Q3 2023 Financial Results
- Sales
$47 .4mm, +21% (+16% organic) vs. Q3 2022 - Gross margin 65.0%, +80 bps
- Op. income
$9 .2mm, +49% - Op. margin 19%
- Net income
$7 .5mm, +38% - Earnings per diluted share
$0.33 , +36% - Cash up
$6 .8mm to$97 .0mm
Bovine patches (+22%), valvulotomes (+27%), bovine grafts (+15%) and carotid shunts (+24%) drove Q3 sales. APAC sales increased 30%, EMEA 24% and the
The gross margin increased to 65.0% in Q3 (vs. 64.2% in Q3 2022) driven largely by price increases.
Operating income of
Business Outlook
Q4 2023 Guidance | Full Year 2023 Guidance | |
Sales | (Mid: | (Mid: |
Gross Margin | 65.0% | 64.9% |
Op. Inc. | (Mid: | (Mid |
Op. Inc. Ex-Special* | - | (Mid |
EPS | (Mid: | (Mid: |
EPS Ex-Special* | - | (Mid: |
*Special charges are related to the St. Etienne factory closure.
Quarterly Dividend
On October 24, 2023, the Company's Board of Directors approved a quarterly dividend of $0.14/share of common stock. The dividend will be paid on November 30, 2023 to shareholders of record on November 16, 2023.
Share Repurchase Program
On
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
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
CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||||
(amounts in thousands) | ||||||||||
(unaudited) | ||||||||||
Assets | ||||||||||
Current assets: | ||||||||||
Cash and cash equivalents | $ | 18,051 | $ | 19,134 | ||||||
Short-term marketable securities | 78,967 | 63,557 | ||||||||
Accounts receivable, net | 23,882 | 22,040 | ||||||||
Inventory and other deferred costs | 56,187 | 50,271 | ||||||||
Prepaid expenses and other current assets | 5,097 | 6,731 | ||||||||
Total current assets | 182,184 | 161,733 | ||||||||
Property and equipment, net | 21,357 | 17,901 | ||||||||
Right-of-use leased assets | 15,850 | 15,634 | ||||||||
65,945 | 65,945 | |||||||||
Other intangibles, net | 43,199 | 46,527 | ||||||||
Deferred tax assets | 2,325 | 1,745 | ||||||||
Other assets | 3,152 | 991 | ||||||||
Total assets | $ | 334,012 | $ | 310,476 | ||||||
Liabilities and stockholders' equity | ||||||||||
Current liabilities: | ||||||||||
Accounts payable | $ | 4,371 | $ | 2,903 | ||||||
Accrued expenses | 21,788 | 19,967 | ||||||||
Acquisition-related obligations | 121 | 573 | ||||||||
Lease liabilities - short-term | 2,749 | 1,886 | ||||||||
Total current liabilities | 29,029 | 25,329 | ||||||||
Lease liabilities - long-term | 14,132 | 14,710 | ||||||||
Deferred tax liabilities | 69 | 69 | ||||||||
Other long-term liabilities | 2,145 | 2,167 | ||||||||
Total liabilities | 45,375 | 42,275 | ||||||||
Stockholders' equity | ||||||||||
Common stock | 239 | 237 | ||||||||
Additional paid-in capital | 198,254 | 189,268 | ||||||||
Retained earnings | 110,081 | 97,773 | ||||||||
Accumulated other comprehensive loss | (6,705 | ) | (6,031 | ) | ||||||
(13,232 | ) | (13,046 | ) | |||||||
Total stockholders' equity | 288,637 | 268,201 | ||||||||
Total liabilities and stockholders' equity | $ | 334,012 | $ | 310,476 | ||||||
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS | ||||||||||||||||
(amounts in thousands, except per share amounts) | ||||||||||||||||
(unaudited) | ||||||||||||||||
For the three months ended | For the nine months ended | |||||||||||||||
Net sales | $ | 47,411 | $ | 39,028 | $ | 144,601 | $ | 120,697 | ||||||||
Cost of sales | 16,596 | 13,958 | 50,817 | 41,855 | ||||||||||||
Gross profit | 30,815 | 25,070 | 93,784 | 78,842 | ||||||||||||
Operating expenses: | ||||||||||||||||
Sales and marketing | 9,673 | 8,229 | 30,786 | 24,321 | ||||||||||||
General and administrative | 7,738 | 7,229 | 23,392 | 21,812 | ||||||||||||
Research and development | 4,224 | 3,462 | 12,615 | 9,740 | ||||||||||||
Restructuring | - | - | 485 | 3,107 | ||||||||||||
Total operating expenses | 21,635 | 18,920 | 67,278 | 58,980 | ||||||||||||
Income from operations | 9,180 | 6,150 | 26,506 | 19,862 | ||||||||||||
Other income (expense): | ||||||||||||||||
Interest income | 835 | 264 | 2,085 | 539 | ||||||||||||
Foreign currency gain (loss) | (189 | ) | (266 | ) | (429 | ) | (709 | ) | ||||||||
Income before income taxes | 9,826 | 6,148 | 28,162 | 19,692 | ||||||||||||
Provision for income taxes | 2,324 | 692 | 6,522 | 4,683 | ||||||||||||
Net income | $ | 7,502 | $ | 5,456 | $ | 21,640 | $ | 15,009 | ||||||||
Earnings per share of common stock | ||||||||||||||||
Basic | $ | 0.34 | $ | 0.25 | $ | 0.97 | $ | 0.68 | ||||||||
