Landec Corporation Reports Fourth Quarter and Full Year 2020 Results
FISCAL FOURTH QUARTER 2020 BUSINESS HIGHLIGHTS:
- Revenues of
$156.1 million , an increase of 2.2% year over year - Gross profit of
$24.1 million , a decrease of 8.1% year over year - Net loss of
$15.1 million , which includes$6.8 million of restructuring and other non-recurring charges, net of tax and$9.6 million of impairment of goodwill and intangibles charges, net of tax. - Diluted net loss per share of
$0.52 ; adjusted diluted net income per share of$0.05 , which excludes$0.23 per share of restructuring and other non-recurring charges, net of tax and$0.34 per share of impairment of goodwill and intangibles charges, net of tax. - Adjusted EBITDA was
$14.1 million , which excludes$9.2 million of restructuring and other non-recurring charges and$13.0 million of impairment of goodwill and intangibles charges. - Sale of Curation Foods’ non-strategic manufacturing asset in
Ontario, California for$4.8 million - Decision to retain Curation Foods’ legacy core vegetable bag and tray business
FISCAL YEAR 2020 BUSINESS HIGHLIGHTS:
- Revenues of
$590.4 million , an increase of 5.9% year over year - Gross profit of
$75.0 million , a decrease of 7.4% year over year - Net loss of
$38.2 million , which includes$21.1 million of restructuring and other non-recurring charges, net of tax and$9.6 million of impairment of goodwill and intangibles charges, net of tax. - Diluted net loss per share of
$1.31 ; adjusted diluted net loss per share of$0.26 , which excludes$0.72 per share of restructuring and other non-recurring charges and$0.33 per share of impairment of goodwill and intangibles charges, net of tax. - Adjusted EBITDA was
$22.0 million , which excludes$28.3 million of restructuring and other non-recurring charges and$13.0 million of impairment of goodwill and intangibles charges. - Introduced full-year fiscal 2021 guidance
CEO COMMENTS:
“Our organization worked tirelessly in fiscal 2020 to support the acceleration of growth at Lifecore and to stabilize operations at
FOURTH QUARTER 2020 RESULTS:
Fiscal fourth quarter 2020 results compared to fiscal fourth quarter 2019 are as follows:
(Unaudited and in thousands, except per-share data) | Three Months Ended | Change | ||||||||||||||||
Amount | % | |||||||||||||||||
Revenues | $ | 156,131 | $ | 152,780 | $ | 3,351 | 2 | % | ||||||||||
Gross profit | 24,091 | 26,212 | (2,121 | ) | (8 | ) | % | |||||||||||
Net (loss) income from continuing operations | (15,149 | ) | 367 | (15,516 | ) | N/M | ||||||||||||
Diluted net (loss) income per share | (0.52 | ) | 0.01 | (0.53 | ) | N/M | ||||||||||||
Adjusted diluted net income per share* | 0.05 | 0.07 | (0.03 | ) | (38 | ) | % | |||||||||||
EBITDA* | (8,019 | ) | 7,616 | (15,635 | ) | (205 | ) | % | ||||||||||
Adjusted EBITDA* | $ | 14,120 | $ | 11,844 | $ | 2,276 | 19 | % |
* See “Non-GAAP Financial Information” at the end of this release for more information and for a reconciliation of certain financial information.
