Lifecore Biomedical Reports Fourth Quarter and Fiscal Year End 2024 Financial Results
-- Revenues reached $128.3 million for Fiscal 2024, marking a Year-Over-Year increase of 24.2% --
-- High-Value Pipeline Continues to Progress Towards Commercialization --
-- Cutting-Edge Technology Enhancements to Broaden Capacity and Create 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”), has announced its financial results for the fourth quarter and the entire fiscal year of 2024.
Key Highlights from Fiscal 2024
“Fiscal 2024 proved to be a robust year for the Company, as we achieved $128.3 million in revenues, reflecting a 24.2% increase compared to fiscal 2023,” said Paul Josephs, president and chief executive officer of Lifecore. “We are extremely satisfied with this performance and the growth in our top line. I take pride in the strides the Company has made to navigate recent challenges, and I am pleased to report that we submitted our fiscal 2024 10-K today, bringing us up to date with all SEC filings.
“In my first 90 days as CEO, I have been thoroughly assessing all aspects of the organization to identify ways to optimize processes, reduce operating costs, and boost productivity. My initial operational review indicated that the Company’s workforce was larger than necessary for its current operations. Although these decisions are tough, we had to implement a reduction in force, which we carried out in July. We now believe we are appropriately sized for our current pipeline and anticipated growth. Regarding our capabilities and capacity, we expect our new 5-head isolator filler to be GMP-ready by September.
“Looking forward, our primary focus will be on the financial growth of our organization. We plan to achieve this by concentrating on three main areas: (1) maximizing our existing business; (2) advancing our development portfolio towards commercialization; and (3) attracting new business that leverages our full range of capabilities and services. We are confident that we can do this while providing excellent support to meet the growing needs of our current customers. Drawing from my extensive experience in developing and executing commercial strategies across various CDMOs, I am leading our team in refining our business development strategy to enhance our visibility, broaden our outreach, and ultimately, grow our new project pipeline. Lifecore’s strengths lie in the robustness of our quality management system, our decades of proven experience, and our unique ability to manage complex and viscous formulations. I am confident that as potential partners learn about these capabilities, they will recognize the exceptional value we offer to them and their patients.”
Financial Highlights for the Fourth Quarter of 2024
- Revenue of $37.9 million, reflecting a 21.6% increase 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 a net loss of $37.0 million year-over-year, which included a $23.7 million loss on debt extinguishment in the prior year period.
- Adjusted EBITDA of $10.4 million, excluding $1.6 million of stock-based compensation, compared to Adjusted EBITDA of $3.7 million, which excluded $0.8 million in stock-based compensation.
Financial Highlights for Fiscal Year 2024
- Revenue of $128.3 million, a 24.2% increase 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, excluding $6.2 million of stock-based compensation, compared to Adjusted EBITDA of $11.1 million.
Recent Corporate Developments
New Business Initiatives
- The Lifecore business development team has actively engaged with both potential and existing customers to promote expanded capacity, site visits, and opportunities to utilize isolator capabilities with virtual to large pharmaceutical companies.
- To enhance our focus on driving impactful new opportunities, Lifecore has bolstered its business development team and increased marketing expenditures.
Growth in Capabilities and Capacity
- The new 5-head isolator filler is anticipated to be GMP-ready, which will more than double the current theoretical capacity and significantly contribute to the previously disclosed 70 million units in theoretical capacity.
Financial Outlook for Fiscal 2025
Lifecore Biomedical is providing guidance for the full fiscal year 2025:
- Revenue: Expected to be between $126.5 million and $130 million.
- Adjusted EBITDA: Expected to range from $19 million to $21 million, with stock-based compensation anticipated to be between $9 million and $10 million during fiscal 2025.
- Capital Expenditures: Expected to be between $10 million and $14 million, excluding capitalized interest.
About Lifecore Biomedical
Lifecore Biomedical, Inc. is a fully integrated contract development and manufacturing organization (CDMO) that provides uniquely differentiated capabilities in the development, filling, and finishing of sterile injectable pharmaceutical products in syringes, vials, and cartridges, including complex formulations. With over 40 years of experience, Lifecore collaborates with global and emerging biopharmaceutical and biotechnology companies across various 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 concentrating on maximizing its base business, advancing its development portfolio, and attracting new business opportunities across its full 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 greatly enhance Lifecore's production capacity, fostering operational growth.
Who is the CEO of Lifecore Biomedical?
Paul Josephs serves as the president and chief executive officer of Lifecore Biomedical.
