Tactile Systems Technology, Inc. (“Tactile Medical”) (Nasdaq:
TCMD), a medical technology company focused on developing medical
devices for the at-home treatment of chronic diseases, today
reported financial results for the second quarter and six months
ended June 30, 2021.
Second Quarter 2021 Summary:
- Total revenue increased 45%
year-over-year to $51.1 million, compared to $35.1 million in
second quarter 2020.
- Operating loss of $0.1 million,
compared to operating loss of $8.0 million in second quarter
2020.
- Net income of $1.3 million,
compared to net loss of $13.9 million in second quarter 2020.
- Adjusted EBITDA of $4.1 million,
compared to Adjusted EBITDA loss of $0.7 million in second quarter
2020.
- Cash and cash equivalents of $49.0
million at June 30, 2021, compared to $47.9 million at December 31,
2020.
Second Quarter 2021 Highlights:
- On April 20, 2021, the Company
announced the appointment of Eric Pauls to the position of Senior
Vice President of Sales, effective May 1, 2021. Mr. Pauls succeeded
Bryan Rishe, who retired in May.
- On April 30, 2021, the Company
entered into a Restated Credit Agreement with Wells Fargo Bank. The
Restated Credit Agreement provides for a $25 million revolving
credit facility with a three-year maturity and includes a $30
million accordion feature, allowing the Company to expand the total
aggregate principal amount up to $55 million, subject to certain
conditions. The prior Credit Agreement provided for a $10 million
revolving credit facility with a $25 million accordion
feature.
“In the second quarter we achieved results that
exceeded our expectations, led by our team’s solid execution and
continued recovery within the broader U.S. healthcare environment,”
said Dan Reuvers, President and Chief Executive Officer of Tactile
Medical. “Although our business continued to face headwinds during
the second quarter from COVID-related restrictions adopted by
healthcare facilities, we saw notable improvements in the number of
patients seeking care and clinic capacity, compared to the initial
months of 2021. Our team continued to address remaining
COVID-related access issues by employing virtual solutions to
expand adoption among both new and existing prescribers.”
Mr. Reuvers added, “Given the encouraging trends
we saw in the second quarter, we remain confident in our prospects
for 2021. Our updated 2021 financial outlook reflects the
better-than-expected results that we achieved during the second
quarter and reaffirms our conviction in the ability to deliver
strong sales growth in the second half of the year. Specifically,
we continue to anticipate year-over-year revenue growth approaching
20% in the second half of 2021, driven by continued execution and
improvements in the operating environment. In view of the large
number of underserved patients that suffer from lymphedema, our
clinically proven products and our commitment to leading in market
development, we remain focused on returning to our historical track
record of growth.”
Second Quarter 2021 Financial
Results
Total revenue in the second quarter of 2021
increased $15.9 million, or 45%, to $51.1 million, compared to
$35.1 million in the second quarter of 2020. The increase in total
revenue was attributable to an increase of $14.0 million, or 45%,
in sales and rentals of the Flexitouch system, and an increase of
$2.0 million, or 49%, in sales and rentals of the Entre system in
the quarter ended June 30, 2021. Second quarter 2021 revenue
benefited from the initial stages of recovery from the COVID-19
pandemic, with a portion of healthcare facilities and clinics
relaxing restrictions and increasing patient throughput. The
increase in second quarter revenue was further driven by
improvements in salesforce productivity and effective virtual
education events yielding an expanded prescriber base and an
increase in Medicare patients served.
Gross profit in the second quarter of 2021
increased $11.3 million, or 45%, to $36.2 million, compared to
$24.9 million in the second quarter of 2020. Gross margin was 71%
of revenue, consistent with the second quarter of 2020.
Operating expenses in the second quarter of 2021
increased $3.4 million, or 10%, to $36.3 million, compared to $32.9
million in the second quarter of 2020. The increase in operating
expenses was primarily driven by an increase in sales and marketing
expense of $3.5 million, or 20%, to $20.9 million, primarily due to
continued investments in our commercial team, patient training and
resumed travel and entertainment expenses. In addition, research
and development expense increased $0.1 million, or 9%, to $1.2
million, primarily due to an increase in clinical studies activity.
