BURLINGTON, Mass., July 29, 2021 (GLOBE NEWSWIRE) -- LeMaitre (NASDAQ:LMAT), a provider of vascular devices, implants and services, today reported Q2 2021 results, announced an $0.11/share quarterly dividend and provided guidance.

Q2 2021 Financial Results

Sales of $40.7mm, +64% (+35% organic) vs. Q2 2020
Op. income of $11.1mm, +128%
Op. margin of 27%
Net income of $8.3mm, +137%
Earnings of $0.40 per diluted share, +131%
EBITDA of $13.3mm, +108%

Q2 2021 sales were driven by Artegraft ($6.7mm), valvulotomes, carotid shunts, patches and allografts. By geography, the Americas was up 83%, Europe/Middle East/Africa +36% and Asia/Pac +30%.

The gross margin decline to 65.8% (vs. 68.5% in Q2 2020) was driven by changes in product mix, manufacturing inefficiencies from 2020 personnel reductions, and inventory write-downs.

Q2 2021 op. income increased 128% to $11.1mm in Q2 2021, more than 1/3 of which was contributed by Artegraft. Op. income was also up due to restrained headcount growth.

On July 16 2021, the Company completed a $54.5mm follow-on public stock offering. $23.0mm of the net proceeds were used to repay long-term debt, with the remainder to be used for general corporate purposes.

George LeMaitre, Chairman and CEO, said, "The addition of Artegraft and restrained op. expenses increased profits 128%."

Business Outlook

Item	Q3 2021 Guidance	Q4 2021 Guidance	FY 2021 Guidance
Sales	$38.3mm - $40.3mm (Midpoint: $39.3, +8%)	$39.3mm - $41.3mm (Midpoint: $40.3, +7%)	$154.1mm - $158.1mm (Midpoint: $156.1, +21%)
Gross Margin	66.6%	67.5%	66.6%
Op. Income	$9.3mm - $10.6mm (Midpoint: $10.0mm, -1%)	$9.3mm - $10.7mm (Midpoint: $10.0mm, +5%)	$37.7mm - $40.4mm (Midpoint: $39.0mm, +36%)
EPS	$0.30 - $0.35 (Midpoint: $0.33, -11%)	$0.33 - $0.38 (Midpoint: $0.35, +4%)	$1.30 - $1.40 (Midpoint: $1.35, +30%)

Quarterly Dividend

On July 22, 2021, the Company's Board of Directors approved a quarterly dividend of $0.11/share of common stock. The dividend will be paid on September 9, 2021 to shareholders of record on August 26, 2021.

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. The conference call may also be accessed by dialing 844-239-5284 (+1 512-961-6497 for international callers), using passcode 1899078. 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 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 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.


LEMAITRE VASCULAR, INC. (NASDAQ:LMAT)
CONDENSED CONSOLIDATED BALANCE SHEETS
(amounts in thousands)


		June 30, 2021			December 31, 2020
		(unaudited)
Assets

Current assets:
	Cash and cash equivalents	$	21,541		$	26,764
	Short-term marketable securities		215			214
	Accounts receivable, net		20,741			19,552
	Inventory and other deferred costs		44,751			45,115
	Prepaid expenses and other current assets		2,772			2,618
Total current assets			90,020			94,263

Property and equipment, net			15,794			15,036
Right-of-use leased assets			16,244			16,066
Goodwill			65,945			65,945
Other intangibles, net			55,777			58,905
Deferred tax assets			1,649			1,686
Other assets			1,076			909

Total assets		$	246,505		$	252,810


Liabilities and stockholders' equity

Current liabilities:
	Current portion of long-term debt	$	3,000		$	2,500
	Accounts payable		2,059			2,394
	Accrued expenses		13,766			17,525
	Acquisition-related obligations		701			772
	Lease liabilities - short-term		1,954			1,954
Total current liabilities			21,480			25,145

