BURLINGTON, Mass., Aug. 01, 2023 (GLOBE NEWSWIRE) -- LeMaitre (NASDAQ:LMAT), a provider of vascular devices, implants and services, today reported Q2 2023 results, announced a $0.14/share quarterly dividend and provided guidance.

Q2 2023 Financial Results

Sales $50.1mm, +19% (+16% organic) vs. Q2 2022
Op. income $9.5mm, +63% (+8% adjusted)
Op. margin 19%
Net income $8.1mm, +130% (+27% adjusted)
Earnings per diluted share $0.36, +127% (+25% adjusted)
Cash up $9.2mm to $90.2mm

Bovine patches (+16%), valvulotomes (+18%), bovine grafts (+13%), carotid shunts (+22%) and allografts (+18%) drove Q2 sales. EMEA was up 26%, APAC 21% and the Americas 16%.

The gross margin decreased to 64.0% in Q2 (vs. 66.0% in Q2 2022), driven by manufacturing inefficiencies and distribution sales of porcine patches, partially offset by price increases.

Operating income of $9.5mm was up 63% vs. Q2 2022. Excluding St. Etienne factory closure charges, operating income was up 8%. Operating expenses (excluding St. Etienne charges) grew 19% due to sales rep growth and higher commissions, as well as CE-related regulatory costs.

George LeMaitre, Chairman and CEO, said "16% organic sales growth and 25% adjusted EPS growth was a result of increased hospital procedures and our 9% price increase. In retrospect, our 2022 hiring surge seems well-timed."

Business Outlook

	Q3 2023 Guidance	Q4 2023 Guidance	Full Year 2023 Guidance
Sales	$46.5mm - $48.9mm (Mid: $47.7mm, +22%, +16% Org.)	$49.3mm - $51.7mm (Mid: $50.5mm, +23%, +17% Org.)	$193.0mm - $197.8mm (Mid: $195.4mm, +21%, +18% Org.)
Gross Margin	64.3%	64.6%	64.6%
Op. Inc.	$7.4mm - $8.9mm (Mid: $8.2mm, +33%)	$8.7mm - $10.2mm (Mid: $9.4mm, +36%)	$33.4mm - $36.5mm (Mid $34.9mm, +30%)
Op. Inc. Ex-Special*	-	-	$33.9mm - $37.0mm (Mid $35.4mm, +18%)
EPS	$0.28 - $0.33 (Mid: $0.31, +24%)	$0.32 - $0.38 (Mid: $0.35, +39%)	$1.23 - $1.34 (Mid: $1.28, +38%)
EPS Ex-Special*	-	-	$1.25 - $1.35 (Mid: $1.30, +22%)

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

Quarterly Dividend

On July 25, 2023, the Company's Board of Directors approved a quarterly dividend of $0.14/share of common stock. The dividend will be paid on August 31, 2023 to shareholders of record on August 17, 2023.

Share Repurchase Program

On February 21, 2023, the Company's Board of Directors authorized the repurchase of up to $25.0mm of the Company's common stock. The repurchase program may be suspended or discontinued at any time and will conclude on February 21, 2024, 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.; 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)


		June 30, 2023			December 31, 2022
		(unaudited)
Assets

Current assets:
	Cash and cash equivalents	$	19,488		$	19,134
	Short-term marketable securities		70,689			63,557
	Accounts receivable, net		26,406			22,040
	Inventory and other deferred costs		53,831			50,271
	Prepaid expenses and other current assets		4,076			6,731
Total current assets			174,490			161,733

Property and equipment, net			21,217			17,901
Right-of-use leased assets			15,804			15,634
Goodwill			65,945			65,945
Other intangibles, net			43,999			46,527
Deferred tax assets			2,081			1,745
Other assets			2,931			991

Total assets		$	326,467		$	310,476


Liabilities and stockholders' equity

Current liabilities:
	Accounts payable	$	3,519		$	2,903
	Accrued expenses		19,327			19,967
	Acquisition-related obligations		651			573
	Lease liabilities - short-term		2,358			1,886
Total current liabilities			25,855			25,329

