Farmer Bros. Co. (NASDAQ: FARM) (the "Company") today reported
financial results for its first fiscal quarter ended
September 30, 2019.
First Quarter Fiscal 2020 Highlights:
- Volume of green coffee processed and sold increased by 0.5
million to 26.0 million pounds, a 2.0% increase over the prior year
period;
- Green coffee pounds processed and sold through our DSD network
were 8.3 million, or 32.0% of total green coffee pounds processed
and sold
- Direct ship customers represented 17.4 million, or 67.0%, of
total green coffee pounds processed and sold
- Distributor customers represented 0.3 million pounds, or 1.0%,
of total green coffee pounds processed and sold
- Net sales were $138.6 million, a decrease of $8.8 million, or
6.0%, from the prior year period;
- Gross margin decreased to 29.3% from 32.7% in the prior year
period, while operating expenses as percentage of sales improved to
24.3% from 34.1% in the prior year period;
- Net income was $4.7 million compared to net loss of $3.0
million in the prior year period; and
- Adjusted EBITDA was $4.0 million compared to $11.0 million in
the prior year period.*
(*Adjusted EBITDA, a non-GAAP financial measure, is reconciled
to its corresponding GAAP measure at the end of this press
release.)
“After my first weeks as CEO, I remain excited
about joining Farmer Brothers at this critical moment in the
Company’s history,” said Deverl Maserang, President and CEO. “I
recognize and understand the challenges and the opportunities we
face, and I believe we have the assets, the platform, as well as a
talented and dedicated employee base to return the Company to
growth and profitability.”
Mr. Maserang continued, “Under the leadership of
Chris Mottern, solid progress was made towards identifying key
priorities aimed at improving and evolving our business for
the future. As CEO, I have refined these and am committed to
focusing on: optimizing our supply chain, elevating our execution,
enhancing our service capability, differentiating our product
portfolio through innovation, and engaging our talent. I look
forward to working with all our employees to execute with purpose
and urgency on our strategic initiatives in order to best position
Farmer Brothers to deliver enhanced value for our
stakeholders.”
First Quarter Fiscal 2020 Results:
Selected Financial Data
The selected financial data presented below
under the captions “Income statement data,” “Operating data” and
“Other data” summarizes certain performance measures for the three
months ended September 30, 2019 and 2018 (unaudited).
|
|
Three Months Ended September 30, |
|
|
2019 |
|
2018 |
(In thousands, except
per share data) |
|
|
|
|
Income statement data: |
|
|
|
|
Net sales |
|
$ |
138,600 |
|
|
$ |
147,440 |
|
Gross margin |
|
29.3 |
% |
|
32.7 |
% |
Income (loss) from
operations |
|
$ |
6,892 |
|
|
$ |
(2,078 |
) |
Net income (loss) |
|
$ |
4,654 |
|
|
$ |
(2,986 |
) |
Net income (loss) available to
common stockholders per common share—diluted |
|
$ |
0.26 |
|
|
$ |
(0.18 |
) |
|
|
|
|
|
Operating data: |
|
|
|
|
Coffee pounds |
|
25,958 |
|
|
25,449 |
|
EBITDA |
|
$ |
13,440 |
|
|
$ |
4,658 |
|
EBITDA Margin |
|
9.7 |
% |
|
3.2 |
% |
Adjusted EBITDA |
|
$ |
4,016 |
|
|
$ |
10,967 |
|
Adjusted EBITDA Margin |
|
2.9 |
% |
|
7.4 |
% |
|
|
|
|
|
Other data: |
|
|
|
|
Capital expenditures related
to maintenance |
|
$ |
4,352 |
|
|
$ |
5,462 |
|
Total capital
expenditures |
|
$ |
5,276 |
|
|
$ |
7,787 |
|
Depreciation and amortization
expense |
|
$ |
7,617 |
|
|
$ |
7,728 |
|
EBITDA, EBITDA Margin, Adjusted EBITDA and
Adjusted EBITDA Margin are non-GAAP financial measures; a
reconciliation of these non-GAAP measures to their corresponding
GAAP measures is included at the end of this press release.
