LNDC - Earnings call transcript Q1 2020 | Lifecore Biomedical, Inc.

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Operator

Good morning, and thank you for joining Landec's First Quarter of Fiscal Year 2020 Earnings Call. With me on the call is Dr. Albert Bolles, Landec's Chief Executive Officer, and Greg Skinner, Landec's Chief Financial Officer.

During today's call, we may make forward-looking statements that involve certain risks and uncertainties that could cause actual results to differ materially. These risks are outlined in our filings with the Securities and Exchange Commission, including the Company's Form 10-K for fiscal year 2019.

call Albert. the turn me over to Let

Albert Bolles

Thank good morning, everyone. you, and

leading vials. development finish to differentiated distributed and As comprised health of and Curation of offers difficult in wellness diversified for operating CDMO, is syringes fully a in contract Biomedical Lifecore highly Foods. manufacturing organization innovator that products businesses, development, solutions, manufacture Lifecore and Biomedical pharmaceutical integrated a two and capabilities Landec or is fill and

Hyaluronic injectable partner Acid HA, a and leading bring premium As to of across a of over their brings as emerging companies market. years to for or XX therapeutic biotechnology manufacturer Lifecore global categories multiple innovations biopharmaceutical expertise and a

XXX% the clean packaging fresh to and supply of our packaged chain throughout America. Smart Yucatan artisan BreatheWay salads, network service to club vegetables. patented vegetables natural Eat North ingredients avocado channels fruits business oil refrigerated food dispersed and naturally and technology, Fresh products geographically Foods, freshness Olive products. Foods of maximize shelf on product food foods growers, to include, and and Vinegar a and is innovating its able Curation premium life Curation focused retail brands and Curation of is plant-based extends Cabo which foods

growth shareholder We margins top operating driving improve our financial and are at sheet, Lifecore. delivering and by strategic at Curation creating focused to in priorities targets, investing implementing on against value line strengthening our our Foods momentum balance

'XX, quarter last $XXX compared first million of of For to the to first consolidated revenues fiscal XX% increased quarter year. the

fiscal profit of first loss our guidance. in the net planned the decrease met This 'XX loss which experienced of in $X.XX last resulted first year. compared during EBTIDA quarter a quarter to of gross However, we first quarter in a net that and

share earnings We to continuing 'XX EBITDA million to and $XX for our $X.XX. from million of year $X.XX full $XX revenue to to of operations guidance, X% are per fiscal calls consolidated which grow XX%. reiterating

we the last team quarter, expect to goals positioned we half profits in is of year, generate our fiscal we 'XX, our engaged communicated fully are substantial strategy. second our well fiscal achieve As and for in the to

reminder, a number in Number factors. 'XX. to one, to revenues from the three, of and timing impact revenues the Number at timing the significant is out acceleration profits we three half due second and expect the the avocado two, fiscal sale the the which initiatives, cost profits As And products. second of Lifecore. savings our cost in of yield half from

plans beyond, financial go I the or concerning and more Greg turn fiscal let to into 'XX detail some Before me over call highlights. for

Greg Skinner

and you, Al good everyone. morning, Thank

from first XX% These partially from contribution to Valley Revenues fiscal $X.X June, of in $X.X and to X% quarter on in avocado the increase offset normal. were XXXX, December to a increased a XX% decrease the acquired X, heavy of flooding due year. $XX.X last during during in green the XXXX, products, of to or increases in resulting revenues, million bean primarily and million the revenues solid million Ohio quarter and extremely May compared were first which rains due of revenue the by yields first,

of the the result trays of The Lifecore $X.X during the vegetables Lifecore. fiscal was at revenues due timing fermentation of planned $XXX,XXX lower decrease packaged in third, the to year, shipment first due revenues and a million - in to a XXXX fiscal Second, year. decrease compared quarter in bags customer the And within primarily planned decrease prior business. a

