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Conference call and live webcast scheduled for today,
Tuesday, October 13, 2020 at 4:30 pm (ET)
New York, NY, Oct. 13, 2020 (GLOBE NEWSWIRE) -- Enzo Biochem, Inc. (NYSE:ENZ), a leading biosciences and diagnostics company, today reported financial results for the fourth quarter and full year ended July 31, 2020 and provided a business update on recent corporate and operational developments.
Operational Highlights:
Financial Highlights:
The fourth quarter encompassed three distinct periods for Enzo from an operational standpoint. While May was a continuation of the previous quarter’s low base (due to the NY State PAUSE Stay-at-Home order), June was the beginning of the recovery while July was a strong month for the company. Enzo’s resilience and strength in meeting the challenges posed by the COVID-19 pandemic has been demonstrated in the fourth quarter of fiscal 2020. The company is on a path of continued growth with overall corporate profitability a targeted goal in current Fiscal 2021 based on present trends.
“2020 has been a transformational year for Enzo as we expanded our position as a fully integrated diagnostic company and a turnkey solution for all needs in testing research and product development. Our rapid response to market demand for COVID-19 testing products and services demonstrates our agility and flexibility and our ability to maximize new market opportunities by rapidly bringing accurate and reliable testing and lab services to schools, institutions, urgent care facilities, and our core multi-state network of medical practices,” said Barry Weiner, President of Enzo. “Importantly, we are well positioned to replicate this success in response to new emerging health issues and needs, including upper respiratory, STD and women’s needs.”
“We were able to recognize substantial progress towards three fundamental objectives this year including implementing a range of new efficiency measures, building infrastructure that can support our continued growth, and transforming from a bifurcated life sciences company to an integrated diagnostics company. Our efforts also once again reinforce the advantages of our open system platform that can provide the essential levels of flexibility to meet the growing demand for molecular testing services,” said Elazar Rabbani, PhD., Chairman and Chief Executive Officer of Enzo. “I am especially proud of the commitment and dedication of every member of our team in facing the many challenges presented by the COVID-19 pandemic.”
Fourth Quarter 2020 Financial Results
Full Year 2020 Financial Results:
Conference Call and Webcast Information
The Company will host a conference call on Tuesday, October 13, 2020, at 4:30 pm, Eastern Daylight Time, to review the clinical, corporate, and financial highlights. To participate in the conference call, please dial the following numbers prior to the start of the call or click the webcast link below to participate over the internet:
Domestic: | 877-407-0792 |
International: | 201-689-8263 |
Conference ID: | 13711603 |
Webcast: | http://public.viavid.com/index.php?id=141837 |
A replay of the call will be available via webcast for on-demand listening shortly after completion of the call on the Investor Relations section of the company’s website, https://www.enzo.com, and will remain available for approximately 90 days. Please access the Company’s website at least 15 minutes ahead of the conference to register, download, and install any necessary audio software.
Adjusted Financial Measures
To comply with Regulation G promulgated pursuant to the Sarbanes-Oxley Act, Enzo Biochem attached to this news release and will post to the investor relations section of the company’s website (https://www.enzo.com) any reconciliation of differences between GAAP and Adjusted financial information that may be required in connection with issuing the Company's quarterly financial results.
The Company uses EBITDA as a measure of performance to demonstrate earnings exclusive of interest, taxes, depreciation and amortization. Adjustments to EBITDA are for items of a non-recurring nature and are reconciled on the table provided. The Company manages its business based on its operating cash flows. The Company, in its daily management of its business affairs and analysis of its monthly, quarterly and annual performance, makes its decisions based on cash flows, not on the amortization of assets obtained through historical activities. The Company, in managing its current and future affairs, cannot affect the amortization of the intangible assets to any material degree, and therefore uses EBITDA as its primary management guide. Since an outside investor may base its evaluation of the Company's performance based on the Company's net loss not its cash flows, there is a limitation to the EBITDA measurement. EBITDA is not, and should not be considered, an alternative to net loss, loss from operations, or any other measure for determining operating performance of liquidity, as determined under accounting principles generally accepted in the United States (GAAP). The most directly comparable GAAP reference in the Company's case is the removal of interest, taxes, depreciation and amortization.
