☑ | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
☐ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Delaware | 95-0725980 | ||||||||||
(State of Incorporation) | (I.R.S. Employer Identification No.) | ||||||||||
1912 Farmer Brothers Drive, | Northlake, | Texas | 76262 | ||||||||
(Address of Principal Executive Offices; Zip Code) | |||||||||||
(Registrant’s Telephone Number, Including Area Code) | |||||||||||
Securities registered pursuant to Section 12(b) of the Act: | |||||||||||
Title of Each Class | Trading Symbol(s) | Name of Each Exchange on Which Registered | |||||||||
Common Stock, $1.00 par value | FARM | NASDAQ Global Select Market | |||||||||
None | |||||||||||
(Former Name, Former Address and Former Fiscal Year, if Changed Since Last Report) |
Large accelerated filer | ☐ | Accelerated filer | ☒ | |||||||||||||||||
Non-accelerated filer | ☐ | Smaller reporting company | ☐ | |||||||||||||||||
Emerging growth company | ☐ | |||||||||||||||||||
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the | ||||||||||||||||||||
Exchange Act. | ☐ |
Page | |||||
December 31, 2020 | June 30, 2020 | |||||||||||||||||
March 31, 2020 | June 30, 2019 | |||||||||||||||||
ASSETS | ASSETS | |||||||||||||||||
Current assets: | Current assets: | |||||||||||||||||
Cash and cash equivalents | $ | 26,389 | $ | 6,983 | Cash and cash equivalents | $ | 5,857 | $ | 60,013 | |||||||||
Accounts receivable, net | 50,889 | 55,155 | Accounts receivable, net | 41,864 | 40,882 | |||||||||||||
Inventories | 85,934 | 87,910 | Inventories | 80,617 | 67,408 | |||||||||||||
Income tax receivable | 1,020 | 1,191 | Income tax receivable | 0 | 831 | |||||||||||||
Short-term derivative assets | 2,833 | 1,865 | Short-term derivative assets | 3,772 | 165 | |||||||||||||
Prepaid expenses | 6,230 | 6,804 | Prepaid expenses | 8,303 | 7,414 | |||||||||||||
Total current assets | 173,295 | 159,908 | Total current assets | 140,413 | 176,713 | |||||||||||||
Property, plant and equipment, net | 169,361 | 189,458 | Property, plant and equipment, net | 159,855 | 165,633 | |||||||||||||
Goodwill | — | 36,224 | ||||||||||||||||
Intangible assets, net | 21,264 | 28,878 | Intangible assets, net | 19,457 | 20,662 | |||||||||||||
Other assets | 9,144 | 9,468 | Other assets | 8,700 | 8,564 | |||||||||||||
Long-term derivatives assets | 470 | 674 | Long-term derivatives assets | 0 | 10 | |||||||||||||
Right-of-use operating lease assets | 21,789 | — | Right-of-use operating lease assets | 27,658 | 21,117 | |||||||||||||
Total assets | $ | 395,323 | $ | 424,610 | Total assets | $ | 356,083 | $ | 392,699 | |||||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||||||||||||
Current liabilities: | Current liabilities: | |||||||||||||||||
Accounts payable | 59,577 | 72,771 | Accounts payable | 49,797 | 36,987 | |||||||||||||
Accrued payroll expenses | 14,329 | 14,518 | Accrued payroll expenses | 15,769 | 9,394 | |||||||||||||
Operating leases liabilities - current | 6,031 | — | Operating leases liabilities - current | 7,029 | 5,854 | |||||||||||||
Short-term derivative liabilities | 1,401 | 1,474 | Short-term derivative liabilities | 1,428 | 5,255 | |||||||||||||
Other current liabilities | 6,476 | 7,309 | Other current liabilities | 7,489 | 6,802 | |||||||||||||
Total current liabilities | 87,814 | 96,072 | Total current liabilities | 81,512 | 64,292 | |||||||||||||
Long-term borrowings under revolving credit facility | 80,000 | 92,000 | Long-term borrowings under revolving credit facility | 82,000 | 122,000 | |||||||||||||
Accrued pension liabilities | 45,145 | 47,216 | Accrued pension liabilities | 56,358 | 58,772 | |||||||||||||
Accrued postretirement benefits | 9,065 | 23,024 | Accrued postretirement benefits | 10,309 | 9,993 | |||||||||||||
Accrued workers’ compensation liabilities | 5,000 | 4,747 | Accrued workers’ compensation liabilities | 3,687 | 4,569 | |||||||||||||
Operating lease liabilities - noncurrent | 16,010 | — | Operating lease liabilities - noncurrent | 20,770 | 15,628 | |||||||||||||
Other long-term liabilities | 4,553 | 4,057 | Other long-term liabilities | 5,254 | 5,532 | |||||||||||||
Total liabilities | $ | 247,587 | $ | 267,116 | Total liabilities | $ | 259,890 | $ | 280,786 | |||||||||
Commitments and contingencies | Commitments and contingencies | 0 | 0 | |||||||||||||||
Stockholders’ equity: | Stockholders’ equity: | |||||||||||||||||
Preferred stock, $1.00 par value, 500,000 shares authorized; Series A Convertible Participating Cumulative Perpetual Preferred Stock, 21,000 shares authorized; 14,700 shares issued and outstanding as of March 31, 2020 and June 30, 2019; liquidation preference of $16,038 and $15,624 as of March 31, 2020 and June 30, 2019, respectively | 15 | 15 | ||||||||||||||||
Common stock, $1.00 par value, 25,000,000 shares authorized; 17,231,473 and 17,042,132 shares issued and outstanding as of March 31, 2020 and June 30, 2019, respectively | 17,234 | 17,042 | ||||||||||||||||
Preferred stock, $1.00 par value, 500,000 shares authorized; Series A Convertible Participating Cumulative Perpetual Preferred Stock, 21,000 shares authorized; 14,700 shares issued and outstanding as of December 31, 2020 and June 30, 2020; liquidation preference of $16,463 and $16,178 as of December 31, 2020 and June 30, 2020, respectively | Preferred stock, $1.00 par value, 500,000 shares authorized; Series A Convertible Participating Cumulative Perpetual Preferred Stock, 21,000 shares authorized; 14,700 shares issued and outstanding as of December 31, 2020 and June 30, 2020; liquidation preference of $16,463 and $16,178 as of December 31, 2020 and June 30, 2020, respectively | 15 | 15 | |||||||||||||||
Common stock, $1.00 par value, 25,000,000 shares authorized; 17,591,084 and 17,347,774 shares issued and outstanding as of December 31, 2020 and June 30, 2020, respectively | Common stock, $1.00 par value, 25,000,000 shares authorized; 17,591,084 and 17,347,774 shares issued and outstanding as of December 31, 2020 and June 30, 2020, respectively | 17,591 | 17,348 | |||||||||||||||
Additional paid-in capital | 61,027 | 57,912 | Additional paid-in capital | 63,739 | 62,043 | |||||||||||||
Retained earnings | 118,394 | 146,177 | Retained earnings | 84,256 | 108,536 | |||||||||||||
Accumulated other comprehensive loss | (48,934 | ) | (63,652 | ) | Accumulated other comprehensive loss | (69,408) | (76,029) | |||||||||||
Total stockholders’ equity | $ | 147,736 | $ | 157,494 | Total stockholders’ equity | $ | 96,193 | $ | 111,913 | |||||||||
Total liabilities and stockholders’ equity | $ | 395,323 | $ | 424,610 | Total liabilities and stockholders’ equity | $ | 356,083 | $ | 392,699 |
Three Months Ended March 31, | Nine Months Ended March 31, | Three Months Ended December 31, | Six Months Ended December 31, | |||||||||||||||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | 2020 | 2019 | 2020 | 2019 | |||||||||||||||||||||||||||||||
Net sales | $ | 129,139 | $ | 146,679 | $ | 420,237 | $ | 453,892 | Net sales | $ | 104,571 | $ | 152,498 | $ | 201,841 | $ | 291,098 | |||||||||||||||||||||
Cost of goods sold | 91,190 | 106,779 | 297,662 | 312,513 | Cost of goods sold | 78,321 | 108,513 | 153,173 | 206,472 | |||||||||||||||||||||||||||||
Gross profit | 37,949 | 39,900 | 122,575 | 141,379 | Gross profit | 26,250 | 43,985 | 48,668 | 84,626 | |||||||||||||||||||||||||||||
Selling expenses | 31,968 | 34,422 | 100,488 | 111,323 | Selling expenses | 24,769 | 34,906 | 48,268 | 68,520 | |||||||||||||||||||||||||||||
General and administrative expenses | 8,833 | 11,306 | 32,839 | 32,063 | General and administrative expenses | 11,570 | 11,266 | 21,316 | 24,006 | |||||||||||||||||||||||||||||
Restructuring and other transition expenses | — | 26 | — | 4,700 | ||||||||||||||||||||||||||||||||||
Net losses (gains) from sales of assets | 287 | 248 | (23,375 | ) | 971 | |||||||||||||||||||||||||||||||||
Impairment of goodwill and intangible assets | 42,030 | — | 42,030 | — | ||||||||||||||||||||||||||||||||||
Net gains from sales of assets | Net gains from sales of assets | (1,168) | (11,057) | (549) | (23,662) | |||||||||||||||||||||||||||||||||
Impairment of fixed assets | Impairment of fixed assets | 1,243 | 0 | 1,243 | 0 | |||||||||||||||||||||||||||||||||
Operating expenses | 83,118 | 46,002 | 151,982 | 149,057 | Operating expenses | 36,414 | 35,115 | 70,278 | 68,864 | |||||||||||||||||||||||||||||
Loss from operations | (45,169 | ) | (6,102 | ) | (29,407 | ) | (7,678 | ) | ||||||||||||||||||||||||||||||
(Loss) income from operations | (Loss) income from operations | (10,164) | 8,870 | (21,610) | 15,762 | |||||||||||||||||||||||||||||||||
Other (expense) income: | Other (expense) income: | |||||||||||||||||||||||||||||||||||||
Interest expense | (2,478 | ) | (2,981 | ) | (7,885 | ) | (9,165 | ) | Interest expense | (2,938) | (2,859) | (6,181) | (5,407) | |||||||||||||||||||||||||
Postretirement benefits curtailment and pension settlement charge | 5,760 | — | 5,760 | (10,948 | ) | |||||||||||||||||||||||||||||||||
Other, net | 1,076 | 495 | 2,941 | 2,105 | Other, net | 9,080 | 1,662 | 17,639 | 1,865 | |||||||||||||||||||||||||||||
Total other income (expense) | 4,358 | (2,486 | ) | 816 | (18,008 | ) | Total other income (expense) | 6,142 | (1,197) | 11,458 | (3,542) | |||||||||||||||||||||||||||
Loss before taxes | (40,811 | ) | (8,588 | ) | (28,591 | ) | (25,686 | ) | ||||||||||||||||||||||||||||||
Income tax (benefit) expense | (1,034 | ) | 43,161 | (1,222 | ) | 39,149 | ||||||||||||||||||||||||||||||||
Net loss | (39,777 | ) | (51,749 | ) | (27,369 | ) | (64,835 | ) | ||||||||||||||||||||||||||||||
(Loss) income before taxes | (Loss) income before taxes | (4,022) | 7,673 | (10,152) | 12,220 | |||||||||||||||||||||||||||||||||
Income tax expense (benefit) | Income tax expense (benefit) | 13,703 | (81) | 13,845 | (188) | |||||||||||||||||||||||||||||||||
Net (loss) income | Net (loss) income | (17,725) | 7,754 | (23,997) | 12,408 | |||||||||||||||||||||||||||||||||
Less: Cumulative preferred dividends, undeclared and unpaid | 139 | 134 | 414 | 400 | Less: Cumulative preferred dividends, undeclared and unpaid | 143 | 138 | 284 | 275 | |||||||||||||||||||||||||||||
Net loss available to common stockholders | $ | (39,916 | ) | $ | (51,883 | ) | $ | (27,783 | ) | $ | (65,235 | ) | ||||||||||||||||||||||||||
Net loss available to common stockholders per common share—basic | $ | (2.32 | ) | $ | (3.05 | ) | $ | (1.62 | ) | $ | (3.84 | ) | ||||||||||||||||||||||||||
Net loss available to common stockholders per common share—diluted | $ | (2.32 | ) | $ | (3.05 | ) | $ | (1.62 | ) | $ | (3.84 | ) | ||||||||||||||||||||||||||
Net (loss) income available to common stockholders | Net (loss) income available to common stockholders | $ | (17,868) | $ | 7,616 | $ | (24,281) | $ | 12,133 | |||||||||||||||||||||||||||||
Net (loss) income available to common stockholders per common share—basic | Net (loss) income available to common stockholders per common share—basic | $ | (1.02) | $ | 0.44 | $ | (1.39) | $ | 0.71 | |||||||||||||||||||||||||||||
Net (loss) income available to common stockholders per common share—diluted | Net (loss) income available to common stockholders per common share—diluted | $ | (1.02) | $ | 0.43 | $ | (1.39) | $ | 0.69 | |||||||||||||||||||||||||||||
Weighted average common shares outstanding—basic | 17,230,879 | 17,003,206 | 17,161,477 | 16,982,247 | Weighted average common shares outstanding—basic | 17,531,521 | 17,159,108 | 17,477,268 | 17,127,153 | |||||||||||||||||||||||||||||
Weighted average common shares outstanding—diluted | 17,230,879 | 17,003,206 | 17,161,477 | 16,982,247 | Weighted average common shares outstanding—diluted | 17,531,521 | 17,583,335 | 17,477,268 | 17,550,144 |
Three Months Ended December 31, | Six Months Ended December 31, | ||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||
Net (loss) income | $ | (17,725) | $ | 7,754 | $ | (23,997) | $ | 12,408 | |||||||||||||||
Other comprehensive (loss) income, net of tax: | |||||||||||||||||||||||
Unrealized gains on derivative instruments designated as cash flow hedges, net of tax | 3,367 | 11,284 | 7,327 | 7,395 | |||||||||||||||||||
(Losses) gains on derivative instruments designated as cash flow hedges reclassified to cost of goods sold, net of tax | (232) | 4,661 | (260) | 7,249 | |||||||||||||||||||
Losses on derivative instruments de-designated as cash flow hedges reclassified to interest expense, net of tax | 320 | 0 | 659 | 0 | |||||||||||||||||||
Change in pension and retiree benefit obligations, net of tax | 6,184 | 0 | (1,105) | 0 | |||||||||||||||||||
Total comprehensive (loss) income, net of tax | $ | (8,086) | $ | 23,699 | $ | (17,376) | $ | 27,052 |
Three Months Ended March 31, | Nine Months Ended March 31, | ||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||
Net loss | $ | (39,777 | ) | $ | (51,749 | ) | $ | (27,369 | ) | $ | (64,835 | ) | |||
Other comprehensive (loss) income, net of tax: | |||||||||||||||
Unrealized losses on derivative instruments designated as cash flow hedges, net of tax | (7,680 | ) | (5,905 | ) | (285 | ) | (11,254 | ) | |||||||
Losses on derivative instruments designated as cash flow hedges reclassified to cost of goods sold and interest expense, net of tax | 2,042 | 3,201 | 9,290 | 6,311 | |||||||||||
Change in retiree benefit obligations, net of tax | 1,416 | (1,943 | ) | 1,416 | (7,594 | ) | |||||||||
Postretirement benefits curtailment and pension settlement charge, net of taxes | 4,296 | 2,801 | 4,296 | 10,948 | |||||||||||
Total comprehensive loss, net of tax | $ | (39,703 | ) | $ | (53,595 | ) | $ | (12,652 | ) | $ | (66,424 | ) |
FARMER BROS. CO. CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY (UNAUDITED) (In thousands, except share and per share data) | |||||||||||||||||||||||||||||
Preferred Shares | Preferred Stock Amount | Common Shares | Common Stock Amount | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Total | ||||||||||||||||||||||
