NeoGenomics Reports 181% Increase in Adjusted EBITDA on 38% Revenue Growth and Achieves Profitability in 2012

NeoGenomics Reports 181% Increase in Adjusted EBITDA on 38% Revenue Growth and
                        Achieves Profitability in 2012

Provides Financial Outlook for 2013

PR Newswire

FT. MYERS, Fla., Feb. 14, 2013

FT. MYERS, Fla., Feb. 14, 2013 /PRNewswire/ --NeoGenomics, Inc. (NASDAQ:
NEO), a leading provider of cancer-focused genetic testing services today
reported its results for the fourth quarter and full year 2012.

Fiscal Year 2012 Highlights:

  o50% Test Volume Growth
  o38% Revenue Growth
  o181% Increase in Adjusted EBITDA
  oNet Income of $65K, or $0.00 per Share

Revenue for the full year 2012 was $59.9 million, a $16.4 million or 38%
increase over 2011 revenue of $43.5 million on test volume growth of 50%.
Average revenue-per-test decreased by 8% as a result of the expiration of the
TC Grandfather Clause on June 30th, which resulted in the loss of
approximately $2.6 million of revenue in the second half of the year. Despite
this major regulatory change, gross margin improved slightly to 44.8% on a
full-year basis from 44.7% in 2011. Total operating expenses increased by 29%
from 2011, primarily as a result of a $1.7 million increase in R&D
expenditures related to new test development, as well as increased personnel,
depreciation and bad debt expense associated with the revenue growth. As a
percentage of revenue, operating expenses improved to 42.8% in 2012 from 45.6%
in 2011. Net income for 2012 was $65,000 or $0.00 per share versus a net loss
of $1.2 million or ($0.03) per share in 2011. Adjusted EBITDA for the year
improved by $3.9 million or 181% to $6.0 million from $2.1 million in 2011.

Fourth Quarter 2012 Highlights:

  o35% Test Volume Growth
  o16% Revenue Growth
  o36% Increase in Adjusted EBITDA
  oNet Loss of $113K, or ($0.00) per Share

Revenue for the fourth quarter 2012 was $14.9 million, a $2.0 million or 16%
increase over fourth quarter 2011 revenue on test volume growth of 35%. Gross
profit increased to $6.5 million, a 10% increase from the fourth quarter 2011.
Total operating expenses increased by $780,000 or 14% from last year's fourth
quarter, primarily as a result of a $320,000 increase in R&D expenditures
related to new test development and increased personnel and depreciation
expense. Net loss for the quarter was ($113,000), or ($0.00) per share,
versus net income of 152,000, or $0.00 per share in last year's fourth
quarter. Adjusted EBITDA improved 36% to $1.4 million versus $1.1 million in
the prior year.

Douglas M. VanOort, the Company's Chairman and CEO commented, "We are very
proud of our full-year 2012 results. Our industry-leading 50% growth in test
volume indicates that we are clearly winning market share. Although the TC
Grandfather expiration reduced revenue by $2.6 million in the second half of
the year, we were still able to increase revenue by $16 million or 38% versus
2011 with just 18 sales representatives. As importantly, productivity and
process improvements allowed us to grow Adjusted EBITDA by 181% versus 2011,
or almost five times the revenue growth rate, and post a modest profit for the
year. Our team did a phenomenal job of delivering outstanding service,
attracting new clients, reducing costs, and introducing important new tests.
We believe we can continue to make progress in each of these important areas
in 2013."

Mr. VanOort continued, "We are also proud of our 4^th quarter results. We
continued to make substantial improvements in lab productivity and operating
efficiency in the quarter and came very close to returning to quarterly
profitability. Lab productivity increased by 15% and Adjusted EBITDA grew by
36% from last year's fourth quarter. The improvements were also significant
compared with Quarter 3, 2012 as we reduced our net loss by $800,000 with only
a $700,000 increase in revenue."

Mr. VanOort concluded, "We are particularly proud of the level of innovation
and new test development that we are accomplishing. In 2012, we introduced 29
new molecular tests, most of which use bi-directional Sanger sequencing, and
built our molecular test menu to be one of the most comprehensive in the lab
industry. We also launched 10-color flow cytometry and became the first lab
in the country to offer this exciting new service on both a global and
tech-only basis. In addition, we vastly improved our immunohistochemistry
offering with dozens of new antibodies and brought up a new digital imaging
platform. We also continued to expand our comprehensive FISH menu with
several new test offerings including a promising new test to aid in the
diagnosis of Barrett's Esophagus. We expect these new tests to drive
substantial growth in 2013, and we expect that continued R&D investments will
result in the commercialization of a number of new and innovative genetic
tests."

