Enzo Biochem Reports Fourth Quarter and Fiscal Year 2024 Results and Announces Cash Dividend
Enzo Biochem (ENZ) reported financial results for fiscal year 2024, showing revenue growth of 3% to $31.9 million. The company's industrial customer sales increased 46%, driven by drug development and cell therapy focus. Gross margin improved to 46% from 37% last year. Net loss from continuing operations was $9.8 million ($0.19 per share), compared to $25.0 million loss prior year. The company ended Q4 with $52.4 million in cash and announced a $0.10 per share cash dividend payable December 2, 2024. Q4 revenue declined 16% to $7.5 million due to ordering pattern shifts.
Enzo Biochem (ENZ) ha riportato i risultati finanziari per l'anno fiscale 2024, mostrando una crescita dei ricavi del 3% a 31,9 milioni di dollari. Le vendite ai clienti industriali dell'azienda sono aumentate del 46%, trainate dalle attività di sviluppo farmaci e dalla focalizzazione sulla terapia cellulare. Il margine lordo è migliorato al 46% rispetto al 37% dell'anno precedente. La perdita netta dalle operazioni continuative è stata di 9,8 milioni di dollari (0,19 dollari per azione), rispetto a una perdita di 25,0 milioni di dollari dell'anno precedente. L'azienda ha chiuso il quarto trimestre con 52,4 milioni di dollari in cassa e ha annunciato un dividendo in contante di 0,10 dollari per azione, pagabile il 2 dicembre 2024. I ricavi del quarto trimestre sono diminuiti del 16% a 7,5 milioni di dollari a causa dei cambiamenti nei modelli di ordinazione.
Enzo Biochem (ENZ) informó los resultados financieros para el año fiscal 2024, mostrando un crecimiento de ingresos del 3% a 31.9 millones de dólares. Las ventas de la empresa a clientes industriales aumentaron un 46%, impulsadas por el desarrollo de fármacos y el enfoque en la terapia celular. El margen bruto mejoró al 46% desde el 37% del año pasado. La pérdida neta de las operaciones continuas fue de 9.8 millones de dólares (0.19 dólares por acción), en comparación con una pérdida de 25.0 millones de dólares el año anterior. La empresa cerró el cuarto trimestre con 52.4 millones de dólares en efectivo y anunció un dividendo en efectivo de 0.10 dólares por acción, que se pagará el 2 de diciembre de 2024. Los ingresos del cuarto trimestre disminuyeron un 16% a 7.5 millones de dólares debido a cambios en los patrones de pedidos.
Enzo Biochem (ENZ)는 2024 회계연도 재무 결과를 발표하며 수익이 3% 증가하여 3,190만 달러에 도달했다고 보고했습니다. 회사의 산업 고객 판매는 약물 개발 및 세포 치료에 대한 집중으로 46% 증가했습니다. 총 마진은 작년의 37%에서 46%로 개선되었습니다. 지속적인 운영에서의 순손실은 980만 달러 (주당 0.19 달러)로, 지난해의 2,500만 달러 손실과 비교됩니다. 회사는 4분기를 5,240만 달러 현금으로 마감했으며, 2024년 12월 2일에 지급될 주당 0.10 달러 현금 배당금을 발표했습니다. 4분기 수익은 주문 패턴 변화로 인해 16% 감소하여 750만 달러에 이릅니다.
Enzo Biochem (ENZ) a annoncé les résultats financiers pour l'exercice 2024, montrant une croissance des revenus de 3% à 31,9 millions de dollars. Les ventes aux clients industriels de l'entreprise ont augmenté de 46%, soutenues par le développement de médicaments et l'accent mis sur la thérapie cellulaire. La marge brute s'est améliorée à 46% contre 37% l'année dernière. La perte nette des opérations continues s'est élevée à 9,8 millions de dollars (0,19 dollar par action), contre une perte de 25,0 millions de dollars l'année précédente. L'entreprise a terminé le quatrième trimestre avec 52,4 millions de dollars en liquidités et a annoncé un dividende en espèces de 0,10 dollar par action, payable le 2 décembre 2024. Les revenus du quatrième trimestre ont diminué de 16% pour s'établir à 7,5 millions de dollars en raison de changements dans les modèles de commande.
