Preliminary Full Year 2019 Revenue Summary:
- Full year 2019 total revenue is expected to be in the range of
$188.4 million to $188.8 million, representing growth of approximately 31% year-over-year. The adoption of new lease accounting standards is expected to contribute 3.5 percentage points of the year-over-year increase in 2019 total revenue. - Full year 2019 revenue is expected to be comprised of:
-- Flexitouch system revenue in the range of$170.5 million to $170.9 million, representing growth of approximately 29% year-over-year
-- Entre and Actitouch systems revenue of approximately$17.9 million , representing growth of approximately 52% year-over-year
Preliminary Fourth Quarter 2019 Revenue Summary:
- Fourth quarter 2019 total revenue is expected to be in the range of
$56.0 million to $56.4 million, representing growth of approximately 21% to 22% year-over-year. The adoption of new lease accounting standards is not expected to contribute to the year-over-year increase in fourth quarter 2019 total revenue. - Fourth quarter 2019 revenue is expected to be comprised of:
-- Flexitouch system revenue in the range of$50.7 million to $51.1 million, representing growth of approximately 19% to 20% year-over-year
-- Entre and Actitouch systems revenue of approximately$5.3 million , representing growth of approximately 41% year-over-year
2020 Financial Outlook:
- For 2020, the Company expects revenue in the range of
$227.5 million to $230.5 million , representing growth of 21% to 22% year-over-year, compared to the expected full year 2019 revenue range of$188.4 million to $188.8 million. - Pursuant to the Company’s adoption of ASU No. 2016-02, “Leases” (ASC 842), full year 2019 revenue includes approximately
$5.0 million of rental revenue related to rental agreements commencing prior toDecember 31, 2018 which were recognized as month-to-month operating leases in 2019 and will not contribute to the Company’s revenue results going forward. Excluding this contribution to full year 2019 revenue related to the Company’s adoption of ASC 842, the 2020 revenue range reflects year-over-year growth of approximately 24% to 25% on an operational basis.
“We are pleased to report impressive performance during the fourth quarter, which resulted in expected revenue growth of 21% to 22% year-over-year,” said
Mr. Mattys continued: “After a 38-year career in the healthcare industry, I am announcing my intention to retire in 2020. It has been the highlight of my career to lead Tactile Medical for the last 15 years, and I’m proud of what we have achieved for the benefit of our patients, customers and shareholders alike. With an exceptional team in place and impressive long-term growth prospects, I believe Tactile Medical is well-positioned for future success and I look forward to continuing to execute our strategy this year alongside our senior leadership until my successor is in place.”
“On behalf of the Board of Directors, I would like to thank Jerry for the many accomplishments made possible during his tenure as CEO,” said
The financial information in this release is preliminary and subject to completion of the Company’s year-end financial reporting processes and audit. Tactile Medical intends to report its full year and fourth quarter 2019 financial results in February and will provide the anticipated report date in a subsequent press release.
About
Tactile Medical is a leader in developing and marketing at-home therapy devices that treat chronic swelling conditions such as lymphedema and chronic venous insufficiency. Tactile Medical’s Mission is to help people suffering from chronic diseases live better and care for themselves at home. The Company’s unique offering includes advanced, clinically proven pneumatic compression devices, as well as continuity of care services provided by a national network of product specialists and trainers, reimbursement experts, patient advocates and clinicians. This combination of products and services ensures that tens of thousands of patients annually receive the at-home treatment necessary to better manage their chronic conditions. Tactile Medical takes pride in the fact that our solutions help increase clinical efficacy, reduce overall healthcare costs and improve the quality of life for patients with chronic conditions.
Legal Notice Regarding Forward-Looking Statements
This release contains forward-looking statements. Forward-looking statements are generally identifiable by the use of words like “may,” “will,” “should,” “could,” “expect,” “anticipate,” “estimate,” “believe,” “intend,” “continue,” “confident,” “outlook,” “guidance,” “project,” “goals,” “plans,” “look forward” or “commit” 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 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; the Company’s Chief Executive Officer transition, including disruptions and uncertainties related thereto, the Company’s ability to appoint a successor with the desired level of experience and expertise in a timely matter, the potential impact on the Company’s business and future strategic direction resulting from the transition to a new Chief Executive Officer and the Company’s ability to retain other key members of senior management; 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
Use of Non-GAAP Financial Measures
This press release includes the non-GAAP financial measure of non-GAAP revenue, which differs from financial measures calculated in accordance with U.S. generally accepted accounting principles (“GAAP”). Non-GAAP revenue in this release represents revenue less operating lease revenue that was recognized in fiscal 2019 in connection with the Company’s adoption of ASC 842. Reconciliations of revenue to non-GAAP revenue, and related growth rates, are included in this press release.
