Lifecore Biomedical Q3 Misses Street Estimates, Explores 'Strategic Alternatives'

Lifecore Biomedical Inc LFCR reported a Q3 FY23 revenue decline of 26% Y/Y to $27.60 million, missing the consensus of $28 million. 

• Segment revenues fell 24% Y/Y to $26.3 million due to a decline in its CDMO business and Hyaluronic Acid raw material manufacturing (fermentation) business. 
• Curation Foods segment revenues also declined 51% Y/Y to $1.27 million.
• Gross profit was down 53.5% Y/Y to $6 million. 
• Adjusted EBITDA declined 78% Y/Y to $1.45 million.
• Adjusted EPS loss of $0.22, vs $0.06 a year ago, worse than the consensus loss of $0.13. 
• Cash used in operations stood at $17.2 million vs $22 million a year ago.
• Cash and cash equivalents of $3 million at the end of the quarter.
• Lifecore recently executed an enhanced Supply Agreement with a significant, long-term customer, Alcon, as well as completing a comprehensive restructuring of its debt arrangements.
• These transactions allow Lifecore to clear the existing Going Concern qualification and create a more stable and sustainable business model.
• "In combination with the sale of our remaining Curation Foods segment business in early April, Lifecore is beginning a new chapter as a stand-alone CDMO," CEO James Hall says.
• The company is currently evaluating "strategic alternatives" to maximize stockholder value, he added.

Price Action: LFCR shares are trading lower by 2.32% at $8.00 premarket on the last check Thursday.