Farmer Brothers Coffee reports second quarter fiscal 2025 financial results
Farmer Brothers Coffee (NASDAQ: FARM) reported Q2 fiscal 2025 results with net sales of $90 million, up slightly from $89.5 million in Q2 2024. The company achieved a gross margin of 43.1%, representing a 270 basis points increase year-over-year. Net income was $210,000, compared to $2.7 million in Q2 2024, with the difference primarily due to decreased gains from asset disposals.
The company reported improved adjusted EBITDA of $5.9 million, up $3.6 million from Q2 2024. Operating expenses increased to $37.8 million (42% of net sales) from $31.7 million in the prior year. As of December 31, 2024, the company had $5.5 million in unrestricted cash and $23.3 million in outstanding borrowings, with $23.7 million available under its revolving credit facility.
Farmer Brothers Coffee (NASDAQ: FARM) ha riportato i risultati del secondo trimestre dell'anno fiscale 2025, con vendite nette di 90 milioni di dollari, in lieve aumento rispetto ai 89,5 milioni di dollari del Q2 2024. L'azienda ha raggiunto un margine lordo del 43,1%, rappresentando un aumento di 270 punti base rispetto all'anno precedente. L'utile netto è stato di 210.000 dollari, rispetto ai 2,7 milioni di dollari nel Q2 2024, con la differenza principalmente dovuta alla diminuzione dei guadagni dalla vendita di beni.
L'azienda ha registrato un EBITDA rettificato di 5,9 milioni di dollari, in crescita di 3,6 milioni di dollari rispetto al Q2 2024. Le spese operative sono aumentate a 37,8 milioni di dollari (42% delle vendite nette) rispetto ai 31,7 milioni di dollari dell'anno precedente. Al 31 dicembre 2024, l'azienda disponeva di 5,5 milioni di dollari in contante non vincolato e 23,3 milioni di dollari in prestiti in sospeso, con 23,7 milioni di dollari disponibili sotto la sua linea di credito revolving.
Farmer Brothers Coffee (NASDAQ: FARM) reportó los resultados del segundo trimestre del año fiscal 2025, con ventas netas de 90 millones de dólares, un leve aumento desde los 89,5 millones de dólares en el Q2 2024. La compañía alcanzó un margen bruto del 43,1%, lo que representa un aumento de 270 puntos básicos en comparación con el año anterior. La ganancia neta fue de 210.000 dólares, en comparación con 2,7 millones de dólares en el Q2 2024, siendo la diferencia principalmente atribuible a la disminución de ganancias por disposiciones de activos.
La compañía reportó un EBITDA ajustado de 5,9 millones de dólares, un aumento de 3,6 millones de dólares desde el Q2 2024. Los gastos operativos aumentaron a 37,8 millones de dólares (42% de las ventas netas) desde los 31,7 millones de dólares del año anterior. Al 31 de diciembre de 2024, la empresa tenía 5,5 millones de dólares en efectivo no restringido y 23,3 millones de dólares en préstamos pendientes, con 23,7 millones de dólares disponibles bajo su línea de crédito rotativa.
파머 브라더스 커피 (NASDAQ: FARM)는 2025 회계 연도 2분기 실적을 보고하며 순매출 9천만 달러를 기록, 2024 회계 연도 2분기 8천950만 달러에서 소폭 증가했습니다. 이 회사는 43.1%의 총 이익률을 달성하여 전년 대비 270베이시스 포인트 상승을 나타냈습니다. 순이익은 21만 달러로, 2024 회계 연도 2분기의 270만 달러와 비교되며, 차이는 주로 자산 처분에서의 이익 감소로 인한 것입니다.
회사는 개선된 조정 EBITDA 590만 달러를 보고하며, 2024 회계 연도 2분기에서 360만 달러 증가했습니다. 운영 비용은 3,780만 달러(순매출의 42%)로 증가했으며, 이는 지난해의 3,170만 달러에서 증가한 수치입니다. 2024년 12월 31일 기준으로 회사는 제한 없는 현금 550만 달러와 미결제 차입금 2,330만 달러를 보유하고 있으며, 2,370만 달러가 회전 신용 한도 내에서 이용 가능합니다.
