Landec Corporation (Nasdaq: LNDC), a diversified health and
wellness company with two operating businesses, Curation Foods,
Inc. and Lifecore Biomedical, Inc. reported results for the fiscal
2020 first quarter ended August 25, 2019. Landec plans to create
shareholder value by delivering against our financial targets,
investing in growth, strengthening our balance sheet, implementing
our strategic priorities to improve operating margins at Curation
Foods and driving topline momentum at Lifecore.
Dr. Albert Bolles, Landec’s President and CEO
commented, “First quarter results met our guidance and we are set
up for a successful year at both Lifecore and Curation Foods. We
are investing capital at Lifecore to expand capacity and at
Curation Foods to further automate our processing facilities and
drive out costs. Our people are integral to our success and we are
investing in talent across our entire organization to drive
meaningful change. The results of these efforts are beginning to
show in an improved culture at Landec, which is squarely focused on
profitability and on executing with excellence with an emphasis on
productivity to increase margins, while fostering a culture of
sustainability.”
Fiscal First Quarter 2020 Financial
Highlights
First fiscal quarter 2020 results compared to
first fiscal quarter 2019 are as follows:
(Unaudited and in thousands,
except per-share data) |
|
Three Months Ended |
|
Change |
|
|
August 25, 2019 |
|
August 26, 2018 |
|
Amount |
|
% |
Revenues |
|
$ |
138,714 |
|
|
$ |
124,668 |
|
|
$ |
14,046 |
|
|
11 |
% |
Gross profit |
|
15,336 |
|
|
16,337 |
|
|
(1,001 |
) |
|
(6 |
)% |
Net (loss) income from
continuing operations |
|
(4,784 |
) |
|
335 |
|
|
(5,119 |
) |
|
N/ |
M |
EBITDA* |
|
314 |
|
|
3,301 |
|
|
(2,987 |
) |
|
(90 |
)% |
Diluted net (loss) income per
share |
|
$ |
(0.16 |
) |
|
$ |
0.01 |
|
|
$ |
(0.17 |
) |
|
N/ |
M |
*See “Non-GAAP Financial Information” at the end of this release
for more information and for a reconciliation of certain financial
information.
Revenues increased during the first quarter of
fiscal 2020 primarily due to the addition of Yucatan Foods, which
was acquired on December 1, 2018, that contributed $16.2 million in
revenues and from a $2.2 million or 4% increase in salad revenues
compared to the first quarter of last year. These increases were
partially offset by: (1) a $3.2 million decrease in green bean
revenues due to the extremely heavy rains and flooding in the Ohio
Valley during May and June resulting in yields of 35% to 50% of
normal, (2) a planned $1.4 million decrease in revenues in the
packaged vegetables in bags and trays business, and (3) a $0.6
million planned decrease at Lifecore. The Lifecore decrease was a
result of lower fermentation revenues during the first quarter of
fiscal 2020 compared to the first quarter of fiscal 2019 due to the
timing of shipments within fiscal 2020. The Lifecore revenue
decrease was partially offset by a 49% increase in product
development revenues due to an increase in development activities
during the quarter.
Gross profit decreased during the first quarter
of fiscal 2020 compared to the first quarter of last year primarily
due to a $0.5 million decrease in the Curation Foods segment due to
an unfavorable product mix and a $0.5 million decrease in the
Lifecore segment as a result of a decrease in revenues and the
timing of production within fiscal year 2020.
Net income decreased during the first quarter of
fiscal 2020 compared to the first quarter of last year due to (1) a
$1.0 million decrease in gross profit, (2) a $3.1 million increase
in operating expenses primarily from the addition of Yucatan Foods,
(3) a $1.3 million increase in interest expense due to the increase
in debt from the acquisition of Yucatan Foods, and (4) no increase
in the fair market value of the Company’s Windset investment
compared to a $1.0 million increase during the first quarter of
last year. These decreases in net income were partially offset by a
$1.5 million decrease in income tax expenses.
