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Net sales for the fourth quarter of fiscal 2016 were
For the fiscal year 2016, net sales were
“Throughout this fiscal year, our industry continued to deal with the aftermath of the Avian Influenza (AI) outbreaks that occurred in the spring of 2015. While there have been no positive tests for AI at any of our locations, the outbreak significantly affected egg supplies and prices. Our results for the fourth quarter reflect these extremely volatile egg market conditions and supply disruptions. Market prices for shell eggs have dropped considerably from the historically high levels we experienced at the beginning of this fiscal year. The Urner Barry price index hit a decade-low level during our fourth quarter, before recovering a portion of these declines in recent weeks. In addition to the 21.7 percent drop in average selling prices over the same quarter last year, our sales for the fourth quarter reflect lower volumes, primarily related to the loss of a portion of a major customer’s co-pack business. While retail demand trends for shell eggs have been favorable, the market has continued to experience demand erosion for egg products and reduced egg exports. Based on USDA reports, the laying flock is expected to increase through the end of calendar 2016, creating more supply and the potential for further price declines.
“In fiscal 2016, we saw steady growth in demand for specialty eggs with
our sales volumes up 14.7 percent for the year,” added Baker. “Sales of
specialty eggs accounted for 22.9 percent of our total number of shell
eggs sold and 29.1 percent of our shell eggs revenue for fiscal 2016.
Specialty egg prices remained strong during the year; however, as
non-specialty egg prices have come down, we are experiencing some margin
and volume pressures on specialty egg sales. Going forward, we believe
“Overall, our operations performed very well in fiscal 2016, as our
managers across all of Cal-Maine Foods’ locations did an outstanding job
in executing our strategy to be an efficient, low-cost producer. For the
year, we reported operating income of
Baker concluded, “We are very pleased with Cal-Maine Foods’ performance
in fiscal 2016 and the consistent execution of our strategy in a dynamic
marketplace. We will remain focused on this same strategy in the year
ahead. We will continue to manage our operations efficiently and
leverage the additional capacity from our most recent joint ventures and
expansion projects. Our cage-free joint venture with
For fiscal 2016,
Selected operating statistics for the fourth quarter and fiscal 2016 compared with the prior-year periods are shown below:
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13 Weeks Ended | 52 Weeks Ended | ||||||||||||||||||||
May 28, 2016 | May 30, 2015 | May 28, 2016 | May 30, 2015 | ||||||||||||||||||
Dozen Eggs Sold (000) | 253,077 | 264,883 | 1,053,597 | 1,063,086 | |||||||||||||||||
Dozen Eggs Produced (000) | 198,950 | 201,763 | 819,307 | 798,842 | |||||||||||||||||
% Specialty Sales (dozen)* | 23.3 | % | 21.0 | % | 22.9 | % | 19.8 | % | |||||||||||||
% Specialty Sales (dollars)* | 40.2 | % | 28.2 | % | 29.1 | % | 27.2 | % | |||||||||||||
Net Average Selling Price (dozen) | $ | 1.152 | $ | 1.471 | $ | 1.735 | $ | 1.429 | |||||||||||||
Feed Cost (dozen) | $ | 0.396 | $ | 0.406 | $ | 0.414 | $ | 0.439 | |||||||||||||
*Excludes co-pack specialty eggs |
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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) our ability to predict and meet demand for
cage-free and other specialty eggs, (v) risks, changes or obligations
that could result from our future acquisition of new flocks or
businesses, and (vi) adverse results in pending litigation matters.
CAL-MAINE FOODS, INC. AND SUBSIDIARIES |
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FINANCIAL HIGHLIGHTS |
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(Unaudited) |
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(In thousands, except per share amounts) |
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SUMMARY STATEMENTS OF INCOME |
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13 Weeks Ended | 52 Weeks Ended | |||||||||||||||||
May 28, 2016 | May 30, 2015 | May 28, 2016 | May 30, 2015 | |||||||||||||||
Net sales | $ | 303,020 | $ | 403,011 | $ | 1,908,650 | $ | 1,576,128 | ||||||||||
Gross profit | 40,680 | 109,394 | 648,074 | 395,721 | ||||||||||||||
Operating income (loss) | (1,724 | ) | 66,550 | 470,314 | 235,335 | |||||||||||||
Other income | 2,792 | 3,629 | 16,935 | 11,214 | ||||||||||||||
Income before income taxes and noncontrolling interest |
1,068 | 70,179 | 487,249 | 246,549 | ||||||||||||||
Income before income taxes attributable to Cal-Maine Foods, Inc. | 987 | 70,017 | 485,243 | 245,522 | ||||||||||||||
Net income (loss) | $ | (376 | ) | $ | 46,114 | $ | 316,041 | $ | 161,254 | |||||||||
Net income per share: | ||||||||||||||||||
Basic | $ | (0.01 | ) | $ | 0.96 | $ | 6.56 | $ | 3.35 | |||||||||
Diluted | $ | (0.01 | ) | $ | 0.95 | $ | 6.53 | $ | 3.33 | |||||||||
Weighted average shares outstanding | ||||||||||||||||||
Basic | 48,247 | 48,142 | 48,195 | 48,136 | ||||||||||||||
Diluted | 48,247 | 48,495 | 48,365 | 48,437 | ||||||||||||||
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SUMMARY BALANCE SHEETS |
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May 28, |
May 30, |
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ASSETS | |||||||||
Cash and short-term investments | $ | 389,545 | $ | 258,628 | |||||
Receivables | 67,448 | 101,977 | |||||||
Income tax receivable | 11,830 | - | |||||||
Inventories | 154,799 | 146,260 | |||||||
Prepaid expenses and other current assets | 2,661 | 2,099 | |||||||
Current assets | 626,283 | 508,964 | |||||||
Property, plant and equipment (net) | 392,274 | 358,790 | |||||||
Other noncurrent assets | 93,208 | 60,899 | |||||||
Total assets | $ | 1,111,765 | $ | 928,653 | |||||
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||||
Accounts payable and accrued expenses | $ | 67,131 | $ | 86,193 | |||||
Current maturities of long-term debt | 16,320 | 10,065 | |||||||
Income taxes payable | - | 5,288 | |||||||
Current liabilities | 83,451 | 101,546 | |||||||
Long-term debt, less current maturities | 9,250 | 40,795 | |||||||
Deferred income taxes and other liabilities | 101,703 | 81,750 | |||||||
Stockholders' equity | 917,361 | 704,562 | |||||||
Total liabilities and stockholders' equity | $ | 1,111,765 | $ | 928,653 | |||||
View source version on businesswire.com: http://www.businesswire.com/news/home/20160718005144/en/
Source:
Cal-Maine Foods, Inc.
Dolph Baker, 601-948-6813
Chairman,
President and CEO
or
Timothy A. Dawson, 601-948-6813
Vice
President and CFO