Enzo Biochem Reports Second Quarter Fiscal 2024 Results and Provides Business Update
March 13 2024 - 4:26PM
Enzo Biochem, Inc. (NYSE: ENZ) (“Enzo” or the “Company”) today
announced financial results for the second quarter ended January
31, 2024.
Second Quarter Highlights
- The Company's Life
Science division's second-quarter revenue of $8.5 million improved
year-over-year by 14%. During the 2024 period, we experienced a 25%
revenue increase in the United States, driven by increased product
demand in the drug development and cell and gene therapy market
segments. Revenue for the six months ended January 31, 2024 of
$16.4 million improved 12% compared to the same period in the prior
year.
- The Life
Science division's second-quarter gross margin was 49%, which
improved by 1,000 basis points year-over-year from 39%, and was
also a sequential 500 basis point improvement from 44%. The
six-month YTD margin was 47% which was also a 1,000 basis point
improvement compared to the prior year. This favorable result was
driven by the reported revenue increase, mix of products sold, and
ongoing cost containment initiatives, including, but not limited
to, a workforce reduction for continuing operations.
- The Life Science
division reported second-quarter net income of $1.1 million,
compared to net income of $0.2 million in the prior year period.
The net loss in the Corporate & Other segment decreased
year-over-year by $1.2 million.
- Enzo ended the
second quarter with aggregate cash and cash equivalents of $60.2
million, a reduction of $23.1 million from July 31, 2023, primarily
due to the significant paydown of accounts payable and accrued
liabilities post the clinical lab asset sale. The Company’s current
ratio was 3.2 as of January 31, 2024.
- Net loss from
continuing operations for Q2 FY24 was $0.9 million or ($0.02) per
common share, compared to a net loss in the prior year’s second
quarter of $2.9 million or ($0.06) per common share.
- Net loss,
representing the results of continuing and discontinued operations
for Q2 FY24, was $3.1 million, or ($0.06) per common share,
compared to a net loss in the prior year’s second quarter of $11.3
million, or ($0.23) per common share. The weighted average basic
common shares outstanding as of January 31, 2024, was 50.5
million.
“Enzo’s strategy is to deliver sustainable, profitable revenue
growth through market focus, technical strength, and operational
conservatism. We are pleased to report a third consecutive quarter
with double-digit revenue growth in the life science division, and
I am proud of the team's hard work resulting in higher gross margin
and improved profitability in the second quarter within our Life
Science division,” said Kara Cannon, Enzo’s Chief Executive
Officer. These achievements were driven by aligning our products in
high-growth market segments made up of our drug development
customers, while relying on our existing, stable global
infrastructure to provide comprehensive, quality customer service.
I am very encouraged by our financial and operational progress, and
I am optimistic about our ability to maintain this positive
momentum to deliver on longer-term goals.”
About Enzo Biochem
Enzo Biochem, a pioneer in molecular diagnostics, contributes to
advancing healthcare with its comprehensive portfolio of technical
platforms and reagent sets supporting a diverse range of biomedical
research and translational science needs. A leader in innovation
and product development for over 45 years, scientists have trusted
Enzo Biochem to manufacture and supply a comprehensive portfolio of
thousands of high-quality products, including antibodies, genomic
probes, assays, biochemicals, and proteins. The Company’s
proprietary products and technologies play central roles in all
translational research and drug development areas, including cell
biology, genomics, assays, immunohistochemistry, and small molecule
chemistry. Enzo Biochem, Inc.’s Life Science division supports the
work of research centers and industry partners, shaping the future
of healthcare worldwide. Enzo Biochem, Inc. has a broad and deep
intellectual property portfolio, with patent coverage across many
vital enabling technologies. For more information, please
visit Enzo.com or follow Enzo Biochem
on X 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, cost of goods sold, 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, 2023. 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.
Enzo Biochem
Contacts |
For Enzo
Biochem: |
Patricia Eckert, Chief Financial
OfficerEnzo Biochem631-755-5500peckert@enzo.com |
Use of Non-GAAP Financial Measures by Enzo
The non-GAAP financial measures contained in this press release
(including, without limitation, Adjusted net income (loss), EBITDA,
and Adjusted EBITDA), are not GAAP measures of the Company’s
financial performance or liquidity and should not be considered as
alternatives to net income (loss) as a measure of financial
performance or cash flows from operations as measures of liquidity,
or any other performance measure derived in accordance with GAAP. A
reconciliation of such non-GAAP measures is included in the
presentation of the Company’s financial results for the second
quarter ended January 31, 2024 contained herein and is also
available in the investor relations section of the Company’s
website (https://www.enzo.com).