EBITDA decreased during the first quarter of
fiscal 2020 compared to the first quarter of last year due to the
decrease in gross profit and from an increase in operating expenses
primarily from the addition of Yucatan Foods partially offset by an
increase in depreciation and amortization expenses.
Segment Results
(Unaudited and in
thousands) |
|
Three Months Ended |
|
Change |
|
|
August 25, 2019 |
|
August 26, 2018 |
|
Amount |
|
% |
Revenues: |
|
|
|
|
|
|
|
|
Curation Foods |
|
$ |
126,673 |
|
|
$ |
112,051 |
|
|
$ |
14,622 |
|
|
13 |
% |
Lifecore |
|
12,041 |
|
|
12,617 |
|
|
(576 |
) |
|
(5 |
)% |
Total Revenues |
|
$ |
138,714 |
|
|
$ |
124,668 |
|
|
$ |
14,046 |
|
|
11 |
% |
|
|
|
|
|
|
|
|
|
Gross Profit: |
|
|
|
|
|
|
|
|
Curation Foods |
|
$ |
12,822 |
|
|
$ |
13,370 |
|
|
$ |
(548 |
) |
|
(4 |
)% |
Lifecore |
|
2,514 |
|
|
2,967 |
|
|
(453 |
) |
|
(15 |
)% |
Total Gross Profit |
|
$ |
15,336 |
|
|
$ |
16,337 |
|
|
$ |
(1,001 |
) |
|
(6 |
)% |
|
|
|
|
|
|
|
|
|
Net (Loss) Income from
Continuing Operations: |
|
|
|
|
|
|
|
|
Curation Foods |
|
$ |
(2,171 |
) |
|
$ |
1,913 |
|
|
$ |
(4,084 |
) |
|
N/ |
M |
Lifecore |
|
(1,395 |
) |
|
(547 |
) |
|
(848 |
) |
|
155 |
% |
Other |
|
(1,218 |
) |
|
(1,031 |
) |
|
(187 |
) |
|
18 |
% |
Total Net (Loss) Income from
Continuing Operations |
|
$ |
(4,784 |
) |
|
$ |
335 |
|
|
$ |
(5,119 |
) |
|
N/ |
M |
|
|
|
|
|
|
|
|
|
EBITDA, excluding Windset FMV
change: |
|
|
|
|
|
|
|
|
Curation Foods |
|
$ |
1,804 |
|
|
$ |
4,273 |
|
|
$ |
(2,469 |
) |
|
(58 |
)% |
Lifecore |
|
(675 |
) |
|
247 |
|
|
(922 |
) |
|
N/ |
M |
Corporate |
|
(815 |
) |
|
(1,219 |
) |
|
404 |
|
|
(33 |
)% |
Total EBITDA excluding Windset
FMV change |
|
$ |
314 |
|
|
$ |
3,301 |
|
|
$ |
(2,987 |
) |
|
(90 |
)% |
Update on Curation Foods Operational
Initiatives Aligned with Company Priorities to Improve
Profitability:
- Innovation: Focus on high-margin products and initiatives
- Yucatan Guacamole® Squeeze: Launched a new, first-of-its-kind
packaged guacamole product in a flexible squeeze pouch that allows
for greater usage, convenience and extended shelf life for reduced
waste.
- BreatheWay® Technology: Evolved the BreatheWay patented
packaging technology to go beyond maintaining optimal atmosphere
for individually packaged produce to offering a full supply chain
packaging solution for perishable products reducing shrink for
retailers and extending shelf-life for consumers.
- Operational Excellence and Productivity: Continuous improvement
throughout the supply chain and across all operations
- Cost-out: Achieved cost savings target for Curation Foods for
the first quarter by investing in automation and productivity with
the goal of achieving cost savings of $18 million to $20 million
for all of fiscal 2020.
