LeMaitre Vascular(US:LMAT)2022-02-25 01:05Financial Data and Key Metrics Changes - Q4 2021 sales increased by 5% to $39.5 million, with a 19% increase in total sales for 2021 to $154.4 million compared to 2020 [8][15] - Operating income for Q4 2021 was $8.3 million, a decrease of 13% year-over-year, while net income and operating income both grew by 27% for the full year 2021 [17][16] - Gross margin for Q4 2021 was 65.7%, a 70 basis point increase from Q4 2020, driven by average selling price increases and favorable sales mix [17] Business Line Data and Key Metrics Changes - Artegraft sales grew by 16% year-over-year to $6.4 million, contributing significantly to Q4 sales growth [8] - Biologics accounted for 48% of sales in the quarter, with a 10% increase [33] Market Data and Key Metrics Changes - Sales in the Americas grew by 8%, while Europe saw a 1% increase, and APAC experienced a 3% decline [8] - The company expanded its international sales footprint, particularly in Korea, which was the second-largest distribution market in 2021 [11] Company Strategy and Development Direction - The company plans to continue its focus on profitability and cash generation, as evidenced by the increase in dividends for the 11th consecutive year [13] - The company is actively pursuing acquisitions and has a share repurchase program to enhance shareholder value [28] Management's Comments on Operating Environment and Future Outlook - Management noted that the Omicron variant and staffing shortages impacted Q4 sales as hospitals deferred elective surgeries [8] - For Q1 2022, the company expects sales between $37.7 million and $39.7 million, representing an 8% increase at the midpoint compared to Q1 2021 [20] Other Important Information - The company ended Q4 2021 with no debt and $70 million in cash and investments, reflecting strong cash generation [19] - The company has been hiring to address supply chain issues and to ensure no back orders [10] Q&A Session Summary Question: Will there be any fundamental changes to the execution of the LeMaitre playbook? - Management indicated that there will be no changes to the playbook [25] Question: What was the market reaction to the recent price increase on Artegraft? - An 11% price increase was implemented in January, and the market reaction was positive [26] Question: Can you break out biologics versus non-biologics in the quarter? - Biologics were 48% of sales and increased by 10% [33] Question: How did valvulotomes perform in the quarter? - Valvulotomes had a good quarter, being one of the top three growth products [34] Question: What are the expectations for spending levels going forward? - Spending levels were higher due to hiring, and management expects this trend to taper off as the year progresses [35] Question: What is the expected number of sales reps by the end of 2022? - Management expects to reach between 115 and 120 sales reps by the end of 2022 [52]