Thanks for this subject Caly. NGNM is one of my largest positions. For a young company they are off to a great start.
(COMTEX)
B: NeoGenomics, Inc. Announces the Achievement of Monthly Profitability, Financial
FT. MYERS, Fla., March 14, 2006 /PRNewswire-FirstCall via COMTEX/ --
NeoGenomics, Inc. (OTC
Bulletin Board: NGNM) today announced its results for the fourth quarter and
full year of fiscal 2005. Significant accomplishments during the fourth
quarter and year included the following:
Fourth Quarter 2005 Accomplishments:
* 453% year-over-year increase in revenues in Q4 05 vs. Q4 04
* 34% sequential increase in revenues in Q4 05 vs. Q3 05
* Avg. Revenue/Case increased 12.5% to $685.75 in Q4 05 from $609.31 in
Q3 05
* 44% of cases ordered more than one test per case in Q4 05 vs. 38% of
cases in Q3 05
* Avg. Revenue/Test increased 8.3% to $476.46 in Q4 05 from $440.09 in
Q3 05
Full Year 2005 Accomplishments:
* 238% increase in revenues during FY 2005 vs. FY 2004
* Case volume increased 162% to 2,982 cases in FY 2005 from 1,139 cases
in FY 2004
* Avg. Revenue/Case increased 29.0% to $632.23 in FY 2005 from $489.97 in
FY 2004
* Test volume increased 254% to 4,082 tests in FY 2005 from 1,152 tests
in FY 2004
* 37% of Cases ordered more than one test per case in 2005 vs. 1% of
cases in 2004
Robert Gasparini, the Company's President, stated, "I am delighted with
the progress we continue to make, and I am pleased to report that the Company
achieved the all important milestone of becoming net income profitable in
February of 2006. During 2005, the substantial investments we made in
infrastructure, human resources and the sales force began to yield significant
dividends. Our national expansion strategy has gained considerable momentum,
and by December of 2005 approximately 60% of our revenue was derived from
outside of the State of Florida. This is a substantial accomplishment
considering that 100% of our revenue was derived from Florida sources at the
end of 2004. We now service clients in 16 states and this number continues to
grow each quarter. Customers continue to be attracted to our exceptional
turn-around times and customer service."
Mr. Gasparini went on to say, "During the fourth quarter, we deliberately
chose to slow our top line growth rate a little so that we could further add
to our infrastructure. These adjustments have now largely been completed, and
we have begun to scale our business quite rapidly during the first quarter of
2006. Our CancerLink(TM) Laboratory Information System (LIS), which we
announced during the third quarter of 2005, has proven to be the "killer
application" that we hoped it would be and is resulting in substantial
increases in our productivity and customer satisfaction. In addition, our new
breast, bladder and cervical cancer testing services have been warmly embraced
by both new and existing customers."
Mr. Gasparini concluded by saying, "We are planning several new
initiatives during 2006 which should help to take our business to the next
level. We are in the final stages of our strategic planning on the design and
location of a second laboratory facility outside of the State of Florida to
provide for geographic diversity and additional capacity. Several locations
are under consideration and we plan to make a final determination by the end
of the second quarter. In addition, we are currently considering several
strategic initiatives with our larger customers to further increase our
volumes. Lastly, we are in the process of formalizing an investor relations
program, which we believe will help to provide more information to investors
about our business. We appreciate the patience our shareholders have
displayed while we organize a truly scaleable business."
Steven Jones, the Company's acting Principal Financial Officer and a
Director, stated, "During 2005, we began to see considerable economies of
scale. Our gross margin increased to 37% of revenue from a deficit position
in 2004. In addition, the number of cases in which we performed more than one
test increased dramatically to 37% of cases in 2005 versus just 1% of cases in
2004. This increase was driven primarily by our new product offerings and is
leading to higher gross margins. Moving forward, we expect our gross margins
to continue to increase slowly, and we believe that 45% gross margins are
attainable by the end of 2006. Although our general and administrative
expenses increased by 104% to $1,447,000 in FY 2005 from $711,000 in FY 2004,
we have now largely completed the hiring of our core management team which was
the largest driver of this increase. Moving forward, we expect increases in
our overhead expenditures to be more in line with industry averages for the
rate of revenue growth we achieve. For the year, our net loss increased by
approximately 22% to $997,000, or $0.04/share. This was largely a result of
the increased general and administrative expenses in FY 2005 associated with
preparing our business to be able to continue to scale during FY 2006 and a
non-recurring asset impairment charge of $50,000.
