Enzo Biochem Reports Fourth Quarter and Full Year 2020 Financial Results and Provides Business Update NYSE:ENZ

• Firm stories $19.5 million in income and EPS of ($0.07) within the fourth quarter with important margin growth supported by speedy response to COVID-19 market alternatives
• Q1 21 first two months’ income mirror continued constructive pattern

Convention name and reside webcast scheduled for in the present day,
Tuesday, October 13, 2020 at 4:30 pm (ET)

New York, NY, Oct. 13, 2020 (GLOBE NEWSWIRE) — Enzo Biochem, Inc. (NYSE:ENZ), a number one biosciences and diagnostics firm, in the present day reported monetary outcomes for the fourth quarter and full yr ended July 31, 2020 and supplied a enterprise replace on current company and operational developments.

Operational Highlights:

• The corporate made substantial progress on its three goals of implementing effectivity measures, constructing infrastructure for progress, and reworking from a bifurcated life sciences firm to an built-in end-to-end diagnostics firm even within the face of COVID-19 associated challenges.
• Acquired Emergency Use Authorization (EUA) in July for its proprietary product for the detection of SARS-CoV-2. FDA EUA demonstrated the Firm’s distinctive built-in in-house functionality in creating low price, excessive throughput delicate detection platforms for COVID-19 in addition to different illnesses. The Authorization for a complete platform helps speedy scalability of testing, together with inner use inside Enzo’s Medical Lab in addition to the flexibility to promote instrumentation, consumables, and reagents to different diagnostic testing clients. The Authorization consists of three numerous platforms: Enzo’s proprietary GENFLEX™ automated high-throughput platform, a medium-throughput business commonplace platform, and Enzo’s guide workflow.  Launching a COVID-19 take a look at on its proprietary GENFLEX ™ molecular diagnostics platform serves as a case research as the corporate develops different exams on the platform together with an higher respiratory panel, STDs and expanded ladies’s well being panels.
• Expanded reagent and provide manufacturing in addition to doubled capability for molecular laboratory testing providers on the Firm’s amenities in Farmingdale, NY to satisfy quickly rising demand for its PCR-based COVID-19 molecular and serological testing. Most laboratories, together with these which are a part of built-in firms, have been topic to the provision chain points that constantly introduced challenges within the present pandemic atmosphere.
• Partnered with the New York Division of the Neighborhood Pharmacy Enhanced Companies Community to offer entry to COVID-19 testing at 52 of the community’s 155 pharmacies throughout New York State.
• Partnered with schools and universities to offer molecular and antibody testing for COVID-19 to the campus neighborhood in preparation for reopening and continued operations.

Monetary Highlights:

• Month-to-month revenues have registered regular features since April when exercise was decrease on account of the sharp fall-off in medical visits and the closure of many buyer amenities attributable to COVID-19 lockdowns. Sequentially, quarterly revenues superior 15%. This constructive pattern has prolonged into the primary two months of FY 2021.
• The corporate’s present yr income run-rate exceeds $100 million, which might translate to 30% topline progress on an annualized foundation. Continued progress in operations and income potential is additional supported by the just lately introduced expanded capability of Enzo’s proprietary GENFLEX ™ platform that ought to allow the Firm to course of roughly a million molecular exams each year inside its Enzo Medical Labs division.
• Gross margins within the Enzo Medical Labs division reached almost 40% within the fourth quarter.
• 4Q20 internet loss confirmed a $2 million enchancment over the identical interval a yr in the past with whole internet lack of $3.3 million.

The fourth quarter encompassed three distinct intervals for Enzo from an operational standpoint. Whereas Might was a continuation of the earlier quarter’s low base (as a result of NY State PAUSE Keep-at-Dwelling order), June was the start of the restoration whereas July was a robust month for the corporate. Enzo’s resilience and energy in assembly the challenges posed by the COVID-19 pandemic has been demonstrated within the fourth quarter of fiscal 2020. The corporate is on a path of continued progress with total company profitability a focused objective in present Fiscal 2021 based mostly on current traits. 

“2020 has been a transformational yr for Enzo as we expanded our place as a totally built-in diagnostic firm and a turnkey resolution for all wants in testing analysis and product improvement.  Our speedy response to market demand for COVID-19 testing services demonstrates our agility and suppleness and our capability to maximise new market alternatives by quickly bringing correct and dependable testing and lab providers to varsities, establishments, pressing care amenities, and our core multi-state community of medical practices,” stated Barry Weiner, President of Enzo.  “Importantly, we’re properly positioned to copy this success in response to new rising well being points and desires, together with higher respiratory, STD and ladies’s wants.” 

“We have been in a position to acknowledge substantial progress in the direction of three basic goals this yr together with implementing a spread of latest effectivity measures, constructing infrastructure that may assist our continued progress, and reworking from a bifurcated life sciences firm to an built-in diagnostics firm.  Our efforts additionally as soon as once more reinforce some great benefits of our open system platform that may present the important ranges of flexibility to satisfy the rising demand for molecular testing providers,” stated Elazar Rabbani, PhD., Chairman and Chief Govt Officer of Enzo. “I’m particularly pleased with the dedication and dedication of each member of our workforce in going through the various challenges introduced by the COVID-19 pandemic.”

Fourth Quarter 2020 Monetary Outcomes

• Complete fourth quarter income was $19.5 million, a lower of 6.6% from $20.9 million within the fourth quarter final yr, however a rise of 15% sequentially as the corporate started to get better from the COVID-19 pandemic “keep at residence” orders. Consolidated gross margin was 40.0% in comparison with 30.0% a yr in the past.
• Enzo Medical Lab income elevated 4.6% to $13.7 million from $13.1 million within the fourth quarter 2019 and greater than 30% sequentially. The yr over yr enchancment was pushed by 10% progress in accession depend and internet income per accession attributable to elements associated to the COVID-19 pandemic. Medical providers gross margin elevated to 38% from 14% within the fourth quarter 2019, primarily attributable to favorable combine from elevated COVID-19 testing in addition to from ongoing cost-saving initiatives
• Enzo Life Sciences income of $5.8 million decreased 26% from $7.9 million within the fourth quarter 2019 as a result of influence of COVID-19 pandemic globally. Gross margin was 46%, in comparison with 58% within the earlier yr’s quarter and 48% within the third quarter   attributable to unfavorable product combine and the influence of the COVID-19 pandemic.
• Analysis and improvement bills elevated 40% to $1.2 million, or 6% of whole revenues, from $0.8 million, or 4% of whole revenues, within the yr in the past interval. The rise is usually attributable to investments within the proprietary GENFLEX™ platform. Promoting, basic and administrative bills of $10.1 million declined from $10.9 million in yr in the past interval, though it was flat as a proportion of income.
• GAAP internet loss was $3.3 million or ($0.07) per share versus a lack of $5.4 million, or ($0.11) per share, within the year-ago quarter. Adjusted EBITDA loss within the quarter and yr in the past intervals was $2.7 million and $5.0 million, respectively. The year-over-year enchancment was pushed primarily by improve in gross margin (from COVID-19 testing and decrease reagent and reference lab prices) and decrease SG&A bills from headcount efficiencies, and lowered intangibles amortization and journey.
• Adjusted EBITDA is described under below “Adjusted Monetary Measures” and is reconciled to probably the most instantly comparable GAAP monetary measure, GAAP revenue (loss), within the accompanying tables.
• Money and money equivalents totaled $48 million on the finish of the fiscal yr. The corporate added $11.4 million of capital in the course of the fiscal yr to strengthen its steadiness sheet by numerous grants, loans, and superior funds. As of July 31, 2020, the corporate had 47.9 million shares excellent. 

Full Yr 2020 Monetary Outcomes:

• Complete revenues of $76.0 million in the course of the twelve-month interval ended July 31, 2020, decreased 6% in comparison with revenues of $81.2 million for a similar interval in 2019. The lower is primarily attributable to COVID-19 pandemic-related accession quantity declines and Enzo Life Sciences income slowdown, offset by elevated COVID-19 testing providers that commenced late within the third quarter of the fiscal yr.
• Consolidated gross margin was 31%, as in comparison with 29% within the year-ago interval. Companies gross margin elevated 800 foundation factors to 21%, primarily attributable to favorable combine from elevated COVID-19 testing in addition to from ongoing cost-saving initiatives. Product gross margin decreased 400 foundation factors to 50%, primarily attributable to pandemic-related elements.
• Analysis and improvement bills, internet, have been $4.4 million for the yr ended July 31, 2020, or 5.9% of whole income, in comparison with $3.2 million, or 3.9% of whole income, for a similar interval in 2019. The rise is usually attributable to investments within the proprietary GENFLEX™ platform. Promoting, basic and administrative bills for the yr ended July 31, 2020 have been $43.0 million, or 57% of whole income, in comparison with $44.3 million, or 55% of whole income for a similar interval in 2019. The lower is primarily attributable to price effectivity measures counterbalanced by prices associated to COVID-19 testing.  Authorized bills, together with proxy associated prices, amounted to $6.7 million, up from $3.0 million.
• Web loss for the yr ended July 31, 2020 was $28.5 million, or $(0.60) per share, primary and diluted, in comparison with internet revenue of $2.5 million, or $0.05 per share, primary and diluted, for the yr ended July 31, 2019, which included authorized settlements, internet, of roughly $29 million.  Excluding authorized settlements, internet, the fiscal yr 2019 adjusted internet loss amounted to $26.4 million.