Long-term debt			19,448			35,532
Lease liabilities - long-term			15,069			14,791
Deferred tax liabilities			125			127
Other long-term liabilities			4,550			4,643
Total liabilities			60,672			80,238

Stockholders' equity
	Common stock		222			221
	Additional paid-in capital		119,291			114,924
	Retained earnings		80,253			70,554
	Accumulated other comprehensive loss		(2,243	)		(1,525	)
	Treasury stock		(11,690	)		(11,602	)
Total stockholders' equity			185,833			172,572

Total liabilities and stockholders' equity		$	246,505		$	252,810

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, 2021			June 30, 2020			June 30, 2021			June 30, 2020

Net sales		$	40,670		$	24,851		$	76,553		$	55,402
Cost of sales			13,909			7,822			25,993			17,890

Gross profit			26,761			17,029			50,560			37,512

Operating expenses:
	Sales and marketing		6,803			4,686			13,269			12,631
	General and administrative		6,200			5,332			12,744			10,523
	Research and development		2,652			2,139			5,496			5,133

Total operating expenses			15,655			12,157			31,509			28,287

Income from operations			11,106			4,872			19,051			9,225

Other income (expense), net
	Interest income		1			74			2			179
	Interest expense		(495	)		(66	)		(1,072	)		(66	)
	Foreign currency gain (loss)		(157	)		(113	)		(33	)		(291	)

Income before income taxes			10,455			4,767			17,948			9,047

Provision for income taxes			2,156			1,267			3,720			2,373

Net income		$	8,299		$	3,500		$	14,228		$	6,674

Earnings per share of common stock
	Basic	$	0.40		$	0.17		$	0.69		$	0.33
	Diluted	$	0.40		$	0.17		$	0.68		$	0.33

Weighted - average shares outstanding:
	Basic		20,611			20,180			20,579			20,174
	Diluted		20,959			20,399			20,900			20,415


Cash dividends declared per common share		$	0.110		$	0.095		$	0.220		$	0.190


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, 2021				June 30, 2020				June 30, 2021				June 30, 2020
		$		%		$		%		$		%		$		%
Net Sales by Geography
	Americas	$	27,329	67	%	$	14,942	60	%	$	51,028	67	%	$	33,278	60	%
	Europe/Middle East/Africa		10,803	27	%		7,950	32	%		20,665	27	%		18,300	33	%
	Asia/Pacific Rim		2,538	6	%		1,959	8	%		4,860	6	%		3,824	7	%
Total Net Sales		$	40,670	100	%	$	24,851	100	%	$	76,553	100	%	$	55,402	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 June 30, 2021
		Net sales as reported	$	40,670
		Impact of currency exchange rate fluctuations		(1,186	)
		Net impact of acquisitions excluding currency		(5,982	)
		Adjusted net sales				$	33,502

	For the three months ended June 30, 2020
		Net sales as reported	$	24,851
		Adjusted net sales				$	24,851

		Adjusted net sales increase for the three months ended June 30, 2021				$	8,651			35	%


Reconciliation between GAAP and non-GAAP debt outstanding:
	As of June 30, 2021
		Debt as reported	$	22,448
		Add back unamortized deferred financing costs		552
		Adjusted debt outstanding				$	23,000


			For the three months ended						For the six months ended
			June 30, 2021			June 30, 2020			June 30, 2021			June 30, 2020
Reconciliation between GAAP and Non-GAAP EBITDA
	Net income as reported		$	8,299		$	3,500		$	14,228		$	6,674
	Interest (income) expense, net			494			(8	)		1,070			(113	)
	Amortization and depreciation expense			2,389			1,639			4,777			3,177
	Provision for income taxes			2,156			1,267			3,720			2,373

	EBITDA		$	13,338		$	6,398		$	23,795		$	12,111

	EBITDA percentage increase						108	%					96	%

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

LeMaitre Q2 2021 Financial Results