Farmer Bros. Co. Reports Fourth Quarter and Fiscal 2018 Financial Results
Fourth Quarter Fiscal 2018 Highlights:
- Volume of green coffee processed and sold increased by 4.1 million pounds, reaching 27.4 million pounds, a 17.7% increase over the prior year period;
- Gross profit increased
$9.8 million to $52.6 million and gross margin increased 320 basis points to 35.2% over the prior year period; - Net income was
$0.1 million compared to net loss of$(1.8) million in the prior year period; and - Adjusted EBITDA was
$14.0 million compared to$6.8 million in the prior year period.* - Successfully added 4.1 million pounds of green coffee and
$18.2 million in net sales related to the acquisition ofBoyd Coffee Company (“Boyd”).
Fiscal 2018 Highlights:
- Volume of green coffee processed and sold increased by 11.9 million pounds, reaching 107.4 million pounds, a 12.5% increase over the prior year;
- Gross profit increased
$20.2 million to $207.0 million and gross margin decreased 40 basis points to 34.1% in fiscal 2018; - Net loss was
$(18.3) million in fiscal 2018 compared to net income of$22.6 million in fiscal 2017, primarily driven by the sale of the Torrance facility in fiscal 2017; and - Adjusted EBITDA was
$47.6 million compared to$43.0 million in the prior year.*
(*Adjusted EBITDA, a non-GAAP financial measure, is reconciled to its corresponding GAAP measure at the end of this press release.)
“We had a solid fourth quarter and achieved Adjusted EBITDA results for the fiscal year in line with our expectations,” said
Fourth Quarter and Fiscal 2018 Results:
Selected Financial Data
The selected financial data presented below under the captions “Income statement data,” “Operating data” and “Other data” summarizes certain performance measures for the three months and fiscal years ended
Three Months Ended June 30, | Fiscal Year Ended June 30, | |||||||||||||||
2018 | 2017 | 2018 | 2017 | |||||||||||||
(In thousands, except per share data) | ||||||||||||||||
Income statement data: | ||||||||||||||||
Net sales | $ | 149,538 | $ | 133,800 | $ | 606,544 | $ | 541,500 | ||||||||
Gross margin | 35.2 | % | 32.0 | % | 34.1 | % | 34.5 | % | ||||||||
Income (loss) from operations | $ | 2,001 | $ | (3,096 | ) | $ | 1,124 | $ | 39,178 | |||||||
Net income (loss) | $ | 133 | $ | (1,837 | ) | $ | (18,280 | ) | $ | 22,551 | ||||||
Net income (loss) available to common stockholders per common share-diluted | $ | — | $ | (0.11 | ) | $ | (1.11 | ) | $ | 1.34 | ||||||
Operating data: | ||||||||||||||||
Coffee pounds | 27,396 | 23,285 | 107,429 | 95,499 | ||||||||||||
EBITDA | $ | 10,015 | $ | 3,482 | $ | 32,673 | $ | 62,521 | ||||||||
EBITDA Margin | 6.7 | % | 2.6 | % | 5.4 | % | 11.5 | % | ||||||||
Adjusted EBITDA | $ | 13,975 | $ | 6,842 | $ | 47,562 | $ | 42,985 | ||||||||
Adjusted EBITDA Margin | 9.3 | % | 5.1 | % | 7.8 | % | 7.9 | % | ||||||||
Other data: | ||||||||||||||||
Capital expenditures related to maintenance | $ | 4,409 | $ | 1,574 | $ | 21,782 | $ | 19,246 | ||||||||
Total capital expenditures | $ | 9,554 | $ | 14,115 | $ | 37,020 | $ | 84,949 | ||||||||
Depreciation and amortization expense | $ | 7,737 | $ | 6,360 | $ | 30,464 | $ | 22,970 | ||||||||
EBITDA, EBITDA Margin, Adjusted EBITDA and Adjusted EBITDA Margin are non-GAAP financial measures; a reconciliation of these non-GAAP measures to their corresponding GAAP measures is included at the end of this press release.
Volume of green coffee processed and sold increased 17.7% for the quarter to 27.4 million pounds, with volume associated with the Boyd business acquired in
In the fourth quarter of fiscal 2018, green coffee pounds processed and sold through our DSD network were 9.0 million, or 32.7% of total green coffee pounds processed and sold, while direct ship customers represented 18.1 million, or 66.0%, of total green coffee pounds processed and sold. Distributor customers represented 0.4 million pounds, or 1.3% of total green coffee pounds processed and sold.
Net sales were
Gross profit in the fourth quarter of fiscal 2018 increased
Operating expenses in the fourth quarter of fiscal 2018 increased
Total other expense in the fourth quarter of fiscal 2018 was
Income tax expense was
As a result of the foregoing factors, net income was
Non-GAAP Financial Measures:
EBITDA, EBITDA Margin, Adjusted EBITDA and Adjusted EBITDA Margin are non-GAAP financial measures; a reconciliation of these non-GAAP measures to their corresponding GAAP measures is included at the end of this press release.
Beginning in the fourth quarter of fiscal 2017, we modified the calculation of Adjusted EBITDA and Adjusted EBITDA Margin to exclude acquisition and integration costs. Acquisition and integration costs include legal expenses, consulting expenses and internal costs associated with acquisitions and integration of those acquisitions. Beginning in the fourth quarter of fiscal 2017 acquisition and integration costs were significant and, we believe, excluding them will help investors to better understand our operating results and more accurately compare them across periods. We have not adjusted the historical presentation of Adjusted EBITDA and Adjusted EBITDA Margin because acquisition and integration costs in prior periods were not material to the Company’s results of operations.
Adjusted EBITDA was
About
Founded in 1912,
Headquartered in
Investor Conference Call
The call will be open to all interested investors through a live audio web broadcast via the Internet at https://edge.media-server.com/m6/p/dcoohc43 and at the Company’s website www.farmerbros.com under “Investor Relations.” The call also will be available to investors and analysts by dialing Toll Free: 1-(844) 423-9890 or international: 1-(716) 247-5805. The passcode/ID is 2898237.
The audio-only webcast will be archived for at least 30 days on the Investor Relations section of the
Forward-Looking Statements
Certain statements contained in this press release are not based on historical fact and are forward-looking statements within the meaning of federal securities laws and regulations. These statements are based on management's current expectations, assumptions, estimates and observations of future events and include any statements that do not directly relate to any historical or current fact. These forward-looking statements can be identified by the use of words like “anticipates,” “estimates,” “projects,” “expects,” “plans,” “believes,” “intends,” “will,” “could,” “assumes” and other words of similar meaning. Owing to the uncertainties inherent in forward-looking statements, actual results could differ materially from those set forth in forward-looking statements. The Company intends these forward-looking statements to speak only at the time of this press release and does not undertake to update or revise these statements as more information becomes available except as required under federal securities laws and the rules and regulations of the
FARMER BROS. CO.
