Published on November 3, 2009
NEOGENOMICS,
INC
PRESS
RELEASE
FOR
IMMEDIATE RELEASE
NeoGenomics
Reports Third Quarter 2009 Results
Ft. Myers, Florida – October 29, 2009
- - NeoGenomics, Inc. (NASD OTC BB: NGNM), a leading provider of
cancer-focused genetic testing services today reported its results
for the third quarter of 2009.
Highlights:
|
·
|
Revenue increase
of 44% versus Q3 08 to $7.3
million
|
|
·
|
Build-out of a
full-service melanoma laboratory and commencement of a large melanoma
validation study
|
|
·
|
Significantly improved
liquidity position
|
|
·
|
Douglas VanOort appointed Chief
Executive Officer
|
Revenue
increased by $2.2 million or 44% to $7.3 million in the third quarter from $5.1
million in the same quarter last year. The number of tests increased
by 33% while average revenue per test increased by 8%. Gross profit
margin of 50% was essentially unchanged from last year. Sales and
marketing expenses increased $989,000 or 123% driven by a more than doubling in
the size of the sales force since this time last year. General and
administrative expenses increased $626,000 or 34% primarily due to an increase
in management personnel. Net loss for the quarter was ($755,000) or
($0.02)/share versus a net loss of ($195,000) or ($0.01)/share in Q3
08.
During
the third quarter, NeoGenomics received $4.8 million of proceeds from the sale
of 3.5 million shares of common stock to Abbott Laboratories and received an
additional $640,000 upon the exercise of certain warrants. As a
result of these equity transactions, all non-lease debt was paid off during the
quarter. At the end of the Quarter, the Company held $3.1 million of
cash and retained $3 million of availability on its working capital credit
facility.
During
the third quarter, overall revenue growth was impacted by normal seasonality in
Florida-based accounts as well as by a restructuring of the relationship with
the company’s largest account. As previously disclosed, we recently
began assisting our largest customer develop the capability to perform bladder
cancer FISH testing in-house while seeking to expand the scope of other testing
services and the number of locations for which we provide
services. As a result, bladder cancer FISH testing revenue from this
customer declined by approximately $650,000 and other testing services increased
by $240,000, which resulted in a net loss of $410,000 of revenue compared with
the same quarter last year. Excluding this account, the company’s
revenues grew approximately 62% versus last year.
1
Douglas
VanOort, Chairman and Chief Executive Officer, stated, “We are pleased by the
significant progress across the company as we position ourselves for future
growth. Although the results of the restructuring process with our
largest customer are thus far below our expectations, there is considerable
momentum in the other aspects of our business. Sales force
productivity continues to increase as we emphasize training and new account
development, and the pipeline of new business is strong. We are on
track to close October with a significant increase in revenue versus
September.”
Mr.
VanOort continued, “I am also delighted to announce that I have accepted the
position of Chief Executive Officer of NeoGenomics and will no longer serve in
an interim capacity. NeoGenomics is an exciting company with a strong
management team. I am excited to continue to execute on the strategic
initiatives we have put in place as we expand the Company’s presence in many
areas of cancer genetic testing across the country.”
Robert
Gasparini, President and Chief Scientific Officer, added, “We are off to a rapid
start in building our Melanoma FISH testing capability pursuant to the agreement
we entered into with Abbott Laboratories in July. We have expanded
our California laboratory location and are just completing the build-out of a
new full-service melanoma FISH laboratory. We are also well into the
process of validating this new melanoma FISH test and expect to complete a
comprehensive validation study on over 500 patient samples by the end of the
year. We are currently working with four validation partners, each of
which will also become our initial marketing partners. We expect to
launch the melanoma FISH test in the first quarter of 2010 with our validation
partners and then quickly follow this with a national roll-out.
Conference
Call
The
Company has scheduled a webcast and conference call to discuss their Q3 2009
results at 11:00 AM EST today. Interested investors should dial (877)
407-9210 (domestic) and (201) 689-8049 (international) at least five minutes
prior to the call. A replay of the conference call will be available
until 11:59 PM on November 13, 2009 and can be accessed by dialing (877)
660-6853 (domestic) and 1 (201) 612-7415 (international). The
playback conference ID Number is 336389 and the PIN Number is
286. The web-cast may be accessed under the Investor Relations
section of our website at http://www.neogenomics.com
or at http://www.investorcalendar.com/IC/CEPage.asp?ID=151457. An
archive of the web-cast will be available until 11:59 PM EST on October 29,
2010.