2013 Financial Outlook
The Company also issued preliminary guidance for the full year and fiscal
first quarter of 2013 today. For the full year 2013, the Company expects
revenue of $68 - $73 million and net income of $0.03 - $0.05 per share. For
the fiscal first quarter, the Company expects revenue of $15.3 - $16.0 million
and net income of $0.00 to $0.01 per share. This guidance is based on organic
growth in the current business and is based on the assumption that there will
be no material reimbursement changes during the balance of 2013. 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.

____________________
Adjusted EBITDA is defined as earnings before interest, taxes, depreciation,
amortization, other extraordinary or non-recurring charges, such as the costs
related to moving our California facility and non-cash stock-based
compensation expenses. See table for a reconciliation to net income.

Conference Call
The Company has scheduled a web-cast and conference call to discuss their Q4
and full year 2012 results on February 14, 2013 at 11:00 AM EST. Interested
investors should dial (800) 374-1317 (domestic) and (404) 665-9940
(international) at least five minutes prior to the call and ask for Conference
ID 97486925. An archive of the conference call will be available at
https://us.reg.meeting-stream.com/neogenomicsinc_021413/ for a period of one
year from the date of the conference call. The web-cast may be accessed on
the homepage of our website at http://www.neogenomics.com or
https://us.reg.meeting-stream.com/neogenomicsinc_021413/.

About NeoGenomics, Inc.
NeoGenomics, Inc. is a high-complexity CLIA–certified clinical laboratory that
specializes in cancer genetics testing, the fastest growing segment of the
laboratory industry. The company's testing services include cytogenetics,
fluorescence in-situ hybridization (FISH), flow cytometry,
immunohistochemistry, anatomic pathology and molecular genetic testing.
Headquartered in Fort Myers, FL, NeoGenomics has labs in Nashville, TN,
Irvine, CA, Tampa, FL and Fort Myers, FL. NeoGenomics services the needs of
pathologists, oncologists, other clinicians and hospitals throughout the
United States. For additional information about NeoGenomics, visit
http://www.neogenomics.com.

Interested parties can also access investor relations material from Hawk
Associates at http://www.hawkassociates.com or neogenomics@hawk.com and from
Zack's Investment Research at http://www.zacks.com or scr@zacks.com.

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.



NeoGenomics, Inc.



CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited, in thousands)


                                                                 

ASSETS                                             December 31,   December 31,

                                                   2012           2011
 Cash, cash equivalents                         $ 1,868        $ 2,628
 Restricted Cash                                  -              500
 Accounts Receivable (net of allowance for
doubtful
                                                   14,034         7,894
 accounts of $3,002 and $2,150,
respectively)
 Other Current Assets                             2,679          2,156
TOTAL CURRENT ASSETS                               18,581         13,178
PROPERTY AND EQUIPMENT (net of accumulated
                                                   8,607          6,642
 depreciation of $10,289 and $6,653,
respectively)
INTANGIBLE ASSETS (net of accumulated
amortization                                       2,800          -
of $182 and $-, respectively)
OTHER ASSETS                                       83             129
 TOTAL                                        $ 30,071       $ 19,949
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES                              $ 17,758       $ 11,444
LONG TERM LIABILITIES                              3,097          2,608
 TOTAL LIABILITIES                              20,855         14,052
STOCKHOLDERS' EQUITY                               9,216          5,897
 TOTAL                                         $ 30,071       $ 19,949



NeoGenomics, Inc.





CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)
(unaudited)


                                                         For the Twelve-Months
                            For the Three-Months Ended   Ended
                            December 31,
                                                         December 31,
                            2012             2011        2012         2011
NET REVENUE               $ 14,893     $     12,893    $ 59,867    $  43,484
                                                                   
COST OF REVENUE
                            8,460            7,060       33,031       24,056
GROSS PROFIT                6,433            5,833       26,836       19,428


OPERATING EXPENSES
General and                 4,097            3,530       15,843       12,331
administrative
Research and development    448              128         2,281        543
Sales and marketing         1,692            1,800       7,501        6,963
 Total operating          6,237            5,458       25,625       19,837
expenses
INCOME (LOSS) FROM
                            196              375         1,211        (409)
OPERATIONS
INTEREST AND OTHER          (309)            (223)       (1,146)      (768)
INCOME (EXPENSE) - NET
NET INCOME (LOSS) BEFORE    (113)            152         65           (1,177)
TAXES
INCOME TAXES                -                -           -            -
NET INCOME (LOSS)         $ (113)      $     152       $ 65        $  (1,177)
NET INCOME (LOSS) PER
SHARE                    $ (0.00)     $     0.00      $ 0.00      $  (0.03)

- Basic
- Diluted                 $ (0.00)     $     0.00      $ 0.00      $  (0.03)
WEIGHTED AVG NUMBER

OF SHARES OUTSTANDING       45,273           43,104      45,027       42,758

- Basic
- Diluted                   45,273           45,270      48,715       42,758





NeoGenomics, Inc.



CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited, in thousands)


                                                   For the        For the

                                                   Year Ended     Year Ended

                                                   December 31,   December 31,
                                                   2012           2011
NET CASH (USED) IN OPERATING ACTIVITIES          $ (492)        $ 69
NET CASH (USED) IN INVESTING ACTIVITIES            (3,652)        (897)
NET CASH PROVIDED BY FINANCING ACTIVITIES          3,384          2,359
 NET INCREASE (DECREASE) IN CASH AND CASH       (760)          1,531
EQUIVALENTS
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD     2,628          1,097
CASH AND CASH EQUIVALENTS, END OF PERIOD         $ 1,868        $ 2,628
SUPPLEMENTAL DISCLOSURE OF CASH FLOW
INFORMATION:
Interest paid                                    $ 1,108        $ 735
SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING AND FINANCING ACTIVITIES:
 Purchase of licenses                        $ 1,945        $ 0
 Equipment leased under capital lease and    $ 2,782        $ 2,950
equipment loans



NeoGenomics, Inc.



RECONCILIATION OF GAAP NET INCOME (LOSS) TO NON-GAAP EBITDA AND ADJUSTED
EBITDA
(Unaudited, in thousands)


                              For the Three-Months Ended   For the Years Ended
                                                           December 31,
                              December 31,
                              2012             2011        2012       2011
Net income (loss) (Per      $ (113)      $     152       $ 65      $  (1,177)
GAAP)
Adjustments to Net Loss:
 Interest expense           309              223         1,146      768
(income), net
 Amortization of            56               -           182        -
intangibles
 Depreciation               1,088            601         3,637      2,086
EBITDA                       1,340            976         5,030      1,677
Further Adjustments to
EBITDA:                       -                -           170        -

 Other non-recurring items
 Non-cash stock-based        99               79          798        457
compensation
Adjusted EBITDA (non-GAAP) $ 1,439      $     1,055     $ 5,998   $  2,134

Non – GAAP Adjusted EBITDA Definition



"Adjusted EBITDA" is defined by NeoGenomics as net income (loss) from
continuing operations before (i) interest expense, (ii) tax expense and
therapeutic discovery tax grants, (iii) depreciation and amortization expense,
(iv) non-cash stock-based compensation and warrant amortization expense and
(v) other extraordinary or non-recurring charges, such as the costs related to
moving our California facility. NeoGenomics believes that Adjusted EBITDA
provides a more consistent measurement of operating performance and trends
across reporting periods by excluding these cash and non-cash items of expense
not directly related to ongoing operations from income. Adjusted EBITDA also
assists investors in performing analysis that is consistent with financial
models developed by research analysts.



Adjusted EBITDA as defined by NeoGenomics is not a measurement under GAAP and
may differ from non-GAAP measures used by other companies. There are
limitations inherent in non-GAAP financial measures such as Adjusted EBITDA
because they exclude a variety of charges and credits that are required to be
included in a GAAP presentation, and do not therefore present the full measure
of NeoGenomics recorded costs against its net revenue. Accordingly, investors
should consider non-GAAP results together with GAAP results in analyzing
NeoGenomics financial performance.





NeoGenomics, Inc.



Supplemental Information on Customer Requisitions Received and Tests Performed
(Unaudited, in thousands, except test and requisition data)
                                                                 
                                 
                                                                 
                    For the                                                 
                                                                 
                    Three-Months For the                                     
                                                         For the  For the
                    Ended        Three-Months                               
                                                         Year     Nine-Months
                    December 31, Ended         % Inc                          % Inc
                    2012                       (Dec)     Ended    Ended       (Dec)
                                 December 31,
                                 2011                    December December
                                                         31,      31,
                                                         2012     2011
Requisitions Rec'd  19,971       14,240        40.2%     73,773   49,235      49.8%
(cases)
Number of Tests     30,513       22,557        35.3%     114,606  76,288      50.2%
Performed
Avg. # of Tests /   1.53         1.58          (3.5%)    1.55     1.55        0.3%
Requisition
Total Testing       $ 14,893     $ 12,893      15.5%     $        $ 43,484    37.7%
Revenue                                                  59,867
Avg                 $ 745.74     $ 905.43      (17.6)%   $ 811.50 $ 883.20    (8.1)%
Revenue/Requisition
Avg Revenue/Test    $ 488.09     $ 571.59      (14.6)%   $ 522.37 $ 570.00    (8.4)%



SOURCE NeoGenomics, Inc.

Website: http://www.neogenomics.org
Contact: Steven C. Jones, Director of Investor Relations of NeoGenomics, Inc.,
+1-239-325-2001, sjones@neogenomics.com; or Ms. Julie Marshall of Hawk
Associates, Inc., +1-305-451-1888, neogenomics@hawkassociates.com