LeMaitre Vascular (LMAT) Q1 2025 Earnings Call May 01, 2025 05:00 PM ET Company Participants Dorian LeBlanc - CFOGeorge LeMaitre - Chairman & CEOShaymus Contorno - Equity Research AssociateDavid Roberts - President & DirectorMichael Petusky - Managing DirectorRick Wise - Managing Director - Medical Technology & SuppliesDaniel Stauder - Director - Equity Research Conference Call Participants Michael Sarcone - AnalystFrank Takkinen - Senior Research AnalystJim Sidoti - AnalystBrett Fishbin - Vice President & ...

LeMaitre Vascular (LMAT) Q1 2025 Earnings Call May 01, 2025 05:00 PM ET Speaker0 Welcome to the Lomate Vascular First Quarter twenty twenty five Financial Results Conference Call. As a reminder, today's call is being recorded. At this time, I would like to turn the call over to Mr. Dorian LeBlanc, Chief Financial Officer of Lemaitre Vascular. Please go ahead, sir. Speaker1 Thank you, operator. Good afternoon, and thank you for joining us on our Q1 twenty twenty five conference call. With me on today's call ...

[Q1 2025 Performance Highlights](index=1&type=section&id=Q1%202025%20Performance%20Highlights) LeMaitre reported strong Q1 2025 results with a 12% increase in sales to $59.9 million, driven by Grafts (+17%) and carotid shunts (+14%), with notable growth in the EMEA region (+18%), while gross margin improved to 69.2% and diluted EPS increased 10% to $0.48 despite a 16% rise in operating expenses Q1 2025 Key Financial Metrics | Metric | Value | Change (YoY) | | :--- | :--- | :--- | | Sales (in millions) | $59.9 | +12% (+13% organic) | | Gross Margin (%) | 69.2% | +60 bps | | Operating Income (in millions) | $12.6 | +6% | | Operating Margin (%) | 21% | - | | Earnings per Diluted Share (USD) | $0.48 | +10% | | Cash (in millions) | $302.5 | +$2.8 | - Sales growth was primarily driven by **Grafts (+17%)** and **carotid shunts (+14%)** - Geographically, EMEA sales increased by **18%**, the Americas by **11%**, and APAC by **3%**[4](index=4&type=chunk) - The gross margin increased to **69.2%** from **68.6%** in Q1 2024, attributed to higher average selling prices and improved manufacturing efficiencies[4](index=4&type=chunk) - Operating expenses grew by **16%**, largely due to increased personnel expenses, with the company now employing **164 sales representatives** and **34 sales managers**[4](index=4&type=chunk) [Key Business Updates](index=1&type=section&id=Key%20Business%20Updates) The company achieved a significant regulatory milestone with the receipt of the MDR CE Mark for Artegraft, its largest U.S. product, paving the way for its European launch, while concurrently terminating its distribution agreement with Elutia for its porcine patch product - Artegraft, a biologic graft and the company's largest U.S. product with **$37 million** in 2024 U.S. sales, received its MDR CE Mark on April 29, enabling an imminent European launch[5](index=5&type=chunk) - The distribution agreement for the Elutia (formerly Aziyo Biologics) porcine patch was terminated on April 30, with this product having U.S. hospital sales of **$5.0 million** in 2024[5](index=5&type=chunk) [Business Outlook](index=1&type=section&id=Business%20Outlook) Following strong Q1 sales, LeMaitre raised its full-year 2025 guidance, now expecting sales between $242 million and $249 million with 13% organic growth, and projecting Q2 2025 sales of $61.5 million to $63.5 million and diluted EPS of $0.55 to $0.59 - The company increased its 2025 reported sales guidance to a midpoint of **$245 million** (up from **$239 million**) and organic sales growth guidance to **+13%** (up from **10%**)[6](index=6&type=chunk) Q2 2025 and Full Year 2025 Guidance | | Q2 2025 Guidance | Full Year 2025 Guidance | | :--- | :--- | :--- | | **Sales (in millions)** | $61.5 - $63.5 | $242 - $249 | | | (Mid: $62.5, +12%, +12% Org.) | (Mid: $245, +12%, +13% Org.) | | **Gross Margin (%)** | 69.5% | 69.6% | | **Operating Income (in millions)** | $14.6 - $16.0 | $55.1 - $60.3 | | | (Mid: $15.3, +7%) | (Mid: $57.7, +10%) | | **EPS (USD)** | $0.55 - $0.59 | $2.07 - $2.24 | | | (Mid: $0.57, +10%) | (Mid: $2.16, +12%) | [Capital Return Program](index=1&type=section&id=Capital%20Return%20Program) The company continues its commitment to shareholder returns, declaring a quarterly dividend of $0.20 per share and maintaining an active $75.0 million share repurchase program [Quarterly Dividend](index=1&type=section&id=Quarterly%20Dividend) The Board of Directors approved a quarterly cash dividend of $0.20 per share of common stock, an increase from the $0.16 per share dividend in the prior year's quarter, scheduled to be paid on May 29, 2025, to stockholders of record as of May 15, 2025 - A quarterly dividend of **$0.20 per share** was approved on April 29, 2025, payable on May 29, 2025, to stockholders of record on May 15, 2025[7](index=7&type=chunk) [Share Repurchase Program](index=1&type=section&id=Share%20Repurchase%20Program) On February 18, 2025, the Board of Directors authorized a share repurchase program for up to $75.0 million of the company's common stock, set to conclude on February 17, 2026, unless extended, and can be suspended at any time - A share repurchase program of up to **$75.0 million** was authorized on February 18, 2025, and will conclude on February 17, 2026[8](index=8&type=chunk) [Financial Statements](index=4&type=section&id=Financial%20Statements) This section presents the unaudited condensed consolidated financial statements as of March 31, 2025, and for the three months then ended, including the Balance Sheets, Statement of Operations, a geographical breakdown of net sales, and reconciliations of GAAP to non-GAAP financial measures [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of March 31, 2025, the company's total assets stood at $556.0 million, with total liabilities at $208.4 million, cash, cash equivalents, and short-term marketable securities totaling $302.5 million, and total stockholders' equity increasing to $347.6 million from $337.3 million at the end of 2024 Balance Sheet Highlights (in thousands) | Account | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Total current assets** | $408,113 | $402,192 | | **Total assets** | $556,006 | $551,817 | | **Total current liabilities** | $24,745 | $30,607 | | **Total liabilities** | $208,434 | $214,527 | | **Total stockholders' equity** | $347,572 | $337,290 | [Condensed Consolidated Statement of Operations](index=5&type=section&id=Condensed%20Consolidated%20Statement%20of%20Operations) For the first quarter of 2025, LeMaitre generated net sales of $59.9 million, up from $53.5 million in Q1 2024, with gross profit increasing to $41.4 million, and net income for the quarter at $11.0 million, or $0.48 per diluted share, compared to $9.9 million, or $0.44 per diluted share, in the prior-year period Statement of Operations (in thousands, except per share data) | Account | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net sales | $59,871 | $53,478 | | Gross profit | $41,420 | $36,665 | | Income from operations | $12,626 | $11,874 | | Net income | $11,011 | $9,887 | | Diluted EPS | $0.48 | $0.44 | [Selected Net Sales Information](index=6&type=section&id=Selected%20Net%20Sales%20Information) In Q1 2025, the Americas remained the largest market, contributing 65% of total net sales with $39.0 million, while the Europe, Middle East, and Africa (EMEA) region accounted for 28% of sales at $17.0 million, and the Asia Pacific region contributed the remaining 7% with $4.0 million Net Sales by Geography - Q1 2025 vs Q1 2024 (in thousands) | Geography | Q1 2025 Sales | % of Total | Q1 2024 Sales | % of Total | | :--- | :--- | :--- | :--- | :--- | | Americas | $38,958 | 65% | $35,245 | 66% | | EMEA | $16,959 | 28% | $14,395 | 27% | | Asia Pacific | $3,954 | 7% | $3,838 | 7% | | **Total Net Sales** | **$59,871** | **100%** | **$53,478** | **100%** | [Non-GAAP Financial Measures Reconciliation](index=7&type=section&id=Non-GAAP%20Financial%20Measures%20Reconciliation) The company provided reconciliations for non-GAAP metrics, with non-GAAP EBITDA for Q1 2025 at $15.2 million, a 7% increase from Q1 2024, and organic sales growth showing a 13% increase for Q1 2025 after adjusting for currency fluctuations, with projected organic sales growth for the full year 2025 also at 13% Reconciliation of Net Income to EBITDA (in thousands) | Account | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net income as reported | $11,011 | $9,887 | | Adjustments | $4,169 | $4,291 | | **EBITDA** | **$15,180** | **$14,178** | Reconciliation of GAAP to Non-GAAP (Organic) Sales Growth | Period | Reported Growth (%) | Organic Growth (%) | | :--- | :--- | :--- | | Q1 2025 (Actual) | 12% | 13% | | Q2 2025 (Projected) | 12% | 12% | | FY 2025 (Projected) | 12% | 13% |

Core Viewpoint - LeMaitre Vascular, Inc. reported strong Q1 2025 results with significant sales growth driven by grafts and carotid shunts, and provided an optimistic sales guidance for the year ahead [1][5]. Financial Performance - Q1 2025 net sales reached $59.9 million, reflecting a 12% increase compared to Q1 2024, with organic growth at 13% [10][21]. - Gross margin improved to 69.2%, up from 68.6% in Q1 2024, attributed to higher average selling prices and manufacturing efficiencies [3][10]. - Operating income was $12.6 million, a 6% increase year-over-year, while operating expenses grew by 16% primarily due to personnel costs [3][10]. - Net income for Q1 2025 was $11.0 million, compared to $9.9 million in Q1 2024, with diluted earnings per share at $0.48, up 10% [21][22]. Sales Growth Drivers - Sales growth was driven by a 17% increase in grafts and a 14% increase in carotid shunts, with regional sales growth of 18% in EMEA, 11% in the Americas, and 3% in APAC [3][10]. - Artegraft, the largest U.S. product, generated $37 million in sales in 2024 and received its MDR CE Mark on April 29, 2025, with a European launch imminent [4]. Guidance and Strategic Initiatives - The company raised its 2025 sales guidance to $245 million, with an organic growth forecast of 13%, up from previous guidance of $239 million and 10% organic growth [5]. - Q2 2025 guidance includes projected sales of $61.5 million to $63.5 million, with a gross margin of 69.5% and operating income between $14.6 million and $16.0 million [5]. Dividend and Share Repurchase - A quarterly dividend of $0.20 per share was approved, to be paid on May 29, 2025 [7]. - The company has authorized a share repurchase program of up to $75 million, which may be suspended or discontinued at any time [8].

