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Interpace Diagnostics Group Reports Third Quarter 2017 Financial Results, Business Progress and Recent AccomplishmentsQ3-2017 Net Revenues of Over $4 Million Growing 27% Over Prior Year Quarter Conference Call Monday November 13, 2017 at 8:30 a.m. ET PARSIPPANY, N.J., Nov. 13, 2017 (GLOBE NEWSWIRE) -- Interpace Diagnostics Group, Inc. (Nasdaq:IDXG) (“Interpace” or “the Company”), a fully integrated commercial company that provides clinically useful molecular diagnostic tests and pathology services for improved patient diagnosis and management, today announced financial results and business progress for the third quarter ended September 30, 2017 and year-to-date, as well as recent accomplishments. Our revenue growth and cost controls continued in the third quarter and year-to-date in 2017. Net sales of $4.2 million for the third quarter of 2017 were a 27% improvement over the prior year comparable quarter. Accordingly, on an annualized pro forma basis, our current Net Revenue run rate is almost $17 million. Net sales year-to-date were $11.5 million, a 16% improvement over the prior year-to-date comparable period. Importantly, Q3 represents our fourth straight quarter of sequential Net Revenue growth and our first quarter of Net Revenues in excess of $4 million. Our Net Loss for the third quarter of 2017 was $3.3 million as compared to $7.5 million for the comparable quarter of the prior year and the year-to-date Net Loss of $7.2 million was significantly less than the $14.6 million Net Loss for the comparable prior year-to-date period. We also continued to improve our balance sheet and liquidity. From the beginning of the year through September 30, 2017 we raised gross proceeds of $27.9 million. Our cash position at September 30, 2017 was $11.7 million, our stockholders’ equity was $36.4 million, and we no longer have long-term debt. As of November 9, 2017, our cash balance was approximately $16.5 million. In addition to our improved financial performance, we also made significant operating progress during the third quarter, as follows:
“I am very pleased with our financial and operating performance in Q3-2017 and for the year to date. Most importantly, Q3-2017 resulted in test volume growth in both our GI and Endocrine franchises, and this is especially important considering the hurricane damage seen in several of our major markets. Q3 also represented the completion of our transition of operations to a stand-alone molecular diagnostics company,” added Jack Stover, Interpace’s President & CEO. Q3 and Year-to-Date 2017 Financial Performance
Adjusted EBITDA (in the attached schedule), which we believe is a meaningful supplemental disclosure that may be indicative of how management and our Board of Directors evaluate Company performance, adjusts Income or Loss from Continuing Operations for non-cash charges such as depreciation & amortization, asset impairment, loss on extinguishment, and the change in fair value of contingent consideration. Accordingly, Adjusted EBITDA for the three-month periods ended September 30, 2017 and 2016 was $(1.9) million and $(3.2) million, respectively. Adjusted EBITDA for the nine months ended September 30, 2017 and 2016 was $(5.5) million and $(7.4) million, respectively, due primarily to the reduction in Loss from Continuing Operations in 2017. About Interpace Diagnostics Group, Inc. Interpace is a a fully integrated commercial 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; ThyGenX®, 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. Interpace’s mission is to provide personalized medicine through molecular diagnostics and innovation to advance patient care based on rigorous science. For more information, please visit Interpace’s website at www.interpacediagnostics.com About Thyroid Nodules, ThyGenX and ThyraMIR testing According to the American Thyroid Association, approximately 15% to 30% of the 525,000 thyroid fine needle aspirations (FNAs) performed on an annual basis in the U.S. are indeterminate for malignancy based on standard cytological evaluation, and thus are candidates for ThyGenX and ThyraMIR. ThyGenX and ThyraMIR reflex testing yields high predictive value in determining the presence and absence of cancer in thyroid nodules. The combination of both tests can improve risk stratification and surgical decision-making when standard cytopathology does not provide a clear diagnosis for the presence of cancer. ThyGenX utilizes state-of-the-art next-generation sequencing (NGS) to identify more than 100 genetic alterations associated with papillary and follicular thyroid carcinomas, the two most common forms of thyroid cancer. ThyraMIR is the first microRNA gene expression classifier. MicroRNAs are small, non-coding RNAs that bind to messenger RNA and regulate expression of genes involved in human cancers, including every subtype of thyroid cancer. ThyraMIR measures the expression of 10 microRNAs. Both ThyGenX and ThyraMIR are covered by both Medicare and multiple Commercial insurers. About Pancreatic Cysts and PancraGEN PancraGEN is a pancreatic cyst molecular test that, by using a small sample of pancreatic cyst fluid, can aid in pancreatic cancer risk assessment. PancraGEN is 90% accurate, according to clinical studies, enabling effective risk stratification of patients. Pancreatic cancer is often difficult to diagnose in early stages and typically spreads rapidly with signs and symptoms appearing when the cancer is significantly advanced. Because of this, and that complete surgical removal of the pancreas is not possible, pancreatic cancer is considered a leading cause of cancer deaths. About RespriDX RespriDX compares the genomic fingerprint of one lung tumor to that of a second synchronous or metasynchronous lung tumor using a robust panel of 25 DNA markers. The test is performed on standard formalin fixed, paraffin embedded biopsy tissue. Use of RespriDX to help stage the second lung tumor significantly impacts cancer treatment of the patient. 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 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 and 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: Interpace Diagnostics Paul Kuntz Non-GAAP Financial Measures In addition to the United States generally accepted accounting principles, or GAAP, results provided throughout this document, 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, and other non-cash expenses including asset impairment costs, loss on extinguishment of debt, goodwill and asset impairment, 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. Conference Call As previously announced, Interpace will hold a conference call Monday, November 13, 2017 at 8:30 a.m. (ET) to discuss financial and operational results for the third quarter and year to date ended September 30, 2017. Details as follows: The live webcast and subsequent replay may be accessed by visiting Interpace’s website www.interpacediagnostics.com. Alternatively, please call 1-866-564-2842 (U.S.) or 1-323-794-2094 (international). The conference ID number is 6169888. 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.
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