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 fourth
quarter and full year ended December 31, 2021.
Fourth Quarter 2021
Summary:
- Total revenue increased 4%
year-over-year to $61.7 million, compared to $59.2 million in
fourth quarter 2020.
- Total revenue in fourth quarter
2021 included $4.3 million of revenue from the AffloVest
respiratory therapy business, acquired on September 8, 2021.
- Operating income of $3.8 million,
compared to operating income of $7.0 million in fourth quarter
2020.
- Non-GAAP operating income of $6.4
million, compared to non-GAAP operating income of $7.8 million in
fourth quarter of 2020.
- Net loss of $7.5 million, compared
to net income of $12.1 million in fourth quarter 2020.
- Non-GAAP net loss of $5.5 million,
compared to non-GAAP net income of $11.8 million in fourth quarter
of 2020.
- Adjusted EBITDA of $9.5 million,
compared to Adjusted EBITDA of $10.8 million in fourth quarter
2020.
Full Year 2021 Summary:
- Total revenue increased 11%
year-over-year to $208.1 million, compared to $187.1 million in
2020.
- Total revenue in 2021 included $5.1
million of revenue from the AffloVest respiratory therapy business,
acquired on September 8, 2021.
- Operating loss of $1.8 million,
compared to operating loss of $3.6 million in 2020.
- Non-GAAP operating income of $5.3
million, compared to non-GAAP operating income of $2.8 million in
2020.
- Net loss of $11.8 million, compared
to net loss of $0.6 million in 2020.
- Non-GAAP net loss of $6.5 million,
compared to non-GAAP net income of $3.3 million in 2020.
- Adjusted EBITDA of $17.7 million,
compared to Adjusted EBITDA of $16.0 million in 2020.
Highlights Subsequent to Quarter End:
- On January 5, 2022, the Company
announced the appointment of Valerie L. Asbury and D. Brent Shafer
to the Company’s Board of Directors.
- On February 18, 2022, the Company
announced that the qui tam lawsuit filed by a competitor has been
dropped and subsequently dismissed by a federal judge in Texas.
Tactile Medical will not pay any damages, penalties or other
compensation.
“Our fourth quarter sales performance exceeded
our guidance, driven by stronger-than-anticipated sales of our
Flexitouch Plus systems,” said Dan Reuvers, President and Chief
Executive Officer of Tactile Medical. “We were pleased to achieve
these results given the continuation of two primary headwinds that
emerged during the third quarter: the impact of COVID-19 variants
and challenges related to salesforce staffing. Our team performed
admirably during the fourth quarter in spite of these headwinds,
providing support for our existing customers, expanding our base of
prescribing accounts and integrating the AffloVest business.”
Mr. Reuvers continued, “While we entered January
amid an Omicron surge and the task of filling key sales roles, we
expect these issues to be more impactful in the first half of the
year, giving way to more normalized conditions in the back half of
the year. We plan to focus on salesforce productivity, deeper
penetration within our newly expanded prescriber base and the
commercialization of new products later in the year. A bolstered
field team, new garments that improve the patient experience and a
mobile app that engages patients should help us more efficiently
bring therapeutic relief to the millions of still under-diagnosed
and under-treated lymphedema patients. We’re equally excited to
support our AffloVest channel partners to bring airway clearance
therapy to the 500,000 patients suffering from bronchiectasis.”
Fourth Quarter 2021 Financial
Results
Total revenue in the fourth quarter of 2021
increased $2.5 million, or 4%, to $61.7 million, compared to $59.2
million in the fourth quarter of 2020. The increase in total
revenue was attributable to $4.3 million in sales of the recently
acquired AffloVest product line, which more than offset a $1.6
million, or 3%, decrease in sales and rentals of the Flexitouch
system, and a $0.2 million, or 2%, decrease in sales and rentals of
the Entre system in the quarter ended December 31, 2021. Fourth
quarter 2021 revenue was negatively impacted by the prolonged
recovery from COVID-19, including the resurgence due to COVID-19
variants during the period, which resulted in restricted access to
clinics and hospitals and disrupted the recovery in patient visits
versus the pre-COVID environment. In addition, the challenging
labor market, coupled with our vaccine policy, impacted our ability
to recruit and retain quality candidates for our direct sales
force.
