LFCR Financial Analysis

Analysis Date: 1/27/2025

Business Model

Lifecore operates as a fully integrated contract development and manufacturing organization (CDMO), generating revenue primarily through sterile injectable pharmaceutical products and hyaluronic acid manufacturing

Revenue Sources

• CDMO services for pharmaceutical products
• Hyaluronic acid (HA) manufacturing

Revenue Distribution by Channel

• CDMO revenue: $36.3M (63.4% of total revenue for six months ended Nov 24, 2024)
• Related party revenue: $20.9M (36.6% of total revenue for six months ended Nov 24, 2024)

Income Statement Analysis

• Revenue increased 8% year-over-year to $32.6M
• Gross profit improved by 11.3% to $11.1M
• Operating loss widened by 32.1% to $2.0M

Balance Sheet Analysis

• Cash position improved with successful $24.3M equity financing
• Strengthened balance sheet through restructured credit facility with BMO

Capital Allocation

Company completed $24.3M private placement and restructured credit facility with BMO. Added new high-speed multi-purpose 5-head isolator filler to increase capacity.

Management Commentary

Successfully completed installation and qualification of high-speed multi-purpose 5-head isolator filler

Signed two new project agreements with new customers

Strengthened balance sheet through equity financing and credit facility restructuring

Overall Sentiment: Positive with focus on operational improvements and growth initiatives

Recommendation

Rating: Hold

Reason for Rating: While showing operational improvements and strategic progress, continued execution on growth initiatives needed

Disclaimer: This analysis is based on company filings and public information. It is for informational purposes only and not financial advice. Past performance does not guarantee future results.

Generated on: 1/27/2025, 1:56:05 PM