-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, QvzuM/TUPAPrlzMV827ljw3hDZU32hU93BJCQ5YHMHRXW/8chTqxf6YVSdJ7pMZC 0v0q5yQ+sbX+472q2hny1w== 0000034563-95-000016.txt : 19951119 0000034563-95-000016.hdr.sgml : 19951119 ACCESSION NUMBER: 0000034563-95-000016 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19950930 FILED AS OF DATE: 19951114 SROS: NASD FILER: COMPANY DATA: COMPANY CONFORMED NAME: FARMER BROTHERS CO CENTRAL INDEX KEY: 0000034563 STANDARD INDUSTRIAL CLASSIFICATION: MISCELLANEOUS FOOD PREPARATIONS & KINDRED PRODUCTS [2090] IRS NUMBER: 950725980 STATE OF INCORPORATION: CA FISCAL YEAR END: 0630 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 000-01375 FILM NUMBER: 95592048 BUSINESS ADDRESS: STREET 1: 20333 S NORMANDIE AVE CITY: TORRANCE STATE: CA ZIP: 90502 BUSINESS PHONE: 3107875200 MAIL ADDRESS: STREET 1: 20333 SOUTH NORMANDIE AVENUE CITY: TORRANCE STATE: CA ZIP: 90502 10-Q 1 SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For Quarter Ended September 30, 1995 Commission file number 0-1375 FARMER BROS. CO. California 95-0725980 State of Incorporation Federal ID Number 20333 S. Normandie Avenue, Torrance, California 90502 Registrant's Address Zip (310) 787-5200 Registrant's telephone number Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. YES [X] NO [ ] Number of shares of Common Stock outstanding: 1,926,414 as of September 30, 1995. PAGE 1 OF 9 PART I. FINANCIAL INFORMATION Item 1. Financial Statements (Dollars in thousands, except per share data) FARMER BROS. CO. CONSOLIDATED STATEMENTS OF INCOME (Unaudited) For the three months ended September 30, 1995 1994 Net sales $55,038 $54,182 Cost of goods sold 27,511 28,274 27,527 25,908 Selling expense 19,220 18,422 General and administrative expenses 1,894 2,972 21,114 21,394 Income from operations 6,413 4,514 Other income (expense): Dividend income 625 553 Interest income 1,208 958 Other 154 247 1,987 1,758 Income before taxes and cumulative effect of accounting change 8,400 6,272 Provision for income taxes 3,609 2,515 Income before cumulative effect of accounting change 4,791 3,757 Cumulative effect of accounting change, net of income taxes - - Net income $ 4,791 $ 3,757 Income per share: Before accounting change $2.49 $1.95 Cumulative effect of accounting change - - Net income per share $2.49 $1.95 The accompanying notes are an integral part of these financial statements. 2 FARMER BROS. CO. CONSOLIDATED BALANCE SHEETS (Unaudited) September 30, June 30, 1995 1995 ASSETS Current assets: Cash and cash equivalents $ 14,871 $ 8,321 Short term investments 77,259 80,530 Accounts and notes receivable, net 18,707 18,481 Inventories 35,027 36,761 Income tax receivable - 1,266 Deferred income taxes 3,577 3,577 Prepaid expenses 1,156 871 Total current assets 150,597 149,807 Property, plant and equipment, net 34,734 33,213 Notes receivable 1,880 1,880 Long term investments, net 44,249 43,337 Other assets 16,082 15,887 Deferred income taxes (20) 217 Total assets $247,522 $244,341 LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities: Accounts payable $ 5,677 $ 9,408 Accrued payroll expenses 4,971 4,711 Other 6,683 4,605 Total current liabilities 17,331 18,724 Accrued postretirement benefits 11,946 11,505 Commitments and contingencies Shareholders' equity: Common stock, $1.00 par value, authorized 3,000,000 shares; issued and outstanding 1,926,414 shares 1,926 1,926 Additional paid-in capital 569 569 Retained earnings 215,446 211,619 Investment valuation allowance 304 (2) Total shareholders' equity 218,245 214,112 Total liabilities and shareholders' equity $247,522 $244,341 The accompanying notes are an integral part of these financial statements. 3 FARMER BROS. CO. CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) For the three months ended September 30, 1995 1994 Cash flows from operating activities: Net Income $ 4,791 $ 3,757 Adjustments to reconcile net income to net cash provided by operating activities: Cumulative effect of accounting changes Depreciation 1,253 1,323 Deferred income taxes 33 - Other (32) 10 Net (gain) loss on investments (46) (113) Change in assets and liabilities: Short term investments - - Accounts and notes receivable (275) (2,277) Inventories 1,734 (807) Income tax receivable 1,266 5,357 Prepaid expenses and other assets (486) (1,029) Accounts payable (3,730) 2,848 Accrued payroll expenses and other liabilities 2,338 21 Other long term liabilities 441 390 Total adjustments 2,496 5,723 Net cash provided by operating activities $7,287 $9,480 The accompanying notes are an integral part of these financial statements. 4 FARMER BROS. CO CONSOLIDATED STATEMENTS OF CASH FLOWS (CONTINUED) (Unaudited) For the three months ended September 30, 1995 1994 Net cash provided by operating activities: $ 7,287 $ 9,480 Cash flows from investing activities: Purchases of property, plant and equipment (2,809) (2,380) Proceeds from sales of property, plant and equipment 72 20 Purchases of investments (26,777) (34,539) Proceeds from sales of investments 29,693 26,884 Notes issued - - Notes repaid 50,000 61,000 Net cash (used in) provided by investing activities 229 (9,954) Cash flows from financing activities: Dividends paid (963) (963) Net cash used in financing activities (963) (963) Net (decrease) in cash and cash equivalents 6,553 (1,437) Cash and cash equivalents at beginning of year 8,321 8,681 Cash and cash equivalents at end of quarter $14,874 $ 7,244 Supplemental disclosure of cash flow information: Income tax payments $ 215 $ 2 The accompanying notes are an integral part of these financial statements. 5 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) A. Unaudited Financial Statements The accompanying unaudited financial statements have been prepared in accordance with the instructions to Form 10-Q and do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. It is management's opinion that all adjustments of a normal recurring nature necessary for a fair statement of the results of operations for the interim periods have been made. B. Investments September 30, June 30, 1995 1995 Fair Fair Cost Value Cost Value (In thousands) Current Assets U.S. Government Obligations $77,280 $77,259 $80,608 $80,530 $77,280 $77,259 $80,608 $80,530 Non-Current Assets U.S. Government Obligations $ 8,608 $ 8,546 $ 8,617 $ 8,610 Corporate bonds 1,499 1,499 1,599 1,569 Preferred stocks 31,161 33,161 30,456 31,896 Liquid asset fund and other 1,082 1,043 1,262 1,262 $42,350 $44,249 $41,934 $43,337 The Company hedges interest rate risk in its portfolio of preferred stock. Deferred losses associated with the hedge are $1,410,000 and $1,329,000 at September 30 and June 30, 1995, respectively. The contractual maturities of debt securities classified as current and non- current available for sale are as follows: Fair Value 09/30/95 06/30/95 (In thousands) Within 1 year $77,259 $80,530 After 1 year through 5 years 8,546 8,610 After 5 years through 10 years 1,499 1,569 After 10 years - - $87,304 $90,709 6 C. Inventories Processed Unprocessed Total (In thousands) September 30, 1995 Coffee $ 3,416 $10,288 $13,704 Allied products 9,604 4,390 13,994 Coffee brewing equipment 1,462 5,867 7,329 $14,482 $20,545 $35,027 June 30, 1995 Coffee $ 3,093 $10,809 $13,902 Allied products 11,308 4,096 15,404 Coffee brewing equipment 2,120 5,335 7,455 $16,521 $20,240 $36,761 Item 2. Management's Discussion and Analysis of Financial Condition and Continued high green coffee prices continue to effect Registrant's operations. Although green coffee costs have retreated from the highs experienced in fiscal 1995, the higher average product costs and resulting higher sales prices (and lower sales volume) are directly reflected in financial results. Improved profit margins and controlled operating expenses have had a direct effect on profits. First quarter 1996 sales increased 1.6% to $55,038,000 as compared to $54,182,000 in the same quarter of fiscal 1995. Gross profit in the first quarter increased 6.2% to $27,527,000 from $25,908,000 in the same quarter of fiscal 1995. First quarter 1996 operating expenses decreased (1.3%) to $21,114,000 from $21,394,000 in the first quarter of fiscal 1995. Net income for the three months ended September 30, 1995 increased 27.5% to $4,791,000 or $2.49 per share, as compared to $3,757,000 or $1.95 per share in the same quarter of the prior fiscal year. Quarterly Summary of Results (in thousands of dollars) 09/30/94 12/31/94 03/31/95 06/30/95 09/30/95 Net sales 54,182 62,598 59,514 58,368 55,038 Gross profit 25,908 30,085 26,818 30,088 27,527 Operating income 4,514 8,023 4,448 8,250 6,413 Net income 3,757 5,706 3,220 6,834 4,791 (as a percentage of sales) 09/30/94 12/31/94 03/31/95 06/30/95 09/30/95 Net sales 100.00 100.00 100.00 100.00 100.00 Gross profit 47.82 48.06 45.06 51.55 50.01 Operating income 8.33 12.82 7.47 14.13 11.65 Net income 6.93 9.12 5.41 11.71 8.70 (in dollars) 09/30/94 12/31/94 03/31/95 06/30/95 09/30/95 EPS 1.95 2.96 1.67 3.55 2.49 7 Part II Other Information Item 1. Legal proceedings. not applicable. Item 2. Changes in securities. none. Item 3. Defaults upon senior securities. none. Item 4. Submission of matters to a vote of security holders. none. Item 5. Other information. none. Item 6. Exhibits and reports on Form 8-K. (a) Exhibits. (2) Plan of acquisition, reorganization, arrangement, liquidation or succession. not applicable. (4) Instruments defining the rights of security holders, including indentures. not applicable. (11) Statement re computation of per share earnings. not applicable. (15) Letter re unaudited interim financial information. not applicable. (18) Letter re change in accounting principles. not applicable. (19) Report furnished to security holders not applicable. (22) Published report regarding matters submitted to vote of security holders. not applicable. (23) Consents of experts and counsel. not applicable. (24) Power of attorney. not applicable. (27) Financial Data Schedule. See attached Form EX-27. (99) Additional exhibits. not applicable. (b) Reports on Form 8-K none. 8 SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. Date: November 13, 1995 FARMER BROS. CO. (Registrant) John E. Simmons John E. Simmons Treasurer and Chief Financial Officer EX-27 2
5 1000 3-MOS JUN-30-1996 SEP-30-1995 14871 77259 18707 525 35027 150597 34734 50482 247522 17331 0 1926 0 0 0 247522 55038 55038 27511 21114 0 0 0 8400 3609 4791 0 0 0 4791 2.49 2.49
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