Farmer Bros (NASDAQ:FARM) released second-quarter financial results and hosted an earnings call on Friday. Read the complete transcript below.Benzinga APIs provide real-time access to earnings call transcripts and financial data. Visit https://www.benzinga.com/apis/ to learn more.Access the full call at https://dpregister.com/DiamondPassRegistration/register?confirmationNumber=10205081&linkSecurityString=1008a540759Full TranscriptVanceJohnSummaryAdjusted EBITDA for the quarter was $484,000, significantly do ...

Core Viewpoint - Deveron Corp. has sold substantially all of its assets in a transaction with RRL Ultimate Parent, LLC and other purchasers, as part of a share and asset purchase agreement [1]. Company Overview - Deveron is an agriculture technology company focused on using data and insights to enhance agricultural productivity, reduce costs, and improve farm outcomes. The company employs a digital process that leverages data collected from farms across North America to provide unbiased production decision interpretations and optimize input use [4]. Transaction Details - The transaction involves a share and asset purchase agreement with multiple parties, including RRL Ultimate Parent, LLC and Maple NewCo, LLC, along with various asset vendors [1]. - Following the completion of the transaction, the company may be subject to migration to the NEX Board of the TSXV unless it can demonstrate compliance with the Continued Listing Requirements [2].

分组1 - Farmer Brothers reported a quarterly loss of $0.22 per share, which was worse than the Zacks Consensus Estimate of a loss of $0.14, and compared to earnings of $0.06 per share a year ago, indicating a significant earnings surprise of -57.14% [1] - The company posted revenues of $88.92 million for the quarter ended December 2025, surpassing the Zacks Consensus Estimate by 1.63%, but down from $90.02 million in the same quarter last year [2] - Over the last four quarters, Farmer Brothers has surpassed consensus EPS estimates only once, and has topped consensus revenue estimates two times [2] 分组2 - The stock has increased approximately 9.6% since the beginning of the year, while the S&P 500 has declined by 0.2% [3] - The current consensus EPS estimate for the upcoming quarter is -$0.16 on revenues of $85.5 million, and for the current fiscal year, it is -$0.61 on revenues of $340.1 million [7] - The Zacks Industry Rank for Food - Natural Foods Products is currently in the bottom 20% of over 250 Zacks industries, indicating potential challenges for the sector [8]

Core Viewpoint - Farmer Brothers has released its fiscal second quarter 2026 earnings results, which are available on its Investor Relations website and filed with the SEC [1][2]. Financial Information - The financial information presented during the earnings call is unaudited, and management's remarks may include forward-looking statements regarding the company's future expectations and plans [2][3]. - The company will reference non-GAAP financial measures, including adjusted EBITDA and adjusted EBITDA margin, to assess its operating performance [3].

Financial Data and Key Metrics Changes - Adjusted EBITDA for the quarter was approximately $484,000, a significant decrease from $5.9 million in the prior year period [8] - Net sales decreased by 1% to $88.9 million compared to $90 million during the prior year period [8] - Gross margin was reported at 36.3%, reflecting a decline of 680 basis points compared to the prior year [8] Business Line Data and Key Metrics Changes - Total coffee pounds sold decreased by just under 3% year-over-year [5] - Operating costs for the quarter decreased by $1.4 million to $36.4 million, representing 40.9% of net sales, compared to 42% in the prior year period [9] Market Data and Key Metrics Changes - U.S. consumer confidence fell to its lowest level since May 2014, impacting consumer behavior [5] - National sentiment regarding purchasing power was reported to be more than 20% lower than a year ago [5] Company Strategy and Development Direction - The company aims to drive top-line revenue growth and address customer and coffee pound degradation by leveraging its DSD network and expanding its white label customer portfolio [6] - The company is optimistic about recent reductions in tariff rates and declines in Arabica and Robusta commodity markets, expecting improvements in gross margins starting in the fourth quarter of fiscal 2026 [6] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenging operating environment due to higher costs and macroeconomic pressures but expressed confidence in their strategic direction [4] - The company anticipates some relief in gross margins beginning in the fourth quarter of fiscal 2026, with further benefits expected in fiscal 2027 [6] Other Important Information - The company recorded a net loss of $4.9 million in the second quarter, compared to a net income of $200,000 in the same period of fiscal 2025 [9] - As of December 31, 2025, the company had $4.2 million in unrestricted cash and cash equivalents, along with $24.6 million available under its revolving credit facility [10] Q&A Session Summary - No specific questions or answers were provided in the transcript, indicating that the call concluded without a Q&A segment [11]

