Farmer Bros. Co. (NASDAQ:FARM) Q3 2023 Earnings Conference Call May 10, 2023 8:30 AM ET

Company Participants

Deverl Maserang - President and Chief Executive Officer

Scott Drake - Chief Financial Officer

Conference Call Participants

Gerry Sweeney - ROTH MKM

Operator

Good day, and welcome to the Farmer Brothers Fiscal Third Quarter 2023 Earnings 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 call is being recorded.

Joining me today are Deverl Maserang, President and Chief Executive Officer; and Scott Drake, Chief Financial Officer.

Earlier today, the company issued its quarterly shareholder letter, which is available on the Investor Relations section of Farmer Brothers website at www.farmerbros.com. The shareholder letter is also included as an exhibit to the company's Form 8-K and is available on the company's website and on the Securities and Exchange Commission's website at www.sec.gov.

A replay of its 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 regulation. 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 shareholder letter and public filings.

On today's call, management will also reference certain non-GAAP financial measures, including adjusted EBITDA and adjusted EBITDA margin, in assessing the company's operating performance. Reconciliation of these non-GAAP financial measures to their most directly comparable GAAP measures is also included in the company's shareholder letter.

Now, I'll turn the call over to Deverl. Deverl, please go ahead.

Deverl Maserang

Good afternoon, and thank you for joining us.

I'd like to take this opportunity to discuss some highlights from our third quarter, before Scott discusses financials, and we will take questions.

While we did make some slight progress this quarter, our results are not what we or our investors should expect. Progress in restoring sales growth and rebuilding gross margins back toward our targeted 30% level has been challenging. This has been due in part to issues outside of our control in terms of coffee pricing volatility and inflationary impacts on costs in a tough macro environment.