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Landec Corp. Reports Operating Results (10-Q)

January 05, 2012 | About:
Joe Ponzio

10qk

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Landec Corp. (LNDC) filed Quarterly Report for the period ended 2011-11-27.

Landec Corp. has a market cap of $145.1 million; its shares were traded at around $5.6 with a P/E ratio of 17.5 and P/S ratio of 0.6. Landec Corp. had an annual average earning growth of 7.4% over the past 5 years.
This is the annual revenues and earnings per share of LNDC over the last 10 years. For detailed 10-year financial data and charts, go to 10-Year Financials of LNDC.


Highlight of Business Operations:

Apio s export business is a buy/sell business that realizes a gross margin in the 5-8% range. The increase in gross profit for Apio s export business during the three months ended November 27, 2011 compared to the same period last year was due to the 23% increase in revenues. The 47% increase in gross profit was higher than the growth in revenues because of favorable product mix changes to higher margin products which resulted in a higher gross margin during the three months ended November 27, 2011 of 7.4% compared to a gross margin of 6.3% for the same period last year. The increase in gross profit for Apio s export business during the six months ended November 27, 2011 compared to the same period last year was primarily due to the 26% increase in revenues.

Apio s export business is a buy/sell business that realizes a gross margin in the 5-8% range. The increase in gross profit for Apio s export business during the three months ended November 27, 2011 compared to the same period last year was due to the 23% increase in revenues. The 47% increase in gross profit was higher than the growth in revenues because of favorable product mix changes to higher margin products which resulted in a higher gross margin during the three months ended November 27, 2011 of 7.4% compared to a gross margin of 6.3% for the same period last year.

Landec used $741,000 of cash from operating activities during the six months ended November 27, 2011 compared to generating $2.1 million from operating activities for the six months ended November 28, 2010. The primary sources of cash from operating activities during the six months ended November 27, 2011 were from generating $5.4 million of net income and $2.7 million of amortization and depreciation. The sources of cash from operations were offset by the $1.2 million non-cash change in the fair value of our investment in Windset and a net increase of $7.9 million in working capital, excluding the decrease in income taxes receivable, which is offset by the tax benefit from stock-based compensation. The primary changes in working capital during the six months ended November 27, 2011 which increased working capital were (a) a $7.3 million increase in accounts receivable primarily due to a $3.4 million increase in receivables at Apio as a result of increased export sales during the month of November, and an increase in accounts receivable at Lifecore of $4.7 million due to the timing of shipments during the quarter of which over half occurred in November, (b) a net increase of $1.3 million in advances for crops by Apio and (c) a $2.3 million decrease in deferred revenue associated with the Monsanto Agreement during the first six months of fiscal year 2012. These increases in working capital were partially offset by a $2.1 million increase in accounts payable resulting from the timing of payments.

Landec used $741,000 of cash from operating activities during the six months ended November 27, 2011 compared to generating $2.1 million from operating activities for the six months ended November 28, 2010. The primary sources of cash from operating activities during the six months ended November 27, 2011 were from generating $5.4 million of net income and $2.7 million of amortization and depreciation. The sources of cash from operations were offset by the $1.2 million non-cash change in the fair value of our investment in Windset and a net increase of $7.9 million in working capital, excluding the decrease in income taxes receivable, which is offset by the tax benefit from stock-based compensation. The primary changes in working capital during the six months ended November 27, 2011 which increased working capital were (a) a $7.3 million increase in accounts receivable primarily due to a $3.4 million increase in receivables at Apio as a result of increased export sales during the month of November, and an increase in accounts receivable at Lifecore of $4.7 million due to the timing of shipments during the quarter of which over half occurred in November, (b) a net increase of $1.3 million in advances for crops by Apio and (c) a $2.3 million decrease in deferred revenue associated with the Monsanto Agreement during the first six months of fiscal year 2012. These increases in working capital were partially offset by a $2.1 million increase in accounts payable resulting from the timing of payments.

Landec used $741,000 of cash from operating activities during the six months ended November 27, 2011 compared to generating $2.1 million from operating activities for the six months ended November 28, 2010. The primary sources of cash from operating activities during the six months ended November 27, 2011 were from generating $5.4 million of net income and $2.7 million of amortization and depreciation. The sources of cash from operations were offset by the $1.2 million non-cash change in the fair value of our investment in Windset and a net increase of $7.9 million in working capital, excluding the decrease in income taxes receivable, which is offset by the tax benefit from stock-based compensation. The primary changes in working capital during the six months ended November 27, 2011 which increased working capital were (a) a $7.3 million increase in accounts receivable primarily due to a $3.4 million increase in receivables at Apio as a result of increased export sales during the month of November, and an increase in accounts receivable at Lifecore of $4.7 million due to the timing of shipments during the quarter of which over half occurred in November, (b) a net increase of $1.3 million in advances for crops by Apio and (c) a $2.3 million decrease in deferred revenue associated with the Monsanto Agreement during the first six months of fiscal year 2012. These increases in working capital were partially offset by a $2.1 million increase in accounts payable resulting from the timing of payments.

Read the The complete Report

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