Earnings call transcript Q4 2022

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Operator

Welcome, ladies and gentlemen to the Fourth Quarter and Fiscal Year 2022 Earnings Conference Call for Tactile Medical. At this time, all participants have been placed in a listen-only mode. At the end of the company's prepared remarks, we will conduct a question-and-answer session. Please note that this conference call is being recorded and will be available on the company’s website for replay shortly.

Before we begin, I would like to remind everyone that our remarks and responses to your questions today may contain forward-looking statements that are based on the current expectations of management and involve inherent risks and uncertainties which could cause actual results to differ materially from those indicated, including those identified in the Risk Factors section of our Annual Report on Form 10-K to be filed with the Securities and Exchange Commission. updated are in available be the filings may which SEC, on factors from our time-to-time with Such our website. obligation a information, no forward-looking undertake to or update We revise statements as events result future new of or otherwise. publicly our

to refer with include not accordance non-GAAP measures. to Accepted these will Generally measures or Principles calculated non-GAAP in are financial the financial Reconciliations and references as call website. that our certain measures the This presented press GAAP. available GAAP measures with earnings Investor accordance those Accounting in also are of calculated We Relations the most generally financial in to on comparable of release portion

the would go Officer. Mr. over Please to Tactile sir. Chief I turn Dan Executive like ahead now call Medical’s to Reuvers, President and

Daniel Reuvers

priorities press for review begin our update to Moen. our welcome our performance performance. by I'll of will by the years in the today's operator thoughts start better and with a that quarter earnings operational detail conclude important and joined our fourth sharing XXXX during highlights Thank then call. session. And strategic for I'll additional the year Brent Q&A today. we of financial recent XXXX review months. and results line this with our financial remarks on some outlook before come guidance the release the to fourth the year on and introduced some high Officer for you, our an we I'll quarter in Brent financial our along Financial greater in share in and quarter everyone XXXX, I'm which earnings than off Then drove expected factors our and on Chief full of level the

financial the year-over-year by performance. With begin quarter, QX $XX.X grew our of revenue to with a fourth XX%, total we In that, million. our let's review

of high press to year the shared enabling our revenue earnings performance expectations for quarter, that the we the our total exceed release. guidance Our range above end us in updated quarter was well third fiscal

of composition increased significant the the to from products our were our airway year-over-year and our from million for and lymphedema year-over-year at total $XX.X see Revenue both sales to to lymphedema especially products products. of XX% our airway growth contributions clearance revenue increased clearance $X.X sales we Looking of million. quarter, pleased XX%

fourth in generating a complimented respectively million the periods net expansion, quarter $X improvements non-GAAP net million points losses and with year-over-year. basis prior and EBITDA of several year-over-year margin our GAAP basis We profitability expansion to non-GAAP in of revenue their performance points and $X year of our income strong XXX with GAAP in and compared on delivering a XXX basis adjusted operating

generated we the milestone $X related acquisition. $X.X the perspective, in cash AffloVest fund cash to which payment million flow, helped million our of a From free period

terms the respect factors to that In the at product to consistent with headcount of sales fourth lymphedema with ended of the our we contributed quarter, our we've level XXXX our representatives some XXXX. performance, quarter experienced half XXX with revenue of quarters in to challenging retention of of improved which and the comparison second engagement fourth beginning line, we seen the speaks in to the

accounts, engaging From of pockets continued At to that our stabilize resume time revenue clinic lymphedema XXXX during more we centers and the quarter were seeing previously including late notable in the a we of quarters, saw quarter in reps VA with made to of reflects unrepresented level, accounts those progress since during same the reps XXXX. continued our throughput patients. trained sales the as productivity macro and team performance the fourth hired bolus contribute Our meaningfully. that

to positive We lymphedema strong our discuss efforts, digital sales extremity sales to ComfortEase these team reflecting our providing and continued throughout July, new the in success revisiting saw serve to were the application, lower which well when extremities the and solutions ComfortEase launched of response the in team quarter, for Our garments our accounts. on Kylee them use market systems lower both of our with garments.

pleased policy engage that that their reps see another quarter. beginning required medical certificates claims CMS provided the compression educate January change XXXX. all include Additionally, and prescribers reason we pneumatic suppliers fourth for were upcoming Xst, discontinued The device to of to during with necessity to our with

with work of educate and airway channel base our partners, to DME helping team their specialists of continued product support reps. clearance line, respiratory Turning our our to to existing