Balance at June 30, 2019 | 14,700 | $ | 15 | 17,042,132 | $ | 17,042 | $ | 57,912 | $ | 146,177 | $ | (63,652 | ) | $ | 157,494 | ||||||||||||||
Net income | — | — | — | — | — | 4,654 | — | 4,654 | |||||||||||||||||||||
Net reclassification of unrealized losses on cash flow hedges, net of taxes | — | — | — | — | — | — | (1,301 | ) | (1,301 | ) | |||||||||||||||||||
ESOP compensation expense, including reclassifications | — | — | 52,534 | 53 | 807 | — | — | 860 | |||||||||||||||||||||
Share-based compensation | — | — | — | — | (1 | ) | — | — | (1 | ) | |||||||||||||||||||
Issuance of common stock and stock option exercises | — | — | 532 | — | — | — | — | — | |||||||||||||||||||||
Cumulative preferred dividends, undeclared and unpaid | — | — | — | — | — | (137 | ) | — | (137 | ) | |||||||||||||||||||
Balance at September 30, 2019 | 14,700 | $ | 15 | 17,095,198 | $ | 17,095 | $ | 58,718 | $ | 150,694 | $ | (64,953 | ) | $ | 161,569 | ||||||||||||||
Net income | — | — | — | — | — | 7,754 | — | 7,754 | |||||||||||||||||||||
Net reclassification of unrealized losses on cash flow hedges, net of taxes | — | — | — | — | — | — | 15,945 | 15,945 | |||||||||||||||||||||
ESOP compensation expense, including reclassifications | — | — | 55,623 | 56 | 525 | — | — | 581 | |||||||||||||||||||||
Share-based compensation | — | — | — | — | 319 | — | — | 319 | |||||||||||||||||||||
Issuance of common stock and stock option exercises | — | — | 26,627 | 29 | 101 | — | — | 130 | |||||||||||||||||||||
Cumulative preferred dividends, undeclared and unpaid | — | — | — | — | — | (138 | ) | — | (138 | ) | |||||||||||||||||||
Balance at December 31, 2019 | 14,700 | $ | 15 | 17,177,448 | $ | 17,180 | $ | 59,663 | $ | 158,310 | $ | (49,008 | ) | $ | 186,160 | ||||||||||||||
Net loss | — | — | — | — | — | (39,777 | ) | — | (39,777 | ) | |||||||||||||||||||
Net reclassification of unrealized gains on cash flow hedges, net of taxes | — | — | — | — | — | — | (5,638 | ) | (5,638 | ) | |||||||||||||||||||
Postretirement benefits curtailment, net of taxes | — | — | — | — | — | — | 4,296 | 4,296 | |||||||||||||||||||||
Change in retiree benefit obligations, net of taxes | — | — | — | — | — | — | 1,416 | 1,416 | |||||||||||||||||||||
ESOP compensation expense, including reclassifications | — | — | 54,025 | 54 | 854 | — | — | 908 | |||||||||||||||||||||
Share-based compensation | — | — | — | — | 510 | — | — | 510 | |||||||||||||||||||||
Cumulative preferred dividends, undeclared and unpaid | — | — | — | — | — | (139 | ) | — | (139 | ) | |||||||||||||||||||
Balance at March 31, 2020 | 14,700 | 15 | 17,231,473 | 17,234 | 61,027 | 118,394 | (48,934 | ) | 147,736 |
FARMER BROS. CO. CONDENSED STATEMENTS OF STOCKHOLDERS’ EQUITY (UNAUDITED) (Continued) (In thousands, except share and per share data) | |||||||||||||||||||||||||||||||||
Preferred Shares | Preferred Stock Amount | Common Shares | Common Stock Amount | Additional Paid-in Capital | Retained Earnings | Unearned ESOP Shares | Accumulated Other Comprehensive Income (Loss) | Total | |||||||||||||||||||||||||
Balance at June 30, 2018 | 14,700 | $ | 15 | 16,951,659 | $ | 16,952 | $ | 55,965 | $ | 220,307 | $ | (2,145 | ) | $ | (62,039 | ) | $ | 229,055 | |||||||||||||||
Net loss | — | — | — | — | — | (2,986 | ) | — | — | (2,986 | ) | ||||||||||||||||||||||
Net reclassification of unrealized losses on cash flow hedges, net of taxes | — | — | — | — | — | — | — | (4,637 | ) | (4,637 | ) | ||||||||||||||||||||||
ESOP compensation expense, including reclassifications | — | — | — | — | 529 | — | — | — | 529 | ||||||||||||||||||||||||
Share-based compensation | — | — | — | — | 433 | — | — | — | 433 | ||||||||||||||||||||||||
Issuance of common stock and stock option exercises | — | — | 26,042 | 26 | 300 | — | — | — | 326 | ||||||||||||||||||||||||
Cumulative preferred dividends, undeclared and unpaid | — | — | — | — | — | (132 | ) | — | — | (132 | ) | ||||||||||||||||||||||
Balance at September 30, 2018 | 14,700 | 15 | 16,977,701 | 16,978 | 57,227 | 217,189 | (2,145 | ) | (66,676 | ) | 222,588 | ||||||||||||||||||||||
Net loss | — | — | — | — | — | (10,100 | ) | — | — | (10,100 | ) | ||||||||||||||||||||||
Net reclassification of unrealized gains on cash flow hedges, net of taxes | — | — | — | — | — | �� | — | — | 2,398 | 2,398 | |||||||||||||||||||||||
Pension settlement charge, net of taxes | — | — | — | — | — | — | — | 8,147 | 8,147 | ||||||||||||||||||||||||
Change in retiree benefit obligations, net of taxes | — | — | — | — | — | — | — | (5,651 | ) | (5,651 | ) | ||||||||||||||||||||||
ESOP compensation expense, including reclassifications | — | — | — | — | (1,740 | ) | — | 2,145 | — | 405 | |||||||||||||||||||||||
Share-based compensation | — | — | 16,266 | 16 | 474 | — | — | — | 490 | ||||||||||||||||||||||||
Issuance of common stock and stock option exercises | — | — | 8,562 | 9 | 173 | — | — | — | 182 | ||||||||||||||||||||||||
Cumulative preferred dividends, undeclared and unpaid | — | — | — | — | — | (134 | ) | — | — | (134 | ) | ||||||||||||||||||||||
Balance at December 31, 2018 | 14,700 | $ | 15 | 17,002,529 | $ | 17,003 | $ | 56,134 | $ | 206,955 | $ | — | $ | (61,782 | ) | $ | 218,325 | ||||||||||||||||
Net loss | — | — | — | — | — | (51,749 | ) | — | — | (51,749 | ) | ||||||||||||||||||||||
Net reclassification of unrealized losses on cash flow hedges, net of taxes | — | — | — | — | — | — | — | (2,705 | ) | (2,705 | ) | ||||||||||||||||||||||
Pension settlement charge, net of taxes | — | — | — | — | — | — | — | 2,801 | 2,801 | ||||||||||||||||||||||||
Change in retiree benefit obligations, net of taxes | — | — | — | — | — | — | — | (1,943 | ) | (1,943 | ) | ||||||||||||||||||||||
ESOP compensation expense, including reclassifications | — | — | — | — | 700 | — | — | — | 700 | ||||||||||||||||||||||||
Share-based compensation | — | — | 2,032 | 2 | 487 | — | — | — | 489 | ||||||||||||||||||||||||
Cumulative preferred dividends, undeclared and unpaid | — | — | — | — | — | $ | (134 | ) | — | — | $ | (134 | ) | ||||||||||||||||||||
Balance at March 31, 2019 | 14,700 | $ | 15 | 17,004,561 | $ | 17,005 | $ | 57,321 | $ | 155,072 | $ | — | $ | (63,629 | ) | $ | 165,784 |
FARMER BROS. CO. CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY (UNAUDITED) (In thousands, except share and per share data) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Preferred Shares | Preferred Stock Amount | Common Shares | Common Stock Amount | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Total | ||||||||||||||||||||||||||||||||||||||||||||||
Balance at June 30, 2020 | 14,700 | 15 | 17,347,774 | 17,348 | 62,043 | 108,536 | (76,029) | $ | 111,913 | ||||||||||||||||||||||||||||||||||||||||||||
Net loss | — | — | — | — | — | (6,270) | — | (6,270) | |||||||||||||||||||||||||||||||||||||||||||||
Net reclassification of unrealized gains on cash flow hedges, net of taxes | — | — | — | — | — | — | 4,271 | 4,271 | |||||||||||||||||||||||||||||||||||||||||||||
Change in the funded status of retiree benefit obligations, net of taxes | — | — | — | — | — | — | (7,289) | (7,289) | |||||||||||||||||||||||||||||||||||||||||||||
ESOP compensation expense, including reclassifications | — | — | 76,671 | 77 | 323 | — | — | 400 | |||||||||||||||||||||||||||||||||||||||||||||
Share-based compensation | — | — | — | — | 745 | — | — | 745 | |||||||||||||||||||||||||||||||||||||||||||||
Issuance of common stock and stock option exercises | — | — | 7,370 | 7 | (7) | — | — | 0 | |||||||||||||||||||||||||||||||||||||||||||||
Cumulative preferred dividends, undeclared and unpaid | — | — | — | — | — | (142) | — | (142) | |||||||||||||||||||||||||||||||||||||||||||||
Balance at September 30, 2020 | 14,700 | 15 | 17,431,815 | 17,432 | 63,104 | 102,124 | (79,047) | 103,628 | |||||||||||||||||||||||||||||||||||||||||||||
Net loss | — | — | — | — | — | (17,725) | — | (17,725) | |||||||||||||||||||||||||||||||||||||||||||||
Net reclassification of unrealized losses on cash flow hedges, net of taxes | — | — | — | — | — | — | 3,455 | 3,455 | |||||||||||||||||||||||||||||||||||||||||||||
Change in the funded status of retiree benefit obligations, net of taxes | — | — | — | — | — | — | 6,184 | 6,184 | |||||||||||||||||||||||||||||||||||||||||||||
ESOP compensation expense, including reclassifications | — | — | 108,426 | 108 | 287 | — | — | 395 | |||||||||||||||||||||||||||||||||||||||||||||
Share-based compensation | — | — | — | — | 399 | — | — | 399 | |||||||||||||||||||||||||||||||||||||||||||||
Issuance of common stock and stock option exercises | — | — | 50,843 | 51 | (51) | — | — | 0 | |||||||||||||||||||||||||||||||||||||||||||||
Cumulative preferred dividends, undeclared and unpaid | — | — | — | — | — | (143) | — | (143) | |||||||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2020 | 14,700 | $ | 15 | 17,591,084 | $ | 17,591 | $ | 63,739 | $ | 84,256 | $ | (69,408) | $ | 96,193 | |||||||||||||||||||||||||||||||||||||||
FARMER BROS. CO. | |||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) | |||||||
(In thousands) | |||||||
Nine Months Ended March 31, | |||||||
2020 | 2019 | ||||||
Cash flows from operating activities: | |||||||
Net loss | $ | (27,369 | ) | $ | (64,835 | ) | |
Adjustments to reconcile net loss to net cash used in operating activities: | |||||||
Depreciation and amortization | 22,544 | 23,230 | |||||
Restructuring and other transition expenses, net of payments | — | 1,886 | |||||
Deferred income taxes | — | 40,078 | |||||
Impairment of goodwill and intangible assets | 42,030 | — | |||||
Postretirement benefits curtailment and pension settlement charge | (5,760 | ) | 10,948 | ||||
Net (gains) losses from sales of assets | (23,375 | ) | 971 | ||||
Net losses on derivative instruments | 9,830 | 9,228 | |||||
Other adjustments | 3,698 | 4,981 | |||||
Change in operating assets and liabilities: | |||||||
Accounts receivable | 3,745 | (7,651 | ) | ||||
Inventories | 1,004 | 3,937 | |||||
Derivative assets/liabilities, net | (2,472 | ) | (13,229 | ) | |||
Other assets | 1,510 | 180 | |||||
Accounts payable | (13,194 | ) | 8,466 | ||||
Accrued expenses and other liabilities | (4,126 | ) | (10,690 | ) | |||
Net cash provided by operating activities | $ | 8,065 | $ | 7,500 | |||
Cash flows from investing activities: | |||||||
Purchases of property, plant and equipment | (13,114 | ) | (30,393 | ) | |||
Proceeds from sales of property, plant and equipment | 36,733 | 143 | |||||
Net cash provided (used) in investing activities | $ | 23,619 | $ | (30,250 | ) | ||
Cash flows from financing activities: | |||||||
Proceeds from revolving credit facility | $ | 48,000 | $ | 50,642 | |||
Repayments on revolving credit facility | (60,000 | ) | (17,417 | ) | |||
Payments of finance lease obligations | (40 | ) | (185 | ) | |||
Payment of financing costs | (367 | ) | (1,041 | ) | |||
Proceeds from stock option exercises | 129 | 507 | |||||
Net cash (used) provided by financing activities | $ | (12,278 | ) | $ | 32,506 | ||
Net increase in cash and cash equivalents | $ | 19,406 | $ | 9,756 | |||
Cash and cash equivalents at beginning of period | 6,983 | 2,438 | |||||
Cash and cash equivalents at end of period | $ | 26,389 | $ | 12,194 |
FARMER BROS. CO. CONDENSED STATEMENTS OF STOCKHOLDERS’ EQUITY (UNAUDITED) (Continued) (In thousands, except share and per share data) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Preferred Shares | Preferred Stock Amount | Common Shares | Common Stock Amount | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Total | ||||||||||||||||||||||||||||||||||||||||||||||
Balance at June 30, 2019 | 14,700 | $ | 15 | 17,042,132 | $ | 17,042 | $ | 57,912 | $ | 146,177 | $ | (63,652) | 157,494 | ||||||||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | 4,654 | — | 4,654 | |||||||||||||||||||||||||||||||||||||||||||||
Net reclassification of unrealized losses on cash flow hedges, net of taxes | — | — | — | — | — | — | (1,301) | (1,301) | |||||||||||||||||||||||||||||||||||||||||||||
ESOP compensation expense, including reclassifications | — | — | 52,534 | 53 | 807 | — | — | 860 | |||||||||||||||||||||||||||||||||||||||||||||
Share-based compensation | — | — | — | — | (1) | — | — | (1) | |||||||||||||||||||||||||||||||||||||||||||||
Issuance of common stock and stock option exercises | — | — | 532 | — | — | — | — | 0 | |||||||||||||||||||||||||||||||||||||||||||||
Cumulative preferred dividends, undeclared and unpaid | — | — | — | — | — | (137) | — | (137) | |||||||||||||||||||||||||||||||||||||||||||||
Balance at September 30, 2019 | 14,700 | 15 | 17,095,198 | 17,095 | 58,718 | 150,694 | (64,953) | 161,569 | |||||||||||||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | 7,754 | — | 7,754 | |||||||||||||||||||||||||||||||||||||||||||||
Net reclassification of unrealized gains on cash flow hedges, net of taxes | — | — | — | — | — | — | 15,945 | 15,945 | |||||||||||||||||||||||||||||||||||||||||||||
ESOP compensation expense, including reclassifications | — | — | 55,623 | 56 | 525 | — | — | 581 | |||||||||||||||||||||||||||||||||||||||||||||
Share-based compensation | — | — | — | — | 319 | — | — | 319 | |||||||||||||||||||||||||||||||||||||||||||||
Issuance of common stock and stock option exercises | — | — | 26,627 | 29 | 101 | — | — | 130 | |||||||||||||||||||||||||||||||||||||||||||||
Cumulative preferred dividends, undeclared and unpaid | — | — | — | — | — | (138) | — | (138) | |||||||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2019 | 14,700 | $ | 15 | 17,177,448 | $ | 17,180 | $ | 59,663 | $ | 158,310 | $ | (49,008) | $ | 186,160 | |||||||||||||||||||||||||||||||||||||||
FARMER BROS. CO. | |||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - (continued) | |||||||
(In thousands) | |||||||
Nine Months Ended March 31, | |||||||
2020 | 2019 | ||||||
Supplemental disclosure of non-cash investing and financing activities: | |||||||
Non-cash additions to property, plant and equipment | $ | 1,130 | $ | 739 | |||