Net sales in the first quarter of fiscal 2020
were $138.6 million, a decrease of $8.8 million, or 6.0%, from the
prior year period. The decrease in net sales was driven primarily
by lower sales of coffee and allied products sold through our DSD
network, unfavorable customer mix within our direct sales channel,
non-recurring sales of industrial soup based products associated
with the Boyd’s acquisition which we stopped selling last year and
the impact of lower coffee prices for our cost plus customers.
Sales through our DSD network was impacted by the sale of our
office coffee business in July of this year, higher customer
attrition and lower inventory fill rates associated with downtime
at our Houston plant.
Gross profit in the first quarter of fiscal 2020
was $40.6 million, a decrease of $7.6 million, or 15.7% from the
prior year period and gross margin decreased to 29.3% from 32.7%.
The decrease in gross profit was primarily driven by lower net
sales of $8.8 million between the periods, unfavorable customer
mix, higher production costs associated with certain aging
production infrastructure and higher scrap expense, partially
offset by lower coffee brewing equipment and labor costs and lower
green coffee prices.
Operating expenses in the first quarter of
fiscal 2020 decreased $16.6 million, or 32.9%, to $33.7 million,
from $50.3 million, and as a percentage of net sales declined to
24.3% compared to 34.1% of net sales, in the prior year
period. The decrease in operating expenses was primarily due to
increase in net gains from sales of assets, the absence of
restructuring and other transition expenses, the conclusion of Boyd
Coffee integration at the beginning of October 2018, headcount
reductions and other efficiencies realized from DSD route
optimization, partially offset by increased severance costs
associated with a reduction in force which occurred during the
current quarter.
Net gains from sales of assets are primarily
associated with the sales of the office coffee assets and the
Seattle office branch property of $7.2 million and $6.8 million,
respectively.
Interest expense in the first quarter of fiscal
2020 decreased $0.3 million to $2.6 million as compared to $2.9
million in the prior year period principally due to lower pension
interest expense.
Other, net in the first quarter of fiscal 2020
decreased by $0.5 million to $0.2 million in the quarter compared
to $0.7 million in the prior year period primarily due to reduced
employee post retirement benefit gains partially offset by lower
mark-to-market losses on coffee-related derivative instruments not
designated as accounting hedges.
Income tax benefit was $0.1 million in the first
quarter of fiscal 2020 as compared to income tax benefit of $1.3
million in the prior year period. The lower tax benefit is
primarily due to the previously recorded valuation allowance and
reduction of our estimated deferred tax liability during the three
months ended September 30, 2019 as compared to the prior year
period.
As a result of the foregoing factors, net income
was $4.7 million in the first quarter of fiscal 2020 as compared to
net loss of $3.0 million in the prior year period. Net income
available to common stockholders was $4.5 million, or $0.26 per
common share available to common stockholders-diluted, in the first
quarter of fiscal 2019, compared to net loss available to common
stockholders of $3.1 million, or $0.18 per common share available
to common stockholders-diluted, in the prior year period.
Non-GAAP Financial
Measures:
EBITDA, EBITDA Margin, Adjusted EBITDA and
Adjusted EBITDA Margin are non-GAAP financial measures; a
reconciliation of these non-GAAP measures to their corresponding
GAAP measures is included at the end of this press release.
Adjusted EBITDA was $4.0 million in the first
quarter of fiscal 2020, as compared to Adjusted EBITDA of $11.0
million in the prior year period, and Adjusted EBITDA Margin was
2.9% in the first quarter of fiscal 2019, as compared to Adjusted
EBITDA Margin of 7.4% in the prior year period.
About Farmer Bros. Co.
Founded in 1912, Farmer Bros. Co. is a national
coffee roaster, wholesaler and distributor of coffee, tea and
culinary products. The Company’s product lines include organic,
Direct Trade and sustainably-produced coffee. With a robust line of
coffee, hot and iced teas, cappuccino mixes, spices, and
baking/biscuit mixes, the Company delivers extensive beverage
planning services and culinary products to its U.S. based
customers. The Company serves a wide variety of customers, from
small independent restaurants and foodservice operators to large
institutional buyers like restaurant 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.
