NASDAQ$LFCR

Lifecore Biomedical Inc · Q2 2022 earnings

Q2 2022 earnings · · Investor relations

Briefing

Reported results for the fiscal 2022 second quarter, reiterated fiscal 2022 guidance for Lifecore, provided pro forma Curation Foods segment results, and updated guidance for continuing segment operations.

Landec Corporation reported a net loss of $38.4 million for the second quarter of fiscal year 2022. However, pro forma revenues increased by 8.8% year-over-year, and pro forma adjusted EBITDA increased by 41.3% year-over-year. The company also closed the sale of its Eat Smart fresh packaged salads and vegetables business for $73.5 million in cash.

  • Revenues of $129.5 million, pro forma revenues of $43.5 million after adjustment for the Eat Smart Disposition, a pro forma increase of 8.8% year-over-year
  • Gross profit of $13.0 million, pro forma gross profit of $14.7 million, a pro forma increase of 8.2% year-over-year
  • Pro forma adjusted EBITDA of $8.3 million, compared to $5.9 million in the prior year period, a pro forma increase of 41.3% year-over-year
  • Lifecore segment adjusted EBITDA of $9.1 million, compared to $7.3 million in the prior year period, an increase of 25.6% year-over-year

Headline financials

Total Revenue

$129M

Previous: $131M-1.1%
EPS (adj)

-$0.25

Previous: $0.02-1350.0%
Capital Expenditures

-$13M

Previous: -$7.41M-75.6%
Free Cash Flow

-$51.5M

Previous: -$20.7M-148.5%
Net Income

-$38.4M

Previous: -$13.3M-189.0%
Operating Income

-$37M

Previous: -$1.47M-2425.9%
Gross Profit

$13M

Previous: $20.6M-37.0%
Cash & Equivalents

$1.09M

Previous: $2.49M-56.2%
Total Assets

$422M

Previous: $499M-15.4%
Stock-Based Comp

$686K

Previous: $895K-23.4%

Revenue & EPS history

Lifecore Biomedical · Revenue · Quarterly

$129M

Q2 2022-1.1%vs Q2 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 guidance for its Lifecore segment. Additionally, it is updating its guidance to reflect the Curation Foods’ EatSmart Disposition on December 13, 2021, and incremental inflationary and supply chain headwind within the remaining Curation Foods business.

Tailwinds

  • Consolidated Revenues: range of $179 million to $185 million (+4% to +8%)
  • Lifecore segment: range of $105 million to $108 million (+7% to +10%)
  • Curation Foods segment (fiscal 2022, as reported): range of $261 million to $264 million
  • Pro forma Curation Foods segment (fiscal 2022, pro forma for the completion of the Eat Smart Disposition as if it occurred on May 31, 2021): range of $74 million to $77 million (+1% to +5%)
  • Consolidated Adjusted EBITDA: range of $20.5 million to $23 million (+10% to +24%)

Headwinds

  • Curation Foods segment (fiscal 2022, as reported) Adjusted EBITDA: range of ($2) million to ($3) million
  • Other (Corporate Expense) Adjusted EBITDA: range of ($8.0) million to ($8.5) million
  • Incremental inflationary and supply chain headwind within the remaining Curation Foods business
  • Curation Foods segment (fiscal 2022, as reported) Adjusted EBITDA: range of ($2) million to ($3) million
  • Revised guidance to reflect the Curation Foods’ EatSmart Disposition on December 13, 2021

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 2022

Historical avgQ2 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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