Diluted | $ | 0.33 | $ | 0.25 | $ | 0.97 | $ | 0.68 | ||||||||
Weighted - average shares outstanding: | ||||||||||||||||
Basic | 22,263 | 21,984 | 22,196 | 21,959 | ||||||||||||
Diluted | 22,481 | 22,217 | 22,411 | 22,149 | ||||||||||||
Cash dividends declared per common share | $ | 0.140 | $ | 0.125 | $ | 0.420 | $ | 0.375 | ||||||||
SELECTED NET SALES INFORMATION | ||||||||||||||||||||||||
(amounts in thousands) | ||||||||||||||||||||||||
(unaudited) | ||||||||||||||||||||||||
For the three months ended | For the nine months ended | |||||||||||||||||||||||
$ | % | $ | % | $ | % | $ | % | |||||||||||||||||
$ | 31,863 | 67 | % | $ | 26,627 | 68 | % | $ | 97,496 | 67 | % | $ | 82,024 | 68 | % | |||||||||
12,322 | 26 | % | 9,922 | 25 | % | 38,179 | 26 | % | 31,165 | 26 | % | |||||||||||||
3,226 | 7 | % | 2,479 | 7 | % | 8,926 | 7 | % | 7,508 | 6 | % | |||||||||||||
Total | $ | 47,411 | 100 | % | $ | 39,028 | 100 | % | $ | 144,601 | 100 | % | $ | 120,697 | 100 | % | ||||||||
NON-GAAP FINANCIAL MEASURES | |||||||||||||||||||
(amounts in thousands) | |||||||||||||||||||
(unaudited) | |||||||||||||||||||
For the three months ended | For the nine months ended | ||||||||||||||||||
Reconciliation between GAAP and Non-GAAP EBITDA | |||||||||||||||||||
Net income as reported | $ | 7,502 | $ | 5,456 | $ | 21,640 | $ | 15,009 | |||||||||||
Interest (income) expense, net | (835 | ) | (264 | ) | (2,085 | ) | (539 | ) | |||||||||||
Amortization and depreciation expense | 2,395 | 2,328 | 7,072 | 7,145 | |||||||||||||||
Provision for income taxes | 2,324 | 692 | 6,522 | 4,683 | |||||||||||||||
EBITDA | $ | 11,386 | $ | 8,212 | $ | 33,149 | $ | 26,298 | |||||||||||
EBITDA percentage increase | 39 | % | 26 | % | |||||||||||||||
NON-GAAP FINANCIAL MEASURES | |||||||||||||
(amounts in thousands) | |||||||||||||
(unaudited) | |||||||||||||
Reconciliation between GAAP and Non-GAAP sales growth: | |||||||||||||
For the three months ended | |||||||||||||
Net sales as reported | $ | 47,411 | |||||||||||
Net distribution sales | (1,341 | ) | |||||||||||
Impact of currency exchange rate fluctuations | (728 | ) | |||||||||||
Adjusted net sales | $ | 45,342 | |||||||||||
For the three months ended | |||||||||||||
Net sales as reported | $ | 39,028 | |||||||||||
Adjusted net sales | $ | 39,028 | |||||||||||
Adjusted net sales increase for the three months ended | $ | 6,314 | 16 | % | |||||||||
Reconciliation between GAAP and Non-GAAP projected sales growth: | |||||||||||||
For the three months ending | |||||||||||||
Net sales per guidance (midpoint) | $ | 49,000 | |||||||||||
Net distribution sales | (1,341 | ) | |||||||||||
Impact of currency exchange rate fluctuations | (333 | ) | |||||||||||
Adjusted projected net sales | $ | 47,326 | |||||||||||
For the three months ended | |||||||||||||
Net sales as reported | $ | 40,954 | |||||||||||
Adjusted net sales | $ | 40,954 | |||||||||||
Adjusted projected net sales increase for the three months ending | $ | 6,372 | 16 | % | |||||||||
Reconciliation between GAAP and Non-GAAP projected sales growth: | |||||||||||||
For the year ending | |||||||||||||
Net sales per guidance (midpoint) | $ | 193,601 | |||||||||||
Net distribution sales | (3,915 | ) | |||||||||||
Impact of currency exchange rate fluctuations | 3 | ||||||||||||
Adjusted projected net sales | $ | 189,689 | |||||||||||
For the year ended | |||||||||||||
Net sales as reported | $ | 161,651 | |||||||||||
Adjusted net sales | $ | 161,651 | |||||||||||
Adjusted projected net sales increase for the year ending | $ | 28,038 | 17 | % | |||||||||
Reconciliation between GAAP and Non-GAAP projected operating income: | |||||||||||||
For the year ending | |||||||||||||
Operating income per guidance (midpoint) | $ | 36,506 | |||||||||||
Impact of special charge | 485 | ||||||||||||
Adjusted projected operating income | $ | 36,991 | |||||||||||
For the year ended | |||||||||||||
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 | $ | 7,055 | 24 | % | |||||||||
Reconciliation between GAAP and Non-GAAP projected EPS: | |||||||||||||
For the year ending | |||||||||||||
EPS per guidance (midpoint) | $ | 1.33 | |||||||||||
Impact of special charge, including tax | 0.01 | ||||||||||||
Adjusted EPS | $ | 1.34 | |||||||||||
For the year ended | |||||||||||||
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 | $ | 0.28 | 26 | % | |||||||||
CONTACT:J.J. Pellegrino , CFO, LeMaitre 781-425-1691 jjpellegrino@lemaitre.com
Source:
2023 GlobeNewswire, Inc., source