Slide 1: Annual Shareholder Meeting June 7, 2016
Annual Shareholder Meeting June 7, 2016 NASDAQ: NEO Exhibit 99.1
Slide 2: Forward-looking Statements
Forward-looking Statements This presentation contains statements which constitute forward-looking statements within the meaning of Section 27A of the Securities Act, as amended; Section 21E of the Securities Exchange Act of 1934; and the Private Securities Litigation Reform Act of 1995. The words “m
Slide 3: Board of Directors
Board of Directors Douglas M. VanOort, Chairman of Board Chairman since 2009. Significant prior industry and executive experience. Bruce K. Crowther, Chairman of Compliance Committee Director since 2014. Retired as Chairman & CEO of Northwest Community Healthcare. Alison L. Hannah, M.D. Director sin
Slide 4: Experienced Management Team
Experienced Management Team Douglas VanOort, Chairman & CEO Chief Operating Officer, Quest Diagnostics Executive Vice President, Corning Life Sciences, Inc. Maher Albitar, M.D., Chief Medical Officer & Director of R&D Med. Dir. for Hematopathology & Oncology and Chief of R&D, Quest Nichols Institute
Slide 5: 2015 Highlights
2015 Highlights Increased test volume by 25% in our base business Reduced cost-per-test in our base business by 9% Launched over 70 new or enhanced tests Completed the acquisition of Clarient, Inc. from GE for approximately $250 million Positioned the company as an emerging leader.
Slide 6: NEO's Proven Track Record of Consistent Growth
NEO’s Proven Track Record of Consistent Growth Base NEO* Annual Revenue Base NEO* Tests Performed ($, 000s) CAGR = 59% CAGR = 61% * Base NEO represents organic revenue and test volume growth from legacy business and excludes the impacts from the PathLogic and Clarient acquisitions.
Slide 7: Stable Pricing Expected in 2016 After Years of AUP Declines
Stable Pricing Expected in 2016 After 6 Years of AUP Declines! * For comparison purposes, Base NEO excludes the impacts from the PathLogic and Clarient acquisitions. Productivity calculated as the average number of lab tests completed per month per laboratory FTE. Historically, Steady Margins Despit
Slide 8: Customer Targets
Customer Targets Pathologists & Hospital Pathology Groups (about 81% of 2015 Revenue*) Enable community Pathologists to practice using sophisticated tools and tests Innovative technical component (TC or “tech-only”) services – Flow, FISH, IHC Outstanding Web-based Lab System & extensive training pro
Slide 9: Rapidly Growing Market Opportunity
Rapidly Growing Market Opportunity The exploding cost of cancer care offers extraordinary opportunities for those labs that can deliver innovative and value-based solutions to the healthcare system. Source: National Institutes of Health (NIH)
Slide 10: NEO Addressable Cancer Testing Market
NEO Addressable Cancer Testing Market NeoGenomics currently addresses a $5 billion clinical testing market opportunity! Mkt Size Estimate 2008 - 2014 Test Description Key CPT Codes(1) 2009 2010 2011 2014 % CAGR Clinical Market Size Before Hospital Market Gross Up Adjustments(a) ($, MMs) Cytogenetics
Slide 11: Accelerating Pace of Innovation
Accelerating Pace of Innovation 70 new/revised tests, incl: NeoLABTM Liquid Biopsies MDS/CMML Profile AML Profile FLT3 Mutation Analysis NPM1 Mutation Analysis PML-RARA Translocation RUNX1-RNX1T1Transloc INV16 Translocation c-kit Mutation Analysis IDH1 Mutation Analysis IDH2 Mutation Analysis NRAS M
Slide 12: Accelerating Same Store Sales
Accelerating Same Store Sales* * Base NEO represents organic test volume growth from legacy business and excludes the impacts from the PathLogic and Clarient acquisitions.
