Farmer Brothers Co (FARM) 10-K Annual Report September 2023

NORTHLAKE, Texas, Sept. 12, 2023 – Farmer Brothers (NASDAQ: FARM) today reported its fiscal fourth quarter and full year 2023 financial results for the period ended June 30, 2023. The company filed its 10-K and published its quarterly shareholder letter, which contains additional details regarding the results and can be found on the investor relations section of the company’s website.

“Farmer Brothers ended a challenging fiscal 2023 on a strong note, including the strategic divestiture of our direct ship customers and early signs of improved pricing and margins late in the fourth quarter,” said Farmer Brothers Chief Executive Officer Deverl Maserang. “The company enters fiscal 2024 with our full focus on a revitalized direct store delivery (DSD) business, a stronger balance sheet and a favorable coffee pricing environment. Adding to our confidence are the early results of our new AI-driven pricing engine, which is delivering early, demonstrable margin improvement and solid initial traction with key future growth initiatives. While transitional impacts from the divestiture and our DSD reorganization will impact the first quarter of fiscal 2024 profitability, we are making steady progress toward an inflection to positive free cash flow in the coming quarters.”

Investor Conference Call

The company will also host an audio-only investor conference call today, Sept. 12, 2023, at 5 p.m. Eastern to review its financial results for the fourth quarter and full year 2023 ended June 30, 2023.

Interested parties may access the webcast via the investor relations section of the Farmer Brothers’ website. Participants who pre-register will receive an email with dial-in information, allowing them to bypass the live operator. A replay of the webcast will be available shortly after and for at least 30 days on the investor relations section of the Farmer Brothers’ website.

A copy of the company’s 10-K and corresponding shareholder letter are also available on the investor relations section of the company’s website, as well as the Securities and Exchange Commission’s website at sec.gov.

About Farmer Brothers

Founded in 1912, Farmer Brothers 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, Farmer Brothers delivers extensive beverage planning services and culinary products to its U.S.-based customers. It serves a wide variety of customers, from small independent restaurants and foodservice operators to large institutional buyers, such as 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.

The company’s primary brands include Farmer Brothers, Artisan Collection by Farmer Brothers, Superior, Metropolitan, China Mist and Boyd’s.

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, our management’s assumptions, the search for a successor CEO and the anticipated benefits to the Company as a result of the CEO transition, including the expected results following the transition. These forward-looking statements can be identified by the use of words such as, “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

The following information was filed by Farmer Brothers Co (FARM) on Tuesday, September 12, 2023 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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Inside Farmer Brothers Co's 10-K Annual Report:

Other - Other Highlight
Critical Accounting Estimates We consider an accounting estimate to be critical if: (1) the accounting estimate requires us to make assumptions about matters that were highly uncertain at the time the accounting estimate was made, and (2) changes in the estimate that are reasonably likely to occur from period to period, or use of different estimates that we reasonably could have used in the current period, would have a material impact on our financial condition or results of operations.

