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Farmer Bros. Co. Reports Second Quarter Results

Operating loss in the first half of fiscal 2013 declined $9.2 million to $1.1 million as compared to an operating loss of $10.3 million in the first half of the prior fiscal year.

For the first half of fiscal 2013, the Company recorded a net loss of $4.4 million, or $0.28 per common share, as compared to a net loss of $11.7 million, or $0.77 per common share, during the same period in the prior fiscal year.

For the first half of fiscal 2013, EBITDAE increased $8.8 million, or 64%, to $22.5 million as compared to $13.7 million in the same period last year. EBITDAE for the six months ended December 31, 2012 and 2011, includes $3.2 million and $0.7 million, respectively, of net gains on sales of assets, primarily from the sale of real estate.

About Farmer Bros. Co.

Founded in 1912 and currently celebrating its milestone centennial, Farmer Bros. Co. is a manufacturer, wholesaler and distributor of coffee, tea and culinary products. We are a direct distributor of coffee to restaurants, hotels, casinos, hospitals and other foodservice providers, and a provider of private brand coffee programs to Quick Service Restaurants, grocery retailers, national drugstore chains, restaurant chains, convenience stores, and independent coffee houses, nationwide. Our product lines include roasted coffee, liquid coffee, coffee related products such as coffee filters, sugar and creamers, assorted teas, cappuccino, cocoa, spices, gelatins and puddings, soup bases, gravy and sauce mixes, pancake and biscuit mixes, and jellies and preserves. National foodservice brands include The Artisan Collection by Farmer Brothers , Farmer Brothers ®, Superior ®, Metropolitan ®, Island Medley Iced Tea ®, Farmer Brothers Spice Products , Sierra Tea and Orchard Hills Estate ™. Regional foodservice and retail brands include Cain's ®, Ireland ® and McGarvey ®. For more information, visit: www.farmerbros.com .

The Farmer Brothers Company logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=8738

Forward-Looking Statements

Certain statements contained in this press release are not based on historical facts 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," "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 SEC. Factors that could cause actual results to differ materially from those in forward-looking statements include, but are not limited to, fluctuations in availability and cost of green coffee, competition, organizational changes, the impact of a weaker economy, business conditions in the coffee industry and food industry in general, the Company's continued success in attracting new customers, variances from budgeted sales mix and growth rates, weather and special or unusual events, changes in the quality or dividend stream of the third parties securities and other investment vehicles in which the Company has invested its short-term assets, as well as other risks described in this press release and other factors described from time to time in the Company's filings with the SEC.

         
FARMER BROS. CO.
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except share and per share data)
(Unaudited)
         
         
  Three Months Ended December 31, Six Months Ended December 31,
  2012 2011 2012 2011
Net sales $ 135,705 $ 131,770 $ 254,858 $ 252,967
Cost of goods sold 85,352 87,229 159,884 168,741
Gross profit 50,353 44,541 94,974 84,226
Selling expenses 40,765 36,771 78,036 72,452
General and administrative expenses 9,165 9,071 18,058 17,705
Pension withdrawal expense 4,348 4,348
Operating expenses 49,930 50,190 96,094 94,505
Income (loss) from operations 423 (5,649) (1,120) (10,279)
Other (expense) income :        
Dividend income 284 304 543 663
Interest income 99 21 191 36
Interest expense (463) (506) (920) (1,081)
Other, net (7,656) 1,780 (2,711) (627)
Total other (expense) income (7,736) 1,599 (2,897) (1,009)
Loss before taxes (7,313) (4,050) (4,017) (11,288)
Income tax (benefit) expense (19) 60 403 406
Net loss $ (7,294) $ (4,110) $ (4,420) $ (11,694)
Net loss per common share—basic and diluted $ (0.47) $ (0.27) $ (0.28) $ (0.77)
Weighted average common shares outstanding—basic and diluted 15,548,094 15,247,215 15,519,980 15,214,712
         

Non-GAAP Financial Measures

In addition to net income (loss) determined in accordance with United States Generally Accepted Accounting Principles (GAAP), the Company uses certain non-GAAP financial measures, including "EBITDAE" in assessing its operating performance. The Company believes that this non-GAAP financial measure serves as an appropriate measure to be used in evaluating the performance of its business.

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