Landec Corp. (NASDAQ:LNDC) Q4 2020 Earnings Conference Call - Final Transcript

Aug 11, 2020 • 05:00 pm ET

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Landec Corp. (NASDAQ:LNDC) Q4 2020 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Good afternoon and thank you for joining Landec's Fiscal 2020 Fourth Quarter Earnings Call. With me on the call today is Dr. Albert Bolles, Landec's Chief Executive Officer and Brian McLaughlin, Landec's Chief Financial Officer and Jim Hall, President of Lifecore who is available to answer questions.

During today's call, we may make forward-looking statements that involve certain risks and uncertainties that could cause actual results to differ materially. These risks are outlined in our filings with the Securities and Exchange Commission including the Company's 10-K for fiscal year 2019.

Let me turn the call over to Al Bolles.

Executive
Albert Bolles

Thank you and good afternoon everyone. As a leading innovator in diversified health and wellness solutions, Landec is comprised of two operating businesses, Lifecore Biomedical and Curation Foods. Landec designs, develops, manufactures and sells products for the food and pharmaceutical industry. Lifecore Biomedical is a fully integrated contract development and manufacturing organization, or CDMO, that offers highly differentiated capabilities in the development, fill and finish of difficult to manufacture pharmaceutical products distributed in syringes and vials. As a leading manufacturer of premium injectable grade Hyaluronic Acid, or HA, Lifecore brings over 35 years of expertise as a partner for global and emerging pharmaceutical and medical device companies across multiple therapeutic categories to bring their innovations to market.

Curation Foods, our natural foods business, is focused on innovating 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 network of growers, refrigerated supply chain and patented BreatheWay packaging technology, which naturally extends the shelf life of fruit and vegetables. Curation Food brands include Eat Smart fresh packaged vegetables and salads, O premium artisan oil and vinegar products, and Yucatan and Cabo Fresh avocado products.

We are focused on creating shareholder value by delivering against our financial targets, strengthening our balance sheet, investing in growth, implementing our strategic priorities to improve adjusted EBITDA margins at Curation Foods and driving top line momentum at Lifecore.

We have set clear priorities and defined return on the investment metrics to support the future growth at both Lifecore and Curation Foods. We are committed to maximizing the value of our portfolio through sound and thoughtful execution in each of our segments while protecting the planet for future generations with the sustainable business practices.

Lifecore continued to deliver on its track record of high margin revenue growth and we realized immense benefits from the stability of our Lifecore business in fiscal 2020. However, fiscal 2020 proved to be a transformational year for our Curation Foods organization which faced several significant challenges to turn around its business. This presented several opportunities for us to pull together as a team to identify solutions. It is these solutions that provide the foundation by which we will grow from in fiscal '21.

With the announcement of becoming Landec's President and CEO on May 28, 2019, I shared my commitment to drive profitability by transforming Curation Foods