Fourth Quarter Revenue Increased 12% to $156
million; Full Year Revenue Increased 16% to $592 million
NeoGenomics, Inc. (Nasdaq: NEO) (the “Company”), a
leading provider of oncology testing and global contract research
services, today announced fourth quarter and full year 2023 results
for the period ended December 31, 2023.
Highlights
- Fourth quarter consolidated revenue increased 12% to $156
million; Full year consolidated revenue increased 16% to $592
million
- Fourth quarter Clinical Services revenue increased 20% to
$130 million; Full year Clinical Services revenue increased 18% to
$496 million
- Fourth quarter Advanced Diagnostics revenue decreased 17% to
$25 million; Full year Advanced Diagnostics revenue increased 6% to
$96 million
- Fourth quarter net loss decreased 37% to $14 million; Full
year net loss decreased 39% to $88 million
- Fourth quarter Adjusted EBITDA was positive $9 million, an
increase of $11 million; Full year Adjusted EBITDA was positive $3
million, an increase of $51 million
“NeoGenomics’ fourth quarter and full year 2023 results show the
momentum and strength of our business as we continued to deliver
long-term, sustainable growth on our way to becoming the leading
oncology laboratory,” said Chris Smith, CEO of NeoGenomics. “We
believe 2024 will be an exciting year as we continue to invest in
our people and technologies to support consistent revenue growth
and profitability, while allowing us to better serve our patients
and providers.”
Fourth Quarter Results
Consolidated revenue for the fourth quarter of 2023 was $156
million, an increase of 12% over the same period in 2022. Clinical
Services revenue of $130 million was an increase year-over-year of
20%. Clinical test volume(1) increased by 6% year-over-year.
Average revenue per clinical test (“revenue per test”) increased by
13% to $441. Advanced Diagnostics revenue decreased by 17% to $25
million compared to the fourth quarter of 2022.
Consolidated gross profit for the fourth quarter of 2023 was
$67.6 million, an increase of 18.9% compared to the fourth quarter
of 2022. This increase was primarily due to an increase in revenue.
Consolidated gross profit margin, including amortization of
acquired intangible assets, was 43.5%. Adjusted Gross Profit
Margin(2), excluding amortization of acquired intangible assets,
was 46.7%.
Operating expenses for the fourth quarter of 2023 were $86
million, an increase of $3 million, or 4%, compared to the fourth
quarter of 2022. This increase primarily reflects an increase in
professional fees, an increase in payroll and payroll-related
costs, including non-cash stock-based compensation expense, and an
increase in travel expenses. This increase was partially offset by
a decrease in recruiting expenses and a decrease in credit card
fees.
Net loss for the quarter was $14 million compared to net loss of
$23 million for the fourth quarter of 2022.
Adjusted EBITDA(2) was positive $9 million compared to negative
$1 million in the fourth quarter of 2022. Adjusted Net Income(2)
was $4 million compared to Adjusted Net Loss(2) of $7 million in
the fourth quarter of 2022.
Cash and cash equivalents and marketable securities totaled $415
million at quarter end.
Full Year Results
Consolidated revenue for 2023 was $592 million, an increase of
16% over 2022. This increase was primarily driven by an increase in
test volume, a more favorable test mix in our Clinical Services
segment, an increase in average unit price due to strategic
reimbursement initiatives, and growth in our Advanced Diagnostics
segment, primarily due by increased volume and higher billings
across its portfolio. Net loss for 2023 was $88 million compared to
net loss of $144 million in 2022. Adjusted EBITDA(2) for 2023 was
positive $3 million compared to negative $48 million in 2022.
Adjusted net loss(2) for 2023 was $15 million compared to adjusted
net loss of $70 million in 2022.
2024 Financial Guidance
The Company also issued 2024 guidance(3) today (in
millions).
