Lifecore Biomedical's 2024 Financial Performance Highlighted
Lifecore Biomedical Reports Fourth Quarter and Fiscal Year End 2024 Financial Results
-- Recorded Revenues of $128.3 million for Fiscal 2024; Year-Over-Year Increase of 24.2% --
-- High Value Pipeline Continues to Advance Toward Commercialization --
-- State-of-the-Art Technology Enhancements to Expand Capacity and New Business Opportunities --
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CHASKA, Minn. -- Lifecore Biomedical, Inc. (NASDAQ: LFCR) (“Lifecore” or the “Company”), a fully integrated contract development and manufacturing organization (“CDMO”), recently announced its financial results for the fourth quarter and full year of fiscal 2024.
Highlights from Fiscal 2024
“Operationally, fiscal 2024 was a strong year for the Company as we recorded $128.3 million in revenues, representing a 24.2% increase over fiscal 2023,” stated Paul Josephs, president & chief executive officer of Lifecore. “We are exceedingly pleased with this performance and top line growth. I am proud of the progress made by the Company to overcome its recent challenges and very pleased to have submitted our fiscal 2024 10-K today, bringing us current with all SEC filings.
“During my first 90 days as CEO, I have been evaluating all aspects of the organization in an effort to identify opportunities to optimize processes, reduce operating expenses, and enhance productivity. Following my initial operational review, it was clear that the Company’s headcount was oversized for its current business. While such decisions are difficult, a reduction in force was required, which we executed in July. We are now confident that we are right sized for our current pipeline as well as near-term growth. With respect to capabilities and capacity, the Company currently expects its new 5-head isolator filler to be GMP-ready in September.
“Looking ahead, a primary focus is the financial growth of our organization. We expect to accomplish this by focusing on three key areas: (1) maximizing our base business; (2) advancing our development portfolio toward commercialization; and, (3) attracting new business spanning our complete range of capabilities and services. We believe we can accomplish this while maintaining superior support for the growing needs of our existing customers. Drawing upon my extensive experience building and executing commercial strategies at multiple CDMO’s, I am leading the team in refining our business development strategy to expand our visibility, broaden our outreach, and ultimately, increase our new project pipeline. We believe Lifecore’s key differentiators are the robustness of our quality management system, our decades of proven experience, and our unique ability to handle complex and viscous formulations. I’m confident that, as other potential partners become aware of these capabilities, they will discover the exceptional value that we offer to them and their patients.”
Fiscal Fourth Quarter 2024 Financial Highlights
- Revenue of $37.9 million, an increase of 21.6% year-over-year.
- Gross profit of $17.3 million, an increase of $9.5 million, or 122.0% year-over-year.
- Net loss from continuing operations of $7.1 million, compared to $37.0 million year-over-year, including $23.7 million in loss on debt extinguishment in the prior year period.
- Adjusted EBITDA of $10.4 million, which excludes $1.6 million of stock-based compensation, compared to Adjusted EBITDA of $3.7 million, which excludes $0.8 million in stock-based compensation.
Fiscal Year 2024 Financial Highlights
- Revenue of $128.3 million, an increase of 24.2% year-over-year.
- Gross profit of $41.9 million, an increase of $13.9 million, or 49.5% year-over-year.
- Net income from continuing operations of $9.3 million, which includes a $39.5 million decrease in the fair value of the debt derivative liability, compared to a net loss from continuing operations of $64.2 million year-over-year.
- Adjusted EBITDA of $20.2 million, which excludes $6.2 million of stock-based compensation, compared to Adjusted EBITDA of $11.1 million.
Corporate Developments
New Business Initiatives
- The Lifecore business development team engaged with potential and existing customers to promote expanded capacity and field site visits along with opportunities directed toward utilizing isolator capabilities with virtual to large pharma.
- To maximize our organizational focus on driving new impactful opportunities, Lifecore has added resources to the business development team and increased marketing spending.
Capabilities and Capacity Growth
- The 5-head isolator filler is expected to be GMP-ready, indicating more than double the current theoretical capacity and a significant portion of the previously disclosed 70 million units in theoretical capacity.
Financial Outlook for Fiscal 2025
Lifecore Biomedical is providing guidance for full fiscal 2025:
- Revenue: Expected to be in the range of $126.5 million to $130 million.
- Adjusted EBITDA: Expected to be in the range of $19 million to $21 million, with stock-based compensation expected to be between $9 million to $10 million during fiscal 2025.
- Capital Expenditures: Expected to be in the range of $10 million to $14 million, excluding capitalized interest.
About Lifecore Biomedical
Lifecore Biomedical, Inc. is a fully integrated contract development and manufacturing organization (CDMO) that offers highly differentiated capabilities in the development, fill and finish of sterile injectable pharmaceutical products in syringes, vials, and cartridges, including complex formulations. With over 40 years of expertise, Lifecore partners with global and emerging biopharmaceutical and biotechnology companies across multiple therapeutic categories to help bring their innovations to market.
Frequently Asked Questions
What were the total revenues for Lifecore Biomedical in fiscal 2024?
The total revenues for Lifecore Biomedical in fiscal 2024 were $128.3 million.
How much did Lifecore Biomedical's revenues increase compared to fiscal 2023?
Lifecore Biomedical's revenues increased by 24.2% year-over-year compared to fiscal 2023.
What strategies is Lifecore Biomedical focusing on for growth?
Lifecore Biomedical is focusing on maximizing base business, advancing its development portfolio, and attracting new business opportunities across its complete range of services.
What is the significance of the 5-head isolator filler for Lifecore?
The 5-head isolator filler, expected to be GMP-ready, will significantly enhance Lifecore's production capacity, driving operational growth.
Who is the CEO of Lifecore Biomedical?
Paul Josephs is the president and chief executive officer of Lifecore Biomedical.
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