Landec Corporation Provides Update on Impact from Extreme Weather Events
September 19 2017 - 9:00AM
Landec Corporation (NASDAQ:LNDC), a leading innovator of
diversified health and wellness solutions within the natural
packaged food and biomaterial markets, provided an update on its
operations at Apio, Inc., Landec’s packaged fresh vegetable
subsidiary, following a series of recent, extreme weather events.
Currently, Landec does not believe that these weather events will
have a significant impact on its fiscal 2018 results.
In late August, Hurricane Harvey ravaged through South and
Southeast Texas and parts of Louisiana with devastating winds and
flooding causing pro-longed power outages and destruction to
infrastructure. Fortunately, the Apio business was not affected by
this storm as Apio green bean plantings in Texas were just outside
of Harvey’s reach.
Starting in June of this year until recently, a series of
tropical storms generated high humidity and excessive moisture in
several growing regions within Mexico and California. This, in
combination with record-breaking high temperatures, has impacted
yields for many fresh produce items, including broccoli and
cauliflower. While supplies remain very tight for many commodities,
Apio is working closely with its diverse network of growers to
minimize any disruption to our customers.
Earlier this month, Hurricane Irma hit Florida as well as the
Caribbean Islands, Georgia and the Carolinas. Hurricane winds and
widespread flooding have caused power outages and vast damage to
infrastructure. Apio has a small manufacturing and distribution
facility in Vero Beach, Florida, which escaped the hurricane
undamaged but was shut down for several days waiting for power in
the area to resume. While the Vero Beach facility was not
operating, Apio’s facility in Bowling Green, Ohio was able to meet
most of the green bean customer demand typically produced by Vero
Beach. Florida is the primary growing region for Apio’s green bean
production during the winter season. Irma has forced a delay of
plantings in Southern Florida of at least a week. This gap will be
filled by product plantings proactively diverted into other
regions. As Irma moved inland, significant winds and considerable
rain impacted the fall transition crop of beans in North Florida
and Georgia. While complete losses were avoided, we do expect a
tight green bean supply market through October.
“Although Apio’s facilities and fiscal 2018 results have not
currently been significantly impacted by these tragedies, many of
our employees have family members and friends who have been deeply
affected,” said Molly Hemmeter, Landec’s President and CEO. “Our
hearts and prayers go out to our employees, their families and all
those victims of Hurricane Harvey and Hurricane Irma that have
experienced unprecedented suffering and loss.”
Landec partnered with the Houston Food Bank to deliver 24,000
Eat Smart salads (approximately 70,000 salad servings) to the
victims of Hurricane Harvey. Landec is currently coordinating with
the SOS Foundation to send an additional delivery of 24,000 salads
to victims of Hurricane Irma.
“We will continue to monitor the heat conditions in the West and
green bean supply in the South with the aim of maximizing customer
fulfillment. It is important to note that there has been no
disruption to the supply of vegetables for Apio’s Eat Smart®
packaged salads during this time, nor does management expect future
disruptions in its ability to meet demand for its salad product
offerings. We will provide an update on any additional information
during the Company’s upcoming fiscal first quarter 2018 earnings
reporting,” concluded Hemmeter.
About Landec
CorporationLandec Corporation (NASDAQ:LNDC) is a
leading innovator of diversified health and wellness solutions
within the packaged natural food and biomaterial markets. Apio,
Landec’s food business, is the leader in branded, packaged fresh
vegetables in North America, utilizing its proprietary BreatheWay®
packaging technology to naturally extend the shelf life of fresh
produce. Apio combines this technology with the capabilities of a
large national fresh produce supplier to offer healthy fresh
vegetable products under the Eat Smart® brand to consumers through
club and retail grocery stores. Extending its reach into adjacent
natural food products outside of produce, Landec recently acquired
O Olive Oil, Inc, an organic and natural producer and marketer of
olive oils and vinegars under the O brand. Lifecore Biomedical,
Landec’s biomaterial business, is a fully integrated Contract
Development and Manufacturing Organization (CDMO) that offers
expertise and capabilities in fermentation, specialty formulation,
aseptic filling and final packaging for FDA regulated medical
devices and drugs to customers for applications in a wide array of
markets including Ophthalmic, Orthopedic and Oncology. For more
information about the company, visit Landec’s website at
www.landec.com.
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, the amount and
timing of research and development funding and license fees from
the Company's collaborative partners, the timing of regulatory
approvals, the mix between domestic and international sales, and
the risk factors listed in the Company’s Form 10-K for the fiscal
year ended May 28, 2017 (See item 1A: Risk Factors) which may be
updated in Part II, Item 1A Risk Factors in the Company’s Quarterly
Reports on Form 10-Q. As a result of these and other factors, the
Company expects to continue to experience significant fluctuations
in quarterly operating results and there can be no assurance that
the Company will remain consistently profitable. The Company
undertakes no obligation to update or revise any forward-looking
statements whether as a result of new developments or
otherwise.
Contact Information:At the
Company:Gregory S. SkinnerVice President Finance and
CFO(650) 261-3677
Investor Relations:John Mills, Partner(646)
277-1254John.Mills@ICRINC.com
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