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Share Name | Share Symbol | Market | Type |
---|---|---|---|
Landec Corp | NASDAQ:LNDC | NASDAQ | Common Stock |
Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
0.00 | 0.00% | 8.76 | 8.25 | 8.87 | 0 | 01:00:00 |
|
[X]
|
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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[ ]
|
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
Delaware
|
94-3025618
|
(State or other jurisdiction of incorporation or organization)
|
(IRS Employer Identification Number)
|
Title of each class
|
Trading Symbol
|
Name of each exchange on which registered
|
Common Stock
|
LNDC
|
The NASDAQ Global Select Market
|
Large Accelerated Filer ___
|
Accelerated Filer X
|
Emerging Growth Company ___
|
Non Accelerated Filer ___
|
Smaller Reporting Company ___
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Page
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November 24, 2019
|
|
May 26, 2019
|
||||
|
(unaudited)
|
|
|
||||
ASSETS
|
|
|
|
||||
Current Assets:
|
|
|
|
||||
Cash and cash equivalents
|
$
|
1,594
|
|
|
$
|
1,080
|
|
Accounts receivable, less allowance for doubtful accounts
|
69,962
|
|
|
69,565
|
|
||
Inventories
|
58,563
|
|
|
54,132
|
|
||
Prepaid expenses and other current assets
|
10,061
|
|
|
8,264
|
|
||
Total Current Assets
|
140,180
|
|
|
133,041
|
|
||
|
|
|
|
||||
Investment in non-public company, fair value
|
61,300
|
|
|
61,100
|
|
||
Property and equipment, net
|
204,687
|
|
|
200,027
|
|
||
Operating leases
|
29,779
|
|
|
—
|
|
||
Goodwill
|
77,246
|
|
|
76,742
|
|
||
Trademarks/tradenames, net
|
29,928
|
|
|
29,928
|
|
||
Customer relationships, net
|
14,294
|
|
|
15,319
|
|
||
Other assets
|
2,583
|
|
|
2,934
|
|
||
Total Assets
|
$
|
559,997
|
|
|
$
|
519,091
|
|
|
|
|
|
||||
LIABILITIES AND STOCKHOLDERS’ EQUITY
|
|
|
|
||||
Current Liabilities:
|
|
|
|
||||
Accounts payable
|
$
|
47,145
|
|
|
$
|
53,973
|
|
Accrued compensation
|
8,700
|
|
|
10,687
|
|
||
Other accrued liabilities
|
10,702
|
|
|
10,001
|
|
||
Current portion of lease liabilities
|
3,980
|
|
|
75
|
|
||
Deferred revenue
|
611
|
|
|
499
|
|
||
Line of credit
|
61,500
|
|
|
52,000
|
|
||
Current portion of long-term debt, net
|
11,723
|
|
|
9,791
|
|
||
Other current liabilities, discontinued operations
|
—
|
|
|
65
|
|
||
Total Current Liabilities
|
144,361
|
|
|
137,091
|
|
||
|
|
|
|
||||
Long-term debt, net
|
107,470
|
|
|
87,193
|
|
||
Long-term lease liabilities
|
30,795
|
|
|
3,532
|
|
||
Deferred taxes, net
|
17,047
|
|
|
19,393
|
|
||
Other non-current liabilities
|
1,248
|
|
|
1,738
|
|
||
Total Liabilities
|
300,921
|
|
|
248,947
|
|
||
|
|
|
|
||||
Stockholders’ Equity:
|
|
|
|
||||
Common stock, $0.001 par value; 50,000 shares authorized; 29,163 and 29,102 shares issued and outstanding at November 24, 2019 and May 26, 2019, respectively
|
29
|
|
|
29
|
|
||
Additional paid-in capital
|
161,556
|
|
|
160,341
|
|
||
Retained earnings
|
97,912
|
|
|
109,710
|
|
||
Accumulated other comprehensive (loss) income
|
(421
|
)
|
|
64
|
|
||
Total Stockholders’ Equity
|
259,076
|
|
|
270,144
|
|
||
Total Liabilities and Stockholders’ Equity
|
$
|
559,997
|
|
|
$
|
519,091
|
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
November 24, 2019
|
|
November 25, 2018
|
|
November 24, 2019
|
|
November 25, 2018
|
||||||||
Product sales
|
$
|
142,593
|
|
|
$
|
124,557
|
|
|
$
|
281,307
|
|
|
$
|
249,225
|
|
Cost of product sales
|
127,079
|
|
|
107,672
|
|
|
250,457
|
|
|
216,003
|
|
||||
Gross profit
|
15,514
|
|
|
16,885
|
|
|
30,850
|
|
|
33,222
|
|
||||
Operating costs and expenses:
|
|
