Enzo Biochem(ENZ) - 2024 Q2 - Quarterly Results

Enzo Biochem Q2 Fiscal 2024 Financial Results Second Quarter Highlights and Business Update The Life Science division drove strong Q2 performance with double-digit revenue growth and significant margin expansion - The company's strategy focuses on delivering sustainable, profitable revenue growth through market focus, technical strength, and operational conservatism[3] - The Life Science division's revenue growth was primarily driven by a 25% increase in the United States, fueled by higher product demand in the drug development and cell and gene therapy market segments[4] Q2 FY2024 Key Performance Highlights (YoY) | Metric | Q2 FY2024 | Q2 FY2023 | Change | | :--- | :--- | :--- | :--- | | Life Science Division Revenue | $8.5 million | - | +14% | | Life Science Division Gross Margin | 49% | 39% | +1,000 bps | | Life Science Division Net Income | $1.1 million | $0.2 million | +$0.9 million | | Net Loss from Continuing Operations | ($0.9) million | ($2.9) million | Improved by $2.0 million | | Net Loss (Continuing & Discontinued) | ($3.1) million | ($11.3) million | Improved by $8.2 million | | Cash and Cash Equivalents (as of Jan 31, 2024) | $60.2 million | - | - | Financial Performance The company presents detailed consolidated financial results and a reconciliation of GAAP to non-GAAP measures Consolidated Financial Results Q2 results show increased revenue, significantly improved gross margin, and a narrowed net loss from continuing operations Selected Operations Data (in thousands) | Metric | Three Months Ended Jan 31, 2024 | Three Months Ended Jan 31, 2023 | Six Months Ended Jan 31, 2024 | Six Months Ended Jan 31, 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% | | Net loss from continuing operations | ($863) | ($2,892) | ($6,538) | ($8,245) | | Total net loss | ($3,061) | ($11,320) | ($9,677) | ($21,955) | | Total net loss per share | ($0.06) | ($0.23) | ($0.19) | ($0.45) | Selected Balance Sheet Data (in thousands) | Metric | Jan 31, 2024 (unaudited) | Jul 31, 2023 (unaudited) | | :--- | :--- | :--- | | Cash and cash equivalents | $60,241 | $83,373 | | Working capital | $55,637 | $58,467 | | Stockholders' equity | $70,775 | $78,462 | | Total assets | $99,077 | $121,880 | Non-GAAP Financial Measures Reconciliation Reconciliation from GAAP to non-GAAP measures reveals significant improvements in Adjusted Net Income and Adjusted EBITDA - The company presents non-GAAP measures like Adjusted Net Income and Adjusted EBITDA to provide useful additional information to investors by excluding non-recurring items[7][8] Adjusted Net Income (Loss) Reconciliation - Q2 (in thousands) | Metric | Q2 FY2024 | Q2 FY2023 | | :--- | :--- | :--- | | Reported GAAP net loss | $(3,061) | $(11,320) | | Discontinued operations loss | $2,198 | $8,428 | | Other Adjustments | $1,065 | $1,915 | | Adjusted net income (loss) | $202 | $(977) | Adjusted EBITDA Reconciliation - Q2 (in thousands) | Metric | Q2 FY2024 | Q2 FY2023 | | :--- | :--- | :--- | | GAAP net loss | $(3,061) | $(11,320) | | Plus: Depreciation & Amortization | $267 | $262 | | Plus (minus): Interest income, net | $(893) | $(63) | | EBITDA | $(3,687) | $(11,121) | | Other Adjustments | $2,570 | $8,871 | | Adjusted EBITDA | $(1,117) | $(2,250) | Company Overview and Forward-Looking Statements The company operates as a pioneer in molecular diagnostics and cautions investors about forward-looking statements - Enzo Biochem provides a wide range of high-quality products crucial for research and drug development in areas like cell biology and genomics[5] - The report contains forward-looking statements, and investors are warned that actual results could differ materially due to various factors[6]