Full Press Release Details
NeoGenomics Reports Revenue of $67.8 Million on 18.7% Clinical Volume Growth and $10.5 Million of Adjusted EBITDA in the Fourth Quarter of 2017
Gross Margin Improvement to 48.9%
Ft. Myers, Florida - February 21, 2018 - NeoGenomics, Inc. (NASDAQ: NEO), a leading provider of cancer-focused genetic testing services, today reported its results for the fourth quarter and full year 2017.
Fourth Quarter 2017 Highlights:
Full Year 2017 Highlights:
Consolidated revenues for the fourth quarter of 2017 were $67.8 million, an increase of 12% over the same period in 2016. After adjusting 2016 results for the divestiture of PathLogic, revenue growth was 15%. Clinical genetic test volume(1) increased by almost 19% year over year. Average revenue per clinical genetic test ("Revenue per Test") decreased by 8% to $338, primarily due to changes in test mix and reduced reimbursement levels for certain molecular tests.
Consolidated gross profit improved by $5.9 million, or 22%, compared to the fourth quarter of 2016 and consolidated gross margin improved by 380 basis points to 48.9%. Gross margin improvement was driven by productivity gains and cost efficiencies which resulted in an 11% reduction in average
cost-of-goods-sold per clinical genetic test ("Cost per Test"), and margin expansion in the Pharma Services business as a result of better leverage of payroll expenses.
Consolidated operating expenses decreased by $1.5 million, or 5%, from the prior year, primarily because fourth quarter 2016 results included a $3.5 million non-cash impairment charge related to certain intangible assets.
Interest expense for the quarter decreased by $4.1 million, or 75%, from the prior year, because fourth quarter 2016 results included a $3.9 million one-time expense associated with refinancing the Company's bank debt at significantly lower interest rates.
Net income in Quarter 4 was $5.0 million compared to a net loss of ($6.2) million in the prior year's fourth quarter. Included in this year's results was a one-time $3.1 million gain in connection with the Tax Cuts and Jobs Act that was signed into law in December. GAAP earnings per share available to common stockholders, after deducting non-cash preferred stock charges, was $0.03 in Quarter 4 compared to a loss of ($0.18) per share in the prior year's fourth quarter.
Adjusted EBITDA(2) was $10.5 million in Quarter 4, a 29% improvement from the prior year. Adjusted Net Income(2) was $4.4 million compared to $4.4 million in the prior year. Adjusted Diluted EPS(2) was $0.05 per share compared to $0.05 in the prior year.
Accounts receivable ended Quarter 4 at $60.4 million, a decrease of $2.3 million from the end of Quarter 3 and the lowest level of 2017. Days Sales Outstanding ("DSO") improved to 82 days, with the Clinical Division DSO at 78 days.
Douglas M. VanOort, the Company's Chairman and CEO, commented, "We are very pleased with the record revenue and Adjusted EBITDA reported in Quarter 4. Clinical test volume growth was exceptionally strong, and cost and productivity gains drove a significant increase in our gross margin. Bad Debt expense remained high, although cash collections were excellent and accounts receivable balances are in the best shape since 2016. Service levels continue to be excellent, and our Clinical Division Sales teams have healthy pipelines of new accounts."
Mr. VanOort concluded, "We are particularly pleased with the excellent results of our Pharma Services Division. Revenue grew 69% year over year to $8.7 million, and we signed a record $18 million of net new contracts in the quarter. We ended 2017 with a $67 million backlog of contracted revenue, an 81% increase over the prior year. These increases continue to be driven by immuno-oncology related work, including our proprietary MultiOmyx testing platform as well as growth in molecular testing. We are pleased to have opened our new European lab facility in Rolle, Switzerland in November, and Pharma sponsors are expressing strong interest in our expanded capabilities."
2018 Financial Outlook:
NeoGenomics also issued 2018 guidance today. The Company expects consolidated revenue to be in the range of $260 to $272 million, including the adoption of ASC 606 (which equates to a range of $275 million to $288 million prior to the application of ASC 606) and GAAP Diluted EPS to be a loss of ($0.13) to ($0.08) per share. The Company expects Adjusted EBITDA(2) to be in the range of $39 to $43 million and Adjusted Diluted EPS(2) to be $0.15 - $0.20 per share.
