FARM - Earnings call 4 2023 | Farmer Bros. Co.

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Operator

Hello, good afternoon, and welcome to the Farmer Brothers Fiscal Fourth Quarter and Full Year 2023 Earnings Conference Call. [Operator Instructions] As a reminder, this call is being recorded. Earlier today, the company issued its quarterly shareholder letter available on the Investor Relations section of Farmer Bros.' website at farmerbros.com. The shareholder letter is also included as an exhibit on the company's Form 8-K and is available on the company's website and the Securities and Exchange Commission's website at sec.gov. A replay is available on the company's website and the Securities and Exchange Commission website at sec.gov. A replay of this audio-only webcast will be available approximately 2 hours after the conclusion of this call. The link to the audio replay will also be available on the company's website.

Before we begin the call, please note all of the financial information presented is unaudited and various remarks made by management during this call about the company's future expectations, plans and prospects may constitute forward-looking statements for purposes of the safe harbor provisions under the federal securities laws and regulations. date. Results the be only the relied as any represent and of company's statements from of not materially should upon subsequent forward-looking company's statements. as views today views those These forward-looking differ could as representing

Deverl adjusted which forward-looking will in financial Additional those public assessing letter. I results non-GAAP and materially ahead. is filings. On go also and most letter GAAP the also the Chief company's and Reconciliation Maserang. shareholders of available non-GAAP in Officer, to is EBITDA now today's cause other will information could including margin operating directly Mr. actual management financial to these performance. reference over Maserang, EBITDA included events measures company's certain measures on Brothers call their differ please measures the shareholder call, turn factors in statements to from Farmer adjusted the company's comparable Executive

Deverl Maserang

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John Moore

hello, and Deverl, Thanks, everyone.

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forecast and our in we have we're historically our on continue, we further has look opportunistically thrived which optimize In going one short, Brothers is focus participate trend with margins forward. this improved Farmer moving to to DSD As is full market into visibly the performance. now,

is take are you than They Brothers a way would business business It's Farmer operational time, our for about meaningful. discipline organization. the and changes an the brand have has need more energized execute. accountability relationship-driven talented we the good been increasing DSD strong we changes the work known long where feel to a team think. change, in executed and throughout I too. believe require changes the to doing approach around Second, cultural while of maintain and sometimes so

is goal already our better sustainable, growth. more pricing much We're getting Finally, profitable efficient. and at

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Scott Drake

Thank the results you, for the John. I quarter in will cover our year.

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want statements the into divestiture the pro remind a reporting diving on a Financials. give to view business. reflecting I performance, July, basis, we Before Brothers of to forma we're filed operations shift on direct continuing the DSD of investors Farmer financial you In our impacts

comment, gain cost the impacts on as the see headline pricing of pricing what improving we in are containment. a sales, margins fourth positive quarter and As you leverage beginnings good

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to was Our in but flowing moved somewhat coffee an This the our were against quickly, loss were XX%, cost Those the and inflationary fourth fourth lower and profit due in year G&A through $XX.X total swing on mitigate million lower reflects primarily EBITDA pressured adjusted gross late quarter last labor the revenue sold. impact for of pricing, but reductions, with by We profit on offset $X.X year impacts operating other million adjusted the EBITDA our loss of this some volume. of X% cost year. goods P&L. Recapping able in up quarter, $X.X the up price showed was of million. unfavorable year to the by benefits Margins mid- costs bringing down million, $XXX over pricing to to a

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Brad Bollner

on year: transition the TreeHouse. provide co-manufacturing show Thanks, echo pricing. The going. about Deverl unfolding improvement is fiscal X factors express gratitude our Scott, some in we we of the for the however, and and my we're impacts and flattish with color how services To anticipating sales like will with and reorganization from see their my I'd XXXX, agreement as benefit gross we're transitional Scott some where also line, expiration from quarter-over-quarter throughout margin Our we bottom excitement business hello, DSD and of everyone. in to first the quarter XXXX to leadership favorable

with we year. expect to run favorable and resulting gain appear next from on generating starting as impact significant advantage a quarters, the over this efficiencies of We full basis the transition, to the couple exit rate results production to operating

sales positive in year improvement that, to We out. With assuming it looking margin inflect a see pricing and back free cash and several believe we we also continues can as industry I'll progresses Deverl. turn favorable expect quarters to the flow

Deverl Maserang

of done Brad, be opportunities Thanks, to I'm is excited both ahead. success in and you last long-term the remain and believers for aligned hard execute lie years. I and Thank are this what can continued strong and organization John the thank needs the Farmer future confident create that drive about work organization value. over several your team your the and as for leadership believe Scott, this support note you, we on to shareholder of I Brothers. it shareholders and

Operator

Thank concluded. now has you for conference presentation. attending The today's

You may lines. now disconnect your

Farmer Bros. (FARM) 12 Sep 232023 Q4 Earnings call transcript