Non-cash portion of earnout receivable recognized—spice assets sale | $ | — | $ | 592 | |||
Non-cash portion of earnout payable recognized—West Coast Coffee acquisition | $ | — | $ | 1,000 | |||
Non-cash issuance of 401-K common stock | $ | 163 | $ | — | |||
Non-cash - Boyd Coffee post-closing working capital adjustment | $ | — | $ | 2,277 | |||
Cumulative preferred dividends, undeclared and unpaid | $ | 414 | $ | 400 |
FARMER BROS. CO. | |||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) | |||||||||||
(In thousands) | |||||||||||
Six Months Ended December 31, | |||||||||||
2020 | 2019 | ||||||||||
Cash flows from operating activities: | |||||||||||
Net (loss) income | $ | (23,997) | $ | 12,408 | |||||||
Adjustments to reconcile net loss to net cash used in operating activities: | |||||||||||
Depreciation and amortization | 14,349 | 15,211 | |||||||||
Postretirement and Pension benefits gains | (14,577) | 0 | |||||||||
Deferred income taxes | 13,472 | 0 | |||||||||
Impairment of fixed assets | 1,243 | 0 | |||||||||
Net gains from sales of assets | (549) | (23,662) | |||||||||
Net (gains) losses on derivative instruments | (2,093) | 4,075 | |||||||||
Other adjustments | 1,776 | 1,794 | |||||||||
Change in operating assets and liabilities: | |||||||||||
Accounts receivable | (818) | (5,285) | |||||||||
Inventories | (13,209) | 1,804 | |||||||||
Derivative assets/liabilities, net | 1,761 | 1,965 | |||||||||
Other assets | 2,418 | 361 | |||||||||
Accounts payable | 12,430 | (10,608) | |||||||||
Accrued expenses and other | 3,971 | (258) | |||||||||
Net cash used by operating activities | $ | (3,823) | $ | (2,195) | |||||||
Cash flows from investing activities: | |||||||||||
Purchases of property, plant and equipment | (9,636) | (9,007) | |||||||||
Proceeds from sales of property, plant and equipment | 1,926 | 35,247 | |||||||||
Net cash (used) provided in investing activities | $ | (7,710) | $ | 26,240 | |||||||
Cash flows from financing activities: | |||||||||||
Proceeds from revolving credit facility | $ | 21,150 | $ | 38,000 | |||||||
Repayments on revolving credit facility | (61,150) | (60,000) | |||||||||
Payments of finance lease obligations | (9) | (27) | |||||||||
Payment of financing costs | (2,614) | 0 | |||||||||
Proceeds from stock option exercises | 0 | 129 | |||||||||
Net cash used by financing activities | $ | (42,623) | $ | (21,898) | |||||||
Net (decrease) increase in cash and cash equivalents | $ | (54,156) | $ | 2,147 | |||||||
Cash and cash equivalents at beginning of period | 60,013 | 6,983 | |||||||||
Cash and cash equivalents at end of period | $ | 5,857 | $ | 9,130 |
FARMER BROS. CO. | |||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - (continued) | |||||||||||
(In thousands) | |||||||||||
Six Months Ended December 31, | |||||||||||
2020 | 2019 | ||||||||||
Supplemental disclosure of non-cash investing and financing activities: | |||||||||||
Non-cash additions to property, plant and equipment | $ | 380 | $ | 284 | |||||||
Non-cash issuance of 401-K common stock | $ | 185 | $ | 109 | |||||||
Cumulative preferred dividends, undeclared and unpaid | $ | 284 | $ | 275 |
Standard | Description | Effective Date | Effect on the Financial Statements or Other Significant Matters | |||||||||||||||||
In March 2020, the FASB issued ASU No. 2020-04, “Facilitation of the Effect of Reference Rate Reform on Financial Reporting” (“ASU 2020-04”) | The London Interbank Offered Rate (LIBOR) is set to expire at the end of 2021. Contracts affected by the rate change would be required to be modified. Under current U.S. GAAP, those modifications would have to be evaluated to determine whether they result in new contracts or continuation of the existing contracts. ASU 2020-04 provides temporary optional expedients and exceptions for applying U.S. GAAP to contracts, hedging relationships, and other transactions affected by the transition from LIBOR to alternative reference rate. | Issuance date of March 12, 2020 through December 31, 2022. | The Company is currently evaluating the impact ASU 2020-04 will have on its consolidated financial statements. | |||||||||||||||||
In December 2019, the FASB issued ASU 2019-12, "Simplifying the Accounting for Income Taxes" ("ASU 2019-12"). | ASU 2019-12 guidance simplifies the accounting for income taxes by removing the exception to the incremental approach for intraperiod tax allocation when there is a loss from continuing operations and income or a gain from other items (for example, discontinued operations or other comprehensive income). With the removal of this exception, entities will determine the tax effect of pre-tax income or loss from continuing operations without consideration of the tax effects of other items that are not included in continuing operations. | Annual periods beginning after December 15, 2020, and interim periods within those fiscal years. Early adoption is permitted, including adoption in any interim period. | The Company is currently evaluating the impact ASU 2019-12 will have on its consolidated financial statements. | |||||||||||||||||
In August 2018, the FASB issued ASU No. 2018-15, “Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract” (“ASU 2018-15”). | ASU 2018-15 aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. | Annual periods beginning after December 15, 2019, and interim periods within those fiscal years. Early adoption is permitted, including adoption in any interim period. | ||||||||||||||||||
In August 2018, the FASB issued ASU No. 2018-14, “Compensation—Retirement Benefits—Defined Benefit Plans—General (Subtopic 715-20): Disclosure Framework—Changes to the Disclosure Requirements for Defined Benefit Plans” (“ASU 2018-14”). | ASU 2018-14 modifies the disclosure requirements for employers that sponsor defined benefit pension or other postretirement plans by removing disclosures that no longer are considered cost beneficial, clarifying the specific requirements of disclosures and adding disclosure requirements identified as relevant. | Annual periods beginning after December 15, 2020. Early adoption is permitted. | Effective for the Company beginning July 1, 2021. The Company is currently evaluating the impact ASU 2018-14 will have on its consolidated financial statements. | |||||||||||||||||
In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. Since that date, the FASB has issued additional ASUs clarifying certain aspects of ASU 2016-13. | The objective of the guidance in ASU 2016-13 is to allow entities to recognize estimated credit losses in the period that the change in valuation occurs. The amendments in ASU 2016-13 requires an entity to present financial assets measured on an amortized cost basis on the balance sheet net of an allowance for credit losses. The model requires an estimate of the credit losses expected over the life of an exposure or pool of exposures. The income statement will reflect the measurement of credit losses for newly recognized financial assets, as well as the expected increases or decreases of expected credit losses that have taken place during the period. | Annual reporting periods beginning after December 15, 2019 and interim periods within those reporting periods. |
Classification | December 31, 2020 | June 30, 2020 | ||||||||||||||||||
(In thousands) | ||||||||||||||||||||
Operating lease assets | Right-of-use operating lease assets | $ | 27,658 | 21,117 | ||||||||||||||||
Finance lease assets | Property, plant and equipment, net | 0 | 9 | |||||||||||||||||
Total lease assets | $ | 27,658 | $ | 21,126 | ||||||||||||||||
Operating lease liabilities - current | Operating lease liabilities - current | $ | 7,029 | 5,854 | ||||||||||||||||
Operating lease liabilities - noncurrent | Operating lease liabilities - noncurrent | 20,770 | 15,628 | |||||||||||||||||
Finance lease liabilities | Other long-term liabilities | 0 | 9 | |||||||||||||||||
Total lease liabilities | $ | 27,799 | $ | 21,491 |
Classification | March 31, 2020 | |||||
(In thousands) | ||||||
Operating lease assets | Right-of-use operating lease assets | $ | 21,789 | |||
Finance lease assets | Property, plant and equipment, net | 22 | ||||
Total lease assets | $ | 21,811 | ||||
Operating lease liabilities - current | Operating lease liabilities - current | $ | 6,031 | |||
Operating lease liabilities - noncurrent | Operating lease liabilities - noncurrent | 16,010 | ||||
Finance lease liabilities | Other long-term liabilities | 22 | ||||
Total lease liabilities | $ | 22,063 |
Three Months Ended December 31, | Six Months Ended December 31, | ||||||||||||||||||||||||||||||||||||||||
Classification | 2020 | 2019 | 2020 | 2019 | |||||||||||||||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||||||||||||||
Operating lease expense | General and administrative expenses and cost of goods sold | $ | 1,953 | $ | 1,253 | $ | 3,578 | $ | 2,363 | ||||||||||||||||||||||||||||||||
Finance lease expense: | |||||||||||||||||||||||||||||||||||||||||
Amortization of finance lease assets | General and administrative expenses | 0 | 13 | 9 | 26 | ||||||||||||||||||||||||||||||||||||
Interest on finance lease liabilities | Interest expense | 0 | 0 | 0 | 1 | ||||||||||||||||||||||||||||||||||||
Total lease expense | $ | 1,953 | $ | 1,266 | $ | 3,587 | $ | 2,390 |
Three Months Ended March 31, | Nine Months Ended March 31, | |||||||||
Classification | 2020 | 2020 | ||||||||
(In thousands) | ||||||||||
Operating lease expense | General and administrative expenses and cost of goods sold | $ | 1,497 | $ | 3,858 | |||||
Finance lease expense: | ||||||||||
Amortization of finance lease assets | General and administrative expenses | 13 | 39 | |||||||
Interest on finance lease liabilities | Interest expense | — | 1 | |||||||
Total lease expense | $ | 1,510 | $ | 3,898 |
December 31, 2020 | ||||||||||||||
(In thousands) | Operating Leases | Finance Leases | ||||||||||||
Maturities of lease liabilities are as follows: | ||||||||||||||
2021 | $ | 3,874 | $ | 0 | ||||||||||
2022 | 5,971 | 0 | ||||||||||||
2023 | 5,429 | 0 | ||||||||||||
2024 | 5,159 | 0 | ||||||||||||
2025 | 4,019 | 0 | ||||||||||||
Thereafter | 7,877 | 0 | ||||||||||||
Total lease payments | 32,329 | 0 | ||||||||||||
Less: interest | (4,530) | 0 | ||||||||||||
Total lease obligations | $ | 27,799 | $ | 0 |
March 31, 2020 | ||||||||
(In thousands) | Operating Leases | Finance Leases | ||||||
Maturities of lease liabilities are as follows: | ||||||||
2020 | $ | 1,532 | $ | 13 | ||||
2021 | 5,764 | 9 | ||||||
2022 | 4,357 | — | ||||||
2023 | 3,711 | — | ||||||
2024 | 3,375 | — | ||||||
Thereafter | 6,272 | — | ||||||
Total lease payments | 25,011 | 22 | ||||||
Less: interest | (2,970 | ) | — | |||||
Total lease obligations | $ | 22,041 | $ | 22 |
December 31, 2020 | June 30, 2020 | |||||||||||||
Weighted-average remaining lease terms (in years): | ||||||||||||||
Operating lease | 7.7 | 8.3 | ||||||||||||
Finance lease | 0.0 | 0.2 | ||||||||||||
Weighted-average discount rate: | ||||||||||||||
Operating lease | 5.01 | % | 4.50 | % | ||||||||||
Finance lease | 0 | % | 4.50 | % |
Six Months Ended December 31, | ||||||||||||||
(In thousands) | 2020 | 2019 | ||||||||||||
Cash paid for amounts included in the measurement of lease liabilities: | ||||||||||||||
Operating cash flows from operating leases | $ | 3,835 | $ | 2,165 | ||||||||||
Operating cash flows from finance leases | $ | 0 | $ | 1 | ||||||||||
Financing cash flows from finance leases | $ | 9 | $ | 25 | ||||||||||
Leased assets obtained in exchange for new finance lease liabilities | $ | 0 | $ | 0 | ||||||||||
Leased assets obtained in exchange for new operating lease liabilities | $ | 0 | $ | 0 |
Nine Months Ended March 31, 2020 | ||||
Cash paid for amounts included in the measurement of lease liabilities: | ||||
Operating cash flows from operating leases | $ | 3,585 | ||
Operating cash flows from finance leases | $ | 1 | ||
Financing cash flows from finance leases | $ | 38 | ||
Leased assets obtained in exchange for new finance lease liabilities | $ | — | ||
Leased assets obtained in exchange for new operating lease liabilities | $ | — |
(In thousands) | Operating Lease Obligations | Capital�� Lease Obligations | ||||||
Year Ended June 30, | ||||||||
2020 | $ | 4,434 | $ | 36 | ||||
2021 | 3,238 | 1 | ||||||
2022 | 2,472 | — | ||||||
2023 | 2,131 | — | ||||||
2024 | 2,025 | — | ||||||
Thereafter | 4,389 | — | ||||||
Total minimum lease payments | $ | 18,689 | 37 | |||||
Less: imputed interest (0.82% to 10.66%) | (2 | ) | ||||||
Present value of future minimum lease payments | 35 | |||||||
Less: current portion | (34 | ) | ||||||
Long-term capital lease obligations | $ | 1 |
(In thousands) | December 31, 2020 | June 30, 2020 | ||||||||||||
Derivative instruments designated as cash flow hedges: | ||||||||||||||
Long coffee pounds | 17,100 | 36,413 | ||||||||||||
Derivative instruments not designated as cash flow hedges: | ||||||||||||||
Long coffee pounds | 8,003 | 8,348 | ||||||||||||
Total | 25,103 | 44,761 |
(In thousands) | March 31, 2020 | June 30, 2019 | ||||
Derivative instruments designated as cash flow hedges: | ||||||
Long coffee pounds | 33,900 | 42,113 | ||||
Derivative instruments not designated as cash flow hedges: | ||||||
Long coffee pounds | 4,911 | 6,070 | ||||
Total | 38,811 | 48,183 |
Derivative Instruments Designated as Cash Flow Hedges | Derivative Instruments Not Designated as Accounting Hedges | |||||||||||||||
March 31, 2020 | June 30, 2019 | March 31, 2020 | June 30, 2019 | |||||||||||||
(In thousands) | ||||||||||||||||
Financial Statement Location: | ||||||||||||||||
Short-term derivative assets: | ||||||||||||||||
Coffee-related derivative instruments(1) | $ | 2,208 | $ | 1,254 | $ | 625 | $ | 611 | ||||||||
Long-term derivative assets: | ||||||||||||||||
Coffee-related derivative instruments (2) | $ | 470 | $ | 671 | $ | — | $ | 3 | ||||||||
Short-term derivative liabilities: | ||||||||||||||||
Coffee-related derivative instruments (3) | $ | 257 | $ | 1,114 | $ | 38 | $ | 114 | ||||||||