About
NeoGenomics, Inc.
NeoGenomics,
Inc. is a high-complexity CLIA–certified clinical laboratory that specializes in
cancer genetics diagnostic testing, the fastest growing segment of the
laboratory industry. The company’s testing services include
cytogenetics, fluorescence in-situ hybridization (FISH), flow cytometry,
morphology studies, anatomic pathology and molecular genetic
testing. Headquartered in Fort Myers, FL, NeoGenomics has labs in
Nashville, TN, Irvine, CA and Fort Myers and services the needs of pathologists,
oncologists, urologists, and hospitals throughout the United States. For
additional information about NeoGenomics, visit http://www.neogenomics.com.
For more
news and information on NeoGenomics, please visit www.IRGnews.com/coi/NGNM where you can
find a fact sheet on the company, investor presentations, and
more. Interested parties can also access additional investor
relations material, including an investment profile and an equity research
report, from Hawk Associates at http://www.hawkassociates.com
or from the American Microcap Institute at http://www.americanmicrocapinstitute.com/ngnm/.
2
Forward
Looking Statements
Except for historical
information, all of the statements, expectations and assumptions contained in
the foregoing are forward-looking statements. These forward
looking statements involve a number of risks
and uncertainties that could cause actual future results to differ materially
from those anticipated in the forward looking statements, Actual results
could differ materially from such statements expressed or implied herein.
Factors that might cause such a difference include, among others, the company’s
ability to continue gaining new customers, offer new types of tests, and
otherwise implement its business plan. As a result, this press release should be
read in conjunction with the company's periodic filings with the
SEC.
For
further information, please contact:
NeoGenomics,
Inc.
|
The
Investor Relations Group
|
Steven
C. Jones
|
Investor
Relations:
|
Director
of Investor Relations
|
Rachel
Colgate
|
(239)
325-2001
|
(212)
825-3210
|
sjones@neogenomics.com
|
rcolgate@investorrelationsgroup.com
|
or
|
|
Hawk
Associates, Inc.
|
Media
Relations:
|
Ms.
Julie Marshall
|
Janet
Vasquez
|
(305)-451-1888
|
(212)
825-3210
|
neogenomics@hawkassociates.com
|
jvasquez@investorrelationsgroup.com
|
3
NeoGenomics,
Inc.
CONSOLIDATED
BALANCE SHEETS AS OF
September
30, 2009 and December 31, 2008
(unaudited)
ASSETS
|
September
30,
2009
|
December
31,
2008
|
||||||
Cash
and cash equivalents
|
$ | 3,128,047 | $ | 468,171 | ||||
Accounts
Receivable (net of allowance for
doubtful accounts of $551,914 and
$358,642, respectively)
|
4,174,625 | 2,913,531 | ||||||
Other
Current Assets
|
1,327,908 | 973,867 | ||||||
TOTAL
CURRENT ASSETS
|
8,630,580 | 4,355,569 | ||||||
PROPERTY AND EQUIPMENT
(net of accumulated depreciation
of $2,416,445 and $1,602,594, respectively)
|
4,180,162 | 2,875,297 | ||||||
OTHER
ASSETS
|
106,737 | 64,509 | ||||||
TOTAL
|
$ | 12,917,479 | $ | 7,295,375 | ||||
LIABILITIES AND
STOCKHOLDERS’ EQUITY
|
||||||||
CURRENT
LIABILITIES
|
$ | 4,303,616 | $ | 4,390,994 | ||||
LONG
TERM LIABILITIES
|
1,566,344 | 1,403,271 | ||||||
TOTAL
LIABILITIES
|
5,869,960 | 5,794,265 | ||||||
STOCKHOLDERS’
EQUITY
|
7,047,519 | 1,501,110 | ||||||
TOTAL
|
$ | 12,917,479 | $ | 7,295,375 | ||||
4
NeoGenomics,
Inc.
