Mimedx Group, Inc (NASDAQ:MDXG)

Second Quarter 2012 Results

• The Company recorded record revenue of $4.9 million for the second quarter of 2012, a 153% or $3.0 million increase over second quarter of 2011 revenue of $1.9 million, and a 32% increase over first quarter of 2012 revenue of $3.7 million.
• The Net Loss for the quarter was $744,000 or $0.01 per diluted common share, a $1.8 million improvement as compared to the Net Loss of $2.5 million, or $0.03 per diluted common share, recorded for the quarter ended June 30, 2011.
• For the 6th consecutive quarter, the Company reported improved gross margins. The Company's second quarter 2012 gross margins of 77% is a 21% improvement over second quarter 2011 gross margins of 56%, and this milestone is a 3% improvement over the Company's first quarter of 2012 gross margins of 74%. 

Management Commentary on Second Quarter Results
Parker H. "Pete" Petit, Chairman and CEO stated, "Following our first quarter milestone of achieving positive adjusted EBITDA for the first time, we are very pleased that we almost tripled that metric for the second quarter as a result of continued strong revenue growth and improving gross margins.  Our gross profit margins increased another 3% to 77%, which is approaching our goal of achieving 80% gross profit margins.  We increased spending on clinical trials during the quarter, and we will continue to focus heavily on gathering significant amounts of clinical data on our AmnioFix® and EpiFix® allografts.  This is the third consecutive quarter in which we have achieved our revenue goals, and we expect to continue that performance through the end of the year."

"I extend my congratulations to our management team on what I consider to be an excellent quarter.  Managing this level of revenue growth is always a challenge; however, we have made a few very timely additions to our management team with some key executives that came from our former organizations.  We feel strongly that these new executives will complement the talents of our existing management team and enable us to smoothly sustain these levels of growth."

"We had a solid quarter of orders for both of our amniotic tissue allografts, AmnioFix® and EpiFix®," commented Bill Taylor, President and COO. "We have focused on our placenta recovery network and Purion® Processing operations to ensure that the increasing number of orders for AmnioFix® and EpiFix® can consistently be filled to serve the growing demand.  We began the year with just under 50 employees, and as of today, we have expanded our work force to over 100 employees. This growth has been primarily in our tissue processing operations, tissue donation operations and additional sales and marketing associates to serve the expanding demand from physicians for our AmnioFix® and EpiFix® offerings."

As of March 31, 2012, the Company had approximately $3,021,000 of cash and cash equivalents. The Company reported total current assets of approximately $7,048,000 and current liabilities payable in cash of approximately $3,611,000 after adjusting for the short term earn-out liability payable in MiMedx common stock in the second quarter of 2012. The Company believes that its anticipated cash from operations and existing cash and cash equivalents will enable the Company to meet its operational liquidity needs, fund its planned investing activities and pay its debt when due for the next twelve months.