Financial - Expense Highlight
In general, increases in the price of green coffee could cause our cost of goods sold to increase and, if not offset by product price increases, could negatively affect our financial condition and results of operations.
Financial - Income Highlight
"Adjusted EBITDA" is defined as loss from continuing operations excluding the impact of: income tax benefit; interest expense; depreciation and amortization expense; 401(k), ESOP and share-based compensation expense; gain on Settlement with Boyd's sellers; net gains from sales of assets; strategic initiatives; severance costs; impairment of fixed assets; costs associated with the COVID-19 pandemic; severe weather event; and postretirement benefits gains curtailment and pension settlement charge.
Financial - Expense Highlight
The increase in selling expenses during fiscal 2023 was primarily due to increased headcount and other payroll-related costs and the inclusion of a one time sales tax refund in fiscal 2022.
Financial - Cash Flow
Cash Flows The significant captions...Read more
Financial - Expense
These potential differences may be...Read more
Financial - Shares
Financial Data Highlights (in thousands,...Read more
Financial - Expense
The increase in interest expense...Read more
Financial - Expense
The decrease in interest expense...Read more
Financial - Earnings
The change was driven by...Read more
Financial - Earnings
We also present EBITDA and...Read more
Other - Other
Master Agreement ("ISDA") effective March...Read more
Financial - Expense
The increase in selling expenses...Read more
Other - Other
In fiscal 2023, Other, net...Read more
Other - Other
In addition, in June 2021,...Read more
Financial - Earnings
Gross margin increased 5.5% to...Read more
Financial - Expense
The 2021 tax expense is...Read more
Other - Other
Single Employer Pension Plan The...Read more
Financial - Expense
The expansionary capital spending reductions...Read more
Revenue - Product
Our success is dependent upon...Read more
Financial - Earnings
The increase in gross profit...Read more
Other - Other
Further, management utilizes these measures,...Read more
Financial - Expense
Operating Expenses In fiscal 2023,...Read more
Revenue - Product
Our product categories consist of...Read more
Revenue - Product
The increase in net sales...Read more
Financial - Expense
Operating Expenses In fiscal 2022,...Read more
Financial - Earnings
The ability to attract and...Read more
Financial - Expense
Upon termination of this plan...Read more
Financial - Expense
Interest expense in fiscal 2022...Read more
Financial - Expense
The decrease in general and...Read more
Other - Other
The decrease in Other, net,...Read more
Other - Other
At June 30, 2023, we...Read more
Financial - Expense
Interest expense in fiscal 2023...Read more
Financial - Earnings
Gross margin decreased 8.8% to...Read more
Other - Other
Recent Accounting Pronouncements Refer to...Read more
Revenue - Product
Summary Overview of Fiscal 2023...Read more
Revenue - Product
_____________ NM - Not Meaningful...Read more
Revenue - Product
Fiscal 2022 and Fiscal 2021...Read more
Financial - Earnings
Gross Profit Gross profit in...Read more
Financial - Debt
The following table summarizes the...Read more
Financial - Expense
The increase in selling expenses...Read more
Revenue - Product
The following table presents the...Read more
Other - Other
In light of our financial...Read more
Other - Other
With Revive, we offer our...Read more
Financial - Expense
Set forth below is a...Read more
Financial - Cash Flow
At June 30, 2023, approximately...Read more
Financial - Cash Flow
At June 30, 2022, approximately...Read more
Revenue - Product
We are focused on leveraging...Read more
Other - Other
We purchase over-the-counter coffee derivative...Read more
Financial - Income
Income Taxes In fiscal 2023,...Read more
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On our sales, average unit...Read more

Financial Statements, Disclosures and Schedules

Inside this 10-K Annual Report

Material Contracts, Statements, Certifications & more

Farmer Brothers Co provided additional information to their SEC Filing as exhibits

Exhibit 4.1: Instruments Defining The Rights Of Security Holders, Including Indentures

Exhibit 10.24: Material Contract

Exhibit 10.29: Material Contract

Exhibit 10.30: Material Contract

Exhibit 10.34: Material Contract

Exhibit 23.1: Consents Of Experts And Counsel

Exhibit 23.2: Consents Of Experts And Counsel

Exhibit 31.1: Rule 13A-14(A)/15D-14(A) Certification

Exhibit 31.2: Rule 13A-14(A)/15D-14(A) Certification

Exhibit 32.1: Section 1350 Certification

Exhibit 32.2: Section 1350 Certification

Exhibit 97.1: Ex-97.1

Ticker: FARM
CIK: 34563
Form Type: 10-K Annual Report
Accession Number: 0000034563-23-000067
Submitted to the SEC: Tue Sep 12 2023 5:08:08 PM EST
Accepted by the SEC: Tue Sep 12 2023
Period: Friday, June 30, 2023
Industry: Miscellaneous Food Preparations And Kindred Products