Good day, ladies and gentlemen, and welcome to the Second Quarter 2013 MiMedx Group, Inc. Earnings Conference Call. My name is Jackie and I will be your coordinator today. At this time, all participants are in a listen-only mode. Following the prepared remarks, there will be a question-and-answer session. (Operator instructions) I will now like to turn the conference over to Mr. Thornton Kuntz, Vice President of Administration. Please proceed.

Thank you, Jackie, and good morning, everyone. This presentation contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Act of 1934. These statements are based upon current beliefs and expectations of our management and are subject to risks and uncertainties. Actual results may differ materially from those set forth in, contemplated by, or underlying the forward-looking statements based on factors described in this conference call and in our reports filed with the Securities and Exchange Commission, including our Form 10-K for the year ended December 31, 2012 and our most recent 10-Q. We do not undertake to update or revise any forward-looking statement except as maybe required by the company’s disclosure obligations in filings it makes with the Securities and Exchange Commission under federal securities laws. With that, I will turn the call over to Pete Petit, MiMedx’s Chairman and CEO.

Thank you, Thornton. Good morning and welcome to our second quarter conference call. I have with me today Bill Taylor, our President and Chief Operating Officer; and Mike Senken, our Chief Financial Officer; we also have Thornton Kuntz, our Vice President of Administration and Roberta McCaw, our General Counsel. I hope you’ve got a chance to read our press release on the quarter. I think I could classify this as another quarter of really good progress. We’ve had a number of important activities during the quarter, including moving our corporate headquarters into the new building. We will shortly also consolidate our processing facilities in the same building. This required a considerate amount of effort in addition to all the things we manage everyday to maintain our rapid growth rate. We made more progress with reimbursement for allograft, just as the close of the quarter, we added one more Medicare contractor, and we now have a total of six of the Medicare contractors reimbursing for EpiFix wound care allografts. This just leaves three remaining. The robust activity related to our clinical trials continues. We’ve just published the press release on another of our clinical trials on Monday and another press release regarding our first fundamental scientific study this morning. This published clinical trial related to the cross over patients in EpiFix randomized controlled trial and that was released yesterday. Results of our first scientific study have just been released and we’ll discuss this study in more detail in a few minutes. Relative to our financial progress, we maintained a positive EBITDA for the sixth straight quarter. We’ve earned cash during the quarter. We had some significant one-time expenses including those related to our move to the new facilities. During the quarter, Mike Senken, our Chief Financial Officer, put in place a…

Thanks, Pete. Good morning, everyone. As we indicated in our press release, this is our seventh consecutive quarter of meeting or exceeding our revenue guidance. We’re very pleased that we were able to continue such strong revenue growth particularly with our move occurring in the middle of the quarter. I think our team did a great job staying focused in keeping our objectives insight and on target. Regarding the new building move, I’m happy to announce the first part of the move went very well. Attracted with choke construction, we did a wonderful job on the construction in our multitude of change orders. Now all of our corporate accounting finance and R&D, sales, marketing, reimbursement, clinical, legal, HR and IT are located at our new Marietta building. Tissue processing has not yet moved into the building. You may recall from the last shareholder call that this move was planned in three stages. First is the corporate office move. Second is a portion of the tissue processing and third the balance of tissue processing. The new cleaning was finished and this is just now on the beginning stages of validation. Once that step is completed, we will complete validation and move about one half of our processors into this new building. We expect this to happen in late August. And then the balance of processing will follow about six weeks later. Remember we’re going to be keeping our old facilities, incremental capacity in the disaster recovery location. Now changing topic to our discussion on our publications. As you all know, we’ve been focusing not only on numerous clinical studies regarding our tissue, but also on the fundamental scientific studies that are designed to help determine the mechanisms of action of our tissue and various applications. As Pete mentioned, our first scientific…

Bill, thank you and then we will flip it to Mike Senken, our Chief Financial Officer. Mike?

