Financial Data and Key Metrics Changes - Sales increased slightly year-over-year and rose 6% compared to the first quarter of 2025, reaching $90 million [6][19] - Gross margins were maintained above 43%, with a gross margin of 43.1% for the quarter, up 270 basis points from 40.4% in the same quarter last year [7][21] - Adjusted EBITDA for the quarter was $5.9 million, a year-over-year increase of $3.6 million and a sequential increase of $4.5 million [20][19] - Operating expenses were $37.8 million, or 42% of net sales, compared to $31.7 million, or 35.4% of net sales, in the same quarter last year [24] - Net income for the quarter was $0.2 million, down from $2.7 million in the second quarter of fiscal 2024 [25] Business Line Data and Key Metrics Changes - Allied products, which include teas and other beverages, accounted for approximately half of total sales, helping to protect gross margins during volatile market conditions [14] - Coffee volumes were down 8% year-over-year, primarily due to customer count degradation and lower consumer spending [13] Market Data and Key Metrics Changes - The company experienced customer attrition during the second quarter, impacting overall coffee volumes [13] - The macroeconomic environment remains challenging, with high prices and volatility in commodity markets affecting the industry [15][17] Company Strategy and Development Direction - The company is focused on driving customer and volume growth while optimizing operations, with a new premium coffee program partnership announced [8] - A comprehensive SKU rationalization and brand pyramid project is expected to be completed by the end of the fiscal third quarter, aimed at creating operational efficiencies [11][12] - The company is enhancing its leadership team to improve business development and operational capabilities [9][10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's improved financial position and ability to navigate market challenges, emphasizing a proactive approach to pricing and inventory management [28][91] - The company is optimistic about long-term growth potential despite current market volatility [30][35] Other Important Information - The company achieved positive free cash flow for the first time in many years, with free cash flow of $0.5 million for the quarter [27] - The company is launching a B2B web-based ordering platform to enhance customer convenience and product penetration [74][75] Q&A Session Summary Question: Can you elaborate on the sales strategy with the new hire? - Management highlighted the excitement around the new VP of Sales, Brian Miller, who is expected to revitalize business development efforts and optimize the sales process [41][42] Question: What is the current status of operational optimization? - Management indicated they are in early to mid-innings of optimizing operations, with significant potential remaining in the existing customer base [46][49] Question: How material is the Urest partnership? - Management described the Urest partnership as a meaningful opportunity, emphasizing their capability to provide high-quality production and sourcing [68][69] Question: What are the plans for the direct-to-consumer e-commerce platform? - Management discussed the alignment of existing brands and the launch of a B2B web-based ordering platform, which will enhance customer engagement and product awareness [72][74] Question: How does the company plan to manage price increases in the current market? - Management acknowledged the volatility in coffee prices and expressed confidence in their proactive pricing strategies to maintain margins [88][94]

Farmer Brothers (FARM) came out with quarterly earnings of $0.06 per share, beating the Zacks Consensus Estimate of a loss of $0.12 per share. This compares to loss of $0.10 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 150%. A quarter ago, it was expected that this coffee and tea company would post a loss of $0.23 per share when it actually produced a loss of $0.24, delivering a surprise of -4.35%.Over the last four quarter ...

