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Globe Newswire 19-Mar-2019 4:05 PM
Business Progress and Recent Accomplishments Highlighted and Discussed Further on Conference Call
PARSIPPANY, NJ, March 19, 2019 (GLOBE NEWSWIRE) -- Interpace Diagnostics Group, Inc. (NASDAQ:IDXG) ("Interpace" or the "Company") today announced financial results for the full year and fourth quarter ended December 31, 2018, along with business progress and recent accomplishments.
Topline highlights include:
Jack Stover, President and CEO of Interpace Diagnostics, said, "This past year was a terrific year for Interpace as our thyroid (endocrine) franchise and our pancreatic (gastrointestinal) franchise both continued to grow as anticipated." Mr. Stover continued, "With our recent completed public offering, the absorption of most of Rosetta Genomics' business late in the year and our reduced cash spend, we are confident in our positioning and trajectory for 2019 and beyond."
Full Year and Fourth Quarter 2018 Financial Results and Performance
Recent Business Highlights
Our most important business progress for 2018 and 2019 year-to-date includes the following:
Product and Pipeline Progress
Our product development and pipeline progress is principally focused in the following areas:
We are also focused on the following business strategies:
Conference Call
Interpace will hold a conference call on Tuesday, March 19, 2019, at 4:30 p.m. ET to discuss financial and operational results for the year and fourth quarter ended December 31, 2018, and answer questions. Details are as follow:
Date and Time: Tuesday, March 19, 2019, at 4:30 p.m. ET | |
Dial-in Number (Domestic): (877) 407 – 0312 | |
Dial-in Number (International): +1 (201) 389 – 0899 | |
Confirmation Number: 136 88 229 | |
Webcast Access: https://webcasts.eqs.com/interpacedia20190319 |
The webcast replay will be available on the Company's website approximately two hours following completion of the call and archived on the Company's website for 90 days.
About Interpace Diagnostics Group
Interpace is a fully integrated commercial and bioinformatics company that provides clinically useful molecular diagnostic tests and pathology services for evaluating risk of cancer by leveraging the latest technology in personalized medicine for improved patient diagnosis and management. The Company currently has four commercialized molecular tests and one test in a clinical evaluation process (CEP); PancraGEN® for the diagnosis and prognosis of pancreatic cancer from pancreatic cysts; ThyGeNEXT® for the diagnosis of thyroid cancer from thyroid nodules utilizing a next generation sequencing assay; ThyraMIR® for the diagnosis of thyroid cancer from thyroid nodules utilizing a proprietary gene expression assay; and RespriDx™ that differentiates lung cancer of primary vs. metastatic origin. BarreGEN® for Barrett's Esophagus, is currently being "soft launched" with key opinion leaders as we continue to gather data on this assay that will assist us in seeking favorable reimbursement as well as important clinical information. Barrett's Esophagus is a rapidly growing diagnosis that affects over three million people in the US and over time can progress to esophageal cancer. The Company's data base includes data from over 50,000 patients who have been tested using the Company's current products, including over 25,000 molecular tests for thyroid nodules. Interpace has been designated by the 2018 edition of CIO Applications as one of the top 10 companies for providing bioinformatics solutions. Interpace's mission is to provide personalized medicine through molecular diagnostics, innovation and data to advance patient care based on rigorous science. For more information, please visit Interpace's website at www.interpacediagnostics.com.
