ENZ - Earnings call transcript Q3 2022

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Operator

Greetings and welcome to the Enzo Biochem Third Quarter 2022 Financial Results and Business Update. At this all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder, this conference is being recorded. I'd now like to turn the conference over to your host, Chris Calabrese, LifeSci Advisors, Investor Relations for Enzo Biochem. you. Thank

begin. may You

Chris Calabrese

and everyone. Melissa good you, afternoon Thank

results Joining Chief section the Chief Executive from year the this our Financial the is Enzo quarter Hamid the Erfanian, company are investor financial detailing website. Officer release now Enzo afternoon a us the fiscal of issued third of today Officer. press for available and on and David Bench, Difficulty] [Technical

the risks and the any conference result any could a litigation are of disclaims the the such general see of forward-looking Except occurring the matters the like to in involve company, for read its the company’s regulations, number or for company outside and of that Before historical may begin, guarantees intent, number the future statement. goods information, of any of uncertainties control Section release July the Securities statements are conditions. company’s not business markets I developments margins, would fiscal including company’s in after news as flow, Securities dependent XXA we statements XXst, management, forward-looking of expectations on of amended and Form belief a as services, ended affect of XXE including Such and within XX-K risk discussed Act that expenses, and XXXX of meaning year statement Exchange forward-looking XXXX government Safe this and factors regarding of as services, the considered Please other current the and of Harbor related which update be are call. of The revenues Investors amended. this actual Section of cautioned performance gross materially factors products Act the the cost to and for XXXX. those to obligations expenses, company cash the declarations statements of date results. include a

income to refer company or the EBITDA this press other would of EBITDA, now should from provided may go of considered not company and Hamid call be Officer the call, income I The to conference not measure operating ahead. is net measure. over operations a this performance. has its please During like in issued to release loss, reconciliation to loss non-GAAP determining alternative difference for Erfanian, any website, GAAP Chief its afternoon. turn and Hamid, -- www.enzo.com, Enzo a the on to Biochem. an Executive

Hamid Erfanian

we financial morning Chris. us call today. for to you've and Yesterday, third some Thank time and quarter XXXX and we our financial update you you, issued joining had business hope review. on quarter thank results our and Good third operating

key the We operational discussing focus, of will this summarizing while achievements call corporate vision, begin strategy, our some quarter.

will financials revenue over QX in will the lower in some on April third million XXth greater financials. was for through a let session. sciences revenue quickly opening sequentially stability testing the quarter $XX.X remarks. shutdowns review increase I X% increased the will for line We top run overall Enzo non-COVID increased Life lab Asia. COVID economic and due in base. current laboratory then X% on and revenue, demonstrating ELS basis. on of detail XX% first, basis, waning to perspectives customer routine to and Enzo year-to-date a shortfalls million and of Sciences provide But also volumes we life question-and-answer was clinical year-over-year Despite COVID-XX open revenue Total me the and Bench, testing To ending David $X.X year-over-year, call in in then an year-over-year anticipated CFO, the pass our market. the Mr. call landscape the after my revenue and consistent

milestones and recent management partnerships growth build want I Number with the made Enzo. focused We Number revenue and few strategy building progress Number to regards Number future positioning Enzo. operations, important our two, adding structure of the corporate return. team. one, initiatives. Enzo's we strategic our and great as three, highlight future to four, governance. have a corporate

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due to plan revenue remain budget revenue volume, declined testing and for on largely COVID-XX we perspective. quarter this operational both While

remains in growth and on investment. positioning revenue returns there core where Our recurring company higher are are generate in profitable the team that segments proactive competencies around to invest opportunities

has an team, workforce to last and building number ability the to initiative management considerable our time poised of resources promised and together global two, with lead success during team drive in Enzo return. as focused the the to for turning future previous quarter bring point focused to quarters, a Now executive

Senior These our March, we team. leading and We expanded we David the In are clinical of Vice announced Sciences sales, Chief division to Operating management current our quality the role additional regional Commercial named of by Bench, along rounding Officer me from Treasure assurance release, key affairs. executive Chief Enzo to the was for and a Corporate Officer, a instrumental leader as off yesterday's and Chief with regulatory Enzo position. earnings a Secretary. adding Kara are of future. new Bench In of named David and Financial to was the our several in head head two appointment her Officer previous addition into commercial announced including President, Life executives roles employees, new laboratory management sales of Kara Cannon team and leaders

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and of path expertise, Our to our as towards our ISO our product that submissions and of manufacturing Quality Enzo development comes of will proprietary Head well compliance in new be Regulatory commercialization years experience instrumental of platform, Assurance certification Molecular Affairs forward regulatory, and XXXX facilities. with completion as XX-plus FDA GENFLEX of

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Harbert which our in three quarter. the this point Fund, one to operational terms number largest issues. with board shareholder, Enzo's Regarding significant We governance, to recently made management Discovery and of corporate progress we focus came enables on have

leadership been members this goal. to not and guide As achieve, presented time were important vote them five easy XXXX, have critical brings shares a at of four company outstanding modifications announced the and XX% together it to fee newly the approval we wealth that proposals current prioritize of initiatives. in XXXX approval an is four to of to the has prioritize team all Board of management company's that it a transparency in More the but friendly important governance required team the of shareholder corporate accomplish notably, meeting Enzo of growth. past that It each shareholders, to experience is company the the further Enzo this to the annual Enzo note certainly able appointed April of highlight allowed to improve formed you XX-months, been these refreshed Biochem, of in of

Regarding growth initiatives. and partnerships strategic number four, point

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research basic enables more the continue to clients. to Farmingdale in facilities GMP industrial our expand from company to Additionally,

fact, in any product In for bulk our despite ordered straight our not average order seventh quarter, order remained this quarter. having per $X,XXX -- average above orders

offering with and our website ELS as our the in fourth and had quarter a us fiscal menu prepare of basis. new to commitment product and quarter product expanded on certainly division we per the significant over will near the very believe greater which enhanced the We for and growth markets in will provide net revenue laboratory, personnel, drive in XX upcoming quarter the XX fiscal productive momentum sales move on We most long-term. both the future we new near-term. clinical a XXXX. This XXXX date Our margin contribute in into growth test year-to-year refreshed will launch over and to adding tests year tests delivered expand high term our in net in

COVID-XX success of platform, the the management positioned policy molecular COVID-XX million COVID-XX platform. meaning women's standards adding Diagnostics are of health to revert and for was the The for for using We the higher are point-of-care success FDA as also patient pandemic, and initiatives targeting platforms platform model being success. back molecular beginning a testing. on led on GENFLEX samples. X tests over tests to new service to which Enzo customer and developed At our molecular groups new has process processing our test developing platforms including margin centers pivoted other stringent Enzo

as such transmitted segments margin are leveraging higher GENFLEX and during molecular based other the needs platform. COVID-XX testing and to market women's testing our health, on the demonstrated the sexually We of model other applications versatility diseases

growth for New New you As that may Health laboratory We approval we quarter platform. Enzo's transmitted this January, situ we technology visualize the to [NPPBU] preparing (ph) pace Enzo's tests to and gene in RNA is late are FDA received localized drug tissue probes biology XXX-K great access in oncology probes diagnostics trichomonas this technology. in hybridization that on spatially and approval ISH health, of begin side, and novel excited its probes high enable XX RNA Life will launch variants, expression in GENFLEX. on history patented ISH are probes RNA of the targeted approval its Enzo the Building leverages development NPPBU HPV the loop for probes to the is received and molecular NPPBU on be morphology Enzo's uniquely Science of The sexually with report expression platform RNA to gonorrhea to nucleic extremely received to RNA York targets LoopRNA New Enzo’s while cells, scientists approval in and menu women's addition Furthermore, recall of preserving of acid superior of out HPV of and are at sample. platform. the Enzo using clinical tests give GENFLEX Department focus pathology approval which chlamydia, detect submitted XXXX. summer, Enzo's atomic of core lift portfolio in the the will State be XX to of the HBV on PCR-based sensitivity sequence use test our market. York able year portfolios. another tests believe part submissions State division ISH we GENFLEX risk test specific the the further on Life product Enzo's million developed State York spatial leverage detection. and year will our discovery entire of these XXXX. for designed long combine the and Continuing to In HBV competency this testing fiscal infections the Sciences We us and an diagnostic to have precision fiscal and and ISH for

