E-Z-EM: Earnings News Release FOR IMMEDIATE RELEASE Contact: Dennis J. Curtin Chief Financial Officer 1-800-544-4624, ext. 320 E-Z-EM, INC., ANNOUNCES THIRD QUARTER FISCAL 1997 RESULTS Westbury, New York; April 15, 1997 E-Z-EM, Inc. (AMEX EZM.A and EZM.B) today announced results for the third fiscal quarter ended March 1, 1997. Net sales increased 9% to $23,576,000 from the prior year's third quarter. The Company posted a net loss for the quarter of $1,046,000, ($.11) per share, compared to net earnings of $9,000, $.00 per share, in the comparable quarter of fiscal 1996. Net sales for the first nine months of fiscal 1997 increased 10% to $72,923,000 from the comparable period in fiscal 1996. Losses from continuing operations were $290,000, ($.03) per share, compared to earnings from continuing operations of $1,255,000, $.13 per share, last year. Net losses were $290,000, ($.03) per share, compared to net earnings of $20,665,000, $2.16 per share on a primary basis ($2.14 on a fully diluted basis), in the comparable period of fiscal 1996. Last year's figures include a net after-tax gain of $19,416,000, or $2.03 per share on a primary basis, from the discontinued operations and sale of the Company's 51%-owned subsidiary Surgical Dynamics Inc. to United States Surgical Corporation. "Poor operating results for the quarter were mainly attributable to our Imaging Products division," said Daniel R. Martin, President and Chief Executive Officer of E-Z-EM. "Flat sales coupled with lower gross profits from unabsorbed overhead in our Canadian operation, as well as increased operating expenses, had a negative impact on results. Additionally, E-Z-EM, like other healthcare manufacturers, has felt the increasing effects of Group Purchasing Organizations, which negotiate discounts for a large number of member facilities in exchange for their purchasing volume. These purchasing agreements do secure a significant portion of available customers for E-Z-EM. However, the impact of the additional discounts required to gain these agreements represented $600,000 for the quarter and $1,300,000 for the nine-month period, which more than offset the positive effect of sales price increases." Results for the third quarters of fiscal 1997 and 1996 were also adversely affected by unabsorbed overhead costs of $689,000 and $692,000, respectively, relating to manufacturing site relocation; year-to-date costs were $2,431,000 for the current fiscal year and $1,932,000 for fiscal 1996. "Our AngioDynamics subsidiary continued strong sales growth up 75% for the quarter and 89% for the year-to-date over last year," continued Martin. "Sales of our new coronary stent, AngioStent , which was introduced in last year's third quarter, were approximately $1,100,000 for the quarter and $4,270,000 for the year-to-date. AngioDynamics' operating expenses increased sharply for the quarter and nine months, principally due to expenses necessary to support the sales increase, as well as increased administrative costs. Operating results for the quarter improved slightly over the comparable period last year, and almost $800,000 over the first nine months of fiscal 1996." For additional information on E-Z-EM, the world's largest manufacturer of contrast agents for gastrointestinal radiology, please contact Frank Kerrigon at 1-800-544-4624, ext. 325, or visit our corporate website at www.ezem.com. The statements made in this press release contain certain forward- looking statements that involve a number of risks and uncertainties. Actual events or results may differ from the Company's expectations. In addition to the matters described in this release, future actions by the FDA, results of pending or future clinical trials, as well as the risk factors listed from time to time in the Company's SEC reports, including but not limited to, its report on Form 10-Q for the quarter ended March 1, 1997, as well as its Annual Report on Form 10-K, may affect the actual results achieved by the Company. # # # FINANCIAL RESULTS OF THIRD QUARTER FOR E-Z-EM, INC. (AMEX-EZM.A AND EZM.B) THIRD QUARTER ENDED ------------------- MARCH 1, MARCH 2, INCREASE (DEC.) 1997 1996 1997 VS. 1996 -------- -------- --------------- INCOME STATEMENT DATA: --------------------- NET SALES (1) $23,576,000 $21,550,000 9% GROSS PROFIT (2) $8,622,000 $8,209,000 5% GROSS PROFIT AS A PERCENT OF SALES 36.6 38.1 - OPERATING EXPENSES $10,117,000 $8,733,000 16% OPERATING PROFIT (LOSS)(2) ($1,495,000) ($524,000) (185%) EARNINGS (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES ($1,423,000) ($166,000) (757%) EARNINGS (LOSS) FROM CONTINUING OPERATIONS ($1,046,000) $9,000 - DISCONTINUED OPERATION - NET EARNINGS (LOSS) ($1,046,000) $9,000 - PRIMARY EARNINGS (LOSS) PER COMMON SHARE CONTINUING OPERATIONS ($.11) $ .00 - DISCONTINUED OPERATION $.00 $ .00 - TOTAL OPERATIONS ($.11) $ .00 - FULLY DILUTED EARNINGS (LOSS) PER COMMON SHARE CONTINUING OPERATIONS ($.11) $ .00 - DISCONTINUED OPERATION $.00 $ .00 - TOTAL OPERATIONS ($.11) $ .00 - WEIGHTED AVERAGE COMMON SHARES PRIMARY 9,324,794 9,767,847 - FULLY DILUTED 9,324,794 9,787,597 - NINE MONTHS ENDED ----------------- MARCH 1, MARCH 2, INCREASE (DEC.) INCOME STATEMENT DATA: 1997 1996 1997 VS. 1996 --------------------- -------- -------- --------------- NET SALES (1) $72,923,000 $66,554,000 10% GROSS PROFIT (2) $28,738,000 $26,963,000 7% GROSS PROFIT AS A PERCENT OF SALES 39.4 40.5 - OPERATING EXPENSES $29,599,000 $26,228,000 13% OPERATING PROFIT (LOSS)(2) ($861,000) $735,000 - EARNINGS (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES ($408,000) $1,310,000 - EARNINGS (LOSS) FROM CONTINUING OPERATIONS ($290,000) $1,255,000 - DISCONTINUED OPERATION $19,410,000 (100%) NET EARNINGS (LOSS) ($290,000) $20,665,000 - PRIMARY EARNINGS (LOSS) PER COMMON SHARE CONTINUING OPERATIONS ($.03) $ .13 - DISCONTINUED OPERATION $.00 $2.03 (100%) TOTAL OPERATIONS ($.03) $2.16 - FULLY DILUTED EARNINGS (LOSS) PER COMMON SHARE CONTINUING OPERATIONS ($.03) $ .13 - DISCONTINUED OPERATION $.00 $2.01 (100%) TOTAL OPERATIONS ($.03) $2.14 - WEIGHTED AVERAGE COMMON SHARES PRIMARY 9,289,396 9,551,687 - FULLY DILUTED 9,289,396 9,658,330 - (1) - INCLUDES ANGIODYNAMICS NET SALES OF $4,660,000 AND $14,148,000 FOR MONTHS ENDED MARCH 1, 1997, AND $2,668,000 AND $7,490,000 FOR THE Q MONTHS ENDED MARCH 2, 1996. (2) - INCLUDES UNABSORBED OVERHEAD COSTS ASSOCIATED WITH THE PREVIOUSLY A OF A PORTION OF OUR CORE MANUFACTURING OPERATIONS. SUCH COSTS APPR AND $2,431,000 FOR THE QUARTER AND NINE MONTHS ENDED MARCH 1, 1997, $1,932,000 FOR THE QUARTER AND NINE MONTHS ENDED MARCH 2, 1996.