FY 2023
FY 2024 Guidance
YOY % Change from FY
2023
Actual
Low
High
Low
High
Consolidated revenue
$592
$650
$660
10%
12%
Net loss
$(88)
$(72)
$(66)
18%
25%
Adjusted EBITDA
$3
$21
$24
600%
700%
(1)
Clinical testing excludes requisitions,
tests, revenue and costs of 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, 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 fourth quarter and full year 2023 results on Tuesday,
February 20, 2024 at 4:30 PM EDT. Interested investors should dial
(888) 506-0062 (domestic) and (973) 528-0011 (international) at
least five minutes prior to the call. The participant access code
provided for this call is 822624. The webcast will be archived and
available for replay shortly after the conclusion of the call. It
may be accessed under the Investor Relations section of our website
at ir.neogenomics.com.
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 San Diego,
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 its 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
(Unaudited, in
thousands)
As of December 31,
2023
2022
ASSETS
Current Assets
Cash and cash equivalents
$
342,488
$
263,180
Marketable securities, at fair value
72,715
174,809
Accounts receivable, net
131,227
119,711
Inventories
24,156
24,277
Prepaid assets
17,987
15,237
Other current assets
8,239
8,077
Total current assets
596,812
605,291
Property and equipment (net of accumulated
depreciation of $158,211 and $131,930, respectively)
92,012
102,499
Operating lease right-of-use assets
91,769
96,109
Intangible assets, net
373,128
408,260
Goodwill
522,766
522,766
Other assets
4,742
5,109
Total non-current assets
1,084,417
1,134,743
Total assets
$
1,681,229
$
1,740,034
LIABILITIES AND STOCKHOLDERS’
EQUITY
Current liabilities
Accounts payable and other current
liabilities
$
90,694
$
83,278
Current portion of equipment financing
obligations
—
70
Current portion of operating lease
liabilities
5,610
6,584
Total current liabilities
96,304
89,932
Long-term liabilities
Convertible senior notes, net
538,198
535,322
Operating lease liabilities
67,871
68,952
Deferred income tax liabilities, net
24,285
34,750
Other long-term liabilities
13,034
13,055
Total long-term liabilities
643,388
652,079
Total liabilities
739,692
742,011
Stockholders’ equity
Total stockholders’ equity
941,537
998,023
Total liabilities and stockholders’
equity
$
1,681,229
$
1,740,034
NeoGenomics, Inc.
CONDENSED CONSOLIDATED
STATEMENTS OF OPERATIONS
(Unaudited, in thousands,
except per share amounts)
Three Months Ended
December 31,
Years Ended December
31,
2023
2022
2023
2022
NET REVENUE
Clinical Services
$
130,058
$
108,166
$
495,636
$
418,754
Advanced Diagnostics
25,494
30,539
96,007
90,974
Total net revenue
155,552
138,705
591,643
509,728
COST OF REVENUE
87,964
81,880
347,039
321,832
GROSS PROFIT
67,588
56,825
244,604
187,896
Operating expenses:
General and administrative
59,758
57,855
243,101
243,356
Research and development
7,127
6,675
27,309
30,326
Sales and marketing
18,072
17,142
70,842
67,321
Restructuring charges
1,205
1,536
11,088
4,516
Total operating expenses
86,162
83,208
352,340
345,519
LOSS FROM OPERATIONS
(18,574
)
(26,383
)
(107,736
)
(157,623
)
Interest income
(4,845
)
(2,677
)
(16,902
)
(6,075
)
Interest expense
1,681
1,817
6,907
7,581
Other expense (income), net
(124
)
1
(644
)
213
Loss before taxes
(15,286
)
(25,524
)
(97,097
)
(159,342
)
Income tax benefit
(960
)
(2,837
)
(9,129
)
(15,092
)
NET LOSS
$
(14,326
)
$
(22,687
)
$
(87,968
)
$
(144,250
)
NET LOSS PER SHARE
Basic
$
(0.11
)
$
(0.18
)
$
(0.70
)
$
(1.16
)
Diluted
$
(0.11
)
$
(0.18
)
$
(0.70
)
$
(1.16
)
WEIGHTED AVERAGE COMMON SHARES
OUTSTANDING
Basic
125,929
124,714
125,502
124,217
Diluted
125,929
124,714
125,502
124,217
NeoGenomics, Inc.
CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS
(Unaudited, in
thousands)
Years Ended December
31,
2023
2022
CASH FLOWS FROM OPERATING
ACTIVITIES
Net loss
$
(87,968
)
$
(144,250
)
Adjustments to reconcile net loss to net
cash provided by operating activities:
Depreciation
37,450
35,372
Amortization of intangibles
35,133
34,058
Non-cash stock-based compensation
24,633
24,672
Non-cash operating lease expense
9,235
9,775
Amortization of convertible debt discount
and debt issue costs
2,876
2,839
Loss on disposal of assets
292
2,858
Gain on sale of assets held for sale
—
(2,048
)
Impairment of long-lived assets
1,703
718
Other adjustments
186
1,714
Changes in assets and liabilities,
net:
(25,493
)
(31,701
)
Net cash used in operating activities
$
(1,953
)
$
(65,993
)
CASH FLOWS FROM INVESTING
ACTIVITIES
Purchases of marketable securities
(6,756
)
(97,605
)
Proceeds from sales and maturities of
marketable securities
112,215
116,915
Purchases of property and equipment
(28,752
)
(30,891
)
Proceeds from assets held for sale
—
12,098
Net cash provided by investing
activities
$
76,707
$
517
CASH FLOWS FROM FINANCING
ACTIVITIES
Repayment of equipment financing
obligations
(70
)
(758
)
Issuance of common stock, net
4,624
12,587
Net cash provided by financing
activities
$
4,554
$
11,829
Net change in cash and cash
equivalents
$
79,308
$
(53,647
)
Cash and cash equivalents, beginning of
year
263,180
316,827
Cash, cash equivalents and restricted
cash, end of year
$
342,488
$
263,180
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 and expense,
(ii) tax (benefit) or expense, (iii) depreciation and amortization
expense, (iv) non-cash stock-based compensation expense, and, if
applicable in a reporting period, (v) acquisition and integration
related expenses, (vi) CEO transition costs, (vii) restructuring
costs, and (viii) other significant or non-operating 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 amortization expense of acquired intangible
assets.
“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) non-cash
amortization of intangible assets, (ii) non-cash stock-based
compensation expense, and, if applicable in a reporting period,
(iii) acquisition and integration related expenses, (iv) CEO
transition costs, (v) restructuring costs, and (vi) other
significant or non-operating 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
(Unaudited, in
thousands)
Three Months Ended
December 31,
Years Ended December
31,
2023
2022
2023
2022
Net loss (GAAP)
$
(14,326
)
$
(22,687
)
$
(87,968
)
$
(144,250
)
Adjustments to net loss:
Interest income
(4,845
)
(2,677
)
(16,902
)
(6,075
)
Interest expense
1,681
1,817
6,907
7,581
Income tax benefit
(960
)
(2,837
)
(9,129
)
(15,092
)
Depreciation
9,578
9,478
37,450
35,372
Amortization of intangibles
8,783
8,588
35,133
34,058
EBITDA (non-GAAP)
(89
)
(8,318
)
(34,509
)
(88,406
)
Further adjustments to EBITDA:
Acquisition and integration related
expenses
—
—
—
2,479
CEO transition costs
—
—
500
4,518
Non-cash stock-based compensation
expense
6,990
4,662
24,633
24,672
Restructuring charges
1,205
1,536
11,088
4,516
Other significant expenses (income),
net(4)
1,242
952
1,774
4,211
Adjusted EBITDA (non-GAAP)
$
9,348
$
(1,168
)
$
3,486
$
(48,010
)
_________________
(4)
For the three months ended December 31,
2023, other significant (income) expenses, net, includes fees
