AP NEWS
Press release content from Globe Newswire. The AP news staff was not involved in its creation.
PRESS RELEASE: Paid content from Globe Newswire
Press release content from Globe Newswire. The AP news staff was not involved in its creation.

LeMaitre Vascular Announces Q1 2019 Financial Results

May 1, 2019

BURLINGTON, Mass., May 01, 2019 (GLOBE NEWSWIRE) -- LeMaitre Vascular, Inc. (Nasdaq:LMAT), a provider of vascular devices, implants and services, today reported Q1 2019 results, provided guidance, and announced a $0.085/share dividend.

Q1 2019 Results

-- Record sales of $28.5mm, +10% (+7% organic) vs. Q1 2018 -- Operating income of $4.4mm vs. $4.9mm, -9% -- Net income of $3.5mm vs. $3.9mm, -9% -- Earnings of $0.17 per diluted share vs. $0.19, -9% -- EBITDA of $5.6mm vs. $5.9mm, -4%

The Company posted record Q1 2019 sales in both Europe/Middle East/Africa (+14%) and Asia/Pac (+52%). Sales in the Americas were up 3%. Sales were driven by embolectomy catheters, OEM, polyester grafts and carotid shunts.

Gross margin decreased to 68.3% in Q1 2019 from 71.1% in Q1 2018, primarily due to the two recent acquisitions and the strong US dollar.

Operating expenses in Q1 2019 were $15.0mm (+10% vs. Q1 2018) driven by more reps (to 109) and R&D (8% of sales).

George W. LeMaitre, Chairman and CEO said, “Based on 10% Q1 sales growth, we’re increasing our full year guidance. Q1 growth was due to our increasing international footprint and the two recent acquisitions.”

Business Outlook

Previous Guidance (2/19/2019) Current Guidance -------------------------- ------------------------------------- ------------------------------------- Q2 2019 Sales N/A $28.4mm - $29.2mm (Midpoint:+7% reported, +4% organic) -------------------------- ------------------------------------- ------------------------------------- Q2 2019 Gross Margin N/A 68.3% -------------------------- ------------------------------------- ------------------------------------- $5.1mm - $5.7mm Q2 2019 Operating Income N/A (Midpoint: -53%) (Midpoint Ex-Special Items: +1%) -------------------------- ------------------------------------- ------------------------------------- $0.20 - $0.22 Q2 2019 Earnings Per Share N/A (Midpoint: -50%) (Midpoint Ex-Special Items: +6%) -------------------------- ------------------------------------- ------------------------------------- 2019 Sales $113.0mm - $114.4mm $113.5mm - $114.7mm (Midpoint: +8% reported, +5% organic) (Midpoint: +8% reported, +6% organic) -------------------------- ------------------------------------- ------------------------------------- 2019 Gross Margin 69.5% 68.5% -------------------------- ------------------------------------- ------------------------------------- $22.1mm - $23.1mm $20.9mm - $21.7mm 2019 Operating Income (Midpoint: -20%) (Midpoint: -25%) (Midpoint Ex-Special Items: +9%) (Midpoint Ex-Special Items: +4%) -------------------------- ------------------------------------- ------------------------------------- $0.82 - $0.86 $0.82 - $0.86 2019 Earnings Per Share (Midpoint: -26%) (Midpoint: -26%) (Midpoint Ex-Special Items: +1%) (Midpoint Ex-Special Items: +2%) -------------------------- ------------------------------------- -------------------------------------

Quarterly Dividend

On April 29, 2019, the Company’s Board of Directors approved a quarterly dividend of $0.085/share of common stock. The dividend will be paid on June 6, 2019 to shareholders of record on May 22, 2019.

Share Repurchase Program

On February 14, 2019, the Company’s Board of Directors authorized the repurchase of up to $10.0mm of the Company’s common stock. The repurchase program may be suspended or discontinued at any time and will conclude on February 14, 2020, 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 6398939. 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.

The Company has also identified the percentage change in its projected Q2 2019 and full year 2019 operating income and earnings per share excluding “special items.” Those special items excluded from Q2 2018 and full year 2018 operating income are the gains on the Company’s 2018 acquisitions and divestitures and those special items excluded from projected Q2 2019 and full year 2019 operating income are 2019 restructuring charges. Those special items excluded from Q2 2018 and full year 2018 earnings per share are the gains on the Company’s 2018 acquisitions and divestitures, net of tax, and those special items excluded from projected Q2 2019 and full year 2019 earnings per share are 2019 restructuring charges, net of tax. Because acquisitions, divestitures and restructurings are episodic in nature and are highly variable to the Company’s results, the Company believes that evaluating its profitability net of such transactions and events provides an additional and meaningful assessment of profitability to management.

