TORRANCE, Calif.--(BUSINESS WIRE)--May 13, 2004--Farmer Brothers Co. (Nasdaq:FARM) today reported earnings for the Company's third quarter ended March 31, 2004 of $5.6 million or $0.42 per share. This compares with earnings of $6.3 million for the same period last year, or $0.35 per share on a split-adjusted basis. The trend in revenues was essentially flat at $49.0 million in the third quarter of 2004 compared with $49.2 million last year.

For the first nine months of the fiscal year 2004, the Company reported earnings of $10.7 million or $0.66 per share. This compares with earnings of $17.8 million for the same period last year, or $0.98 per share on a split-adjusted basis. Nine-month revenues were $146.2 million versus $153.8 million for the same period in fiscal 2003.

The Company said the sales trend continues to reflect general economic conditions. The third-quarter results also reflect costs related to legal and other services associated with litigation and proxy matters; higher employee related costs including pensions and the Employee Stock Ownership Plan (ESOP); and the costs of implementing a new information system.

On May 10, 2004 the Company completed the previously announced 10-for-one stock split. The Company has begun to retroactively reflect this stock split in this quarter's report of prior-year comparisons of net income per share and weighted average shares.

Farmer Bros. Co. is an institutional coffee roaster that sells a variety of coffee and allied products to the food service industry. The Company's signature trucks and vans bearing the "Consistently Good" logo are seen throughout Farmer Brothers' 28-state service area. Farmer Brothers has paid a dividend for 51 consecutive years, increased the dividend in each of the last seven consecutive years, and its stock price has grown on a split-adjusted basis from $1.80 a share in 1980.

Farmer Bros. Co. reports the following financial figures:


THREE MONTHS ENDED                    March 31,2004     March 31,2003

Sales:                                  $49,069,000     $  49,267,000
Net income                              $ 5,603,000     $   6,339,000

Net income per share:                   $      0.42     $        0.35
Weighted Average
  Shares Outstanding:                    13,457,300        18,009,140



NINE  MONTHS ENDED                    March 31,2004     March 31,2003

Sales                                  $146,245,000     $ 153,774,000
Cost of Goods Sold                       53,459,000        55,050,000
Gross Profit                             92,786,000        98,724,000
Selling Expense                          68,019,000        66,256,000
Administrative Expenses                  19,843,000        11,810,000
Income from Operations                    4,924,000        20,658,000
Other Income                             10,832,000         8,360,000
Income Before Taxes                      15,756,000        29,018,000
Income Taxes                              5,077,000        11,172,000

Net Income                             $ 10,679,000    $   17,846,000

Net income per share                   $       0.66    $         0.98
Weighted Average
  Shares Outstanding                     16,266,410        18,248,020

The accompanying condensed financial statements of the Company are subject to year-end audit by independent auditors.
 

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Contact:

     The Abernathy MacGregor Group
     James Lucas, 213-630-6550