XML 54 R16.htm IDEA: XBRL DOCUMENT v2.4.1.9
Note 11 - Business Segment Reporting
 6 Months Ended
Nov. 30, 2014
Notes to Financial Statements  
Segment Reporting Disclosure [Text Block]
1
1
.
Business Segment Reporting
 
The Company manages its business operations through three strategic business units. Based upon the information reported to the chief operating decision maker, who is the Chief Executive Officer, the Company has the following reportable segments
: the Food Products Technology segment, the Food Export segment and the Hyaluronan-based Biomaterials segment.
 
The Food Products Technology segment markets and packs specialty packaged whole and fresh-cut fruit and vegetables, the majority of which incorporate the BreatheWay specialty packaging for the retail grocery, club store and food services industry. In addition, the Food Products Technology segment sells BreatheWay packaging to partners for non-vegetable products. The Food Export segment consists of revenues generated from the purchase and sale of primarily whole commodity fruit and vegetable products to Asia and domestically. The HA-based Biomaterials segment sells products utilizing hyaluronan, a naturally occurring polysaccharide that is widely distributed in the extracellular matrix of connective tissues in both animals and humans, for medical use primarily in the Ophthalmic, Orthopedic and Veterinary markets. Corporate licenses Landec’s patented Intellicoat seed coatings to the farming industry and licenses the Company’s Intelimer polymers for personal care products and other industrial products. The Corporate segment also includes general and administrative expenses, non-Food Products Technology and non HA-based Biomaterials interest income and income tax expenses. All of the assets of the Company are located within the United States of America.
 
 
The Company’s international sales were as follows (in millions):
 
   
Three Months Ended
    
Six Months Ended
  
   
November 30,
    
November 24,
    
November 30,
    
November 24,
  
   
2014
    
2013
    
2014
    
2013
  
Canada
   $ 17.5     $ 10.2     $ 35.2     $ 19.6  
Taiwan
   $ 9.4     $ 12.6     $ 25.6     $ 24.6  
China
   $ 2.9     $ 3.7     $ 7.3     $ 5.3  
Indonesia
   $ 4.9     $ 2.4     $ 6.5     $ 4.9  
Japan
   $ 2.3     $ 2.1     $ 5.1     $ 5.3  
Belgium
   $ —     $ 0.8     $ —     $ 2.0  
All Other Countries
   $ 4.6     $ 4.9     $ 8.3     $ 10.2  
 
Operations by segment consisted of the following (in thousands):
 
Three Months Ended Nov. 30, 2014
  
Food Products Technology
    
Food Export
    
HA-based Biomaterials
    
Corporate
   
TOTAL
  
Net sales
   $ 102,079     $ 22,106     $ 8,318     $ 162     $ 132,665  
International sales
   $ 17,760     $ 22,106     $ 1,734     $ —     $ 41,600  
Gross profit
   $ 11,151     $ 1,550     $ 2,804     $ 161     $ 15,666  
Net income (loss)
   $ 3,644     $ 582     $ (12 )   $ (991 )   $ 3,223  
Depreciation and amortization
   $ 1,237     $ 1     $ 561     $ 31     $ 1,830  
Dividend income
   $ 321     $ —     $ —     $ —     $ 321  
Interest income
   $ 15     $ —     $ 67     $ 9     $ 91  
Interest expense
   $ 425     $ —     $ 47     $ —     $ 472  
Income tax expense
  $ 440     $ 95     $ (2 )   $ 1,252     $ 1,785  
                                         
Three Months Ended Nov. 24, 2013
                                        
Net sales
   $ 88,090     $ 23,031     $ 8,777     $ 128     $ 120,026  
International sales
   $ 10,345     $ 22,940     $ 3,366     $ —     $ 36,651  
Gross profit
   $ 8,220     $ 1,820     $ 3,625     $ 69     $ 13,734  
Net income (loss)
   $ 2,005     $ 727     $ 611     $ 108     $ 3,451  
Depreciation and amortization
   $ 1,304     $ 1     $ 604     $ 36     $ 1,945  
Dividend income
   $ 281     $ —     $ —     $ —     $ 281  
Interest income
   $ 2     $ —     $ 44     $ —     $ 46  
Interest expense
   $ 356     $ —     $ 80     $ —     $ 436  
Income tax expense
  $ 1,461     $ 205     $ 172     $ 36     $ 1,874  
                                         
Six Months Ended Nov. 30, 2014
                                        
Net sales
   $ 202,185     $ 48,703     $ 15,129     $ 262     $ 266,279  
International sales
   $ 35,911     $ 48,693     $ 3,368     $ —     $ 87,972  
Gross profit
   $ 23,005     $ 2,736     $ 3,852     $ 261     $ 29,854  
Net income (loss)
   $ 7,290     $ 853     $ (1,554 )   $ (1,013 )   $ 5,576  
Depreciation and amortization
   $ 2,247     $ 2     $ 1,032     $ 62     $ 3,343  
Dividend income
   $ 602     $ —     $ —     $ —     $ 602  
Interest income
   $ 26     $ —     $ 138     $ 20     $ 184  
Interest expense
   $ 763     $ —     $ 92     $ —     $ 855  
Income tax expense
  $ 1,310     $ 139     $ (253 )   $ 1,890     $ 3,086  
                                         
Six Months Ended Nov. 24, 2013
                                        
Net sales
   $ 167,526     $ 44,430     $ 17,363     $ 186     $ 229,505  
International sales
   $ 19,823     $ 44,329     $ 7,743     $ —     $ 71,895  
Gross profit
   $ 17,101     $ 3,025     $ 6,013     $ 127     $ 26,266  
Net income (loss)
   $ 9,271     $ 1,003     $ 235     $ (2,306 )   $ 8,203  
Depreciation and amortization
   $ 2,526     $ 2     $ 1,188     $ 71     $ 3,787  
Dividend income
   $ 563     $ —     $ —     $ —     $ 563  
Interest income
   $ 5     $ —     $ 100     $ —     $ 105  
Interest expense
   $ 732     $ —     $ 135     $ —     $ 867  
Income tax expense
  $ 1,966     $ 283     $ 66     $ 2,034     $ 4,349  
 
During the six months ended November 30, 2014 and November 24, 2013, sales to the Company’s top five customers accounted for 44% and 43%, respectively, of revenues. The Company’s top two customers, Costco Wholesale Corporation and Wal-Mart Stores, Inc., from the Food Products Technology segment accounted for 20% and 11% of revenues, respectively, for the six months ended November 30, 2014 and 20% and 11% of revenues, respectively, for the six months ended November 24, 2013. The Company expects that, for the foreseeable future, a limited number of customers may continue to account for a significant portion of its net revenues.