Mimedx Group (MDXG) has reported 59.34 percent plunge in profit for the year ended Dec. 31, 2016. The company has earned $11.97 million, or $0.11 a share in the year, compared with $29.45 million, or $0.26 a share for the last year. On an adjusted basis, the company has earned $24.37 million, or $0.22 a share for the year.
Revenue during the year surged 30.82 percent to $245.02 million from $187.30 million in the previous year.
Operating income for the year was $18.45 million, compared with $24.36 million in the previous year.
Adjusted EBITDA for the year stood at $44.40 million.
Parker H. "Pete" Petit, chairman and chief executive officer stated, "The final revenue is $1.8 million lower than we pre-released on January 9, 2017. This lower revenue is the result of the decision that we made to take what we believe is a very conservative approach related to the transition of certain government accounts from a distributor’s Federal Supply Schedule FSS contract to our own FSS contract. As previously reported, the Company has been transitioning since 2015 from sales to government accounts through our relationship with AvKare to sales directly to government accounts on our own FSS. In connection with that transition, we have an obligation to repurchase AvKare’s remaining inventory, if any, within 90 days following the expiration of the agreement on June 30, 2017. At that time, the Company expects AvKare’s inventory to be minimal based on AvKare’s obligation to use commercially reasonable efforts to achieve target sales levels over the remaining term of the agreement."
For the first-quarter, Mimedx Group projects revenue to be in the range of $69.50 million to $72.50 million.
For financial year 2017, Mimedx Group projects revenue to be in the range of $302 million to $307 million. The company forecasts diluted earnings per share to be in the range of $0.18 to $0.20, the company forecasts diluted earnings per share to be in the range of $0.31 to $0.33 on adjusted basis.
Operating cash flow improves significantlyMimedx Group has generated cash of $25.83 million from operating activities during the year, up 37.33 percent or $7.02 million, when compared with the last year. The company has spent $11.74 million cash to meet investing activities during the year as against cash outgo of $0.68 million in the last year.
The company has spent $8.18 million cash to carry out financing activities during the year as against cash outgo of $36.22 million in the last year period.
Cash and cash equivalents stood at $34.39 million as on Dec. 31, 2016, up 20.73 percent or $5.90 million from $28.49 million on Dec. 31, 2015.
Working capital increases
Mimedx Group has recorded an increase in the working capital over the last year. It stood at $75.81 million as at Dec. 31, 2016, up 9.02 percent or $6.27 million from $69.53 million on Dec. 31, 2015. Current ratio was at 2.49 as on Dec. 31, 2016, down from 3.60 on Dec. 31, 2015
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