The Company believes the presentation of these non-GAAP measures
provides useful additional information to investors because they
provide information consistent with that on which management
evaluates the financial performance of the Company. The Company
manages its business based on its operating cash flows. It refers
to EBITDA as its primary indicator of performance, and refers to
Adjusted EBITDA to further exclude items of a non-recurring nature.
It is reasonable to expect that one or more excluded items will
occur in future periods, though the amounts recognized can vary
significantly from period to period. You are encouraged to evaluate
each adjustment to a non-GAAP financial measure and the reasons
management considers it appropriate for supplemental analysis. Our
presentation of these measures should not be construed as an
inference that our future results will be unaffected by unusual or
non-recurring items.
We refer you to the tables attached to this press release, which
includes reconciliation tables of GAAP net income (loss) to
Adjusted net income (loss) and GAAP net income (loss) to EBITDA and
Adjusted EBITDA.
ENZO
BIOCHEM, INC. |
(in thousands,
except per share data) |
|
|
|
|
|
|
|
|
|
Three months
ended |
|
Six months
ended |
Selected operations data: |
January
31, |
|
January
31, |
|
(unaudited) |
|
(unaudited) |
|
|
|
|
|
|
|
|
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
|
|
|
|
|
|
|
|
Revenues |
$ |
8,553 |
|
|
$ |
7,514 |
|
|
$ |
16,359 |
|
|
$ |
14,617 |
|
|
|
|
|
|
|
|
|
Gross
profit |
|
4,224 |
|
|
|
2,898 |
|
|
|
7,679 |
|
|
|
5,412 |
|
|
|
|
|
|
|
|
|
Gross profit
% |
|
49 |
% |
|
|
39 |
% |
|
|
47 |
% |
|
|
37 |
% |
|
|
|
|
|
|
|
|
Operating
loss |
|
(2,185 |
) |
|
|
(4,545 |
) |
|
|
(7,655 |
) |
|
|
(9,173 |
) |
|
|
|
|
|
|
|
|
Net loss
from continuing operations |
|
(863 |
) |
|
|
(2,892 |
) |
|
|
(6,538 |
) |
|
|
(8,245 |
) |
Net loss
from discontinued operations |
|
(2,198 |
) |
|
|
(8,428 |
) |
|
|
(3,139 |
) |
|
|
(13,710 |
) |
Net
loss |
$ |
(3,061 |
) |
|
$ |
(11,320 |
) |
|
$ |
(9,677 |
) |
|
$ |
(21,955 |
) |
|
|
|
|
|
|
|
|
Net loss per
common share- basic and diluted- Continuing Operations |
($0.02 |
) |
|
($0.06 |
) |
|
($0.13 |
) |
|
($0.17 |
) |
Net loss per
common share- basic and diluted- Discontinued Operations |
($0.04 |
) |
|
($0.17 |
) |
|
($0.06 |
) |
|
($0.28 |
) |
Total net
loss per basic and diluted common share |
($0.06 |
) |
|
($0.23 |
) |
|
($0.19 |
) |
|
($0.45 |
) |
|
|
|
|
|
|
|
|
Weighted
average common shares outstanding - basic and diluted |
|
50,490 |
|
|
|
48,729 |
|
|
|
50,337 |
|
|
|
48,725 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selected balance sheet data: |
1/31/2024 (unaudited) |
|
7/31/2023 (unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
Cash and
cash equivalents (includes restricted cash of $1,000 at
7/31/23) |
$ |
60,241 |
|
|
$ |
83,373 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Working
capital |
|
55,637 |
|
|
|
58,467 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders' equity |
|
70,775 |
|
|
|
78,462 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
assets |
|
99,077 |
