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Conference call and live webcast scheduled for today,
Tuesday, October 12, 2021 at 8:30 am (ET)
NEW YORK, Oct. 12, 2021 (GLOBE NEWSWIRE) -- Enzo Biochem, Inc. (NYSE:ENZ), a leading biosciences and diagnostics company, today reported operating results for the fiscal year and fourth quarter ended July 31, 2021 and provided a business update on recent corporate and operational developments.
Operational Highlights:
Financial Highlights:
“Fiscal 2021 was a validating and extraordinary year for Enzo as our team once again demonstrated unprecedented levels of innovation amid the most transformative time of our 45-year history. We have successfully modified our clinical services and products to profitably operate in the new COVID-19 pandemic with multiple variants where we anticipate testing to ebb and flow for the next 12-18 months,” said Barry Weiner, President of Enzo.
“With the launch of the GoTestMeNow™ platform, our first-ever direct-to-consumer offering, Enzo is now providing physician-authorized laboratory tests directly to patients for COVID-19 and, beginning this fall, for sexually transmitted infections. We are working diligently to broaden our menu of molecular testing on our proprietary GENFLEX® platform. We anticipate additional molecular tests to become available in 2022 as we build broader awareness of the Company’s diagnostic platform capabilities.
“The Company’s vertically integrated end-to-end diagnostic business model is distinctive in the industry. It enables Enzo to more rapidly and flexibly meet market and operational challenges associated with the COVID-19 pandemic and other shifts in the marketplace.
“In 2021 Enzo had record revenues of $117.7 million, up 55% year-over-year, with consolidated gross margins of 45.5% and net income of $7.9 million, or $0.16 fully diluted per share. The Company, in line with its cost-cutting efforts, also reported reductions in cost of sales and operating expenses.
“Enzo is also planning for continued focus on opportunities driven by the continuing COVID-19 pandemic. As the market has evolved, Enzo has focused on targeting many new opportunities, including testing services customized for schools, pharmacies and businesses. The Company is also extending the successful marketing and delivery model developed in response to COVID-19 to expand product and service offerings in additional areas including women’s health and sexually transmitted disease.
“Enzo’s GENFLEX® sales and marketing strategy is undergoing multiple regulatory approvals for test submissions. The Company’s vigorous R&D program includes a focus on cytology, immunodiagnostics, and immunohistochemistry (IHC) involving locating antigens in biopsy tissue to diagnose some types of cancer. Enzo is also actively involved in the development and future commercialization of point-of-care platforms that are gaining increasing interest in clinical diagnostics. In addition, the Company’s LoopRNA technology, now increasingly used for the study of gene structure, potentially allows for better medical interpretation, accelerated drug development and improved research capabilities and can reduce the risk of false positives and false negatives for early detection on RNA-based infections such as HPV.”
“Our emphasis continually is on higher margin products including many for specialized needs as well as cost-limited products and testing applications,” Mr. Weiner added. “Specialization is our hallmark and has enabled us to carve out a growing and important niche as an innovator, with an eye on efficiencies and effectiveness. It is a proud tradition, one that we take seriously in our pursuit of melding opportunities with enhanced value for all stakeholders.”
Fiscal 2021 Financial Results
Fourth Quarter 2021 Financial Results
As we have announced in the previous quarters, the Company’s strategic initiatives and succession planning are ongoing. The investment banking firm retained earlier this year remains highly engaged with the Company and the executive search, within the context of the Company’s strategic objectives, is ongoing. Updates will be provided when appropriate. The Company, management and board are working in unison to translate Enzo’s capabilities and resources to benefit all shareholders and enhance and maximize shareholder value.
Conference Call and Webcast Information
The Company will host a conference call on Tuesday, October 12, 2021, at 8:30 am, Eastern Standard Time, to review the operational, 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: | 13723500 | |
Webcast: | http://public.viavid.com/index.php?id=146658 |
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
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 patent coverage across a number of key enabling technologies. For additional information please visit: http://www.enzo.com/
Forward-Looking Statements
Except for historical information, the matters discussed in this 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, revenues, 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, 2021. 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 release.
Contacts:
For Enzo Biochem, Inc.
David Bench, CFO
212-583-0100
dbench@enzo.com
Investors:
Bob Yedid
LifeSci Advisors, LLC
646-597-6989
bob@lifesciadvisors.com
Steve Anreder
Anreder & Company
212-532-3232
Steven.anreder@anreder.com
Media:
Lynn Granito
Berry & Company Public Relations
212-253-8881
lgranito@berrypr.com
ENZO BIOCHEM, INC. | |||||||||||||||
(in thousands, except per share data) | |||||||||||||||
Three months ended | Fiscal year ended | ||||||||||||||
Selected operations data: | July 31, | July 31, | |||||||||||||
(unaudited) | (unaudited) |
||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||
Total revenues | $ | 24,813 | $ | 19,527 | $ | 117,731 | $ | 76,021 | |||||||
Gross profit | $ | 9,813 | $ | 7,850 | $ | 53,577 | $ | 23,770 | |||||||
Gross profit % | 40 | % | 40 | % | 46 | % | 31 | % | |||||||
Income (loss) before income taxes | 3,268 | (3,325 | ) | 7,875 | (28,520 | ) | |||||||||
Net income (loss) | $ | 3,268 | $ | (3,325 | ) | $ | 7,875 | $ | (28,520 | ) | |||||
Basic net income (loss) per share | $0.07 | ($0.07 | ) | $0.16 | ($0.60 | ) | |||||||||
Diluted net income (loss) per share | $0.07 | ($0.07 | ) | $0.16 | ($0.60 | ) | |||||||||
Weighted average shares outstanding - basic | 48,472 | 47,892 | 48,191 | 47,696 | |||||||||||
Weighted average shares outstanding - diluted | 48,840 | 47,892 | 48,325 | 47,696 | |||||||||||
Selected balance sheet data: | 7/31/2021 (unaudited) |
7/31/2020 (unaudited) |
|||||||||||||
Cash and cash equivalents including restricted cash of $750 and marketable securities | $43,502 | $48,615 | |||||||||||||
Working capital | $44,506 | $35,964 | |||||||||||||
Stockholders' equity | $68,586 | $58,381 | |||||||||||||
Total assets | $113,691 | $112,538 | |||||||||||||
The following table presents a reconciliation of reported net income (loss) and basic and diluted net income (loss) per share to non-GAAP net income (loss) and basic and diluted net income (loss) per share for the three months and fiscal year ended July 31, 2021 and 2020: | |||||||||||||
ENZO BIOCHEM, INC. | |||||||||||||
Non-GAAP Reconciliation Table | |||||||||||||
(Unaudited, in thousands, except per share data) | |||||||||||||
Three months ended |
Fiscal year ended |
||||||||||||
July 31, |
July 31, | ||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||
Reported GAAP net income (loss) | $ | 3,268 | $ | (3,325 | ) | $ | 7,875 | $ | (28,520 | ) | |||
Adjusted for: | |||||||||||||
Contested proxy expenses | - | - | 1,973 | 4,042 | |||||||||
Separation expenses | 154 | - | 154 | 235 | |||||||||
Non-GAAP net income (loss) | $ | 3,422 | $ | (3,325 | ) | $ | 10,002 | $ | (24,243 | ) | |||
Weighted Shares Outstanding: | |||||||||||||
Basic | 48,472 | 47,892 | 48,191 | 47,696 | |||||||||
Diluted | 48,840 | 47,892 | 48,325 | 47,696 | |||||||||
Basic and diluted earnings per share: | |||||||||||||
Basic net income (loss) per share GAAP | $0.07 | ($0.07 | ) | $0.16 | ($0.60 | ) | |||||||
Diluted net income (loss) per share GAAP | $0.07 | ($0.07 | ) | $0.16 | ($0.60 | ) | |||||||
Basic net income (loss) per share non-GAAP | $0.07 | ($0.07 | ) | $0.21 | ($0.51 | ) | |||||||
Diluted net income (loss) per share non-GAAP | $0.07 | ($0.07 | ) | $0.21 | ($0.51 | ) | |||||||
The following table presents a reconciliation of reported GAAP net income (loss) for the three months and fiscal year ended July 31, 2021 and 2020, respectively to EBITDA and Adjusted EBITDA: | |||||||||||||||
ENZO BIOCHEM, INC. | |||||||||||||||
EBITDA & Adjusted EBITDA Reconciliation Table | |||||||||||||||
(Unaudited, in thousands) | |||||||||||||||
Three months ended |
Fiscal year ended |
||||||||||||||
July 31, | July 31, | ||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||
GAAP net income (loss) | $ | 3,268 | $ | (3,325 | ) | $ | 7,875 | $(28,520 | ) | ||||||
Plus (minus): | |||||||||||||||
Depreciation and amortization | 678 | 629 | 2,653 | 2,780 | |||||||||||
Interest expense (income) | (48 | ) | 41 | (8 | ) | (454 | ) | ||||||||
EBITDA | $ | 3,898 | $ | (2,655 | ) | $ | 10,520 | $(26,194 | ) | ||||||
Adjusted for: | |||||||||||||||
Paycheck Protection Program (PPP) loan forgiveness | (7,000 | ) | - | (7,000 | ) | - | |||||||||
Foreign exchange loss (gain) | 158 | (994 | ) | (270 | ) | (905 | ) | ||||||||
Contested proxy expenses | - | - | 1,973 | 4,042 | |||||||||||
Separation expenses | 154 | - | 154 | 235 | |||||||||||
Adjusted EBITDA | $ | (2,790 | ) | $ | (3,649 | ) | $ | 5,377 | $(22,822 | ) | |||||
Released October 12, 2021