The increase in these expenses was partially offset by
reimbursement, general and administrative expenses, which decreased
$0.2 million, or 2%, to $14.1 million, primarily due to a $3.6
million impairment charge related to the write-off of our Airwear
wrap-related long-lived assets recorded in the second quarter of
2020, partially offset by a $1.9 million increase in
personnel-related expenses due to increased headcount as well as a
combined $1.4 million increase in occupancy costs, depreciation
expense and legal fees.
Operating loss in the second quarter of 2021
decreased $7.9 million, or 99%, to $0.1 million, compared to an
operating loss of $8.0 million in the second quarter of 2020.
Income tax benefit in the second quarter of 2021
was $1.4 million, compared to income tax expense of $5.9 million in
the second quarter of 2020. The year-over-year change was primarily
due to a tax benefit related to a research and development credit
recognized in the second quarter of 2021.
Net income in the second quarter of 2021 was
$1.3 million, or $0.07 per diluted share, compared to a net loss of
$13.9 million, or $0.72 per diluted share, in the second quarter of
2020. Weighted average shares used to compute diluted net
income/loss per share were 20.0 million and 19.3 million in the
second quarters of 2021 and 2020, respectively.
Adjusted EBITDA was $4.1 million in the second
quarter of 2021, compared to Adjusted EBITDA loss of $0.7 million
in the second quarter of 2020.
First Six Months 2021 Financial Results:
Total revenue for the six months ended June
30, 2021, increased $15.0 million, or 19%, to $93.8
million, compared to $78.8 million for the six months
ended June 30, 2020. The increase in revenue was driven by an
increase of $12.8 million, or 18%, in sales and rentals of the
Flexitouch system, and an increase of $2.2 million, or 24%, in
sales and rentals of the Entre system for the six months
ended June 30, 2021. Revenue for the six months
ended June 30, 2021, benefited from the initial stages of
recovery from the COVID-19 pandemic, with a portion of healthcare
facilities and clinics relaxing restrictions and increasing patient
throughput, as well as an expanded prescriber base.
Net loss for the six months ended June 30,
2021, was $1.0 million, or $0.05 per diluted share,
compared to net loss of $15.2 million, or $0.79 per diluted
share, for the six months ended June 30, 2020. Weighted
average shares used to compute diluted net loss per share were 19.6
million and 19.3 million for the six months ended June 30,
2021 and 2020, respectively.
Adjusted EBITDA was $4.1 million in the six
months ended June 30, 2021, compared to adjusted EBITDA loss of
$1.2 million in the six months ended June 30, 2020.
Cash Position
On June 30, 2021, cash and cash equivalents were
$49.0 million, compared to $47.9 million at December 31, 2020. The
Company had no outstanding borrowings on its revolving credit
facility as of June 30, 2021.
On April 30, 2021, the Company entered into a
Restated Credit Agreement with Wells Fargo Bank to renew and expand
the size of its senior secured credit facility. The Restated Credit
Agreement provides for a $25 million revolving credit facility with
a three-year maturity and includes a $30 million accordion feature,
which could allow the Company to expand the total aggregate
principal amount up to $55 million, subject to certain
conditions.
2021 Financial Outlook
The Company now expects full year 2021 total revenue in the
range of $216.3 million to $224.5 million, representing growth of
approximately 16% to 20% year-over-year, compared to total revenue
of $187.1 million in 2020. The Company’s prior 2021 revenue
guidance expectations called for total revenue in the range of
$215.3 million to $224.5 million, representing an increase of 15%
to 20%.