Revenues increased
Gross profit decreased
Net loss was
Adjusted EBITDA increased
SEGMENT RESULTS:
(Unaudited and in thousands) | Three Months Ended | Change | Twelve Months Ended | Change | ||||||||||||||||||||||||||||||||||
Amount | % | Amount | % | |||||||||||||||||||||||||||||||||||
Revenues: | ||||||||||||||||||||||||||||||||||||||
$ | 130,627 | $ | 128,672 | $ | 1,955 | 2 | % | $ | 504,533 | $ | 481,686 | $ | 22,847 | 5 | % | |||||||||||||||||||||||
Lifecore | 25,504 | 24,108 | 1,396 | 6 | % | $ | 85,833 | $ | 75,873 | $ | 9,960 | 13 | % | |||||||||||||||||||||||||
Total Revenues | $ | 156,131 | $ | 152,780 | $ | 3,351 | 2 | % | $ | 590,366 | $ | 557,559 | $ | 32,807 | 6 | % | ||||||||||||||||||||||
Gross Profit: | ||||||||||||||||||||||||||||||||||||||
$ | 13,231 | $ | 14,735 | $ | (1,504 | ) | (10 | ) | % | $ | 42,105 | $ | 49,305 | $ | (7,200 | ) | (15 | ) | % | |||||||||||||||||||
Lifecore | 10,860 | 11,477 | (617 | ) | (5 | ) | % | $ | 32,883 | $ | 31,698 | $ | 1,185 | 4 | % | |||||||||||||||||||||||
Total Gross Profit | $ | 24,091 | $ | 26,212 | $ | (2,121 | ) | (8 | ) | % | $ | 74,988 | $ | 81,003 | $ | (6,015 | ) | (7 | ) | % | ||||||||||||||||||
Net (Loss) Income from Continuing Operations: | ||||||||||||||||||||||||||||||||||||||
$ | (15,935 | ) | $ | (1,845 | ) | $ | (14,090 | ) | N/M | $ | (39,089 | ) | $ | (6,229 | ) | $ | (32,860 | ) | N/M | |||||||||||||||||||
Lifecore | 4,775 | 5,484 | (709 | ) | (13 | ) | % | $ | 11,748 | $ | 12,070 | $ | (322 | ) | (3 | ) | % | |||||||||||||||||||||
Corporate | (3,989 | ) | (3,272 | ) | (717 | ) | 22 | % | $ | (10,850 | ) | $ | (3,719 | ) | $ | (7,131 | ) | N/M | ||||||||||||||||||||
Total Net (Loss) Income from Continuing Operations | $ | (15,149 | ) | $ | 367 | $ | (15,516 | ) | N/M | $ | (38,191 | ) | $ | 2,122 | $ | (40,313 | ) | N/M | ||||||||||||||||||||
EBITDA, excluding Windset FMV change, and restructuring | ||||||||||||||||||||||||||||||||||||||
$ | (12,446 | ) | $ | 987 | $ | (13,433 | ) | N/M | $ | (29,209 | ) | $ | 4,168 | $ | (33,377 | ) | N/M | |||||||||||||||||||||
Lifecore | 7,504 | 8,469 | (965 | ) | (11 | ) | % | $ | 20,103 | $ | 20,233 | $ | (130 | ) | (1 | ) | % | |||||||||||||||||||||
Corporate | (3,077 | ) | (1,840 | ) | (1,237 | ) | 67 | % | $ | (10,157 | ) | $ | (2,045 | ) | $ | (8,112 | ) | N/M | ||||||||||||||||||||
Total EBITDA excluding Windset FMV change | $ | (8,019 | ) | $ | 7,616 | $ | (15,635 | ) | N/M | $ | (19,263 | ) | $ | 22,356 | $ | (41,619 | ) | N/M |
Lifecore Biomedical Business Update:
CDMO partner Heron Therapeutics’ ZYNRELEF™ (formerly known as HTX-011) Candidate Received Positive Opinion from
Lifecore is the Company’s CDMO business focused on product development and manufacturing of sterile injectable products. Lifecore continues to expand its presence in the CDMO marketplace by finding additional opportunities to partner with biopharmaceutical and medical device companies.
On
Lifecore Biomedical Key Initiatives:
- Business Development Pipeline Progress:
Business development revenue in the fourth quarter of fiscal 2020 increased 5.8% year-over-year. Lifecore currently has 16 projects in its total development pipeline. The projects are generally equally disbursed across the various stages of the product development lifecycle, spanning from early phase clinical development to pre-commercial validation, which aligns with the business’ overall CDMO development strategy. - Maximizing Capacity:
Maximum theoretical manufacturing capacity in fiscal 2020 increased to 22 million units from 17.5 million units with demand of approximately 6.5 million units. Based on commercialization timing estimates for the products within the development pipeline, Lifecore intends to have the capacity to fulfill customer demand for up to 22 million units in the next 3 to 4 years. Lifecore also has the ability to increase manufacturing capacity at its current location to 30 million units annually. - Advancing Product Commercialization:
Lifecore currently expects one product in development to be approved by the FDA for commercialization in calendar year 2020 and the commercialization of one to two products annually.
