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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Q & A
Analyst
Brian Holland

held consistent through July? And then when you refer to mix stabilizing, I just want to clarify is that in comparison to pre-COVID or maybe a new normal for the backdrop?

Executive
Albert Bolles

Right. I think what you're talking about is, in Q4, we had a fall off in some customers.

Analyst
Brian Holland

That's right.

Executive
Albert Bolles

Mainly our Mass Club. That has come back and it's back now to a runway of where we were with pre-COVID issues. So we are feeling good about our weekly, monthly sales now that we're achieving and as the mix adjusted. Now that being said, the bean business is still down because of food service and trays have not recovered to the point where they were pre-COVID. But some of our higher margin businesses have indeed recovered.

Analyst
Brian Holland

And then if we just roll that forward, thinking about your guidance, do we assume that things continue to get better from here or did you take kind of where we were at year-end and held that through in your outlook? How do we shape that?

Executive
Albert Bolles

Well, we have built in some conservatism based on COVID-19 and the possibility of another impact in the fall. So we've built that into our guidance along with the fact that with the improvement in profitability of the core veg business we now feel like that we have in place the ability to manage the volatility quarter-to-quarter that we could see in that business based on weather. So I would say that we feel very confident about the plan that we have in terms of our revenues and our adjusted EBITDA with the built-in effects of any headwinds that may hit us last year or this year.

Analyst
Brian Holland

Okay. And you answered my other question with that. So I'll leave it there. Thanks. Best of luck gentlemen.

Executive
Albert Bolles

Thank you.

Operator
Operator

Our next question is from Gerry Sweeney with ROTH Capital Partners. Please proceed.

Executive
Albert Bolles

How is it going?

Analyst
Gerry Sweeney

Hey. Good afternoon, Al. Hey, Al. Hey, Brian.

Executive
Albert Bolles

Hi, Gerry.

Analyst
Gerry Sweeney

How are you guys doing?

Executive
Albert Bolles

Good.

Analyst
Gerry Sweeney

Appreciate I get the time here. Listen, Curation, the bag and the core business, how challenging of a decision was it at the end of the day to keep it versus other options? And that's sort of delays point, were there other options in terms of buyers for the business?

Executive
Albert Bolles

Yes. I mean, as you know, Gerry, we talked about we're going to run two pathways on this.

Analyst
Gerry Sweeney

Yeah.

Executive
Albert Bolles

Which we did and we were excited about selling, and I was certainly, but in all honesty as we went through our process of improving our margins, simplifying the business, the cost out that was overachieved last year, it made it a pretty easy discussion with my Board that it was best for the shareholders that we keep a smaller, more profitable business. And it would really help us in terms of, as I said before, our logistic efficiencies, overhead absorptions things of that nature.

So ran both processes. And at the end of the day,