Enzo Biochem, Inc. Annual report pursuant to Section 13 and 15(d)

Segment reporting (Tables)

12 Months Ended

Jul. 31, 2017

The following financial information represents the operating results of the reportable segments of the Company:

Year ended July 31, 2017	Clinical Labs			Life Sciences			Therapeutics			Other			Consolidated
Revenues:
Clinical laboratory services	$	77,407			—			—			—		$	77,407
Product revenues		—		$	29,192			—			—			29,192
Royalty and license fee income		—			1,205			—			—			1,205
Total revenues		77,407			30,397			—			—			107,804

Operating costs and expenses:
Cost of clinical laboratory services		45,400			—			—			—			45,400
Cost of product revenues		—			14,078			—			—			14,078
Research and development		—			2,311		$	617			—			2,928
Selling, general and administrative		24,465			11,232			—		$	8,313			44,010
Provision for uncollectible accounts receivable		2,718			57			—			—			2,775
Legal fee expense		146			79			—			1,454			1,679
Total operating costs and expenses		72,729			27,757			617			9,767			110,870

Operating income (loss)		4,678			2,640			(617	)		(9,767	)		(3,066	)

Other income (expense)
Interest		(112	)		46			—			450			384
Other		137			(60	)		—			48			125
Foreign exchange gain		—			135			—			—			135

Income (loss) before taxes	$	4,703		$	2,761		$	(617	)	$	(9,269	)	$	(2,422	)

Depreciation and amortization included above	$	1,586		$	1,913		$	—		$	99		$	3,598

Share-based compensation included in above:
Cost of clinical laboratory services	$	6		$	—		$	—		$	—		$	6
Selling, general and administrative		111			74			—		$	640			825
Total	$	117		$	74		$	—		$	640		$	831

Capital expenditures	$	1,363		$	390		$	—		$	—		$	1,753

Year ended July 31, 2016	Clinical Labs			Life Sciences			Therapeutics			Other			Consolidated
Revenues:
Clinical laboratory services	$	70,915			—			—			—		$	70,915
Product revenues		—		$	30,337			—			—			30,337
Royalty and license fee income		—			1,521			—			—			1,521
Total revenues		70,915			31,858			—			—			102,773

Operating costs, expenses and legal settlements, net:
Cost of clinical laboratory services		42,859			—			—			—			42,859
Cost of product revenues		—			14,331			—			—			14,331
Research and development		—			2,720		$	804			—			3,524
Selling, general and administrative		22,882			11,761			—		$	8,943			43,586
Provision for uncollectible accounts receivable		2,375			(39	)		—			—			2,336
Legal fee expense		134			11			—			6,239			6,384
Legal settlements, net		1,500			(58,750	)		—			—			(57,250	)
Total operating costs, expenses and legal settlements, net		69,750			(29,966	)		804			15,182			55,770

Operating income (loss)		1,165			61,824			(804	)		(15,182	)		47,003

Other income (expense)
Interest		(105	)		47			—			(78	)		(136	)
Other		10			38			—			74			122
Foreign exchange gain		—			(474	)		—			—			(474	)

Income (loss) before taxes	$	1,070		$	61,435		$	(804	)	$	(15,186	)	$	46,515

Depreciation and amortization included above	$	1,676		$	2,091		$	—		$	73		$	3,840

Share-based compensation included in above:
Cost of clinical laboratory services	$	6		$	—		$	—		$	—		$	6
Selling, general and administrative		51			30			—		$	438			519
Total	$	57		$	30		$	—		$	438		$	525

Capital expenditures	$	1,216		$	314		$	—		$	—		$	1,530

Year ended July 31, 2015	Clinical Labs			Life Sciences			Therapeutics			Other			Consolidated
Revenues:
Clinical laboratory services	$	63,414			—			—			—		$	63,414
Product revenues		—		$	31,690			—			—			31,690
Royalty and license fee income		—			2,495			—			—			2,495
Total revenues		63,414			34,185			—			—			97,599

Operating costs, expenses and legal settlements, net:
Cost of clinical laboratory services		39,589			—			—			—			39,589
Cost of product revenues		—			15,183			—			—			15,183
Research and development		—			2,608		$	742			—			3,350
Selling, general and administrative		20,666			12,168			—		$	8,235			41,069
Provision for uncollectible accounts receivable		2,418			(134	)		—			—			2,284
Legal fee expense		196			(67	)		—			8,659			8,788
Legal settlements, net		—			(11,458	)		—			—			(11,458	)
Total operating costs, expenses and legal settlements, net		62,869			18,300			742			16,894			98,805

Operating (loss) income		545			15,885			(742	)		(16,894	)		(1,206	)

Other income (expense)
Interest		(86	)		10			—			(169	)		(245	)
Other		28			9			—			58			95
Foreign exchange gain		—			(936	)		—			—			(936	)

(Loss) income before income taxes	$	487		$	14,968		$	(742	)	$	(17,005	)	$	(2,292	)

Depreciation and amortization included above	$	1,443		$	2,254		$	3		$	89		$	3,789

Share-based compensation included in above:
Cost of clinical laboratory services	$	5		$	—			—			—		$	5
Research and development		—			2			—			—			2
Selling, general and administrative		43			15			—		$	364			422
Total	$	48		$	17			—		$	364		$	429

Capital expenditures	$	1,557		$	226			—			—		$	1,783

Geographic financial information is as follows:

Net sales to unaffiliated customers:	2017		2016		2015
United States	$	99,469	$	94,016	$	87,875
Switzerland		2,371		2,709		3,131
United Kingdom		1,673		1,730		1,904
Other international countries		4,291		4,318		4,689
Total	$	107,804	$	102,773	$	97,599


Long-lived assets at July 31,	2017		2016
United States	$	17,241	$	18,730
Switzerland		649		917
United Kingdom		185		244
Other international countries		173		197
Total	$	18,248	$	20,088

The following is a summary of the Life Sciences segment revenues attributable to customers located in the United States and foreign countries: