Adjusted EBITDA Improves 305%; Fifth
Consecutive Quarter of Positive Adjusted EBITDA; Increasing
FY Guidance to $37-$40 Million
NeoGenomics, Inc. (NASDAQ: NEO) (the
“Company”), a leading oncology testing services
company, today announced its third-quarter results for the period
ended September 30, 2024.
Third Quarter
2024 Highlights As Compared To Third Quarter 2023
- Consolidated revenue increased 10% to $168 million
- Clinical Services revenue increased 14% to $146
million
- Advanced Diagnostics revenue decreased 10% to $22
million
- Net loss decreased 4% to $18 million
- Adjusted EBITDA increased 305% to positive $13
million
“We delivered a strong third quarter, again growing revenue by
double digits and increasing adjusted EBITDA by over 300%, all
while serving a record number of patients,” said Chris Smith, Chief
Executive Officer of NeoGenomics. “Our results demonstrate our
teammates' commitment to executing on our strategic priorities.
This disciplined approach has enabled us to increase our adjusted
EBITDA expectations for the year while continuing to position the
Company for long term, sustainable growth.”
Third-Quarter Results
Consolidated revenue for the third quarter of 2024 was $168
million, an increase of 10% over the same period in 2023. Clinical
Services revenue of $146 million increased year-over-year by 14%.
Clinical test volume(1) increased by 9% year-over-year. Average
revenue per clinical test (“revenue per test”) increased by 5% to
$463. These increases in Clinical Services reflect higher value
tests, including NGS, and strategic reimbursement initiatives.
Advanced Diagnostics revenue decreased by 10% to $22 million
compared to the third quarter of 2023 primarily driven by
international site closures, restructuring activities and lower
RaDaR® revenue.
Consolidated gross profit for the third quarter of 2024 was
$74.9 million, an increase of 20.2% compared to the third quarter
of 2023. This increase was primarily due to an increase in revenue
partially offset by higher compensation and benefit costs.
Consolidated gross profit margin, including amortization of
acquired intangible assets and stock-based compensation expense,
was 44.6%. Adjusted Gross Profit Margin(2), excluding amortization
of acquired intangible assets and stock-based compensation expense,
was 47.8%.
Operating expenses for the third quarter of 2024 were $96
million, an increase of $10 million, or 11%, compared to the third
quarter of 2023. Operating expenses included higher compensation
and benefit costs as well as an increase in legal and professional
fees including a settlement payment for IP litigation. These
increases were partially offset by a decrease in restructuring
activities.
Net loss for the quarter decreased $1 million, or 4%, to $18
million compared to net loss of $19 million for the third quarter
of 2023.
Adjusted EBITDA(2) increased $10 million, or 305%, to positive
$13 million compared to positive $3 million in the third quarter of
2023. Adjusted Net Income(2) was $7 million compared to Adjusted
Net Loss(2) of $0.3 million in the third quarter of 2023.
Cash and cash equivalents and marketable securities totaled $388
million at quarter end.
2024 Financial
Guidance(3)
The Company again revised its full-year 2024 guidance(3), as
previously revised on July 29, 2024.
FY 2023
Previously Revised FY
2024 Guidance
Revised FY 2024
Guidance(3)
YOY % Change from FY
2023
(in millions)
Actual
Low
High
Low
High
Low
High
Consolidated revenue
$
592
$
655
$
667
$
655
$
667
11
%
13
%
Net loss
$
(88
)
$
(88
)
$
(81
)
$
(81
)
$
(78
)
8
%
11
%
Adjusted EBITDA
$
3
$
33
$
37
$
37
$
40
1133
%
1233
%
______________________________________
(1)
Clinical testing excludes tests and
revenue for Advanced Diagnostics.
(2)
The Company has provided adjusted
financial information that has not been prepared in accordance with
GAAP, including Adjusted EBITDA, Adjusted Gross Profit Margin,
Adjusted Net (Loss) Income, and Adjusted Diluted EPS. Each of these
measures is defined in the section of this report entitled “Use of
Non-GAAP Financial Measures.” See also the tables reconciling such
measures to their closest GAAP equivalent.
(3)
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.
