LeMaitre Q2 2015 Record Sales $19.9mm (+12% organic), Record Op. Inc. $2.8mm (+41%)

BURLINGTON, Mass., July 28, 2015 (GLOBE NEWSWIRE) -- LeMaitre Vascular, Inc. (Nasdaq:LMAT), a provider of vascular devices, today reported Q2 2015 results, announced a $0.04/share dividend and provided guidance.

Q2 2015 results included:

  • Record sales of $19.9mm, +10% reported (+12% organic) vs. Q2 2014
  • Record operating income of $2.8mm vs. $2.0mm, +41%
  • Operating margin of 14%
  • Net income of $1.8mm vs. $1.3mm, +39%
  • Earnings of $0.10 per diluted share vs. $0.08
  • Record EBITDA of $3.7mm vs. $2.8mm, +31%

Q2 2015 sales of $19.9mm increased 10% (+12% organic) vs. Q2 2014. The HYDRO LeMaitre Valvulotome and the XenoSure patch continued to drive growth. Sales in The Americas increased 11%, while international sales increased 7%. Unit sales increased 21% in Q2 2015.

Gross margin decreased to 66.0% in Q2 2015 from 68.1% in Q2 2014 primarily due to the strong dollar, and lower margin sales from the Omniflow II and angioscope acquisitions as well as the HYDRO.

Operating expenses in Q2 2015 were $10.3mm, down 1% from $10.4mm in the year-earlier quarter. The Company ended Q2 2015 with 81 sales reps vs. 83 at the end of Q2 2014.

“We continue to pursue 10% sales growth and 20% profit growth,” said George W. LeMaitre, Chairman and CEO.

Quarterly Dividend

On July 23, 2015, the Company's Board of Directors approved a quarterly dividend of $0.04/share of common stock. The dividend will be paid September 3, 2015 to shareholders of record on August 20, 2015.

Business Outlook

The Company expects Q3 2015 sales of $18.8mm, a reported increase of 7% vs. Q3 2014. Excluding currency effects, this represents 15% sales growth. Excluding currency effects and acquisitions, this represents 10% sales growth (organic growth). The Company expects Q3 2015 gross margin of 69.0%. The Company also expects Q3 2015 operating income of $2.2mm (12% operating margin), an increase of 19% vs. Q3 2014.

The Company has increased its full-year 2015 sales guidance to $77.3mm, a reported increase of 9% vs. 2014. Excluding currency effects, this represents 16% sales growth. Excluding currency effects and acquisitions, this represents 11% sales growth (organic growth). The Company expects 2015 gross margin of 68.5%. The Company has increased its 2015 operating income guidance to $9.4mm (12% operating margin), an increase of 48% vs. 2014.

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 877-280-4953 (+1 857-244-7310 for international callers), using passcode 26985471. 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 for the treatment of peripheral vascular disease, a condition that affects more than 20 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 2015 and 2015 sales, gross margin and operating income levels. 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; the risk that the XenoSure product is not as accretive and does not achieve the gross margins currently anticipated by the Company; 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, 2015 December 31, 2014
(unaudited)
Assets
Current assets:
Cash and cash equivalents $ 19,430 $ 18,692
Accounts receivable, net 12,242 10,803
Inventory 15,781 16,714
Prepaid expenses and other current assets 2,856 2,379
Total current assets 50,309 48,588
Property and equipment, net 6,610 6,878
Goodwill 17,900 17,281
Other intangibles, net 6,941 7,157
Deferred tax assets 1,309 1,418
Other assets 168 170
Total assets $ 83,237 $ 81,492
Liabilities and stockholders' equity
Current liabilities:
Accounts payable $ 1,293 $ 1,127
Accrued expenses 6,595 7,479
Acquisition-related obligations 1,351 1,435
Total current liabilities 9,239 10,041
Deferred tax liabilities 2,918 2,919
Other long-term liabilities 641 325
Total liabilities 12,798 13,285
Stockholders' equity
Common stock 191 188
Additional paid-in capital 77,053 75,389
Retained earnings 4,979 3,248
Accumulated other comprehensive loss (3,525) (2,365)
Treasury stock (8,259) (8,253)
Total stockholders' equity 70,439 68,207
Total liabilities and stockholders' equity $ 83,237 $ 81,492

