Tactile Systems Technology, Inc. (“Tactile Medical”) (Nasdaq:
TCMD), a medical technology company focused on developing medical
devices for the treatment of patients with underserved chronic
diseases at home, today reported financial results for the second
quarter and six months ended June 30, 2022.
Second Quarter 2022 Summary:
- Total revenue increased 17%
year-over-year to $59.6 million, compared to $51.1 million in
second quarter 2021.
- Total revenue in second quarter
2022 included $8.0 million of revenue from sales of airway
clearance products, which includes the AffloVest product line
acquired on September 8, 2021.
- Operating loss of $4.1 million,
compared to $0.1 million in second quarter 2021.
- Non-GAAP operating loss of $1.8
million, compared to non-GAAP operating income of $0.9 million in
second quarter of 2021.
- Net loss of $4.6 million, compared
to net income of $1.3 million in second quarter 2021.
- Non-GAAP net loss of $2.9 million,
compared to non-GAAP net income of $2.0 million in second quarter
of 2021.
- Adjusted EBITDA of $1.7 million,
compared to $4.1 million in second quarter 2021.
Second Quarter 2022 Highlights:
- On June 7, 2022, the Company
announced the publication of an expert opinion consensus statement
in peer-reviewed Phlebology: The Journal of Venous Disease. Three
independent societies’ consensus endorsements affirmed that
pneumatic compression should be recommended as a treatment for
lymphedema, including lymphedema which is secondary to chronic
venous insufficiency (“CVI”).
Highlights Subsequent to Quarter End:
- On July 25, 2022, the Company
announced the full market release of its new ComfortEase™ garments
for the Flexitouch® Plus system, and the launch of its Kylee™
mobile application.
“Our total revenue performance in the second
quarter exceeded our expectations, driven by strong sales of our
airway clearance products,” said Dan Reuvers, President and Chief
Executive Officer of Tactile Medical. “Airway clearance product
sales increased 96% year-over-year compared to sales by the prior
owner in the second quarter of 2021, reflecting strong patient
demand seen by our AffloVest channel partners, and our team’s
success in supporting these partners and expanding our
relationships. Consistent with our expectations, revenue from our
lymphedema products increased 1% year-over-year, driven primarily
by lower rates of patient, provider and employee absenteeism
compared to the first quarter. We also completed the limited market
release of our new ComfortEase garments and Kylee mobile
application in the second quarter, culminating in the full market
release of both products in July.”
Mr. Reuvers continued, “Our updated 2022 total
revenue guidance now reflects the stronger-than-expected revenue
results in the first six months of 2022 and our updated growth
expectations for the balance of the year. In the second half of
2022, we are focused on improving the productivity of recently
hired and promoted sales representatives, furthering the successful
introduction of our new products and supporting our AffloVest
channel partners, and positioning ourselves for improved
profitability.”
Second Quarter 2022 Financial
Results
Total revenue in the second quarter of 2022
increased $8.6 million, or 17%, to $59.6 million, compared to $51.1
million in the second quarter of 2021. The increase in total
revenue was attributable to $8.0 million in sales of the airway
clearance product line, which includes the AffloVest product
acquired on September 8, 2021, and an increase of $0.6 million, or
1%, in sales and rentals of the lymphedema product line in the
quarter ended June 30, 2022, compared to the second quarter of
2021.
Gross profit in the second quarter of 2022
increased $7.0 million, or 19%, to $43.2 million, compared to $36.2
million in the second quarter of 2021. Gross margin was 72.5% of
revenue, compared to 70.9% of revenue in the second quarter of
2021. Non-GAAP gross margin was 73.0% of revenue, compared to 70.9%
of revenue in the second quarter of 2021.
Operating expenses in the second quarter of 2022
increased $11.0 million, or 30%, to $47.3 million, compared to
$36.3 million in the second quarter of 2021.
Operating loss was $4.1 million in the second
quarter of 2022, compared to $0.1 million in the second quarter of
2021. Non-GAAP operating loss in the second quarter of 2022 was
$1.8 million, compared to non-GAAP operating income of $0.9 million
in the second quarter of 2021.
Other expense was $0.6 million in the second
quarter of 2022, compared to $24,000 in the second quarter of 2021.
The change in other expense was primarily due to an increase in
interest expense.
Income tax benefit was $20,000 in the second
quarter of 2022, compared to $1.4 million in the second quarter of
2021. The difference is related to a full valuation allowance being
recorded against all deferred tax assets in the current year period
and a tax benefit related to a research and development credit
recognized in the second quarter of 2021.
Net loss in the second quarter of 2022 was $4.6
million, or $0.23 per diluted share, compared to net income of $1.3
million, or $0.07 per diluted share, in the second quarter of 2021.
Non-GAAP net loss in the second quarter of 2022 was $2.9 million,
compared to non-GAAP net income $2.0 million in the second quarter
of 2021.
Weighted average shares used to compute diluted
net loss/income per share were 20.0 million in each of the second
quarters of 2022 and 2021.
Adjusted EBITDA was $1.7 million in the second
quarter of 2022, compared to $4.1 million in the second quarter of
2021.
First Six Months 2022 Financial Results:
Total revenue for the six months ended June 30, 2022, increased
$13.8 million, or 15%, to $107.6 million, compared to $93.8 million
for the six months ended June 30, 2021. The increase in revenue was
attributable to $15.3 million in sales of the airway clearance
product line, partially offset by a decrease of $1.5 million, or
2%, in sales and rentals of the lymphedema product line.
Net loss for the six months ended June 30, 2022, was $20.2
million, or $1.01 per diluted share, compared to a net loss of $1.0
million, or $0.05 per diluted share, for the six months ended June
30, 2021. Non-GAAP net loss for the six months ended June 30, 2022,
was $11.3 million, compared to Non-GAAP net income of $0.6 million
for the six months ended June 30, 2021.
Weighted average shares used to compute diluted net loss per
share were 20.0 million and 19.6 million for the six months ended
June 30, 2022 and 2021, respectively.
Adjusted EBITDA loss was $0.9 million in the six months ended
June 30, 2022, compared to adjusted EBITDA of $4.1 million in the
six months ended June 30, 2021.
Balance Sheet Summary
As of June 30, 2022, the Company had $23.4
million in cash and cash equivalents and $50.5 million of
outstanding borrowings under its credit agreement, compared to
$28.2 million in cash and cash equivalents and $55.0 million of
outstanding borrowings under its credit agreement as of December
31, 2021. At March 31, 2022, the Company had $21.2 million in cash
and cash equivalents.
2022 Financial Outlook
The Company now expects full year 2022 total
revenue in the range of $238.0 million to $242.0 million,
representing growth of approximately 14% to 16% year-over-year,
compared to total revenue of $208.1 million in 2021. The Company’s
prior 2022 revenue guidance expectations called for total revenue
in the range of $235.0 million to $240.0 million, representing
growth of approximately 13% to 15% year-over-year.
Conference Call
Management will host a conference call at 5:00
p.m. Eastern Time on August 1, 2022, to discuss the results of the
quarter with a question-and-answer session. Those who would like to
participate may dial 877-407-3088 (201-389-0927 for international
callers) and provide access code 13731068. A live webcast of the
call will also be provided on the investor relations section of the
Company's website at investors.tactilemedical.com.
For those unable to participate, a replay of the
call will be available for two weeks at 877-660-6853 (201-612-7415
for international callers); access code 13731068. The webcast will
be archived at investors.tactilemedical.com.
About Tactile Systems Technology, Inc. (DBA Tactile
Medical)
Tactile Medical is a leader in developing and
marketing at-home therapies for people suffering from underserved,
chronic conditions including lymphedema, lipedema, chronic venous
insufficiency and chronic pulmonary disease by helping them live
better and care for themselves at home. The company collaborates
with clinicians to expand clinical evidence, raise awareness,
increase access to care, reduce overall healthcare costs and
improve the quality of life for tens of thousands of patients each
year.