Farmer Brothers Coffee (NASDAQ: FARM) a annoncé les résultats du deuxième trimestre de l'exercice 2025, avec des ventes nettes de 90 millions de dollars, en légère hausse par rapport à 89,5 millions de dollars au Q2 2024. L'entreprise a atteint une marge brute de 43,1%, représentant une augmentation de 270 points de base par rapport à l'année précédente. Le bénéfice net était de 210 000 dollars, contre 2,7 millions de dollars au Q2 2024, la différence étant principalement due à une diminution des gains liés aux cessions d'actifs.
L'entreprise a enregistré un EBITDA ajusté de 5,9 millions de dollars, en hausse de 3,6 millions de dollars par rapport au Q2 2024. Les frais d'exploitation ont augmenté à 37,8 millions de dollars (42 % des ventes nettes) contre 31,7 millions de dollars l'année précédente. Au 31 décembre 2024, l'entreprise disposait de 5,5 millions de dollars en liquidités non restreintes et de 23,3 millions de dollars en emprunts en cours, avec 23,7 millions de dollars disponibles dans le cadre de sa ligne de crédit renouvelable.
Farmer Brothers Coffee (NASDAQ: FARM) hat die Ergebnisse des zweiten Quartals des Geschäftsjahres 2025 veröffentlicht, mit Nettoverkaufszahlen von 90 Millionen Dollar, ein leichter Anstieg im Vergleich zu 89,5 Millionen Dollar im Q2 2024. Das Unternehmen erreichte eine Bruttomarge von 43,1%, was einen Anstieg von 270 Basispunkten im Vergleich zum Vorjahr darstellt. Der Nettogewinn betrug 210.000 Dollar, verglichen mit 2,7 Millionen Dollar im Q2 2024, wobei der Unterschied hauptsächlich auf geringere Gewinne aus der Veräußern von Vermögenswerten zurückzuführen ist.
Das Unternehmen berichtete von einem verbesserten bereinigten EBITDA von 5,9 Millionen Dollar, ein Anstieg um 3,6 Millionen Dollar im Vergleich zum Q2 2024. Die Betriebskosten stiegen auf 37,8 Millionen Dollar (42% der Nettoverkäufe) im Vergleich zu 31,7 Millionen Dollar im Vorjahr. Zum 31. Dezember 2024 verfügte das Unternehmen über 5,5 Millionen Dollar an ungebundenen Bargeld und 23,3 Millionen Dollar an ausstehenden Darlehen, wobei 23,7 Millionen Dollar im Rahmen seiner revolvierenden Kreditlinie verfügbar waren.
- Gross margin improved by 270 basis points to 43.1%
- Adjusted EBITDA increased by $3.6 million to $5.9 million
- Net sales grew slightly to $90 million from $89.5 million YoY
- Net income decreased to $210,000 from $2.7 million YoY
- Operating expenses increased by $6.1 million to $37.8 million
- High outstanding borrowings of $23.3 million against $5.5 million cash position
Insights
Farmer Brothers' Q2 FY2025 results reveal a company in transition, with mixed signals worth unpacking. The headline numbers show encouraging operational improvements, particularly in gross margin expansion of 270 basis points to
The adjusted EBITDA improvement to
Strategic initiatives, including SKU rationalization and the rollout of specialty tier coffee brands, demonstrate management's focus on higher-margin opportunities. The restructuring of the sales leadership team and optimization of direct store delivery routes suggest a disciplined approach to operational efficiency.
However, several risk factors warrant attention: 1) The minimal revenue growth of just
The transition from asset sales-driven profits to operational improvements marks a important pivot point. While the absence of one-time gains from asset sales impacted year-over-year comparisons, the underlying operational metrics suggest the business model is gradually strengthening, though significant work remains to achieve sustainable profitability.
Second quarter fiscal 2025 net sales of
Second quarter fiscal 2025 gross margin increase of 270 basis points year-over-year to
Reported second quarter net income of
FORT WORTH, Texas, Feb. 06, 2025 (GLOBE NEWSWIRE) -- Farmer Bros. Co. (NASDAQ: FARM) today reported its second quarter fiscal 2025 financial results for the period ended Dec. 31, 2024. The company filed its Form 10-Q, which can be found on the Investor Relations section of the company’s website.
“The second quarter was one of our strongest performing quarters in quite some time despite the challenging market environment,” said Farmer Brothers President and Chief Executive Officer John Moore. “We saw continued improvements in sales, operating expenses and adjusted EBITDA1, as well as gross margins above
“Looking ahead, we continue to focus on executing and navigating difficult macroeconomic conditions and believe these results underscore the positive impact of the changes we have made to focus on DSD operations and optimize the business over the last 18 months. We feel we are better positioned than we have been in a long time to realize significant positive gains and long-term growth and profitability once market conditions become more favorable.”
Second quarter 2025 business highlights
- Enhanced leadership team in January with the addition of Vice President of Sales Brian Miller to lead the sales force and the transition of Vice President and Chief Field Operations Officer Tom Bauer to an operations-focused leadership role.
- Completed additional milestones related to SKU rationalization and brand pyramid initiatives, which are on track to be completed in the third quarter of fiscal 2025.
- Rolled out specialty tier coffee brand to select customers with a full roll out slated by the end of the third quarter of fiscal 2025.
- Continued progress related to direct store delivery (DSD) route optimization and customer penetration efforts.
Second quarter fiscal 2025 financial results
- Net sales of
$90 million compared to$89.5 million in the second quarter of fiscal 2024. - Gross profit of
$38.8 million , or43.1% , compared to$36.1 million , or40.4% , in the prior year period. The increase in gross profit was primarily a result of improved pricing compared to the prior year period. - Operating expenses were
$37.8 million , or42% of net sales, compared to$31.7 million , or35.4% of net sales, in the prior year period. The$6.1 million increase was primarily driven by a$7.7 million decrease in net gains related to asset disposals as there were no branch sales in the second quarter of fiscal 2025. - Net income was
$210,000 , which included a$1.5 million net loss associated with the disposal of assets, compared to$2.7 million for the second quarter of fiscal 2024, which included a$6.1 million net gain associated with disposal of assets. - Adjusted EBITDA1 was
$5.9 million , an increase of almost$3.6 million , compared to$2.3 million in the second quarter of fiscal 2024.
Balance Sheet and Liquidity
As of Dec. 31, 2024, the company had
Investor Conference Call
Farmer Brothers published its full second quarter fiscal 2025 financial results for the period ended Dec. 31, 2024, with the filing of its Form 10-Q, which will be available on the Investor Relations section of the company’s website after the close of market Thursday, Feb. 6.
The company will also host an audio-only investor conference call and webcast at 5 p.m. Eastern on Thursday, Feb. 6 to provide a review of the quarter and business update. The live audio webcast along with the press release will be available on the Investor Relations section of the company’s website. Callers who pre-register will be emailed dial-in details and a unique PIN to gain immediate access to the call and bypass the live operator. An audio-only replay of the webcast will be archived for at least 30 days on the Investor Relations section of farmerbros.com and will be available approximately two hours after the end of the live webcast.
About Farmer Brothers
Founded in 1912, Farmer Brothers Coffee Co. is a national coffee roaster, wholesaler, equipment servicer and distributor of coffee, tea and culinary products. The company’s product lines include organic, Direct Trade and sustainably produced coffee, as well as tea, cappuccino mixes, spices and baking/biscuit mixes.
Farmer Brothers Coffee Co. delivers extensive beverage planning services and culinary products to a wide variety of U.S.-based customers, ranging from small independent restaurants and foodservice operators to large institutional buyers, such as restaurant, department and convenience store chains, hotels, casinos, healthcare facilities and gourmet coffee houses, as well as grocery chains with private brand coffee and consumer branded coffee and tea products and foodservice distributors. The company’s primary brands include Farmer Brothers, Boyd’s, Cain’s, China Mist and West Coast Coffee. You can learn more at farmerbros.com.