Concludes strategic review of legacy core vegetable and tray business and sells salad dressing facility for
To date, the Company has announced actions with Project SWIFT, its value creation program that aims to strengthen the
- Focus on Strategic Assets:
Conclusion of Strategic Review for Legacy Vegetable Bag and Tray:
Following a thorough review of the available strategic alternatives with respect to its legacy vegetable bag and tray business, management and the Board of Directors have determined that retaining this business is the best approach to take advantage of operational efficiencies that have already been realized, and allows the Company to meet key strategic customer demand with a full line of fresh plant-based products. The Company anticipates this business will approximate$100 million to$110 million in revenue in fiscal 2021. Management has reset the gross margin structure associated with this business, and as a result, believes that it will generate positive adjusted EBITDA contributions in fiscal 2021.
Non-Core Asset Divestitures:
The Company continues to drive toward a simplification of theCuration Foods business through evaluating potential opportunities to divest non-core assets. Management announced today the assignment of the lease and sale of corresponding assets related to its yet-to-be-operational salad dressing facility inOntario, CA in exchange for$4.8 million in cash. As previously announced, the Company is in the process of exploring a sale of itsHanover, PA manufacturing operations. - Network & Operational Optimization:
The Company has completed its consolidation and centralization of theCuration Foods offices into its Innovation Center headquarters inSanta Maria, CA in order to maximize efficiency and productivity. In addition, the Company has improved plant operations by implementing lean manufacturing practices. - Organizational Redesign:
The Company continues to evaluate and make changes toCuration Foods structural organization so that it can be competitive with industry benchmarks and appropriate for the Company’s future direction, with a focus on strategic initiatives, developing and elevating internal talent and reducing headcount.
UPDATE REGARDING THE COVID-19 PANDEMIC
There are many uncertainties regarding the current novel coronavirus (“COVID-19”) pandemic, including the scope of scientific and health issues, the anticipated duration of the pandemic, and the extent of local and worldwide social, political, and economic disruption it may cause. The COVID-19 pandemic has had, and is expected to continue to have, meaningful adverse impacts on many aspects of the Company’s operations, directly and indirectly, including with respect to its impacts on customer behaviors, business and manufacturing operations, inventory, the Company’s employees, and the market generally, and the scope and nature of these impacts continue to evolve each day. The Company expects to continue to assess the evolving impact of the COVID-19 pandemic, and intends to make adjustments to its responses accordingly.
BALANCE SHEET & AMENDED CREDIT AGREEMENT:
As previously announced, on
FISCAL 2021 OUTLOOK:
Excluding restructuring and other nonrecurring charges, tax implications and any potential impact from the ongoing COVID-19 pandemic, the Company is introducing its full year fiscal 2021 guidance, which is detailed below with growth figures that are compared to fiscal 2020:
Revenue from continuing operations:
- 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%)
Adjusted EBITDA:
- Consolidated: range of
$33 million to$37 million (+50% to +68%) - Lifecore: range of
$22.5 million to$24.5 million (+12% to +22%) Curation Foods : range of$12 million to$14 million (+181% to +238%)
Seasonality:
- From a revenue perspective, the Company anticipates minimal quarterly variation due to seasonality for both
Lifecore and Curation Foods . At Lifecore, this is the result of a coordinated effort to work with customers on shipment timing. From an adjusted EBITDA perspective, the Company anticipates minimal quarterly variation due to seasonality for the fiscal second, third, and fourth quarters during which bothLifecore 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 forCuration 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.
