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 first
quarter ended March 31, 2022.
First Quarter 2022 Summary:
- Total revenue increased 12%
year-over-year to $48.0 million, compared to $42.8 million in first
quarter 2021.
- Total revenue in first quarter 2022
included $7.3 million of revenue from sales of airway clearance
products, which includes the AffloVest product line acquired on
September 8, 2021.
- Operating loss of $14.9 million,
compared to operating loss of $4.1 million in first quarter 2021.
- Non-GAAP operating loss of $5.4
million, compared to non-GAAP operating loss of $3.1 million in
first quarter of 2021.
- Net loss of $15.6 million, compared
to net loss of $2.3 million in first quarter 2021.
- Non-GAAP net loss of $8.4 million,
compared to non-GAAP net loss of $1.5 million in first quarter of
2021.
- Adjusted EBITDA loss of $2.6
million, compared to Adjusted EBITDA loss of $7,000 in first
quarter 2021.
First Quarter 2022 Highlights:
- 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 had been
dropped and subsequently dismissed by a federal judge in Texas.
Tactile Medical did not pay any damages, penalties or other
compensation associated with the dismissal.
“During the first quarter, we were pleased to
achieve overall sales performance that exceeded our expectations,
while navigating the anticipated headwinds related to COVID
variants and salesforce staffing challenges,” said Dan Reuvers,
President and Chief Executive Officer of Tactile Medical. “While we
saw high rates of patient, provider and employee absenteeism
related to the Omicron variant surge, our team continued to make
progress in supporting our existing prescribers, educating new
accounts and filling key sales roles. The strength we saw in sales
of our airway clearance products, which drove our increased
revenue, was an encouraging early indicator that our AffloVest
product line is an important addition to the other therapies
chronic respiratory patients depend upon.”
Mr. Reuvers continued, “We are reaffirming our
2022 total revenue guidance today based on our progress to-date,
and expect strong performance as our recently hired and promoted
sales representatives become more productive and COVID-related
headwinds give way to more normalized conditions. We remain focused
on onboarding and training new sales representatives, leveraging
our expanded base of prescribers, enhancing our lymphedema product
portfolio and supporting our AffloVest channel partners. We believe
that our continued execution with respect to these initiatives will
position Tactile Medical for strong sales performance in 2022 and
beyond as we address the needs of the millions of underserved
patients living with lymphedema, bronchiectasis and other related
chronic conditions.”
First Quarter 2022 Financial
Results
Total revenue in the first quarter of 2022
increased $5.2 million, or 12%, to $48.0 million, compared to $42.8
million in the first quarter of 2021. The increase in total revenue
was attributable to $7.3 million in sales of the airway clearance
product line, which includes the AffloVest product acquired on
September 8, 2021, partially offset by a decrease of $2.1 million,
or 5%, in sales and rentals of the lymphedema product line in the
quarter ended March 31, 2022, compared to the 2021 first quarter.
First quarter 2022 revenue was negatively impacted by the prolonged
recovery from COVID-19, including the resurgence due to the Omicron
variant 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 impacted the Company’s ability to recruit and retain
quality candidates for its direct sales force.
Gross profit in the first quarter of 2022
increased $3.6 million, or 12%, to $33.9 million, compared to $30.2
million in the first quarter of 2021. Gross margin was 70.6% of
revenue, compared to 70.7% of revenue in the first quarter of 2021.
Non-GAAP gross margin was 71.2% of revenue, compared to 70.7% of
revenue in the first quarter of 2021.
Operating expenses in the first quarter of 2022
increased $14.4 million, or 42%, to $48.8 million, compared to
$34.3 million in the first quarter of 2021. The increase in
operating expenses was primarily driven by a:
- $7.0 million increase in non-cash
intangible asset amortization and non-cash earn-out expense due to
an increase in the estimated fair value of the Company’s earn-out
liability, as well as an increase in intangible asset amortization,
associated with the AffloVest acquisition;
- $5.1 million increase in sales and
marketing expenses, largely due to increases in personnel- related
compensation expense as a result of increased headcount, and travel
related expenses;
- $2.0 million increase in
reimbursement, general and administrative expenses driven by
increased occupancy costs, depreciation expense and legal fees, as
well as an increase in personnel-related compensation expense as a
result of increased headcount in our reimbursement operations,
payer relations, and corporate functions; and
- $0.3 million increase in research
and development expenses.
