When Will MiMedx Release Its Sales and Earnings?
It has now been more than two years since the company released audited annual sales and earnings figures.
Here’s a quick review of what’s been released so far—and, remember, these sales numbers are supposed to be restated.
2012: $27.1 million
2013: $59.2 million
2014: $118.2 million
2015: $187.3 million
2016: $245.0 million
2017: $324 million (preliminary, announced 12/13/17)
2018: $383 million to $387 million (projected on 12/13/2017)
The feds: what will the VA, DOD, SEC, and Justice Department do?
There’s no way to guess what the impact of the federal probes might be, but here are some possibilities:
The Securities and Exchange Commission (SEC): Its bailiwick is protecting investors from dangerous or illegal financial practices or fraud, by requiring full and accurate financial statement disclosure by companies who’ve sold stock to the investors. If a company is found to have cooked the books, the SEC can levy massive fines, bar individuals from a company or industry, order executives to disgorge stock for the benefit of victimized stockholders, issue injunctions, and issue undertakings—orders directing future conduct, such as forcing a company to hire a compliance consultant. This October 3, 2018 speech by Steven Peiken, the co-director of the Division of Enforcement, discusses the SEC’s favorite options.
The Department of Veterans Affairs (VA) and Department of Defense (DOD): Their investigations could be equally or more painful. In 2015, the last year for which MiMedx provided breakdowns, 26% of its revenue, some $50 million, came from government entities.
“MiMedx’s relationship with government facilities appears now to be in flux. A $2.1 billion VA contract awarded to 21 makers of biologic implants announced in early October didn’t include MiMedx,” said a November 5 Wall Street Journal article.
In addition, current management told us on May 15: “MiMedx has also undertaken a comprehensive review of its historical VA sales and has recorded an obligation of $8 million in connection with a potential issue that it self-disclosed to the VA concerning the eligibility of one of its products for inclusion in the Company’s Federal Supply Schedule contract.”
The VA and DOD can ban a company from future contracts. They can do worse, turning serious cases over to the Justice Department. This page links to details of what Justice has done to violators of VA rules; prison terms and fines up into the tens of millions of dollars are common outcomes.