Thanks, Pete. The company recorded revenues for the second quarter of approximately $13.5 million, an increase of 177% or $8.6 million over prior year second quarter revenue of $4.9 million. Revenue for the six months ended June 30, 2013, was approximately $25.1 million as compared to $8.6 million for the same period in 2012, representing a 192% increase over prior year. Broken down by therapeutic area, in the second quarter and on a year-to-date basis, 54% of sales volume was wound care, 41% surgical and sports medicine, and 5% other. Wound care revenue for the quarter was approximately $7.3 million as compared to $321,000 in the second quarter of 2012. Surgical and sports medicine revenue for the quarter was approximately $5.6 million as compared to $3.7 million in the second of 2012. For the six months ended, June 30, 2013, wound care revenue totaled approximately $13.6 million, which represents an increase of $12.1 million or 812% compared to $1.5 million in 2012. Surgical and sports medicine revenue for the six months ended June 30, 2013 was $10.2 million, an increase of 80% when compared to the prior year revenue of $5.7 million. The increase in wound care revenue over prior year is driven by several factors including the move to a direct sales force model for both government accounts and commercial accounts. As a reminder, the company’s targeted government accounts with a direct sales force beginning in July of 2012, and we continue to add resources in selectively markets as Bill described earlier. Beginning late in 2012, but ramping up more aggressively in 2013, the company has been building a direct sales force where commercial accounts added specifically to territories where the company has received positive reimbursement decisions from the MAC. The increase in surgical and sports medicine revenue was…

Thank you Mike, let me make one other comment about our scientific publication in the International Wound Journal. We just received this morning the electronic link, so we couldn’t put that in the press release, so on next day or so we’ll put out a press release with a few more comments about the article itself and you’ll be able to link directly to it and read the article. So, we just missed that by [accident], but (inaudible) here we would add on the original press release. Let me open the call up now to questions.

Ladies and gentlemen, we are ready to open the lines up for your questions. (Operator Instructions) And your first question comes from the line of Matt Hewitt with Craig-Hallum Capital Group. Please proceed. Matthew Hewitt – Craig-Hallum Capital Group LLC: Good morning gentlemen and congratulations on another strong quarter.

Thanks.

Thanks Matt. Matthew Hewitt – Craig-Hallum Capital Group LLC: Couple of questions, first, the three outstanding MACs, I think previously you’ve described them as one needed additional information and two what kind of a disarray given the changes earlier in the year, could you give us an update on those and then a follow up to that is how contingent is your current guidance on receiving positive reimbursement coverage from those three MACs?

This is Pete. Let me speak to that and then Bill can add a little more detail. Each MAC has, of course, its own medical staff and each of those staffs have their own concepts often about what policy they want to call on and how they want to look at supporting data. The last year three, one of them has just lost their Chief Medical Officer, so there is sort of (inaudible) to make the assessments on our requests, but they don’t have Chief Medical Officer there to attend to the matter. The other two, one of the them we have told is about to make some disclosures on this particular subject matter, and the third one is access for more information, and as you can see, we’ve got a lot of clinical studies underway. We just published some more this week and we’ll be bringing back information to them and see if we can’t convince them that we have sufficient clinical information with our randomized (inaudible) information to make them comfortable given as the combination. Will?

Matt, regarding our current projections on revenue, we still feel very comfortable with our range that we’ve given. What we’re doing in terms of some of our new people that we’re hiring down the sales force, we are actually hiring into the areas where we are in the six areas where we do have coverage. So whereas had we had covered the other three, some of these new hires would be going into those new areas, but rather than going into the new areas, we don’t have coverage, we’re actually penetrating a little more deeply in areas where we do have coverage. So we feel that the range is still very solid even though it taken us a little bit longer on these three MACs.

We did say this fall on MACs, I think the previous comments we made we expect to have coverage by this fall, so lead time started to turn, yes. Matthew Hewitt – Craig-Hallum Capital Group LLC: No, that’s fair. I guess along, maybe just a follow-up to that is, if you received the positive reimbursement coverage from these last three, this quarter, maybe early next quarter, does that maybe hit the upper end of your range, is that kind of a story where you feel comfortable with low-end right now, is just a question of when you received these three, can you get to closer to 60 versus closer to 54?

