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

Segment reporting (Tables)

12 Months Ended

Jul. 31, 2015

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

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 expenses:
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 expenses		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 expenses:
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 operating expenses		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

Year ended July 31, 2013	Clinical Labs			Life Sciences			Therapeutics			Other			Consolidated
Revenues:
Clinical laboratory services	$	55,889			—			—			—		$	55,889
Product revenues		—		$	32,526			—			—			32,526
Royalty and license fee income		—			5,292			—			—			5,292
Total revenues		55,889			37,818			—			—			93,707

Operating expenses:
Cost of clinical laboratory services		38,251			—			—			—			38,251
Cost of product revenues		—			16,584			—			—			16,584
Research and development		294			2,356		$	1,239			—			3,889
Selling, general and administrative		19,942			15,511			—		$	8,201			43,654
Provision for uncollectible accounts receivable		4,232			264			—			—			4,496
Legal fee expense		316			57			—			5,440			5,813

Total operating expenses		63,035			34,772			1,239			13,641			112,687

Operating (loss) income		(7,146	)		3,046			(1,239	)		(13,641	)		(18,980	)

Other income (expense)
Interest		(46	)		13			—			(21	)		(54	)
Other		49			(71	)		—			27			5
Foreign exchange gain		—			80			—			—			80

(Loss) income before income taxes	$	(7,143	)	$	3,066		$	(1,239	)	$	(13,635	)	$	(18,949	)

Depreciation and amortization included above	$	1,377		$	3,102		$	22		$	104		$	4,605

Share-based compensation included in above:
Cost of clinical laboratory services	$	9			1			—			—		$	10
Research and development		—		$	2			—			—			2
Selling, general and administrative		36			10			—		$	487			533
Total	$	45		$	13			—		$	487		$	545

Capital expenditures	$	757		$	231			—			—		$	988

Geographic financial information is as follows:

Net sales to unaffiliated customers:	2015		2014		2013
United States	$	87,875	$	84,389	$	80,559
Switzerland		3,131		4,130		5,499
United Kingdom		1,904		2,023		2,324
Other international countries		4,689		5,405		5,325
Total	$	97,599	$	95,947	$	93,707

Long-lived assets at July 31,
United States	$	19,799	$	20,854	$	23,136
Switzerland		1,224		1,629		1,984
United Kingdom		357		462		491
Other international countries		175		345		401
Total	$	21,555	$	23,290	$	26,012

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