Forward Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934 and the Private Securities Litigation Reform Act of 1995, relating to the Company's future financial and operating performance. The Company has attempted to identify forward looking statements by terminology including "believes," "estimates," "anticipates," "expects," "plans," "projects," "intends," "potential," "may," "could," "might," "will," "should," "approximately" or other words that convey uncertainty of future events or outcomes to identify these forward-looking statements. These statements are based on current expectations, assumptions and uncertainties involving judgments about, among other things, future economic, competitive and market conditions and future business decisions, all of which are difficult or impossible to predict accurately and many of which are beyond the Company's control. These statements also involve known and unknown risks, uncertainties and other factors that may cause the Company's actual results to be materially different from those expressed or implied by any forward-looking statement. Known and unknown risks, uncertainties and other factors include, but are not limited to, the Company's history of losses, the Company's ability to adequately finance the business, the market's acceptance of its molecular diagnostic tests, its ability to retain or secure reimbursement, its ability to secure additional business and generate higher profit margins through sales of its molecular diagnostic tests, in-licensing or other means, projections of future revenues, growth, gross profit and anticipated internal rate of return on investments and its ability to maintain its NASDAQ listing. Additionally, all forward-looking statements are subject to the "Risk Factors" detailed from time to time in the Company's most recent Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and other SEC filings.. Because of these and other risks, uncertainties and assumptions, undue reliance should not be placed on these forward-looking statements. In addition, these statements speak only as of the date of this press release and, except as may be required by law, the Company undertakes no obligation to revise or update publicly any forward-looking statements for any reason.
CONTACTS:
Investor Relations - Edison Group
Joseph Green
(646) 653-7030
jgreen@edisongroup.com
Non-GAAP Financial Measures
In addition to the United States generally accepted accounting principles, or GAAP, results provided throughout this press release, Interpace has provided certain non-GAAP financial measures to help evaluate the results of its performance. We believe that these non-GAAP financial measures, when presented in conjunction with comparable GAAP financial measures, are useful to both management and investors in analyzing the Company's ongoing business and operating performance. We believe that providing the non-GAAP information to investors, in addition to the GAAP presentation, allows investors to view the Company's financial results in the way that management views financial results.
In this document, we discuss Adjusted EBITDA, a non-GAAP financial measure. Adjusted EBITDA is a metric used by management to measure cash flow of the ongoing business. Adjusted EBITDA is defined as income or loss from continuing operations, plus depreciation and amortization, non-cash stock based compensation, interest and taxes, mark to market on warrant liability, and other non-cash expenses including loss on extinguishment of debt, and change in fair value of contingent consideration. The table below includes a reconciliation of this non-GAAP financial measure to the most directly comparable GAAP financial measure.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
Three Months Ended | ||||||||||||||||
December 31, | Years Ended | |||||||||||||||
(Unaudited) | December 31, | |||||||||||||||
2018 | 2017 | 2018 | 2017 | |||||||||||||
Revenue, net | $ | 5,834 | $ | 4,370 | $ | 21,896 | $ | 15,897 | ||||||||
Cost of revenue | 2,607 | 1,639 | 10,197 | 7,358 | ||||||||||||
