LFCR - Earnings call transcript Q1 2025 | Lifecore Biomedical, Inc.

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good morning, and thank you for joining Lifecore's Fiscal 2025 First Quarter Earnings Call. [Operator Instructions]

Now I'd like to turn the call over to Stephanie Diaz, Manager of Investor Relations for Lifecore.

Stephanie Diaz

Good morning, and thank you for joining us today to discuss Lifecore Biomedical's First Quarter Fiscal 2025 Earnings Results.

Joining the call today from Lifecore are Paul Josephs, President and Chief Executive Officer; and Ryan Lake, Chief Financial Officer.

to statements. I'd the remind call in materially call forward-looking course statements. the is results today, statements that contain actual reflect begin forward-looking company's October It in the those X, analysis from such made of important of management's we judgment like during differ only everyone to projected certain forward-looking statements and Before made that as this today, note could this and conference XXXX,

For the discussion statements, uncertainties the Securities limited this Exchange see but today our statements thorough quarter not Form a with was XXXX, the associated to included furnished including, company's and first SEC Form well on as with is forward-looking and the more earnings Commission, to, risks for as the filed of was release regarding which any X-K, QX in please forward-looking XXXX XX-Q morning. that fiscal which fiscal our disclaimer filings other

like I'd call Josephs, Executive to the that, With Paul Officer. over Chief to turn

Paul Josephs

my in company funds. customers, streamlined Thank leaders, signed long-term that requirements everyone, raised a you fiscal our commitment joining successfully spring regained listing Update. and position Lifecore report First and morning, Quarter XXX added to multiple compliance to talented pleased days, Lifecore the you, has new first operations, for I'm its new with XXXX I Today, with Nasdaq's thank success. joined Stephanie. Good last for

for employees, confident and our a to potential path As great and business a achievements, on our now partners result company reaching is even customers, these am value that of shareholders. I its more creating

following overview quarter our financial first fiscal for business the on I will of details provide development an results. XXXX period and additional operations

to I'll Ryan. that, call over the For turn

Ryan Lake

you, Good everyone. Thank Paul. morning,

very be the to relevant public CFO bring with at results the company. pleased work experience discussing Lifecore, results, you and I'm is My in skill my to say highly earnings I'm to Lifecore. CDMO a set in I'd like joining a call first today excited to our prior that Before to as here my

all employees, speed am have shown I the ahead. our including the I to I've up company believe look many to support past to and debt the grateful vendors I customers, the lie of month. an exciting holders, stakeholders, for they come have over me opportunities that and our as shareholders, future, forward will

increase increase was an in million to XXXX, primarily I'll HA in manufacturing built of XX, largest the revenues one compared million by Lifecore's Revenues customer primarily a quarter the a $X.X million comparable were decrease now overview first result for revenues by results. $XX.X for quarter a driven million ended customer of $XX.X year period. $X.X of prior period. due inventory The $X.X timing offset the partially as provide in XXXX of million from working down our to levels shipments, CDMO August

customers and profit was Gross August XX, to The sales to CDMO revenues. mix was $X.X within price primarily XXXX. ended the customers $X.X increases period due a to between of increase of compared for XXXX, million $X.X million for million comparable favorable the our quarter

and professional of Selling, the year general $XX.X fees, was audit stock was $X.X for $X.X $X.X million unit compensation $X.X of $X.X fees in fees stock-based the the impact million, fiscal expense period. primarily of for and and of grants compared to due noncash million. due million million, comparable administrative first legal consisting of primarily performance of quarter The expense of increases to to million $X.X XXXX in prior increase million

discount $X.X on compared an term increase to debt expense million primarily interest with loan compared XXXX. comparable reduction increased capitalized facility along of million debt primarily months August of period. to result the to ended $X.X prior increase XXXX, expense The a interest was million $X.X period a was X Interest the for of Alcon for the the XX, the related amortization in the of

For loss $XX.X to per as $XX.X the $X.XX per million of recorded a year or net with the the net adjusted negative loss of August as XXXX, diluted negative $X.X diluted for in share XX, the a million or the $X period. of quarter consistent EBITDA company was of XXXX. share period comparable million the period $X.XX compared ended for prior million

$XX.X and the the This tremendous our announce growing support a have shareholders. PIPE by and This morning, we market. opportunity sign shareholder various plan of in closing a management successful base, we our value for of confidence with offering million were this pleased existing to of is new and great creation

offering, company's with near needs. this raise address nondilutive We plans additional not We the along actions, the do currently will liquidity in near-term term. other have to believe capital

distraction. created Importantly, will aggressively this growing stability to we believe on with financing financial that business the the allow focus without and management

final one note. And

announce the Nasdaq on to As the annual ceased has any Nasdaq stock. meeting notice stating from delist and announced Qualifications Listing and Nasdaq has that Rules, company in filing company's written compliance pleased common we were regained received requirements XX, with September the the action previously Department Listing to the company that the

This my concludes financial overview.

filing reconciliations, release refer non-GAAP our press today. reviewing in interested the to issued X-K please or those For our

operations the over turn period. update an to during for on achievements the back call and I'll Paul now

Paul Josephs

let just and say Ryan, you, welcome. Thank me

our been first the As many sprint you first his full of company since of in September, he's a week know, day. and Ryan joined

Board management glove achieving and he's for he recognized team, time, with positive During this time record our us, executed but this very result. capital, shareholders a hand initiative our in with the short our and need working in

be have with partner excited going couldn't to and Welcome, you to you forward. more Ryan. onboard I

during comprehensive base primary these following elements: supported pipeline that report strategy quarter, commercialization new we As towards operations, first I'm initiatives. pleased pursuing each and discussed facility X and growth and development of quarter, development the a a our of advancing our our last evaluation operational achievements based our business existing business, business. Maximizing to aggressively on company's implemented

like X-head is of future the with multipurpose new customers isolator first company quarter installation company Subsequent GMP-ready. our the would It The operations. associated and to I to high-speed, the the speed offer and and the isolation art benefits system system to of state aseptic existing its filler. completed end, address the successfully positions qualification now platform. closed

its of prior addition which the is its than annually. this isolator and prefilled for capacity maximum million more and filler, significantly cartridges revenue-generating With X-head syringes, company up doubled vials, to has our $XXX capacity increased designed

viscous further formulations. Lifecore's This leadership in and extends system the complex of highly fill/finish new position

to this qualify for growth customers. support plans near-term have to system existing future to We utilize planned commercial existing products

protein, believe opportunity including and nontargeted win of isolator fulfilling an creates this viscous, we new addition, filler less needs In previously products. less complex the to with antibody business peptide customers opportunities,

already isolator existing customers received interest as filling have state significant as new the well art accessing system. We customers from in of our

filler, efforts this isolator business had very our into to team sell Beyond a quarter. first our solid development

During program the period, Lifecore. we which customers, to signed of brings agreements new new with novel each who a X

and The for their innovation focusing microglassification these formulation business -- new partners. is wins manufacturing it agreement highlight Lindy's Biosciences, of technology for innovative our with for the on scaling process streamlining commercial Lindy

with span range agreements In our addition, projects sign our the expansion of new and continue capabilities. to expanded customers. current we These development

of pleased our existing so to the new to partner We and are of be continue customers. choice many for

an amongst different and manages diverse management customers. development the are team XX programs group a potential impressive these development Ten project currently portfolio programs commercial approved. in and Our to when provide if of late-stage impactful of have of revenue

company is strategy, and growth the part business investing our As of infrastructure development both our outreach. in our

new two our sales expanding quarter, reach and During in biotech representatives added United the States. hubs who key first pharma into we are the

additional plans have the to additional business to sizable resources to also in of at industry our team provide least development We to opportunity front veteran add us. one maximize

September PODD, participation Summit In and Milan; and company meet Phoenix; in Aesthetic and industry met October the our the in Spain; Opportunities has will Injectable Delivery. industry team In its in Parenteral in with multiple Association is CPHI meeting and prospective the and alone, Drug Medical Partnering existing addition, conferences, PDA, including customers with Drug conferences at increasing in events.

