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Landec's CEO Discusses F4Q2012 Results - Earnings Call Transcript

Yesterday in our earnings release we reported very good fourth quarter and fiscal year 2012 results. During fiscal year 2012, we achieved record levels of revenues and strong earnings and cash flow from operations along with substantial growth in overall unit volume sales.

As reported, we finished the year strong with the fourth quarter revenues increasing 21% to $82.6 million and fourth quarter net income increasing $5.5 million to $2.8 million, compared to a loss of $2.7 million during the fourth quarter of last year.

For all of fiscal year 2012, revenues increased 15% to a record $317.6 million and net income of $12.7 million or $0.49 a share. They grew 46% compared to fiscal year 2011 and after excluding the $4.8 million goodwill write-off in fiscal year 2011 of our Landec Ag, our former seed subsidiary. In addition, we increased cash flow from operations by 53% to $22.2 million.

Our results reflect a shift in our strategy starting several years ago, a shift to focus on core businesses build on our material science technology in ways where we can control our own success. We are now focused on two core businesses, food and Biomedical materials.

In the food business, we recognize substantial growth opportunities as consumers continue to seek healthy, convenient, fresh-cut produce food choices.

In the Biomedical materials area, we recognize opportunities for using our polymer materials in high margin value-added Biomedical materials applications. To increase growth in revenues and margins in our food business, in April of this year we acquired GreenLine Foods, which is an ideal synergistic match with our Apio food business.

In fiscal year 2013, the year that we started on June 1st, GreenLine is projected to contribute $95 million to $100 million in revenues and $10 million to $11 million in EBITDA.

In 2011, we invested in Windset Farms. As we saw advantages in using hydroponic greenhouse techniques to grow high quality produced throughout the year with consistently high yields.

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