Tactile Systems Tech CFO Departs, Q1 Revenue Up 10%

TL;DR

CFO out, Q1 revenue hit $65.1M (+10% YoY). Interim CFO appointed.

AI Summary

Tactile Systems Technology, Inc. announced on April 23, 2024, the departure of Chief Financial Officer, James E. Culbert, effective April 22, 2024. The company also announced the appointment of Robert J. Weninger as interim CFO. Additionally, the company reported its first quarter 2024 financial results, showing total revenue of $65.1 million, a 10% increase year-over-year.

Why It Matters

The departure of a CFO can signal internal changes or strategic shifts, while the revenue growth indicates the company's continued market performance.

Risk Assessment

Risk Level: medium — CFO departure and appointment of an interim CFO can introduce uncertainty regarding financial strategy and reporting.

Key Numbers

• $65.1M — Q1 2024 Revenue (Represents a 10% increase compared to the prior year period.)
• 10% — Year-over-year Revenue Growth (Indicates positive sales momentum for Tactile Systems Technology.)

Key Players & Entities

• Tactile Systems Technology, Inc. (company) — Registrant
• James E. Culbert (person) — Departing Chief Financial Officer
• April 23, 2024 (date) — Announcement Date
• April 22, 2024 (date) — Effective Date of CFO Departure
• Robert J. Weninger (person) — Interim Chief Financial Officer
• $65.1 million (dollar_amount) — First Quarter 2024 Total Revenue
• 10% (percentage) — Year-over-year revenue increase

FAQ

Key Financial Figures

• $0.001 — registered Common Stock, Par Value $0.001 Per Share TCMD The Nasdaq Stock Marke
• $650,000 — lows: An initial annual base salary of $650,000 per year. Ms. Dodd will be eligible t
• $875,000 — ed stock units ("RSUs") with a value of $875,000, which RSUs will vest in thirds over th
• $850,000 — ce stock units ("PSUs") with a value of $850,000, which PSUs will be earned and vested o
• $525,000 — rs will be paid an annualized salary of $525,000, subject to applicable withholdings, an

Filing Documents

• tm2412326d1_8k.htm (8-K) — 45KB
• tm2412326d1_ex10-1.htm (EX-10.1) — 10KB
• tm2412326d1_ex10-2.htm (EX-10.2) — 81KB
• tm2412326d1_ex10-4.htm (EX-10.4) — 18KB
• tm2412326d1_ex99-1.htm (EX-99.1) — 15KB
• tm2412326d1_ex10-1img001.jpg (GRAPHIC) — 11KB
• tm2412326d1_ex10-1img002.jpg (GRAPHIC) — 21KB
• tm2412326d1_ex10-4img001.jpg (GRAPHIC) — 19KB
• tm2412326d1_ex10-4img002.jpg (GRAPHIC) — 13KB
• 0001104659-24-050589.txt ( ) — 465KB
• tcmd-20240423.xsd (EX-101.SCH) — 3KB
• tcmd-20240423_lab.xml (EX-101.LAB) — 33KB
• tcmd-20240423_pre.xml (EX-101.PRE) — 22KB
• tm2412326d1_8k_htm.xml (XML) — 4KB

02. Results of Operations and Financial

Item 2.02. Results of Operations and Financial Condition. On April 23, 2024, Tactile Systems Technology, Inc. (the "Company," "we," "us" or "our") i ssued a press release disclosing its preliminary estimated revenue results for the fiscal quarter ended March 31, 2024. A copy of the press release is attached hereto as Exhibit 99.1. In accordance with General Instruction B.2 of Form 8-K, the information in this Item 2.02, including Exhibit 99.1, shall not be deemed to be "filed" for purposes of Section 18 of the Securities Exchange Act of 1934 or otherwise subject to the liability of that section, and shall not be incorporated by reference into any registration statement or other document filed under the Securities Act of 1933 or the Securities Exchange Act of 1934, except as shall be expressly set forth by specific reference in that filing.

02. Departure

Item 5.02. Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers. On April 23, 2024, the Company announced that Daniel L. Reuvers has informed the Company's Board of Directors of his decision to retire as Chief Executive Officer, effective as of June 30, 2024, and that the Board of Directors has appointed Sheri L. Dodd as the Company's Chief Executive Officer, effective July 1, 2024 (the "Effective Date"). Ms. Dodd Ms. Dodd has been a member of the Company's Board of Directors since January 1, 2021, and will remain on the Board following the Effective Date, assuming the Company's stockholders re-elect her as a director at the 2024 Annual Meeting of Stockholders to be held on May 8, 2024. Ms. Dodd is no longer a member of any of the committees of the Board, and William W. Burke has taken her place as a member of the C ompliance and Reimbursement Committee. Ms. Dodd, age 58, most recently served as President of Medtronic Canada at Medtronic, plc. Since joining Medtronic in March 2010, Ms. Dodd served as Vice President and General Manager of Medtronic Care Management Services, Vice President and General Manager of Non-intensive Diabetes Therapies and Vice President for Global health economics, reimbursement & policy and global clinical research across the Medtronic cardiovascular portfolio. From November 1997 until March 2010, Ms. Dodd held various positions in the pharma and medical devices divisions with Johnson & Johnson, most recently as vice president of health economics and reimbursement for Ethicon, Inc. Ms. Dodd also served as an outcomes researcher with Orthopedic Surgeons, plc from January 1995 until November 1997. From May 1988 until September 1993, Ms. Dodd served as a project coordinator with the World Health Organization. There are no arrangements or understandings between Ms. Dodd and any other persons pursuant to which she was appointed our Chief Execut

01. Regulation

Item 7.01. Regulation FD Disclosure. On April 23, 2024, the Company issued a press release related to the transition discussed in Item 5.02 above. A copy of this press release is furnished as Exhibit 99.1 to this Current Report on Form 8-K. The information in Exhibit 99.1 shall not be deemed to be "filed" for purposes of Section 18 of the Securities Exchange Act of 1934 or otherwise subject to the liability of that section, and shall not be incorporated by reference into any registration statement or other document filed under the Securities Act of 1933 or the Securities Exchange Act of 1934, except as shall be expressly set forth by specific reference in that filing.

01. Financial Statements and Exhibits

Item 9.01. Financial Statements and Exhibits. (d) Exhibits EXHIBIT INDEX Exhibit No. Description 10.1 Offer Letter between Sheri L. Dodd and Tactile Systems Technology, Inc. dated April 23, 2024 10.2 Form of Confidentiality, Assignment of Intellectual Property and Restrictive Covenants Agreement 10.3 Tactile Systems Technology, Inc. Executive Employee Severance Plan (incorporated herein by reference to Exhibit 10.2 to the Company's Quarterly Report on Form 10-Q filed November 5, 2018) 10.4 Transition Letter Agreement between Daniel L. Reuvers and Tactile Systems Technology, Inc. dated April 23, 2024 99.1 Press Release dated April 23, 2024 104 Cover Page Interactive Data File (embedded within the Inline XBRL document)

SIGNATURES

SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. TACTILE SYSTEMS TECHNOLOGY, INC. Date: April 23, 2024 By: /s/ Elaine M. Birkemeyer Elaine M. Birkemeyer Chief Financial Officer

View Full Filing

View this 8-K filing on SEC EDGAR