Tactile Systems Technology, Inc. Reports Third Quarter 2024 Financial Results
Tactile Medical (TCMD) reported Q3 2024 financial results with total revenue increasing 5% year-over-year to $73.1 million. Lymphedema product revenue grew 4% and airway clearance product revenue rose 10%. The company reported net income of $5.2 million, down from $22.3 million in Q3 2023, while Adjusted EBITDA improved to $10.7 million from $7.7 million. The company ended Q3 with $82.1 million in cash and announced a $30 million share repurchase program. The company updated its 2024 revenue guidance to $292-295 million, representing 6-8% growth.
Tactile Medical (TCMD) ha riportato i risultati finanziari del terzo trimestre del 2024 con un aumento del fatturato totale del 5% su base annua, pari a 73,1 milioni di dollari. I ricavi dei prodotti per il linfedema sono aumentati del 4% e i ricavi dei prodotti per la pulizia delle vie respiratorie sono cresciuti del 10%. L'azienda ha riportato un utile netto di 5,2 milioni di dollari, in calo rispetto ai 22,3 milioni di dollari del terzo trimestre del 2023, mentre l'EBITDA rettificato è migliorato a 10,7 milioni di dollari, rispetto ai 7,7 milioni di dollari precedenti. L'azienda ha chiuso il terzo trimestre con 82,1 milioni di dollari in cassa e ha annunciato un programma di riacquisto di azioni da 30 milioni di dollari. L'azienda ha aggiornato le previsioni di fatturato per il 2024 a 292-295 milioni di dollari, che rappresenta una crescita del 6-8%.
Tactile Medical (TCMD) reportó los resultados financieros del tercer trimestre de 2024 con un aumento del 5% en los ingresos totales en comparación con el año anterior, alcanzando los 73,1 millones de dólares. Los ingresos por productos para el linfedema crecieron un 4% y los ingresos por productos de limpieza de vías respiratorias aumentaron un 10%. La compañía reportó un ingreso neto de 5,2 millones de dólares, una disminución respecto a los 22,3 millones de dólares en el tercer trimestre de 2023, mientras que el EBITDA ajustado mejoró a 10,7 millones de dólares desde los 7,7 millones de dólares. La compañía finalizó el tercer trimestre con 82,1 millones de dólares en efectivo y anunció un programa de recompra de acciones de 30 millones de dólares. La compañía actualizó su guía de ingresos para 2024 a entre 292 y 295 millones de dólares, lo que representa un crecimiento del 6-8%.
택타일 메디컬 (TCMD)는 2024년 3분기 재무 결과를 보고하며 총 매출이 전년 대비 5% 증가한 7310만 달러에 도달했다고 발표했습니다. 림프부종 제품 매출은 4% 증가했으며 기도 청소 제품 매출은 10% 상승했습니다. 회사는 520만 달러의 순이익을 발표했으며, 이는 2023년 3분기의 2230만 달러에서 감소한 수치입니다. 조정된 EBITDA는 770만 달러에서 1070만 달러로 개선되었습니다. 회사는 3분기를 8210만 달러의 현금으로 마감했으며 3000만 달러 규모의 자사주 매입 프로그램을 발표했습니다. 2024년 수익 가이던스는 2억 9200만에서 2억 9500만 달러로 업데이트되어 6-8%의 성장을 나타냅니다.
Tactile Medical (TCMD) a annoncé les résultats financiers du troisième trimestre 2024 avec une augmentation de 5% des revenus totaux par rapport à l'année précédente, atteignant 73,1 millions de dollars. Les revenus des produits pour le lymphœdème ont augmenté de 4% et ceux des produits de désencombrement des voies respiratoires de 10%. L'entreprise a rapporté un bénéfice net de 5,2 millions de dollars, en baisse par rapport à 22,3 millions de dollars au troisième trimestre 2023, tandis que l'EBITDA ajusté s'est amélioré à 10,7 millions de dollars contre 7,7 millions de dollars. L’entreprise a terminé le troisième trimestre avec 82,1 millions de dollars en liquidités et a annoncé un programme de rachat d'actions de 30 millions de dollars. La société a mis à jour ses prévisions de revenus pour 2024 à 292-295 millions de dollars, représentant une croissance de 6-8%.
Tactile Medical (TCMD) berichtete über die finanziellen Ergebnisse des dritten Quartals 2024 mit einem Anstieg des Gesamtumsatzes um 5% im Vergleich zum Vorjahr auf 73,1 Millionen Dollar. Der Umsatz mit Lymphödempflegeprodukten stieg um 4% und der Umsatz mit Atemwegshygieneprodukten um 10%. Das Unternehmen meldete einen Nettogewinn von 5,2 Millionen Dollar, ein Rückgang von 22,3 Millionen Dollar im dritten Quartal 2023, während das bereinigte EBITDA sich von 7,7 Millionen Dollar auf 10,7 Millionen Dollar verbesserte. Das Unternehmen schloss das dritte Quartal mit 82,1 Millionen Dollar Bargeld ab und kündigte ein Aktienrückkaufprogramm in Höhe von 30 Millionen Dollar an. Das Unternehmen hat seine Umsatzprognose für 2024 auf 292-295 Millionen Dollar aktualisiert, was ein Wachstum von 6-8% darstellt.
- Revenue increased 5% YoY to $73.1 million
- Adjusted EBITDA improved to $10.7 million from $7.7 million
- Operating cash flow increased to $24.3 million from $17.5 million
- Gross margin improved to 75.0% from 70.9%
- Strong cash position of $82.1 million
- Net income decreased to $5.2 million from $22.3 million YoY
- Operating income declined to $6.8 million from $8.0 million
- Operating expenses increased 16% to $48.0 million
- Lowered full-year revenue guidance
Insights
The Q3 2024 results present a mixed financial picture. Revenue growth of
The revised guidance reduction, though modest, indicates some near-term headwinds from Medicare policy changes. However, improved operating cash flow of
The launch of Nimbl, their next-generation lymphedema therapy platform, represents a strategic expansion in the upper extremity treatment market. The positive clinical trial results from VA patients using Flexitouch therapy strengthen their market position and could support broader adoption. The company's dual growth in both lymphedema (
Authorizes Share Repurchase Program
MINNEAPOLIS, Nov. 04, 2024 (GLOBE NEWSWIRE) -- 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 third quarter ended September 30, 2024 and announced the adoption of a share repurchase program.
Third Quarter 2024 Summary & Recent Business Highlights:
- Total revenue increased
5% year-over-year to$73.1 million - Lymphedema product revenue increased
4% over Q3 2023 - Airway clearance product revenue increased
10% over Q3 2023
- Lymphedema product revenue increased
- Net income of
$5.2 million versus$22.3 million in Q3 2023 - Adjusted EBITDA of
$10.7 million versus$7.7 million in Q3 2023 - Operating cashflow of
$24.3 million year-to-date, compared to$17.5 million in the prior year period - Ended Q3 2024 with
$82.1 million in cash and cash equivalents - Launched Nimbl, our next-generation lymphedema therapy platform for upper extremity conditions
- Announced publication of positive clinical trial results in VA lymphedema patients using Flexitouch therapy
- Authorized a program to repurchase up to
$30.0 million of the Company’s common stock
“In the third quarter, we delivered solid gross margin expansion, drove continued improvements in profitability, and achieved double-digit growth in both our commercial and VA lymphedema channels,” said Sheri Dodd, President and Chief Executive Officer of Tactile Medical. “Operationally, we advanced key pillars of our commercial strategy, including launching our next-generation lymphedema therapy platform and announcing the publication of a positive new data set among Veterans.”
Ms. Dodd continued, “While pleased with this performance, our revenue was impacted by changes in policy interpretation from Medicare administrators and DME buying patterns within our airway clearance business. However, we continue to see strong patient and clinician demand for our products, aided by improving CMS coverage conditions on the near horizon. We are taking a concerted approach to fortify our sales channels, simplify our front and back-office work through technology modernization, and amplify the voice of our patients and providers through product and service innovation.”
Ms. Dodd concluded, “Finally, we are increasingly benefiting from generating free cash flow, a trend we expect to continue. This provides us the luxury of continuing to evaluate various investment opportunities to drive growth and increase shareholder value, while also initiating a share repurchase program. We believe this strategic near-term use of cash aligns with our conviction in the trajectory of our business and our ability to execute our financial and operational initiatives.”
Share Repurchase Program
The Company also announced today that the Board of Directors of the Company authorized a program to repurchase up to
Third Quarter 2024 Financial Results
Total revenue in the third quarter of 2024 increased
Gross profit in the third quarter of 2024 increased
Operating expenses in the third quarter of 2024 increased
Operating income was
Other income was
Income tax expense was
Net income in the third quarter of 2024 was
Weighted average shares used to compute diluted net income per share were 24.3 million and 23.8 million for the third quarters of 2024 and 2023, respectively.
Adjusted EBITDA was
First Nine Months 2024 Financial Results
Total revenue for the nine months ended September 30, 2024, increased
Net income for the nine months ended September 30, 2024, was
Weighted average shares used to compute diluted net income per share were 24.1 million and 23.0 million for the nine months ended September 30, 2024 and 2023, respectively.
Adjusted EBITDA was
Balance Sheet Summary
As of September 30, 2024, the Company had
2024 Financial Outlook
The Company is updating its 2024 financial outlook and now expects full year 2024 total revenue in the range of
Conference Call
Management will host a conference call with a question-and-answer session at 5:00 p.m. Eastern Time on November 4, 2024, to discuss the results of the quarter. Those who would like to participate may dial 877-407-3088 (201-389-0927 for international callers) and provide access code 13748661. 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 13748661. 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 Company’s ability to obtain reimbursement from third-party payers for its products; the impacts of inflation, rising interest rates or a recession; the adequacy of the Company’s liquidity to pursue its business objectives; 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 transition matters related to the Company’s recent Chief Executive Officer change; 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 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, and non-GAAP net income, 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 executive transition costs. Non-GAAP gross profit in this release represents gross profit plus non-cash intangible asset amortization expense. Non-GAAP gross margin in this release represents non-GAAP gross profit divided by revenue. Non-GAAP operating income in this release represents operating income adjusted for non-cash intangible asset amortization expense, change in fair value of earn-out and executive transition expenses. Non-GAAP net income represents net income adjusted for non-cash intangible asset amortization expense, change in fair value of earn-out 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) | ||||||||
| September 30, | December 31, | |||||||
| (In thousands, except share and per share data) | 2024 | 2023 | ||||||
| Assets | ||||||||
| Current assets | ||||||||
| Cash and cash equivalents | $ | 82,146 | $ | 61,033 | ||||
| Accounts receivable | 39,970 | 43,173 | ||||||
| Net investment in leases | 13,953 | 14,195 | ||||||
| Inventories | 21,176 | 22,527 | ||||||
| Prepaid expenses and other current assets | 5,127 | 4,366 | ||||||
| Total current assets | 162,372 | 145,294 | ||||||
| Non-current assets | ||||||||
| Property and equipment, net | 5,878 | 6,195 | ||||||
| Right of use operating lease assets | 17,553 | 19,128 | ||||||
| Intangible assets, net | 43,708 | 46,724 | ||||||
| Goodwill | 31,063 | 31,063 | ||||||
| Accounts receivable, non-current | 3,628 | 10,936 | ||||||
| Deferred income taxes | 19,719 | 19,378 | ||||||
| Other non-current assets | 3,803 | 2,720 | ||||||
| Total non-current assets | 125,352 | 136,144 | ||||||
| Total assets | $ | 287,724 | $ | 281,438 | ||||
| Liabilities and Stockholders' Equity | ||||||||
| Current liabilities | ||||||||
| Accounts payable | $ | 7,290 | $ | 6,659 | ||||
| Note payable | 2,956 | 2,956 | ||||||
| Accrued payroll and related taxes | 13,086 | 16,789 | ||||||
| Accrued expenses | 7,088 | 5,904 | ||||||
| Income taxes payable | 611 | 1,467 | ||||||
| Operating lease liabilities | 2,883 | 2,807 | ||||||
| Other current liabilities | 3,240 | 4,475 | ||||||
| Total current liabilities | 37,154 | 41,057 | ||||||
| Non-current liabilities | ||||||||
| Note payable, non-current | 23,959 | 26,176 | ||||||
