NORTHLAKE, Texas, Feb. 03, 2022 (GLOBE NEWSWIRE) — Farmer Bros. Co. (NASDAQ: FARM) (the “Company”) today reported financial results for its second fiscal quarter ended December 31, 2021.
Second Quarter Fiscal 2022 Highlights:
- Net sales were $118.4 million, an increase of $13.9 million, or 13.3%, from the prior year period due to continued improvement in the direct-store-delivery (“DSD”) channel compared to the prior year period
- Gross margin increased to 29.5% compared to 25.1% in the prior year period
- Net loss was $5.4 million compared to a net loss of $17.7 million in the prior year period
- Adjusted EBITDA was $4.5 million compared to $8.3 million in the prior year period; the prior period included approximately $7.2 million in Adjusted EBITDA benefiting from higher amortized gains resulting from the curtailment of the postretirement medical plan.*
- As of December 31, 2021, total debt outstanding was $91.0 million and cash and cash equivalents were $3.6 million
(*Adjusted EBITDA, a non-GAAP financial measure, is reconciled to its corresponding GAAP measure at the end of this press release.)
Deverl Maserang, Chief Executive Officer, commented, “We saw further improvement across our business during the second fiscal quarter, highlighted by continued sequential growth in our sales trends. Our second fiscal quarter marked the sixth quarter of sequential improvement in our DSD sales, and we ended the quarter with average weekly DSD sales down 17% compared to pre-COVID levels, representing improvement from down 25% in the prior period and down 40% from one year ago. Our gross margin expanded sequentially and was up 4.4% over last year’s fiscal second quarter. Amid ongoing uncertainty related to the pandemic including inflationary headwinds, labor challenges and higher coffee prices, we are continuing to drive improvements across the business while managing costs closely. Overall, we are encouraged by what we believe is a strong opportunity to unlock underlying operating leverage as sales volumes continue to normalize.”
Second Quarter Fiscal 2022 Results:
Selected Financial Data
The selected financial data presented below under the captions “Income statement data,” “Operating data” and “Other data” summarizes certain performance measures for the three and six months ended December 31, 2021 and 2020 (unaudited).
| Three Months Ended December 31, | Six Months Ended December 31, | |||||||||||||||
| (In thousands, except per share data) | 2021 | 2020 | 2021 | 2020 | ||||||||||||
| Income statement data: | ||||||||||||||||
| Net sales | $ | 118,445 | $ | 104,571 | $ | 226,807 | $ | 201,841 | ||||||||
| Gross margin | 29.5 | % | 25.1 | % | 29.3 | % | 24.1 | % | ||||||||
| Loss from operations | $ | (4,572 | ) | $ | (10,164 | ) | $ | (6,352 | ) | $ | (21,610 | ) | ||||
| Net loss | (5,420 | ) | (17,725 | ) | (7,844 | ) | (23,997 | ) | ||||||||
| Net loss available to common stockholders per common share-diluted | $ | (0.31 | ) | $ | (1.02 | ) | $ | (0.45 | ) | $ | (1.39 | ) | ||||
| Operating data: | ||||||||||||||||
| Total Green Coffee pounds sold | 19,793 | 21,407 | 39,669 | 42,340 | ||||||||||||
| Sold through DSD and Other | 6,298 | 5,413 | 12,462 | 10,186 | ||||||||||||
| Sold through Direct Ship | 13,495 | 15,994 | 27,207 | 32,154 | ||||||||||||
| EBITDA (1) | $ | 2,389 | $ | 5,288 | $ | 8,478 | $ | 8,191 | ||||||||
| EBITDA Margin (1) | < | |||||||||||||||