NORTHLAKE, Texas, US – Farmer Bros. Co. yesterday reported financial results for its third fiscal quarter ended March 31, 2021. During the quarter, the company successfully completed key initiatives within its supply chain optimization strategy, including: doubled capacity at the Northlake, Texas facility; ended production at the aged Houston, Texas facility; and opened a new West Coast distribution facility in Rialto, California.
Farmer Bros. Co. also:
- Negotiated new credit facilities, effectively increasing borrowing capacity and flexibility while lowering overall borrowing cost;
- Achieved notable improvement in March 2021 DSD sales compared to January and February 2021 months; and
- Saw strongest DSD sales levels since the start of the pandemic with average weekly DSD sales in the month of April 2021 down approximately 27% compared to pre-COVID levels.
Farmer Bros. Co.: Financial Results
- Net sales were $93.2 million, a decrease of $36.0 million, or 27.9%, from the prior year period, primarily due to the impact of COVID-19;
- Gross margin decreased to 25.6% from 29.4% in the prior year period;
- Continued improvement trend in gross margin each quarter of fiscal 2021;
- Net loss was $13.7 million compared to net loss of $39.8 million in the prior year period; and
- Adjusted EBITDA was a loss of $0.8 million compared to income of $6.6 million in the prior year period.*
- As of March 31, 2021, total debt outstanding was $88.0 million and cash and cash equivalents was $8.5 million compared to $122.0 million and $60.0 million, respectively, as of June 30, 2020.
(*Adjusted EBITDA, a non-GAAP financial measure, is reconciled to its corresponding GAAP measure at the end of this press release.)
Deverl Maserang, President & CEO, commented, “As the nation continues to recover from the pandemic and, more recently, severe weather throughout the Central U.S., relative performance in our more impacted DSD business continues to show improvements from pre-COVID levels. At the same time, we are seeing early benefits from our focus on our five key turnaround strategies, particularly in the form of considerable and scalable network efficiencies that will be seen more fully in our results as sales continue to improve.
March results were the best we’ve seen since the pandemic began, and we expect trends will continue to rebound as certain markets begin to more fully open and as certain parts of our business, such as healthcare and lodging, show continued recovery. Additionally, our new credit facility that we executed in April will give us improved borrowing costs and greater ability to leverage our collateral and operational plans, while allowing us to focus more fully on accelerating growth and innovation throughout the organization.”