Legal Notice Regarding Forward-Looking
Statements
This release contains forward-looking
statements. Forward-looking statements are generally identifiable
by the use of words like “may,” “will,” “should,” “could,”
“expect,” “anticipate,” “estimate,” “believe,” “intend,”
“continue,” “confident,” “outlook,” “guidance,” “project,” “goals,”
“look forward,” “poised,” “designed,” “plan,” “return,” “focused,”
“prospects” or “remain” or the negative of these words or other
variations on these words or comparable terminology. The reader is
cautioned not to put undue reliance on these forward-looking
statements, as these statements are subject to numerous factors and
uncertainties outside of the Company’s control that can make such
statements untrue, including, but not limited to, the impacts of
the COVID-19 pandemic on the Company’s business, financial
condition and results of operations, and the Company’s inability to
mitigate such impacts; the adequacy of the Company’s liquidity to
pursue its business objectives; the Company’s ability to obtain
reimbursement from third party payers for its products; loss or
retirement of key executives, including prior to identifying a
successor; adverse economic conditions or intense competition; loss
of a key supplier; entry of new competitors and products; adverse
federal, state and local government regulation; technological
obsolescence of the Company’s products; technical problems with the
Company’s research and products; the Company’s ability to expand
its business through strategic acquisitions; the Company’s ability
to integrate acquisitions and related businesses; wage and
component price inflation; the effects of current and future U.S.
and foreign trade policy and tariff actions; or the inability to
carry out research, development and commercialization plans. In
addition, other factors that could cause actual results to differ
materially are discussed in the Company’s filings with the SEC.
Investors and security holders are urged to read these documents
free of charge on the SEC’s website at http://www.sec.gov. The
Company undertakes no obligation to publicly update or revise its
forward-looking statements as a result of new information, future
events or otherwise.
Use of Non-GAAP Financial Measures
This press release includes the non-GAAP
financial measures of Adjusted EBITDA (loss), non-GAAP gross
margin, non-GAAP operating income (loss), and non-GAAP net income
(loss), which differ from financial measures calculated in
accordance with U.S. generally accepted accounting principles
(“GAAP”).
Adjusted EBITDA (loss) in this release
represents net income or loss, plus interest expense, net, or less
interest income, net, less income tax benefit or plus income tax
expense, plus depreciation and amortization, plus stock-based
compensation expense, plus litigation defense costs, plus or minus
the change in fair value of earn-out, and plus executive transition
costs. Non-GAAP gross margin in this release represents gross
margin plus non-cash intangible amortization expense. Non-GAAP
operating income (loss) in this release represents operating income
(loss) adjusted for non-cash intangible amortization expense,
change in fair value of earn-out, litigation defense costs and
executive transition expenses. Non-GAAP net income (loss)
represents net income (loss) adjusted for non-cash intangible
amortization expense, change in fair value of earn-out, litigation
defense costs and executive transition expenses and adjusted for
the income tax effect on reconciling items. Reconciliations of
these non-GAAP financial measures to their most directly comparable
GAAP measures are included in this press release.
These non-GAAP financial measures are presented
because the Company believes they are useful indicators of its
operating performance. Management uses these measures principally
as measures of the Company’s operating performance and for planning
purposes, including the preparation of the Company’s annual
operating plan and financial projections. The Company believes
these measures are useful to investors as supplemental information
and because they are frequently used by analysts, investors and
other interested parties to evaluate companies in its industry. The
Company also believes these non-GAAP financial measures are useful
to its management and investors as a measure of comparative
operating performance from period to period. In addition, Adjusted
EBITDA is used as a performance metric in the Company’s
compensation program.
The non-GAAP financial measures presented in
this release should not be considered as an alternative to, or
superior to, their respective GAAP financial measures, as measures
of financial performance or cash flows from operations as a measure
of liquidity, or any other performance measure derived in
accordance with GAAP, and they should not be construed to imply
that the Company’s future results will be unaffected by unusual or
non-recurring items. In addition, Adjusted EBITDA is not intended
to be a measure of free cash flow for management’s discretionary
use, as it does not reflect certain cash requirements such as tax
payments, debt service requirements, capital expenditures and
certain other cash costs that may recur in the future. Adjusted
EBITDA contains certain other limitations, including the failure to
reflect our cash expenditures, cash requirements for working
capital needs and cash costs to replace assets being depreciated
and amortized. In evaluating non-GAAP financial measures, you
should be aware that in the future the Company may incur expenses
that are the same as or similar to some of the adjustments in this
presentation. The Company’s presentation of non-GAAP financial
measures should not be construed to imply that its future results
will be unaffected by any such adjustments. Management compensates
for these limitations by primarily relying on the Company’s GAAP
results in addition to using non-GAAP financial measures on a
supplemental basis. The Company’s definition of these non-GAAP
financial measures is not necessarily comparable to other similarly
titled captions of other companies due to different methods of
calculation.