The Company would also like to remind investors that there can be significant quarterly variance in its Pharma Services revenue and currently anticipates Pharma Services revenue and gross margin will be lower in the first quarter of 2018 than in the fourth quarter of 2017.
Please also refer to the tables reconciling forecasted Adjusted Net Income, Adjusted Diluted EPS and Adjusted EBITDA to their closest GAAP equivalents in the section of this report entitled "Reconciliation of Non-GAAP Financial Guidance to Corresponding GAAP Measures."
The Company reserves the right to adjust this guidance at any time based on the ongoing execution of its business plan. Current and prospective investors are encouraged to perform their own due diligence before buying or selling any of the Company's securities, and are reminded that the foregoing estimates should not be construed as a guarantee of future performance.
____________________
The Company has scheduled a web-cast and conference call to discuss their fourth quarter and full year results on Wednesday, February 21, 2018 at 10:00 AM EDT. Interested investors should dial (877) 407-8035 (domestic) and (201) 689-8035 (international) at least five minutes prior to the call. A replay of the conference call will be available until 10:00 PM on March 7, 2018 and can be accessed by dialing (877) 481-4010 (domestic) and (919) 882-2331 (international). The playback conference ID Number is 24069. The web-cast may be accessed under the Investor Relations section of our website at www.neogenomics.com or http://www.investorcalendar.com/event/24069. An archive of the web-cast will be available until 10:00 PM on May 21, 2018.
About NeoGenomics, Inc.
NeoGenomics, Inc. specializes in cancer genetics testing and information services. The Company provides one of the most comprehensive oncology-focused testing menus in the world for physicians to help them diagnose and treat cancer. The Company's Pharma Services division serves pharmaceutical clients in clinical trials and drug development.
Headquartered in Fort Myers, FL, NeoGenomics operates CLIA certified laboratories in Aliso Viejo and Fresno, California; Tampa and Fort Myers, Florida; Houston, Texas; Nashville, Tennessee and Rolle, Switzerland. NeoGenomics serves the needs of pathologists, oncologists, academic centers, hospital systems, pharmaceutical firms, integrated service delivery networks, and managed care organizations throughout the United States. For additional information about NeoGenomics, visit http://neogenomics.com/.
Forward Looking Statements
Certain information contained in this press release constitutes forward-looking statements for purposes of the safe harbor provisions of The Private Securities Litigation Reform Act of 1995, including the information set forth in the "Full-Year 2018 Financial Outlook". 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 as the result of the Company's ability to continue gaining new customers, offer new types of tests, integrate its acquisition of the Clarient business, and otherwise implement its business plan, as well as additional factors discussed under the heading "Risk Factors" and elsewhere in the Company's Quarterly Report on Form 10-K filed with the SEC on March 14, 2017. As a result, this press release should be read in conjunction with the Company's periodic filings with the SEC. In addition, it is the Company's practice to make information about the Company available by posting copies of its Company Overview Presentation from time to time on the Investor Relations section of its website at http://ir.neogenomics.com/.
Forward-looking statements represent the Company's estimates only as of the date such statements are made (unless another date is indicated) and should not be relied upon as representing the Company's estimates as of any subsequent date. While the Company may elect to update forward-looking statements at some point in the future, it specifically disclaims any obligation to do so, even if its estimates change.