|
|
|
|
|
|
||||||||
Research and development
|
2,822
|
|
|
2,475
|
|
|
5,643
|
|
|
5,266
|
|
||||
Selling, general and administrative
|
18,728
|
|
|
14,400
|
|
|
35,623
|
|
|
28,203
|
|
||||
Total operating costs and expenses
|
21,550
|
|
|
16,875
|
|
|
41,266
|
|
|
33,469
|
|
||||
Operating (loss) income
|
(6,036
|
)
|
|
10
|
|
|
(10,416
|
)
|
|
(247
|
)
|
||||
|
|
|
|
|
|
|
|
||||||||
Dividend income
|
281
|
|
|
412
|
|
|
562
|
|
|
825
|
|
||||
Interest income
|
25
|
|
|
33
|
|
|
50
|
|
|
79
|
|
||||
Interest expense
|
(2,169
|
)
|
|
(746
|
)
|
|
(4,244
|
)
|
|
(1,504
|
)
|
||||
Other income
|
200
|
|
|
600
|
|
|
200
|
|
|
1,600
|
|
||||
Other expense
|
(206
|
)
|
|
—
|
|
|
(206
|
)
|
|
—
|
|
||||
Net (loss) income from continuing operations before tax
|
(7,905
|
)
|
|
309
|
|
|
(14,054
|
)
|
|
753
|
|
||||
Income tax benefit (expense)
|
1,165
|
|
|
(422
|
)
|
|
2,530
|
|
|
(532
|
)
|
||||
Net (loss) income from continuing operations
|
$
|
(6,740
|
)
|
|
$
|
(113
|
)
|
|
$
|
(11,524
|
)
|
|
$
|
221
|
|
|
|
|
|
|
|
|
|
||||||||
Discontinued operations:
|
|
|
|
|
|
|
|
||||||||
Loss from discontinued operations
|
$
|
—
|
|
|
$
|
(616
|
)
|
|
$
|
—
|
|
|
$
|
(806
|
)
|
Income tax benefit
|
—
|
|
|
145
|
|
|
—
|
|
|
190
|
|
||||
Loss from discontinued operations, net of tax
|
—
|
|
|
(471
|
)
|
|
—
|
|
|
(616
|
)
|
||||
Net loss applicable to common stockholders
|
$
|
(6,740
|
)
|
|
$
|
(584
|
)
|
|
$
|
(11,524
|
)
|
|
$
|
(395
|
)
|
|
|
|
|
|
|
|
|
||||||||
Basic net loss per share:
|
|
|
|
|
|
|
|
||||||||
(Loss) income from continuing operations
|
$
|
(0.23
|
)
|
|
$
|
0.00
|
|
|
$
|
(0.40
|
)
|
|
$
|
0.01
|
|
Loss from discontinued operations
|
—
|
|
|
(0.02
|
)
|
|
—
|
|
|
(0.02
|
)
|
||||
Total basic net loss per share
|
$
|
(0.23
|
)
|
|
$
|
(0.02
|
)
|
|
$
|
(0.40
|
)
|
|
$
|
(0.01
|
)
|
|
|
|
|
|
|
|
|
||||||||
Diluted net loss per share:
|
|
|
|
|
|
|
|
||||||||
(Loss) income from continuing operations
|
$
|
(0.23
|
)
|
|
$
|
0.00
|
|
|
$
|
(0.40
|
)
|
|
$
|
0.01
|
|
Loss from discontinued operations
|
—
|
|
|
(0.02
|
)
|
|
—
|
|
|
(0.02
|
)
|
||||
Total diluted net loss per share
|
$
|
(0.23
|
)
|
|
$
|
(0.02
|
)
|
|
$
|
(0.40
|
)
|
|
$
|
(0.01
|
)
|
|
|
|
|
|
|
|
|
||||||||
Shares used in per share computation
|
|
|
|
|
|
|
|
||||||||
Basic
|
29,155
|
|
|
27,764
|
|
|
29,147
|
|
|
27,751
|
|
||||
Diluted
|
29,155
|
|
|
27,764
|
|
|
29,147
|
|
|
27,751
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Other comprehensive income (loss), net of tax:
|
|
|
|
|
|
|
|
||||||||
Net unrealized gains (losses) on interest rate swaps (net of tax effect of $(39), $(23), $226 and $4)
|
$
|
127
|
|
|
$
|
76
|
|
|
$
|
(485
|
)
|
|
$
|
(13
|
)
|
Other comprehensive income (loss), net of tax
|
127
|
|
|
76
|
|
|
(485
|
)
|
|
(13
|
)
|
||||
Total comprehensive loss
|
$
|
(6,613
|
)
|
|
$
|
(508
|
)
|
|
$
|
(12,009
|
)
|
|
$
|
(408
|
)
|
Three and Six Months Ended November 24, 2019
|
||||||||||||||||||||||
|
|
|
|
|
Additional
Paid-in
Capital
|
|
Retained
Earnings
|
|
Accumulated
Other
Comprehensive
Income (Loss)
|
|
Total
Stockholders’
Equity
|
|||||||||||
|
Common Stock
|
|
|
|
|
|||||||||||||||||
|
Shares
|
|
Amount
|
|
|
|
|
|||||||||||||||
Balance at May 26, 2019
|
29,102
|
|
|
$
|
29
|
|
|
$
|
160,341
|
|
|
$
|
109,710
|
|
|
$
|
64
|
|
|
$
|
270,144
|
|
ASC 842 transition adjustment
|
—
|
|
|
—
|
|
|
—
|
|
|
(274
|
)
|
|
—
|
|
|
(274
|
)
|
|||||
Issuance of stock under stock plans
|
44
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Taxes paid by Company for employee stock plans
|
—
|
|
|
—
|
|
|
(55
|
)
|
|
—
|
|
|
—
|
|
|
(55
|
)
|
|||||
Stock-based compensation
|
