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Conference call and live webcast scheduled for tomorrow,
Friday, June 10, 2022 at 8:30 am (ET)
NEW YORK, June 09, 2022 (GLOBE NEWSWIRE) -- Enzo Biochem, Inc (NYSE: ENZ), a leading biosciences and diagnostics company, today reported financial results for the third fiscal quarter ended April 30, 2022, and provided a business update on recent corporate and operational developments.
“Over the past months, we undertook key steps designed to increase our efficiency, enlarge our revenue base, and position ourselves for new levels of growth in our Enzo Life Sciences division sales and core diagnostic laboratory services,” said Hamid Erfanian, Enzo’s Chief Executive Officer. “We are on the path for full Lab Developed Test (LDT) regulatory submission this year on our molecular platform and added 43 new tests within our clinical lab. In addition to expanding the roles of our CFO and COO, we augmented our management team through several new key hires. This leaves us well positioned as we work to execute on key elements of our ‘Focused Return’ strategy, which include expanding our Farmingdale campus in preparation for anticipated growth and leveraging our life sciences expertise to broaden the reach of our diagnostic platforms. We accomplished all this while remaining on track to achieve an additional $5 million in operational savings this calendar year, highlighting the advantages of the fully integrated ‘end-to-end’ approach linking the life sciences, clinical labs, and diagnostic pillars of our business. We are also pleased to engage with one of the premier healthcare banking firms to assist with strategic initiatives. To this end, we recently engaged Jefferies LLC, a multinational independent investment bank, to provide advisory services including the evaluation of strategic alternatives for the Company, its Enzo Clinical Lab and Enzo Life Sciences divisions and its various assets.”
Recent Business Highlights
Third Quarter 2022 Financial Results
Conference Call and Webcast Information
The Company will host a conference call on Friday, June 10, 2022, at 8:30 am, Eastern 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: | 13727738 |
Webcast: | https://viavid.webcasts.com/starthere.jsp?ei=1550853&tp_key=b4b6580958 |
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 more information, please visit Enzo.com or follow Enzo Biochem on Twitter and LinkedIn.
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.
Contact:
For Enzo Biochem, Inc.
David Bench, CFO
212-583-0100
dbench@enzo.com
Investors:
Chris Calabrese
LifeSci Advisors, LLC
917-680-5608
ccalabrese@lifesciadvisors.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 | Nine months ended | ||||||||||||||
Selected operations data: | April 30, | April 30, | |||||||||||||
(unaudited) | (unaudited) | ||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||
Total revenues | $ | 26,222 | $ | 32,797 | $ | 86,787 | $ | 92,918 | |||||||
Gross profit | $ | 10,173 | $ | 16,046 | $ | 37,627 | $ | 43,764 | |||||||
Gross profit % | 39% | 49% | 43% | 47% | |||||||||||
(Loss) income before income taxes | (4,854 | ) | 2,006 | (9,828 | ) | 4,607 | |||||||||
Income taxes | - | - | - | - | |||||||||||
Net (loss) income | $ | (4,854 | ) | $ | 2,006 | $ | (9,828 | ) | $ | 4,607 | |||||
Basic net income (loss) per share | ($0.10 | ) | $0.04 | ($0.20 | ) | $0.10 | |||||||||
Diluted net income (loss) per share | ($0.10 | ) | $0.04 | ($0.20 | ) | $0.10 | |||||||||