For further information, please contact:
Executive Vice President & Dir. of Investor Relations
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited, in thousands)
| ASSETS | December 31, 2017 | December 31, 2016 | ||||||
| Cash and cash equivalents | $ | 12,821 | $ | 12,525 | ||||
| Accounts receivable (net of allowance for doubtful accounts of $13,700 and $13,699, respectively) | 60,427 | 55,512 | ||||||
| Inventory | 7,474 | 6,253 | ||||||
| Other current assets | 4,241 | 4,535 | ||||||
| Total current assets | 84,963 | 78,825 | ||||||
| Property and equipment (net of accumulated depreciation of $40,530 and $27,102, respectively) | 36,504 | 34,036 | ||||||
| Intangible assets, net | 74,165 | 77,064 | ||||||
| Goodwill | 147,019 | 147,019 | ||||||
| Other assets | 689 | 174 | ||||||
| TOTAL ASSETS | $ | 343,340 | $ | 337,118 | ||||
| LIABILITIES, REDEEMABLE CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS' EQUITY | ||||||||
| Accounts payable and other current liabilities | $ | 26,076 | $ | 29,380 | ||||
| Short-term portion of capital leases and debt | 8,989 | 8,733 | ||||||
| Total current liabilities | 35,065 | 38,113 | ||||||
| Long-term Liabilities: | ||||||||
| Long-term portion of capital leases and senior debt | 96,435 | 97,436 | ||||||
| Deferred income tax liability, net | 6,307 | 14,973 | ||||||
| Total long-term liabilities | 102,742 | 112,409 | ||||||
| TOTAL LIABILITIES | 137,807 | 150,522 | ||||||
| Series A Redeemable Convertible Preferred Stock | 32,615 | 22,873 | ||||||
| Stockholders' equity | 172,918 | 163,723 | ||||||
| TOTAL LIABILITIES, REDEEMABLE CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS' EQUITY | $ | 343,340 | $ | 337,118 |
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)
| For the Three Months Ended December 31, | For the Year Ended December 31, | |||||||||||||||
| 2017 | 2016 | 2017 | 2016 | |||||||||||||
| Net Revenue | ||||||||||||||||
| Clinical testing | $ | 59,079 | $ | 55,341 | $ | 231,748 | $ | 222,015 | ||||||||
| Pharma Services | 8,713 | 5,149 | 26,863 | 22,068 | ||||||||||||
| Total Revenue | 67,792 | 60,490 | 258,611 | 244,083 | ||||||||||||
| Cost of revenue | 34,660 | 33,232 | 138,295 | 133,704 | ||||||||||||
| Gross Profit | 33,132 | 27,258 | 120,316 | 110,379 | ||||||||||||
| Operating expenses: | ||||||||||||||||
| General and administrative | 22,012 | 19,974 | 88,755 | 75,782 | ||||||||||||
| Research and development | 556 | 930 | 3,636 | 4,649 | ||||||||||||
| Sales and marketing | 6,077 | 5,825 | 24,543 | 23,910 | ||||||||||||
| Impairment charges | - | 3,464 | - | 3,464 | ||||||||||||
| Total operating expenses | 28,645 | 30,193 | 116,934 | 107,805 | ||||||||||||
| Income (Loss) From Operations | 4,487 | (2,935 | ) | 3,382 | 2,574 | |||||||||||
| Interest expense & debt termination fees, net | 1,368 | 5,489 | 5,540 | 9,998 | ||||||||||||
| Other expense | 264 | - | 1,323 | - | ||||||||||||
| Income (loss) before taxes | 2,855 | (8,424 | ) | (3,481 | ) | (7,424 | ) | |||||||||
| Income tax (benefit) | (2,096 | ) | (2,201 | ) | (2,635 | ) | (1,701 | ) | ||||||||
| Net Income (Loss) | 4,951 | (6,223 | ) | (846 | ) | (5,723 | ) | |||||||||
| Deemed dividends on preferred stock | 911 | 12,491 | 3,645 | 18,011 | ||||||||||||
| Amortization of preferred stock beneficial conversion feature | 1,780 | (4,517 | ) | 6,902 | 6,663 | |||||||||||
| Net Income (Loss) Attributable to Common Stockholders | $ | 2,260 | $ | (14,197 | ) | $ | (11,393 | ) | $ | (30,397 | ) | |||||
| Income (Loss) per Common Share: | ||||||||||||||||
| Basic | $ | 0.03 | $ | (0.18 | ) | $ | (0.14 | ) | $ | (0.39 | ) | |||||
| Diluted | $ | 0.03 | $ | (0.18 | ) | $ | (0.14 | ) | $ | (0.39 | ) | |||||
| Weighted Average Shares Used in Computation of Earnings per Common Share: | ||||||||||||||||
| Basic | 86,676 | 78,490 | 79,426 | 77,542 | ||||||||||||
| Diluted | 88,611 | 78,490 | 79,426 | 77,542 |
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited, in thousands)
| For the Year ended December 31, | ||||||||
| CASH FLOWS FROM OPERATING ACTIVITIES | 2017 | 2016 | ||||||
| Net (Loss) | $ | (846 | ) | $ | (5,723 | ) | ||
| Adjs. to reconcile net (loss) to net cash provided by operating activities: | ||||||||