| Accrued warranty reserve, non-current | 1,448 | 1,681 | ||||||
| Income taxes payable, non-current | 495 | 446 | ||||||
| Operating lease liabilities, non-current | 16,767 | 18,436 | ||||||
| Total non-current liabilities | 42,669 | 46,739 | ||||||
| Total liabilities | 79,823 | 87,796 | ||||||
| Stockholders’ equity: | ||||||||
| Preferred stock, | — | — | ||||||
| Common stock, | 24 | 24 | ||||||
| Additional paid-in capital | 181,739 | 174,724 | ||||||
| Retained earnings | 26,138 | 18,894 | ||||||
| Total stockholders’ equity | 207,901 | 193,642 | ||||||
| Total liabilities and stockholders’ equity | $ | 287,724 | $ | 281,438 | ||||
| Tactile Systems Technology, Inc. | ||||||||||||||||
| Condensed Consolidated Statements of Operations | ||||||||||||||||
| (Unaudited) | ||||||||||||||||
| Three Months Ended | Nine Months Ended | |||||||||||||||
| September 30, | September 30, | |||||||||||||||
| (In thousands, except share and per share data) | 2024 | 2023 | 2024 | 2023 | ||||||||||||
| Revenue | ||||||||||||||||
| Sales revenue | $ | 63,168 | $ | 58,866 | $ | 180,742 | $ | 171,459 | ||||||||
| Rental revenue | 9,925 | 10,720 | 26,657 | 25,312 | ||||||||||||
| Total revenue | 73,093 | 69,586 | 207,399 | 196,771 | ||||||||||||
| Cost of revenue | ||||||||||||||||
| Cost of sales revenue | 15,603 | 17,016 | 46,810 | 48,523 | ||||||||||||
| Cost of rental revenue | 2,703 | 3,211 | 8,270 | 9,122 | ||||||||||||
| Total cost of revenue | 18,306 | 20,227 | 55,080 | 57,645 | ||||||||||||
| Gross profit | ||||||||||||||||
| Gross profit - sales revenue | 47,565 | 41,850 | 133,932 | 122,936 | ||||||||||||
| Gross profit - rental revenue | 7,222 | 7,509 | 18,387 | 16,190 | ||||||||||||
| Gross profit | 54,787 | 49,359 | 152,319 | 139,126 | ||||||||||||
| Operating expenses | ||||||||||||||||
| Sales and marketing | 26,838 | 26,030 | 82,803 | 80,538 | ||||||||||||
| Research and development | 2,417 | 1,964 | 6,794 | 6,030 | ||||||||||||
| Reimbursement, general and administrative | 18,118 | 16,449 | 51,158 | 46,874 | ||||||||||||
| Intangible asset amortization and earn-out | 633 | (3,073 | ) | 1,898 | (557 | ) | ||||||||||
| Total operating expenses | 48,006 | 41,370 | 142,653 | 132,885 | ||||||||||||
| Income from operations | 6,781 | 7,989 | 9,666 | 6,241 | ||||||||||||
| Other income (expense) | 452 | (404 | ) | 832 | (2,235 | ) | ||||||||||
| Income before income taxes | 7,233 | 7,585 | 10,498 | 4,006 | ||||||||||||
| Income tax expense (benefit) | 2,078 | (14,714 | ) | 3,254 | (16,307 | ) | ||||||||||
| Net income | $ | 5,155 | $ | 22,299 | $ | 7,244 | $ | 20,313 | ||||||||
| Net income per common share | ||||||||||||||||
| Basic | $ | 0.21 | $ | 0.95 | $ | 0.30 | $ | 0.89 | ||||||||
| Diluted | $ | 0.21 | $ | 0.94 | $ | 0.30 | $ | 0.88 | ||||||||
| Weighted-average common shares used to compute net income per common share | ||||||||||||||||
| Basic | 23,985,364 | 23,483,269 | 23,842,049 | 22,714,574 | ||||||||||||
| Diluted | 24,254,176 | 23,848,729 | 24,070,084 | 22,987,667 | ||||||||||||
| Tactile Systems Technology, Inc. | ||||||||
| Condensed Consolidated Statements of Cash Flows | ||||||||
| (Unaudited) | ||||||||
| Nine Months Ended September 30, | ||||||||
| (In thousands) | 2024 | 2023 | ||||||
| Cash flows from operating activities | ||||||||
| Net income | $ | 7,244 | $ | 20,313 | ||||
| Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
| Depreciation and amortization | 5,079 | 4,916 | ||||||
| Deferred income taxes | (341 | ) | (20,717 | ) | ||||
| Stock-based compensation expense | 5,969 | 5,597 | ||||||
| Loss on disposal of property and equipment and intangibles | 308 | 3 | ||||||
| Change in fair value of earn-out liability | — | (2,475 | ) | |||||
| Changes in assets and liabilities, net of acquisition: | ||||||||
| Accounts receivable | 3,203 | 10,947 | ||||||
| Net investment in leases | 242 | 2,527 | ||||||
| Inventories | 1,351 | (374 | ) | |||||
| Income taxes | (807 | ) | (99 | ) | ||||
| Prepaid expenses and other assets | (1,844 | ) | (369 | ) | ||||
| Right of use operating lease assets | (18 | ) | 292 | |||||
| Accounts receivable, non-current | 7,308 | 8,425 | ||||||
| Accounts payable | 582 | (3,622 | ) | |||||
| Accrued payroll and related taxes | (3,703 | ) | (2,316 | ) | ||||
| Accrued expenses and other liabilities | (251 | ) | (5,545 | ) | ||||
| Net cash provided by operating activities | 24,322 | 17,503 | ||||||
| Cash flows from investing activities | ||||||||
| Purchases of property and equipment | (1,932 | ) | (1,424 | ) | ||||
| Proceeds from sale of property and equipment | 12 | — | ||||||
| Intangible assets expenditures | (85 | ) | (117 | ) | ||||
| Net cash used in investing activities | (2,005 | ) | (1,541 | ) | ||||
| Cash flows from financing activities | ||||||||
| Proceeds from issuance of note payable | — | 8,250 | ||||||
| Payments on earn-out | — | (5,000 | ) | |||||
| Payments on note payable | (2,250 | ) | (2,250 | ) | ||||
| Payments on revolving line of credit | — | (8,250 | ) | |||||
| Payments of deferred debt issuance costs | — | (125 | ) | |||||
| Proceeds from exercise of common stock options | 2 | 13 | ||||||
| Proceeds from the issuance of common stock from the employee stock purchase plan | 1,044 | 882 | ||||||
| Proceeds from issuance of common stock at market | — | 34,625 | ||||||
| Net cash (used in) provided by financing activities | (1,204 | ) | 28,145 | |||||
| Net increase in cash and cash equivalents | 21,113 | 44,107 | ||||||
| Cash and cash equivalents – beginning of period | 61,033 | 21,929 | ||||||
| Cash and cash equivalents – end of period | $ | 82,146 | $ | 66,036 | ||||
| Supplemental cash flow disclosure | ||||||||
| Cash paid for interest | $ | 1,612 | $ | 2,810 | ||||
| Cash paid for taxes | $ | 4,428 | $ | 3,006 | ||||
| Capital expenditures incurred but not yet paid | $ | 49 | $ | 40 | ||||
The following table summarizes revenue by product line for the three and nine months ended September 30, 2024 and 2023:
| Three Months Ended | Nine Months Ended | |||||||||||||||
| September 30, | September 30, | |||||||||||||||
| (In thousands) | 2024 | 2023 | 2024 | 2023 | ||||||||||||
| Revenue | ||||||||||||||||
| Lymphedema products | $ | 65,282 | $ | 62,506 | $ | 182,278 | $ | 172,257 | ||||||||
| Airway clearance products | 7,811 | 7,080 | 25,121 | 24,514 | ||||||||||||
| Total | $ | 73,093 | $ | 69,586 | $ | 207,399 | $ | 196,771 | ||||||||
| Percentage of total revenue | ||||||||||||||||
| Lymphedema products | 89 | % | 90 | % | 88 | % | 88 | % | ||||||||
| Airway clearance products | 11 | % | 10 | % | 12 | % | 12 | % | ||||||||
| 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 | Nine Months Ended | |||||||||||||||
| September 30, | September 30, | |||||||||||||||
| (Dollars in thousands) | 2024 | 2023 | 2024 | 2023 | ||||||||||||
| Gross profit, as reported | $ | 54,787 | $ | 49,359 | $ | 152,319 | $ | 139,126 | ||||||||
| Gross margin, as reported | 75.0 | % | 70.9 | % | 73.4 | % | 70.7 | % | ||||||||
| Reconciling items: | ||||||||||||||||
| Non-cash intangible asset amortization expense | $ | 317 | $ | 316 | $ | 950 | $ | 945 | ||||||||
| Non-GAAP gross profit | $ | 55,104 | $ | 49,675 | $ | 153,269 | $ | 140,071 | ||||||||
| Non-GAAP gross margin | 75.4 | % | 71.4 | % | 73.9 | % | 71.2 | % | ||||||||
The following table contains a reconciliation of GAAP operating income to non-GAAP operating income:
| Tactile Systems Technology, Inc. | ||||||||||||||||
| Reconciliation of GAAP Operating Income to Non-GAAP Operating Income | ||||||||||||||||
| (Unaudited) | ||||||||||||||||