related to a regulatory matter and other non-recurring items. For
the three months ended December 31, 2022, other significant
(income) expenses, net, includes fees related to a regulatory
matter and other non-recurring items. For the year ended December
31, 2023, other significant (income) expenses, net, includes fees
related to a regulatory matter and other non-recurring items. For
the year ended December 31, 2022, other significant (income)
expenses, net, includes fees related to a regulatory matter, moving
costs, a gain on the sale of a building 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
(Unaudited, dollars in
thousands)
Three Months Ended December
31,
Years Ended December
31,
2023
2022
% Change
2023
2022
% Change
Clinical Services:
Total revenue (GAAP)
$
130,058
$
108,166
20.2
%
$
495,636
$
418,754
18.4
%
Cost of revenue (GAAP)
$
74,027
$
64,180
15.3
%
$
287,059
$
261,742
9.7
%
Adjustments to cost of revenue(5)
(4,489
)
(4,264
)
(17,280
)
(17,054
)
Adjusted cost of revenue
(non-GAAP)
$
69,538
$
59,916
16.1
%
$
269,779
$
244,688
10.3
%
Gross profit (GAAP)
$
56,031
$
43,986
27.4
%
$
208,577
$
157,012
32.8
%
Adjusted gross profit
(non-GAAP)
$
60,520
$
48,250
25.4
%
$
225,857
$
174,066
29.8
%
Gross profit margin (GAAP)
43.1
%
40.7
%
42.1
%
37.5
%
Adjusted gross profit margin
(non-GAAP)
46.5
%
44.6
%
45.6
%
41.6
%
Advanced Diagnostics:
Total revenue (GAAP)
$
25,494
$
30,539
(16.5
)%
$
96,007
$
90,974
5.5
%
Cost of revenue (GAAP)
$
13,937
$
17,700
(21.3
)%
$
59,980
$
60,090
(0.2
)%
Adjustments to cost of revenue(6)
(590
)
(590
)
(2,358
)
(2,358
)
Adjusted cost of revenue
(non-GAAP)
$
13,347
$
17,110
(22.0
)%
$
57,622
$
57,732
(0.2
)%
Gross profit (GAAP)
$
11,557
$
12,839
(10.0
)%
$
36,027
$
30,884
16.7
%
Adjusted gross profit
(non-GAAP)
$
12,147
$
13,429
(9.5
)%
$
38,385
$
33,242
15.5
%
Gross profit margin (GAAP)
45.3
%
42.0
%
37.5
%
33.9
%
Adjusted gross profit margin
(non-GAAP)
47.6
%
44.0
%
40.0
%
36.5
%
Consolidated:
Total revenue (GAAP)
$
155,552
$
138,705
12.1
%
$
591,643
$
509,728
16.1
%
Cost of revenue (GAAP)
$
87,964
$
81,880
7.4
%
$
347,039
$
321,832
7.8
%
Adjustments to cost of revenue(5)(6)
(5,079
)
(4,854
)
(19,638
)
(19,412
)
Adjusted cost of revenue
(non-GAAP)
$
82,885
$
77,026
7.6
%
$
327,401
$
302,420
8.3
%
Gross profit (GAAP)
$
67,588
$
56,825
18.9
%
$
244,604
$
187,896
30.2
%
Adjusted gross profit
(non-GAAP)
$
72,667
$
61,679
17.8
%
$
264,242
$
207,308
27.5
%
Gross profit margin (GAAP)
43.5
%
41.0
%
41.3
%
36.9
%
Adjusted gross profit margin
(non-GAAP)
46.7
%
44.5
%
44.7
%
40.7
%
_________________
(5)
Clinical Services cost of revenue
adjustments for the three months ended December 31, 2023 and 2022
include $4.5 million and $4.3 million, respectively, of
amortization of acquired intangible assets. Clinical Services cost
of revenue adjustments for the years ended December 31, 2023 and
2022 include $17.3 million and $17.1 million, respectively of
amortization of acquired intangible assets.
(6)
Advanced Diagnostics cost of revenue
adjustments for the three months ended December 31, 2023 and 2022
include $0.6 million of amortization of acquired intangible assets.
Advanced Diagnostics cost of revenue adjustments for the years
ended December 31, 2023 and 2022 include $2.4 million of
amortization of acquired intangible assets.
