Exhibit 99.1
Company Contact: Investor Relations Contacts:
E-Z-EM, Inc. Lippert/Heilshorn & Associates, Inc.
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Tom Johnson x3317 Kim Sutton Golodetz (kgolodetz@lhai.com)
(800) 544-4624 --------------------
www.ezem.com (212) 838-3777
- ------------ Bruce Voss (bvoss@lhai.com)
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(310) 691-7100
www.lhai.com
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FOR IMMEDIATE RELEASE
E-Z-EM REPORTS RECORD SALES FOR FOURTH QUARTER AND FISCAL
YEAR 2004
Conference call to begin at 9:00 a.m. EDT Friday, July 30
LAKE SUCCESS, N.Y. (July 29, 2004) - E-Z-EM, Inc. (Amex: EZM) today announced
financial results for the quarter and 12 months ended May 29, 2004. Highlights
of the fiscal year 2004 fourth quarter include:
o Net sales up 13% to a quarterly record of $41.6 million
o E-Z-EM segment sales up 7% to $27.7 million
o AngioDynamics segment sales up 26% to $14.1 million
o Net earnings up 82% to $4.0 million
o Earnings per diluted share up 76% to $0.37
o Initial public offering of common stock completed by AngioDynamics
subsidiary
Net sales rose 13% to $41.6 million for the quarter ended May 29, 2004, compared
with net sales of $36.9 million for the quarter ended May 31, 2003. E-Z-EM
segment sales were $27.7 million, a gain of 7% over $25.9 million in the prior
fiscal year's fourth quarter, and AngioDynamics segment sales were $14.1
million, up 26% from $11.2 million in the year-ago quarter. The Company's E-Z-EM
segment continued to record strong sales of products for the computed tomography
(CT) market including diagnostic products and CT injectors. Products for the
virtual colonoscopy (VC) market also posted significant sales gains. The
AngioDynamics subsidiary attributed its sales increase to solid market
penetration for its recent product launches and continued growth of its core
products. Net earnings for the fourth quarter of fiscal 2004 rose to $4.0
million, or $0.37 per diluted share, compared with net earnings of $2.2 million,
or $0.21 per diluted share, for the prior-year quarter.
Gross profit increased 16% to $18.9 million, and as a percentage of net sales
improved to 46% from 44% in the year-ago quarter, reflecting improved gross
profit in both business segments. Gross profit in the E-Z-EM segment was up 9%
to $11.4 million, or 41% of sales, and gross profit in the AngioDynamics segment
was up 29% to $7.5 million, or 53% of sales. Operating profit increased 20% to
$3.5 million for the fourth quarter of fiscal 2004, compared with $3.0 million
in the fourth quarter of fiscal 2003. E-Z-EM operating profit was $1.6 million
in the fiscal 2004 fourth quarter, compared with $1.9 million in the prior-year
quarter. This decline resulted from increased operating expenses in this
segment, due in large part to lower compensation costs in the prior-year
quarter, partially offset by increased sales and gross profit. AngioDynamics
operating profit was $1.9 million in the fiscal 2004 fourth quarter, up 83% from
$1.0 million in the prior-year quarter. Other income was $1.5 million for the
current quarter and included gains on sales of securities totaling $1.6 million,
compared with other expense of $0.1 million for the prior-year quarter. The
Company's effective tax rate of 20% resulted from the utilization of previously
unrecorded capital loss carry forwards, which offset capital gains arising from
the aforementioned securities sales.
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"I am delighted to report that both of our operating segments finished fiscal
year 2004 with excellent financial performance," said Anthony A. Lombardo,
E-Z-EM president and chief executive officer. "Our E-Z-EM segment continues to
demonstrate momentum in CT imaging products, with both our Empower family of
injectors and our Smoothie line of CT oral contrasts posting record sales for
the year. In VC, temporary Category III CPT Codes went into effect on July 1,
2004. We are optimistic that the data gathered under the temporary codes will
support permanent Medicare reimbursement of the procedure, and will encourage
third-party payers to cover the procedure as well. We also believe that ongoing
advancements in imaging technology will continue to improve VC accuracy and
further support its adoption as a screening exam for colon cancer. As a company,
we also remained focused on our Continuing Medical Education seminars, with the
goal of ensuring physicians are properly trained in VC.
