LeMaitre Q4 2023 Financial Results
LeMaitre (LMAT) reports strong Q4 2023 results with a 19% sales increase, $0.16/share dividend, and positive guidance for 2024. Key financial highlights include a 46% growth in operating income, a 50% increase in net income, and a 49% rise in diluted EPS. The company's gross margin improved to 68.1%, driven by higher selling prices and operational efficiencies. LeMaitre also announced a share repurchase program and a quarterly dividend of $0.16/share.
LeMaitre's Q4 2023 financial results exhibit a robust performance with a 19% increase in sales and a significant 50% rise in net income compared to Q4 2022. The improvement in gross margin to 68.1% reflects successful strategies in pricing and manufacturing efficiencies, which is a notable achievement given the competitive nature of the medical devices industry. The projected operating margin increase from 19% to 21% for the upcoming year suggests a continued focus on operational excellence. However, investors should monitor the 21% increase in operating expenses , as this could potentially impact future margins if not offset by continued revenue growth.
Regionally, LeMaitre's sales growth is well-distributed, with EMEA and the Americas showing robust increases of 21% and 20% respectively, which indicates a strong market presence and acceptance of their products. The APAC region's growth, while lower at 11%, still represents an important foothold in emerging markets. The product-specific growth, particularly the 52% increase in allograft sales , suggests a growing demand for such specialized vascular solutions. It is essential to understand the market trends driving this demand and whether LeMaitre can sustain such growth amidst rising competition and potential market saturation.
The company's focus on niche vascular products such as bovine patches and valvulotomes seems to be paying off, as evidenced by the strong sales figures. The gross margin expansion of 450 basis points is particularly impressive in the medical device sector, where margins are often squeezed by regulatory costs and pricing pressures. The guidance for the next fiscal year, including a steady gross margin and an increase in operating income, suggests that LeMaitre is well-positioned to maintain its profitability. However, the reliance on organic growth to drive future performance warrants attention, as it may require continued innovation and market expansion to maintain the current trajectory.
02/27/2024 - 04:05 PM
BURLINGTON, Mass., Feb. 27, 2024 (GLOBE NEWSWIRE) -- LeMaitre (Nasdaq:LMAT), a provider of vascular devices, implants and services, today reported Q4 2023 results, announced a $0.16 /share quarterly dividend and provided guidance.
Q4 2023 Financial Results
Sales $48.9m m, +19% (+14% organic) vs. Q4 2022 Gross margin 68.1% , +450 bps Op. income $10.2m m, +46% Op. margin 21% Net income $8.5m m, +50% Earnings per diluted share $0.38 , +49% Cash up $8.1m m sequentially to $105.1m m Bovine patches (+18% ), allografts (+52% ), valvulotomes (+12% ), carotid shunts (+16% ) and distributed porcine patches drove Q4 sales. EMEA sales increased 21% , the Americas 20% and APAC 11% .
The gross margin increased to 68.1% in Q4 (vs. 63.6% in Q4 2022) driven primarily by average selling price increases, as well as manufacturing efficiencies.
Operating income of $10.2m m was up 46% vs. Q4 2022. Operating expenses grew 21% year-over-year due to increased sales commissions, other compensation and CE-related regulatory costs.
Chairman/CEO George LeMaitre said, “Our 19% sales growth and gross margin recovery produced 46% op. income growth in Q4. Full year 2024 guidance implies an operating margin of 21% , up from 19% in 2023.”
Business Outlook
Q1 2024 Guidance Full Year 2024 Guidance Sales $50.5m m - $52.9m m$51.7m m, +10% , +7% Org.)$209.7m m - $214.3m m$212.0m m, +10% , +9% Org.)Gross Margin 68.5% 68.0% Op. Income $9.7m m - $11.3m m$10.5m m, +33% )$10.5m m, +28% Ex-Special)*$43.4m m - $46.5m m$45.0m m, +22% )$45.0m m, +21% , Ex-Special)*EPS $0.36 - $0.41 $0.39 , +42% )$0.39 , +37% , Ex-Special)*$1.60 - $1.71 $1.65 , +23% )22% , Ex-Special)*
*Special charges in 2023 are related to the St. Etienne factory closure.
Quarterly Dividend
On February 21, 2024, the Company's Board of Directors approved a quarterly dividend of $0.16 /share of common stock. The dividend will be paid on March 28, 2024 to shareholders of record on March 14, 2024.
Share Repurchase Program
On February 21, 2024, the Company's Board of Directors authorized the repurchase of up to $50.0m m 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.
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.; risks from implementing a new enterprise resource planning system; the risks from competition from other companies; 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 https://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) December 31, 2023 December 31, 2022 (unaudited) Assets Current assets: Cash and cash equivalents $ 24,269 $ 19,134 Short-term marketable securities 80,805 63,557 Accounts receivable, net 25,064 22,040 Inventory and other deferred costs 58,080 50,271 Prepaid expenses and other current assets 6,380 6,731 Total current assets 194,598 161,733 Property and equipment, net 21,754 17,901 Right-of-use leased assets 18,027 15,634 Goodwill 65,945 65,945 Other intangibles, net 41,711 46,527 Deferred tax assets 1,003 1,745 Other assets 3,740 991 Total assets $ 346,778 $ 310,476 Liabilities and stockholders' equity Current liabilities: Accounts payable $ 3,734 $ 2,903 Accrued expenses 23,650 19,967 Acquisition-related obligations 24 573 Lease liabilities - short-term 2,471 1,886 Total current liabilities 29,879 25,329 Lease liabilities - long-term 16,624 14,710 Deferred tax liabilities 107 69 Other long-term liabilities 2,268 2,167 Total liabilities 48,878 42,275 Stockholders' equity Common stock 239 237 Additional paid-in capital 200,755 189,268 Retained earnings 115,430 97,773 Accumulated other comprehensive loss (4,625 ) (6,031 ) Treasury stock (13,899 ) (13,046 ) Total stockholders' equity 297,900 268,201 Total liabilities and stockholders' equity $ 346,778 $ 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 year ended December 31, 2023 December 31, 2022 December 31, 2023 December 31, 2022 Net sales $ 48,883 $ 40,954 $ 193,484 $ 161,651 Cost of sales 15,618 14,900 66,435 56,755 Gross profit 33,265 26,054 127,049 104,896 Operating expenses: Sales and marketing 10,268 8,600 41,054 32,921 General and administrative 8,440 6,933 31,832 28,745 Research and development 4,351 3,554 16,966 13,294 Restructuring - - 485 3,107 Total operating expenses 23,059 19,087 90,337 78,067 Income from operations 10,206 6,967 36,712 26,829 Other income (expense), net Interest income 992 447 3,077 986 Other income (loss), net 115 384 (314 ) (325 ) Income before income taxes 11,313 7,798 39,475 27,490 Provision for income taxes 2,848 2,171 9,370 6,854 Net income $ 8,465 $ 5,627 $ 30,105 $ 20,636 Earnings per share of common stock Basic $ 0.38 $ 0.26 $ 1.36 $ 0.94 Diluted $ 0.38 $ 0.25 $ 1.34 $ 0.93 Weighted - average shares outstanding: Basic 22,278 22,023 22,217 21,975 Diluted 22,459 22,238 22,423 22,171 Cash dividends declared per common share $ 0.140 $ 0.125 $ 0.560 $ 0.500
LEMAITRE VASCULAR, INC. (NASDAQ: LMAT) SELECTED NET SALES INFORMATION (amounts in thousands) (unaudited) For the three months ended For the year ended December 31, 2023 December 31, 2022 December 31, 2023 December 31, 2022 $ % $ % $ % $ % Net Sales by Geography Americas $ 32,812 67 % $ 27,415 67 % $ 130,308 67 % $ 109,439 68 % Europe, Middle East and Africa 12,920 26 % 10,689 26 % 51,099 27 % 41,854 26 % Asia Pacific 3,151 7 % 2,850 7 % 12,077 6 % 10,358 6 % Total Net Sales $ 48,883 100 % $ 40,954 100 % $ 193,484 100 % $ 161,651 100 %
LEMAITRE VASCULAR, INC. (NASDAQ: LMAT) NON-GAAP FINANCIAL MEASURES (amounts in thousands) (unaudited) For the three months ended For the year ended December 31, 2023 December 31, 2022 December 31, 2023 December 31, 2022 Reconciliation between GAAP and Non-GAAP EBITDA Net income as reported $ 8,465 $ 5,627 $ 30,105 $ 20,636 Interest (income) expense, net (992 ) (447 ) (3,077 ) (986 ) Amortization and depreciation expense 2,443 2,288 9,515 9,433 Provision for income taxes 2,848 2,171 9,370 6,854 EBITDA $ 12,764 $ 9,639 $ 45,913 $ 35,937 EBITDA percentage increase (decrease) 32 % 28 %
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, 2023 Net sales as reported $ 48,883 Net distribution sales (1,479 ) Impact of currency exchange rate fluctuations (556 ) Adjusted net sales $ 46,848 For the three months ended December 31, 2022 Net sales as reported $ 40,954 Adjusted net sales $ 40,954 Adjusted net sales increase for the three months ended December 31, 2023 $ 5,894 14 % Reconciliation between GAAP and Non-GAAP projected sales growth: For the three months ending March 31, 2024 Net sales per guidance (midpoint) $ 51,722 Net distribution sales (1,247 ) Impact of currency exchange rate fluctuations (35 ) Adjusted projected net sales $ 50,440 For the three months ended March 31, 2023 Net sales as reported $ 47,075 Adjusted net sales $ 47,075 Adjusted projected net sales increase for the three months ending March 31, 2024 $ 3,365 7 % Reconciliation between GAAP and Non-GAAP projected sales growth: For the year ending December 31, 2024 Net sales per guidance (midpoint) $ 212,000 Net distribution sales (1,574 ) Impact of currency exchange rate fluctuations 133 Adjusted projected net sales $ 210,559 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 $ 17,075 9 % Reconciliation between GAAP and Non-GAAP projected operating income: For the three months ending March 31, 2024 Operating income per guidance (midpoint) $ 10,490 Adjusted projected operating income $ 10,490 For the three months ended March 31, 2023 Operating income as reported $ 7,874 Impact of special charge 305 Adjusted operating income $ 8,179 Adjusted projected operating income increase for the three months ending March 31, 2024 $ 2,311 28 % Reconciliation between GAAP and Non-GAAP projected operating income: For the year ending December, 2024 Operating income per guidance (midpoint) $ 44,955 Adjusted projected operating income $ 44,955 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 $ 7,758 21 % Reconciliation between GAAP and Non-GAAP projected EPS: For the three months ending March 31, 2024 EPS per guidance (midpoint) $ 0.39 Adjusted EPS $ 0.39 For the three months ended March 31, 2023 EPS as reported $ 0.27 Impact of special charge, including tax 0.01 Adjusted EPS $ 0.28 Adjusted projected EPS increase for the three months ending March 31, 2024 $ 0.11 37 % Reconciliation between GAAP and Non-GAAP projected EPS: For the year ending December 31, 2024 EPS per guidance (midpoint) $ 1.65 Adjusted EPS $ 1.65 For the year ended December 31, 2023 EPS as reported $ 1.34 Impact of special charge, including tax 0.01 Adjusted EPS $ 1.35 Adjusted projected EPS increase for the year ending December 31, 2024 $ 0.30 22 %
What were LeMaitre's (LMAT) Q4 2023 sales results?
LeMaitre reported Q4 2023 sales of $48.9 million, a 19% increase compared to Q4 2022.
What was the percentage increase in operating income for LeMaitre in Q4 2023?
LeMaitre's operating income grew by 46% in Q4 2023 compared to Q4 2022.
What is the gross margin percentage for LeMaitre in Q4 2023?
LeMaitre's gross margin in Q4 2023 was 68.1%, a 450 basis points increase from Q4 2022.
What was the net income for LeMaitre in Q4 2023?
LeMaitre's net income in Q4 2023 was $8.5 million, a 50% increase from the previous year.
What was the quarterly dividend announced by LeMaitre on February 21, 2024?
LeMaitre announced a quarterly dividend of $0.16 per share of common stock on February 21, 2024.
