Lifecore Biomedical, Inc. Q3 FY2023 earnings call

• Executed an enhanced supply agreement with Alcon and completed debt restructuring, clearing the Going Concern qualification and creating a more stable business model.
• Sold the remaining Curation Foods segment business, transitioning Lifecore to a standalone CDMO.
• Q3 Lifecore segment revenue and adjusted EBITDA were consistent with expectations, reflecting customer commercial launch timing shifts.
• New agreements with Alcon expand capacity and stability, including an enhanced supply deal and debt restructuring.
• Development portfolio has 24 active projects, shifting toward early-stage lower revenue projects.
• Invested in isolator fillers to double theoretical capacity to ~45 million units, aiding in meeting customer needs.

In the fiscal '23 third quarter, Lifecore segment revenue was $26.3 million and segment adjusted EBITDA was $3 million. The CDMO business saw a 28% decrease in revenue, and the HA raw material manufacturing business had a 15% decrease. The Lifecore segment contributed the majority of the revenue.

• No formal guidance for fiscal 2023, but expects sequential improvement in Q4, with Lifecore segment adjusted EBITDA expected to double Q3 results.
• Timing impacts from project commercialization delays are expected to persist through Q1 FY '24 before returning to normalized levels seen in FY '22.

• Inflationary pressures with pricing lagging cost increases due to customer contractual limitations.
• Prior aggressive lenders under Going Concern qualification, which were addressed through the refinancing with Alcon.

Q: A: Q: A: Since management will not be conducting a live Q&A session on today's call, there are no Q&A exchanges recorded.