (+18%), allografts (+52%), valvulotomes (+12%), carotid shunts (+16%) and distributed porcine patches drove Q4 sales. EMEA sales increased 21%, the Americas 20% and APAC 11%.

The gross margin increased to 68.1% in Q4 (vs. 63.6% in Q4 2022) driven primarily by average selling price increases, as well as manufacturing efficiencies.

Operating income of $10.2mm was up 46% vs. Q4 2022. Operating expenses grew 21% year-over-year due to increased sales commissions, other compensation and CE-related regulatory costs.

Chairman/CEO George LeMaitre said, “Our 19% sales growth and gross margin recovery produced 46% op. income growth in Q4. Full year 2024 guidance implies an operating margin of 21%, up from 19% in 2023.”

Business Outlook

	Q1 2024 Guidance		Full Year 2024 Guidance
Sales	$50.5mm - $52.9mm(Mid: $51.7mm, +10%, +7% Org.)		$209.7mm - $214.3mm(Mid: $212.0mm, +10%, +9% Org.)
Gross Margin	68.5%		68.0%
Op. Income	$9.7mm - $11.3mm(Mid: $10.5mm, +33%)(Mid: $10.5mm, +28% Ex-Special)*		$43.4mm - $46.5mm(Mid $45.0mm, +22%)(Mid: $45.0mm, +21%, Ex-Special)*
EPS	$0.36 - $0.41(Mid: $0.39, +42%)(Mid: $0.39, +37%, Ex-Special)*		$1.60 - $1.71(Mid: $1.65, +23%)(Mid: 1.65, +22%, Ex-Special)*

*Special charges in 2023 are related to the St. Etienne factory closure.

Quarterly Dividend

On February 21, 2024, the Company's Board of Directors approved a quarterly dividend of $0.16/share of common stock. The dividend will be paid on March 28, 2024 to shareholders of record on March 14, 2024.

Share Repurchase Program

On February 21, 2024, the Company's Board of Directors authorized the repurchase of up to $50.0mm of the Company’s common stock. The repurchase program may be suspended or discontinued at any time and will conclude on February 21, 2025, unless extended by the Board.

Conference Call Reminder

Management will conduct a conference call at 5:00pm ET today. The conference call will be broadcast live over the Internet. Individuals interested in listening to the webcast can log on to the Company's website at www.lemaitre.com/investor. Access to the live call is available by registering online here. All registrants will receive dial-in information and a PIN allowing them to access the live call. The audio webcast can also be accessed live or via replay through a webcast at www.lemaitre.com/investor. 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

LeMaitre 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 is a registered trademark of LeMaitre Vascular, Inc. This press release may include other trademarks and trade names of the Company.

For more information about the Company, please visit www.lemaitre.com.

Use of Non-GAAP Financial Measures

LeMaitre management believes that in order to better understand the Company's short- 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, including EBITDA. This press release also provides guidance for operating income and EPS excluding the special charge relating to the closure of our St. Etienne factory and revenue related the Aziyo distribution agreement. The Company refers to the calculation of non-GAAP sales growth percentages as "organic." The Company analyzes non-GAAP sales on a constant currency basis, net of acquisitions and other non-recurring events, and the aforementioned non-GAAP profitability measures 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, divestitures, product discontinuations, factory closures, 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 the presentation of guidance described above for operating income and EPS provides an alternative and meaningful view of the Company’s profitability.

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. 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 status of our global regulatory approvals and compliance with regulatory requirements to market and sell our products both in the U.S. and outside of the U.S.; risks from implementing a new enterprise resource planning system; the risks from competition from other companies; the risk of significant fluctuations in our quarterly and annual results due to numerous factors; 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; 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; risks related to the integration of acquisition targets; the acceleration or deceleration of product growth rates; 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, which are all available on the Company's investor relations website at http://www.lemaitre.com and on the SEC's website at https://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, 2023				December 31, 2022
			(unaudited)
Assets
Current assets:
	Cash and cash equivalents		$	24,269			$	19,134
	Short-term marketable securities			80,805				63,557
	Accounts receivable, net			25,064				22,040
	Inventory and other deferred costs			58,080				50,271
	Prepaid expenses and other current assets			6,380				6,731
Total current assets				194,598				161,733
Property and equipment, net				21,754				17,901
Right-of-use leased assets				18,027				15,634
Goodwill				65,945				65,945
Other intangibles, net				41,711				46,527
Deferred tax assets				1,003				1,745
Other assets				3,740				991
Total assets			$	346,778			$	310,476
Liabilities and stockholders' equity
Current liabilities:
	Accounts payable		$	3,734			$	2,903
	Accrued expenses			23,650				19,967
	Acquisition-related obligations			24				573
	Lease liabilities - short-term			2,471				1,886
Total current liabilities				29,879				25,329
Lease liabilities - long-term				16,624				14,710
Deferred tax liabilities				107				69
Other long-term liabilities				2,268				2,167
Total liabilities				48,878				42,275
Stockholders' equity
	Common stock			239				237
	Additional paid-in capital			200,755				189,268
	Retained earnings			115,430				97,773
	Accumulated other comprehensive loss			(4,625	)			(6,031	)
	Treasury stock			(13,899	)			(13,046	)
Total stockholders' equity				297,900				268,201
Total liabilities and stockholders' equity			$	346,778			$	310,476

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, 2023			December 31, 2022			December 31, 2023				December 31, 2022
Net sales		$	48,883		$	40,954		$	193,484			$	161,651
Cost of sales			15,618			14,900			66,435				56,755
Gross profit			33,265			26,054			127,049				104,896
Operating expenses:
	Sales and marketing		10,268			8,600			41,054				32,921
	General and administrative		8,440			6,933			31,832				28,745
	Research and development		4,351			3,554			16,966				13,294
	Restructuring		-			-			485				3,107
Total operating expenses			23,059			19,087			90,337				78,067
Income from operations			10,206			6,967			36,712				26,829
Other income (expense), net
	Interest income		992			447			3,077				986
	Other income (loss), net		115			384			(314	)			(325	)
Income before income taxes			11,313			7,798			39,475				27,490
Provision for income taxes			2,848			2,171			9,370				6,854
Net income		$	8,465		$	5,627		$	30,105			$	20,636
Earnings per share of common stock
	Basic	$	0.38		$	0.26		$	1.36			$	0.94
	Diluted	$	0.38		$	0.25		$	1.34			$	0.93
Weighted - average shares outstanding:
	Basic		22,278			22,023			22,217				21,975
	Diluted		22,459			22,238			22,423				22,171
Cash dividends declared per common share		$	0.140		$	0.125		$	0.560			$	0.500

LEMAITRE VASCULAR, INC. (NASDAQ: LMAT)
SELECTED NET SALES INFORMATION
(amounts in thousands)
(unaudited)
		For the three months ended												For the year ended
		December 31, 2023						December 31, 2022						December 31, 2023						December 31, 2022
		$			%			$			%			$			%			$			%
Net Sales by Geography
	Americas	$	32,812		67	%		$	27,415		67	%		$	130,308		67	%		$	109,439		68	%
	Europe, Middle East and Africa		12,920		26	%			10,689		26	%			51,099		27	%			41,854		26	%
	Asia Pacific		3,151		7	%			2,850		7	%			12,077		6	%			10,358		6	%
Total Net Sales		$	48,883		100	%		$	40,954		100	%		$	193,484		100	%		$	161,651		100	%

LEMAITRE VASCULAR, INC. (NASDAQ: LMAT)
NON-GAAP FINANCIAL MEASURES
(amounts in thousands)
(unaudited)
				For the three months ended								For the year ended
				December 31, 2023				December 31, 2022				December 31, 2023				December 31, 2022
Reconciliation between GAAP and Non-GAAP EBITDA
	Net income as reported			$	8,465			$	5,627			$	30,105			$	20,636
	Interest (income) expense, net				(992	)			(447	)			(3,077	)			(986	)
	Amortization and depreciation expense				2,443				2,288				9,515				9,433
	Provision for income taxes				2,848				2,171				9,370				6,854
	EBITDA			$	12,764			$	9,639			$	45,913			$	35,937
	EBITDA percentage increase (decrease)								32	%							28	%

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, 2023
		Net sales as reported		$	48,883
		Net distribution sales			(1,479	)
		Impact of currency exchange rate fluctuations			(556	)
		Adjusted net sales						$	46,848
	For the three months ended December 31, 2022
		Net sales as reported		$	40,954
		Adjusted net sales						$	40,954
		Adjusted net sales increase for the three months ended December 31, 2023						$	5,894		14	%
Reconciliation between GAAP and Non-GAAP projected sales growth:
	For the three months ending March 31, 2024
		Net sales per guidance (midpoint)		$	51,722
		Net distribution sales			(1,247	)
		Impact of currency exchange rate fluctuations			(35	)
		Adjusted projected net sales						$	50,440
	For the three months ended March 31, 2023
		Net sales as reported		$	47,075
		Adjusted net sales						$	47,075
		Adjusted projected net sales increase for the three months ending March 31, 2024						$	3,365		7	%
Reconciliation between GAAP and Non-GAAP projected sales growth:
	For the year ending December 31, 2024
		Net sales per guidance (midpoint)		$	212,000
		Net distribution sales			(1,574	)
		Impact of currency exchange rate fluctuations			133
		Adjusted projected net sales						$	210,559
	For the year ended December 31, 2023
		Net sales as reported		$	193,484
		Adjusted net sales						$	193,484
		Adjusted projected net sales increase for the year ending December 31, 2024						$	17,075		9	%
Reconciliation between GAAP and Non-GAAP projected operating income:
	For the three months ending March 31, 2024
		Operating income per guidance (midpoint)		$	10,490
		Adjusted projected operating income						$	10,490
	For the three months ended March 31, 2023
		Operating income as reported		$	7,874
		Impact of special charge			305
		Adjusted operating income						$	8,179
		Adjusted projected operating income increase for the three months ending March 31, 2024						$	2,311		28	%
Reconciliation between GAAP and Non-GAAP projected operating income:
	For the year ending December, 2024
		Operating income per guidance (midpoint)		$	44,955
		Adjusted projected operating income						$	44,955
	For the year ended December 31, 2023
		Operating income as reported		$	36,712
		Impact of special charge			485
		Adjusted operating income						$	37,197
		Adjusted projected operating income increase for the year ending December 31, 2024						$	7,758		21	%
Reconciliation between GAAP and Non-GAAP projected EPS:
	For the three months ending March 31, 2024
		EPS per guidance (midpoint)		$	0.39
		Adjusted EPS						$	0.39
	For the three months ended March 31, 2023
		EPS as reported		$	0.27
		Impact of special charge, including tax			0.01
		Adjusted EPS						$	0.28
		Adjusted projected EPS increase for the three months ending March 31, 2024						$	0.11		37	%
Reconciliation between GAAP and Non-GAAP projected EPS:
	For the year ending December 31, 2024
		EPS per guidance (midpoint)		$	1.65
		Adjusted EPS						$	1.65
	For the year ended December 31, 2023
		EPS as reported		$	1.34
		Impact of special charge, including tax			0.01
		Adjusted EPS						$	1.35
		Adjusted projected EPS increase for the year ending December 31, 2024						$	0.30		22	%

CONTACT: 
J.J. Pellegrino, CFO, LeMaitre
781-425-1691
jjpellegrino@lemaitre.com