On Feb. 9, Farmer Brothers (NASDAQ:FARM) released second-quarter earnings for the period ended Dec. 31.
- Sales increased by 1%, as a decline in coffee sales was offset by an increase in the sale of allied products.
- Operating margin declined 370 basis points as a result of the increased costs of coffee brewing equipment associated with the new sales program.
- The company declared a dividend of $0.11 per share for the second quarter, a 5% increase over last year.
- Farmer Brothers has $183 million in cash and short-term investments on the books, which represents more than half of the company's market cap.
- Motley Fool CAPS players are split on whether FARM will outperform the S&P 500.
(Figures in thousands, except per-share data)
Income Statement Highlights
|
Q2 2007 |
Q2 2006 |
Change | |
|---|---|---|---|
|
Sales |
$55,476 |
$54,950 |
1.0% |
|
Net Profit |
$2,953 |
$4,164 |
(29.1%) |
|
EPS |
$0.21 |
$0.30 |
(30.0%) |
|
Diluted Shares |
14,075 |
13,875 |
1.4% |
Get back to basics with a look at the income statement.
Margin Checkup
|
Q2 2007 |
Q2 2006 |
Change* | |
|---|---|---|---|
|
Gross Margin |
58.6% |
60.3% |
(1.8) |
|
Operating Margin |
2.1% |
5.7% |
(3.7) |
|
Net Margin |
5.3% |
7.6% |
(2.3) |
Margins are the earnings engine. See how they work.
Balance Sheet Highlights
|
Assets |
Q2 2007 |
Q2 2006 |
Change |
|---|---|---|---|
|
Cash + ST Invest. |
$183,598 |
$170,676 |
7.6% |
|
Accounts Rec. |
$14,958 |
$15,879 |
(5.8%) |
|
Inventory |
$46,434 |
$49,261 |
(5.7%) |
|
Liabilities |
Q2 2007 |
Q2 2006 |
Change |
|---|---|---|---|
|
Accounts Payable |
$5,185 |
$4,301 |
20.6% |
|
Long-Term Debt |
$0 |
$0 |
0% |
Learn the ways of the balance sheet.
Cash Flow Highlights
|
YTD 2007 |
YTD 2006 |
Change | |
|---|---|---|---|
|
Cash From Ops. |
$9,307 |
$20,640 |
(54.9%) |
|
Capital Expenditures |
$6,097 |
$8,674 |
(29.7%) |
|
Free Cash Flow |
$3,210 |
$11,966 |
(73.2%) |
Find out why Fools always follow the money.
Related Companies:
- Peet's Coffee & Tea (NASDAQ:PEET)
- Green Mountain Coffee Roasters (NASDAQ:GMCR)
- Starbucks Corporation (NASDAQ:SBUX)
- Imperial Sugar (NASDAQ:IPSU)
- MGP Ingredients (NASDAQ:MGPI)
Related Foolishness:
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