Forward-looking Statements
This press release and other documents we file with the Securities and Exchange Commission (the “SEC”) contain “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, that are based on current expectations, estimates, forecasts and projections about us, our future performance, our financial condition, our products, our business strategy, our beliefs and our management’s assumptions. In addition, we, or others on our behalf, may make forward-looking statements in press releases or written statements, or in our communications and discussions with investors and analysts in the normal course of business through meetings, webcasts, phone calls and conference calls. These forward-looking statements can be identified by the use of words like “anticipates,” “estimates,” “projects,” “expects,” “plans,” “believes,” “intends,” “will,” “could,” “may,” “assumes” and other words of similar meaning. These statements are based on management’s beliefs, assumptions, estimates and observations of future events based on information available to our management at the time the statements are made and include any statements that do not relate to any historical or current fact. These statements are not guarantees of future performance and they involve certain risks, uncertainties and assumptions that are difficult to predict. Actual outcomes and results may differ materially from what is expressed, implied or forecast by our forward-looking statements due in part to the risks, uncertainties and assumptions set forth in Part I, Item 1A of our Annual Report on Form 10-K for the fiscal year ended June 30, 2024 filed with the SEC on September 12, 2024, as amended by the Form 10-K/A filed on October 25, 2024 (as amended, the “2024 Form 10-K”), as well as those discussed elsewhere in this Quarterly Report on Form 10-Q and other factors described from time to time in our filings with the SEC.
Factors that could cause actual results to differ materially from those in forward-looking statements include, but are not limited to, severe weather, levels of consumer confidence in national and local economic business conditions, developments related to pricing cycles and volumes, the impact of labor market shortages, the increase of costs due to inflation, an economic downturn caused by any pandemic, epidemic or other disease outbreak, the success of our turnaround strategy, the impact of capital improvement projects, the adequacy and availability of capital resources to fund our existing and planned business operations and our capital expenditure requirements, our ability to meet financial covenant requirements in our credit facility, which could impact, among other things, our liquidity, the relative effectiveness of compensation-based employee incentives in causing improvements in our performance, the capacity to meet the demands of our customers, the extent of execution of plans for the growth of our business and achievement of financial metrics related to those plans, our success in retaining and/or attracting qualified employees, our success in adapting to technology and new commerce channels, the effect of the capital markets, as well as other external factors on stockholder value, fluctuations in availability and cost of green coffee, competition, organizational changes, the effectiveness of our hedging strategies in reducing price, changes in consumer preferences, our ability to provide sustainability in ways that do not materially impair profitability, changes in the strength of the economy, including any effects from inflation, business conditions in the coffee industry and food industry in general, our continued success in attracting new customers, variances from budgeted sales mix and growth rates, weather and special or unusual events, as well as other risks, uncertainties and assumptions described in the 2024 Form 10-K and other factors described from time to time in our filings with the SEC.
Given these risks and uncertainties, you should not rely on forward-looking statements as a prediction of actual results. Any or all of the forward-looking statements contained in this press release and any other public statement made by us, including by our management, may turn out to be incorrect. We are including this cautionary note to make applicable and take advantage of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 for forward-looking statements. We expressly disclaim any obligation to update or revise any forward-looking statements, whether as a result of new information, future events, changes in assumptions or otherwise, except as required under federal securities laws and the rules and regulations of the SEC.
