NORTHLAKE, Texas, Sept. 10, 2020 (GLOBE NEWSWIRE) — Farmer Bros. Co. (NASDAQ: FARM) (the “Company”) today reported financial results for its fourth quarter and fiscal year ended June 30, 2020.

Fourth Quarter Fiscal 2020 Highlights:

  • Volume of green coffee processed and sold decreased by 7.7 million pounds to 19.7 million pounds, a 28.0% decrease compared to the prior year period ended June 30, 2019, partially due to the impact of the COVID-19 pandemic (“COVID-19”) discussed below;
    • Green coffee pounds processed and sold through our DSD network were 5.4 million, or 27.5% of total green coffee pounds processed and sold; and
    • Direct ship customers represented 14.3 million, or 72.5%, of total green coffee pounds processed and sold.
  • Net sales were $81.1 million, a decrease of $61.0 million, or 42.9%, from the prior year period;
  • Gross margin decreased to 19.2% from 26.6% in the prior year period;
  • Operating expenses decreased to $29.1 million from $44.7 million in the prior year period, an increase as a percentage of sales to 35.9% from 31.5% in the prior year period;
  • Net loss was $9.7 million compared to net loss of $8.8 million in the prior year period;
  • Adjusted EBITDA was $0.7 million compared to $3.9 million in the prior year period;* and
  • As of June 30, 2020, the total debt outstanding was $122.0 million and cash and cash equivalents was $60.0 million compared to $92.0 million and $7.0 million, respectively, in the prior year period.

Fiscal 2020 Highlights:

  • Volume of green coffee processed and sold decreased by 7.4 million pounds to 100.7 million pounds, a 6.8% decrease over the prior year ended June 30, 2019, partially due to the impact of the COVID-19 pandemic discussed below;
    • Green coffee pounds processed and sold through our DSD network were 31.0 million, or 30.8% of total green coffee pounds processed and sold; and
    • Direct ship customers represented 69.7 million, or 69.2%, of total green coffee pounds processed and sold.
  • Net sales were $501.3 million, a decrease of $94.6 million, or 15.9%, from the prior year;
  • Gross margin decreased to 27.6% from 30.1% in the prior year;
  • Operating expenses decreased to $181.1 million from $193.8 million in the prior year period, and as percentage of sales, inclusive of a $42.0 million intangible asset impairment charge, increased to 36.1% from 32.5% in the prior year;
  • Net loss was $37.1 million compared to net loss of $73.6 million in the prior year; and
  • Adjusted EBITDA was $18.7 million compared to $31.9 million in the prior year.*

(*Adjusted EBITDA, a non-GAAP financial measure, is reconciled to its corresponding GAAP measure at the end of this press release.)

Deverl Maserang, President and CEO said, “I’m proud of the way Farmer Brothers has continued to make good progress in executing our turnaround strategy during the fourth quarter, despite the challenges associated with the COVID-19 environment. We continued to focus on three priorities including: protecting the health and safety of our employees and customers; preserving liquidity and supporting the long-term sustainability of our business; and pivoting our business to accelerate certain operating initiatives. We successfully exceeded our previously announced targeted expense savings of approximately $6.5 million per month during the quarter and we have continued to actively manage costs as areas of the business partially return to pre-pandemic sales levels. Further, our recently announced credit facility amendment provides us with increased flexibility to proactively manage our liquidity and working capital – supporting continued execution of key strategic initiatives through what remains an uncertain business environment – while maintaining compliance with our debt financial covenants. Moving forward, we continue to take steps to enhance our operational and financial strength and ensure our long-term sustainability, while focusing on executing on our key strategic initiatives.”

Fourth Quarter and Fiscal 2020 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 months and fiscal years ended June 30, 2020 and 2019 (unaudited).

Three Months Ended
June 30,		 Fiscal Year Ended June 30,
2020 2019 2020 2019
(In thousands, except per share data)
Income statement data:
Net sales $ 81,083 $ 142,050 $ 501,320 $ 595,942
Gross margin 19.2 % 26.6 % 27.6 % 30.1 %
Loss from operations $ (13,595 ) $ (7,024 ) $ (43,002 ) $ (14,702 )
Net loss $ (9,718 ) $ (8,760 ) $ (37,087 ) $ (73,595 )
Net loss available to common stockholders per common share-diluted $ (0.57 ) $ (0.52 ) $ (2.19 ) $ (4.36 )
Operating data:
Coffee pounds 19,706 27,379 100,700 108,098
EBITDA (1) $ 184 $ 1,508 $ (1,796 ) $ 3,617
EBITDA Margin (1) 0.2 % 1.1 % (0.4 )% 0.6 %
Adjusted EBITDA (1) $ 713 $ 3,937 $ 18,742 $ 31,882
Adjusted EBITDA Margin (1) 0.9 % 2.8 % 3.7 % 5.3 %
Other data:
Capital expenditures related to maintenance $ 1,223 $ 4,087 $ 11,845 $ 21,088
Total capital expenditures $ 4,446 $ 4,366 $ 17,560 $ 34,759
Depreciation and amortization expense $ 7,352 $ 7,835 $ 29,896 $