Page 1

LANDEC Diversified Health and Wellness Solutions Landec Corporation Reports First Quarter Fiscal Year 2022 Results September 29 , 2021 • Quarterly net loss of $ 9.5 million , EBITDA of $ 1.1 million , and Adjusted EBITDA of $ 4.4 million • Reiterates Fiscal Year 2022 Guidance SANTA MARIA , Calif . , Sept. 29 , 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 2022 first quarter ended August 29 , 2021 . Looking forward , Landec's strategy to continue to create shareholder value is to seek 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 : " We had a strong start to fiscal 2022 with a first quarter performance that was highlighted by a 7 % increase in consolidated gross profit and a 42 % increase in adjusted EBITDA , both of which were achieved despite the planned reduction in total revenue generated by our Curation Foods segment related to our continued strategic contraction of that business during the quarter and fiscal 2021 , " stated Dr. Albert Bolles , Landec's President and CEO . " I'm pleased with our ability to drive adjusted EBITDA growth at both of our operating segments in our fiscal first quarter . Improvement at Lifecore was primarily driven by an advantageous product mix while Curation Foods demonstrated the anticipated improved gross margin that we've been working towards as a result of Project SWIFT . While inflationary pressures and supply chain challenges continue to impact the food industry , the operational improvements we've made in the Curation business continue to help us mitigate their effects and we are reiterating our full year fiscal 2022 guidance . " FISCAL FIRST QUARTER 2022 BUSINESS HIGHLIGHTS : • Revenues of $ 128.8 million , a planned decrease of 5.1 % year - over - year • Gross profit of $ 17.5 million , an increase of 7.2 % year - over - year • Net loss of $ 9.5 million , which includes $ 2.7 million of restructuring and other non - recurring charges such as legal expenses , net of tax • Diluted net loss per share of $ 0.32 ; adjusted diluted net loss per share of $ 0.23 , which excludes $ 0.09 per share of restructuring and other non - recurring charges , net of tax • Adjusted EBITDA of $ 4.4 million , compared to $ 3.1 million in the prior year period • Lifecore segment adjusted EBITDA of $ 2.3 million , compared to $ 1.5 million in the prior year period • Curation Foods segment adjusted EBITDA of $ 3.0 million , compared to $ 2.4 million in the prior year period FISCAL FIRST QUARTER 2022 RESULTS : Fiscal first quarter 2022 results compared to fiscal first quarter 2021 are as follows : ( Unaudited and in thousands , except per - share data ) Revenues Gross profit Net loss Adjusted net income ( loss ) * Diluted net loss per share Adjusted diluted net income ( loss ) per share * EBITDA * Three Months Ended $ August 29 , 2021 128,788 17,519 ( 9,477 ) ( 6,732 ) ( 0.32 ) ( 0.23 ) 1,065 4,422 $ August 30 , 2020 $ Change Amount 135,643 $ ( 6,855 ) 16,347 1,172 ( 11,000 ) 1,523 ( 3,199 ) ( 3,533 ) ( 0.38 ) 0.06 ( 0.11 ) ( 7,460 ) 3,110 $ ( 0.12 ) 8,525 1,312 Adjusted EBITDA * $ * See " Non - GAAP Financial Information " at the end of this release for more information and for a reconciliation of certain financial information . % ( 5 ) % 7 % 14 % ( 110 ) % 16 % ( 109 ) % N / M 42 % Revenues decreased $ 6.9 million , or 5.1 % , year - over - year , which was primarily a result of a 6.2 % decrease in Curation Foods segment revenues , partially offset by a 0.7 % increase in Lifecore segment revenues , each as described below . Gross profit increased $ 1.2 million , or 7.2 % , year - over - year , and gross profit margin increased approximately 160 basis points to 13.6 % compared to 12.1 % in the prior year period . Net loss decreased $ 1.5 million to a loss of $ 9.5 million for fiscal first quarter , which includes $ 2.7 million of restructuring and non - recurring charges , net of taxes , related to consolidating and optimizing operations associated with Project SWIFT . This compares to a net loss of $ 11.0 million in the prior year period , which includes $ 7.8 million of restructuring and non - recurring charges , net of tax , related to consolidating and optimizing operations associated with Project SWIFT . Excluding these restructuring and non - recurring charges , adjusted net loss was $ 6.7 million for the fiscal first quarter , compared to adjusted net loss of $ 3.2 million in the prior year period , representing a decrease of $ 3.5 million .