MiMedx Announces Third Quarter 2020 Financial Results
MiMedx Group reported third quarter 2020 net sales of $64.3 million, a 28% decrease from $88.9 million in Q3 2019. Adjusted EBITDA reached $6.9 million, or 10.8% of net sales. The company incurred a net loss of $19.4 million, largely attributed to $12.0 million in investigation-related expenses. On a positive note, MiMedx announced its shares were relisted on Nasdaq under ticker MDXG and secured coverage for EpiFix® from the largest U.S. commercial payor, contributing to a planned salesforce expansion.
- Relisted on Nasdaq under ticker MDXG.
- Coverage for EpiFix® secured by the largest U.S. commercial payor.
- Adjusted EBITDA of $6.9 million, representing 10.8% of net sales.
- Net sales decreased by 28% compared to Q3 2019.
- Net loss of $19.4 million, reflecting investigation-related expenses.
- Research and development expenses rose to $3.4 million.
Third Quarter Net Sales of
Common Stock Relisted on The Nasdaq Stock Market Under the Ticker Symbol “MDXG”
Company to Host Conference Call on November 5, 2020 at 8:30 AM ET
MARIETTA, Ga., Nov. 04, 2020 (GLOBE NEWSWIRE) -- MiMedx Group, Inc. (Nasdaq: MDXG) (“MiMedx” or the “Company”), an industry leader in advanced wound care and a therapeutic biologics company, today announced the filing of its third quarter 2020 Form 10-Q for the period ended September 30, 2020.
Timothy R. Wright, MiMedx Chief Executive Officer, commented, “We are pleased to have achieved several key objectives, including a strong rebound in sequential sales growth, the launch of EpiCord® Expandable, and importantly, the relisting of our shares today on Nasdaq. We are investing across Commercial, Research and Development, and Manufacturing, with strategic initiatives designed to achieve profitable growth and expand our core market. Bolstered by the recent addition of coverage for EpiFix® by the largest U.S. Commercial payor, we will be increasing the size of our salesforce and are scaling our field sales territories to ensure we have the right capacity in the right places to capture market growth. We are advancing our promising late-stage Investigational New Drug (IND) clinical trials to address unmet patient needs in large markets, and recently completed enrollment in our Plantar Fasciitis and Knee Osteoarthritis studies. Finally, the buildout of our Current Good Manufacturing Practices (CGMP) facility remains on track, positioning us to benefit from favorable cost and quality controls throughout our entire product portfolio.”
Key Third Quarter 2020 Metrics
- Third quarter net sales of
$64.3 million - Adjusted net sales1, which excludes impacts of the Company’s transition in revenue recognition, of
$63.3 million - Net loss of
$19.4 million , reflecting$12.0 million of investigation, restatement and other related expenses and$8.2 million loss on extinguishment of debt - Adjusted EBITDA2 of
$6.9 million
| Quarter Ended September 30, | Year-to-Date September 30, | ||||||||||||||||||||
| (in thousands) | (in thousands) | ||||||||||||||||||||
| 2020 | 2019 | 2020 | 2019 | ||||||||||||||||||
| Net sales | $ | 64,303 | $ | 88,863 | $ | 179,686 | $ | 222,855 | |||||||||||||
| Net (loss) income | (19,417 | ) | 12,379 | (32,704 | ) | (18,104 | ) | ||||||||||||||
| EBITDA2 | (7,864 | ) | 16,235 | (23,997 | ) | (10,266 | ) | ||||||||||||||
| Adjusted EBITDA2 | 6,939 | 7,586 | 20,294 | 27,988 | |||||||||||||||||
| Net loss per common share - basic | $ | (0.48 | ) | $ | 0.12 | $ | (0.60 | ) | $ | (0.17 | ) | ||||||||||
| Net loss per common share - diluted | $ | (0.48 | ) | $ | 0.11 | $ | (0.60 | ) | $ | (0.17 | ) | ||||||||||
- Adjusted Net Sales is a non-GAAP financial measure. See “Reconciliation of GAAP Net Sales to Adjusted Net Sales and Reconciliation of GAAP Net Income to EBITDA and Adjusted EBITDA” for a reconciliation of Adjusted Net Sales to Net Sales, located in “Selected Unaudited Financial Information” of this release.
- EBITDA and Adjusted EBITDA are non-GAAP financial measures. See “Reconciliation of GAAP Net Sales to Adjusted Net Sales and Reconciliation of GAAP Net Income to EBITDA and Adjusted EBITDA” for a reconciliation of EBITDA and Adjusted EBITDA to Net loss, located in “Selected Unaudited Financial Information” of this release.