CONSOLIDATED
STATEMENTS OF OPERATIONS
(unaudited)
For
the
Three-Months
Ended
September
30,
2009
|
For
the
Three-Months
Ended
September
30,
2008
|
For
the
Nine-Months
Ended
September
30,
2009
|
For
the
Nine-Months
Ended
September
30,
2008
|
|||||||||||||
REVENUE
|
$ | 7,296,800 | $ | 5,050,796 | $ | 21,669,645 | $ | 14,094,959 | ||||||||
COST
OF REVENUE
|
3,672,289 | 2,535,318 | 10,146,766 | 6,577,549 | ||||||||||||
GROSS
PROFIT
|
3,624,511 | 2,515,478 | 11,522,879 | 7,517,410 | ||||||||||||
OPERATING
EXPENSES:
|
||||||||||||||||
General
and administrative
|
2,457,978 | 1,831,829 | 7,011,577 | 5,357,936 | ||||||||||||
Sales
and marketing
|
1,792,955 | 803,779 | 4,849,470 | 2,348,348 | ||||||||||||
Interest
(income) expense, net
|
128,883 | 74,995 | 375,900 | 199,336 | ||||||||||||
Total
operating expenses
|
4,379,816 | 2,710,603 | 12,236,947 | 7,905,620 | ||||||||||||
NET
INCOME (LOSS)
|
$ | (755,305 | ) | $ | (195,125 | ) | $ | (714,068 | ) | $ | (388,210 | ) | ||||
NET INCOME (LOSS) PER SHARE | ||||||||||||||||
-
Basic
|
$ | (0.02 | ) | $ | (0.01 | ) | $ | (0.02 | ) | $ | (0.01 | ) | ||||
-
Diluted
|
$ | (0.02 | ) | $ | (0.01 | ) | $ | (0.02 | ) | $ | (0.01 | ) | ||||
WEIGHTED
AVERAGE NUMBER
OF
SHARES OUTSTANDING –
|
||||||||||||||||
Basic
|
36,000,083 | 31,440,327 | 33,782,925 | 31,414,065 | ||||||||||||
Diluted
|
36,000,083 | 31,440,327 | 33,782,925 | 31,414,065 | ||||||||||||
5
NeoGenomics,
Inc.
|
CONSOLIDATED
STATEMENTS OF CASH FLOWS
(unaudited)
For
the
Nine-Months
Ended
September
30,
2009
|
For
the
Nine-Months
Ended
September
30,
2008
|
|||||||
NET
CASH USED IN OPERATING ACTIVITIES
|
$ | (1,045,900 | ) | $ | (181,654 | ) | ||
NET
CASH USED IN INVESTING ACTIVITIES
|
(432,182 | ) | (370,218 | ) | ||||
NET
CASH PROVIDED BY FINANCING ACTIVITIES
|
4,137,958 | 972,664 | ||||||
NET INCREASE IN CASH AND CASH
EQUIVALENTS
|
2,659,876 | 420,792 | ||||||
CASH
AND CASH EQUIVALENTS, BEGINNING OF PERIOD
|
468,171 | 210,573 | ||||||
CASH
AND CASH EQUIVALENTS, END OF PERIOD
|
$ | 3,128,047 | $ | 631,365 | ||||
SUPPLEMENTAL
DISCLOSURE OF CASH FLOW INFORMATION:
|
||||||||
Interest
paid
|
$ | 335,242 | $ | 171,606 | ||||
Income
taxes paid
|
$ | - | $ | - | ||||
SUPPLEMENTAL
DISCLOSURE OF NON-CASH INVESTING AND FINANCING
ACTIVITIES:
|
||||||||
Equipment
leased under capital lease
|
$ | 1,064,194 | $ | 538,761 | ||||
6
NeoGenomics,
Inc.
Supplemental
Information on Customer Requisitions Received and Tests Performed
For
the
Three-Months
Ended
September
30,
2009
|
For
the
Three-Months
Ended
September
30,
2008
|
%
Inc (Dec)
|
For
the
Nine-Months
Ended
September
30,
2009
|
For
the
Nine- Months
Ended
September
30,
2008
|
%
Inc (Dec)
|
|
Requisitions
Rec’d (cases)
|
7,555
|
6,308
|
19.8%
|
23,065
|
17,558
|
31.4%
|
Number
of Tests Performed
|
11,188
|
8,383
|
33.5%
|
32,961
|
23,049
|
43.0%
|
Avg.
# of Tests / Requisition
|
1.48
|
1.33
|
11.3%
|
1.43
|
1.31
|
9.2%
|
Total
Testing Revenue
|
$7,296,800
|
$5,050,796
|
44.5%
|
$21,669,645
|
$14,094,959
|
53.7%
|
Avg
Revenue/Requisition
|
$
965.82
|
$
800.70
|
20.6%
|
$
939.50
|
$
802.77
|
17.0%
|
Avg
Revenue/Test
|
$
652.20
|
$
602.50
|
8.2%
|
$
657.43
|
$
611.52
|
7.5%
|
7