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Net sales for the first quarter of fiscal 2017 were
“Our first quarter results were also affected by lower co-pack business
and a small decline in specialty egg volume compared with the prior year
period. Sales of specialty eggs accounted for 22.9 percent of our total
number of shell eggs sold and 46.7 percent of our shell eggs revenue for
the first quarter of fiscal 2017. Specialty egg prices held up better
than non-specialty egg prices, but were down 20 percent from the
extremely high levels in the first quarter of last year. As
non-specialty shell egg prices dropped, we experienced margin and volume
pressures on specialty eggs as well. Consumer demand trends remain
favorable, and we are focused on the continued expansion of our
specialty egg business, especially cage-free eggs, in light of current
and anticipated customer demand. As reported, many food service
providers, national restaurant chains and major retailers, including our
largest customers, have made public commitments to exclusive offerings
of cage-free eggs by future specified dates. We are making significant
investments across our operations, including our joint venture with
Baker added “Our operations ran well during the summer months; however, we experienced higher farm production costs primarily due to ongoing capital improvement and conversion projects. Our feed costs per dozen produced were marginally higher compared with a year ago, with adequate supplies of grain from last fall. The USDA reports indicate another plentiful harvest for both corn and soybean crops this year, which should result in lower grain prices for fiscal 2017.
“Looking ahead, we plan to continue to execute our strategy despite
short-term market conditions. We will focus on managing our operations
efficiently and identifying additional growth opportunities, including
acquisitions, that will enhance our ability to serve our customers and
extend our market reach. As previously announced on
Pursuant to Cal-Maine Foods’ variable dividend policy, for each quarter
for which the Company reports net income, the Company pays a cash
dividend to shareholders in an amount equal to one-third of such
quarterly income. Following a quarter for which the Company does not
report net income, the Company will not pay a dividend with respect to
that quarter or for a subsequent profitable quarter until the Company is
profitable on a cumulative basis computed from the date of the last
quarter for which a dividend was paid. Therefore, the Company did not
pay a dividend with respect to the fourth quarter of fiscal 2016 and
will not pay a dividend for the first quarter of fiscal 2017. At
Selected operating statistics for the first quarter of fiscal 2017 compared with the prior-year period are shown below:
13 Weeks Ended | |||||||||||
August 27, 2016 | August 29, 2015 | ||||||||||
Dozen Eggs Sold (000) | 242,325 | 258,774 | |||||||||
Dozen Eggs Produced (000) | 198,782 | 202,648 | |||||||||
% Specialty Sales (dozen)* | 22.9 | % | 22.4 | % | |||||||
% Specialty Sales (dollars)* | 46.7 | % | 24.7 | % | |||||||
Net Average Selling Price (dozen) | $ | 0.952 | $ | 2.243 | |||||||
Net Average Selling Price Specialty Eggs (dozen) | $ | 1.973 | $ | 2.481 | |||||||
Feed Cost (dozen) | $ | 0.431 | $ | 0.419 | |||||||
*Excludes co-pack specialty eggs
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 risks or changes that may cause conditions to completing
a pending acquisition not to be met, and (vi) adverse results in pending
litigation matters.
CAL-MAINE FOODS, INC. AND SUBSIDIARIES | ||||||||||
FINANCIAL HIGHLIGHTS | ||||||||||
(Unaudited) |
||||||||||
(In thousands, except per share amounts) |
||||||||||
SUMMARY STATEMENTS OF OPERATIONS | ||||||||||
13 Weeks Ended | ||||||||||
August 27, |
August 29, |
|||||||||
Net sales | $ | 239,845 | $ | 609,895 | ||||||
Gross profit (loss) | (9,569 | ) | 263,071 | |||||||
Operating income (loss) | (49,825 | ) | 220,108 | |||||||
Other income | 1,285 | 549 | ||||||||
Income (loss) before income taxes and noncontrolling interest |
(48,540 | ) | 220,657 | |||||||
Income (loss) before income taxes attributable to Cal-Maine Foods, Inc. |
(48,496 | ) | 219,590 | |||||||
Net income (loss) | $ | (30,936 | ) | $ | 143,023 | |||||
Net income (loss) per share: | ||||||||||
Basic | $ | (0.64 | ) | $ | 2.97 | |||||
Diluted | $ | (0.64 | ) | $ | 2.95 | |||||
Weighted average shares outstanding | ||||||||||
Basic | 48,249 | 48,163 | ||||||||
Diluted | 48,249 | 48,498 | ||||||||
SUMMARY BALANCE SHEETS |
|||||||||
August 27, |
May 28, |
||||||||
ASSETS | |||||||||
Cash and short-term investments | $ | 306,848 | $ | 389,545 | |||||
Receivables | 74,099 | 67,448 | |||||||
Income tax receivable | 34,855 | 11,830 | |||||||
Inventories | 154,621 | 154,799 | |||||||
Prepaid expenses and other current assets | 3,530 | 2,661 | |||||||
Current assets | 573,953 | 626,283 | |||||||
Property, plant and equipment (net) | 404,787 | 392,274 | |||||||
Other noncurrent assets | 97,232 | 93,208 | |||||||
Total assets | $ | 1,075,972 | $ | 1,111,765 | |||||
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||||
Accounts payable and accrued expenses | $ | 59,223 | $ | 67,131 | |||||
Current maturities of long-term debt | 15,915 | 16,320 | |||||||
Current liabilities | 75,138 | 83,451 | |||||||
Long-term debt, less current maturities | 8,125 | 9,250 | |||||||
Deferred income taxes and other liabilities | 105,282 | 101,703 | |||||||
Stockholders' equity | 887,427 | 917,361 | |||||||
Total liabilities and stockholders' equity | $ | 1,075,972 | $ | 1,111,765 | |||||
View source version on businesswire.com: http://www.businesswire.com/news/home/20160926005212/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