Conference Call
The Company has scheduled a webcast and conference call to
discuss its third quarter 2024 results on Tuesday, November
5, 2024 at 8:30 a.m. Eastern Time. To access the live call via
telephone, interested investors should dial (888) 506-0062
(domestic) or (973) 528-0011 (international) at least five minutes
prior to the call. The participant access code provided for this
call is 676597. The live webcast may be accessed by visiting the
Investor Relations section of our website at ir.neogenomics.com. A
replay of the webcast will be available shortly after the
conclusion of the call and will be archived on the Company’s
website.
About NeoGenomics, Inc.
NeoGenomics, Inc. specializes in cancer genetics testing and
information services, providing one of the most comprehensive
oncology-focused testing menus in the world for physicians to help
them diagnose and treat cancer. The Company’s Advanced Diagnostics
Division serves pharmaceutical clients in clinical trials and drug
development.
NeoGenomics is committed to connecting patients with life
altering therapies and trials. We believe that, together, with our
partners, we can help patients with cancer today and the next
person diagnosed tomorrow. In carrying out these commitments,
NeoGenomics adheres to relevant data protection laws, provides
transparency and choice to patients regarding the handling and use
of their data through our Notice of Privacy Practices, and has
invested in leading technologies to secure the data we
maintain.
Headquartered in Fort Myers, FL, NeoGenomics operates CAP
accredited and CLIA certified laboratories for full-service sample
processing in Fort Myers, Florida; Aliso Viejo and Carlsbad,
California; Research Triangle Park, North Carolina; and Houston,
Texas; and a CAP accredited full-service, sample-processing
laboratory in Cambridge, United Kingdom. NeoGenomics also has
several, small, non-processing laboratory locations across the
United States for providing analysis services. 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, and a pharmaceutical firm in Europe.
Forward Looking Statements
This press release includes forward-looking statements. These
forward-looking statements generally can be identified by the use
of words such as “anticipate,” “expect,” “plan,” “could,” “would,”
“may,” “will,” “believe,” “estimate,” “forecast,” “goal,”
“project,” “guidance,” “plan,” “potential” and other words of
similar meaning, although not all forward-looking statements
include these words. This press release includes forward-looking
statements. These forward-looking statements address various
matters, including statements regarding improving operational
efficiency, returning to profitable growth and the Company's
ongoing executive recruitment process. Each forward-looking
statement contained in this press release is subject to a number of
risks and uncertainties that could cause actual results to differ
materially from those expressed or implied by such statement.
Applicable risks and uncertainties include, among others, the
Company's ability to identify and implement appropriate financial
and operational initiatives to improve performance, to identify and
recruit executive candidates, to continue gaining new customers,
offer new types of tests, integrate its acquisitions and otherwise
implement its business plan, and the risks identified under the
heading "Risk Factors" contained in the Company's Annual Report on
Form 10-K, Quarterly Reports on Form 10-Q and the Company's other
filings with the Securities and Exchange Commission.
We caution investors not to place undue reliance on the
forward-looking statements contained in this press release. You are
encouraged to read our filings with the SEC, available at
www.sec.gov, for a discussion of these and other risks and
uncertainties. The forward-looking statements in this press release
speak only as of the date of this document (unless another date is
indicated), and we undertake no obligation to update or revise any
of these statements. Our business is subject to substantial risks
and uncertainties, including those referenced above. Investors,
potential investors, and others should give careful consideration
to these risks and uncertainties.