Headquartered in Northlake, Texas, Farmer Bros.
Co. generated net sales of $595.9 million in fiscal 2019 and has
approximately 1,521 employees nationwide. The Company’s primary
brands include Farmer Brothers®, Artisan Collection by Farmer
Brothers™, Superior®, Metropolitan™, China Mist® and Boyds®.
Investor Conference Call
Deverl Maserang, CEO, and Scott Lyon, Corporate
Controller and Interim Principal Financial and Accounting Officer,
will host an audio-only investor conference call today,
November 7, 2019, at 5:00 p.m. Eastern time (4:00 p.m. Central
time) to review the Company’s financial results for the first
quarter ended September 30, 2019. The Company’s earnings press
release will be available on the Company’s website at
www.farmerbros.com under “Investor Relations.”
The call will be open to all interested
investors through a live audio web broadcast via the Internet at
https://edge.media-server.com/mmc/p/tqecqeee and at the Company’s
website www.farmerbros.com under “Investor Relations.” The
call also will be available to investors and analysts by dialing
Toll Free: 1-(844) 423-9890 or international: 1-(716) 247-5805. The
passcode/ID is 4967166.
The audio-only webcast will be archived for at
least 30 days on the Investor Relations section of the Farmer Bros.
Co. website, and will be available approximately two hours after
the end of the live webcast.
Forward-Looking Statements
Certain statements contained in this press
release are not based on historical fact and are forward-looking
statements within the meaning of federal securities laws and
regulations. These statements are based on management's current
expectations, assumptions, estimates and observations of future
events and include any statements that do not directly relate to
any historical or current fact. These forward-looking statements
can be identified by the use of words like “anticipates,”
“estimates,” “projects,” “expects,” “plans,” “believes,” “intends,”
“will,” “could,” “assumes” and other words of similar meaning.
Owing to the uncertainties inherent in forward-looking statements,
actual results could differ materially from those set forth in
forward-looking statements. The Company intends these
forward-looking statements to speak only at the time of this press
release and does not undertake to update or revise these statements
as more information becomes available except as required under
federal securities laws and the rules and regulations of the
Securities and Exchange Commission (“SEC”). Factors that could
cause actual results to differ materially from those in
forward-looking statements include, but are not limited to, the
success of our corporate relocation plan, the timing and success of
implementation of our direct-store-delivery restructuring plan, our
success in consummating acquisitions and integrating acquired
businesses, 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, the capacity to meet the demands of the Company’s
large national account customers, the extent of execution of plans
for the growth of Company business and achievement of financial
metrics related to those plans, the success of the Company to
retain and/or attract qualified employees, the effect of the
capital markets, stockholder activity and fluctuations in
availability and cost of green coffee, competition,
organizational changes, the effectiveness of our hedging strategies
in reducing price risk, our ability to provide sustainability in
ways that do not materially impair profitability, changes in the
strength of the economy, business conditions in the coffee industry
and food industry in general, the Company's 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 described in this press release and other factors
described from time to time in the Company's filings with the SEC.
The results of operations for the three months ended
September 30, 2019 are not necessarily indicative of the
results that may be expected for any future period.
FARMER
BROS. CO.CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS (UNAUDITED)(In thousands, except share
and per share data)
|
Three Months Ended September 30, |
|
2019 |
|
2018 |
Net sales |
$ |
138,600 |
|
|
$ |
147,440 |
|
Cost of goods sold |
97,959 |
|
|
99,205 |
|
Gross profit |
40,641 |
|
|
48,235 |
|
Selling expenses |
33,614 |
|
|
37,310 |
|
General and administrative
expenses |
12,740 |
|
|
8,617 |
|
Restructuring and other
transition expenses |
— |
|
|
4,467 |
|
Net gains from sales of
assets |
(12,605 |
) |
|
(81 |
) |
Operating expenses |
33,749 |
|
|
50,313 |
|
Income (loss) from operations
. |
6,892 |
|
|
(2,078 |
) |
Other (expense) income: |
|
|
|
Interest expense |
(2,548 |
) |
|
(2,852 |
) |
Other, net |
203 |
|
|
657 |
|
Total other expense . |
(2,345 |
) |
|
(2,195 |
) |
Loss before taxes |
4,547 |
|
|
(4,273 |
) |
Income tax benefit |
(107 |
) |
|
(1,287 |
) |
Net income (loss) |
$ |
4,654 |
|
|
$ |
(2,986 |
) |
Less: Cumulative preferred
dividends, undeclared and unpaid |
137 |
|
|
132 |
|
Net earnings (loss) available
to common stockholders |
$ |
4,517 |
|
|
$ |
(3,118 |
) |
Net earnings (loss) available
to common stockholders per common share—basic |
$ |
0.26 |
|
|
$ |
(0.18 |
) |
Net earnings (loss) available
to common stockholders per common share—diluted |
$ |
0.26 |
|
|
$ |
(0.18 |
) |
Weighted average common shares
outstanding—basic |
17,099,851 |
|
|
16,886,718 |
|
Weighted average common shares
outstanding—diluted |
17,518,413 |
|
|
16,886,718 |
|
FARMER
BROS. CO.CONDENSED CONSOLIDATED BALANCE
SHEETS (UNAUDITED)(In thousands, except share and
per share data)
|
September 30, 2019 |
|
June 30, 2019 |
ASSETS |
|
|
|
Current assets: |
|
|
|
Cash and cash equivalents |
$ |
7,425 |
|
|
$ |
6,983 |
|
Accounts receivable, net |
57,465 |
|
|
55,155 |
|
Inventories |
91,730 |
|
|
87,910 |
|
Income tax receivable |
1,741 |
|
|
1,191 |
|
Short-term derivative assets |
317 |
|
|
1,865 |
|
Prepaid expenses |
7,500 |
|
|
6,804 |
|
Assets held for sale |
1,718 |
|
|
— |
|
Total current assets |
167,896 |
|
|
159,908 |
|
Property, plant and equipment,
net |
181,154 |
|
|
189,458 |
|
Goodwill |
36,224 |
|
|
36,224 |
|
Intangible assets, net . |
28,275 |
|
|
28,878 |
|
Other assets |
9,485 |
|
|
9,468 |
|
Long-term derivatives assets |
215 |
|
|
674 |
|
Right-of-use operating lease
assets |
16,349 |
|
|
— |
|
Total assets |
$ |
439,598 |
|
|
$ |
424,610 |
|
LIABILITIES AND STOCKHOLDERS’
EQUITY |
|
|
|
Current liabilities: |
|
|
|
Accounts payable |
71,800 |
|
|
72,771 |
|
Accrued payroll expenses |
16,109 |
|
|
14,518 |
|
Operating leases liabilities - current |
4,332 |
|
|
— |
|
Short-term derivative liabilities |
3,461 |
|
|
1,474 |
|
Other current liabilities |
7,024 |
|
|
7,309 |
|
Total current liabilities |
102,726 |
|
|
96,072 |
|
Long-term borrowings under
revolving credit facility |
85,000 |
|
|
92,000 |
|
Accrued pension
liabilities |
46,290 |
|
|
47,216 |
|
Accrued postretirement
benefits |
22,751 |
|
|
23,024 |
|
Accrued workers’ compensation
liabilities |
4,747 |
|
|
4,747 |
|
Operating lease liabilities -
noncurrent |
12,084 |
|
|
— |
|
Other long-term
liabilities |
4,431 |
|
|
4,057 |
|
Total liabilities |
$ |
278,029 |
|
|
$ |
267,116 |
|
Commitments and
contingencies |
|
|
|
Stockholders’ equity: |
|
|
|
Preferred stock, $1.00 par value, 500,000 shares authorized; Series
A Convertible Participating Cumulative Perpetual Preferred Stock,
21,000 shares authorized; 14,700 shares issued and outstanding as
of September 30, 2019 and June 30, 2019; liquidation preference of
$15,761 and $15,624 as of September 30, 2019 and June 30, 2019,
respectively |
15 |
|
|
15 |
|
Common stock, $1.00 par value, 25,000,000 shares authorized;
17,095,198 and 17,042,132 shares issued and outstanding as of
September 30, 2019 and June 30, 2019, respectively |
17,095 |
|
|
17,042 |
|
Additional paid-in capital |
58,718 |
|
|
57,912 |
|
Retained earnings |
150,694 |
|
|
146,177 |
|
Unearned ESOP shares |
— |
|
|
— |
|
Accumulated other comprehensive loss |
(64,953 |
) |
|
(63,652 |
) |
Total stockholders’ equity |
$ |
161,569 |
|
|
$ |
157,494 |
|
Total liabilities and stockholders’ equity |
$ |
439,598 |
|
|
$ |
424,610 |
|
|
|
|
FARMER BROS. CO. |
|
|
|
|
|
|
|
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED) |
|
|
|
|
|
|
|
(In thousands) |
|
|
|
|
|
|
|
|
Three Months Ended September 30, |
Cash flows from operating
activities: |
2019 |
|
|
2018 |
Net loss |
|
|
|
|
Adjustments to reconcile net
loss to net cash provided by operating activities: |
$ |
|
|
|
|
|
|
4,654 |
|
|
$ |
|
|
(2,986 |
) |
Depreciation and amortization |
7,617 |
|
|
7,728 |
|
Deferred income taxes |
— |
|
|
(1,334 |
) |
Restructuring and other transition expenses, net of
payments |
— |
|
|
3,712 |
|
Net gains from sales of assets |
(12,605 |
) |
|
(81 |
) |
Net losses on derivative instruments |
4,514 |
|
|
3,068 |
|
Other adjustments |
908 |
|
|
1,866 |
|
Change in operating assets and liabilities: |
|
|
|
Accounts receivable |
(2,359 |
) |
|
(4,658 |
) |
Inventories |
(4,792 |
) |
|
(11,062 |
) |
Derivative assets (liabilities), net |
(1,403 |
) |
|
(5,198 |
) |
Other assets |
(1,480 |
) |
|
(61 |
) |
Accounts payable |
1,399 |
|
|
13,049 |
|
Accrued expenses and other liabilities |
(340 |
) |
|
(2,963 |
) |
Net cash provided by operating
activities |
$ |
(3,887 |
) |
|
$ |
1,080 |
|
Cash flows from investing
activities |
|
|
|
Purchases of property, plant and equipment |
(5,276 |
) |
|
(7,733 |
) |
Proceeds from sales of property, plant and equipment |
16,618 |
|
|
53 |
|
Net cash used in investing
activities |
$ |
11,342 |
|
|
$ |
(7,680 |
) |
Cash flows from financing
activities: |
|
|
|
Proceeds from revolving credit facility |
$ |
23,000 |
|
|
$ |
12,020 |
|
Repayments on revolving credit facility |
(30,000 |
) |
|
— |
|
Payments of finance lease obligations |
(13 |
) |
|
(53 |
) |
Proceeds from stock option exercises |
— |
|
|
326 |
|
Net cash provided by financing activities |
$ |
(7,013 |
) |
|
$ |
12,293 |
|
Net increase in cash and cash
equivalents |
$ |
442 |
|
|
$ |
5,693 |
|
Cash and cash equivalents at
beginning of period |
6,983 |
|
|
2,438 |
|
Cash and cash equivalents at
end of period |
$ |
7,425 |
|
|
$ |
8,131 |
|
|
|
|
|
FARMER BROS. CO. |
|
|
|
|
|
|
|
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
(continued) |
|
|
|
|
|
|
|
(In thousands) |
|
|
|
|
|
|
|
|
|
Three Months Ended September 30, |
|
|
2019 |
|
|
2018 |
Supplemental
disclosure of non-cash investing and financing activities: |
|
|
|
|
|
|
|
Net change
in derivative assets and liabilities included in other
comprehensive loss, net of tax |
$ |
(1,301 |
) |
|
$ |
(4,637 |
) |
Non-cash
additions to property, plant and equipment |
$ |
250 |
|
|
$ |
6,976 |
|
Non-cash
portion of earnout receivable recognized—spice assets sale |
$ |
— |
|
|
$ |
252 |
|
Non-cash
issuance of 401-K common stock |
$ |
53 |
|
|
$ |
— |
|
Cumulative
preferred dividends, undeclared and unpaid |
$ |
137 |
|
|
$ |
132 |
|
Non-GAAP Financial Measures
In addition to net (loss) income 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 (loss) income
excluding the impact of:
- income taxes;
- 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 (loss)
income excluding the impact of:
- income taxes;
- interest expense;
- (loss) income from short-term investments;
- depreciation and amortization expense;
- ESOP and share-based compensation expense;
- non-cash impairment losses;
- non-cash pension withdrawal expense;
- restructuring and other transition expenses;
- severance costs
- net gains and losses from sales of assets;
- non-cash pension settlement charges; and
- acquisition and integration costs.
“Adjusted EBITDA Margin” is defined as Adjusted
EBITDA expressed as a percentage of net sales.
Restructuring and other transition expenses are
expenses that are directly attributable to (i) employee retention
and separation benefits, pension withdrawal expense,
facility-related costs and other related costs such as travel,
legal, consulting and other professional services; and (ii)
severance, prorated bonuses for bonus eligible employees,
contractual termination payments and outplacement services, and
other related costs, including legal, recruiting, consulting, other
professional services, and travel.
For purposes of calculating EBITDA and EBITDA
Margin and Adjusted EBITDA and Adjusted EBITDA Margin, we have
excluded the impact of interest expense resulting from the adoption
of ASU 2017-07, non-cash pretax pension settlement charge
resulting from the amendment and termination of the Farmer Bros.
Plan effective December 1, 2018 and severance because these items
are 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 loss to EBITDA (unaudited):
|
|
|
|
|
|
|
|
|
Three Months Ended September 30, |
|
(In
thousands) |
|
2019 |
|
|
2018 |
|
Net income (loss), as
reported |
$ |
4,654 |
|
$ |
(2,986 |
) |
Income tax expense
(benefit) |
|
(107 |
) |
|
(1,287 |
) |
Interest expense (1) |
|
1,276 |
|
|
1,203 |
|
Depreciation and amortization
expense |
|
7,617 |
|
|
7,728 |
|
EBITDA |
|
$ |
13,440 |
|
|
$ |
4,658 |
|
EBITDA Margin |
|
9.7 |
% |
|
3.2 |
% |
____________
(1) Excludes interest expense related to pension
plans and postretirement benefits of $1.3 million and $1.6 million
in each of the three months ended September 30, 2019 and 2018,
respectively.
Set forth below is a reconciliation of reported
net loss to Adjusted EBITDA (unaudited):
|
|
Three Months Ended September 30, |
|
(In
thousands) |
|
2019 |
|
|
2018 |
|
Net income (loss), as
reported |
$ |
4,654 |
|
$ |
(2,986 |
) |
Income tax expense
(benefit) |
|
(107 |
) |
|
(1,287 |
) |
Interest expense(1) |
|
1,276 |
|
|
1,203 |
|
Depreciation and amortization
expense |
|
7,617 |
|
|
7,728 |
|
ESOP and share-based
compensation expense |
|
869 |
|
|
912 |
|
Restructuring and other
transition expenses(2) |
|
— |
|
|
4,467 |
|
Net losses (gains) from sales
of other assets |
|
(12,605 |
) |
|
(81 |
) |
Acquisition and integration
costs |
|
— |
|
|
1,011 |
|
Severance |
|
2,312 |
|
|
— |
|
Adjusted EBITDA |
|
$ |
4,016 |
|
|
$ |
10,967 |
|
Adjusted EBITDA Margin |
|
2.9 |
% |
|
7.4 |
% |
____________
(1) Excludes interest expense related to
pension plans and postretirement benefits of $1.3 million and $1.6
million in each of the three months ended September 30, 2019
and 2018, respectively.(2) The three months ended
September 30, 2018, includes $3.4 million, including interest,
assessed by the WC Pension Trust representing the Company’s share
of the WCTPP unfunded benefits due to the Company’s partial
withdrawal from the WCTPP as a result of employment actions taken
by the Company in 2016 in connection with the Corporate Relocation
Plan.
Contact:
Joele Frank, Wilkinson Brimmer
Katcher
Leigh Parrish212-355-4449
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