Net sales for the third quarter of 2020 were
Adjusted net sales, which excludes impacts of the Company’s transition in revenue recognition and cash collected on the remaining contracts, were
Gross margin in the third quarter of 2020 was
Selling, general and administrative expenses for the third quarter of 2020 were
Investigation, restatement and related expenses for the third quarter of 2020 were
Research and development expenses were
Net loss in the third quarter of 2020 was
Adjusted EBITDA was
As of September 30, 2020, the Company had approximately
Peter M. Carlson, MiMedx Chief Financial Officer, said, “By adapting to the current environment, we continue to manage our costs well and will remain prudent in our spending. Our healthy cash position, supported by
Recent Developments
- In November, announced that the largest U.S. commercial payor will provide coverage for EpiFix in the treatment of diabetic foot ulcers.
- In October, announced relisting on The Nasdaq Stock Market under the ticker symbol “MDXG”.
- In September, concluded enrollment for Phase 2B study of its micronized injectable amniotic tissue product in patients with osteoarthritis of the knee.
- In September, concluded enrollment for Phase 3 study of plantar fasciitis, an inflammation of the fibrous tissue along the bottom of the foot that results in intense pain.
- In September, launched EpiCord Expandable, the first and only expandable allograft derived from the umbilical cord, as the latest advancement to its product portfolio. This new placental tissue allograft provides healthcare professionals an additional option to support the advanced wound care needs of their patients with larger, chronic, and hard-to-heal wounds.
Conference Call and Webcast
MiMedx will host a conference call and webcast to review its third quarter 2020 results on Thursday, November 5, 2020, beginning at 8:30 am, Eastern Time. The call can be accessed using the following information:
Webcast: https://edge.media-server.com/mmc/p/btane6hp
U.S. Investors: 877-359-9508
International Investors: 224-357-2393
Conference ID: 9580567
A replay of the webcast will be available for approximately thirty days on the Company’s website at www.mimedx.com following the conclusion of the webcast.
Important Cautionary Statement
This press release contains forward-looking statements. All statements relating to events or results that may occur in the future are forward-looking statements, including, without limitation, statements regarding future profitable growth, expansion of our core market, advancement of our clinical trials, the buildout of our CGMP facility, potential future cost and quality control benefits, and the anticipated effects of the COVID-19 pandemic. Other forward-looking statements generally can be identified by words such as “expect,” “will,” “intend,” “seek,” “target,” “future,” “plan,” “continue,” “potential,” “possible,” “could,” “would,” “may,” “anticipate,” “to be” and similar expressions. These statements are based on numerous assumptions and involve known and unknown risks, uncertainties and other factors that could significantly affect the Company’s operations and may cause the Company’s actual actions, results, financial condition, performance or achievements to differ materially from those expressed or implied by any such forward-looking statements. Factors that may cause such a difference include, without limitation, those discussed under the heading “Risk Factors” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019 and the Company’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2020.
Unless required by law, the Company does not intend, and undertakes no obligation, to update or publicly release any revision to any forward-looking statements, whether as a result of the receipt of new information, the occurrence of subsequent events, a change in circumstances or otherwise. Each forward-looking statement contained in this release is specifically qualified in its entirety by the aforementioned factors. Readers are advised to carefully read this release in conjunction with the important disclaimers set forth above prior to reaching any conclusions or making any investment decisions and not to place undue reliance on forward-looking statements.
About MiMedx
MiMedx® is an industry leader in advanced wound care and a therapeutic biologics company developing and distributing human placental tissue allografts with patent-protected processes for multiple sectors of healthcare. The Company processes the human placental tissue utilizing its proprietary PURION® process methodology, among other processes, to produce allografts by employing aseptic processing techniques in addition to terminal sterilization. MiMedx has supplied over two million allografts, through both direct and consignment shipments. For additional information, please visit www.mimedx.com.
