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SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 10-Q

 

ý

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the Fiscal Quarter Ended January 26, 2003,

 

or

 

o

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the Transition period from          to              .

 

Commission file number:  0-27446

 

LANDEC CORPORATION

(Exact name of registrant as specified in its charter)

 

California

 

94-3025618

(State or other jurisdiction of
incorporation or organization)

 

(IRS Employer
Identification Number)

 

 

 

3603 Haven Avenue
Menlo Park, California 94025

(Address of principal executive offices)

 

 

 

Registrant’s telephone number, including area code:

(650) 306-1650

 

 

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for at least the past 90 days.

 

Yes

ý

No

o

 

 

Indicate by check mark whether the registrant is an accelerated filer (as defined in Rule 12b-2 of the Exchange Act).

 

Yes

o

No

ý

 

 

As of March 3, 2003, there were 21,107,517 shares of Common Stock and 157,726 shares of Convertible Preferred Stock, convertible into ten shares of Common Stock for each share of Preferred Stock, outstanding.

 

 



 

LANDEC CORPORATION

 

FORM 10-Q For the Fiscal Quarter Ended January 26, 2003

 

INDEX

 

 

 

 

Facing sheet

 

 

 

Index

 

 

Part I.

Financial Information

 

 

Item 1.

a)                   Consolidated condensed balance sheets as of January 26, 2003 and October 27, 2002

 

 

 

b)                  Consolidated statements of operations for the three months ended January 26, 2003 and January 27, 2002

 

 

 

c)                   Consolidated statements of cash flows for the three months ended January 26, 2003 and January 27, 2002

 

 

 

d)                  Notes to consolidated financial statements

 

 

Item 2.

Management’s Discussion and Analysis of Financial Condition and Results of Operations

 

 

Item 3.

Quantitative and Qualitative Disclosures About Market Risk

 

 

Item 4.

Controls and Procedures

 

 

Part II.

Other Information

 

 

Item 1.

Legal Proceedings

 

 

Item 2.

Changes in Securities and Use of Proceeds

 

 

Item 3.

Defaults Upon Senior Securities

 

 

Item 4.

Submission of Matters to a Vote of Security Holders

 

 

Item 5.

Other Information

 

 

Item 6.

Exhibits and Reports on Form 8-K

 

 

 

a)                   Exhibits

 

 

 

b)                  Reports on Form 8-K

 

 

 

Signatures

 

3



 

PART I.  FINANCIAL INFORMATION

 

Item 1.  Financial Statements

 

LANDEC CORPORATION

CONSOLIDATED CONDENSED BALANCE SHEETS

(In thousands)

 

 

 

January 26,
2003

 

October 27,
2002

 

 

 

(Unaudited)

 

 

 

Assets

 

 

 

 

 

Current Assets:

 

 

 

 

 

Cash and cash equivalents

 

$

5,339

 

$

7,849

 

Restricted cash

 

2,382

 

1,032

 

Accounts receivable, less allowance for doubtful accounts of $837 and $1,022 at January 26, 2003 and October 27, 2002

 

14,722

 

19,040

 

Inventory

 

17,266

 

10,121

 

Investment in farming activities

 

700

 

1,591

 

Notes and advances receivable

 

2,720

 

3,645

 

Notes receivable, related party

 

 

751

 

Prepaid expenses and other current assets

 

2,097

 

2,456

 

Total Current Assets

 

45,226

 

46,485

 

 

 

 

 

 

 

Property and equipment, net

 

19,202

 

19,902

 

Goodwill

 

25,733

 

25,733

 

Other intangible assets, net

 

11,732

 

11,747

 

Notes receivable

 

1,465

 

1,132

 

Restricted cash, non-current

 

 

1,350

 

Other assets

 

296

 

1,454

 

 

 

 

 

 

 

 

 

$

103,654

 

$

107,803

 

 

 

 

 

 

 

Liabilities and Shareholders’ Equity

 

 

 

 

 

Current Liabilities:

 

 

 

 

 

Accounts payable

 

$

10,362

 

$

11,512

 

Grower payables

 

1,001

 

6,460

 

Related party payables

 

174

 

450

 

Accrued compensation

 

1,312

 

1,518

 

Other accrued liabilities

 

4,314

 

7,771

 

Deferred revenue

 

15,404

 

3,215

 

Lines of credit

 

8,134

 

10,098

 

Current maturities of long term debt

 

2,255

 

2,193

 

Total Current Liabilities

 

42,956

 

43,217

 

 

 

 

 

 

 

Long term debt, less current maturities

 

3,922

 

5,252

 

Other liabilities

 

1,544

 

1,791

 

Minority interest

 

1,158

 

1,580

 

Total Liabilities

 

49,580

 

51,840

 

 

 

 

 

 

 

Shareholders’ Equity:

 

 

 

 

 

Preferred stock

 

5,420

 

14,461

 

Common stock

 

110,098

 

100,802

 

Accumulated deficit

 

(61,444

)

(59,300

)

Total Shareholders’ Equity

 

54,074

 

55,963

 

 

 

 

 

 

 

 

 

$

103,654

 

$

107,803

 

 

See accompanying notes.

 

4



 

LANDEC CORPORATION

CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

(In thousands, except per share amounts)

 

 

 

Three Months Ended

 

 

 

January 26,
2003

 

January 27,
2002

 

Revenues:

 

 

 

 

 

Product sales

 

$

34,203

 

$

32,924

 

Services revenue

 

5,996

 

6,094

 

Service revenue, related party

 

454

 

780

 

License fees

 

272

 

427

 

Research, development and royalty revenues

 

200

 

121

 

Total revenues

 

41,125

 

40,346