| Depreciation | 15,596 | 15,937 | ||||||
| Loss on impairment/sale of assets | 253 | 3,464 | ||||||
| Loss on sale of business | 1,058 | - | ||||||
| Amortization of debt issue costs | 440 | 4,596 | ||||||
| Amortization of intangible assets | 6,995 | 7,272 | ||||||
| Non-cash, stock-based compensation | 6,441 | 5,438 | ||||||
| Provision for bad debts | 18,649 | 11,856 | ||||||
| Changes in assets and liabilities, net | (30,549 | ) | (21,363 | ) | ||||
| NET CASH PROVIDED BY OPERATING ACTIVITIES | 18,037 | 21,477 | ||||||
| CASH FLOWS FROM INVESTING ACTIVITIES | ||||||||
| Purchases of property and equipment | (13,690 | ) | (7,536 | ) | ||||
| Acquisition related assets (net of cash acquired) | - | 1,035 | ||||||
| NET CASH USED IN INVESTING ACTIVITIES | (13,690 | ) | (6,501 | ) | ||||
| CASH FLOWS FROM FINANCING ACTIVITIES | ||||||||
| Advances from revolving credit facility, net | 2,496 | 12,856 | ||||||
| Proceeds from advance on term loan, net | - | 75,000 | ||||||
| Repayments of term loan | (3,753 | ) | (55,000 | ) | ||||
| Redemption of preferred stock | - | (55,000 | ) | |||||
| Repayment of capital lease obligations, loans | (5,424 | ) | (5,293 | ) | ||||
| Payments of debt issue costs | - | (2,202 | ) | |||||
| Issuance of common stock | 2,804 | 4,031 | ||||||
| Payments of equity issue costs | (218 | ) | (263 | ) | ||||
| NET CASH USED IN FINANCING ACTIVITIES | (4,095 | ) | (25,871 | ) | ||||
| Effects of foreign exchange rate changes on cash and cash equivalents | 44 | - | ||||||
| NET DECREASE IN CASH AND CASH EQUIVALENTS | 296 | (10,895 | ) | |||||
| CASH AND CASH EQUIVALENTS, BEGINNING OF THE PERIOD | 12,525 | 23,420 | ||||||
| CASH AND CASH EQUIVALENTS, END OF THE PERIOD | $ | 12,821 | $ | 12,525 | ||||
| SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: | ||||||||
| Interest paid | $ | 5,155 | $ | 5,423 | ||||
| Income taxes paid | $ | 284 | $ | 290 | ||||
| SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING AND FINANCING INFORMATION: | ||||||||
| Equipment acquired under capital lease obligations | $ | 5,728 | $ | 6,057 | ||||
| Fair value of restricted stock issued to fund purchase of customer list | $ | 4,095 | $ | - |
Use of non-GAAP Financial Measures
The Company's financial results and financial guidance are provided in accordance with accounting principles generally accepted in the United States of America (GAAP) and using certain non-GAAP financial measures. Management believes that presentation of operating results using non-GAAP financial measures provides useful supplemental information to investors and facilitates the analysis of the Company's core operating results and comparison of core operating results across reporting periods. Management also uses non-GAAP financial measures for financial and operational decision making, planning and forecasting purposes and to manage the Company's business. Management believes that these non-GAAP financial measures enable investors to evaluate our operating results and future prospects in the same manner as management. The non-GAAP financial measures do not replace the presentation of GAAP financial results and should only be used as a supplement to, and not as a substitute for, the Company's financial results presented in accordance with GAAP. There are limitations inherent in non-GAAP financial measures because they exclude charges and credits that are required to be included in a GAAP presentation, and do not therefore present the full measure of the Company's recorded costs against its net revenue. In addition, the Company's definition of the non-GAAP financial measures below may differ from non-GAAP measures used by other companies.
Definitions of Non-GAAP Measures
Non - GAAP Adjusted EBITDA
"Adjusted EBITDA" is defined by NeoGenomics as net income from continuing operations before: (i) interest expense, (ii) tax expense, (iii) depreciation and amortization expense, (iv) non-cash stock-based compensation expense, and if applicable in a reporting period (v) acquisition-related transaction expenses (vi) non-cash impairments of intangible assets (vii) debt financing costs (viii) and other significant non-recurring or non-operating (income) or expenses.
Non - GAAP Adjusted Net Income
"Adjusted Net Income" is defined by NeoGenomics as net income available to common shareholders from continuing operations plus: (i) non-cash amortization of customer lists and other intangible assets, (ii) non-cash stock-based compensation expense, (iii) non-cash deemed dividends on preferred stock, (iv) non-cash amortization of preferred stock beneficial conversion feature, and if applicable in a reporting period (v) acquisition related transaction expenses (vi) non-cash impairments of intangible assets (vii) debt financing costs (viii) and other significant non-recurring or non-operating (income) or expenses.
Non-GAAP Adjusted Diluted EPS
"Adjusted Diluted EPS" is defined by NeoGenomics as Adjusted Net Income divided by Adjusted Diluted Shares outstanding. Adjusted Diluted Shares outstanding is the sum of Diluted shares outstanding and the weighted average number of common shares that would be outstanding if the preferred stock were converted into common stock on the original issue date based on the number of days such common shares would have been outstanding in the reporting period. In addition, if GAAP Net Income is negative and Adjusted Net Income is positive, Adjusted Diluted Shares will also include any options or warrants that would be outstanding as dilutive instruments using the treasury stock method.
Basis for Non-GAAP Adjustments
NeoGenomics basis for excluding certain expenses (income) from GAAP financial measures, are outlined below:
Reconciliation of GAAP Net Income to Non-GAAP EBITDA and Adjusted EBITDA
| (Unaudited, in thousands) | For the Three Months Ended December 31, | For the Year Ended December 31, | ||||||||||||||
| 2017 | 2016 | 2017 | 2016 | |||||||||||||
| Net Income (Loss) (GAAP) | $ | 4,951 | $ | (6,223 | ) | $ | (846 | ) | $ | (5,723 | ) | |||||
| Adjustments to Net Income (Loss): | ||||||||||||||||
| Interest expense | 1,368 | 1,541 | 5,540 | 6,050 | ||||||||||||
| Income tax (benefit) | (2,096 | ) | (2,201 | ) | (2,635 | ) | (1,701 | ) | ||||||||
| Amortization of intangibles | 1,794 | 1,818 | 6,995 | 7,272 | ||||||||||||
| Depreciation | 3,856 | 4,387 | 15,596 | 15,937 | ||||||||||||
| EBITDA | 9,873 | (678 | ) | 24,650 | 21,835 | |||||||||||
| Further Adjustments to EBITDA: | ||||||||||||||||
| Facility moving expenses and other adjustments | - | - | 620 | - | ||||||||||||
| Loss on sale of business | - | - | 1,058 | - | ||||||||||||
| Amortization of issuance costs and prepayment fees upon early termination of debt | - | 3,948 | - | 3,948 | ||||||||||||
| Impairment charges | - | 3,464 | - | 3,464 | ||||||||||||
| Non-cash, stock-based compensation | 629 | 1,415 | 6,441 | 5,438 | ||||||||||||
| Adjusted EBITDA (non-GAAP) | $ | 10,502 | $ | 8,149 | $ | 32,769 | $ | 34,685 |
Reconciliation of GAAP Net Income Available to Common Stockholders to Non-GAAP Adjusted Net Income and GAAP Earnings per Share to Non-GAAP Adjusted Earnings per Share
(Unaudited, in thousands)
| For the Three Months Ended December 31, | For the Year Ended December 31, | |||||||||||||||
| 2017 | 2016 | 2017 | 2016 | |||||||||||||
| Net Income (Loss) attributable to common stockholders (GAAP) | $ | 2,260 | $ | (14,197 | ) | $ | (11,393 | ) | $ | (30,397 | ) | |||||
| Adjustments to Net Income (Loss): | ||||||||||||||||