"The U.S. Army continues its final configuration testing of Reactive Skin
Decontamination Lotion (RSDL). We understand that RSDL remains the product of
choice for personal chemical weapons decontamination, and we hope that RSDL will
become part of the U.S. Military's overall strategy in the future.
"Under our Manufacturing, Streamlining and Restructuring (MSR) program, we have
completed the transfer of the device manufacturing and heat-sealing operations
to a third-party manufacturer, on time and under budget, with minimal net
expense in the fiscal fourth quarter. Savings from this initiative are expected
to approximate $1.9 million annually beginning in fiscal 2005.
"In continuation of our commitment to improving operating efficiencies we
recently announced a second phase to our MSR program, and have begun to move
production of our powder-based barium products to our state-of-the-art
manufacturing facility in Montreal. MSRII will take approximately 12 months to
complete, and we expect will generate pre-tax savings of $2.2 million per year
beginning in fiscal 2006. Charges to earnings will be recognized beginning in
the first quarter of fiscal year 2005, and are estimated on a pre-tax basis to
total $2.8 million for fiscal 2005, which we expect will be offset entirely by
the sale of non-core assets.
"In the final week of the fiscal year, AngioDynamics successfully completed its
initial public offering of common stock, selling 1.95 million shares at $11 per
share, which together with an additional 292,500 shares sold pursuant to the
exercise in June 2004 by the underwriters of their over-allotment option, which
aggregated to approximately 19.6% of AngioDynamics' outstanding shares. In
addition, consistent with our commitment to maximize shareholder value, we
intend to distribute to E-Z-EM shareholders our AngioDynamics holdings in a
tax-free dividend. We expect that these shares will be distributed between the
end of September 2004 and February 5, 2005. We believe that positioning
AngioDynamics as an independent public company will allow it greater access to
capital and flexibility to take advantage of business opportunities that may
arise."
For the 12 months ended May 29, 2004, net sales rose 12% to a record $148.8
million, compared with $133.2 million for the prior fiscal year. Net earnings
for fiscal 2004 were $6.7 million, or $0.63 per diluted share, compared with net
earnings of $2.7 million, or $0.26 per diluted share, for fiscal 2003, an
increase of more than 145%.
Subsequent to the close of fiscal 2004, the Company declared a special, one-time
dividend of $.30 per outstanding share of the Company's common stock. The
dividend was paid on July 1, 2004 to shareholders of record as of June 15, 2004.
-more-
Cash, cash equivalents and short-term marketable securities at May 29, 2004 were
$26.9 million, up from $18.0 million at May 31, 2003. In addition, the Company
recorded a stock subscription receivable in the amount of $19.9 million,
reflecting the proceeds of the initial public offering of its AngioDynamics
subsidiary.
Conference Call
E-Z-EM management will host a conference call to discuss these results on
Friday, July 30, 2004 beginning at 9:00 a.m. Eastern Daylight Time. To
participate in the call, please dial (877) 815-7177 from the U.S., or (706)
679-0753 from outside the U.S. A telephone replay of the call will be accessible
for 48 hours following completion of the call by dialing (800) 642-1687 or (706)
645-9291, and entering reservation number 8953054. In addition, participants may
access the call over the Internet by visiting the Company's Web site at
www.ezem.com. The call will be archived there for a limited period of time.
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About E-Z-EM, Inc.
E-Z-EM is a leading manufacturer of contrast agents for gastrointestinal
radiology. The Company has developed the only CT injector on the market that can
help detect contrast extravasation, the EmpowerCT(R) with patented EDA(TM)
technology; it also offers a complete product set for the virtual colonoscopy
practitioner. This product line consists of virtual colonoscopy hardware,
software, nutritional prep kits and bowel cleaners, tagging agents and a carbon
dioxide colon insufflation system.
AngioDynamics, Inc., a subsidiary of E-Z-EM, Inc., designs, develops,
manufactures and markets innovative medical devices used in minimally invasive,
image guided procedures to treat peripheral vascular disease. It offers a broad
line of therapeutic and diagnostic devices that enable interventional physicians
to treat peripheral vascular disease and other non-coronary diseases.
AngioDynamics' diversified product line includes angiographic catheters,
hemodialysis catheters, endovascular laser venous system products, PTA dilation
catheters, image-guided vascular access products, thrombolytic products, as well
as drainage products.
The statements made in this document contain certain forward-looking statements.