Contact
Hilary Dixon
Investor Relations & Corporate Communications
770.651.9066
investorrelations@mimedx.com
Selected Unaudited Financial Information
| MiMedx Group, Inc. Condensed Consolidated Balance Sheets | ||||||||||||||||||
| (Unaudited) | ||||||||||||||||||
| (in thousands) | ||||||||||||||||||
| September 30, 2020 | December 31, 2019 | |||||||||||||||||
| ASSETS | ||||||||||||||||||
| Current assets: | ||||||||||||||||||
| Cash and cash equivalents | $ | 109,595 | $ | 69,069 | ||||||||||||||
| Accounts receivable, net | 33,042 | 32,327 | ||||||||||||||||
| Inventory, net | 11,023 | 9,104 | ||||||||||||||||
| Prepaid expenses | 1,492 | 6,669 | ||||||||||||||||
| Income tax receivable | 10,853 | 18 | ||||||||||||||||
| Other current assets | 5,469 | 6,058 | ||||||||||||||||
| Total current assets | 171,474 | 123,245 | ||||||||||||||||
| Property and equipment, net | 10,255 | 12,328 | ||||||||||||||||
| Right of use asset | 4,031 | 3,397 | ||||||||||||||||
| Goodwill | 19,976 | 19,976 | ||||||||||||||||
| Intangible assets, net | 7,168 | 7,777 | ||||||||||||||||
| Other assets | 420 | 443 | ||||||||||||||||
| Total assets | $ | 213,324 | $ | 167,166 | ||||||||||||||
| LIABILITIES, CONVERTIBLE PREFERRED STOCK, AND STOCKHOLDERS' EQUITY | ||||||||||||||||||
| Current liabilities: | ||||||||||||||||||
| Accounts payable | $ | 9,049 | $ | 8,710 | ||||||||||||||
| Accrued compensation | 18,528 | 21,302 | ||||||||||||||||
| Accrued expenses | 28,363 | 32,161 | ||||||||||||||||
| Current portion of long-term debt | — | 3,750 | ||||||||||||||||
| Other current liabilities | 1,357 | 1,399 | ||||||||||||||||
| Total current liabilities | 57,297 | 67,322 | ||||||||||||||||
| Long-term debt, net | 47,627 | 61,906 | ||||||||||||||||
| Other liabilities | 4,422 | 3,540 | ||||||||||||||||
| Total liabilities | $ | 109,346 | 132,768 | |||||||||||||||
| Convertible preferred stock Series B | $ | 91,108 | $ | — | ||||||||||||||
| Stockholders’ equity | ||||||||||||||||||
| Preferred stock Series A | $ | — | $ | — | ||||||||||||||
| Common stock | 113 | 113 | ||||||||||||||||
| Additional paid-in capital | 158,318 | 147,231 | ||||||||||||||||
| Treasury stock | (10,717 | ) | (10,806 | ) | ||||||||||||||
| Accumulated deficit | (134,844 | ) | (102,140 | ) | ||||||||||||||
| Total stockholders' equity | 12,870 | 34,398 | ||||||||||||||||
| Total liabilities, convertible preferred stock, and stockholders' equity | $ | 213,324 | $ | 167,166 | ||||||||||||||
| MiMedx Group, Inc. Condensed Consolidated Statements of Operations | ||||||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||||||
| (in thousands) | ||||||||||||||||||||||||
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||
| 2020 | 2019 | 2020 | 2019 | |||||||||||||||||||||
| Net sales | $ | 64,303 | $ | 88,863 | $ | 179,686 | $ | 222,855 | ||||||||||||||||
| Cost of sales | 10,289 | 13,205 | 28,513 | 30,372 | ||||||||||||||||||||
| Gross profit | 54,014 | 75,658 | 151,173 | 192,483 | ||||||||||||||||||||
| Operating expenses: | ||||||||||||||||||||||||
| Selling, general and administrative | 48,046 | 51,258 | 132,316 | 152,761 | ||||||||||||||||||||
| Investigation, restatement and related | 12,027 | 7,242 | 39,065 | 46,374 | ||||||||||||||||||||
| Research and development | 3,372 | 2,691 | 8,281 | 8,421 | ||||||||||||||||||||
| Amortization of intangible assets | 276 | 269 | 818 | 769 | ||||||||||||||||||||
| Impairment of intangible assets | — | — | — | 446 | ||||||||||||||||||||
| Operating (loss) income | (9,707 | ) | 14,198 | (29,307 | ) |
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FAQ
What are MiMedx's third quarter 2020 net sales?
MiMedx reported net sales of $64.3 million for the third quarter of 2020.
What was MiMedx's adjusted EBITDA for Q3 2020?
MiMedx's adjusted EBITDA for the third quarter of 2020 was $6.9 million.
Why did MiMedx experience a net loss in Q3 2020?
MiMedx experienced a net loss of $19.4 million due to $12.0 million in investigation and related expenses.
What significant event occurred regarding MiMedx's stock in October 2020?
In October 2020, MiMedx's stock was relisted on Nasdaq under the ticker symbol 'MDXG'.
What major announcement did MiMedx make regarding EpiFix?
MiMedx announced that the largest U.S. commercial payor will provide coverage for EpiFix in the treatment of diabetic foot ulcers.
MiMedx Group, Inc
NASDAQ:MDXGMDXG RankingsMDXG Latest NewsMDXG Stock Data
1.37B
143.16M
2.45%
68.18%
2.72%
Biotechnology
Surgical & Medical Instruments & Apparatus
United States of America
MARIETTA
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