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Landec(LFCR) - 2025 Q3 - Quarterly Results
LFCRLandec(LFCR)2025-04-03 20:10

Financial Performance - Revenues for Q3 Fiscal 2025 were 35.2million,adecreaseof235.2 million, a decrease of 2% compared to 35.7 million in the same period last year[9]. - The company recorded a net loss of 14.8million,or14.8 million, or 0.47 loss per diluted share, compared to a net income of 15.6million,or15.6 million, or 0.42 income per diluted share, in the prior year[13]. - Adjusted EBITDA for Q3 Fiscal 2025 was 5.7million,adecreaseof5.7 million, a decrease of 0.7 million from 6.4millionintheprioryear[13].−GrossprofitforQ3Fiscal2025was6.4 million in the prior year[13]. - Gross profit for Q3 Fiscal 2025 was 9.8 million, down from 11.9millioninthesameperiodlastyear,primarilyduetoa11.9 million in the same period last year, primarily due to a 3.0 million decrease in CDMO gross profit[10]. - Operating loss for the three months ended February 23, 2025, was (9,029,000),comparedtoalossof(9,029,000), compared to a loss of (895,000) for the same period in 2024[31]. - Net loss for the three months ended February 23, 2025, was (14,769,000),comparedtonetincomeof(14,769,000), compared to net income of 15,632,000 in the same period last year[32]. - Adjusted EBITDA for the three months ended February 23, 2025, was 5,704,000,adecreasefrom5,704,000, a decrease from 6,377,000 in the prior year[35]. - The net loss (GAAP) is estimated to be (38.6)millionfor2025,comparedto(38.6) million for 2025, compared to (36.6) million in 2024, reflecting an increase due to asset disposal losses and elevated legal expenses[37]. Expenses - Selling, general and administrative expenses for Q3 Fiscal 2025 were 10.1million,anincreasefrom10.1 million, an increase from 9.8 million in the prior year, mainly due to a 1.1millionincreaseinstock−basedcompensation[11].−ResearchanddevelopmentexpensesforthethreemonthsendedFebruary23,2025,were1.1 million increase in stock-based compensation[11]. - Research and development expenses for the three months ended February 23, 2025, were 2,045,000, slightly down from 2,170,000inthesameperiodin2024[31].−Selling,general,andadministrativeexpensesincreasedto2,170,000 in the same period in 2024[31]. - Selling, general, and administrative expenses increased to 10,093,000 for the three months ended February 23, 2025, compared to 9,848,000intheprioryear[31].−Stock−basedcompensationisexpectedtoincreaseto9,848,000 in the prior year[31]. - Stock-based compensation is expected to increase to 10.5 million in 2025, compared to 6.2millionin2024[37].−Reorganizationcostsareestimatedat6.2 million in 2024[37]. - Reorganization costs are estimated at 11.4 million for 2025, up from 9.8millionin2024[37].RevenueProjections−Thecompanyexpectsfullfiscalyear2025revenuetobeapproximately9.8 million in 2024[37]. Revenue Projections - The company expects full fiscal year 2025 revenue to be approximately 126.5 to 130millionandAdjustedEBITDAtobeintherangeof130 million and Adjusted EBITDA to be in the range of 19 to 21million[20].−EstimatedrevenuesfortheyearendingMay25,2025,areprojectedat21 million[20]. - Estimated revenues for the year ending May 25, 2025, are projected at 126.5 million, a decrease from 130millionin2024[37].BalanceSheetandCashFlow−TotalcurrentassetsasofFebruary23,2025,were130 million in 2024[37]. Balance Sheet and Cash Flow - Total current assets as of February 23, 2025, were 84,211,000, an increase from 81,033,000asofFebruary25,2024[29].−TotalliabilitiesasofFebruary23,2025,were81,033,000 as of February 25, 2024[29]. - Total liabilities as of February 23, 2025, were 190,267,000, a decrease from 200,058,000asofFebruary25,2024[29].−CashandcashequivalentsasofFebruary23,2025,were200,058,000 as of February 25, 2024[29]. - Cash and cash equivalents as of February 23, 2025, were 5,417,000, down from 8,462,000asofFebruary25,2024[29].−Thecompanystrengtheneditsbalancesheetbyraisingapproximately8,462,000 as of February 25, 2024[29]. - The company strengthened its balance sheet by raising approximately 17.0 million through the sale of excess capital equipment[1]. - Lifecore's cash balance was enhanced through the sale of an unused high-speed, multi-purpose isolator filler, with an aggregate purchase price of 17million[6].InterestandOtherExpenses−InterestexpenseforQ3Fiscal2025was17 million[6]. Interest and Other Expenses - Interest expense for Q3 Fiscal 2025 was 5.5 million, up from 4.3millioninthesameperiodlastyear[12].−Interestexpenseisprojectedtoriseto4.3 million in the same period last year[12]. - Interest expense is projected to rise to 22 million in 2025, up from 18.1millionin2024[37].−Thecompanyanticipatesachangeinfairvalueofdebtderivativesresultinginalossof18.1 million in 2024[37]. - The company anticipates a change in fair value of debt derivatives resulting in a loss of (3) million in 2025, compared to a loss of (39.5)millionin2024[37].−Thelossonsaleordisposalofassetsisprojectedat(39.5) million in 2024[37]. - The loss on sale or disposal of assets is projected at 7.6 million for 2025, with no such loss reported in 2024[37]. - The company has revised its estimate for restructuring, reorganization, and stockholder activist settlement costs to approximately $11.5 million for 2025[37]. - The increase in net loss is partially offset by lower restructuring expenses related to the resolution of a historical lease obligation[37]. Business Development - Lifecore signed multiple new agreements with both new and existing customers, including a project expansion with a large multi-national pharmaceutical customer[4].