| Amortization of intangibles | 1,794 | 1,818 | 6,995 | 7,272 | ||||||||||||
| Deemed dividends on preferred stock | 911 | 12,491 | 3,645 | 18,011 | ||||||||||||
| Amort. of preferred stock beneficial conversion feature | 1,780 | (4,517 | ) | 6,901 | 6,663 | |||||||||||
| Facility moving expenses and other adjustments | - | - | 620 | - | ||||||||||||
| Loss on sale of business | - | - | 1,058 | - | ||||||||||||
| Amortization of costs and fees upon debt termination | - | 3,948 | - | 3,948 | ||||||||||||
| Income tax benefit | (3,012 | ) | - | (3,012 | ) | - | ||||||||||
| Impairment charges | - | 3,464 | - | 3,464 | ||||||||||||
| Non-cash, stock-based compensation | 629 | 1,415 | 6,441 | 5,438 | ||||||||||||
| Adjusted net income (non-GAAP) | $ | 4,362 | $ | 4,422 | $ | 11,255 | $ | 14,399 | ||||||||
| Net loss per common share (GAAP) | ||||||||||||||||
| Diluted EPS | $ | 0.03 | $ | (0.18 | ) | $ | (0.14 | ) | $ | (0.39 | ) | |||||
| Adjustments to diluted loss per share: | ||||||||||||||||
| Amortization of intangibles | 0.02 | 0.02 | 0.08 | 0.08 | ||||||||||||
| Deemed dividends/PIK dividends on preferred stock | 0.01 | 0.13 | 0.04 | 0.19 | ||||||||||||
| Amort. of preferred stock beneficial conversion feature | 0.02 | (0.05 | ) | 0.08 | 0.07 | |||||||||||
| Facility moving expenses | - | - | 0.01 | - | ||||||||||||
| Loss on sale of business | - | - | 0.01 | - | ||||||||||||
| Amortization of costs and fees upon debt termination | - | 0.04 | - | 0.04 | ||||||||||||
| Income tax benefit | (0.03 | ) | - | (0.03 | ) | - | ||||||||||
| Impairment charges | - | 0.04 | - | 0.04 | ||||||||||||
| Non-cash, stock-based compensation expenses | 0.01 | 0.01 | 0.07 | 0.06 | ||||||||||||
| Rounding and impact of including preferred shares and stock options in Adj. Diluted Shares in net loss periods (3) | (0.01 | ) | 0.04 | 0.01 | 0.06 | |||||||||||
| Adjusted Diluted EPS (non-GAAP) | $ | 0.05 | $ | 0.05 | $ | 0.13 | $ | 0.15 | ||||||||
| Weighted average shares used in computation of adjusted diluted earnings per share: | ||||||||||||||||
| Diluted Common Shares (GAAP) | 88,611 | 78,490 | 79,426 | 77,542 | ||||||||||||
| Options, warrants and restricted stock not included in GAAP Diluted Shares (using treasury stock method) | - | 2,058 | 1,579 | 1,717 | ||||||||||||
| Weighted Avg. Preferred Shares (as converted) | - | 13,878 | 6,600 | 14,468 | ||||||||||||
| Adjusted Diluted Shares outstanding (non-GAAP) | 88,611 | 94,426 | 87,605 | 93,727 |
Reconciliation of Non-GAAP Financial Guidance to Corresponding GAAP Measures
2018 net income available to common stockholders calculated in accordance with GAAP will be impacted by certain non-cash charges, including: (i) expenses related to variable stock-based compensation, (ii) approximately $5.7 million of expense related to the amortization of customer lists and other intangibles from the Clarient acquisition, (iii) approximately $4.0 million of deemed preferred stock dividends, and (iv) approximately $8.1 million for the amortization of the beneficial conversion feature related to the preferred stock issued in connection with the Clarient acquisition. These non-cash charges have been included in GAAP net income (loss) available to common shareholders and GAAP net income (loss) per share; however, they have been removed from Adjusted Net Income and Adjusted Diluted Net Income per Share.
