LeMaitre Corporate Presentation

Disclaimers
Forward Looking Statements
This presentation contains certain forward-looking statements that involve
risks and uncertainties. Actual results and events may differ significantly
from results and events discussed in forward-looking statements. Factors
that might cause or contribute to such differences include, but are not
limited to, those discussed in “Risk Factors” in our Annual Report on Form
10-K and subsequent Quarterly Reports on Form 10-Q filed with the
Securities and Exchange Commission.
Other
Unless otherwise specified, all information contained herein is provided as
of September 30th, 2011, except that all management guidance is as of
October 27th, 2011. This presentation is not a reaffirmation of
management guidance, which is referenced herein for convenience only.
Reconciliation of certain GAAP to non-GAAP results is provided at the
end of this presentation.
Slide 2
LeMaitre Vascular Thumbnails
Burlington, MA
HQ & Manufacturing
1983
• 13 Peripheral Vascular Product Lines
• 2011 Sales: $58.5 MM* (+4%)
• 2011 Operating Profit: $4.0 MM*
• 259 Employees
• 71 Direct Sales Reps in 13 Countries
• $23.1 MM Cash in Bank, No Debt
Frankfurt, Germany
International HQ
1997
Tokyo, Japan
Asian Sales & Mktg
2004
Our mission is to be the #1 provider of devices to vascular surgeons
*Management Guidance
Slide 3
Our Vascular Universe
Growth Drivers
aAging population
aSmoking
aObesity
aDiabetes/ESRD
aMinimally Invasive Surgery
aSuccess of Vascular Surgeon
Slide 4
Why the Vascular Surgeon?
•
•
•
•
Founded by VS in 1983
Only 5,000 worldwide
Owns the patient
Does open & endovascular
Slide 5
3 Pronged Strategy
1. Compete in niche markets
2. Expand direct sales force
3. Add new products via:
• Acquisitions
• R&D
Slide 6
Compete in Niche Markets
$750 MM Addressable Market
Occlusion Catheters
Why Niche Markets?
Contrast Injectors
Vein Strippers
Valvulotomes
Anastomotic
Clips
Modeling Catheters
• Pricing Power
Biologic Patches
• Right-sized for
Embo
Catheters
ePTFE
Vascular Grafts
Radiopaque
Tape
LMAT Channel
• Technology Leader
Carotid
Shunts
RE
Devices
Polyester
Vascular Grafts
Excludes Reddick Cholangiogram Catheter and accessories.
Slide 7
• Lower Rivalry
Selected Product Lines
Pruitt F3®
Carotid Shunt
XenoSure®
Biologic
Vascular Patch
US & Europe Distribution
(2009 – 2016)
Purchase Option
(2014)
AnastoClip GC®
Vessel Closure
System
Slide 8
LeMaitre®
Embolectomy
Catheter
EndoRE® Remote
Endarterectomy
Devices
AlboGraft®
Polyester Graft
Expandable
LeMaitre®
Valvulotome
LifeSpan®
ePTFE Vascular
Graft
Global Direct Sales Force (71 Reps)
North America
44 of 62 Filled
Slide 9
Rest of World
0 of 20 Filled
Europe
22 of 45 Filled
Japan
5 of 8 Filled
Acquisition History 12 Deals in 14 Years
$60
Net Sales (millions)
$50
Acquired Products
$40
Criteria:
$30
• Used by Vascular Surgeons
• Disposable / Implantable
• $5-20 MM Rev = Sweet Spot
$20
• Niche Markets
• Reasonable Valuation
$10
$0
1998
1999
1
1
2000
2001
1
2002
2003
2004
2005
1
1
1
2006
*7 year XenoSure distribution and 2014 option to acquire manufacturing.
Slide 10
2007
4
2008
2009
1*
2010 2011**
1
Deals Completed
**YTD 2011 sales mix applied to 2011 guidance.
Upcoming Launches
The UnBalloon™
• Limited market release
underway
• Commercial launch anticipated
Q4 2011/Q1 2012
Slide 11
Over-The-Wire
®
LeMaitre Valvulotome
• Limited market release
underway
• Commercial launch anticipated
Q4 2011/Q1 2012
The Americas
US
Canada Brazil
Asia
Japan China
Product
EU
AlboSure Polyester Vascular Patch