Sales Performance - Net sales for the three months ended December 31, 2025 decreased by $1.1 million, or 1.2%, to $88.9 million compared to $90.0 million in the same period of 2024[110]. - Net sales for the six months ended December 31, 2025 decreased by $4.6 million, or 2.6%, to $170.5 million from $175.1 million in the same period of 2024[111]. - Unit sales decreased by 9.6%, while average unit price increased by 9.3% in the three months ended December 31, 2025, contributing to the overall decrease in net sales[112]. - Unit sales decreased by 10.2%, while average unit price increased by 8.5%, leading to a net sales decrease of 2.6% for the six months ended December 31, 2025[113]. Profitability - Gross margin for the three months ended December 31, 2025 was 36.3%, down from 43.1% in the same period of 2024, representing a decline of 6.8 percentage points[105]. - Gross profit for the three months ended December 31, 2025, decreased to $32.3 million, down from $38.8 million in the same period of 2024, resulting in a gross margin decrease to 36.3% from 43.1%[114][115]. - For the six months ended December 31, 2025, gross profit decreased to $64.7 million from $76.2 million, with gross margin declining to 37.9% from 43.5%[116]. - Net loss for the three months ended December 31, 2025 was $4.9 million, compared to a net income of $0.2 million in the same period of 2024, marking a significant decline of 2,417.1%[105]. - EBITDA for the three months ended December 31, 2025 was $(1.7) million, a decrease of 146.4% compared to $3.7 million in the same period of 2024[105]. - Adjusted EBITDA for the three months ended December 31, 2025, was $0.5 million, with an Adjusted EBITDA margin of 0.5%, compared to $5.9 million and 6.6% in the prior year[128]. Operating Expenses - Operating expenses as a percentage of sales for the three months ended December 31, 2025 were 40.9%, an improvement of 1.1 percentage points compared to 42.0% in the same period of 2024[105]. - Operating expenses for the three months ended December 31, 2025, decreased by $1.4 million to $36.4 million, representing 40.9% of net sales, down from 42.0% in the prior year[117]. - For the six months ended December 31, 2025, operating expenses decreased by $5.9 million to $72.0 million, or 42.2% of net sales, compared to 44.5% in the prior year[118]. - The company reported a significant increase in general and administrative expenses, which rose by 7.6% to $8.8 million for the three months ended December 31, 2025 compared to $9.5 million in the same period of 2024[109]. Cash Flow and Financing - Net cash used in operating activities for the six months ended December 31, 2025 was $5.8 million, a decrease of $10.8 million compared to net cash provided of $5.0 million in the same period of 2024, primarily due to increased green coffee commodity costs[141]. - Net cash used in investing activities during the six months ended December 31, 2025 was $3.7 million, a decrease from $5.2 million in the same period of 2024, attributed to a reduction in capital expenditures[142]. - Net cash provided by financing activities for the six months ended December 31, 2025 was $6.9 million, compared to a net cash used of $0.1 million in the same period of 2024, mainly due to net borrowing proceeds of $7.0 million under the Credit Facility[143]. - The company had outstanding borrowings on the Revolver Credit Facility of $21.3 million as of December 31, 2025[137]. - As of December 31, 2025, the company had $4.2 million in unrestricted cash and cash equivalents, and $0.2 million in restricted cash, with $24.6 million available for borrowing under its Revolver Credit Facility[139]. Capital Expenditures - Total capital expenditures for the three months ended December 31, 2025 were $1.8 million, a decrease of 9.9% from $2.0 million in the same period of 2024[105]. - Capital expenditures for the six months ended December 31, 2025 were $3.8 million, down from $5.4 million in 2024, with anticipated expenditures of $9.0 million to $11.0 million for fiscal 2026[144]. - The company expects to finance capital expenditures through cash flows from operations and borrowings under its Credit Facility[144]. Commitments and Future Outlook - The company had committed to purchase green coffee inventory totaling $39.6 million under fixed-price contracts and $12.4 million in inventory and other purchases under non-cancelable purchase orders as of December 31, 2025[146]. - Total operating and finance lease payment commitments amounted to $34.5 million as of December 31, 2025[147]. - The company anticipates increased commodity cost volatility and economic uncertainty due to macroeconomic trends and tariffs, which may negatively impact future net sales and profitability[134]. - The company operates a production and distribution facility in Portland, Oregon, with a nationwide DSD network of over 200 delivery routes as of December 31, 2025[133]. - There were no off-balance sheet arrangements as of December 31, 2025[150].