DME for therapy branches, We airway AffloVest continued and serve. identifying to The expand their reps eligible clearance in DME customers been to patients from the experience solid distributors. our availability have among AffloVest they clearance therapy that their continued the existing airway of additional distributors demand for successful to

We demand the otherwise would who have we're previously believe reflect to unidentified continues adoption that awareness untreated. and and the seeing patients underserved increasing by left been

the with reduce at-home an pulmonary of For proven and that's these AffloVest them airway to provides infections clinically solution clearance patients, risk pneumonias. recurring our therapy

we see continued the full airway our following the anniversary sales be paced constraints to pleased by our that nearly our recent earnings While calls. double quarter revenue basis our a on of on were in first we've performance discussed year-over-year the to acquisition, supply clearance AffloVest

supply said, AffloVest in our chain. team that expand capacity our progress working supplier our establishing production and securing second to has operations With by notable made

Our excited we on focused demand. future us as and developing in XXXX XXXX, now product enter for the prospects squarely about this supporting sales and has we're performance line,

prescribers, limited trainers patients with the our seen and mobility. extremities review market the new lower with continues our release received patient of features use, a garments, Application. extremity The full experience, substantially trainers, in of patients especially design have our response fourth garments enhanced that underscore ease we've portion pleased a the bilateral continue fit for the progress from on product's to and feedback comfort ComfortEase standpoint, the our to ComfortEase in quarter. Shifting large product of and improving the From lymphedema lower we operational patients Mobile following we've be the and to Kylee of from with

our the to make features development product to from are garment are the and to garments, breathable and continuing continue highlights comfortable easier for our the appreciation ComfortEase in the best-in-class of indicative These Feedback designed apply experience to on. patient deliver will priorities improving materials treatment. more an to patients flexible which while used wear focus

Our making team offices also to platforms. our is prescribers in by which product en adoption the iOS patients both platforms social the demos and Android expanding of in app media via first made their steady Kylee clinician available in-clinic through progress Application, and the educating our patient Mobile doctor's available generation on

data for engage with their and them about tools represents to a their obtain qualify definitive earlier assemble resource options, the disease treatment. and treatment patients with progression, educate As a in reminder, them diagnosis for our a Kylee them Mobile App and to requisite help new lymphedema

review use support Once they track enhance and and a patient qualifies app their Entre or receive order can the training tutorials, to to leading further helping systems, our training to to effort. our Flexitouch customer industry our

team shipped the worked notably, we these to quarter, capabilities During systems our into year. beyond Bluetooth last Flexitouch app's expand initial Plus began functionality our the late also fourth incorporating features. Most

February allows Kylee, to which enabling share automatically Flexitouch doctor. auto-generated patients of track with in recently to their summarize version easily latest out allows them their app, activity activity rolled we Plus log of the touch the and our they to an can with which synchronize Bluetooth version their their flexi The Kylee in recent report, with treatments. latest app users treatment also with

milestone a initial While we're significant Plus between connectivity in we Kylee the rollout, represents lymphedema. addition the still and this the personalized believe to more days in Flexitouch of care Bluetooth of of treatment bringing

of success garments initial extremity the and with both pleased we're ComfortEase Mobile short, Application. Kylee In lower

I'll XXXX later discuss and cadence from product the of my in As the consistent Tactile of Medical years to they a remarks, in innovation beginning represent more come.

from to XXth, was its lymphedema treatment. medical awareness of of lymphedema efforts educate and Medical of and raise obesity in our role discussing Journal Dr. publication XX,XXX observational European including community in the Tom the Vascular The de-identified Officer, a patient data authored the Turning researchers, and that the described over by November Surgery lymphedema. new O’Donnell, study effective Chief On featured was patients. our cohort results Endovascular included for on an publication clinical five

patients diagnosed severe a and whether obesity with as related also times treatment The of groups, the two health were lymphedema more characteristics, the The and that deep on medical of compared result. into These higher obesity. as demographics, researchers and the researchers both costs two cellulitis, infection patients were depending had a half potentially outcomes then and from two separated demonstrated consequences. these plans, patients severe than to serious with bacterial suffer study respective skin with they The a groups. painful likely

