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MiMedx Announces Record Second Quarter Results
Date:7/28/2014

regulatory purposes.

Selling, general and administrative ("SG&A") expenses for the second quarter of 2014 were $21.2 million,  a $10.3 million increase over second quarter of 2013 SG&A expenses of $10.9 million, and an increase of $5.3 million over first quarter of 2014 SG&A expenses of $15.9 million.  Increases in SG&A were due to the continuation of the buildup of the Company's direct sales force in the government accounts and commercial accounts sales channels.  The full quarterly run-rate of the significant expansion of the Company's sales force that occurred throughout the first quarter was recognized in second quarter of 2014 SG&A expenses resulting in the large sequential quarterly increase in SG&A expenses.  Also impacting the sequential and prior year SG&A increases were the addition of key  resources in support of its reimbursement and regulatory activities.

Use of Non-GAAP Financial Measures
Management has disclosed adjusted financial measurements in this press announcement that present financial information that is not in accordance with generally accepted accounting principles ("GAAP").  These measurements are not a substitute for GAAP measurements, although Company management uses these measurements as aids in monitoring the Company's on-going financial performance from quarter-to-quarter and year-to-year on a regular basis and for benchmarking against other medical technology companies.  Adjusted EBITDA* is earnings before financing expense, interest, taxes, depreciation, amortization, and share-based compensation.  For a reconciliation of this non-GAAP financial measure to the most directly comparable financial measure, see accompanying table to this release.  Adjusted financial measures used by the Company may be calculated differently from, and therefore may not be comparable to, similarly titled measures used by other companies.  Investors should consi
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SOURCE MiMedx Group, Inc.
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