Gross profit in the fourth quarter of 2021
increased $3.0 million, or 7%, to $44.8 million, compared to $41.9
million in the fourth quarter of 2020. Gross margin was 72.6% of
revenue, compared to 70.6% of revenue in the fourth quarter of
2020. The increase in gross margin primarily resulted from the
addition of the AffloVest product line and changes in the mix of
sales and rentals by payer. Non-GAAP gross margin was 73.3% of
revenue, compared to 70.7% of revenue in the fourth quarter of
2020.
Operating expenses in the fourth quarter of 2021
increased $6.2 million, or 18%, to $41.0 million, compared to $34.9
million in the fourth quarter of 2020. The increase in operating
expenses was primarily driven by sales and marketing expense, which
increased $5.0 million, or 26%, to $24.8 million, largely due to
increases in personnel-related compensation expense and
travel-related expenses. The increase in operating expenses was
also driven by a $0.3 million increase in reimbursement, general
and administrative expenses, a $0.4 million increase in intangible
asset amortization and earn-out expense, and a $0.4 million
increase in research and development expenses. The $0.4 million
increase in non-cash intangible amortization and non-cash earn-out
expense was primarily attributable to the increase in intangible
assets associated with the AffloVest acquisition, partially offset
by a $0.2 million decrease in the estimated fair value of our
earn-out liability.
Operating income was $3.8 million in the fourth
quarter of 2021, compared to $7.0 million in the fourth quarter of
2020. Non-GAAP operating income in the fourth quarter of 2021 was
$6.4 million, compared to Non-GAAP operating income of $7.8 million
in the fourth quarter of 2020.
Other expense was $0.4 million in the fourth
quarter of 2021, compared to other income of $1.2 million in the
fourth quarter of 2020. The change in other expense/income was due
to $1.2 million recognized in the fourth quarter of 2020 under the
Coronavirus Aid, Relief, and Economic Security Act (CARES Act)
Provider Relief Fund to provide relief for lost revenues from the
COVID-19 public health emergency.
Income tax expense was $10.9 million in the
fourth quarter of 2021, compared to an income tax benefit of $3.9
million in the fourth quarter of 2020. The current year tax expense
was driven by the recording of a full valuation allowance against
our deferred tax assets.
Net loss in the fourth quarter of 2021 was $7.5
million, or $0.38 per diluted share, compared to net income of
$12.1 million, or $0.61 per diluted share, in the fourth quarter of
2020. Non-GAAP net loss in the fourth quarter of 2021 was $5.5
million, compared to Non-GAAP net income of $11.8 million in the
fourth quarter of 2020.
Weighted average shares used to compute diluted
net income/loss per share was 19.8 million in the fourth quarter of
both 2021 and 2020.
Adjusted EBITDA was $9.5 million in the fourth
quarter of 2021, compared to $10.8 million in the fourth quarter of
2020.
Full Year 2021 Financial Results:
Total revenue for the twelve months
ended December 31, 2021, increased $20.9 million, or
11%, to $208.1 million, compared to $187.1
million for the twelve months ended December 31, 2020.
The increase in revenue was driven by an increase of $12.3 million,
or 8%, in sales and rentals of the Flexitouch system, $5.1 million
in sales of the recently acquired AffloVest respiratory therapy
business and an increase of $3.5 million, or 15% in sales and
rentals of the Entre system for the twelve months
ended December 31, 2021. Revenue for the twelve months
ended December 31, 2021, benefited from the initial stages of
recovery from the COVID-19 pandemic during the first half of 2021,
as well as an expanded prescriber base. However, revenue in the
second half of 2021 was negatively impacted by the prolonged
recovery from COVID-19, including the resurgence due to variants,
which resulted in restricted access to clinics and hospitals and
disrupted the recovery in patient visits versus the pre-COVID
environment. In addition, the challenging labor market coupled with
our vaccine policy impacted our ability to recruit and retain
quality candidates for our direct sales force.