are that and cellulitis. importance obesity early the treatments including these effective diagnosis, proven patients. well both health our through the to clinical that patients of incidence services Importantly, awareness and recognizing lymphedema the for targeted fourth their raise lymphedema reduce continued mind, economic study. those of also the events, to received this among fewer and educational their This with this accurate severe programming often and lymphedema, efforts featured the burden obesity education treatments treatment including as and these quarter, with treatment medical researchers that for and results With as to overlooked underscores importance of found the reduce during of of the its in team effective lymphedema

attendees. obesity related unit lymphedema, launched the team December, XXX which course drew our In education from first participation for continuing

quarter a we whole, were programs attended XXXX XX fourth as that clinician hosted the by participants. During educational approximately

participants, virtual Our to trained play role full we awareness. for in X,XXX programming demonstrating year expanding the nearly continue significant in-person and the

sales the airway revenue financial product in in the standpoint whole, and and We following digit XXXX. the from returned pleased were the growth a standalone of experienced a to a over recovered On our line Stepping fourth basis on growth annual sales lymphedema late strong product line that conclusion force in our quarter. basis as back, in from AffloVest. we operational XXX% year to both turnover acquisition XXXX of looking achieved XXXX, and we of growth we this achieved our in XXXX with back our line year-over-year double a throughout exceptionally clearance product the

lines, our of lymphedema revenue we And each annual releases, product result multi-year in earnings of these Tactile to over fourth guidance and product performance three years, new introduced quarter successfully third innovation. press Medical raise were exceeded which commitment lastly, we reflecting new able ultimately we the a the total first the our As the for to renewed in in quarter. has second released patients products

discuss before that via Now I'd to to call an this earlier Since Brent, announced as Chief turn in to we made has intention we Today Brent joining over analytical announcement and his communicated as an XXXX, morning. XXXX. company. been Officer important contributor retire acquisition the release financial like I a Tactile team, our Medical to including as develop processes, has accounting important public our achieve reporting in strong helping September Brent and a largest of organization, growth our and improve financial milestones, multiple an press

today's a trusted as and like his colleague I'd amid we team, tactile. named. the interim, until I since transition. three press successor while his Brent's continued the joined initiated such a smooth a as first leadership and today's identify forward made broader Brent on behalf support last I continued years has the contributions through time to in end the at In has the On process for he to Tactile, the opportunity been or to to successor. thank And over commitment of we've announced important him in a to take we look release, call of the quarter appreciate is role his close

detail financial Brent Brent? with guidance quarter fourth for will now more results along financial XXXX. in review our our

Brent Moen

It and of team leadership group therapies executive work colleagues of Dan. has we with and to excellent as develop patients. bring Thanks, grow member been serve to privilege the as a organization Tactile's to a an life-changing

support and role the I'd years, I course supporting the to year, and transition our last the forward retiring to the time transition. last thank from operational Tactile. a for the look me I believe team the my smooth team made like right over of CFO Given their this over strength of begin is and and our to depth progress at the to five for everyone financial on

quarter financial of fourth to revenue of total review $XX.X million our performance, the to to increased fourth compared $XX.X XXXX. XX% Turning quarter the million year-over-year in in

and total includes Flexitouch includes XX% Looking product million product $X.X to to by year-over-year sales and which $X.X sales Plus $XX.X and AffloVest clearance or which increased million our our line XX% $X.X of airway systems products, or our year-over-year million. of products, line, at revenue our million lymphedema Entre rentals increased our

and $X.X payers, from Total million million $X.X from Medicare, Equipment sales revenue million by comprised million Durable channel Medical of was distributors, $XX.X to VA. from from commercial $XX the

channel a our of million, therapy and XXXX, is fourth acquisition These total $XX reminder, distributors million, clearance approximately figures Durable in distributors to Equipment business. represented Medicare, VA the the revenue $X.X revenue airway by As and Commercial, which compared of our DME Medical of $X.X comprised million million from quarter $XX.X in respectively. the

all spot GAAP gross a P&L, XX.X%. to buys select components. references fourth revenue gross compared freight quarter XX.X% XX.X% as Non-GAAP direct was higher to Gross year-over-year margin margin attributable and are Continuing basis. down and unless to was noted, on was The margin XX.X%. non-GAAP the expense, on to well as decrease results compared in labor of