Conference Call
Management will host a conference call at 5:00
p.m. Eastern Time on August 2, 2021, 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 13721055. 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 13721055. 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 therapy devices that treat chronic swelling conditions such
as lymphedema and chronic venous insufficiency. Tactile Medical’s
Mission is to help people suffering from chronic diseases live
better and care for themselves at home. The Company’s unique
offering includes advanced, clinically proven pneumatic compression
devices, as well as continuity of care services provided by a
national network of product specialists and trainers, reimbursement
experts, patient advocates and clinicians. This combination of
products and services ensures that tens of thousands of patients
annually receive the at-home treatment necessary to better manage
their chronic conditions. Tactile Medical takes pride in
the fact that our solutions help increase clinical efficacy, reduce
overall healthcare costs and improve the quality of life for
patients with chronic conditions.
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; the course of the COVID-19
pandemic and its impact on general economic, business and market
conditions; the Company’s inability to execute on its plans to
respond to the COVID-19 pandemic; 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;
price increases for supplies and components; 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 and Adjusted EBITDA margin,
which differ from financial measures calculated in accordance with
U.S. generally accepted accounting principles (“GAAP”).
Adjusted EBITDA 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 impairment charges and inventory write-offs, plus
litigation defense costs and plus executive transition costs.
Adjusted EBITDA margin in this release represents net margin (net
income or loss divided by total revenue), plus or less the same
items as with Adjusted EBITDA, but on a percentage of revenue
basis. Reconciliations of Adjusted EBITDA to net income (loss), and
Adjusted EBITDA margin to net margin, 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.
Adjusted EBITDA and Adjusted EBITDA margin are
non-GAAP financial measures and should not be considered as an
alternative to, or superior to, net income or loss or net margin,
respectively, 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.
|
|
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|
|
|
|
Tactile Systems Technology, Inc. |
Condensed Consolidated Balance Sheets |
(Unaudited) |
|
|
June 30, |
|
December 31, |
(In thousands, except share and per share data) |
|
2021 |
|
2020 |
Assets |
|
|
|
|
|
Current
assets |
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
49,007 |
|
$ |
47,855 |
Accounts receivable |
|
|
42,629 |
|
|
43,849 |
Net investment in leases |
|
|
11,741 |
|
|
10,708 |
Inventories |
|
|
21,153 |
|
|
18,563 |