—
|
|
|
—
|
|
|
528
|
|
|
—
|
|
|
—
|
|
|
528
|
|
|||||
Net loss
|
—
|
|
|
—
|
|
|
—
|
|
|
(4,784
|
)
|
|
—
|
|
|
(4,784
|
)
|
|||||
Other comprehensive loss, net of tax
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(612
|
)
|
|
(612
|
)
|
|||||
Balance at August 25, 2019
|
29,146
|
|
|
$
|
29
|
|
|
$
|
160,814
|
|
|
$
|
104,652
|
|
|
$
|
(548
|
)
|
|
$
|
264,947
|
|
Issuance of stock under stock plans
|
17
|
|
|
—
|
|
|
30
|
|
|
—
|
|
|
—
|
|
|
30
|
|
|||||
Taxes paid by Company for employee stock plans
|
—
|
|
|
—
|
|
|
(75
|
)
|
|
—
|
|
|
—
|
|
|
(75
|
)
|
|||||
Stock-based compensation
|
—
|
|
|
—
|
|
|
787
|
|
|
—
|
|
|
—
|
|
|
787
|
|
|||||
Net loss
|
—
|
|
|
—
|
|
|
—
|
|
|
(6,740
|
)
|
|
—
|
|
|
(6,740
|
)
|
|||||
Other comprehensive income, net of tax
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
127
|
|
|
127
|
|
|||||
Balance at November 24, 2019
|
29,163
|
|
|
$
|
29
|
|
|
$
|
161,556
|
|
|
$
|
97,912
|
|
|
$
|
(421
|
)
|
|
$
|
259,076
|
|
Three and Six Months Ended November 25, 2018
|
||||||||||||||||||||||
|
|
|
|
|
Additional
Paid-in Capital |
|
Retained
Earnings |
|
Accumulated
Other Comprehensive Income |
|
Total
Stockholders’ Equity |
|||||||||||
|
Common Stock
|
|
|
|
|
|||||||||||||||||
|
Shares
|
|
Amount
|
|
|
|
|
|||||||||||||||
Balance at May 27, 2018
|
27,702
|
|
|
$
|
28
|
|
|
$
|
142,087
|
|
|
$
|
109,299
|
|
|
$
|
1,148
|
|
|
$
|
252,562
|
|
Issuance of stock under stock plans
|
47
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Taxes paid by Company for employee stock plans
|
—
|
|
|
—
|
|
|
(10
|
)
|
|
—
|
|
|
—
|
|
|
(10
|
)
|
|||||
Stock-based compensation
|
—
|
|
|
—
|
|
|
728
|
|
|
—
|
|
|
—
|
|
|
728
|
|
|||||
Net income
|
—
|
|
|
—
|
|
|
—
|
|
|
190
|
|
|
—
|
|
|
190
|
|
|||||
Other comprehensive loss, net of tax
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(89
|
)
|
|
(89
|
)
|
|||||
Balance at August 26, 2018
|
27,749
|
|
|
$
|
28
|
|
|
$
|
142,805
|
|
|
$
|
109,489
|
|
|
$
|
1,059
|
|
|
$
|
253,381
|
|
Issuance of stock under stock plans
|
36
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Taxes paid by Company for employee stock plans
|
—
|
|
|
—
|
|
|
(237
|
)
|
|
—
|
|
|
—
|
|
|
(237
|
)
|
|||||
Stock-based compensation
|
—
|
|
|
—
|
|
|
938
|
|
|
—
|
|
|
—
|
|
|
938
|
|
|||||
Net loss
|
—
|
|
|
—
|
|
|
—
|
|
|
(585
|
)
|
|
—
|
|
|
(585
|
)
|
|||||
Other comprehensive income, net of tax
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
76
|
|
|
76
|
|
|||||
Balance at November 25, 2018
|
27,785
|
|
|
$
|
28
|
|
|
$
|
143,506
|
|
|
$
|
108,904
|
|
|
$
|
1,135
|
|
|
$
|
253,573
|
|
|
Six Months Ended
|
||||||
|
November 24, 2019
|
|
November 25, 2018
|
||||
Cash flows from operating activities:
|
|
|
|
||||
Consolidated net loss
|
$
|
(11,524
|
)
|
|
$
|
(395
|
)
|
Adjustments to reconcile net loss to net cash provided by operating activities:
|
|
|
|
||||
Depreciation, amortization of intangibles and amortization of debt costs
|
9,030
|
|
|
6,458
|
|
||
Stock-based compensation expense
|
1,315
|
|
|
1,666
|
|
||
Deferred taxes
|
(2,624
|
)
|
|
226
|
|
||
Change in investment in non-public company, fair value
|
(200
|
)
|
|
(1,600
|
)
|
||
Change in contingent consideration liability
|
(500
|
)
|
|
(900
|
)
|
||
Net (gain) loss on disposal of property and equipment
|
(15
|
)
|
|
1
|
|
||
Pacific Harvest note receivable reserve
|
1,202
|
|
|
—
|
|
||
Impairment of assets
|
406
|
|
|
—
|
|
||
Other, net
|
206
|
|
|
—
|
|
||
Changes in current assets and current liabilities:
|
|
|
|
||||
Accounts receivable, net
|
(397
|
)
|
|
975
|
|
||
Inventories
|
(4,431
|
)
|
|
191
|
|
||
Prepaid expenses and other current assets
