BURLINGTON, Mass., Oct. 29, 2008 (GLOBE NEWSWIRE) -- LeMaitre Vascular, Inc. (Nasdaq:LMAT), a provider of peripheral vascular devices and implants, today announced Q3 2008 financial results.
Q3 2008 revenues were $12.0 million, a 19% increase over Q3 2007. Revenues increased 24% in the Company's endovascular and dialysis access category, 17% in vascular and 5% in general surgery. Sales gains were driven by several 2007 acquisitions, the weaker dollar and the launch of the Company's redesigned TAArget/UniFit stent-grafts. International sales accounted for 43% of sales in Q3.
Q3 2008 operating income was $170,000 versus an operating loss of $1.5 million in the year-earlier quarter. This improvement was due in large part to the 2008 Expense Shave program and associated headcount reductions. Operating expenses fell 13% from $9.1 million in Q3 2007 to $7.9 million in Q3 2008. Sequentially, the Q3 2008 operating profit compares favorably with operating losses of $2.6 million in Q1 2008 and $869,000 in Q2 2008.
George W. LeMaitre, Chairman and CEO, said, "I'm pleased to report our first quarterly operating profit since the IPO, 19% sales growth and our second consecutive cash positive quarter. Our focus on the bottom line and the health of our balance sheet should serve us well in the current market environment."
After taxes and foreign exchange losses, the Company reported a net loss of $136,000 in Q3 2008, or $0.01 per diluted share, versus a net loss of $1.4 million, or $0.09 per diluted share in Q3 2007.
The Company's cash and marketable securities increased by $892,000 during Q3 2008 to $19.2 million. This increase was driven by the reduced net loss and working capital improvements.
The Company reported a gross margin of 67.4% in Q3 2008 versus 74.7% in the year-earlier quarter. This decrease resulted from the inclusion of Biomateriali graft sales in the 2008 quarter, inventory write-offs largely associated with product improvements, and continued strength in the Company's international business, which generally carries a lower gross margin.
Sales and marketing expenses decreased 5% to $4.4 million in Q3 2008 from $4.6 million in Q3 2007. Sales and marketing expenses were 36% of revenue in Q3 2008, compared to 45% of revenue in the year-earlier quarter. The Company ended Q3 2008 with 49 sales representatives.
General and administrative expenses decreased 8% to $2.2 million in Q3 2008 from $2.3 million in Q3 2007, the result of general belt-tightening.
R&D expenses increased 5% to $1.2 million in Q3 2008 from $1.1 million in Q3 2007, as the Company continued to invest in clinical and regulatory personnel, as well as product development. During the third quarter the Company launched its 9 French F3 Pruitt Carotid Shunt and its 5+ Over-the-Wire Embolectomy Catheter.
Separately, in September the Company extended its European distribution agreement with Endologix through December 2010.
Business Outlook
The Company raised the lower end of its 2008 sales guidance to $48.6-$48.8 million from $48.3-$48.8 million, and improved its 2008 operating loss guidance to $3.1 million from $4.3 million previously. The Company plans to provide 2009 top- and bottom-line guidance as foreign exchange visibility improves. The Company's guidance does not include the impact of any future acquisitions, significant distributor terminations or material currency fluctuations.
Conference Call Reminder
Management will conduct a conference call at 5:00 p.m. EDT today to review the Company's financial results and discuss its business outlook for 2008. The conference call will be broadcast live over the Internet. Individuals who are interested in listening to the webcast should log on to the Company's website at www.lemaitre.com/investor. The conference call may also be accessed by dialing 866-578-5801 (+1-617-213-8058 for international callers), using passcode 64102843. For interested individuals unable to join the live conference call, a replay will be available on the Company's website.
About LeMaitre Vascular
LeMaitre Vascular is a provider of devices for the treatment of peripheral vascular disease. The Company develops, manufactures and markets disposable and implantable vascular devices to address the needs of vascular surgeons. The Company's devices are used to treat peripheral vascular disease; a condition that the Company estimates affects more than 20 million people worldwide.
Well-known to vascular surgeons, the Company's diversified product portfolio consists of brand name devices that are used in arteries and veins outside of the heart including the Expandable LeMaitre Valvulotome, the Pruitt-Inahara Carotid Shunt and the newly-introduced TAArget Thoracic Stent Graft.
LeMaitre and the LeMaitre Vascular logo are registered trademarks of LeMaitre Vascular, Inc. This press release contains other trademarks and trade names of the Company and third parties.