AffloVest also and XXXX. write-offs the the Non-GAAP gross gross non-cash Non-GAAP margin intangible quarter to acquisition quarter price amortization related of excludes fourth excludes inventory margin purchase adjustments of in non-cash both XXXX of periods. in in fourth the

reconciliations our GAAP provided release. certain have press of we measures reminder, earnings a to in non-GAAP As

$XX.X administrative intangible general was expense and activities. expenses $XXX,XXX expenses airway increase or earnout we the increase primarily lymphedema million as X%. $XXX,XXX $X.X increase million business by therapy operating driven increase increase non-cash a non-cash operating partially expenses was a quarter research to reimbursement $X.X driven $X.X clearance year-over-year marketing operating the travel a in in added also expenses to Fourth normalized amortization of with along acquisition in related million by and expenses sales offset in were and hires team, year-over-year by due increase of a in in and million, business increased to related decrease sales and our to The new expenses The returned expenses. an development asset

due year. or Operating income was operating expense $X.X compared compared quarter compared of higher Non-GAAP million $X.X in the in by XX% to driven XX% on Other to $X.X outstanding fourth compared interest to expense the increase year-over-year prior sales. million sales $XXX,XXX or a $XXX,XXX in million was the was year. to prior million $X.X income rates borrowings interest to of

Income tax recorded to being against our the result prior assets, to in expense expense while income tax tax a current Income relates fourth deferred XXXX a in million. year expense full was of $XX.X against tax the allowance deferred period $X.X quarter was of assets. valuation tax million establishing our compared valuation year allowance

or Net XX% to non-GAAP of million net year-over-year $X.XX million or million compared million income or to Adjusted diluted net diluted share. Non-GAAP was $X.X $X.XX million. of per was a share income or to of per loss $X.X $X.X of increased $X.X $XX.X sales. compared sales loss million $X.X EBITDA net XX% compared to XX%

XXXX, and December XX, in December $XX.X had This in million of of of $XX million As XXXX. outstanding cash as and to XX, million compares $XX.X million we of borrowings $XX cash borrowings. outstanding

quarter former XXXX, we In earnout AffloVest. the addition, fourth to of made $X during the the of owner million payment

growth press XX% review year-over-year. XXXX million, which representing full we morning, to $XXX of our X% of our release $XXX in year million Turning of in we expect XXXX outlook, total earnings the range introduced revenue to this to

our revenue products X% total year-over-year, approximately to airway and our and approximately assumes sales of year-over-year. increased sales increased XX% to XXXX guidance clearance rentals lymphedema range products of XX% X% Our

approximately a year for XX%, expect expense X.X fully the For GAAP margins low operating tax digits our our the average single modeling million, of expenses in of we gross weighted to and range, full $XX to approximately$ count interest shares. increase rate year-over-year, be the low a in share purposes, of GAAP XX% XXXX, diluted million

to XXXX. expect million also We EBITDA of in adjusted $XX approximately generate to million $XX

$XX and of approximately adjusted million value approximately expense consideration assumes non-cash stock $X.X in changes million, million. expectation depreciation $X.X of EBITDA compensation amortization of expense contingent including intangible of and certain approximately Our items fair

our we increase XX% XXXX, XX% to range the of expect of revenue total quarter first year-over-year. the in in to Lastly,

the back turn I'll to closing that, some Dan? With Dan call for remarks.

Daniel Reuvers

Thanks, Brent.

we're and growth in the Our created as made the return product view XXXX we while we positioned emerging operational going to XXXX increasingly growth well financial our partners new we on revenue DME team, drive profile. guidance strong, and on in driving reflects lymphedema double ability traction forward. basis by improvements part momentum year-over-year an to based sales to progress XXXX. within sustainable, profitable channel our is field our belief in With in digit our introductions, believe annual organic profitability enter an This the established