|
(554
|
)
|
|
2,267
|
|
||
Accounts payable
|
(6,105
|
)
|
|
(1,381
|
)
|
||
Accrued compensation
|
(1,988
|
)
|
|
(3,322
|
)
|
||
Other accrued liabilities
|
1,145
|
|
|
1,575
|
|
||
Deferred revenue
|
112
|
|
|
(958
|
)
|
||
Net cash (used in) provided by operating activities
|
(14,922
|
)
|
|
4,803
|
|
||
|
|
|
|
||||
Cash flows from investing activities:
|
|
|
|
||||
Purchases of property and equipment
|
(16,029
|
)
|
|
(18,588
|
)
|
||
Proceeds from collections of notes receivable
|
364
|
|
|
195
|
|
||
Proceeds from sales of fixed assets
|
29
|
|
|
3
|
|
||
Net cash used in investing activities
|
(15,636
|
)
|
|
(18,390
|
)
|
||
|
|
|
|
||||
Cash flows from financing activities:
|
|
|
|
||||
Proceeds from sale of common stock
|
30
|
|
|
—
|
|
||
Taxes paid by Company for employee stock plans
|
(130
|
)
|
|
(247
|
)
|
||
Proceeds from debt
|
27,500
|
|
|
—
|
|
||
Payments on long-term debt
|
(5,062
|
)
|
|
(2,543
|
)
|
||
Proceeds from lines of credit
|
62,900
|
|
|
15,000
|
|
||
Payments on lines of credit
|
(53,400
|
)
|
|
—
|
|
||
Payments for debt issuance costs
|
(766
|
)
|
|
—
|
|
||
Net cash provided by financing activities
|
31,072
|
|
|
12,210
|
|
||
Net increase (decrease) in cash, cash equivalents and restricted cash
|
514
|
|
|
(1,377
|
)
|
||
Cash, cash equivalents and restricted cash, beginning of period
|
1,465
|
|
|
3,216
|
|
||
Cash, cash equivalents and restricted cash, end of period
|
$
|
1,979
|
|
|
$
|
1,839
|
|
|
|
|
|
||||
Supplemental disclosure of non-cash investing activities:
|
|
|
|
||||
Purchases of property and equipment on trade vendor credit
|
$
|
3,174
|
|
|
$
|
1,319
|
|
Pacific Harvest note receivable reserve
|
$
|
1,202
|
|
|
$
|
—
|
|
(In thousands)
|
November 24,
2019 |
|
May 26,
2019 |
|
November 25,
2018 |
|
May 27,
2018 |
||||||||
Cash and cash equivalents
|
$
|
1,594
|
|
|
$
|
1,080
|
|
|
$
|
1,514
|
|
|
$
|
2,899
|
|
Restricted cash
|
385
|
|
|
385
|
|
|
325
|
|
|
325
|
|
||||
Cash, discontinued operations
|
—
|
|
|
—
|
|
|
—
|
|
|
(8
|
)
|
||||
Cash, cash equivalents and restricted cash
|
$
|
1,979
|
|
|
$
|
1,465
|
|
|
$
|
1,839
|
|
|
$
|
3,216
|
|
(In thousands)
|
November 24,
2019 |
|
May 26,
2019 |
||||
Raw materials
|
$
|
27,271
|
|
|
$
|
23,195
|
|
Work in progress
|
4,405
|
|
|
4,189
|
|
||
Finished goods
|
26,887
|
|
|
26,748
|
|
||
Total
|
$
|
58,563
|
|
|
$
|
54,132
|
|
|
At November 24,
2019 |
|
At May 26,
2019 |
Cost of debt
|
5.1% to 5.5%
|
|
5.1% to 5.5%
|
Market price of risk adjustment
|
14%
|
|
14%
|
EBITDA volatility
|
28%
|
|
28%
|
|
At November 24,
2019 |
|
At May 26,
2019 |
Revenue growth rates
|
6% to 7%
|
|
6%
|
Expense growth rates
|
5% to 7%
|
|
6%
|
Income tax rates
|
15%
|
|
15%
|
Discount rates
|
12%
|
|
12%
|
(In thousands)
|
Impact on value of
investment in Windset as of November 24, 2019 |
||
10% increase in revenue growth rates
|
$
|
5,400
|
|
10% increase in expense growth rates
|
$
|
(4,200
|
)
|
10% increase in income tax rates
|
$
|
(500
|
)
|
10% increase in discount rates
|
$
|
(3,600
|
)
|
(In thousands)
|
Fair Value at November 24, 2019
|
|
Fair Value at May 26, 2019
|
||||||||||||||||||||
Assets:
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||||||
Interest rate swap contracts
|
$
|
—
|
|
|
$
|
161
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
644
|
|
|
$
|
—
|
|
Investment in non-public company
|
—
|
|
|
—
|
|
|
61,300
|
|
|
—
|
|
|
—
|
|
|
61,100
|
|
||||||
Total assets
|
$
|
—
|
|
|
$
|
161
|
|
|
$
|
61,300
|
|
|
$
|
—
|
|
|
$
|
644
|
|
|
$
|
61,100
|
|
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Interest rate swap contracts
|
$
|
—
|
|
|
$