Prepaid expenses and other current assets |
|
|
2,092 |
|
|
2,638 |
Total current assets |
|
|
126,622 |
|
|
123,613 |
Non-current
assets |
|
|
|
|
|
|
Property and equipment, net |
|
|
6,399 |
|
|
6,957 |
Right of use operating lease assets |
|
|
19,138 |
|
|
20,132 |
Intangible assets, net |
|
|
1,702 |
|
|
1,680 |
Accounts receivable, non-current |
|
|
11,874 |
|
|
9,433 |
Deferred income taxes |
|
|
13,779 |
|
|
10,198 |
Other non-current assets |
|
|
2,118 |
|
|
2,074 |
Total non-current assets |
|
|
55,010 |
|
|
50,474 |
Total assets |
|
$ |
181,632 |
|
$ |
174,087 |
Liabilities and
Stockholders' Equity |
|
|
|
|
|
|
Current
liabilities |
|
|
|
|
|
|
Accounts payable |
|
$ |
5,060 |
|
$ |
4,197 |
Accrued payroll and related taxes |
|
|
10,303 |
|
|
11,588 |
Accrued expenses |
|
|
4,010 |
|
|
4,423 |
Income taxes payable |
|
|
1,530 |
|
|
2,658 |
Operating lease liabilities |
|
|
2,024 |
|
|
2,006 |
Other current liabilities |
|
|
3,716 |
|
|
1,842 |
Total current liabilities |
|
|
26,643 |
|
|
26,714 |
Non-current
liabilities |
|
|
|
|
|
|
Accrued warranty reserve, non-current |
|
|
3,450 |
|
|
3,235 |
Income taxes payable, non-current |
|
|
348 |
|
|
— |
Operating lease liabilities, non-current |
|
|
18,475 |
|
|
19,388 |
Total non-current liabilities |
|
|
22,273 |
|
|
22,623 |
Total liabilities |
|
|
48,916 |
|
|
49,337 |
|
|
|
|
|
|
|
Stockholders’
equity: |
|
|
|
|
|
|
Preferred stock, $0.001 par value, 50,000,000 shares authorized;
none issued and outstanding as of June 30, 2021 and December 31,
2020 |
|
|
— |
|
|
— |
Common stock, $0.001 par value, 300,000,000 shares authorized;
19,782,295 shares issued and outstanding as of June 30, 2021;
19,492,718 shares issued and outstanding as of December 31,
2020 |
|
|
20 |
|
|
19 |
Additional paid-in capital |
|
|
113,601 |
|
|
104,675 |
Retained earnings |
|
|
19,095 |
|
|
20,056 |
Total stockholders’ equity |
|
|
132,716 |
|
|
124,750 |
Total liabilities and stockholders’
equity |
|
$ |
181,632 |
|
$ |
174,087 |
|
|
|
|
|
|
|
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) |
|
2021 |
|
2020 |
|
2021 |
|
2020 |
Revenue |
|
|
|
|
|
|
|
|
|
|
|
|
Sales revenue |
|
$ |
43,630 |
|
|
$ |
29,518 |
|
|
$ |
79,755 |
|
|
$ |
67,141 |
|
Rental revenue |
|
|
7,430 |
|
|
|
5,602 |
|
|
|
14,077 |
|
|
|
11,654 |
|
Total revenue |
|
|
51,060 |
|
|
|
35,120 |
|
|
|
93,832 |
|
|
|
78,795 |
|
Cost of
revenue |
|
|
|
|
|
|
|
|
|
|
|
|
Cost of sales revenue |
|
|
12,638 |
|
|
|
8,388 |
|
|
|
23,329 |
|
|
|
19,310 |
|
Cost of rental revenue |
|
|
2,217 |
|
|
|
1,820 |
|
|
|
4,068 |
|
|
|
3,500 |
|
Total cost of revenue |
|
|
14,855 |
|
|
|
10,208 |
|
|
|
27,397 |
|
|
|
22,810 |
|
Gross
profit |
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit - sales revenue |
|
|
30,992 |
|
|
|
21,130 |
|
|
|
56,426 |
|
|
|
47,831 |
|
Gross profit - rental revenue |
|
|
5,213 |
|
|
|
3,782 |
|
|
|
10,009 |
|
|
|
8,154 |
|
Gross profit |
|
|
36,205 |
|
|
|
24,912 |
|
|
|
66,435 |
|
|
|
55,985 |
|
