For the fourth quarter, the net income of $2.8 million increased by $5.5 million because the Company recorded a loss of $2.7 million in the prior year fourth quarter. The loss in the prior year fourth quarter was due to the $4.8 million impairment charge from the write off of goodwill at Landec Ag, Landec’s former seed subsidiary. Additionally, net income in the fourth quarter increased due to (1) a $3.3 million increase in Apio’s operating income, including $1.6 million from GreenLine, and before acquisition related expenses of $1.0 million recorded at Apio, and (2) a $1.3 million increase in operating income at Lifecore. These increases in net income in the fourth quarter were partially offset by (1) non-recurring acquisition related expenses of $2.0 million (see the Questions and Answers section in this release for details), (2) a $1.3 million reduction in license fees from the termination of the Monsanto license agreement, and (3) an $836,000 increase in the income tax expense.
Gary Steele, Landec’s Chairman and CEO, commented, “We had a very good fourth quarter. As compared to the fourth quarter of fiscal year 2011, the Apio total value-added business grew revenues 31% during the quarter due to GreenLine revenues of $9.1 million and a $5.2 million growth in sales for Apio’s non-GreenLine value-added businesses. In addition, Lifecore grew revenues 24% during the quarter. Net income, which included net income from GreenLine of $1.6 million and acquisition related expenses of $2.0 million, increased 36% during the fourth quarter of fiscal year 2012, after excluding the goodwill write off of $4.8 million from the results for the fourth quarter of fiscal year 2011.”
Fiscal Year Results
Revenues for fiscal year 2012 increased $40.8 million, or 15%, to a record $317.6 million compared to revenues of $276.7 million for the same period a year ago. Net income for fiscal year 2012 increased 224% to $12.7 million or $0.49 per diluted share compared to net income of $3.9 million or $0.15 per diluted share for the same period last year. Excluding the $4.8 million goodwill write off in fiscal year 2011, net income increased $4.0 million, or 46%.