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May 30, 2021

Lifecore Biomedical Q4 2021 Earnings Report

Landec Corporation reported fourth quarter and full fiscal year 2021 results, with Lifecore Biomedical generating full year revenue growth and Curation Foods achieving a solid gross margin.

Key Takeaways

Landec Corporation reported a decrease in revenues for the fourth quarter of fiscal year 2021, but an increase in gross profit. The net loss improved compared to the prior year period. Lifecore Biomedical showed revenue growth, while Curation Foods experienced a revenue decrease but improved gross margin.

Lifecore Biomedical generated full year revenue growth of 14.3%, net income growth of 23.1%, and adjusted EBITDA growth of 22.0%.

Curation Foods achieved fiscal fourth quarter gross margin of 11.9% on revenue of $114.0 Million.

Landec Consolidated Full Year Revenues of $544.2 Million, Net Loss of $32.7 Million, and Adjusted EBITDA of $31.4 Million.

Landec had a solid finish to fiscal 2021 with fiscal fourth quarter performances in both segments that exceeded revised projections.

Total Revenue
$140M
Previous year: $156M
-10.4%
EPS
$0.07
Previous year: $0.05
+40.0%
Gross Profit
$24.8M
Previous year: $24.1M
+2.9%
Cash and Equivalents
$1.3M
Previous year: $360K
+259.7%
Free Cash Flow
-$7.97M
Previous year: -$17.3M
-53.9%
Total Assets
$503M
Previous year: $541M
-7.1%

Lifecore Biomedical

Lifecore Biomedical

Lifecore Biomedical Revenue by Segment

Forward Guidance

The Company is introducing its full year fiscal 2022 guidance, which is detailed below with growth figures that are compared to fiscal 2021.

Positive Outlook

  • Consolidated Revenues: range of $545 million to $554 million (flat to +1.8%)
  • Lifecore segment: range of $105 million to $108 million (+7% to +10%)
  • Consolidated Adjusted EBITDA: range of $33.3 million to $35.5 million (+6% to +13%)
  • Lifecore segment Adjusted EBITDA: range of $26 million to $27 million (+6% to +10%)
  • Curation Foods segment Adjusted EBITDA: range of $12 million to $13 million (+9% to +18%)

Challenges Ahead

  • Curation Foods segment Revenues: range of $440 million to $446 million (-1.4% to 0.0%)
  • Other (Corporate Expense): range of ($4.5) million to ($4.7) million
  • Approximately 30% of its annual consolidated adjusted EBITDA will be generated in its fiscal first half.
  • Customer inventory re-balancing at Lifecore as a result of the COVID-19 pandemic which results in flattish year-over-year revenue growth in fiscal first half followed by substantial double-digit growth in second half at Lifecore.
  • Curation Foods expects the quarterly adjusted EBITDA cadence to be largely comparable to the prior year