For more information about the Company, please visit http://www.lemaitre.com.
Forward-Looking Statements
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. Specifically, statements regarding the Company's financial guidance for 2008 are forward-looking statements involving risks and uncertainties. The Company's third quarter 2008 financial results, as discussed in this release, are preliminary and unaudited, and subject to adjustment. 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 predicted. These risks and uncertainties include, but are not limited to, the risk that the Company does not achieve profitability or generate sufficient operating scale to maintain profitability; the potential for encountering unfavorable foreign currency exchange rate fluctuations; risks related to product demand and market acceptance of the Company's products; the significant competition the Company faces from other companies, technologies, and alternative medical procedures; the Company's ability to realize the anticipated benefits of its acquisitions; the Company's ability to maintain the cost savings that resulted from its recent cost-cutting initiatives; the possibility that the Company's new products may fail to provide the desired safety and efficacy or may not be accepted by the market for other reasons; the Company's ability to expand its product offerings through internal development or acquisition; the general uncertainty related to seeking regulatory approvals for the Company's products, particularly in the United States; and the 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, all of which are 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.
Financial Statements
LEMAITRE VASCULAR, INC (NASDAQ: LMAT)
CONDENSED CONSOLIDATED BALANCE SHEETS
(amounts in thousands)
Sept. 30, Dec. 31,
2008 2007
-------- --------
(unaudited)
Assets
Current assets:
Cash and cash equivalents $ 13,163 $ 6,397
Marketable securities 6,000 16,198
Accounts receivable, net 6,788 7,020
Inventories 8,103 9,589
Other current assets 1,906 2,562
-------- --------
Total current assets 35,960 41,766
Property and equipment, net 2,524 2,891
Goodwill 10,922 10,942
Other intangibles, net 3,088 3,886
Other assets 1,077 1,372
-------- --------
Total assets $ 53,571 $ 60,857
======== ========
Liabilities and stockholders' equity
Current liabilities:
Revolving line of credit $ -- $ 262
Accounts payable 814 2,271
Accrued expenses 4,718 6,661
Acquisition-related liabilities 952 851
-------- --------
Total current liabilities 6,484 10,045
Long term debt 40 42
Deferred tax liabilities 1,382 996
Other long-term liabilities 438 1,188
-------- --------
Total liabilities 8,344 12,271
Stockholders' equity
Common stock 157 155
Additional paid-in capital 62,035 61,187
Accumulated deficit (16,506) (12,880)
Accumulated other comprehensive income (255) 291
Less: treasury stock (204) (167)
-------- --------
Total stockholders' equity 45,227 48,586
-------- --------
Total liabilities and stockholders' equity $ 53,571 $ 60,857
======== ========
LEMAITRE VASCULAR, INC (NASDAQ: LMAT)
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
(amounts in thousands, except per share amounts)
(unaudited)
For the three For the nine
months ended months ended
------------------- -------------------
Sept. 30, Sept. 30, Sept. 30, Sept. 30,
2008 2007 2008 2007
-------- -------- -------- --------
Net sales $ 12,023 $ 10,144 $ 36,609 $ 30,342
Cost of sales 3,920 2,563 11,131 7,778
-------- -------- -------- --------
Gross profit 8,103 7,581 25,478 22,564
Operating expenses:
Sales and marketing 4,373 4,583 15,353 14,131
General and administrative 2,164 2,341 7,726 6,917
Research and development 1,203 1,144 4,027 3,416
Restructuring charges 163 1,054 1,143 1,059
Impairment charge 30 -- 514 7
-------- -------- -------- --------
Total operating expenses 7,933 9,122 28,763 25,530
-------- -------- -------- --------
Income (loss) from
operations 170 (1,541) (3,285) (2,966)
Other income:
Interest income, net 26 359 292 1,054
Other (loss) income, net (255) 221 (91) 275
-------- -------- -------- --------
Total other (loss)
income, net (229) 580 201 1,329
-------- -------- -------- --------
Loss before income taxes (59) (961) (3,084) (1,637)
Provision for income taxes 77 393 542 119