NeoGenomics, Inc. CONDENSED
CONSOLIDATED BALANCE SHEETS (in thousands)
September 30, 2024
(unaudited)
December 31, 2023
ASSETS
Current assets
Cash and cash equivalents
$
361,992
$
342,488
Marketable securities, at fair value
25,821
72,715
Accounts receivable, net
151,428
131,227
Inventories
24,457
24,156
Prepaid assets
18,235
17,987
Other current assets
8,308
8,239
Total current assets
590,241
596,812
Property and equipment, net
93,038
92,012
Operating lease right-of-use assets
81,442
91,769
Intangible assets, net
348,042
373,128
Goodwill
522,766
522,766
Other assets
5,582
4,742
Total non-current assets
1,050,870
1,084,417
Total assets
$
1,641,111
$
1,681,229
LIABILITIES AND STOCKHOLDERS’
EQUITY
Current liabilities
Accounts payable and other current
liabilities
$
92,266
$
90,694
Current portion of operating lease
liabilities
3,716
5,610
Current portion of convertible senior
notes, net
200,424
—
Total current liabilities
296,406
96,304
Long-term liabilities
Operating lease liabilities
62,172
67,871
Convertible senior notes, net
339,956
538,198
Deferred income tax liabilities, net
22,771
24,285
Other long-term liabilities
11,596
13,034
Total long-term liabilities
436,495
643,388
Total liabilities
$
732,901
$
739,692
Stockholders’ equity
Total stockholders’ equity
$
908,210
$
941,537
Total liabilities and stockholders’
equity
$
1,641,111
$
1,681,229
NeoGenomics, Inc. CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except per
share amounts) (unaudited)
Three Months Ended September
30,
Nine Months Ended September
30,
2024
2023
2024
2023
NET REVENUE
Clinical Services
$ 145,783
$ 127,553
$ 421,706
$ 365,578
Advanced Diagnostics
22,041
24,401
66,860
70,513
Total net revenue
167,824
151,954
488,566
436,091
COST OF REVENUE
92,944
89,643
275,723
259,075
GROSS PROFIT
74,880
62,311
212,843
177,016
Operating expenses:
General and administrative
66,969
61,486
196,094
183,343
Research and development
7,684
5,285
23,190
20,182
Sales and marketing
20,415
17,610
62,313
52,770
Restructuring charges
1,009
2,125
4,951
9,883
Total operating expenses
96,077
86,506
286,548
266,178
LOSS FROM OPERATIONS
(21,197)
(24,195)
(73,705)
(89,162)
Interest income
(4,673)
(4,525)
(14,099)
(12,057)
Interest expense
1,642
1,685
4,993
5,226
Other (income) expense, net
(317)
96
(52)
(520)
Loss before taxes
(17,849)
(21,451)
(64,547)
(81,811)
Income tax benefit
(150)
(2,935)
(1,145)
(8,169)
NET LOSS
$ (17,699)
$ (18,516)
$ (63,402)
$ (73,642)
NET LOSS PER SHARE
Basic
$ (0.14)
$ (0.15)
$ (0.50)
$ (0.59)
Diluted
$ (0.14)
$ (0.15)
$ (0.50)
$ (0.59)
WEIGHTED AVERAGE COMMON SHARES
OUTSTANDING
Basic
126,953
125,687
126,491
125,358
Diluted
126,953
125,687
126,491
125,358
NeoGenomics, Inc. CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands)
(unaudited)
Nine Months Ended September
30,
2024
2023
CASH FLOWS FROM OPERATING
ACTIVITIES
Net loss
$
(63,402
)
$
(73,642
)
Adjustments to reconcile net loss to net
cash used in operating activities:
Depreciation
29,274
27,872
Amortization of intangibles
25,085
26,350
Stock-based compensation
25,085
17,643
Non-cash operating lease expense
7,022
6,860
Amortization of convertible debt discount
and debt issue costs
2,182
2,154
Impairment of assets
333
1,703
Loss on disposal of assets, net
63
334
Other adjustments
141
122
Changes in assets and liabilities, net
(28,560
)
(29,133
)
Net cash used in operating activities
(2,777
)
(19,737
)
CASH FLOWS FROM INVESTING
ACTIVITIES
Purchases of marketable securities
—
(6,756
)
Proceeds from maturities of marketable
securities
47,784
87,963
Purchases of property and equipment
(29,462
)
(21,695
)
Net cash provided by investing
activities
18,322
59,512
CASH FLOWS FROM FINANCING
ACTIVITIES
Repayment of equipment financing
obligations
—
(66
)
Issuance of common stock, net
3,959
3,350
Net cash provided by financing
activities
3,959
3,284
Net change in cash and cash
equivalents
19,504
43,059
Cash and cash equivalents, beginning of
period
342,488
263,180
Cash and cash equivalents, end of
period
$
361,992
$
306,239
Use of Non-GAAP Financial Measures
In order to provide greater transparency regarding our operating
performance, the financial results and financial guidance in this
press release refer to certain non-GAAP financial measures that
involve adjustments to GAAP results. Non-GAAP financial measures
exclude certain income and/or expense items that management
believes are not directly attributable to the Company’s core
operating results and/or certain items that are inconsistent in
amounts and frequency, making it difficult to perform a meaningful
evaluation of our current or past operating performance. Management
believes that the presentation of operating results using non-GAAP
financial measures provides useful supplemental information to
investors by facilitating the analysis of the Company’s core
test-level operating results across reporting periods and when
comparing those same results to those published by our peers. These
non-GAAP financial measures may also assist investors in evaluating
future prospects. Management also uses non-GAAP financial measures
for financial and operational decision making, planning and
forecasting purposes and to manage the business. These non-GAAP
financial measures do not replace the presentation of financial
information in accordance with U.S. GAAP financial results, should
not be considered measures of liquidity, and are unlikely to be
comparable to non-GAAP financial measures provided by other
companies.
