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Mimedx Shareholder Group Calls out Significant Drop in Mimedx’s Profitability since the Original CEO & COO Were Asked to Leave the Company on June 30th, 2018

MARIETTA, Ga.–(BUSINESS WIRE)–$MDXG–Mimedx Shareholder Group issued the following statement to fellow
shareholders of Mimedx Group, Inc. (OTC PINK: MDXG) (‘MiMedx”):

MiMedx Group, Inc. just announced the signing of an agreement for a $75
million line of credit. The documents that the Company had to publish
included for the first time its earnings before interest, taxes,
depreciation and amortization (EBITDA) since the second quarter of 2018.
EBITDA is a measure of company profitability and potential cash flow.

In the Company’s disclosure, the EBITDA for the second quarter of 2018
was $24.8 million. EBITDA has continued to drop each quarter. And, for
the first quarter of 2019, it was down to $7.1 million. When the full
financials are published, we believe you will find that is because of
significant revenue deterioration and exorbitant costs related to legal,
accounting and consulting expenses.

This deterioration in profitability took place in spite of the Board’s
authorizing a 24% cut in the employee base, including sales personnel,
on December 5th, 2018. That decision was supposed to result
in improvements in EBITDA and cash flow. This is another example of
destructive business decisions coming from this Board and the lack of
experienced executive management.

While we are not privy to the exact revenue figures for the second
quarter of 2018, we note that the Company published a press release in
early June of 2018 stating that it expected to exceed the upper end of
the revenue guidance for that quarter. This would have put the revenue
in excess of $98 million. With this $24.8 million EBITDA, that would put
the EBITDA margin at 25.3% of revenues. During that quarter, the
start-up costs associated with the investigation were included.
Therefore, without the investigation activity, the Company’s EBITDA
would have certainly approached 30%. Those are the numbers that previous
management, CEO Petit and COO Taylor, had committed to as an immediate
term objective. This clearly demonstrates what happens when a
fast-growth highly complex biotechnology business enterprise is taken
over by an inexperienced Board, and they delegate to inexperienced
management.

This is the point that our previous press releases have tried to make in
terms of the value of very experienced operating executives on the Board
of Directors as well as managing a Company of this nature. Shareholders
should seriously consider these very important metrics that MiMedx just
published in terms of considering, not only their lack of performance
and destructive decisions related to the progress of the Company, but
also to the experience of persons that will be needed on the management
team and in the Board room.

Vote for the nominees on the WHITE card and the two key
proposals to ensure Board responsiveness to shareholders. If you have
already voted on the blue card, call our proxy solicitor at (877)
972-0090 to understand how to quickly change your vote. We thank you for
your investment and the confidence in MiMedx.

Legend

Parker H. Petit (“Mr. Petit”), David J. Furstenberg, and Shawn P. George
(collectively, the “Nominees” or the “Participants”) have filed a
definitive proxy statement and supplements to the definitive proxy
statement with the Securities and Exchange Commission (the “SEC”), along
with an accompanying WHITE proxy card to be used in connection with the
Participants’ solicitation of proxies from the shareholders of MiMedx
Group, Inc. (the “Company”) for use at the Company’s 2018 annual meeting
of shareholders. All shareholders of the Company are advised to read the
foregoing proxy materials because they contain important information,
including additional information related to the Participants. The
definitive proxy statement and supplements and an accompanying proxy
card will be furnished to some or all of the Company’s shareholders and
are, along with other relevant documents, available at no charge on the
SEC’s website at http://www.sec.gov/ and
at www.MiMedxBoardProxy.com.

Information about the Participants and a description of their direct or
indirect interests by security holdings are contained in the definitive
proxy statement on Schedule 14A filed by Mr. Petit with the SEC on May
28, 2019. This document can be obtained free of charge from the sources
indicated above.

Contacts

Proxy Solicitor:
InvestorCom
John Glenn Grau
Toll-Free:
(877) 972-0090
Banks and Brokers Call Collect: (203) 972-9300
[email protected]

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