Investor Presentation January 2025 Disclaimer & Cautionary Statements This presentation includes forward-looking statements. Forward-looking statements are subject to risks and uncertainties, and the Company cautions investors against placing undue reliance on such statements. Actual results may differ materially from those set forth in the forward-looking statements. Such forward-looking statements include statements regarding: Additional forward-looking statements may be identified by words such as "belie ...

Financial Performance - MiMedx reported quarterly earnings of $0.07 per share, matching the Zacks Consensus Estimate, and an increase from $0.04 per share a year ago [1] - The company posted revenues of $92.91 million for the quarter ended December 2024, exceeding the Zacks Consensus Estimate by 6.79%, compared to $86.83 million in the same quarter last year [2] - Over the last four quarters, MiMedx has surpassed consensus EPS estimates two times and topped consensus revenue estimates three times [2] Stock Performance - MiMedx shares have declined approximately 17.3% since the beginning of the year, while the S&P 500 has gained 1.3% [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the market in the near future [6] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.05 on revenues of $86 million, and for the current fiscal year, it is $0.32 on revenues of $375 million [7] - The trend of estimate revisions for MiMedx is mixed, which could change following the recent earnings report [6] Industry Context - MiMedx operates within the Medical - Biomedical and Genetics industry, which is currently ranked in the top 24% of over 250 Zacks industries [8] - Research indicates that the top 50% of Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1 [8]

Financial Performance - Fourth quarter net sales increased by 7% year-over-year to $93 million, while full year net sales grew by 9% to $349 million[3]. - Fourth quarter GAAP net income was $7 million, with earnings per share of $0.05; full year net income totaled $42 million[11]. - Adjusted EBITDA for the fourth quarter was $20 million, representing 21% of net sales, with an expected Adjusted EBITDA margin above 20% for 2025[2][13]. - Gross profit for the fourth quarter was $76 million, with a gross margin of 82%, slightly down from 84% in the prior year[5]. - Operating income decreased to $11,053 million in Q4 2024 from $15,489 million in Q4 2023, a decline of 28.5%[23]. - Net income from continuing operations for Q4 2024 was $7,437 million, significantly down from $51,287 million in Q4 2023, a decrease of 86.5%[23]. - Adjusted EBITDA for Q4 2024 was $19,768 million, down from $21,217 million in Q4 2023, representing a decline of 6.8%[32]. - The company reported a basic net income per common share of $0.05 for Q4 2024, down from $0.40 in Q4 2023[23]. - Net income for Q4 2024 was $7,437,000, a decrease from $53,476,000 in Q4 2023, while adjusted net income increased to $11,038,000 from $10,827,000[36]. Expenses - Selling, general and administrative expenses for the fourth quarter rose to $61 million, a 13% increase from $54 million in the same period last year[7]. - Research and development expenses for the fourth quarter were $4 million, up from $2 million in the prior year, driven by ongoing product development[9]. - Research and development expenses increased to $3,571 million in Q4 2024 from $2,434 million in Q4 2023, a rise of 46.8%[23]. - The company reported a significant reduction in investigation and related expenses, resulting in a benefit of $9 million for the full year 2024[10]. - Selling and marketing expenses peaked in Q4 2024 at $47,638,000, showing a consistent upward trend throughout the year[44]. - Total selling, general and administrative expenses in Q4 2024 reached $61,041,000, representing a 12.5% increase from Q3 2024[44]. - Total selling, general and administrative expenses for Q1 2024 were $55,129,000, an increase of 5.4% compared to Q1 2023's $52,250,000[44]. Cash Flow and Liquidity - Cash and cash equivalents increased to $104 million as of December 31, 2024, compared to $82 million a year earlier[12]. - Net cash flows provided by operating activities for Q4 2024 were $18,782 million, an increase from $10,257 million in Q4 2023[25]. - Total net cash flows provided by operating activities for the year ended December 31, 2024, were $66,198,000, compared to $26,775,000 for the year ended December 31, 2023[42]. - Free cash flow for Q4 2024 was $18,519,000, significantly higher than $9,830,000 in Q4 2023, indicating improved cash generation capabilities[42]. Future Outlook - The company anticipates high single-digit net sales growth for 2025, with long-term expectations of low double-digit growth[13]. - The company is focused on developing innovative products and strengthening customer relationships to drive future growth[2]. - The company plans to continue focusing on strategic legal and regulatory expenses, which amounted to $2,806,000 for the year ended December 31, 2023[37]. Revenue and Sales Growth - Net sales for Q4 2024 reached $92,907 million, a 7.4% increase from $86,832 million in Q4 2023[23]. - The total revenue for the year ended December 31, 2024, was $291,803,000, an increase from $266,843,000 in 2023[38]. - The surgical product category saw net sales of $31,550,000 in Q4 2024, compared to $30,852,000 in Q4 2023, indicating growth in this segment[43]. Impairments and Losses - The company reported an impairment of intangible assets of $446,000 for the year ended December 31, 2024, compared to no impairment in 2023[36]. - The company experienced a loss on extinguishment of debt amounting to $1,401,000 for the year ended December 31, 2024, compared to no such loss in 2023[37]. Taxation - The long-term effective tax rate was normalized at 25% for both 2024 and 2023[31].

