Fourth-Quarter 2019 Highlights:

Consolidated revenue increased 39.7% to $106.9 million

Clinical Services revenue increased 41.7% to $93.4 million

Pharma Services revenue increased 27.5% to $13.5 million

Pharma Services backlog increased 31.8% to $130.3 million

Company issues 2020 financial guidance

FT. MYERS, FL / ACCESSWIRE / February 27, 2020 / NeoGenomics, Inc. (NEO), a leading provider of cancer-focused genetic testing services, today announced fourth-quarter and full-year 2019 results for the period ended December 31, 2019.

"Our fourth quarter performance concludes a very successful year for NeoGenomics in which our company grew by nearly 50% and our competitive position strengthened dramatically", said Douglas M. VanOort, the Company's Chairman and CEO.

"In the fourth quarter, our Clinical Services Division once again reported excellent volume growth of 27% driven by market share gains and the addition of Genoptix. We are particularly pleased that combined molecular and Next Generation Sequencing test volume continued to grow at rates approximating 50%, and that average-revenue-per-test improved by over 10% from last year. Pharma Services Division growth was also excellent with strong revenue gains, a record amount of newly-signed contracts, and a current backlog of approximately $130 million in signed contracts."

"Perhaps more importantly, we are very excited about the opportunities in front of us. We've made significant investments in a variety of growth initiatives over the past year, including our recent acquisition of the Oncology Division of Human Longevity, Inc., investments in Next Generation Sequencing, and Informatics. We believe that NeoGenomics has significant, sustainable competitive advantages and is well positioned for growth in each of the markets in which we operate."

Fourth-Quarter Results

Consolidated revenue for the fourth quarter of 2019 was $106.9 million, an increase of 40% over the same period in 2018. Clinical test volume(1) increased by 27% year over year. Average revenue per clinical test ("revenue per test") increased by 11% to $370, primarily due to the acquisition of Genoptix and the impact of favorable test mix and growth in next-generation sequencing. Clinical Services revenue was $93.4 million, resulting in a 42% increase over the fourth quarter of 2018. Pharma Services revenue was $13.5 million, which represented a 27% increase over the fourth quarter of 2018.

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Gross profit improved by $12.8 million, or 34.5%, compared to the fourth quarter of 2018, to $49.9 million. Gross margin decreased by approximately 181 basis points year-over-year to 46.7%. Gross margin decreases are primarily due to the integration of Genoptix. Average cost of goods sold per clinical test ("cost per test") increased by 14% year over year, reflecting the impact of the Genoptix acquisition, including integration-related activities, and test mix. The increase was partially offset by continued efficiencies as we integrate Genoptix.

Operating expenses increased by $13.3 million, or 39%, compared to the fourth quarter of 2018, primarily due to the Genoptix acquisition, investments in research and development, and growth initiatives.

Net income for the fourth quarter was $6.3 million compared to net income of $0.4 million for the fourth quarter of 2018.

Adjusted EBITDA(2) was $13.6 million for the fourth quarter, a 5% improvement from the prior year. Adjusted Net Income(2) was $10.9 million compared to $5.5 million in the fourth quarter of 2018.

Cash and cash equivalents were $173.0 million and days sales outstanding were 81 days at the end of the fourth quarter.

Full Year Results

Consolidated revenues for 2019 were $408.8 million, an increase of 48% over 2018 primarily due to continued volume growth and the acquisition of Genoptix. Net income for 2019 was $8.0 million compared to $2.6 million in 2018. Adjusted EBITDA(2) for 2019 was $57.2 million, a 31% increase from the prior year. Adjusted Net Income(2) for 2019 was $32.3 million compared to $17.9 million in 2018.

2020 Financial Outlook:

The Company also issued 2020 guidance today.

(in millions)

Guidance

Consolidated revenue

$

464 - $474

Net (loss)/income

$

8 - $13

Adjusted EBITDA(2)

$

60 - $65

Please also refer to the tables reconciling forecasted Adjusted EBITDA, Adjusted Net Income and Adjusted Diluted EPS to their closest generally accepted accounting principles ("GAAP") equivalent in the section of this report entitled "Reconciliation of Non-GAAP Financial Guidance to Corresponding GAAP Measures."