Tactile Systems Technology, Inc. |
Condensed Consolidated Balance Sheets |
(Unaudited) |
|
|
June 30, |
|
December 31, |
(In thousands, except share and per share data) |
|
2022 |
|
2021 |
Assets |
|
|
|
|
|
|
Current
assets |
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
23,350 |
|
|
$ |
28,229 |
|
Accounts receivable |
|
|
49,157 |
|
|
|
49,478 |
|
Net investment in leases |
|
|
13,346 |
|
|
|
12,482 |
|
Inventories |
|
|
19,970 |
|
|
|
19,217 |
|
Prepaid expenses and other current assets |
|
|
1,446 |
|
|
|
4,141 |
|
Total current assets |
|
|
107,269 |
|
|
|
113,547 |
|
Non-current
assets |
|
|
|
|
|
|
|
Property and equipment, net |
|
|
5,978 |
|
|
|
6,750 |
|
Right of use operating lease assets |
|
|
22,628 |
|
|
|
23,984 |
|
Intangible assets, net |
|
|
52,254 |
|
|
|
54,081 |
|
Goodwill |
|
|
31,063 |
|
|
|
31,063 |
|
Accounts receivable, non-current |
|
|
15,343 |
|
|
|
12,847 |
|
Other non-current assets |
|
|
2,768 |
|
|
|
1,998 |
|
Total non-current assets |
|
|
130,034 |
|
|
|
130,723 |
|
Total assets |
|
$ |
237,303 |
|
|
$ |
244,270 |
|
Liabilities and
Stockholders' Equity |
|
|
|
|
|
|
|
Current
liabilities |
|
|
|
|
|
|
|
Accounts payable |
|
$ |
9,110 |
|
|
$ |
5,023 |
|
Note payable |
|
|
2,968 |
|
|
|
2,960 |
|
Earn-out, current |
|
|
9,800 |
|
|
|
3,250 |
|
Accrued payroll and related taxes |
|
|
12,144 |
|
|
|
12,139 |
|
Accrued expenses |
|
|
5,258 |
|
|
|
5,262 |
|
Income taxes payable |
|
|
11 |
|
|
|
16 |
|
Operating lease liabilities |
|
|
2,488 |
|
|
|
2,506 |
|
Other current liabilities |
|
|
4,767 |
|
|
|
3,305 |
|
Total current liabilities |
|
|
46,546 |
|
|
|
34,461 |
|
Non-current
liabilities |
|
|
|
|
|
|
|
Revolving line of credit, non-current |
|
|
24,891 |
|
|
|
24,857 |
|
Note payable, non-current |
|
|
22,463 |
|
|
|
26,933 |
|
Earn-out, non-current |
|
|
3,950 |
|
|
|
2,950 |
|
Accrued warranty reserve, non-current |
|
|
2,791 |
|
|
|
3,108 |
|
Income taxes payable, non-current |
|
|
298 |
|
|
|
348 |
|
Operating lease liabilities, non-current |
|
|
22,122 |
|
|
|
23,354 |
|
Deferred income taxes |
|
|
126 |
|
|
|
32 |
|
Total non-current liabilities |
|
|
76,641 |
|
|
|
81,582 |
|
Total liabilities |
|
|
123,187 |
|
|
|
116,043 |
|
|
|
|
|
|
|
|
|
Stockholders’
equity: |
|
|
|
|
|
|
|
Preferred stock, $0.001 par value, 50,000,000 shares authorized;
none issued and outstanding as of June 30, 2022 and December 31,
2021 |
|
|
— |
|
|
|
— |
|
Common stock, $0.001 par value, 300,000,000 shares authorized;
20,132,145 shares issued and outstanding as of June 30, 2022;
19,877,786 shares issued and outstanding as of December 31,
2021 |
|
|
20 |
|
|
|
20 |
|
Additional paid-in capital |
|
|
126,059 |
|
|
|
119,962 |
|
(Accumulated deficit) retained earnings |
|
|
(11,963 |
) |
|
|
8,245 |
|
Total stockholders’ equity |
|
|
114,116 |
|
|
|
128,227 |
|
Total liabilities and stockholders’ equity |
|
$ |
237,303 |
|
|
$ |
244,270 |
|
Tactile Systems Technology, Inc. |
Condensed Consolidated Statements of
Operations |
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Six Months Ended |
|
|
June 30, |
|
June 30, |
(In thousands, except share and per share data) |
|
2022 |
|
2021 |
|
2022 |
|
2021 |
Revenue |
|
|
|
|
|
|
|
|
|
|
|
|
Sales revenue |
|
$ |
51,265 |
|
|
$ |
43,630 |
|
|
$ |
92,435 |
|
|
$ |
79,755 |
|
Rental revenue |
|
|
8,380 |
|
|
|
7,430 |
|
|
|
15,188 |
|
|
|
14,077 |
|
Total revenue |
|
|
59,645 |
|
|
|
51,060 |
|
|
|
107,623 |
|
|
|
93,832 |
|
Cost of
revenue |
|
|
|
|
|
|
|
|
|
|
|
|
Cost of sales revenue |
|
|
13,810 |
|
|
|
12,638 |
|
|
|
25,890 |
|
|
|
23,329 |
|
Cost of rental revenue |
|
|
2,612 |
|
|
|
2,217 |
|
|
|
4,648 |
|
|
|
4,068 |
|
Total cost of revenue |
|
|
16,422 |
|
|
|
14,855 |
|
|
|
30,538 |
|
|
|
27,397 |
|
Gross
profit |
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit - sales revenue |
|
|
37,455 |
|
|
|
30,992 |
|
|
|
66,545 |
|
|
|
56,426 |
|
Gross profit - rental revenue |
|
|
5,768 |
|
|
|
5,213 |
|
|
|
10,540 |
|
|
|
10,009 |
|
Gross profit |
|
|
43,223 |
|
|
|
36,205 |
|
|
|
77,085 |
|
|
|
66,435 |
|
Operating
expenses |
|
|
|
|
|
|
|
|
|
|
|
|
Sales and marketing |
|
|
28,822 |
|
|
|
20,933 |
|
|
|
52,752 |
|
|
|
39,718 |
|
Research and development |
|
|
1,849 |
|
|
|
1,206 |
|
|
|
3,369 |
|
|
|
2,476 |
|
Reimbursement, general and administrative |
|
|
14,894 |
|
|
|
14,094 |
|
|
|
31,111 |
|
|
|
28,303 |
|
Intangible asset amortization and earn-out |
|
|
1,745 |
|
|
|
48 |
|
|
|
8,841 |
|
|
|
98 |
|
Total operating expenses |
|
|
47,310 |
|
|
|
36,281 |
|
|
|
96,073 |
|
|
|
70,595 |
|
Loss from
operations |
|
|
(4,087 |
) |
|
|
(76 |
) |
|
|
(18,988 |
) |
|
|
(4,160 |
) |
Other expense |
|
|
(573 |
) |
|
|
(24 |
) |
|
|
(1,029 |
) |
|
|
(34 |
) |
Loss before income
taxes |
|
|
(4,660 |
) |
|
|
(100 |
) |
|
|
(20,017 |
) |
|
|
(4,194 |
) |
Income tax (benefit)
expense |
|
|
(20 |
) |
|
|
(1,405 |
) |
|
|
191 |
|
|
|
(3,233 |
) |
Net (loss)
income |
|
$ |
(4,640 |
) |
|
$ |
1,305 |
|
|
$ |
(20,208 |
) |
|
$ |
(961 |
) |
Net (loss) income per common
share |
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
(0.23 |
) |
|
$ |
0.07 |
|
|
$ |
(1.01 |
) |
|
$ |
(0.05 |
) |
Diluted |
|
$ |
(0.23 |
) |
|
$ |
0.07 |
|
|
$ |
(1.01 |
) |
|
$ |
(0.05 |
) |
Weighted-average common shares
used to compute net (loss) income per common share |
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
20,024,798 |
|
|
|
19,691,156 |
|
|
|
19,961,999 |
|
|
|
19,618,759 |
|
Diluted |
|
|
20,024,798 |
|
|
|
20,047,277 |
|
|
|
19,961,999 |
|
|
|
19,618,759 |
|
Tactile Systems Technology, Inc. |
Condensed Consolidated Statements of Cash
Flows |
(Unaudited) |
|
|
|
|
|
Six Months Ended June 30, |
(In thousands) |
|
2022 |
|
2021 |
Cash flows from
operating activities |
|
|
|
|
|
|
Net loss |
|
$ |
(20,208 |
) |
|
$ |
(961 |
) |
Adjustments to reconcile net loss to net cash used in operating
activities: |
|
|
|
|
|
|
Depreciation and amortization |
|
|
3,015 |
|
|
|
1,287 |
|
Deferred income taxes |
|
|
94 |
|
|
|
(3,581 |
) |
Stock-based compensation expense |
|
|
5,121 |
|
|
|
5,115 |
|
Change in fair value of earn-out liability |
|
|
7,550 |
|
|
|
— |
|
Changes in assets and liabilities, net of acquisition: |
|
|
|
|
|
|
Accounts receivable |
|
|
321 |
|
|
|
1,220 |
|
Net investment in leases |
|
|
(864 |
) |
|
|
(1,033 |
) |
Inventories |
|
|
(753 |
) |
|
|
(2,590 |
) |
Income taxes |
|
|
(55 |
) |
|
|
(780 |
) |
Prepaid expenses and other assets |
|
|
1,925 |
|
|
|
502 |
|
Right of use operating lease assets |
|
|
106 |
|
|
|
99 |
|
Accounts receivable, non-current |
|
|
(2,496 |
) |
|
|
(2,441 |
) |
Accounts payable |
|
|
4,087 |
|
|
|
855 |
|
Accrued payroll and related taxes |
|
|
5 |
|
|
|
(1,285 |
) |
Accrued expenses and other liabilities |
|
|
1,252 |
|
|
|
1,676 |
|
Net cash used in operating activities |
|
|
(900 |
) |
|
|
(1,917 |
) |
Cash flows from
investing activities |
|
|
|
|
|
|
Purchases of property and equipment |
|
|
(331 |
) |
|
|
(603 |
) |
Intangible assets expenditures |
|
|
(85 |
) |
|
|
(140 |
) |
Net cash used in investing activities |
|
|
(416 |
) |
|
|
(743 |
) |
Cash flows from
financing activities |
|
|
|
|
|
|
Payment on note payable |
|
|
(4,500 |
) |
|
|
— |
|
Payment of deferred debt issuance costs |
|
|
(39 |
) |
|
|
— |
|
Taxes paid for net share settlement of performance and restricted
stock units |
|
|
— |
|
|
|
(1,115 |
) |
Proceeds from exercise of common stock options |
|
|
152 |
|
|
|
3,385 |
|
Proceeds from the issuance of common stock from the employee stock
purchase plan |
|
|
824 |
|
|
|
1,542 |
|
Net cash (used in) provided by financing activities |
|
|
(3,563 |
) |
|
|
3,812 |
|
Net (decrease)
increase in cash and cash equivalents |
|
|
(4,879 |
) |
|
|
1,152 |
|
Cash and cash equivalents –
beginning of period |
|
|
28,229 |
|
|
|
47,855 |
|
Cash and cash equivalents –
end of period |
|
$ |
23,350 |
|
|
$ |
49,007 |
|
|
|
|
|
|
|
|
Supplemental cash flow
disclosure |
|
|
|
|
|
|
Cash paid for interest |
|
$ |
448 |
|
|
$ |
— |
|
Cash paid for taxes |
|
$ |
28 |
|
|
$ |
1,141 |
|
Capital expenditures incurred but not yet paid |
|
$ |
— |
|
|
$ |
8 |
|
The following table summarizes revenue by
product line for the three and six months ended June 30, 2022 and
2021:
|
|
Three Months Ended |
|
Six Months Ended |
|
|
June 30, |
|
June 30, |
(In thousands) |
|
2022 |
|
2021 |
|
2022 |
|
2021 |
Revenue |
|
|
|
|
|
|
|
|
|
|
|
|
Lymphedema products |
|
$ |
51,634 |
|
|
$ |
51,060 |
|
|
$ |
92,288 |
|
|
$ |
93,832 |
|
Airway clearance products |
|
|
8,011 |
|
|
|
— |
|
|
|
15,335 |
|
|
|
— |
|
Total |
|
$ |
59,645 |
|
|
$ |
51,060 |
|
|
$ |
107,623 |
|
|
$ |
