Landec Corp Ca (LNDC) 10-Q Quarterly Report April 2020

SANTA MARIA, CA – March 31, 2020 - Landec Corporation (Nasdaq: LNDC), a diversified health and wellness company with two operating businesses, Curation Foods, Inc. and Lifecore Biomedical, Inc., reported results for the fiscal 2020 third quarter and first nine months ended February 23, 2020. Landec plans to create shareholder value by delivering against its long-term financial targets, investing in growth, strengthening its balance sheet, implementing strategic priorities to improve operating margins at Curation Foods and driving topline growth at Lifecore.

FISCAL THIRD QUARTER 2020 BUSINESS HIGHLIGHTS:

•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.

•Diluted net loss per share of $0.39; adjusted diluted net income per share of $0.04, which excludes $0.43 per share 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

•Reiterated full-year fiscal 2020 guidance

CEO COMMENTS:

“We implemented significant operational enhancements during the third quarter of fiscal 2020, which resulted in a $5.9 million sequential increase in our third quarter fiscal 2020 Adjusted EBITDA, compared to our second quarter fiscal 2020 Adjusted EBITDA,” said Dr. Albert Bolles, Landec’s President and CEO. “Adjusted third quarter earnings per share of $0.04 were in line with our recent guidance of $0.02 to $0.06 per share and represent a $0.20 sequential increase compared to our second quarter fiscal 2020. We believe that the turnaround of Curation Foods will continue to provide a foundation for further improvements in our operating cost structure and enhance profitability. We also believe that Lifecore is well positioned for continued growth following investments to increase its production capacity of sterile injectable products to meet increasing customer demand. These developments demonstrate the progress we have made toward achieving our strategic priorities to improve operating margins at Curation Foods, and to invest in growth to drive topline momentum at Lifecore. We are committed to maximizing the value of our portfolio through sound and deliberate execution in each of our segments, while protecting the planet for future generations with sustainable business practices.”

The following information was filed by Landec Corp Ca (LNDC) on Tuesday, March 31, 2020 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-Q Quarterly Report statement of earnings and operation as management may choose to highlight particular information in the press release.

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Inside Landec Corp Ca's 10-Q Quarterly Report:

Revenue - Product Highlight
The use of cash in investing activities during the nine months ended February 23, 2020, was primarily due to the purchase of $22.1 million of equipment to support the growth of the Company's Curation Foods and Lifecore businesses, partially offset by the receipt of $2.4 million related to the sale of the Company's San Rafael, California office building.

Financial - Expense Highlight
The Company includes in cost of sales all of the following costs: raw materials (including produce, seeds, packaging, syringes and fermentation and purification supplies), direct labor, overhead (including indirect labor, depreciation, and facility-related costs) and shipping and shipping-related costs.
Revenue - Product Highlight
Curation Foods The decrease in Curation Foods' revenues for the three months ended February 23, 2020, compared to the same period last year, was primarily due to a $7.2 million planned shift away from non-strategic revenue streams, including packaged vegetables in bags and trays, and a $2.2 million decrease in green bean revenues due to weather-related events that resulted in lower yields.
Financial - Earnings Highlight
-33- Table of Contents Curation Foods The decrease in gross profit for the Curation Foods business for the three months and nine months ended February 23, 2020, compared to the same periods last year, was primarily due to (1) the sale of higher cost avocado products that were produced during the fourth quarter of fiscal 2019 and first quarter of fiscal 2020 when the costs of avocados were substantially higher than current production costs, (2) weather-related events impacting raw material supply, and (3) lower gross profit resulting from the planned decrease in revenues from packaged vegetables in bags and trays.
Financial - Earnings Highlight
The increase in gross profit for the Lifecore business for the nine months ended February 23, 2020, compared to the same period last year, was due to increased development services, fermentation, and aseptic revenues.
Financial - Expense
The Yucatan Foods business adds...Read more
Other - Other
The Credit Agreement contains customary...Read more
Other - Other
Liquidity and Capital Resources As...Read more
Revenue - Product
These increases were partially offset...Read more
Other - Other
Note 1 - Organization, Basis...Read more
Financial - Dividend
Other: Dividend Income Dividend income...Read more
Revenue - Product
Expand medical applications for HA:...Read more
Other - Other
The net cash provided by...Read more
Financial - Expense
Interest Expense The increase in...Read more
Financial - Expense
Windset The Company believes that...Read more
Revenue - Product
The increase in Curation Foods'...Read more
Financial - Dividend
The decrease in dividend income...Read more
Financial - Debt
On March 19, 2020, the...Read more
Other - Other
All forward-looking statements attributable to...Read more
Other - Other
While we believe that our...Read more
Financial - Earnings
Gross Profit: There are numerous...Read more
Other - Other
We believe that the Company's...Read more
Other - Other
Eat Smart Packaged Fresh Vegetables...Read more
Other - Other
Utilize manufacturing infrastructure to pursue...Read more
Revenue - Product
The increase in Lifecore's revenues...Read more
Revenue - Product
Elements of Lifecore's strategy include...Read more

Financial Statements, Disclosures and Schedules

Inside this 10-Q Quarterly Report

Material Contracts, Statements, Certifications & more

Landec Corp Ca provided additional information to their SEC Filing as exhibits

Exhibit 31.1: Rule 13A-14(A)/15D-14(A) Certification

Exhibit 31.2: Rule 13A-14(A)/15D-14(A) Certification

Exhibit 32.1: Section 1350 Certification

Exhibit 32.2: Section 1350 Certification

Ticker: LNDC
CIK: 1005286
Form Type: 10-Q Quarterly Report
Accession Number: 0001628280-20-004602
Submitted to the SEC: Fri Apr 03 2020 4:56:41 PM EST
Accepted by the SEC: Fri Apr 03 2020
Period: Sunday, February 23, 2020
Industry: Canned Fruits Veg Preserves Jams And Jellies