Interest rate swap derivative instruments (3) | $ | 1,106 | $ | 246 | $ | — | $ | — | ||||||||
Long-term derivative liabilities: | ||||||||||||||||
Coffee-related derivative instruments (4) | $ | 3 | $ | 13 | $ | — | $ | — | ||||||||
Interest rate swap derivative instruments (4) | $ | 2,745 | $ | 1,599 | $ | — | $ | — |
Derivative Instruments Designated as Cash Flow Hedges | Derivative Instruments Not Designated as Accounting Hedges | |||||||||||||||||||||||||
December 31, 2020 | June 30, 2020 | December 31, 2020 | June 30, 2020 | |||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||
Financial Statement Location: | ||||||||||||||||||||||||||
Short-term derivative assets: | ||||||||||||||||||||||||||
Coffee-related derivative instruments(1) | $ | 2,573 | $ | 35 | $ | 1,199 | $ | 130 | ||||||||||||||||||
Long-term derivative assets: | ||||||||||||||||||||||||||
Coffee-related derivative instruments (2) | $ | 0 | $ | 10 | $ | 0 | $ | 0 | ||||||||||||||||||
Short-term derivative liabilities: | ||||||||||||||||||||||||||
Coffee-related derivative instruments | $ | 73 | $ | 3,322 | $ | 6 | $ | 706 | ||||||||||||||||||
Interest rate swap derivative instruments | $ | 0 | $ | 1,228 | $ | 1,349 | $ | 0 | ||||||||||||||||||
Long-term derivative liabilities: | ||||||||||||||||||||||||||
Coffee-related derivative instruments (3) | $ | 0 | $ | 246 | $ | 0 | $ | 0 | ||||||||||||||||||
Interest rate swap derivative instruments (3) | $ | 0 | $ | 2,613 | $ | 2,224 | $ | 0 |
Three Months Ended December 31, | Six Months Ended December 31, | Financial Statement Classification | ||||||||||||||||||||||||||||||
(In thousands) | 2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||||||||||
Net losses recognized in AOCI - Interest rate swap | $ | 0 | $ | 448 | $ | (304) | $ | (48) | AOCI | |||||||||||||||||||||||
Net (losses) recognized from AOCI to earnings - Interest rate swap | $ | (9) | $ | (52) | $ | (344) | $ | (32) | Interest Expense | |||||||||||||||||||||||
Net losses reclassified from AOCI to earnings for de-designated Interest rate swap (1) | $ | (320) | $ | — | $ | (659) | $ | — | Interest Expense | |||||||||||||||||||||||
Net losses reclassified from AOCI to earnings for partial unwind of interest swap - Interest rate swap(2) | $ | — | $ | (407) | $ | — | $ | (407) | Interest Expense | |||||||||||||||||||||||
Net gains (losses) recognized in AOCI - Coffee-related | $ | 3,101 | $ | 12,130 | $ | 7,366 | $ | 7,431 | AOCI | |||||||||||||||||||||||
Net gains (losses) recognized in earnings - Coffee - related | $ | 240 | $ | (3,451) | $ | 604 | $ | (6,922) | Cost of goods sold | |||||||||||||||||||||||
Three Months Ended March 31, | Nine Months Ended March 31, | Financial Statement Classification | ||||||||||||||||
(In thousands) | 2020 | 2019 | 2020 | 2019 | ||||||||||||||
Net losses recognized in AOCI - Interest rate swap | $ | (2,542 | ) | $ | (78 | ) | $ | (2,590 | ) | $ | (78 | ) | AOCI | |||||
Net losses recognized from AOCI to earnings - Interest rate swap | $ | (83 | ) | $ | — | $ | (115 | ) | $ | — | Interest Expense | |||||||
Net losses reclassified from AOCI to earnings for partial unwind of interest swap - Interest rate swap (1) | $ | — | $ | — | $ | (407 | ) | $ | — | Interest Expense | ||||||||
Net (losses) gains recognized in AOCI - Coffee-related | $ | (5,681 | ) | $ | (3,988 | ) | $ | 1,750 | $ | (11,176 | ) | AOCI | ||||||
Net losses recognized in earnings - Coffee - related | $ | (1,976 | ) | $ | (2,131 | ) | $ | (8,898 | ) | $ | (6,310 | ) | Cost of goods sold |
Three Months Ended March 31, | Nine Months Ended March 31, | |||||||||||||||
(In thousands) | 2020 | 2019 | 2020 | 2019 | ||||||||||||
Net losses on coffee-related derivative instruments(1) | $ | (308 | ) | $ | (893 | ) | $ | (932 | ) | $ | (2,918 | ) | ||||
Non-operating pension and other postretirement benefit (2) | 1,248 | 1,394 | 3,744 | 4,921 | ||||||||||||
Other gains (losses), net | 136 | (6 | ) | 129 | 102 | |||||||||||
Other, net | $ | 1,076 | $ | 495 | $ | 2,941 | $ | 2,105 |
Three Months Ended December 31, | Six Months Ended December 31, | |||||||||||||||||||||||||
(In thousands) | 2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||||
Net gains (losses) on coffee-related derivative instruments(1) | $ | 1,338 | $ | 419 | $ | 1,834 | $ | (624) | ||||||||||||||||||
Non-operating pension and other postretirement benefit (2) | 7,744 | 1,248 | 15,488 | 2,496 | ||||||||||||||||||||||
Other gains (losses), net | (2) | (5) | 317 | (7) | ||||||||||||||||||||||
Other, net | $ | 9,080 | $ | 1,662 | $ | 17,639 | $ | 1,865 |
(In thousands) | Gross Amount Reported on Balance Sheet | Netting Adjustments | Cash Collateral Posted | Net Exposure | ||||||||||||||
March 31, 2020 | Derivative Assets | $ | 3,303 | $ | (298 | ) | $ | — | $ | 3,005 | ||||||||
Derivative Liabilities | $ | 4,149 | $ | (298 | ) | $ | — | $ | 3,851 | |||||||||
June 30, 2019 | Derivative Assets | $ | 2,539 | $ | (698 | ) | $ | — | $ | 1,841 | ||||||||
Derivative Liabilities | $ | 3,086 | $ | (698 | ) | $ | — | $ | 2,388 |
(In thousands) | Gross Amount Reported on Balance Sheet | Netting Adjustments | Cash Collateral Posted | Net Exposure | ||||||||||||||||||||||||||||
December 31, 2020 | Derivative Assets | $ | 3,772 | $ | (79) | $ | 0 | $ | 3,693 | |||||||||||||||||||||||
Derivative Liabilities | $ | 3,652 | $ | (79) | $ | 0 | $ | 3,573 | ||||||||||||||||||||||||
June 30, 2020 | Derivative Assets | $ | 175 | $ | (175) | $ | 0 | $ | 0 | |||||||||||||||||||||||
Derivative Liabilities | $ | 8,115 | $ | (176) | $ | 0 | $ | 7,939 |
(In thousands) | (In thousands) | Total | Level 1 | Level 2 | Level 3 | |||||||||||||||||||||||||||||||||||||
December 31, 2020 | December 31, 2020 | |||||||||||||||||||||||||||||||||||||||||
Derivative instruments designated as cash flow hedges: | Derivative instruments designated as cash flow hedges: | |||||||||||||||||||||||||||||||||||||||||
Coffee-related derivative assets (1) | Coffee-related derivative assets (1) | $ | 2,573 | $ | 0 | $ | 2,573 | $ | 0 | |||||||||||||||||||||||||||||||||
Coffee-related derivative liabilities (1) | Coffee-related derivative liabilities (1) | $ | 73 | $ | 0 | $ | 73 | $ | 0 | |||||||||||||||||||||||||||||||||
Derivative instruments not designated as accounting hedges: | Derivative instruments not designated as accounting hedges: | |||||||||||||||||||||||||||||||||||||||||
Coffee-related derivative assets(1) | Coffee-related derivative assets(1) | $ | 1,199 | $ | 0 | $ | 1,199 | $ | 0 | |||||||||||||||||||||||||||||||||
Coffee-related derivative liabilities(1) | Coffee-related derivative liabilities(1) | $ | 6 | $ | 0 | $ | 6 | $ | 0 | |||||||||||||||||||||||||||||||||
Interest rate swap derivative liabilities (2) | Interest rate swap derivative liabilities (2) | $ | 3,573 | 0 | $ | 3,573 | 0 | |||||||||||||||||||||||||||||||||||
(In thousands) | Total | Level 1 | Level 2 | Level 3 | (In thousands) | Total | Level 1 | Level 2 | Level 3 | |||||||||||||||||||||||||||||||||
March 31, 2020 | ||||||||||||||||||||||||||||||||||||||||||
June 30, 2020 | June 30, 2020 | |||||||||||||||||||||||||||||||||||||||||
Derivative instruments designated as cash flow hedges: | Derivative instruments designated as cash flow hedges: | |||||||||||||||||||||||||||||||||||||||||
Coffee-related derivative assets (1) | $ | 2,678 | $ | — | $ | 2,678 | $ | — | Coffee-related derivative assets (1) | $ | 45 | $ | 0 | $ | 45 | $ | 0 | |||||||||||||||||||||||||
Coffee-related derivative liabilities (1) | $ | 260 | $ | — | $ | 260 | $ | — | Coffee-related derivative liabilities (1) | $ | 3,568 | $ | 0 | $ | 3,568 | $ | 0 | |||||||||||||||||||||||||
Interest rate swap derivative liabilities (2) | $ | 3,851 | $ | — | $ | 3,851 | $ | — | Interest rate swap derivative liabilities (2) | $ | 3,841 | $ | 0 | $ | 3,841 | $ | 0 | |||||||||||||||||||||||||
Derivative instruments not designated as accounting hedges: | Derivative instruments not designated as accounting hedges: | |||||||||||||||||||||||||||||||||||||||||
Coffee-related derivative assets(1) | $ | 625 | $ | — | $ | 625 | $ | — | ||||||||||||||||||||||||||||||||||
Coffee-related derivative liabilities(1) | $ | 38 | $ | — | $ | 38 | $ | — | ||||||||||||||||||||||||||||||||||
Coffee-related derivative assets (1) | Coffee-related derivative assets (1) | $ | 130 | $ | 0 | $ | 130 | $ | 0 | |||||||||||||||||||||||||||||||||
Coffee-related derivative liabilities (1) | Coffee-related derivative liabilities (1) | $ | 706 | $ | 0 | $ | 706 | $ | 0 | |||||||||||||||||||||||||||||||||
(In thousands) | Total | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||||||||||||||||||||
June 30, 2019 | ||||||||||||||||||||||||||||||||||||||||||
Derivative instruments designated as cash flow hedges: | ||||||||||||||||||||||||||||||||||||||||||
Coffee-related derivative assets (1) | $ | 1,925 | $ | — | $ | 1,925 | $ | — | ||||||||||||||||||||||||||||||||||
Coffee-related derivative liabilities (1) | $ | 1,127 | $ | — | $ | 1,127 | $ | — | ||||||||||||||||||||||||||||||||||
Interest rate swap derivative liabilities (2) | $ | 1,845 | $ | — | $ | 1,845 | $ | — | ||||||||||||||||||||||||||||||||||
Derivative instruments not designated as accounting hedges: | ||||||||||||||||||||||||||||||||||||||||||
Coffee-related derivative assets (1) | $ | 614 | $ | — | $ | 614 | $ | — | ||||||||||||||||||||||||||||||||||
Coffee-related derivative liabilities (1) | $ | 114 | $ | — | $ | 114 | $ | — |
(In thousands) | March 31, 2020 | June 30, 2019 | ||||||
Trade receivables | $ | 49,328 | $ | 53,593 | ||||
Other receivables(1) | 2,266 | 2,886 | ||||||
Allowance for doubtful accounts | (705 | ) | (1,324 | ) | ||||
Accounts receivable, net | $ | 50,889 | $ | 55,155 |
(In thousands) | December 31, 2020 | June 30, 2020 | ||||||||||||
Trade receivables | $ | 40,946 | $ | 40,695 | ||||||||||
Other receivables(1) | 2,134 | 1,983 | ||||||||||||
Allowance for doubtful accounts | (1,216) | (1,796) | ||||||||||||
Accounts receivable, net | $ | 41,864 | $ | 40,882 |
(In thousands) | March 31, 2020 | June 30, 2019 | (In thousands) | December 31, 2020 | June 30, 2020 | |||||||||||||||||
Coffee | Coffee | |||||||||||||||||||||
Processed | $ | 24,568 | $ | 25,769 | Processed | $ | 24,799 | $ | 17,840 | |||||||||||||
Unprocessed | 36,905 | 33,259 | Unprocessed | 34,857 | 32,913 | |||||||||||||||||
Total | $ | 61,473 | $ | 59,028 | Total | $ | 59,656 | $ | 50,753 | |||||||||||||
Tea and culinary products | Tea and culinary products | |||||||||||||||||||||
Processed | $ | 17,737 | $ | 21,767 | Processed | $ | 14,838 | $ | 10,627 | |||||||||||||
Unprocessed | 68 | 74 | Unprocessed | 69 | 45 | |||||||||||||||||
Total | $ | 17,805 | $ | 21,841 | Total | $ | 14,907 | $ | 10,672 | |||||||||||||
Coffee brewing equipment parts | $ | 6,656 | $ | 7,041 | Coffee brewing equipment parts | $ | 6,054 | $ | 5,983 | |||||||||||||
Total inventories | $ | 85,934 | $ | 87,910 | Total inventories | $ | 80,617 | $ | 67,408 |
(In thousands) | December 31, 2020 | June 30, 2020 | ||||||||||||
Buildings and facilities | $ | 98,002 | $ | 98,293 | ||||||||||
Machinery, vehicles and equipment | 237,726 | 240,431 | ||||||||||||
Capitalized software | 23,659 | 29,765 | ||||||||||||
Office furniture and equipment | 13,270 | 14,042 | ||||||||||||
$ | 372,657 | $ | 382,531 | |||||||||||
Accumulated depreciation | (225,646) | (229,829) | ||||||||||||
Land | 12,844 | 12,931 | ||||||||||||
Property, plant and equipment, net | $ | 159,855 | $ | 165,633 |
(In thousands) | March 31, 2020 | June 30, 2019 | ||||||
Buildings and facilities (1) | $ | 99,225 | $ | 107,915 | ||||
Machinery, vehicles and equipment (1) | 243,141 | 249,477 | ||||||
Capitalized software | 29,227 | 27,666 | ||||||
Office furniture and equipment | 14,121 | 14,035 | ||||||
$ | 385,714 | $ | 399,093 | |||||
Accumulated depreciation | (229,493 | ) | (225,826 | ) | ||||
Land (1) | 13,140 | 16,191 | ||||||
Property, plant and equipment, net | $ | 169,361 | $ | 189,458 |
(In thousands) | December 31, 2020 | June 30, 2020 | ||||||||||||
Coffee Brewing Equipment | $ | 98,414 | $ | 98,734 | ||||||||||
Accumulated depreciation | (69,765) | $ | (67,800) | |||||||||||
Coffee Brewing Equipment, net | $ | 28,649 | $ | 30,934 |
(In thousands) | March 31, 2020 | June 30, 2019 | ||||||
Coffee Brewing Equipment | $ | 102,423 | $ | 106,593 | ||||
Accumulated depreciation | (69,094 | ) | $ | (70,202 | ) | |||
Coffee Brewing Equipment, net | $ | 33,329 | $ | 36,391 |
Three Months Ended March 31, | Nine Months Ended March 31, | |||||||||||||||
(In thousands) | 2020 | 2019 | 2020 | 2019 | ||||||||||||
Depreciation expense | $ | 2,359 | $ | 2,269 | $ | 7,239 | $ | 6,665 | ||||||||
Other CBE expenses | $ | 7,821 | $ | 10,458 | $ | 23,778 | $ | 27,375 |
Three Months Ended December 31, | Six Months Ended December 31, | |||||||||||||||||||||||||
(In thousands) | 2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||||
Depreciation expense | $ | 2,334 | $ | 2,327 | $ | 4,694 | $ | 4,666 | ||||||||||||||||||
Other CBE expenses | $ | 5,968 | $ | 8,446 | $ | 11,536 | $ | 16,171 |
