LeMaitre Vascular, Inc. (NASDAQ:LMAT) Files An 8-K Costs Associated with Exit or Disposal Activities
Item 2.05. Costs Associated with Exit or Disposal Activities.
In response to the COVID-19 pandemic, on April 13, 2020, LeMaitre Vascular, Inc. (the “Company”) committed to a plan intended to reduce expenses, which includes a reduction in force of approximately 13% of the workforce and other cost-cutting measures, including those described below under Item 5.02. The Company anticipates that it will complete the implementation of the plan during the second quarter of 2020. The Company estimates that it will incur total expenses relating to employment terminations of between approximately $200,000 and $400,000, all of which represent cash expenditures. The Company expects to record the majority of these charges in 2020.
Item 5.02 Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.
On April 13, 2020, the Compensation Committee of the Board of Directors (the “Board”) of the Company approved a structured salary reduction program. The program applies to, among others, all executive officers of the Company, including the named executive officers. The salary reductions of the named executive officers, effective April 19, 2020, are as follows: (i) George W. LeMaitre, the Company’s Chief Executive Officer, a 90% reduction to $45,526; (ii) Joseph P. Pellegrino, Jr., the Company’s Chief Financial Officer, a 50% reduction to $162,589; (iii) David B. Roberts, the Company’s President, a 50% reduction to $182,023; and (iv) Trent Kamke, the Company’s Senior Vice President, Operations, a 47.5% reduction to $131,158. The structured salary reduction program applies to all employees earning $40,000 or more per year and will only be applied outside of the United States to the extent permissible under applicable local laws and regulations. These salary reductions are expected to be in place until December 31, 2020.
On April 15, 2020, the non-employee directors serving on the Board of the Company agreed to relinquish their cash compensation until December 31, 2020. The reduction applies to the annual Board retainer, committee membership retainers, committee chair retainers and fees for meeting attendance.
Disclaimer on Forward-Looking Statements
This current report on Form 8-K contains forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Statements regarding the Company’s business that are not historical facts may be “forward-looking statements” that involve risks and uncertainties. Forward-looking statements are based on management’s current, preliminary expectations and are subject to risks and uncertainties that could cause actual results to differ from the results predicted. These risks and uncertainties include risks and uncertainties included under the heading “Risk Factors” in the Company’s most recent Annual Report on Form 10-K, as updated by its subsequent filings with the SEC, all of which are available on the Company’s investor relations website at http://www.lemaitre.com and on the SEC’s website at http://www.sec.gov. Undue reliance should not be placed on forward-looking statements, which speak only as of the date they are made. The Company undertakes no obligation to update publicly any forward-looking statements to reflect new information, events, or circumstances after the date they were made, or to reflect the occurrence of unanticipated events.
About LeMaitre Vascular, Inc. (NASDAQ:LMAT)
LeMaitre Vascular, Inc. is a provider of medical devices for the treatment of peripheral vascular disease. The Company and its subsidiaries develop, manufacture and market medical devices and implants used primarily in the field of vascular surgery. It operates in the design, marketing, sales and technical support of medical devices and implants for the treatment of peripheral vascular disease industry segment. The Company’s product lines include valvulotomes, balloon catheters, carotid shunts, biologic vascular patches, radiopaque marking tape, anastomotic clips, remote endarterectomy devices, laparoscopic cholecystectomy devices, prosthetic vascular grafts, biologic vascular grafts and powered phlebectomy devices. Its portfolio of peripheral vascular devices consists of brand name products that are used in arteries and veins outside of the heart, including the Expandable LeMaitre Valvulotome, the Pruitt F3 Carotid Shunt, VascuTape Radiopaque Tape and the XenoSure biologic patch.