Definitions of Non-GAAP Measures
Non-GAAP Adjusted EBITDA
“Adjusted EBITDA” is defined by NeoGenomics as net (loss) income
from continuing operations before: (i) interest income, (ii)
interest expense, (iii) tax (benefit) or expense, (iv) depreciation
and amortization expense, (v) stock-based compensation expense,
and, if applicable in a reporting period, (vi) restructuring
charges, (vii) intellectual property (“IP”) litigation costs,
(viii) CEO transition costs, and (ix) other significant or
non-operating (income) or expenses, net.
Non-GAAP Adjusted Cost of Revenue,
Adjusted Gross Profit and Adjusted Gross Profit Margin
“Adjusted cost of revenue” is defined by NeoGenomics as cost of
revenue before: (i) amortization of acquired intangible assets,
and, if applicable in a reporting period, (ii) stock-based
compensation expense.
“Adjusted gross profit” is defined by NeoGenomics as total
revenue less adjusted cost of revenue.
“Adjusted gross profit margin” is defined by NeoGenomics as
adjusted cost of revenue divided by total revenue.
Non-GAAP Adjusted Net (Loss)
Income
“Adjusted net (loss) income” is defined by NeoGenomics as net
(loss) income from continuing operations plus: (i) amortization of
intangible assets, (ii) stock-based compensation expense, and, if
applicable in a reporting period, (iii) restructuring charges, (iv)
IP litigation costs, (v) CEO transition costs, and (vi) other
significant or non-operating (income) or expenses, net. If GAAP net
(loss) income is negative and adjusted net (loss) income is
positive, adjusted net (loss) income will also be adjusted to
reverse any recognized interest expense (including any amortization
of discounts) on the convertible notes using the if-converted
method unless the effect of this adjustment on both the adjusted
net (loss) income and weighted average diluted common shares
outstanding would be anti-dilutive. If GAAP net (loss) income is
positive and adjusted net (loss) income is negative, adjusted net
(loss) income will also be adjusted to reverse any recognized
interest expense (including any amortization of discounts) on the
convertible notes using the if-converted method.
Non-GAAP Adjusted Diluted EPS
“Adjusted diluted EPS” is defined by NeoGenomics as adjusted net
(loss) income divided by adjusted diluted shares outstanding. If
GAAP net (loss) income is negative and adjusted net (loss) income
is positive, adjusted diluted shares outstanding will also include
any options or restricted stock that would be outstanding as
dilutive instruments using the treasury stock method and the
weighted average number of common shares that would be outstanding
if the convertible notes 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, until the
effect of these adjustments are anti-dilutive. If GAAP net (loss)
income is positive and adjusted net (loss) income is negative,
adjusted diluted shares outstanding will exclude any options or
restricted stock that would be outstanding as dilutive instruments
using the treasury stock method and the weighted average number of
common shares that would be outstanding if the convertible notes
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.
Reconciliation of GAAP Net
Loss to Non-GAAP EBITDA and Adjusted EBITDA (in thousands)
(unaudited)
Three Months Ended September
30,
Nine Months Ended September
30,
2024
2023
2024
2023
Net loss (GAAP)
$
(17,699
)
$
(18,516
)
$
(63,402
)
$
(73,642
)
Adjustments to net loss:
Interest income
(4,673
)
(4,525
)
(14,099
)
(12,057
)
Interest expense
1,642
1,685
4,993
5,226
Income tax benefit
(150
)
(2,935
)
(1,145
)
(8,169
)
Depreciation
9,623
9,349
29,274
27,872
Amortization of intangibles
8,362
8,784
25,085
26,350
EBITDA (non-GAAP)
$
(2,895
)
$
(6,158
)
$
(19,294
)
$
(34,420
)
Further adjustments to EBITDA:
CEO transition costs
—
—
—
500
Stock-based compensation expense
8,470
7,180
25,085
17,643
Restructuring charges
1,009
2,125
4,951
9,883
IP litigation costs(4)
6,113
—
12,356
—
Other significant expenses, net(5)
677
158
4,637
532
Adjusted EBITDA (non-GAAP)
$
13,374
$
3,305
$
27,735
$
(5,862
)
_________________
(4)
For the three and nine months ended
September 30, 2024, IP litigation costs include a legal fees and a
settlement payment. There were no such amounts for the three and
nine months ended September 30, 2023.