Lease liabilities - long-term			14,449			14,710
Deferred tax liabilities			72			69
Other long-term liabilities			2,264			2,167
Total liabilities			42,640			42,275

Stockholders' equity
	Common stock		239			237
	Additional paid-in capital		196,941			189,268
	Retained earnings		105,696			97,773
	Accumulated other comprehensive loss		(5,822	)		(6,031	)
	Treasury stock		(13,227	)		(13,046	)
Total stockholders' equity			283,827			268,201

Total liabilities and stockholders' equity		$	326,467		$	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 six months ended
	June 30, 2023		June 30, 2022			June 30, 2023			June 30, 2022

Net sales	$	50,115	$	42,108		$	97,190		$	81,669
Cost of sales		18,029		14,298			34,221			27,897

Gross profit		32,086		27,810			62,969			53,772

Operating expenses:
Sales and marketing		10,216		8,242			21,113			16,092
General and administrative		7,722		7,331			15,654			14,583
Research and development		4,516		3,346			8,391			6,278
Restructuring		180		3,107			485			3,107
Total operating expenses		22,634		22,026			45,643			40,060

Income from operations		9,452		5,784			17,326			13,712

Other income (expense):
Interest income		682		167			1,250			275
Foreign currency gain (loss)		185		(403	)		(240	)		(443	)

Income before income taxes		10,319		5,548			18,336			13,544

Provision for income taxes		2,221		2,033			4,198			3,991

Net income	$	8,098	$	3,515		$	14,138		$	9,553

Earnings per share of common stock
Basic	$	0.36	$	0.16		$	0.64		$	0.44
Diluted	$	0.36	$	0.16		$	0.63		$	0.43

Weighted - average shares outstanding:
Basic		22,213		21,958			22,162			21,947
Diluted		22,451		22,129			22,371			22,115


Cash dividends declared per common share	$	0.140	$	0.125		$	0.280		$	0.250


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, 2023			June 30, 2022			June 30, 2023			June 30, 2022
		$		%	$		%	$		%	$		%
Net Sales by Geography
	Americas	$	33,507	67%	$	28,854	69%	$	65,633	67%	$	55,397	68%
	Europe, Middle East and Africa		13,580	27%		10,749	25%		25,857	27%		21,243	26%
	Asia Pacific		3,028	6%		2,505	6%		5,700	6%		5,029	6%
Total Net Sales		$	50,115	100%	$	42,108	100%	$	97,190	100%	$	81,669	100%


LEMAITRE VASCULAR, INC (NASDAQ:LMAT)
NON-GAAP FINANCIAL MEASURES
(amounts in thousands)
(unaudited)

		For the three months ended						For the six months ended
		June 30, 2023			June 30, 2022			June 30, 2023			June 30, 2022
Reconciliation between GAAP and Non-GAAP EBITDA
	Net income as reported	$	8,098		$	3,515		$	14,138		$	9,553
	Interest (income) expense, net		(682	)		(167	)		(1,250	)		(275	)
	Amortization and depreciation expense		2,326			2,444			4,677			4,817
	Provision for income taxes		2,221			2,033			4,198			3,991

	EBITDA	$	11,963		$	7,825		$	21,763		$	18,086

	EBITDA percentage increase					53	%					20	%


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, 2023
		Net sales as reported	$	50,115
		Net distribution sales		(1,233	)
		Impact of currency exchange rate fluctuations		12
		Adjusted net sales				$	48,894

	For the three months ended June 30, 2022
		Net sales as reported	$	42,108
		Adjusted net sales				$	42,108

		Adjusted net sales increase for the three months ended June 30, 2023				$	6,786	16%


Reconciliation between GAAP and Non-GAAP operating income growth:
	For the three months ended June 30, 2023
		Operating income as reported	$	9,452
		Impact of special charge		180
		Adjusted operating income				$	9,632

	For the three months ended June 30, 2022
		Operating income as reported	$	5,784
		Impact of special charge		3,107
		Adjusted operating income				$	8,891

