Landec Corporation (Nasdaq: LNDC), today reported results for fiscal year 2011 and the fourth quarter of fiscal year 2011. Revenues for fiscal year 2011 increased 16% to $276.7 million compared to revenues of $238.2 million for the same period a year ago. Net income for fiscal year 2011 was $3.9 million or $0.15 per diluted share compared to net income of $4.0 million or $0.15 per diluted share for the same period last year.
Net income for fiscal year 2011 was negatively impacted by $5.0 million due to weather-related increased costs for produce sourcing in Apio’s value-added vegetable business and by a one-time $4.8 million non-cash, non-tax deductible impairment charge for the write-off of Landec Ag’s goodwill. Excluding the $4.8 million impairment charge, net income in fiscal year 2011 would have been $8.7 million and the earnings per share would have been $0.33, in line with the Company’s revised guidance and an increase over the adjusted earnings per share in fiscal year 2010 of $0.29, after excluding $3.7 million of non-recurring charges in fiscal year 2010. The $3.7 million of non-recurring charges in fiscal year 2010, which were not tax deductible, consisted of $2.7 million of transaction costs associated with the acquisition of Lifecore Biomedical, Inc. (“Lifecore”) and $1.0 million from a non-cash partial impairment charge on our minority equity investment in Aesthetic Sciences Corporation.
Fourth Quarter Results
Landec revenues increased $9.9 million or 17% to $68.1 million during the fourth quarter of fiscal year 2011 compared to the fourth quarter of fiscal year 2010, primarily due to a $4.1 million increase in revenues at Lifecore which was acquired on April 30, 2010. In addition, revenues in Apio Inc.’s value-added vegetable business increased $3.9 million or 9% to $46.8 million and Apio export revenues increased $1.7 million, or 15% to $13.4 million compared to the fourth quarter last year.