BURLINGTON, Mass., Feb. 24, 2022 (GLOBE NEWSWIRE) -- LeMaitre (NASDAQ:LMAT), a provider of vascular devices, implants and services, today reported Q4 2021 results, announced a $0.125/share quarterly dividend (+14%) and provided guidance.

Q4 2021 Financial Results

Sales of $39.5mm, +5% (+6% organic) vs. Q4 2020
Op. income of $8.3mm, -13%
Op. margin of 21%
Net income of $6.2mm, -12%
Earnings of $0.28 per diluted share, -18%
Cash and investments +$2.9mm to $70.0mm

Q4 2021 sales were driven by bovine grafts (Artegraft) and bovine patches (XenoSure). The Americas was up 8%, EMEA was up 1%, and Asia/Pac was down 3%.

The gross margin increase to 65.7% (vs. 65.0% in Q4 2020) was driven by higher average selling prices and an improved sales mix.

Op. income decreased 13% to $8.3mm in Q4 2021, driven by a 17% headcount increase as well as higher clinical and regulatory expenses.

George LeMaitre, Chairman and CEO, said, "Despite considerable hiring we produced a Q4 op. margin of 21% and the dividend is now increasing for the 11th straight year."

2021 Financial Results

Sales growth of 19% for full-year 2021 was driven by bovine grafts, valvulotomes, bovine patches and carotid shunts. Op. income and net income both grew 27% in 2021 as sales growth outpaced op. expense growth. 2021 EBITDA of $45.8mm coupled with the follow-on stock offering enabled the final Artegraft acquisition loan pay-down during the year and a record cash balance of $70.0mm at year-end.

Business Outlook

	Q1 2022 Guidance
Sales	$37.7mm - $39.7mm (Mid: $38.7mm, +8%, +10% Org.)
Gross Margin	66.2%
Op. Income	$7.1mm - $8.4mm (Mid: $7.7mm, -3%)
EPS	$0.26 - $0.30 (Mid: $0.28, -1%)

	2022 Full Year Guidance
Sales	$162mm - $166mm (Mid: $164mm, +6%, +8% Org.)
Gross Margin	67.2%
Op. Income	$38.5mm - $41.1mm (Mid: $39.8mm, +9%)
EPS	$1.35 - $1.45 (Mid: $1.40, +12%)

Quarterly Dividend

On February 22, 2022, the Company's Board of Directors approved a quarterly dividend of $0.125/share of common stock. The dividend will be paid on March 24, 2022 to shareholders of record on March 8, 2022.

Share Repurchase Program

On February 22, 2022, the Company's Board of Directors authorized the repurchase of up to $20.0mm of the Company's common stock. The repurchase program may be suspended or discontinued at any time and will conclude on February 22, 2023, 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. The conference call may also be accessed by dialing 800-773-2954 (+1 847-413-3731 for international callers), using passcode 50283055. 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 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.

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, 2021			December 31, 2020
		(unaudited)
Assets

Current assets:
	Cash and cash equivalents	$	13,855		$	26,764
	Short-term marketable securities		56,104			214
	Accounts receivable, net		19,631			19,552
	Inventory and other deferred costs		46,104			45,115
	Prepaid expenses and other current assets		4,189			2,618
Total current assets			139,883			94,263

Property and equipment, net			17,059			15,036
Right-of-use leased assets			15,071			16,066
Goodwill			65,945			65,945
Other intangibles, net			52,710			58,905
Deferred tax assets			1,566			1,686
Other assets			568			909

Total assets		$	292,802		$	252,810


Liabilities and stockholders' equity

Current liabilities:
	Current portion of long-term debt	$	-		$	2,500
	Accounts payable		2,340			2,394
	Accrued expenses		16,332			17,525
	Acquisition-related obligations		1,271			772
	Lease liabilities - short-term		1,870			1,954
Total current liabilities			21,813			25,145

Long-term debt, net			-			35,532
Lease liabilities - long-term			14,067			14,791
Deferred tax liabilities			70			127
Other long-term liabilities			2,701			4,643
Total liabilities			38,651			80,238