Slide 13: Pathology Group Preferences for Cancer Testing
Pathology Group Preferences for Cancer Testing Source: Laboratory Economics Anatomic Pathology Market Trends Survey, July 2015 (n=280 surveyed pathology groups/labs) * All Others include Johns Hopkins, MPLN, OHSU, PathGroup, ProPath, and local academic medical centers. Combined NeoGenomics and Clari
Slide 14: Recent Quarterly Financial Information (P&L)
Recent Quarterly Financial Information (P&L) ($, 000's) Base NEO(1) Q1 15 Base NEO(1) Q1 16 Consolidated (2) Q1 15 Consolidated(2) Q1 16 Total Revenue $ 20,684 $ 28,383 $ 23,026 $ 59,704 % Growth (YoY) 13.8% 37.2% 26.6% 159.3% Total Gross Profit 9,028 14,147 9,544 32,531 Gross Margin % 43.7% 49.8% 4
Slide 15: NEO's Acquisition Strategy
NEO’s Acquisition Strategy NEO Focus – Upper right hand quadrant Synergistic Deals High High Low Market Growth Technologies Clarient Attributes Technology leader High growth (clinical trials) Revenue scale Nationwide presence Complementary footprint Geographic proximity Ongoing GE affiliation
Slide 16: Key Benefits
Key Benefits Synergy potential of $20mm - $30mm/year within 3-5 year Laboratory, Purchasing, Cross-selling, etc. East Coast/West Coast labs Combine Irvine and Aliso Viejo Low cost position in every testing discipline FISH, Flow, Cytogenetics, IHC, Digital Pathology, Molecular Leadership in hematolog
Slide 17: 2016 Combined Pro Forma Revenue Bridge
2016 - Combined Pro Forma Revenue Bridge(1) (1) Preliminary Estimate - Subject to further refinements We estimate combined revenue of approx. $242 – $252 mm in 2016… CMS Reimbursement estimates includes net positive price adjustments of $5-7 mm. We estimate $2 MM of revenue synergies and approximate
Slide 18: 2016 Pro Forma Adjusted EBITDA Bridge
2016 Pro Forma Adjusted EBITDA Bridge (1) NEO expects to realize $20-30 MM of total synergies in the next 3 years with approximately 75% of such synergies being cost synergies as a result of efficiencies gained through the combination with Clarient. 2016 Adjusted EBITDA assumes $6 MM of Cost Synergi
Slide 19: Current 2016 Guidance
Current 2016 Guidance* Revenue:$242 - $252 MM Adjusted EBITDA* 35 - 40 MM Adjusted Net Income* 8 – 13 MM Adjusted Diluted EPS* $0.08 - $0.13 * See Appendix for definitions of Adjusted EBITDA, Adjusted Net Income and Adjusted Diluted EPS as well as a reconciliation of GAAP Net Income to Adj. EBITDA,
Slide 20: Stock Performance Compared to Peers
Stock Performance Compared to Peers Bio Reference Laboratories (BRLI) was acquired by Opko Health on August 20, 2015. Each share of BRLI received 2.75 shares of Opko. 12/31/15 share value reflected by equivalent value in OPKO shares.. Response Genetics (RGDX) filed for Bankruptcy protection on Augus
Slide 21: NeoGenomics Vision and Goals
NeoGenomics Vision and Goals Leadership Goals: Be the leading oncology-focused testing and information company in the World. Innovate aggressively to advance precision medicine. Be the highest quality and lowest cost provider in each product area Competencies: Outstanding Scientific, Medical and Inf
Slide 22: Appendix
Appendix (GNeosenomics Inc, eC LARIENT g§ NeoGenomics Building One Growth-Driven Company | 22
Slide 23: Clarient Transaction Consideration
Clarient Transaction Consideration $80 MM Cash $15 MM – NEO cash from balance sheet $10 MM – New, 5-year $25mm revolver $55 MM – New, 5-year Term Loan 14.67 MM Shares of Series A Redeemable Preferred Stock Issued at $7.50 per share Redeemable by NEO at any time at the issue price plus accrued PIK di
Slide 24: Reconciliation of GAAP Net Income to Adjusted EBITDA
Reconciliation of GAAP Net Income to Adjusted EBITDA “Adjusted EBITDA” is defined by NeoGenomics as net income from continuing operations before: (i) interest expense, (ii) tax expense, (iii) depreciation and amortization expense, (iv) non-recurring other (income) or losses, (v) non-cash, stock-base
Slide 25: Reconciliation of GAAP Net Income to Adjusted Net Income & Adjusted Diluted EPS
Reconciliation of GAAP Net Income to Adjusted Net Income & Adjusted Diluted EPS For the Three-Months Ended March 31, 2016 2015 Net loss available to common shareholders (GAAP) $ (5,412 ) $ (761 ) Adjustments to Net Loss: Amortization of intangibles 2,026 93 Non-cash stock-based compensation expenses
Slide 26: Adjusted Net Income Definition
“Adjusted Net Income” is defined by NeoGenomics as net income available to common shareholders from continuing operations plus: (i) amortization of customer lists and other intangible assets, (ii) non-cash, stock-based compensation and warrant amortization expense, (iii) non-recurring other (income)