Conference Call
The live webcast can be accessed directly at http://ir.Landec.com/events.cfm or 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 EBITDA, adjusted EBITDA, and adjusted 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 EBITDA, adjusted EBITDA, and adjusted 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
This press release contains forward-looking statements regarding future events and our future results that are subject to the safe harbor created under the Private Securities Litigation Reform Act of 1995 and other safe harbors under the Securities Act of 1933 and the Securities Exchange Act of 1934. Words such as “anticipate”, “estimate”, “expect”, “project”, “plan”, “intend”, “believe”, “may”, “might”, “will”, “should”, “can have”, “likely” and similar expressions are used to identify forward-looking statements. All forward-looking statements involve certain risks and uncertainties that could cause actual results to differ materially, including such factors among others, as the timing and expenses associated with operations, the ability to achieve acceptance of the Company’s new products in the market place, weather conditions that can affect the supply and price of produce, government regulations affecting our business, the timing of regulatory approvals, uncertainties related to COVID-19 and the impact of our responses to it, the ability to successfully integrate
CONSOLIDATED CONDENSED BALANCE SHEETS
(In thousands)
(unaudited) | ||||||||
ASSETS | ||||||||
Current Assets: | ||||||||
Cash and cash equivalents | $ | 360 | $ | 1,080 | ||||
Accounts receivable, less allowance for doubtful accounts | 76,206 | 69,565 | ||||||
Inventories | 66,311 | 54,132 | ||||||
Prepaid expenses and other current assets | 14,230 | 8,264 | ||||||
Total Current Assets | 157,107 | 133,041 | ||||||
Investment in non-public company, fair value | 56,900 | 61,100 | ||||||
Property and equipment, net | 192,338 | 200,027 | ||||||
Operating leases | 25,321 | — | ||||||
69,386 | 76,742 | |||||||
Trademarks/tradenames, net | 25,328 | 29,928 | ||||||
Customer relationships, net | 12,777 | 15,319 | ||||||
Other assets | 2,156 | 2,934 | ||||||
Total Assets | $ | 541,313 | $ | 519,091 | ||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
Current Liabilities: | ||||||||
Accounts payable | $ | 51,647 | $ | 53,973 | ||||
Accrued compensation | 9,034 | 10,687 | ||||||
Other accrued liabilities | 9,978 | 10,001 | ||||||
Current portion of lease liabilities | 4,423 | 75 | ||||||
Deferred revenue | 352 | 499 | ||||||
Line of credit | 77,400 | 52,000 | ||||||
Current portion of long-term debt, net | 11,554 | 9,791 | ||||||
Other current liabilities, discontinued operations | — | 65 | ||||||
Total Current Liabilities | 164,388 | 137,091 | ||||||
Long-term debt, net | 101,363 | 87,193 | ||||||
Long-term lease liabilities | 26,378 | 3,532 | ||||||
Deferred taxes, net | 13,588 | 19,393 | ||||||
Other non-current liabilities | 4,552 | 1,738 | ||||||
Total Liabilities | 310,269 | 248,947 | ||||||
Stockholders’ Equity: | ||||||||
Common stock, |
29 | 29 | ||||||
Additional paid-in capital | 162,578 | 160,341 | ||||||
Retained earnings | 71,245 | 109,710 | ||||||
Accumulated other comprehensive (loss) income | (2,808 | ) | 64 | |||||
Total Stockholders’ Equity | 231,044 | 270,144 | ||||||
Total Liabilities and Stockholders’ Equity | $ | 541,313 | $ | 519,091 |
CONSOLIDATED CONDENSED STATEMENTS OF INCOME AND LOSS
(Unaudited and in thousands, except per-share data) | Three Months Ended | Twelve Months Ended | |||||||||||||||||||
Product sales | $ | 156,131 | $ | 152,780 | $ | 590,366 | $ | 557,559 | |||||||||||||
Cost of product sales | 132,040 | 126,568 | 515,378 | 476,556 | |||||||||||||||||
Gross profit | 24,091 | 26,212 | 74,988 | 81,003 | |||||||||||||||||
Operating costs and expenses: | |||||||||||||||||||||
Research and development | 2,710 | 3,461 | 11,099 | 11,466 | |||||||||||||||||
Selling, general and administrative | 18,187 | 18,271 | 72,188 | 62,062 | |||||||||||||||||