Financial Performance - Net sales for the second quarter of fiscal 2026 were $88.9 million, a decrease of $1 million, or 1%, compared to the prior year period[11]. - Gross profit was $32 million, representing a gross margin of 36.3%, down from $38.8 million and 43.1% in the second quarter of fiscal 2025[11]. - The net loss for the second quarter of fiscal 2026 was $4.9 million, compared to a net income of $200,000 in the prior year period[11]. - Adjusted EBITDA was $484,000 for the second quarter of fiscal 2026, down from $5.9 million in the second quarter of fiscal 2025[11]. - Net loss for the six months ended December 31, 2025, was $8,891,000, compared to a net loss of $4,792,000 for the same period in 2024[21]. - EBITDA for the six months ended December 31, 2025, was $(2,487,000), with an EBITDA margin of (1.5)%, compared to $2,335,000 and an EBITDA margin of 1.3% for the same period in 2024[27]. - Adjusted EBITDA for the six months ended December 31, 2025, was $1,848,000, with an Adjusted EBITDA margin of 1.1%, compared to $7,317,000 and an Adjusted EBITDA margin of 4.2% for the same period in 2024[29]. Operating Expenses - Operating expenses were $36.4 million, or 40.9% of net sales, compared to $37.8 million, or 42%, in the second quarter of fiscal 2025, including a $700,000 decrease in general and administrative expenses[11]. Cash and Liquidity - As of December 31, 2025, the company had $4.2 million in unrestricted cash and cash equivalents and $24.6 million available under its revolving credit facility[5]. - Cash flows from operating activities resulted in a net cash used of $5,793,000 for the six months ended December 31, 2025, compared to net cash provided of $5,046,000 for the same period in 2024[21]. - Cash and cash equivalents at the end of the period were $4,364,000, down from $5,734,000 at the end of the same period in 2024[21]. - Proceeds from credit facilities amounted to $7,000,000, with no repayments on credit facilities during the six months ended December 31, 2025[21]. Assets and Liabilities - Total assets as of December 31, 2025, were $151.5 million, down from $161.2 million as of June 30, 2025[19]. - Total liabilities were $115.8 million as of December 31, 2025, compared to $117.7 million as of June 30, 2025[19]. - The company reported an accumulated deficit of $53.8 million as of December 31, 2025[19]. Depreciation and Provisions - The company incurred depreciation and amortization expenses of $5,208,000 for the six months ended December 31, 2025, compared to $5,817,000 for the same period in 2024[21]. - The company recognized a provision for credit losses of $464,000 for the six months ended December 31, 2025, compared to $322,000 for the same period in 2024[21]. - Right-of-use assets obtained in exchange for new operating lease liabilities amounted to $3,356,000 for the six months ended December 31, 2025[21]. Future Outlook - Farmer Brothers Coffee expects gross margin to remain above 35% for the remainder of fiscal 2026 despite current economic pressures[3].

Core Insights - Farmer Brothers Coffee Co. reported a challenging second quarter for fiscal 2026, with a focus on improving operational costs and maintaining a gross margin above 35% despite economic pressures [2][11]. Financial Performance - Net sales for the second quarter were $88.9 million, a decrease of $1 million or 1% compared to the same period last year [11]. - Gross profit was $32 million, representing a gross margin of 36.3%, down from $38.8 million or 43.1% in the prior year [11]. - Operating expenses totaled $36.4 million, accounting for 40.9% of net sales, a reduction from $37.8 million or 42% in the same quarter of the previous year [11]. - The company reported a net loss of $4.9 million, compared to a net income of $200,000 in the prior year [11]. - Adjusted EBITDA was $484,000, significantly lower than $5.9 million in the second quarter of fiscal 2025 [11]. Balance Sheet and Liquidity - As of December 31, 2025, the company had $4.2 million in unrestricted cash and cash equivalents, with an additional $24.6 million available under its revolving credit facility [4]. Company Overview - Farmer Brothers Coffee Co. is a national coffee roaster and distributor, offering a range of products including organic and sustainably produced coffee, tea, and culinary products [8][9]. - The company serves a diverse customer base, including independent restaurants, large institutional buyers, and grocery chains [9].

Core Viewpoint - Farmer Brothers Coffee Co. is set to release its second quarter 2026 financial results on February 13, 2026, after market close, which will include a 10-Q filing and earnings results release [1] Group 1: Financial Results Announcement - The financial results for the period ending December 31, 2025, will be published on the Investor Relations section of the company's website [1] - An audio-only investor conference call and webcast will be held on February 13, 2026, at 5 p.m. Eastern, where management will review the quarter and provide a business update [2] Group 2: Company Overview - Founded in 1912, Farmer Brothers Coffee Co. is a national coffee roaster, wholesaler, equipment servicer, and distributor of coffee, tea, and culinary products [3] - The company offers a variety of products including organic, Direct Trade, and sustainably produced coffee, as well as tea, cappuccino mixes, spices, and baking/biscuit mixes [3] Group 3: Customer Base and Brands - Farmer Brothers Coffee Co. serves a diverse range of U.S.-based customers, from small independent restaurants to large institutional buyers such as hotels, casinos, and grocery chains [4] - The company's primary brands include Farmer Brothers, Boyd's Coffee, SUM>ONE Coffee Roasters, West Coast Coffee, Cain's, and China Mist [4]

Core Viewpoint - Deveron Corp. has successfully held a special meeting of shareholders where all proposed resolutions were approved, marking significant changes for the company, including a major asset sale and a name change [1][2][3][4][5][6]. Group 1: Approval of Key Resolutions - Shareholders approved the sale of substantially all of the company's assets, with 97.922% of shareholders in favor, and 97.542% of minority shareholders supporting the resolution [2]. - A name change from "Deveron Corp." to "Finis Holdings Inc." was approved by 97.921% of shareholders present [3]. - The delisting of the company's common shares from the TSX Venture Exchange received approval from 97.922% of shareholders and 97.361% of minority shareholders [4]. - Shareholders approved the application to cease being a reporting issuer, with 97.922% in favor [5]. - A resolution for the voluntary winding up of the company was approved by 97.922% of shareholders and 97.542% of minority shareholders [6]. Group 2: Transaction and Future Outlook - The completion of the asset sale transaction is subject to the satisfaction of all conditions precedent, with an anticipated closing date around January 15, 2026 [7].