Q1 Revenue of $10.3 million; a 4% increase year-over-year
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Q1 Test volume up 10% year over year to record levels
PARSIPPANY, NJ, May 09, 2024 (GLOBE NEWSWIRE) -- Interpace Biosciences, Inc. (“Interpace” or the “Company”) (OTCQX: IDXG) today announced financial results for the first quarter ended March 31, 2024 and provided a business and financial update.
First quarter Net Revenue was $10.3 million. Operating expenses for the first quarter were approximately 2% lower than the same period of 2023. Income from continuing operations in the first quarter of 2024 was $0.6 million. an improvement from the prior year quarter of $0.4 million. “The Company achieved record test volume and cash collections, while reducing operating expenses, in the first quarter of 2024. Test volume, test revenue, and cash collections increased over the prior year quarter, driven by increased volume and collection initiatives,” said Chris McCarthy, Chief Financial Officer. “The cash position of the Company allowed for additional investments in our salesforce, while simultaneously improving income from continuing operations. This also supported additional principal payments on our long-term debt agreement, continuing to improve the Company’s balance sheet.” McCarthy added.
“Q1 2024 represented record testing volume for the Company, resulting in the achievement of continued profitability and positive cash flow,” stated Tom Burnell, President and CEO. “Continued adoption of the Company’s proprietary molecular diagnostics tests (ThyGeNEXT® + ThyraMIR®v2 and PancraGEN®) by physicians and medical professionals has fueled the continued growth trajectory of the Company.” Burnell added, Q1 2024 marked the fifteenth consecutive quarter of year-over-year volume growth for the Company”.
First Quarter and 2024 Financial Performance
For the First Quarter of 2024 as Compared to the First Quarter of 2023
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Net Revenue was $10.3 million, an increase of 4% from $9.8 million for the prior year quarter
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Gross Profit percentage was 59% compared to 61% for the prior year quarter
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Operating income was $0.9 million vs operating income of $0.7 million in the prior year quarter
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Income from continuing operations was $0.6 million vs income from continuing operations of $0.4 million in the prior year quarter
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Adjusted EBITDA was $1.0 million vs $1.2 million in the prior year quarter
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Q1 2024 cash collections totaled $10.2 million
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March 31, 2024 cash balance was $2.8 million vs March 31, 2023 cash balance of $5.6 million, driven by $3.1 million additional long-term debt paydown
About Interpace Biosciences
Interpace Biosciences is an emerging leader in enabling personalized medicine, offering specialized services along the therapeutic value chain from early diagnosis and prognostic planning to targeted therapeutic applications.
Clinical services, through Interpace Diagnostics, provide clinically useful molecular diagnostic tests and bioinformatics and pathology services for evaluating risk of cancer by leveraging the latest technology in personalized medicine for improved patient diagnosis and management. Interpace has five commercialized molecular tests and one test in a clinical evaluation program (CEP): PancraGEN® for the diagnosis and prognosis of pancreatic cancer from pancreatic cysts; PanDNA®, a “molecular only” version of PancraGEN that provides physicians a snapshot of a limited number of factors; ThyGeNEXT® for the diagnosis of thyroid cancer from thyroid nodules utilizing a next-generation sequencing assay; ThyraMIR®v2, used in combination with ThyGeNEXT®, for the diagnosis of thyroid cancer utilizing a proprietary microRNA pairwise expression profiler along with algorithmic classification; and RespriDX®, that differentiates lung cancer of primary versus metastatic origin. In addition, BarreGEN®, a molecular-based assay that helps resolve the risk of progression of Barrett’s Esophagus to esophageal cancer, is currently in a CEP, whereby we gather information from physicians using BarreGEN to assist us in gathering clinical evidence relative to the safety and performance of the test and also providing data that will potentially support payer reimbursement.