Operating
expenses |
|
|
|
|
|
|
|
|
|
|
|
|
Sales and marketing |
|
|
20,933 |
|
|
|
17,398 |
|
|
|
39,718 |
|
|
|
40,368 |
|
Research and development |
|
|
1,206 |
|
|
|
1,105 |
|
|
|
2,476 |
|
|
|
2,789 |
|
Reimbursement, general and administrative |
|
|
14,142 |
|
|
|
14,372 |
|
|
|
28,401 |
|
|
|
25,242 |
|
Total operating expenses |
|
|
36,281 |
|
|
|
32,875 |
|
|
|
70,595 |
|
|
|
68,399 |
|
Loss from
operations |
|
|
(76 |
) |
|
|
(7,963 |
) |
|
|
(4,160 |
) |
|
|
(12,414 |
) |
Other (expense) income |
|
|
(24 |
) |
|
|
36 |
|
|
|
(34 |
) |
|
|
302 |
|
Loss before income
taxes |
|
|
(100 |
) |
|
|
(7,927 |
) |
|
|
(4,194 |
) |
|
|
(12,112 |
) |
Income tax (benefit)
expense |
|
|
(1,405 |
) |
|
|
5,923 |
|
|
|
(3,233 |
) |
|
|
3,045 |
|
Net income
(loss) |
|
$ |
1,305 |
|
|
$ |
(13,850 |
) |
|
$ |
(961 |
) |
|
$ |
(15,157 |
) |
Net income (loss) per common
share |
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
0.07 |
|
|
$ |
(0.72 |
) |
|
$ |
(0.05 |
) |
|
$ |
(0.79 |
) |
Diluted |
|
$ |
0.07 |
|
|
$ |
(0.72 |
) |
|
$ |
(0.05 |
) |
|
$ |
(0.79 |
) |
Weighted-average common shares
used to compute net income (loss) per common share |
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
19,691,156 |
|
|
|
19,337,644 |
|
|
|
19,618,759 |
|
|
|
19,255,612 |
|
Diluted |
|
|
20,047,277 |
|
|
|
19,337,644 |
|
|
|
19,618,759 |
|
|
|
19,255,612 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tactile Systems Technology, Inc. |
Condensed Consolidated Statements of Cash
Flows |
(Unaudited) |
|
|
|
|
|
Six Months Ended June 30, |
(In thousands) |
|
2021 |
|
2020 |
Cash flows from
operating activities |
|
|
|
|
|
|
Net loss |
|
$ |
(961 |
) |
|
$ |
(15,157 |
) |
Adjustments to reconcile net loss to net cash used in operating
activities: |
|
|
|
|
|
|
Depreciation and amortization |
|
|
1,287 |
|
|
|
1,450 |
|
Net amortization of premiums and discounts on securities
available-for-sale |
|
|
— |
|
|
|
(89 |
) |
Deferred income taxes |
|
|
(3,581 |
) |
|
|
4,282 |
|
Stock-based compensation expense |
|
|
5,115 |
|
|
|
5,124 |
|
Gain on other investments and maturities of marketable
securities |
|
|
— |
|
|
|
40 |
|
Impairment losses |
|
|
— |
|
|
|
4,025 |
|
Changes in assets and liabilities: |
|
|
|
|
|
|
Accounts receivable |
|
|
1,220 |
|
|
|
2,892 |
|
Net investment in leases |
|
|
(1,033 |
) |
|
|
(542 |
) |
Inventories |
|
|
(2,590 |
) |
|
|
(5,945 |
) |
Income taxes |
|
|
(780 |
) |
|
|
(1,646 |
) |
Prepaid expenses and other assets |
|
|
502 |
|
|
|
(317 |
) |
Right of use operating lease assets |
|
|
99 |
|
|
|
135 |
|
Medicare accounts receivable, non-current |
|
|
(2,441 |
) |
|
|
(1,697 |
) |
Accounts payable |
|
|
855 |
|
|
|
1,602 |
|
Accrued payroll and related taxes |
|
|
(1,285 |
) |
|
|
(3,127 |
) |
Accrued expenses and other liabilities |
|
|
1,676 |
|
|
|
990 |
|
Net cash used in operating activities |
|
|
(1,917 |
) |
|
|
(7,980 |
) |
Cash flows from
investing activities |
|
|
|
|
|
|