March 31, 2020 | June 30, 2019 | December 31, 2020 | June 30, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(In thousands) | Weighted Average Amortization Period as of March 31, 2020 | Gross Carrying Amount | Accumulated Amortization | Impairment | Net | Gross Carrying Amount | Accumulated Amortization | Net | (In thousands) | Weighted Average Amortization Period as of December 31, 2020 | Gross Carrying Amount | Accumulated Amortization | Net | Gross Carrying Amount | Accumulated Amortization | Impairment | Net | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amortized intangible assets: | Amortized intangible assets: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Customer relationships | 7.2 | $ | 33,003 | $ | (16,943 | ) | $ | — | $ | 16,060 | $ | 33,003 | $ | (15,291 | ) | $ | 17,712 | Customer relationships | 6.2 | $ | 33,003 | $ | (18,591) | $ | 14,412 | $ | 33,003 | $ | (17,492) | $ | — | $ | 15,511 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Non-compete agreements | 2.0 | 220 | (151 | ) | — | 69 | 220 | (122 | ) | 98 | Non-compete agreements | 1.0 | 220 | (182) | 38 | 220 | (161) | — | 59 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Recipes | 3.7 | 930 | (453 | ) | — | 477 | 930 | (354 | ) | 576 | Recipes | 2.8 | 930 | (553) | 377 | 930 | (487) | — | 443 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Trade name/brand name | 4.3 | 510 | (374 | ) | — | 136 | 510 | (346 | ) | 164 | Trade name/brand name | 2.9 | 510 | (402) | 108 | 510 | (383) | — | 127 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total amortized intangible assets | $ | 34,663 | $ | (17,921 | ) | $ | — | $ | 16,742 | $ | 34,663 | $ | (16,113 | ) | $ | 18,550 | Total amortized intangible assets | $ | 34,663 | $ | (19,728) | $ | 14,935 | $ | 34,663 | $ | (18,523) | $ | — | $ | 16,140 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Unamortized intangible assets: | Unamortized intangible assets: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Trademarks, trade names and brand name with indefinite lives | $ | 10,328 | $ | — | $ | (5,806 | ) | $ | 4,522 | $ | 10,328 | $ | — | $ | 10,328 | Trademarks, trade names and brand name with indefinite lives | $ | 4,522 | $ | — | $ | 4,522 | $ | 10,328 | $ | — | $ | (5,806) | $ | 4,522 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total unamortized intangible assets | $ | 10,328 | $ | — | $ | (5,806 | ) | $ | 4,522 | $ | 10,328 | $ | — | $ | 10,328 | Total unamortized intangible assets | $ | 4,522 | $ | — | $ | 4,522 | $ | 10,328 | $ | — | $ | (5,806) | $ | 4,522 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total intangible assets | $ | 44,991 | $ | (17,921 | ) | $ | (5,806 | ) | $ | 21,264 | $ | 44,991 | $ | (16,113 | ) | $ | 28,878 | Total intangible assets | $ | 39,185 | $ | (19,728) | $ | 19,457 | $ | 44,991 | $ | (18,523) | $ | (5,806) | $ | 20,662 |
Three Months Ended March 31, | Nine Months Ended March 31, | Three Months Ended December 31, | Six Months Ended December 31, | |||||||||||||||||||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | 2020 | 2019 | 2020 | 2019 | |||||||||||||||||||||||||||||||||||
(In thousands) | (In thousands) | |||||||||||||||||||||||||||||||||||||||||
Service cost | $ | — | $ | — | $ | — | $ | — | Service cost | $ | 0 | $ | 0 | $ | 0 | $ | 0 | |||||||||||||||||||||||||
Interest cost | 1,059 | 1,173 | 3,177 | 4,025 | Interest cost | 859 | 1,059 | 1,718 | 2,118 | |||||||||||||||||||||||||||||||||
Expected return on plan assets | (1,102 | ) | (1,126 | ) | (3,305 | ) | (4,096 | ) | Expected return on plan assets | (1,038) | (1,102) | (2,075) | (2,203) | |||||||||||||||||||||||||||||
Amortization of net loss(1) | 370 | 380 | 1,109 | 1,120 | Amortization of net loss(1) | 502 | 370 | 1,005 | 740 | |||||||||||||||||||||||||||||||||
Pension settlement charge | — | — | — | 10,948 | ||||||||||||||||||||||||||||||||||||||
Net periodic benefit cost | $ | 327 | $ | 427 | $ | 981 | $ | 11,997 | Net periodic benefit cost | $ | 323 | $ | 327 | $ | 648 | $ | 655 |
March 31, 2020 | June 30, 2019 | |||
Discount rate | 3.45% | 4.05% | ||
Expected long-term return on plan assets | 6.75% | 6.75% |
December 31, 2020 | June 30, 2020 | |||||||||||||
Discount rate | 2.55% | 3.45% | ||||||||||||
Expected long-term return on plan assets | 6.25% | 6.75% |
Three Months Ended December 31, | Six Months Ended December 31, | |||||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||
Contributions | $ | 309 | $ | 452 | $ | 537 | $ | 880 |
Three Months Ended March 31, | Nine Months Ended March 31, | |||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||
(In thousands) | ||||||||||||||||
Contributions | $ | 240 | $ | 585 | $ | 1,120 | $ | 1,364 |
(In thousands) | December 31, 2020 | June 30, 2020 | ||||||||||||
Local 807 Pension Fund | $ | 182 | $ | 182 |
(In thousands) | March 31, 2020 | June 30, 2019 | ||||||
WCT Pension Trust (1) | $ | — | $ | 1,487 | ||||
Local 807 Pension Fund (2) | $ | 182 | $ | 182 |
Three Months Ended December 31, | Six Months Ended December 31, | |||||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||
Components of Net Periodic Postretirement Benefit Cost (Credit): | ||||||||||||||||||||||||||
Service cost | $ | 5 | $ | 147 | $ | 10 | $ | 294 | ||||||||||||||||||
Interest cost | 73 | 214 | 147 | 428 | ||||||||||||||||||||||
Amortization of net gain | (2,728) | (125) | (5,456) | (250) | ||||||||||||||||||||||
Amortization of prior service credit | (4,481) | (392) | (8,961) | (784) | ||||||||||||||||||||||
Net periodic postretirement benefit credit | $ | (7,131) | $ | (156) | $ | (14,260) | $ | (312) |
Three Months Ended March 31, | Nine Months Ended March 31, | |||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||
(In thousands) | ||||||||||||||||
Components of Net Periodic Postretirement Benefit Cost (Credit): | ||||||||||||||||
Service cost | $ | 147 | $ | 133 | $ | 441 | $ | 399 | ||||||||
Interest cost | 214 | 222 | 641 | 666 | ||||||||||||
Amortization of net gain | (125 | ) | (209 | ) | (374 | ) | (627 | ) | ||||||||
Curtailment credit - Retiree Medical | (5,750 | ) | — | (5,750 | ) | — | ||||||||||
Amortization of prior service credit | (395 | ) | (439 | ) | (1,186 | ) | (1,317 | ) | ||||||||
Net periodic postretirement benefit credit | $ | (5,909 | ) | $ | (293 | ) | $ | (6,228 | ) | $ | (879 | ) |
Fiscal | ||||||||||||||
2021 | 2020 | |||||||||||||
Retiree Medical Plan discount rate | 0.06% | 3.62% | ||||||||||||
Death Benefit discount rate | 2.87% | 3.64% |
Fiscal | ||||
2020 | 2019 | |||
Retiree Medical Plan discount rate | 3.44% | 4.25% | ||
Death Benefit discount rate | 3.64% | 4.25% |
March 31, 2020 | June 30, 2019 | |||||||||||||||||||
(In thousands) | Debt Origination Date | Maturity | Original Borrowing Amount | Carrying Value | Weighted Average Interest Rate | Carrying Value | Weighted Average Interest Rate | |||||||||||||
Credit Facility | Revolver | 11/6/2023 | N/A | $ | 80,000 | 4.45 | % | $ | 92,000 | 3.98 | % |
December 31, 2020 | June 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||
(In thousands) | Debt Origination Date | Maturity | Original Borrowing Amount | Carrying Value | Weighted Average Interest Rate | Carrying Value | Weighted Average Interest Rate | |||||||||||||||||||||||||||||||||||||
Credit Facility | Revolver | 11/6/2023 | N/A | $ | 82,000 | 6.56 | % | $ | 122,000 | 4.91 | % |
December 31, 2020 | June 30, 2020 | |||||||||||||
Allocated shares | 1,137,058 | 1,170,015 | ||||||||||||
Committed to be released shares | 0 | 0 | ||||||||||||
Unallocated shares | 0 | 0 | ||||||||||||
Total ESOP shares | 1,137,058 | 1,170,015 | ||||||||||||
(In thousands) | ||||||||||||||
Fair value of ESOP shares | $ | 5,310 | $ | 8,588 |
March 31, 2020 | June 30, 2019 | |||||||
Allocated shares | 1,191,754 | 1,393,530 | ||||||
Committed to be released shares | — | — | ||||||
Unallocated shares | — | — | ||||||
Total ESOP shares | 1,191,754 | 1,393,530 | ||||||
(In thousands) | ||||||||
Fair value of ESOP shares | $ | 8,295 | $ | 22,812 |
Nine Months Ended March 31, 2020 | ||||
Weighted average fair value of NQOs | $ | 4.68 | ||
Risk-free interest rate | 1.7 | % | ||
Dividend yield | — | % | ||
Average expected term | 4.6 years | |||
Expected stock price volatility | 35.4 | % |
Six Months Ended December 31, 2020 | ||||||||
Weighted average fair value of NQOs | $ | 4.60 | ||||||
Risk-free interest rate | 0.29 | % | ||||||
Dividend yield | 0 | % | ||||||
Average expected term | 4.6 years | |||||||
Expected stock price volatility | 35.4 | % |
Outstanding NQOs: | Number of NQOs | Weighted Average Exercise Price ($) | Weighted Average Remaining Life (Years) | Aggregate Intrinsic Value ($ in thousands) | ||||||
Outstanding at June 30, 2019 | 198,049 | 27.35 | 5.25 | 40 | ||||||
Granted | 447,973 | 14.44 | — | — | ||||||
Exercised | (10,360 | ) | 12.48 | — | 28 | |||||
Forfeited | (112,624 | ) | 26.55 | — | — | |||||
Expired | (37,342 | ) | 31.43 | — | — | |||||
Outstanding at March 31, 2020 | 485,696 | 15.63 | 6.42 | — | ||||||
Exercisable at March 31, 2020 | 20,702 | 28.16 | 4.97 | — |
Outstanding NQOs: | Number of NQOs | Weighted Average Exercise Price ($) | Weighted Average Remaining Life (Years) | Aggregate Intrinsic Value ($ in thousands) | ||||||||||||||||||||||||||||
Outstanding at June 30, 2020 | 528,958 | 13.92 | 6.21 | 55 | ||||||||||||||||||||||||||||
Granted | 29,761 | 6.72 | — | — | ||||||||||||||||||||||||||||
Exercised | 0 | 0 | — | 0 | ||||||||||||||||||||||||||||
Forfeited | (4,984) | 18.16 | — | — | ||||||||||||||||||||||||||||
Expired | (7,938) | 28.51 | — | — | ||||||||||||||||||||||||||||
Outstanding at December 31, 2020 | 545,797 | 13.28 | 5.83 | 0 | ||||||||||||||||||||||||||||
Exercisable at December 31, 2020 | 147,743 | 16.17 | 5.58 | 0 | ||||||||||||||||||||||||||||
Outstanding PNQs: | Number of PNQs | Weighted Average Exercise Price ($) | Weighted Average Remaining Life (Years) | Aggregate Intrinsic Value ($ in thousands) | ||||||||||||||||||||||||||||
Outstanding at June 30, 2020 | 13,630 | 28.60 | 2.36 | 0 | ||||||||||||||||||||||||||||
Granted | 0 | 0 | — | — | ||||||||||||||||||||||||||||
Exercised | 0 | 0 | — | 0 | ||||||||||||||||||||||||||||
Forfeited | 0 | 0 | — | — | ||||||||||||||||||||||||||||
Expired | (1,880) | 21.33 | — | — | ||||||||||||||||||||||||||||
Outstanding at December 31, 2020 | 11,750 | 29.76 | 2.16 | — | ||||||||||||||||||||||||||||
Exercisable at December 31, 2020 | 6,942 | 28.40 | 1.89 | — | ||||||||||||||||||||||||||||
Outstanding PNQs: | Number of PNQs | Weighted Average Exercise Price ($) | Weighted Average Remaining Life (Years) | Aggregate Intrinsic Value ($ in thousands) | |||||||
Outstanding at June 30, 2019 | 229,961 | 26.21 | 1.23 | — | |||||||
Granted | — | — | — | — | |||||||
Exercised | — | — | — | — | |||||||
Forfeited | (6,212 | ) | 32.85 | — | — | ||||||
Expired | (210,119 | ) | 25.86 | — | — | ||||||
Outstanding at March 31, 2020 | 13,630 | 28.60 | 2.61 | — | |||||||
Exercisable at March 31, 2020 | 8,822 | 26.89 | 2.23 | — |
Outstanding and Nonvested Restricted Stock Awards: | Shares Awarded | Weighted Average Grant Date Fair Value ($) | Outstanding and Nonvested Restricted Stock Awards: | Shares Awarded | Weighted Average Grant Date Fair Value ($) | |||||||||||||||||||||||||||
Outstanding and nonvested at June 30, 2019 | 32,056 | 21.10 | ||||||||||||||||||||||||||||||
Outstanding and nonvested at June 30, 2020 | Outstanding and nonvested at June 30, 2020 | 218,604 | 13.00 | |||||||||||||||||||||||||||||
Granted | 83,692 | 15.26 | Granted | 709,473 | 5.05 | |||||||||||||||||||||||||||
Vested/Released | (18,298 | ) | 23.98 | Vested/Released | (57,596) | 13.38 | ||||||||||||||||||||||||||
Cancelled/Forfeited | (10,809 | ) | 20.37 | Cancelled/Forfeited | (11,466) | 5.60 | ||||||||||||||||||||||||||
Outstanding and nonvested at March 31, 2020 | 86,641 | 15.53 | ||||||||||||||||||||||||||||||
Outstanding and nonvested at December 31, 2020 | Outstanding and nonvested at December 31, 2020 | 859,015 | 5.46 |
Outstanding and Nonvested PBRSUs: | PBRSUs Awarded(1) | Weighted Average Grant Date Fair Value ($) | Outstanding and Nonvested PBRSUs: | PBRSUs Awarded(1) | Weighted Average Grant Date Fair Value ($) | |||||||||||||||||||||||||||
Outstanding and nonvested at June 30, 2019 | 51,237 | 27.69 | ||||||||||||||||||||||||||||||
Outstanding and nonvested at June 30, 2020 | Outstanding and nonvested at June 30, 2020 | 81,337 | 15.78 | |||||||||||||||||||||||||||||
Granted(1) | 81,236 | 14.46 | Granted(1) | 306,095 | 4.10 | |||||||||||||||||||||||||||
Vested/Released | — | — | Vested/Released | (805) | 31.70 | |||||||||||||||||||||||||||
Cancelled/Forfeited | (38,262 | ) | 27.38 | Cancelled/Forfeited | (2,572) | 30.80 | ||||||||||||||||||||||||||
Outstanding and nonvested at March 31, 2020 | 94,211 | 16.41 | ||||||||||||||||||||||||||||||
Outstanding and nonvested at December 31, 2020 | Outstanding and nonvested at December 31, 2020 | 384,055 | 6.34 |
Outstanding and Nonvested CSRSUs: | CSRSUs Awarded | Weighted Average Grant Date Fair Value ($) | ||||||||||||||||||||||||
Outstanding and nonvested at June 30, 2020 | 0 | 0 | ||||||||||||||||||||||||
Granted | 232,002 | 4.31 | ||||||||||||||||||||||||
Vested/Released | 0 | 0 | ||||||||||||||||||||||||
Cancelled/Forfeited | 0 | 0 | ||||||||||||||||||||||||
Outstanding and nonvested at December 31, 2020 | 232,002 | 4.31 | ||||||||||||||||||||||||
(In thousands) | December 31, 2020 | June 30, 2020 | ||||||||||||
Accrued postretirement benefits | $ | 541 | $ | 744 | ||||||||||
Accrued workers’ compensation liabilities | 1,415 | 1,466 | ||||||||||||
Cumulative preferred dividends, undeclared and unpaid (1) | 1,763 | 1,477 | ||||||||||||
Other (2) | 3,770 | 3,115 | ||||||||||||
Other current liabilities | $ | 7,489 | $ | 6,802 |
(In thousands) | March 31, 2020 | June 30, 2019 | ||||||
Accrued postretirement benefits | $ | 890 | $ | 1,068 | ||||
Accrued workers’ compensation liabilities | 1,702 | 1,495 | ||||||
Cumulative preferred dividends, undeclared and unpaid (4) | 1,337 | 305 | ||||||
Earnout payable (1) | — | 1,000 | ||||||
Working capital dispute payable(2) | 354 | 354 | ||||||
Other (3) | 2,193 | 3,087 | ||||||
Other current liabilities | $ | 6,476 | $ | 7,309 |
(In thousands) | March 31, 2020 | June 30, 2019 | ||||||
Finance lease liabilities | $ | 22 | $ | 32 | ||||
Derivative liabilities—noncurrent | 2,747 | 1,612 | ||||||
Performance Cash Awards Liability | 46 | — | ||||||
Cumulative preferred dividends, undeclared and unpaid—noncurrent | — | 618 | ||||||
Deferred income taxes and other liabilities(1) | 1,738 | 1,795 | ||||||
Other long-term liabilities | $ | 4,553 | $ | 4,057 |
(In thousands) | December 31, 2020 | June 30, 2020 | ||||||||||||
Derivative liabilities—noncurrent | $ | 2,224 | 2,859 | |||||||||||
Deferred compensation(1) | 1,544 | 1,170 | ||||||||||||
