Tactile Systems Technology, Inc. Reports Fourth Quarter and Full Year 2020 Financial Results; Introduces Full Year 2021 Outlook

Tactile Systems Technology, Inc.
·22 min read

Fourth Quarter Revenue Increased 4% Year-Over-Year

MINNEAPOLIS, Feb. 23, 2021 (GLOBE NEWSWIRE) -- Tactile Systems Technology, Inc. (“Tactile Medical”) (Nasdaq: TCMD), a medical technology company focused on developing medical devices for the at-home treatment of chronic diseases, today reported financial results for the fourth quarter and full year ended December 31, 2020.

Fourth Quarter 2020 Summary:

  • Total revenue increased 4% year-over-year, to $59.2 million, compared to $57.1 million in fourth quarter 2019.

  • Operating income of $7.0 million, compared to $6.0 million in fourth quarter 2019.

  • Net income of $12.1 million, compared to $4.3 million in fourth quarter 2019.

  • Adjusted EBITDA of $10.8 million, compared to $10.4 million in fourth quarter 2019.

  • Cash, cash equivalents, and marketable securities of $47.9 million at December 31, 2020, compared to $45.2 million at December 31, 2019.

Full Year 2020 Summary:

  • Total revenue decreased 1% year-over-year, to $187.1 million, compared to $189.5 million in 2019.

  • Excluding the contribution to full year 2019 revenue related to the Company’s adoption of ASC 842, full year 2020 revenue reflects growth of 1% year-over-year on an operational basis.

  • Operating loss of $3.6 million, compared to operating income of $10.5 million in 2019.

  • Net loss of $0.6 million, compared to net income of $11.0 million in 2019.

  • Adjusted EBITDA of $16.0 million, compared to $25.3 million in 2019.

“We were pleased to close 2020 by returning to year-over-year growth in the fourth quarter, and ultimately exceeding the high end of our annual revenue guidance range, in spite of the business disruption that we experienced due to the COVID-19 pandemic,” said Dan Reuvers, President and Chief Executive Officer of Tactile Medical. “In the fourth quarter, the majority of the facilities that we serve continued to operate with constraints related to social distancing and safety protocols, and we experienced incremental headwinds during the month of December as the holiday wave of cases impacted clinicians, patients and our own team. In spite of these incremental headwinds, I am proud of the exceptional effort and dedication shown by our team during the quarter, which enabled us to deliver strong performance by continuing to support our existing customers while expanding our prescriber base.”

Mr. Reuvers added, “Despite the continuation of COVID-related headwinds as we enter 2021, we believe we are well-positioned to emerge with an enhanced sales and field support team in place to improve our coverage and the productivity of our representatives, as well as an expanded pool of prescribers and an updated approach for educating clinicians and training patients. We are focused on expanding our leadership position in the over $5 Billion U.S. lymphedema market through a combination of continued execution and strategic investment in our business with the goal of returning to sustained 20%+ revenue growth and improving profitability for the benefit of our patients, customers and shareholders.”

Fourth Quarter 2020 Financial Results

Total revenue in the fourth quarter of 2020 increased $2.2 million, or 4%, to $59.2 million, compared to $57.1 million in the fourth quarter of 2019. The increase in total revenue was attributable to an increase of $2.4 million, in sales and rentals of the Entre system, which was partially offset by a decrease of $0.3 million, in sales and rentals of the Flexitouch system in the quarter ended December 31, 2020. Fourth quarter revenue continued to be negatively impacted by COVID-19, primarily from social distancing requirements and safety protocols imposed within clinics. These headwinds were partially offset by the continued expansion of our commercial team, effective virtual educational events, and an increase in the number of Medicare patients served.

Gross profit in the fourth quarter of 2020 increased $0.8 million, or 2%, to $41.9 million, compared to $41.1 million in the fourth quarter of 2019. Gross margin was 71% of revenue, compared to 72% of revenue in the fourth quarter of 2019.

Operating expenses in the fourth quarter of 2020 decreased $0.2 million, or 1%, to $34.9 million, compared to $35.1 million in the fourth quarter of 2019. The decrease in operating expenses in the fourth quarter of 2020 was driven by a decrease in sales and marketing expense of $2.6 million, or 12%, to $19.8 million, primarily due to lower patient training costs, lower sales commissions and reduced travel and entertainment expenses. The decrease in sales and marketing expense was nearly fully offset by reimbursement, general and administrative expenses, which increased $2.2 million, or 19%, to $13.7 million, compared to $11.5 million in the fourth quarter of 2019. The increase in reimbursement, general and administrative expenses was driven by increased litigation defense costs and other professional fees, as well as personnel-related expenses due to increased headcount in our reimbursement and corporate functions.

Operating income in the fourth quarter of 2020 increased $1.0 million, or 16%, to $7.0 million, compared to $6.0 million in the fourth quarter of 2019.

Other income in the fourth quarter of 2020 increased $1.0 million to $1.2 million, compared to $0.2 million in the fourth quarter of 2019. The increase in other income was due to $1.2 million received under the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) Provider Relief Fund to provide relief for lost revenues from the COVID-19 public health emergency.

Income tax benefit in the fourth quarter of 2020 was $3.9 million, compared to income tax expense of $1.9 million in the fourth quarter of 2019. The year-over-year change in income tax benefit/expense was primarily due to changes in our effective tax rate, which was primarily attributable to a change in taxable income, including proportionately higher tax benefits for stock-based compensation as compared to the same period last year.

Net income in the fourth quarter of 2020 was $12.1 million, or $0.61 per diluted share, compared to net income of $4.3 million, or $0.22 per diluted share, in the fourth quarter of 2019. Weighted average shares used to compute diluted net income per share were 19.8 million and 19.7 million in the fourth quarters of 2020 and 2019, respectively.

Adjusted EBITDA was $10.8 million in the fourth quarter of 2020, compared to Adjusted EBITDA of $10.4 million in the fourth quarter of 2019.

Full Year 2020 Financial Results:

Total revenue for the twelve months ended December 31, 2020, decreased $2.4 million, or 1%, to $187.1 million, compared to $189.5 million for the twelve months ended December 31, 2019. Total revenue for the twelve months ended December 31, 2020, increased 1% on an operational basis, excluding the contribution to revenue in the twelve months ended December 31, 2019 related to the Company’s adoption of accounting standard, ASC 842. The decrease in total revenue on a reported basis for the twelve months ended December 31, 2020, was driven by a decrease of approximately $7.4 million, in sales and rentals of the Flexitouch system, offset in part by an increase of $5.0 million, in sales and rentals of the Entre system. Revenue in the first two months of 2020 was ahead of our expectations. Beginning in March 2020 and continuing through the fourth quarter, revenue was impacted by the COVID-19 pandemic, which limited our ability to access our clinician customers and their patients. Specifically, we saw healthcare facilities and clinics restricting access to their clinicians, reducing patient consultations, or closing temporarily due to COVID-19.

Net loss for the twelve months ended December 31, 2020 was $0.6 million, or $0.03 per diluted share, compared to net income of $11.0 million, or $0.56 per diluted share, for the twelve months ended December 31, 2019. Weighted average shares used to compute diluted net loss/income per share were 19.3 million and 19.6 million for the twelve months ended December 31, 2020 and 2019, respectively.

Adjusted EBITDA was $16.0 million in the twelve months ended December 31, 2020, compared to adjusted EBITDA of $25.3 million in the twelve months ended December 31, 2019.

Cash Position

At December 31, 2020, cash, cash equivalents and marketable securities were $47.9 million, compared to $45.2 million at December 31, 2019. The Company had no outstanding borrowings on its $10.0 million revolving credit facility at December 31, 2020.

2021 Financial Outlook

The Company expects full year 2021 total revenue in the range of $215.3 million to $224.5 million, representing an increase of 15% to 20% year-over-year, compared to total revenue of $187.1 million in 2020.