AlboGraft Polyester Graft


XenoSure Biologic Vascular Patch



EndoRE Remote Endarterectomy Devices



Submitted
AnastoClip Vessel Closure System*
InvisiGrip Vein Stripper








LifeSpan ePTFE Vascular Graft



Submitted
Expandable LeMaitre Valvulotome





Pruitt F3 Carotid Shunts*





LeMaitre Vascular Balloon Catheters





The UnBalloon Modeling Catheter



Submitted
LeverEdge Contrast Injector




VascuTape Radiopaque Tape




Reddick Cholangiogram Catheters



Endo
Vascular
Regulatory Approvals in Major Geographies
Submitted
*AnastoClip GC approved in Europe and United States. Pruitt-Inahara additionally approved in Brazil and Japan.
Slide 12


Sales
Organic Growth %, Reported Growth %
Sales (millions)
$70
+4%
$60
+12%
+7%
$50
+4%
+8%
+4%
+1%
2011*
2012*
+10%
+4%
+18%
+8%
$40
+15%
+11%
$30
+16%
+12%
$20
+21%
+20%
+13%
+17%
+27%
+19%
+38%
$10
$0
2002
2003
2004
2005
2006
2007
2008
2009
2010
*Management Guidance: 2011 $58.5MM, 2012 $59.0MM
2002-2010 Audited by Ernst & Young
Slide 13
Diversified Revenue Stream
Direct-To-Hospital
Geographically Diversified
7%
37%
Distributors
Rest of World
YTD 2011
Slide 14
No Product > 25% of Sales
General
93%
63%
Hospitals
The Americas
Endovascular
Vascular
Gross Margin
76%
74.4%
74.1%
74%
73.3%
72.9%
72%
70.9%
70.3%
70.0%
69.6%
70%
69.4%
68%
66%
65.0%
64%
62%
60%
2002
2003
2004
2002-2010 Audited by Ernst & Young
Slide 15
2005
2006
2007
2008
2009
2010
YTD
2011
Operating Expense Discipline
Operating Expense & Sales (millions)*
$70
$60
$50
$40
$30
$33.9
$35.1
2007
2008
$35.4
$35.2
2010
2011**
$33.5
$25.6
$20
$20.4
$16.8
$14.0
$10
$10.5
$0
2002
2003
2004
2005
2006
2009
Operating Expense
* Operating Expense excludes restructuring and impairment.
2002-2010 Audited by Ernst & Young
Slide 16
**Annualized YTD 2011 operating expense.
Sales
Bottom Line Turnaround
Guidance: $4.0mm
$ 5.0
00,000
($0.0)
$0
($5.0)
00,000)
2006 2007 2008
2008 2009 2010
2002 2003 2004
2004 20052006
2012*
2010 2011*2012
2002
* Management Guidance
2011 includes charges associated with 2 factory consolidations (Brindisi, Italy & Laguna
Hills, CA), exit from stent graft business, and go-direct efforts Spain & Denmark.
2002-2010 Operating Profit Audited by Ernst & Young
Slide 17
Guidance: $6.0mm
Operating Profit (millions)
$ 10.0
00,000
$23.1 MM Cash, No Debt
$35
$30
$28.6
$27.9
$27.6
$26.0
$25.6
$25
$22.8
$22.7
$21.3
$19.8
$19.1
$18.3
$17.8
$20
$15
IPO
Cash & Investments (millions)
$30.8
$24.0
$24.1
$23.1
$22.6
$21.4
$19.1
$17.3
$10
$5
$0
Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3
'06 '07 '07 '07 '07 '08 '08 '08 '08 '09 '09 '09 '09 '10 '10 '10 '10 '11 '11 '11
Slide 18
Maximizing Shareholder Value
Share Repurchase:
• Initiated Q3 2009
• Up to $5.0 MM
• Through December 31, 2011
• $4.2 MM Purchased