Impairment of goodwill and intangible assets | 12,953 | 2,000 | 12,953 | 2,000 | |||||||||||||||||
Restructuring costs | 3,352 | — | 17,285 | — | |||||||||||||||||
Total operating costs and expenses | 37,202 | 23,732 | 113,525 | 75,528 | |||||||||||||||||
Operating (loss) income | (13,111 | ) | 2,480 | (38,537 | ) | 5,475 | |||||||||||||||
Dividend income | 281 | 412 | 1,125 | 1,650 | |||||||||||||||||
Interest income | 6 | 32 | 103 | 145 | |||||||||||||||||
Interest expense, net | (3,146 | ) | (1,955 | ) | (9,603 | ) | (5,230 | ) | |||||||||||||
Other income (expense) | (4,455 | ) | — | (4,395 | ) | 1,600 | |||||||||||||||
Net (loss) income from continuing operations before tax | (20,425 | ) | 969 | (51,307 | ) | 3,640 | |||||||||||||||
Income tax (expense) benefit | 5,276 | (602 | ) | 13,116 | (1,518 | ) | |||||||||||||||
Net (loss) income from continuing operations | (15,149 | ) | 367 | (38,191 | ) | 2,122 | |||||||||||||||
Discontinued operations: | |||||||||||||||||||||
Loss from discontinued operations | — | (823 | ) | — | (2,238 | ) | |||||||||||||||
Income tax benefit | — | 194 | — | 527 | |||||||||||||||||
(Loss) from discontinued operations, net of tax | — | (629 | ) | — | (1,711 | ) | |||||||||||||||
Net (loss) income applicable to common stockholders | (15,149 | ) | (262 | ) | (38,191 | ) | 411 | ||||||||||||||
Diluted net (loss) income per share from continuing operations | $ | (0.52 | ) | $ | 0.01 | $ | (1.31 | ) | $ | 0.07 | |||||||||||
Diluted net (loss) per share from discontinued operations | $ | — | $ | (0.02 | ) | $ | — | $ | (0.06 | ) | |||||||||||
Diluted net (loss) income per share | $ | (0.52 | ) | $ | (0.01 | ) | $ | (1.31 | ) | $ | 0.01 | ||||||||||
Shares used in diluted per share computations | 29,184 | 29,015 | 29,162 | 28,607 |
Non-GAAP Financial Information and Reconciliations
EBITDA, adjusted EBITDA, and adjusted 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 as adjusted EBITDA as EBITDA before certain restructuring and other non-recurring charges and before impairment of goodwill and intangibles charges. We define adjusted diluted net income per share as diluted net income per share before certain restructuring and other non-recurring charges, net of tax, and before impairment of goodwill and intangibles 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.
(Unaudited and in thousands) | Three Months Ended | Twelve Months Ended | |||||||||||||||||
Net (loss) income from continuing operations | $ | (15,149 | ) | $ | 367 | $ | (38,191 | ) | $ | 2,122 | |||||||||
FMV change in Windset investment | 4,400 | — | 4,200 | (1,600 | ) | ||||||||||||||
Interest expense, net of interest income | 3,140 | 1,923 | 9,500 | 5,085 | |||||||||||||||
Income tax (benefit) expense | (5,276 | ) | 602 | (13,116 | ) | 1,518 | |||||||||||||
Depreciation and amortization | 4,866 | 4,724 | 18,344 | 15,230 | |||||||||||||||
Total EBITDA | (8,019 | ) | 7,616 | (19,263 | ) | 22,355 | |||||||||||||
Restructuring and other non-recurring charges (1) | 9,186 | 2,228 | 28,331 | 1,695 | |||||||||||||||
Impairment of goodwill and intangibles (2) | 12,953 | 2,000 | 12,953 | 2,000 | |||||||||||||||
Total adjusted EBITDA | $ | 14,120 | $ | 11,844 | $ | 22,021 | $ | 26,050 |
(Unaudited and in thousands) | Three Months Ended | Twelve Months Ended | ||||||||||||||||
Diluted net (loss) income per share from continuing operations | $ | (0.52 | ) | $ | 0.01 | $ | (1.31 | ) | $ | 0.07 | ||||||||
Restructuring and other non-recurring charges, net of tax, per diluted share (1) | $ | 0.23 | $ | — | $ | 0.72 | $ | — | ||||||||||
Impairment of goodwill and intangibles, net of tax, per diluted share (2) | $ | 0.34 | $ | 0.06 | $ | 0.33 | $ | 0.06 | ||||||||||
Adjusted diluted net income (loss) per share from continuing operations | $ | 0.05 | $ | 0.07 | $ | (0.26 | ) | $ | 0.13 |
(Unaudited and in thousands) | Lifecore | Other | Total | ||||||||||||||||
Three Months Ended |
|||||||||||||||||||