will several we on of sitting management and Importantly, in leveraging sterile injectables be at meetings. field position leadership these the presenting our of panels Lifecore with

with pleased quarter, our in and of look development success business during to performance the forward team are additional we the the We coming quarters.

quarter closing, achievements first of executing In success X-pronged growth demonstrate the early previously. our our believe I that outlined I against in the strategy

them We continue on working our to to focus support projects responding services expansion current are on needs and to their growth. customers' with planned closely providing while best-in-class

of as our these our commercialization. period, the portfolio. I'm development pipeline. and the numerous the the customers we business towards are our by of our continue invest activity advance work, new the our agreements expand and signing finally, representatives, sales And encouraged new programs through for of future aggressively working wins with progression follow-on during multiple customer to we efforts development as addition new secure to well to two Through

a we revenue EBITDA. this for adjusted With and backdrop, XXXX for reaffirming our are as guidance fiscal both

the which improved consistent have injectable the that adjusted in sector. of growth, objectives, established are most EBITDA we forward, CDMO peers revenue medium-term Looking range a target reputable margins with double-digit of those

you XX Day Investor invite be all us this to to wish I year. join November Finally, virtual Lifecore's to upcoming held of at

future During our provide color and for projections additional the EBITDA detail adjusted we regarding margins. to plan pipeline, event, growing and revenue

and this we expanded the you into offer to excited objectives, hope are all participate. look and company's operations We

today. This questions. concludes the for remarks prepared Operator, call you our now for open may

Operator

of first from Craig-Hallum [Operator Capital Instructions] line comes Matt the Group. question with Our Hewitt

Matthew Hewitt

you needs, on there some partner new on that their that the noted to I into on wins. once one, you they you have provided an up some Obviously, recently Lindy of, some press guess your first details to that efforts signed contract. in can of opportunity you congratulations of and Obviously, kind -- manufacture new that release their they there. for proven regarding this Maybe base? you've could a expand you the the opportunity. Is

they could secondly, those you late the size? provide additional Any helpful. other And stage, on color little market Maybe on color bit early stage? be Are then a wins? would of

Operator

[Operator Instructions]

Matthew Hewitt

me hear Can you now?

Operator

hear Yes, Ryan, mute Matt, your button. you. and Paul please I check can

please stand gentlemen, and by. Difficulty] Ladies [Technical

Your conference resume Group. Hewitt will momentarily. Matt Craig-Hallum Capital with

Matthew Hewitt

Maybe the here past wins this -- on congratulations quarter.

press you First if curious expand in detail release, could off, bit. but you little a on bit I'm just the a that on Lindy, little of the provided

an be recently of kind the expand there process themselves. their opportunity, had a development, contract you base? once they that noted Will to customer for through You into gotten you've new won

that, on in part would And color additional stage, helpful. then be as later size the if whether they're a a early stage, little of bit provide there wins you to color of the X quarter, other could second company? Any the

Paul Josephs

Matt. Sure,

to too, Verizon. that, about by that you brought Sorry interruption

Just a little joke there.

excited to more opportunity Certainly, we be to about and Lindy, couldn't as it them. with that partner relates

of at here talent range just of It very it's indicative of competitors looked of in just Lifecore. be they strength -- broad and to chose it think one our of technical which I'm technical so of And one but the reasons a us price capability. excited at not I process, was of the a because organization. part our the competitive because technical validated

itself, to various to us gives from With there the out, their and regard on scale, deal commercial it the with opportunity then licensees proprietary commercial their Lindy's of technology programs. partner to scale the manufacturing on

So multinational in to it that's they will development the it pharmaceutical partners more out of announced they're global playing month, time. we portfolio on our Obviously, a going more over past signing that forward. add and successful see period more as company the how like

all that opportunities being early relates pharmaceutical of it other X As large X we stage, being multinational are a really pharma, X closed, them specialty company. the specialty those pharma, to

Matthew Hewitt

Got quarter. revenues takes noted the you obviously in and puts then it. And this some

like do back of do sense a or QX customer, in you inventories line, you feel CDMO whether their have the in they've QX? or be they've coming inventories and gotten -- Regarding they'll gotten here their

Paul Josephs

fiscal itself call 'XX. the We revenue FY to that to that fiscal normalized As think play it projections. factored of in what that year Matt, that, relates year. We've will plans they I'll demand and anticipate that, into sort our I out return through will

Matthew Hewitt

Got it.

