NeoGenomics Reports Revenue of $15.6 Million, Adjusted EBITDA of $1.8 Million and Earnings per share of $0.01 for the Second

NeoGenomics Reports Revenue of $15.6 Million, Adjusted EBITDA of $1.8 Million
         and Earnings per share of $0.01 for the Second Quarter 2013

PR Newswire

FT. MYERS, Fla., July 31, 2013

FT. MYERS, Fla., July 31, 2013 /PRNewswire/ --NeoGenomics, Inc. (NASDAQ:
NEO), a leading provider of cancer-focused genetic testing services today
reported its results for the second quarter of 2013.

Second Quarter 2013 Highlights:

  oEarnings per share of $0.01 per share on net income of $273k
  oAdjusted EBITDA^(1) of $1.8 million
  oTest volume growth of 12.7% 
  oContinued expansion of industry-leading molecular testing menu

Revenue for the second quarter was $15.6 million, essentially unchanged from
second quarter 2012 revenue. Test volume increased by 12.7%. Year over year
revenue growth was impacted by the $1.3 million reduction in quarterly revenue
that resulted from the expiration of the Medicare Technical Component
Grandfather Clause (TCGF) in July 2012. Revenue growth was also impacted by
decreases in reimbursement for molecular testing which were finalized by CMS
in the second quarter.

Average revenue per test declined 11.3% from last year, primarily as a result
of the TCGF expiration. This decrease was partially offset by a 9.1%
improvement in average cost of goods sold per test. As a result, gross profit
margin decreased slightly to 45.9% in the second quarter from 47.2% in the
prior year. Total operating expenses increased by 1.9%, from last year's
second quarter, primarily as a result of increases in R&D expenses.

Net income for the quarter was $273,000, or $0.01 per share, versus net income
of $551,000, or $0.01 per share, in last year's second quarter. Adjusted
EBITDA^(1) of $1.8 million for the quarter was largely unchanged from last
year's second quarter despite the approximately $1.6 million reduction in
quarterly profit resulting from the TCGF expiration and molecular
reimbursement changes.

Douglas M. VanOort, the Company's Chairman and CEO commented, "Our quarterly
results were adversely impacted by Medicare's molecular reimbursement changes
and resulted in approximately $275,000 less revenue than we would have
otherwise reported. In addition, approximately $150,000 of expected clinical
trials work was delayed into the third quarter. These items reduced revenue
from our original expectations for the second quarter."

Mr. VanOort continued, "On the positive side, test volume continued to grow
with a record number of new clients starting in June. Test volume grew
despite a slight increase in in-sourcing of certain tests by a few clients.
We also continued to strengthen our Sales team by adding five experienced
sales professionals. We now have a total of 26 sales representatives covering
the country. We expect our sales productivity to be strong for the second
half of the year."

"In addition, our steadfast focus on continuously improving laboratory
operations and driving down costs is yielding results. A great number of our
people are involved in Best Practice Teams, "Kaizen" events, and analysis and
implementation of automation initiatives. We have also increased our
investment in Information Technology and expect to make significant
improvements in electronic ordering and other methods to increase
efficiencies. As a result of these initiatives, we drove a 9.1% reduction in
average cost-per-test over the last year and maintained gross margins of
around 46% despite an 11.3% reduction in average revenue per test. We
finished the second quarter with the lowest average cost-per-test we have ever
reported."

Mr. VanOort concluded, "Innovation continues to be an important focus for
NeoGenomics. In the past six quarters, we developed and launched over 60 new
molecular tests and now have the most comprehensive oncology-focused molecular
test menu in America. Work also continues on our new plasma and urine-based,
NeoSCORE^TM prostate cancer test. There are two goals for this test, to
diagnose the presence of cancer in patients with BPH (benign prostatic
hyperplasia), and to distinguish high-grade from low-grade prostate cancer in
patients with prostate cancer. We are excited about the potential for this
test and currently expect to launch it in the first half of 2014."

