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Net sales for the second quarter of fiscal 2017 were
For the twenty-six weeks ended November 26, 2016, net sales were
“Specialty eggs, excluding co-pack sales, accounted for 22.4 percent of our total sales volume for the second quarter of fiscal 2017, the same level as the previous-year period. Specialty eggs revenue was 45.8 percent of total revenues, compared with 26.1 percent for the second quarter of fiscal 2016. Specialty egg prices have typically been less volatile than conventional eggs, which proved to be the case in the second quarter, as the average selling price for specialty eggs was down 13.2 percent over the second quarter of last year, while the average selling price for non-specialty eggs was down 64.9 percent over the prior-year period.
“We remain focused on expanding our specialty egg business, especially
cage-free eggs. We have made significant investments across our
operations to meet anticipated demand, as food service providers,
national restaurant chains and major retailers, including our largest
customers, have stated objectives to exclusively offer cage-free eggs by
future specified dates. While we expect this multi-year conversion will
be a disruption for our industry, we believe it provides an opportunity
for
“In spite of challenging market conditions, we continued to manage our operations in an efficient and responsible manner. Our feed costs per dozen were down 7.7 percent compared with a year ago. Our overall farm production costs were slightly lower than the second quarter of fiscal 2016, even with higher capital expenditures for conversion and other improvement projects.
“During the second quarter, we were pleased to complete the acquisition
of the assets of
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, or the
first quarter of fiscal 2017, and will not pay a dividend for the second
quarter of fiscal 2017. At November 26, 2016, cumulative losses that
must be recovered prior to paying a dividend were
Selected operating statistics for the second quarter and year-to-date period of fiscal 2017 compared with the prior-year periods are shown below:
13 Weeks Ended | 26 Weeks Ended | |||||||||||||||||||
November 26, |
November 28, |
November 26, |
November 28, |
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Dozen Eggs Sold (000) | 252,177 | 264,172 | 494,501 | 522,946 | ||||||||||||||||
Dozen Eggs Produced (000) | 211,971 | 204,423 | 410,753 | 407,071 | ||||||||||||||||
% Specialty Sales (dozen)* | 22.4 | % | 22.4 | % | 22.6 | % | 22.4 | % | ||||||||||||
% Specialty Sales (dollars)* | 45.8 | % | 26.1 | % | 46.2 | % | 25.4 | % | ||||||||||||
Net Average Selling Price (dozen) | $ | 0.971 | $ | 1.970 | $ | 0.962 | $ | 2.105 | ||||||||||||
Net Average Selling Price Specialty Eggs (dozen) | $ | 2.003 | $ | 2.308 | $ | 1.988 | $ | 2.393 | ||||||||||||
Feed Cost (dozen) | $ | 0.394 | $ | 0.427 | $ | 0.412 | $ | 0.423 | ||||||||||||
*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 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 |
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13 Weeks Ended | 26 Weeks Ended | |||||||||||||||||
November 26, |
November 28, |
November 26, |
November 28, |
|||||||||||||||
Net sales | $ | 253,544 | $ | 545,975 | $ | 493,389 | $ | 1,155,870 | ||||||||||
Gross profit (loss) | 3,948 | 211,597 | (5,621 | ) | 474,668 | |||||||||||||
Operating income (loss) | (38,043 | ) | 166,159 | (87,868 | ) | 386,267 | ||||||||||||
Other income | 1,275 | 1,850 | 2,560 | 2,399 | ||||||||||||||
Income (loss) before income taxes and noncontrolling interest | (36,768 | ) | 168,009 | (85,308 | ) | 388,666 | ||||||||||||
Income (loss) before income taxes attributable to Cal-Maine Foods, Inc. | (36,811 | ) | 167,329 | (85,307 | ) | 386,919 | ||||||||||||
Net income (loss) | $ | (23,010 | ) | $ | 109,230 | $ | (53,946 | ) | $ | 252,253 | ||||||||
Net income (loss) per share: | ||||||||||||||||||
Basic | $ | (0.48 | ) | $ | 2.27 | $ | (1.12 | ) | $ | 5.24 | ||||||||
Diluted | $ | (0.48 | ) | $ | 2.26 | $ | (1.12 | ) | $ | 5.22 | ||||||||
Weighted average shares outstanding | ||||||||||||||||||
Basic | 48,250 | 48,164 | 48,249 | 48,164 | ||||||||||||||
Diluted | 48,250 | 48,361 | 48,249 | 48,354 | ||||||||||||||
SUMMARY BALANCE SHEETS |
|||||||||||||||||
November 26, 2016 | May 28, 2016 | ||||||||||||||||
ASSETS | |||||||||||||||||
Cash and short-term investments | $ | 197,901 | $ | 389,545 | |||||||||||||
Receivables | 81,718 | 67,448 | |||||||||||||||
Income tax receivable | 39,932 | 11,830 | |||||||||||||||
Inventories | 162,291 | 154,799 | |||||||||||||||
Prepaid expenses and other current assets | 2,885 | 2,661 | |||||||||||||||
Current assets | 484,727 | 626,283 | |||||||||||||||
Property, plant and equipment (net) | 448,547 | 392,274 | |||||||||||||||
Other noncurrent assets | 129,369 | 93,208 | |||||||||||||||
Total assets | $ | 1,062,643 | $ | 1,111,765 | |||||||||||||
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||||||||||||
Accounts payable and accrued expenses | $ | 67,005 | $ | 67,131 | |||||||||||||
Current maturities of long-term debt | 15,510 | 16,320 | |||||||||||||||
Current liabilities | 82,515 | 83,451 | |||||||||||||||
Long-term debt, less current maturities | 7,000 | 9,250 | |||||||||||||||
Deferred income taxes and other liabilities | 108,211 | 101,703 | |||||||||||||||
Stockholders' equity | 864,917 | 917,361 | |||||||||||||||
Total liabilities and stockholders' equity | $ | 1,062,643 | $ | 1,111,765 |
View source version on businesswire.com: http://www.businesswire.com/news/home/20161222005697/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