LeMaitre Vascular (LMAT) Q4 2024 earnings summary

Executive summary

• Q4 2024 sales grew 14% year-over-year to $55.7M, with operating income up 26% to $12.9M and EPS up 30% to $0.49 per share.

• Sales growth was led by grafts (+23%), shunts (+14%), and catheters (+12%), with APAC, EMEA, and Americas regions up 21%, 18%, and 12% respectively.

• Sales force expanded to 152 reps, up 12% year-over-year, with a target of 165 by end of 2025 and direct selling in 29 countries.

• New international offices opened in Shanghai and Switzerland to support growth and reduce logistics complexity.

• The company holds #1 or #2 share in 9 of 12 niche markets, serving over 5,000 hospital accounts worldwide.

Financial highlights

• Q4 gross margin increased to 69.3%, up 120 bps year-over-year, driven by higher ASPs and manufacturing efficiencies.

• Q4 operating income was $12.9M (+26% YoY) with a 23% operating margin; full year operating income was $52.3M (+42%).

• EBITDA for 2024 was $61.7M, up 34% year-over-year.

• Ended Q4 with $299.7M in cash and equivalents, up $175.8M, mainly from convertible note issuance.

• Quarterly dividend raised 25% to $0.20/share; new $75M share repurchase program authorized.

Outlook and guidance

• 2025 guidance: 10% organic sales growth, gross margin of 69.7%, operating income of $59.8M (+15%), operating margin of 25%, and EPS of $2.24 (+16%).

• Q1 2025 sales guidance midpoint is $57.7M (+8% reported, +10% organic); EPS guidance midpoint is $0.50 (+15%).

• Rep headcount to reach 165 by year-end 2025, with two-thirds of new hires in North America.

• Artegraft CE mark approval expected in H1 2025; XenoSure launch in China anticipated in H2 2025.

• Dividend per share has increased for 14 consecutive years.