Enzo Biochem (ENZ) hat die finanziellen Ergebnisse für das Geschäftsjahr 2024 bekannt gegeben, die ein Umsatzwachstum von 3% auf 31,9 Millionen Dollar zeigen. Der Umsatz an industrielle Kunden stieg um 46%, was durch den Fokus auf Arzneimittelentwicklung und Zelltherapie vorangetrieben wurde. Die Bruttomarge verbesserte sich von 37% im letzten Jahr auf 46%. Der Nettverlust aus laufenden Betrieben betrug 9,8 Millionen Dollar (0,19 Dollar pro Aktie), verglichen mit einem Verlust von 25,0 Millionen Dollar im Vorjahr. Das Unternehmen schloss das vierte Quartal mit 52,4 Millionen Dollar in bar ab und kündigte eine Bardividende von 0,10 Dollar pro Aktie an, die am 2. Dezember 2024 zu zahlen ist. Die Einnahmen im vierten Quartal sanken um 16% auf 7,5 Millionen Dollar aufgrund von Veränderungen im Bestellverhalten.
- Revenue growth of 3% to $31.9 million in FY2024
- 46% increase in industrial customer sales
- Gross margin improvement to 46% from 37%
- Reduced net loss from continuing operations to $9.8M from $25.0M
- Strong cash position of $52.4 million
- Announced $0.10 per share cash dividend
- Q4 revenue declined 16% to $7.5 million
- Continuing operations still showing net loss of $9.8 million
- $4.5 million payment for ransomware attack settlement
- Total net loss of $26.1 million in FY2024
Insights
Enzo Biochem's FY2024 results show mixed performance with some positive developments.
The
The Q4 revenue decline of
FARMINGDALE, N.Y., Oct. 29, 2024 (GLOBE NEWSWIRE) -- Enzo Biochem, Inc. (NYSE: ENZ) (“Enzo” or the “Company”) today announced financial results for the fiscal fourth quarter ended July 31, 2024 and the fiscal year ended July 31, 2024. The Company also announced that its board of directors had authorized a cash dividend of
Full Year Highlights
- The Company's revenues in the 2024 period of
$31.9 million improved year-over-year by3% . Enzo’s sales to its industrial customers, which includes biotech and pharmaceutical companies, increased46% driven by our drug development and cell and gene therapy focus. - The Company’s FY24 gross margin was
46% . The prior year gross margin of37% included a one-time inventory provision of finished goods. The 900-basis point improvement was driven by the non-repeating nature of the prior year inventory provision, reported revenue increase, mix of products sold, and ongoing cost containment initiatives, including removing over20% of non-performing SKUs from its product portfolio. - On a segment basis, the Life Sciences Products segment reported an operating loss of
$0.6 million , compared to a$4.7 million operating loss in the prior year period. The Life Sciences Products segment reported a net loss of$0.7 million , impacted by unfavorable foreign exchange, compared to a net loss of$3.3 million in the prior year period. The net loss in the Corporate & Other segment decreased year-over-year by$12.6 million . - Enzo ended the fourth quarter with aggregate cash and cash equivalents of
$52.4 million . - Net loss from continuing operations for FY24 was
$9.8 million or ($0.19) per common share, compared to a net loss in the prior year of$25.0 million or ($0.51) per common share. - Net loss, representing the results of continuing and discontinued operations for FY24, was
$26.1 million , or ($0.51) per common share. The prior year net income was$20.3 million , or$0.41 per common share, as a result of the gain from the sale of the clinical lab assets. The weighted average basic common shares outstanding as of July 31, 2024 was 50.9 million.
Fourth Quarter Highlights
- The Company's fourth-quarter revenue of
$7.5 million declined year-over-year by16% . This is due to a shift in ordering patterns. - The Company’s fourth-quarter gross margin was
43% . The prior year gross margin of35% included a one-time inventory provision of finished goods. The 800-basis point improvement was driven by the non-repeating nature of the inventory provision, mix of products sold and ongoing cost containment initiatives.
Recent Events
- The Board of Directors of the Company has declared a cash dividend of
$0.10 per share on its common stock, payable on December 2, 2024, to the holders of record as of the close of business on November 15, 2024. - There have been no material charges against the escrow fund of approximately
$5 million from the clinical lab asset sale. We expect the funds to be released to the Company before the end of the first quarter of our fiscal year 2025. - In August 2024, an agreement was reached with the Attorneys General of New York, New Jersey and Connecticut resolving inquiries pertaining to the ransomware attack the Company experienced in April 2023. The Company agreed to monetary relief in the amount of
$4.5 million , which was paid in September 2024.
“In a challenging life sciences market with increasing price pressures and regulatory changes, we are pleased that we reported single-digit revenue growth for the year with significant gross margin improvement,” said Kara Cannon, Enzo’s Chief Executive Officer. “Since our exit from the clinical lab business, Enzo has delivered on the objectives set last year to stabilize revenue, leverage an efficient global infrastructure, improve gross margin performance, and launch new products,” continued Ms. Cannon.