		Adjusted operating income increase for the three months ended June 30, 2023				$	741	8%


Reconciliation between GAAP and Non-GAAP net income growth:
	For the three months ended June 30, 2023
		Net income as reported	$	8,098
		Impact of special charge, including tax		134
		Adjusted net income				$	8,232

	For the three months ended June 30, 2022
		Net income as reported	$	3,515
		Impact of special charge, including tax		2,986
		Adjusted net income				$	6,501

		Adjusted net income increase for the three months ended June 30, 2023				$	1,731	27%


Reconciliation between GAAP and Non-GAAP EPS growth:
	For the three months ended June 30, 2023
		EPS as reported	$	0.36
		Impact of special charge, including tax		0.01
		Adjusted EPS				$	0.37

	For the three months ended June 30, 2022
		EPS as reported	$	0.16
		Impact of special charge, including tax		0.13
		Adjusted EPS				$	0.29

		Adjusted EPS increase for the three months ended June 30, 2023				$	0.08	25%


Reconciliation between GAAP and Non-GAAP operating expense growth:
	For the three months ended June 30, 2023
		Operating expenses as reported	$	22,634
		Impact of special charge		(180	)
		Adjusted operating expenses				$	22,454

	For the three months ended June 30, 2022
		Operating expenses as reported	$	22,026
		Impact of special charge		(3,107	)
		Adjusted operating expenses				$	18,919

		Adjusted operating expense increase for the three months ended June 30, 2023				$	3,535	19%


Reconciliation between GAAP and Non-GAAP projected sales growth:
	For the three months ending September 30, 2023
		Net sales per guidance (midpoint)	$	47,707
		Net distribution sales		(1,667	)
		Impact of currency exchange rate fluctuations		(866	)
		Adjusted projected net sales				$	45,174

	For the three months ended September 30, 2022
		Net sales as reported	$	39,028
		Adjusted net sales				$	39,028

		Adjusted projected net sales increase for the three months ending September 30, 2023				$	6,146	16%


Reconciliation between GAAP and Non-GAAP projected sales growth:
	For the three months ending December 31, 2023
		Net sales per guidance (midpoint)	$	50,500
		Net distribution sales		(1,600	)
		Impact of currency exchange rate fluctuations		(1,020	)
		Adjusted projected net sales				$	47,880

	For the three months ended December 31, 2022
		Net sales as reported	$	40,954
		Adjusted net sales				$	40,954

		Adjusted projected net sales increase for the three months ending December 31, 2023				$	6,926	17%


Reconciliation between GAAP and Non-GAAP projected sales growth:
	For the year ending December 31, 2023
		Net sales per guidance (midpoint)	$	195,397
		Net distribution sales		(4,500	)
		Impact of currency exchange rate fluctuations		(824	)
		Adjusted projected net sales				$	190,073

	For the year ended December 31, 2022
		Net sales as reported	$	161,651
		Adjusted net sales				$	161,651

		Adjusted projected net sales increase for the year ending December 31, 2023				$	28,422	18%


Reconciliation between GAAP and Non-GAAP projected operating income:
	For the year ending December 31, 2023
		Operating income per guidance (midpoint)	$	34,917
		Impact of special charge		485
		Adjusted projected operating income				$	35,402

	For the year ended December 31, 2022
		Operating income as reported	$	26,829
		Impact of special charge		3,107
		Adjusted operating income				$	29,936

		Adjusted projected operating income increase for the year ending December 31, 2023				$	5,466	18%


Reconciliation between GAAP and Non-GAAP projected EPS:
	For the year ending December 31, 2023
		EPS per guidance (midpoint)	$	1.28
		Impact of special charge, including tax		0.02
		Adjusted EPS				$	1.30

	For the year ended December 31, 2022
		EPS as reported	$	0.93
		Impact of special charge, including tax		0.13
		Adjusted EPS				$	1.06

		Adjusted projected EPS increase for the year ending December 31, 2023				$	0.24	22%

LeMaitre Q2 2023 Financial Results