Farmer Bros. Co. Reports Third Quarter Fiscal 2013 Results
Third Quarter Fiscal 2013 Operating Income Improved $3.5 Million Compared to the Same Quarter of Last Fiscal Year
TORRANCE, Calif.--(GLOBE NEWSWIRE)—May 6, 2013--Farmer Bros. Co. (NASDAQ: FARM), a manufacturer, wholesaler and distributor of coffee, tea and culinary products, today reported financial results for the three and nine months ended March 31, 2013.
Fiscal Third Quarter Results
Net sales for the third quarter of fiscal 2013 increased $4.8 million, or 4%, to $126.3 million as compared to $121.5 million in the third quarter of the prior fiscal year. The increase was primarily due to increases in sales of the Company's coffee and tea products.
Gross profit in the third quarter of fiscal 2013 increased $5.6 million, or 13%, to $48.7 million, as compared to $43.1 million in the third quarter of the prior fiscal year. Gross profit in the third quarter of fiscal 2013 included the expected beneficial effect of the liquidation of LIFO inventory quantities in the amount of $0.2 million as compared to $2.2 million in the third quarter of the prior fiscal year. Gross margin increased to 39% in the third quarter of fiscal 2013 from 36% in the third quarter of the prior fiscal year. This gross margin increase is primarily due to a 29% lower average cost of green coffee beans purchased compared to the same period in the prior fiscal year.
Operating expenses in the third quarter of fiscal 2013 increased $2.0 million, or 4.3%, to $49.3 million from $47.3 million in the third quarter of the prior fiscal year. Third quarter operating expenses were 39% of sales, consistent with the third quarter operating expenses of the prior fiscal year. Operating expenses in the third quarter of fiscal 2013 included higher expenses resulting from the Company's investments in additional sales and marketing training, expenses related to the launch of the Artisan Collection by Farmer Brothers™ and the new Farmer Brothers teas, and higher expenses related to severance.
Third quarter fiscal 2013 operating income improved $3.5 million to an operating loss of $(0.6) million as compared to an operating loss of $(4.1) million in the third quarter of the prior fiscal year.
"We are pleased with our third quarter financial performance, in terms of our 4% revenue growth over the third quarter of the prior fiscal year and also our gross margin level of 39%, which was almost a 300 basis point improvement over the third quarter of the prior fiscal year," stated Michael Keown, Farmer Bros. President and Chief Executive Officer. Mr. Keown continued “This top-line growth and margin expansion in the quarter has allowed us to make further strategic investments in our sales team capabilities and in new product initiatives. Early customer feedback on the improvements to our tea products and re-branding
The following information was filed by Farmer Brothers Co (FARM) on Tuesday, May 7, 2013 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-K Annual Report statement of earnings and operation as management may choose to highlight particular information in the press release.
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Ticker: FARM CIK: 34563 Form Type: 10-K Annual Report Accession Number: 0000034563-13-000038 Submitted to the SEC: Wed Oct 09 2013 5:12:11 PM EST Accepted by the SEC: Wed Oct 09 2013 Period: Sunday, June 30, 2013 Industry: Miscellaneous Food Preparations And Kindred Products