Deferred income taxes and other liabilities(2) | 1,486 | 1,494 | ||||||||||||
Finance lease liabilities | 0 | 9 | ||||||||||||
Other long-term liabilities | $ | 5,254 | $ | 5,532 |
Three Months Ended December 31, | Six Months Ended December 31, | |||||||||||||||||||||||||||||||||||||||||
Three Months Ended March 31, | Nine Months Ended March 31, | 2020 | 2019 | 2020 | 2019 | |||||||||||||||||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||||||||||||||||||||||||||||
Income tax (benefit) expense | $ | (1,034 | ) | $ | 43,161 | $ | (1,222 | ) | $ | 39,149 | ||||||||||||||||||||||||||||||||
Income tax expense (benefit) | Income tax expense (benefit) | $ | 13,703 | $ | (81) | $ | 13,845 | $ | (188) | |||||||||||||||||||||||||||||||||
Effective tax rate | 2.5 | % | (502.7 | )% | 4.3 | % | (152.4 | )% | Effective tax rate | (340.7) | % | (1.1) | % | (136.4) | % | (1.5) | % |
Three Months Ended December 31, | Six Months Ended December 31, | |||||||||||||||||||||||||
(In thousands, except share and per share amounts) | 2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||||
Undistributed net (loss) income available to common stockholders | $ | (17,223) | $ | 7,595 | $ | (23,509) | $ | 12,104 | ||||||||||||||||||
Undistributed net (loss) income available to nonvested restricted stockholders and holders of convertible preferred stock | (645) | 21 | (772) | 29 | ||||||||||||||||||||||
Net (loss) earnings available to common stockholders—basic | $ | (17,868) | $ | 7,616 | $ | (24,281) | $ | 12,133 | ||||||||||||||||||
Weighted average common shares outstanding—basic | 17,531,521 | 17,159,108 | 17,477,268 | 17,127,153 | ||||||||||||||||||||||
Effect of dilutive securities: | ||||||||||||||||||||||||||
Shares issuable under stock options | 0 | 1,236 | 0 | 1,819 | ||||||||||||||||||||||
Shares issuable under PBRSUs | 0 | 8,091 | 0 | 6,272 | ||||||||||||||||||||||
Shares issuable under convertible preferred stock | 0 | 414,900 | 0 | 414,900 | ||||||||||||||||||||||
Weighted average common shares outstanding—diluted | 17,531,521 | 17,583,335 | 17,477,268 | 17,550,144 | ||||||||||||||||||||||
Net (loss) income available to common stockholders per common share—basic | $ | (1.02) | $ | 0.44 | $ | (1.39) | $ | 0.71 | ||||||||||||||||||
Net (loss) income available to common stockholders per common share—diluted | $ | (1.02) | $ | 0.43 | $ | (1.39) | $ | 0.69 |
Three Months Ended March 31, | Nine Months Ended March 31, | |||||||||||||||
(In thousands, except share and per share amounts) | 2020 | 2019 | 2020 | 2019 | ||||||||||||
Undistributed net loss available to common stockholders | $ | (39,790 | ) | $ | (51,828 | ) | $ | (27,692 | ) | $ | (65,177 | ) | ||||
Undistributed net loss available to nonvested restricted stockholders and holders of convertible preferred stock | (126 | ) | (55 | ) | (91 | ) | (58 | ) | ||||||||
Net loss available to common stockholders—basic | $ | (39,916 | ) | $ | (51,883 | ) | $ | (27,783 | ) | $ | (65,235 | ) | ||||
Weighted average common shares outstanding—basic | 17,230,879 | 17,003,206 | 17,161,477 | 16,982,247 | ||||||||||||
Effect of dilutive securities: | ||||||||||||||||
Shares issuable under stock options | — | — | — | — | ||||||||||||
Shares issuable under PBRSUs | — | — | — | — | ||||||||||||
Weighted average common shares outstanding—diluted | 17,230,879 | 17,003,206 | 17,161,477 | 16,982,247 | ||||||||||||
Net loss per common share available to common stockholders—basic | $ | (2.32 | ) | $ | (3.05 | ) | $ | (1.62 | ) | $ | (3.84 | ) | ||||
Net loss per common share available to common stockholders—diluted | $ | (2.32 | ) | $ | (3.05 | ) | $ | (1.62 | ) | $ | (3.84 | ) |
Three Months Ended December 31, | Six Months Ended December 31, | |||||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||||||||||||
Shares issuable under stock options | 545,797 | 190,117 | 545,797 | 121,113 | ||||||||||||||||||||||
Shares issuable under convertible preferred stock | 429,614 | 0 | 429,614 | 0 | ||||||||||||||||||||||
Shares issuable under PBRSUs | 81,070 | 16,195 | 82,189 | 8,097 |
Three Months Ended March 31, | Nine Months Ended March 31, | |||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||
Shares issuable under stock options | 485,513 | 269,872 | 327,192 | 211,594 | ||||||||
Shares issuable under convertible preferred stock | 418,531 | 404,197 | 418,531 | 404,197 | ||||||||
Shares issuable under PBRSUs | 98,946 | 91,697 | 75,926 | 65,971 |
(In thousands, except share and per share amounts) | ||||||||||||||||||||||||||||||||
Shares Authorized | Shares Issued and Outstanding | Stated Value per Share | Carrying Value | Cumulative Preferred Dividends, Undeclared and Unpaid | Liquidation Preference | |||||||||||||||||||||||||||
21,000 | 14,700 | $ | 1,120 | $ | 16,463 | $ | 1,763 | $ | 16,463 |
(In thousands, except share and per share amounts) | ||||||||||||||||||||
Shares Authorized | Shares Issued and Outstanding | Stated Value per Share | Carrying Value | Cumulative Preferred Dividends, Undeclared and Unpaid | Liquidation Preference | |||||||||||||||
21,000 | 14,700 | $ | 1,091 | $ | 16,038 | $ | 1,338 | $ | 16,038 |
Three Months Ended March 31, | Three Months Ended December 31, | Six Months Ended December 31, | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | 2020 | 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(In thousands) | $ | % of total | $ | % of total | (In thousands) | $ | % of total | $ | % of total | $ | % of total | $ | % of total | |||||||||||||||||||||||||||||||||||||||||||||||||||
Net Sales by Product Category: | Net Sales by Product Category: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Coffee (Roasted) | $ | 84,300 | 65.3 | % | $ | 93,211 | 63.5 | % | Coffee (Roasted) | $ | 69,427 | 66.4 | % | $ | 96,177 | 63.1 | % | $ | 135,581 | 67.2 | % | $ | 183,547 | 63.1 | % | |||||||||||||||||||||||||||||||||||||||
Coffee (Frozen Liquid) | 7,044 | 5.5 | % | 8,267 | 5.6 | % | Coffee (Frozen Liquid) | 4,077 | 3.9 | % | 8,556 | 5.6 | % | 6,621 | 3.3 | % | 16,484 | 5.7 | % | |||||||||||||||||||||||||||||||||||||||||||||
Tea (Iced & Hot) | 6,701 | 5.2 | % | 8,320 | 5.7 | % | Tea (Iced & Hot) | 4,895 | 4.7 | % | 7,563 | 5.0 | % | 6,525 | 3.2 | % | 15,268 | 5.2 | % | |||||||||||||||||||||||||||||||||||||||||||||
Culinary | 12,954 | 9.9 | % | 15,990 | 11.0 | % | Culinary | 11,497 | 11.0 | % | 15,158 | 10.0 | % | 21,920 | 10.9 | % | 29,361 | 10.1 | % | |||||||||||||||||||||||||||||||||||||||||||||
Spice | 5,262 | 4.1 | % | 5,736 | 3.9 | % | Spice | 4,264 | 4.1 | % | 6,126 | 4.0 | % | 9,010 | 4.5 | % | 12,332 | 4.2 | % | |||||||||||||||||||||||||||||||||||||||||||||
Other beverages(1) | 12,290 | 9.5 | % | 14,405 | 9.8 | % | Other beverages(1) | 10,143 | 9.6 | % | 17,299 | 11.3 | % | 21,498 | 10.6 | % | 30,032 | 10.3 | % | |||||||||||||||||||||||||||||||||||||||||||||
Other revenues(2) | Other revenues(2) | 0 | 0 | % | 946 | 0.6 | % | 0 | 0 | % | 2,701 | 0.9 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||
Net sales by product category | 128,551 | 99.5 | % | 145,929 | 99.5 | % | Net sales by product category | 104,303 | 99.7 | % | 151,825 | 99.6 | % | 201,155 | 99.7 | % | 289,725 | 99.5 | % | |||||||||||||||||||||||||||||||||||||||||||||
Fuel surcharge | 588 | 0.5 | % | 750 | 0.5 | % | Fuel surcharge | 268 | 0.3 | % | 673 | 0.4 | % | 686 | 0.3 | % | 1,373 | 0.5 | % | |||||||||||||||||||||||||||||||||||||||||||||
Net sales | $ | 129,139 | 100.0 | % | $ | 146,679 | 100 | % | Net sales | $ | 104,571 | 100.0 | % | $ | 152,498 | 100.0 | % | $ | 201,841 | 100.0 | % | $ | 291,098 | 100.0 | % |
Nine Months Ended March 31, | ||||||||||||||
2020 | 2019 | |||||||||||||
(In thousands) | $ | % of total | $ | % of total | ||||||||||
Net Sales by Product Category: | ||||||||||||||
Coffee (Roasted) | $ | 267,847 | 63.7 | % | $ | 287,851 | 63.4 | % | ||||||
Coffee (Frozen Liquid) | 23,528 | 5.6 | % | 26,141 | 5.8 | % | ||||||||
Tea (Iced & Hot) | 21,969 | 5.2 | % | 25,876 | 5.7 | % | ||||||||
Culinary | 42,315 | 10.1 | % | 48,779 | 10.8 | % | ||||||||
Spice | 17,594 | 4.2 | % | 17,895 | 3.9 | % | ||||||||
Other beverages(1) | 42,322 | 10.1 | % | 44,946 | 9.9 | % | ||||||||
Other revenues(2) | 2,701 | 0.6 | % | — | — | % | ||||||||
Net sales by product category | 418,276 | 99.5 | % | 451,488 | 99.5 | % | ||||||||
Fuel surcharge | 1,961 | 0.5 | % | 2,404 | 0.5 | % | ||||||||
Net sales | $ | 420,237 | 100.0 | % | $ | 453,892 | 100.0 | % |
(In thousands) | ||||||||||||||||||||||||||||||||||||||||||||
Name of Branch Property | Date Sold | Sales Price | Net Proceeds | Gain (loss) | Long-Term Leaseback | Lease Term | Monthly Base Rent | |||||||||||||||||||||||||||||||||||||
Austin, Texas | 11/18/2020 | $ | 1,360 | $ | 1,239 | $ | 1,045 | No | N/A | N/A | ||||||||||||||||||||||||||||||||||
Bishop, California | 12/4/2020 | $ | 220 | $ | 204 | $ | 204 | No | N/A | N/A | ||||||||||||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||
Name of Branch Property | Date Sold | Sales Price | Net Proceed | Gain (loss) | Long-Term Leaseback | Lease Term | Monthly Base Rent | |||||||||||||||
Seattle, Washington | 8/28/2019 | $ | 7,900 | $ | 7,300 | $ | 6,800 | No | N/A | N/A | ||||||||||||
Indianapolis, Indiana | 11/19/2019 | $ | 250 | $ | 186 | $ | (173 | ) | No | N/A | N/A | |||||||||||
Hayward, California(1) | 12/23/2019 | $ | 7,050 | $ | 6,569 | $ | 2,016 | Yes | 5 years | $ | 28 | |||||||||||
Denver, Colorado(1) | 12/31/2019 | $ | 2,300 | $ | 2,075 | $ | 1,989 | Yes | 7 years | $ | 17 | |||||||||||
Casper, Wyoming | 12/31/2019 | $ | 385 | $ | 355 | $ | 304 | No | N/A | N/A | ||||||||||||
Tempe, Arizona | 1/28/2020 | $ | 1,150 | $ | 1,077 | $ | 841 | No | N/A | N/A | ||||||||||||
Great Falls, Montana | 2/28/2020 | $ | 385 | $ | 356 | $ | 283 | No | N/A | N/A |
Item 2. | Management’s Discussion and Analysis of Financial Condition and Results of Operations |
Three Months Ended March 31, | Favorable (Unfavorable) | Nine Months Ended March 31, | Favorable (Unfavorable) | Three Months Ended December 31, | Favorable (Unfavorable) | Six Months Ended December 31, | Favorable (Unfavorable) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2020 | 2019 | Change | % Change | 2020 | 2019 | Change | % Change | 2020 | 2019 | Change | % Change | 2020 | 2019 | Change | % Change | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Statement Data: | Income Statement Data: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net sales | $ | 129,139 | $ | 146,679 | $ | (17,540 | ) | (12.0 | )% | $ | 420,237 | $ | 453,892 | $ | (33,655 | ) | (7.4 | )% | Net sales | $ | 104,571 | $ | 152,498 | $ | (47,927) | (31.4) | % | $ | 201,841 | $ | 291,098 | $ | (89,257) | (30.7) | % | |||||||||||||||||||||||||||||||||||||||||
Gross margin | 29.4 | % | 27.2 | % | 2.2 | % | NM | 29.2 | % | 31.1 | % | (1.9 | )% | NM | Gross margin | 25.1 | % | 28.8 | % | (3.7) | % | NM | 24.1 | % | 29.1 | % | (5.0) | % | NM | |||||||||||||||||||||||||||||||||||||||||||||||
Operating expenses as a % of sales | 64.4 | % | 31.4 | % | (33.0 | )% | NM | 36.2 | % | 32.8 | % | (3.4 | )% | NM | Operating expenses as a % of sales | 34.8 | % | 23.0 | % | (11.8) | % | NM | 34.8 | % | 23.7 | % | (11.1) | % | NM | |||||||||||||||||||||||||||||||||||||||||||||||
Loss from operations | $ | (45,169 | ) | $ | (6,102 | ) | $ | (39,067 | ) | NM | $ | (29,407 | ) | $ | (7,678 | ) | $ | (21,729 | ) | NM | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net loss | $ | (39,777 | ) | $ | (51,749 | ) | $ | 11,972 | NM | $ | (27,369 | ) | $ | (64,835 | ) | $ | 37,466 | 57.8 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net loss available to common stockholders per common share—basic | $ | (2.32 | ) | $ | (3.05 | ) | $ | 0.73 | NM | $ | (1.62 | ) | $ | (3.84 | ) | $ | 2.22 | NM | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net loss available to common stockholders per common share—diluted | $ | (2.32 | ) | $ | (3.05 | ) | $ | 0.73 | NM | $ | (1.62 | ) | $ | (3.84 | ) | $ | 2.22 | NM | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(Loss) income from operations | (Loss) income from operations | $ | (10,164) | $ | 8,870 | $ | (19,034) | NM | $ | (21,610) | $ | 15,762 | $ | (37,372) | NM | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net (loss) income | Net (loss) income | $ | (17,725) | $ | 7,754 | $ | (25,479) | NM | $ | (23,997) | $ | 12,408 | $ | (36,405) | NM | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net (loss) income available to common stockholders per common share—basic | Net (loss) income available to common stockholders per common share—basic | $ | (1.02) | $ | 0.44 | $ | (1.46) | NM | $ | (1.39) | $ | 0.71 | $ | (2.10) | NM | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net (loss) income available to common stockholders per common share—diluted | Net (loss) income available to common stockholders per common share—diluted | $ | (1.02) | $ | 0.43 | $ | (1.45) | NM | $ | (1.39) | $ | 0.69 | $ | (2.08) | NM | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Operating Data: | Operating Data: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Coffee pounds | 25,678 | 27,873 | (2,195 | ) | (7.9 | )% | 80,995 | 80,719 | 276 | 0.3 | % | Coffee pounds | 21,407 | 29,360 | (7,953) | (27.1) | % | 42,340 | 55,318 | (12,978) | (23.5) | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
EBITDA(1) | $ | (32,272 | ) | $ | 639 | $ | (32,911 | ) | NM | $ | (1,980 | ) | $ | 2,109 | $ | (4,089 | ) | NM | EBITDA(1) | $ | 5,288 | $ | 16,852 | $ | (11,564) | (68.6) | % | $ | 8,191 | $ | 30,292 | $ | (22,101) | (73.0) | % | |||||||||||||||||||||||||||||||||||||||||
EBITDA Margin(1) | (25.0 | )% | 0.4 | % | (25.4 | )% | NM | (0.5 | )% | 0.5 | % | (1.0 | )% | NM | EBITDA Margin(1) | 5.1 | % | 11.1 | % | (6.0) | % | NM | 4.1 | % | 10.4 | % | (6.3) | % | NM | |||||||||||||||||||||||||||||||||||||||||||||||
Adjusted EBITDA(1) | $ | 6,563 | $ | 4,535 | $ | 2,028 | 44.7 | % | $ | 18,028 | $ | 27,945 | $ | (9,917 | ) | (35.5 | )% | Adjusted EBITDA(1) | $ | 8,274 | $ | 7,448 | $ | 826 | 11.1 | % | $ | 13,967 | $ | 11,464 | $ | 2,503 | 21.8 | % | ||||||||||||||||||||||||||||||||||||||||||