Net loss for the twelve months
ended December 31, 2021, was $11.8 million, or $0.60
per diluted share, compared to a net loss of $0.6 million, or $0.03
per diluted share, for the twelve months ended December
31, 2020. Non-GAAP net loss for the twelve months
ended December 31, 2021, was $6.5 million, compared to
Non-GAAP net income of $3.3 million for the twelve months
ended December 31, 2020.
Weighted average shares used to compute diluted
net loss per share were 19.8 million and 19.3 million for the
twelve months ended December 31, 2021 and 2020,
respectively.
Adjusted EBITDA was $17.7 million in the twelve
months ended December 31, 2021, compared to $16.0 million in the
twelve months ended December 31, 2020.
Balance Sheet Summary
As of December 31, 2021, the Company had $28.2
million in cash and cash equivalents and $55.0 million of
outstanding borrowings under its credit agreement, compared to
$47.9 million in cash and cash equivalents and no outstanding
borrowings on its revolving credit facility as of December 31,
2020. The change in cash and debt was primarily due to the funding
of the AffloVest acquisition which closed on September 8, 2021.
2022 Financial Outlook
The Company expects full year 2022 total revenue
in the range of $235.0 million to $240.0 million, representing
growth of approximately 13% to 15% year-over-year, compared to
total revenue of $208.1 million in 2021.
Conference Call
Management will host a conference call at 5:00
p.m. Eastern Time on February 22, 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 13726731. 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 13726731. 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; 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; the Company’s ability to effectively integrate the
acquisition of the AffloVest product line; 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, non-GAAP gross margin,
non-GAAP operating income, and non-GAAP net income (loss), 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, plus acquisition costs, less CARES Act
funding, 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, inventory write-offs and inventory purchase
price adjustments. Non-GAAP operating income in this release
represents operating income (loss) adjusted for non-cash intangible
amortization expense, inventory write-offs, inventory purchase
price adjustments, impairment of intangibles, acquisition costs and
expenses, 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, inventory write-offs, inventory purchase
price adjustments, impairment of intangibles, acquisition costs and
expenses, CARES Act funding, 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. |
Consolidated Balance Sheets |
(Unaudited) |
|
|
December 31, |
|
December 31, |
(In thousands, except share and per share data) |
|
2021 |
|
2020 |
Assets |
|
|
|
|
|
Current
assets |
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
28,229 |
|
$ |
47,855 |
Accounts receivable |
|
|
49,478 |
|
|
43,849 |
Net investment in leases |
|
|
12,482 |
|
|
10,708 |
Inventories |
|
|
19,217 |
|
|
18,563 |