-------- -------- -------- --------
Net loss $ (136) $ (1,354) $ (3,626) $ (1,756)
======== ======== ======== ========
Net loss per share of
common stock:
Basic $ (0.01) $ (0.09) $ (0.23) $ (0.11)
======== ======== ======== ========
Diluted $ (0.01) $ (0.09) $ (0.23) $ (0.11)
======== ======== ======== ========
Weighted average shares
outstanding:
Basic 15,608 15,410 15,552 15,376
======== ======== ======== ========
Diluted 15,608 15,410 15,552 15,376
======== ======== ======== ========
LEMAITRE VASCULAR, INC (NASDAQ: LMAT)
SELECTED NET SALES INFORMATION
(amounts in thousands)
(unaudited)
For the three months ended
-------------------------------------
Sept. 30, 2008 Sept. 30, 2007
----------------- -----------------
$ % $ %
------- ------- ------- -------
Net Sales by Product Category:
------------------------------
Endovascular & Dialysis $ 3,966 33% $ 3,211 32%
Vascular 6,987 58% 5,982 59%
General Surgery 1,000 8% 951 9%
------- ------- ------- -------
11,953 99% 10,144 100%
OEM 70 1% --
------- ------- ------- -------
Total Net Sales $12,023 100% $10,144 100%
======= ======= ======= =======
Net Sales by Geography
----------------------
United States and Canada $ 6,805 57% $ 6,236 61%
Outside the United States
and Canada 5,218 43% 3,908 39%
------- ------- ------- -------
$12,023 100% $10,144 100%
======= ======= ======= =======
For the nine months ended
-------------------------------------
Sept. 30, 2008 Sept. 30, 2007
----------------- -----------------
$ % $ %
------- ------- ------- -------
Net Sales by Product Category:
------------------------------
Endovascular & Dialysis $11,836 32% $10,256 34%
Vascular 21,600 59% 17,216 57%
General Surgery 2,926 8% 2,870 9%
------- ------- ------- -------
36,362 99% 30,342 100%
OEM 247 1% --
------- ------- ------- -------
Total Net Sales $36,609 100% $30,342 100%
======= ======= ======= =======
Net Sales by Geography
----------------------
United States and Canada $20,061 55% $18,232 60%
Outside the United States
and Canada 16,548 45% 12,110 40%
------- ------- ------- -------
$36,609 100% $30,342 100%
======= ======= ======= =======
LEMAITRE VASCULAR, INC (NASDAQ: LMAT)
NON-GAAP FINANCIAL MEASURES
(amounts in thousands)
(unaudited)
For the three For the nine
months ended months ended
---------------------------------------
Sept. 30, Sept. 30, Sept. 30, Sept. 30,
2008 2007 2008 2007
------- ------- ------- -------
Reconciliation between GAAP
and Non-GAAP operating
loss:
Operating income (loss)
as reported $ 170 $(1,541) $(3,285) $(2,966)
Restructuring charges 163 1,054 1,143 1,059
Impairment 30 0 514 7
------- ------- ------- -------
Adjusted operating
income (loss) $ 363 $ (487) $(1,628) $(1,900)
======= ======= ======= =======
LEMAITRE VASCULAR, INC (NASDAQ: LMAT)
IMPACT OF FOREIGN CURRENCY AND BUSINESS ACTIVITIES
(amounts in thousands)
(unaudited)
-----------------------------------------------------
2008 2007
----------------------- ----------------------------
Q3 Q2 Q1 Q4 Q3 Q2 Q1
----------------------- ----------------------------
Total net sales 12,023 12,739 11,847 11,104 10,144 10,315 9,883
Impact of
currency
exchange rate
fluctuations(1) 452 836 674 439 253 267 322
Net impact of
acquisitions,
distributed
sales and
discontinued
products,
excluding
currency
exchange rate
fluctuations(2) 703 929 1,133 1,116 635 567 455
-----------------------------------------------------
-------------------------------
2006
-------------------------------
Q4 Q3 Q2 Q1
-------------------------------
Total net sales 8,757 8,540 8,760 8,571
Impact of
currency
exchange rate
fluctuations(1) 232 135 (1) (287)
Net impact of
acquisitions,
distributed
sales and
discontinued
products,
excluding
currency
exchange rate
fluctuations(2) (252) (383) (107) 37
-------------------------------
(1) Represents the impact of the change in foreign exchange rates
over the corresponding quarter of the prior year based on the
weighted averge exchange rate for each quarter.
(2) Represents the impact of sales of products of acquired businesses
and distributed sales of other manufacturers' products, net of
sales related to discontinued products and other activities,
based on 12 months' sales following the date of the event or
transaction, and shown in the current period only.