Adjusted EBITDA Margin(1) | 5.1 | % | 3.1 | % | 2.0 | % | NM | 4.3 | % | 6.2 | % | (1.9 | )% | NM | Adjusted EBITDA Margin(1) | 7.9 | % | 4.9 | % | 3.0 | % | NM | 6.9 | % | 3.9 | % | 3.0 | % | NM | |||||||||||||||||||||||||||||||||||||||||||||||
Percentage of Total Net Sales By Product Category | Percentage of Total Net Sales By Product Category | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Coffee (Roasted) | 65.3 | % | 63.5 | % | 1.8 | % | 2.8 | % | 63.7 | % | 63.4 | % | 0.3 | % | 0.5 | % | Coffee (Roasted) | 66.4 | % | 63.1 | % | 3.3 | % | 5.2 | % | 67.2 | % | 63.1 | % | 4.1 | % | 6.5 | % | |||||||||||||||||||||||||||||||||||||||||||
Coffee (Frozen Liquid) | 5.5 | % | 5.6 | % | (0.1 | )% | (1.8 | )% | 5.6 | % | 5.8 | % | (0.2 | )% | (3.4 | )% | Coffee (Frozen Liquid) | 3.9 | % | 5.6 | % | (1.7) | % | (30.4) | % | 3.3 | % | 5.7 | % | (2.4) | % | (42.1) | % | |||||||||||||||||||||||||||||||||||||||||||
Tea (Iced & Hot) | 5.2 | % | 5.7 | % | (0.5 | )% | (8.8 | )% | 5.2 | % | 5.7 | % | (0.5 | )% | (8.8 | )% | Tea (Iced & Hot) | 4.7 | % | 5.0 | % | (0.3) | % | (6.0) | % | 3.2 | % | 5.2 | % | (2.0) | % | (38.5) | % | |||||||||||||||||||||||||||||||||||||||||||
Culinary | 9.9 | % | 11.0 | % | (1.1 | )% | (10.0 | )% | 10.1 | % | 10.8 | % | (0.7 | )% | (6.5 | )% | Culinary | 11.0 | % | 10.0 | % | 1.0 | % | 10.0 | % | 10.9 | % | 10.1 | % | 0.8 | % | 7.9 | % | |||||||||||||||||||||||||||||||||||||||||||
Spice | 4.1 | % | 3.9 | % | 0.2 | % | 5.1 | % | 4.2 | % | 3.9 | % | 0.3 | % | 7.7 | % | Spice | 4.1 | % | 4.0 | % | 0.1 | % | 2.5 | % | 4.5 | % | 4.2 | % | 0.3 | % | 7.1 | % | |||||||||||||||||||||||||||||||||||||||||||
Other beverages(2) | 9.5 | % | 9.8 | % | (0.3 | )% | (3.1 | )% | 10.1 | % | 9.9 | % | 0.2 | % | 2.0 | % | Other beverages(2) | 9.6 | % | 11.3 | % | (1.7) | % | (15.0) | % | 10.6 | % | 10.3 | % | 0.3 | % | 2.9 | % | |||||||||||||||||||||||||||||||||||||||||||
Other revenues(3) | — | % | — | % | — | % | NM | 0.6 | % | — | % | 0.6 | % | NM | Other revenues(3) | — | % | 0.6 | % | (0.6) | % | NM | — | % | 0.9 | % | (0.9) | % | NM | |||||||||||||||||||||||||||||||||||||||||||||||
Net sales by product category | 99.5 | % | 99.5 | % | — | % | NM | 99.5 | % | 99.5 | % | (0.6 | )% | NM | Net sales by product category | 99.7 | % | 99.6 | % | 0.1 | % | NM | 99.7 | % | 99.5 | % | 1.1 | % | NM | |||||||||||||||||||||||||||||||||||||||||||||||
Fuel Surcharge | 0.5 | % | 0.5 | % | — | % | NM | 0.5 | % | 0.5 | % | — | % | NM | Fuel Surcharge | 0.3 | % | 0.4 | % | (0.1) | % | NM | 0.3 | % | 0.5 | % | (0.2) | % | NM | |||||||||||||||||||||||||||||||||||||||||||||||
Total | 100.0 | % | 100.0 | % | — | % | NM | 100.0 | % | 100.0 | % | (0.6 | )% | — | % | Total | 100.0 | % | 100.0 | % | — | % | — | % | 100.0 | % | 100.0 | % | — | % | — | % | ||||||||||||||||||||||||||||||||||||||||||||
Other data: | Other data: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Capital expenditures related to maintenance | $ | 3,163 | $ | 4,434 | $ | (1,271 | ) | (28.7 | )% | $ | 10,622 | $ | 17,001 | $ | (6,379 | ) | (37.5 | )% | Capital expenditures related to maintenance | $ | 2,147 | $ | 3,107 | $ | (960) | (30.9) | % | $ | 3,741 | $ | 7,459 | $ | (3,718) | (49.8) | % | |||||||||||||||||||||||||||||||||||||||||
Total capital expenditures | $ | 4,107 | $ | 7,273 | $ | (3,166 | ) | (43.5 | )% | $ | 13,114 | $ | 30,393 | $ | (17,279 | ) | (56.9 | )% | Total capital expenditures | $ | 5,271 | $ | 3,730 | $ | 1,541 | 41.3 | % | $ | 9,636 | $ | 9,007 | $ | 629 | 7.0 | % | |||||||||||||||||||||||||||||||||||||||||
Depreciation and amortization expense | $ | 7,333 | $ | 7,600 | $ | (267 | ) | (3.5 | )% | $ | 22,544 | $ | 23,230 | $ | (686 | ) | (3.0 | )% | Depreciation and amortization expense | $ | 7,308 | $ | 7,594 | $ | (286) | (3.8) | % | $ | 14,349 | $ | 15,211 | $ | (862) | (5.7) | % |
Three Months Ended March 31, | Favorable (Unfavorable) | Nine Months Ended March 31, | Favorable (Unfavorable) | Three Months Ended December 31, | Favorable (Unfavorable) | Six Months Ended December 31, | Favorable (Unfavorable) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2020 | 2019 | Change | % Change | 2020 | 2019 | Change | % Change | 2020 | 2019 | Change | % Change | 2020 | 2019 | Change | % Change | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net sales | $ | 129,139 | $ | 146,679 | $ | (17,540 | ) | (12.0 | )% | $ | 420,237 | $ | 453,892 | $ | (33,655 | ) | (7.4 | )% | Net sales | $ | 104,571 | $ | 152,498 | $ | (47,927) | (31.4) | % | $ | 201,841 | $ | 291,098 | $ | (89,257) | (30.7) | % | |||||||||||||||||||||||||||||||||||||||||
Cost of goods sold | 91,190 | 106,779 | 15,589 | 14.6 | % | 297,662 | 312,513 | 14,851 | 4.8 | % | Cost of goods sold | 78,321 | 108,513 | 30,192 | 27.8 | % | 153,173 | 206,472 | 53,299 | 25.8 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Gross profit | 37,949 | 39,900 | (1,951 | ) | (4.9 | )% | 122,575 | 141,379 | (18,804 | ) | (13.3 | )% | Gross profit | 26,250 | 43,985 | (17,735) | (40.3) | % | 48,668 | 84,626 | (35,958) | (42.5) | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Selling expenses | 31,968 | 34,422 | 2,454 | 7.1 | % | 100,488 | 111,323 | 10,835 | 9.7 | % | Selling expenses | 24,769 | 34,906 | 10,137 | 29.0 | % | 48,268 | 68,520 | 20,252 | 29.6 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
General and administrative expenses | 8,833 | 11,306 | 2,473 | 21.9 | % | 32,839 | 32,063 | (776 | ) | (2.4 | )% | General and administrative expenses | 11,570 | 11,266 | (304) | (2.7) | % | 21,316 | 24,006 | 2,690 | 11.2 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restructuring and other transition expenses | — | 26 | 26 | 100.0 | % | — | 4,700 | 4,700 | 100.0 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net losses (gains) from sales of assets | 287 | 248 | (39 | ) | 15.7 | % | (23,375 | ) | 971 | 24,346 | NM | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Impairment of goodwill and intangible assets | 42,030 | — | (42,030 | ) | — | % | 42,030 | — | (42,030 | ) | — | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net gains from sales of assets | Net gains from sales of assets | (1,168) | (11,057) | (9,889) | (89.4) | % | (549) | (23,662) | (23,113) | NM | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Impairment of fixed assets | Impairment of fixed assets | 1,243 | — | (1,243) | — | % | 1,243 | — | (1,243) | — | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Operating expenses | 83,118 | 46,002 | (37,116 | ) | (80.7 | )% | 151,982 | 149,057 | (2,925 | ) | (2.0 | )% | Operating expenses | 36,414 | 35,115 | (1,299) | (3.7) | % | 70,278 | 68,864 | (1,414) | (2.1) | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Loss from operations | (45,169 | ) | (6,102 | ) | (39,067 | ) | NM | (29,407 | ) | (7,678 | ) | (21,729 | ) | (283.0 | )% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(Loss) income from operations | (Loss) income from operations | (10,164) | 8,870 | (19,034) | NM | (21,610) | 15,762 | (37,372) | 237.1 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other (expense) income: | Other (expense) income: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest expense | (2,478 | ) | (2,981 | ) | 503 | 16.9 | % | (7,885 | ) | (9,165 | ) | 1,280 | 14.0 | % | Interest expense | (2,938) | (2,859) | (79) | (2.8) | % | (6,181) | (5,407) | (774) | (14.3) | % | |||||||||||||||||||||||||||||||||||||||||||||||||||
Postretirement benefits curtailment and pension settlement charge | 5,760 | — | 5,760 | NM | 5,760 | (10,948 | ) | 16,708 | (152.6 | )% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other, net | 1,076 | 495 | 581 | 117.4 | % | 2,941 | 2,105 | 836 | 39.7 | % | Other, net | 9,080 | 1,662 | 7,418 | NM | 17,639 | 1,865 | 15,774 | NM | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total other income (expense) | 4,358 | (2,486 | ) | 6,844 | 275.3 | % | 816 | (18,008 | ) | 18,824 | (104.5 | )% | Total other income (expense) | 6,142 | (1,197) | 7,339 | NM | 11,458 | (3,542) | 15,000 | NM | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loss before taxes | (40,811 | ) | (8,588 | ) | (32,223 | ) | (375.2 | )% | (28,591 | ) | (25,686 | ) | (2,905 | ) | (11.3 | )% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income tax (benefit) expense | (1,034 | ) | 43,161 | 44,195 | (102.4 | )% | (1,222 | ) | 39,149 | 40,371 | 103.1 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net loss | $ | (39,777 | ) | $ | (51,749 | ) | 11,972 | 23.1 | % | $ | (27,369 | ) | $ | (64,835 | ) | 37,466 | 57.8 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(Loss) income before taxes | (Loss) income before taxes | (4,022) | 7,673 | (11,695) | 152.4 | % | (10,152) | 12,220 | (22,372) | 183.1 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income tax expense (benefit) | Income tax expense (benefit) | 13,703 | (81) | (13,784) | NM | 13,845 | (188) | (14,033) | NM | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net (loss) income | Net (loss) income | $ | (17,725) | $ | 7,754 | (25,479) | 328.6 | % | $ | (23,997) | $ | 12,408 | (36,405) | 293.4 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Less: Cumulative preferred dividends, undeclared and unpaid | 139 | 134 | (5 | ) | (3.7 | )% | 414 | 400 | (14 | ) | (3.5 | )% | Less: Cumulative preferred dividends, undeclared and unpaid | 143 | 138 | (5) | (3.6) | % | 284 | 275 | (9) | (3.3) | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Net loss available to common stockholders | $ | (39,916 | ) | $ | (51,883 | ) | 11,967 | 23.1 | % | $ | (27,783 | ) | $ | (65,235 | ) | 37,452 | 57.4 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net (loss) income available to common stockholders | Net (loss) income available to common stockholders | $ | (17,868) | $ | 7,616 | (25,484) | 334.6 | % | $ | (24,281) | $ | 12,133 | (36,414) | 300.1 | % |
Three Months Ended March 31, | Favorable (Unfavorable) | Nine Months Ended March 31, | Favorable (Unfavorable) | Three Months Ended December 31, | Favorable (Unfavorable) | Six Months Ended December 31, | Favorable (Unfavorable) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2020 | 2019 | Change | % Change | 2020 | 2019 | Change | % Change | 2020 | 2019 | Change | % Change | 2020 | 2019 | Change | % Change | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Units sold | Units sold | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Coffee (Roasted) | 20,542 | 22,298 | (1,756 | ) | (7.9 | )% | 64,796 | 64,575 | 221 | 0.3 | % | Coffee (Roasted) | 17,126 | 23,488 | (6,362) | (27.1) | % | 33,873 | 44,254 | (10,381) | (23.5) | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Coffee (Frozen Liquid) | 83 | 101 | (18 | ) | (17.8 | )% | 281 | 336 | (55 | ) | (16.4 | )% | Coffee (Frozen Liquid) | 47 | 100 | (53) | (53.0) | % | 92 | 198 | (106) | (53.5) | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Tea (Iced & Hot) | 650 | 740 | (90 | ) | (12.2 | )% | 1,998 | 2,097 | (99 | ) | (4.7 | )% | Tea (Iced & Hot) | 511 | 723 | (212) | (29.3) | % | 861 | 1,348 | (487) | (36.1) | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Culinary | 1,584 | 1,986 | (402 | ) | (20.2 | )% | 5,376 | 6,186 | (810 | ) | (13.1 | )% | Culinary | 1,248 | 1,934 | (686) | (35.5) | % | 2,372 | 3,792 | (1,420) | (37.4) | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Spice | 140 | 162 | (22 | ) | (13.6 | )% | 479 | 552 | (73 | ) | (13.2 | )% | Spice | 122 | 171 | (49) | (28.7) | % | 245 | 339 | (94) | (27.7) | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Other beverages(1) | 828 | 1,100 | (272 | ) | (24.7 | )% | 3,225 | 4,009 | (784 | ) | (19.6 | )% | Other beverages(1) | 926 | 1,459 | (533) | (36.5) | % | 1,519 | 2,397 | (878) | (36.6) | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | 23,827 | 26,387 | (2,560 | ) | (9.7 | )% | 76,155 | 77,755 | (1,600 | ) | (2.1 | )% | Total | 19,980 | 27,875 | (7,895) | (28.3) | % | 38,962 | 52,328 | (13,366) | (25.5) | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Unit Price | Unit Price | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Coffee (Roasted) | $ | 4.10 | $ | 4.18 | $ | (0.08 | ) | (1.9 | )% | $ | 4.16 | $ | 4.46 | $ | (0.30 | ) | (6.7 | )% | Coffee (Roasted) | $ | 4.05 | $ | 4.12 | $ | (0.07) | (1.7) | % | $ | 4.00 | $ | 4.18 | $ | (0.18) | (4.3) | % | |||||||||||||||||||||||||||||||||||||||||
Coffee (Frozen Liquid) | $ | 84.87 | $ | 81.85 | $ | 3.02 | 3.7 | % | $ | 83.73 | $ | 77.80 | $ | 5.93 | 7.6 | % | Coffee (Frozen Liquid) | $ | 86.74 | $ | 85.65 | $ | 1.09 | 1.3 | % | $ | 71.97 | $ | 83.21 | $ | (11.24) | (13.5) | % | |||||||||||||||||||||||||||||||||||||||||||
Tea (Iced & Hot) | $ | 10.31 | $ | 11.24 | $ | (0.93 | ) | (8.3 | )% | $ | 11.00 | $ | 12.34 | $ | (1.34 | ) | (10.9 | )% | Tea (Iced & Hot) | $ | 9.58 | $ | 10.46 | $ | (0.88) | (8.4) | % | $ | 7.58 | $ | 11.33 | $ | (3.75) | (33.1) | % | |||||||||||||||||||||||||||||||||||||||||
Culinary | $ | 8.18 | $ | 8.05 | $ | 0.13 | 1.6 | % | $ | 8.02 | $ | 7.89 | $ | 0.13 | 1.6 | % | Culinary | $ | 9.21 | $ | 7.98 | $ | 1.23 | 15.4 | % | $ | 9.24 | $ | 7.95 | $ | 1.29 | 16.2 | % | |||||||||||||||||||||||||||||||||||||||||||
Spice | $ | 37.59 | $ | 35.39 | $ | 2.20 | 6.2 | % | $ | 36.73 | $ | 32.42 | $ | 4.31 | 13.3 | % | Spice | $ | 34.95 | $ | 35.73 | $ | (0.78) | (2.2) | % | $ | 36.78 | $ | 36.40 | $ | 0.38 | 1.0 | % | |||||||||||||||||||||||||||||||||||||||||||
Other beverages(1) | $ | 14.84 | $ | 13.10 | $ | 1.74 | 13.3 | % | $ | 13.23 | $ | 11.21 | $ | 2.02 | 18.0 | % | Other beverages(1) | $ | 10.95 | $ | 11.95 | $ | (1.00) | (8.4) | % | $ | 14.15 | $ | 12.68 | $ | 1.47 | 11.6 | % | |||||||||||||||||||||||||||||||||||||||||||
Average unit price | $ | 5.40 | $ | 5.53 | $ | (0.13 | ) | (2.4 | )% | $ | 5.49 | $ | 5.81 | $ | (0.32 | ) | (5.5 | )% | Average unit price | $ | 5.22 | $ | 5.47 | $ | (0.25) | (4.6) | % | $ | 5.16 | $ | 5.54 | $ | (0.38) | (6.9) | % | |||||||||||||||||||||||||||||||||||||||||
