Tactile Systems Technology, Inc. (“Tactile Medical”; the “Company”)
(Nasdaq: TCMD), a medical technology company providing therapies
for people with chronic disorders, today reported financial results
for the second quarter ended June 30, 2023.
Second Quarter 2023 Highlights:
- Revenue increased 15%
year-over-year to $68.3M
- Lymphedema revenue increased
16%
- Airway Clearance revenue increased
4%
- Operating income of $2.1M, compared
to operating loss of $4.1M
- Net loss of $0.1M, compared to a
net loss of $4.6M
- Adjusted EBITDA of $6.1M, up from
$1.7M
- Cash Balance of $63.1M on June 30,
2023, compared to $55M on March 31, 2023
- Raised full year 2023 financial
guidance
Highlights Subsequent to Quarter End:
- Sherri Ferstler appointed to the
position of Senior Vice President of Sales, effective July 31,
2023
- The Company’s existing credit
agreement was amended on August 1, 2023 to extend the maturity date
and improve terms
“We delivered total revenue growth of 15%
year-over-year, significant improvements in both our GAAP and
non-GAAP profitability and cash flow from operations of more than
$13 million in the second quarter,” said Dan Reuvers, President and
Chief Executive Officer of Tactile Medical. “Our revenue results
were driven primarily by stronger-than-anticipated performance in
our lymphedema product line – where we saw improvements in sales
team productivity and strong customer adoption following the launch
of our Entre® Plus system – with modest contributions from sales of
our airway clearance products. In addition to our strong operating
performance in the second quarter, we continued to make meaningful
progress in strengthening our balance sheet.”
Mr. Reuvers continued: “We are raising our total
revenue guidance today based on our strong performance over the
first half of 2023. We look forward to driving continued progress
with respect to our stated strategic objectives over the balance of
2023 as we position Tactile Medical for future growth and value
creation.”
Second Quarter 2023 Financial
Results
Total revenue in the second quarter of 2023
increased $8.7 million, or 14.6%, to $68.3 million, compared to
$59.6 million in the second quarter of 2022. The increase in total
revenue was attributable to an increase of $8.4 million, or 16.2%,
in sales and rentals of the lymphedema product line, and an
increase of $0.3 million, or 4.1%, in sales of the airway clearance
product line, compared to the second quarter of 2022.
Gross profit in the second quarter of 2023
increased $5.1 million, or 11.7%, to $48.3 million, compared to
$43.2 million in the second quarter of 2022. Gross margin was 70.7%
of revenue, compared to 72.5% of revenue in the second quarter of
2022. Non-GAAP gross margin was 71.1% of revenue, compared to 73.0%
of revenue in the second quarter of 2022.
Operating expenses in the second quarter of 2023
decreased $1.1 million, or 2.3%, to $46.2 million, compared to
$47.3 million in the second quarter of 2022.
Operating income was $2.1 million in the second
quarter of 2023, compared to an operating loss of $4.1 million in
the second quarter of 2022. Non-GAAP operating income in the second
quarter of 2023 was $3.6 million, compared to a non-GAAP operating
loss of $1.8 million in the second quarter of 2022.
Other expense was $0.8 million in the second
quarter of 2023, compared to $0.6 million in the second quarter of
2022.
Income tax expense was $1.3 million in the
second quarter of 2023, compared to an income tax benefit of
$20,000 in the second quarter of 2022.
Net loss in the second quarter of 2023 was $0.1
million, or $0.00 per diluted share, compared to $4.6 million, or
$0.23 per diluted share, in the second quarter of 2022. Non-GAAP
net income in the second quarter of 2023 was $1.0 million, compared
to a non-GAAP net loss of $2.9 million in the second quarter of
2022.
Weighted average shares used to compute diluted
net loss per share were 23.4 million and 20.0 million for the
second quarters of 2023 and 2022, respectively.
Adjusted EBITDA was $6.1 million in the second
quarter of 2023, compared to $1.7 million in the second quarter of
2022.
First Six Months 2023 Financial
Results:
Total revenue for the six months ended June 30,
2023, increased $19.6 million, or 18.2%, to $127.2 million,
compared to $107.6 million for the six months ended June 30, 2022.
The increase in revenue was attributable to an increase of $17.5
million, or 18.9%, in sales and rentals of the lymphedema product
line and an increase of $2.1 million, or 13.7%, in sales and
rentals of the airway clearance product line.