Prepaid expenses and other current assets |
|
|
4,141 |
|
|
2,638 |
Total current assets |
|
|
113,547 |
|
|
123,613 |
Non-current
assets |
|
|
|
|
|
|
Property and equipment, net |
|
|
6,750 |
|
|
6,957 |
Right of use operating lease assets |
|
|
23,984 |
|
|
20,132 |
Intangible assets, net |
|
|
54,081 |
|
|
1,680 |
Goodwill |
|
|
31,063 |
|
|
— |
Accounts receivable, non-current |
|
|
12,847 |
|
|
9,433 |
Deferred income taxes |
|
|
— |
|
|
10,198 |
Other non-current assets |
|
|
1,998 |
|
|
2,074 |
Total non-current assets |
|
|
130,723 |
|
|
50,474 |
Total assets |
|
$ |
244,270 |
|
$ |
174,087 |
Liabilities and
Stockholders' Equity |
|
|
|
|
|
|
Current
liabilities |
|
|
|
|
|
|
Accounts payable |
|
$ |
5,023 |
|
$ |
4,197 |
Note payable |
|
|
2,960 |
|
|
— |
Earn-out, current |
|
|
3,250 |
|
|
— |
Accrued payroll and related taxes |
|
|
12,139 |
|
|
11,588 |
Accrued expenses |
|
|
5,262 |
|
|
4,423 |
Income taxes payable |
|
|
16 |
|
|
2,658 |
Operating lease liabilities |
|
|
2,506 |
|
|
2,006 |
Other current liabilities |
|
|
3,305 |
|
|
1,842 |
Total current liabilities |
|
|
34,461 |
|
|
26,714 |
Non-current
liabilities |
|
|
|
|
|
|
Revolving line of credit, non-current |
|
|
24,857 |
|
|
— |
Note payable, non-current |
|
|
26,933 |
|
|
— |
Earn-out, non-current |
|
|
2,950 |
|
|
— |
Accrued warranty reserve, non-current |
|
|
3,108 |
|
|
3,235 |
Income taxes payable, non-current |
|
|
348 |
|
|
— |
Operating lease liabilities, non-current |
|
|
23,354 |
|
|
19,388 |
Deferred income taxes |
|
|
32 |
|
|
— |
Total non-current liabilities |
|
|
81,582 |
|
|
22,623 |
Total liabilities |
|
|
116,043 |
|
|
49,337 |
|
|
|
|
|
|
|
Stockholders’
equity: |
|
|
|
|
|
|
Preferred stock, $0.001 par value, 50,000,000 shares authorized;
none issued and outstanding as of December 31, 2021 and December
31, 2020 |
|
|
— |
|
|
— |
Common stock, $0.001 par value, 300,000,000 shares authorized;
19,877,786 shares issued and outstanding as of December 31, 2021;
19,492,718 shares issued and outstanding as of December 31,
2020 |
|
|
20 |
|
|
19 |
Additional paid-in capital |
|
|
119,962 |
|
|
104,675 |
Retained earnings |
|
|
8,245 |
|
|
20,056 |
Total stockholders’ equity |
|
|
128,227 |
|
|
124,750 |
Total liabilities and stockholders’ equity |
|
$ |
244,270 |
|
$ |
174,087 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tactile Systems Technology, Inc. |
Consolidated Statements of Operations |
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Year Ended |
|
|
December 31, |
|
December 31, |
(In thousands, except share and per share data) |
|
2021 |
|
|
2020 |
|
|
2021 |
|
|
2020 |
|
Revenue |
|
|
|
|
|
|
|
|
|
|
|
|
Sales revenue |
|
$ |
53,699 |
|
|
$ |
51,783 |
|
|
$ |
177,914 |
|
|
$ |
161,497 |
|
Rental revenue |
|
|
8,029 |
|
|
|
7,460 |
|
|
|
30,143 |
|
|
|
25,633 |
|
Total revenue |
|
|
61,728 |
|
|
|
59,243 |
|
|
|
208,057 |
|
|
|
187,130 |
|
Cost of
revenue |
|
|
|
|
|
|
|
|
|
|
|
|
Cost of sales revenue |
|
|
13,797 |
|
|
|
14,441 |
|
|
|
50,222 |
|
|
|
45,309 |
|
Cost of rental revenue |
|
|
3,121 |
|
|
|
2,949 |
|
|
|
9,622 |
|
|
|
9,011 |
|
Total cost of revenue |
