Third Quarter Fiscal 2013 Operating Income Improved $3.5 Million Compared to the Same Quarter of Last Fiscal Year
TORRANCE, Calif., May 6, 2013 (GLOBE NEWSWIRE) -- Farmer Bros. Co. (Nasdaq:FARM), a manufacturer, wholesaler and distributor of coffee, tea and culinary products, today reported financial results for the three and nine months ended March 31, 2013.
Fiscal Third Quarter ResultsNet sales for the third quarter of fiscal 2013 increased $4.8 million, or 4%, to $126.3 million as compared to $121.5 million in the third quarter of the prior fiscal year. The increase was primarily due to increases in sales of the Company's coffee and tea products. Gross profit in the third quarter of fiscal 2013 increased $5.6 million, or 13%, to $48.7 million, as compared to $43.1 million in the third quarter of the prior fiscal year. Gross profit in the third quarter of fiscal 2013 included the expected beneficial effect of the liquidation of LIFO inventory quantities in the amount of $0.2 million as compared to $2.2 million in the third quarter of the prior fiscal year. Gross margin increased to 39% in the third quarter of fiscal 2013 from 36% in the third quarter of the prior fiscal year. This gross margin increase is primarily due to a 29% lower average cost of green coffee beans purchased compared to the same period in the prior fiscal year. Operating expenses in the third quarter of fiscal 2013 increased $2.0 million, or 4.3%, to $49.3 million from $47.3 million in the third quarter of the prior fiscal year. Third quarter operating expenses were 39% of sales, consistent with the third quarter operating expenses of the prior fiscal year. Operating expenses in the third quarter of fiscal 2013 included higher expenses resulting from the Company's investments in additional sales and marketing training, expenses related to the launch of the Artisan Collection by Farmer Brothers ™ and the new Farmer Brothers teas, and higher expenses related to severance. Third quarter fiscal 2013 operating income improved $3.5 million to an operating loss of $(0.6) million as compared to an operating loss of $(4.1) million in the third quarter of the prior fiscal year.
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