Interpace Diagnostics Group, Inc.(IDXG) - 2024 Q3 - Quarterly Results

Financial and Business Highlights Interpace Biosciences reported record financial results for the third quarter of 2024, achieving all-time highs in test volume, revenue, and profitability Summary of Key Financial Metrics | Metric | Q3 2024 | Q3 2023 | Change | | :--- | :--- | :--- | :--- | | Net Revenue | $12.3 million | $9.1 million | +35% | | Test Volume | N/A | N/A | +26% | | Cash Collections | $11.3 million | $9.8 million | +15% | | Income from Continuing Operations | $1.4 million | ($0.5) million | +$1.9M | | Adjusted EBITDA | $2.1 million | $0.4 million | +$1.7M | - The company's proprietary molecular diagnostics tests, ThyGeNEXT+ ThyraMIRv2 and PancraGEN, continued to experience double-digit growth in Q3 2024 over Q3 2023[3] - Q3 2024 marked the eighteenth consecutive quarter of year-over-year volume growth for the company[3] - Interpace is actively interviewing equity research partners and investment bankers to raise additional capital to fund its growth strategy and pursue a potential uplisting to the Nasdaq stock exchange[3] Business Overview Interpace Biosciences focuses on personalized medicine, offering molecular diagnostic tests and services for cancer diagnosis and risk assessment, with a portfolio of five commercialized tests - The company offers specialized services along the therapeutic value chain, from early diagnosis and prognostic planning to targeted therapeutic applications[6] - Interpace has five commercialized molecular tests: PancraGEN and PanDNA (pancreatic cancer), ThyGeNEXT and ThyraMIRv2 (thyroid cancer), and RespriDX (lung cancer)[7] - A sixth test, BarreGEN, for assessing the progression risk of Barrett's Esophagus to esophageal cancer, is currently in a clinical evaluation program (CEP) to gather clinical evidence and support potential payer reimbursement[7] Forward-Looking Statements This section contains standard legal disclaimers regarding forward-looking statements, highlighting risks such as reimbursement policies, financing capabilities, and the ability to uplist to Nasdaq - The press release contains forward-looking statements concerning future financial and operating performance, which are subject to risks and uncertainties[9] - Identified risks include, but are not limited to, reimbursement challenges (including CMS review), historical operating losses, ability to finance the business, dependence on sales and reimbursements, and the ability to uplist common stock to Nasdaq[9] Financial Performance Analysis This section provides a detailed breakdown of Interpace's financial statements for the third quarter and nine months ended September 30, 2024, including statements of operations, balance sheet, cash flow, and Adjusted EBITDA reconciliation Statements of Operations For Q3 2024, net revenue increased by 35% to $12.3 million, and gross profit rose to $7.5 million, resulting in an operating income of $1.9 million and net income of $1.4 million Condensed Consolidated Statements of Operations | Metric (in thousands, except per share) | Three Months Ended Sep 30, 2024 | Three Months Ended Sep 30, 2023 | Nine Months Ended Sep 30, 2024 | Nine Months Ended Sep 30, 2023 | | :--- | :--- | :--- | :--- | :--- | | Revenue, net | $12,295 | $9,078 | $34,610 | $29,931 | | Gross Profit | $7,506 | $4,954 | $21,008 | $17,768 | | Operating income (loss) | $1,905 | $(16) | $5,036 | $1,491 | | Income (loss) from continuing operations | $1,362 | $(528) | $4,070 | $297 | | Net income (loss) | $1,280 | $(614) | $3,810 | $(88) | | Diluted EPS from continuing operations | $0.31 | $(0.12) | $0.92 | $0.07 | Balance Sheet As of September 30, 2024, cash and cash equivalents decreased to $2.1 million due to debt paydown, while total liabilities decreased to $25.2 million, improving stockholders' deficit Selected Balance Sheet Data | Metric (in thousands) | September 30, 2024 | December 31, 2023 | | :--- | :--- | :--- | | Cash and cash equivalents | $2,113 | $3,498 | | Total assets | $14,039 | $13,021 | | Total liabilities | $25,185 | $28,157 | | Total stockholders' deficit | $(57,682) | $(61,672) | - The cash balance decreased from $5.0 million as of September 30, 2023, primarily driven by a $6.6 million additional paydown of debt[5] Cash Flow Statement For the first nine months of 2024, operating cash flow increased to $3.5 million, with significant cash used in financing activities, resulting in a net decrease in cash of $1.4 million Selected Cash Flow Data | Metric (in thousands) | For the Nine Months Ended Sep 30, 2024 | For the Nine Months Ended Sep 30, 2023 | | :--- | :--- | :--- | | Net cash provided by operating activities | $3,462 | $2,649 | | Net cash (used in) provided by investing activities | $(747) | $55 | | Net cash used in financing activities | $(4,100) | $(2,500) | | Change in cash and cash equivalents | $(1,385) | $204 | Non-GAAP Measures (Adjusted EBITDA) Adjusted EBITDA significantly improved to $2.1 million for Q3 2024 and $5.5 million for the nine-month period, reflecting strong operational performance Reconciliation of Adjusted EBITDA | Metric (in thousands) | Three Months Ended Sep 30, 2024 | Three Months Ended Sep 30, 2023 | Nine Months Ended Sep 30, 2024 | Nine Months Ended Sep 30, 2023 | | :--- | :--- | :--- | :--- | :--- | | Income (loss) from continuing operations (GAAP) | $1,362 | $(528) | $4,070 | $297 | | Adjusted EBITDA (Non-GAAP) | $2,076 | $363 | $5,458 | $2,904 | - Adjusted EBITDA is defined as income or loss from continuing operations, adjusted for depreciation and amortization, stock-based compensation, interest, taxes, and other non-cash expenses like the change in fair value of notes payable[21]