Enzo Biochem, Inc. has operated as a life sciences company for over 45 years. The primary business of Enzo today is conducted through its Life Sciences division, Enzo Life Sciences, which focuses on labeling and detection technologies from DNA to whole cell analysis, including 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 translational research and drug development areas, including cell biology, genomics, assays, immunohistochemistry, and small molecule chemistry. The Company monetizes its technology primarily via sales through our global distribution network and licensing. 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, 2024. 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 Officer |
| Enzo Biochem |
| 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 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 year ended July 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 used to determine 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 loss to Adjusted net loss and GAAP net loss to EBITDA and Adjusted EBITDA.
| ENZO BIOCHEM, INC. | |||||||||
| (in thousands, except per share data) | |||||||||
| Twelve months ended | |||||||||
| Selected operations data: | July 31, | ||||||||
| (audited) | |||||||||
| 2024 | 2023 | ||||||||
| Revenues | $ | 31,907 | $ | 31,061 | |||||
| Gross profit | 14,632 | 11,566 | |||||||
| Gross profit % | |||||||||
| Operating loss | (12,365 | ) | (24,736 | ) | |||||
| Net loss from continuing operations | (9,817 | ) | (25,022 | ) | |||||
| Net (loss) income from discontinued operations | (16,261 | ) | 45,310 | ||||||
| Net (loss) income | $ | (26,078 | ) | $ | 20,288 | ||||
| Net loss per common share- basic and diluted- Continuing Operations | ( | ) | ( | ) | |||||
| Net (loss) income per common share- basic and diluted- Discontinued Operations | ( | ) | |||||||
| Total net (loss) income per basic and diluted common share | ( | ) | |||||||
| Weighted average common shares outstanding - basic and diluted | 50,902 | 49,160 | |||||||
| Selected balance sheet data: | 7/31/2024 (unaudited) | 7/31/2023 (unaudited) | |||||||
| Cash and cash equivalents (includes restricted cash of | $ | 52,371 | $ | 83,373 | |||||
| Working capital | 45,237 | 58,467 | |||||||
| Stockholders' equity | 56,112 | 78,462 | |||||||
| Total assets | 85,764 | 121,880 | |||||||
The following table presents a reconciliation of reported net loss and basic and diluted net loss per share to Adjusted net loss and Adjusted basic and diluted net loss per share for the twelve months ended July 31, 2024. | |||
| ENZO BIOCHEM, INC. | |||
| Non-GAAP Reconciliation Table | |||
| (Unaudited, in thousands, except per share data) | |||
| Twelve months ended | |||
| July 31, | |||
| 2024 | |||
| Reported GAAP loss | $ | (26,078 | ) |
| Adjusted for: | |||
| Discrete legal matters | 2,377 | ||
| Fair value adjustment | 1,095 | ||
| Discrete separation expenses | 1,742 | ||
| Net loss from discontinued operations | 16,261 | ||
| Adjusted net loss | $ | (4,603 | ) |
| Weighted Shares Outstanding: | |||
| Basic and diluted | 50,902 | ||
| Basic and diluted earnings per share: | |||
| Basic and diluted net loss per share GAAP | ( | ) | |
| Basic and diluted net loss per share non-GAAP | ( | ) | |
The following table presents a reconciliation of reported GAAP net loss for the twelve months ended July 31, 2024 to EBITDA and Adjusted EBITDA: | |||||
| ENZO BIOCHEM, INC. | |||||
| EBITDA & Adjusted EBITDA Reconciliation Table | |||||
| (Unaudited, in thousands) | |||||
| Twelve months ended | |||||
| July 31, | |||||
| 2024 | |||||
| GAAP net loss | $ | (26,078 | ) | ||
| Plus (minus): | |||||
| Depreciation and amortization | 1,272 | ||||
| Interest (income) expense, net | (3,341 | ) | |||
| Income tax benefit - discontinued operations | (390 | ) | |||
| EBITDA | (28,537 | ) | |||
| Adjusted for: | |||||
| Discrete legal matters | 2,377 | ||||
| Fair value adjustment | 1,095 | ||||
| Discrete separation expenses | 1,742 | ||||
| Net loss from discontinued operations before income tax benefit | 16,651 | ||||
| Foreign exchange loss | 192 | ||||
| Adjusted EBITDA | $ | (6,480 | ) | ||
FAQ
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