the development $XXX,XXX in during quarter in in a and result first product Lifecore to fiscal a due segment increase decrease as the segment, compared the revenues, Gross fiscal mix. Lifecore in decrease $XXX,XXX XXXX a Curation a first due increase decrease of The partially an revenues of the within a Foods by activities an revenue And primarily from development timing from unfavorable last year, production during year. profit offset XX% the decrease quarter. to product the was of decreased quarter to of in

during decreased to the income a profit. the quarter of decrease Net million compared $X first last of XXXX year, fiscal quarter first gross due to first, in

from operating million Second, a Yucatan increase $X.X Foods. of in primarily expenses, the addition

income fourth, $X.X These a in $X.X Windset Third, year. fair partially value increase in decrease the to the compared a to from in increase offset Company's Yucatan interest Foods. a increase income quarter acquisition net were debt by last expense expenses. the in market due of of decreases And million investment, million $X million first during the of tax no the in increase

amortization $X an increase decreased in operating XXXX, million quarter the first quarter expenses. to of EBITDA year, the by an depreciation due from during gross last in first compared to in of $XXX,XXX, to the partially profit and decrease fiscal and increase offset expenses

our in we XXXX guidance our reiterating fourth earnings As fiscal remarks, in fiscal opening forth Al his are quarter release. noted XXXX set

with and to to X% the expect Foods continue Lifecore grow Curation operations continuing from We range growing consolidated to XX%. of in XX%, growing XX% to revenues X% to XX%

of project We $XX allocations to million. Lifecore. $XX At to level, EBITDA be to $XX million Lifecore segment after million after allocations, to we in to to earnings be million share expense million, be EBITDA continue million. expected and for the EBITDA to consolidated $X.XX approximately per $X $XX the to expect $X.XX an of and and of loss Foods to consolidated corporate range EBITDA to $XX million is for realize Foods Curation $XX Curation Corporate

$X.XX are be second cost delayed to of to in million to a expected of quarter avocado and the of savings the half. third range of shifting range net second $XXX we million in EBITDA of quarter million. revenues the the the due to $X to a $X.XX, a for $XXX shipments for Lifecore, second second million, products loss per to the is with share certain $X expected for portion XXXX, out quarter the quarter O be For providing the and consolidated to to fiscal guidance for

is quarter sequentially of of the year quarterly operating the the during year, each fact customer on Lifecore income year income fiscal patterns. income generating expect During our generation for to that, driven timing level quarter of line increase plans with first, XX% we XXXX, results the The second over the historical income. based generate its during by highest to fourth operating in the quarterly with half, order

the products XXXX. Second, sale of the from in operating all second of will the avocado occur fiscal half of income

our second out second at has green expect to profits expect business we that fiscal large fiscal And from Third, cost savings Curation fourth, of and this our to supply initiatives majority fully of of recovered XXXX. our in during cost the half now bean year. out recognize substantial the half a we generate Foods

million project the We capital flow $XX range out and Lifecore, of Food. in operations with expenditures majority expansion million Curation $XX initiatives to continue invested a in from the at capacity cash $XX expenditures cost large of in and of million, to range million to at $XX capital

a of Turning assets our of approximately to to of a million ratio financial of XXXX, translated quarter end tangible which the debt, $XXX the XX%, debt XX%. to into equity debt fiscal position. ratio of had we At first

quarter X.X, of the Our is end our first of X.X. above well at which covenant the fixed was coverage ratio

of first our Our debt was X.X, end in or compliance quarter X.X the with leverage ratio covenant at the less. of

debt of with forward. be We expect compliance to all going in our covenants

in we to amend as fiscal fourth Importantly, earnings the order our lenders end discussions the agreements actively July, mentioned at of enhance in of quarter debt engaged to release, XXXX are in our we flexibility. our with

debt, the current are terms We our availability the covenants. discussing amend of that will structure financial of and increase the extend amount overall our

The and our to Lifecore. out amendment flow from expand cash automation projects the us with should along our necessary capacity give to and operations accelerate cost liquidity at

to days. expect the announce amendment this We within next and finalize XX

I'll now back call the Al. to turn

Albert Bolles

Thanks Greg.

in drive fiscal our about confident 'XX. to are plans We growth profitable

and the me Number in pharmaceutical progress go detail about a services development business manufacturing. units. trend see one, companies growing are to device to into making industry momentum, Let three from Curation Food outsource trends. and we Lifecore Lifecore, benefiting continues among our medical more

of incremental growing increase for the drug million XXX trend units global to products a XXXX. FDA XX by by by products to number expected seeking is two, And injectable toward approval. demand to number report, million injectable data projected Number the drugs. According increasing three, [indiscernible],

highly a these CDMO, integrated fully and differentiated is As Lifecore tailwinds. capitalize on uniquely to positioned

global pharmaceutical as years a Lifecore injectable XX to grade in both knowledge and formulate and leader manufacturing HA, syringes and has Lifecore's difficult manufacture, process Through vials. products in premium developed the to fill

the period. XX% create first high on long-term prior fill businesses its demonstrated new by 'XX, establish will to growth. competition business opportunities, Lifecore increase pipeline fiscal to the continue allowed our barriers revenue to unique its business compared been to development during to the projects which of year and has in development quarter has the of This augment This

is commercialization. The customers making in 'XX quarter to stage late from planned time. X first fiscal progress studies to in decrease was also of Lifecore the Lifecore in due revenues development clinical Phase

on and quarters be three We 'XX the of Lifecore for will for to to XX% 'XX. are growth meet goal fiscal our Lifecore revenue track remaining XX% profitable fiscal

fiscal at $XX future meet expansion be 'XX. demand To Lifecore, approximately million we'll of capacity an in investing

average, customers expect generate in products sales are years, to development currently five We continue to next customers, commercialize pipeline. revenue and to they on to to over as new low the Lifecore existing mid-teen expand continue that growth the

progress business, and advancing Foods and that performance Curation strategic during quarter fiscal of in first third the will made our quarters our progress priorities to the 'XX, of this we year. financial we fiscal see For benefit of improve the fourth

Foods is costs industry, increased be product continue operations, our products, our the deliver business. 'XX Our breakthrough margin strategy facing continue focus optimize labor a our pressures for to fiscal and on to issues and to higher growing greatest Other to the year innovation. Curation mitigate challenge to our cost

we weather, this have decisive risk. taken mitigate to action Regarding

events, considerable set and of 'XX, due for issues produce cover First, to contingency our sourcing as we'll what aside we to aside historically fund in have weather-related a part gains above over set plans. unforeseen our fiscal

of beans. impact an impacted we we over beans from have in Second, response as green to bean fiscal rains weather-related heavy Hurricane Dorian implemented or This us benefited green QX July planned very supply strategy in regions. greatly, of 'XX, green little felt lack in growing for

We are customer beans be coming this for all green meet forecasting our to season. we'll demand that of holiday able

business track driven to our risk which increases. produce $XX fiscal out $XX our projected we're costs, efforts on Regarding out sourcing. cost in in offset material in cost on to and cost million 'XX. freight Primarily QX, raw we advanced million mitigating of deliver We by savings our reduce goal to labor, program, in cost met focuses to

Our on activities supply our increasing efficiencies and in chain. focus and labor plants managing costs

annually. savings a labor week and facility, efficient our work a day cost, $X.X more labor million in out moved Specifically cost five Guadalupe on re-negotiated six for we to from workweek day contract contributing

Regarding synergies captured logistics, of salad by avocado products, our shipments trucks. refrigerated integrating Food successful integration Eat with products, of and we with the Smart Yucatan products

round, We over will logistics $X.X savings also additional low to service million delivery actions $XXX,XXX realize These our ongoing annually. eliminating of customers. operational and roughly by to our continuing while resulted customers, in efficiencies improved service monthly or margin deliver

costs, products, reducing margin XX% points. advertise during material compared single by of together for first the example single quarter to the improving Eat packaging growing, for business, fast Smart reduce operations Another production year team in basis gross to grew our serve quarter, and XXX resulting salad salad our serve prior the R&D work which

and improving the productivity to existing of manner. most new the we're waste automation formulations of reducing on in and product efficient projects efforts our and that moving all continue producing facilities. in Optimization ensure excellence designs, packaging and network our our of We'll operational