|
|
16,918 |
|
|
|
17,390 |
|
|
|
59,844 |
|
|
|
54,320 |
|
Gross
profit |
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit - sales revenue |
|
|
39,902 |
|
|
|
37,342 |
|
|
|
127,692 |
|
|
|
116,188 |
|
Gross profit - rental revenue |
|
|
4,908 |
|
|
|
4,511 |
|
|
|
20,521 |
|
|
|
16,622 |
|
Gross profit |
|
|
44,810 |
|
|
|
41,853 |
|
|
|
148,213 |
|
|
|
132,810 |
|
Operating
expenses |
|
|
|
|
|
|
|
|
|
|
|
|
Sales and marketing |
|
|
24,826 |
|
|
|
19,778 |
|
|
|
86,775 |
|
|
|
79,634 |
|
Research and development |
|
|
1,774 |
|
|
|
1,373 |
|
|
|
5,659 |
|
|
|
5,264 |
|
Reimbursement, general and administrative |
|
|
14,000 |
|
|
|
13,661 |
|
|
|
56,802 |
|
|
|
51,343 |
|
Intangible asset amortization and earn-out |
|
|
445 |
|
|
|
49 |
|
|
|
739 |
|
|
|
197 |
|
Total operating expenses |
|
|
41,045 |
|
|
|
34,861 |
|
|
|
149,975 |
|
|
|
136,438 |
|
(Loss) income from
operations |
|
|
3,765 |
|
|
|
6,992 |
|
|
|
(1,762 |
) |
|
|
(3,628 |
) |
Other (expense) income |
|
|
(377 |
) |
|
|
1,186 |
|
|
|
(531 |
) |
|
|
1,367 |
|
(Loss) income before
income taxes |
|
|
3,388 |
|
|
|
8,178 |
|
|
|
(2,293 |
) |
|
|
(2,261 |
) |
Income tax expense
(benefit) |
|
|
10,883 |
|
|
|
(3,935 |
) |
|
|
9,518 |
|
|
|
(1,641 |
) |
Net (loss)
income |
|
$ |
(7,495 |
) |
|
$ |
12,113 |
|
|
$ |
(11,811 |
) |
|
$ |
(620 |
) |
Net (loss) income per common
share |
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
(0.38 |
) |
|
$ |
0.62 |
|
|
$ |
(0.60 |
) |
|
$ |
(0.03 |
) |
Diluted |
|
$ |
(0.38 |
) |
|
$ |
0.61 |
|
|
$ |
(0.60 |
) |
|
$ |
(0.03 |
) |
Weighted-average common shares
used to compute net (loss) income per common share |
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
19,790,838 |
|
|
|
19,415,640 |
|
|
|
19,719,485 |
|
|
|
19,346,929 |
|
Diluted |
|
|
19,790,838 |
|
|
|
19,747,365 |
|
|
|
19,719,485 |
|
|
|
19,346,929 |
|
|
|
|
|
|
|
|
Tactile Systems Technology, Inc. |
Consolidated Statements of Cash Flows |
(Unaudited) |
|
|
|
|
|
Year Ended December 31, |
(In thousands) |
|
2021 |
|
|
2020 |
|
Cash flows from
operating activities |
|
|
|
|
|
|
Net (loss) income |
|
$ |
(11,811 |
) |
|
$ |
(620 |
) |
Adjustments to reconcile net (loss) income to net cash provided by
operating activities: |
|
|
|
|
|
|
Depreciation and amortization |
|
|
3,681 |
|
|
|
2,794 |
|
Net amortization of premiums and discounts on securities
available-for-sale |
|
|
— |
|
|
|
(91 |
) |
Deferred income taxes |
|
|
10,230 |
|
|
|
(1,233 |
) |
Stock-based compensation expense |
|
|
10,173 |
|
|
|
10,689 |
|
Gain on other investments and maturities of marketable
securities |
|
|
— |
|
|
|
(11 |
) |
Impairment losses |
|
|
— |
|
|
|
4,025 |
|
Loss on disposal of property and equipment |
|
|
20 |
|
|
|
— |
|
Change in fair value of earn-out liability |
|
|
(200 |
) |
|
|
— |
|
Changes in assets and liabilities, net of acquisition: |
|
|
|
|
|
|
Accounts receivable |
|
|
(5,629 |
) |
|
|
(10,405 |
) |
Net investment in leases |
|
|
(1,774 |
) |
|
|
(2,561 |
) |
Inventories |
|
|
972 |
|
|
|
318 |
|
Income taxes |
|
|
(2,294 |
) |
|
|
1,972 |
|
Prepaid expenses and other assets |