|
710
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
482
|
|
|
$
|
—
|
|
Contingent consideration liability
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
500
|
|
||||||
Total liabilities
|
$
|
—
|
|
|
$
|
710
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
482
|
|
|
$
|
500
|
|
(In thousands)
|
Windset Investment
|
|
Contingent
Consideration Liability |
||||
Balance as of May 26, 2019
|
$
|
61,100
|
|
|
$
|
500
|
|
Fair value change
|
200
|
|
|
(500
|
)
|
||
Balance as of November 24, 2019
|
$
|
61,300
|
|
|
$
|
—
|
|
(In thousands)
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
Curation Foods:
|
November 24,
2019 |
|
November 25,
2018 |
|
November 24,
2019 |
|
November 25,
2018 |
||||||||
Salads
|
$
|
48,156
|
|
|
$
|
41,950
|
|
|
$
|
99,417
|
|
|
$
|
91,030
|
|
Core vegetables
|
56,286
|
|
|
64,492
|
|
|
113,634
|
|
|
126,242
|
|
||||
Emerging brands
|
15,309
|
|
|
2,669
|
|
|
33,373
|
|
|
3,890
|
|
||||
Total
|
$
|
119,751
|
|
|
$
|
109,111
|
|
|
$
|
246,424
|
|
|
$
|
221,162
|
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
Lifecore:
|
November 24,
2019 |
|
November 25,
2018 |
|
November 24,
2019 |
|
November 25,
2018 |
||||||||
Aseptic
|
$
|
9,753
|
|
|
$
|
8,128
|
|
|
$
|
15,440
|
|
|
$
|
13,894
|
|
Fermentation
|
5,031
|
|
|
1,915
|
|
|
5,769
|
|
|
4,985
|
|
||||
Development services
|
8,058
|
|
|
5,403
|
|
|
13,674
|
|
|
9,184
|
|
||||
Total
|
$
|
22,842
|
|
|
$
|
15,446
|
|
|
$
|
34,883
|
|
|
$
|
28,063
|
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
(In thousands)
|
November 24, 2019
|
|
November 25, 2018
|
|
November 24, 2019
|
|
November 25, 2018
|
||||||||
Cost of sales
|
$
|
82
|
|
|
$
|
117
|
|
|
$
|
56
|
|
|
$
|
218
|
|
Research and development
|
48
|
|
|
30
|
|
|
78
|
|
|
55
|
|
||||
Selling, general and administrative
|
657
|
|
|
791
|
|
|
1,181
|
|
|
1,393
|
|
||||
Total stock-based compensation
|
$
|
787
|
|
|
$
|
938
|
|
|
$
|
1,315
|
|
|
$
|
1,666
|
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
(In thousands, except per share amounts)
|
November 24,
2019 |
|
November 25,
2018 |
|
November 24,
2019 |
|
November 25,
2018 |
||||||||
Numerator:
|
|
|
|
|
|
|
|
||||||||
Net loss applicable to Common Stockholders
|
$
|
(6,740
|
)
|
|
$
|
(584
|
)
|
|
$
|
(11,524
|
)
|
|
$
|
(395
|
)
|
Denominator:
|
|
|
|
|
|
|
|
||||||||
Weighted average shares for basic net loss per share
|
29,155
|
|
|
27,764
|
|
|
29,147
|
|
|
27,751
|
|
||||
Effect of dilutive securities:
|
|
|
|
|
|
|
|
||||||||
Stock options and restricted stock units
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Weighted average shares for diluted net loss per share
|
29,155
|
|
|
27,764
|
|
|
29,147
|
|
|
27,751
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Diluted net loss per share
|
$
|
(0.23
|
)
|
|
$
|
(0.02
|
)
|
|
$
|
(0.40
|
)
|
|
$
|
(0.01
|
)
|
(In thousands)
|
November 24, 2019
|
|
May 26, 2019
|
||||
Term loan
|
$
|
120,000
|
|
|
$
|
97,500
|
|
Total principal amount of long-term debt
|
120,000
|
|
|
97,500
|
|
||
Less: unamortized debt issuance costs
|
(807
|
)
|
|
(516
|
)
|
||
Total long-term debt, net of unamortized debt issuance costs
|
119,193
|
|
|
96,984
|
|
||
Less: current portion of long-term debt, net
|
(11,723
|
)
|
|
(9,791
|
)
|
||
Long-term debt, net
|
$
|
107,470
|
|
|
$
|
87,193
|
|
(In thousands, except term and discount rate)
|
Three Months Ended
|
|
Six Months Ended
|
||||
|
November 24, 2019
|
|
November 24, 2019
|
||||
Finance lease cost:
|
|
|
|
||||
Amortization of leased assets
|
$
|
29
|
|
|
$
|
57
|
|
Interest on lease liabilities
|
90
|
|
|
180
|
|
||
Operating lease cost
|
1,568
|
|
|
3,161
|
|
||
Variable lease cost and other
|
532
|
|
|
697
|
|
||
Total lease cost
|
$
|
2,219
|
|
|
$
|
4,095
|
|
|
|
|
|
||||
Weighted-average remaining lease term:
|
|
|
|
||||
Operating leases
|
|
|
13.11
|
|
|||
Finance leases
|
|
|
3.10
|
|
|||
Weighted-average discount rate:
|
|
|
|
||||
Operating leases
|
|
|
5.27
|
%
|
|||
Finance leases
|
|
|
9.99
|
%
|
(In thousands)
|
Operating Leases
|
|
Finance Leases
|
|
Total
|
||||||
Remainder of 2020
|
$
|
2,927
|
|
|
$
|
246
|
|
|
$
|
3,173
|
|
2021
|
4,795
|
|
|
455
|
|
|
5,250
|
|
|||
2022
|
4,283
|
|
|
466
|
|
|
4,749
|
|
|||
2023
|
3,612
|
|
|
3,497
|
|
|
7,109
|
|
|||
2024
|
2,946
|
|
|
9
|
|
|
2,955
|
|
|||
Thereafter
|
26,433
|
|
|
2
|
|
|
26,435
|
|
|||
Total lease payments
|
44,996
|
|
|
4,675
|
|
|
49,671
|
|
|||
Less: interest
|
(13,845
|
)
|
|
(1,051
|
)
|
|
(14,896
|
)
|
|||
Present value of lease liabilities
|
31,151
|
|
|
3,624
|
|
|
34,775
|
|
|||
Less: current obligation of lease liabilities
|
(3,859
|
)
|
|
(121
|
)
|
|
(3,980
|
)
|
|||
Total long-term lease liabilities
|
$
|
27,292
|
|
|
$
|
3,503
|
|
|
$
|
30,795
|
|
(In thousands)
|
Operating Leases
|
||
Fiscal year 2020
|
$
|
5,056
|
|
Fiscal year 2021
|
4,044
|
|
|
Fiscal year 2022
|
3,589
|
|
|
Fiscal year 2023
|
3,350
|
|
|
Fiscal year 2024
|
3,047
|
|
|
Thereafter
|
9,335
|
|
|
Total
|
$
|
28,421
|
|
(In thousands)
|
Capital Leases
|
||
Fiscal year 2020
|
$
|
486
|
|
Fiscal year 2021
|
489
|
|
|
Fiscal year 2022
|
460
|
|
|
Fiscal year 2023
|
3,490
|
|
|
Fiscal year 2024
|
—
|
|
|
Thereafter
|
—
|
|
|
Total minimum lease payment
|
4,925
|
|
|
Less: amounts representing interest and taxes
|
(1,291
|
)
|
|
Total
|
3,634
|
|
|
Less: current portion included in other accrued liabilities
|
(102
|
)
|
|
Long-term capital lease obligation
|
$
|
3,532
|
|
|
Six Months Ended
|
||
(In thousands)
|
November 24, 2019
|
||
Cash paid for amounts included in the measurement of lease liabilities:
|
|
||
Operating cash flows from operating leases
|
$
|
3,662
|
|
Operating cash flows from finance leases
|
180
|
|
|
Financing cash flows from finance leases
|
62
|
|
|
Lease liabilities arising from obtaining right-of-use assets:
|
|
||
Operating leases
|
$
|
2,226
|
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
(In millions)
|
November 24, 2019
|
|
November 25, 2018
|
|
November 24, 2019
|
|
November 25, 2018
|
||||||||
Canada
|
$
|
18.4
|
|
|
$
|
20.3
|
|
|
$
|
39.1
|
|
|
$
|
40.2
|
|
Belgium
|
3.1
|
|
|
0.5
|
|
|
3.1
|
|
|
2.5
|
|
||||
Ireland
|
1.1
|
|
|
1.2
|
|
|
2.5
|
|
|
2.3
|
|
||||
All Other Countries
|
2.0
|
|
|
1.2
|
|
|
3.4
|
|
|
2.0
|
|
(In thousands)
|
Curation Foods(1)
|
|
Lifecore
|
|
Other
|
|
Total
|
||||||||
Three Months Ended November 24, 2019
|
|
|
|
|
|
|
|
||||||||
Net sales
|
$
|
119,751
|
|
|
$
|
22,842
|
|
|
$
|
—
|
|
|
$
|
142,593
|
|
Gross profit
|
6,890
|
|
|
8,624
|
|
|
—
|
|
|
15,514
|
|
||||
Net (loss) income from continuing operations
|
(8,348
|
)
|
|
3,459
|
|
|
(1,851
|
)
|
|
(6,740
|
)
|
||||
Depreciation and amortization
|
3,143
|
|
|
1,248
|
|
|
23
|
|
|
4,414
|
|
||||
Dividend income
|
281
|
|
|
—
|
|
|
—
|
|
|
281
|
|
||||
Interest income
|
11
|
|
|
—
|
|
|
14
|
|
|
25
|
|
||||
Interest expense
|
1,375
|
|
|
—
|
|
|
794
|
|
|
2,169
|
|
||||
Income tax (benefit) expense
|
(1,723
|
)
|
|
919
|
|
|
(361
|
)
|
|
(1,165
|
)
|
||||
|
|
|
|
|
|
|
|
||||||||
Six Months Ended November 24, 2019
|
|
|
|
|
|
|
|
||||||||
Net sales
|
$
|
246,424
|
|
|
$
|
34,883
|
|
|
$
|
—
|
|
|
$
|
281,307
|
|
Gross profit
|
19,712
|
|
|
11,138
|
|
|
—
|
|
|
30,850
|
|
||||
Net (loss) income from continuing operations
|
(10,519
|
)
|
|
2,064
|
|
|
(3,069
|
