LeMaitre Vascular(LMAT) - 2025 Q1 - Quarterly Results

Q1 2025 Performance Highlights 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] - The gross margin increased to 69.2% from 68.6% in Q1 2024, attributed to higher average selling prices and improved manufacturing efficiencies[4] - Operating expenses grew by 16%, largely due to increased personnel expenses, with the company now employing 164 sales representatives and 34 sales managers[4] Key Business Updates 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] - 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] Business Outlook 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] 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 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 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] Share Repurchase Program 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] Financial Statements 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 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 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 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 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% |