Conference Call

Management will host a conference call at 5:00 p.m. Eastern Time on February 23, 2021, 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 13715783. 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 13715783. 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 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,” “look forward,” “poised,” “designed,” “plan,” “return,” “focused,” “prospects” or “remain” or the negative of these words or other variations on these words or comparable terminology. The reader is cautioned not to put undue reliance on these forward-looking statements, as these statements are subject to numerous factors and uncertainties outside of the Company’s control that can make such statements untrue, including, but not limited to, the impacts of the COVID-19 pandemic on the Company’s business, financial condition and results of operations; the course of the COVID-19 pandemic and its impact on general economic, business and market conditions; the Company’s inability to execute on its plans to respond to the COVID-19 pandemic; the adequacy of the Company’s liquidity to pursue its business objectives; the Company’s ability to obtain reimbursement from third party payers for its products; loss or retirement of key executives, including prior to identifying a successor; adverse economic conditions or intense competition; loss of a key supplier; entry of new competitors and products; adverse federal, state and local government regulation; technological obsolescence of the Company’s products; technical problems with the Company’s research and products; the Company’s ability to expand its business through strategic acquisitions; the Company’s ability to integrate acquisitions and related businesses; price increases for supplies and components; the effects of current and future U.S. and foreign trade policy and tariff actions; or the inability to carry out research, development and commercialization plans. In addition, other factors that could cause actual results to differ materially are discussed in the Company’s filings with the SEC. Investors and security holders are urged to read these documents free of charge on the SEC’s website at http://www.sec.gov. The Company undertakes no obligation to publicly update or revise its forward-looking statements as a result of new information, future events or otherwise.

Use of Non-GAAP Financial Measures

This press release includes the non-GAAP financial measures of Adjusted EBITDA, non-GAAP revenue change and Adjusted EBITDA margin, 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 loss on termination of lease, plus impairment charges and inventory write-offs, less CARES Act funding, plus litigation defense costs and plus executive transition costs. Adjusted EBITDA margin in this release represents net margin (net income or loss divided by total revenue), plus or less the same items as with Adjusted EBITDA, but on a percentage of revenue basis. Reconciliations of Adjusted EBITDA to net income (loss), and Adjusted EBITDA margin to net margin, are included in this press release.

Non-GAAP revenue change in this release represents full year 2020 revenue compared to full year 2019 revenue less operating lease revenue that was recognized in 2019 in connection with the Company’s adoption of ASC 842. A reconciliation of GAAP revenue change to non-GAAP revenue change is 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.

Adjusted EBITDA, non-GAAP revenue change and Adjusted EBITDA margin are non-GAAP financial measures and should not be considered as an alternative to, or superior to, net income or loss, GAAP revenue change or net margin, respectively, as measures of financial performance or cash flows from operations as a measure of liquidity, or any other performance measure derived in accordance with GAAP, and they should not be construed to imply that the Company’s future results will be unaffected by unusual or non-recurring items. In addition, Adjusted EBITDA is not intended to be a measure of free cash flow for management’s discretionary use, as it does not reflect certain cash requirements such as tax payments, debt service requirements, capital expenditures and certain other cash costs that may recur in the future. Adjusted EBITDA contains certain other limitations, including the failure to reflect our cash expenditures, cash requirements for working capital needs and cash costs to replace assets being depreciated and amortized. In evaluating non-GAAP financial measures, you should be aware that in the future the Company may incur expenses that are the same as or similar to some of the adjustments in this presentation. The Company’s presentation of non-GAAP financial measures should not be construed to imply that its future results will be unaffected by any such adjustments. Management compensates for these limitations by primarily relying on the Company’s GAAP results in addition to using non-GAAP financial measures on a supplemental basis. The Company’s definition of these non-GAAP financial measures is not necessarily comparable to other similarly titled captions of other companies due to different methods of calculation.