(5)
For the three months ended September 30,
2024, other significant (income) expenses, net, includes site
closure costs, and fees related to non-recurring legal matters. For
the three months ended September 30, 2023, other significant
(income) expenses, net, includes fees related to a regulatory
matter and other non-recurring items. For the nine months ended
September 30, 2024, other significant (income) expenses, net,
includes site closure costs, severance costs, and fees related to
non-recurring legal matters. For the nine months ended September
30, 2023, other significant (income) expenses, net, fees related to
a regulatory matter and other non-recurring items.
Reconciliation of Segment and
Consolidated GAAP Cost of Revenue, Gross Profit and Gross Profit
Margin to Non-GAAP Adjusted Cost of Revenue, Adjusted Gross Profit
and Adjusted Gross Profit Margin (dollars in thousands)
(unaudited)
Three Months Ended September
30,
Nine Months Ended September
30,
2024
2023
% Change
2024
2023
% Change
Clinical Services:
Total revenue (GAAP)
$
145,783
$
127,553
14.3
%
$
421,706
$
365,578
15.4
%
Cost of revenue (GAAP)
$
80,058
$
73,994
8.2
%
$
234,996
$
213,032
10.3
%
Adjustments to cost of revenue(6)
(4,561
)
(4,264
)
(13,720
)
(12,792
)
Adjusted cost of revenue
(non-GAAP)
$
75,497
$
69,730
8.3
%
$
221,276
$
200,240
10.5
%
Gross profit (GAAP)
$
65,725
$
53,559
22.7
%
$
186,710
$
152,546
22.4
%
Adjusted gross profit (non-GAAP
)
$
70,286
$
57,823
21.6
%
$
200,430
$
165,338
21.2
%
Gross profit margin (GAAP)
45.1
%
42.0
%
44.3
%
41.7
%
Adjusted gross profit margin
(non-GAAP)
48.2
%
45.3
%
47.5
%
45.2
%
Advanced Diagnostics:
Total revenue (GAAP)
$
22,041
$
24,401
(9.7
)%
$
66,860
$
70,513
(5.2
)%
Cost of revenue (GAAP)
$
12,886
$
15,649
(17.7
)%
$
40,727
$
46,043
(11.5
)%
Adjustments to cost of revenue(7)
(702
)
(589
)
(2,115
)
(1,768
)
Adjusted cost of revenue
(non-GAAP)
$
12,184
$
15,060
(19.1
)%
$
38,612
$
44,275
(12.8
)%
Gross profit (GAAP)
$
9,155
$
8,752
4.6
%
$
26,133
$
24,470
6.8
%
Adjusted gross profit (non-GAAP
)
$
9,857
$
9,341
5.5
%
$
28,248
$
26,238
7.7
%
Gross profit margin (GAAP)
41.5
%
35.9
%
39.1
%
34.7
%
Adjusted gross profit margin
(non-GAAP)
44.7
%
38.3
%
42.2
%
37.2
%
Consolidated:
Total revenue (GAAP)
$
167,824
$
151,954
10.4
%
$
488,566
$
436,091
12.0
%
Cost of revenue (GAAP)
$
92,944
$
89,643
3.7
%
$
275,723
$
259,075
6.4
%
Adjustments to cost of revenue(6)(7)
(5,263
)
(4,853
)
(15,835
)
(14,560
)
Adjusted cost of revenue
(non-GAAP)
$
87,681
$
84,790
3.4
%
$
259,888
$
244,515
6.3
%
Gross profit (GAAP)
$
74,880
$
62,311
20.2
%
$
212,843
$
177,016
20.2
%
Adjusted gross profit (non-GAAP
)
$
80,143
$
67,164
19.3
%
$
228,678
$
191,576
19.4
%
Gross profit margin (GAAP)
44.6
%
41.0
%
43.6
%
40.6
%
Adjusted gross profit margin
(non-GAAP)
47.8
%
44.2
%
46.8
%
43.9
%
_______________
(6)
Clinical Services cost of revenue
adjustments for the three months ended September 30, 2024 includes
$4.3 million of amortization of acquired intangible assets and
$0.2 million of stock-based compensation. Clinical Services
cost of revenue adjustments for the three months ended September
30, 2023 includes $4.3 million of amortization of acquired
intangible assets. Clinical Services cost of revenue adjustments
for the nine months ended September 30, 2024 includes
$13.0 million of amortization of acquired intangible assets
and $0.7 million of stock-based compensation. Clinical
Services cost of revenue adjustments for the nine months ended
September 30, 2023 includes $12.8 million of amortization of
acquired intangible assets. There were no stock-based compensation
amounts recorded for the three and nine months ended September 30,
2023.