Financial Data and Key Metrics Changes - The first quarter showed solid sales growth with net sales increasing by $85.1 million, a nearly 4% increase compared to the same period last year [12] - Adjusted EBITDA for the quarter was positive at $1.4 million, an improvement of $1.9 million year over year from a loss of $0.5 million [11] - Gross margin increased by 630 basis points year over year to 43.9%, compared to 37.6% in the first quarter of last year [11] - Operating expenses were $40.1 million, or 47.2% of net sales, compared to $32.9 million, or 40.1% of net sales, in the first quarter of last year [12] - The net loss for the quarter was $5 million, compared to a net loss of $1.6 million in the first quarter of last year [13] - Cash flow from operating activities improved to positive $2.5 million, representing a $9.6 million improvement compared to negative $7.1 million in the first quarter of last year [13][14] Business Line Data and Key Metrics Changes - The Brand Pyramid initiative has led to a refresh of the premium Boyd's coffee brand, which is now positioned as the premier nationwide coffee offering [5][6] - The company is working on a new specialty tier brand to be announced soon, marking a reintroduction into the specialty coffee space [6] Market Data and Key Metrics Changes - The company is navigating volatility in coffee markets and changes in consumer behaviors, with a focus on optimizing commodity purchasing and inventory management [9] - Customer retention has stabilized due to improved execution by the restructured sales force [8] Company Strategy and Development Direction - The company is focused on customer growth, adding density across existing DSD routes, and selling additional products to existing customers to generate additional revenue [16] - The strategy includes optimizing routes and improving product penetration within the existing customer base [28] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the initiatives put in place and operational improvements made throughout fiscal 2024 to navigate macroeconomic headwinds [9][14] - The company does not expect financial results to be linear quarter to quarter but remains focused on building a solid foundation for sustainable value creation [14] Other Important Information - The company has achieved five consecutive quarters of improved cash from operating activities [14] - Management acknowledged the current volatility in coffee commodity markets and the macroeconomic environment [14] Q&A Session Summary Question: Growth and density in routes and churn - Management noted a positive trend in customer retention despite industry headwinds, with churn levels better than anticipated [21][22] Question: Addressing out of stock issues - The company has resolved out of stock issues through SKU rationalization and careful customer communication [26] Question: Growth from new routes or adjusting routes - The focus is on optimizing existing routes rather than adding new ones, with an emphasis on improving utilization [27] Question: Impact of new specialty coffee brand on financials - The new specialty brand is expected to transition existing volume and create incremental revenue opportunities [40][41] Question: Incremental opportunities with Boyd's brand - There are opportunities for Boyd's brand to perform well in new markets with a unified brand approach [42] Question: Gross margin drivers - Pricing optimization efforts in response to rising commodity markets have been key to gross margin improvement [46] Question: Potential for further asset disposals - The company is not relying on asset disposals as a business strategy but may consider offers for branches that no longer fit its needs [48]

Sales Performance - Net sales for the three months ended December 31, 2024, increased by $0.6 million, or 0.6%, to $90.0 million compared to $89.5 million in the same period of 2023[124] - Net sales for the six months ended December 31, 2024, increased by $3.7 million, or 2.2%, to $175.1 million from $171.3 million in the same period of 2023[125] - Unit sales decreased by 10.0%, while average unit price increased by 12.0% in the three months ended December 31, 2024, contributing to the net sales increase[125] - Unit sales decreased by 10.3%, while average unit price increased by 13.9%, resulting in a net sales increase of 2.2% for the six months ended December 31, 2024[126] Profitability - Gross margin improved to 43.1% for the three months ended December 31, 2024, compared to 40.4% in the same period of 2023, reflecting a 2.7% increase[120] - Net income for the three months ended December 31, 2024, was $210, a decrease of 92.2% compared to $2,704 in the same period of 2023[120] - EBITDA for the three months ended December 31, 2024, was $3,743, a decrease of 41.6% from $6,404 in the same period of 2023[120] - Adjusted EBITDA for the three months ended December 31, 2024, increased by 155.3% to $5,899 compared to $2,311 in the same period of 2023[120] - Gross profit for the three months ended December 31, 2024, increased to $38.8 million, with a gross margin of 43.1%, up from $36.1 million and 40.4% in the prior year[127] - Gross profit for the six months ended December 31, 2024, rose to $76.2 million, with a gross margin of 43.5%, compared to $66.9 million and 39.0% in the same period of the prior year[128][129] Operating Expenses - Operating expenses as a percentage of sales increased to 42.0% for the three months ended December 31, 2024, compared to 35.4% in the same period of 2023[120] - Operating expenses for the three months ended December 31, 2024, increased by $6.2 million to $37.8 million, representing 42.0% of net sales, up from 35.4% in the prior year[130] - Operating expenses for the six months ended December 31, 2024, increased by $13.4 million to $78.0 million, or 44.5% of net sales, compared to 37.7% in the prior year[131] Capital Expenditures and Cash Flow - Total capital expenditures for the three months ended December 31, 2024, were $2,032, a decrease of 39.2% from $3,342 in the same period of 2023[120] - Capital expenditures for the six months ended December 31, 2024 were $5.4 million, with an anticipated range of $9.0 million to $11.0 million for fiscal 2025[159] - Net cash provided by operating activities for the six months ended December 31, 2024 was $5.0 million, an increase of $15.9 million compared to a net cash used of $10.9 million in the same period of 2023[156] - Net cash used in investing activities during the six months ended December 31, 2024 was $5.2 million, a decrease of $20.3 million compared to net cash provided of $12.4 million in the same period of 2023[157] Debt and Interest - Interest expense for the three months ended December 31, 2024, remained flat at $1.9 million compared to the prior year[132] - Interest expense for the six months ended December 31, 2024, decreased by $0.4 million to $3.7 million from $4.1 million in the prior year[134] - The revolver under the Credit Facility has a commitment of up to $75.0 million, with a maturity date of April 26, 2027[150] - As of December 31, 2024, the company had outstanding borrowings on the Revolver Credit Facility of $23.3 million and $4.4 million utilized from the letters of credit sublimit[166] - The weighted average interest rate on the Revolver Credit Facility was 6.75% as of December 31, 2024[166] Commitments and Future Outlook - The company had committed to purchase green coffee inventory totaling $29.3 million under fixed-price contracts as of December 31, 2024[160] - The company had operating and finance lease payment commitments totaling $37.6 million as of December 31, 2024[161] - A hypothetical 10% increase in coffee commodity prices could result in a net gain of $4,000 from coffee-related derivative instruments[169] Depreciation - Depreciation and amortization expenses were $5.8 million for both the six months ended December 31, 2024 and 2023[159] Operational Network - The company operates a nationwide DSD network with 239 delivery routes and 100 branch warehouses as of December 31, 2024[149]