Third Quarter and Full-Year 2013 Financial Outlook:

We expect revenue of $15.8 - $16.4 million and earnings of $0.00 - $0.01 per
share in Quarter 3. For the full year 2013, we expect revenue to be $63-$66
million with earnings per share of $.01 - $.04. 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 web-cast and conference call to discuss their
second quarter results on July 31, 2013 at 11:00 AM EDT. Interested investors
should dial (877) 407-8035 (domestic) and (201) 689-8035 (international) at
least five minutes prior to the call and ask for Conference ID Number 418008.
A replay of the conference call will be available until 11:59 PM on August 14,
2013 and can be accessed by dialing (877) 660-6853 (domestic) and (201)
612-7415 (international). The playback Conference ID Number is 418008. The
web-cast may be accessed under the Investor Relations section of our website
at www.neogenomics.com or
http://www.investorcalendar.com/IC/CEPage.asp?ID=171229. An archive of the
web-cast will be available until 11:59 PM on October 31, 2013.

About NeoGenomics, Inc.

NeoGenomics, Inc. is a high-complexity CLIA–certified clinical laboratory that
specializes in cancer genetics diagnostic testing, the fastest growing segment
of the laboratory industry. The company's testing services include
cytogenetics, fluorescence in-situ hybridization (FISH), flow cytometry,
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.

(1) Adjusted EBITDA is defined as earnings before interest, taxes,
depreciation, amortization, and non-cash stock-based compensation expenses.
See table for a reconciliation to net income.





NeoGenomics, Inc.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited, in thousands)
                                                                 

ASSETS                                                 June 30,   December 31,

                                                       2013       2012
 Cash, cash equivalents                             $ 4,636    $ 1,868
 Accounts Receivable (net of allowance for doubtful
                                                       16,005     14,034
 accounts of $4,147 and $3,002, respectively)
 Other Current Assets                                 2,522      2,679
TOTAL CURRENT ASSETS                                   23,163     18,581
PROPERTY AND EQUIPMENT (net of accumulated
                                                       8,437      8,607
 depreciation of $12,341 and $10,289,
respectively)
INTANGIBLE ASSETS (net of accumulated amortization    2,689      2,800
of $293 and $182, respectively)
OTHER ASSETS                                           170        83
 TOTAL                                            $ 34,459   $ 30,071
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES                                  $ 12,056   $ 17,758
LONG TERM LIABILITIES                                  2,963      3,097
 TOTAL LIABILITIES                                  15,019     20,855
STOCKHOLDERS' EQUITY                                   19,440     9,216
 TOTAL                                             $ 34,459   $ 30,071





NeoGenomics, Inc.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)
(unaudited)
                          For the Three-Months        For the Six-Months Ended
                          Ended
                          June 30,                    June 30,
                          2013            2012        2013            2012
NET REVENUE             $ 15,603     $    15,611    $ 31,260      $   30,771
                                                                   
COST OF REVENUE
                          8,446           8,244       16,857          16,261
GROSS PROFIT              7,157           7,367       14,403          14,510


OPERATING EXPENSES
General and               4,064           4,066       8,239           7,816
administrative
Research and              616             528         1,451           1,025
development
Sales and marketing       1,972           1,934       3,903           3,969
 Total operating        6,652           6,528       13,593          12,810
expenses
INCOME FROM
                          505             839         810             1,700
OPERATIONS
INTEREST AND OTHER        (232)           (288)       (517)           (546)
INCOME (EXPENSE) - NET
INCOME BEFORE TAXES       273             551         293             1,154
INCOME TAXES              -               -           17              -
NET INCOME              $ 273        $    551       $ 276         $   1,154
NET INCOME PER SHARE
                        $ 0.01       $    0.01      $ 0.01        $   0.03
- Basic
- Diluted               $ 0.01       $    0.01      $ 0.01        $   0.02
WEIGHTED AVG NUMBER

OF SHARES OUTSTANDING     48,793          44,954      47,529          44,827

- Basic
- Diluted                 53,744          47,650      52,297          47,501





