TORRANCE, Calif., Nov. 7, 2013 (GLOBE NEWSWIRE) -- Farmer Bros. Co. (Nasdaq:FARM) today reported financial results for the first quarter of fiscal 2014 ended September 30, 2013. First Quarter Fiscal 2014 Highlights:
- Net sales increased 7.9% to $128.6 million in the first quarter;
- Gross profit increased 10.9% to $49.5 million in the first quarter;
- Income from operations was $2.9 million in the first quarter compared to loss from operations of $(1.4) million; and
- Net income was $1.8 million, or $0.11 per common share, compared to $3.0 million, or $0.19 per common share.
(All comparisons above are to the first quarter of fiscal 2013)"We are pleased with our ability to report improved financial results for the first quarter of fiscal 2014, including operating income of $2.9 million, which is the highest first quarter operating income in more than ten years," stated Mike Keown, President and Chief Executive Officer of Farmer Bros. Co. "Our team continues to work very diligently to execute our core strategies and we believe Farmer Brothers has a strong foundation for future growth as we are still in the early stages of realizing the benefits of our efforts." Net sales for the first quarter of fiscal 2014 increased $9.4 million, or 7.9%, to $128.6 million from $119.2 million in the first quarter of the prior fiscal year primarily due to increases in sales of coffee and tea products. Gross profit in the first quarter of fiscal 2014 increased $4.9 million, or 10.9%, to $49.5 million, as compared to $44.6 million in the first quarter of fiscal 2013 primarily due the increase in net sales and lower average cost of green coffee purchased, partially offset by $2.2 million in coffee-related derivative losses reclassified into cost of goods sold during the period. Gross margin increased 110 basis points to 38.5% in the fiscal quarter ended September 30, 2013 from 37.4% in the comparable period in the prior fiscal year, primarily due to a 17% lower average cost of green coffee purchased.