- Produce Sourcing: Implemented new produce sourcing strategies
to increase the over planting of key produce items in order to help
mitigate shortages, along with the unplanned costs associated with
produce shortages and help ensure the Company can meet current
customer demand and allow for increased demand.
- Yucatan Operations Improvement: Started production the
week of September 9th, over three months earlier than last year
when the start-up was delayed due to the acquisition. This early
production start-up has already resulted in purchasing avocados at
50% less than we were paying during the first quarter of fiscal
2020.
- Created Project Management Office (PMO): Hired Jeff
Korengel as our new VP of Project Management to oversee all of the
responsibilities of the PMO with the goal of completing projects on
time and budget. Jeff’s initial focus will be on Curation Foods’
network optimization, specifically on its packaged vegetables in
bags and trays business.
- Enhancing Food Quality and Safety: Hired Ann Baker as the
Company’s new VP of Quality and Food Safety who will be overseeing
the processes and execution of enhancing food safety and quality
programs across all Curation Foods brands in the U.S. and
Mexico.
- Sustainability: Launched the Landec 2019 Sustainability
Handbook charting the Company’s corporate responsibility
initiatives to respect people, protect the planet and create
shareholder value.
Update on Lifecore Momentum for Topline
Growth:
- Grow Business Development Pipeline:
Development pipeline contributed a 49% year over year increase in
quarterly revenue.
- Capacity Expansion: Investing in
optimization of multi-use filling line.
- Commercialization: Making substantial progress
in moving late stage customers from Phase 3 development to
commercialization
Jim Hall, Lifecore’s President stated, “Our
business continues to see momentum. Our expertise in
pharmaceutical grade hyaluronan (HA) creates differentiation, high
barriers to competition and unique business development
opportunities. We are capitalizing on tailwinds in the CDMO
marketplace and continue to be in an ideal position to meet
increased demand from companies seeking a specialized CDMO partner.
The planned decrease in revenues in the first quarter of fiscal
2020 was due to timing. We are on track to meet our 10 -12% overall
yearly topline growth goal for fiscal 2020.”
Outlook and Fiscal 2020 Guidance (see
Questions & Answers section at the end of this release for
further details)
Greg Skinner Landec’s EVP of Finance and CFO
commented, “We are reiterating our full year fiscal 2020 guidance
and providing our forecast for fiscal second quarter. We plan
to generate substantial profits in the second half of the fiscal
year due to the timing of revenues and profits at Lifecore, the
timing of revenues and profits from the sale of avocado products,
and due to a large majority of the projected cost savings from our
cost out initiatives occurring in the second half of fiscal
2020. Our capital allocation priorities remain focused on
supporting the growth of both of our operating businesses while
balancing that with efforts to reduce our leverage. We were
in compliance with all our debt covenants at quarter end and expect
to be in compliance going forward.”
The Company is reiterating its full year fiscal
2020 guidance as follows:
- Consolidated revenues from continuing operations to grow 8% to
10% compared to fiscal 2019
- Earnings per share to be $0.28 to $0.32
- Cash flow from operations to be $26 million to $30 million
- Consolidated EBITDA to be in the range of $36 million to $40
million
The Company is introducing fiscal second quarter
2020 guidance as follows:
- Revenues to be $142 million to $146 million
- Net loss per share of $0.04 to $0.06 due to certain shipments
for Lifecore, O and avocado products expected for the second
quarter shifting to the third quarter and a portion of the cost out
savings for the second quarter delayed to the second half
- EBITDA to be in the range of $4 million to $5 million
“I have confidence in our guidance for fiscal
2020. At Lifecore, we will continue to expand and advance our
development pipeline and invest in capacity to meet projected
future demand. At Curation Foods, we will focus on four priorities
for a strong financial performance. We will continue to simplify
our business, focus on fewer new products that deliver high impact,
and execute with operational excellence, while driving cost out. At
Lifecore, we will continue to invest in topline growth by
supporting business development opportunities and capacity
expansion. I am confident that we have an action plan in
place to make the changes necessary to be successful and secure
long-term profitable growth. Lifecore and Curation Foods
revenues, and more importantly profits, are expected to begin to
ramp up during the third and fourth quarters, at the same time as
the changes we have outlined begin to take hold,” concluded
Bolles.
