Page 1

LANDEC Diversified Health and Wellness Solutions Landec Corporation Reports Third Quarter and First Nine Months Fiscal 2021 Results April 7 , 2021 • Lifecore Biomedical Generates Year - to - date Revenue Growth of 20 % , Net Income Growth of 39 % , and Adjusted EBITDA Growth of 34 % • Reiterates Fiscal 2021 Lifecore Biomedical Guidance • Revises Curation Foods Fiscal 2021 Guidance to Reflect COVID - 19 Headwinds SANTA MARIA , Calif . , April 07 , 2021 ( GLOBE NEWSWIRE ) -- Landec Corporation ( Nasdaq : LNDC ) , a diversified health and wellness company with two operating businesses , Lifecore Biomedical , Inc. and Curation Foods , Inc. , reported results for the fiscal 2021 third quarter and year - to - date period ended February 28 , 2021. Looking forward , Landec's strategy to create shareholder value is to deliver against its long - term targets , strengthen its balance sheet , drive top - line growth at Lifecore , and selectively invest in innovation and growth while implementing strategic priorities to improve operating margins at Curation Foods . CEO COMMENTS : Dr. Albert Bolles , Landec's President and CEO stated , “ Lifecore produced another strong quarterly performance which helped propel year - to - date segment revenue growth of 20 % and adjusted EBITDA growth of 34 % for the fiscal nine - month period ended February 28 , 2021. We believe that the business is extremely well positioned to benefit from several strong industry trends which include the rise in drug development , a need for capable partners to outsource complex development and manufacturing projects , and growing demand for vial and syringe capacity . Taken together , we believe that Lifecore is prepared to utilize its highly specialized CDMO capabilities and is uniquely positioned to provide solutions to complex manufacturing needs and benefit from an expected acceleration in new drug application approvals in the coming years . Lifecore remains on - track to meet its guidance for the year and we continue to support the team's efforts to invest for sustainable long - term double - digit growth . " Dr. Bolles continued , " At Curation Foods , our turnaround efforts continue to progress , but we were met with several new challenges in our third quarter that temporarily stalled our momentum . Although we realized year - over - year improvement in the segment's gross margin , this performance came in below our plan due to COVID - 19 - related variables that weighed on results . Our team is working diligently and creatively to navigate this fluid environment and we remain confident that the steady - state gross margin targets of 11 % - 14 % that we laid out for the end of fiscal 2021 are still within reach . We still have much to accomplish and recognize that Lifecore and by extension Landec is an undervalued asset , and we are working with focus to transform Curation Foods . We have made many accomplishments as seen by our year - to - date performance and will continue to utilize the framework within Project SWIFT to improve shareholder value . " FISCAL THIRD QUARTER 2021 BUSINESS HIGHLIGHTS : • Revenues of $ 137.8 million , a planned decrease of 9.9 % year - over - year • Gross profit of $ 19.7 million , an decrease of 1.8 % year - over - year • Net loss of $ 5.5 million , which includes $ 2.9 million of restructuring and other non - recurring charges such as legal expenses net of tax • Diluted net loss per share of $ 0.19 ; adjusted diluted net loss per share of $ 0.09 , which excludes $ 0.10 per share of restructuring and other non - recurring charges net of tax • Adjusted EBITDA of $ 7.6 million , compared to $ 6.8 million in the prior year period • Lifecore segment adjusted EBITDA of $ 8.1 million , compared to $ 7.6 million in the prior year period • Curation Foods segment adjusted EBITDA of $ 0.3 million , compared to a loss of $ 0.1 million in the prior year period FIRST NINE MONTHS FISCAL 2021 BUSINESS HIGHLIGHTS : • Revenues of $ 404.3 million , a planned decrease of 6.9 % year - over - year • Gross profit of $ 56.7 million , an increase of 11.3 % year - over - year • Net loss of $ 29.8 million , which includes $ 15.8 million of restructuring and other non - recurring charges such as expenses incurred by consolidating and optimizing operations associated with Project SWIFT , as well as a Windset non - cash fair market value adjustment of $ 9.5 million , both net of tax • Diluted net loss per share of $ 1.02 ; adjusted diluted net loss per share of $ 0.15 , which excludes $ 0.54 per share of restructuring and other non - recurring charges , as well as a $ 0.32 per share negative Windset fair market value adjustment , both net of tax • Adjusted EBITDA of $ 19.3 million , compared to $ 7.9 million in the prior year period • Lifecore segment adjusted EBITDA of $ 16.8 million , compared to $ 12.6 million in the prior year period • Curation Foods segment adjusted EBITDA of $ 5.1 million , compared to a loss of $ 2.9 million in the prior year period • Cash flow provided by operations was $ 10.6 million , an improvement of $ 14.9 million year - over - year