MiMedx Group, Inc. (OTCBB: MDXG), an integrated developer, manufacturer and marketer of patent protected biomaterial-based products and bioimplants processed from human amniotic membrane, announced today its results for the three months ended March 31, 2011.
Revenue for the three months ended March 31, 2011, was approximately $1,044,000, as compared to revenue of $114,900 recorded for the three months ended March 31, 2010. The Company recorded a net loss of $3,348,000 or $.05 per diluted common share for the first quarter compared to a net loss of $3,142,000 million or $.05 per diluted common share in 2010, an increase of approximately $206,000. Included in the results is approximately $236,000 of one-time acquisition related costs for legal, accounting and audit services. Earnings before interest, taxes, depreciation, amortization and share based compensation (Adjusted EBITDA) for the first quarter of 2011 were a loss of approximately $2,318,000 as compared to a loss of $2,072,000 in the first quarter of 2010. Included in Adjusted EBITDA, were one-time acquisition costs and costs related to investments in animal studies, which are expected to decline later in the year.
Management Commentary
The Company reported that its increase in revenue as compared to 2010 was primarily due to sales from its new amniotic membrane biomaterial platform. MiMedx acquired this third technology platform through the Surgical Biologics acquisition which closed on January 5, 2011.
Parker H. Petit, Chairman and CEO, said "We built good revenue momentum in the first quarter from Surgical Biologics' existing customers and new customers from the MiMedx distribution channels. Revenue exceeded $1,000,000 for the first quarter and our orders for the month of April will approach $500,000. This demonstrates very nice momentum for the second quarter."
Petit added "As you will recall, we recently announced the nation-wide launch of EpiFix™, our amniotic tissue specifically processed to offer a wide variety of wound healing and wound care options. We believe wound care represents the greatest revenue opportunity for MiMedx among all of our products and tissues. We expect to generate revenue from our EpiFix™ wound care tissue in the second quarter. In addition, we plan to launch our amniotic tissue solution for certain pain management problems in June."
"During the quarter, our product gross margins were in line with management expectations and are expected to increase significantly as revenue increases and fixed manufacturing overhead, including quality assurance and facilities, is absorbed by increased production rates", said Bill Taylor, President and COO. "We continue to make significant investments in animal studies. We incurred approximately $222,000 in expenses during the quarter to support regulatory requirements related primarily to the CollaFix™ family of products as well as to support marketing initiatives that were launched at the American Academy of Orthopaedic Surgeons trade show in February."
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