)
|
|
(11,524
|
)
|
||||
Depreciation and amortization
|
6,348
|
|
|
2,433
|
|
|
46
|
|
|
8,827
|
|
||||
Dividend income
|
562
|
|
|
—
|
|
|
—
|
|
|
562
|
|
||||
Interest income
|
31
|
|
|
—
|
|
|
19
|
|
|
50
|
|
||||
Interest expense
|
2,751
|
|
|
—
|
|
|
1,493
|
|
|
4,244
|
|
||||
Income tax (benefit) expense
|
(2,309
|
)
|
|
454
|
|
|
(675
|
)
|
|
(2,530
|
)
|
||||
|
|
|
|
|
|
|
|
||||||||
Three Months Ended November 25, 2018(2)
|
|
|
|
|
|
|
|
|
|||||||
Net sales
|
$
|
109,111
|
|
|
$
|
15,446
|
|
|
$
|
—
|
|
|
$
|
124,557
|
|
Gross profit
|
11,207
|
|
|
5,678
|
|
|
—
|
|
|
16,885
|
|
||||
Net income (loss) from continuing operations
|
53
|
|
|
1,298
|
|
|
(1,464
|
)
|
|
(113
|
)
|
||||
Depreciation and amortization
|
2,194
|
|
|
978
|
|
|
141
|
|
|
3,313
|
|
||||
Dividend income
|
412
|
|
|
—
|
|
|
—
|
|
|
412
|
|
||||
Interest income
|
30
|
|
|
—
|
|
|
3
|
|
|
33
|
|
||||
Interest expense
|
276
|
|
|
—
|
|
|
470
|
|
|
746
|
|
||||
Income tax expense (benefit)
|
95
|
|
|
432
|
|
|
(105
|
)
|
|
422
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Six Months Ended November 25, 2018(2)
|
|
|
|
|
|
|
|
||||||||
Net sales
|
$
|
221,162
|
|
|
$
|
28,063
|
|
|
$
|
—
|
|
|
$
|
249,225
|
|
Gross profit
|
24,577
|
|
|
8,645
|
|
|
—
|
|
|
33,222
|
|
||||
Net income (loss) from continuing operations
|
1,965
|
|
|
751
|
|
|
(2,495
|
)
|
|
221
|
|
||||
Depreciation and amortization
|
4,234
|
|
|
1,954
|
|
|
270
|
|
|
6,458
|
|
||||
Dividend income
|
825
|
|
|
—
|
|
|
—
|
|
|
825
|
|
||||
Interest income
|
61
|
|
|
—
|
|
|
18
|
|
|
79
|
|
||||
Interest expense
|
863
|
|
|
—
|
|
|
641
|
|
|
1,504
|
|
||||
Income tax expense (benefit)
|
802
|
|
|
250
|
|
|
(520
|
)
|
|
532
|
|
(1)
|
During the third quarter of fiscal 2019, the Company started consolidating Yucatan Foods whose results are included in the Company's operating results starting from December 1, 2018. See Note 2 - Acquisition for more details of this transaction.
|
(2)
|
The Curation Foods' segment operating results for the three and six months ended November 25, 2018 have been restated to reflect the reclassification of the Now Planting brand to discontinued operations.
|
(In thousands)
|
November 24, 2019
|
|
May 26, 2019
|
||||
Other current liabilities, discontinued operations:
|
|
|
|
||||
Accounts payable
|
$
|
—
|
|
|
$
|
51
|
|
Accrued expenses and other current liabilities
|
—
|
|
|
14
|
|
||
Total other current liabilities, discontinued operations
|
$
|
—
|
|
|
$
|
65
|
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
(In thousands)
|
November 24, 2019
|
|
November 25, 2018
|
|
November 24, 2019
|
|
November 25, 2018
|
||||||||
Revenues
|
$
|
—
|
|
|
$
|
355
|
|
|
$
|
—
|
|
|
$
|
355
|
|
Cost of sales
|
—
|
|
|
(647
|
)
|
|
—
|
|
|
(647
|
)
|
||||
Research and development
|
—
|
|
|
(58
|
)
|
|
—
|
|
|
(100
|
)
|
||||
Selling, general and administrative
|
—
|
|
|
(266
|
)
|
|
—
|
|
|
(414
|
)
|
||||
Loss from discontinued operations, before taxes
|
—
|
|
|
(616
|
)
|
|
—
|
|
|
(806
|
)
|
||||
Income tax benefit
|
—
|
|
|
145
|
|
|
—
|
|
|
190
|
|
||||
Loss from discontinued operations, net of tax
|
$
|
—
|
|
|
$
|
(471
|
)
|
|
$
|
—
|
|
|
$
|
(616
|
)
|
(In thousands)
|
Three Months Ended
|
|
Change
|
|
Six Months Ended
|
|
Change
|
||||||||||||||||||||||
|
November 24, 2019
|
|
November 25, 2018
|
|
Amount
|
|
%
|
|
November 24, 2019
|
|
November 25, 2018
|
|
Amount
|
|
%
|
||||||||||||||
Curation Foods
|
$
|
119,751
|
|
|
$
|
109,111
|
|
|
$
|
10,640
|
|
|
10
|
%
|
|
$
|
246,424
|
|
|
$
|
221,162
|
|
|
$
|
25,262
|
|
|
11
|
%
|
Lifecore
|
22,842
|
|
|
15,446
|
|
|
7,396
|
|
|
48
|
%
|
|
34,883
|
|
|
28,063
