MiMedx Group, Inc. (NASDAQ:MDXG) Q3 2017 Earnings Conference Call - Final Transcript

Oct 27, 2017 • 10:30 am ET


MiMedx Group, Inc. (NASDAQ:MDXG) Q3 2017 Earnings Conference Call - Final Transcript


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Good day, ladies and gentlemen, and welcome to the Q3 2017 MiMedx Group Inc's Earnings Conference 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).

I would now like to introduce your host for today's conference, Mr. Thornton Kuntz, SVP of Administration. Sir, you may begin.

Thornton Kuntz

Thank you, operator, and good morning everyone. (Forward-looking Cautionary Statements) During the call, we will discuss non-GAAP financial measures when talking about the Company's performance. You can find the reconciliation of these measures to GAAP financial measures in our press release and on our website. Finally, MiMedx is not responsible for the accuracy of our earnings teleconference transcripts provided by third parties. The only authorized live and archived webcast are located on our website.

With that, I will turn the call over to MiMedx Chairman and CEO, Pete Petit.

Parker Petit

Good morning. Thanks for joining us for our third quarter conference call. I have with me today Mike Senken, our CFO, Chris Cashman, our EVP, Chief Commercialization Officer and Debbie Dean also an EVP. Bill Taylor, our present COO, is on a well-deserved vacation overseas. He is not going to be able to participate on the call. As well as Chris Cashman will discuss some of Bill's operating matters.

Let me begin by making some general comments about our quarterly performance and tracking our performance this year. Shareholders seldom use the word exceptional, I will generally use the word good to describe the quarter. I would rather believe our performance is now becoming exceptional in terms of all the operating parameters. However, I'm certain someone will initially criticize the fact that our operating profit as a percent of revenue should grow faster than 88% considering our revenue growth.

Let me remind you that I've stated on numerous occasions that in our current stage of growth, the company still has opportunities for very high returns on our investments. In other words, we have opportunities in terms of our sales force, new product and market development, clinical studies and software management system updates that give us very high returns on our invested dollars. These investments today can pay, as you've seen demonstrated, very good returns in the future in our view.

Please give us the benefit of the doubt, when you see us not escalating operating profits as rapidly as you think we should. We see these investing opportunities, which we review monthly as we analyze our private loan statements, we will be proactive. This is one of the major reasons we've had our successes that we've had over the past few years with our growth.

Please recall that in early 2016, we had to take operating profits down as we brought three new product launch and a production way ahead of schedule. That has paid huge dividends for us in 2017. And it's investments like those that allow us to distance ourselves from our competition and continue to build