Net loss for the six months ended June 30, 2023,
was $2.0 million, or $0.09 per diluted share, compared to $20.2
million, or $1.01 per diluted share, for the six months ended June
30, 2022. Non-GAAP net income for the six months ended June 30,
2023, was $0.4 million, compared to a non-GAAP net loss of $11.4
million for the six months ended June 30, 2022.
Weighted average shares used to compute diluted
net loss per share were 22.3 million and 20.0 million for the six
months ended June 30, 2023 and 2022, respectively.
Adjusted EBITDA was $6.6 million in the six
months ended June 30, 2023, compared to adjusted EBITDA loss of
$0.9 million in the six months ended June 30, 2022.
Balance Sheet Summary
As of June 30, 2023, the Company had $63.2
million in cash and cash equivalents and $47.5 million of
outstanding borrowings under its credit agreement, compared to
$21.9 million in cash and cash equivalents and $49.0 million of
outstanding borrowings under its credit agreement as of December
31, 2022.
2023 Financial Outlook
The Company now expects full year 2023 total
revenue in the range of $274 million to $278 million, representing
growth of approximately 11% to 13% year-over-year. The Company’s
prior 2023 revenue guidance expectations called for total revenue
in the range of $271 million to $275 million, representing growth
of approximately 10% to 11.5% year-over-year.
Conference Call
Management will host a conference call at 5:00
p.m. Eastern Time on August 7th, 2023, 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 13739727. 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 13739727. 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. Tactile Medical
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 impact of
inflation, rising interest rates or a recession; 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; adverse economic conditions or intense
competition; price increases for supplies and components; wage and
component price inflation; loss of a key supplier; entry of new
competitors and products; compliance with and changes in federal,
state and local government regulation; loss or retirement of key
executives, including prior to identifying a successor;
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;
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 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 profit,
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 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 or minus the change in fair value of earn-out, and
plus litigation defense costs. Non-GAAP gross profit in this
release represents gross profit plus non-cash intangible
amortization expense. Non-GAAP gross margin in this release
represents non-GAAP gross profit divided by revenue. 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 and litigation defense costs.
Non-GAAP net income (loss) represents net income (loss) adjusted
for non-cash intangible amortization expense, change in fair value
of earn-out and litigation defense costs, 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) |
|
|
2023 |
|
|
|
2022 |
|
Assets |
|
|
|
|
|
Current
assets |
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
63,212 |
|
|
$ |
21,929 |
|
Accounts receivable |
|
|
46,553 |
|
|
|
54,826 |
|
Net investment in leases |
|
|
13,219 |
|
|
|
16,130 |
|
Inventories |
|
|
20,315 |
|
|
|
23,124 |
|
Income taxes receivable |
|
|
1,779 |
|
|
|
— |
|
Prepaid expenses and other current assets |
|
|
4,480 |
|
|
|
3,754 |
|
Total current assets |
|
|
149,558 |
|
|
|
119,763 |
|
Non-current
assets |
|
|
|
|
|
|
Property and equipment, net |
|
|
5,771 |
|
|
|
6,077 |
|
Right of use operating lease assets |
|
|
20,041 |
|
|
|
21,322 |
|
Intangible assets, net |
|
|
48,559 |
|
|
|
50,375 |
|
Goodwill |
|
|
31,063 |
|
|
|
31,063 |
|
Accounts receivable, non-current |
|
|
15,430 |
|
|
|
23,061 |
|
Other non-current assets |
|
|
3,306 |
|
|
|
3,335 |
|
Total non-current assets |
|
|
124,170 |
|
|
|
135,233 |
|
Total assets |
|
$ |
273,728 |
|
|
$ |
254,996 |
|
Liabilities and
Stockholders' Equity |
|
|
|
|
|
|
Current
liabilities |
|
|
|
|
|
|
Accounts payable |
|
$ |
9,296 |
|
|
$ |
9,984 |
|
Note payable |
|
|
2,968 |
|
|
|
2,968 |
|
Earn-out, current |
|
|
9,280 |
|
|
|
13,050 |
|
Accrued payroll and related taxes |
|
|
13,800 |
|
|
|
17,100 |
|
Accrued expenses |
|
|
5,166 |
|
|
|
9,240 |
|
Income taxes payable |
|
|
— |
|
|
|
2,336 |
|
Operating lease liabilities |
|
|
2,529 |
|
|
|
2,500 |
|
Other current liabilities |
|
|
5,481 |
|
|
|
7,152 |
|
Total current liabilities |
|
|
48,520 |
|
|
|
64,330 |
|
Non-current
liabilities |
|
|
|
|
|
|
Revolving line of credit, non-current |
|
|
24,941 |
|
|
|
24,916 |
|
Note payable, non-current |
|
|
19,495 |
|
|
|
20,979 |
|
Accrued warranty reserve, non-current |
|
|
1,957 |
|
|
|
2,207 |
|
Income taxes payable, non-current |
|
|
446 |
|
|
|
298 |
|
Operating lease liabilities, non-current |
|
|
19,606 |
|
|
|
20,866 |
|
Total non-current liabilities |
|
|
66,445 |
|
|
|
69,266 |
|
Total liabilities |
|
|
114,965 |
|
|
|
133,596 |
|
|
|
|
|
|
|
|
Stockholders’
equity: |
|
|
|
|
|
|
Preferred stock, $0.001 par value, 50,000,000 shares authorized;
none issued and outstanding as of June 30, 2023 and December 31,
2022 |
|
|
— |
|
|
|
— |
|
Common stock, $0.001 par value, 300,000,000 shares authorized;
23,458,302 shares issued and outstanding as of June 30, 2023;
20,252,677 shares issued and outstanding as of December 31,
2022 |
|
|
23 |
|
|
|
20 |
|
Additional paid-in capital |
|
|
170,347 |
|
|
|
131,001 |
|
Accumulated deficit |
|
|
(11,607 |
) |
|
|
(9,621 |
) |
Total stockholders’ equity |
|
|
158,763 |
|
|
|
121,400 |
|
Total liabilities and stockholders’ equity |
|
$ |
273,728 |
|
|
$ |
254,996 |
|
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) |
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
Revenue |
|
|
|
|
|
|
|
|
|
|
|
|
Sales revenue |
|
$ |
59,802 |
|
|
$ |
51,265 |
|
|
$ |
112,593 |
|
|
$ |
92,435 |
|
Rental revenue |
|
|
8,537 |
|
|
|
8,380 |
|
|
|
14,592 |
|
|
|
15,188 |
|
Total revenue |
|
|
68,339 |
|
|
|
59,645 |
|
|
|
127,185 |
|
|
|
107,623 |
|
Cost of
revenue |
|
|
|
|
|
|
|
|
|
|
|
|
Cost of sales revenue |
|
|
16,865 |
|
|
|
13,810 |
|
|
|
31,507 |
|
|
|
25,890 |
|
Cost of rental revenue |
|
|
3,175 |
|
|
|
2,612 |
|
|
|
5,911 |
|
|
|
4,648 |
|
Total cost of revenue |
|
|
20,040 |
|
|
|
16,422 |
|
|
|
37,418 |
|
|
|
30,538 |
|
Gross
profit |
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit - sales revenue |
|
|
42,937 |
|
|
|
37,455 |
|
|
|
81,086 |
|
|
|
66,545 |
