lmat20240331

lmat20240331_10q.htm

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM

10-Q

(Mark One)

☒	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2024

☐	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to .

Commission File Number 001-33092

LEMAITRE VASCULAR, INC.

(Exact name of registrant as specified in its charter)

Delaware

04-2825458

(State or other jurisdiction of

incorporation or organization)

(I.R.S. Employer

Identification No.)

63 Second Avenue, Burlington, Massachusetts	01803
(Address of principal executive offices)	(Zip Code)

(781) 221-2266

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Exchange Act:

Title of each class

Trading Symbol(s)

Name of each exchange on which

registered

Common stock, $0.01 par value per share

LMAT

The Nasdaq Global Market

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Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth Company “in Rule 12b-2 of the Exchange Act.

Large accelerated filer	☒	Accelerated filer	☐

Non-accelerated filer	☐	Smaller reporting company	☐

		Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

The registrant had 22,446,109 shares of common stock, $.01 par value per share, outstanding as of May 7, 2024.

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LEMAITRE VASCULAR

FORM 10-Q

TABLE OF CONTENTS

			Page

Part I.	Financial Information:		4

	Item 1.	Financial Statements	4

		Consolidated Balance Sheets as of March 31, 2024 (unaudited) and December 31, 2023	4

		Unaudited Consolidated Statements of Operations for the three-month periods ended March 31, 2024 and 2023	5

		Unaudited Consolidated Statements of Comprehensive Income for the three-month periods ended March 31, 2024 and 2023	6

		Unaudited Consolidated Statements of Stockholders’ Equity for the three-month periods ended March 31, 2024 and 2023	7

		Unaudited Consolidated Statements of Cash Flows for the three-month periods ended March 31, 2024 and 2023	8

		Notes to Unaudited Consolidated Financial Statements	9

	Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	19

	Item 3.	Quantitative and Qualitative Disclosure about Market Risk	27

	Item 4.	Controls and Procedures	27

Part II.	Other Information:		29

	Item 1.	Legal Proceedings	29

	Item 1A.	Risk Factors	29

	Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	29

	Item 5.	Other Information	29

	Item 6.	Exhibits	30

	Signatures		31

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Part I. Financial Information

Item 1. Financial Statements

LeMaitre Vascular, Inc.

Consolidated Balance Sheets

	(unaudited)
	March 31,			December 31,
	2024			2023
	(in thousands, except share data)
Assets
Current assets:
Cash and cash equivalents	$	26,595		$	24,269
Short-term marketable securities		81,693			80,805
Accounts receivable, net of allowances of $1,285 at March 31, 2024 and $941 at December 31, 2023		30,236			25,064
Inventory and other deferred costs		60,575			58,080
Prepaid expenses and other current assets		3,863			6,380
Total current assets		202,962			194,598

Property and equipment, net		22,174			21,754
Right-of-use leased assets		17,795			18,027
Goodwill		65,945			65,945
Other intangibles, net		40,239			41,711
Deferred tax assets		828			1,003
Other assets		4,014			3,740
Total assets	$	353,957		$	346,778
Liabilities and stockholders’ equity
Current liabilities:
Accounts payable	$	3,089		$	3,734
Accrued expenses		21,118			23,650
Acquisition-related obligations		75			24
Lease liabilities - short-term		2,528			2,471
Total current liabilities		26,810			29,879

Lease liabilities - long-term		16,354			16,624
Deferred tax liabilities		114			107
Other long-term liabilities		2,176			2,268
Total liabilities		45,454			48,878

Stockholders’ equity:
Preferred stock, $0.01 par value; authorized 3,000,000 shares; none outstanding		-			-
Common stock, $0.01 par value; authorized 37,000,000 shares; issued 24,036,300 shares at March 31, 2024, and 23,911,760 shares at December 31, 2023		240			239
Additional paid-in capital		206,350			200,755
Retained earnings		121,728			115,430
Accumulated other comprehensive loss		(5,558	)		(4,625	)
Treasury stock, at cost; 1,590,362 shares at March 31, 2024 and 1,584,512 shares at December 31, 2023		(14,257	)		(13,899	)
Total stockholders’ equity		308,503			297,900
Total liabilities and stockholders’ equity	$	353,957		$	346,778

See accompanying notes to consolidated financial statements.

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LeMaitre Vascular, Inc.

Consolidated Statements of Operations

(unaudited)

	Three months ended
	March 31,
	2024			2023
	(in thousands, except per share data)

Net sales	$	53,478		$	47,075
Cost of sales		16,813			16,192

Gross profit		36,665			30,883

Sales and marketing		11,686			10,897
General and administrative		9,013			7,932
Research and development		4,092			3,875
Restructuring		-			305

Total operating expenses		24,791			23,009

Income from operations		11,874			7,874

Other income (expense):
Interest income		1,001			568
Foreign currency loss		(78	)		(425	)

Income before income taxes		12,797			8,017
Provision for income taxes		2,910			1,977

Net income	$	9,887		$	6,040

Earnings per share of common stock:
Basic	$	0.44		$	0.27
Diluted	$	0.44		$	0.27

Weighted-average shares outstanding:
Basic		22,365			22,111
Diluted		22,570			22,274

Cash dividends declared per common share	$	0.160		$	0.140

See accompanying notes to consolidated financial statements.

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LeMaitre Vascular, Inc.

Consolidated Statements of Comprehensive Income

(unaudited)

	Three months ended
	March 31,
	2024			2023
	(in thousands)
Net income	$	9,887		$	6,040
Other comprehensive income (loss):
Foreign currency translation adjustment, net		(831	)		252
Unrealized (loss) gain on short-term marketable securities		(102	)		207
Total other comprehensive income (loss)		(933	)		459

Comprehensive income	$	8,954		$	6,499

See accompanying notes to consolidated financial statements.

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LeMaitre Vascular, Inc.

Consolidated Statements of Stockholders’ Equity

(unaudited)

										Accumulated
					Additional					Other								Total
	Common Stock				Paid-in		Retained			Comprehensive			Treasury Stock					Stockholders’
	Shares		Amount		Capital		Earnings			Income (Loss)			Shares		Amount			Equity

Balance at December 31, 2022		23,655,716	$	237	$	189,268	$	97,773		$	(6,031	)		1,568,595	$	(13,046	)	$	268,201

Net income								6,040											6,040
Other comprehensive income (loss)											459								459
Issuance of common stock for stock options exercised		50,424		1		1,445													1,446
Vested restricted stock units		8,773		-															-
Repurchase of common stock for net settlement of equity awards														3,602		(172	)		(172	)
Stock-based compensation expense						1,290													1,290
Common stock dividend paid								(3,099	)										(3,099	)
Balance at March 31, 2023		23,714,913	$	238	$	192,003	$	100,714		$	(5,572	)		1,572,197	$	(13,218	)	$	274,165

										Accumulated
					Additional					Other								Total
	Common Stock				Paid-in		Retained			Comprehensive			Treasury Stock					Stockholders’
	Shares		Amount		Capital		Earnings			Income (Loss)			Shares		Amount			Equity

Balance at December 31, 2023		23,911,760	$	239	$	200,755	$	115,430		$	(4,625	)		1,584,512	$	(13,899	)	$	297,900

Net income								9,887											9,887
Other comprehensive income (loss)											(933	)							(933	)
Issuance of common stock for stock options exercised		107,930		1		3,985													3,986
Vested restricted stock units		9,547		-															-
Vested performance-based restricted stock units		7,063		-															-
Repurchase of common stock for net settlement of equity awards														5,850		(358	)		(358	)
Stock-based compensation expense						1,610													1,610
Common stock cash dividend paid								(3,589	)										(3,589	)
Balance at March 31, 2024		24,036,300	$	240	$	206,350	$	121,728		$	(5,558	)		1,590,362	$	(14,257	)	$	308,503

See accompanying notes to consolidated financial statements.

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LeMaitre Vascular, Inc.

Consolidated Statements of Cash Flows

(unaudited)

	For the three months ended
	March 31,
	2024			2023
	(in thousands)
Operating activities
Net income	$	9,887		$	6,040
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		2,382			2,351
Stock-based compensation		1,610			1,290
Provision for inventory write-downs		716			334
Provision for credit losses		362			(7	)
Fair value adjustment to contingent consideration obligations		23			25
Loss on divestitures		-			305
Foreign currency effect on net income		(45	)		54
Changes in operating assets and liabilities:
Accounts receivable		(5,750	)		(3,242	)
Inventory and other deferred costs		(3,537	)		(3,755	)
Prepaid expenses and other assets		2,216			1,224
Accounts payable and other liabilities		(2,793	)		(2,340	)

SEC Form 10-Q filed by LeMaitre Vascular Inc.