Farmer Bros. Quarterly Loss Widens

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Farmer Bros. Co. said Tuesday that its fourth quarter net loss widened significantly.

The Torrance coffee roaster and coffee delivery service reported a net loss of $25.6 million ($2 per share) for the quarter ended June 30, compared with a loss of $4.03 million (28 cents) a year ago.

Net sales rose 69 percent to $113 million. The company said 81 percent of the growth came from the Sara Lee institutional coffee delivery business it acquired in March for $48.3 million.

The loss from operations in the quarter was $9.5 million, compared with $7.9 million a year ago. The company did not detail which charges were taken in the quarter, but said the largest one-time charges for the full fiscal year included a reserve against its deferred tax account of $19.7 million, and $23.8 million in other non-cash charges, including depreciation and stock-based compensation expenses.

The company also had costs related to acquisitions and modernization, including $2.2 million to complete implementation of a new mobile sales software system and $2.1 million to relocate its specialty coffee unit, Coffee Bean Intl., to a new manufacturing facility in Portland, Ore.

“Although our financial results continued to show disappointing losses, fiscal 2009 was a pivotal year for the operations of Farmer Bros., and we are now positioned to reap the benefits of the significant investments we have made in our operations,” Chief Executive Rocky Laverty said in a statement.

Farmer Bros. shares were down 47 cents, or 2 percent, to $20.66 in midday trading on the Nasdaq.

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