Tactile Systems Technology, Inc.

Consolidated Balance Sheets

(Unaudited)

December 31,

December 31,

(In thousands, except share and per share data)

2020

2019

Assets

Current assets

Cash and cash equivalents

$

47,855

$

22,770

Marketable securities

22,464

Accounts receivable

43,849

33,444

Net investment in leases

10,708

8,147

Inventories

18,563

19,059

Prepaid expenses and other current assets

2,638

2,451

Total current assets

123,613

108,335

Non-current assets

Property and equipment, net

6,957

7,408

Right of use operating lease assets

20,132

15,885

Intangible assets, net

1,680

5,312

Accounts receivable, non-current

9,433

4,184

Deferred income taxes

10,198

8,970

Other non-current assets

2,074

1,658

Total non-current assets

50,474

43,417

Total assets

$

174,087

$

151,752

Liabilities and Stockholders' Equity

Current liabilities

Accounts payable

$

4,197

$

3,843

Accrued payroll and related taxes

11,588

10,098

Accrued expenses

4,423

4,498

Income taxes payable

2,658

632

Operating lease liabilities

2,006

1,454

Other current liabilities

1,842

903

Total current liabilities

26,714

21,428

Non-current liabilities

Accrued warranty reserve, non-current

3,235

2,541

Income taxes, non-current

54

Operating lease liabilities, non-current

19,388

15,134

Total non-current liabilities

22,623

17,729

Total liabilities

49,337

39,157

Stockholders’ equity:

Preferred stock, $0.001 par value, 50,000,000 shares authorized; none issued
and outstanding as of December 31, 2020 and December 31, 2019

Common stock, $0.001 par value, 300,000,000 shares authorized; 19,492,718
shares issued and outstanding as of December 31, 2020; 19,152,715 shares
issued and outstanding as of December 31, 2019

19

19

Additional paid-in capital

104,675

91,874

Retained earnings

20,056

20,676

Accumulated other comprehensive income

26

Total stockholders’ equity

124,750

112,595

Total liabilities and stockholders’ equity

$

174,087

$

151,752


Tactile Systems Technology, Inc.

Consolidated Statements of Operations

(Unaudited)

Three Months Ended

Year Ended

December 31,

December 31,

(In thousands, except share and per share data)

2020

2019

2020

2019

Revenue

Sales revenue

$

51,784

$

50,401

$

161,497

$

162,904

Rental revenue

7,458

6,662

25,633

26,588

Total revenue

59,242

57,063

187,130

189,492

Cost of revenue

Cost of sales revenue

14,441

13,803

45,309

47,034

Cost of rental revenue

2,948

2,160

9,011

8,222

Total cost of revenue

17,389

15,963

54,320

55,256

Gross profit

Gross profit - sales revenue

37,343

36,598

116,188

115,870

Gross profit - rental revenue

4,510

4,502

16,622

18,366

Gross profit

41,853

41,100

132,810

134,236

Operating expenses

Sales and marketing

19,777

22,374

79,634

78,920

Research and development

1,373

1,192

5,264

5,174

Reimbursement, general and administrative

13,712

11,485

51,540

39,644

Total operating expenses

34,862

35,051

136,438

123,738

Income (loss) from operations

6,991

6,049

(3,628

)

10,498

Other income

1,187

151

1,367

631

Income (loss) before income taxes

8,178

6,200

(2,261

)

11,129

Income tax (benefit) expense

(3,935

)

1,917

(1,641

)

158

Net income (loss)

$

12,113

$

4,283

$

(620

)

$

10,971

Net income (loss) per common share

Basic

$

0.62

$

0.22

$

(0.03

)

$

0.58

Diluted

$

0.61

$

0.22

$

(0.03

)

$

0.56

Weighted-average common shares used to
compute net income (loss) per common
share

Basic

19,458,865

19,062,584

19,346,929

18,919,007

Diluted

19,830,970

19,700,882

19,346,929

19,641,143


Tactile Systems Technology, Inc.