Net (loss) income from continuing operations | $ | (15,935 | ) | $ | 4,775 | $ | (3,989 | ) | $ | (15,149 | ) | ||||||||
FMV change in Windset investment | 4,400 | — | — | 4,400 | |||||||||||||||
Interest expense, net of interest income | 1,370 | — | 1,770 | 3,140 | |||||||||||||||
Income tax (benefit) expense | (5,817 | ) | 1,426 | (885 | ) | (5,276 | ) | ||||||||||||
Depreciation and amortization | 3,536 | 1,303 | 27 | 4,866 | |||||||||||||||
Total EBITDA | (12,446 | ) | 7,504 | (3,077 | ) | (8,019 | ) | ||||||||||||
Restructuring and other non-recurring charges (1) | 6,789 | — | 2,397 | 9,186 | |||||||||||||||
Impairment of goodwill and intangibles (2) | 12,953 | — | — | 12,953 | |||||||||||||||
Total adjusted EBITDA | $ | 7,296 | $ | 7,504 | $ | (680 | ) | $ | 14,120 | ||||||||||
Twelve Months Ended |
|||||||||||||||||||
Net (loss) income from continuing operations | $ | (39,088 | ) | $ | 11,749 | $ | (10,852 | ) | $ | (38,191 | ) | ||||||||
FMV change in Windset investment | 4,200 | — | — | 4,200 | |||||||||||||||
Interest expense, net of interest income | 5,467 | — | 4,033 | 9,500 | |||||||||||||||
Income tax (benefit) expense | (13,028 | ) | 3,346 | (3,434 | ) | (13,116 | ) | ||||||||||||
Depreciation and amortization | 13,240 | 5,008 | 96 | 18,344 | |||||||||||||||
Total EBITDA | (29,209 | ) | 20,103 | (10,157 | ) | (19,263 | ) | ||||||||||||
Restructuring and other non-recurring charges (1) | 20,697 | — | 7,634 | 28,331 | |||||||||||||||
Impairment of goodwill and intangibles (2) | 12,953 | — | — | 12,953 | |||||||||||||||
Total adjusted EBITDA | $ | 4,441 | $ | 20,103 | $ | (2,523 | ) | $ | 22,021 | ||||||||||
Three Months Ended |
|||||||||||||||||||
Net (loss) income from continuing operations | $ | (1,845 | ) | $ | 5,484 | $ | (3,272 | ) | $ | 367 | |||||||||
FMV change in Windset investment | — | — | — | — | |||||||||||||||
Interest expense, net of interest income | 1,226 | — | 697 | 1,923 | |||||||||||||||
Income tax (benefit) expense | (1,489 | ) | 1,827 | 264 | 602 | ||||||||||||||
Depreciation and amortization | 3,095 | 1,158 | 471 | 4,724 | |||||||||||||||
Total EBITDA | 987 | 8,469 | (1,840 | ) | 7,616 | ||||||||||||||
Restructuring and other non-recurring charges | 1,502 | — | 726 | 2,228 | |||||||||||||||
Impairment of goodwill and intangibles | 2,000 | — | — | 2,000 | |||||||||||||||
Total adjusted EBITDA | $ | 4,489 | $ | 8,469 | $ | (1,114 | ) | $ | 11,844 | ||||||||||
Twelve Months Ended |
|||||||||||||||||||
Net (loss) income from continuing operations | $ | (6,228 | ) | $ | 12,070 | $ | (3,719 | ) | $ | 2,122 | |||||||||
FMV change in Windset investment | (1,600 | ) | — | — | (1,600 | ) | |||||||||||||
Interest expense, net of interest income | 3,166 | — | 1,919 | 5,085 | |||||||||||||||
Income tax (benefit) expense | (1,374 | ) | 4,023 | (1,131 | ) | 1,518 | |||||||||||||
Depreciation and amortization | 10,204 | 4,140 | 886 | 15,230 | |||||||||||||||
Total EBITDA | 4,168 | 20,233 | (2,045 | ) | 22,355 | ||||||||||||||
Restructuring and other non-recurring charges | 969 | — | 726 | 1,695 | |||||||||||||||
Impairment of goodwill and intangibles | 2,000 | — | — | 2,000 | |||||||||||||||
Total adjusted EBITDA | $ | 7,137 | $ | 20,233 | $ | (1,319 | ) | $ | 26,050 |
(1) During fiscal year 2020, the Company announced a restructuring plan to drive enhanced profitability, focus the business on its strategic assets and redesign the organization to be the appropriate size to compete and thrive. This includes a reduction-in-force, a reduction in leased office spaces, and the sale of non-strategic assets. In addition, the Company incurred certain non-recurring charges during fiscal year 2020, primarily related to potential environmental and compliance matters at Curation Foods’ Avocado Products’ factory in
(2) These impairments are related to Curation Foods’ goodwill, trademarks and tradenames, and customer relationships with respect to its O Olive Oil and Vinegar and
Contact Information:
Investor Relations
(646) 277-1263
jeff.sonnek@icrinc.com
Source: Landec Corporation