LeMaitre Vascular(LMAT) - 2025 Q2 - Quarterly Results

Executive Summary Q2 2025 Performance Highlights LeMaitre Vascular achieved strong sales growth in Q2 2025, with improved gross margin due to higher average selling prices and manufacturing efficiencies, alongside double-digit growth in operating income and EPS Q2 2025 Key Financial Data | Metric | Amount | Growth Rate (YoY) | | :--- | :--- | :--- | | Sales | $64.2 million | +15% (+15% Organic Growth) | | Gross Margin | 70.0% | +110 basis points (vs. 68.9% in Q2 2024) | | Operating Income | $16.1 million | +12% | | Diluted EPS | $0.60 | +16% | | Cash | $319.5 million | +$16.9 million sequentially | - Catheters (+27%) and grafts (+19%) were the primary drivers of sales growth in the second quarter[4] - EMEA sales grew 23%, Americas sales grew 12%, and Asia-Pacific sales grew 12%[4] Business Outlook and Guidance LeMaitre Vascular raised its full-year 2025 revenue and profit guidance, reflecting confidence in sustained healthy sales and profit growth, particularly with the successful international launch of Artegraft Q3 and Full-Year 2025 Guidance (Midpoint) | Metric | Q3 2025 Guidance (Midpoint) | Full-Year 2025 Guidance (Midpoint) | | :----- | :--------------------- | :---------------------------- | | Sales | $62.2 million (+13%, +15% Organic) | $251 million (+14%, +15% Organic) | | Gross Margin | 69.7% | 69.7% | | Operating Income | $15.1 million (+14%) | $60.9 million (+17%) | | Operating Margin | 24% | 24% | | EPS | $0.57 (+16%) | $2.30 (+19%) | - Chairman and CEO George LeMaitre stated that 2025 is expected to be another year of healthy sales and profit growth, with Artegraft's international launch exceeding plans[5] Shareholder Programs The company announced a quarterly dividend and is executing a stock repurchase program authorized to buy back up to $75 million of common stock - The Board of Directors approved a quarterly dividend of $0.20 per share on July 30, 2025, payable on September 4, 2025, to shareholders of record on August 21, 2025[2][6] - The company's Board of Directors authorized the repurchase of up to $75 million of the company's common stock on February 18, 2025, with the program ending on February 17, 2026, unless extended by the Board[7] Company Information About LeMaitre Vascular, Inc. LeMaitre Vascular is a medical device company focused on developing, manufacturing, and marketing disposable and implantable vascular devices for treating peripheral vascular disease, with vascular surgeons as its core customers - LeMaitre provides devices, implants, and services for treating peripheral vascular disease, which affects over 200 million people globally[11] - The company develops, manufactures, and markets disposable and implantable vascular devices to meet the needs of its core customers, vascular surgeons[11] Use of Non-GAAP Financial Measures LeMaitre management uses Non-GAAP financial measures, such as "organic" sales growth (adjusted for foreign exchange, business development transactions, etc.), to supplement GAAP results, believing this more effectively assesses sales and profitability trends - Non-GAAP financial measures are used to supplement GAAP financial performance indicators for a better understanding of the company's short-term and long-term financial trends[13] - The company refers to Non-GAAP sales growth percentages, adjusted for the impact of foreign exchange rates, business development transactions, and/or other events, as "organic" growth[14] - A reconciliation of GAAP to Non-GAAP results is included in the financial statement schedules of this press release[10][13] Forward-Looking Statements This press release contains forward-looking statements subject to various risks and uncertainties, including competition, acquisitions, pricing, supply chain, regulatory compliance, and litigation, which could cause actual results to differ materially from expectations - Statements in this press release that are not historical facts about the company's business may constitute "forward-looking statements" involving risks and uncertainties[15] - Risks include competition from other medical device companies and alternative medical technologies, ability to make acquisitions, maintaining historical profit growth levels, reliance on single or limited source suppliers, regulatory approval status, and litigation[15] - Forward-looking statements should not be unduly relied upon, and the company undertakes no obligation to publicly update any forward-looking statements[16] Contact Information Investor Relations contact information is provided for inquiries - The Investor Relations contact is Gregory Manker, Director of Business Development and Investor Relations[17] Financial Statements Condensed Consolidated Balance Sheets As of June 30, 2025, LeMaitre Vascular's total assets increased, driven primarily by growth in marketable securities and accounts receivable, while total liabilities