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Feb 23, 2020

Lifecore Biomedical Q3 2020 Earnings Report

Reported third quarter and first nine months fiscal 2020 results.

Key Takeaways

Landec Corporation reported a decrease in revenues and gross profit for the third quarter of fiscal 2020, with revenues at $152.9 million and gross profit at $20.0 million. The company experienced a net loss of $11.5 million, which includes $12.7 million of restructuring and other non-recurring charges, net of tax. Adjusted EBITDA was $6.8 million, excluding $16.8 million of restructuring and other non-recurring charges.

Revenues of $152.9 million, a decrease of 2% year over year

Gross profit of $20.0 million, a decrease of 7% year over year

Net loss of $11.5 million, which includes $12.7 million of restructuring and other non-recurring charges, net of tax.

Adjusted EBITDA was $6.8 million, which excludes $16.8 million of restructuring and other non-recurring charges

Total Revenue
$153M
Previous year: $156M
-1.8%
EPS
$0.04
Previous year: $0.04
+0.0%
Gross Profit
$20M
Previous year: $21.6M
-7.1%
Cash and Equivalents
$2.61M
Previous year: $1.72M
+51.4%
Free Cash Flow
$4.5M
Previous year: -$1.91M
-335.3%
Total Assets
$550M
Previous year: $502M
+9.7%

Lifecore Biomedical

Lifecore Biomedical

Lifecore Biomedical Revenue by Segment

Forward Guidance

Excluding restructuring and other nonrecurring charges, tax implications and any potential impact of the COVID-19 pandemic, the Company is reiterating its full year fiscal 2020 guidance

Positive Outlook

  • Consolidated Revenues: range of $580 million to $590 million (growth of 4% to 6%)
  • Lifecore: range $84 million to $85 million (growth of 10% to 12%)
  • Curation Foods: range of $496 million to $504 million (growth of 3% to 5%)
  • Consolidated Adjusted EBITDA: range $30 million to $34 million (growth of 15% to 30%)
  • Lifecore Adjusted EBITDA: range of $21 million to $23 million (growth of 5% to 15%)

Challenges Ahead

  • Curation Foods Adjusted EBITDA: range of $12 million to $14 million (growth of 70% to 90%)
  • Consolidated Adjusted diluted net income per share: range of $0.16 to $0.20