Core Insights - MiMedx Group, Inc. reported a 7% year-over-year growth in net sales for Q4 2024, totaling $93 million, and a 9% increase for the full year 2024, reaching $349 million [3][10] - The company achieved a GAAP net income of $7 million for Q4 2024, with earnings per share of $0.05, and a full-year net income of $42 million [10][23] - Adjusted EBITDA for Q4 2024 was $20 million, representing 21% of net sales, with an adjusted gross margin of 84% [4][5][29] Financial Performance - Q4 2024 net sales increased to $93 million from $87 million in Q4 2023, while full-year sales rose from $321 million in 2023 to $349 million in 2024 [3] - Gross profit for Q4 2024 was $76 million, up from $73 million in the prior year, with a gross margin of 82% compared to 84% in Q4 2023 [4] - For the full year 2024, gross profit was $289 million, reflecting a $22 million increase from the previous year, maintaining a gross margin of 83% [5] Operating Expenses - SG&A expenses for Q4 2024 were $61 million, an increase from $54 million in Q4 2023, driven by higher compensation and legal costs [6] - Full-year SG&A expenses totaled $225 million, up from $211 million in 2023, marking a 7% increase [7] - R&D expenses for Q4 2024 were $4 million, compared to $2 million in Q4 2023, while full-year R&D expenses remained flat at $12 million [8] Cash Position - As of December 31, 2024, the company had $104 million in cash and cash equivalents, an increase from $82 million a year earlier [11] - The cash position, net of debt, was $86 million, reflecting a sequential increase of $16 million [11] Future Outlook - MiMedx expects net sales growth of at least high single-digits for 2025, with an Adjusted EBITDA margin above 20% [12] - The company aims for low double-digit annual net sales growth in the long term, maintaining an Adjusted EBITDA margin above 20% [12] Company Strategy - The CEO emphasized the focus on innovative product development and strengthening customer relationships to drive growth in the Wound and Surgical businesses [2] - The company is actively engaging with stakeholders to address Medicare reimbursement challenges and promote evidence-based product innovation [2]

Business Growth and Risks - The company is evaluating opportunities for acquisitions, divestitures, and other commercial arrangements to grow its business, which may involve risks that could adversely affect its financial condition [162]. - The company may incur unknown liabilities from acquisitions, which could adversely affect its financial condition if anticipated benefits are not realized [163]. - The company is pursuing international expansion, including in Japan, which presents unique risks and costs associated with managing operations outside the U.S. [167]. - The company may fail to obtain necessary foreign regulatory approvals, which could adversely affect its ability to market products internationally [207]. Regulatory Compliance and Legal Risks - The FDA has determined that certain products may require pre-market clearance or approval, which could delay marketing and adversely affect revenues [170]. - The company has filed a lawsuit regarding the FDA's classification of AXIOFILL, which could impact its ability to market this product and affect financial results [172]. - Compliance with FDA regulations is costly, and failure to comply could result in significant penalties and disruption of business activities [168]. - The company faces risks related to promoting products for unapproved uses, which could lead to legal actions and significant fines [186]. - The process of obtaining regulatory approvals is time-consuming and expensive, potentially delaying product launches and impacting revenues [178]. - The company is subject to various federal and state healthcare fraud and abuse laws, with potential penalties for violations that could materially affect its financial condition [189]. - The FCA allows for treble damages and mandatory penalties of between $13,946 and $27,894 per false claim for violations assessed after February 12, 2024 [192]. Financial Performance and Market Dynamics - Medicare expenditures on skin substitute products increased from approximately $0.5 billion in 2019 to over $4 billion in 2023, with spending exceeding $1 billion per month recently [201]. - The proposed changes by CMS to classify skin substitutes as 'wound care management products' could impact reimbursement dynamics starting January 1, 2024 [202]. - In August 2023, three MACs issued updated LCDs for skin substitute products, which were later withdrawn, but revised LCDs are scheduled to take effect on April 13, 2025 [203]. - Changes in Medicare reimbursement policies could significantly impact the utilization of the company's products [204]. - The company faces substantial uncertainty regarding the impact of the PPACA on business operations, including potential decreases in revenues and reimbursements [206]. Financial Health and Capital Structure - As of December 2024, the company had aggregate borrowings of $19.0 million under its Term Loan Facility [219]. - The interest rate on the Term Loan Facility is currently 6.7% as of December 31, 2024, based on the 1-month SOFR [307]. - A 100-basis point change in SOFR would result in an annualized change in interest expense of $0.2 million [307]. - The company’s financial health may be adversely affected by its indebtedness and restrictive covenants in the Citizens Credit Agreement [220]. - Fluctuations in revenue could lead to volatility in the company's stock price, impacting its ability to raise capital [226]. - The company’s quarterly operating results have varied substantially in the past and may continue to do so in the future [224]. Shareholder Rights and Corporate Governance - Florida law and organizational provisions may discourage potential acquirers, negatively impacting share price and management removal efforts [228]. - Certain transactions with shareholders owning 10% or more require a two-thirds affirmative vote from other shareholders unless specific conditions are met [228]. - Voting rights for shareholders at ownership levels of one-fifth, one-third, and majority are restricted unless authorized by the Board or a majority of other shareholders [228]. - The Board has exclusive rights to fill vacancies and determine the number of directors [228]. - Shareholders can only remove directors "for cause" and require a super-majority vote [228]. Intellectual Property and Management Challenges - The company may face significant costs and management distraction due to potential infringement claims related to intellectual property rights [215]. - The company’s ability to protect its intellectual property rights is uncertain, which could harm its competitive position [212]. - The company may incur substantial costs if it needs to enforce its intellectual property rights against competitors [213]. - The company’s internal control over financial reporting must be maintained to avoid material misstatements in its consolidated financial statements [218]. Dividend Policy - The company does not intend to pay cash dividends on its Common Stock in the foreseeable future [227]. Interest Rate Risk - The company does not hedge against interest rate risk, exposing it to potential financial volatility [307].

Company Announcement - MiMedx Group, Inc. will report its operating and financial results for Q4 and the full year ended December 31, 2024 on February 26, 2025 after market close [1] - A webcast and conference call will be hosted by the senior management team at 4:30 p.m. Eastern Time on the same day to review the results [1] Conference Call Details - The conference call can be accessed by U.S. investors at 877-407-6184 and international investors at 201-389-0877, with Conference ID 13751444 [2] - A replay of the webcast will be available for approximately 30 days on the company's website following the event [2] Company Overview - MiMedx is a pioneer in healing solutions, focusing on chronic and hard-to-heal wounds, with a commitment to innovation in wound care, burn, and surgical sectors [3] - The company's vision is to be the leading global provider of healing solutions, aiming to restore quality of life through relentless innovation [3]

