Enzo Biochem announces record fiscal 1996 revenue.FARMINGDALE, N.Y.--(BUSINESS WIRE)--Oct. 30, 1996-- Write-off Write-Off A reduction in the value of an asset or earnings by the amount of an expense or loss. Companies are able to write off certain expenses that are required to run the business, or have been incurred in the operation of the business and detract from retained revenues. and reserve result in loss for fourth quarter and year $6 Million Positive Cash Flow in 1996 Long-Term Debt Long-Term Debt Loans and financial obligations lasting over one year. Notes: For example debts obligations such as bonds and notes which have maturities greater than one year would be considered long-term debt. Eliminated Enzo Biochem, Inc. (ASE (Adaptive Server Enterprise) A relational DBMS from Sybase that runs on Windows NT/2000, Linux and a variety of Unix platforms. ASE is a comprehensive and robust data management product with a long history dating back to the late 1980s. :ENZ) today issued its results for the fourth quarter and fiscal year ended July 31, 1996. Fourth quarter revenues increased to $9.4 million from $8.4 million in fiscal 1996, an 11% gain, while revenues for the full year reached $34.5 million, up 9% over the previous year's total of $31.7 million. The revenue gain was led by a 36% growth in the sales of products to the medical research market. Earnings results were affected by two actions: a $7.6 million write-off related to real estate and establishment of a $3.5 million reserve, which takes account of recent reductions in Medicare reimbursement Reimbursement Payment made to someone for out-of-pocket expenses has incurred. payments to the clinical laboratory industry. As a result, Enzo experienced net losses of $9.6 million, or $0.43 per share, in the fourth quarter and $7.7 million, or $0.34 per share, for the full year. In fiscal 1995, reflecting a real estate write-off of $11.4 million, the fourth quarter loss amounted to $13.9 million, or $0.60 per share. Net income for the full year in fiscal 1995 amounted to $5.6 million, or $0.24 per share, also taking into account a litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. settlement of $21.3 million. Enzo noted several strong trends that marked the past year. The company was profitable on an operational level without giving effect to the write-off and charge. Cash increased to $6.7 million, despite higher research and development outlays Outlays Payments on obligations in the form of cash, checks, the issuance of bonds or notes, or the maturing of interest coupons. . Working capital at year end was $29.4 million, a 20% increase over 1995 fiscal year end, and long-term debt has effectively been eliminated. Cash and cash equivalents increased 61% over fiscal 1995. The company said that the real estate write-off and increase in reserves incurred this past year were positive steps intended to preserve the many opportunities the company believes it will have to increase shareholder value in the future, given the ongoing success and potential of its operating units operating unit A type of operating company that engages in transactions with outsiders and that is owned by another business. For example, in 1995 the stockholders of Capital Cities/ABC approved a $19 billion merger with the Walt Disney Company, whereupon and its research programs. The real estate non-cash charge Non-Cash Charge A charge off, made by a company against earnings, that does not require an initial outlay of cash. Notes: Non-cash charges are typically against the depreciation, amortization, and depletion accounts on a company's balance sheet. enables Enzo to realize $23 million in tax loss carry forwards, which will be available to benefit any future income and favorably fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. impact cash flow. By eliminating a long-term lease obligation, Enzo will no longer incur To become subject to and liable for; to have liabilities imposed by act or operation of law. Expenses are incurred, for example, when the legal obligation to pay them arises. An individual incurs a liability when a money judgment is rendered against him or her by a court. any operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. associated with the property. The establishment of the reserve is a conservative accounting measure that is expected to more effectively measure reimbursement changes anticipated in the Medicare program and to ensure that the clinical laboratory retains its integrity as a free standing business. "The year end charges are part of a deliberate strategy to maximize our long-term prospects and to maintain the highest degree of flexibility as we enter a very important stage in our Company's development," said Elazar Rabbani, Ph.D., president and chief executive officer of Enzo. "They will have a very positive effect on our balance sheet going forward and occur at a time when our fundamental financial health and operating performance are both very strong. We believe these actions will also be beneficial in light of the many opportunities Enzo believes it will have to increase shareholder value." Enzo Biochem is engaged in the research, development and manufacture of innovative health care products based on molecular biology molecular biology, scientific study of the molecular basis of life processes, including cellular respiration, excretion, and reproduction. The term molecular biology was coined in 1938 by Warren Weaver, then director of the natural sciences program at the Rockefeller and genetic engineering techniques, and in providing diagnostic services diagnostic services, n.pl the imaging and laboratory capabilities available for determining the cause of an illness. to the medical community. -0-
ENZO BIOCHEM, INC.
SELECTED CONSOLIDATED STATEMENT OF OPERATIONS
Fiscal Year Ended Three Months Ended
July 31, July 31,
1996 1995 1996 1995
(unaudited)
(in thousands, except per share data)
Operating revenues $34,490 $31,700 $9,373 $8,414
Operating income
(loss) before
provision for
income taxes 105(a) (711)(c) (2,660)(a) (2,276)(c)
Current (provision)
benefit for
taxes on income (199) (1,131)(e) 666 (1,086)
Net income (loss) ($7,707)(b) $5,618(f,g) ($9,607)(b) ($13,903)(f)
Net income (loss)
per share ($0.34) $0.24 ($0.43) ($0.60)
Weighted average
common shares 22,593 23,075 22,593 23,075
(a) Includes reserve of $3,500,000 for Medicare receivables.
(b) Includes write-down of real estate of $7,613,000.
(c) Includes legal fees of $2,796,000.
(e) Does not include tax provision of $3,000,000 on litigation settlement
(f) Includes write-down of real estate of $11,400,000.
(g) Includes litigation settlement of $18,859,700, net of legal fees
and tax effect of $3,000,000.
SELECTED BALANCE SHEET DATA
July 31,
1996 1995
Cash and cash equivalents $17,793,000 $11,068,000
Working capital 29,451,000 24,449,000
Long-term debt 114,000 4,698,000
CONTACT: Enzo Biochem Inc., New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of Barry Weiner, 212/583-0100 or Anreder and Company, New York Steve Anreder, 212/421-4020 |
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