Reconciliation of GAAP Net
Loss to Non-GAAP Adjusted Net Loss and
GAAP EPS to Non-GAAP Adjusted
EPS
(Unaudited, in thousands,
except per share amounts)
Three Months Ended
December 31,
Years Ended December
31,
2023
2022
2023
2022
Net loss (GAAP)
$
(14,326
)
$
(22,687
)
$
(87,968
)
$
(144,250
)
Adjustments to net loss:
Amortization of intangibles
8,783
8,588
35,133
34,058
Acquisition and integration related
expenses
—
—
—
2,479
CEO transition costs
—
—
500
4,518
Non-cash stock-based compensation
expense
6,990
4,662
24,633
24,672
Restructuring charges
1,205
1,536
11,088
4,516
Other significant expenses (income),
net(7)
1,242
952
1,774
4,211
Adjusted net (loss) income
(non-GAAP)
$
3,894
$
(6,949
)
$
(14,840
)
$
(69,796
)
Net loss per diluted share
(GAAP)
Diluted EPS
$
(0.11
)
$
(0.18
)
$
(0.70
)
$
(1.16
)
Adjustments to net loss per diluted
share:
Amortization of intangibles
0.07
0.07
0.28
0.27
Acquisition and integration related
expenses
—
—
—
0.02
CEO transition costs
—
—
—
0.04
Non-cash stock-based compensation
expense
0.06
0.04
0.20
0.20
Restructuring charges
0.01
0.01
0.09
0.04
Other significant expenses (income),
net(7)
0.01
0.01
0.01
0.03
Rounding and impact of diluted shares in
adjusted diluted share(8)
(0.01
)
(0.01
)
—
—
Adjusted diluted EPS (non-GAAP)
$
0.03
$
(0.06
)
$
(0.12
)
$
(0.56
)
Weighted average shares used in
computation of
adjusted diluted EPS:
Diluted common shares (GAAP)
125,929
124,714
125,502
124,217
Dilutive effect of options, restricted
stock, and converted shares(9)(10)
—
—
—
—
Adjusted diluted shares outstanding
(non-GAAP)
125,929
124,714
125,502
124,217
_________________
(7)
For the three months ended December 31,
2023, other significant (income) expenses, net, includes fees
related to a regulatory matter and other non-recurring items. For
the three months ended December 31, 2022, other significant
(income) expenses, net, includes fees related to a regulatory
matter and other non-recurring items. For the year ended December
31, 2023, other significant (income) expenses, net, includes fees
related to a regulatory matter and other non-recurring items. For
the year ended December 31, 2022, other significant (income)
expenses, net, includes fees related to a regulatory matter, moving
costs, a gain on the sale of a building and other non-recurring
items.
(8)
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.
(9)
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.
(10)
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
(Unaudited, in thousands,
except per share amounts)
GAAP net loss in 2024 will be impacted by
certain charges, including: (i) expense related to the amortization
of intangible assets, (ii) non-cash stock based compensation and
(iii) restructuring charges. 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)
$
(72,000
)
$
(65,000
)
Amortization of intangibles
35,000
35,000
Non-cash stock-based compensation
27,000
26,000
Restructuring charges
7,000
6,000
Acquisition and integration related
expenses
—
—
Other one-time expenses
3,000
3,000
Adjusted net loss (non-GAAP)
—
5,000
Interest and taxes
(20,000
)
(20,000
)
Depreciation
41,000
39,000
Adjusted EBITDA (non-GAAP)
$
21,000
$
24,000
Net loss per diluted share
(GAAP)
$
(0.57
)
$
(0.51
)
Adjustments to net loss per diluted
share:
Amortization of intangibles
0.28
0.28
Non-cash stock-based compensation
expenses
0.21
0.20
Restructuring charges
0.06
0.05
Other one-time expenses
0.02
0.02
Rounding and impact of diluted shares in
adjusted diluted shares(11)
—
—
Adjusted diluted EPS(12)
(non-GAAP)
$
—
$
0.04
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(12)
—
—
Adjusted diluted shares outstanding
(non-GAAP)
127,000
127,000
_________________
(11)
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.
(12)
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 December
31,
Years Ended December
31,
2023
2022
% Change
2023
2022
% Change
Clinical(13):
Number of tests performed
294,850
278,089
6.0
%
1,165,079
1,088,055
7.1
%
Average revenue/test
$
441
$
389
13.4
%
$
425
$
385
10.4
%
_________________
(13)
Excludes tests and revenue for Advanced
Diagnostics.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240220629069/en/
NeoGenomics, Inc. Kendra Sweeney Vice President, Investor
Relations and ESG kendra.sweeney@neogenomics.com T:
+1-239-877-7474
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