Convention Name and Webcast Data

The Firm will host a convention name on Tuesday, October 13, 2020, at 4:30 pm, Japanese Daylight Time, to overview the medical, company, and monetary highlights. To take part within the convention name, please dial the next numbers previous to the beginning of the decision or click on the webcast hyperlink under to take part over the web:

A replay of the decision can be obtainable through webcast for on-demand listening shortly after completion of the decision on the Investor Relations part of the corporate’s web site, https://www.enzo.com, and can stay obtainable for roughly 90 days. Please entry the Firm’s web site at the least quarter-hour forward of the convention to register, obtain, and set up any needed audio software program.

Adjusted Monetary Measures

To adjust to Regulation G promulgated pursuant to the Sarbanes-Oxley Act, Enzo Biochem hooked up to this information launch and can put up to the investor relations part of the corporate’s web site (https://www.enzo.com) any reconciliation of variations between GAAP and Adjusted monetary info that could be required in reference to issuing the Firm’s quarterly monetary outcomes.

The Firm makes use of EBITDA as a measure of efficiency to reveal earnings unique of curiosity, taxes, depreciation and amortization. Changes to EBITDA are for objects of a non-recurring nature and are reconciled on the desk supplied. The Firm manages its enterprise based mostly on its working money flows. The Firm, in its each day administration of its enterprise affairs and evaluation of its month-to-month, quarterly and annual efficiency, makes its choices based mostly on money flows, not on the amortization of belongings obtained by historic actions. The Firm, in managing its present and future affairs, can’t have an effect on the amortization of the intangible belongings to any materials diploma, and subsequently makes use of EBITDA as its main administration information. Since an out of doors investor might base its analysis of the Firm’s efficiency based mostly on the Firm’s internet loss not its money flows, there’s a limitation to the EBITDA measurement. EBITDA will not be, and shouldn’t be thought of, a substitute for internet loss, loss from operations, or every other measure for figuring out working efficiency of liquidity, as decided below accounting ideas typically accepted in the USA (GAAP). Probably the most instantly comparable GAAP reference within the Firm’s case is the removing of curiosity, taxes, depreciation and amortization.  

We refer you to the tables hooked up to this press launch, which incorporates reconciliation tables of GAAP to Adjusted internet revenue (loss) and EBITDA to Adjusted EBITDA.  

About Enzo Biochem, Inc.

Enzo Biochem is a pioneer in molecular diagnostics, main the convergence of medical laboratories, life sciences and mental property by the event of distinctive diagnostic platform applied sciences that present quite a few benefits over earlier requirements. A worldwide firm, Enzo Biochem makes use of cross-functional groups to develop and deploy merchandise, methods and providers that meet the ever-changing and quickly rising wants of well being care in the present day and into the longer term. Underpinning Enzo Biochem’s merchandise and applied sciences is a broad and deep mental property portfolio, with 475 issued patents worldwide together with intensive enabling applied sciences and platforms. 

Ahead-Trying Statements

Aside from historic info, the issues mentioned on this information launch could also be thought of “forward-looking” statements inside the which means of Part 27A of the Securities Act of 1933, as amended, and Part 21E of the Securities Trade Act of 1934, as amended. Such statements embrace declarations relating to the intent, perception or present expectations of the Firm and its administration, together with these associated to money circulate, gross margins, income, and bills that are depending on quite a few elements exterior of the management of the Firm together with, inter alia, the markets for the Firm’s services, prices of products and providers, different bills, authorities rules, litigation, and basic enterprise circumstances. See Danger Components within the Firm’s Type 10-Ok for the fiscal yr ended July 31, 2019 and Type 10-Q for the interval ended July 31, 2020. Buyers are cautioned that any such forward-looking statements usually are not ensures of future efficiency and contain quite a few dangers and uncertainties that might materially have an effect on precise outcomes. The Firm disclaims any obligations to replace any forward-looking assertion on account of developments occurring after the date of this press launch.

Contacts:

Enzo Biochem, Inc.

David Bench, CFO
212-583-0100
dbench@enzo.com 

Buyers:

LifeSci Advisors, LLC
Jeremy Feffer
212-915-2568
jeremy@lifesciadvisors.com 

Anreder & Firm
Steven Anreder
212-532-3232
Steven.anreder@anreder.com

Media:
Berry & Firm Public Relations
Marisa Monte
212-253-8881
mmonte@berrypr.com 

The next desk presents a reconciliation of reported internet (loss) revenue and primary and diluted internet (loss) revenue per share to non-GAAP internet (loss) revenue and primary and diluted internet (loss) revenue per share for the three and twelve months ended July 31, 2020 and 2019:

The next desk presents a reconciliation of reported internet (loss) revenue for the three and twelve months ended July 31, 2020 and 2019, respectively to EBITDA and Adjusted EBITDA:

ENZO BIOCHEM, INC.
EBITDA & Adjusted EBITDA Reconciliation Desk
(Unaudited, in 1000’s)