NASDAQ$LFCR

Lifecore Biomedical Inc · Q1 2022 earnings

Q1 2022 earnings · · Investor relations

Briefing

Reported a net loss of $9.5 million and adjusted EBITDA of $4.4 million, driven by growth in gross profit and adjusted EBITDA despite planned revenue reduction in the Curation Foods segment.

Landec Corporation reported a decrease in revenues by 5.1% to $128.8 million, but an increase in gross profit by 7.2% to $17.5 million for the first quarter of fiscal year 2022. The company's adjusted EBITDA increased by 42% to $4.4 million. The company reiterates its full year fiscal 2022 guidance.

  • Revenues decreased by 5.1% year-over-year to $128.8 million due to planned reduction in Curation Foods segment revenues.
  • Gross profit increased by 7.2% year-over-year to $17.5 million, with gross profit margin increasing to 13.6%.
  • Net loss decreased by $1.5 million to $9.5 million, including $2.7 million of restructuring and non-recurring charges.
  • Adjusted EBITDA increased by 42% year-over-year to $4.4 million.

Headline financials

Total Revenue

$129M

Previous: $136M-5.1%
EPS (adj)

-$0.23

Previous: -$0.11-109.1%
Adjusted EBITDA

$4.42M

No prior period
Capital Expenditures

-$7.91M

Previous: -$4.62M-71.2%
Free Cash Flow

-$17.4M

Previous: -$15.6M-11.3%
Net Income

-$9.48M

Previous: -$11M+13.8%
Operating Income

-$3.81M

Previous: -$12.5M+69.5%
Gross Profit

$17.5M

Previous: $16.3M+7.2%
Cash & Equivalents

$1.45M

Previous: $589K+145.7%
Total Assets

$446M

Previous: $506M-12.0%
Stock-Based Comp

$620K

Previous: $892K-30.5%

Revenue & EPS history

Lifecore Biomedical · Revenue · Quarterly

$129M

Q1 2022-5.1%vs Q1 2021
Beat estimate in 10 of 16 quarters(63%)
ActualEstimate

Revenue by segment

Lifecore Biomedical · $24.3M total across 1 segment · Q4 2023

  • CDMO Revenue
    $24.3M

Forward guidance

The Company is reiterating its full year fiscal 2022 guidance, excluding restructuring and other nonrecurring charges, tax implications and any unforeseen potential impact from the ongoing COVID-19 pandemic.

Tailwinds

  • 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%)
  • Curation Foods segment: range of $440 million to $446 million (-1.4% to 0.0%)
  • 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%)

Headwinds

  • Curation Foods segment Adjusted EBITDA: range of $12 million to $13 million (+9% to +18%)
  • Other (Corporate Expense): range of ($4.5) million to ($4.7) million
  • Less than 30% of its annual consolidated adjusted EBITDA will be generated in its fiscal first half due to customer inventory re-balancing at Lifecore.
  • Lifecore to realize a lower gross margin rate in the first half of fiscal 2022 compared to the first half of fiscal 2021 due to product mix.
  • The Company now expects to face inflationary pressures beginning in the second quarter that it believes will be offset by price increases and cost saving initiatives in the second half of fiscal 2022.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2022

Historical avgQ1 2022

-2.1%

Avg return

Earnings day

-2.7%

Avg return

5 days after

-0.4%

Avg return

30 days after

40%

25 / 63 earnings

Positive

+19.5%

Q2 2013

Best reaction

-66.7%

Q2 2023

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q3 2026-3.9%-13.0%+8.9%
Q1 2026-0.1%+7.5%+12.5%
Q4 2025-6.3%-0.3%-3.0%
Q3 2025-22.3%-8.5%+7.0%
Q1 2025+8.1%-3.6%+24.8%
Q4 2024-21.0%-27.0%-21.0%
Q3 2024+8.2%+15.7%-5.0%
Q2 2024+8.2%+15.7%-5.0%
Q1 2024+8.2%+15.7%-5.0%
Q4 2023-13.2%-13.7%-16.8%
Q3 2023-0.5%+3.8%+18.1%
Q2 2023-66.7%-35.1%-23.6%
Q1 2023-5.3%-5.4%+4.0%
Q4 2022+4.7%+7.1%-6.0%
Q3 2022-8.3%-9.6%-20.8%
Q2 2022-1.8%-8.1%-2.5%
Q1 2022-9.6%-10.4%-4.7%
Q4 2021-6.8%-12.4%-10.5%
Q3 2021-10.4%-10.0%+12.0%
Q2 2021-2.2%-0.9%-0.8%
Q1 2021+1.2%+0.8%-2.7%
Q4 2020-14.4%-9.0%-9.4%
Q3 2020+15.3%+15.6%+31.6%
Q2 2020-11.3%-10.5%-1.0%
Q1 2020-3.6%-6.1%-9.4%
Q4 2019+5.2%-1.1%+3.7%
Q3 2019-9.3%-17.5%-18.7%
Q2 2019-12.4%-3.6%+8.1%
Q1 2019-0.2%-4.1%-2.5%
Q4 2018-5.7%-5.3%-5.3%
Q3 2018+6.5%+3.4%+1.9%
Q2 2018+3.2%+3.2%+4.8%
Q1 2018+11.3%+8.4%+9.6%
Q4 2017-7.7%-9.4%-8.7%
Q3 2017+10.1%+19.7%+16.0%
Q2 2017-2.5%-2.2%-10.9%
Q1 2017+5.6%+5.3%+4.4%
Q4 2016+2.1%+1.1%+10.9%
Q3 2016+0.5%
Q2 2016-0.1%
Q1 2016-4.0%
Q4 2015-1.3%
Q3 2015+1.2%
Q2 2015-1.5%
Q1 2015-2.0%
Q4 2014+5.0%
Q3 2014-2.7%
Q2 2014+1.1%
Q1 2014-8.4%
Q4 2013-2.7%
Q3 2013+4.0%
Q2 2013+19.5%
Q4 2010-1.7%
Q1 2013-0.3%
Q4 2012+0.9%
Q3 2011-0.5%
Q3 2012-0.5%
Q2 2011-0.5%
Q2 2012-0.5%
Q1 2011+1.5%
Q1 2012+1.5%
Q4 2011+1.5%
Q3 2010+5.9%

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