BURLINGTON, Mass., Aug. 01, 2024 (GLOBE NEWSWIRE) -- LeMaitre (NASDAQ:LMAT), a provider of vascular devices, implants and services, today reported Q2 2024 results, announced a $0.16/share quarterly dividend and provided guidance.

Q2 2024 Financial Results

Sales $55.8mm, +11% (+12% organic) vs. Q2 2023
Gross margin 68.9%, +490 bps
Op. income $14.4mm, +52%
Op. margin 26%
Net income $11.8mm, +46%
Earnings per diluted share $0.52, +44%
Cash up $4.8mm sequentially to $113.1mm

Allografts (+30%), bovine patches (+12%) and carotid shunts (+22%) led Q2 sales growth. APAC sales increased 20%, EMEA 13% and the Americas 10%.

The gross margin increased to 68.9% (vs. 64.0% in Q2 2023), driven by manufacturing efficiencies and higher average selling prices.

Operating income of $14.4mm was up 52% vs. Q2 2023. Operating expenses grew 6% year-over-year due to restrained headcount growth and reduced regulatory spending. 144 sales reps were on staff at quarter end.

Chairman/CEO George LeMaitre said, "2024 is shaping up to be another year of healthy sales and profit growth. Increased guidance now implies a 23% op. margin in 2024, vs. 19% in 2023."

Business Outlook

	Q3 2024 Guidance	Full Year 2024 Guidance
Sales	$52.7mm - $54.7mm (Mid: $53.7mm, +13%, +14% Org.)	$216.8mm - $220.8mm (Mid: $218.8mm, +13%, + 13% Org.)
Gross Margin	68.0%	68.4%
Op. Income	$11.3mm - $12.7mm (Mid: $12.0mm, +31%)	$49.7mm - $52.5mm (Mid $51.1mm, +39%) (Mid: $51.1mm, +37% Ex-Special)*
Op. Margin (Mid)	22%	23%
EPS	$0.42 - $0.46 (Mid: $0.44, +32%)	$1.82 - $1.91 (Mid: $1.86, +39%) (Mid: $1.86, +37% Ex-Special)*

*Special charges in 2023 were related to the St. Etienne factory closure.

Quarterly Dividend

On July 25, 2024, the Company's Board of Directors approved a quarterly dividend of $0.16/share of common stock. The dividend will be paid on August 29, 2024, to shareholders of record on August 15, 2024.

Share Repurchase Program

On February 21, 2024, the Company's Board of Directors authorized the repurchase of up to $50.0mm of the Company's common stock. The repurchase program may be suspended or discontinued at any time and will conclude on February 21, 2025, 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 to 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 sales, 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, companies that develop products or services that may impact the use of our products such as drugs to treat diabetes or weight loss; the risks from competition from other companies; 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.; risks related to product demand and market acceptance of the Company's products and pricing; risks from implementing a new enterprise resource planning system; the risk of significant fluctuations in our quarterly and annual results due to numerous factors; the risk that we may not be able to maintain our recent levels of profitability; our reliance on sole source suppliers; disruptions or breaches of information technology systems; 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; the acceleration or deceleration of product growth rates; 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, 2024			December 31, 2023
		(unaudited)
Assets

Current assets:
	Cash and cash equivalents	$	22,268		$	24,269
	Short-term marketable securities		90,831			80,805
	Accounts receivable, net		30,822			25,064
	Inventory and other deferred costs		63,673			58,080
	Prepaid expenses and other current assets		5,217			6,380
Total current assets			212,811			194,598

Property and equipment, net			23,117			21,754
Right-of-use leased assets			17,294			18,027
Goodwill			65,945			65,945
Other intangibles, net			38,767			41,711
Deferred tax assets			1,028			1,003
Other assets			4,117			3,740

Total assets		$	363,079		$	346,778


Liabilities and stockholders' equity

Current liabilities:
	Accounts payable	$	1,995		$	3,734
	Accrued expenses		20,785			23,650
	Acquisition-related obligations		75			24
	Lease liabilities - short-term		2,591			2,471
Total current liabilities			25,446			29,879

Lease liabilities - long-term			15,818			16,624
Deferred tax liabilities			104			107
Other long-term liabilities			2,179			2,268
Total liabilities			43,547			48,878

Stockholders' equity
	Common stock		240			239
	Additional paid-in capital		208,689			200,755
	Retained earnings		129,961			115,430
	Accumulated other comprehensive loss		(5,094	)		(4,625	)
	Treasury stock		(14,264	)		(13,899	)
Total stockholders' equity			319,532			297,900

Total liabilities and stockholders' equity		$	363,079		$	346,778

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, 2024			June 30, 2023		June 30, 2024			June 30, 2023

Net sales		$	55,849		$	50,115	$	109,327		$	97,190
Cost of sales			17,381			18,029		34,194			34,221

Gross profit			38,468			32,086		75,133			62,969

Operating expenses:
	Sales and marketing		10,984			10,216		22,670			21,113
	General and administrative		8,820			7,722		17,833			15,654
	Research and development		4,284			4,516		8,376			8,391
	Restructuring		-			180		-			485
Total operating expenses			24,088			22,634		48,879			45,643

Income from operations			14,380			9,452		26,254			17,326

Other income (expense):
	Interest income		1,137			682		2,138			1,250
	Foreign currency gain (loss)		(11	)		185		(89	)		(240	)

Income before income taxes			15,506			10,319		28,303			18,336

Provision for income taxes			3,680			2,221		6,590			4,198

Net income		$	11,826		$	8,098	$	21,713		$	14,138

Earnings per share of common stock
	Basic	$	0.53		$	0.36	$	0.97		$	0.64
	Diluted	$	0.52		$	0.36	$	0.96		$	0.63

Weighted - average shares outstanding:
	Basic		22,458			22,213		22,412			22,162
	Diluted		22,725			22,451		22,657			22,371


Cash dividends declared per common share		$	0.16		$	0.14	$	0.32		$	0.28


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, 2024				June 30, 2023				June 30, 2024				June 30, 2023
		$		%		$		%		$		%		$		%
Net Sales by Geography
	Americas	$	36,907	66	%	$	33,507	67	%	$	72,152	66	%	$	65,633	67	%
	Europe, Middle East and Africa		15,298	27	%		13,580	27	%		29,693	27	%		25,857	27	%
	Asia Pacific		3,644	7	%		3,028	6	%		7,482	7	%		5,700	6	%
Total Net Sales		$	55,849	100	%	$	50,115	100	%	$	109,327	100	%	$	97,190	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, 2024			June 30, 2023			June 30, 2024			June 30, 2023
Reconciliation between GAAP and Non-GAAP EBITDA
	Net income as reported	$	11,826		$	8,098		$	21,713		$	14,138
	Interest income		(1,137	)		(682	)		(2,138	)		(1,250	)
	Amortization and depreciation expense		2,384			2,326			4,766			4,677
	Provision for income taxes		3,680			2,221			6,590			4,198

	EBITDA	$	16,753		$	11,963		$	30,931		$	21,763

	EBITDA percentage increase					40	%					42	%


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, 2024
		Net sales as reported	$	55,849
		Net distribution sales (non-organic)		(348	)
		Impact of currency exchange rate fluctuations		394
		Adjusted net sales				$	55,895

	For the three months ended June 30, 2023
		Net sales as reported	$	50,115
		Adjusted net sales				$	50,115

		Adjusted net sales increase for the three months ended June 30, 2024				$	5,780	12%


Reconciliation between GAAP and Non-GAAP projected sales growth:
	For the three months ending September 30, 2024
		Net sales per guidance (midpoint)	$	53,710
		Impact of currency exchange rate fluctuations		238
		Adjusted projected net sales				$	53,948

	For the three months ended September 30, 2023
		Net sales as reported	$	47,411
		Adjusted net sales				$	47,411

		Adjusted projected net sales increase for the three months ending September 30, 2024				$	6,537	14%


Reconciliation between GAAP and Non-GAAP projected sales growth:
	For the year ending December 31, 2024
		Net sales per guidance (midpoint)	$	218,847
		Net distribution sales (non-organic)		(1,612	)
		Impact of currency exchange rate fluctuations		450
		Adjusted projected net sales				$	217,685

	For the year ended December 31, 2023
		Net sales as reported	$	193,484
		Adjusted net sales				$	193,484

		Adjusted projected net sales increase for the year ending December 31, 2024				$	24,201	13%


Reconciliation between GAAP and Non-GAAP projected operating income:
	For the year ending December 31, 2024
		Operating income per guidance (midpoint)	$	51,096
		Adjusted projected operating income				$	51,096

	For the year ended December 31, 2023
		Operating income as reported	$	36,712
		Impact of special charge		485
		Adjusted operating income				$	37,197

		Adjusted projected operating income increase for the year ending December 31, 2024				$	13,899	37%


Reconciliation between GAAP and Non-GAAP projected EPS:
	For the year ending December 31, 2024
		EPS per guidance (midpoint)	$	1.86
		Adjusted EPS				$	1.86

	For the year ended December 31, 2023
		EPS as reported	$	1.34
		Impact of special charge		0.02
		Adjusted EPS				$	1.36

		Adjusted projected EPS increase for the year ending December 31, 2024				$	0.50	37%

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

LeMaitre Q2 2024 Financial Results