Three, also following financial and we're to for continued productivity XXXX, deepen their our support our two, pursuing priorities develop patients strategic digital efficiency providers to introduce to cost and for enhancing new functionality products Number operational on focused sales finally, and progress, In serve. to needs DME year overall our the relationships the improve lymphedema our with and addressing reduce and line. innovations clearance reps lifestyle and airway the our operational of team. our improving expand product focused therapy and on in of continue optimization, the

these profitability driving us while each priorities investor as longer progressing of believe will with execution introduced guidance December. We term our to last XXXX presentation achieve to respect in enable our goals that financial and four revenue towards our for

continue full XXXX, least adjusted $XXX total at to of Specifically year for million we to in deliver expect the EBITDA. of and $XX million at revenue least

to Additionally, least million at the cumulative generate we $XX three-year XXXX to free expect from flow period in cash XXXX. during

reveal for and as forward believe progress we goals, our towards to end leadership with lies extending significant underserved chronic we serve, the look we As runway and ahead us we conditions. markets treat we in continue these patients to position

entire our like to XXXX. job well everyone our shareholders, customers, this our I'd and to team on and for thanks thanking call. congratulating Tactile close in as done team efforts our well year on partners, at past their a morning's supply the Medical just by special this A

call the open for that with we'll questions. now And operator,

Operator

comes Adam your with you. from proceed Maeder line question. Sandler. Piper Please first with of Thank question [Operator the Our Instructions]

Adam Maeder

and on the Maybe congrats X% Dan it Brent, I to morning, the the a the upcoming more to finish bit and wanted and to line, year, good the start, for quarter the relates on on to Brent. little outlook just to as Hi, nice XX%. XXXX Congrats color retirement. ask top

I a a XX%. XXXX? we AffloVest, into And little the conservatism a bit lingering chain clearance think do exited that lymphedema X%, X% to you know, headwinds And in we square about of from new airway product of thanks. to environment XX% there there How launches? supply some are think you where what's I of talk growth Maybe guide are standpoint, procedure into outlook just from kind the heard about as year? those? revenue your I baked I'd guess to just Any versus is then kind contribution then, general of followup, look assumed had

Daniel Reuvers

Yes, Yes, let Brent color of thanks if over to it him. bit he little Adam. has a at on for the to arrived guidance give I'll how add, we anything XXXX me then turn question, you and wants

in all, getting revenue think of that here, growth digits demonstrate First operating it's to trying worth a step is that margin and I to really we've double make. both to out the in wanted pointing we're balanced and back direction

of assumes what to want direction the reflects a in demonstrating profitability as we're roughly guidance doubling the that year in did think for in and we the XX% XXXX, growth the The go growth I we cautious full double also overall. digit in in leverage lymphedema It so moving EBITDA well. certainly side back and growth adjusted over to getting

in as on more enter the we're a now, about so there's beyond to of end the yes, most think think our day, I can think this chain, continuing at focus AffloVest that we bit of the year business, develop but I we think we that with cautiousness stance. supply that the of I question

on I in end the could assumptions a of like what a on created of little back uncertainty our had the that recession look little things of of that probably bit bit we part half some the a was year. the on low caution think or

like pressure think than increase even bigger of some don't we and can soft If a is I things the on you our those products. they much landing more unemployment spending, because and we on find hope an just know, find so point and could that consumer affect that AffloVest higher you the the have lymphedema in of certainly many see for, things us, impact price co-pays probably

those think that cautions the I So some felt. were of we

AffloVest that lower The other to removal kind about business, increased just what I categories, bit at the more exemption the in just trying both to energy we're of grow making patients, while the even little cautious there. obviously into with the public a the is, is put we're And slightly growth of and expect one waiver in sure comes EXXXX has last continuing CMS we ASP. think health the serve thinking a we're to category so impact lymphedema on

the on think from we see flip could emerge. I side opportunities certainly that tailwinds

the that demonstrate products, things policy some in some expansion improvement. there's think only we if XXXX the in we I think have reception for introduced if more sales in and can new of we So get productivity, of to continue to traction, mind I some a XXXX, those but our bit for payer not opportunities, always

of So are kind those thinking. framed bookends our of the that some

Adam Maeder

if And potential chain? was impact then did revenue That's result a of housekeeping, housekeeping I appreciate really supply to kind But color your then any so quantify AffloVest, impact from the there just but there. wondering guess and It another helpful, question any I'll down supply can did on step ask just nice you quarter, chain? QX you one I see sequentially, from followup. Dan.

the just for the then And lymphedema us the commercial organization help of through think on kind followup, side.

number this business with forward? I heads. Is think of may XXX for Thanks just the said productivity there right so taking be drive for increased in you about much to And exited talk XXXX? the kind the that levers question. going you

Daniel Reuvers

Sure.

