Enzon Reports Fourth Quarter and Full Year 2012 Results
Summary of Financial Results
Royalty Revenue
Revenues received from the Company's royalty products for the three months ended
Research and Development
The Company's pipeline research and development expenses were
General and Administrative
General and administrative expenses decreased to
Taxes
Income tax benefit in 2012 was primarily comprised of a state income tax benefit of
Cash and Investments
Cash, cash equivalents and marketable securities totaled
About Enzon
In
Further information about Enzon and this press release can be found on the Company's website at www.enzon.com.
Forward-Looking Statements
This press release contains, or may contain, forward-looking statements within the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. All statements contained in this press release, other than statements that are purely historical, are forward-looking statements, which can be identified by the use of forward-looking terminology such as the words "believes," "expects," "may," "will," "should," "potential," "anticipates," "plans," or "intends" and similar expressions, including statements regarding the effect of the OMONTYS recall on Enzon's future royalty revenues and statements regarding Enzon's sale review process.
Such forward-looking statements are based upon management's present expectations, objectives, anticipation, plans, hopes, beliefs, intentions or strategies regarding the future and are subject to known and unknown risks and uncertainties that could cause actual results, events or developments to be materially different from those indicated in such forward-looking statements. Such risks and uncertainties include, but are not limited to, risks relating to the OMONTYS recall and other factors affecting the commercial potential of OMONTYS, uncertainty regarding the timetable for the sale review process, the risk that the sale review process will not lead to any transaction, the risk that any transaction that is consummated would neither deliver anticipated benefits nor enhance stockholder value, the risk that the sale review process will disrupt Enzon's management from its day-to-day
responsibilities, the expectation that Enzon will incur significant costs, expenses and fees in connection the sale review process or any transaction that might result from the sale review process, the risk that the sale review process may result in Enzon's inability to retain key employees or business partners, the risk that the market price of Enzon's common stock may significantly fluctuate in response to developments in the sale review process or market speculation regarding such developments, and other risks and uncertainties that are contained in Enzon's filings with the
Enzon Pharmaceuticals, Inc. and Subsidiaries
Consolidated Statements of Comprehensive Loss
(Unaudited; In thousands, except per share amounts)
Three months ended Year ended
December 31, December 31,
-------------------- --------------------
2012 2011 2012 2011
--------- --------- --------- ---------
Revenues:
Royalties $ 10,493 $ 9,782 $ 41,504 $ 40,923
Sale of in-process research
and development - - - 5,000
Contract research and
development (10) 52 126 1,431
Miscellaneous revenue 164 177 970 718
--------- --------- --------- ---------
Total Revenues 10,647 10,011 42,600 48,072
Operating Expenses:
Research and development -
pipeline 4,350 9,135 20,892 40,180
Research and development -
specialty and contracted
services (10) 48 113 926
General and administrative 3,234 3,466 14,475 17,281
General and administrative -
contracted services - 1 - 115
Impairment of property and
equipment 11,263 - 11,263 -
Restructuring charges 43 1,376 (177) 6,025
--------- --------- --------- ---------
Total Operating Expenses 18,880 14,026 46,566 64,527
--------- --------- --------- ---------
Operating loss (8,232) (4,015) (3,966) (16,455)
Other Income (Expense)
Investment income, net 191 484 2,578 1,735
Interest expense (1,275) (1,490) (5,330) (5,929)
Other, net (10) - (200) 91
--------- --------- --------- ---------
Total Other Expense (1,094) (1,006) (2,952) (4,103)
--------- --------- --------- ---------
(Loss) from continuing
operations before taxes (9,326) (5,021) (6,918) (20,558)
Income tax (benefit) expense (4,168) - (4,135) 205
--------- --------- --------- ---------
(Loss) from continuing
operations (5,158) (5,021) (2,783) (20,763)
--------- --------- --------- ---------
Net loss $ (5,158) $ (5,021) $ (2,783) $ (20,763)
========= ========= ========= =========
(Loss) per common share -
continuing operations
Basic $ (0.11) $ (0.10) $ (0.06) $ (0.40)
========= ========= ========= =========
Diluted $ (0.11) $ (0.10) $ (0.06) $ (0.40)
========= ========= ========= =========
(Loss) per common share - net
(loss)
Basic $ (0.11) $ (0.10) $ (0.06) $ (0.40)
========= ========= ========= =========
Diluted $ (0.11) $ (0.10) $ (0.06) $ (0.40)
========= ========= ========= =========
Weighted-average shares
outstanding - basic 44,116 48,289 46,735 51,910
========= ========= ========= =========
Weighted-average shares
outstanding - diluted 44,116 48,289 46,735 51,910
========= ========= ========= =========
Special cash dividend paid per
common share $ 2.00 - $ 2.00 -
========= ========= ========= =========
Other Comprehensive Income
(Loss):
Available-for-sale marketable
securities:
Unrealized holding gains
(losses) arising during
period (33) (70) 1,037 (671)
Reclass. adj. (gains) losses
incl. in net income (loss) 3 (21) (957) (240)
--------- --------- --------- ---------
Total Other Comprehensive
Income (Loss) $ (30) $ (91) $ 80 $ (911)
--------- --------- --------- ---------
Comprehensive Income
(Loss) $ (5,188) $ (5,112) $ (2,703) $ (21,674)
========= ========= ========= =========
Enzon Pharmaceuticals, Inc. and Subsidiaries
Consolidated Balance Sheets
(Unaudited; In thousands, except share and per share amounts)
December 31, December 31,
2012 2011
------------- -------------
Assets
Current assets:
Cash and cash equivalents $ 77,348 $ 104,324
Marketable securities 119,391 58,188
Other current assets 1,904 2,749
------------- -------------
Total current assets 198,643 165,261
Property and equipment, net 1,138 16,802
Marketable securities - 160,779
Other assets - 367
------------- -------------
Total Assets $ 199,781 $ 343,209
============= =============
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable $ 776 $ 1,572
Accrued expenses and other current
liabilities 5,688 13,692
Notes payable 115,849 -
------------- -------------
Total current liabilities 122,313 15,264
Notes payable - 129,499
Other liabilities - 1,265
------------- -------------
Total Liabilities $ 122,313 $ 146,028
Stockholders' Equity:
Preferred stock - $0.01 par value,
authorized 3,000,000 shares; no shares
issued and outstanding at December 31, 2012
and December 31, 2011 $ - $ -
Common stock - $0.01 par value, authorized
170,000,000 shares; issued and outstanding
43,674,170 shares at December 31, 2012 and
48,292,702 at December 31, 2011 437 483
Additional paid-in capital 224,796 341,760
Accumulated other comprehensive income 83 3
Accumulated deficit (147,848) (145,065)
------------- -------------
Total Stockholders' Equity $ 77,468 $ 197,181
------------- -------------
Total Liabilities and Stockholders'
Equity $ 199,781 $ 343,209
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Investor Contact:Andrea Rabney Argot Partners 212.600.1902 Email Contact Media Contact:David Pitts Argot Partners 212.600.1902 Email Contact
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