Landec Corporation Reports Unaudited Consolidated Earnings Results for the Second Quarter and First Six Months Ended November 24, 2013; Provides Earnings Guidance for the Full Year of Fiscal 2014
January 02, 2014 at 04:05 pm
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Landec Corporation reported unaudited consolidated earnings results for the second quarter and first six months ended November 24, 2013. Revenue in the second quarter of fiscal 2014 increased by 5%, or $5.4 million, to $120.0 million, compared to $114.7 million in the year-ago quarter. The improvement was primarily due to a $9.5 million, or 12%, increase in revenues in Apio's value-added businesses (which includes Apio's fresh-cut specialty packaged vegetable business, Apio Cooling and Apio Packaging) and a $1.0 million, or 13%, increase in revenues at Lifecore as a result of increased sales to existing customers, as well as from development revenue associated with new aseptic filling opportunities. Net income in the second quarter of fiscal 2014 was $3.5 million or $0.13 per share compared to $8.9 million or $0.34 per share in the year-ago quarter. Net income during the second quarter of last fiscal year was increased by a $3.9 million, or $0.15 per share, one-time earn-out adjustment associated with the acquisition of GreenLine Foods. The decrease in net income in the second quarter was primarily due to a $4.4 million reduction in gross profit because of severe produce shortages in Apio's value-added vegetable business. Operating income was $3.176 million against $11.093 million a year ago. Net income before taxes was $5.367 million against $11.892 million a year ago. Net income available to common stockholders was $3.451 million against $8.913 million a year ago.
Revenue in the first six months of fiscal 2014 increased by 6%, or $12.8 million, to $229.5 million, compared to $216.7 million in the same period last year. The improvement was primarily due to a $20.3 million, or 14%, increase in revenues from Apio's value-added businesses and a $1.7 million, or 11%, increase in revenues at Lifecore resulting from increased sales to existing customers and from development project revenue. Net income in the first six months of fiscal 2014 was $8.2 million or $0.30 per share compared to $13.3 million or $0.50 per share in the first six months of last year. Net income in the first six months of last fiscal year was increased by $3.9 million, or $0.15 per share, due to a one-time earn-out adjustment associated with the acquisition of GreenLine Foods. The decrease in net income in the first six months of fiscal 2014 was primarily due to a $6.8 million reduction in gross profit because of severe produce shortages in Apio's value-added vegetable business. For the first six months of fiscal 2014, Landec generated $4.3 million in cash flow from operations and purchased $7.7 million of capital equipment for capacity expansion at both Apio and Lifecore. The Company also paid down debt by $6.1 million during the first six months of this year. The Company had $27.7 million available under its lines of credit as of November 24, 2013. Operating income was $5.152 million against $14.096 million a year ago. Net income before taxes was $12.653 million against $18.919 million a year ago. Net income available to common stockholders was $8.203 million against $13.279 million a year ago.
The company continues to expect revenues to meet or exceed its original guidance of 6% growth for fiscal 2014 and expects net income to be flat to up 5% compared to fiscal 2013, after excluding the $3.9 million earn out adjustment in fiscal 2013, barring any additional significant negative weather-related events beyond normal historical levels during the remainder of fiscal 2014.
Lifecore Biomedical, Inc. is a fully integrated contract development and manufacturing organization (CDMO). The Company designs, develops, manufactures and sells differentiated products for biomaterials markets and license technology applications to partners. The Company offers highly differentiated capabilities in the development, fill and finish of sterile, injectable-grade pharmaceutical products in syringes and vials. It is involved in the manufacture of pharmaceutical-grade sodium hyaluronate (HA) in bulk form, as well as formulated and filled syringes and vials for injectable products used in treating a spectrum of medical conditions and procedures. The Company uses its fermentation process and aseptic formulation and filling expertise to develop HA-based products for multiple applications and to take advantage of non-HA devices and drug opportunities.
Landec Corporation Reports Unaudited Consolidated Earnings Results for the Second Quarter and First Six Months Ended November 24, 2013; Provides Earnings Guidance for the Full Year of Fiscal 2014