Consolidated Statements of Cash Flows

(Unaudited)

Year Ended December 31,

(In thousands)

2020

2019

Cash flows from operating activities

Net (loss) income

$

(620

)

$

10,971

Adjustments to reconcile net (loss) income to net cash provided by operating activities:

Depreciation and amortization

2,794

3,538

Net amortization of premiums and discounts on securities available-for-sale

(91

)

(307

)

Deferred income taxes

(1,233

)

(146

)

Stock-based compensation expense

10,689

9,824

Gain on other investments and maturities of marketable securities

(11

)

7

Impairment losses

4,025

Loss on termination of lease

1,148

Changes in assets and liabilities:

Accounts receivable

(10,405

)

(9,112

)

Net investment in leases

(2,561

)

(8,147

)

Inventories

318

(7,870

)

Income taxes

1,972

2,428

Prepaid expenses and other assets

(528

)

(1,166

)

Right of use operating lease assets

559

625

Medicare accounts receivable, non-current

(5,249

)

(2,300

)

Accounts payable

337

(1,389

)

Accrued payroll and related taxes

1,490

2,677

Accrued expenses and other liabilities

1,308

1,729

Net cash provided by operating activities

2,794

2,510

Cash flows from investing activities

Proceeds from sales of securities available-for-sale

1,493

Proceeds from maturities of securities available-for-sale

22,500

25,000

Purchases of securities available-for-sale

(22,840

)

Purchases of property and equipment

(2,059

)

(5,446

)

Intangible assets costs

(232

)

(542

)

Other investments

(30

)

Net cash provided by (used in) investing activities

20,179

(2,335

)

Cash flows from financing activities

Taxes paid for net share settlement of restricted stock units

(1,854

)

(3,391

)

Proceeds from exercise of common stock options

1,068

2,834

Proceeds from the issuance of common stock from the employee stock purchase plan

2,898

3,053

Net cash provided by financing activities

2,112

2,496

Net increase in cash and cash equivalents

25,085

2,671

Cash and cash equivalents – beginning of period

22,770

20,099

Cash and cash equivalents – end of period

$

47,855

$

22,770

Supplemental cash flow disclosure

Cash paid for interest

$

$

Cash paid for taxes

$

543

$

344

Capital expenditures incurred but not yet paid

$

17

$

122


The following table summarizes revenue by product for the three and twelve months ended December 31, 2020 and 2019:

Tactile Systems Technology, Inc.

Supplemental Financial Information

(Unaudited)

Three Months Ended

Year Ended

December 31,

Change

December 31,

Change

(Dollars in thousands)

2020

2019

$

%

2020

2019

$

%

Flexitouch System

$

51,293

$

51,556

$

(263

)

(1

)

%

$

163,914

$

171,323

$

(7,409

)

(4

)

%

Other products(1)

7,949

5,507

2,442

44

%

23,216

18,169

5,047

28

%

Total Revenue

$

59,242

$

57,063

$

2,179

4

%

$

187,130

$

189,492

$

(2,362

)

(1

)

%

(1) The “other products” line primarily includes revenue from our Entre system. The Actitouch system and Airwear wrap contributed immaterial amounts of revenue for the years ended December 31, 2020 and 2019.


The following table contains a reconciliation of the revenue change rate to the non-GAAP revenue change rate for the year ended December 31, 2020 compared to the year ended December 31, 2019:

Tactile Systems Technology, Inc.

Reconciliation of Revenue Change Rate to Non-GAAP Revenue Change Rate

(Unaudited)

Year Ended

Year Ended

Change Rate

(Dollars in thousands)

December 31, 2020

December 31, 2019

% Change

Total revenue

$

187,130

$

189,492

(1

)

%

Less: Operating lease revenue(1)

N/A

(5,018

)

2

%

Total non-GAAP revenue

$

187,130

$

184,474

1

%

(1) The operating lease revenue excluded from revenue for the year ended December 31, 2019, in the adjustment was related to rental agreements commencing prior to December 31, 2018, which were recognized as month-to-month operating leases for the year ended December 31, 2019, and did not contribute to the Company’s revenue results in 2020.


