Core Viewpoint - LeMaitre Vascular (LMAT) has been upgraded to a Zacks Rank 2 (Buy) due to an upward trend in earnings estimates, indicating a positive outlook for the company's stock price [1][3]. Earnings Estimates and Stock Price Movement - The Zacks rating system is based on changes in a company's earnings picture, which is a significant factor influencing stock prices [2][4]. - A strong correlation exists between revisions in earnings estimates and near-term stock price movements, with institutional investors playing a role in this relationship [4]. Company Performance Indicators - LeMaitre is projected to earn $2.22 per share for the fiscal year ending December 2025, reflecting a year-over-year increase of 15% [8]. - Over the past three months, the Zacks Consensus Estimate for LeMaitre has risen by 4.3%, indicating positive sentiment among analysts [8]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with a proven track record of performance, particularly for Zacks Rank 1 stocks, which have averaged a +25% annual return since 1988 [7]. - The upgrade of LeMaitre to a Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, suggesting potential for market-beating returns in the near term [10].

Market Overview - The global market for peripheral vascular devices exceeds $5 billion, with the company's product market estimated at approximately $1 billion[232]. - Biologics represented 52% of the company's worldwide sales in 2024[236]. - Approximately 41% of sales in 2024 occurred outside the United States, with foreign exchange rate fluctuations decreasing reported sales by approximately $0.4 million compared to 2023[251]. Sales Performance - Net sales increased by $26.4 million, or 14%, to $219.9 million for the year ended December 31, 2024, compared to $193.5 million for 2023[259]. - Direct-to-hospital net sales accounted for 95% and 96% of total net sales for the years ended December 31, 2024 and 2023, respectively[260]. - Sales through LeMaitre Vascular for the twelve months ended December 31, 2024, were $5.0 million, up from $4.1 million for the nine months ended December 31, 2023[248]. - EMEA net sales increased by $8.9 million, or 17%, for the year ended December 31, 2024, driven by increased sales of shunts, patches, grafts, and catheters[261]. - Asia Pacific net sales increased by $3.2 million, or 27%, for the year ended December 31, 2024, primarily due to increased sales of catheters and grafts[262]. Financial Performance - Gross profit increased by $23.9 million, or 19%, to $150.9 million for the year ended December 31, 2024, with a gross margin increase of 290 basis points to 68.6%[263]. - Operating income for the year ended December 31, 2024, was $52.3 million, compared to $36.7 million in 2023[297]. - The effective income tax rate for the year ended December 31, 2024, was 22.6%, compared to 23.7% for the year ended December 31, 2023[269][270]. - The company recorded a tax provision of $12.8 million on pre-tax income of $56.9 million for the year ended December 31, 2024[268]. Expenses - Sales and marketing expenses increased by 14% to $46.7 million for the year ended December 31, 2024, driven by a 12% increase in sales representative headcount[264]. - General and administrative expenses rose by 14% to $36.3 million for the year ended December 31, 2024, primarily due to higher headcount and related expenses[265]. - Research and development expenses decreased by 8% to $15.7 million for the year ended December 31, 2024, as costs related to MDD and MDR approvals were lower compared to 2023[266]. - For the year ended December 31, 2023, sales and marketing expenses increased by 25% to $41.1 million, representing 21% of net sales, up from 20% in the prior period[282]. - General and administrative expenses rose by 11% to $31.8 million, decreasing as a percentage of sales to 16% from 18% in the prior period[283]. - Research and development expenses increased by 28% to $17.0 million, accounting for 9% of sales, up from 8% in the prior period[284]. Cash Flow and Investments - Cash and cash equivalents as of December 31, 2024, were $25.6 million, compared to $24.3 million as of December 31, 2023[291]. - Net cash provided by operating activities was $44.1 million for the year ended December 31, 2024, up from $36.8 million in 2023[301]. - Net cash used in investing activities was $200.1 million for the year ended December 31, 2024, consisting of purchases of marketable securities of $277.9 million and property and equipment of $7.0 million, offset by proceeds from the sale of marketable securities of $84.8 million[304]. - Net cash used in investing activities was $24.7 million for the year ended December 31, 2023, indicating a significant increase in investment activity in 2024[305]. - Net cash provided by financing activities was $158.1 million for the year ended December 31, 2024, consisting of proceeds from the issuance of Convertible Notes of $167.8 million, offset by dividend payments of $14.4 million[307]. Stock and Dividends - The company has authorized a stock repurchase program of up to $75.0 million, which may be suspended or discontinued at any time[290]. - Dividends declared for fiscal year 2024 totaled approximately $14.0 million, with a quarterly cash dividend of $0.16 per share[310]. Acquisitions and Business Changes - The acquisition of the Artegraft bovine graft business was for $72.5 million, with additional contingent payments of up to $17.5 million based on unit sales[244]. - In 2024, the company made the decision to wind down the PeriVu Angioscope product line, which totaled approximately $0.9 million in revenues[246]. - The company transitioned from its legacy ERP system to Microsoft Dynamics D365 in February 2024, with plans to implement it in selected European countries in 2025[249]. - The company capitalized costs of $4.7 million associated with the implementation of a new ERP system as of December 31, 2024[249]. Foreign Currency Exposure - Approximately 41% of sales in fiscal year 2024 were denominated in foreign currencies, exposing the company to foreign currency exchange rate fluctuations[320]. - The company recorded net foreign currency exchange losses of $0.1 million and $0.3 million for the years ended December 31, 2024 and 2023, respectively[321]. - The company did not enter into foreign currency forward contracts during 2024 or 2023 to mitigate foreign exchange risk[320]. Legal and Compliance - The company has not been subject to any material litigation, claims, or assessments during the years ended December 31, 2024, 2023, and 2022[315]. - The company expects to receive 23 MDR CE marks by the end of 2025, with the final deadline set for the end of 2028[243].

Financial Data and Key Metrics Changes - In Q4 2024, the company reported a sales growth of 14%, operating income growth of 26%, and earnings per share (EPS) growth of 30% [6] - Gross margin increased by 120 basis points year-over-year to 69.3% due to higher average selling prices (ASPs), direct labor efficiencies, and improved RestoreFlow Allograft yields [15][17] - Operating income for Q4 2024 was $12.9 million, reflecting a 23% operating margin [17] - The company ended Q4 2024 with $300 million in cash and securities, an increase of $176 million in the quarter [17] Business Line Data and Key Metrics Changes - Sales growth was driven by grafts, shunts, and catheters, which increased by 23%, 14%, and 12% respectively [6] - Artegraft, XenoSure, and RestoreFlow contributed to price improvements, with Artegraft being highlighted as a key product [14][38] - The shunts category saw a 14% increase, attributed to competitors exiting the market [108] Market Data and Key Metrics Changes - By geography, sales in the Asia-Pacific (APAC) region increased by 21%, EMEA by 18%, and the Americas by 12% in Q4 [6] - The company is expanding its international presence with new offices in Shanghai and Switzerland, targeting increased sales in these regions [8][9] Company Strategy and Development Direction - The company plans to increase its sales team from 152 to 165 by the end of 2025, focusing on both U.S. and international markets [7][34] - The strategy includes direct-to-hospital sales initiatives in Portugal and Czechia, with expectations to begin in H2 2025 [10] - The company is pursuing regulatory approvals, having received 16 of 23 MDR CE marks, with expectations for further approvals in 2025 [10][11] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the sales force as a key asset and plans to continue investing in it [7] - The company anticipates organic sales growth of 10% for the full year 2025, with a gross margin of 69.7% and operating income of $59.8 million [21] - Management acknowledged the challenges of providing guidance in the medical device sector but noted a history of exceeding guidance in recent years [50][51] Other Important Information - A cash dividend of $0.20 per share per quarter was approved, marking a 25% increase [20] - The company is transitioning to paperless manufacturing and has implemented a new ERP system [19] Q&A Session Summary Question: Can you talk about guidance and pricing? - Management indicated that historical pricing increases have been higher than expected, but future increases may align more closely with expectations [25][26] Question: What are the salesforce expansion plans? - The company plans to add approximately 165 reps by the end of 2025, with a focus on territory splitting in the U.S. and some international growth [34][36] Question: What is the expected impact of Artegraft's approval? - Artegraft is expected to contribute significantly to growth, but management refrained from providing specific guidance until after approval [40] Question: How do tariffs impact the company? - Management noted that tariffs are a minor concern due to the U.S.-based sourcing of materials and manufacturing [81][82] Question: What is the strategy for the Ireland facility? - The company is committed to establishing a physical presence in Ireland to pursue regulatory approvals, with expectations for approvals in 2025 [96][97]

Financial Data and Key Metrics Changes - In Q4 2024, the company reported a sales growth of 14%, operating income growth of 26%, and earnings per share (EPS) growth of 30% [6] - Gross margin increased by 120 basis points year-over-year to 69.3% due to higher average selling prices (ASPs), direct labor efficiencies, and improved RestoreFlow Allograft yields [15][17] - Operating income for Q4 2024 was $12.9 million, reflecting a 26% year-over-year increase, with an operating margin of 23% [17] - The company ended Q4 2024 with $300 million in cash and securities, an increase of $176 million in the quarter [17] Business Line Data and Key Metrics Changes - Sales growth was driven by grafts, shunts, and catheters, which increased by 23%, 14%, and 12% respectively [6] - Artegraft, XenoSure, and RestoreFlow were highlighted as key products contributing to price improvements [14] - The shunts category experienced a strong year with a 14% increase, attributed to competitors exiting the market [108] Market Data and Key Metrics Changes - By geography, sales in the Asia-Pacific (APAC) region grew by 21%, EMEA by 18%, and the Americas by 12% in Q4 [6] - The company received its Chinese XenoSure cardiac approval in December, with sales in China up 48% in Q4 [8] Company Strategy and Development Direction - The company plans to expand its sales team from 152 representatives to 165 by the end of 2025, focusing on both U.S. and international markets [7][34] - New international sales offices have been established, including a new office in Shanghai, which began shipping products to Chinese customers [8][9] - The company is pursuing direct-to-hospital sales in Portugal and Czechia, with expectations to begin in H2 2025 [10] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the sales force being the company's number one asset and plans to continue investing in sales managers and offices [7] - The company anticipates organic sales growth of 10% for the full year 2025, with a gross margin of 69.7% and operating income of $59.8 million, reflecting a 15% increase [21] - Management acknowledged the challenges of providing guidance in the medical device sector but noted a history of overperforming guidance in recent years [50] Other Important Information - The Board of Directors approved a cash dividend of $0.20 per share per quarter, an increase of 25% [20] - The company has received 16 of the 23 MDR CE marks, with expectations to receive the remaining approvals in 2025 [10][11] Q&A Session Summary Question: Can you talk about guidance and pricing? - Management indicated that historical pricing increases have been higher than expected, but they anticipate a more conservative approach moving forward, estimating around 6% pricing and 4% unit growth [25][26] Question: Can you provide details on salesforce expansion? - The company plans to add approximately 165 reps by the end of 2025, with two-thirds of the growth expected in the U.S. [34][36] Question: What are the expectations for Artegraft's market opportunity? - Artegraft is expected to contribute significantly to growth, with a market opportunity of $8 million in Europe, but management refrained from providing specific guidance until after approval [40][41] Question: What is the impact of tariffs on the company? - Management noted that most products are manufactured in the U.S., so tariffs would have a minimal impact, with China accounting for less than 1% of worldwide sales [81][82] Question: What is the strategy for the Ireland facility? - The company is committed to establishing a physical presence in Ireland to pursue approvals, with expectations for at least one approval in 2025 [96][98]

