Farmer Bros. Co. (NASDAQ: FARM) (the “Company”) today reported
financial results for its second fiscal quarter ended
December 31, 2022. The Company published its inaugural
quarterly shareholder letter, which contains a discussion on the
quarterly results and more details on the financial results and can
be found on the Company’s website at www.farmerbros.com under
“Investor Relations.”
Deverl Maserang, Chief Executive Officer,
commented, “We made solid progress in the quarter, delivering
continued double-digit sales growth and a slight increase in our
gross margin. We also saw improved Adjusted EBITDA as we held
operating costs in check despite the inflationary environment.”
“While our turnaround strategy has begun to
yield improved financial results, there have been several factors
that have impacted the business, including coffee pricing dynamics,
customer inventory, and purchasing adjustments. Despite these
headwinds, we're encouraged by our progress and are optimistic. Our
underlying cost structure has fundamentally improved, as has our
balance sheet, and we have seen continued sales growth momentum as
we build new revenue streams. We believe that the expected
favorable pricing environment in the coming quarters will lead to
meaningful improvement in our results. The strategy is in place,
and we are determined to show the benefits of our hard work as we
move through fiscal 2023 and into the next fiscal year.”
Investor Conference Call
The Company will host an audio-only investor
conference call today, February 8, 2023, at 5:00 p.m. Eastern time
(4:00 p.m. Central time) to briefly discuss the Company’s financial
results for the second fiscal quarter ended December 31, 2022. The
Company’s stockholder letter will be available on the Company’s
website at www.farmerbros.com under “Investor Relations” and filed
with the Securities and Exchange Commission.
The call will be open to all interested
investors through a live audio web broadcast via the Internet at
https://edge.media-server.com/mmc/p/ab6mt6ci and at the Company’s
website www.farmerbros.com under “Investor Relations.” The call
also will be available by phone to investors and analysts through
pre-registration. Callers who pre-register will be given dial-in
details and a unique PIN via email to gain immediate access to the
call and bypass the live operator. To pre-register, please go
here.
The audio-only webcast will be archived for at
least 30 days on the Investor Relations section of the Farmer Bros.
Co. website and will be available approximately two hours after the
end of the live webcast.
About Farmer Bros. Co.
Founded in 1912, Farmer Bros. Co. is a national
coffee roaster, wholesaler, equipment servicer and distributor of
coffee, tea and culinary products. The Company’s product lines
include organic, Direct Trade and sustainably-produced coffee. With
a robust line of coffee, hot and iced teas, cappuccino mixes,
spices, and baking/biscuit mixes, the Company delivers extensive
beverage planning services and culinary products to its U.S. based
customers. The Company serves a wide variety of customers, from
small independent restaurants and foodservice operators to large
institutional buyers like restaurant, department and convenience
store chains, hotels, casinos, healthcare facilities, and gourmet
coffee houses, as well as grocery chains with private brand coffee
and consumer branded coffee and tea products, and foodservice
distributors.
Headquartered in Northlake, Texas, Farmer Bros.
Co. generated net sales of $469.2 million in fiscal 2022. The
Company’s primary brands include Farmer Brothers®, Artisan
Collection by Farmer Brothers™, Superior®, Metropolitan™, China
Mist® and Boyds®.
Forward-Looking Statements
This press release and other documents we file
with the Securities and Exchange Commission (“SEC”) contain
forward-looking statements that are based on current expectations,
estimates, forecasts and projections about us, our future
performance, our financial condition, our products, our business
strategy, our beliefs and our management’s assumptions. In
addition, we, or others on our behalf, may make forward-looking
statements in press releases or written statements, or in our
communications and discussions with investors and analysts in the
normal course of business through meetings, webcasts, phone calls
and conference calls. These forward-looking statements can be
identified by the use of words like “anticipates,” “estimates,”
“projects,” “expects,” “plans,” “believes,” “intends,” “will,”
“could,” “may,” “assumes” and other words of similar meaning. These
statements are based on management’s beliefs, assumptions,
estimates and observations of future events based on information
available to our management at the time the statements are made and
include any statements that do not relate to any historical or
current fact. These statements are not guarantees of future
performance and they involve certain risks, uncertainties and
assumptions that are difficult to predict. Actual outcomes and
results may differ materially from what is expressed, implied or
forecast by our forward-looking statements due in part to the
risks, uncertainties and assumptions set forth in Part I, Item 1A
of our Annual Report on Form 10-K for the fiscal year ended June
30, 2022 filed with the SEC on September 2, 2022 (the “2022 Form
10-K”) as amended by Amendment No. 1 to the 2022 Form 10-K, filed
with the SEC on October 27, 2022, as well as other factors
described from time to time in our filings with the SEC.
Factors that could cause actual results to
differ materially from those in forward-looking statements include,
but are not limited to, severe weather, levels of consumer
confidence in national and local economic business conditions, the
impact of labor shortages, the increase of costs due to inflation,
an economic downturn caused by any pandemic, epidemic or other
disease outbreak, comparable or similar to COVID-19, the success of
our turnaround strategy, the impact of capital improvement
projects, the adequacy and availability of capital resources to
fund our existing and planned business operations and our capital
expenditure requirements, the relative effectiveness of
compensation-based employee incentives in causing improvements in
our performance, the capacity to meet the demands of our large
national account customers, the extent of execution of plans for
the growth of our business and achievement of financial metrics
related to those plans, our success in retaining and/or attracting
qualified employees, our success in adapting to technology and new
commerce channels, the effect of the capital markets as well as
other external factors on shareholder value, fluctuations in
availability and cost of green coffee, competition, organizational
changes, the effectiveness of our hedging strategies in reducing
price and interest rate risk, changes in consumer preferences, our
ability to provide sustainability in ways that do not materially
impair profitability, changes in the strength of the economy,
including any effects from inflation, business conditions in the
coffee industry and food industry in general, our continued success
in attracting new customers, variances from budgeted sales mix and
growth rates, weather and special or unusual events, as well as
other risks, uncertainties and assumptions described from time to
time in our filings with the SEC.
Given these risks and uncertainties, you should
not rely on forward-looking statements as a prediction of actual
results. Any or all of the forward-looking statements contained in
this press release and any other public statement made by us,
including by our management, may turn out to be incorrect. We are
including this cautionary note to make applicable and take
advantage of the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995 for forward-looking statements. We
expressly disclaim any obligation to update or revise any
forward-looking statements, whether as a result of new information,
future events, changes in assumptions or otherwise, except as
required under federal securities laws and the rules and
regulations of the SEC.
Contact:
Ellipsis IRInvestor.relations@farmerbros.com
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