into lingered So a supply constraints that's on QX. AffloVest, we the yes, have bit of chain did still

the again, way mentioned gross even margin. that we impact by on I some those. of managed through But expect that think Brent kind our think spot I of we've

with result we a QX, naturally growth It's lumpier overall. that still our saw that lymphedema in headwind to think those in we of but always XX% I a expect less XXXX. going solid business a to I than little think direct a So bit related be

second finished with I where I we want to and like head intended it the we Adam, count, perhaps on deeper that feel to If as spot a is on see through pretty least growth to and continue that, first much think to we we we had expansion relates think pretty as but historical that certainly that seen good potentially as which the the yes going in ramp half. street target in XXX, productivity in we some is in into XXX think spot is think bit not sales the half the we're the good deeper certainly half the up be. the the be far staff a And a through we we've headcount years, at for into year. us first

Adam Maeder

Thanks again.

Operator

Thank you.

comes question Margaret proceed line with Blair. question. with Please William next Our Kaczor of your from

Margaret Kaczor

contemplated those impact, at what XXXX? in are was drive that bit or this again, that you're everyone. was taking any maybe mentioned just maybe to fourth the retroactivity little what assuming versus in we're what And questions. then terms further I like the of go in of then quarter. of wanted morning see did you Thanks your little a you assuming, we of patients macro basically just to the can kind comments Adam guidance? being what in just touching to seeing for able guidance And the good in, know reopening, potential help for VA since Hey, a And results saw sales lymphedema. on also that point in

Daniel Reuvers

at take let shot Yes, those. a me

pleased a we we I per were on the think rep saw QX rep really productivity a with from productivity headcount.

is it's step know, co-pays reminding dynamic see always kind You a different year have mostly a QX basis, the worth just always we a on in that been up. of earlier addressed with broad

hopeful quarter demonstrate to of expanded see that of one our there. standpoint. that's can We're it's the but expansion in continue a we bit a our we an of best productivity XXXX, kind So from always productivity that always reasons

manner VA. From if centers, some an in behave I anecdotal the one seen it's of did that, victory return some but to to such early inconsistent the think VA, declare question, a seen you've old little you've there. They adage, the we seem one to VA or see if VA

return We haven't anecdotal centers, heard to broad about it VA certainly helpful. an was basis a on but the

if we're think to becomes So see little a get we a I going XXXX. into and that that to trend monitor deeper as continue

think, in And yes I impact it that have seen the that on macro do But we voice do some also to know XXXX. think of of we co-pays question, for much face relates us in the created headwinds I haven't the how as the of an things of and caution, was in caution we think therapies. their some see voice adoption bit change as established guidance. that to have that on ability probably patient of a progresses I their a with our year we If advance posture, in

Margaret Kaczor

Okay. wanted only adjusted the walk terms expenses EBITDA in through year, this to And then impressive I operating going up. expected of improvement

think single I I those line. top of heard digits versus kind the guidance on the

range? And of then the would operating are high well? low of kind pushing as How levers? exchange for hard should think Thanks. we and about what the how flow you end guess cash I to year get the So you free the

Brent Moen

Hey, Margaret, it's Oh, yes. No. questions. Brent. Good

and look calls, has if serve. expense focus at previous think not call, is but cost this profile, on mentioned kind we So the as certainly probably Dan our and the I on to certainly of operating

growth. much, how it got how expensive we've So and how that profitable bring patient serve is to delivering to in do down? dedicated cost focus actually so XXXX And a we

turnover the and of provides leverage force the our about both or his headcount extent mentioned productivity at previous we and certainly there. in least that things to one in normalize sales Dan reduce can was Adam terms in of upside certainly So, to the answer

legal be moderated in So had from and in a we is XXXX. same then GAAP on top going won't have of the a to that, and the bit perspective category that G&A recurring we reimbursement as XXXX, expense

of all contributions to certainly are in XXXX. margin improvement things So, EBITDA positive overall those

Margaret Kaczor

free flow? the then cash And

Brent Moen

Oh, yes, right. free cash flow,

cash, short million million. So we of of year finished $XX at just the $XX

to generate XXXX, AffloVest, we've we've earnout significant the particularly a $X We've look commitments continues that tune an of We've debt AffloVest got a service provided got got minor focus flow, increase on. we've of the to but got pretty we'll They we albeit amount that remainder about $XX cash into drive of CapEx so got include As some some got to obligations, out there. million. the million in XXXX to revenue. commitment we've that in

make we All this to cash the that we one believe Margaret, is mind, the well. keep $XX of adjusted of those the in at our and have, million the future generate of but got to even we enough that commitments support things, as if for midpoint, we've growth EBITDA, if organization that, continue to necessary we thing certainly investments