• Average Price: $5.96
Slide 19
Quarterly Cash Dividend:
• Announced February 28, 2011
• $0.02 Per Share
• Q4 Record Date: November 23, 2011
Investor Information
Major Public Shareholders
Housatonic Partners
(Original VC Investor)
Wellington Management Company
Manatuck Hill Partners, LLC
Dimensional Fund Advisors
Granahan Investment Management
Argent Capital Management
Redmile
Cannell Capital
Cadence Capital Management
Teton Advisors
AWM Investment Company
Other Shareholders
Aphelion Capital
Consonance Capital
Oberon Asset Management
Outer Islands Capital
Ownership
(6/30/11)
9.0%
6.1%
3.0%
2.9%
2.6%
2.2%
1.9%
1.4%
1.3%
1.3%
1.2%
N/A
N/A
N/A
N/A
Upcoming Conference Presentations
Brean Murray
Life Sciences Summit
New York City
11/14
Lazard
Healthcare Conference
New York City
11/16
Canaccord Genuity
Cardiovascular Conference
San Francisco
12/6
SMID West
Investor Conference
Chicago
12/8
Sidoti
Microcap Conference
New York City
1/9
LMAT Analyst Coverage
Canaccord Genuity
Shares
Outstanding
15.5 MM
WJB Capital Group
Fully Diluted
16.0 MM
Sidoti
Slide 20
Jason Mills
Jamar Ismail
Joshua Zable
Ethan Roth
Joseph Munda
Disclaimers
Reconciliation Between GAAP and Non-GAAP
Reconciliation between GAAP
and Non-GAAP sales growth:
Net sales as reported for the year
ending:
Impact of currency exchange rate
fluctuations
Net impact of acquisitions,
distributed sales and discontinued
products, excluding currency
Adjusted net sales
2001
$
2002
2003
12,550 $ 17,364 $
2004
20,664 $
2005
26,183 $
2006
30,727 $
2007
2008
34,628 $
41,446 $
48,720 $
2009
2010
2011E
2012E
50,908 $ 56,060 $ 58,475 $ 59,000
113
(259)
(1,049)
(785)
42
(113)
(1,281)
(1,514)
923
860
(1,083)
311
(4,550)
(1,871)
(211)
(1,364)
(1,602)
705
(2,773)
(3,000)
(1,065)
19
948
3,959
$
8,113 $
15,234 $
19,404 $
24,034 $
29,167 $
35,220 $
37,392 $
44,206 $
50,766 $ 56,939 $ 58,340 $ 63,270
Net Sales as reported for the prior
year
$
6,717 $
12,550 $
17,364 $
20,664 $
26,183 $
30,727 $
34,628 $
41,446 $
48,720 $ 50,908 $ 56,060 $ 58,475
Adjusted net sales increase in $
1,396 $
2,684 $
2,040 $
3,370 $
2,984 $
4,493 $
2,764 $
2,760 $
2,046 $
6,031 $
2,280 $
21%
21%
12%
16%
11%
15%
7%
4%
12%
4%
Adjusted net sales increase in %
$
Reconciliation between GAAP and Non-GAAP:
Operating Expenses as reported for the year ending:
2002
$
2003
10,451 $
2004
2005
8%
2006
14,780 $
17,246 $
21,378 $
25,940
2007
$
2008
34,990 $
36,833
2009
$
35,355
2010
4,795
8%
YTD2011
$ 37,704 $ 27,846
Restructuring charges
-
(733)
(435)
(998)
(257)
(1,042)
(1,147)
(1,777)
(1,816)
(1,314)
Impairment charges
-
-
-
-
(94)
(7)
(597)
(106)
(485)
(83)
$ 35,403
$26,449
Adjusted Operating Expenses
$
Amounts in thousands and are unaudited.
Slide 21
10,451 $
14,047 $
16,811 $
20,380 $
25,589
$
33,941 $
35,089
$
33,472