Investor Relations Contact
Ellipsis
Investor.relations@farmerbros.com
646-776-0886
Media contact
Brandi Wessel
Director of Communications
405-885-5176
bwessel@farmerbros.com
FARMER BROS. CO. CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) (In thousands, except share and per share data) | |||||||||||||||
Three Months Ended December 31, | Six Months Ended December 31, | ||||||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||||||
Net sales | $ | 90,021 | $ | 89,453 | $ | 175,086 | $ | 171,340 | |||||||
Cost of goods sold | 51,182 | 53,344 | 98,930 | 104,444 | |||||||||||
Gross profit | 38,839 | 36,109 | 76,156 | 66,896 | |||||||||||
Selling expenses | 26,760 | 28,141 | 53,987 | 54,969 | |||||||||||
General and administrative expenses | 9,534 | 9,655 | 20,786 | 22,486 | |||||||||||
Net losses (gains) on disposal of assets | 1,527 | (6,138 | ) | 3,193 | (12,922 | ) | |||||||||
Operating expenses | 37,821 | 31,658 | 77,966 | 64,533 | |||||||||||
Income (loss) from operations | 1,018 | 4,451 | (1,810 | ) | 2,363 | ||||||||||
Other (expense) income: | |||||||||||||||
Interest expense | (1,922 | ) | (1,907 | ) | (3,713 | ) | (4,129 | ) | |||||||
Other, net | 1,033 | 324 | 783 | 3,195 | |||||||||||
Total other expense | (889 | ) | (1,583 | ) | (2,930 | ) | (934 | ) | |||||||
Income (loss) before taxes | 129 | 2,868 | (4,740 | ) | 1,429 | ||||||||||
Income tax (benefit) expense | (81 | ) | 164 | 52 | 32 | ||||||||||
Net income (loss) | $ | 210 | $ | 2,704 | $ | (4,792 | ) | $ | 1,397 | ||||||
Net income (loss) available to common stockholders per common share, basic and diluted | $ | 0.01 | $ | 0.13 | $ | (0.23 | ) | $ | 0.07 | ||||||
Weighted average common shares outstanding—basic | 21,314,911 | 20,728,699 | 21,289,073 | 20,565,492 | |||||||||||
Weighted average common shares outstanding—diluted | 22,357,699 | 20,917,562 | 21,289,073 | 20,740,303 | |||||||||||
FARMER BROS. CO. CONSOLIDATED BALANCE SHEETS (UNAUDITED) (In thousands, except share and per share data) | |||||||||||||
December 31, 2024 | June 30, 2024 | ||||||||||||
ASSETS | |||||||||||||
Current assets: | |||||||||||||
Cash and cash equivalents | $ | 5,488 | $ | 5,830 | |||||||||
Restricted cash | 246 | 175 | |||||||||||
Accounts receivable, net of allowance for credit losses of | 35,608 | 35,147 | |||||||||||
Inventories | 52,771 | 57,230 | |||||||||||
Short-term derivative assets | 550 | 11 | |||||||||||
Prepaid expenses | 4,829 | 4,236 | |||||||||||
Assets held for sale | 352 | 352 | |||||||||||
Total current assets | 99,844 | 102,981 | |||||||||||
Property, plant and equipment, net | 30,984 | 34,002 | |||||||||||
Intangible assets, net | 10,133 | 11,233 | |||||||||||
Right-of-use operating lease assets | 36,858 | 35,241 | |||||||||||
Other assets | 1,300 | 1,756 | |||||||||||
Total assets | $ | 179,119 | $ | 185,213 | |||||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||||||||
Current liabilities: | |||||||||||||
Accounts payable | 44,629 | 48,478 | |||||||||||
Accrued payroll expenses | 10,900 | 10,782 | |||||||||||
Right-of-use operating lease liabilities - current | 16,090 | 14,046 | |||||||||||
Short-term derivative liability | 2,624 | 730 | |||||||||||
Other current liabilities | 3,649 | 2,997 | |||||||||||
Total current liabilities | 77,892 | 77,033 | |||||||||||
Long-term borrowings under revolving credit facility | 23,300 | 23,300 | |||||||||||
Accrued pension liabilities | 11,553 | 12,287 | |||||||||||
Accrued postretirement benefits | 811 | 789 | |||||||||||
Accrued workers’ compensation liabilities | 2,557 | 2,378 | |||||||||||
Right-of-use operating lease liabilities - noncurrent | 21,290 | 21,766 | |||||||||||
Other long-term liabilities | 226 | 2,111 | |||||||||||
Total liabilities | $ | 137,629 | $ | 139,664 | |||||||||
Commitments and contingencies | |||||||||||||
Stockholders’ equity: | |||||||||||||
Common stock, | 21,351 | 21,265 | |||||||||||
Additional paid-in capital | 80,913 | 79,963 | |||||||||||
Accumulated deficit | (35,146 | ) | (30,354 | ) | |||||||||
Accumulated other comprehensive loss | (25,628 | ) | (25,325 | ) | |||||||||
Total stockholders’ equity | $ | 41,490 | $ | 45,549 | |||||||||
Total liabilities and stockholders’ equity | $ | 179,119 | $ | 185,213 | |||||||||
FARMER BROS. CO. | |||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) | |||||||
(In thousands) | |||||||
Six Months Ended December 31, | |||||||
2024 | 2023 | ||||||
Cash flows from operating activities: | |||||||
Net (loss) income | $ | (4,792 | ) | $ | 1,397 | ||
Adjustments to reconcile net (loss) income to net cash (used in) provided by operating activities | |||||||
Depreciation and amortization | 5,817 | 5,792 | |||||
Net losses (gains) on disposal of assets | 3,193 | (14,136 | ) | ||||
Net losses on derivative instruments | 3,183 | 429 | |||||
401(k) and share-based compensation expense | 1,037 | 2,970 | |||||
Provision for credit losses | 322 | 450 | |||||
Change in operating assets and liabilities: | |||||||
Accounts receivable, net | (782 | ) | 13,044 | ||||
Inventories | 4,458 | (6,193 | ) | ||||
Derivative (liabilities) assets, net | (3,635 | ) | (779 | ) | |||
Other assets | (115 | ) | 1,146 | ||||
Accounts payable | (3,795 | ) | (15,936 | ) | |||
Accrued expenses and other | 155 | 949 | |||||
Net cash provided by (used in) operating activities | $ | 5,046 | $ | (10,867 | ) | ||
Cash flows from investing activities: | |||||||
Purchases of property, plant and equipment | (5,362 | ) | (6,853 | ) | |||
Proceeds from sales of property, plant and equipment | 165 | 20,497 | |||||
Net cash (used in) provided by investing activities | $ | (5,197 | ) | $ | 12,430 | ||
Cash flows from financing activities: | |||||||
Proceeds from Credit Facilities | 7,000 | 2,279 | |||||
Repayments on Credit Facilities | (7,000 | ) | (2,000 | ) | |||
Payments of finance lease obligations | (96 | ) | (96 | ) | |||
Payment of financing costs | (24 | ) | (58 | ) | |||
Net cash (used in) provided by financing activities | $ | (120 | ) | $ | 125 | ||
Net (decrease) increase in cash and cash equivalents and restricted cash | (271 | ) | 1,688 | ||||
Cash and cash equivalents and restricted cash at beginning of period | 6,005 | 5,419 | |||||
Cash and cash equivalents and restricted cash at end of period | $ | 5,734 | $ | 7,107 | |||
Supplemental disclosure of non-cash investing and financing activities: | |||||||
Right-of-use assets obtained in exchange for new operating lease liabilities | $ | 8,890 | $ | 6,456 | |||
Non-cash issuance of ESOP and 401(K) common stock | — | 326 | |||||
Non cash additions to property, plant and equipment | 54 | 52 | |||||
Non-GAAP Financial Measures
In addition to net income (loss) determined in accordance with U.S. generally accepted accounting principles (“GAAP”), we use the following non-GAAP financial measures in assessing our operating performance:
“EBITDA” is defined as net income (loss) excluding the impact of:
- income tax expense (benefit);
- interest expense; and
- depreciation and amortization expense.
“EBITDA Margin” is defined as EBITDA expressed as a percentage of net sales.
“Adjusted EBITDA” is defined as net income (loss) excluding the impact of:
- income tax expense (benefit):
- interest expense;
- depreciation and amortization expense;
- 401(k) and share-based compensation expense;
- net losses (gains) on disposal of assets; and
- severance costs.
“Adjusted EBITDA Margin” is defined as Adjusted EBITDA expressed as a percentage of net sales.
For purposes of calculating EBITDA and EBITDA Margin, Adjusted EBITDA and Adjusted EBITDA Margin, we have excluded the impact of interest expense resulting from non-cash pretax pension and postretirement benefits. For purposes of calculating Adjusted EBITDA and Adjusted EBITDA Margin, beginning with the period ended June 30, 2024, and any period thereafter, we are also excluding the impact of the loss related to sale of business, as this item is not reflective of our ongoing operating results.
