Farmer Brothers Company · NASDAQ:FARM
Farmer Brothers — FY2014 Earnings Presentation
21 slides from Farmer Brothers's earnings presentation, Sep 9, 2014
Slide 1: Q4 & FY 2014 Earnings Conference Call and Webcast
Q4 & FY 2014 Earnings Conference Call and Webcast September 9, 2014 Exhibit 99.2
Slide 2: Cautionary Statement Regarding Forward-Looking Statements
2 Note: All of the financial information presented herein is unaudited. Cautionary Statement Regarding Forward-Looking Statements Certain statements contained in this presentation are not based on historical fact and are forward-looking statements within the meaning of federal securities laws and re
Slide 3: Agenda
• Farmer Brothers Recent History & Accomplishments • Financial Overview for Q4 and FY 2014 • Business & Strategy • Question & Answers 3 Agenda
Slide 4: Recent History & Accomplishments
Recent History & Accomplishments
Slide 5: Farmer Brothers Overview
5 A leading manufacturer, wholesaler, and distributor of coffee, tea, and culinary products • Founded in 1912 • Today we are a leading national roaster, manufacturer, wholesaler and distributor of high-quality branded and private label coffees, teas, spices and culinary products Differentiated busin
Slide 6: Recent Accomplishments
6 • Integration of Acquisitions Completed • Attracted National Customers • Aligned Company on One ERP Platform • Built an Experienced Management Team • Enhanced Specialty Coffee Capabilities • Focused on Supply Chain Rationalization • Broadened Hedging Program • Added New Capabilities – i.e. Nationa
Slide 7: Nationwide Distribution Network
7 Nationwide Distribution Network 6 distribution centers and 111 branch warehouses Manufacturing Facility Distribution Center Branch Location
Slide 8: Production Capabilities
TORRANCE HOUSTON PORTLAND 8 coffee, spices coffee, tea coffee Production Capabilities
Slide 9: Developing Model to Win New Customers
9 Connections at Origin National DSD Market Insights Innovation Lab Sustainability Programs R&D & Product Quality Dedicated Account Management National Customers Price-Risk Management Industry Leadership Developing Model to Win New Customers
Slide 10: Experienced Management Team
10 Name Title Prior Experience Mike Keown President and Chief Executive Officer Mark Nelson Treasure and Chief Financial Officer Tom Mortensen Senior VP of Route Sales Scott Siers Senior VP of National Account Sales Pat Quiggle VP, Human Resources Tom Mattei VP, Corporate Counsel Gerard Bastiaanse V
Slide 11: Industry Leadership
• Specialty Coffee Association of America • Coffee Quality Institute • Cup of Excellence/Alliance for Coffee Excellence • International Society of Sustainability Professionals • Roasters Guild • Pacific Coast Coffee Association • World Coffee Research • Charitable Support Industry Leadership 11 The
Slide 12: Improved Overall Financial Results
• Since fiscal 2011, we have delivered improving financial results – Consistent Revenue Growth – Marked Underlying Volume Growth – Rebounding Net Income – FY 2014 is our most profitable year in over a decade Improved Overall Financial Results 12 $ in millions ($52.0) ($26.6) ($8.5) $12.1 Net Income/
Slide 13: Financial Overview
Farmer Brothers Financial Overview
Slide 14: Consistent Revenue Growth
14 CBI acquisition – April 2007; Sara Lee DSD acquisition – February 2009 Fiscal Year end June 30 Consistent Revenue Growth Acquisition of CBI In millions Acquisition of CBI Acquisition of Sara Lee DSD $451 $464 $499 $514 $528 $342 $266 $216
Slide 15: Q4 Financial Performance (FY 2012 – FY 2014)
15 Fiscal Quarter ended June 30 Q4 Financial Performance (FY 2012 – FY 2014)
Slide 16: FY 2014 Financial Performance (FY 2012 – FY 2014)
16 FY 2014 Financial Performance (FY 2012 – FY 2014)
Slide 17: Solid Adjusted EBITDA Growth
17 * In addition to net income (loss) determined in accordance with GAAP, we use certain non-GAAP financial measures, including “Adjusted EBITDA” and “Adjusted EBITDA Margin” in assessing our operating performance. We believe these non-GAAP financial measures serve as appropriate measures to be used
Slide 18: Stronger Balance Sheet
18 Stronger Balance Sheet Numbers presented are rounded Inventory – recorded under LIFO methodology PP&E – includes 55 owned properties
Slide 19: Business & Strategy
Farmer Brothers Business & Strategy
Slide 20: Farmer Brothers' Strategy
Strategy #3: Develop Asset Strategy and Attack Costs Strategy #2: Create Strategic Partnerships 20 Strategy #1: Grow the Street Business Farmer Brothers’ Strategy Strategy #6: Increase Product Penetration Strategy #5: Drive High Growth Categories Strategy #7: Grow Profit in National Accounts Strateg
Slide 21: Farmer Brothers
Farmer Brothers NASDAQ: FARM