Landec Corporation Provides Update on Curation Foods Transformation and Announces Preliminary Fiscal 2020 Fourth Quarter Results
Project SWIFT, which is designed to identify opportunities to transform the Company’s business with a focus on maximizing strategic assets, optimizing its operational network and rightsizing the organization, continues to progress favorably. Following an internal review as part of Project SWIFT,
Dr.
The Company drove significant operational improvements within the
The Company is providing preliminary, unaudited financial results for the fiscal 2020 fourth quarter, ended
The following are preliminary and unaudited financial results for the fiscal 2020 fourth quarter:
Revenue from continuing operations:
- Consolidated Revenues: approximately
$156.1 million - Lifecore: approximately
$25.5 million Curation Foods : approximately$130.6 million
Net income (loss) from continuing operations:
- Consolidated (including Other segment): in the range of
$(14.6) million to$(17.6) million - Lifecore: approximately
$4.8 million Curation Foods : in the range of$(15.4) million to$(18.4) million
Adjusted EBITDA:
- Consolidated (including Other segment): in the range of
$12.6 million to$14.6 million - Lifecore: approximately
$7.5 million Curation Foods : in the range of$5.8 million to$7.8 million
Diluted net (loss) per share:
- Consolidated: in the range of $(0.50) to
$(0.60)
Adjusted Diluted Net Income Per Share:
- Consolidated: in the range of
$0.01 to$0.06
The Company’s actual financial results for the fiscal 2020 fourth quarter and full fiscal year, ended
Update on Credit Agreement
As previously disclosed in the Company’s press release dated
Conference Call and Webcast – Today,
The live webcast can be accessed on Landec’s website on the Investor Events & Presentations page. The webcast will be available for 30 days.
Date:
Time:
Direct Webcast Link: http://ir.Landec.com/events.cfm
To participate in the conference call via telephone, dial toll-free: 877-407-3982 or 201-493-6780. Please call the conference telephone number 5-10 minutes prior to the start time so the operator can register your name and organization. If you have any difficulty with the webcast or connecting to the call, please contact ICR at (646) 277-1263.
A replay of the call will be available through
About
Non-GAAP Financial Information
This press release contains non-GAAP financial information relating to Adjusted EBITDA and Adjusted Diluted Net Income Per Share. The Company has included reconciliation of these non-GAAP financial measures to their respective most directly comparable financial measures calculated in accordance with GAAP. See the section entitled “Non-GAAP Financial Information and Reconciliations” in this release for definitions of Adjusted EBITDA and Adjusted Diluted Net Income Per Share, and those reconciliations.
The Company has disclosed these non-GAAP financial measures to supplement its consolidated financial statements presented in accordance with GAAP. These non-GAAP financial measures exclude/include certain items that are included in the Company’s results reported in accordance with GAAP. Management believes these non-GAAP financial measures provide useful additional information to investors about trends in the Company’s operations and are useful for period-over-period comparisons. These non-GAAP financial measures should not be considered in isolation or as a substitute for the comparable GAAP measures. In addition, these non-GAAP financial measures may not be the same as similar measures provided by other companies due to the potential differences in methods of calculation and items being excluded/included. These non-GAAP financial measures should be read in conjunction with the Company’s consolidated financial statements presented in accordance with GAAP.
Important Cautions Regarding Forward-Looking Statements
Certain statements in this communication are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, as amended, which involve certain risks and uncertainties that could cause actual results to differ materially, including such factors as, among others, the timing and expenses associated with the Company’s operations; the impact of the COVID-19 pandemic on us, our business, our customers, or the economy generally; the anticipated success of the Company’s pending strategic initiatives, including the timing of such initiatives and the Company’s ability to recognize anticipated annual savings on its anticipated timeline, or at all, the ability of the Company to negotiate an amendment to its existing Credit Agreement successfully, or at all, the ability of the Company to achieve acceptance of new products in the market place, weather conditions that can affect the supply and price of produce, government regulations affecting the Company’s business, the timing of regulatory approvals necessary to operate the Company’s business, the Company’s ability to successfully integrate
Non-GAAP Financial Information and Reconciliations
Adjusted EBITDA and Adjusted Diluted Net Income Per Share are non-GAAP financial measures. We define EBITDA as earnings before the fair market value change of the Company’s investment in Windset, interest expense, income tax expense, and depreciation and amortization. We define Adjusted EBITDA as earnings before the fair market value change of the Company’s investment in Windset, interest expense, income tax expense, depreciation and amortization, impairment of goodwill, intangible and other assets, and certain restructuring and other non-recurring charges. We define Adjusted Diluted Net Income Per Share as diluted net income per share before impairment of goodwill, intangible and other assets, and certain restructuring and other non-recurring charges, net of tax. The table below presents the reconciliation of these non-GAAP financial measures to their respective most directly comparable financial measures calculated in accordance with GAAP and other supplemental information. See “Non-GAAP Financial Information” above for further information regarding the Company’s use of non-GAAP financial measures.
(Estimated and Unaudited) | |||
Three Months Ended |
|||
Diluted net (loss) income per share from continuing operations | $ | (0.50) – (0.60) | |
Impairment of goodwill, intangible, and other assets; net of tax, per diluted share (1) | 0.36 – 0.41 | ||
Restructuring and other non-recurring charges; net of tax, per diluted share | 0.20 | ||
Adjusted diluted net income per share from continuing operations | $ | 0.01 – 0.06 | |
(Estimated, Unaudited, and in thousands) | Curation Foods |
Lifecore | Other | Total | ||||||||||||
Three Months Ended |
||||||||||||||||
Net (loss) income from continuing operations | $ | (15,362) – (18,362 |
) | $ | 4,775 | $ | (4,020 | ) | $ | (14,607) – (17,607 |
) | |||||
FMV change of investment in Windset | 4,400 | — | — | 4,400 | ||||||||||||
Interest expense, net of interest income | 1,370 | — | 1,770 | 3,140 | ||||||||||||
Income tax (benefit) expense | (5,627) – (6,627 |
) | 1,426 | (854 | ) | (5,055) – (6,055 |
) | |||||||||
Depreciation and amortization | 3,536 | 1,303 | 27 | 4,866 | ||||||||||||
Total EBITDA | (11,683) – (15,683 |
) | 7,504 | (3,077 | ) | (7,256) – (11,256 |
) | |||||||||
Impairment of goodwill, intangible, and other assets (1) | 14,000 – 16,000 |
— | — | 14,000 – 16,000 |
||||||||||||
Restructuring and other non-recurring charges | 5,479 | — | 2,397 | 7,876 | ||||||||||||
Total Adjusted EBITDA | $ | 5,796 – 7,796 |
$ | 7,504 | $ | (680 | ) | $ | 12,620 – 14,620 |
|||||||
(1) The Company is in the preliminary stages of analyzing its goodwill and intangible assets for impairment. The initial analysis indicates impairment to Curation Foods’ goodwill, trademarks and tradenames, and customer relationships with respect to its O Olive Oil and Vinegar and Yucatan brands. The Company will provide further information when it completes its goodwill and intangible impairment analysis and reports its actual results for the fiscal 2020 fourth quarter and full fiscal year.
Contact Information:
Investor Relations:
(646) 277-1263
jeff.sonnek@icrinc.com
Source: Landec Corporation