This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Landec CEO Discusses F4Q 2011 Results - Earnings Call Transcript

For our fiscal year 2011 which ended in May revenues grew 16% to $276.7 million and adjusted EPS grew to $0.33 per share prior to a one-time $4.8 million non-cash, non-tax deductible impairment charge for the write-off of Landec Ag's goodwill.

Landec generated $14.5 million in cash from the operations this past year, up 93% from our prior fiscal year. Cash balances remain strong at $36.3 million. Landec’s achievement and results in 2011 fiscal year are based on substantial progress in each of our businesses.

Our acquisition of Lifecore exceeded our expectations in the first year. In addition to the successful integration of our Lifecore Biomedical business with Landec, Lifecore demonstrated substantial growth in revenues from $20 million prior to the acquisition to $32.5 million, representing a 63% increase in sales for our fiscal year.

Lifecore EBITDA grew from $2.9 million prior to our acquisition to $9.9 million this past fiscal year, reflecting substantial leveraging of Lifecore’s capacity utilization as we increased unit volume sales to customers. We had expected $7 million to $8 million in EBITDA, but Lifecore was able to generate $9.9 million in EBITDA and achieve the sales growth as I mentioned of over 60%.

Revenues in our Apio fruit business increased by 3% or by $7.3 million in spite of quite difficult consumer economic conditions in the food sector and in spite of terrible weather in major produce growing regions. Extremely poor weather in California and Arizona adversely affected our ability to source produce for a value-added, specialty packaging food business, resulting in approximately $5 million in weather-related variances. In spite of those difficult conditions, we continue to serve our customers well during this time period.

In the fourth quarter, the industry fresh-cut category grew 3%, which was the first time the category has shown any growth in several years. Also in the fourth quarter, we resumed sales growth in Apio's value-added vegetable business and we grew revenues 9% in the quarter.

2 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free


Chart of I:DJI
DOW 17,798.49 -14.90 -0.08%
S&P 500 2,090.11 +1.24 0.06%
NASDAQ 5,127.5250 +11.3820 0.22%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs