June 29, 2020 / 9:29 PM / 8 days ago

BRIEF-Landec Corp To Close Curation Foods' Underutilized Manufacturing Operations In Hanover, PA

June 29 (Reuters) - Landec Corp:

* PROVIDES UPDATE ON CURATION FOODS TRANSFORMATION AND ANNOUNCES PRELIMINARY FISCAL 2020 FOURTH QUARTER RESULTS

* Q4 REVENUE $156.1 MILLION VERSUS REFINITIV IBES ESTIMATE OF $151.1 MILLION

* DETERMINED TO CLOSE CURATION FOODS’ UNDERUTILIZED MANUFACTURING OPERATIONS IN HANOVER, PA

* LANDEC - TO CONSOLIDATE HANOVER OPERATIONS INTO MANUFACTURING FACILITIES IN GUADALUPE, CA & BOWLING GREEN, OH, TARGETED TO OCCUR BY SEPT 2020

* EXPECT PROCEEDS OF SALE OF HANOVER FACILITY BUILDING & ASSETS WILL BE USED TO PAY DOWN DEBT & STRENGTHEN BALANCE SHEET

* LANDEC - EXPECT STRATEGIC ACTIONS’ OUTCOME RELATED TO PROJECT SWIFT, OTHERS TO PROVIDE OPERATIONAL EFFICIENCY WITH ANNUALIZED COST SAVINGS OF ABOUT $11 MILLION

* PRELIMINARY Q4 CONSOLIDATED DILUTED NET LOSS PER SHARE OF $0.50 TO $0.60

* PRELIMINARY Q4 CONSOLIDATED ADJUSTED DILUTED NET INCOME PER SHARE OF $0.01 TO $0.06

* CURRENTLY EXPECTS TO REPORT ACTUAL RESULTS FOR FISCAL 2020 Q4 & FULL FISCAL YEAR BY EARLY AUG

* DUE TO IMPACTS OF COVID-19 PANDEMIC, CO WAS NOT IN COMPLIANCE WITH SOME COVENANTS RELATED TO SEVENTH AMENDMENT TO CREDIT AGREEMENT

* HAS BEEN GRANTED A LIMITED DEFAULT WAIVER FOR MONTH OF MARCH 2020

* IS IN DISCUSSIONS WITH CREDITORS TO OBTAIN A WAIVER THROUGH MAY 31, 2020

* AS OF MAY 31, 2020, $191.4 MILLION OF INDEBTEDNESS WAS OUTSTANDING UNDER CREDIT AGREEMENT, WHICH MATURES ON SEPT 23, 2021 Source text for Eikon: Further company coverage: (Reuters.Briefs@thomsonreuters.com)

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