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May 31, 2020
Lifecore Biomedical Q4 2020 Earnings Report
Reported an increase in revenues and a decrease in gross profit, with a net loss that included restructuring and impairment charges.
Key Takeaways
Landec Corporation reported a 2.2% increase in revenue to $156.1 million for the fourth quarter of fiscal year 2020. However, the company experienced a net loss of $15.1 million, which included $6.8 million in restructuring and non-recurring charges, net of tax, and $9.6 million in impairment of goodwill and intangibles charges, net of tax.
Revenues increased by 2.2% year over year to $156.1 million.
Gross profit decreased by 8.1% year over year to $24.1 million.
Net loss was $15.1 million, including $6.8 million of restructuring charges and $9.6 million of impairment charges.
Adjusted EBITDA increased by 19.2% year over year to $14.1 million.
Lifecore Biomedical
Lifecore Biomedical
Forward Guidance
Landec Corporation introduced its full year fiscal 2021 guidance, excluding restructuring and other nonrecurring charges, tax implications and any potential impact from the ongoing COVID-19 pandemic.
Positive Outlook
- Consolidated Revenues: range of $530 million to $550 million (-10% to -7%)
- Lifecore: range of $93 million to $97 million (+8% to +13%)
- Curation Foods: range of $437 million to $453 million (-13% to -10%)
- Consolidated Adjusted EBITDA: range of $33 million to $37 million (+50% to +68%)
- Lifecore Adjusted EBITDA: range of $22.5 million to $24.5 million (+12% to +22%)
Challenges Ahead
- Curation Foods Adjusted EBITDA: range of $12 million to $14 million (+181% to +238%)
- Company anticipates minimal quarterly variation due to seasonality for the fiscal second, third, and fourth quarters during which both Lifecore and Curation Foods are expected to deliver normalized gross and adjusted EBITDA margins.
- For the fiscal first quarter, the Company anticipates that it will experience margin related headwinds associated with expected seasonal plant closures at its avocado products manufacturing operation during the summer off-season, which lowers fixed cost absorption for Curation Foods.
- At Lifecore, in fiscal first quarter the business is experiencing temporary margin compression associated with sell through of its higher cost inventory that resulted from the fiscal fourth quarter 2020 COVID-19 manufacturing inefficiencies, which have since been corrected and are not expected to impact future quarters.
- Guidance is before any additional actions associated with Project SWIFT, further efforts to optimize our network, or new product introductions.