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, 2015 June 30, 2014 June 30, 2015 June 30, 2014
Net sales$ 19,897 $ 18,161 $ 38,844 $ 34,915
Cost of sales 6,767 5,785 12,597 11,315
Gross profit 13,130 12,376 26,247 23,600
Operating expenses:
Sales and marketing 5,519 5,537 11,376 11,766
General and administrative 3,303 3,296 6,921 6,611
Research and development 1,331 1,137 2,484 2,481
Medical device excise tax 183 176 363 340
Impairment charges - 161 - 161
Restructuring charges - 89 - 492
Total operating expenses 10,336 10,396 21,144 21,851
Income from operations 2,794 1,980 5,103 1,749
Other income (loss):
Other income (loss), net 30 20 47 (22)
Income before income taxes 2,824 2,000 5,150 1,727
Provision for income taxes 1,057 728 2,014 662
Net income $ 1,767 $ 1,272 $ 3,136 $ 1,065
Earnings per share of common stock
Basic$ 0.10 $ 0.08 $ 0.18 $ 0.07
Diluted$ 0.10 $ 0.08 $ 0.17 $ 0.07
Weighted - average shares outstanding:
Basic 17,582 16,113 17,503 15,852
Diluted 18,065 16,545 17,930 16,290
Cash dividends declared per common share $ 0.040 $ 0.035 $ 0.080 $ 0.070

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, 2015 June 30, 2014 June 30, 2015 June 30, 2014
$ % $ % $ % $ %
Net Sales by Geography
Americas$ 12,371 62% $ 11,123 61% $ 23,954 62% $ 21,464 61%
International 7,526 38% 7,038 39% 14,890 38% 13,451 39%
Total Net Sales$ 19,897 100% $ 18,161 100% $ 38,844 100% $ 34,915 100%

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, 2015
Net sales as reported $ 19,897
Impact of currency exchange rate fluctuations 1,654
Net impact of acquisitions and distributed sales excluding currency (1,313)
Adjusted net sales $ 20,238
For the three months ending June 30, 2014
Net sales as reported $ 18,161
Net impact of divestitures excluding currency (46)
Adjusted net sales $ 18,115
Adjusted net sales increase for the three months ending June 30, 2015 $ 2,123 12%
Reconciliation between GAAP and Non-GAAP sales growth:
For the three months ending September 30, 2015
Net sales per guidance $ 18,800
Impact of currency exchange rate fluctuations 1,370
Net impact of acquisitions and distributed sales excluding currency (875)
Adjusted net sales $ 19,295
For the three months ending September 30, 2014
Net sales as reported $ 17,501
Net impact of divestitures excluding currency (25)
Adjusted net sales $ 17,476
Adjusted net sales increase for the three months ending September 30, 2015 $ 1,819 10%
Reconciliation between GAAP and Non-GAAP sales growth:
For the year ending December 31, 2015
Net sales per guidance $ 77,300
Impact of currency exchange rate fluctuations 5,400
Net impact of acquisitions and distributed sales excluding currency (3,560)
Adjusted net sales $ 79,140
For the year ending December 31, 2014
Net sales as reported $ 71,097
Net impact of divestitures excluding currency (76)
Adjusted net sales $ 71,021
Adjusted net sales increase for the year ending December 31, 2015 $ 8,119 11%
Reconciliation between GAAP and Non-GAAP sales growth - Excluding changes in foreign currency:
For the three months ending September 30, 2015
Net sales per guidance $ 18,800
Impact of currency exchange rate fluctuations 1,370
Adjusted net sales $ 20,170
For the three months ending September 30, 2014
Net sales as reported $ 17,501
Adjusted net sales increase for the three months ending September 30, 2015 $ 2,669 15%
Reconciliation between GAAP and Non-GAAP sales growth - Excluding changes in foreign currency:
For the year ending December 31, 2015
Net sales per guidance $ 77,300
Impact of currency exchange rate fluctuations 5,400
Adjusted net sales $ 82,700
For the year ending December 31, 2014
Net sales as reported $ 71,097
Adjusted net sales increase for the year ending December 31, 2015 $ 11,603 16%
For the three months ended For the six months ended
June 30, 2015 June 30, 2014 June 30, 2015 June 30, 2014
Reconciliation between GAAP and Non-GAAP EBITDA
Net income, as reported $ 1,767 $ 1,272 $ 3,136 $ 1,065
Amortization and depreciation expense 840 789 1,672 1,620
Interest income (4) (2) (4) (3)
Provision for income taxes 1,057 728 2,014 662
EBITDA $ 3,660 $ 2,787 $ 6,818 $ 3,344


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

Source:LeMaitre Vascular, Inc.