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.

(1) Clinical tests exclude tests performed for Pharma Services customers.

(2) The Company has provided adjusted financial information that has not been prepared in accordance with GAAP, including Adjusted EBITDA, Adjusted Net Income, and Adjusted Diluted EPS. Each of these measures is defined in the section of this report entitled "Use of Non-GAAP Financial Measures." See also the tables reconciling such measures to their closest GAAP equivalent.

Conference Call

The Company has scheduled a web-cast and conference call to discuss their fourth quarter and full year results on Thursday, February 27, 2020 at 8:30 AM EST. Interested investors should dial (844) 602-0380 (domestic) and (862) 298-0970 (international) at least five minutes prior to the call. A replay of the conference call will be available until 8:30 AM EDT on March 5, 2020, and can be accessed by dialing (877) 481-4010 (domestic) and (919) 882-2331 (international). The playback conference ID Number is 58948. The web-cast may be accessed under the Investor Relations section of our website at http://www.neogenomics.com. An archive of the web-cast will be available until 08:30 AM EDT on May 27, 2020.

About NeoGenomics, Inc.

NeoGenomics, Inc. specializes in cancer genetics testing and information services. The Company provides one of the most comprehensive oncology-focused testing menus in the world for physicians to help them diagnose and treat cancer. The Company's Pharma Services Division serves pharmaceutical clients in clinical trials and drug development.

Headquartered in Fort Myers, FL, NeoGenomics operates CAP accredited and CLIA certified laboratories in Ft. Myers and Tampa, Florida; Aliso Viejo, Carlsbad, Fresno and San Diego, California; Houston, Texas; Atlanta, Georgia; Nashville, Tennessee; and CAP accredited laboratories in Rolle, Switzerland, and Singapore. NeoGenomics serves the needs of pathologists, oncologists, academic centers, hospital systems, pharmaceutical firms, integrated service delivery networks, and managed care organizations throughout the United States, and pharmaceutical firms in Europe and Asia. For additional information about NeoGenomics, visit http://www.neogenomics.com/.

Forward Looking Statements

Certain information contained in this press release constitutes forward-looking statements for purposes of the safe harbor provisions of The Private Securities Litigation Reform Act of 1995. 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 as the result of the Company's ability to continue gaining new customers, offer new types of tests, integrate its acquisitions and otherwise implement its business plan, as well as additional factors discussed under the heading "Risk Factors" and elsewhere in the Company's Annual Report on Form 10-K filed with the SEC on February 26, 2019, amended by a 10K/A filed with the SEC on May 8, 2019. As a result, this press release should be read in conjunction with the Company's periodic filings with the SEC. In addition, it is the Company's practice to make information about the Company available by posting copies of its Company Overview Presentation from time to time on the Investor Relations section of its website at http://ir.neogenomics.com/.

Forward-looking statements represent the Company's estimates only as of the date such statements are made (unless another date is indicated) and should not be relied upon as representing the Company's estimates as of any subsequent date. While the Company may elect to update forward-looking statements at some point in the future, it specifically disclaims any obligation to do so, even if its estimates change.

For further information, please contact:NeoGenomics, Inc.William BonelloDirector, Investor Relations(239)690-4238 (w) (239)284-4314 (m)bill.bonello@neogenomics.com

NeoGenomics, Inc.

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited, in thousands)

December 31,

2019

December 31,

2018

ASSETS

Cash and cash equivalents

$

173,016

$

9,811

Accounts receivable, net

94,242

76,919

Inventories

14,405

8,650

Other current assets

9,075

8,288

Total current assets

290,738

103,668

Property and equipment (net of accumulated depreciation of $68,809 and $50,127, respectively)

64,188

60,888

Operating lease right-of-use assets

26,492

-

Intangible assets, net

126,640

140,029

Goodwill

198,601

197,892

Other assets

2,847

2,538

TOTAL ASSETS

$

709,506

$

505,015

LIABILITIES AND STOCKHOLDERS' EQUITY

Accounts payable and other current liabilities

$

50,091

$

46,753

Short-term portion of financing obligations

10,432

14,172

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NeoGenomics Reports 40% Revenue Growth to $107 Million in the Fourth Quarter - Yahoo Finance