Operating loss was $14.9 million in the first
quarter of 2022, compared to $4.1 million in the first quarter of
2021. Non-GAAP operating loss in the first quarter of 2022 was $5.4
million, compared to $3.1 million in the first quarter of 2021.
Other expense was $0.5 million in the first
quarter of 2022, compared to $10,000 in the first quarter of 2021.
The change in other expense was primarily due to an increase in
interest expense.
Income tax expense was $0.2 million in the first
quarter of 2022, compared to an income tax benefit of $1.8 million
in the first quarter of 2021. The difference is related to a full
valuation allowance being recorded against all deferred tax assets
in the current year period.
Net loss in the first quarter of 2022 was $15.6
million, or $0.78 per diluted share, compared to $2.3 million, or
$0.12 per diluted share, in the first quarter of 2021. Non-GAAP net
loss in the first quarter of 2022 was $8.4 million, compared to
$1.5 million in the first quarter of 2021.
Weighted average shares used to compute diluted
net loss per share was 19.9 million and 19.5 million in the first
quarters of 2022 and 2021, respectively.
Adjusted EBITDA loss was $2.6 million in the
first quarter of 2022, compared to an adjusted EBITDA loss of
$7,000 in the first quarter of 2021.
Balance Sheet Summary
As of March 31, 2022, the Company had $21.2
million in cash and cash equivalents and $51.3 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.
2022 Financial Outlook
The Company continues to expect 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 May 2, 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 13728512. 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 13728512. 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; 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 loss, non-GAAP gross margin,
non-GAAP operating 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) |
|
|
March 31, |
|
December 31, |
(In thousands, except share and per share data) |
|
2022 |
|
|
2021 |
Assets |
|
|
|
|
|
Current
assets |
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
21,150 |
|
|
$ |
28,229 |
Accounts receivable |
|
|
45,927 |
|
|
|
49,478 |
Net investment in leases |
|
|
12,307 |
|
|
|
12,482 |
Inventories |
|
|
19,479 |
|
|
|
19,217 |
Prepaid expenses and other current assets |
|
|
4,374 |
|
|
|
4,141 |
Total current assets |
|
|
103,237 |
|
|
|
113,547 |
Non-current
assets |
|
|
|
|
|
|
Property and equipment, net |
|
|
6,330 |
|
|
|
6,750 |
Right of use operating lease assets |
|
|
23,315 |
|
|
|
23,984 |
Intangible assets, net |
|
|
53,169 |
|
|
|
54,081 |
Goodwill |
|
|
31,063 |
|
|
|
31,063 |
Accounts receivable, non-current |
|
|
13,577 |
|
|
|
12,847 |
Other non-current assets |
|
|
2,321 |
|
|
|
1,998 |
Total non-current assets |
|
|
129,775 |
|
|
|
130,723 |
Total assets |
|
$ |
233,012 |
|
|
$ |
244,270 |
Liabilities and
Stockholders' Equity |
|
|
|
|
|
|
Current
liabilities |
|
|
|
|
|
|
Accounts payable |
|
$ |
6,200 |
|
|
$ |
5,023 |
Note payable |
|
|
2,964 |
|
|
|
2,960 |
Earn-out, current |
|
|
9,150 |
|
|
|
3,250 |
Accrued payroll and related taxes |
|
|
9,481 |
|
|
|
12,139 |
Accrued expenses |
|
|
5,673 |
|
|
|
5,262 |
Income taxes payable |
|
|
26 |
|
|
|
16 |
Operating lease liabilities |
|
|
2,504 |
|
|
|
2,506 |
Other current liabilities |
|
|
4,275 |
|
|
|
3,305 |
Total current liabilities |
|
|
40,273 |
|
|
|
34,461 |
Non-current
liabilities |
|
|
|
|
|
|
Revolving line of credit, non-current |
|
|
24,878 |
|
|
|
24,857 |
Note payable, non-current |
|
|
23,199 |
|
|
|
26,933 |
Earn-out, non-current |
|
|
3,500 |
|
|
|
2,950 |
Accrued warranty reserve, non-current |
|
|
2,997 |
|
|
|
3,108 |
Income taxes payable, non-current |
|
|
298 |
|
|
|
348 |
Operating lease liabilities, non-current |
|
|
22,742 |
|
|
|
23,354 |
Deferred income taxes |
|
|
147 |
|
|
|
32 |
Total non-current liabilities |
|
|
77,761 |
|
|
|
81,582 |
Total liabilities |
|
|
118,034 |
|
|
|
116,043 |
|
|
|
|
|
|
|
Stockholders’
equity: |
|
|
|
|
|
|
Preferred stock, $0.001 par value, 50,000,000 shares authorized;
none issued and outstanding as of March 31, 2022 and December 31,
2021 |
|
|
— |
|
|
|
— |
Common stock, $0.001 par value, 300,000,000 shares authorized;
19,939,843 shares issued and outstanding as of March 31, 2022;
19,877,786 shares issued and outstanding as of December 31,
2021 |
|
|
20 |
|
|
|
20 |
Additional paid-in capital |
|
|
122,281 |
|
|
|
119,962 |
(Accumulated deficit) retained earnings |
|
|
(7,323 |
) |
|
|
8,245 |
Total stockholders’ equity |
|
|
114,978 |
|
|
|
128,227 |
Total liabilities and stockholders’ equity |
|
$ |
233,012 |
|
|
$ |
244,270 |
|
|
|
|
|
|
|
Tactile Systems Technology, Inc. |
Condensed Consolidated Statements of
Operations |
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
March 31, |
(In thousands, except share and per share data) |
|
2022 |
|
|
2021 |
|
Revenue |
|
|
|
|
|
|
Sales revenue |
|
$ |
41,170 |
|
|
$ |
36,125 |
|
Rental revenue |
|
|
6,808 |
|
|
|
6,647 |
|
Total revenue |
|
|
47,978 |
|
|
|
42,772 |
|
Cost of
revenue |
|
|
|
|
|
|
Cost of sales revenue |
|
|
12,080 |
|
|
|
10,691 |
|
Cost of rental revenue |
|
|
2,036 |
|
|
|
1,851 |
|
Total cost of revenue |
|
|
14,116 |
|
|
|
12,542 |
|
Gross
profit |
|
|
|
|
|
|
Gross profit - sales revenue |
|
|
29,090 |
|
|
|
25,434 |
|
Gross profit - rental revenue |
|
|
4,772 |
|
|
|
4,796 |
|
Gross profit |
|
|
33,862 |
|
|
|
30,230 |
|
Operating
expenses |
|
|
|
|
|
|
Sales and marketing |
|
|
23,930 |
|
|
|
18,785 |
|
Research and development |
|
|
1,520 |
|
|
|
1,270 |
|
Reimbursement, general and administrative |
|
|
16,217 |
|
|
|
14,209 |
|
Intangible asset amortization and earn-out |
|
|
7,096 |
|
|
|
50 |
|
Total operating expenses |
|
|
48,763 |
|
|
|
34,314 |
|
Loss from
operations |
|
|
(14,901 |
) |
|
|
(4,084 |
) |
Other expense |
|
|
(456 |
) |
|
|
(10 |
) |
Loss before income
taxes |
|
|
(15,357 |
) |
|
|
(4,094 |
) |
Income tax expense
(benefit) |
|
|
211 |
|
|
|
(1,828 |
) |
Net loss |
|
$ |
(15,568 |
) |
|
$ |
(2,266 |
) |
Net loss per common share |
|
|
|
|
|
|
Basic |
|
$ |
(0.78 |
) |
|
$ |
(0.12 |
) |
Diluted |
|
$ |
(0.78 |
) |
|
$ |
(0.12 |
) |
Weighted-average common shares
used to compute net loss per common share |