Matt, that probably a good assumption. Matthew Hewitt – Craig-Hallum Capital Group LLC: Okay. I guess, I’m not sure how quickly the ramp, obviously Wisconsin is going to help here starting in the third quarter, but I’m just trying to get a sense for how quickly once you received the reimbursement, can you apply resources and attack the market?

Well, Matt, I guess one thing is, I wouldn’t assume that we need them to hit the 60. They would be helpful, but we don’t need it. Matthew Hewitt – Craig-Hallum Capital Group LLC: Okay. Well, that’s great. Okay, understood. As far as, as you look at the commercial side of your business and outside of the government, where do you stand with some of the commercial insurance, United Healthcare is the blues, how do you stand on that front?

Well, we are receiving coverage from various parts of the country from various numbers of those carriers, but again it’s a very focused manacle carrier by carrier, region by region, area by area, approach. We’ve got a very confident reimbursement staff here that the individual who leads that is with our former company for 15 years. We have hired some additional people. So we know what to do and we are quickly, very quickly making progress. But it’s we’ve been sitting here with some additional coverage issues a year from now. It’s just a very, very focused manacle approach and most people don’t appreciate what you have to go through. But we do, because we believed it. And we have a very confident staff, we just actually added another individual few days ago to that staff. So I’d call it a reimbursement war and you fight battle-by-battle, skirmish-by- skirmish and you just keep plugging away at it.

And I’ll do that we’re making headway in those areas, there’s a number of those that carriers that do cover us right now, there is some that don’t. But some of the ones that haven’t, very recently we’ve broken through and received some good coverage, and we expect them to change their official LCVs shortly. So I think in future, we’ve got a clarity to some of those, but right now it’s all we can say. Matthew Hewitt – Craig-Hallum Capital Group LLC: Okay, fair enough. Maybe, one more from me and then I’ll jump back in the queue. On the procurement side, the last couple of quarters, you’ve provided an update of where you stand as far as number of hospitals that you are receiving amniotic tissue from, could you provide an update as specifically, you previously talked about I think either a large system or group of systems that could add maybe up to 30 hospitals to your procurement group. Where do you stand on that front?

I guess the simplest way to answer that is we’ve gotten more percentage in what we really need right now. And I’ll back up a little bit, you’d recall it about first time last year, we have been stating that basically, 30 hospitals, average sized hospitals for us will be enough to generate $100 million in revenue, $301 billion. Now as you can recall, that was back when we have mostly distribution model and not a direct sales model, so you could imagine with the direct sales that we’ve had over the last 12 months now, how that ratio is lower, it’s probably close to about 20 hospitals will suffice to or roughly $100 million in revenue in that neighborhood and we’ve got $20 million or excuse me, we’ve got 20 hospitals that we are collecting from now and we are not collecting at the full rig at which we could collect from those 20 hospitals at the moment. We also have I think two or three hospital systems and a number of other independent hospitals that are in the neighborhood 60 or so hospitals we could add within probably about three or four months should we need it. So I think it’s suffice to say that supply will not be an issue for us over the next months and years. Matthew Hewitt – Craig-Hallum Capital Group LLC: Okay. That’s great update. Thank you. I’ll jump back in the queue.

Thanks, Matt.

Thanks, Matt.

And your next question comes from the line of Suraj Kalia with Northland Securities. Please proceed. Suraj A. Kalia – Northland Securities, Inc.: Good morning, gentlemen. Congratulations on the nice quarter.

All right. Thanks, Suraj.

Thanks, Suraj. Suraj A. Kalia – Northland Securities, Inc.: So Mike and Pete, if I remember correctly, wound care was expected to be around 60% of total revenues and if I look at the first half of the year, it’s roughly approximating 54%, how should we look upon for the wound care that segment of the business for the rest of the year vis-à-vis guidance?

Well, Suraj. This is Pete and I’ll turn it back to Mike. I guess, managing that specifically to a few percentages plus, minus, we don’t manage on that basis, we manage by putting feet on the street and focusing on areas where we have opportunities. I will let Mike address how the numbers have rolled out. There’s nothing in these numbers that makes us uncomfortable in terms of our tactful execution or strategic execution.

