Tactile Systems Technology, Inc. (TCMD) Earnings Call Transcript & Summary

Good morning, ladies and gentlemen, and welcome to the virtual 2021 Annual Meeting of Stockholders of Tactile Systems Technology. Please note that today's meeting is being recorded. However, you are not permitted to use any recording device. [Operator Instructions] To begin the meeting, I would now like to introduce Peter Soderberg, Chairman of the Board of Directors of Tactile Systems Technology. Mr. Soderberg, please go ahead.

Thank you, Jennifer. It is my pleasure to welcome all of you to the 2021 Annual Meeting of Stockholders of Tactile Systems Technology. Thank you for joining us today. It's approximately 9:00 a.m. Central time, and in accordance with the Notice of the Meeting, I call this meeting to order and announce that the polls are now open. Let me now introduce to you our Tactile directors, beginning with our 2 newest directors, Sheri Dodd and Deepti Jain, who are joining our stockholders' meeting for the first time. Both Sheri and Deepti bring to our Board current and highly relevant expertise in the digitization and consumerization of health care and new approaches in data-driven disease management. Next, our Chief Executive Officer and Director, Dan Reuvers, who joined us in June 2020. We couldn't be more pleased with Dan's first year of efforts to take this company to the next level of growth and success. And finally, let me acknowledge and thank our other long-serving directors: William Burke, Raymond Huggenberger, Richard Nigon and Kevin Roche. I would also like to introduce the other senior leaders of Tactile Systems Technology who are attending: Brent Moen, our Chief Financial Officer; and Jill Hansen, our Corporate Controller. Joining Brent and Jill is Jonathan Zimmerman, the inspector of election and a partner of Faegre Drinker Biddle & Reath, our legal counsel. He will be tabulating the votes of today's meeting. Also attending today through this webcast is Josh Bushard, a partner with Grant Thornton, our independent auditors. With that, I would like to turn the meeting over to Dan.

Thanks, Peter. Today's procedures are simple and designed to ensure that we have a fair and orderly meeting. We're going to address the procedural matters; and then discuss the election of directors, the appointment of our auditors and the advisory approval of named executive officer compensation; then announce the results of the vote; and finally, conclude the meeting. Most stockholders have already voted by proxy, and the proxy votes have been tallied. You may vote today by pressing the vote button on your screen and following the instructions provided. If you've already voted by proxy, you do not need to vote during the meeting or take any other action at this time. Stockholders may submit questions electronically during the meeting by entering questions in the Q&A field on your screen. Questions received during the meeting will be addressed following the formal portion of the meeting unless they directly relate to the matters to be voted upon. March 22, 2021, was designated as the record date for this meeting. A notice of Internet availability related to the proxy statement was distributed to stockholders of record in advance of the meeting and an affidavit of distribution will be included with the minutes of today's meeting. The holders of at least a majority of the shares of common stock outstanding on the record date and entitled to vote at this meeting are represented here today via webcast or by proxy. Accordingly, a valid quorum is present. I'll now review the matters to be voted on. For the stockholders voting today, please vote now as we'll close the polls immediately after I review the 3 matters up for vote. Again, if you've already previously voted by proxy, you do not need to do anything else at this time. Most stockholders have already voted by proxy, and the proxy votes have been tallied. The first item to be considered is the election of 8 directors, each to serve until the election of directors at the 2022 Annual Meeting of Stockholders. The Board of Directors has nominated me, along with William Burke, Peter Soderberg, Raymond Huggenberger, Sheri Dodd, Deepti Jain, Richard Nigon and Kevin Roche as directors and recommends a vote in favor of electing each of them. The second item is the ratification of the appointment of Grant Thornton as the company's independent auditor for the current fiscal year that ends on December 31, 2021. The Audit Committee of the Board of Directors has appointed Grant Thornton, and the Board recommends a vote in favor of ratifying such an appointment. The third item is an advisory vote on the company's compensation of its named executive officers, often referred to as a say-on-pay vote. Information regarding the company's executive compensation plans and payments are disclosed in detail in the proxy statement for this meeting. The Board recommends a vote to approve the compensation of the named executive officers as disclosed in the proxy statement. The polls are now closed. The inspector of election has advised me that the preliminary tabulation of the votes cast at today's meeting is complete, and I'm pleased to announce the following preliminary results: on item 1, the election of 8 Director nominees has been approved by the requisite vote of the stockholders; on item 2, the ratification of the appointment of Grant Thornton as the company's independent registered public accounting firm for 2021 has also been approved by the requisite vote of the stockholders; and on item 3, on an advisory basis, the stockholders have voted to approve the compensation paid to the named executive officers. The exact vote totals will be certified by the inspector of election and included with the minutes of today's meeting and in a Form 8-K filed with the SEC. Thank you for your participation. And there being no further matters required to come before this annual meeting of stockholders, I declare the formal meeting to be adjourned. And I'd just like to acknowledge that 2020 was a pretty remarkable year. We navigated through COVID while preserving a very strong balance sheet and continued to invest in our growth, positioning Tactile ultimately for recovery as conditions continue to improve in 2021. And with that, I'd also like to thank you for joining our meeting today, and we'll now address any stockholder questions. Where we received similar questions on any such topics, we've grouped them together in an effort to provide one single answer.

There are no questions that have been received.

All right. Thank you, Jonathan, and thank you to our shareholders. We look forward to continuing to help patients with chronic conditions live better at home, and your support enables us to advance that mission. I'd like to thank Peter for his leadership and commitment to the company, to the Board and to me in my first year as Tactile's CEO. And I'd like to now hand the microphone back to Peter for some final remarks.

Thank you, Dan. I am grateful for the opportunity to have served as Chairman of Tactile medical for the past 9 years, from the company's pre-IPO financing, through the successful IPO and continuing as the company has matured and grown sevenfold and transitioned leadership to a new senior executive team ready to take us to new levels of caring for chronic diseases in home-based patients. After a long journey of carrying this Board, I've decided that in the interest of strong corporate governance and consistent with our beliefs that Board leadership should be periodically refreshed, I will be stepping down as our Chair following this meeting. I am pleased to announce that Bill Burke, my Board colleague and successor as Head of the Compensation and Organization Committee, has agreed to serve as our new Chair. I look forward to continuing to serve the stockholders as a member of the Board. We will also be restructuring our committees and their leadership in order to continue to refresh our Board governance. Thank you all for joining us today.