Total Net Sales By Product Category(2) | Total Net Sales By Product Category(2) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Coffee (Roasted) | $ | 84,300 | $ | 93,211 | $ | (8,911 | ) | (9.6 | )% | $ | 269,367 | $ | 287,851 | $ | (18,484 | ) | (6.4 | )% | Coffee (Roasted) | $ | 69,427 | $ | 96,692 | $ | (27,265) | (28.2) | % | $ | 135,581 | $ | 185,067 | $ | (49,486) | (26.7) | % | |||||||||||||||||||||||||||||||||||||||||
Coffee (Frozen Liquid) | 7,044 | 8,267 | (1,223 | ) | (14.8 | )% | 23,528 | 26,141 | (2,613 | ) | (10.0 | )% | Coffee (Frozen Liquid) | 4,077 | 8,556 | (4,479) | (52.3) | % | 6,621 | 16,484 | (9,863) | (59.8) | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Tea (Iced & Hot) | 6,701 | 8,320 | (1,619 | ) | (19.5 | )% | 21,969 | 25,876 | (3,907 | ) | (15.1 | )% | Tea (Iced & Hot) | 4,895 | 7,563 | (2,668) | (35.3) | % | 6,525 | 15,268 | (8,743) | (57.3) | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Culinary | 12,954 | 15,990 | (3,036 | ) | (19.0 | )% | 43,099 | 48,779 | (5,680 | ) | (11.6 | )% | Culinary | 11,497 | 15,435 | (3,938) | (25.5) | % | 21,920 | 30,145 | (8,225) | (27.3) | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Spice | 5,262 | 5,736 | (474 | ) | (8.3 | )% | 17,594 | 17,895 | (301 | ) | (1.7 | )% | Spice | 4,264 | 6,126 | (1,862) | (30.4) | % | 9,010 | 12,332 | (3,322) | (26.9) | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Other beverages(1) | 12,290 | 14,405 | (2,115 | ) | (14.7 | )% | 42,681 | 44,946 | (2,265 | ) | (5.0 | )% | Other beverages(1) | 10,143 | 17,440 | (7,297) | (41.8) | % | 21,498 | 30,391 | (8,893) | (29.3) | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Net sales by product category | $ | 128,551 | $ | 145,929 | $ | (17,378 | ) | (11.9 | )% | $ | 418,238 | $ | 451,488 | $ | (33,250 | ) | (7.4 | )% | Net sales by product category | $ | 104,303 | $ | 151,812 | $ | (47,509) | (31.3) | % | $ | 201,155 | $ | 289,687 | $ | (88,532) | (30.6) | % | |||||||||||||||||||||||||||||||||||||||||
Fuel Surcharge | 588 | 750 | (162 | ) | (21.6 | )% | 1,999 | 2,404 | (405 | ) | (16.8 | )% | Fuel Surcharge | 268 | 686 | (418) | (60.9) | % | 686 | 1,411 | (725) | (51.4) | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | 129,139 | $ | 146,679 | $ | (17,540 | ) | (12.0 | )% | $ | 420,237 | $ | 453,892 | $ | (33,655 | ) | (7.4 | )% | Total | $ | 104,571 | $ | 152,498 | $ | (47,927) | (31.4) | % | $ | 201,841 | $ | 291,098 | $ | (89,257) | (30.7) | % |
Three Months Ended March 31, 2020 vs. 2019 | % of Total Mix Change | Nine Months Ended March 31, 2020 vs. 2019 | % of Total Mix Change | ||||||||||
Effect of change in unit sales | $ | (13.8 | ) | (78.9 | )% | $ | (8.8 | ) | (26.1 | )% | |||
Effect of pricing and product mix changes | (3.7 | ) | (21.1 | )% | (24.9 | ) | (73.9 | )% | |||||
Total decrease in net sales | $ | (17.5 | ) | (100.0 | )% | $ | (33.7 | ) | (100.0 | )% |
Three Months Ended December 31, 2020 vs. 2019 | % of Total Mix Change | Six Months Ended December 31, 2020 vs. 2019 | % of Total Mix Change | ||||||||||||||||||||
Effect of change in unit sales | (41.2) | (86.0) | % | (69.0) | (77.3) | % | |||||||||||||||||
Effect of pricing and product mix changes | (6.7) | (14.0) | % | (20.3) | (22.7) | % | |||||||||||||||||
Total decrease in net sales | (47.9) | (100.0) | % | (89.3) | (100.0) | % |
Three Months Ended December 31, | Six Months Ended December 31, | |||||||||||||||||||||||||
(In thousands) | 2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||||
Net (loss) income, as reported | $ | (17,725) | $ | 7,754 | $ | (23,997) | $ | 12,408 | ||||||||||||||||||
Income tax (benefit) expense | 13,703 | (81) | 13,845 | (188) | ||||||||||||||||||||||
Interest expense (1) | 2,002 | 1,585 | 3,994 | 2,861 | ||||||||||||||||||||||
Depreciation and amortization expense | 7,308 | 7,594 | 14,349 | 15,211 | ||||||||||||||||||||||
EBITDA | $ | 5,288 | $ | 16,852 | $ | 8,191 | $ | 30,292 | ||||||||||||||||||
EBITDA Margin | 5.1 | % | 11.1 | % | 4.1 | % | 10.4 | % |
Three Months Ended March 31, | Nine Months Ended March 31, | |||||||||||||||
(In thousands) | 2020 | 2019 | 2020 | 2019 | ||||||||||||
Net loss, as reported | $ | (39,777 | ) | $ | (51,749 | ) | $ | (27,369 | ) | $ | (64,835 | ) | ||||
Income tax (benefit) expense | (1,034 | ) | 43,161 | (1,222 | ) | 39,149 | ||||||||||
Interest expense (1) | 1,206 | 1,627 | 4,067 | 4,565 | ||||||||||||
Depreciation and amortization expense | 7,333 | 7,600 | 22,544 | 23,230 | ||||||||||||
EBITDA | $ | (32,272 | ) | $ | 639 | $ | (1,980 | ) | $ | 2,109 | ||||||
EBITDA Margin | (25.0 | )% | 0.4 | % | (0.5 | )% | 0.5 | % |
Three Months Ended December 31, | Six Months Ended December 31, | |||||||||||||||||||||||||
(In thousands) | 2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||||
Net (loss) income, as reported | $ | (17,725) | $ | 7,754 | $ | (23,997) | $ | 12,408 | ||||||||||||||||||
Income tax (benefit) expense | 13,703 | (81) | 13,845 | (188) | ||||||||||||||||||||||
Interest expense(1) | 2,002 | 1,585 | 3,994 | 2,861 | ||||||||||||||||||||||
Depreciation and amortization expense | 7,308 | 7,594 | 14,349 | 15,211 | ||||||||||||||||||||||
ESOP and share-based compensation expense | 794 | 909 | 1,950 | 1,778 | ||||||||||||||||||||||
Strategic initiatives (2) | 1,333 | — | 1,675 | — | ||||||||||||||||||||||
Net losses (gains) from sales of other assets | (1,168) | (11,057) | (549) | (23,662) | ||||||||||||||||||||||
Impairment of fixed assets | 1,243 | — | 1,243 | — | ||||||||||||||||||||||
Non-recurring costs associated with the COVID-19 pandemic | 149 | — | 260 | — | ||||||||||||||||||||||
Proxy contest-related expenses | — | 259 | — | 259 | ||||||||||||||||||||||
Severance | 635 | 485 | 1,197 | 2,797 | ||||||||||||||||||||||
Adjusted EBITDA(3) | $ | 8,274 | $ | 7,448 | $ | 13,967 | $ | 11,464 | ||||||||||||||||||
Adjusted EBITDA Margin | 7.9 | % | 4.9 | % | 6.9 | % | 3.9 | % |
Three Months Ended March 31, | Nine Months Ended March 31, | |||||||||||||||
(In thousands) | 2020 | 2019 | 2020 | 2019 | ||||||||||||
Net loss, as reported | $ | (39,777 | ) | $ | (51,749 | ) | $ | (27,369 | ) | $ | (64,835 | ) | ||||
Income tax (benefit) expense | (1,034 | ) | 43,161 | (1,222 | ) | 39,149 | ||||||||||
Interest expense(1) | 1,206 | 1,627 | 4,067 | 4,565 | ||||||||||||
Depreciation and amortization expense | 7,333 | 7,600 | 22,544 | 23,230 | ||||||||||||
ESOP and share-based compensation expense | 1,418 | 1,238 | 3,197 | 3,095 | ||||||||||||
Restructuring and other transition expenses(2) | — | 26 | — | 4,700 | ||||||||||||
Net losses (gains) from sales of other assets | 287 | 248 | (23,375 | ) | 971 | |||||||||||
Impairment of goodwill and intangible assets | 42,030 | — | 42,030 | — | ||||||||||||
Non-recurring costs associated with the COVID-19 pandemic | 129 | — | 129 | — | ||||||||||||
Proxy contest-related expenses | 204 | — | 463 | — | ||||||||||||
Acquisition and integration costs | — | 2,384 | — | 6,122 | ||||||||||||
Postretirement benefits curtailment and pension settlement charge | (5,760 | ) | — | (5,760 | ) | 10,948 | ||||||||||
Severance | 527 | — | 3,324 | — | ||||||||||||
Adjusted EBITDA | $ | 6,563 | $ | 4,535 | $ | 18,028 | $ | 27,945 | ||||||||
Adjusted EBITDA Margin | 5.1 | % | 3.1 | % | 4.3 | % | 6.2 | % |
December 31, 2020 | June 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||
(In thousands) | Debt Origination Date | Maturity | Original Borrowing Amount | Carrying Value | Weighted Average Interest Rate | Carrying Value | Weighted Average Interest Rate | |||||||||||||||||||||||||||||||||||||
Credit Facility | Revolver | 11/6/2023 | N/A | $ | 82,000 | 6.56 | % | $ | 122,000 | 4.91 | % |
March 31, 2020 | June 30, 2019 | |||||||||||||||||||
(In thousands) | Debt Origination Date | Maturity | Original Borrowing Amount | Carrying Value | Weighted Average Interest Rate | Carrying Value | Weighted Average Interest Rate | |||||||||||||
Credit Facility | Revolver | 11/6/2023 | N/A | $ | 80,000 | 4.45 | % | $ | 92,000 | 3.98 | % |
Nine Months Ended March 31, | |||||||
2020 | 2019 | ||||||
Condensed Consolidated Statements of cash flows data (in thousands) | |||||||
Net cash provided by operating activities | $ | 8,065 | $ | 7,500 | |||
Net cash provided (used) in investing activities | 23,619 | (30,250 | ) | ||||
Net cash (used) provided by financing activities | (12,278 | ) | 32,506 | ||||
Net increase in cash and cash equivalents | $ | 19,406 | $ | 9,756 |
Six Months Ended December 31, | |||||||||||
2020 | 2019 | ||||||||||
Condensed Consolidated Statements of cash flows data (in thousands) | |||||||||||
Net cash used by operating activities | $ | (3,823) | $ | (2,195) | |||||||
Net cash (used) provided in investing activities | (7,710) | 26,240 | |||||||||
Net cash used by financing activities | (42,623) | (21,898) | |||||||||
Net (decrease) increase in cash and cash equivalents | $ | (54,156) | $ | 2,147 |
Three Months Ended December 31, | Six Months Ended December 31, | |||||||||||||||||||||||||
(In thousands) | 2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||||
Maintenance: | ||||||||||||||||||||||||||
Coffee brewing equipment | $ | 1,752 | $ | 1,990 | $ | 2,852 | $ | 4,135 | ||||||||||||||||||
Building and facilities | — | 58 | 45 | 133 | ||||||||||||||||||||||
Vehicles, machinery and equipment | 133 | 349 | 228 | 1,036 | ||||||||||||||||||||||
IT, software, office furniture and equipment | 262 | 710 | 616 | 2,155 | ||||||||||||||||||||||
Capital expenditures, maintenance | $ | 2,147 | $ | 3,107 | $ | 3,741 | $ | 7,459 | ||||||||||||||||||
Expansion Project: | ||||||||||||||||||||||||||
Machinery and equipment | $ | 2,360 | $ | 623 | $ | 4,770 | $ | 1,548 | ||||||||||||||||||
IT equipment | $ | 344 | $ | — | $ | 705 | $ | — | ||||||||||||||||||
Capital expenditures, Expansion Project | $ | 2,704 | $ | 623 | $ | 5,475 | $ | 1,548 | ||||||||||||||||||
New Facility Costs | ||||||||||||||||||||||||||
Building and facilities, including land | 420 | — | 420 | — | ||||||||||||||||||||||
Capital expenditures, New Facility | $ | 420 | $ | — | $ | 420 | $ | — | ||||||||||||||||||
Total capital expenditures | $ | 5,271 | $ | 3,730 | $ | 9,636 | $ | 9,007 |
Three Months Ended March 31, | Nine Months Ended March 31, | |||||||||||||||
(In thousands) | 2020 | 2019 | 2020 | 2019 | ||||||||||||
Maintenance: | ||||||||||||||||
Coffee brewing equipment | $ | 2,159 | $ | 3,538 | $ | 6,294 | $ | 12,460 | ||||||||
Building and facilities | — | 35 | 133 | 50 | ||||||||||||
Vehicles, machinery and equipment | 408 | 464 | 1,444 | 2,187 | ||||||||||||
IT, software, office furniture and equipment | 596 | 397 | 2,751 | 2,304 | ||||||||||||
Capital expenditures, maintenance | $ | 3,163 | $ | 4,434 | $ | 10,622 | $ | 17,001 | ||||||||
Expansion Project: | ||||||||||||||||
Machinery and equipment | $ | 828 | $ | 2,839 | $ | 2,376 | $ | 13,392 | ||||||||
IT equipment | $ | 116 | $ | — | $ | 116 | $ | — | ||||||||
Capital expenditures, Expansion Project | $ | 944 | $ | 2,839 | $ | 2,492 | $ | 13,392 | ||||||||
Total capital expenditures | $ | 4,107 | $ | 7,273 | $ | 13,114 | $ | 30,393 |
Item 3. | Quantitative and Qualitative Disclosures About Market Risk |
(In thousands) | Principal | Interest Rate | Annual Interest Expense | |||||||||||||||||
–150 basis points | $17,000 | 5.06 | % | $ | 860 | |||||||||||||||
–100 basis points | $17,000 | 5.56 | % | $ | 945 | |||||||||||||||
Unchanged | $17,000 | 6.56 | % | $ | 1,115 | |||||||||||||||
+100 basis points | $17,000 | 7.56 | % | $ | 1,285 | |||||||||||||||
+150 basis points | $17,000 | 8.06 | % | $ | 1,370 |
(In thousands) | Principal | Interest Rate | Annual Interest Expense | ||||||
–150 basis points | $15,000 | 2.95 | % | $ | 443 | ||||
–100 basis points | $15,000 | 3.45 | % | $ | 518 | ||||
Unchanged | $15,000 | 4.45 | % | $ | 668 | ||||
+100 basis points | $15,000 | 5.45 | % | $ | 818 | ||||
+150 basis points | $15,000 | 5.95 | % | $ | 893 |
Increase (Decrease) to Net Loss | Increase (Decrease) to AOCI | Increase (Decrease) to Net Loss | Increase (Decrease) to AOCI | |||||||||||||||||||||||||||||||||||||||
10% Increase in Underlying Rate | 10% Decrease in Underlying Rate | 10% Increase in Underlying Rate | 10% Decrease in Underlying Rate | 10% Increase in Underlying Rate | 10% Decrease in Underlying Rate | 10% Increase in Underlying Rate | 10% Decrease in Underlying Rate | |||||||||||||||||||||||||||||||||||
(In thousands) | (In thousands) | |||||||||||||||||||||||||||||||||||||||||
Coffee-related derivative instruments(1) | $ | 596 | $ | (596 | ) | $ | 4,155 | $ | (4,155 | ) | Coffee-related derivative instruments(1) | $ | 1,027 | $ | (1,027) | $ | 2,235 | $ | (2,235) |
Item 4. | Controls and Procedures |
PART II - OTHER INFORMATION |
Item 1. | Legal Proceedings |
Item 1A. | Risk Factors |
Item 6. | Exhibits |
Exhibit No. | Description | |||||||
3.1 | ||||||||||
3.4 | ||||||||||
31.2* | ||||||||||
32.1** | ||||||||||
32.2** | ||||||||||
101.INS** | XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document. | |||||||||
101.SCH** | Inline XBRL Taxonomy Extension Schema Document. | |||||||||
101.CAL** | Inline XBRL Taxonomy Extension Calculation Linkbase Document. | |||||||||
101.DEF** | Inline XBRL Taxonomy Extension Definition Linkbase Document. | |||||||||
101.LAB** | Inline XBRL Taxonomy Extension Label Linkbase Document. | |||||||||
101.PRE** | Inline XBRL Taxonomy Extension Presentation Linkbase Document. | |||||||||
104** | Cover Page Interactive Data File - the cover page interactive data file does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document. |
* | Filed herewith | ||||
** | |||||
Furnished, not filed, herewith |
FARMER BROS. CO. | |||||||||||||||||
By: | /s/ Deverl Maserang | ||||||||||||||||
Deverl Maserang President and Chief Executive Officer (principal executive officer) | |||||||||||||||||
By: | /s/ Scott R. Drake | ||||||||||||||||
Scott R. Drake Chief Financial Officer (principal financial officer) | |||||||||||||||||