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TORRANCE, Calif., Feb. 10, 2014 (GLOBE NEWSWIRE) -- Farmer Bros. Co. (Nasdaq:FARM), today reported financial results for the three and six months ended December 31, 2013.
Second Quarter Fiscal 2014 Highlights:
Net sales increased 4.8% to $142.1 million in the second quarter;
Gross profit increased 10.1% to $55.4 million in the second quarter;
Income from operations was $5.7 million in the second quarter compared to $0.5 million; and
Net income was $4.7 million, or $0.29 per diluted common share, compared to net loss of $(7.2) million, or $(0.46) per diluted common share.
(All comparisons above are to the second quarter of fiscal 2013)
"Overall, it was a very solid quarter in our key season," stated CEO, Michael Keown. "Volume was strong and we continued to hold the line on costs." Mr. Keown continued, "it is important to note that there were several events outside the norm that helped the quarter including a large storm-related insurance recovery."
Fiscal Three Month Results:
Net sales in the second quarter of fiscal 2014 increased $6.4 million, or 4.8%, to $142.1 million from $135.7 million in the second quarter of the prior fiscal year. The increase in net sales was primarily due to increases in sales of coffee and tea products.
Gross profit in the second quarter of fiscal 2014 increased $5.0 million, or 10.1%, to $55.4 million, as compared to $50.4 million during the second quarter of the prior fiscal year, primarily due to the increase in net sales. Gross profit in the second quarter of the prior fiscal year included the expected beneficial effect of the liquidation of LIFO inventory quantities in the amount of $0.5 million. Gross margin increased 190 basis points to 39.0% in the second quarter of fiscal 2014 from 37.1% in the second quarter of the prior fiscal year, primarily due to a 29% lower average cost of green coffee purchased. The increases in gross profit and gross margin in the second quarter of fiscal 2014 were partially offset by $3.7 million in coffee hedging costs related to the hedged transactions that affected earnings in this period.