|
|
|
|
|
|
Basic |
|
|
19,898,502 |
|
|
|
19,545,558 |
|
Diluted |
|
|
19,898,502 |
|
|
|
19,545,558 |
|
|
|
|
|
|
|
|
Tactile Systems Technology, Inc. |
Condensed Consolidated Statements of Cash
Flows |
(Unaudited) |
|
|
|
|
|
Three Months Ended March 31, |
(In thousands) |
|
2022 |
|
|
2021 |
|
Cash flows from
operating activities |
|
|
|
|
|
|
Net loss |
|
$ |
(15,568 |
) |
|
$ |
(2,266 |
) |
Adjustments to reconcile net loss to net cash used in operating
activities: |
|
|
|
|
|
|
Depreciation and amortization |
|
|
1,507 |
|
|
|
652 |
|
Deferred income taxes |
|
|
115 |
|
|
|
(1,828 |
) |
Stock-based compensation expense |
|
|
2,228 |
|
|
|
2,457 |
|
Change in fair value of earn-out liability |
|
|
6,450 |
|
|
|
— |
|
Changes in assets and liabilities, net of acquisition: |
|
|
|
|
|
|
Accounts receivable |
|
|
3,551 |
|
|
|
3,806 |
|
Net investment in leases |
|
|
175 |
|
|
|
(546 |
) |
Inventories |
|
|
(262 |
) |
|
|
(3,479 |
) |
Income taxes |
|
|
(40 |
) |
|
|
— |
|
Prepaid expenses and other assets |
|
|
(556 |
) |
|
|
447 |
|
Right of use operating lease assets |
|
|
55 |
|
|
|
49 |
|
Medicare accounts receivable, non-current |
|
|
(730 |
) |
|
|
(1,294 |
) |
Accounts payable |
|
|
1,177 |
|
|
|
5,022 |
|
Accrued payroll and related taxes |
|
|
(2,658 |
) |
|
|
(3,041 |
) |
Accrued expenses and other liabilities |
|
|
1,350 |
|
|
|
(779 |
) |
Net cash used in operating activities |
|
|
(3,206 |
) |
|
|
(800 |
) |
Cash flows from
investing activities |
|
|
|
|
|
|
Purchases of property and equipment |
|
|
(131 |
) |
|
|
(249 |
) |
Intangible assets expenditures |
|
|
(44 |
) |
|
|
(62 |
) |
Net cash used in investing activities |
|
|
(175 |
) |
|
|
(311 |
) |
Cash flows from
financing activities |
|
|
|
|
|
|
Payment on note payable |
|
|
(3,750 |
) |
|
|
— |
|
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 |
|
|
91 |
|
|
|
1,296 |
|
Net cash (used in) provided by financing activities |
|
|
(3,698 |
) |
|
|
181 |
|
Net decrease in cash
and cash equivalents |
|
|
(7,079 |
) |
|
|
(930 |
) |
Cash and cash equivalents –
beginning of period |
|
|
28,229 |
|
|
|
47,855 |
|
Cash and cash equivalents –
end of period |
|
$ |
21,150 |
|
|
$ |
46,925 |
|
|
|
|
|
|
|
|
Supplemental cash flow
disclosure |
|
|
|
|
|
|
Cash paid for interest |
|
$ |
413 |
|
|
$ |
— |
|
Cash paid for taxes |
|
$ |
12 |
|
|
$ |
13 |
|
Capital expenditures incurred but not yet paid |
|
$ |
8 |
|
|
$ |
133 |
|
The following table summarizes revenue by
product line for the three months ended March 31, 2022 and
2021:
|
|
|
|
|
|
|
Three Months Ended |
|
March 31, |
(In thousands) |
2022 |
|
|
2021 |
|
Revenue |
|
|
|
|
|
Lymphedema products |
$ |
40,654 |
|
|
$ |
42,772 |
|
Airway clearance products |
|
7,324 |
|
|
|
— |
|
Total |
$ |
47,978 |
|
|
$ |
42,772 |
|
|
|
|
|
|
|
Percentage of total
revenue |
|
|
|
|
|
Lymphedema products |
|
85 |
% |
|
|
100 |
% |
Airway clearance products |
|
15 |
% |
|
|
— |
% |
Total |
|
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 |
|
|
March 31, |
(Dollars in thousands) |
|
2022 |
|
2021 |
Gross profit, as reported |
|
$ |
33,862 |
|
|
$ |
30,230 |
|
Gross margin, as reported |
|
|
70.6 |
% |
|
|
70.7 |
% |
Reconciling items affecting
gross margin: |
|
|
|
|
|
|
|
|
Non-cash intangible amortization expense |
|
$ |
310 |
|
|
$ |
10 |
|
Non-GAAP gross profit |
|
$ |
34,172 |
|
|
$ |
30,240 |
|
Non-GAAP gross margin |
|
|
71.2 |
% |
|
|
70.7 |
% |
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 |
|
|
March 31, |
(Dollars in thousands) |
|
2022 |
|
2021 |
GAAP operating loss |
|
$ |
(14,901 |
) |
|
|
$ |
(4,084 |
) |
|
Reconciling items
affecting operating loss: |
|
|
|
|
|
|
|
|
Non-cash intangible amortization expense impacting gross
profit |
|
$ |
310 |
|
|
|
$ |
10 |
|
|
Non-cash intangible amortization expense impacting operating
expenses |
|
|
646 |
|
|
|
|
49 |
|
|
Change in fair value of earn-out |
|
|
6,450 |
|
|
|
|
— |
|
|
Litigation defense costs |
|
|
2,104 |
|
|
|
|
867 |
|
|
Executive transition expenses |
|
|
— |
|
|
|
|
106 |
|
|
Non-GAAP operating loss: |
|
$ |
(5,391 |
) |
|
|
$ |
(3,052 |
) |
|
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 |
|
|
March 31, |
(Dollars in thousands) |
|
2022 |
|
2021 |
GAAP net loss |
|
$ |
(15,568 |
) |
|
|
$ |
(2,266 |
) |
|
Reconciling items
affecting net loss: |
|
|
|
|
|
|
|
|
Non-cash intangible amortization expense impacting gross
profit |
|
$ |
310 |
|
|
|
$ |
10 |
|
|
Non-cash intangible amortization expense impacting operating
expenses |
|
|
646 |
|
|
|
|
49 |
|
|
Change in fair value of earn-out |
|
|
6,450 |
|
|
|
|
— |
|
|
Litigation defense costs |
|
|
2,104 |
|
|
|
|
867 |
|
|
Executive transition expenses |
|
|
— |
|
|
|
|
106 |
|
|
Income tax (expense) benefit on reconciling items* |
|
|
(2,378 |
) |
|
|
|
(258 |
) |
|
Non-GAAP net loss |
|
$ |
(8,436 |
) |
|
|
$ |
(1,492 |
) |
|
* 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 loss for the three months
ended March 31, 2022 and 2021, as well as the dollar and percentage
change between the comparable periods:
|
|
|
|
|
|
|
|
|
|
|
|
|
Tactile Systems Technology, Inc. |
Reconciliation of Net Loss to Non-GAAP Adjusted EBITDA
Loss |
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Increase |
|
|
March 31, |
|
(Decrease) |
(Dollars in thousands) |
|
2022 |
|
|
2021 |
|
|
$ |
|
% |
Net loss |
|
$ |
(15,568 |
) |
|
$ |
(2,266 |
) |
|
$ |
(13,302 |
) |
|
N.M. |
% |
Interest expense, net |
|
|
456 |
|
|
|
5 |
|
|
|
451 |
|
|
N.M. |
% |
Income tax expense (benefit) |
|
|
211 |
|
|
|
(1,828 |
) |
|
|
2,039 |
|
|
(112 |
) |
% |
Depreciation and amortization |
|
|
1,507 |
|
|
|
652 |
|
|
|
855 |
|
|
131 |
|
% |
Stock-based compensation |
|
|
2,228 |
|
|
|
2,457 |
|
|
|
(229 |
) |
|
(9 |
) |
% |
Change in fair value of earn-out |
|
|
6,450 |
|
|
|
— |
|
|
|
6,450 |
|
|
— |
|
|
Litigation defense costs |
|
|
2,104 |
|
|
|
867 |
|
|
|
1,237 |
|
|
143 |
|
% |
Executive transition costs |
|
|
— |
|
|
|
106 |
|
|
|
(106 |
) |
|
(100 |
) |
% |
Adjusted EBITDA
loss |
|
$ |
(2,612 |
) |
|
$ |
(7 |
) |
|
$ |
(2,605 |
) |
|
N.M. |
% |
Investor Inquiries:
Mike Piccinino, CFA
ICR Westwicke
443-213-0500
investorrelations@tactilemedical.com
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