We refer you to the tables attached to this press release, which includes reconciliation tables of GAAP to Adjusted net income (loss) and EBITDA to Adjusted EBITDA.
About Enzo Biochem, Inc.
Enzo Biochem is a pioneer in molecular diagnostics, leading the convergence of clinical laboratories, life sciences and intellectual property through the development of unique diagnostic platform technologies that provide numerous advantages over previous standards. A global company, Enzo Biochem utilizes cross-functional teams to develop and deploy products, systems and services that meet the ever-changing and rapidly growing needs of health care today and into the future. Underpinning Enzo Biochem’s products and technologies is a broad and deep intellectual property portfolio, with 475 issued patents worldwide along with extensive enabling technologies and platforms.
Forward-Looking Statements
Except for historical information, the matters discussed in this news release may be considered "forward-looking" statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such statements include declarations regarding the intent, belief or current expectations of the Company and its management, including those related to cash flow, gross margins, revenue, and expenses which are dependent on a number of factors outside of the control of the Company including, inter alia, the markets for the Company’s products and services, costs of goods and services, other expenses, government regulations, litigation, and general business conditions. See Risk Factors in the Company’s Form 10-K for the fiscal year ended July 31, 2019 and Form 10-Q for the period ended July 31, 2020. Investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve a number of risks and uncertainties that could materially affect actual results. The Company disclaims any obligations to update any forward-looking statement as a result of developments occurring after the date of this press release.
Contacts:
Enzo Biochem, Inc.
David Bench, CFO
212-583-0100
dbench@enzo.com
Investors:
LifeSci Advisors, LLC
Jeremy Feffer
212-915-2568
jeremy@lifesciadvisors.com
Anreder & Company
Steven Anreder
212-532-3232
Steven.anreder@anreder.com
Media:
Berry & Company Public Relations
Marisa Monte
212-253-8881
mmonte@berrypr.com
ENZO BIOCHEM, INC. (in thousands, except per share data) |
||||||||||||||||
Three months ended | Twelve months ended | |||||||||||||||
Selected operations data: | July 31 | July 31 | ||||||||||||||
(unaudited) | ||||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||
Total revenues | $ | 19,527 | $ | 20,921 | $ | 76,021 | $ | 81,170 | ||||||||
Gross profit | $ | 7,850 | $ | 6,346 | $ | 23,770 | $ | 23,248 | ||||||||
Gross profit % | 40 | % | 30 | % | 31 | % | 29 | % | ||||||||
(Loss) income before income taxes | $ | (3,325 | ) | $ | (5,387 | ) | $ | (28,520 | ) | $ | 2,489 | |||||
Net (loss) income | $ | (3,325 | ) | $ | (5,387 | ) | $ | (28,520 | ) | $ | 2,489 | |||||
Basic net (loss) income per share | ($ | 0.07 | ) | ($ | 0.11 | ) | ($ | 0.60 | ) | $ | 0.05 | |||||
Diluted net (loss) income per share | ($ | 0.07 | ) | ($ | 0.11 | ) | ($ | 0.60 | ) | $ | 0.05 | |||||
Weighted average shares outstanding - basic | 47,892 | 47,557 | 47,696 | 47,351 | ||||||||||||
Weighted average shares outstanding - diluted | 47,892 | 47,557 | 47,696 | 47,476 |
Selected balance sheet data: | 7/31/2020 (unaudited) |
7/31/2019 (unaudited) |
||||||
Cash and cash equivalents including restricted cash of $750 | $ | 48,615 | $ | 60,896 | ||||
Working capital | $ | 35,964 | (a) | $ | 65,444 | |||
Stockholders' equity | $ | 58,381 | $ | 86,028 | ||||
Total assets | $ | 112,538 | $ | 106,640 | ||||
(a) Includes impact of adoption of ASC 842 leases; the current portion of operating lease liabilities is $4,121, | ||||||||
and Paycheck Protection Program (PPP) loan of $7,000 included in current liabilities. |
The following table presents a reconciliation of reported net (loss) income and basic and diluted net (loss) income per share to non-GAAP net (loss) income and basic and diluted net (loss) income per share for the three and twelve months ended July 31, 2020 and 2019:
ENZO BIOCHEM, INC. Non-GAAP Reconciliation Table (Unaudited, in thousands, except per share data) |
||||||||||||||||
Three months ended | Twelve months ended | |||||||||||||||
July 31 | July 31 | |||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||
Reported GAAP net (loss) income | $ | (3,325 | ) | $ | (5,387 | ) | $ | (28,520 | ) | $ | 2,489 | |||||
Adjusted for: | ||||||||||||||||
Legal settlements, net | $ | - | $ | - | $ | - | $ | (28,925 | ) | |||||||
Contested proxy expenses | $ | - | $ | - | $ | 4,042 | $ | - | ||||||||
Separation expenses | $ | - | $ | - | $ | 235 | $ | - | ||||||||
Non-GAAP net loss | $ | (3,325 | ) | $ | (5,387 | ) | $ | (24,243 | ) | $ | (26,436 | ) | ||||
Weighted Shares Outstanding | ||||||||||||||||
Basic | 47,892 | 47,557 | 47,696 | 47,351 | ||||||||||||
Diluted | 47,892 | 47,557 | 47,696 | 47,476 | ||||||||||||
Basic and diluted earnings per share - GAAP and non-GAAP | ||||||||||||||||
Basic net (loss) income per share GAAP | ($ | 0.07 | ) | ($ | 0.11 | ) | ($ | 0.60 | ) | $ | 0.05 | |||||
Diluted net (loss) income per share GAAP | ($ | 0.07 | ) | ($ | 0.11 | ) | ($ | 0.60 | ) | $ | 0.05 | |||||
Basic and diluted net loss per share non-GAAP | ($ | 0.07 | ) | ($ | 0.11 | ) | ($ | 0.51 | ) | ($ | 0.56 | ) |
The following table presents a reconciliation of reported net (loss) income for the three and twelve months ended July 31, 2020 and 2019, respectively to EBITDA and Adjusted EBITDA:
ENZO BIOCHEM, INC.
EBITDA & Adjusted EBITDA Reconciliation Table
(Unaudited, in thousands)
Three months ended | Twelve months ended | |||||||||||||||
July 31 | July 31 | |||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||
GAAP net (loss) income | $ | (3,325 | ) | $ | (5,387 | ) | $ | (28,520 | ) | $ | 2,489 | |||||
Plus (minus): | ||||||||||||||||
Depreciation and amortization | $ | 629 | $ | 664 | $ | 2,780 | $ | 3,036 | ||||||||
Interest, net | $ | 41 | $ | (296 | ) | $ | (454 | ) | $ | (1,056 | ) | |||||
EBITDA | $ | (2,655 | ) | $ | (5,019 | ) | $ | (26,194 | ) | $ | 4,469 | |||||
Adjusted for: | ||||||||||||||||
Contested proxy expenses | $ | - | $ | - | $ | 4,042 | $ | - | ||||||||
Legal settlements, net | $ | - | $ | - | $ | - | $ | (28,925 | ) | |||||||
Separation expenses | $ | - | $ | - | $ | 235 | $ | - | ||||||||
Adjusted EBITDA | $ | (2,655 | ) | $ | (5,019 | ) | $ | (21,917 | ) | $ | (24,456 | ) | ||||
Weighted Shares Outstanding | ||||||||||||||||
Basic | 47,892 | 47,557 | 47,696 | 47,351 | ||||||||||||
Diluted | 47,892 | 47,557 | 47,696 | 47,476 | ||||||||||||
Basic and diluted earnings per share - GAAP and Adjusted EBITDA | ||||||||||||||||
Basic net (loss) income per share GAAP | ($ | 0.07 | ) | ($ | 0.11 | ) | ($ | 0.60 | ) | $ | 0.05 | |||||
Diluted net (loss) income per share GAAP | ($ | 0.07 | ) | ($ | 0.11 | ) | ($ | 0.60 | ) | $ | 0.05 | |||||
Basic and diluted net loss per share Adjusted EBITDA | ($ | 0.06 | ) | ($ | 0.11 | ) | ($ | 0.46 | ) | ($ | 0.52 | ) |
Released October 13, 2020