Group 1: Earnings Performance - LeMaitre Vascular reported quarterly earnings of $0.49 per share, matching the Zacks Consensus Estimate and showing an increase from $0.38 per share a year ago [1] - The company exceeded earnings expectations of $0.44 per share from a quarter ago, delivering a surprise of 11.36% [1] - Over the last four quarters, LeMaitre has surpassed consensus EPS estimates three times [1] Group 2: Revenue Performance - LeMaitre posted revenues of $55.72 million for the quarter ended December 2024, which was 0.76% below the Zacks Consensus Estimate [2] - This revenue figure represents an increase from $48.88 million in the same quarter last year [2] - The company has also topped consensus revenue estimates three times over the last four quarters [2] Group 3: Stock Performance and Outlook - LeMaitre shares have increased approximately 11.8% since the beginning of the year, outperforming the S&P 500's gain of 1.3% [3] - The future performance of the stock will depend on management's commentary during the earnings call and the earnings outlook [4][6] - The current consensus EPS estimate for the upcoming quarter is $0.51 on revenues of $58.68 million, and for the current fiscal year, it is $2.17 on revenues of $242.49 million [7] Group 4: Industry Context - The Medical - Products industry, to which LeMaitre belongs, is currently ranked in the bottom 49% of over 250 Zacks industries [8] - Research indicates that the top 50% of Zacks-ranked industries outperform the bottom 50% by more than a factor of 2 to 1 [8]

Financial Performance - Q4 2024 sales reached $55.7 million, representing a 14% increase compared to Q4 2023, with organic growth also at 14%[10] - Operating income for Q4 2024 was $12.9 million, a 26% increase year-over-year, with operating margin at 23%[10] - The company reported net income of $11.2 million for Q4 2024, up 32% from $8.5 million in Q4 2023, resulting in diluted earnings per share of $0.49, a 30% increase[21] - For the three months ended December 31, 2024, total net sales reached $55,717, a 14% increase from $48,883 in the same period of 2023[22] - EBITDA for the three months ended December 31, 2024, was $15,032, representing an 18% increase from $12,764 in the same period of 2023[23] - For the year ended December 31, 2024, total net sales were $219,863, up from $193,484 in 2023[22] - The company’s EBITDA for the year ended December 31, 2024, was $61,739, a 34% increase from $45,913 in 2023[23] Sales Guidance - The company provided Q1 2025 sales guidance of $56.7 million to $58.7 million, reflecting an 8% increase year-over-year[6] - Full-year 2025 sales guidance is set at $235.4 million to $242.8 million, indicating a 9% increase compared to 2024[6] - Adjusted projected net sales for the three months ending March 31, 2025, are estimated at $58,695, reflecting a 10% increase from the prior year[24] - Adjusted projected net sales increase for the year ending December 31, 2025, is expected to be $21,900, or 10% growth[24] Dividend and Shareholder Returns - The company announced a quarterly dividend increase to $0.20 per share, a 25% rise, to be paid on March 27, 2025[7] - A share repurchase program was authorized for up to $75 million, set to conclude on February 17, 2026[9] Cash and Financing - Cash and cash equivalents increased to $299.7 million, up $175.8 million sequentially[10] - The company issued $172.5 million in 2.50% Convertible Senior Notes due 2030, with net proceeds allocated for working capital and business development[8] Regional Sales Performance - Net sales in the Americas for the three months ended December 31, 2024, were $36,629, accounting for 66% of total net sales, compared to $32,812 and 67% in the prior year[22] - Net sales in Europe, Middle East, and Africa for the three months ended December 31, 2024, were $15,275, representing 27% of total net sales[22] Currency Impact - The impact of currency exchange rate fluctuations added $95 to net sales for the three months ended December 31, 2024[24] Gross Margin - Gross margin improved to 69.3%, up 121 basis points from Q4 2023, driven by higher average selling prices and manufacturing efficiencies[5]