Mr. Jones went on to say, "During the fourth quarter of 2005, we increased
revenues by approximately 453% to $751,000 from $136,000 during the fourth
quarter of 2004, largely as a result of a greater number of tests being
performed for our customers. During the fourth quarter average revenue per
test increased approximately 8.3% to $476.46 versus $440.09 during the fourth
quarter of 2004. General and administrative expenses increased in the fourth
quarter by approximately 90% to $501,000 from $263,000 in the fourth quarter
of FY 2004. This increase was largely as a result of preparing our business
to be able to continue to scale during FY 2006. During the fourth quarter of
2005, we also took a $50,000 asset impairment charge to reduce the carrying
value of a mass spectrometer to more accurately reflect our estimate of the
current market value of this piece of equipment. Our net loss of $361,000 for
the fourth quarter of FY 2005 increased by approximately 16%, or $51,000,
versus a net loss of $310,000 during the fourth quarter of 2004, largely as a
result of the $50,000 non-recurring asset impairment charge.
Mr. Jones concluded by saying, "Recently we have been asked by several
investors and research analysts to provide some guidance for FY 2006 and FY
2007. Given our current rate of growth, this is exceptionally difficult to
predict with any accuracy. However, in keeping with our goal of formalizing
an investor relations program, we are providing the following guidance for
investors. Based on our current rate of growth, we are currently planning on
doubling our staff by year-end, which we believe will allow us to triple our
test volumes from 4,082 tests in 2005 to approximately 12,000 tests in 2006.
Providing we are able to do this, we believe that we can achieve FY 2006
revenues of approximately $5.0 - $6.0 million and net income of approximately
$400,000 - $500,000. FY 2007 is even more difficult to predict, however,
provided that we can continue to scale our human resource infrastructure, we
believe that we can double our test volumes again to approximately 24,000
tests in 2007. If we are able to achieve this level of test volumes in 2007,
we believe that we can attain approximately $10.0 - $12.0 million of revenue
and approximately $1.0 - $1.2 million of net income. Of course, we reserve
the right to adjust this guidance at any time based on the ongoing execution
of our business plan, and by no means should these estimates be construed as a
guarantee of future performance."
The attached financial results, including a reconciliation of non-cash and
non-recurring expenses, should be read in conjunction with the Company's
Annual Report on Form 10-KSB, which will be filed with the SEC by March 31,
2006.
About NeoGenomics, Inc.
NeoGenomics, Inc. is a high-complexity CLIA-certified clinical laboratory
that offers cancer genetic diagnostic testing services including cytogenetics,
fluorescence in-situ hybridization (FISH), flow cytometry and molecular
genetic testing. NeoGenomics is headquartered in Fort Myers, FL and services
the needs of oncologists, pathologists, urologists, hospitals, and other
reference laboratories not offering genetic testing throughout the United
States. For additional information about NeoGenomics, please visit our
website at www.neogenomics.org.
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, including, but not limited to, the Company
has incurred significant losses since its inception and has experienced
negative operating margins and negative cash flows from operations, any
adverse effect or limitations caused by governmental regulations, the
company's ability to attract and retain qualified personnel, to initiate and
develop client relationships, to gain market acceptance of service offerings,
as well as other risks described from time to time in the company's filings
with the Securities and Exchange Commission. Although the Company has used its
best efforts to be accurate in making those forward-looking statements, there
can be no assurance that the assumptions made by management will materialize.
In addition, the information set forth in the Company's Form 10-KSB for the
fiscal year ended December 31, 2004, and the soon to be filed Form 10-KSB for
the fiscal year ended December 31, 2005 describe certain additional risks and
uncertainties that could cause actual results to vary materially from the
future results covered in such forward-looking statements. The Company
undertakes no obligation to publicly revise or update the forward looking
statements to reflect new information, subsequent events or otherwise.
NeoGenomics, Inc.