|
|
|
121,880 |
|
|
|
|
|
The following table
presents a reconciliation of reported net loss and basic and
diluted net loss per share to adjusted net income (loss) and basic
and diluted net loss per share adjusted, for the three and six
months ended January 31, 2024 and 2023: |
|
|
|
|
|
|
|
|
ENZO
BIOCHEM, INC. |
Adjusted Net income
(loss) Reconciliation Table |
(Unaudited, in
thousands, except per share data) |
|
|
|
|
|
|
|
|
|
Three months
ended |
|
Six months
ended |
|
January 31, |
|
January 31, |
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
|
|
|
|
|
|
|
|
Reported
GAAP net loss |
$ |
(3,061 |
) |
|
$ |
(11,320 |
) |
|
$ |
(9,677 |
) |
|
$ |
(21,955 |
) |
Adjusted
for: |
|
|
|
|
|
|
|
Discrete legal matters |
|
613 |
|
|
|
174 |
|
|
|
1,476 |
|
|
|
196 |
|
Fair value adjustment |
|
383 |
|
|
|
- |
|
|
|
711 |
|
|
|
- |
|
Discrete separation expenses |
|
69 |
|
|
|
982 |
|
|
|
1,742 |
|
|
|
1,808 |
|
Strategic initiative expenses |
|
- |
|
|
|
759 |
|
|
|
- |
|
|
|
1,648 |
|
Discontinued operations loss |
|
2,198 |
|
|
|
8,428 |
|
|
|
3,139 |
|
|
|
13,710 |
|
Adjusted net income (loss) |
$ |
202 |
|
|
$ |
(977 |
) |
|
$ |
(2,609 |
) |
|
$ |
(4,593 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted
Shares Outstanding: |
|
|
|
|
|
|
|
Basic and
diluted |
|
50,490 |
|
|
|
48,729 |
|
|
|
50,337 |
|
|
|
48,725 |
|
|
|
|
|
|
|
|
|
Basic and
diluted earnings per share: |
|
|
|
|
|
|
|
Basic and
diluted net income (loss) per share GAAP |
($0.06 |
) |
|
($0.23 |
) |
|
($0.19 |
) |
|
($0.45 |
) |
|
|
|
|
|
|
|
|
Basic and
diluted net income (loss) per share adjusted |
|
$0.00 |
|
|
($0.02 |
) |
|
($0.05 |
) |
|
($0.09 |
) |
|
|
|
|
|
|
|
|
The following table
presents a reconciliation of reported GAAP net loss for the three
and six months ended January 31, 2024 and 2023, respectively to
EBITDA and Adjusted EBITDA: |
|
|
|
|
|
|
|
|
ENZO
BIOCHEM, INC. |
EBITDA &
Adjusted EBITDA Reconciliation Table |
(Unaudited, in
thousands) |
|
|
|
|
|
|
|
|
|
Three months
ended |
Six months
ended |
|
January 31, |
|
January 31, |
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
|
|
|
|
|
|
|
|
GAAP net
loss |
$ |
(3,061 |
) |
|
$ |
(11,320 |
) |
|
$ |
(9,677 |
) |
|
$ |
(21,955 |
) |
Plus
(minus): |
|
|
|
|
|
|
|
Depreciation and amortization |
|
267 |
|
|
|
262 |
|
|
|
537 |
|
|
|
510 |
|
Interest income, net |
|
(893 |
) |
|
|
(63 |
) |
|
|
(1,870 |
) |
|
|
(135 |
) |
EBITDA |
|
(3,687 |
) |
|
|
(11,121 |
) |
|
|
(11,010 |
) |
|
|
(21,580 |
) |
|
|
|
|
|
|
|
|
Adjusted
for: |
|
|
|
|
|
|
|
Discrete legal matters |
|
613 |
|
|
|
174 |
|
|
|
1,476 |
|
|
|
196 |
|
Fair value adjustment |
|
383 |
|
|
|
- |
|
|
|
711 |
|
|
|
- |
|
Discrete separation expenses |
|
69 |
|
|
|
982 |
|
|
|
1,742 |
|
|
|
1,808 |
|
Strategic initiative expenses |
|
- |
|
|
|
759 |
|
|
|
- |
|
|
|
1,648 |
|
Discontinued operations loss |
|
2,198 |
|
|
|
8,428 |
|
|
|
3,139 |
|
|
|
13,710 |
|
Foreign exchange (gain) loss |
|
(693 |
) |
|
|
(1,472 |
) |
|
|
318 |
|
|
|
(675 |
) |
Adjusted
EBITDA |
$ |
(1,117 |
) |
|
$ |
(2,250 |
) |
|
$ |
(3,624 |
) |
|
$ |
(4,893 |
) |
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