Weighted average shares outstanding - basic | 48,713 | 48,391 | 48,552 | 48,097 | |||||||||||
Weighted average shares outstanding - diluted | 48,713 | 48,788 | 48,552 | 48,201 | |||||||||||
Selected balance sheet data: | 4/30/2022 (unaudited) |
7/31/2021 (unaudited) |
|||||||||||||
Cash and cash equivalents including restricted cash of $1,000 at April 30, 2022 and $750 at July 31, 2021, and marketable securities at 7/31/21 | $32,130 | $44,252 | |||||||||||||
Working capital | 37,597 | 44,506 | |||||||||||||
Stockholders' equity | 62,187 | 68,586 | |||||||||||||
Total assets | 103,904 | 113,691 | |||||||||||||
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 nine months ended April 30, 2022 and 2021: | |||||||||||||
ENZO BIOCHEM, INC. | |||||||||||||
Non-GAAP Reconciliation Table | |||||||||||||
(Unaudited, in thousands, except per share data) | |||||||||||||
Three months ended | Nine months ended | ||||||||||||
April 30, | April 30, | ||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||
Reported GAAP net (loss) income | $ | (4,854 | ) | $ | 2,006 | $ | (9,828 | ) | $ | 4,607 | |||
Adjusted for: | |||||||||||||
Discrete severance and other related compensation expenses | 200 | - | 1,888 | - | |||||||||
Discrete legal and settlement expenses | 407 | - | 2,440 | 1,973 | |||||||||
Strategic initiatives expenses | 31 | - | 2,262 | - | |||||||||
Facility closure and separation expenses | - | - | 384 | - | |||||||||
Non-GAAP net (loss) income | $ | (4,216 | ) | $ | 2,006 | $ | (2,854 | ) | $ | 6,580 | |||
Weighted Shares Outstanding: | |||||||||||||
Basic | 48,713 | 48,391 | 48,552 | 48,097 | |||||||||
Diluted | 48,713 | 48,788 | 48,552 | 48,201 | |||||||||
Basic and diluted earnings per share: | |||||||||||||
Basic net income (loss) per share GAAP | ($0.10 | ) | $0.04 | ($0.20 | ) | $0.10 | |||||||
Diluted net income (loss) per share GAAP | ($0.10 | ) | $0.04 | ($0.20 | ) | $0.10 | |||||||
Basic net income (loss) per share non-GAAP | ($0.09 | ) | $0.04 | ($0.06 | ) | $0.14 | |||||||
Diluted net income (loss) per share non-GAAP | ($0.09 | ) | $0.04 | ($0.06 | ) | $0.14 | |||||||
The following table presents a reconciliation of reported GAAP net (loss) income for the three and nine months ended April 30, 2022 and 2021, respectively to EBITDA and Adjusted EBITDA: | |||||||||||||||
ENZO BIOCHEM, INC. | |||||||||||||||
EBITDA & Adjusted EBITDA Reconciliation Table | |||||||||||||||
(Unaudited, in thousands) | |||||||||||||||
Three months ended | Nine months ended | ||||||||||||||
April 30, | April 30, | ||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||
GAAP net (loss) income | $ | (4,854 | ) | $ | 2,006 | $ | (9,828 | ) | $ | 4,607 | |||||
Plus (minus): | |||||||||||||||
Depreciation and amortization | 732 | 673 | 2,138 | 1,968 | |||||||||||
Interest (income) expense, net | (54 | ) | (60 | ) | (161 | ) | 40 | ||||||||
EBITDA | $ | (4,176 | ) | $ | 2,619 | $ | (7,851 | ) | $ | 6,615 | |||||
Adjusted for: | |||||||||||||||
Foreign exchange gain loss (gain) | 1,056 | 33 | 1,887 | (428 | ) | ||||||||||
Discrete severance and other related compensation expenses | 200 | - | 1,888 | - | |||||||||||
Discrete legal and settlement expenses | 407 | - | 2,440 | 1,973 | |||||||||||
Strategic initiatives expenses | 31 | - | 2,262 | - | |||||||||||
Facility closure and separation expenses | - | - | 384 | - | |||||||||||
Realized loss on marketable securities | 730 | - | 1,283 | - | |||||||||||
Adjusted EBITDA | $ | (1,752 | ) | $ | 2,652 | $ | 2,293 | $ | 8,160 | ||||||
Released June 9, 2022