Exhibit 99.1 Farmer Brothers Coffee reports second quarter fiscal 2025 financial results Second quarter fiscal 2025 net sales of $90 million. Second quarter fiscal 2025 gross margin increase of 270 basis points year-over-year to 43.1% Reported second quarter net income of $210,000 and improved adjusted EBITDA of $5.9 million 1 Fort Worth, Texas, Feb. 6, 2025 – Farmer Bros. Co. (NASDAQ: FARM) today reported its second quarter fiscal 2025 financial results for the period ended Dec. 31, 2024. The company filed ...

Second quarter fiscal 2025 net sales of $90 millionSecond quarter fiscal 2025 gross margin increase of 270 basis points year-over-year to 43.1%Reported second quarter net income of $210,000 and improved adjusted EBITDA1 of $5.9 million FORT WORTH, Texas, Feb. 06, 2025 (GLOBE NEWSWIRE) -- Farmer Bros. Co. (NASDAQ: FARM) today reported its second quarter fiscal 2025 financial results for the period ended Dec. 31, 2024. The company filed its Form 10-Q, which can be found on the Investor Relations section of th ...

FORT WORTH, Texas, Jan. 23, 2025 (GLOBE NEWSWIRE) -- Farmer Bros. Co. (NASDAQ: FARM) announced today it will publish its fiscal second quarter 2025 financial results for the period ended Dec. 31, 2024 with the filing of its 10-Q and the issuing of its earnings results release, both of which will be posted on the Investor Relations section of its website after the close of market Thursday, Feb. 6. The company will also host an audio-only investor conference call and webcast at 5 p.m. Eastern on Thursday, Feb ...

Executive Appointment - Brian Miller appointed as Vice President of Sales, bringing over 25 years of experience in the consumer product industry [1] - Tom Bauer transitions to Vice President and Chief Field Operations Officer, overseeing DSD, logistics, planning, and procurement operations [1] Leadership Background - Brian Miller has a proven track record in developing growth-oriented go-to-market strategies and driving operational efficiency in sales organizations [2] - Previously served as Vice President at Custom Ink and Chief Commercial Officer at Primo Water, with experience at Mars Drinks North America [2] - Holds a bachelor's degree in marketing from Oswego State University [2] Company Strategy - Farmer Brothers aims to drive top-line growth and enhance customer base for sustainable long-term profitability [2] - The company is focused on building on the positive momentum created over the last several quarters [4] Company Overview - Farmer Brothers, founded in 1912, is a national coffee roaster, wholesaler, and distributor of coffee, tea, and culinary products [5] - Product lines include organic, Direct Trade, and sustainably produced coffee, as well as tea, cappuccino mixes, spices, and baking/biscuit mixes [5] Market Reach - The company serves a wide range of customers, from small independent restaurants to large institutional buyers, including hotels, casinos, healthcare facilities, and grocery chains [6] - Primary brands include Farmer Brothers, Boyd's, Cain's, China Mist, and West Coast Coffee [6]

Farmer Brothers (FARM) came out with a quarterly loss of $0.24 per share versus the Zacks Consensus Estimate of a loss of $0.23. This compares to loss of $0.06 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -4.35%. A quarter ago, it was expected that this coffee and tea company would post a loss of $0.22 per share when it actually produced a loss of $0.22, delivering no surprise.Over the last four quarters, the company has su ...

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