Proceeds from maturities of securities available-for-sale |
|
|
— |
|
|
|
16,500 |
|
Purchases of property and equipment |
|
|
(603 |
) |
|
|
(660 |
) |
Intangible assets costs |
|
|
(140 |
) |
|
|
(109 |
) |
Net cash (used in) provided by investing
activities |
|
|
(743 |
) |
|
|
15,731 |
|
Cash flows from
financing activities |
|
|
|
|
|
|
Taxes paid for net share settlement of performance and restricted
stock units |
|
|
(1,115 |
) |
|
|
(1,553 |
) |
Proceeds from exercise of common stock options |
|
|
3,385 |
|
|
|
548 |
|
Proceeds from the issuance of common stock from the employee stock
purchase plan |
|
|
1,542 |
|
|
|
1,825 |
|
Net cash provided by financing activities |
|
|
3,812 |
|
|
|
820 |
|
Net increase in cash
and cash equivalents |
|
|
1,152 |
|
|
|
8,571 |
|
Cash and cash equivalents –
beginning of period |
|
|
47,855 |
|
|
|
22,770 |
|
Cash and cash equivalents –
end of period |
|
$ |
49,007 |
|
|
$ |
31,341 |
|
|
|
|
|
|
|
|
Supplemental cash flow
disclosure |
|
|
|
|
|
|
Cash paid for taxes |
|
$ |
1,141 |
|
|
$ |
475 |
|
Capital expenditures incurred but not yet paid |
|
$ |
8 |
|
|
$ |
241 |
|
|
|
|
|
|
|
|
|
|
The following
table summarizes revenue by product for the three and six months
ended June 30, 2021 and 2020: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tactile Systems Technology, Inc. |
Supplemental Financial Information |
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
|
Six Months Ended |
|
|
|
|
June 30, |
|
Change |
|
June 30, |
|
Change |
(Dollars in thousands) |
|
2021 |
|
2020 |
|
$ |
|
% |
|
2021 |
|
2020 |
|
$ |
|
% |
Flexitouch System |
|
$ |
45,093 |
|
$ |
31,127 |
|
$ |
13,966 |
|
45 |
% |
|
$ |
82,530 |
|
$ |
69,713 |
|
$ |
12,817 |
|
18 |
% |
Other products(1) |
|
|
5,967 |
|
|
3,993 |
|
|
1,974 |
|
49 |
% |
|
|
11,302 |
|
|
9,082 |
|
|
2,220 |
|
24 |
% |
Total Revenue |
|
$ |
51,060 |
|
$ |
35,120 |
|
$ |
15,940 |
|
45 |
% |
|
$ |
93,832 |
|
$ |
78,795 |
|
$ |
15,037 |
|
19 |
% |
(1) The “other products” line primarily includes
revenue from our Entre system. The Actitouch system and Airwear
wrap contributed immaterial amounts of revenue for the three and
six months ended June 30, 2021 and 2020.
The following
table contains a reconciliation of net income (loss) to Adjusted
EBITDA for the three and six months ended June 30, 2021 and 2020,
as well as the dollar and percentage change between the comparable
periods: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tactile Systems Technology, Inc. |
Reconciliation of Net Income (Loss) to Non-GAAP Adjusted
EBITDA |
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Increase |
|
Six Months Ended |
|
Increase |
|
|
June 30, |
|
(Decrease) |
|
June 30, |
|
(Decrease) |
(Dollars in thousands) |
|
2021 |
|
2020 |
|
$ |
|
% |
|
2021 |
|
2020 |
|
$ |
|
% |
Net income (loss) |
|
$ |
1,305 |
|
|
$ |
(13,850 |
) |
|
$ |
15,155 |
|
|
(109 |
) |
% |
|
$ |
(961 |
) |
|
$ |
(15,157 |
) |
|
$ |
14,196 |
|
|
(94 |
) |
% |
Interest expense (income), net |
|
|
