Tactile Systems Technology, Inc. (TCMD) Misses Q4 EPS by 2c, Revenues Beat; Offers FY19 Revenues Guidance Above Consensus

Tactile Systems Technology, Inc. (NASDAQ: TCMD) reported Q4 EPS of $0.12, $0.02 worse than the analyst estimate of $0.14. Revenue for the quarter came in at $46.4 million versus the consensus estimate of $43.41 million.

• Fourth quarter revenue increased 33% year-over-year, to $46.4 million, compared to $34.9 million in fourth quarter 2017.
• Flexitouch revenue increased 32% year-over-year, to $42.7 million, compared to $32.4 million in fourth quarter 2017.
• Operating income decreased 57% year-over-year to $2.1 million, compared to operating income of $4.9 million in fourth quarter 2017. Excluding the non-cash impairment charge and inventory write-off related to our Actitouch assets, fourth quarter 2018 adjusted operating income was $4.6 million.
• Net income increased 6% year-over-year to $2.4 million, compared to $2.2 million in fourth quarter 2017.
• Adjusted EBITDA increased 21% year-over-year to $8.2 million, compared to $6.8 million in fourth quarter 2017.
• On October 17, 2018, the Company announced an exclusive license agreement with Sun Scientific, Inc. for the intellectual property of the Aero-WrapTM compression therapy products in the United States and Canada. The wearable Aero-Wrap products provide static (continuous) compression for patients with swelling in their legs. Pursuant to the license agreement, the Company paid Sun Scientific an initiation fee of $4.0 million and will pay royalties based on future sales.

“We delivered strong operating and financial results in 2018 with full year revenue growth of 32%, well ahead of our expectations,” said Gerald R. Mattys, Chief Executive Officer of Tactile Medical. “The top-line growth was driven by the successful launch of our Flexitouch Plus system, continuation of our targeted sales strategy focused on high-volume accounts and strong growth in the Veterans Administration channel. We also made further progress toward expanding our portfolio of clinical evidence and increasing awareness among clinicians, payers and patients of the benefits of our clinically proven, cost-effective, at-home treatments for chronic conditions.”

Mr. Mattys continued, “Looking ahead to 2019, we remain confident in our ability to deliver 20%+ revenue growth and improved profitability, as we continue to expand our share of the $4+ billion U.S. market in lymphedema and chronic venous insufficiency.”

GUIDANCE:

Tactile Systems Technology, Inc. sees FY2019 revenue of $173-175.5 million, versus the consensus of $169.93 million.

For earnings history and earnings-related data on Tactile Systems Technology, Inc. (TCMD) click here.

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