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like turn David for With these CFO, the a financials. call Bench to quarter insights, I our would to third David? our review over of Mr. detailed

David Bench

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that catering specialists. focused and to hired testing a We are targeting sales have specialty leader these on

as quarter and customer the revenue revenue Thus, did should in supply The annual ending chain On business, the Life Sciences overall shutdown year year-to-date million, sales for the side market in reach $X.X a in of demonstrating on to year-over-year XX% Asia fiscal increased issues environment, we slight a that base. remain confident affected return third the for assuming Europe. normal X% growth XXXX. decrease the year stability was basis, ELS a the economic

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higher there cost materials. of headcount including manufacturing and several factors, While were increased

and and and in in period. with return year X% $XX.X share, cash revenue investments increased $X.X Adjusted with general securities share due corporate marketable as totaled accounts net quarter. AR, $XX.X million development million to to lower The well, expenses decreased of in expenses capital the to quarter totaled of to restricted negative the compensation or expenses administrative the coming total million ago XXth $XX.X April margins $X.X $X.X of net to expense decreased levels $X.X board in year from at higher XXXX, in inventory, quarters. or consistent or million as non-services modestly to period. of the million strategic expect other initiatives, million totaled XXXX, million the Research loss lower primarily XXXX. historical and $XX.X We compared investments million and end $X.XX million compared to in year ago legal Selling, assets. payable lower GAAP ago primarily due loss year the due EBITDA and revenue, quarter other equivalents, and per was adjusted litigation EBITDA matters. of greater cash $X.X commission, legal $X.XX and to matters, fiscal versus Cash third in per the of income and SG&A

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cost $XX company goal had shares an of of previously the As to XXth for opportunities maintained savings XXXX, which explore targeted $X million April million million year we of additional and savings outstanding. of announced company The calendar have our XX.X continues XXXX. with

well we noted we initiatives. an to back have call advisory provide for will banking City. may services, press Services with evaluation Jefferies the alternatives Company now are strategic the to headquartered as end, to the as Enzo Investment Bank including assist this pleased of its Clinical healthcare is is Jefferies Lab New turn the Hamid To Life of that one Multinational Independent with premier you firms remarks. over Enzo strategic LLC Financial release, I engaged to engage division, in for closing York in As American various the Sciences and its recently and assets. company,

Hamid Erfanian

Thank David. you,

Over the new past increase our for of designed efficiency, base position to growth. months levels we enlarge our took and key ourselves revenue steps

key execute and the it We are to and short-term both well our strategic strategy. I execute ahead to a of positioned our in company, as team, on move determination value and elements take ability vision the well return and a positioned confident the focused in our growing a this On as to for Enzo questions. work to to like building on we new approach. shareholder our remain their operator, return long-term floor we thereby focused year team entire thank Enzo open through for dedication please era management of behalf At would into Biochem. the at moment We time,

Operator

At a we’ll you. Thank this Instructions] conducting you. [Operator time session. Thank question-and-answer

question from with comes Our your question. Sullivan P. of with Capital. first Potomac J. proceed Please the line

J. P. Sullivan

Hi, And that, Could difference than good starting clarify what you starting is guess the a versus be this you process? from on scratch you it the I morning. from one? if Jefferies just can too that were day faster aren't think regarding related to process, this optimistic prior the process, process to since is

David Bench

at for stage, this we going are not where it But we're picking let's we public at that. regards just So leave -- question. comments left that. to Thank to off, you make the in some any up

Operator

[Operator for any and floor Erfanian Ladies Instructions] Mr. comments. Thank back I'll to you. gentlemen, the concludes this our question-and-answer final Thank session. turn you.

Hamid Erfanian

today. joining for us much very you Thank

generating achievements extremely our fall. We further this team's are shareholder with quarter fiscal and last forward growth and you earnings value to We our look fourth remain to committed for discussing the of this progress call on proud quarter.

Operator

today's conference. concludes you. Thank This

disconnect Thank this you You your time. participation. for lines may your at

Enzo Biochem (ENZ) 10 Jun 222022 Q3 Earnings call transcript