Margaret Kaczor

guys. Great, thank you,

Brent Moen

bet. You

Operator

Thank you.

next question of comes with BTIG. question. Our proceed Zimmerman line Ryan with from the Please your

Ryan Zimmerman

and I next guidance long-term of Good questions. working Thanks on this retirement. a there over CAGR company years with I've it year the a a through don't math, year, do do that good XX% like I we the come appreciate end the you and years. the you're a over taking putting type to looks know I XX%, Dan, you your in out if this about on if the might others. but Brent congrats retirement, the want few Brady Tom like for Congrats ask back morning. is got

XXXX as to and how kind we about Just of your so that get CAGR think to the and kind forth? expectations, cadence out help understand of us of

Brent Moen

we XXXX That's give, And front point. why did early, and think to investor's XX those We're a out, we double-digit let we XXXX the on there Yes, environment, first future be like. look we've think put from we of reason emerged I all, numbers be was, side I trying numbers. bit of I the the other we'll I to continues -- we'd But interest kind to And think the as we if found XXXX not post-COVID to reason going growth a ourselves XXXX as delighted. there's take what's step that us. standpoint in while think break at today guidance clearly in does today, the the of XXXX was, there's we what the we out the that were question think point from put out been this established We're back, consistent wanted guidance. the give horizon. make an we of me an

when cash hope an think the for of XXXX the part we generation earn a piece, walked kind million of beyond to important is become to establish out kind that generator well. think cash we To then that we contemplate point, us. by think XXXX. tried We expanded through cash the healthy cash to the but important people tune Brent's we that's to the XX as an of profile, to express an free and and payments flow I EBITDA XXXX, opportunity needs is XXXX get establish and And we flow adjusted he of that really one profile

Ryan Zimmerman

bit to thunder kind Okay. little a updates. That's the years a of helpful. but few you want And thinking standpoint? from expand next you robust then, the where just more you very at, don't steady I Maybe a steal hinted stream what of and of on Dan, getting kind go can the pipeline new and here, over you're product

Daniel Reuvers

I certainly to patient introduce a want of We line more to consumer-like making important an as can going in the XXXX on product journey. continue specifically Sure. for in to experience AffloVest. and that us. the first development add we're extension one Yes, as to a continues sure that make that becomes we increasingly sure leader ourselves demonstrate new be half, just part

We we'll first on the have accommodate, in be a that of couldn't the that introducing size and half. patients gap larger some we

refresh We're feature also device in going our with enhancements. year of the first half some to entree the

going in mentioned or be to patients. XXX serve is earlier, important us, entry I space we all As competing to for the the pump level believe

to Ryan, we're we're the ComfortEase portfolio, our looking upper garments. so extremity And So, half of forward the going we're not in space. introducing to, to the second in that then neglect balance going

new and patients to the are to with solution. survivors, are think the chest. cancer that arm invite space with breast is cancer neck oncology Those an typically can head help oncology that that a devices we neck, and opportunity treat the That the us go really good head or into going survivors survivors and revisit

serve, can a there's of those order. in That's new self-serve a couldn't Kylee their over now physicians. long patient or allows that training they enabled to of something the to we with them stats the get have can then track Kylee to their some areas some assistance, our very series today course when reduce And drops It we'll cost not and of ago. then allowed sharing which have enables year.

second get features as the outcome looking be to They'll half, to to kind forward be to In able able some on will possible. additional make encouragement best the prompts Patients measurements. we're track Kylee. reminders and they of sure have

to order cost some serve. engagement, comes to processing And back again which

you the likely And daily in like term the we will suggest which some I consumer experience themselves those to treating things, So some continue I'll then longer therapy can windows. expect just the and those outer a that, in have focus things XXXX. think on are demonstrate of

Ryan Zimmerman

and again, color great all appreciate the end I to the solid, year. congrats

Daniel Reuvers

Ryan. Thanks

Brent Moen

Thanks Ryan.

