Farmer Bros. (US:FARM)2025-11-06 23:00Financial Data and Key Metrics Changes - Revenue decreased by 4% to $81.6 million compared to $85.1 million in the prior year period [4][11] - Adjusted EBITDA remained flat year-over-year at $1.4 million [4][11] - Gross margins were approximately 39.7%, a decline of about 400 basis points from the previous year [12] - Operating expenses decreased by $4.5 million to $35.6 million, representing 43.6% of net sales compared to 47.2% in the prior year [12] Business Line Data and Key Metrics Changes - The company is focusing on reenergizing its Direct Store Delivery (DSD) network through sales and operational initiatives [5] - There is a renewed focus on growing the white label customer portfolio, leveraging the Portland roasting and manufacturing facility [5][6] Market Data and Key Metrics Changes - The average price of a cup of coffee has increased by 20% compared to the previous year, impacting consumer spending [7] - The National Restaurant Association reported a decline in restaurant foot traffic for the seventh consecutive month, indicating a shift in consumer dining habits due to economic uncertainty [7] Company Strategy and Development Direction - The company aims to drive top-line revenue and address customer and coffee pound degradation in fiscal 2026 [4] - There is a commitment to leveraging core coffee capabilities and enhancing customer service while managing costs [14] - The company is working with industry organizations to seek exemptions from tariffs on coffee imports [10] Management's Comments on Operating Environment and Future Outlook - Management acknowledges significant challenges due to unprecedented green coffee market conditions and inflation impacting costs [11] - The company expects continued pressure on gross margins and revenue performance throughout fiscal 2026 [10][12] - Despite these challenges, management remains optimistic about creating shareholder value once market conditions improve [10][14] Other Important Information - The company recorded a net loss of $4 million for the quarter, an improvement from a $5 million net loss in the prior year [12] - As of September 30, 2025, the company had $3.8 million in unrestricted cash and $31.2 million available under its revolving credit facility [12] Q&A Session Summary - There were no questions during the Q&A session, and the call concluded without any inquiries [16]