MiMedx Releases Preliminary 2017 Revenue of $324.5 Million representing a 32% increase over 2016
Fourth Quarter 2017 Revenue Highlights
- Q4 2017 revenue of
$90.9 Million grew 30% over Q4 2016 revenue and exceeded upper end of guidance by nearly$3 million - Excluding divested subsidiary, Stability Biologics, Q4 2017 revenue grew by 34% over Q4 2016
- Q4 2017 Wound Care revenue grew 27% over Q4 2016
- Surgical, Sports Medicine and Orthopedics (SSO) revenue for Q4 2017 grew 40% over Q4 2016
Full-Year 2017 Revenue Highlights
- Full-year 2017 revenue of
$324.5 million increased 32% over full year 2016 and exceeded upper end of guidance - Excluding divested subsidiary, Stability Biologics, full-year 2017 revenue grew by 36% over 2016
- Full-year 2017 Wound Care revenue of
$238.3 million increased by 30% over 2016 - Full-year 2017 SSO revenue of
$86.2 million grew 41% over 2016
The Company recorded preliminary record revenue for the year ended
Management Commentary
Parker H. "Pete" Petit, Chairman and CEO stated, "The fourth quarter of 2017 makes 28 consecutive quarters of sequential revenue growth and 27 of 28 quarters of meeting or exceeding our revenue guidance. At the end of November, we expected we would exceed our revenue forecast for the quarter, as we indicated in our press release on
"Both of our sales verticals had strong performances during the fourth quarter. Wound Care performed extremely well in the fourth quarter with 27% growth over the prior year's fourth quarter, and SSO revenue grew significantly over 2016 with 40% quarter over quarter growth. Fourth quarter revenue from our direct sales force represented approximately 95% of total revenue, and revenue from distributors and Original Equipment Manufacturers (OEMs) accounted for less than 5% of total fourth quarter revenue," Taylor added.
Speaking to the Company's cash performance, Petit noted, "The fourth quarter was another quarter of very strong cash flow from operations. We are very pleased with the sustained progress we have made in this important measure of our operating effectiveness."
"We anticipate 2018 to be another year of highly predictable quarter over quarter revenue growth, continued strengthening of our balance sheet and cash position, and significant gains in profitability. Shareholders should be reminded that the 2017 numbers reported in this press release are preliminary numbers based on management's best estimates, and we look forward to our planned press release on
First Quarter and Full Year 2018 Guidance Highlights
The Company announced its revenue guidance for the first quarter of 2018 as follows:
- First quarter of 2018 revenue forecasted to be in the range of
$90.5 to $92.0 million
- Revenue estimated between
$383 to $387 million - Gross profit margins expected to be in the range of 89% to 90%
- Operating Income expected to be in the range of 15% to 17%
- GAAP Diluted EPS projected to be in the range of
$0.30 to $0.35 - Adjusted Diluted EPS* projected to be in the range of
$0.45 to $0.50
*Adjusted Diluted Net Income per share consists of GAAP net income excluding: (i) one time acquisition related costs, (ii) amortization of inventory fair value step-up, (iii) amortization of intangible assets, (iv) share-based compensation (v) gain on divestiture and (vi) the normalization of tax expense.
The guidance above does not reflect the impact of changes in the federal tax code. Those changes, if any, will be released with the release of full year operating results.
Share Repurchase Program
The Company provided an update to its Share Repurchase Program that was initiated in
About
MiMedx® is the leading biopharmaceutical company developing and marketing regenerative and therapeutic biologics utilizing human placental tissue allografts with patent-protected processes for multiple sectors of healthcare. "Innovations in Regenerative Medicine" is the framework behind our mission to give physicians products and tissues to help the body heal itself. We process the human placental tissue utilizing our proprietary PURION® Process among other processes, to produce safe and effective allografts.
Safe Harbor Statement
This press release includes forward-looking statements, including statements regarding future levels of revenues, gross profit margin, operating income, GAAP diluted EPS and adjusted diluted EPS; our expectations regarding the timing and amount of additional covered insured lives for EpiFix for VLUs and DFUs; our expectation that Wound Care revenues will grow in 2018 and be aided by additional insured lives, and our expectations regarding continued strengthening of our balance sheet, cash position, and profitability. These statements also may be identified by words such as "believe," "expect," "may," "plan," "potential," "will," "preliminary," and similar expressions, and are based on our current beliefs and expectations. Forward-looking statements are subject to risks and uncertainties, and we caution investors against placing undue reliance on such statements. Actual results may differ from those set forth in the forward-looking statements. Among the risks and uncertainties that could cause actual results to differ materially from those indicated by such forward-looking statements include the risk that we will not achieve forecast revenue, profit margin, operating income, or EPS due to slower growth, higher expenses, or other factors; third-party insurers may choose not to cover, or may be slower to decide to cover, additional insured lives for the use of EpiFix to treat VLUs and DFUs; and that changes to regulation or regulatory interpretations may adversely affect the sale and marketing of our products. For more detailed information on the risks and uncertainties, please review the Risk Factors section of our most recent annual report or quarterly report filed with the
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SOURCE
Investor Contact: COCKRELL GROUP, Rich Cockrell, 877-889-1972, investorrelations@thecockrellgroup.com, cockrellgroup.com; Contact: Michael Senken, Phone: (770) 651-9100