(7)
Advanced Diagnostics cost of revenue
adjustments for the three months ended September 30, 2024 includes
$0.6 million of amortization of acquired intangible assets and
$0.1 million of stock-based compensation. Advanced Diagnostics
cost of revenue adjustments for the three months ended September
30, 2023 includes $0.6 million of amortization of acquired
intangible assets. Advanced Diagnostics cost of revenue adjustments
for the nine months ended September 30, 2024 includes
$1.8 million of amortization of acquired intangible assets and
$0.3 million of stock-based compensation. Advanced Diagnostics
cost of revenue adjustments for the nine months ended September 30,
2023 includes $1.8 million of amortization of acquired
intangible assets. There were no stock-based compensation amounts
recorded for the three and nine months ended September 30,
2023.
Reconciliation of GAAP Net
Loss to Non-GAAP Adjusted Net Loss and GAAP EPS to Non-GAAP
Adjusted EPS (in thousands, except per share amounts)
(unaudited)
Three Months Ended September
30,
Nine Months Ended September
30,
2024
2023
2024
2023
Net loss (GAAP)
$
(17,699
)
$
(18,516
)
$
(63,402
)
$
(73,642
)
Adjustments to net loss, net of tax:
Amortization of intangibles
8,362
8,784
25,085
26,350
CEO transition costs
—
—
—
500
Stock-based compensation expense
8,470
7,180
25,085
17,643
Restructuring charges
1,009
2,125
4,951
9,883
IP litigation costs(8)
6,113
—
12,356
—
Other significant expenses, net(9)
677
158
4,637
532
Adjusted net income/(loss)
(non-GAAP)
$
6,932
$
(269
)
$
8,712
$
(18,734
)
Net loss per common share
(GAAP)
Diluted EPS
$
(0.14
)
$
(0.15
)
$
(0.50
)
$
(0.59
)
Adjustments to diluted loss income per
share:
Amortization of intangibles
0.07
0.07
0.20
0.21
CEO transition costs
—
—
—
—
Stock-based compensation expense
0.07
0.06
0.20
0.14
Restructuring charges
0.01
0.02
0.04
0.08
IP litigation costs(8)
0.05
—
0.10
—
Other significant expenses, net(9)
—
—
0.04
—
Rounding and impact of diluted shares in
adjusted diluted shares(10)
(0.01
)
—
(0.01
)
0.01
Adjusted diluted EPS (non-GAAP)
$
0.05
$
—
$
0.07
$
(0.15
)
Weighted average shares used in
computation of adjusted diluted EPS:
Diluted common shares (GAAP)
126,953
125,687
126,491
125,358
Dilutive effect of options, restricted
stock, and converted shares(11)(12)
—
—
—
—
Adjusted diluted shares outstanding
(non-GAAP)
126,953
125,687
126,491
125,358
_______________
(8)
For the three and nine months ended
September 30, 2024, IP litigation costs include legal fees and a
settlement payment. There were no such amounts for the three and
nine months ended September 30, 2023.
(9)
For the three months ended September 30,
2024, other significant (income) expenses, net, includes site
closure costs, and fees related to non-recurring legal matters. For
the three months ended September 30, 2023, other significant
(income) expenses, net, includes fees related to a regulatory
matter and other non-recurring items. For the nine months ended
September 30, 2024, other significant (income) expenses, net,
includes site closure costs, severance costs, and fees related to
non-recurring legal matters. For the nine months ended September
30, 2023, other significant (income) expenses, net, includes fees
related to a regulatory matter and other non-recurring items.