|
Gross profit - rental revenue |
|
|
5,362 |
|
|
|
5,768 |
|
|
|
8,681 |
|
|
|
10,540 |
|
Gross profit |
|
|
48,299 |
|
|
|
43,223 |
|
|
|
89,767 |
|
|
|
77,085 |
|
Operating
expenses |
|
|
|
|
|
|
|
|
|
|
|
|
Sales and marketing |
|
|
28,206 |
|
|
|
28,822 |
|
|
|
54,508 |
|
|
|
52,752 |
|
Research and development |
|
|
1,833 |
|
|
|
1,849 |
|
|
|
4,066 |
|
|
|
3,369 |
|
Reimbursement, general and administrative |
|
|
14,991 |
|
|
|
14,894 |
|
|
|
30,425 |
|
|
|
31,111 |
|
Intangible asset amortization and earn-out |
|
|
1,211 |
|
|
|
1,745 |
|
|
|
2,516 |
|
|
|
8,841 |
|
Total operating expenses |
|
|
46,241 |
|
|
|
47,310 |
|
|
|
91,515 |
|
|
|
96,073 |
|
Income (loss) from
operations |
|
|
2,058 |
|
|
|
(4,087 |
) |
|
|
(1,748 |
) |
|
|
(18,988 |
) |
Other expense |
|
|
(838 |
) |
|
|
(573 |
) |
|
|
(1,831 |
) |
|
|
(1,029 |
) |
Income (loss) before
income taxes |
|
|
1,220 |
|
|
|
(4,660 |
) |
|
|
(3,579 |
) |
|
|
(20,017 |
) |
Income tax expense
(benefit) |
|
|
1,320 |
|
|
|
(20 |
) |
|
|
(1,593 |
) |
|
|
191 |
|
Net loss |
|
$ |
(100 |
) |
|
$ |
(4,640 |
) |
|
$ |
(1,986 |
) |
|
$ |
(20,208 |
) |
Net loss per common share |
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
0.00 |
|
|
$ |
(0.23 |
) |
|
$ |
(0.09 |
) |
|
$ |
(1.01 |
) |
Diluted |
|
$ |
0.00 |
|
|
$ |
(0.23 |
) |
|
$ |
(0.09 |
) |
|
$ |
(1.01 |
) |
Weighted-average common shares
used to compute net loss per common share |
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
23,352,530 |
|
|
|
20,024,798 |
|
|
|
22,323,856 |
|
|
|
19,961,999 |
|
Diluted |
|
|
23,352,530 |
|
|
|
20,024,798 |
|
|
|
22,323,856 |
|
|
|
19,961,999 |
|
Tactile Systems Technology, Inc. |
Condensed Consolidated Statements of Cash
Flows |
(Unaudited) |
|
|
|
|
|
Six Months Ended June 30, |
(In thousands) |
|
|
2023 |
|
|
|
2022 |
|
Cash flows from
operating activities |
|
|
|
|
|
|
Net loss |
|
$ |
(1,986 |
) |
|
$ |
(20,208 |
) |
Adjustments to reconcile net loss to net cash provided by (used in)
operating activities: |
|
|
|
|
|
|
Depreciation and amortization |
|
|
3,269 |
|
|
|
3,015 |
|
Deferred income taxes |
|
|
— |
|
|
|
94 |
|
Stock-based compensation expense |
|
|
3,831 |
|
|
|
5,121 |
|
Loss on disposal of property and equipment and intangibles |
|
|
3 |
|
|
|
— |
|
Change in fair value of earn-out liability |
|
|
1,230 |
|
|
|
7,550 |
|
Changes in assets and liabilities, net of acquisition: |
|
|
|
|
|
|
Accounts receivable |
|
|
8,273 |
|
|
|
321 |
|
Net investment in leases |
|
|
2,911 |
|
|
|
(864 |
) |
Inventories |
|
|
2,809 |
|
|
|
(753 |
) |
Income taxes |
|
|
(3,967 |
) |
|
|
(55 |
) |
Prepaid expenses and other assets |
|
|
(697 |
) |
|
|
1,925 |
|
Right of use operating lease assets |
|
|
50 |
|
|
|
106 |
|
Accounts receivable, non-current |
|
|
7,631 |
|
|
|
(2,496 |
) |
Accounts payable |
|
|
(696 |
) |
|
|
4,087 |
|
Accrued payroll and related taxes |
|
|
(3,300 |
) |
|
|
5 |
|
Accrued expenses and other liabilities |
|
|
(5,954 |
) |
|
|
1,252 |
|
Net cash provided by (used in) operating activities |
|
|
13,407 |
|
|
|
(900 |
) |
Cash flows from
investing activities |
|
|
|
|
|
|
Purchases of property and equipment |
|
|
(1,043 |
) |
|
|
(331 |
) |
Intangible assets expenditures |
|
|
(99 |
) |
|
|
(85 |
) |
Net cash used in investing activities |
|
|
(1,142 |
) |
|
|
(416 |
) |
Cash flows from
financing activities |
|
|
|
|
|
|
Payment on earn-out |
|
|
(5,000 |
) |
|
|
— |
|
Payments on note payable |
|
|
(1,500 |
) |
|
|
(4,500 |
) |
Payments of deferred debt issuance costs |
|
|
— |
|
|
|
(39 |
) |
Proceeds from exercise of common stock options |
|
|
11 |
|
|
|
152 |
|
Proceeds from the issuance of common stock from the employee stock
purchase plan |
|
|
882 |
|
|
|
824 |
|
Proceeds from issuance of common stock at market |
|
|
34,625 |
|
|
|
— |
|
Net cash provided by (used in) financing activities |
|
|
29,018 |
|
|
|
(3,563 |
) |
Net increase
(decrease) in cash and cash equivalents |
|
|
41,283 |
|
|
|
(4,879 |
) |
Cash and cash equivalents –
beginning of period |
|
|
21,929 |
|
|
|
28,229 |
|
Cash and cash equivalents –
end of period |
|
$ |
63,212 |
|
|
$ |
23,350 |
|
|
|
|
|
|
|
|
Supplemental cash flow
disclosure |
|
|
|
|
|
|
Cash paid for interest |
|
$ |
1,925 |
|
|
$ |
448 |
|
Cash paid for taxes |
|
$ |
2,415 |
|
|
$ |
28 |
|
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, 2023 and
2022:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Six Months Ended |
|
|
June 30, |
|
June 30, |
(In thousands) |
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
Revenue |
|
|
|
|
|
|
|
|
|
|
|
|
Lymphedema products |
|
$ |
59,999 |
|
|
$ |
51,634 |
|
|
$ |
109,751 |
|
|
$ |
92,288 |
|
Airway clearance products |
|
|
8,340 |
|
|
|
8,011 |
|
|
|
17,434 |
|
|
|
15,335 |
|
Total |
|
$ |
68,339 |
|
|
$ |
59,645 |
|
|
$ |
127,185 |
|
|
$ |
107,623 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Percentage of total
revenue |
|
|
|
|
|
|
|
|
|
|
|
|
Lymphedema products |
|
|
88 |
% |
|
|
87 |
% |
|
|
86 |
% |
|
|
86 |
% |
Airway clearance products |
|
|
12 |
% |
|
|
13 |
% |
|
|
14 |
% |
|
|
14 |
% |
Total |
|
|
100 |
% |
|
|
100 |
% |
|
|
100 |
% |
|
|
100 |
% |
The following table contains a reconciliation of
GAAP gross profit and margin to non-GAAP gross profit and
margin:
Tactile Systems Technology, Inc. |
Reconciliation of Gross Profit and Margin to Non-GAAP Gross
Profit and Margin |
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Six Months Ended |
|
|
June 30, |
June 30, |
(Dollars in thousands) |
|
2023 |
|
2022 |
|
2023 |
|
2022 |
Gross profit, as reported |
|
$ |
48,299 |
|
|
$ |
43,223 |
|
|
$ |
89,767 |
|
|
$ |
77,085 |
|
Gross margin, as reported |
|
|
70.7 |
% |
|
|
72.5 |
% |
|
|
70.6 |
% |
|
|
71.6 |
% |
Reconciling items: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-cash intangible amortization expense |
|
$ |
315 |
|
|
$ |
311 |
|
|
$ |
629 |
|
|
$ |
621 |
|
Non-GAAP gross profit |
|
$ |
48,614 |
|
|
$ |
43,534 |
|
|
$ |
90,396 |
|
|
$ |
77,706 |
|
Non-GAAP gross margin |
|
|
71.1 |
% |
|
|
73.0 |
% |
|
|
71.1 |
% |
|
|
72.2 |
% |
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) |
|
2023 |
|
2022 |
|
2023 |
|
2022 |
GAAP operating income (loss) |
|
$ |
2,058 |
|
|
$ |
(4,087 |
) |
|
$ |
(1,748 |
) |
|
$ |
(18,988 |
) |
Reconciling
items: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-cash intangible amortization expense impacting gross
profit |
|
$ |
315 |
|
|
$ |
311 |
|
|
$ |
629 |
|
|
$ |
621 |
|
Non-cash intangible amortization expense impacting operating
expenses |
|
|
641 |
|
|
|
645 |
|
|
|
1,286 |
|
|
|
1,291 |
|