Okay. for me. one One last

adding the be X this more. position? size hires, you X once -- it added of sounds feel you're going like And added, you've that do now? Regarding good then you've What you're person new team like to is third in sales got a

Paul Josephs

-- a marketing to on prepared we entire four. And full of feel force We're Vice the that. X have required, of individuals, of Matt, our along resources if to but additional bring Sales. will President with That sales I good resources add then our top with team

Operator

the [Operator Our line Instructions] from Stephens comes next Inc. of Etoch Steven question with

Steven Etoch

This is for Mac on Jacob.

few quick you Just ones. to a hear Ryan, good from again.

you tell figured your been the XX real it's in Given quick. I'd first a seat, days question I

efforts your already appropriately the from the what do And focusing has announced sustainable here? near margins months? been you sized couple past you in are improve where the opportunities do term? support see of over So you growth forward And beyond where to to moving feel

Ryan Lake

for Yes. the Mac, Thanks, questions.

my also XX few recent been I on SEC think, of it's days. the over the kind just come in we've raise primarily the key first focus team, team. terms It's of And of capital month, been, here financing on past as capital that areas the filings with finance also the the quite had a with then well. one, announcement due

-- revenue range think think to the -- XX% the But have. in we that to we $XXX.X as the expect mid-XX% for guidance that you kind and expect back question get at million to Matt's in ramp, will But this half low think And be and that year. I kind touches year the on range, the this EBITDA I first of look the split of I to the well. of as million, year. the so of in in the of half $XXX we question

And yes, and our are tremendous complexity is teams workload managing. this a

either new that on that new top expect pipeline and production completion As and of runs, outside timing when the earn the timing the opportunities to pipeline, trying the of figure chain we some or also of are of complexity top of out business have able the supply services, of those kind expectation be sign backlog. to and to business to there's evolves, juggling top -- that of we the the

XX% margins with the probably half. overall, second first gross range about for relatively and be we on gross to based timing the the shipments. of expect the consistent XX% And product year prior in low some year variability versus be with between profit XX% in quarter-to-quarter that will the the half of split So overall in mix

our that time, majority about I the think And think are as over we fixed. of costs

improvement So be as to able should once leverage see we increase. costs, we absorb our fixed volumes

in about in terms believe year this they're improve. looking then in expenses year. be we And particular, rate. expected about expect expenses, to first half some the anticipated we're include year, half of of to of increased similar then that the help and on as reductions in we as to range result a savings to And professional a XX% primarily areas don't back a be cadence we of going for will be year on XX% initiatives cost the where And be the to fees. the of kind normalized some would run prior heavier recur split expect based Overall the SG&A able versus OpEx the that basis. to be improve

overall, EBITDA half of of the the take the including the mean in would to and to estimate And kind year X% mentioned, we the I millions that be EBITDA, for in the adjusted expect first OpEx base. range out professional increased of half of of kind the split in particularly items XX% kind able the that back And we out of of we'll that of the be mid-single-digit because first will adjusted those back of half half fees, in year. year, kind those

as margin well our over revenue investor aspirations as range. term or well our deck targeted expect there's that think how I kind put it out a our the able of those a as be relates medium-term that deck expectations note improve as as a to we at to for in both would lot or I improve us And time what to goal we EBITDA are out to opportunities just as guidance. look did we goes slide to medium kind and the But of of on -- alluding CAGR

Operator

from next Barrington Michael question Our with of comes Research. line Petusky the

Michael Petusky

When to a So I Paul, XX you I including late I said comment with said wanted stage. programs, made make that remarks. development in sure tracking was -- think prepared your you XX you

development addition correct? XX Is programs, to not the late So stage in other XX total. are it's XX that

Paul Josephs

XX total, correct.

Michael Petusky

Okay.

to I I want guess understand. So

in programs. in development think XX prior obviously, when there spring, to something I guys think, I was you like, reported the you So the chair, being

like ended. the If to you math gap? sort X this that right. You look with leave XX guys of to down added or guys speak -- can Or to either quarter, math me the seem that just I'm you would which you've shut in that doing

Paul Josephs

math Mike. You're doing the right,

And so first question. of all, thank for you the

how Here's know that we are active I to want have is and programs we on towards that active, these are that working we're look I partners. very at XX believe it, be with clear, our or commercialization we

we've that our XX that We do of another in out level some of approaching are forward-looking period taken so programs have quiescent or projections.

yes, your forward-looking projections. related, financing we've or taken out clinical to of stall a those just point, So sort whether of it's our

And were I forward-looking forward-looking as add, just revenue, the of of would a there will no other were a say taking that piece also was programs stage potential our well. that HA-related. in I that projections development out sort just of program, there's couple it commercial single but

Michael Petusky

real just to finish it of sort quickly And Okay. up.

as of you look that ones is of stall, the it those some of On should sort essentially that stage? late just et sort cetera, as really Or it we et programs, is this cetera, a XX sort XX at possible of described clinical revive?

Paul Josephs

very taken to at a for regard pipeline. back, No. clear our this just active with We've them come XXX%. potential to them There is to out be point

Michael Petusky

free Excellent. Got sure this of $X raise. to congrats cash of then, you in you. And from Looks cash terms flow interested cap in I'm Ryan, But flow. focus cash negative, obviously, room like are business. I million. super All on on negative the sort ops still really growing Gives people some about guess, right. slightly guys that flow

that there the Or flow anything in flow watermark cash of just speak terms cadence low quarter of to year? reported Would you you generation? just sort the the is in can would of throughout be cash terms expect

Ryan Lake

Thanks.

year initiatives in raise So raise during plans other nondilutive in burn cash-neutral a term. previously the result equity first half of needs. company's believe cost have expected capital the along we the just We the address that that cadence. and to then And we second half near-term of liquidity this the fiscal items mentioned be will are ongoing, I to near we cash with regarding as the of year don't any completed, have initiatives, including additional savings the

Michael Petusky

Okay.

just I want sure, make just me and to clarify. Let

the cash-neutral of In second cash that neutral, from talking terms in of we're free neutral, cash not about flow right? the So includes CapEx, impact half, ops correct?

Ryan Lake

expectation, is the That yes.

Michael Petusky

Okay. you -- And second cash an will some still somewhat QX? of improvement expect in of understanding free likely would quarter. expect Would it improvement negative in versus terms in QX be you the

Ryan Lake

I me, don't front in half. have that the expecting of negative be are in half we second first to versus but the

Operator

Thank closing further questions currently over no time. I'd hand this And to for the remarks. Paul back I'm you. at to showing Josephs call like

Paul Josephs

wish to Thank choice. their In as to continue and you to so collaborators as partner who entrust strategy our growth partner I acknowledge wish continue a support much. for to customers closing, of our who Lifecore our -- future. I investors thank the

importantly, I Lifecore. to of extend at wish hardworking the to team driving incredibly and most each And my gratitude for our deepest talented successes

no industry. organization continue Your doubt inspiring in dedication to elevate is our and will the

future bright ahead us. We have a of

last achieve the best-in-class CDMO. taken sustainable With to our as as positioned XXX Thank days well as is future the recently success announced in over you. company achievements, the a I actions the believe we've

Operator

participation. your This conference you Thank call. concludes today's for

now disconnect. You may

Lifecore Biomedical (LFCR) 4 Oct 242025 Q1 Earnings call transcript