Landec(LFCR)2025-04-03 20:10Financial Performance - Revenues for Q3 Fiscal 2025 were $35.2 million, a decrease of 2% compared to $35.7 million in the same period last year[9]. - The company recorded a net loss of $14.8 million, or $0.47 loss per diluted share, compared to a net income of $15.6 million, or $0.42 income per diluted share, in the prior year[13]. - Adjusted EBITDA for Q3 Fiscal 2025 was $5.7 million, a decrease of $0.7 million from $6.4 million in the prior year[13]. - Gross profit for Q3 Fiscal 2025 was $9.8 million, down from $11.9 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), 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), 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, a decrease from $6,377,000 in the prior year[35]. - The net loss (GAAP) is estimated to be $(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 $10.1 million, an increase from $9.8 million in the prior year, mainly due to a $1.1 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 $2,170,000 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 $9,848,000 in the prior year[31]. - Stock-based compensation is expected to increase to $10.5 million in 2025, compared to $6.2 million in 2024[37]. - Reorganization costs are estimated at $11.4 million for 2025, up from $9.8 million in 2024[37]. Revenue Projections - The company expects full fiscal year 2025 revenue to be approximately $126.5 to $130 million and Adjusted EBITDA to be in the range of $19 to $21 million[20]. - Estimated revenues for the year ending May 25, 2025, are projected at $126.5 million, a decrease from $130 million in 2024[37]. Balance Sheet and Cash Flow - Total current assets as of February 23, 2025, were $84,211,000, an increase from $81,033,000 as of February 25, 2024[29]. - Total liabilities as of February 23, 2025, were $190,267,000, a decrease from $200,058,000 as of February 25, 2024[29]. - Cash and cash equivalents as of February 23, 2025, were $5,417,000, down from $8,462,000 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 $17 million[6]. Interest and Other Expenses - Interest expense for Q3 Fiscal 2025 was $5.5 million, up from $4.3 million in the same period last year[12]. - Interest expense is projected to rise to $22 million in 2025, up from $18.1 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) 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].