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Earnings Review and Free Research Report: Farmer Bros.’ Q4 Gross Margin and Adjusted EBIDTA Margin Rose

Research Desk Line-up: Conagra Brands Post Earnings Coverage

LONDON, UK / ACCESSWIRE / October 4, 2017 / Pro-Trader Daily has just published a free post-earnings coverage on Farmer Bros. Co. (NASDAQ: FARM), which can be viewed by registering at http://protraderdaily.com/optin/?symbol=FARM, following the Company's posting of its financial results on September 28, 2017, for the fourth quarter fiscal 2017 (Q4 FY17) and full year 2017 (FY17). The Northlake, Texas-based Company's quarterly gross margin and adjusted EBIDTA margin improved 100 bps and 210 bps y-o-y, respectively. Our daily stock reports are accessible for free, and with those to look forward today you also will be signing up for a complimentary member's account at:

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Get more of our free earnings reports coverage from other constituents of the Processed & Packaged Goods industry. Pro-TD has currently selected Conagra Brands, Inc. (NYSE: CAG) for due-diligence and potential coverage as the Company reported on September 28, 2017, its financial results for Q1 FY18 which ended on August 27, 2017. Register for a free membership today, and be among the early birds that get access to our report on Conagra Brands when we publish it.

At Pro-TD, we make it our mission to bring you news that matter about the stock you follow. Today, our research desk covers a blog story on FARM; also brushing on CAG. With the links below you can directly download the report of your stock of interest free of charge at:

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Earnings Reviewed

During Q4 FY17, Farmer Bros.' net sales fell marginally to $133.80 million from $134.16 million recorded at the end of Q4 FY16. Total net sales numbers for the reported quarter lagged behind consensus market expectations of $135.72 million.

The coffee and tea Company's GAAP net income totaled $1.11 million, or $0.07 per diluted share, in Q4 FY17 compared to $84.24 million, or $5.05 per diluted share, in the year-ago same quarter. Non-GAAP net income came in at $3.17 million, or $0.19 diluted per share, for Q4 FY17 versus $3.80 million, or $0.23 per diluted share, in the previous year's same quarter. Meanwhile, Wall Street had expected the Company to report non-GAAP net income of $0.15 per diluted share.

For FY17, the Company's net sales were $541.50 million versus $544.38 million in the year-ago comparable period. GAAP net income came in at $24.40 million, or $1.45 per diluted share, for FY17 compared to $89.92 million, or $5.41 per diluted share, in FY16. Additionally, non-GAAP diluted net income stood at $11.61 million, or $0.70 per diluted share, for FY17 compared to $17.61 million, or $1.06 per diluted share, in FY16.

Operating Metrics

In the three months ended on June 30, 2017, the Company spent $133.80 million on cost of goods sold, which was lower than $134.16 million in Q4 FY16. The Company's gross profit increased to $53.62 million, or 40.1% of net sales, during Q4 FY17 from $52.43 million, or 39.1% of net sales, in Q4 FY16. The rise in gross margin was primarily due to the higher pricing and lower raw materials costs.

Due to the addition of China Mist and West, the Company's selling expenses increased to $39.29 million in Q4 FY17 versus $37.46 million in last year's comparable quarter. The Company reported general and administrative (G&A) expenses of $11.01 million in Q4 FY17 versus $12.02 million in the last year's corresponding quarter. Income from operations declined to $1.69 million during Q4 FY17 from $3.08 million in the previous year's comparable quarter. Meanwhile, adjusted earnings before interest, tax, depreciation, and amortization (EBITDA) grew to $11.63 million, or 8.7% of net sales, during Q4 FY17 from $8.90 million, or 6.6% of net sales, in Q4 FY16.

During the reported quarter, the volume of green coffee pounds processed and sold increased 0.9% y-o-y.

Cash Flow and Balance Sheet

During the full year FY17, Farmer Bros.' net cash provided by operating activities totaled $42.11 million, up from $27.63 million in the prior year's same quarter. Total capital expenditures were $14.12 million during the reported quarter compared to $19.33 million in the previous year's same quarter.

As of June 30, 2017, the Company had cash and cash equivalents balance of $6.24 million compared to $21.10 million at the close of books on June 30, 2016.

Acquisition

On October 02, 2017, Farmer Bros. reported the completion of the previously announced acquisition of all the assets of privately-held company, Boyd Coffee. The Company expects that the acquisition will complement the Company's cross customer channels, product portfolios, and distribution networks, including a high-touch service model of direct-store-delivery.

Stock Performance

On Tuesday, October 03, 2017, the stock closed the trading session at $32.05, falling 1.84% from its previous closing price of $32.65. A total volume of 47.97 thousand shares have exchanged hands. Farmer Bros.' stock price advanced 5.95% in the past three months. The stock is trading at a PE ratio of 4.98 and currently has a market cap of $502.86 million.

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SOURCE: Pro-Trader Daily