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 inthe United States , driven by increased product demand in the drug development and cell and gene therapy market segments. Revenue for the six months endedJanuary 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 fromJuly 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 ofJanuary 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 ofJanuary 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
About
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
Enzo Biochem Contacts |
For |
631-755-5500 peckert@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
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.
(in thousands, except per share data) | |||||||||||||||
Three months ended | Six months ended | ||||||||||||||
Selected operations data: | |||||||||||||||
(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 | ( | ) | ( | ) | ( | ) | ( | ) | |||||||
Net loss per common share- basic and diluted- Discontinued Operations | ( | ) | ( | ) | ( | ) | ( | ) | |||||||
Total net loss per basic and diluted common share | ( | ) | ( | ) | ( | ) | ( | ) | |||||||
Weighted average common shares outstanding - basic and diluted | 50,490 | 48,729 | 50,337 | 48,725 | |||||||||||
Selected balance sheet data: | |||||||||||||||
Cash and cash equivalents (includes restricted cash of | $ | 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 | |||||||||||||||
Adjusted Net income (loss) Reconciliation Table | |||||||||||||||
(Unaudited, in thousands, except per share data) | |||||||||||||||
Three months ended | Six months ended | ||||||||||||||
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 | ( | ) | ( | ) | ( | ) | ( | ) | |||||||
Basic and diluted net income (loss) per share adjusted | ( | ) | ( | ) | ( | ) | |||||||||
The following table presents a reconciliation of reported GAAP net loss for the three and six months ended | |||||||||||||||
EBITDA & Adjusted EBITDA Reconciliation Table | |||||||||||||||
(Unaudited, in thousands) | |||||||||||||||
Three months ended | Six months ended | ||||||||||||||
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 | ) |
Source:
2024 GlobeNewswire, Inc., source