Company Overview - LeMaitre Vascular (LMAT) shares increased by 7.7% to close at $83.90, following a relief rally in global markets due to a 90-day pause on tariff hikes by the United States [1] - The stock had previously experienced a 5.4% decline over the past four weeks [1] Earnings Expectations - LeMaitre is projected to report quarterly earnings of $0.50 per share, reflecting a year-over-year increase of 13.6% [2] - Expected revenues for the upcoming quarter are $57.8 million, which is an 8.1% increase compared to the same quarter last year [2] Stock Performance and Trends - The consensus EPS estimate for LeMaitre has remained unchanged over the last 30 days, indicating a lack of upward revisions in earnings estimates [3] - The stock currently holds a Zacks Rank of 2 (Buy), suggesting positive sentiment among analysts [3] Industry Context - LeMaitre operates within the Zacks Medical - Products industry, which includes other companies like AtriCure (ATRC) [3] - AtriCure's consensus EPS estimate has also remained unchanged at -$0.25, with a Zacks Rank of 3 (Hold) [4]

Company Overview - LeMaitre Vascular, Inc. is a provider of devices, implants, and services for the treatment of peripheral vascular disease, which affects over 200 million people globally [3] - The company develops, manufactures, and markets both disposable and implantable vascular devices aimed at vascular surgeons [3] Financial Results Announcement - LeMaitre Vascular will release its first quarter 2025 financial results on May 1, 2025, after market close [1] - A conference call is scheduled for 5:00 PM EDT on the same day to discuss the financial results, business highlights, and company outlook [1] Access to Conference Call - Access to the live conference call requires online registration, after which registrants will receive dial-in information and a PIN [2] - The audio webcast will be available live and for replay on the company's investor relations website [2]

BURLINGTON, Mass., April 01, 2025 (GLOBE NEWSWIRE) -- LeMaitre Vascular, Inc. (NASDAQ:LMAT) announced today that management will present at the 24th Annual Needham Virtual Healthcare Conference on Tuesday, April 8, 2025, at 3:45 PM EDT. 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 devic ...

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Core Insights - Precision Optics Corporation has appointed Joseph P. "JJ" Pellegrino, Jr. to its Board of Directors, who will also serve as Chairman of the Audit Committee, bringing extensive operational and financial experience in the medical device industry [1][2][3] Group 1: Appointment Details - Mr. Pellegrino previously served as Chief Financial Officer of LeMaitre Vascular, Inc. from 2007 until March 2025 and has a strong background in the medical device sector [2] - He has held various positions including Executive Vice President of Finance at LeMaitre Vascular and has experience as an investment banking analyst at Lehman Brothers [2] - His educational background includes an A.B. in Economics from Harvard College and an M.B.A. from Harvard Business School [2] Group 2: Board Changes - The appointment of Mr. Pellegrino follows the retirement of Peter Anania from the Board, who contributed significantly post the acquisition of Lighthouse Imaging [3][4] - Mr. Woodward, Chairman of the Board, expressed gratitude for Mr. Anania's contributions and wished him well in future endeavors [4] Group 3: Company Overview - Precision Optics Corporation, founded in 1982, focuses on advanced optical instruments for the medical and defense/aerospace industries, leveraging proprietary technologies [5] - The company provides services from product concept to mass manufacturing, addressing the needs of the surgical community for enhanced imaging systems [5] - Precision Optics has a history of supplying a variety of optical products to top-tier medical device companies and is also involved in defense/aerospace applications [5]

Core Viewpoint - LeMaitre Vascular, Inc. is actively engaging with investors through participation in three upcoming conferences in March 2025, highlighting its commitment to investor relations and market presence [1][2]. Group 1: Upcoming Conferences - LeMaitre will present at the 37th Annual ROTH Conference on March 17, 2025, at 4:00 PM PDT [2]. - The company will also participate in the KeyBanc Healthcare Forum on March 19, 2025, presenting at 1:30 PM EDT [2]. - Additionally, LeMaitre will be featured at the Oppenheimer 35th Annual Healthcare MedTech & Services Conference on March 20, 2025, at 10:00 AM EDT [2]. Group 2: Company Overview - LeMaitre Vascular, Inc. specializes in devices, implants, and services for treating peripheral vascular disease, which affects over 200 million people globally [2]. - The company develops, manufactures, and markets both disposable and implantable vascular devices tailored for vascular surgeons [2].