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Feb 27, 2022
Lifecore Biomedical Q3 2022 Earnings Report
Landec Corporation reported an increase in Lifecore segment revenues and reiterated fiscal 2022 full year guidance.
Key Takeaways
Landec Corporation reported an 18.8% increase in revenues, driven by a 27.9% increase in Lifecore segment revenues. The company's net loss from continuing operations was $7.1 million, which includes $4.6 million of restructuring and other non-recurring charges. The company is reiterating its previously announced guidance on a pro forma consolidated basis, and at the segment level.
Revenues increased 18.8% year-over-year to $53.1 million.
Gross profit decreased 3.8% year-over-year to $13.9 million, primarily due to the timing and revenue mix at Lifecore.
Net loss from continuing operations was $7.1 million, including $4.6 million of restructuring and other non-recurring charges.
Lifecore segment revenues increased 27.9% in fiscal third quarter, as compared to prior year period
Lifecore Biomedical
Lifecore Biomedical
Forward Guidance
The Company is reiterating its previously announced guidance on a pro forma consolidated basis, and at the segment level.
Positive Outlook
- Pro forma consolidated revenue is expected to be in the range of $179 million to $185 million (+4% to +8%).
- Lifecore segment revenue is expected to be in the range of $105 million to $108 million (+7% to +10%).
- Pro forma Curation Foods segment revenue is expected to be in the range of $74 million to $77 million (+1% to +5%).
- Pro forma consolidated adjusted EBITDA is expected to be in the range of $20.5 million to $23 million (+10% to +24%).
- Lifecore segment adjusted EBITDA is expected to be in the range of $26 million to $27 million (+6% to +10%).
Challenges Ahead
- Guidance continues to reflect the Curation Foods’ Eat Smart Disposition on December 13, 2021.
- Incremental inflationary and supply chain headwinds within the remaining Curation Foods business.
- Pro forma Curation Foods segment adjusted EBITDA is expected to be in the range of $3 million to $4 million (flat to +33%).
- Other (Corporate Expense) is expected to be in the range of ($8.0) million to ($8.5) million.
- Reflects a $3.5 million reallocation of corporate expense from the Eat Smart Disposition to the Other segment