MiMedx Group, Inc. (NASDAQ:MDXG) Q4 2014 Earnings Conference Call - Final Transcript
Feb 26, 2015 • 10:30 am ET
Good day, ladies and gentlemen. And welcome to the MiMedx Group Q4 2014 Earnings Call. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session and instructions will follow at that time. (Operator Instructions) As a reminder, this call is being recorded.
I would now like to introduce your host for today's conference, Mr. Thornton Kuntz, Vice President, Administration. Sir, you may begin.
Thank you, operator and good morning everyone. (Forward-Looking Cautionary Statements) With that, I'll turn the call over to Pete Petit, MiMedx's Chairman and CEO.
Thank you, Thornton and good morning. And thank you for joining us.
As usual, I have with me Bill Taylor, our President and Chief Operating Officer; and Mike Senken, our Chief Financial Officer. Certain other corporate executives are also on the call, including Thornton Kuntz, you just heard from our Senior Vice President, Administration.
I'm going to keep my comments very short this morning. I believe that our 2014 year and our fourth quarter had been reasonably vetted already. We have already reported that our revenues were $118.2 million in the press release just prior to the JPMorgan meeting. We discussed numerous aspects of our business on our October 12th Analyst Meeting in New York; eight members of the management team spoken, other members were there to answer questions. I think we highlighted our strategic initiatives and our outlook for 2015 quite adequately at that meeting. As a matter of fact if you would still like to hear and view the presentation from the Analyst Meeting, they are available on our website.
Frankly, very little has changed from what we presented in October. Of course, you now know we finished the year by exceeding our revenue estimates. This time last year, we saw a temporary dip in our stock price because there were concerns that some of our new competitors would immediately take market share from us at the Department of Veterans Affairs or VA. The focus was on the VA because there was not that long arduous road required for reimbursement coverage. However, as you have seen in our press release, our VA revenues were actually up 18% year-over-year and 24% in the fourth quarter over fourth quarter of 2013. Therefore, I don't think those concerns year ago were realistic.
Today, we have similar concerns that have developed around the fact that our EpiFix allografts for wound care will not have pass-through status going from 2015 forward. As we've previously stated, we've been planning for this eventually already for almost a year. We've developed numerous other graft sizes that are under the bundled rate, which also further minimizes wastage. In addition, we've produced some innovative new forms for our sheet allografts, which are also under the bundle. Therefore, we think we've accomplished all the planning necessary to protect our market by minimizing the grafts that will not be covered under the bundle going forward.
Now, Bill Taylor is going to remind you again about what a