Posts 28% sales growth & 7th consecutive quarter of gross margin expansion

NORTHLAKE, Texas, May 05, 2022 (GLOBE NEWSWIRE) — Farmer Bros. Co. (NASDAQ: FARM) (the “Company”) today reported financial results for its third fiscal quarter ended March 31, 2022.

Third Quarter Fiscal 2022 Highlights:

  • Net sales were $119.4 million, an increase of $26.2 million, or 28.2%, from the prior year period due to continued improvement in direct-store-delivery (“DSD”) and Direct ship channels
  • Gross margin expanded for the seventh consecutive quarter to 29.8%, compared to 25.6% in the prior year period
  • Net loss improved to $4.0 million compared to a net loss of $13.7 million in the prior year period
  • Adjusted EBITDA of $5.0 million was the highest since the onset of COVID, and compares to a negative EBITDA of $0.8 million in the prior year period
  • As of March 31, 2022, total debt outstanding was $101.1 million, and cash and equivalents were $10.4 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, “Our 2022 fiscal third quarter performance demonstrated a continuation of strong sequential improvements driven by economic recovery and our business optimization efforts. We delivered our seventh consecutive quarter of gross margin expansion and achieved our highest adjusted EBITDA since the onset of the COVID-19 pandemic, which speaks to the execution against our strategy that we laid out two years ago. These efforts continue to improve the efficiency of our businesses, and despite the significant constraints posed by the pandemic, have put us in position to drive attractive performance gains as business conditions further recover throughout the 2022 calendar year.”

Third 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 nine months ended March 31, 2022 and 2021 (unaudited).

Three Months Ended March 31, Nine Months Ended March 31,
(In thousands, except per share data) 2022 2021 2022 2021
Income statement data:
Net sales $ 119,398 $ 93,152 $ 346,205 $ 294,993
Gross margin 29.8 % 25.6 % 29.5 % 24.6 %
Loss from operations $ (3,938 ) $ (10,395 ) $ (10,290 ) $ (32,004 )
Net loss (4,016 ) (13,684 ) (11,860 ) (37,680 )
Net loss available to common stockholders per common share-diluted $ (0.23 ) $ (0.78 ) $ (0.68 ) $ (2.17 )
Operating data:
Total Green Coffee pounds sold 18,798 18,026 58,466 60,366
Sold through DSD and Other 5,848 5,336 18,310 15,522
Sold through Direct Ship 12,950 12,690 40,156 44,844
EBITDA (1) $ 2,577 $ (4,800 ) $ 11,055 $ 3,391
EBITDA Margin (1) 2.2 % (5.2 )% 3.2 %