Words such as "expects," "intends," "anticipates," "plans," "believes," "seeks,"
"estimates" or variations of such words and similar expressions, are intended to
identify such forward-looking statements. The forward-looking statements
contained in this release may involve numerous risks and uncertainties, known
and unknown, beyond the Company's control. Such risks and uncertainties include
the ability of the Company to develop its products, future procurement of RSDL
by the U.S. Military, successful completion of the Company's MSR II program, the
occurrence and timing of the proposed distribution of AngioDynamics shares to
E-Z-EM shareholders, future actions by the FDA or other regulatory agencies,
overall economic conditions, general market conditions, foreign currency
exchange rate fluctuations as well as the risk factors listed from time to time
in the SEC filings of E-Z-EM, Inc., including but not limited to its Form 10-Q
for the quarter ended February 28, 2004 as well as its Annual Report on Form
10-K for the year ended May 31, 2003. Consequently, actual future results may
differ materially from the anticipated results expressed in the forward-looking
statements, and investors are cautioned not to place undue reliance on the
forward-looking statements included in this release.
(Tables to follow)
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E-Z-EM, Inc. and Subsidiaries
Consolidated Balance Sheet Highlights
(in thousands)
May 29, May 31,
2004 2003
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(1) (1)
Assets
Current Assets
Cash, Cash Equivalents and Debt and Equity Securities $ 26,947 $ 17,965
Restricted Cash 102 798
Accounts Receivable, Net 24,531 23,393
Inventories 27,445 28,467
Stock Subscription Receivable 19,949
Other Current Assets 7,146 4,703
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Total Current Assets 106,120 75,326
Property, Plant & Equipment - at Cost, Net 22,758 23,457
Other Non-Current Assets 13,658 11,841
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Total Assets $ 142,536 $ 110,624
========= =========
Liabilities and Stockholders' Equity
Current Liabilities $ 17,484 $ 15,203
Minority Interest 6,511
Other Long-Term Liabilities 6,766 6,819
Stockholders' Equity 111,775 88,602
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Total Liabilities and Stockholders' Equity $ 142,536 $ 110,624
========= =========
(1) Information derived from audited financial statements.
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E-Z-EM, Inc. and Subsidiaries
Consolidated Income Statement Highlights
(in thousands, except per share data)
Three Months Ended Year Ended
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May 29, May 31, May 29, May 31,
2004 2003 2004 2003
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(unaudited) (audited)
Net Sales
E-Z-EM $ 27,730 $ 25,901 $ 100,609 $ 95,683
AngioDynamics 14,119 11,235 49,055 38,434
Eliminations (246) (251) (893) (959)
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41,603 36,885 148,771 133,158
Gross Profit (Loss)
E-Z-EM 11,433 10,477 40,057 37,887
AngioDynamics 7,520 5,833 25,801 19,862
Eliminations (7) (19) 47
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18,946 16,291 65,858 57,796
Gross Profit as a Percent of Sales 45.5 44.2 44.3 43.4
Operating Expenses
E-Z-EM 9,796 8,542 (1) 37,958 37,343
AngioDynamics 5,605 4,785 20,679 16,624
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15,401 13,327 58,637 53,967
Operating Profit (Loss)
E-Z-EM 1,637 1,935 (1) 2,099 544
AngioDynamics 1,915 1,048 5,122 3,238
Eliminations (7) (19) 47
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3,545 2,964 7,221 3,829
Other Income (Expense) 1,508 (107) 2,702 409
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Earnings Before Income Taxes and Minority Interest 5,053 2,857 9,923 4,238
Income Tax Provision 1,011 643 3,182 1,497
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Earnings before Minority Interest 4,042 2,214 6,741 2,741
Minority Interest 15 15
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Net Earnings $ 4,027 $ 2,214 $ 6,726 $ 2,741
======== ========= ========= =========
Earnings per Common Share
Basic $ 0.38 $ 0.22 $ 0.65 $ 0.27
Diluted $ 0.37 $ 0.21 $ 0.63 $ 0.26
Weighted Average Common Shares
Basic 10,595 10,100 10,344 10,048
Diluted 10,869 10,428 10,625 10,419
(1) Current year amount includes plant closing and operational restructuring
costs of $1,771,000; prior year amount includes costs associated with the
Company's common stock recapitalization of $709,000.
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