The following table contains a reconciliation of net income (loss) to Adjusted EBITDA for the three and twelve months ended December 31, 2020 and 2019, as well as the dollar and percentage change between the comparable periods:

Tactile Systems Technology, Inc.

Reconciliation of Net Income (Loss) to Non-GAAP Adjusted EBITDA

(Unaudited)

Three Months Ended

Increase

Year Ended

Increase

December 31,

(Decrease)

December 31,

(Decrease)

(Dollars in thousands)

2020

2019

$

%

2020

2019

$

%

Net income (loss)

$

12,113

$

4,283

$

7,830

183

%

$

(620

)

$

10,971

$

(11,591

)

(106

)

%

Interest expense (income), net

(14

)

(81

)

67

(83

)

%

(75

)

(343

)

268

(78

)

%

Income tax expense (benefit)

(3,935

)

1,917

(5,852

)

N.M.

%

(1,641

)

158

(1,799

)

N.M.

%

Depreciation and amortization

692

730

(38

)

(5

)

%

2,794

3,538

(744

)

(21

)

%

Stock-based compensation

2,401

2,437

(36

)

(1

)

%

10,689

9,824

865

9

%

Loss on termination of lease

1,148

(1,148

)

(100

)

%

1,148

(1,148

)

(100

)

%

Impairment charges and inventory write-offs

%

4,025

4,025

%

CARES Act Funding

(1,176

)

(1,176

)

%

(1,176

)

(1,176

)

%

Litigation defense costs

599

599

%

1,030

1,030

%

Executive transition costs

105

106

%

981

981

%

Adjusted EBITDA

$

10,785

$

10,434

$

352

3

%

$

16,007

$

25,296

$

(9,289

)

(37

)

%


The following table contains a reconciliation of net margin to Adjusted EBITDA margin for the three and twelve months ended December 31, 2020 and 2019, as well as the basis point change between the comparable periods:

Tactile Systems Technology, Inc.

Reconciliation of Net Margin to Adjusted EBITDA Margin

(Unaudited)

Three Months Ended

Year Ended

December 31,

Increase

December 31,

Increase

(As a percentage of revenue)

2020

2019

(Decrease)

2020

2019

(Decrease)

Net margin

20.4

%

7.5

%

1,290

bps

(0.3

)

%

5.8

%

(610

)

bps

Interest expense (income), net

0.0

%

(0.1

)

%

10

bps

0.0

%

(0.2

)

%

20

bps

Income tax expense (benefit)

(6.6

)

%

3.4

%

(1,000

)

bps

(0.9

)

%

0.1

%

(100

)

bps

Depreciation and amortization

1.2

%

1.3

%

(10

)

bps

1.5

%

1.9

%

(40

)

bps

Stock-based compensation

4.1

%

4.3

%

(20

)

bps

5.7

%

5.2

%

50

bps

Loss on termination of lease

0.0

%

1.9

%

(190

)

bps

0.0

%

0.5

%

(50

)

bps

Impairment charges and inventory write-offs

0.0

%

0.0

%

bps

2.2

%

0.0

%

220

bps

CARES Act Funding

(2.0

)

%

0.0

%

(200

)

bps

(0.6

)

%

0.0

%

(60

)

bps

Litigation defense costs

0.9

%

0.0

%

90

bps

0.6

%

0.0

%

60

bps

Executive transition costs

0.2

%

0.0

%

20

bps

0.4

%

0.0

%

40

bps

Adjusted EBITDA margin

18.2

%

18.3

%

(10

)

bps

8.6

%

13.3

%

(470

)

bps

CONTACT: Investor Inquiries: Mike Piccinino, CFA Managing Director Westwicke Partners 443-213-0500 investorrelations@tactilemedical.com