products, Further supply in in important excellence, production Mexico in months is up in during order which successfully be operational facility our September, team chain can Curation Foods and avocados be prices. at processing reasonable are started to strive avocado continuing for the season when purchased and for to the

facility timing at late them last in With both are the September, through up Last than purchasing end the were year's avocados which three high months of less this to inventory. we year in which at opening, and margins and significantly purchasing as acquisition, was production impacting resulted on-time our start due the we of in we XX% cost efficiencies, production avocados season. are of purchasing the sell

processes inventory productivity efficiency Looking the will place and QX through positive with more fiscal measures further sale improve to forward improve fiscal flow second products substantially. have in avocado QX of impact The the to quarter of 'XX. in of we 'XX, and margins and

will high growth XX% of to foods growing. our in key we notably salad is A innovative account products line driver products with XXX% Consumer revenues. innovative market, based clean ingredients, for salad plant-based Curation business newer trend. Foods food, that plant along of Eat focus be margin more the rapidly for that Smart growth demand on deliver in the products on bring our

Good last plant-based to X%. testing retail the innovation association and plant-based line foods foods the our has to sales during According food growth. profitable year changes the in is philosophy at first the representative XX% of market only two Institute products of compared major with existing are that Both based quarter, advancing impact. Food deliver breakthrough products these growing small products market, will in strategy, Curation In grown of non-plant drive Foods experience, that and my to

customer products Changes needs. products are insights, these are and we and we the made meet with believe to unmet embedded consumer

used package packaged be allows a an that of its squeeze allows First, Squeeze, first as guacamole and greater The design in occasions unique we pouch recently for launched guacamole usage condiment. kind for product flexible Yucatan to a new everyday Guacamole convenience.

in of in and Guacamole package waste guacamole does only The breakthrough the cap product Does Squeeze is in the with shelf-life but the provides which consumer with Yucatan open. and the test technological squeeze container an us food nozzle, a currently not brown Walmart. unmet is is advantage. need, design competitive reduces not the because The after extends the meets

national a of once for compile results planning the are we expansion We test.

resources on Second, focused new markets. our packaging we for technology into BreatheWay our revamping patented expansion

optimal we'll produce. continue individually our to use packaged technology atmosphere packaging While maintain to for

solution. supply expanded new have We with into chain a markets complete packaging

The from being to BreatheWay used wrap packaging addressable California pallets, Distribution solution Center. raspberries its is

which shrink, results this retailers, For profitability. reducing in improves

shelf product adjacent life. products results categories. other berry solutions test to plan and consumers, its For improve other and several quality this product extending extend our scale We can by business to this to perishable

product and double natural data, deliver high gross our that of sales and For we digit our our brands continue syndicated lines natural will Nielsen food IRI focus to growing Smart brands, category avocado products margin deliver retail quarter categories. XX.X%, to of last growing XX.X%. on food each retail premium a quarter wine outpace in O olive brand, fiscal year. grew the sales and the and growth 'XX, oil compared first Eat growth first the XX%, of to and vinegar grew According grew

'XX. mix than cut to bag tray in our margin fiscal the continue and in 'XX basis low-growth margin, low points product is shift products. of to in more to de-emphasize gross This vegetable We improvement XXX projected fresh deliver fiscal compared

business our generations true to sustainability future mission efforts to Landec of published And setting are all practices. in on remain recently We focused staying handbook and our these for reduce impact. our actively protecting plant and sustainable targets our environmental

deliver secure plan driving growth and to the investing make to momentum growth Lifecore. our top value summary, and Landec to at confident on in at fiscal against to in The have our and and targets, confidence implementing changes place successful I'm in our and value necessary priorities In for shareholders. financial and we to sheet, operating focused strategic Curation be balance our is consumers our creating 'XX. improve margins strengthening long-term team line delivering customers, profitable our guidance our Foods,

in ongoing for Thank for us your and joining Landec. interest today you

open now questions. are for We

Operator

question with line [Operator question. comes Holland DA from Please proceed first your Instructions] with Brian of Davidson. Our

Brian Holland

the where new some some then If you've Ohio sourcing help mentioned stand for those that to produce So in words, flooding pressures? within the to initiatives range and how can spoken setting to we cushion you what aside of do stretch quickly the And extent guidance - in that rains in did contingency? other Valley today of ease sourcing volatility, outcomes?

Greg Skinner

a quarter, that issues of our the that's second in past, more in lot look been - when item. past contingency correct. the our are a our probably from of a you - third While have of sourcing lot quarter of A lot - history, Brian at uses

originally talking had for with was So were when what contingencies, most we quarters. of we that aside set about associated those

we we our for guidance green first the By July, - the with bean went time knew the issues for out in year the and quarter. about already

So factored was that our guidance. into

adequate contingency the - what adequate and nine feel of a for we than months year. the So have we reasonable is last still more

Albert Bolles

want the over Yes. us. planning new is that a for to I just strategy add, approach

green is we very able historically which been holiday during product have good supply for a us, season. know, to beans, the not You

every I hurricanes year. knew happen we And mean,

So it believe we in confidence we plan regions what in and a have we that pro-rating which build will begin are done to geographic as historically, we customers we to hope position, not diversified over we're doing. be now

Brian Holland

started there, Thank you, do color to production the right? got we the With else on appreciate and Yucatan, respect time. to heavy clarity you've there. lifting do to what respect with need So

like fully staff balance implement year? about initiatives long-term What move And Sounds the the we have thinking that of as is is what timing the and look else do there. through I'm there that to need like on you the trained. you

Albert Bolles

you extensive a year. Well, the of lot heavy we we summer this turnover Last our lifting know, training a had we've build year degree months of high staffs. during done and to in programs put

have we staff So the place. in

turnover. not are We high seeing

And we of have low with the time up course, fruit. on started

we So that lifting heavy did this year. an was

in mentioned metrics cetera. amount per before, that we're I've of think, I pounds putting weren't there before yields, et day around,

Looking lot particularly handwork. of We and still us. of lot lines people, packaging have forward, doing it's automation a for under a about tertiary second

we there margins, So an we automation we opportunity a Yucatan. We Guadalupe get as improve the facilities. our just that in like doing it see see continually to that automate way the in will we're the future is capital as

Brian Holland

on Last condiments dips sort is Are Curious Yucatan, Walmart placed one the think distribution? be placement broader the the with you of as product. test? about optimally or Guacamole product for with where the you would that the in where the Squeeze me for and

Albert Bolles

Yes.

are geographically roughly Walmart's X,XXX we So dispersed.

right the We now. dairy are in section

put and buyer there there. work clock it ounce to to We in have we XX some the

from follow-ups lots and data with now. mind to and we put regions, specific and we We're the just to stores we'll expect the be might understand a product in and be and where the are the than accumulating more that one of that optimal spot for store. buyer doing that place find us in data the that's So get goes

Operator

Please Our Vendetti next with line Maxim. Anthony comes of your with question. from question proceed

Anthony Vendetti

businesses little of know, low those about pushed the talk focusing of on going you've you initiatives and that bit on forward more to didn't just as since little Al, more high cost a caused - been year? came second sense businesses in, bit little part margin the just margin a strategy out Just focused exiting you out the them about make and, around about get has into of products. the to you a Can and give specificity what exact color this initiatives or half

Albert Bolles

Well, are going on, program. there several out is actually the things in that cost

fairly can out or the high vegetable where been low fresh taking tray have SKUs, We aggressive primarily our be cost cut we cost bag margin - low and line. the in

ongoing that we is process an part cost that's the us continually doing. capital installation to allows of So that big The the out of automate.

ongoing. We a is We a we QX, to the that expect fully half. timing are in equipment. little but said, So that as behind because only issue recover of - second we in that's

automation So your we're on side. focused there really

see. we it's third very will, formulations? the it, then the pretty at we and our but in terms do we if in ongoing optimal that much looking we don't cost disappoint consumers, we our plastic of That's have aggressive leg, we optimize much All what the how so out have bags. those I have we're thirdly, of that opportunity things you the putting And package? are looking packaging gotten - Do the actively into we at - kind reformulating have

Anthony Vendetti

but some because going little moving really start fiscal organic a think this current margin an the into is Do X.X% to nothing into gets - issue growth quarter, towards of X% now second Or into margin from X.X% the the the it Any if revenue that like products, timing half, process right then products XXXX? the to prevent I a - second you're this calling bit major. revenue do just as high and lower right, show And pushed be expect we move of year? Yucatan, chance these to Or exclude just that quarter? the of as half we is fourth not acceleration out the sounds I you was until which down, think. expect happening you to

Albert Bolles

organic the that in see half. grow will revenue We second the

know, - As our work I retail. are improve mentioned, us growing got really of serve salads really well at single margins. on, going a the you We've for lot

mentioned basis we by I XXX think, proved points. I haven't

to you grow. So continue sales know our

We a that since new brand also coming consumer have Eat Smart. It's that that improvements done that by with restage. time have whole says, we the been has brand been and data we the to restage velocities of drive long can refreshed, changes line a

we're And well, the lot that be implemented then you'll see our have Squeeze, coming that, And bumper we half crop continuing national it's and from And whole more as to well, going which a Yucatan we January. coming and growth to second on see organic line a will in projecting continue. as from roll-off.

is And part the forecasting we you know, mentioned, the is still one life see - first optimizing and our opportunity way as profitability we're don't continue And question, out margins But for Yucatan, years, to about our further have we here. area going just under confident continue. our as we're out to we I a be network. as cost And, know, see that of the you we'll I of - be in more not our your cost year. to number there is culture improve investigation out in and cost

some facilities procurement we're looking of - There the non-strategic were of lot at those logistics. and assets,

in We of start have half, and but fiscal to only that, expect 'XX as see dedicated year to impact not the full the in team a that to well. some second

Operator

Markets. Instructions] Please the Chris with Lake with [Operator question next proceed Capital from Our question. line your of Krueger comes Street

Chris Krueger

of couple questions on new products. the a Just

Squeeze that? testing Walmart phase there the stores. believe How take? X,XXX for I you're the timeline Is a long First, you on product, stated will about Guacamole at test

Albert Bolles

out about there We've - around three it's Typically, four. months, test. weeks maybe Yes. it been typical three is now, the

I getting of for are Walmart's, tell and time. some haven't the at We data But into results. will we're all encouraging that a seeing been store-by-store you, lot

There placement, want - that partner a things task. So on that then the plans national a point plan continuing launch. we with these on lot we're going making now test here and price all to is learn with we for just

available will second national the the launch see of the You'll in QX. be year, half

Chris Krueger

We'll as well? see national stores not launch just but other Walmart

Albert Bolles

Yes.

Chris Krueger

Okay

Albert Bolles

retailers on even and other maybe clubs. planning We're

Chris Krueger

long on just curiosity, the then that how did take develop it And to product?

Albert Bolles

were there prototypes early Well some QX. done in

think to and also saw I got that barriers insights, to opportunities frankly the the launch be QX, wanted we competition. some mover in product. I QX and first competitive We when into we of consumer accelerated the some we create have category, to and

You'll package us, some right we of really have probably packages see the and nozzle it one come is doesn’t in it, once this now other principal package consumer the we that brown Squeeze is follow air one number of use proprietary but that on you the doesn’t go feature that which emphasized closure back are complaints guacamole.