Core Insights - The article emphasizes the importance of timing and sustainability in short-term investing, highlighting that successful entry into trends is crucial for profitability [1][2]. Group 1: Stock Performance - MiMedx (MDXG) has shown a solid price increase of 60.7% over the past 12 weeks, indicating strong investor interest [4]. - The stock has also maintained a price increase of 3.1% over the last four weeks, suggesting that the upward trend is still intact [5]. - MDXG is currently trading at 86.9% of its 52-week high-low range, indicating a potential breakout [6]. Group 2: Fundamental Strength - MDXG holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimate revisions and EPS surprises [6]. - The stock has an Average Broker Recommendation of 1 (Strong Buy), reflecting high optimism from the brokerage community regarding its near-term price performance [7]. Group 3: Investment Strategy - The article suggests using the "Recent Price Strength" screen to identify stocks like MDXG that are on an uptrend supported by strong fundamentals [3][8]. - It also mentions the importance of backtesting stock-picking strategies to ensure they have produced profitable results in the past [9].

Core Viewpoint - MiMedx Group, Inc. has filed a lawsuit against Surgenex, LLC for patent infringement related to placental allograft products, seeking both injunctive relief and monetary damages [1][2]. Company Overview - MiMedx is a pioneer in the development of placental allografts, holding an extensive portfolio of over 70 patents, including some of the earliest intellectual property in this category [2]. - The company focuses on providing solutions for chronic and hard-to-heal wounds, with a vision to be the leading global provider of healing solutions through innovation [3]. Legal Actions - This lawsuit marks the second legal action taken by MiMedx against Surgenex, following earlier litigation concerning corporate raiding and unfair competitive practices [1]. - The company anticipates uncovering additional infringing products as it continues its investigation into the market [2].

Core Viewpoint - The article emphasizes the importance of timing and sustainability in stock trends for successful short-term investing, highlighting the need for strong fundamentals and positive earnings revisions to maintain momentum [1][2]. Group 1: Stock Performance - MiMedx (MDXG) has shown a solid price increase of 50.4% over the past 12 weeks, indicating investor confidence in its potential upside [4]. - The stock has also increased by 33.5% over the last four weeks, suggesting that the upward trend is still intact [5]. - MDXG is currently trading at 90.7% of its 52-week high-low range, indicating a potential breakout [6]. Group 2: Fundamental Strength - MDXG holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimate revisions and EPS surprises [6]. - The stock has an Average Broker Recommendation of 1 (Strong Buy), reflecting high optimism from the brokerage community regarding its near-term price performance [7]. Group 3: Investment Strategy - The "Recent Price Strength" screen is a useful tool for identifying stocks like MDXG that have the fundamental strength to sustain their recent uptrends [3]. - The article suggests that there are several other stocks passing through this screen, providing additional investment opportunities [8].

Core Viewpoint - MiMedx (MDXG) has shown a significant price increase of 61.5% over the past four weeks, with a mean price target of $12.67 indicating a potential upside of 37.1% from the current price of $9.24 [1] Price Targets - The average price target consists of six estimates ranging from a low of $11 to a high of $16, with a standard deviation of $1.75, suggesting a variability in analyst estimates [2] - The lowest estimate indicates a potential increase of 19.1%, while the highest suggests a 73.2% upside [2] - A low standard deviation indicates a high degree of agreement among analysts regarding the stock's price movement [7] Analyst Sentiment - Analysts have shown increasing optimism about MDXG's earnings prospects, as evidenced by a strong consensus in revising EPS estimates higher [9] - Over the last 30 days, two estimates have been revised upward, leading to a 13.5% increase in the Zacks Consensus Estimate [10] - MDXG holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimates [11] Caution on Price Targets - Solely relying on consensus price targets for investment decisions may not be prudent, as empirical research indicates that such targets often mislead investors [5][8] - Analysts may set overly optimistic price targets due to business incentives, which can inflate expectations [6]