Landec(LFCR) - 2025 Q2 - Quarterly Results

Financial Performance - Revenues for the three months ended November 24, 2024, were $32.6 million, an increase of 8% compared to $30.2 million for the same period last year[4] - The company recorded a net loss of $22.8 million for the six months ended November 24, 2024, compared to a net income of $3.5 million for the same period last year[7] - Revenues for the six months ended November 24, 2024, were $57.3 million, an increase of 5% compared to $54.7 million for the same period last year[6] - Net loss for the three months ended November 24, 2024, was $6.6 million, compared to net income of $14.2 million for the same period last year[42] - Adjusted EBITDA for the six months ended November 24, 2024, was $4.7 million, a $1.3 million increase from $3.4 million in the prior year period[7] - Adjusted EBITDA for the three months ended November 24, 2024, was $6.5 million, an increase of $1.1 million compared to $5.4 million in the prior year period[42] - Gross profit for the three months ended November 24, 2024, was $11.1 million, compared to $10.0 million for the same period last year[41] - The company recorded a gross profit increase of $3.8 million for the six months ended November 24, 2024, compared to the same period last year[43] Expenses and Costs - Selling, general and administrative expenses for the three months ended November 24, 2024, were $11.1 million, an increase from $9.3 million for the same period last year[19] - Interest expense for the six months ended November 24, 2024, was $10.8 million, an increase from $8.0 million for the same period last year[29] - The company incurred restructuring, reorganization, and stockholder activist settlement costs of $2.9 million for the three months ended November 24, 2024[50] Strategic Developments - The company signed two new project agreements during the second quarter, enhancing its early-stage development pipeline[2] - The company successfully completed the installation of a high-speed, multi-purpose 5-head isolator filler, doubling its capacity with a potential revenue generation of up to $300 million annually[16] - The company appointed new leadership, including a new chief financial officer and senior vice president of human resources, to support its growth strategy[40] - The company is focusing on new business opportunities[52] Financing and Compliance - The company closed a $24.3 million private placement of 5,928,775 shares of its common stock with new and existing shareholders[17] - The company strengthened its balance sheet by raising approximately $24.3 million through equity financing and restructuring its credit facility[38] - The company expects a net loss for the fiscal year to be between $28.6 million and $26.6 million, an increase from previous estimates due to higher expenses[14] - The company regained compliance with Nasdaq listing requirements, ceasing any action to delist its common stock[39] Related Party Transactions - Revenues from related parties for the three months ended November 24, 2024, were $13.0 million, compared to $9.6 million in the same period last year[49] Miscellaneous - Lifecore Biomedical is a fully integrated contract development and manufacturing organization (CDMO)[51] - The financial results were announced on January 2, 2025[51] - Recorded revenues of $32.6 million for Q2 fiscal 2025[51]