Non-GAAP revenue is presented because the Company believes it is a useful indicator of its operating performance. The operating lease revenue excluded from 2019 revenue in the adjustment was related to rental agreements commencing prior to
Non-GAAP revenue is a non-GAAP financial measure and should not be considered as an alternative to, or superior to, revenue, as a measure of financial performance or cash flows from operations as a measure of liquidity, or any other performance measure derived in accordance with GAAP, and it should not be construed to imply that the Company’s future results will be unaffected by unusual or non-recurring items. Management primarily relies on the Company’s GAAP results in addition to using non-GAAP financial measures on a supplemental basis. The Company’s definition of non-GAAP revenue is not necessarily comparable to other similarly titled captions of other companies due to different methods of calculation.
Investor Inquiries:
Managing Director
Westwicke Partners
443-213-0500
[email protected]
Tactile Systems Technology, Inc. | ||||||||||||||||||||||||||||
Reconciliation of Expected 2019 Revenue to Expected 2019 Non-GAAP Revenue | ||||||||||||||||||||||||||||
PRELIMINARY | ||||||||||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||||||||
2019 | ||||||||||||||||||||||||||||
Reported | Expected | |||||||||||||||||||||||||||
(Dollars in millions) | Q1 | Q2 | Q3 | Q4 | Total | |||||||||||||||||||||||
Low | High | Low | High | |||||||||||||||||||||||||
Revenue | ||||||||||||||||||||||||||||
Sales revenue | $ | 30.8 | $ | 38.8 | $ | 42.9 | $ | 49.5 | $ | 49.8 | $ | 162.0 | $ | 162.3 | ||||||||||||||
Rental revenue | ||||||||||||||||||||||||||||
Sales-type lease revenue | 4.0 | 5.0 | 6.1 | 6.3 | 6.4 | 21.4 | 21.5 | |||||||||||||||||||||
Operating lease revenue(1) | 2.8 | 1.4 | 0.6 | 0.2 | 0.2 | 5.0 | 5.0 | |||||||||||||||||||||
Total rental revenue | 6.8 | 6.4 | 6.7 | 6.5 | 6.6 | 26.4 | 26.5 | |||||||||||||||||||||
Total revenue | 37.6 | 45.2 | 49.6 | 56.0 | 56.4 | 188.4 | 188.8 | |||||||||||||||||||||
Less: Operating lease revenue(1) | (2.8 | ) | (1.4 | ) | (0.6 | ) | (0.2 | ) | (0.2 | ) | (5.0 | ) | (5.0 | ) | ||||||||||||||
Total non-GAAP revenue | $ | 34.8 | $ | 43.8 | $ | 49.0 | $ | 55.8 | $ | 56.2 | $ | 183.4 | $ | 183.8 |
(1) The operating lease revenue excluded from 2019 revenue in the adjustment was related to rental agreements commencing prior to
Tactile Systems Technology, Inc. | ||||||||||||||||||||||
Reconciliation of Expected 2020 Growth Rates | ||||||||||||||||||||||
PRELIMINARY | ||||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||
Expected Year Ended | Projected Year Ended | |||||||||||||||||||||
(Dollars in millions) | December 31, 2019 | December 31, 2020 | Increase | |||||||||||||||||||
Low | High | Low | High | Low | High | |||||||||||||||||
Revenue | ||||||||||||||||||||||
Sales revenue | $ | 162.0 | $ | 162.3 | ||||||||||||||||||
Rental revenue | ||||||||||||||||||||||
Sales-type lease revenue | 21.4 | 21.5 | ||||||||||||||||||||
Operating lease revenue(1) | 5.0 | 5.0 | ||||||||||||||||||||
Total rental revenue | 26.4 | 26.5 | ||||||||||||||||||||
Total revenue | 188.4 | 188.8 | $ | 227.5 | $ | 230.5 | 21 | % | 22 | % | ||||||||||||
Less: Operating lease revenue(1) | (5.0 | ) | (5.0 | ) | N/A | N/A | 3 | % | 3 | % | ||||||||||||
Total non-GAAP revenue | $ | 183.4 | $ | 183.8 | $ | 227.5 | $ | 230.5 | 24 | % | 25 | % |
(1) The operating lease revenue excluded from 2019 revenue in the adjustment was related to rental agreements commencing prior to
Source: Tactile Systems Technology, Inc.