The following table reconciles our 2018 outlook for Net Income, EBITDA and EPS to the corresponding non-GAAP measures of Adjusted Net Income, Adjusted EBITDA and Adjusted Diluted EPS:
| For the Year Ended December 31, 2018 | ||||||||
| Low Range | High Range | |||||||
| Net (Loss) attributable to common stockholders (GAAP) | $ | (10,900 | ) | $ | (6,900 | ) | ||
| Amortization of intangibles | 5,700 | 5,700 | ||||||
| Non-cash, stock-based compensation | 7,000 | 7,000 | ||||||
| Preferred stock dividends and amortization of BCF | 12,100 | 12,100 | ||||||
| Adjusted Net Income (non-GAAP) | $ | 13,900 | $ | 17,900 | ||||
| Interest and taxes | 7,600 | 7,600 | ||||||
| Depreciation | 17,500 | 17,500 | ||||||
| Adjusted EBITDA (Non-GAAP) | $ | 39,000 | $ | 43,000 | ||||
| Net loss per common share (GAAP) | ||||||||
| Diluted EPS | $ | (0.13 | ) | $ | (0.08 | ) | ||
| Adjustments to diluted loss per share: | ||||||||
| Amortization of intangibles | 0.07 | 0.07 | ||||||
| Non-cash, stock-based compensation expenses (4) | 0.09 | 0.09 | ||||||
| Preferred stock dividends and amortization of BCF | 0.15 | 0.15 | ||||||
| Impact of including preferred shares and stock options/warrants in Adj. Diluted Shares (3) | (0.02 | ) | (0.02 | ) | ||||
| Adjusted Diluted EPS (non-GAAP) | $ | 0.15 | $ | 0.20 | ||||
| Assumed shares outstanding in 2018 | ||||||||
| Diluted shares outstanding | 81,500 | 81,500 | ||||||
| Options not included in diluted shares | 2,700 | 2,700 | ||||||
| Series A Preferred Stock outstanding | 7,000 | 7,000 | ||||||
| Adjusted diluted shares outstanding (Non-GAAP) | $ | 91,200 | $ | 91,200 |
Supplemental Information on
Pharma Revenue, Cost of Revenue and Gross Margin
| Pharma revenue | 8,713 | 5,149 | 69.2 | % | 26,863 | 22,068 | 21.7 | % | |||||||||||||||
| Cost of revenue | 4,730 | 3,183 | 48.6 | % | 16,510 | 13,267 | 24.4 | % | |||||||||||||||
| Gross margin | 3,982 | 1,967 | 102.4 | % | 10,353 | 8,801 | 17.6 | % |
Supplemental Information on
Clinical Genetic(1) Requisitions Received, Tests Performed, Revenue and Cost of Revenue
(Unaudited, in thousands, except test & requisition data and per test & per requisition data)
| For the Three Months Ended December 31, | For the Year Ended December 31, | ||||||||||||||||||||||
| Clinical Genetic Operation: | 2017 | 2016 | % Change | 2017 | 2016 | % Change | |||||||||||||||||
| Requisitions received (cases) | 102,714 | 91,304 | 12.5 | % | 394,520 | 361,220 | 9.2 | % | |||||||||||||||
| Number of tests performed | 174,918 | 147,317 | 18.7 | % | 657,394 | 563,132 | 16.7 | % | |||||||||||||||
| Average number of tests/requisition | 1.70 | 1.61 | 5.5 | % | 1.67 | 1.56 | 6.9 | % | |||||||||||||||
| Total clinical genetic testing revenue | $ | 59,079 | $ | 53,823 | 9.8 | % | $ | 228,078 | $ | 214,708 | 6.2 | % | |||||||||||
| Average revenue/requisition | $ | 575 | $ | 589 | (2.4 | %) | $ | 578 | $ | 594 | (2.7 | %) | |||||||||||
| Average revenue/test | $ | 338 | $ | 365 | (7.6 | %) | $ | 347 | $ | 381 | (9.0 | %) | |||||||||||
| Cost of revenue | $ | 29,930 | $ | 28,275 | 5.9 | % | $ | 117,839 | $ | 113,373 | 3.9 | % | |||||||||||
| Average cost/requisition | $ | 291 | $ | 310 | (5.9 | %) | $ | 299 | $ | 314 | (5.2 | %) | |||||||||||
| Average cost/test | $ | 171 | $ | 192 | (10.9 | %) | $ | 179 | $ | 201 | (11.3 | %) |
Supplemental Information on
PathLogic Requisitions Received, Tests Performed, Revenue and Cost of Revenue(5)
(Unaudited, in thousands, except requisition data and revenue & cost per requisition)
| For the Year Ended December 31, | ||||||||||||
| PathLogic Operations: | 2017 | 2016 | % Change | |||||||||
| Requisitions received (cases) | 31,107 | 56,165 | (44.6 | %) | ||||||||
| Total testing revenue | $ | 3,669 | $ | 7,307 | (49.8 | %) | ||||||
| Average revenue/requisition | $ | 118 | $ | 130 | (9.3 | %) | ||||||
| Cost of revenue | $ | 3,946 | $ | 6,064 | (44.1 | %) | ||||||
| Average cost/requisition | $ | 127 | $ | 126 | 0.9 | % |