|
|
(1,489 |
) |
|
|
(528 |
) |
Right of use operating lease assets |
|
|
614 |
|
|
|
559 |
|
Medicare accounts receivable, non-current |
|
|
(3,414 |
) |
|
|
(5,249 |
) |
Accounts payable |
|
|
826 |
|
|
|
337 |
|
Accrued payroll and related taxes |
|
|
551 |
|
|
|
1,490 |
|
Accrued expenses and other liabilities |
|
|
2,175 |
|
|
|
1,308 |
|
Net cash provided by operating activities |
|
|
2,631 |
|
|
|
2,794 |
|
Cash flows from
investing activities |
|
|
|
|
|
|
Proceeds from maturities of securities available-for-sale |
|
|
— |
|
|
|
22,500 |
|
Payments related to acquisition |
|
|
(79,829 |
) |
|
|
— |
|
Purchases of property and equipment |
|
|
(2,103 |
) |
|
|
(2,059 |
) |
Intangible assets costs |
|
|
(252 |
) |
|
|
(232 |
) |
Other investments |
|
|
— |
|
|
|
(30 |
) |
Net (used in) provided by investing activities |
|
|
(82,184 |
) |
|
|
20,179 |
|
Cash flows from
financing activities |
|
|
|
|
|
|
Proceeds from issuance of note payable |
|
|
30,000 |
|
|
|
— |
|
Proceeds from revolving line of credit |
|
|
25,000 |
|
|
|
— |
|
Payment of deferred debt issuance costs |
|
|
(188 |
) |
|
|
— |
|
Taxes paid for net share settlement of performance and restricted
stock units |
|
|
(1,173 |
) |
|
|
(1,854 |
) |
Proceeds from exercise of common stock options |
|
|
3,976 |
|
|
|
1,068 |
|
Proceeds from the issuance of common stock from the employee stock
purchase plan |
|
|
2,312 |
|
|
|
2,898 |
|
Net cash provided by financing activities |
|
|
59,927 |
|
|
|
2,112 |
|
Net (decrease)
increase in cash and cash equivalents |
|
|
(19,626 |
) |
|
|
25,085 |
|
Cash and cash equivalents –
beginning of period |
|
|
47,855 |
|
|
|
22,770 |
|
Cash and cash equivalents –
end of period |
|
$ |
28,229 |
|
|
$ |
47,855 |
|
|
|
|
|
|
|
|
Supplemental cash flow
disclosure |
|
|
|
|
|
|
Cash paid for taxes |
|
$ |
1,593 |
|
|
$ |
543 |
|
Capital expenditures incurred but not yet paid |
|
$ |
23 |
|
|
$ |
17 |
|
The following table summarizes revenue by
product for the three and twelve months ended December 31, 2021 and
2020:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Year Ended |
|
|
December 31, |
|
December 31, |
(In thousands) |
|
2021 |
|
|
2020 |
|
|
2021 |
|
|
2020 |
|
Revenue |
|
|
|
|
|
|
|
|
|
|
|
|
Flexitouch system |
|
$ |
49,684 |
|
|
$ |
51,293 |
|
|
$ |
176,228 |
|
|
$ |
163,914 |
|
Entre system |
|
|
7,761 |
|
|
|
7,949 |
|
|
|
26,685 |
|
|
|
23,216 |
|
AffloVest |
|
|
4,283 |
|
|
|
— |
|
|
|
5,144 |
|
|
|
— |
|
Total |
|
$ |
61,728 |
|
|
$ |
59,242 |
|
|
$ |
208,057 |
|
|
$ |
187,130 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Percentage of total
revenue |
|
|
|
|
|
|
|
|
|
|
|
|
Flexitouch system |
|
|
80 |
% |
|
|
87 |
% |
|
|
85 |
% |
|
|
88 |
% |
Entre system |
|
|
13 |
% |
|
|
13 |
% |
|
|
13 |
% |
|
|
12 |
% |
AffloVest |
|
|
7 |
% |
|
|
— |
% |
|
|
2 |
% |
|
|
— |
% |
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 |
|
Year Ended |
|
|
December 31, |
December 31, |
(Dollars in thousands) |
|
2021 |
|
2020 |
|
2021 |
|
2020 |
Revenue |
|
$ |
61,728 |
|
|
$ |
59,243 |
|
|
$ |
208,057 |
|
|
$ |
