MiMedx 2017 Guidance Forecasts Revenue Growth In Excess Of 21% And Operating Earnings Growth In Excess Of 90%

MARIETTA, Ga., Dec. 16, 2016 /PRNewswire/ -- MiMedx Group, Inc. (NASDAQ: MDXG), the leading regenerative medicine company utilizing human amniotic tissue and patent-protected processes to develop and market advanced products and therapies for the Wound Care, Surgical, Orthopedic, Spine, Sports Medicine, Ophthalmic, and Dental sectors of healthcare, announced today its outlook for 2017.

The Company is reporting its forecast and expectations for full year 2017, and reiterating its previously published guidance for full year 2016 and the fourth quarter of 2016.

Full Year 2017 Guidance Highlights

The Company's full year 2017 expectations include:

• 2017 revenue guidance in the range of $302 to $307 million
• Gross profit margins for 2017 expected to be in the range of 86% to 88%
• 2017 Operating Earnings forecasted to grow by 90% or greater
• GAAP EPS for 2017 projected to be in the range of $0.18 to $0.20
• Adjusted EPS* for 2017 projected to be in the range of $0.31 to $0.33
• 2017 GAAP Net Earnings expected to grow in excess of 95%
• 2017 Adjusted EBITDA* expected to be in the range of 21% to 23% of revenue

Guidance Explanations

In 2016, the Company started reporting Adjusted EPS*, which removes certain noncash charges and adjusts for other items affecting comparability in the Company's reported GAAP Earning Per Share.  MiMedx will continue the reporting of Adjusted EPS* in 2017.  The Company will also continue to distinguish its revenue in two categories: (1) Wound Care and (2) Surgical, Sports Medicine and Orthopedics ("SSO"), which also includes Original Equipment Manufacturer ("OEM") applications.

Guidance Commentary

Parker H. "Pete" Petit, Chairman and CEO, stated, "As usual, we are attempting to be conservative in our 2017 guidance.  While we continue to expect strong revenue growth resulting from various initiatives we have undertaken this year, we believe that our decision to guide conservatively is a prudent one. The revenue trend we have produced in the last three quarters of this year gives us optimism about 2017 and beyond. Our revenue growth has been particularly strong in the fourth quarter. Also, we are anticipating increased growth from AmnioFill™ and OrthoFlo Lyophilized, the two new product lines we launched during the third quarter of this year."

Bill Taylor, President and COO, said, "Our commercial accounts led our 2016 Wound Care revenue growth, and we expect another strong performance from this core sales vertical in 2017. In fact, our product lines showed a lot of maturation and produced solid growth during 2016. We credit this progress to our focus on territory management and detailed territory planning. We also gained expanded efficiency during the year through the implementation of our improved Sales Management System ("SMS"). These infrastructure investments are producing substantial productivity returns, and we expect them to continue in 2017 and beyond."

Taylor continued, "In 2017, we will continue to make investments in our international activities, and we expect to see growth in foreign markets during the year. We have dedicated considerable effort this year in establishing regulatory pathways and reimbursement methodology in certain foreign markets, and we believe those initiatives will translate well in our 2017 international growth."

Petit added, "Obviously, with 90% growth in our operating earnings forecast, we are gaining leverage from our aggressive investments we made in 2016. This growth will be achieved even factoring in our continued investments in clinical and scientific studies and another year of significant sales force expansion. The number of studies that will be ongoing and under management at any point in time during 2017 will continue to be substantial. We have a well-developed expansion strategy for all components of our sales and marketing efforts. Across all sales verticals, we plan to add approximately 65 sales professionals to the organization during 2017. As in previous years, we could make strategic modifications to our sales expansion plans to take advantage of market opportunities. With our projected Adjusted EBITDA* in the range of 21% to 23% of revenue, we also expect to build a significant cash position during the year."

Fourth Quarter and Full Year 2016 Outlook

MiMedx reiterated its fourth quarter and full year 2016 guidance that was previously communicated by the Company in its Earnings Release of October 27, 2016. That guidance included:

• Fourth quarter of 2016 revenue expected to be in the range of $69.4 to $72.9 million
• Full Year 2016 revenue forecasted to be in the range of $244.5 to $248 million
• Full Year 2016 GAAP Net Income per Share expected to be in the range of $0.09 to $0.11
• Full Year 2016 Adjusted Diluted Net Income Per Share* expected to be in the range of $0.21 to $0.23

Use of Non-GAAP Financial Measures

*Management has disclosed adjusted financial measurements in this press announcement that present financial information that is not in accordance with generally accepted accounting principles ("GAAP").  These measurements are not a substitute for GAAP measurements, although Company management uses these measurements as aids in monitoring the Company's on-going financial performance from quarter-to-quarter and year-to-year on a regular basis and for benchmarking against other medical technology companies.  For a reconciliation of these non-GAAP financial measures to the most directly comparable financial measures, see the accompanying tables to this release.  Non-GAAP Adjusted financial measures used by the Company may be calculated differently from, and therefore may not be comparable to, similarly titled measures used by other companies.  Investors should consider Non-GAAP adjusted measures in addition to, and not as a substitute for, or superior to, financial performance measures prepared in accordance with GAAP.

Share Repurchase Program

The Company also announced the decision of its Board of Directors to authorize an increase in and extension of the Company's Share Repurchase Program. Today's action gives the Company approximately $10 million remaining in the Share Repurchase Program that commenced in May, 2014, and extends the term of the program until December 31, 2017.

Announcement of First Quarter of 2017 Guidance

The Company plans to announce its guidance for the first quarter of 2017 on Monday, January 9, 2017.

2017 Outlook Conference Call

MiMedx will host a live broadcast of its full year 2017 Outlook conference call on Monday, December 19, 2016 at 2:00 p.m. EST.  A listen-only simulcast of the MiMedx conference call will be available online at the Company's website at www.mimedx.com.  A 30-day online replay will be available approximately one hour following the conclusion of the live broadcast. The replay can also be found on the Company's website at www.mimedx.com.

About MiMedx

MiMedx® is an integrated developer, processor and marketer of patent protected and proprietary regenerative biomaterial products and bioimplants processed from human amniotic membrane and other human birth tissues, such as amniotic fluid, umbilical cord and placental collagen, and human skin and bone.  "Innovations in Regenerative Biomaterials" is the framework behind our mission to give physicians products and tissues to help the body heal itself.  We process the human amniotic membrane utilizing our proprietary PURION® Process, to produce a safe and effective implant. MiMedx proprietary processing methodology employs aseptic processing techniques in addition to terminal sterilization.  MiMedx is the leading supplier of amniotic tissue, having supplied over 700,000 allografts to date for application in the Wound Care, Burn, Surgical, Orthopedic, Spine, Sports Medicine, Ophthalmic and Dental sectors of healthcare.

Safe Harbor Statement

This press release includes statements that look forward in time or that express management's beliefs, expectations or hopes.  Such statements are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995.  These statements include, but are not limited to, statements related to the Company's expected full year 2016, a full-year 2017 and fourth quarter of 2016 financial performance, that the Company is attempting to be conservative in its 2017 guidance and that such a decision is a prudent one, the revenue trend from the last three quarters of this year gives the Company optimism about 2017 and beyond, that the Company anticipates increased growth from AmnioFill and OrthoFlo Lyophilized, that the Company expects strong performance in 2017 from the Wound care sales vertical, that infrastructure investments that have been made are expected to continue to product substantial productivity returns in 2017 and beyond, that the Company expects to see growth in foreign markets during the year, that the ongoing international regulatory and reimbursement work is expected to translate well into the 2017 international growth, that growth will be achieved even with continued investments in clinical and scientific studies and sales force expansion, and that the Company expects to build a significant cash position during the year. These statements are based on current information and belief, and are not guarantees of future performance.  Among the risks and uncertainties that could cause actual results to differ materially from those indicated by such forward-looking statements include that the Company may not achieve its financial expectations in 2016 and 2017, that the Company's revenue may not grow as expected or may decline, that the Company's guidance is not in fact conservative, that new products are not accepted by the medical community as anticipated or otherwise do not produce the expected  growth, that productivity returns expected from infrastructure investments do not materialize in the timeframe anticipated or do not materialize at all, that the ongoing international regulatory and reimbursement work does not translate into sales growth in the time expected or at all, that the continued investments in clinical and scientific studies and the sales force are greater than anticipated or otherwise impact the expected growth negatively, that the Company is unable to build its cash position as anticipated , and the risk factors detailed from time to time in the Company's periodic Securities and Exchange Commission filings, including, without limitation, its 10-K filing for the fiscal year ended December 31, 2015, and its most recent Form 10Q filing.  By making these forward-looking statements, the Company does not undertake to update them in any manner except as may be required by the Company's disclosure obligations in filings it makes with the Securities and Exchange Commission under the federal securities laws.

SOURCE MiMedx Group, Inc.

Related Links

http://www.mimedx.com