LeMaitre Vascular Announces Impressive Q4 2024 Results
Impressive Q4 2024 Financial Results of LeMaitre Vascular
LeMaitre Vascular, Inc. (NASDAQ: LMAT), a leading provider of vascular devices, implants, and services, recently reported impressive financial results for the fourth quarter of 2024. The company achieved a remarkable sales figure of $55.7 million, reflecting a 14% increase, including 14% organic growth compared to the same quarter last year.
Key Financial Metrics for Q4 2024
The financial highlights from this quarter include:
- Gross margin: 69.3%, an increase of 121 basis points from the previous year.
- Operating Income: $12.9 million, up 26% year-over-year.
- Operating Margin: 23%.
- Earnings per diluted share: $0.49, marking a 30% increase.
- Cash balance grew to $299.7 million, up $175.8 million sequentially.
Contributors to Sales Growth
Sales growth in Q4 was primarily driven by significant increases in various product lines. Grafts saw a 23% increase, followed by carotid shunts at 14% and catheters at 12%. Sales from the Asia-Pacific region surged by 21%, and the Europe, Middle East, and Africa (EMEA) region also saw a notable increase of 18%. U.S. sales rose by 12% during this period.
Product Approval
In an exciting development, XenoSure patches received cardiac approval in China in December, which is expected to enhance the company’s growth trajectory.
Operational Insights
LeMaitre reported improved gross margins due to higher average selling prices (ASPs) alongside manufacturing efficiencies. Operating income for the quarter reached $12.9 million, a significant increase attributed to the careful management of operational costs, which grew by 12% largely driven by sales compensation and personnel expenses. As of December 31, 2024, the workforce included 152 sales representatives, an increase of 12%, along with 31 sales managers, reflecting a 29% rise in management positions.
Leadership Commentary
George LeMaitre, Chairman and CEO, commented, "2024 was a productive year. With a strategic focus on expanding our sales force, increasing ASPs, enhancing gross margins, and maintaining disciplined spending, we achieved growth across sales, operating income, and earnings per share. The $300 million in cash on hand provides us with strategic options for future investments and growth initiatives."
Looking Ahead: Q1 2025 Guidance
LeMaitre provided guidance for the upcoming quarter, projecting sales between $56.7 million and $58.7 million, with an estimated mid-point of $57.7 million, reflecting a growth of 8% to 10%. The full-year guidance positions sales between $235.4 million and $242.8 million, signaling an anticipated growth of 9% to 10%.
Dividend Announcement
The Board of Directors also approved a quarterly dividend of $0.20 per share, representing a 25% increase. This dividend will be payable on March 27, 2025, to shareholders of record on March 13, 2025.
Convertible Senior Notes Issuance
On December 19, 2024, the company issued $172.5 million of 2.50% Convertible Senior Notes due in 2030. The net proceeds, amounting to $167.7 million, are earmarked for working capital and general corporate purposes, including business development activities.
Share Repurchase Program
In an effort to return value to shareholders, the Board also authorized a share repurchase program, allowing for the repurchase of up to $75 million of the company’s common stock. This program is set to conclude on February 17, 2026, unless extended by the Board.
Conference Call Reminder
Management plans to conduct a conference call at 5:00 PM ET to discuss these results. Interested parties can join via the company’s investor relations website.
About LeMaitre Vascular
LeMaitre Vascular specializes in providing innovative devices and services for the treatment of peripheral vascular disease that affects millions globally. Their dedicated focus on vascular surgeons enhances the quality and effectiveness of care, reinforcing their position as a market leader.
Frequently Asked Questions
What were LeMaitre's Q4 2024 sales figures?
Sales for Q4 2024 were reported at $55.7 million, which is a 14% increase year-over-year.
How did operating income change in Q4?
Operating income rose to $12.9 million, reflecting a 26% increase compared to the previous year.
What is the new quarterly dividend announced by LeMaitre?
The Board approved a quarterly dividend of $0.20 per share, an increase of 25%.
What are the projections for Q1 2025 sales?
For Q1 2025, LeMaitre projects sales between $56.7 million and $58.7 million.
What are the key growth drivers for LeMaitre in 2024?
Key growth drivers include increased sales from grafts, carotid shunts, and catheters, alongside approvals for new products in various international markets.
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