CONSOLIDATED BALANCE SHEET AS OF
December 31, 2005
(unaudited)
ASSETS
CURRENT ASSETS:
Cash $ 10,944
Accounts receivable (net of allowance for doubtful
accounts of $37,807) 551,099
Inventory 60,000
Other 58,509
Total current assets 680,552
FURNITURE AND EQUIPMENT (net of accumulated
depreciation of $261,311) 381,556
OTHER ASSETS 17,996
TOTAL $ 1,080,104
LIABILITIES AND STOCKHOLDERS' DEFICIT
CURRENT LIABILITIES:
Accounts payable $ 463,636
Deferred Revenue 100,000
Accrued compensation 42,547
Accrued and other liabilities 59,665
Total current liabilities 665,848
LONG TERM LIABILITIES - Due to Affiliates
(net of discount of $90,806) 1,409,194
TOTAL LIABILITIES 2,075,042
STOCKHOLDERS' DEFICIT:
Common stock, $.001 par value, (100,000,000 shares
authorized; 22,836,754 shares issued and outstanding) 22,837
Additional paid-in capital 10,005,308
Deferred stock compensation (2,685)
Accumulated deficit (11,020,398)
Total stockholders' deficit (994,938)
TOTAL $ 1,080,104
NeoGenomics, Inc.
CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)
For the For the For the For the
Twelve- Twelve- Three- Three-
Months Months Months Months
Ended Ended Ended Ended
December December December December
31, 2005 31, 2004 31, 2005 31, 2004
REVENUE $1,885,324 $558,074 $750,895 $135,820
COST OF REVENUE 1,188,402 576,867 504,708 159,734
GROSS (DEFICIT)
PROFIT 696,922 (18,793) 246,187 (23,914)
OPERATING EXPENSES:
Selling, general and
administrative 1,447,286 710,771 500,928 263,262
Interest expense 196,796 89,421 55,951 22,600
Asset impairment
charge 50,000 - 50,000 -
Total operating
expenses 1,694,082 800,192 606,879 285,862
NET INCOME (LOSS) $(997,160) $(818,985) $(360,692) $(309,776)
NET INCOME (LOSS)
PER SHARE -
Basic and Diluted $(0.04) $(0.04) $(0.02) $(0.01)
WEIGHTED AVERAGE NUMBER
OF SHARES OUTSTANDING
- Basic and
Diluted 22,264,435 19,901,028 22,601,478 21,539,416
NeoGenomics, Inc.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited)
FY 2005 FY 2004
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss $ (997,160) $ (818,985)
Adjustments to reconcile net loss to
net cash used in operating activities:
Depreciation 123,998 90,583
Impairment of fixed assets 50,000 -
Amortization of credit facility
warrants and debt issue costs 57,068 -
Amortization of deferred stock
compensation 20,779 13,680
Other Amortization 29,576 -
Stock based compensation and consulting 65,098 6,224
Provision for bad debts 132,633 28,959
Changes in assets and liabilities, net:
(Increase) Decrease in accounts
receivable, net (627,241) (21,589)
(Increase) Decrease in Inventory (44,878) (4,529)
(Increase) Decrease in other
current assets (54,529) (9,495)
(Increase) Decrease in deposits 300 4,540
Increase (Decrease) in deferred
revenues (10,000) -
Increase (Decrease) in accounts
payable and accrued and
other liabilities 352,305 52,479
NET CASH USED IN OPERATING
ACTIVITIES (902,052) (658,133)
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property and equipment, net (117,628) (85,932)
NET CASH USED IN INVESTING
ACTIVITIES (117,628) (85,932)
CASH FLOWS FROM FINANCING ACTIVITIES:
Advances from affiliates, net 760,000 91,334
Debt issue costs (53,587) -
Issuances of common stock for cash, net of
transaction expenses 211,662 740,228
NET CASH PROVIDED BY FINANCING
ACTIVITIES 918,075 831,562
NET INCREASE IN CASH AND CASH EQUIVALENTS (101,604) 87,497
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR 112,548 25,051
CASH AND CASH EQUIVALENTS, END OF YEAR $ 10,944 $ 112,548
SUPPLEMENTAL DISCLOSURE OF CASH FLOW
INFORMATION:
Interest paid $ 136,936 $ 119,777
Income taxes paid $ - $ -
SOURCE NeoGenomics, Inc.
Investor Relations, NeoGenomics, Inc., Mr. Steven Jones, +1-239-598-0964,
sjones@neogenomics.org
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