We believe these non-GAAP financial measures provide a useful measure of the Company’s operating results, a meaningful comparison with historical results and with the results of other companies, and insight into the Company’s ongoing operating performance. Further, management utilizes these measures, in addition to GAAP measures, when evaluating and comparing the Company’s operating performance against internal financial forecasts and budgets.
We believe that EBITDA facilitates operating performance comparisons from period to period by isolating the effects of certain items that vary from period to period without any correlation to core operating performance or that vary widely among similar companies. These potential differences may be caused by variations in capital structures (affecting interest expense), tax positions (such as the impact on periods or companies of changes in effective tax rates or net operating losses) and the age and book depreciation of facilities and equipment (affecting relative depreciation expense). We also present EBITDA and EBITDA Margin because (i) we believe that these measures are frequently used by securities analysts, investors and other interested parties to evaluate companies in our industry, (ii) we believe that investors will find these measures useful in assessing our ability to service or incur indebtedness, and (iii) we use these measures internally as benchmarks to compare our performance to that of our competitors.
EBITDA, EBITDA Margin, Adjusted EBITDA and Adjusted EBITDA Margin, as defined by us, may not be comparable to similarly titled measures reported by other companies. We do not intend for non-GAAP financial measures to be considered in isolation or as a substitute for other measures prepared in accordance with GAAP.
Set forth below is a reconciliation of reported net income (loss) to EBITDA (unaudited):
Three Months Ended December 31, | Six Months Ended December 31, | |||||||||||||||
(In thousands) | 2024 | 2023 | 2024 | 2023 | ||||||||||||
Net income (loss) | $ | 210 | $ | 2,704 | $ | (4,792 | ) | $ | 1,397 | |||||||
Income tax (benefit) expense | (81 | ) | 164 | 52 | 32 | |||||||||||
Interest expense (1) | 694 | 692 | 1,258 | 1,699 | ||||||||||||
Depreciation and amortization expense | 2,920 | 2,844 | 5,817 | 5,792 | ||||||||||||
EBITDA | $ | 3,743 | $ | 6,404 | $ | 2,335 | $ | 8,920 | ||||||||
EBITDA Margin | 4.2 | % | 7.2 | % | 1.3 | % | 5.2 | % | ||||||||
__________ | ||||||||||||||||
(1) Excludes interest expense related to pension plans and postretirement benefit plans. | ||||||||||||||||
Set forth below is a reconciliation of reported net income (loss) to Adjusted EBITDA (unaudited):
Three Months Ended December 31, | Six Months Ended December 31, | |||||||||||||||
(In thousands) | 2024 | 2023 | 2024 | 2023 | ||||||||||||
Net income (loss) | $ | 210 | $ | 2,704 | $ | (4,792 | ) | $ | 1,397 | |||||||
Income tax (benefit) expense | (81 | ) | 164 | 52 | 32 | |||||||||||
Interest expense (1) | 694 | 692 | 1,258 | 1,699 | ||||||||||||
Depreciation and amortization expense | 2,920 | 2,844 | 5,817 | 5,792 | ||||||||||||
401(k) and share-based compensation expense | 541 | 1,350 | 1,037 | 2,902 | ||||||||||||
Net losses (gains) on disposal of assets | 1,527 | (7,352 | ) | 3,193 | (14,136 | ) | ||||||||||
Loss related to sale of business (2) | --- | 1,214 | ---- | 1,214 | ||||||||||||
Severance costs | 88 | 695 | 752 | 2,960 | ||||||||||||
Adjusted EBITDA | $ | 5,899 | $ | 2,311 | $ | 7,317 | $ | 1,860 | ||||||||
Adjusted EBITDA Margin | 6.6 | % | 2.6 | % | 4.2 | % | 1.1 | % | ||||||||
__________ | ||||||||||||||||
(1) Excludes interest expense related to pension plans and postretirement benefit plans. | ||||||||||||||||
(2) Result of the settlements related to the divestiture of direct ship business which included gains related to coffee hedges and settlement of liabilities. | ||||||||||||||||