93,832 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Percentage of total
revenue |
|
|
|
|
|
|
|
|
|
|
|
|
Lymphedema products |
|
|
87 |
% |
|
|
100 |
% |
|
|
86 |
% |
|
|
100 |
% |
Airway clearance products |
|
|
13 |
% |
|
|
— |
% |
|
|
14 |
% |
|
|
— |
% |
Total |
|
|
100 |
% |
|
|
100 |
% |
|
|
100 |
% |
|
|
100 |
% |
The following table contains a reconciliation of
gross margin to non-GAAP gross margin:
Tactile Systems Technology, Inc. |
Reconciliation of Gross Margin to Non-GAAP Gross
Margin |
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Six Months Ended |
|
|
June 30, |
|
June 30, |
(Dollars in thousands) |
|
2022 |
|
2021 |
|
2022 |
|
2021 |
Gross profit, as reported |
|
$ |
43,223 |
|
|
$ |
36,205 |
|
|
$ |
77,085 |
|
|
$ |
66,435 |
|
Gross margin, as reported |
|
|
72.5 |
% |
|
|
70.9 |
% |
|
|
71.6 |
% |
|
|
70.8 |
% |
Reconciling items affecting
gross margin: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-cash intangible amortization expense |
|
$ |
311 |
|
|
$ |
10 |
|
|
$ |
621 |
|
|
$ |
20 |
|
Non-GAAP gross profit |
|
$ |
43,534 |
|
|
$ |
36,215 |
|
|
$ |
77,706 |
|
|
$ |
66,455 |
|
Non-GAAP gross margin |
|
|
73.0 |
% |
|
|
70.9 |
% |
|
|
72.2 |
% |
|
|
70.8 |
% |
The following table contains a reconciliation of
GAAP operating income (loss) to non-GAAP operating income
(loss):
Tactile Systems Technology, Inc. |
Reconciliation of GAAP Operating Income (Loss) to Non-GAAP
Operating Income (Loss) |
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Six Months Ended |
|
|
June 30, |
|
June 30, |
(Dollars in thousands) |
|
2022 |
|
2021 |
|
2022 |
|
2021 |
GAAP operating loss |
|
$ |
(4,087 |
) |
|
$ |
(76 |
) |
|
$ |
(18,988 |
) |
|
$ |
(4,160 |
) |
Reconciling items
affecting operating (loss) income: |
|
|
|
|
|
|
|
|
|
|
|
|
Non-cash intangible amortization expense impacting gross
profit |
|
$ |
311 |
|
|
$ |
10 |
|
|
$ |
621 |
|
|
$ |
20 |
|
Non-cash intangible amortization expense impacting operating
expenses |
|
|
645 |
|
|
|
48 |
|
|
|
1,291 |
|
|
|
98 |
|
Change in fair value of earn-out |
|
|
1,100 |
|
|
|
— |
|
|
|
7,550 |
|
|
|
— |
|
Litigation defense costs |
|
|
245 |
|
|
|
853 |
|
|
|
2,349 |
|
|
|
1,720 |
|
Executive transition expenses |
|
|
— |
|
|
|
80 |
|
|
|
— |
|
|
|
186 |
|
Non-GAAP operating (loss)
income: |
|
$ |
(1,786 |
) |
|
$ |
915 |
|
|
$ |
(7,177 |
) |
|
$ |
(2,136 |
) |
The following table contains a reconciliation of
GAAP net income (loss) to non-GAAP net income (loss):
Tactile Systems Technology, Inc. |
Reconciliation of GAAP Net Income (Loss) to Non-GAAP Net
Income (Loss) |
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Six Months Ended |
|
|
June 30, |
|
June 30, |
(Dollars in thousands) |
|
2022 |
|
2021 |
|
2022 |
|
2021 |
GAAP net loss (income) |
|
$ |
(4,640 |
) |
|
$ |
1,305 |
|
|
$ |
(20,208 |
) |
|
$ |
(961 |
) |
Reconciling items
affecting net (loss) income: |
|
|
|
|
|
|
|
|
