NASDAQ$LFCR

Lifecore Biomedical Inc · Q4 2020 earnings

Q4 2020 earnings · · Investor relations

Briefing

Reported an increase in revenues and a decrease in gross profit, with a net loss that included restructuring and impairment charges.

Landec Corporation reported a 2.2% increase in revenue to $156.1 million for the fourth quarter of fiscal year 2020. However, the company experienced a net loss of $15.1 million, which included $6.8 million in restructuring and non-recurring charges, net of tax, and $9.6 million in impairment of goodwill and intangibles charges, net of tax.

  • Revenues increased by 2.2% year over year to $156.1 million.
  • Gross profit decreased by 8.1% year over year to $24.1 million.
  • Net loss was $15.1 million, including $6.8 million of restructuring charges and $9.6 million of impairment charges.
  • Adjusted EBITDA increased by 19.2% year over year to $14.1 million.

Headline financials

Total Revenue

$156M

Previous: $153M+2.2%
EPS (adj)

$0.05

Previous: $0.12-58.3%
Adjusted EBITDA

$14.1M

Previous: $11.8M+19.2%
Capital Expenditures

$4.57M

Previous: $11.6M-60.6%
Free Cash Flow

-$17.3M

Previous: -$13M-32.7%
Net Income

-$15.1M

Previous: -$261K-5704.2%
Operating Income

-$13.1M

Previous: $3.9M-436.6%
Gross Profit

$24.1M

Previous: $26.9M-10.3%
Cash & Equivalents

$360K

Previous: $1.08M-66.7%
Total Assets

$541M

Previous: $519M+4.3%
Stock-Based Comp

$538K

Previous: $1.08M-50.1%

Revenue & EPS history

Lifecore Biomedical · Revenue · Quarterly

$156M

Q4 2020+2.2%vs Q4 2019
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 introduced 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%)
  • Company anticipates minimal quarterly variation due to seasonality for the fiscal second, third, and fourth quarters during which both Lifecore 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 for Curation 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.
  • Guidance is before any additional actions associated with Project SWIFT, further efforts to optimize our network, or new product introductions.

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 Q4 2020

Historical avgQ4 2020

-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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