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LeMaitre Vascular Announces Q2 2020 Financial Results
BURLINGTON, Mass., July 23, 2020 (GLOBE NEWSWIRE) -- LeMaitre Vascular, Inc. (Nasdaq:LMAT), a provider of vascular devices, implants and services, today
About this update from Lemaitre Vascular, Inc.
[{"type":"text","content":"BURLINGTON, Mass., July 23, 2020 (GLOBE NEWSWIRE) -- LeMaitre Vascular, Inc. (Nasdaq:LMAT), a provider of vascular devices, implants and services, today reported Q2 2020 results and announced a $0.095/share quarterly dividend.\n Q2 2020 Results Sales of $24.9mm, -16% (-24% organic) vs. Q2 2019Op. income of $4.9mm, -18%Adjusted op. income of $6.1mm, +3% (excludes acquisition-related special items)Operating margin of 20%Net income of $3.5mm, -24%Earnings of $0.17 per diluted share, -25%EBITDA of $6.4mm, -11% Sales declined in the Americas (-15%) and Europe/Middle East/Africa (-21%), while Asia/Pac was flat. Sales of nearly all products declined in Q2, largely due to the COVID-19 pandemic. Sales were down 33% in April, down 21% in May and up 7% in June. Gross margin decreased to 68.5% in Q2 2020 (vs. 68.9% in Q2 2019) primarily due to manufacturing inefficiencies offset by favorable product mix. Operating expenses in Q2 2020 decreased 16% to $12.2mm (vs. $14.4mm) driven by headcount reductions, temporary salary cuts and general belt-tightening. Excluding $1.2mm of special items related to the Artegraft transaction, operating expenses were $11.0mm, down 24% vs. Q2 2019. Chairman and CEO George LeMaitre said, “Although COVID-19 cut into sales, we right-sized expenses and posted a 20% operating margin. During the quarter we also acquired Artegraft, a dialysis access graft implanted primarily by vascular surgeons.” Business Outlook Due to the uncertainties driven by the COVID-19 pandemic, financial guidance is limited to Q3 2020. GuidanceQ3 2020 Sales$30.5mm - $34.5mm(Midpoint:+12%)Q3 2020 Gross Margin62.8%Q3 2020 Operating Income$5.3mm - $7.8mm(Midpoint:+11%)Q3 2020 Earnings Per Share$0.17 - $0.26(Midpoint: -15%) Acquisition of Artegraft On June 22, 2020 LeMaitre Vascular acquired Artegraft, Inc. for $90.0 million, including $72.5 million in cash at closing and $17.5mm of potential earnouts. The acquisition was financed with a $65.0mm bank loan and cash on hand. Artegraft is a vascular graft derived from bovine carotid arteries, used primarily in dialysis access. In the twelve months ended May 31, 2020, Artegraft’s sales were $15.6mm and estimated hospital-level sales were $18.6mm. Unit sales grew 10% in 2019. LeMaitre Vascular also agreed to operate Artegraft’s NJ production facility for at least 3.5 years and retain most of its empl...