LeMaitre Q4 2020 Financial Results

Rhea-AI Summary

LeMaitre (Nasdaq: LMAT) reported strong Q4 2020 results, with sales of $37.5 million, a 24% increase year-over-year. Operating income surged 94% to $9.5 million, resulting in a net income of $7.0 million and earnings of $0.34 per diluted share. Debt was reduced by $21.5 million, improving the balance sheet. Despite gross margin slightly declining to 65%, the company achieved record sales driven by acquisitions and strong performance in the Americas. For Q1 2021, LeMaitre projects sales between $33.8 and $36.8 million, with an expected earnings per share of $0.24 to $0.31.

Positive

• Q4 2020 sales increased by 24% to $37.5 million.
• Operating income up 94% to $9.5 million.
• Net income rose 52% to $7 million.
• Debt decreased by $21.5 million to $39 million.
• Continued dividend growth for a decade.

Negative

• Gross margin reduced to 65% from 66% year-over-year.

BURLINGTON, Mass., Feb. 25, 2021 (GLOBE NEWSWIRE) -- LeMaitre (Nasdaq:LMAT), a provider of vascular devices, implants and services, today reported Q4 2020 results and announced an $0.11/share quarterly dividend.

Q4 2020 Results

• Sales of $37.5mm, +24% (+3% organic) vs. Q4 2019
• Op. income of $9.5mm, +94%
• Op. margin of 25%
• Net income of $7.0mm, +52%
• Earnings of $0.34 per diluted share, +51%
• EBITDA of $11.9mm, +84%
• Debt paid down $21.5mm to $39.0mm

The Company posted sales growth in the Americas (+35%), Asia/Pac (+12%) and Europe/Middle East/Africa (+9%). The three recent acquisitions (Artegraft, CardioCel and Eze-Sit) led growth in Q4 2020. By product, biologic grafts, valvulotomes and embolectomy catheters drove sales.

Gross margin decreased to 65.0% in Q4 2020 (vs. 66.0% in Q4 2019) primarily due to recent acquisitions and factory transitions.

Operating expenses decreased 1% to $14.9mm in Q4 2020 (vs. $15.0mm). The decline was driven by COVID-related cost-cuts as well as reduced travel and surgeon congresses.

Chairman & CEO George LeMaitre said, “For Q4, record sales combined with expense control to produce healthy bottom-line results and an improved balance sheet. For 2020 we reported 10% sales growth and 36% op. income growth. 2021 marks a decade of yearly dividend growth at LeMaitre.”  

Business Outlook

	Guidance
Q1 2021 Sales	$33.8mm - $36.8mm (Midpoint:+16%)
Q1 2021 Gross Margin	66.7%
Q1 2021 Operating Income	$6.8mm - $8.8mm (Midpoint:+79%)
Q1 2021 Earnings Per Share	$0.24 - $0.31 (Midpoint: +78%)

Quarterly Dividend

On February 23, 2021, the Company's Board of Directors approved a quarterly dividend of $0.11/share of common stock. The dividend will be paid on March 25, 2021 to shareholders of record on March 9, 2021.

Share Repurchase Program

On February 23, 2021, the Company's Board of Directors authorized the repurchase of up to $15.0mm of the Company’s common stock. The repurchase program may be suspended or discontinued at any time and will conclude on February 22, 2022, unless extended by the Board.

Conference Call Reminder

Management will conduct a conference call at 5:00 p.m. 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. The conference call may also be accessed by dialing 844-239-5284 (+1 512-961-6497 for international callers), using passcode 8429679. 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 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 logo are registered trademarks 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 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 growth 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, divestitures, 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. 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 foreign regulatory requirements to market and sell our products outside the United States; the duration of the lapse in CE mark approval for certain of our devices; the closure of an audit by one of our notified bodies in support of the issuance and/or maintenance of CE marks covering certain of our products or the failure of such audit to be successfully closed; the duration and severity of the impact of COVID-19 on the global economy, our customers, our suppliers and our company; 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 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.

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

LEMAITRE VASCULAR, INC (NASDAQ: LMAT)
CONDENSED CONSOLIDATED BALANCE SHEETS
(amounts in thousands)
			December 31, 2020				December 31, 2019
			(unaudited)
Assets
Current assets:
	Cash and cash equivalents		$	26,764			$	11,786
	Short-term marketable securities			214				20,895
	Accounts receivable, net			19,552				16,572
	Inventory and other deferred costs			45,115				39,527
	Prepaid expenses and other current assets			2,618				3,312
Total current assets				94,263				92,092
Property and equipment, net				15,036				14,854
Right-of-use leased assets				16,066				15,208
Goodwill				65,945				39,951
Other intangibles, net				58,905				24,893
Deferred tax assets				1,686				1,084
Other assets				909				259
Total assets			$	252,810			$	188,341
Liabilities and stockholders' equity
Current liabilities:
	Current portion of long-term debt		$	2,500			$	-
	Accounts payable			2,394				2,604
	Accrued expenses			17,525				14,014
	Acquisition-related obligations			772				2,476
	Lease liabilities - short-term			1,954				1,757
Total current liabilities				25,145				20,851
Long-term debt				35,532				-
Lease liabilities - long-term				14,791				13,955
Deferred tax liabilities				127				1,179
Other long-term liabilities				4,643				4,215
Total liabilities				80,238				40,200
Stockholders' equity
	Common stock			221				217
	Additional paid-in capital			114,924				105,934
	Retained earnings			70,554				57,029
	Accumulated other comprehensive loss			(1,525	)			(4,007	)
	Treasury stock			(11,602	)			(11,032	)
Total stockholders' equity				172,572				148,141
Total liabilities and stockholders' equity			$	252,810			$	188,341

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, 2020				December 31, 2019			December 31, 2020				December 31, 2019
Net sales		$	37,548			$	30,170		$	129,366			$	117,232
Cost of sales			13,146				10,262			44,748				37,379
Gross profit			24,402				19,908			84,618				79,853
Operating expenses:
	Sales and marketing		5,912				7,452			23,700				30,339
	General and administrative		6,076				5,029			22,501				19,055
	Research and development		2,869				2,499			10,099				9,276
	Gain on sale of building		-				-			(470	)			-
Total operating expenses			14,857				14,980			55,830				58,670
Income from operations			9,545				4,928			28,788				21,183
Other income:
	Interest expense		(579	)			-			(1,310	)			-
	Other income (loss), net		(35	)			260			(122	)			496
Income before income taxes			8,931				5,188			27,356				21,679
Provision for income taxes			1,898				575			6,136				3,745
Net income		$	7,033			$	4,613		$	21,220			$	17,934
Earnings per share of common stock
	Basic	$	0.35			$	0.23		$	1.05			$	0.91
	Diluted	$	0.34			$	0.23		$	1.04			$	0.88
Weighted - average shares outstanding:
	Basic		20,380				20,054			20,246				19,813
	Diluted		20,621				20,484			20,479				20,326
Cash dividends declared per common share		$	0.095			$	0.085		$	0.380			$	0.340

LEMAITRE VASCULAR, INC (NASDAQ: LMAT)
SELECTED NET SALES INFORMATION
(amounts in thousands)
(unaudited)
		For the three months ended												For the year ended
		December 31, 2020						December 31, 2019						December 31, 2020						December 31, 2019
		$			%			$			%			$			%			$			%
Net Sales by Geography
	Americas	$	24,008		64	%		$	17,775		59	%		$	81,470		63	%		$	69,359		59	%
	Europe/Middle East/Africa		10,854		29	%			10,001		33	%			39,193		30	%			39,480		34	%
	Asia/Pacific Rim		2,686		7	%			2,394		8	%			8,703		7	%			8,393		7	%
Total Net Sales		$	37,548		100	%		$	30,170		100	%		$	129,366		100	%		$	117,232		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, 2020
		Net sales as reported		$	37,548
		Impact of currency exchange rate fluctuations			(792	)
		Net impact of acquisitions excluding currency			(5,705	)
		Adjusted net sales						$	31,051
	For the three months ended December 31, 2019
		Net sales as reported		$	30,170
		Adjusted net sales						$	30,170
		Adjusted net sales increase for the three months ended December 31, 2020						$	881				3	%
Reconciliation between GAAP and non-GAAP debt outstanding:
	As of December 31, 2020
		Debt as reported		$	38,032
		Add back unamortized deferred financing costs			968
		Adjusted debt outstanding						$	39,000
				For the three months ended								For the year ended
				December 31, 2020				December 31, 2019				December 31, 2020				December 31, 2019
Reconciliation between GAAP and Non-GAAP EBITDA
	Net income as reported			$	7,033			$	4,613			$	21,220			$	17,934
	Interest (income) expense, net				565				(123	)			1,103				(698	)
	Amortization and depreciation expense				2,447				1,441				8,224				5,416
	Provision for income taxes				1,898				575				6,136				3,745
	EBITDA			$	11,943			$	6,506			$	36,683			$	26,397
	EBITDA percentage increase								84	%							39	%

 

 

FAQ

What were LeMaitre's Q4 2020 sales figures?

LeMaitre reported Q4 2020 sales of $37.5 million, a 24% increase compared to Q4 2019.

What is the expected earnings per share for Q1 2021 for LMAT?

LeMaitre expects earnings per share for Q1 2021 to be between $0.24 and $0.31.

How much debt did LeMaitre pay down in Q4 2020?

LeMaitre reduced its debt by $21.5 million to a total of $39 million.

What is the quarterly dividend declared by LeMaitre?

LeMaitre declared a quarterly dividend of $0.11 per share, payable on March 25, 2021.

What growth did LeMaitre expect in Q1 2021 sales?

LeMaitre projected Q1 2021 sales between $33.8 million and $36.8 million, representing a midpoint growth of 16%.