Yeah, Suraj, keep in mind that the addition of the commercial sales force is focused on wound care. So, when you start talking about, growth in the second half of the year end and to hit the top end of our guidance, we did 25 in the first half of the year, and we’d have to do 35 in the second half of the year to get to the 60, we’re adding wound care direct sales folks. So where we are, we’re not surprised by and we feel good about the mix.

No, I want to just clarify too, when we add on the government side, remember government is not just wound care, it is both wound care and/or injectable, which is AmnioFix. And in the future as we really start selling our EpiFix micronized, you will get a little better differentiation, because our previous micronized or AmnioFix injectable reduced was used for both injecting or things like plantar fasciitis and tendon issues, but it was also used in a powder form for wound. So we report that in our AmnioFix side of things, but we don’t have clarity on how much of that was actually used in wounds. So as we go out with our EpiFix micronized, we’ll get a little better differentiation on the wound care versus the AmnioFix sports med market. And you can see a little bit of a shifting once we get a little more penetrated there and convert folks that we’re using AmnioFix micronized for wound care application will start using that EpiFix. So we’ll be more clarity in the coming quarters. And in general our focus is now rapidly been in our commercial side of the business. Suraj A. Kalia – Northland Securities, Inc.: And obviously since you guys have started adding direct sales reps, there has been a pretty nice jump. Can you guys share some color on where sales rep productivity is currently and where you’ll think maybe in 12 months it could go based on what you all are seeing in the market?

I’m going to let Bill to address some of those issues. We’ve talked about some of those parameters and I’m going to let Bill to discuss some.

Yeah, our target when we have our sales reps up in running and proficient in that territories somewhere between $1 million and $1.2 million annually per rep. On the government side, the early folks we brought in our average to get up to that rate was in the neighborhood of three or four months. Now that we’re growing to certain map the average is taking a little bit longer on the government side to get there. On the commercial side the average is a bit longer than that. I think with the first group that we had we were looking at in the neighborhood of about eight months or so to get to that kind of a run rate on average. I think we still feel reasonably good about that as with any sales force we have some folks that are significantly ahead of the curve and details numbers significantly. We have other folks that are well behind the curve, but I think that’s pretty fair for us right now. I would say moving forward that eight month is still probably pretty good on the commercial side. And on the government side, the federal side, when we add folks probably more in the line of about six months is probably a better range for them to get up to that $1 million to $1.2 million run rate. Suraj A. Kalia – Northland Securities, Inc.: Fair enough. And finally, just on thinking outside the box, your recent paper about the amniotic membrane being a stem cell magnet, would that be too far off in thinking something an application in spinal cord injury could be explored with this. And here is the reason why I say, as far as I know a lot of people have tried with stem cells and I’m sure you know the entire list and not many people have been successful per se with the direct injection, and I’m just trying to understand if something like this given that they have gone through really many folks out there working on SSI, have you’ll looked at or I’m sure you all have thought about it. I would love to get your thoughts, thanks for taking my questions.

One thought here is simply this. A lot of the problems that you beginning to come out of the use of stem cells is the fact that they don’t last more than about 24 hours SSI, now they create some activity while that they are but they disappear. Potential it’s that perhaps our tissue can be used as a matrix at the site to help slow that process down. But there is all kinds of opportunities here and that’s why we have trying to stress, but we’ve got many years ahead of us and some very interesting collaboration we think with some researchers and other corporate entities because there is a number of places that this particular tissue while it’s in the tissue form or a powdered form can perhaps add to perhaps even replenish some of the current thoughts on some of the stem cell activities.

Suraj A. Kalia – Northland Securities, Inc.: Thanks.

Okay. We’ll have a couple of disclosure next month or so about some other studies that are underway, some of the universities where we’re continued to explore analyst study basis and other basis possibilities, so we got many years ahead, obviously to develop a solid base of clinical activity in scientific studies. Thanks, Suraj. Suraj A. Kalia – Northland Securities, Inc.: Yeah, thanks guys.