(10)
This adjustment is for rounding and, in
those periods in which GAAP net (loss) income is negative and
adjusted net (loss) income is positive or GAAP net (loss) income is
positive and adjusted net (loss) income is negative, also
compensates for the effects of additional diluted shares included
or excluded in adjusted diluted shares outstanding for the treasury
stock impact of outstanding stock options and restricted stock and
the if-converted impact of convertible notes.
(11)
In those periods in which GAAP net (loss)
income is negative and adjusted net (loss) income is positive, this
adjustment includes any options or restricted stock that would be
outstanding as dilutive instruments using the treasury stock method
and the weighted average number of common shares that would be
outstanding if the convertible notes 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,
until the effect of these adjustments are anti-dilutive.
(12)
In those periods in which GAAP net (loss)
income is positive and adjusted net (loss) income is negative, this
adjustment excludes any options or restricted stock that would be
outstanding as dilutive instruments using the treasury stock method
and the weighted average number of common shares that would be
outstanding if the convertible notes 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.
Reconciliation of Non-GAAP Financial
Guidance to Corresponding GAAP Measures (in thousands,
except per share amounts) (unaudited)
GAAP net loss in 2024 will be impacted by certain charges,
including: (i) expense related to the amortization of intangible
assets, (ii) stock-based compensation, (iii) restructuring charges,
and (iv) other one-time expenses. These charges have been included
in GAAP net loss available to stockholders and GAAP net loss per
share; however, they have been removed from adjusted net loss and
adjusted diluted net loss per share.
The following table reconciles the Company’s 2024 outlook for
net loss and EPS to the corresponding non-GAAP measures of adjusted
net loss, adjusted EBITDA, and adjusted diluted EPS:
Year Ended December 31,
2024
Low Range
High Range
Net loss (GAAP)
$
(81,000
)
$
(78,000
)
Amortization of intangibles
33,000
33,000
Stock-based compensation expenses
33,000
33,000
Restructuring charges
6,000
6,000
Other one-time expenses
19,000
19,000
Adjusted net income (non-GAAP)
10,000
13,000
Interest and taxes
(12,000
)
(12,000
)
Depreciation
39,000
39,000
Adjusted EBITDA (non-GAAP)
$
37,000
$
40,000
Net loss per diluted share
(GAAP)
$
(0.64
)
$
(0.61
)
Adjustments to net loss per diluted
share:
Amortization of intangibles
0.26
0.26
Stock-based compensation expenses
0.26
0.26
Restructuring charges
0.05
0.05
Other one-time expenses
0.15
0.15
Rounding and impact of diluted shares in
adjusted diluted shares(13)
—
(0.01
)
Adjusted diluted EPS(14)
(non-GAAP)
$
0.08
$
0.10
Weighted average assumed shares
outstanding in 2024:
Diluted shares (GAAP)
127,000
127,000
Options, restricted stock, and converted
shares not included in diluted shares(14)
—
—
Adjusted diluted shares outstanding
(non-GAAP)
127,000
127,000
_________________
(13)
This adjustment is for rounding and, in
those periods in which GAAP net (loss) income is negative and
adjusted net (loss) income is positive, also compensates for the
effects of additional diluted shares included in adjusted diluted
shares outstanding for the treasury stock impact of outstanding
stock options and restricted stock and the if-converted impact of
convertible notes.
(14)
For those periods in which GAAP net (loss)
income is negative and adjusted net (loss) income is positive, this
adjustment includes any options or restricted stock that would be
outstanding as dilutive instruments using the treasury stock method
and the weighted average number of shares that would be outstanding
if the convertible notes were converted into common stock on the
original issue date based on the number of days such shares would
have been outstanding in the reporting period, until the effect of
these adjustments are anti-dilutive.
Supplemental Information
Clinical(13) Tests Performed and Revenue (unaudited)
Three Months Ended September
30,
Nine Months Ended September
30,
2024
2023
% Change
2024
2023
% Change
Clinical(15):
Number of tests performed
314,564
289,637
8.6
%
927,061
870,229
6.5
%
Average revenue/test
$
463
$
440
5.2
%
$
455
$
420
8.3
%
_________________
(15)
Excludes tests and revenue for Advanced
Diagnostics.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20241105211614/en/
NeoGenomics, Inc. Kendra Sweeney Vice President, Investor
Relations and ESG Kendra.sweeney@neogenomics.com T:
+1-239-877-7474
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