Enzo Biochem(US:ENZ)2019-03-11 21:01Financial Performance - Revenues for the three months ended January 31, 2019, were $19,327,000, down 26.3% from $26,152,000 for the same period in 2018[15] - Operating loss for the six months ended January 31, 2019, was $14,871,000, compared to a loss of $3,654,000 for the same period in 2018, representing an increase in loss of 308.5%[15] - Net loss for the three months ended January 31, 2019, was $8,408,000, compared to a loss of $901,000 for the same period in 2018, indicating a significant increase in loss of 833.5%[19] - The company reported a comprehensive loss of $14,317,000 for the six months ended January 31, 2019, compared to a loss of $2,036,000 for the same period in 2018[19] - For the six months ended January 31, 2019, Enzo Biochem reported a net loss of $14,389,000 compared to a net loss of $1,541,000 for the same period in 2018, indicating a significant increase in losses[27] - The company reported a comprehensive loss of $8.61 million for the three months ended January 31, 2019[19] - Total revenues for the six months ended January 31, 2019, were $26.297 million, a decrease from $38.264 million in the same period of 2018[55] - Consolidated revenues for the three months ended January 31, 2019, were $19.3 million, a decrease of 26.2% compared to $26.2 million for the same period in 2018[16] - Operating loss for the three months ended January 31, 2019, was $8.9 million, compared to an operating loss of $3.0 million for the same period in 2018[16] - Consolidated revenues for the six months ended January 31, 2019, were $40.587 million, a decrease from $53.028 million for the same period in 2018, representing a decline of approximately 23.5%[91] Assets and Liabilities - Total assets decreased from $101,660,000 in July 2018 to $89,120,000 in January 2019, a decline of approximately 12.3%[10] - Total current assets decreased from $83,200,000 in July 2018 to $63,640,000 in January 2019, a reduction of 23.5%[10] - Total stockholders' equity decreased from $81,121,000 in July 2018 to $67,497,000 in January 2019, a decline of 16.7%[13] - Cash and cash equivalents decreased from $60,041,000 in July 2018 to $41,978,000 in January 2019, a decrease of 30.1%[10] - Total liabilities increased to $21.62 million as of January 31, 2019, compared to $20.54 million as of July 31, 2018[10] - The company’s accumulated deficit increased to $266.61 million as of January 31, 2019, from $252.22 million as of July 31, 2018[13] Cash Flow and Expenditures - Total cash used in operating activities for the six months ended January 31, 2019 was $(14,845,000), a decrease from cash provided of $835,000 in the prior year[27] - Cash and cash equivalents at the end of the period were $42,728,000, down from $64,468,000 at the end of the previous year[27] - Capital expenditures for the six months ended January 31, 2019 were $(6,988,000), compared to $(1,066,000) for the same period in 2018, reflecting increased investment[27] - Capital expenditures for the three months ended January 31, 2018, were $604 million, while for the six months ended January 31, 2019, they were $6,988 million[90][91] Revenue Sources - Clinical services revenue accounted for 65% of total net revenues for the six months ended January 31, 2019, down from 72% in the same period of 2018[47] - Third-party payer revenue for the three months ended January 31, 2019, was $6.509 million, representing 54% of total revenue, compared to $11.102 million and 59% in the same period of 2018[54] - Medicare revenue increased to $2.338 million (20% of total revenue) for the three months ended January 31, 2019, from $3.230 million (17%) in the same period of 2018[54] - Products revenue for the three months ended January 31, 2019, was $7.327 million, slightly up from $7.122 million in the same period of 2018[58] - The company reported no royalty income for the three and six months ended January 31, 2019, compared to $300,000 and $561,000 in the same periods of 2018[57] Research and Development - Research and development expenses for the six months ended January 31, 2019, were $1,561,000, slightly up from $1,559,000 in the same period in 2018[15] - Research and development expenses for the three months ended January 31, 2019, were $0.81 million, compared to $1.56 million for the same period in 2018[16] - Research and development expenses for the six months ended January 31, 2019, totaled $1.561 million, slightly down from $1.559 million in the prior year, reflecting a stable investment in innovation[91] Legal and Regulatory Matters - The company has ongoing patent infringement cases, with a settlement agreement with Roche Diagnostics for $21 million reached on February 5, 2019[92] - The company is appealing several court decisions regarding patent invalidity, including the '180 and '405 patents[92] - The company believes that any potential liabilities from ongoing legal matters will not have a material adverse effect on its financial position or results of operations[94] Shareholder and Stock Information - Weighted average common shares outstanding for the three months ended January 31, 2019, were 47,199,000, compared to 46,941,000 for the same period in 2018[15] - The company excluded approximately 78,000 potential common shares from the calculation of diluted earnings per share for the six months ended January 31, 2019 due to antidilutive effects[45] - As of January 31, 2019, there were 2,367,707 stock options outstanding with a weighted average exercise price of $4.53[78] - The Company awarded 81,500 Performance Stock Units (PSUs) to executive officers, with payouts based on revenue and Adjusted EBITDA growth over a three-year performance period[82] - The intrinsic value of in-the-money stock options at the end of the period was $811,000[78] Accounting Changes - The company adopted a new accounting standard on revenue recognition effective August 1, 2018, which resulted in a restatement of total revenues for the six months ended January 31, 2018 to $53,028,000[31] - The company expects the adoption of the new lease accounting standard to materially impact its consolidated financial statements starting August 1, 2019[38] - The total revenues for the six months ended January 31, 2018 were adjusted to $53,028 thousand after the adoption of the new accounting standard[34] - Total revenues for the three months ended January 31, 2018, were $26,152 million, down from $26,952 million reported previously, reflecting an adjustment of $(800) million due to a new accounting standard[36]