| Three Months Ended | Nine Months Ended | |||||||||||||||
| September 30, | September 30, | |||||||||||||||
| (Dollars in thousands) | 2024 | 2023 | 2024 | 2023 | ||||||||||||
| GAAP operating income | $ | 6,781 | $ | 7,989 | $ | 9,666 | $ | 6,241 | ||||||||
| Reconciling items: | ||||||||||||||||
| Non-cash intangible asset amortization expense impacting gross profit | $ | 317 | $ | 316 | $ | 950 | $ | 945 | ||||||||
| Non-cash intangible asset amortization expense impacting operating expenses | 633 | 633 | 1,898 | 1,919 | ||||||||||||
| Change in fair value of earn-out | — | (3,705 | ) | — | (2,475 | ) | ||||||||||
| Executive transition expenses | 136 | — | 111 | — | ||||||||||||
| Non-GAAP operating income: | $ | 7,867 | $ | 5,233 | $ | 12,625 | $ | 6,630 | ||||||||
The following table contains a reconciliation of GAAP net income to non-GAAP net income:
| Tactile Systems Technology, Inc. | ||||||||||||||||
| Reconciliation of GAAP Net Income to Non-GAAP Net Income | ||||||||||||||||
| (Unaudited) | ||||||||||||||||
| Three Months Ended | Nine Months Ended | |||||||||||||||
| September 30, | September 30, | |||||||||||||||
| (Dollars in thousands) | 2024 | 2023 | 2024 | 2023 | ||||||||||||
| GAAP net income | $ | 5,155 | $ | 22,299 | $ | 7,244 | $ | 20,313 | ||||||||
| Reconciling items: | ||||||||||||||||
| Non-cash intangible asset amortization expense impacting gross profit | $ | 317 | $ | 316 | $ | 950 | $ | 945 | ||||||||
| Non-cash intangible asset amortization expense impacting operating expenses | 633 | 633 | 1,898 | 1,919 | ||||||||||||
| Change in fair value of earn-out | — | (3,705 | ) | — | (2,475 | ) | ||||||||||
| Executive transition expenses | 136 | — | 111 | — | ||||||||||||
| Income tax expense on reconciling items* | (272 | ) | 689 | (740 | ) | (97 | ) | |||||||||
| Non-GAAP net income | $ | 5,969 | $ | 20,232 | $ | 9,463 | $ | 20,605 | ||||||||
| * 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 income to Adjusted EBITDA for the three and nine months ended September 30, 2024 and 2023, as well as the dollar and percentage change between the comparable periods:
| Tactile Systems Technology, Inc. | ||||||||||||||||||||||||||||||||
| Reconciliation of Net Income to Non-GAAP Adjusted EBITDA | ||||||||||||||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||||||||||||||
| Three Months Ended | Increase | Nine Months Ended | Increase | |||||||||||||||||||||||||||||
| September 30, | (Decrease) | September 30, | (Decrease) | |||||||||||||||||||||||||||||
| (Dollars in thousands) | 2024 | 2023 | $ | % | 2024 | 2023 | $ | % | ||||||||||||||||||||||||
| Net income | $ | 5,155 | $ | 22,299 | $ | (17,144 | ) | (77 | ) | % | $ | 7,244 | $ | 20,313 | $ | (13,069 | ) | 64 | % | |||||||||||||
| Interest (income) expense, net | (452 | ) | 404 | (856 | ) | N.M. | % | (823 | ) | 2,235 | (3,058 | ) | (137 | ) | % | |||||||||||||||||
| Income tax expense (benefit) | 2,078 | (14,714 | ) | 16,792 | (114 | ) | % | 3,254 | (16,307 | ) | 19,561 | (120 | ) | |||||||||||||||||||
| Depreciation and amortization | 1,734 | 1,646 | 88 | 5 | % | 5,079 | 4,915 | 164 | 3 | % | ||||||||||||||||||||||
| Stock-based compensation | 2,070 | 1,766 | 304 | 17 | % | 5,969 | 5,597 | 372 | 7 | % | ||||||||||||||||||||||
| Change in fair value of earn-out | — | (3,705 | ) | 3,705 | (100 | ) | % | — | (2,475 | ) | 2,475 | (100 | ) | % | ||||||||||||||||||
| Executive transition costs | 136 | — | 136 | — | % | 111 | — | 111 | — | % | ||||||||||||||||||||||
| Adjusted EBITDA | $ | 10,721 | $ | 7,696 | $ | 3,025 | 39 | % | $ | 20,834 | $ | 14,278 | $ | 6,556 | 46 | % | ||||||||||||||||
Investor Inquiries:
Sam Bentzinger
Gilmartin Group
investorrelations@tactilemedical.com
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