Farmer Bros. (US:FARM)2025-02-06 22:03Sales 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]