remained relatively stable Condensed Consolidated Balance Sheets (Amounts in thousands USD) | Asset/Liability/Equity | June 30, 2025 | December 31, 2024 | Change | | :--------------------- | :------------ | :---------------- | :----- | | Total Current Assets | $430,126 | $402,192 | +$27,934 | | Total Assets | $577,591 | $551,817 | +$25,774 | | Total Current Liabilities | $30,816 | $30,607 | +$209 | | Total Liabilities | $214,905 | $214,527 | +$378 | | Total Stockholders' Equity | $362,686 | $337,290 | +$25,396 | - Cash and cash equivalents increased from $25,610 thousand to $27,177 thousand[18] - Short-term marketable securities increased from $274,112 thousand to $292,311 thousand[18] Condensed Consolidated Statements of Operations In Q2 2025, LeMaitre Vascular's net sales, gross profit, and net income all saw significant growth compared to Q2 2024, with diluted EPS increasing by 15.4%, and year-to-date performance also showing strength Condensed Consolidated Statements of Operations (Amounts in thousands USD, except per share amounts) | Metric | Q2 2025 | Q2 2024 | YoY Change (Q2) | YTD 2025 | YTD 2024 | YoY Change (YTD) | | :--------------------- | :------ | :------ | :-------------- | :------- | :------- | :--------------- | | Net Sales | $64,232 | $55,849 | +15.0% | $124,103 | $109,327 | +13.5% | | Gross Profit | $44,974 | $38,468 | +16.9% | $86,394 | $75,133 | +15.0% | | Operating Income | $16,142 | $14,380 | +12.2% | $28,768 | $26,254 | +9.6% | | Net Income | $13,779 | $11,826 | +16.5% | $24,790 | $21,713 | +14.2% | | Diluted Earnings Per Share | $0.60 | $0.52 | +15.4% | $1.08 | $0.96 | +12.5% | | Cash Dividends Per Common Share | $0.20 | $0.16 | +25.0% | $0.40 | $0.32 | +25.0% | - Selling and marketing expenses in Q2 2025 significantly increased by 35.6% from $10,984 thousand to $14,895 thousand compared to Q2 2024[19] - Research and development expenses in Q2 2025 decreased by 17.3% from $4,284 thousand to $3,541 thousand compared to Q2 2024[19] Selected Net Sales Information All geographic regions contributed to net sales growth in Q2 2025 and year-to-date, with the EMEA region showing the highest percentage growth in the second quarter Net Sales by Geographic Region (Amounts in thousands USD) | Geographic Region | Q2 2025 Sales | Q2 2024 Sales | Q2 YoY Growth Rate | YTD 2025 Sales | YTD 2024 Sales | YTD YoY Growth Rate | | :-------- | :------------ | :------------ | :------------ | :------------- | :------------- | :------------- | | Americas | $41,321 | $36,907 | +12.0% | $80,279 | $72,152 | +11.3% | | Europe, Middle East and Africa (EMEA) | $18,840 | $15,298 | +23.1% | $35,799 | $29,693 | +20.6% | | Asia-Pacific | $4,071 | $3,644 | +11.7% | $8,025 | $7,482 | +7.3% | | Total Net Sales | $64,232 | $55,849 | +15.0% | $124,103 | $109,327 | +13.5% | - The Americas remains the largest market, accounting for 64% of net sales in Q2 2025[20] Non-GAAP Reconciliations EBITDA Reconciliation LeMaitre Vascular's EBITDA grew 14% in Q2 2025 and 11% year-to-date, reflecting improved operating profitability before interest, taxes, depreciation, and amortization EBITDA Reconciliation (Amounts in thousands USD) | Metric | Q2 2025 | Q2 2024 | YoY Change (Q2) | YTD 2025 | YTD 2024 | YoY Change (YTD) | | :--------------------- | :------ | :------ | :-------------- | :------- | :------- | :--------------- | | Reported Net Income | $13,779 | $11,826 | +16.5% | $24,790 | $21,713 | +14.2% | | EBITDA | $19,037 | $16,753 | +13.6% | $34,217 | $30,931 | +10.6% | - Net interest (income) expense changed from $(1,137) thousand in Q2 2024 to $(1,681) thousand in Q2 2025[21] Non-GAAP Sales Growth Reconciliation Adjusted net sales, excluding the impact of divestitures and foreign exchange fluctuations, showed a 15% increase in Q2 2025, with Q3 and full-year 2025 also projected to grow by 15%, indicating strong organic growth Non-GAAP Sales Growth Reconciliation (Amounts in thousands USD) | Metric | Q2 2025 | Q2 2024 | Adjusted Net Sales Growth (Q2) | | :------------------------------------ | :------ | :------ | :------------------------------- | | Reported Net Sales | $64,232 | $55,849 | | | Adjusted Net Sales | $63,146 | $54,889 | $8,257 (+15%) | Projected Non-GAAP Sales Growth Reconciliation (Amounts in thousands USD) | Metric | Q3 2025 (Midpoint) | Q3 2024 (Reported) | Adjusted Projected Net Sales Growth (Q3) | | :------------------------------------ | :----------------- | :----------------- | :----------------------------------------- | | Guidance Net Sales (Midpoint) | $62,200 | $54,819 | | | Adjusted Projected Net Sales | $61,383 | $53,503 | $7,880 (+15%) | | Full-Year 2025 (Midpoint) | Full-Year 2024 (Reported) | Adjusted Projected Net Sales Growth (FY) | | | Guidance Net Sales (Midpoint) | $250,503 | $219,863 | | | Adjusted Projected Net Sales | $248,142 | $216,598 | $31,544 (+15%) | - Foreign exchange fluctuations had a negative impact of $1,039 thousand on net sales in Q2 2025[22]