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
(In thousands, except share and per share data)
Year Ended June 30, | Three Months Ended June 30, | |||||||||||||||||||
2018 | 2017 | 2016 | 2018 | 2017 | ||||||||||||||||
Net sales | $ | 606,544 | $ | 541,500 | $ | 544,382 | $ | 149,538 | $ | 133,800 | ||||||||||
Cost of goods sold | 399,502 | 354,622 | 373,214 | 96,939 | 91,025 | |||||||||||||||
Gross profit | 207,042 | 186,878 | 171,168 | 52,599 | 42,775 | |||||||||||||||
Selling expenses | 154,539 | 133,329 | 123,260 | 41,256 | 33,230 | |||||||||||||||
General and administrative expenses | 47,863 | 42,933 | 41,970 | 8,856 | 11,007 | |||||||||||||||
Restructuring and other transition expenses | 662 | 11,016 | 16,533 | 351 | 1,474 | |||||||||||||||
Net gain from sale of Torrance facility | — | (37,449 | ) | — | — | — | ||||||||||||||
Net gains from sale of Spice Assets | (770 | ) | (919 | ) | (5,603 | ) | (115 | ) | (155 | ) | ||||||||||
Net (gains) losses from sales of other assets | (196 | ) | (1,210 | ) | (2,802 | ) | 250 | 315 | ||||||||||||
Impairment losses on intangible assets | 3,820 | — | — | — | — | |||||||||||||||
Operating expenses | 205,918 | 147,700 | 173,358 | 50,598 | 45,871 | |||||||||||||||
Income (loss) from operations | 1,124 | 39,178 | (2,190 | ) | 2,001 | (3,096 | ) | |||||||||||||
Other (expense) income: | ||||||||||||||||||||
Dividend income | 12 | 1,007 | 1,115 | — | 199 | |||||||||||||||
Interest income | 2 | 567 | 496 | — | 132 | |||||||||||||||
Interest expense | (3,177 | ) | (2,185 | ) | (425 | ) | (891 | ) | (755 | ) | ||||||||||
Other, net | 1,071 | (1,201 | ) | 556 | 277 | (113 | ) | |||||||||||||
Total other (expense) income | (2,092 | ) | (1,812 | ) | 1,742 | (614 | ) | (537 | ) | |||||||||||
(Loss) income before taxes | (968 | ) | 37,366 | (448 | ) | 1,387 | (3,633 | ) | ||||||||||||
Income tax expense (benefit) | 17,312 | 14,815 | (72,239 | ) | 1,254 | (1,796 | ) | |||||||||||||
Net (loss) income | $ | (18,280 | ) | $ | 22,551 | $ | 71,791 | $ | 133 | $ | (1,837 | ) | ||||||||
Less: Cumulative preferred dividends, undeclared and unpaid | 389 | — | — | 132 | — | |||||||||||||||
Net (loss) income available to common stockholders | $ | (18,669 | ) | $ | 22,551 | $ | 71,791 | $ | 1 | $ | (1,837 | ) | ||||||||
Net (loss) income available to common stockholders per common share—basic | $ | (1.11 | ) | $ | 1.35 | $ | 4.35 | $ | — | $ | (0.11 | ) | ||||||||
Net (loss) income available to common stockholders per common share—diluted | $ | (1.11 | ) | $ | 1.34 | $ | 4.32 | $ | — | $ | (0.11 | ) | ||||||||
Weighted average common shares outstanding—basic | 16,815,020 | 16,668,745 | 16,502,523 | 16,855,874 | 16,697,765 | |||||||||||||||
Weighted average common shares outstanding—diluted | 16,815,020 | 16,785,752 | 16,627,402 | 16,855,874 | 16,803,299 |
FARMER BROS. CO.
CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(In thousands, except share and per share data)
June 30, | |||||||
2018 | 2017 | ||||||
ASSETS | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 2,438 | $ | 6,241 | |||
Short-term investments | — | 368 | |||||
Accounts receivable, net of allowance for doubtful accounts of $495 and $721, respectively | 58,498 | 46,446 | |||||
Inventories | 104,431 | 79,790 | |||||
Income tax receivable | 305 | 318 | |||||
Prepaid expenses | 7,842 | 7,540 | |||||
Total current assets | 173,514 | 140,703 | |||||
Property, plant and equipment, net | 186,589 | 176,066 | |||||
Goodwill | 36,224 | 10,996 | |||||
Intangible assets, net | 31,515 | 18,618 | |||||
Other assets | 8,381 | 6,837 | |||||
Deferred income taxes | 39,308 | 53,933 | |||||
Total assets | $ | 475,531 | $ | 407,153 | |||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||
Current liabilities: | |||||||
Accounts payable | 56,603 | 39,784 | |||||
Accrued payroll expenses | 17,918 | 17,345 | |||||
Short-term borrowings under revolving credit facility | 89,787 | 27,621 | |||||
Short-term obligations under capital leases | 190 | 958 | |||||
Short-term derivative liabilities | 3,300 | 1,857 | |||||
