Farmer Bros. Co. Reports Fiscal 2014 and Fourth Quarter Results
14% increase in coffee pounds processed and sold in fiscal 2014 versus fiscal 2013
Net income in fiscal 2014 was $12.1 million versus net loss of $8.5 million in fiscal 2013
Adjusted EBITDA in fiscal 2014 was $46.1 million versus $28.7 million in fiscal 2013
Effective pay-down of credit facility from $19.7 million at the end of fiscal 2013 to $78,000 at the end of fiscal 2014
TORRANCE, Calif.—(GLOBE NEWSWIRE)—September 9, 2014—Farmer Bros. Co. (NASDAQ: FARM) today reported financial results for the fourth quarter and fiscal year ended June 30, 2014.
Fiscal 2014 Highlights:
Net sales increased 2.8% to $528.4 million compared to fiscal 2013;
Gross profit increased 5.8% to $195.9 million compared to fiscal 2013;
Income from operations was $8.9 million compared to $0.4 million in fiscal 2013; and
Net income was $12.1 million, or $0.76 per diluted common share, compared to net loss of $8.5 million, or $0.54 per diluted common share, in fiscal 2013.
“There were several notable accomplishments in our fiscal 2014 and in our fourth quarter that reflect progress in our continued effort to turn around our Company,” said Mike Keown, Farmer Bros. President and CEO. “Our fiscal 2014 was the most profitable year in a decade with net income improving by $20.6 million versus fiscal 2013.” Mr. Keown continued, “In fiscal 2014 we processed and sold 11 million more pounds of coffee, up 14% versus fiscal 2013, and we saw our tea business return to growth." Keown added, "This growth has put pressure on our plants and machine refurbishment center primarily in the second half of the year indicating a need to improve our forecasting and inventory management. Additionally, in the fourth quarter, we completed the sale of a portion of our idled Los Angeles refurbishment facility which was closed in fiscal 2013, enabling us to record a $3.8 million gain.”
Fiscal 2014 Results
Net sales in fiscal 2014 increased $14.5 million, or 2.8%, to $528.4 million from $513.9 million in fiscal 2013, primarily due to increases in net sales of our roast and ground coffee products. The increase in net sales of roast and ground coffee products was primarily due to an increase in unit sales partially offset by a decline in average unit price driven by the pass-through of lower green coffee commodity purchase costs to our customers.
Gross profit in fiscal 2014 increased $10.7 million, or 5.8%, to $195.9 million from $185.2 million in fiscal 2013. Gross profit as a percentage of net sales increased 110 basis points to 37.1% from 36.0% in fiscal 2013. The increase in gross profit in terms of dollar and percentage was primarily due to the increase in net sales and a 14.2% decrease in the average cost of green coffee purchased in fiscal 2014.
Operating expenses in fiscal 2014 increased $2.2 million, or 1.2%, to $187.0 million from $184.8 million in fiscal 2013. Operating expenses as a percentage of net sales decreased 60 basis points to 35.4% versus 36.0% in fiscal 2013.
The following information was filed by Farmer Brothers Co (FARM) on Tuesday, September 9, 2014 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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