Farmer Bros.: Reports Q3 Fiscal 2018 Financial Results

Northlake / TX. (fbc) Farmer Bros. Company reported financial results for its third fiscal quarter ended March 31, 2018 in May. 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 percent increase over the prior year period;
• Gross profit increased USD 5.0 million to USD 58.8 million and gross margin decreased 170 basis points to 37.2 percent over the prior year period;
• Net loss was USD (3.9) million compared to net income of USD 1.6 million in the prior year period;
• Adjusted Ebitda was USD 10.5 million compared to USD 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; and
• Completed deployment of Smart Touch selling platform to all of our DSD routes in April 2018.

«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.»