187,130 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit, as reported |
|
$ |
44,810 |
|
|
$ |
41,853 |
|
|
$ |
148,213 |
|
|
$ |
132,810 |
|
Gross margin, as reported |
|
|
72.6 |
% |
|
|
70.6 |
% |
|
|
71.2 |
% |
|
|
71.0 |
% |
Reconciling items affecting
gross margin: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-cash intangible amortization expense |
|
$ |
308 |
|
|
$ |
10 |
|
|
$ |
412 |
|
|
$ |
175 |
|
Inventory write-offs |
|
|
— |
|
|
|
— |
|
|
|
588 |
|
|
|
428 |
|
Inventory purchase price adjustments |
|
|
150 |
|
|
|
— |
|
|
|
200 |
|
|
|
— |
|
Non-GAAP gross profit |
|
$ |
45,268 |
|
|
$ |
41,863 |
|
|
$ |
149,413 |
|
|
$ |
133,413 |
|
Non-GAAP gross margin |
|
|
73.3 |
% |
|
|
70.7 |
% |
|
|
71.8 |
% |
|
|
71.3 |
% |
The following table contains a reconciliation of
GAAP operating income (loss) to non-GAAP operating income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tactile Systems Technology, Inc. |
Reconciliation of GAAP Operating Income (Loss) to Non-GAAP
Operating Income |
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Year Ended |
|
|
December 31, |
December 31, |
(Dollars in thousands) |
|
2021 |
|
2020 |
|
2021 |
|
2020 |
GAAP operating income (loss) |
|
$ |
3,765 |
|
|
$ |
6,992 |
|
|
$ |
(1,762 |
) |
|
$ |
(3,628 |
) |
Reconciling items
affecting operating income (loss): |
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-cash intangible amortization expense impacting gross
profit |
|
$ |
308 |
|
|
$ |
10 |
|
|
$ |
412 |
|
|
$ |
175 |
|
Inventory write-offs |
|
|
— |
|
|
|
— |
|
|
|
588 |
|
|
|
428 |
|
Inventory purchase price adjustments |
|
|
150 |
|
|
|
— |
|
|
|
200 |
|
|
|
— |
|
Non-cash intangible amortization expense impacting operating
expenses |
|
|
645 |
|
|
|
49 |
|
|
|
939 |
|
|
|
197 |
|
Impairment of intangibles |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
3,597 |
|
Acquisition costs & expenses |
|
|
112 |
|
|
|
— |
|
|
|
886 |
|
|
|
— |
|
Change in fair value of earn-out |
|
|
(200 |
) |
|
|
— |
|
|
|
(200 |
) |
|
|
— |
|
Litigation defense costs |
|
|
1,318 |
|
|
|
599 |
|
|
|
3,669 |
|
|
|
1,030 |
|
Executive transition expenses |
|
|
340 |
|
|
|
105 |
|
|
|
526 |
|
|
|
981 |
|
Non-GAAP operating
income: |
|
$ |
6,438 |
|
|
$ |
7,755 |
|
|
$ |
5,258 |
|
|
$ |
2,780 |
|
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 |
|
Year Ended |
|
|
December 31, |
December 31, |
(Dollars in thousands) |
|
2021 |
|
2020 |
|
2021 |
|
2020 |
GAAP net (loss) income |
|
$ |
(7,495 |
) |
|
$ |
12,113 |
|
|
$ |
(11,811 |
) |
|
$ |
(620 |
) |
Reconciling items
affecting net (loss) income: |
|
|
|
|
|
|
|
|
|
|
|
|
Non-cash intangible amortization expense impacting gross
profit |
|
$ |
308 |
|
|
$ |
10 |
|
|
$ |
412 |
|
|
$ |
175 |
|
Inventory write-offs |
|
|
— |
|
|
|
— |
|
|
|
588 |
|
|
|
428 |
|
Inventory purchase price adjustments |
|
|
150 |
|
|
|
— |
|
|
|
200 |
|
|
|
— |
|
Non-cash intangible amortization expense impacting operating
expenses |
|
|
645 |
|
|
|
49 |
|
|
|
939 |
|
|
|
197 |
|
Impairment of intangibles |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
3,597 |
|
Acquisition costs & expenses |
