LeMaitre Vascular (LMAT) Q3 2024 earnings summary

Executive summary

• Q3 2024 sales grew 16% year-over-year to $54.8M, led by strong performance in grafts, patches, carotid shunts, and biologics, with APAC and EMEA regions outpacing the Americas.

• EPS rose 49% year-over-year to $0.49, driven by pricing, operational execution, and margin expansion; net income reached $11.1M.

• Direct sales channels expanded with new offices in Paris, Zurich, and Shanghai, distributor buyouts in Portugal and Czechia, and transition to direct sales in Thailand and Korea.

• Biologics accounted for 52% of Q3 sales, and the sales force grew to 146 reps, targeting 155–160 by year-end.

• Regulatory progress included 15 of 22 MDR CE marks received, with Artegraft approval expected in H1 2025 and recent approvals in Thailand, Malaysia, South Africa, and Korea.

Financial highlights

• Q3 2024 gross margin reached 67.8%, up 280 basis points year-over-year, with operating income up 43% to $13.1M and operating margin at 24%.

• Net income for Q3 2024 was $11.1M, and EBITDA for Q3 was $15.8M, a 39% increase year-over-year.

• Cash and marketable securities totaled $123.9M at quarter-end, up $10.8M sequentially, with no long-term debt.

• Dividend per share increased to $0.16, with $10.8M paid in dividends year-to-date.

• Average annual price increase from 2021 to 2024 was 9%, compared to 3% from 2015 to 2020.

Outlook and guidance

• Q4 2024 guidance: sales growth of 14% (reported and organic), gross margin of 68%, operating income of $13.3M (up 30%), and EPS of $0.49 (up 30%).

• Full-year 2024 guidance: sales of $220M (+14%), gross margin 68.3%, operating income $52.7M (+44%), EPS $1.94 (+44%).

• Targeting 155–160 sales reps by year-end, with further expansion in Europe and ongoing ERP system rollout.