NASDAQ$LFCR

Lifecore Biomedical Inc · Q2 2021 earnings

Q2 2021 earnings · · Investor relations

Briefing

Reported second quarter and first half fiscal year 2021 results and reiterated fiscal 2021 guidance.

Landec Corporation reported a decrease in revenues but an increase in gross profit for the second quarter of fiscal year 2021. The company's net loss increased due to restructuring charges and a change in the fair market value of its Windset investment. However, adjusted EBITDA significantly improved, driven by both the Curation Foods and Lifecore segments.

  • Revenues decreased by 8.2% year-over-year to $130.9 million.
  • Gross profit increased by 33.0% year-over-year to $20.6 million.
  • Net loss was $13.3 million, including restructuring charges and a Windset fair market value adjustment.
  • Adjusted EBITDA increased to $8.7 million, compared to $0.9 million in the prior year period.

Headline financials

Total Revenue

$131M

Previous: $143M-8.2%
EPS (adj)

$0.02

Previous: -$0.23+108.7%
Adjusted EBITDA

$8.71M

No prior period
Capital Expenditures

-$7.41M

Previous: -$16M+53.8%
Free Cash Flow

-$20.7M

Previous: -$22.8M+9.1%
Net Income

-$13.3M

Previous: -$6.74M-97.3%
Operating Income

-$1.47M

Previous: -$6.04M+75.7%
Gross Profit

$20.6M

Previous: $15.5M+33.0%
Cash & Equivalents

$2.49M

Previous: $1.59M+56.3%
Total Assets

$499M

Previous: $560M-10.9%
Stock-Based Comp

$895K

Previous: $787K+13.7%

Revenue & EPS history

Lifecore Biomedical · Revenue · Quarterly

$131M

Q2 2021-8.2%vs Q2 2020
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

Landec Corporation is reiterating its full year fiscal 2021 guidance, excluding restructuring and other nonrecurring charges, tax implications and any potential impact from the ongoing COVID-19 pandemic.

Tailwinds

  • 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%)
  • Consolidated Adjusted EBITDA: range of $33 million to $37 million (+50% to +68%)
  • Lifecore Adjusted EBITDA: range of $22.5 million to $24.5 million (+12% to +22%)

Headwinds

  • Curation Foods Adjusted EBITDA: range of $12 million to $14 million (+181% to +238%)
  • The Company anticipates that fiscal third quarter revenue will be greater than the fiscal fourth quarter revenue for both operating segments due to variations in seasonality.
  • The Company believes that Curation Foods will continue to generate consistent sequential quarterly improvement in its gross profit margin as the business builds towards its steady-state gross profit margin target of 11% to 14% by fiscal year-end 2021.
  • The Company believes that Lifecore has reverted to its pre-COVID gross margin levels and is managing the business to its annualized target of approximately 40%.
  • Taking into account its fiscal first quarter COVID-related margin impact, the Company expects Lifecore to achieve full year fiscal 2021 gross margin of approximately 38%.

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 Q2 2021

Historical avgQ2 2021

-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%

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro