MARIETTA, Ga., Dec. 15, 2014 /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, Spinal, Sports Medicine, Ophthalmic and Dental sectors of healthcare, announced today its updated outlook for 2015.
On October 13, 2014, the Company issued a press release announcing its preliminary expectations for 2015 revenue and operating profit margin, and in its press release of October 30, 2014, the Company reaffirmed that guidance. On December 12, 2014, the MiMedx Board of Directors approved the Company's 2015 Business Plan and budget. This press release provides additional detail and increases the upper end of the Company's previously communicated outlook for full year 2015, and also provides guidance for the first quarter of 2015.
2015 Guidance Highlights
The Company's guidance for the first quarter of 2015 includes:
- First quarter of 2015 revenue estimated to be in the range of $40 million to $41 million.
- Operating profit margin for the first quarter of 2015 forecasted to be in excess of 10%.
The Company's full year 2015 expectations include:
- Full year 2015 revenue guidance in the range of $175 million to $190 million.
- Operating profit margin for full year 2015 expected to be in excess of 15%.
Parker H. "Pete" Petit, Chairman and CEO, stated, "We are pleased to report our expectations for another year of impressive growth. We are raising our earlier forecast for 2015 revenue to range from $175 million to $190 million. The low end of our 2015 expectations represents approximately a 50% increase and the high end of our guidance represents approximately a 64% increase over our forecasted 2014 revenue. We are very pleased with our 12 consecutive quarters of meeting or exceeding our revenue forecasts, and we plan to continue to add additional quarters to that consecutive record next year."
Petit added, "We are fortunate to have the operating leverage that we have created, and we are confident in our full year projection of an operating profit margin in excess of 15%. We will continue our aggressive pace of generating clinical and scientific studies and securing their publication in leading peer-reviewed journals. Our operating leverage should provide the resources to continue to produce on-going improvements in our profitability and strong positive cash flow."
"In 2015, we are again planning for a large expansion of our direct sales force," said Bill Taylor, President and COO. "We expect to finish 2014 with approximately 170 sales professionals in our direct sales force, and our 2015 forecast projects that number to grow to well over 200 by year-end 2015. While much of our sales force expansion during the first three quarters of 2014 was in the Wound Care market, the expansion efforts during the fourth quarter of 2014 were balanced between adding wound care sales professionals and sales professionals with expertise in surgical settings. We have stated previously that it generally takes about six months, depending on the territory, for our new sales professionals to have a meaningful impact on sales results. We expect that a large majority of the new sales professionals that joined us in the second half of the 2014 will influence our growth starting in the first quarter of 2015."
In late November, the latest peer-reviewed clinical study of the Company's allografts was published in the International Wound Journal. This independent study compared the healing effectiveness of chronic lower extremity diabetic ulcers treated with either weekly applications of Apligraf®, EpiFix® or standard wound care with collagen-alginate dressing. The multi-center randomized comparative effectiveness study examined side by side the clinical outcomes, wastage and cost of these two most utilized advanced wound care products. The study showed that diabetic lower extremity ulcers treated with EpiFix® had significantly greater rates of complete healing and more rapid time to healing than wounds treated with Apligraf®. In addition, EpiFix® was found to be extremely more cost effective than Apligraf®. In summary, EpiFix® healed more wounds at a faster rate than Apligraf® at about one fifth the costs.
The Company also followed-up on its discussion during the October 14, 2014 MiMedx Investor Day regarding the potential for international initiatives. The Company reported that it is beginning to focus attention and resources on various opportunities in international markets with the goal of generating some meaningful international revenue in 2016.
About MiMedx
MiMedx® is an integrated developer, processor and marketer of patent protected regenerative biomaterial products and bioimplants processed from human amniotic membrane. "Innovations in Regenerative Biomaterials" is the framework behind our mission to give physicians products and tissues to help the body heal itself. Our biomaterial platform technologies include AmnioFix® and EpiFix®, our tissue technologies processed from human amniotic membrane that is derived from donated placentas. Through our donor program, a mother delivering via full-term Caesarean section birth can elect in advance of delivery to donate the placenta in lieu of having it discarded as medical waste. We process the human amniotic membrane utilizing our proprietary PURION® Process, to produce a safe and effective implant. MiMedx® is the leading supplier of amniotic tissue, having supplied over 300,000 allografts to date for application in the Wound Care, Surgical, 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, the Company's ability to deliver on its commitment to continuing its progress of period-over-period revenue growth and improving profitability, the time it takes for new sales professionals to have a meaningful impact on sales results, whether and when sales professionals hired in the second half of the year will influence the Company's revenue and growth, the expectation that the Company's operating leverage will continue and enable the Company to produce significant profitability gains and positive cash flow, continue its aggressive pace of generating clinical and scientific studies and facilitating their publication in leading peer-reviewed journals, the Company's financial expectations for the first quarter of 2015 and full year 2015, and the potential for meaningful international revenues in 2016. 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's revenue may not grow as expected or may decline, that the Company may not achieve the operating profit margins or cash flows it expects nor sustain its operating leverage, that the newly hired additional sales professionals will not have the expected impact on revenue growth, that the Company may not be able to sustain its anticipated pace of generating and publishing clinical and scientific studies or that the outcomes of such studies will not be as anticipated, that the Company will not achieve its financial expectations in 2015 or 2016, 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, 2013, and the most recent Form 10-Q. 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.
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SOURCE MiMedx Group, Inc.
