Cal-Maine Foods Reports First Quarter Fiscal 2013 Results

Cal-Maine Foods, Inc. (NASDAQ: CALM) today announced results for the first quarter of fiscal 2013 ended September 1, 2012.

For the first quarter of fiscal 2013, net sales were $272.9 million, compared with net sales of $243.8 million for the first quarter of fiscal 2012. The Company reported net income of $9.4 million, or $0.39 per basic and diluted share, for the first quarter of fiscal 2013 compared with net income of $3.1 million, or $0.13 per basic and diluted share, for the year-earlier period.

Dolph Baker, chairman, president and chief executive officer of Cal-Maine Foods, Inc., stated, “We are pleased with our financial and operating performance for the first quarter of fiscal 2013. These results reflect a strong start to our fiscal year in what is typically our most challenging quarter. Revenues were up 12.0 percent over the same period last year, while volumes were at about the same level, reflecting higher average market prices for shell eggs. Our specialty egg sales have continued to trend higher and represented over 16.1 percent of dozens sold and 23.5 percent of total shell egg sales revenue for the quarter. We will continue to identify new market opportunities to expand our specialty egg business and meet growing customer demand.

“We have remained focused on running efficient operations in spite of higher feed costs than we experienced a year ago,” Baker noted. “The damage to the national corn and grain crops caused by the extreme summer drought conditions will likely keep our feed costs near record high levels in fiscal 2013.

“As previously announced on July 18, 2012, we acquired the egg production assets of Pilgrim’s Pride Corporation, adding two additional production complexes with capacity for approximately 1.4 million laying hens located near Pittsburg, Texas. We are pleased with the progress we have made in integrating these facilities into our operations and we are excited about the expansion of our business, particularly with our Texas customers.

“We look forward to the opportunities ahead for Cal-Maine Foods in fiscal 2013. Current market conditions are favorable with strong retail demand for eggs, especially as we head into the busy holiday season. We believe we are well positioned to succeed in this environment. We have a proven management team focused on executing our strategy to be an efficient low cost producer, expand our specialty egg business, provide exceptional customer service and identify suitable acquisitions to enhance our growth and build shareholder value,” added Baker.

For the first quarter of fiscal 2013, Cal-Maine Foods will pay a cash dividend of approximately $0.13 per share to holders of its common and Class A common stock. The amount paid could vary slightly based on the amount of outstanding shares on the record date. The dividend is payable November 15, 2012, to shareholders of record on October 31, 2012.

Selected operating statistics for the first quarter of fiscal 2013 compared with the prior year period are shown below:
 
      13 Weeks Ended

September 1,2012
     

August 27,2011
Dozen Eggs Sold (000) 210,061 208,096
Dozen Eggs Produced (000) 157,902 159,443
 
% Specialty Sales (dozen)

16.1

%
15.7 %
 
Net Average Selling Price (dozen) $ 1.238 $ 1.117
Feed Cost (dozen) $ 0.510 $ 0.484
 
% Specialty Sales (dollars) 23.5 % 23.6 %
 

Cal-Maine Foods, Inc. is primarily engaged in the production, grading, packing and sale of fresh shell eggs, including conventional, cage-free, organic and nutritionally-enhanced eggs. The Company, which is headquartered in Jackson, Mississippi, is the largest producer and distributor of fresh shell eggs in the United States and sells the majority of its shell eggs in approximately 29 states across the southwestern, southeastern, mid-western and mid-Atlantic regions of the United States.

Statements contained in this press release that are not historical facts are forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. The forward-looking statements are based on management’s current intent, belief, expectations, estimates and projections regarding our company and our industry. These statements are not guarantees of future performance and involve risks, uncertainties, assumptions and other factors that are difficult to predict and may be beyond our control. The factors that could cause actual results to differ materially from those projected in the forward-looking statements include, among others, (i) the risk factors set forth in the Company’s SEC filings (including its Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K), (ii) the risks and hazards inherent in the shell egg business (including disease, pests, weather conditions and potential for recall), (iii) changes in the demand for and market prices of shell eggs and feed costs, (iv) risks, changes or obligations that could result from our future acquisition of new flocks or businesses, and (v) adverse results in pending litigation matters. SEC filings may be obtained from the SEC or the Company’s website, www.calmainefoods.com . Readers are cautioned not to place undue reliance on forward-looking statements because, while we believe the assumptions on which the forward-looking statements are based are reasonable, there can be no assurance that these forward-looking statements will prove to be accurate. Further, the forward-looking statements included herein are only made as of the respective dates thereof, or if no date is stated, as of the date hereof. Except as otherwise required by law, we disclaim any intent or obligation to update publicly these forward-looking statements, whether as a result of new information, future events or otherwise.

 

CAL-MAINE FOODS, INC. AND SUBSIDIARIES

FINANCIAL HIGHLIGHTS

SUMMARY STATEMENTS OF INCOME

(Unaudited)

(In thousands, except per share amounts)
 
     

13 Weeks Ended

September 1, 2012
     

August 27,2011
Net sales $ 272,928 $ 243,842
Gross profit 44,715 33,786
Operating income 15,597 5,957
Income before income taxes 14,701 4,733
 
Net income $ 9,415 $ 3,117
 
Net income per share:
Basic $ 0.39 $ 0.13
Diluted $ 0.39 $ 0.13
Weighted average shares outstanding
Basic   23,921   23,867
Diluted   23,958   23,945
 
 

SUMMARY BALANCE SHEETS
 
      September 1,

2012
      June 2,

2012
ASSETS
Cash and short-term investments $ 209,274 $ 260,751
Receivables 76,751 62,768
Inventories 129,005 117,158
Prepaid expenses and other current assets   3,049   1,525
Current assets 418,079 442,202
 
Property, plant and equipment (net) 237,973 222,615
Other noncurrent assets  

56,901
  61,499
Total assets $ 712,953 $ 726,316
 
LIABILITIES AND STOCKHOLDERS' EQUITY
Accounts payable and accrued expenses $ 83,675 $ 103,724
Current maturities of long-term debt 11,458 11,458
Deferred income taxes   27,376   25,474
Current liabilities 122,509 140,656
 
Long-term debt, less current maturities 62,036 64,762
Deferred income taxes and other liabilities 42,457 41,570
Stockholders' equity   485,951   479,328
Total liabilities and stockholders' equity $ 712,953 $ 726,316
 

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