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 Q2 2019 and 2019 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 of significant fluctuations in our quarterly and annual results due to numerous factors including the acceleration or deceleration of product growth rates; 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; 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 the Company’s ability to attain or maintain regulatory approvals for its products; 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, CFOLeMaitre Vascular781-425-1691 jjpellegrino@lemaitre.com

LEMAITRE VASCULAR, INC (NASDAQ: LMAT) CONDENSED CONSOLIDATED BALANCE SHEETS (amounts in thousands) March 31, December 2019 31, 2018 ----------- ----------- (unaudited) Assets Current assets: Cash and cash equivalents $ 14,766 $ 26,318 Short-term marketable securities 32,691 21,668 Accounts receivable, net 15,460 15,721 Inventory and other deferred costs 29,408 27,388 Prepaid expenses and other current assets 3,093 2,922 - ------- - - ------- - Total current assets 95,418 94,017 Property and equipment, net 14,109 14,102 Right-of-use leased assets 6,266 - Goodwill 29,880 29,868 Other intangibles, net 13,179 13,692 Deferred tax assets 1,190 1,215 Other assets 210 194 - ------- - - ------- - Total assets $ 160,252 $ 153,088 - ------- - - ------- - Liabilities and stockholders’ equity Current liabilities: Accounts payable $ 2,381 $ 1,732 Accrued expenses 13,372 15,847 Acquisition-related obligations 2,194 2,179 Lease liabilities - short-term 1,438 - - ------- - - ------- - Total current liabilities 19,385 19,758 Lease liabilities - long-term 5,263 - Deferred tax liabilities 484 484 Other long-term liabilities 2,032 2,611 - ------- - - ------- - Total liabilities 27,164 22,853 Stockholders’ equity Common stock 212 211 Additional paid-in capital 99,666 98,442 Retained earnings 47,672 45,831 Accumulated other comprehensive loss (4,092 ) (3,900 ) Treasury stock (10,370 ) (10,349 ) - ------- - - ------- - Total stockholders’ equity 133,088 130,235 - ------- - - ------- - Total liabilities and stockholders’ equity $ 160,252 $ 153,088 - ------- - - ------- -

LEMAITRE VASCULAR, INC (NASDAQ: LMAT) CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS (amounts in thousands, except per share amounts) (unaudited) For the three months ended ------------------ March March 31, 2019 31, 2018 -------- -------- Net sales $ 28,479 $ 25,994 Cost of sales 9,015 7,520 - ------ - ------ Gross profit 19,464 18,474 Operating expenses: Sales and marketing 7,845 7,090 General and administrative 4,944 4,697 Research and development 2,240 1,825 -------- -------- Total operating expenses 15,029 13,612 - ------ - ------ Income from operations 4,435 4,862 Other income: Other income (loss), net 78 54 - ------ - ------ Income before income taxes 4,513 4,916 Provision for income taxes 1,000 1,063 - ------ - ------ Net income $ 3,513 $ 3,853 - ------ - ------ Earnings per share of common stock Basic $ 0.18 $ 0.20 - ------ - ------ Diluted $ 0.17 $ 0.19 - ------ - ------ Weighted - average shares outstanding: Basic 19,640 19,283 - ------ - ------ Diluted 20,205 20,181 - ------ - ------ Cash dividends declared per common share $ 0.085 $ 0.070 - ------ - ------

LEMAITRE VASCULAR, INC (NASDAQ: LMAT) SELECTED NET SALES INFORMATION (amounts in thousands) (unaudited) For the three months ended -------------------------------- March 31, 2019 March 31, 2018 --------------- --------------- $ % $ % -------- ----- -------- ----- Net Sales by Geography Americas $ 16,375 58 % $ 15,860 61 % Europe/Middle East/Africa 10,013 35 % 8,755 34 % Asia/Pacific Rim 2,091 7 % 1,379 5 % - ------ - ------ Total Net Sales $ 28,479 100 % $ 25,994 100 % - ------ --- - - ------ --- -