Change in fair value of earn-out |
|
|
570 |
|
|
|
1,100 |
|
|
|
1,230 |
|
|
|
7,550 |
|
Litigation defense costs |
|
|
— |
|
|
|
245 |
|
|
|
— |
|
|
|
2,349 |
|
Non-GAAP operating income
(loss): |
|
$ |
3,584 |
|
|
$ |
(1,786 |
) |
|
$ |
1,397 |
|
|
$ |
(7,177 |
) |
Non-GAAP operating margin |
|
|
5.2 |
% |
|
|
(3.0 |
)% |
|
|
1.1 |
% |
|
|
(6.7 |
)% |
The following table contains a reconciliation of
GAAP net loss to non-GAAP net income (loss):
Tactile Systems Technology, Inc. |
Reconciliation of GAAP Net Loss to Non-GAAP Net Income
(Loss) |
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Six Months Ended |
|
|
June 30, |
June 30, |
(Dollars in thousands) |
|
2023 |
|
2022 |
|
2023 |
|
2022 |
GAAP net loss |
|
$ |
(100 |
) |
|
$ |
(4,640 |
) |
|
$ |
(1,986 |
) |
|
$ |
(20,208 |
) |
Reconciling
items: |
|
|
|
|
|
|
|
|
|
|
|
|
Non-cash intangible amortization expense impacting gross
profit |
|
$ |
315 |
|
|
$ |
311 |
|
|
$ |
629 |
|
|
$ |
621 |
|
Non-cash intangible amortization expense impacting operating
expenses |
|
|
641 |
|
|
|
645 |
|
|
|
1,286 |
|
|
|
1,291 |
|
Change in fair value of earn-out |
|
|
570 |
|
|
|
1,100 |
|
|
|
1,230 |
|
|
|
7,550 |
|
Litigation defense costs |
|
|
— |
|
|
|
245 |
|
|
|
— |
|
|
|
2,349 |
|
Income tax expense on reconciling items* |
|
|
(382 |
) |
|
|
(575 |
) |
|
|
(786 |
) |
|
|
(2,953 |
) |
Non-GAAP net income
(loss) |
|
$ |
1,044 |
|
|
$ |
(2,914 |
) |
|
$ |
373 |
|
|
$ |
(11,350 |
) |
* 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 to Adjusted EBITDA for the three and six months ended June
30, 2023 and 2022, 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 |
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Increase |
|
Six Months Ended |
|
Increase |
|
|
June 30, |
|
(Decrease) |
|
June 30, |
|
(Decrease) |
(Dollars in thousands) |
|
|
2023 |
|
|
|
2022 |
|
|
$ |
|
% |
|
|
2023 |
|
|
|
2022 |
|
|
$ |
|
% |
Net loss |
|
$ |
(100 |
) |
|
$ |
(4,640 |
) |
|
$ |
4,540 |
|
|
(98 |
)% |
|
$ |
(1,986 |
) |
|
$ |
(20,208 |
) |
|
$ |
18,222 |
|
|
(90 |
)% |
Interest expense, net |
|
|
838 |
|
|
|
584 |
|
|
|
254 |
|
|
43 |
% |
|
|
1,831 |
|
|
|
1,040 |
|
|
|
791 |
|
|
76 |
|
Income tax (benefit) expense |
|
|
1,320 |
|
|
|
(20 |
) |
|
|
1,340 |
|
|
N.M. |
% |
|
|
(1,593 |
) |
|
|
191 |
|
|
|
(1,784 |
) |
|
N.M. |
% |
Depreciation and amortization |
|
|
1,640 |
|
|
|
1,508 |
|
|
|
132 |
|
|
9 |
% |
|
|
3,269 |
|
|
|
3,015 |
|
|
|
254 |
|
|
8 |
% |
Stock-based compensation |
|
|
1,808 |
|
|
|
2,892 |
|
|
|
(1,084 |
) |
|
(37 |
)% |
|
|
3,831 |
|
|
|
5,121 |
|
|
|
(1,290 |
) |
|
(25 |
)% |
Change in fair value of earn-out |
|
|
570 |
|
|
|
1,100 |
|
|
|
(530 |
) |
|
(48 |
) |
|
|
1,230 |
|
|
|
7,550 |
|
|
|
(6,320 |
) |
|
(84 |
) |
Litigation defense costs |
|
|
— |
|
|
|
245 |
|
|
|
(245 |
) |
|
(100 |
)% |
|
|
— |
|
|
|
2,349 |
|
|
|
(2,349 |
) |
|
(100 |
)% |
Adjusted
EBITDA |
|
$ |
6,076 |
|
|
$ |
1,669 |
|
|
$ |
4,407 |
|
|
N.M. |
% |
|
$ |
6,582 |
|
|
$ |
(942 |
) |
|
$ |
7,524 |
|
|
N.M. |
% |
Investor Inquiries:
Mike Piccinino, CFA
ICR Westwicke
443-213-0500
investorrelations@tactilemedical.com
Tactile Systems Technology (NASDAQ:TCMD)
Graphique Historique de l'Action
De Mai 2024 à Juin 2024
Tactile Systems Technology (NASDAQ:TCMD)
Graphique Historique de l'Action
De Juin 2023 à Juin 2024