Operator

Our from Oppenheimer with of Instructions] [Operator Suraj with line question. you. Kalia comes your and question Please Company. proceed next Thank

Suraj Kalia

you me Good Brent, hear morning, Dan, can right? all

Daniel Reuvers

can. morning, We Suraj. Good

Suraj Kalia

next with let the it's echo in you pleasure success Brent, wish foremost, years the me you and a endeavor. sentiments. working through and all your been First the

So Dan, the Dan, maybe, can you at look many sort the are, also past? many when talked say how a currently “Tenured”, which the you reps, few have jump number usually have, to would is questions in. at million in we say least say Brent would from of million, side, let's my target You productivity? annual you'll what X know, how of X.X tenured

Brent Moen

our to can led turnover I'll the can force saw think in XXXX. Brent. back, we some we it's XXXX, of back XXXX. we've good back exited we where I normal to think rep Suraj, in things of believe and category we sales get Yes, shot that success sustain our being as in then a and the half we to than larger seen Dan growth able take But, in. in I communicated Throughout chime XXXX sales

average the outsized So basis, XXXX. our it to in range, in terms XX% on turnover was an of turnover, we expected be roughly it and

in we But imagine to going talk continue we're to become good that XXXX. of started about So benefit the so are into show the will that to -- reps half certainly and point, the provide but that number you productive to progress. latter ability of XXXX much at itself can little talk a

Suraj Kalia

them. couple one hop One Brent, in the Fair of back Dan, for enough. ask queue. for I'll you, And of last I'll both and questions,

from you'll first then I if Brent, color component the I'm more forgive growth, of some guide, specifically it, commercial me and interested the my in there? functionality? just impact guide? terms ComfortEase FY it give looking purely and again. in in of give was presumably terms become So you it right? perspective, ASPs additional of the i.e. Gentlemen, future, Also, the it's terms nature. more for improving assistive in and the you could maybe Kylee, step of with others taking the know It's but what I'm I congrats a it, overall and gathering XXXX of And to lymphedema missed passive at great engineering for compliance if Brent up in a thank you data Could question in

Brent Moen

that. Thanks, Suraj. I appreciate

So a commercial. color I'll provide bit on of little

course expectations we the I think in terms of Suraj, your of year. with expect be we by you, honest just payer first commercial? question was over And forecast should what from I'll don't the

a patient equally. and Commercial making necessary all Medicare those patient or sure patients. at them a are, VA Our that provide we a focus therapies is identifying patient, the we of And can whether look or to it's patients

to relative that. much to commercial provide color relative don't we is So where expectation the

Daniel Reuvers

Suraj, it you, payer on the the, in and and think Medicare which mix to just good it's prescriber particularly have add about I I to source. I Yes, a focusing think that we more did to relates recognized that less a a suspect as quarter about QX,

call entire So including the the need we which of point patients. that continued those important has be us, one serves fact to an solutions have trunk, the bilateral vascular to

have some just has and going difficult. to making has dismissive they older may an to of overlooked. some of considered or of open it be prescribers apply prescribers patient consider thinking been too And I easier to was have think the the that ComfortEase otherwise I eyes it gotten started addition patients to perhaps. And zippers perhaps may They think

one to that I in gave a opportunity were to I Cmn have think the and was of chance typically think on bit other us with with we and them revisit prescribers the those go anytime reflective good QX. process it's both this an a and in elimination a engage opportunity

your a one think on good And question's Kylee. I

personal office most So in One mind the can most being nor way schedule we done that's lot way not a the operate. have order, the two doing to to that know order process, on the basis our and to in a continue manage things those it Kylee my telephone. cost serve, in been manual our outreach historically very a with their training, track of people of businesses XXXX reduce in And all efficient able different has is identities. all

vehicle cost I think a continue to serve. help that So Kylee will is reduce to

I compliance the best what side, flip the which identity other is described, think the exactly outcome. patient ensure On component increase the of the its that to ability you and is also has therapeutic to

been think consistent haven't share doing help on being I when and in handheld both as celebrating can to their their they've able relates are well. encouraging So I it they progress them components the with physician their had reminders to when that or as about prompts their encouraging mention therapy

Operator

Thank you.

at seeing Thank for today. does currently That your conclude questions are remaining you no this We time. our conference participation.

your disconnect now may lines. You

Tactile Systems Technology (TCMD) 21 Feb 232022 Q4 Earnings call transcript