11 |
|
|
|
(25 |
) |
|
|
36 |
|
|
(144 |
) |
% |
|
|
16 |
|
|
|
(80 |
) |
|
|
96 |
|
|
(120 |
) |
% |
Income tax (benefit) expense |
|
|
(1,405 |
) |
|
|
5,923 |
|
|
|
(7,328 |
) |
|
(124 |
) |
% |
|
|
(3,233 |
) |
|
|
3,045 |
|
|
|
(6,278 |
) |
|
N.M. |
% |
Depreciation and amortization |
|
|
635 |
|
|
|
720 |
|
|
|
(85 |
) |
|
(12 |
) |
% |
|
|
1,287 |
|
|
|
1,450 |
|
|
|
(163 |
) |
|
(11 |
) |
% |
Stock-based compensation |
|
|
2,658 |
|
|
|
2,396 |
|
|
|
262 |
|
|
11 |
|
% |
|
|
5,115 |
|
|
|
5,124 |
|
|
|
(9 |
) |
|
(0 |
) |
% |
Impairment charges and inventory write-offs |
|
|
— |
|
|
|
4,025 |
|
|
|
(4,025 |
) |
|
(100 |
) |
% |
|
|
— |
|
|
|
4,025 |
|
|
|
(4,025 |
) |
|
(100 |
) |
% |
Litigation defense costs |
|
|
853 |
|
|
|
— |
|
|
|
853 |
|
|
— |
|
% |
|
|
1,720 |
|
|
|
— |
|
|
|
1,720 |
|
|
— |
|
% |
Executive transition costs |
|
|
80 |
|
|
|
65 |
|
|
|
15 |
|
|
23 |
|
% |
|
|
186 |
|
|
|
377 |
|
|
|
(191 |
) |
|
(51 |
) |
% |
Adjusted
EBITDA |
|
$ |
4,137 |
|
|
$ |
(746 |
) |
|
$ |
4,883 |
|
|
N.M. |
% |
|
$ |
4,130 |
|
|
$ |
(1,216 |
) |
|
$ |
5,346 |
|
|
N.M. |
% |
The following
table contains a reconciliation of net margin to Adjusted EBITDA
margin for the three and six months ended June 30, 2021 and 2020,
as well as the basis point change between the comparable
periods: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tactile Systems Technology, Inc. |
Reconciliation of Net Margin to Adjusted EBITDA
Margin |
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
|
|
Six Months Ended |
|
|
|
|
|
June 30, |
|
Increase |
|
June 30, |
|
Increase |
(As a
percentage of revenue) |
|
2021 |
|
2020 |
|
(Decrease) |
|
2021 |
|
2020 |
|
(Decrease) |
Net margin |
|
2.6 |
|
% |
|
(39.4 |
) |
% |
|
4,200 |
|
bps |
|
(1.0 |
) |
% |
|
(19.2 |
) |
% |
|
1,820 |
|
bps |
Interest expense (income), net |
|
0.0 |
|
% |
|
(0.1 |
) |
% |
|
10 |
|
bps |
|
0.0 |
|
% |
|
(0.1 |
) |
% |
|
10 |
|
bps |
Income tax (benefit) expense |
|
(2.8 |
) |
% |
|
16.9 |
|
% |
|
(1,970 |
) |
bps |
|
(3.4 |
) |
% |
|
3.9 |
|
% |
|
(730 |
) |
bps |
Depreciation and amortization |
|
1.2 |
|
% |
|
2.1 |
|
% |
|
(90 |
) |
bps |
|
1.4 |
|
% |
|
1.8 |
|
% |
|
(40 |
) |
bps |
Stock-based compensation |
|
5.2 |
|
% |
|
6.8 |
|
% |
|
(160 |
) |
bps |
|
5.5 |
|
% |
|
6.5 |
|
% |
|
(100 |
) |
bps |
Impairment charges and inventory write-offs |
|
0.0 |
|
% |
|
11.4 |
|
% |
|
(1,140 |
) |
bps |
|
0.0 |
|
% |
|
5.1 |
|
% |
|
(510 |
) |
bps |
Litigation defense costs |
|
1.7 |
|
% |
|
0.0 |
|
% |
|
170 |
|
bps |
|
1.7 |
|
% |
|
0.0 |
|
% |
|
170 |
|
bps |
Executive transition costs |
|
0.2 |
|
% |
|
0.2 |
|
% |
|
— |
|
bps |
|
0.2 |
|
% |
|
0.6 |
|
% |
|
(40 |
) |
bps |
Adjusted EBITDA
margin |
|
8.1 |
|
% |
|
(2.1 |
) |
% |
|
1,020 |
|
bps |
|
4.4 |
|
% |
|
(1.5 |
) |
% |
|
590 |
|
bps |
Investor Inquiries:
Mike Piccinino, CFA
Managing Director
Westwicke Partners
443-213-0500
investorrelations@tactilemedical.com
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