Conference CallThe live webcast
can be accessed directly at http://ir.Landec.com/events.cfm or
on Landec’s website on the Investor Events & Presentations
page. The webcast will be available for 30 days.
Date: Wednesday, October 2, 2019Time: 11:00 a.m.
Eastern time (8:00 a.m. Pacific time)Direct Webcast link:
http://ir.Landec.com/events.cfm
To participate in the conference call via
telephone, dial toll-free (877) 407-3982 or (201) 493-6780. Please
call the conference telephone number 5-10 minutes prior to the
start time so the operator can register your name and organization.
If you have any difficulty with the webcast or connecting to the
call, please contact ICR at (646) 277-1254.
A replay of the call will be available through
Wednesday, October 9, 2019 by calling toll-free (844) 512-2921 or
direct (412) 317-6671, and entering code 13694436.
About Landec CorporationLandec
Corporation (Nasdaq: LNDC) is a leading innovator of diversified
health and wellness solutions with two operating businesses:
Curation Foods, Inc. and Lifecore Biomedical, Inc. Curation Foods
is focused on innovating and distributing plant-based foods with
100% clean ingredients to retail, club and foodservice channels
throughout North America. Curation Foods is able to maximize
product freshness through its geographically dispersed family of
growers, refrigerated supply chain and patented
BreatheWay® packaging technology. Curation Foods brands
include Eat Smart® fresh packaged vegetables and
salads, O Olive Oil & Vinegar® premium artisan
products, and Yucatan® and Cabo Fresh® avocado products.
Lifecore Biomedical is a fully integrated contract development and
manufacturing organization (CDMO) that offers highly differentiated
capabilities in the development, fill and finish of difficult to
manufacture pharmaceutical products in syringes and vials. As a
leading manufacturer of premium, injectable grade Hyaluronic Acid,
Lifecore brings 35 years of expertise as a partner for global and
emerging biopharmaceutical and biotechnology companies across
multiple therapeutic categories to bring their innovations to
market. For more information about the company, visit Landec’s
website at www.landec.com.
Non-GAAP Financial
InformationThis press release contains non-GAAP financial
information relating to EBITDA. The Company has included a
reconciliation of this non-GAAP financial measure to the most
directly comparable financial measure calculated in accordance with
GAAP. See the end of this release for these
reconciliations.
The Company has disclosed this non-GAAP
financial measure to supplement its consolidated financial
statements presented in accordance with GAAP. This non-GAAP
financial measure excludes/includes certain items that are included
in the Company’s results reported in accordance with GAAP.
Management believes these non-GAAP financial measures provide
useful additional information to investors about trends in the
Company’s operations and are useful for period-over-period
comparisons. This non-GAAP financial measure should not be
considered in isolation or as a substitute for the comparable GAAP
measures. In addition, this non-GAAP financial measure may not be
the same as similar measures provided by other companies due to the
potential differences in methods of calculation and items being
excluded/included. It should be read in conjunction with the
Company’s consolidated financial statements presented in accordance
with GAAP.
Important Cautions Regarding
Forward-Looking StatementsExcept for the historical
information contained herein, the matters discussed in this news
release are forward-looking statements that involve certain risks
and uncertainties that could cause actual results to differ
materially, including such factors among others, as the timing and
expenses associated with operations, the ability to achieve
acceptance of the Company's new products in the market place,
weather conditions that can affect the supply and price of produce,
government regulations affecting our business; the timing of
regulatory approvals, the ability to successfully integrate Yucatan
Foods into the Curation Foods business, and the mix between
domestic and international sales. For additional information about
factors that could cause actual results to differ materially from
those described in the forward-looking statements, please refer to
our filings with the Securities and Exchange Commission (“SEC”),
including the risk factors contained in our most recent Quarterly
Report on Form 10-Q and Annual Report on Form 10-K. Forward-looking
statements represent management’s current expectations and are
inherently uncertain. Except as required by law, we do not
undertake any obligation to update forward-looking statements made
by us to reflect subsequent events or circumstances.
LANDEC
CORPORATIONCONSOLIDATED CONDENSED BALANCE
SHEETS(In thousands)
|
August 25, 2019 |
|
May 26, 2019 |
|
(unaudited) |
|
|
ASSETS |
|
|
|
Current Assets: |
|
|
|
Cash and cash equivalents |
$ |
1,990 |
|
$ |
1,080 |
Accounts receivable, net |
61,402 |
|
69,565 |
Inventories, net |
55,020 |
|
54,132 |
Prepaid expenses and other current assets |
12,150 |
|
8,264 |
Total Current Assets |
130,562 |
|
133,041 |
|
|
|
|
Investment in non-public
company |
61,100 |
|
61,100 |
Property and equipment, net |
201,557 |
|
200,027 |
Operating leases |
28,726 |
|
— |
Goodwill |
76,742 |
|
76,742 |
Trademarks/tradenames, net |
29,928 |
|
29,928 |
Customer relationships, net |
14,807 |
|
15,319 |
Other assets |
2,715 |
|
2,934 |
Total Assets |
$ |
546,137 |
|
$ |
519,091 |
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY |
|
|
|
Current Liabilities: |
|
|
|
Accounts payable |
$ |
46,162 |
|
$ |
53,973 |
Accrued compensation |
7,399 |
|
10,687 |
Other accrued liabilities |
8,790 |
|
10,001 |
Current portion of lease liabilities |
3,601 |
|
75 |
Deferred revenue |
488 |
|
499 |
Line of credit |
70,600 |
|
52,000 |
Current portion of long-term debt |
9,791 |
|
9,791 |
Other current liabilities, discontinued operations |
— |
|
65 |
Total Current Liabilities |
146,831 |
|
137,091 |
|
|
|
|
Long-term debt, less current
portion |
84,748 |
|
87,193 |
Long-term lease liabilities |
30,026 |
|
3,532 |
Deferred taxes |
17,686 |
|
19,393 |
Other non-current
liabilities |
1,899 |
|
1,738 |
|
|
|
|
Stockholders' Equity |
|
|
|
Common stock |
29 |
|
29 |
Additional paid-in capital |
160,814 |
|
160,341 |
Retained earnings |
104,652 |
|
109,710 |
Accumulated other comprehensive income |
(548 |
) |
64 |
Total Stockholders’ Equity |
264,947 |
|
270,144 |
Total Liabilities and
Stockholders’ Equity |
$ |
546,137 |
|
$ |
519,091 |
LANDEC
CORPORATIONCONSOLIDATED CONDENSED STATEMENTS OF
INCOME(In thousands, except per-share data)(unaudited)
|
Three Months Ended |
|
August 25, 2019 |
|
August 26, 2018 |
Product Sales |
$ |
138,714 |
|
|
$ |
124,668 |
|
Cost of product sales |
123,378 |
|
|
108,331 |
|
Gross profit |
15,336 |
|
|
16,337 |
|
|
|
|
|
Operating costs and
expenses: |
|
|
|
Research and development |
2,821 |
|
|
2,791 |
|
Selling, general and administrative |
16,895 |
|
|
13,803 |
|
Total operating costs and
expenses |
19,716 |
|
|
16,594 |
|
Operating loss |
(4,380 |
) |
|
(257 |
) |
|
|
|
|
Dividend income |
281 |
|
|
413 |
|
Interest income |
25 |
|
|
46 |
|
Interest expense |
(2,075 |
) |
|
(758 |
) |
Other income |
— |
|
|
1,000 |
|
Net (loss) income from
continuing operations before taxes |
(6,149 |
) |
|
444 |
|
Income tax benefit
(expense) |
1,365 |
|
|
(109 |
) |
Net (loss) income from
continuing operations |
(4,784 |
) |
|
335 |
|
|
|
|
|
Discontinued operations: |
|
|
|
Loss from discontinued operations |
— |
|
|
(190 |
) |
Income tax benefit |
— |
|
|
45 |
|
Loss from discontinued
operations |
— |
|
|
(145 |
) |
Net (loss) income available to
common stockholders |
$ |
(4,784 |
) |
|
$ |
190 |
|
|
|
|
|
Diluted net (loss) income per
share from continuing operations |
$ |
(0.16 |
) |
|
$ |
0.01 |
|
Diluted net (loss) per share
from discontinued operations |
$ |
— |
|
|
$ |
— |
|
Diluted net (loss) income per
share |
$ |
(0.16 |
) |
|
$ |
0.01 |
|
|
|
|
|
Shares used in diluted per
share computations |
29,139 |
|
|
28,020 |
|
LANDEC CORPORATIONFIRST
QUARTER ENDED AUGUST 25, 2019QUESTIONS &
ANSWERS
1) What gives you confidence you can go from
