 Provides Fiscal 2021 OutlookSANTA MARIA, Calif., Aug. 11, 2020 GLOBE NEWSWIRE -- Landec Corporation Nasdaq: LNDC, a diversified health and wellness company with two operating businesses, Curation Foods, Inc. and Lifecore Biomedical, Inc., reported results for the fiscal 2020 fourth quarter and full year ended May 31, 2020. The Company previously announced its preliminary fiscal 2020 fourth quarter revenue and other select financial metrics on June 29, 2020. Looking forward, Landec intends to create further stockholder value by delivering against its long-term financial targets, strengthening its balance sheet, selectively investing in innovation and growth, and implementing strategic priorities to improve operating margins at Curation Foods and driving topline growth at Lifecore. FISCAL FOURTH QUARTER 2020 BUSINESS HIGHLIGHTS: Revenues of 156.1 million, an increase of 2.2 year over year Gross profit of 24.1 million, a decrease of 8.1 year over year Net loss of 15.1 million, which includes 6.8 million of restructuring and other non-recurring charges, net of tax and 9.6 million of impairment of goodwill and intangibles charges, net of tax. Diluted net loss per share of 0.52; adjusted diluted net income per share of 0.05, which excludes 0.23 per share of restructuring and other non-recurring charges, net of tax and 0.34 per share of impairment of goodwill and intangibles charges, net of tax. Adjusted EBITDA was 14.1 million, which excludes 9.2 million of restructuring and other non-recurring charges and 13.0 million of impairment of goodwill and intangibles charges. Sale of Curation Foods non-strategic manufacturing asset in Ontario, California for 4.8 million Decision to retain Curation Foods legacy core vegetable bag and tray businessFISCAL YEAR 2020 BUSINESS HIGHLIGHTS: Revenues of 590.4 million, an increase of 5.9 year over year Gross profit of 75.0 million, a decrease of 7.4 year over year Net loss of 38.2 million, which includes 21.1 million of restructuring and other non-recurring charges, net of tax and 9.6 million of impairment of goodwill and intangibles charges, net of tax. Diluted net loss per share of 1.31; adjusted diluted net loss per share of 0.26, which excludes 0.72 per share of restructuring and other non-recurring charges and 0.33 per share of impairment of goodwill and intangibles charges, net of tax. Adjusted EBITDA was 22.0 million, which excludes 28.3 million of restructuring and other non-recurring charges and 13.0 million of impairment of goodwill and intangibles charges. Introduced full-year fiscal 2021 guidanceCEO COMMENTS: Our organization worked tirelessly in fiscal 2020 to support the acceleration of growth at Lifecore and to stabilize operations at Curation Foods. Lifecore delivered high-margin revenue growth during fiscal 2020, resulting from its attractive competitive position as a fully integrated contract development and manufacturing organization CDMO. We believe Lifecore is poised to continue on its growth trajectory based on industry trends, customer demand and its robust business development pipeline, said Dr. Albert Bolles, Landecs President and CEO. As we transition to fiscal 2021, our Curation Foods business has the benefit of a much more efficient organization that was the result of our decisive actions that have been implemented to date as part of Project SWIFT. Despite the negative effects from the COVID-19 pandemic at Curation Foods during the fiscal fourth quarter, we were still able to generate a significant improvement in Curation Foods profitability in the second half of fiscal 2020. In fiscal 2021, we will be further leveraging the benefits we have derived to date from Project SWIFT, as well as implementing measures that build on and advance Curation Foods momentum in delivering more consistent operating performance. In addition, we believe we have a plan in place to strategically grow Curation Foods existing business lines through consumer insight driven innovation. In fiscal 2021, with Lifecore positioned to resume steady adjusted EBITDA growth, with Curation Foods adjusted EBITDA expected to increase significantly, and with both operations supported by disciplined capital management, we are executing our plan to build a sustainable profitable future for our employees and our shareholders.FOURTH QUARTER 2020 RESULTS: Fiscal fourth quarter 2020 results compared to fiscal fourth quarter 2019 are as follows:Unaudited and in thousands, except per-share data Three Months Ended Change May 31, 2020 May 