Other current liabilities | 10,659 | 9,702 | |||||
Total current liabilities | 178,457 | 97,267 | |||||
Accrued pension liabilities | 40,380 | 51,281 | |||||
Accrued postretirement benefits | 20,473 | 19,788 | |||||
Accrued workers’ compensation liabilities | 5,354 | 7,548 | |||||
Other long-term liabilities | 1,812 | 1,717 | |||||
Total liabilities | $ | 246,476 | $ | 177,601 | |||
Commitments and contingencies | |||||||
Stockholders’ equity: | |||||||
Preferred stock, $1.00 par value, 500,000 shares authorized; Series A Convertible Participating Cumulative Perpetual Preferred Stock, 21,000 shares authorized; 14,700 and zero shares issued and outstanding as of June 30, 2018 and 2017, respectively; liquidation preference of $15,089 and $0 as of June 30, 2018 and 2017, respectively | 15 | — | |||||
Common stock, $1.00 par value, 25,000,000 shares authorized; 16,951,659 and 16,846,002 shares issued and outstanding at June 30, 2018 and 2017, respectively | 16,952 | 16,846 | |||||
Additional paid-in capital | 55,965 | 41,495 | |||||
Retained earnings | 220,307 | 236,993 | |||||
Unearned ESOP shares | (2,145 | ) | (4,289 | ) | |||
Accumulated other comprehensive loss | (62,039 | ) | (61,493 | ) | |||
Total stockholders’ equity | $ | 229,055 | $ | 229,552 | |||
Total liabilities and stockholders’ equity | $ | 475,531 | $ | 407,153 |
FARMER BROS. CO.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
(In thousands)
Year Ended June 30, | |||||||||||
2018 | 2017 | 2016 | |||||||||
Cash flows from operating activities: | |||||||||||
Net (loss) income | $ | (18,280 | ) | $ | 22,551 | $ | 71,791 | ||||
Adjustments to reconcile net (loss) income to net cash provided by operating activities: | |||||||||||
Depreciation and amortization | 30,464 | 22,970 | 20,774 | ||||||||
Provision for doubtful accounts | 137 | 325 | 71 | ||||||||
Impairment losses on intangible assets | 3,820 | — | — | ||||||||
Change in estimated fair value of contingent earnout consideration | (500 | ) | — | — | |||||||
Restructuring and other transition expenses, net of payments | (1,185 | ) | 1,034 | (2,697 | ) | ||||||
Interest on sale-leaseback financing obligation | — | 681 | — | ||||||||
Deferred income taxes | 17,154 | 14,343 | (72,556 | ) | |||||||
Net gain from sale of Torrance Facility | — | (37,449 | ) | — | |||||||
Net gains from sales of Spice Assets and other assets | (995 | ) | (2,129 | ) | (8,405 | ) | |||||
ESOP and share-based compensation expense | 3,822 | 3,959 | 4,342 | ||||||||
Net losses (gains) on derivative instruments and investments | 1,982 | 2,361 | 16,536 | ||||||||
Change in operating assets and liabilities: | |||||||||||
Restricted cash | — | — | 1,002 | ||||||||
Purchases of trading securities | — | (5,136 | ) | (7,255 | ) | ||||||
Proceeds from sales of trading securities | 375 | 30,645 | 5,901 | ||||||||
Accounts receivable | (4,628 | ) | (14 | ) | (3,476 | ) | |||||
Inventories | (15,513 | ) | (8,041 | ) | 10,063 | ||||||
Income tax receivable | 13 | (71 | ) | 288 | |||||||
Derivative (liabilities) assets, net | (7,782 | ) | 2,264 | (10,295 | ) | ||||||
Prepaid expenses and other assets | 685 | (2,506 | ) | (111 | ) | ||||||
Accounts payable | 3,864 | 8,885 | (3,343 | ) | |||||||
Accrued payroll expenses and other current liabilities | 1,766 | (2,983 | ) | 5,829 | |||||||
Accrued postretirement benefits | (1,924 | ) | (1,020 | ) | (358 | ) | |||||
Other long-term liabilities | (4,420 | ) | (8,557 | ) | (473 | ) | |||||
Net cash provided by operating activities | $ | 8,855 | $ | 42,112 | $ | 27,628 | |||||
Cash flows from investing activities: | |||||||||||
Acquisitions of businesses, net of cash acquired | $ | (39,608 | ) | $ | (25,853 | ) | $ | — | |||
Purchases of property, plant and equipment | (35,443 | ) | (45,195 | ) | (31,050 | ) | |||||
Purchases of assets for construction of New Facility | (1,577 | ) | (39,754 | ) | (19,426 | ) | |||||
Proceeds from sales of property, plant and equipment | 1,988 | 4,078 | 10,946 | ||||||||
Net cash used in investing activities | $ | (74,640 | ) | $ | (106,724 | ) | $ | (39,530 | ) |
FARMER BROS. CO.
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
(In thousands)
Year Ended June 30, | |||||||||||
2018 | 2017 | 2016 | |||||||||
Cash flows from financing activities: | |||||||||||
Proceeds from revolving credit facility | $ | 85,315 | $ | 77,985 | $ | 405 | |||||
Repayments on revolving credit facility | (23,149 | ) | (50,473 | ) | (374 | ) | |||||
Proceeds from sale-leaseback financing obligation | — | 42,455 | — | ||||||||
Proceeds from New Facility lease financing obligation | — | 16,346 | 19,426 | ||||||||
Repayments of New Facility lease financing | — | (35,772 | ) | — | |||||||
Payments of capital lease obligations | (947 | ) | (1,433 | ) | (3,147 | ) | |||||
Payment of financing costs | (579 | ) | — | (8 | ) | ||||||
Proceeds from stock option exercises | 1,342 | 688 | 1,694 | ||||||||
Tax withholding payment - net share settlement of equity awards | — | (38 | ) | (159 | ) | ||||||
Net cash provided by financing activities | $ | 61,982 | $ | 49,758 | $ | 17,837 | |||||
Net (decrease) increase in cash and cash equivalents | $ | (3,803 | ) | $ | (14,854 | ) | $ | 5,935 | |||
Cash and cash equivalents at beginning of year | 6,241 | 21,095 | 15,160 | ||||||||
Cash and cash equivalents at end of year | $ | 2,438 | $ | 6,241 | $ | 21,095 |
Supplemental disclosure of cash flow information: | |||||||||||
Cash paid for interest | $ | 3,177 | $ | 1,504 | $ | 425 | |||||
Cash paid for income taxes | $ | 144 | $ | 567 | $ | 324 | |||||
Supplemental disclosure of non-cash investing and financing activities: | |||||||||||
Equipment acquired under capital leases | $ | — | $ | 417 | $ | — | |||||
Net change in derivative assets and liabilities included in other comprehensive (loss) income, net of tax |
$ | (5,122 | ) | $ | (2,390 | ) | $ | 10,644 | |||
Construction-in-progress assets under New Facility lease | $ | — | $ | — | $ | 8,684 | |||||
New Facility lease obligation | $ | — | $ | — | $ | 8,684 | |||||
Non-cash additions to property, plant and equipment | $ | 2,814 | $ | 5,517 | $ | 441 | |||||
Assets held for sale | $ | — | $ | — | $ | 7,179 | |||||
Non-cash portion of earnout receivable recognized—Spice Assets sale | $ | 298 | $ | 419 | $ | 496 | |||||
Non-cash portion of earnout payable recognized—China Mist acquisition | $ | — | $ | 500 | $ | — | |||||
Non-cash portion of earnout payable recognized—West Coast Coffee acquisition | $ | — | $ | 600 | $ | — | |||||
Non-cash working capital adjustment payable recognized—China Mist acquisition | $ | — | $ | 553 | $ | — | |||||
Non-cash receivable from West Coast Coffee—post-closing final working capital adjustment | $ | 218 | $ | — | $ | — | |||||
Non-cash consideration given-Issuance of Series A Preferred Stock | $ | 11,756 | $ | — | $ | — | |||||
Non-cash Multiemployer Plan Holdback payable recognized—Boyd Coffee acquisition | $ | 1,056 | $ | — | $ | — | |||||
Option costs paid with exercised shares | $ | — | $ | 550 | $ | — | |||||
Cumulative preferred dividends, undeclared and unpaid | $ | 389 | $ | — | $ | — |
Non-GAAP Financial Measures
In addition to net (loss) income determined in accordance with U.S. generally accepted accounting principles (“GAAP”), we use the following non-GAAP financial measures in assessing our operating performance:
“EBITDA” is defined as net (loss) income excluding the impact of:
- income taxes;
- interest expense; and
- depreciation and amortization expense.
“EBITDA Margin” is defined as EBITDA expressed as a percentage of net sales.
“Adjusted EBITDA” is defined as net (loss) income excluding the impact of:
- income taxes;
- interest expense;
- (loss) income from short-term investments;
- depreciation and amortization expense;
- ESOP and share-based compensation expense;
- non-cash impairment losses;
- non-cash pension withdrawal expense;
- other similar non-cash expenses;
- restructuring and other transition expenses;
- net gains and losses from sales of assets;
- non-recurring 2016 proxy contest-related expenses; and
- acquisition and integration costs.
“Adjusted EBITDA Margin” is defined as Adjusted EBITDA expressed as a percentage of net sales.
Restructuring and other transition expenses are expenses that are directly attributable to (i) the corporate relocation plan, consisting primarily of employee retention and separation benefits, facility-related costs and other related costs such as travel, legal, consulting and other professional services; and (ii) beginning in the third quarter of fiscal 2017, the DSD restructuring plan, consisting primarily of severance, prorated bonuses for bonus eligible employees, contractual termination payments and outplacement services, and other related costs, including legal, recruiting, consulting, other professional services and travel.
In the first quarter of fiscal 2017, we modified the calculation of Adjusted EBITDA and Adjusted EBITDA Margin to exclude non-recurring expenses for legal and other professional services incurred in connection with the 2016 proxy contest that were in excess of the level of expenses normally incurred for an annual meeting of stockholders ("2016 proxy contest-related expenses"). This modification to our non-GAAP financial measures was made because such expenses are not reflective of our ongoing operating results and adjusting for them will help investors with comparability of our results.
Beginning in the third quarter of fiscal 2017 and for all periods presented, we include EBITDA in our non-GAAP financial measures. We believe that EBITDA facilitates operating performance comparisons from period to period by isolating the effects of certain items that vary from period to period without any correlation to core operating performance or that vary widely among similar companies. These potential differences may be caused by variations in capital structures (affecting interest expense), tax positions (such as the impact on periods or companies of changes in effective tax rates or net operating losses) and the age and book depreciation of facilities and equipment (affecting relative depreciation expense). We also present EBITDA and EBITDA Margin because (i) we believe that these measures are frequently used by securities analysts, investors and other interested parties to evaluate companies in our industry, (ii) we believe that investors will find these measures useful in assessing our ability to service or incur indebtedness, and (iii) we use these measures internally as benchmarks to compare our performance to that of our competitors.
Beginning in the third quarter of fiscal 2017, we modified the calculation of Adjusted EBITDA and Adjusted EBITDA Margin to exclude (loss) income from our short-term investments because we believe excluding (loss) income generated from our investment portfolio is a measure more reflective of our operating results. The historical presentation of Adjusted EBITDA and Adjusted EBITDA Margin was recast to be comparable to the current period presentation.
Beginning in the fourth quarter of fiscal 2017, we modified the calculation of Adjusted EBITDA and Adjusted EBITDA Margin to exclude acquisition and integration costs. Acquisition and integration costs include legal expenses, consulting expenses and internal costs associated with acquisitions and integration of those acquisitions. Beginning in the fourth quarter of fiscal 2017 acquisition and integration costs were significant and, we believe, excluding them will help investors to better understand our operating results and more accurately compare them across periods. We have not adjusted the historical presentation of Adjusted EBITDA and Adjusted EBITDA Margin because acquisition and integration costs in prior periods were not material to the Company’s results of operations.