a loss for the first six months of fiscal 2020 to your EPS guidance
of $0.28 to $0.32 for the fiscal year?
There are five primary factors that gives us confidence
in being able to achieve our fiscal 2020 EPS
guidance: a. Lifecore
plans to recognize approximately 65% of its revenues and 80% of its
operating income during the second half of fiscal 2020, in line
with historical results based on customer order patterns. And
Lifecore has a very good track record of meeting or exceeding its
plan on a fiscal year basis.
b. Avocado products production began over three
months earlier than last year with a fully trained labor force
which will result in a much higher level of efficiency and
productivity. Starting production this early will also allow us to
complete production in the late April to early May timeframe before
the cost of avocados typically increase.
c. A large majority of the projected $18 million
to $20 million in cost savings from our cost out initiatives will
be recognized during the second half of fiscal 2020 as a result of
the new automation being installed primarily during the first half
of fiscal 2020. Because the cost increases went into effect at the
beginning of fiscal 2020 and the majority of the cost savings won’t
be realized until the second half of fiscal 2020, the projected
cost increases will have a net negative impact during the first
half of the year and a net positive impact during the second half
of the year. d. New
initiatives we have implemented in the area of food safety, new
packaging, network optimization and information technology are
going to start benefiting the Company in the second half of fiscal
2020 and beyond.
e. We expect the growth of salads to accelerate
during the second half of fiscal 2020 and we expect green beans to
rebound from the sourcing issues experienced during the first
quarter of fiscal 2020 and be profitable for the remainder of the
year.
2) What are the expectations for Lifecore’s business
development pipeline?
Lifecore currently has approximately fifteen FDA
regulated drug and medical device products in its development
pipeline that are in various stages of development and that range
from early phase pre-clinical work to late phase pivotal clinical
studies. It is important to understand that Lifecore does not own
the regulatory submission process or the Design History File of the
products that we are developing with our partners. Lifecore
actively supports the submission process by providing the necessary
documentation requested by our partners and by hosting the
regulatory agencies who audit Lifecore as part of the regulatory
approval process (Pre-Approval Inspections). Lifecore anticipates
that at least 1-2 of the current products under development will be
commercially approved within the next 24 months. Moving forward
Lifecore is working towards having a pipeline that provides an
average of 1 to 2 products that receive commercial approval
annually.
3) What are the projected cost savings in fiscal 2020 from
the Curation Foods cost out initiatives?
Curation Foods is projecting cost savings of $18 million
to $20 million in fiscal 2020. A majority of the capital
expenditures in the Curation Foods business during fiscal 2020 is
for new automation associated with the cost out program. The
acquisition and installation of the new automation is in progress
and therefore a large majority of the savings will be realized
during the second half of the fiscal year.