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 March 31, 2019 Net sales as reported $ 28,479 Impact of currency exchange rate fluctuations 910 Net impact of acquisitions excluding currency (2,272 ) - ------- - Adjusted net sales $ 27,117 For the three months ended March 31, 2018 Net sales as reported $ 25,994 Net impact of divestitures excluding currency (736 ) - ------- - Adjusted net sales $ 25,258 - ------- - Adjusted net sales increase for the three months ended March 31, 2019 $ 1,859 7 % - ------- - - - Reconciliation between GAAP and Non-GAAP projected sales growth: For the three months ended June 30, 2019 Net sales per guidance $ 28,840 Impact of currency exchange rate fluctuations 693 Net impact of acquisitions excluding currency (1,500 ) - ------- - Adjusted projected net sales $ 28,033 For the three months ended June 30, 2018 Net sales as reported $ 27,020 Net impact of divestitures excluding currency (51 ) - ------- - Adjusted net sales $ 26,969 - ------- - Adjusted projected net sales increase for the three months ended June 30, $ 1,064 4 % 2019 - ------- - - - Reconciliation between GAAP and Non-GAAP projected sales growth: For the year ended December 31, 2019 Net sales per guidance $ 114,100 Impact of currency exchange rate fluctuations 2,088 Net impact of acquisitions excluding currency (5,417 ) - ------- - Adjusted net sales $ 110,771 For the year ended December 31, 2018 Net sales as reported $ 105,568 Net impact of divestitures excluding currency (787 ) - ------- - Adjusted net sales $ 104,781 - ------- - Adjusted projected net sales increase for the year ended December 31, 2019 $ 5,990 6 % - ------- - - - Reconciliation between GAAP and Non-GAAP operating income: For the three months ended June 30, 2019 Operating income per guidance $ 5,398 Add back restructuring charge 300 - ------- - Adjusted projected operating income $ 5,698 For the three months ended June 30, 2018 Operating income as reported $ 11,541 Impact of gains on acquisitions and divestitures (5,876 ) - ------- - Adjusted operating income $ 5,665 - ------- - Adjusted projected operating income increase for the three $ 33 1 % months ended June 30, 2019 - ------- - - - Reconciliation between GAAP and Non-GAAP projected operating income: For the year ended December 31, 2019 Operating income per guidance $ 21,267 Add back restructuring charge 300 - ------- - Adjusted projected operating income $ 21,567 For the year ended December 31, 2018 Operating income as reported $ 28,209 Impact of gains on acquisitions and divestitures (7,474 ) - ------- - Adjusted operating income $ 20,735 - ------- - Adjusted projected operating income increase for the year ended $ 832 4 % December 31, 2019 - ------- - - - Reconciliation between GAAP and Non-GAAP projected earnings per share: For the three months ended June 30, 2019 Earnings per share per guidance $ 0.21 Add back earnings per share from restructuring charge, net of 0.01 tax - ------- - Adjusted earnings per share $ 0.23 - ------- - For the three months ended June 30, 2018 Earnings per share as reported $ 0.43 Less earnings per share from gains on acquisitions and (0.22 ) divestitures, net of tax - ------- - Adjusted earnings per share $ 0.21 - ------- - Adjusted projected earnings per share increase for the three $ 0.01 6 % months ended June 30, 2019 - ------- - - - Reconciliation between GAAP and Non-GAAP projected earnings per share: For the year ended December 31, 2019 Earnings per share per guidance $ 0.84 Add back earnings per share from restructuring charge, net of 0.01 tax - ------- - Adjusted earnings per share $ 0.85 - ------- - For the year ended December 31, 2018 Earnings per share as reported $ 1.13 Less earnings per share from gains on acquisitions and (0.30 ) divestitures, net of tax - ------- - Adjusted earnings per share $ 0.84 - ------- - Adjusted projected earnings per share increase for the year $ 0.01 2 % ended December 31, 2019 - ------- - - - For the For the three months twelve ended months ended ------------------------ ---------- March 31, March 31, March 31, 2019 2018 2019 ----------- ----------- ---------- Reconciliation between GAAP and Non-GAAP EBITDA Net income as reported $ 3,513 $ 3,853 $ 22,603 Interest (income) expense, net (157 ) (95 ) (691 ) Amortization and depreciation expense 1,284 1,036 4,572 Provision for income taxes 1,000 1,063 5,438 - ------- - - ------- - - ------ - EBITDA $ 5,640 $ 5,857 $ 31,922 - ------- - - ------- - - ------ - EBITDA percentage increase -4 % - ------- -