For more information, please visit Interpace Biosciences’ website at www.interpace.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 statements, including, but not limited to, the reimbursement of the Company’s tests being subject to review by CMS,the Company’sability to continue to perform, bill and receive reimbursement for our PancraGEN® molecular test under the existing local coverage determination (“LCD”), given that such LCD is currently under review by Novitas Solutions, Inc., the Company’s Medicare administrative contractor, the possibility that the Company’s estimates of future revenue, cash flows and adjusted EBITDA may prove to be materially inaccurate, the Company’s history of operating losses, the Company’s ability to adequately finance its business and seek alternative sources of financing, the Company’s ability to repay borrowings with Comerica Bank and BroadOak, the Company’s dependence on sales and reimbursements from its clinical services, the Company’s ability to retain or secure reimbursement including its reliance on third parties to process and transmit claims to payers and the adverse impact of any delay, data loss, or other disruption in processing or transmitting such claims, the Company’s revenue recognition being based in part on estimates for future collections which estimates may prove to be incorrect, and the possible removal of the Company’s common stock from trading on the OTCQX®.
Additionally, all forward-looking statements are subject to the “Risk Factors” detailed from time to time in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2023, as amended, Current Reports on Form 8-K and Quarterly Reports on Form 10-Q filed with the Securities and Exchange Commission. 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 Interpace Biosciences, Inc. (855)-776-6419 Info@Interpace.com
INTERPACE BIOSCIENCES, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited, in thousands, except per share data)
Three Months Ended
March 31,
2024
2023
Revenue, net
$
10,273
$
9,826
Cost of revenue
4,202
3,848
Gross Profit
6,071
5,978
Sales and marketing
2,821
2,342
Research and development
137
149
General and administrative
2,239
2,494
Acquisition amortization expense
-
318
Total operating expenses
5,197
5,303
Operating income
874
675
Interest accretion expense
(19
)
(35
)
Note payable interest
(197
)
(225
)
Other (expense) income, net
(82
)
19
Income from continuing operations before tax
576
434
Provision for income taxes
4
4
Income from continuing operations
572
430
Loss from discontinued operations, net of tax
(104
)
(79
)
Net income
$
468
$
351
Basic income (loss) per share of common stock:
From continuing operations
$
0.13
$
0.10
From discontinued operations
(0.02
)
(0.02
)
Net loss per basic share of common stock
$
0.11
$
0.08
Diluted income (loss) per share of common stock:
From continuing operations
$
0.13
$
0.10
From discontinued operations
(0.02
)
(0.02
)
Net loss per diluted share of common stock
$
0.11
$
0.08
Weighted average number of common shares and
common share equivalents outstanding:
Basic
4,370
4,307
Diluted
4,384
4,308
Selected Balance Sheet Data (Unaudited) ($ in thousands)
March 31,
December 31,
2024
2023
Cash and cash equivalents
$
2,812
$
3,498
Total current assets
9,416
10,322
Total current liabilities
18,973
17,474
Total assets
12,142
13,021
Total liabilities
26,747
28,157
Total stockholders' deficit
(61,141
)
(61,672
)
Selected Cash Flow Data (Unaudited) ($ in thousands)
For the Three Months Ended
March 31,
2024
2023
Net income
$
468
$
351
Net cash (used in) provided by operating activities
$
(58
)
$
1,133
Net cash used in investing activities
(28
)
(65
)
Net cash used in financing activities
(600
)
(300
)
Change in cash and cash equivalents
(686
)
768
Cash and cash equivalents – beginning
3,498
4,828
Cash and cash equivalents – ending
$
2,812
$
5,596
Reconciliation of Adjusted EBITDA (Unaudited) ($ in thousands)
Three Months Ended
March 31,
2024
2023
Income from continuing operations (GAAP Basis)
$
572
$
430
Depreciation and amortization
52
356
Stock-based compensation
79
192
Taxes expense
4
4
Interest accretion expense
19
35
Note payable interest
197
225
Interest income
(16
)
-
Change in fair value of note payable
98
(33
)
Adjusted EBITDA
$
1,005
$
1,209
Non-GAAP Financial Measures
In addition to the United States generally accepted accounting principles, or GAAP, results provided throughout this document, we have provided certain non-GAAP financial measures to help evaluate the results of our 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 our 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 our 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 and ESPP plans, interest and taxes, and other non-cash expenses including change in fair values of notes payable and contingent consideration. The table above includes a reconciliation of this non-GAAP financial measure to the most directly comparable GAAP financial measure.