|
|
112 |
|
|
|
— |
|
|
|
886 |
|
|
|
— |
|
CARES Act funding |
|
|
— |
|
|
|
(1,176 |
) |
|
|
— |
|
|
|
(1,176 |
) |
Change in fair value of earn-out |
|
|
(200 |
) |
|
|
— |
|
|
|
(200 |
) |
|
|
— |
|
Litigation defense costs |
|
|
1,318 |
|
|
|
599 |
|
|
|
3,669 |
|
|
|
1,030 |
|
Executive transition expenses |
|
|
340 |
|
|
|
105 |
|
|
|
526 |
|
|
|
981 |
|
Income tax (expense) benefit on reconciling items* |
|
|
(668 |
) |
|
|
103 |
|
|
|
(1,755 |
) |
|
|
(1,308 |
) |
Non-GAAP net (loss)
income |
|
$ |
(5,490 |
) |
|
$ |
11,803 |
|
|
$ |
(6,546 |
) |
|
$ |
3,304 |
|
* 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 for the three and twelve
months ended December 31, 2021 and 2020, 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 |
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Increase |
|
Year Ended |
|
Increase |
|
|
December 31, |
|
(Decrease) |
|
December 31, |
|
(Decrease) |
(Dollars in thousands) |
|
2021 |
|
|
2020 |
|
|
$ |
|
% |
|
2021 |
|
|
2020 |
|
|
$ |
|
% |
Net (loss)
income |
|
$ |
(7,495 |
) |
|
$ |
12,113 |
|
|
$ |
(19,608 |
) |
|
(162 |
) |
% |
|
$ |
(11,811 |
) |
|
$ |
(620 |
) |
|
$ |
(11,191 |
) |
|
N.M. |
% |
Interest expense (income), net |
|
|
378 |
|
|
|
(14 |
) |
|
|
392 |
|
|
N.M. |
% |
|
|
499 |
|
|
|
(75 |
) |
|
|
574 |
|
|
N.M. |
% |
Income tax expense (benefit) |
|
|
10,883 |
|
|
|
(3,935 |
) |
|
|
14,818 |
|
|
N.M. |
% |
|
|
9,518 |
|
|
|
(1,641 |
) |
|
|
11,159 |
|
|
N.M. |
% |
Depreciation and amortization |
|
|
1,531 |
|
|
|
692 |
|
|
|
839 |
|
|
121 |
|
% |
|
|
3,681 |
|
|
|
2,794 |
|
|
|
887 |
|
|
32 |
|
% |
Stock-based compensation |
|
|
2,470 |
|
|
|
2,401 |
|
|
|
69 |
|
|
3 |
|
% |
|
|
10,173 |
|
|
|
10,689 |
|
|
|
(516 |
) |
|
(5 |
) |
% |
Impairment charges and inventory write-offs |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
— |
|
% |
|
|
588 |
|
|
|
4,025 |
|
|
|
(3,437 |
) |
|
(85 |
) |
% |
Acquisition costs |
|
|
262 |
|
|
|
— |
|
|
|
262 |
|
|
— |
|
% |
|
|
1,086 |
|
|
|
— |
|
|
|
1,086 |
|
|
— |
|
% |
CARES Act funding |
|
|
— |
|
|
|
(1,176 |
) |
|
|
1,176 |
|
|
(100 |
) |
% |
|
|
— |
|
|
|
(1,176 |
) |
|
|
1,176 |
|
|
(100 |
) |
% |
Change in fair value of earn-out |
|
|
(200 |
) |
|
|
— |
|
|
|
(200 |
) |
|
— |
|
|
|
|
(200 |
) |
|
|
— |
|
|
|
(200 |
) |
|
— |
|
|
Litigation defense costs |
|
|
1,318 |
|
|
|
599 |
|
|
|
719 |
|
|
120 |
|
% |
|
|
3,669 |
|
|
|
1,030 |
|
|
|
2,639 |
|
|
N.M. |
% |
Executive transition costs |
|
|
340 |
|
|
|
105 |
|
|
|
235 |
|
|
N.M. |
% |
|
|
526 |
|
|
|
981 |
|
|
|
(455 |
) |
|
(46 |
) |
% |
Adjusted
EBITDA |
|
$ |
9,487 |
|
|
$ |
10,785 |
|
|
$ |
(1,298 |
) |
|
(12 |
) |
% |
|
$ |
17,729 |
|
|
$ |
16,007 |
|
|
$ |
1,722 |
|
|
11 |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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Investor Inquiries:
Mike Piccinino, CFA
Managing Director
Westwicke Partners
443-213-0500
investorrelations@tactilemedical.com
Tactile Systems Technology (NASDAQ:TCMD)
Historical Stock Chart
From Mar 2024 to Apr 2024
Tactile Systems Technology (NASDAQ:TCMD)
Historical Stock Chart
From Apr 2023 to Apr 2024