LeMaitre announces Q4 2023 financial results

LeMaitre reported Q4 2023 results, announced a $0.16/share quarterly dividend and provided guidance.

Q4 2023 financial results

• Sales $48.9mm, +19% (+14% organic) vs. Q4 2022
• Gross margin 68.1%, +450 bps
• Op. income $10.2mm, +46%
• Op. margin 21%
• Net income $8.5mm, +50%
• Earnings per diluted share $0.38, +49%
• Cash up $8.1mm sequentially to $105.1mm

Bovine patches (+18%), allografts (+52%), valvulotomes (+12%), carotid shunts (+16%) and distributed porcine patches drove Q4 sales. EMEA sales increased 21%, the Americas 20% and APAC 11%.

The gross margin increased to 68.1% in Q4 (vs. 63.6% in Q4 2022) driven primarily by average selling price increases, as well as manufacturing efficiencies.

Operating income of $10.2mm was up 46% vs. Q4 2022. Operating expenses grew 21% year-over-year due to increased sales commissions, other compensation and CE-related regulatory costs.

Chairman/CEO George LeMaitre said, “Our 19% sales growth and gross margin recovery produced 46% op. income growth in Q4. Full year 2024 guidance implies an operating margin of 21%, up from 19% in 2023.”

Business outlook

Quarterly dividend
On February 21, 2024, the Company’s Board of Directors approved a quarterly dividend of $0.16/share of common stock. The dividend will be paid on March 28, 2024 to shareholders of record on March 14, 2024.

Share repurchase program
On February 21, 2024, the Company’s Board of Directors authorized the repurchase of up to $50.0mm of the Company’s common stock. The repurchase program may be suspended or discontinued at any time and will conclude on February 21, 2025, unless extended by the Board.
MB Bureau