Core Viewpoint - LeMaitre Vascular, Inc. reported strong Q4 2024 financial results, with significant sales growth driven by various product categories and regions, alongside an increase in quarterly dividends and positive guidance for 2025 [1][3][6]. Financial Performance - Q4 2024 net sales reached $55.7 million, a 14% increase compared to Q4 2023, with organic growth also at 14% [10][21]. - Key product categories contributing to sales growth included grafts (+23%), carotid shunts (+14%), and catheters (+12%) [3]. - Gross margin improved to 69.3%, up from 68.1% in Q4 2023, attributed to higher average selling prices (ASPs) and manufacturing efficiencies [3][10]. - Operating income for Q4 was $12.9 million, reflecting a 26% increase, while operating expenses grew by 12% primarily due to sales-related compensation [4][10]. - Earnings per diluted share (EPS) for Q4 was $0.49, a 30% increase year-over-year [10][22]. Guidance - For Q1 2025, the company expects sales between $56.7 million and $58.7 million, representing an 8% increase [4]. - Full-year 2025 sales guidance is set between $235.4 million and $242.8 million, indicating a 9% increase [4]. - Gross margin and operating margin are projected to remain stable at 69.7% and 25%, respectively [4]. Dividend and Share Repurchase - The Board of Directors approved a quarterly dividend of $0.20 per share, a 25% increase, to be paid on March 27, 2025 [6]. - A share repurchase program was authorized for up to $75 million, set to conclude on February 17, 2026, unless extended [8]. Capital Structure - The company issued $172.5 million in 2.50% Convertible Senior Notes due 2030, with net proceeds allocated for working capital and business development [7]. - Cash reserves increased to $299.7 million, providing strategic flexibility [4][10]. Market Performance - Sales growth was observed across regions: APAC (+21%), EMEA (+18%), and the Americas (+12%) [3]. - The company’s products, particularly XenoSure patches, received regulatory approval in China, enhancing market opportunities [3]. Company Overview - LeMaitre specializes in vascular devices and services, addressing the needs of vascular surgeons and treating peripheral vascular disease, which affects over 200 million people globally [13].

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 disposable and implantable vascular devices aimed at vascular surgeons [3] Financial Results Announcement - LeMaitre Vascular will release its fourth quarter 2024 financial results on February 27, 2025, after market close [1] - A conference call is scheduled for 5:00 PM EST on the same day to discuss the results, business highlights, and company outlook [1] Access to Conference Call - Access to the live call requires online registration, after which registrants will receive dial-in information and a PIN [2] - The audio webcast will be available live and via replay on the company's investor relations website [2]

Offering Details - LeMaitre Vascular announced the pricing of its offering of $150,000,000 aggregate principal amount of 2.50% Convertible Senior Notes due 2030, with an option for initial purchasers to buy an additional $22,500,000 in notes [1] - The notes will accrue interest at 2.50% per annum, payable semi-annually starting August 1, 2025, and will mature on February 1, 2030 [2] - The initial conversion rate is 8.3521 shares of common stock per $1,000 principal amount of notes, representing a 30% premium over the last reported sale price of $92.10 per share [2] Conversion and Redemption Terms - Noteholders can convert their notes under certain conditions before August 1, 2029, and at any time thereafter until the second scheduled trading day before maturity [2] - The company may redeem the notes in whole or in part starting February 5, 2028, if the stock price exceeds 130% of the conversion price for a specified period [3] - If a "fundamental change" occurs, noteholders may require the company to repurchase their notes at the principal amount plus accrued interest [4] Use of Proceeds - The company estimates net proceeds of approximately $145.9 million ($167.8 million if the option to purchase additional notes is fully exercised) after deducting discounts, commissions, and offering expenses [5] - The proceeds will be used for working capital, general corporate purposes, and potential acquisitions or investments in complementary companies, product lines, products, or technologies [6] Company Overview - LeMaitre Vascular is a provider of devices, implants, and services for the treatment of peripheral vascular disease, which affects over 200 million people worldwide [9] - The company develops, manufactures, and markets disposable and implantable vascular devices targeting vascular surgeons [9]

Core Viewpoint - LeMaitre Vascular, Inc. plans to offer $150 million in Convertible Senior Notes due 2030 to qualified institutional buyers, with an option for initial purchasers to buy an additional $22.5 million in notes [1][2]. Group 1: Offering Details - The notes will be senior, unsecured obligations, accruing interest payable semi-annually, maturing on February 1, 2030, unless repurchased, redeemed, or converted earlier [2]. - Noteholders can convert their notes into cash, shares of common stock, or a combination thereof under certain conditions [2]. - The notes can be redeemed by LeMaitre starting February 5, 2028, if specific conditions regarding the stock price are met [2]. Group 2: Use of Proceeds - The net proceeds from the offering will be used for working capital and general purposes, including potential acquisitions or investments in complementary companies, product lines, or technologies [3]. Group 3: Company Overview - LeMaitre Vascular, Inc. is a provider of devices, implants, and services for treating peripheral vascular disease, which affects over 200 million people globally [5].