26, 2019 Amount Revenues 156,131 152,780 3,351 2 Gross profit 24,091 26,212 2,121 8 Net loss income from continuing operations 15,149 367 15,516 NM Diluted net loss income per share 0.52 0.01 0.53 NM Adjusted diluted net income per share 0.05 0.07 0.03 38 EBITDA 8,019 7,616 15,635 205 Adjusted EBITDA 14,120 11,844 2,276 19 See Non-GAAP Financial Information at the end of this release for more information and for a reconciliation of certain financial information.Revenues increased 3.4 million, or 2.2, year over year, which was primarily a result of a 5.8 increase in revenues in the Lifecore segment and a 1.5 increase in the Curation Foods segment. Lifecores performance was primarily driven by a 13 increase in its CDMO business, partially offset by a 23 decrease in its fermentation business. Curation Foods performance was primarily driven by a 19 increase in its avocado products business and a 13 increase in its technology business, partially offset by a 1 decrease in its fresh packaged salads and vegetables business.Gross profit decreased 2.1 million, or 8.1, year over year. Gross profit margin decreased 170 basis points to 15.4 compared to the prior year period. Consolidated gross margin was primarily driven by disruptions related to the COVID-19 pandemic at both of its operating segments. Curation Foods experienced a 10.2 decrease in gross profit due to significant shifts in customer demand toward some of its lower margin product categories and irregular customer order volatility which resulted in order cancellations that caused supply chain inefficiencies and increased costs from other operational disruptions. Lifecore experienced a 5.4 decrease in gross profit due to temporary manufacturing inefficiencies, which have since been resolved, associated with the new safety protocols that were implemented.Net loss was 15.1 million for fiscal fourth quarter, which includes 6.8 million of restructuring and non-recurring charges, net of taxes and 9.6 million impairment of goodwill and intangibles, net of tax, compared to net income of 0.4 million in the prior year comparable period, a decrease of 15.5 million.Adjusted EBITDA increased 2.3 million, or 19.2, year over year, to 14.1 million for fiscal fourth quarter which excludes restructuring and other non-recurring charges and impairment of goodwill and intangibles. This compares to 11.8 million of adjusted EBITDA in the prior year comparable period.SEGMENT RESULTS:Unaudited and in thousands Three Months Ended Change Twelve Months Ended Change May 31, 2020 May 26, 2019 Amount May 31, 2020 May 26, 2019 Amount Revenues: Curation Foods 130,627 128,672 1,955 2 504,533 481,686 22,847 5 Lifecore 25,504 24,108 1,396 6 85,833 75,873 9,960 13 Total Revenues 156,131 152,780 3,351 2 590,366 557,559 32,807 6 Gross Profit: Curation Foods 13,231 14,735 1,504 10 42,105 49,305 7,200 15 Lifecore 10,860 11,477 617 5 32,883 31,698 1,185 4 Total Gross Profit 24,091 26,212 2,121 8 74,988 81,003 6,015 7 Net Loss Income from Continuing Operations: Curation Foods 15,935 1,845 14,090 NM 39,089 6,229 32,860 NM Lifecore 4,775 5,484 709 13 11,748 12,070 322 3 Corporate 3,989 3,272 717 22 10,850 3,719 7,131 NM Total Net Loss Income from Continuing Operations 15,149 367 15,516 NM 38,191 2,122 40,313 NM EBITDA, excluding Windset FMV change, and restructuring Curation Foods 12,446 987 13,433 NM 29,209 4,168 33,377 NM Lifecore 7,504 8,469 965 11 20,103 20,233 130 1 Corporate 3,077 1,840 1,237 67 10,157 2,045 8,112 NM Total EBITDA excluding Windset FMV change 8,019 7,616 15,635 NM 19,263 22,356 41,619 NM Lifecore Biomedical Business Update: CDMO partner Heron Therapeutics ZYNRELEFTM formerly known as HTX-011 Candidate Received Positive Opinion from European Medicines AgencyLifecore is the Companys CDMO business focused on product development and manufacturing of sterile injectable products. Lifecore continues to expand its presence in the CDMO marketplace by finding additional opportunities to partner with biopharmaceutical and medical device companies.On July 24, 2020, Heron Therapeutics Heron announced that it received a positive opinion from the European Medicines Agencys EMA Committee for Medicinal Product for Human Use CHMP, which adopted a positive opinion and a recommendation for the granting of a marketing authorization for treatment of post-operative pain in Europe. ZYNRELEF is a non-opioid, dual-acting, fixed dose combination of the local anesthetic bupivacaine with a low dose of the nonsteroidal anti-inflammatory drug meloxicam. 