Your next question comes from the line of Bill Plovanic with Canaccord. Please proceed. Bill J. Plovanic – Canaccord Genuity, Inc.: Great, thanks. Good morning, can you hear me?

Yeah, Bill.

Good morning. Bill J. Plovanic – Canaccord Genuity, Inc.: Great. So three questions, first is in regards to the MACs, six were on board, three remaining. How many total widest to the MACs encompass and how many are covered with the six that you have?

Bill, I don’t know, let me hear sitting here, if three of us, can answer that question. We’ve got the states, we don’t have certainly in front of us, but that’s something we probably have to get back to yield. Bill J. Plovanic – Canaccord Genuity, Inc.: Okay.

Looking for those on the website… Bill J. Plovanic – Canaccord Genuity, Inc.: Okay.

In 30 and 35 states. Bill J. Plovanic – Canaccord Genuity, Inc.: Okay. I’ll move on, next question is if you’re looking to your 2014 guidance, what’s assumed in there in terms of the MACs, so the $90 million to $110 million, are you assuming all the MACs will be turned on and if – there’s a straggler to it, does that impact the guidance?

Yes. We’ve assumed, we made some statements many months ago that we felt that MACs would be passed the MACs this fall and so that soon will be in 2014 with all 9 MACs, but there is just – we’ve got a lot [with the room], because of the growth on the commercial side, our two competitors have $300 million plus in revenues in the Would Care segment on the commercial side, as we talk about it. So, when we say commercial, they’re certainly in that range, although [one arms] lost a good deal of market share, but so there’s plenty of opportunities there, plus our government side just in wound care and that would be with the surgical opportunities.

Well, I want to point out those to you, you maybe able to alter our plan if we have trouble with one or two of these MACs, you may be able to alter our plan to still get in that same range by having a higher concentration of sales folks in the areas where we’re at right now. Just if you remember one of our competitors when they were $200 million run rate, they had about 200 sales people. About 160 of them – they’re about commercial. So, we’ve got a lot of room for growth even in the areas where we have the coverage of the six areas now, but certainly in our initial estimate, we did assume that we were going to be in all nine MACs.

I think one other thing to point out is, one of the critical elements is the amount of data in the studies that we are presenting to these MACs. As we’ve mentioned, we have numerous other studies going on and we’ll have additional data that quite frankly we could bury these MACs with and that’s where we feel very good about not having that problem of not penetrating their next year, but you can never say never. Bill J. Plovanic – Canaccord Genuity, Inc.: Okay, understood. And then I would assume that I think you commented Pete that the next kind of strategy is to go after all the commercial payors, (inaudible) all those payors and get them on board?

That’s correct, but we’ve been pursuing that all along, but we’re now very focused on it and have brought some new people on board just to focus on the commercial side.

And we’re stepping those efforts up this quarter in particular. Bill J. Plovanic – Canaccord Genuity, Inc.: Okay. And then my third…

I’d kind of say, remember about 75% of the wound care market happens to be Medicare. So we’ll necessarily focus there first, but there is plenty of business out there on the commercial side. Bill J. Plovanic – Canaccord Genuity, Inc.: Okay. And then my final question was you’ve put a lot of investments in place over the last 24 months, building the infrastructure, moving the facilities, hiring people, getting it all in place. Where would you say you are in terms of that going forward? Are you going to continue to invest with the revenue growth and the question I’m really getting at is when do you have enough investment that you slowdown on the investment standpoint and start to see the operating margin profit expand and at what point do you do that? That’s my last question. Thanks.

