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

Segment reporting (Tables)

12 Months Ended

Jul. 31, 2016

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

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 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 costs, expenses and legal settlements, net		62,869			18,300			742			16,894			98,805

Operating income (loss)		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	)

Income (loss) before 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

Year ended July 31, 2014	Clinical Labs			Life Sciences			Therapeutics			Other			Consolidated
Revenues:
Clinical laboratory services	$	58,689			—			—			—		$	58,689
Product revenues		—		$	32,850			—			—			32,850
Royalty and license fee income		—			4,408			—			—			4,408
Total revenues		58,689			37,258			—			—			95,947

Operating costs, expenses and legal settlements, net:
Cost of clinical laboratory services		38,948			—			—			—			38,948
Cost of product revenues		—			15,320			—			—			15,320
Research and development		14			2,350		$	777			—			3,141
Selling, general and administrative		20,460			13,374			—		$	7,967			41,801
Provision for uncollectible accounts receivable		3,115			(52	)		—			—			3,063
Legal fee expense		736			940			—			5,278			6,954
Legal settlements, net		2,000			(5,100	)								(3,100	)
Total costs, expenses and legal settlements, net		65,273			26,832			777			13,245			106,127

Operating (loss) income		(6,584	)		10,426			(777	)		(13,245	)		(10,180	)

Other income (expense)
Interest		(43	)		9			—			(174	)		(208	)
Other		56			95			—			43			194
Foreign exchange gain		—			289			—			—			289

(Loss) income before income taxes	$	(6,571	)	$	10,819		$	(777	)	$	(13,376	)	$	(9,905	)

Depreciation and amortization included above	$	1,415		$	2,455		$	7		$	94		$	3,971

Share-based compensation included in above:
Cost of clinical laboratory services	$	8		$	1			—			—		$	9
Research and development		—			1			—			—			1
Selling, general and administrative		36			6			—		$	542			584
Total	$	44		$	8			—		$	542		$	594

Capital expenditures	$	643		$	195			—			—		$	838

Geographic financial information is as follows:

Net sales to unaffiliated customers:	2016		2015		2014
United States	$	94,016	$	87,875	$	84,389
Switzerland		2,709		3,131		4,130
United Kingdom		1,730		1,904		2,023
Other international countries		4,318		4,689		5,405
Total	$	102,773	$	97,599	$	95,947

Long-lived assets at July 31,
United States	$	18,730	$	19,799
Switzerland		917		1,224
United Kingdom		244		357
Other international countries		197		175
Total	$	20,088	$	21,555

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