Farmer Brothers Co. (NASDAQ:FARM) Q2 2019 Earnings Conference Call Transcript

Feb 11, 2019 • 05:00 pm ET

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Farmer Brothers Co. (NASDAQ:FARM) Q2 2019 Earnings Conference Call Transcript

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Presentation
Operator
Operator

Good afternoon, ladies and gentlemen, and welcome to the Farmer Brothers Second Quarter 2019 Conference Call. At this time, all participants are in a listen-only mode. Later we will conduct a question-and-answer session and instructions will follow at that time. (Operator Instructions) As a reminder, this conference call is being recorded. I would now like to turn the call over to your host, Rachel Gomez (ph). Please go ahead.

Executive
Unidentified Speaker

Thank you. Good afternoon everyone. Thank you for joining Farmer Brothers second quarter 2019 earnings conference call. Participating on today's call are Mike Keown, President and CEO; and David Robson, Treasurer and CFO. Earlier today, the Company issued a press release which is available on the Investor Relations section of Farmer Brothers website at www.farmerbros.com. The press release is also included as an exhibit to the Company's Form 8-K available on the Company's website and on the Securities and Exchange Commission's website at www.sec.gov. A replay of this audio-only webcast will be available approximately two 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 that all of the financial information presented is unaudited and that 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. These forward-looking statements represent the Company's views only as of today and should not be relied upon as representing the Company's views as of any subsequent date. Results could differ materially from those forward-looking statements. Additional information on factors that could cause actual results and other events to differ materially from those forward-looking statements is available in the Company's press release and public filings.

On today's call, management will also use certain non-GAAP financial measures, including adjusted EBITDA and adjusted EBITDA margin in assessing the Company's operating performance. A reconciliation of these non-GAAP financial measures to their most directly comparable GAAP measures is also included in the Company's press release.

I will now turn the call over to Mike. Mike, please go ahead.

Executive
Michael H. Keown

Thank you, Rachel. Welcome everyone and thanks for joining us this afternoon. As we pass the halfway mark in fiscal 2019, we are continuing to make important progress in executing our strategy and implementing initiatives to strengthen our platform for long-term growth. We passed the one-year anniversary of the closing of the Boyd's acquisition in October and we have completed integrating this business into Farmer Brothers. Our results in the second quarter reflect the realization of these synergies just as we had anticipated and we expect those to continue to increase in the back half of the year as these synergies are fully realized.

We are adding new customers to our pipeline in both direct ship and DSD, and we are continuing to make progress in further enhancing our DSD organization through our route and branch optimization. Year-over-year volume and sales