Good question, Bill. We’ve dealt with that a great deal on board meeting yesterday. That Bill Taylor and Pete Petit are very used to having operating benefits with good strong operating profit margins. At same time, this is a little bit different and building very rapidly, I think probably. So everybody is surprised and how rapidly we’re building our footprint in the marketplace. We’re now broadly making decisions as we come in to the board yesterday that’s continued to balance our opportunities in terms of footprint and presence in this marketplace and command of the marketplace with how rapidly we grow EBITDA and operating profits and aftertax profits. As Mike’s discussion laid up, there’s a lot of our aftertax profits have been affected by non-cash charges, that’s just the way of accounting rules are today. So we could be very strong cash flow positive and not be shown 20% operating profit, but a business like this obviously on record and we’ve said this is in front of our board, business of this nature once it reaches a point where you’d not still build an infrastructure now. we’ll still be making commitments on the clinical side. I think you’ll see that for a number of years here. But we’re getting to the point where we’re probably going this far, and say it’s going to be in early next year where the infrastructure that we’ve been investigating in, in last two years, those investments will begin to tail off. And we’ll have a sufficient stay out in all these particular areas that we will have to continue to make those kind of investments.

And I’ll add in here too, just from a pure infrastructure standpoint, I’ve said before with our new facility and with our existing facility that we’re going to keep. We should have at least the infrastructure in place to support about $0.50 billion to $500 million in revenue. We’ll still have to add some equipment in the premiums and add some processing folks of course, with a main element to the infrastructure should support that. And so then I would just like to add to what Pete said sometime early next year, our percentage increase in infrastructure costs are going to be much, much slower than our revenue increases. It’s doing to start slowing down and we’ve got the largest portion of that, I think in place or being ready to be the foundation right now. So the increases are going to be very small. We’ll be focusing on clinical studies then and probably sales support and salespeople.

Let me add one more little family story here. In our previous company is, I think everyone knows [Bill Ram] one of our significant subsidiary companies Facet Technologies. We use to literally have to keep Facet Technologies profitability off the radar, because Bill’s operating units was generally we had a good quarter of 35% operating profit when we had kind of a bad quarter it might drill down to 25%. But we know how to run very profitable businesses, and we’ll make those calls here and adjust the things accordingly. But we have all the issues starting with our gross profit margin on through to have – in time here a very profitable fast growth business enterprise. Bill J. Plovanic – Canaccord Genuity, Inc.: Thank you.

Thank you.

(Operator Instructions) And your next question comes from the line of Bruce Jackson with Lake Street Capital Markets. Please proceed. Bruce Jackson – Lake Street Capital Markets: Hi, guys.

Hi, Bruce.

Hey, Bruce. Bruce Jackson – Lake Street Capital Markets: So one quick question about the scientific study that you’ve announced today. When you talk to physicians the discussion about mechanism of action or common roadblock and do you think that publication of this article is going to help you with adoption?

Absolutely, I think, most physicians as soon as they begin to see the tissue and have any kind of insight into what’s going on, the question always comes up. We’ve had callers coming here starting two years ago when physician would use a tissue. The call would come in, our Chief Medical Officer, what the bell in this tissue. By that time, we began to figure out that we needed to get some of the scientific studies done and so we started the studies with the staff at Georgia Tech, but most physicians clearly understand what growth factors are and if there are reserves to appear on process, which they are in a very unique way, what that can mean, and that’s why we just had such interesting protocols coming out of some physicians wanting to start some studies, where which we’re generally speaking are attempting to do. So it will I think make a big difference although again some of the scientific details it takes perhaps two scientific asset to get into the detail with some of our physicians and our sales force. But perhaps a bit beyond their level of expertise, but we’ll continue to get this publications out, so that people clearly understand what’s going on. Bruce Jackson – Lake Street Capital Markets: Okay, great. Congratulations on a nice quarter.

Thank you.

Thanks, Bruce.

Ladies and gentlemen, that concludes our question-and-answer session. I will now like to turn the call over to Mr. Pete Petit for closing remarks. Mr. Petit, you may proceed.

Thank you, Jackie and well, again, I appreciate you being on what’s turned out to be a rather lengthy call, perhaps one of our longest. Hopefully we cleared up a lot of issues for you. Look for our press release next day or so, that will clearly give you the length to the scientific publication in the International Wound Journal and you can see the full publication alluded. And again we just missed the – been able to do that this morning by 24 hours. So, pull that up and take a look at and give us a call if you have any questions again. Thanks so much for your interest in the company, and appreciate you being on the call. Good Bye.

Thank you for your participation in today’s conference. This concludes the presentation. You may now disconnect. Have a great day.