NeoGenomics, Inc.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited, in thousands)
                                           For the            For the

                                           Six Months Ended   Six Months Ended

                                           June 30, 2012      June 30, 2012
NET CASH PROVIDED BY OPERATING           $ 533              $ 16
ACTIVITIES
NET CASH USED IN INVESTING ACTIVITIES      (608)              (2,050)
NET CASH PROVIDED BY FINANCING             2,843              1,972
ACTIVITIES
 NET INCREASE (DECREASE) IN CASH AND
CASH                                      2,768              (62)
EQUIVALENTS
CASH AND CASH EQUIVALENTS, BEGINNING OF    1,868              2,628
PERIOD
CASH AND CASH EQUIVALENTS, END OF PERIOD $ 4,636            $ 2,566
SUPPLEMENTAL DISCLOSURE OF CASH FLOW
INFORMATION:
Interest paid                            $ 495              $ 529
 Income taxes paid                    $ 17               $ -
SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING AND FINANCING ACTIVITIES:
 Purchase of licenses                $ -                $ 1,945
 Equipment leased under capital      $ 1,402            $ 2,140
lease and equipment loans





NeoGenomics, Inc.
RECONCILIATION OF GAAP NET INCOME TO NON-GAAP EBITDA AND ADJUSTED EBITDA
(Unaudited, in thousands)
                         For the Three-Months Ended    For the Six-Months
                                                       Ended
                         June 30,                      June 30,
                         2013             2012         2013          2012
Net income (Per     $    273        $     551       $  276      $    1,154
GAAP)
Adjustments to Net
Income:
 Interest expense      232              288          517           546
(income), net
 Amortization of       55               56           111           70
intangibles
 Income tax            -                -            17            -
expense
 Depreciation          1,063            856          2,052         1,605
EBITDA                  1,623            1,751        2,973         3,375
Further Adjustments
to EBITDA:
 Non-cash
stock-based              202              192          646           343
 compensation
Adjusted EBITDA    $    1,825      $     1,943     $  3,619    $    3,718
(non-GAAP)
Non – GAAP Adjusted EBITDA Definition
"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 and warrant
amortization expense and (v) other extraordinary or non-recurring charges.
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      For the                                     
                                                        For the    For the
                    Three-Months Three-Months                               
                                                        Six-Months Six-Months
                    Ended        Ended         % Inc                          % Inc
                                               (Dec)    Ended      Ended      (Dec)
                    June 30,     June 30, 2012
                    2013                                June 30,   June 30,
                                                        2013       2012
Requisitions Rec'd  20,875       18,561        12.5%    41,479     35,495     16.9%
(cases)
Number of Tests     32,519       28,846        12.7%    64,607     55,778     15.8%
Performed
Avg. # of Tests /   1.56         1.55          0.2%     1.56       1.57       (0.9)%
Requisition
Total Testing       $ 15,603     $ 15,611      (0.1)%   $ 31,260  $ 30,771  1.6%
Revenue
Avg.                $ 747        $ 841         (11.1)%  $ 754      $ 867      (13.1)%
Revenue/Requisition
Avg. Revenue/Test   $ 480        $ 541         (11.3)%  $ 484      $ 552      (12.3)%
Total Cost of       $ 8,446      $ 8,244       (2.5)%   $ 16,857   $ 16,261  3.7%
Revenue
Avg.                $ 405        $ 444         (8.9)%   $ 406      $ 458      (11.4)%
Cost/Requisition
Avg. Cost/Test      $ 260        $ 286         (9.1)%   $ 261      $ 292      (10.6)%



SOURCE NeoGenomics, Inc.

Website: http://www.neogenomics.org
Contact: NeoGenomics, Inc., Steven C. Jones, Director of Investor Relations,
(239) 325-2001, sjones@neogenomics.com, or Hawk Associates, Inc., Ms. Julie
Marshall, (305) 451-1888, neogenomics@hawkassociates.com
 
Press spacebar to pause and continue. Press esc to stop.