So is waste very this with little product. there

team place, burner back that from focuses the front the very executed designer, move put in the project burner got time management So when resource think given short well it’s and we we of did. period my we to - I it

Chris Krueger

as a my to items. for I on last chain there supply opportunity? that Is initial the you building you within a the - of it is used pipeline And in your customer there using BreatheWay a press already is market indicated believe question Okay. Technology see raspberries. you had perishable be supply and the what product release for

Albert Bolles

they is the to and is. berry with because largest world start So want the there berry testing with the manufacturer in we - started that's we with perishable started most Driscoll's raspberries

the we berry launch. So it testing are existing retrofitting will patch it be We're on now. our and and film supplying with then BreatheWay their we

the test it up. details in them now, ramping we’re So working on it's with for

that for opportunity great been it do Technology able be to great takes to to as and adjacent customers and from a a those us because it's capital of are which we’ll value months. plans for we us really scaling have have categories for not separate well and historically testing not that we but in the the berries play the it's provide fresh just to And But low consumers. only other BreatheWay advantage upcoming

Operator

with proceed next of the Research. line comes Our question Barrington your Mike Please from question. Petusky with

Mike Petusky

salad guidance going new on hinges the on cetera? et how acceleration in products forward So of much that

Albert Bolles

said growing fairly as our growing single and been Well, serve salads have are rapidly. I

have So our fuel and that introduce that do margins. a new the to half retail in growing that's at to focus of there is we improve where to continue the plan to are line our We year. second we

have a to We into us. with customer who major put agreed has already test it

So add salads going continue very to be our do. we will but what we targeted to we’re innovation very, in to

firm And firm of salad. in able to innovation to we apply insights we us outside a consumers hired terms that have help can being find to with

we done lot they put So and just you're which not a have what going to out of to see salads there historically see if stick.

learn high together cost process insights pay partnering putting and and can learn We’re and that a a doing [tuition] case in a it in of we with much better and work. test consumer customers job upfront doesn't not

more we is just upfront proteins where salads far an I the is Eat mentioned plant Smart certainly talk things taken really have a the more targeted foods area as eating my based with in based people but are going that whole given growing. plant So and approach, that area is

We and have of. a better lot there, just take advantage here of I tailwinds need and we’re to think

Mike Petusky

or rest entirely reading in it’s that that… half serve second and so for the new single products the is is around really introduction normally, of - be year is So an acceleration I as on clear, acceleration the not am

Albert Bolles

have of two clear, to second the is just be grows. the three believe is of growing so velocities half focus brand and so it and on whole our done as our in we’ll year. is drive testing And third going as serve previous single the things call a existing on out to several going of Smart that’s restage months to there in is one new testing that as mentioned Eat a I So, products. margin be Number we've we improve the line that, the had

some our have brand been packaging It's we the believe since it’s improve temporary Eat frankly will refresh it’s of a Smart time we been and velocities. and that long graphics outdated

Mike Petusky

And bump I’m value the the I third Thanks. just from in that your guess is statement guidance, of question wasn't there guidance? wondering what’s the around statement. any quarter income And running investment what in income market terms the consecutive a through line fair Windset the assuming for year of

Greg Skinner

it just coming will we a their right until whenever budget given then and get now five-year up one reset be not we XXXX us plan got of a new probably and they everything, for new them from quarter. Well new the kind third

as call get now growth that date going closer to would the is So for slowdown. to I we assume the

reasonable I the per so somewhere going in XXX,XXX And is a range forward. estimate probably quarter would think

Mike Petusky

And second you’re in quarter? seeing XXX,XXX the

Greg Skinner

That our guidance. part is of

Mike Petusky

last then and CapEx mentioned quarter? that cash in just And ops just cash for question, the Thanks. if from flow you flow

Greg Skinner

forward. Going

Mike Petusky

QX? no No, for

Greg Skinner

The sorry I'm CapEx that again. say -

Mike Petusky

ops Cash flow and from CapEx?

Greg Skinner

for about quarter end was our of is the million approximate year quarter to operations the from going about and CapEx the a our range which XX cash for of flow loss. low

Mike Petusky

very right, All good. Thanks guys.

Greg Skinner

Slightly higher.

Operator

we to closing Bolles no back the this further at you over like I now comments. floor Mr. have time. turn to for would questions

Albert Bolles

today Once you. interest and for ongoing you again us thank your for Thank joining in Landec.

Operator

today's this gentlemen and concludes teleconference. does Ladies

day. Thank you You a have this your at time. for your wonderful may disconnect and participation lines

Lifecore Biomedical (LFCR) 2 Oct 192020 Q1 Earnings call transcript