MiMedx Group, Inc

Good afternoon, and thank you for standing by. Welcome to the MiMedx fourth quarter and full year 2024 operating financial results conference call. At this time, all participants are in a listen-only mode. A question and answer session will follow the formal presentation. As a reminder, this conference is being recorded. I would now like to turn the call over to your host, Mr. Matt Notarani, Head of Investor Relations for MiMedx. Thank you. You may begin.

Thank you, Operator, and good afternoon, everyone. Welcome to the MiMedx fourth quarter and full year 2024 Operating and Financial Results Conference Call. With me on today's call are Chief Executive Officer Joe Capper and Chief Financial Officer Doug Rice. As part of today's webcast, we are simultaneously displaying slides that you can follow. You can access the slides from the Investor Relations website at MiMedx.com. Joe will kick us off with some opening remarks and a summary of our operating highlights, and Doug will provide a review of our financial results for the quarter, and then Joe will conclude with some additional updates, including a discussion of our financial goals. We will then be available for your questions. Before we begin, I would like to remind you that our comments today will include forward-looking statements, including statements regarding future sales, operating results, and cash balance growth, future margins and expenses, our product portfolios, and expected market sizes for our products. These expectations are subject to risks and uncertainties, and actual results may differ materially from those anticipated due to many factors, including competition, access to customers, the reimbursement environment, unforeseen circumstances, and delays. Additional factors that could impact outcomes and our results include those described in the risk factors section of our annual report on Form 10-K, and our quarterly reports on Form 10-Q. Also, our comments today include non-GAAP financial measures, and we provide a reconciliation to the most comparable GAAP measures in our press release, which is available on our website at www.mymedics.com. With that, I'm now pleased to turn the call over to Joe Capper. Joe?

Thanks, Matt, and good afternoon, everyone. Thank you all for joining us on today's call. I am very pleased to report that we had an excellent 2024, culminating with another strong performance in Q4. Full-year revenue grew by 9%. And as you will hear today, our momentum remains strong, and we expect 2025 to be another highly successful year for Mimetics. During Q4, we once again achieved solid year-over-year top-line growth, maintained an excellent operating margin, and continued generate strong cash flow. We accomplished all of this in spite of challenges due to the much discussed Medicare reimbursement issue and the associated above average Salesforce turnover we experienced in select markets. I firmly believe our strong results would have been noticeably higher but for these two issues. So let's take a few minutes to review the highlights of the fourth quarter and And then I'll update you on the progress we are making on our key priorities. Q4 net sales grew year-over-year by approximately 7 percent to $93 million, another excellent growth quarter. Full-year sales closed at $349 million, up 9 percent over the prior year. Gross profit margin was 82 percent in the quarter. Adjusted EBITDA was $20 million, or 21 percent of sales in the fourth quarter. and $76 million, or 22% of sales for the full year, representing an increase of $18 million over the prior year. We ended the year with $104 million in cash, an increase of $16 million during the quarter. We continued with the market release of Heliogen, our first xenograft, which is targeted in the surgical market. We began enrollment for a randomized control trial for EpiEffect and we continued our strong advocacy for regulatory and reimbursement reform. Turning now to our strategic priorities. On prior calls, we consistently discussed our market approach in terms of three primary areas of focus. Since this strategy has delivered excellent results, we will continue to allocate our time and resources around these three primary objectives. I would add an additional strategic priority to the list for this year, which is to capitalize on the opportunity presented through implementation of the pending LCDs. Make no mistake, we are poised to do just that and believe no other company in our space is as well positioned to grow share as MiMedx is based on the proposed guidelines. As a reminder, our top strategic priority is to continue to innovate and diversify our product portfolio. As discussed, The company has built a strong competitive advantage around our ability to develop and commercialize unique product configurations designed to meet explicit customer needs. We have introduced multiple new products in the last two years alone. The first three received widespread market acceptance, and Heliogen, which is an early market release, is starting to gain traction. AmnioEffect continues to do well, growing at close to 20% year-over-year in the surgical market. and Epi Effect, which we launched in late 2023, continue to show significant strength in the private office. Both products have received excellent physician feedback, as they have become integral parts of their quick care protocols. Additionally, we continue to make progress building our EpiFix business in Japan, with sales nearly tripling in 2024. We now have most of the key opinion leaders and top decile customers routinely ordering and using our product. Building on the success of these product introductions, we expect a similar performance as we move toward full market release of Heliogen, our first xenograft. We're making good progress working through the mechanics of the early launch phase and expect Heliogen to be a meaningful contributor in 2025. Our second priority is to develop and deploy programs intended to expand our footprint in the surgical market. As we've discussed, this objective calls for a significant commitment to the production of real-world clinical evidence and scientific research. We now have multiple studies in flight, which are designed to support the use of our placental-derived allografts in a variety of surgical procedures. On previous calls, we highlighted publications which demonstrated the incredible healing properties of our proprietary technology. This clinical research and general awareness pieces have appeared in publications such as Nature and the New York Times. The potential for reduced scarring or adhesion formation through the use of mimetics proprietary technology, as demonstrated in this research, could enable accelerated and improved quality of healing, leading to enhanced surgical and economic outcomes. Again, coupling these potential benefits with the tens of millions of surgeries performed in the US each year we believe the market opportunity could be massive over time. We firmly believe we are still in the very early market development phase for placental-derived products. In addition to research and awareness, it is critical that we continue to expand our product and service offering in order to build a stronger presence in the surgical environment. Our third initiative is to introduce programs designed to enhance customer intimacy. As a reminder, primary focus of this initiative is to develop programs which improve relationships and ultimately lower our customer turnover. To strengthen the connection with our customers, we have undertaken a variety of initiatives aimed at institutionalizing customer-centric behavior. We continue to experience excellent adoption of MiMedx Connect, our new customer portal. We have now over 1,000 customers using the platform to perform functions such as insurance, verification, and product ordering. We are actively developing additional features designed to improve workflow and strengthen the bond between Limetics and our customers. We believe our commitment to this approach will lead to enhanced customer relationships, improved net promoter scores, higher margins, and ultimately an increase in the average lifetime value of a customer. Now let me turn the call over to Doug for a more detailed review of our financial results. Doug?