|
|
|
6,820
|
|
|
24
|
%
|
||||||
Total Revenues
|
$
|
142,593
|
|
|
$
|
124,557
|
|
|
$
|
18,036
|
|
|
14
|
%
|
|
$
|
281,307
|
|
|
$
|
249,225
|
|
|
$
|
32,082
|
|
|
13
|
%
|
(In thousands)
|
Three Months Ended
|
|
Change
|
|
Six Months Ended
|
|
Change
|
||||||||||||||||||||||
|
November 24, 2019
|
|
November 25, 2018
|
|
Amount
|
|
%
|
|
November 24, 2019
|
|
November 25, 2018
|
|
Amount
|
|
%
|
||||||||||||||
Curation Foods
|
$
|
6,890
|
|
|
$
|
11,207
|
|
|
$
|
(4,317
|
)
|
|
(39
|
)%
|
|
$
|
19,712
|
|
|
$
|
24,577
|
|
|
$
|
(4,865
|
)
|
|
(20
|
)%
|
Lifecore
|
8,624
|
|
|
5,678
|
|
|
2,946
|
|
|
52
|
%
|
|
11,138
|
|
|
8,645
|
|
|
2,493
|
|
|
29
|
%
|
||||||
Total Gross Profit
|
$
|
15,514
|
|
|
$
|
16,885
|
|
|
$
|
(1,371
|
)
|
|
(8
|
)%
|
|
$
|
30,850
|
|
|
$
|
33,222
|
|
|
$
|
(2,372
|
)
|
|
(7
|
)%
|
(In thousands)
|
Three Months Ended
|
|
Change
|
|
Six Months Ended
|
|
Change
|
||||||||||||||||||||||
|
November 24, 2019
|
|
November 25, 2018
|
|
Amount
|
|
%
|
|
November 24, 2019
|
|
November 25, 2018
|
|
Amount
|
|
%
|
||||||||||||||
Curation Foods
|
$
|
1,485
|
|
|
$
|
1,117
|
|
|
$
|
368
|
|
|
33
|
%
|
|
$
|
2,809
|
|
|
$
|
2,432
|
|
|
$
|
377
|
|
|
16
|
%
|
Lifecore
|
1,337
|
|
|
1,225
|
|
|
112
|
|
|
9
|
%
|
|
2,788
|
|
|
2,430
|
|
|
358
|
|
|
15
|
%
|
||||||
Other
|
—
|
|
|
133
|
|
|
(133
|
)
|
|
(100
|
)%
|
|
46
|
|
|
404
|
|
|
(358
|
)
|
|
(89
|
)%
|
||||||
Total R&D
|
$
|
2,822
|
|
|
$
|
2,475
|
|
|
$
|
347
|
|
|
14
|
%
|
|
$
|
5,643
|
|
|
$
|
5,266
|
|
|
$
|
377
|
|
|
7
|
%
|
(In thousands)
|
Three Months Ended
|
|
Change
|
|
Six Months Ended
|
|
Change
|
||||||||||||||||||||||
|
November 24, 2019
|
|
November 25, 2018
|
|
Amount
|
|
%
|
|
November 24, 2019
|
|
November 25, 2018
|
|
Amount
|
|
%
|
||||||||||||||
Curation Foods
|
$
|
13,179
|
|
|
$
|
9,292
|
|
|
$
|
3,887
|
|
|
42
|
%
|
|
$
|
24,663
|
|
|
$
|
18,201
|
|
|
$
|
6,462
|
|
|
36
|
%
|
Lifecore
|
1,950
|
|
|
1,647
|
|
|
303
|
|
|
18
|
%
|
|
3,897
|
|
|
3,245
|
|
|
652
|
|
|
20
|
%
|
||||||
Other
|
3,599
|
|
|
3,461
|
|
|
138
|
|
|
4
|
%
|
|
7,063
|
|
|
6,757
|
|
|
306
|
|
|
5
|
%
|
||||||
Total SG&A
|
$
|
18,728
|
|
|
$
|
14,400
|
|
|
$
|
4,328
|
|
|
30
|
%
|
|
$
|
35,623
|
|
|
$
|
28,203
|
|
|
$
|
7,420
|
|
|
26
|
%
|
(In thousands)
|
Three Months Ended
|
|
Change
|
|
Six Months Ended
|
|
Change
|
||||||||||||||||||||||
|
November 24, 2019
|
|
November 25, 2018
|
|
Amount
|
|
%
|
|
November 24, 2019
|
|
November 25, 2018
|
|
Amount
|
|
%
|
||||||||||||||
Dividend Income
|
$
|
281
|
|
|
$
|
412
|
|
|
$
|
(131
|
)
|
|
(32
|
)%
|
|
$
|
562
|
|
|
$
|
825
|
|
|
$
|
(263
|
)
|
|
(32
|
)%
|
Interest Income
|
$
|
25
|
|
|
$
|
33
|
|
|
$
|
(8
|
)
|
|
(24
|
)%
|
|
$
|
50
|
|
|
$
|
79
|
|
|
$
|
(29
|
)
|
|
(37
|
)%
|
Interest Expense
|
$
|
(2,169
|
)
|
|
$
|
(746
|
)
|
|
$
|
(1,423
|
)
|
|
191
|
%
|
|
$
|
(4,244
|
)
|
|
$
|
(1,504
|
)
|
|
$
|
(2,740
|
)
|
|
182
|
%
|
Other Income
|
$
|
200
|
|
|
$
|
600
|
|
|
$
|
(400
|
)
|
|
(67
|
)%
|
|
$
|
200
|
|
|
$
|
1,600
|
|
|
$
|
(1,400
|
)
|
|
(88
|
)%
|
Other Expense
|
$
|
(206
|
)
|
|
$
|
—
|
|
|
$
|
(206
|
)
|
|
100
|
%
|
|
$
|
(206
|
)
|
|
$
|
—
|
|
|
$
|
(206
|
)
|
|
100
|
%
|
Income Tax Benefit (Expense)
|
$
|
1,165
|
|
|
$
|
(422
|
)
|
|
$
|
1,587
|
|
|
N/M
|
|
|
$
|
2,530
|
|
|
$
|
(532
|
)
|
|
$
|
3,062
|
|
|
N/M
|
|
|
LANDEC CORPORATION
|
||
|
|
|
|
|
By:
|
/s/ Gregory S. Skinner
|
|
|
|
Gregory S. Skinner
|
|
|
|
Executive Vice President of Finance and Administration and Chief Financial Officer
|
|
|
|
(Principal Financial and Accounting Officer)
|
1 Year Landec Chart |
1 Month Landec Chart |
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