Stockholders' equity
	Common stock		235			221
	Additional paid-in capital		181,630			114,924
	Retained earnings		88,125			70,554
	Accumulated other comprehensive loss		(3,435	)		(1,525	)
	Treasury stock		(12,404	)		(11,602	)
Total stockholders' equity			254,151			172,572

Total liabilities and stockholders' equity		$	292,802		$	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 year ended
	December 31, 2021			December 31, 2020			December 31, 2021			December 31, 2020

Net sales	$	39,503		$	37,548		$	154,424		$	129,366
Cost of sales		13,547			13,146			53,042			44,748

Gross profit		25,956			24,402			101,382			84,618

Operating expenses:
Sales and marketing		7,445			5,912			27,655			23,700
General and administrative		6,753			6,076			25,501			22,501
Research and development		3,457			2,869			11,801			10,099
Gain on sale of building		-			-			-			(470	)
Total operating expenses		17,655			14,857			64,957			55,830

Income from operations		8,301			9,545			36,425			28,788

Other income (expense), net
Interest income		141			13			197			207
Interest expense		(526	)		(579	)		(2,219	)		(1,310	)
Foreign currency gain (loss)		(11	)		(48	)		(116	)		(329	)

Income before income taxes		7,905			8,931			34,287			27,356

Provision for income taxes		1,730			1,898			7,380			6,136

Net income	$	6,175		$	7,033		$	26,907		$	21,220

Earnings per share of common stock
Basic	$	0.28		$	0.35		$	1.27		$	1.05
Diluted	$	0.28		$	0.34		$	1.25		$	1.04

Weighted - average shares outstanding:
Basic		21,860			20,380			21,157			20,246
Diluted		22,138			20,621			21,475			20,479


Cash dividends declared per common share	$	0.110		$	0.095		$	0.440		$	0.380

LEMAITRE VASCULAR, INC. (NASDAQ:LMAT)
SELECTED NET SALES INFORMATION
(amounts in thousands)
(unaudited)

		For the three months ended								For the year ended
		December 31, 2021				December 31, 2020				December 31, 2021				December 31, 2020
		$		%		$		%		$		%		$		%
Net Sales by Geography
	Americas	$	25,948	65	%	$	24,002	64	%	$	102,265	66	%	$	81,470	63	%
	Europe, Middle East and Africa		10,932	28	%		10,854	29	%		42,132	27	%		39,193	30	%
	Asia Pacific		2,623	7	%		2,692	7	%		10,027	7	%		8,703	7	%
Total Net Sales		$	39,503	100	%	$	37,548	100	%	$	154,424	100	%	$	129,366	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, 2021
		Net sales as reported	$	39,503
		Impact of currency exchange rate fluctuations		372
		Adjusted net sales			$	39,875

	For the three months ended December 31, 2020
		Net sales as reported	$	37,548
		Adjusted net sales			$	37,548

		Adjusted net sales increase for the three months ended December 31, 2021			$	2,327		6	%


Reconciliation between GAAP and Non-GAAP projected sales growth:
	For the three months ending March 31, 2022
		Net sales per guidance (midpoint)	$	38,740
		Impact of currency exchange rate fluctuations		722
		Adjusted projected net sales			$	39,462

	For the three months ended March 31, 2021
		Net sales as reported	$	35,883
		Adjusted net sales			$	35,883

		Adjusted projected net sales increase for the three months ending March 31, 2022			$	3,579		10	%


Reconciliation between GAAP and Non-GAAP projected sales growth:
	For the year ending December 31, 2022
		Net sales per guidance (midpoint)	$	163,990
		Impact of currency exchange rate fluctuations		2,018
		Adjusted projected net sales			$	166,008

	For the year ended December 31, 2021
		Net sales as reported	$	154,424
		Adjusted net sales			$	154,424

		Adjusted projected net sales increase for the year ending December 31, 2022			$	11,584		8	%


			For the year ended
			December 31, 2021		December 31, 2020
Reconciliation between GAAP and Non-GAAP EBITDA
	Net income as reported		$	26,907	$	21,220
	Interest (income) expense, net			2,022		1,103
	Amortization and depreciation expense			9,475		8,224
	Provision for income taxes			7,380		6,136

	EBITDA		$	45,784	$	36,683

	EBITDA percentage increase (decrease)					25	%

LeMaitre Q4 2021 Financial Results