NORTHLAKE, Texas, May 08, 2018 (GLOBE NEWSWIRE) — Farmer Bros. Co. (NASDAQ:FARM) (the “Company”) today reported financial results for its third fiscal quarter ended March 31, 2018.

Third Quarter Fiscal 2018 Highlights:

  • Volume of green coffee processed and sold increased by 3.3 million pounds, reaching 27.7 million pounds, a 13.7% increase over the prior year period;
  • Gross profit increased $5.0 million to $58.8 million and gross margin decreased 170 basis points to 37.2% over the prior year period;
  • Net loss was $(3.9) million compared to net income of $1.6 million in the prior year period;
  • Adjusted EBITDA was $10.5 million compared to $12.2 million in the prior year period.*
  • SQF certification of new Northlake, Texas facility was completed during the quarter, with annual run-rate production levels of six million pounds expected by end of the fiscal year;
  • Continued executing integration plan related to the acquisition of substantially all of the assets of Boyd Coffee Company (“Boyd”); and
  • Completed deployment of Smart Touch selling platform to all of our DSD routes in April 2018.

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

“We continue to make meaningful progress in executing our strategy and working to leverage our solid platform for growth,” said Mike Keown, President and CEO. “While we did not achieve year-to-date results at the level we had initially projected to reach our Adjusted EBITDA objective for the fiscal year, we expect that our recently achieved SQF certification and the continued ramp-up of our state of the art Northlake, Texas facility will position us well to secure more national accounts. Further, we are pleased with the continued integration of the Boyd’s business, which remains on-track. Looking ahead, we continue to be focused on leveraging the investments we have made in our roasting facilities, expanding our distribution network, adding new customers, and increasing business with existing customers. Our pipeline remains robust and we believe that Farmer Brothers has the right foundation and strategy in place for long-term growth.”

Third Quarter Fiscal 2018 Results:

Selected Financial Data

The selected financial data presented below under the captions “Income statement data,” “Operating data” and “Balance sheet and other data” summarizes certain performance measures for the three and nine months ended March 31, 2018 and 2017 (unaudited).

Three Months Ended March 31, Nine Months Ended March 31,
2018 2017 2018 2017
(In thousands, except per share data)
Income statement data:
Net sales $ 157,927 $ 138,187 $ 457,006 $ 407,700
Gross margin 37.2 % 38.9 % 37.9 % 39.3 %
(Loss) income from operations $ (2,864 ) $ 2,058 $ (1,680 ) $ 40,473
Net (loss) income $ (3,908 ) $ 1,594 $ (23,655 ) $ 23,288
Net (loss) income per common share available to common stockholders-diluted $ (0.24 ) $ 0.10 $ (1.43 ) $ 1.39
Operating data:
Coffee pounds 27,732 24,393 80,031 72,211
Non-GAAP net (loss) income $ (3,362 ) $ 3,049 $ (21,035 ) $ 8,447
Non-GAAP net (loss) income per diluted common share $ (0.20 ) $ 0.17 $ (1.26 ) $ 0.50
EBITDA $ 4,688 $ 10,049 $ 21,855 $ 57,241
EBITDA Margin 3.0 % 7.3 % 4.8 % 14.0 %
Adjusted EBITDA $ 10,547 $ 12,180 $ 32,779 $ 34,345
Adjusted EBITDA Margin 6.7 % 8.8 % 7.2 % 8.4 %
Balance sheet and other data:
Capital expenditures related to maintenance $ 8,316 $ 6,421 $ 17,373 $ 19,780
Total capital expenditures $ 11,217 $ 13,503 $ 27,466 $ 62,150
Depreciation and amortization expense $ 7,397 $ 6,527 $