The cost savings realized during fiscal 2020 from the
cost out initiatives will be used to offset projected price
increases, primarily due to increased labor,
freight and raw material sourcing costs. In addition, we have set
aside in our plan and guidance a contingency for unforeseeable
produce sourcing issues which we believe is more than adequate to
cover sourcing issues during the last three quarters of fiscal
2020.
4) What is the Company’s current leverage ratio and
borrowing capacity?
At the end of the first quarter of fiscal 2020 the
Company’s debt-to-equity ratio was 62% and our debt-to-tangible
assets ratio was 39%. Our fixed coverage ratio at the end of fiscal
2019 was 1.9 which is well above our covenant of 1.2 or greater.
Our leverage ratio at the end of fiscal 2019 was 4.4, and our debt
covenant is 4.5 or less. At the end of the first quarter our
borrowing availability was less than $10 million, however, based on
projected positive cash flow from operations over the remainder of
fiscal 2020, coupled with the expected amended debt agreement
described in (5) below, we expect to have adequate liquidity to
continue to grow our business and invest in capital to advance both
our Curation and Lifecore businesses.
5) What is the Company’s plan for reducing its leverage
ratio and/or debt during fiscal 2020?
The Company is in late stage discussions with its banks
(JPMorgan, BMO and City National Bank) to amend its current debt
agreement. We are discussing a financing structure that will extend
the term of our debt, increase the amount of availability and amend
our current covenants. The amendment should give us the necessary
liquidity, along with cash flows from operations, to accelerate our
cost out automation projects at Curation Foods and to expand our
capacity at Lifecore. We expect the amendment to be completed
within the next 30 days.
6) What are Landec’s top priorities for the next 12 to 24
months?
Our top priorities over the next 12-24 months
are:
- Focus: Manage fewer, high-impact projects that
will drive positive EBITDA growth.
- Innovation: Commitment to the consumer with
on-trend plant-based food with 100% clean-ingredients from Curation
Foods core growth platforms: Eat Smart® salads and green
beans, Cabo Fresh® and Yucatan® avocado products, and O Olive Oil
& Vinegar® premium artisan products.
- Productivity: Deliver ongoing savings by creating
a culture of trust, respect and continuous improvement by
clarifying people’s roles and building highly accountable,
productive teams.
- Operational Excellence: Commitment to the
customer by creating a Project Management Office to improve
efficiencies throughout the supply chain and operations, with a
concentration on network optimization. Initial focus will be on the
integration and improvement of Yucatan and Cabo Fresh operations in
Mexico.
- Sustainability: As a mission-based company,
continuing to institute and follow business practices that respect
people and the planet as part of everyday culture through evolving
goals and publishing achievements, in order to further
differentiate the company in the market.
Non-GAAP Financial Information and
Reconciliations
The table below presents the reconciliation of a
non-GAAP financial measure to the most directly comparable
financial measure calculated in accordance with GAAP and other
supplemental information. See “Non-GAAP Financial Information”
above for further information regarding the Company’s use of
non-GAAP financial measures.
(Unaudited and in
thousands) |
|
Three Months Ended |
|
|
August 25, 2019 |
|
August 26, 2018 |
Net (loss) income from
continuing operations |
|
$ |
(4,784 |
) |
|
$ |
335 |
|
FMV change in Windset
investment |
|
— |
|
|
(1,000 |
) |
Net interest expense |
|
2,050 |
|
|
712 |
|
Taxes |
|
(1,365 |
) |
|
109 |
|
Depreciation |
|
3,901 |
|
|
2,862 |
|
Amortization |
|
512 |
|
|
283 |
|
Total EBITDA excluding
Windset FMV change |
|
$ |
314 |
|
|
$ |
3,301 |
|
Contact Information: |
|
|
|
At the
Company: |
Investor
Relations: |
Gregory S. Skinner |
Jeff Sonnek |
Executive Vice President Finance
and Administration and CFO |
(646) 277-1263 |
(650) 261-3677 |
Jeff.sonnek@icrinc.com |
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