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Net sales for the third quarter of fiscal 2017 were
For the thirty-nine weeks ended February 25, 2017, net sales were
“The egg markets have remained under pressure, and we do not expect to
see any meaningful improvement until there is a better balance of supply
and demand. Following the 2015 avian influenza (AI)-related laying hen
losses,
“Specialty eggs, excluding co-pack sales, accounted for 23.6 percent of our total sales volume for the third quarter of fiscal 2017, the same proportion as the third quarter last year. Specialty eggs revenue was 40.8 percent of total shell egg revenues, compared with 31.0 percent for the third quarter of fiscal 2016. The average selling price for specialty eggs, which is typically higher and less volatile, was down 5.2 percent over the third quarter of last year, while the average selling price for non-specialty eggs was down 38.7 percent over the prior-year period.
“Our specialty egg business is a primary focus of our growth strategy.
We have continued to make significant investments across our operations
to meet anticipated demand for cage-free eggs, 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 the multi-year
conversion to cage-free production will present new challenges and
higher costs for our industry, we believe it also provides additional
market opportunities for
Baker continued, “Our operations ran well during the third quarter as we continued to focus on efficient and responsible management and respond to dynamic market conditions. For the third quarter of fiscal 2017, our feed costs per dozen were down 4.3 percent compared with a year ago, and our overall farm production costs were down 1.3 percent over the third quarter of fiscal 2016.
“Another key aspect of our growth strategy is to expand our business
through selective acquisitions. Importantly, we have a strong balance
sheet and the financial strength to support this strategy. During the
third quarter, we completed the acquisition of substantially all of the
assets of
Over the past month, there have been reported outbreaks of AI in certain
poultry operations located in southeastern states. None of these
outbreaks has affected the commercial table egg layer flock, and there
have been no positive tests for AI at any
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 and second quarters of fiscal 2017, and will not pay a dividend
for the third quarter of fiscal 2017. At February 25, 2017, cumulative
losses that must be recovered prior to paying a dividend were
Selected operating statistics for the third quarter and year-to-date period of fiscal 2017 compared with the prior-year periods are shown below:
13 Weeks Ended | 39 Weeks Ended | ||||||||||||||||||||
February 25, 2017 |
February 27, 2016 |
February 25, 2017 |
February 27, 2016 |
||||||||||||||||||
Dozen Eggs Sold (000) | 263,613 | 277,574 | 758,114 | 800,520 | |||||||||||||||||
Dozen Eggs Produced (000) | 222,492 | 213,285 | 633,246 | 620,356 | |||||||||||||||||
% Specialty Sales (dozen)* | 23.6 | % | 23.6 | % | 23.0 | % | 22.8 | % | |||||||||||||
% Specialty Sales (dollars)* | 40.8 | % | 31.0 | % | 44.1 | % | 27.0 | % | |||||||||||||
Net Average Selling Price (dozen) | $ | 1.130 | $ | 1.568 | $ | 1.020 | $ | 1.919 | |||||||||||||
Net Average Selling Price Specialty Eggs (dozen) | $ | 1.965 | $ | 2.073 | $ | 1.980 | $ | 2.279 | |||||||||||||
Feed Cost (dozen) | $ | 0.396 | $ | 0.414 | $ | 0.406 | $ | 0.420 | |||||||||||||
*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 |
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SUMMARY STATEMENTS OF OPERATIONS |
|||||||||||||||||||
13 Weeks Ended | 39 Weeks Ended | ||||||||||||||||||
February 25, 2017 |
February 27, 2016 |
February 25, 2017 |
February 27, 2016 |
||||||||||||||||
Net sales | $ | 306,540 | $ | 449,760 | $ | 799,929 | $ | 1,605,630 | |||||||||||
Gross profit | 39,165 | 132,726 | 33,544 | 607,394 | |||||||||||||||
Operating income (loss) | (4,573 | ) | 85,771 | (92,441 | ) | 472,038 | |||||||||||||
Other income | 8,738 | 11,744 | 11,298 | 14,143 | |||||||||||||||
Income (loss) before income taxes and noncontrolling interest | 4,165 | 97,515 | (81,143 | ) | 486,181 | ||||||||||||||
Income (loss) before income taxes attributable to Cal-Maine Foods, Inc. | 4,173 | 97,337 | (81,134 | ) | 484,256 | ||||||||||||||
Net income (loss) | $ | 4,139 | $ | 64,164 | $ | (49,807 | ) | $ | 316,417 | ||||||||||
Net income (loss) per share: | |||||||||||||||||||
Basic | $ | 0.09 | $ | 1.33 | $ | (1.03 | ) | $ | 6.57 | ||||||||||
Diluted | $ | 0.09 | $ | 1.33 | $ | (1.03 | ) | $ | 6.54 | ||||||||||
Weighted average shares outstanding | |||||||||||||||||||
Basic | 48,286 | 48,204 | 48,285 | 48,177 | |||||||||||||||
Diluted | 48,417 | 48,367 | 48,285 | 48,359 |
SUMMARY BALANCE SHEETS |
||||||||||
February 25, 2017 | May 28, 2016 | |||||||||
ASSETS | ||||||||||
Cash and short-term investments | $ | 189,575 | $ | 389,545 | ||||||
Receivables | 79,179 | 67,448 | ||||||||
Income tax receivable | 49,919 | 11,830 | ||||||||
Inventories | 163,818 | 154,799 | ||||||||
Prepaid expenses and other current assets | 2,310 | 2,661 | ||||||||
Current assets | 484,801 | 626,283 | ||||||||
Property, plant and equipment (net) | 461,378 | 392,274 | ||||||||
Other noncurrent assets | 139,096 | 93,208 | ||||||||
Total assets | $ | 1,085,275 | $ | 1,111,765 | ||||||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||||
Accounts payable and accrued expenses | $ | 77,128 | $ | 67,131 | ||||||
Current maturities of long-term debt | 15,449 | 16,320 | ||||||||
Current liabilities | 92,577 | 83,451 | ||||||||
Long-term debt, less current maturities | 7,302 | 9,250 | ||||||||
Deferred income taxes and other liabilities | 117,034 | 101,703 | ||||||||
Stockholders' equity | 868,362 | 917,361 | ||||||||
Total liabilities and stockholders' equity | $ | 1,085,275 | $ | 1,111,765 | ||||||
View source version on businesswire.com: http://www.businesswire.com/news/home/20170327005151/en/
Source:
Cal-Maine Foods, Inc.
Timothy A. Dawson, 601-948-6813
Vice
President and CFO
or
Dolph Baker, 601-948-6813
Chairman,
President and CEO