|
|
|
|
Non-cash intangible amortization expense impacting gross
profit |
|
$ |
311 |
|
|
$ |
10 |
|
|
$ |
621 |
|
|
$ |
20 |
|
Non-cash intangible amortization expense impacting operating
expenses |
|
|
645 |
|
|
|
48 |
|
|
|
1,291 |
|
|
|
98 |
|
Change in fair value of earn-out |
|
|
1,100 |
|
|
|
— |
|
|
|
7,550 |
|
|
|
— |
|
Litigation defense costs |
|
|
245 |
|
|
|
853 |
|
|
|
2,349 |
|
|
|
1,720 |
|
Executive transition expenses |
|
|
— |
|
|
|
80 |
|
|
|
— |
|
|
|
186 |
|
Income tax (expense) benefit on reconciling items* |
|
|
(575 |
) |
|
|
(248 |
) |
|
|
(2,953 |
) |
|
|
(506 |
) |
Non-GAAP net (loss)
income |
|
$ |
(2,914 |
) |
|
$ |
2,048 |
|
|
$ |
(11,350 |
) |
|
$ |
557 |
|
* The effect of income tax on the reconciling items is estimated
using the Company's effective statutory tax rate. |
The following table contains a reconciliation of
net (loss) income to Adjusted EBITDA and Adjusted EBITDA loss for
the three and six months ended June 30, 2022 and 2021, as well as
the dollar and percentage change between the comparable
periods:
Tactile Systems Technology, Inc. |
Reconciliation of Net (Loss) Income to Non-GAAP Adjusted
EBITDA (Loss) |
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Increase |
|
Six Months Ended |
|
Increase |
|
|
June 30, |
|
(Decrease) |
|
June 30, |
|
(Decrease) |
(Dollars in thousands) |
|
2022 |
|
2021 |
|
$ |
|
% |
|
2022 |
|
2021 |
|
$ |
|
% |
Net (loss) income |
|
$ |
(4,640 |
) |
|
$ |
1,305 |
|
|
$ |
(5,945 |
) |
|
N.M. |
|
% |
|
$ |
(20,208 |
) |
|
$ |
(961 |
) |
|
$ |
(19,247 |
) |
|
N.M. |
|
% |
Interest expense, net |
|
|
584 |
|
|
|
11 |
|
|
|
573 |
|
|
N.M. |
|
% |
|
|
1,040 |
|
|
|
16 |
|
|
|
1,024 |
|
|
N.M. |
|
% |
Income tax (benefit) expense |
|
|
(20 |
) |
|
|
(1,405 |
) |
|
|
1,385 |
|
|
(99 |
) |
% |
|
|
191 |
|
|
|
(3,233 |
) |
|
|
3,424 |
|
|
(106 |
) |
% |
Depreciation and amortization |
|
|
1,508 |
|
|
|
635 |
|
|
|
873 |
|
|
137 |
|
% |
|
|
3,015 |
|
|
|
1,287 |
|
|
|
1,728 |
|
|
134 |
|
% |
Stock-based compensation |
|
|
2,892 |
|
|
|
2,658 |
|
|
|
234 |
|
|
9 |
|
% |
|
|
5,121 |
|
|
|
5,115 |
|
|
|
6 |
|
|
0 |
|
% |
Change in fair value of earn-out |
|
|
1,100 |
|
|
|
— |
|
|
|
1,100 |
|
|
— |
|
|
|
|
7,550 |
|
|
|
— |
|
|
|
7,550 |
|
|
— |
|
|
Litigation defense costs |
|
|
245 |
|
|
|
853 |
|
|
|
(608 |
) |
|
(71 |
) |
% |
|
|
2,349 |
|
|
|
1,720 |
|
|
|
629 |
|
|
37 |
|
% |
Executive transition costs |
|
|
— |
|
|
|
80 |
|
|
|
(80 |
) |
|
(100 |
) |
% |
|
|
— |
|
|
|
186 |
|
|
|
(186 |
) |
|
(100 |
) |
% |
Adjusted EBITDA
(loss) |
|
$ |
1,669 |
|
|
$ |
4,137 |
|
|
$ |
(2,468 |
) |
|
(60 |
) |
% |
|
$ |
(942 |
) |
|
$ |
4,130 |
|
|
$ |
(5,072 |
) |
|
(123 |
) |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investor Inquiries:
Mike Piccinino, CFA
ICR Westwicke
443-213-0500
investorrelations@tactilemedical.com
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