MiMedx(MDXG)2025-02-26 21:01Financial 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].