Gross Profit | 3,227 | 2,731 | 11,699 | 8,539 | ||||||||||||
Sales and marketing | 2,286 | 2,060 | 8,421 | 6,567 | ||||||||||||
Research and development | 596 | 259 | 2,124 | 1,461 | ||||||||||||
General and administrative | 2,518 | 2,723 | 8,499 | 9,153 | ||||||||||||
Amortization expense | 813 | 813 | 3,252 | 3,253 | ||||||||||||
Change in fair value of contingent consideration | 1,522 | 174 | 1,522 | (5,602 | ) | |||||||||||
Total operating expenses | 7,735 | 6,029 | 23,818 | 14,832 | ||||||||||||
Operating loss | (4,508 | ) | (3,298 | ) | (12,119 | ) | (6,293 | ) | ||||||||
Interest expense | (83 | ) | - | (331 | ) | (433 | ) | |||||||||
Loss on extinguishment of debt | - | - | - | (4,278 | ) | |||||||||||
Other expense, net | 405 | (1,713 | ) | 263 | (2,128 | ) | ||||||||||
Loss from continuing operations before tax | (4,186 | ) | (5,011 | ) | (12,187 | ) | (13,132 | ) | ||||||||
(Benefit) provision for income taxes | (3 | ) | (55 | ) | 18 | (395 | ) | |||||||||
Loss from continuing operations | (4,183 | ) | (4,956 | ) | (12,205 | ) | (12,737 | ) | ||||||||
Income (loss) from discontinued operations, net of tax | $ | 146 | $ | (51 | ) | $ | 16 | $ | 521 | |||||||
Net loss | $ | (4,037 | ) | $ | (5,007 | ) | $ | (12,189 | ) | $ | (12,216 | ) | ||||
Basic (loss) income per share of common stock: | ||||||||||||||||
From continuing operations | $ | (0.15 | ) | $ | (0.18 | ) | $ | (0.43 | ) | $ | (0.81 | ) | ||||
From discontinued operations | 0.01 | (0.01 | ) | 0.00 | 0.03 | |||||||||||
Net loss per basic share of common stock | $ | (0.14 | ) | $ | (0.19 | ) | $ | (0.43 | ) | $ | (0.77 | ) | ||||
Diluted (loss) income per share of common stock: | ||||||||||||||||
From continuing operations | $ | (0.15 | ) | $ | (0.18 | ) | $ | (0.43 | ) | $ | (0.81 | ) | ||||
From discontinued operations | 0.01 | (0.01 | ) | 0.00 | 0.03 | |||||||||||
Net loss per diluted share of common stock | $ | (0.14 | ) | $ | (0.19 | ) | $ | (0.43 | ) | $ | (0.77 | ) | ||||
Weighted average number of common shares and common share equivalents outstanding: | ||||||||||||||||
Basic | 28,608 | 26,874 | 28,155 | 15,766 | ||||||||||||
Diluted | 28,608 | 26,874 | 28,155 | 15,766 |
Selected Balance Sheet Data
($ in thousands)
December 31, | December 31, | |||||||
2018 | 2017 | |||||||
Cash and cash equivalents | $ | 6,068 | $ | 15,199 | ||||
Total current assets | 17,721 | 19,808 | ||||||
Total current liabilities | 8,492 | 8,091 | ||||||
Total assets | 48,442 | 53,598 | ||||||
Total liabilities | 15,504 | 13,729 | ||||||
Total stockholders equity | 32,938 | 39,869 |
Selected Cash Flow Data
($ in thousands)
For the Years Ended | ||||||||
December 31, | ||||||||
2018 | 2017 | |||||||
Net loss | $ | (12,189 | ) | $ | (12,216 | ) | ||
Net cash used in operations | $ | (8,673 | ) | $ | (15,263 | ) | ||
Net cash used in investing activities | (449 | ) | (29 | ) | ||||
Net cash (used in) provided by financing activities | (9 | ) | 29,889 | |||||
Change in cash and cash equivalents | (9,131 | ) | 14,597 | |||||
Cash and equivalents, Beginning | 15,199 | 602 | ||||||
Cash and equivalents, Ending | $ | 6,068 | $ | 15,199 |
Reconciliation of Adjusted EBITDA (Unaudited)
($ in thousands)
Quarters Ended | Years Ended | |||||||||||||||
December 31, | December 31, | |||||||||||||||
2018 | 2017 | 2018 | 2017 | |||||||||||||
Loss from continuing operations | $ | (4,183 | ) | $ | (4,956 | ) | $ | (12,205 | ) | $ | (12,737 | ) | ||||
Depreciation and amortization | 884 | 876 | 3,464 | 3,690 | ||||||||||||
Stock-based compensation | 706 | 583 | 2,270 | 1,060 | ||||||||||||
Taxes | (3 | ) | (55 | ) | 18 | (395 | ) | |||||||||
Interest expense | 83 | - | 331 | 433 | ||||||||||||
Mark to market on warrant liability | (372 | ) | (260 | ) | (112 | ) | 141 | |||||||||
Loss on extinguishment of debt | - | - | - | 4,278 | ||||||||||||
Warrant expense | - | 2,016 | - | 2,016 | ||||||||||||
Change in fair value of contingent consideration | 1,522 | 174 | 1,522 | (5,602 | ) | |||||||||||
Adjusted EBITDA | $ | (1,363 | ) | $ | (1,622 | ) | $ | (4,712 | ) | $ | (7,116 | ) |