NEW YORK -- May 20, 1996 -- Autotote Corp.
(AMEX:TTE) today announced financial results for its second fiscal
quarter and six months ended April 30, 1996.
In the second quarter, revenues increased 23.2 percent, from
$37.1 million in 1995 to $45.7 million in 1996.
EBITDA (earnings before interest, taxes, depreciation and
amortization) increased 52.4 percent, from $5.1 million in 1995 to
$7.7 million in 1996.
Despite a 9 percent increase in depreciation and amortization,
to $9.6 million, the operating loss for the quarter declined to $1.9
million from $3.7 million in the year-earlier period. The net loss
fell to $5.9 million, or 19 cents per share on 31.5 million shares
outstanding, from a loss of $9.0 million, or 31 cents per share on
28.9 million shares outstanding, in the year-earlier period.
Revenues for the six months ended April 30, 1996 increased 30.5
percent, from $68.2 million in 1995 to $89.0 million in 1996.
EBITDA (earnings before interest, taxes, depreciation and
amortization) increased 49.4 percent from $10.2 million in 1995 to
$15.3 million in 1996. The operating loss for the six months was
$3.7 million compared to $6.3 million in the year-earlier period.
The net loss was $19.7 million, or 63 cents per share on 31.1
million shares outstanding, compared to a loss of $14.9 million, or
52 cents per share on 28.9 million shares outstanding, in the year-
earlier period.
A. Lorne Weil, chairman and chief executive officer, said, "The
positive trends we identified in the preceding three quarters
continued in the second quarter of this fiscal year. EBITDA and
consolidated revenues were once again up sharply over year-earlier
levels and EBITDA as a percentage of sales increased to 16.8 percent
from 13.6 percent in the year-earlier period. Finally, total
selling, general and administrative expenses, including R&D, fell
both as an absolute number and as a percentage of sales in the
second quarter, to $8.4 million and 18.3 percent, respectively.
"We also made important progress in operations during the second
quarter and first half," he added. "Our strategic objective of
extending the contractual relationship with key customers continued
successfully, most notably with the decision by the Ontario Jockey
Club to sign a new multi-year contract for its track and OTB
network, one of the largest in North America, a full two years
before the original contract expired. New contracts announced
during the second quarter included the Israeli lottery and four pari-
mutuel contracts in the U.S. Our Tele Control lottery unit
continued to deliver equipment on schedule to key German state
lotteries, and our Connecticut OTB unit also had a strong quarter,
thanks in part to the Sports Haven entertainment and simulcasting
facility, which opened a year ago."
Weil added, "Going forward, Autotote is well positioned for
growth as the pari-mutuel industry continues to increase its off-
track sources of revenues. As the premier supplier of wagering
systems networks in North America, we are benefitting from that
trend and the global interest in racing as a key gaming product."
Thomas C. DeFazio, president and chief operating officer, said,
"The impact of the restructuring that we began in the third quarter
of fiscal 1995 continues to be felt. We have implemented steps
across the company to lower costs while continuing to improve
customer service and quality assurance."
AUTOTOTE CORPORATION AND SUBSIDIARIES
Consolidated Statements of Operations
(Unaudited)
(In Thousands, Except Per Share Amounts)
Three Months Ended
April 30, April 30,
1996 1995
------- --------
Operating Revenues:
Wagering systems $ 35,406 $ 32,423
Wagering equipment and
other sales 10,335 4,709
-------- --------
45,741 37,132
Operating expenses (exclusive
of depreciation and
amortization):
Wagering systems 22,224 19,224
Wagering equipment and
other sales 7,442 2,948
--------- ----------
29,666 22,172
Total gross profit 16,075 14,960
Selling, general and
administrative expenses 8,378 9,909
Depreciation and amortization 9,558 8,781
Operating loss (1,861) (3,730)
Other deductions (income):
Interest expense 3,670 4,308
Litigation settlement -- --
Other deductions (income) (149) 253
-------- ----------
3,521 4,561
Loss before income tax expense (5,382) (8,291)
Income tax expense 512 667
Net loss $ (5,894) $ (8,958)
Net loss per common share $ (0.19) $ (0.31)
Weighted average number
of common shares outstanding
(000) 31,456 28,913
AUTOTOTE CORPORATION AND SUBSIDIARIES
Consolidated Statements of Operations
(Unaudited)
(In Thousands, Except Per Share Amounts)
Six Months Ended
April 30, April 30,
1996 1995
------- -------- Operating
Revenues:
Wagering systems $ 64,974 $ 61,399
Wagering equipment and
other sales 24,073 6,850
-------- --------
89,047 68,249
Operating expenses (exclusive
of depreciation and
amortization):
Wagering systems 41,071 35,971
Wagering equipment and
other sales 16,140 4,444
--------- ----------
57,211 40,415
Total gross profit 31,836 27,834
Selling, general and
administrative expenses 16,548 17,604 Depreciation
and amortization 18,994 16,498
Operating loss (3,706) (6,268)
Other deductions (income):
Interest expense 7,332 7,157
Litigation settlement 6,800 --
Other deductions (income) 143 145
-------- ----------
14,275 7,302
Loss before income tax
expense (17,981) (13,570)
Income tax expense 1,714 1,319 Net loss
$ (19,695) $ (14,889)
Net loss per common share $ (0.63) $ (0.52)
Weighted average number
of common shares outstanding
(000) 31,139 28,862
CONTACT: Gregory W. Miller
The Miller Company
Tel: 914-834-1868
Fax: 914-834-6782
E-mail:millerco1@aol.com
PISCATAWAY, N.J. -- May 20, 1996 -- Enzon, Inc.
(NASDAQ\NMS:ENZN) announced today a net loss of $1,994,000 or $0.08
per share for the three months ended March 31, 1996 compared to a
net loss of $664,000 or $0.03 per share for the comparable quarter
in 1995.
The increase in the net loss was primarily due to a 43% decrease
in revenues, related to a reduction in sales of clinical trial
material and decreased contract revenue.
For the nine months ended March 31, 1996, the Company reported a
net loss of $4,191,000 or $0.16 per share compared to a net loss of
$5,799,000 or $0.24 per share for the same period last year. The
decrease in the loss for the nine months was due to the one-time
reversal to other income of the Sanofi advance during the previous
quarter, as well as a reduction in total ongoing expenses of 10%,
with the largest reduction occurring in the area of Selling, General
and Administrative expenses.
Total revenues, which include sales, royalties and contract
revenues for the quarter ended March 31, 1996 decreased by 43% to
$2,735,000 as compared to $4,814,000 reported last year. Sales for
the quarter decreased by 30% due to a reduction in clinical supply
shipments of PEG-INTRON A. During June 1995, the Company amended
its agreement with Schering Corporation and agreed to transfer know-
how and manufacturing rights for PEG-INTRON A to Schering.
Contract revenues for the quarter ended March 31, 1996 also
decreased by $896,000, principally as a result of a licensing
payment recorded during the previous year under the Company's
exclusive marketing rights license agreement with Rhone-Poulenc
Rorer Pharmaceuticals, Inc. for ONCASPAR. A comparable payment was
not recorded in the current quarter.
Research and Development expenses for the quarter ended March
31, 1996 increased by $372,000 or 18% to $2,470,000 as compared to
$2,097,000 for the quarter ended March 31, 1995. The increase was
primarily due to an increase in facility costs, which was the result
of a one-time rent credit received in the prior year. Research and
Development efforts continue to be focused on the Company's lead
product candidate, PEG Hemoglobin, which is being developed as an
enhancement to radiation treatment for patients diagnosed with
cancerous hypoxic tumors.
The Company completed its Phase Ia clinical trial in healthy
volunteers at the end of 1995, and received approval from the FDA to
enter a multi-dose trial in cancer patients. Enrollment of patients
for this trial has been unexpectedly slow, and as a result, the
Company has just opened a second site and plans to add additional
sites. The clinical supplies for the trial have been delivered to
the open sites. To expedite completion of this trial, a clinical
research organization will be utilized to accelerate patient
recruitment, monitor the study, and compile results.
Selling, General and Administrative expenses for the quarter
ended March 31, 1996 remained relatively flat at $1,536,000 compared
to $1,537,000 for the quarter ended March 31, 1995.
The Company had cash on hand as of March 31, 1996 of $12,761,000
as compared to $4,725,000 in the prior year. The Company believes
its current cash levels are sufficient to meet anticipated cash
requirements, based on current spending levels, for approximately
two years. The previous statement is forward-looking in nature.
Actual results could differ materially based on various factors,
including, but not limited to, the Company's ability to maintain
current sales levels of its products and current levels of expenses,
or the occurrence of any of a number of unforeseeable contingencies
beyond the Company's control.
"The recent appointment of Randy H. Thurman to the position of
non-executive chairman of the board has significantly strengthened
our management team," said Peter G. Tombros, president and chief
executive officer. "This combined with our recent private
placements further enhances our ability to secure a favorable
partnership for our PEG Hemoglobin product, as well as expand the
Company's strategic alliances."
Enzon is a biopharmaceutical company developing advanced
therapeutics for life-threatening diseases through the application
of its proprietary technologies. The Company's research and product
development activities focus on blood substitutes, genetic diseases
and cancer therapy. The Company also pursues commercialization of
its technologies through strategic alliances, including arrangements
with Rhone-Poulenc Rorer Pharmaceuticals Inc., Schering Corporation,
Eli Lilly, Bristol-Myers Squibb, Inc. and Baxter Health Care.
Enzon is headquartered in Piscataway, NJ.
ENZON, INC. AND SUBSIDIARIES
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
Three Months Ended March 31, 1996 and 1995
(unaudited)
Three Months Ended
March 31, 1996 March 31,1995
__________________ __________________
Revenues
Sales $ 2,729,647 $ 3,912,273
Contract revenue 5,710 902,005
___________ ___________
Total revenues 2,735,357 4,814,278
___________ ___________
Costs and expenses
Cost of sales 903,985 824,936
Research and development
expenses 2,469,605 2,097,350
Selling, general and
administrative expenses 1,536,058 1,537,041
Restructuring expense - 1,192,971
__________ ___________
Total costs and expenses 4,909,648 5,652,298
__________ ___________
Operating loss (2,174,291) (838,020)
Other income (expense)
Interest and dividend income 116,259 78,069
Interest expense (1,801) (205)
Other 65,369 96,129
__________ ____________
179,827 173,993
__________ ____________
Net loss ($1,994,464) ($664,027)
__________ ____________
Net loss per
common share ($0.08) ($0.03)
__________ ____________
Weighted average number
of common shares
outstanding
during the period 26,929,341 25,381,385
ENZON, INC. AND SUBSIDIARIES
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
Nine Months Ended March 31, 1996 and 1995
(unaudited)
Nine Months Ended
March 31, 1996 March 31, 1995
__________________ __________________
Revenues
Sales $ 8,080,671 $ 8,071,597
Contract revenue 910,446 2,802,005
___________ ___________
Total revenues 8,991,117 10,873,602
___________ ___________
Costs and expenses
Cost of sales 3,092,562 2,212,162
Research and development
expenses 7,551,075 8,855,700
Selling, general and
administrative expenses 4,212,378 5,356,758
Restructuring expense - 1,192,971
__________ ___________
Total costs and expenses 14,856,015 17,617,591
__________ ___________
Operating loss (5,864,898) (6,743,989)
Other income (expense)
Interest and dividend income 300,338 166,814
Interest expense (12,753) (3,793)
Other 1,386,691 781,713
__________ ____________
1,674,276 944,734
__________ ____________
Net loss ($4,190,622) ($5,799,255)
__________ ____________
Net loss per
common share ($0.16) ($0.24)
__________ ____________
Weighted average number
of common shares
outstanding
during the period 26,529,030 25,083,135