We believe these non-GAAP financial measures provide a useful measure of the Company’s operating results, a meaningful comparison with historical results and with the results of other companies, and insight into the Company’s ongoing operating performance. Further, management utilizes these measures, in addition to GAAP measures, when evaluating and comparing the Company’s operating performance against internal financial forecasts and budgets.
EBITDA, EBITDA Margin, Adjusted EBITDA and Adjusted EBITDA Margin, as defined by us, may not be comparable to similarly titled measures reported by other companies. We do not intend for non-GAAP financial measures to be considered in isolation or as a substitute for other measures prepared in accordance with GAAP.
Set forth below is a reconciliation of reported net (loss) income to EBITDA (unaudited):
Year Ended June 30, | Three Months Ended June 30, | |||||||||||||||||||
(In thousands) | 2018 | 2017 | 2016 | 2018 | 2017 | |||||||||||||||
Net (loss) income, as reported | $ | (18,280 | ) | $ | 22,551 | $ | 71,791 | $ | 133 | $ | (1,837 | ) | ||||||||
Income tax expense (benefit) | 17,312 | 14,815 | (72,239 | ) | 1,254 | (1,796 | ) | |||||||||||||
Interest expense | 3,177 | 2,185 | 425 | 891 | 755 | |||||||||||||||
Depreciation and amortization expense | 30,464 | 22,970 | 20,774 | 7,737 | 6,360 | |||||||||||||||
EBITDA | $ | 32,673 | $ | 62,521 | $ | 20,751 | $ | 10,015 | $ | 3,482 | ||||||||||
EBITDA Margin | 5.4 | % | 11.5 | % | 3.8 | % | 6.7 | % | 2.6 | % |
Set forth below is a reconciliation of reported net (loss) income to Adjusted EBITDA (unaudited):
Year Ended June 30, | Three Months Ended June 30, | |||||||||||||||||||
(In thousands) | 2018 | 2017 | 2016 | 2018 | 2017 | |||||||||||||||
Net (loss) income, as reported | $ | (18,280 | ) | $ | 22,551 | $ | 71,791 | $ | 133 | $ | (1,837 | ) | ||||||||
Income tax expense (benefit) | 17,312 | 14,815 | (72,239 | ) | 1,254 | (1,796 | ) | |||||||||||||
Interest expense | 3,177 | 2,185 | 425 | 891 | 755 | |||||||||||||||
Income from short-term investments | (19 | ) | (1,853 | ) | (2,204 | ) | (5 | ) | (971 | ) | ||||||||||
Depreciation and amortization expense | 30,464 | 22,970 | 20,774 | 7,737 | 6,360 | |||||||||||||||
ESOP and share-based compensation expense | 3,822 | 3,959 | 4,342 | 930 | 963 | |||||||||||||||
Restructuring and other transition expenses | 662 | 11,016 | 16,533 | 351 | 1,474 | |||||||||||||||
Net gain from sale of Torrance Facility | — | (37,449 | ) | — | — | — | ||||||||||||||
Net gains from sale of Spice Assets | (770 | ) | (919 | ) | (5,603 | ) | (115 | ) | (155 | ) | ||||||||||
Net (gains) losses from sales of other assets | (196 | ) | (1,210 | ) | (2,802 | ) | 250 | 315 | ||||||||||||
Impairment losses on intangible assets | 3,820 | — | — | — | — | |||||||||||||||
Non-recurring 2016 proxy contest-related expenses | — | 5,186 | — | — | — | |||||||||||||||
Acquisition and integration costs | 7,570 | 1,734 | — | 2,549 | 1,734 | |||||||||||||||
Adjusted EBITDA | $ | 47,562 | $ | 42,985 | $ | 31,017 | $ | 13,975 | $ | 6,842 | ||||||||||
Adjusted EBITDA Margin | 7.8 | % | 7.9 | % | 5.7 | % | 9.3 | % | 5.1 | % |
Contact:
212-355-4449
Source: Farmer Bros. Co.