View printer-friendly version |
<< Back |
Net sales for the fourth quarter of fiscal 2018 were
For the fiscal year ended June 2, 2018, net sales were
“Market prices were exceptionally strong during the first part of the quarter, but fell significantly following the Easter holiday. Overall, average customer selling prices were up 74.1 percent compared with the fourth quarter last year. According to reports from IRI, a consumer market research firm, retail demand has been favorable throughout this period, especially around the Easter holiday season. Export demand remained at near historical levels during the fourth quarter. Together, these demand trends have supported market prices at recent production levels. However, according to recent USDA reports, the chick hatch rate has been up for the last eight months, and has increased by approximately 10 percent since the beginning of calendar 2018. Given these trends, the projected increase in the U.S. laying hen flock and potential excess shell egg supply could create additional pricing pressure.”
Baker continued, “Specialty eggs, excluding co-pack sales, accounted for 25.5 percent of our sales volumes for the fourth quarter, compared with 22.7 percent a year ago. Specialty egg revenue was 29.0 percent of total shell egg revenue, compared with 42.0 percent for the fourth quarter of fiscal 2017, reflecting significantly higher market prices for non-specialty eggs in the current period. Specialty eggs remain a primary focus of our growth strategy, and we strive to offer a favorable product mix that reflects consumer demand trends. As the egg industry moves forward in anticipation of the expected increase in demand for cage-free eggs, we are working closely with our customers to ensure their needs are met through this transition. As such, we intend to make the required investments in our operations and adjust our cage-free production capacity in line with expected demand.
“We are also closely monitoring industry developments surrounding a proposed referendum that will be on the ballot for voters in
“Our operations have performed well throughout fiscal 2018, as our managers across all
“We are proud of our accomplishments for fiscal 2018, as we continued to execute our growth strategy with favorable results. Looking ahead, we will remain focused on this same strategy: manage our operations efficiently and responsibly, provide a favorable product mix, including cage-free and other specialty eggs, and look for acquisition or other growth opportunities that enhance our operations. Above all, we are focused on meeting the needs of our customers and providing excellent service. We have a strong balance sheet, including a new five-year,
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. At the end of the Company's third quarter of fiscal 2018, cumulative losses to be recovered prior to paying a dividend were
Selected operating statistics for the fourth quarter and fiscal 2018 compared with the prior-year periods are shown below:
13 Weeks Ended | 14 Weeks Ended | 52 Weeks Ended | 53 Weeks Ended | ||||||||||||||||||||
June 2, 2018 | June 3, 2017 | June 2, 2018 | June 3, 2017 | ||||||||||||||||||||
Dozen Eggs Sold (000) | 251,955 | 273,015 | 1,037,713 | 1,031,130 | |||||||||||||||||||
Dozen Eggs Produced (000) | 215,729 | 237,006 | 873,307 | 870,252 | |||||||||||||||||||
% Specialty Sales (dozen)* | 25.5 | % | 22.7 | % | 23.5 | % | 22.9 | % | |||||||||||||||
% Specialty Sales (dollars)* | 29.0 | % | 42.0 | % | 32.0 | % | 43.6 | % | |||||||||||||||
Net Average Selling Price (dozen) | $ | 1.694 | $ | 0.973 | $ | 1.397 | $ | 1.007 | |||||||||||||||
Net Average Selling Price Specialty Eggs (dozen) | $ | 1.941 | $ | 1.823 | $ | 1.916 | $ | 1.939 | |||||||||||||||
Feed Cost (dozen) | $ | 0.416 | $ | 0.381 | $ | 0.394 | $ | 0.399 | |||||||||||||||
*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 |
|||||||||||||||||||||
SUMMARY STATEMENTS OF OPERATIONS | |||||||||||||||||||||
13 Weeks Ended |
14 Weeks Ended |
52 Weeks Ended |
53 Weeks Ended |
||||||||||||||||||
June 2, 2018 |
June 3, 2017 |
June 2, 2018 |
June 3, 2017 |
||||||||||||||||||
Net sales | $ | 443,095 | $ | 274,584 | $ | 1,502,932 | $ | 1,074,513 | |||||||||||||
Gross profit | 141,216 | 12,006 | 361,046 | 45,550 | |||||||||||||||||
Operating income (loss) | 91,315 | (38,291 | ) | 102,675 | (132,094 | ) | |||||||||||||||
Other income | 2,575 | 5,141 | 14,662 | 17,800 | |||||||||||||||||
Income (loss) before income taxes and noncontrolling interest | 93,890 | (33,151 | ) | 117,337 | (114,294 | ) | |||||||||||||||
Income (loss) before income taxes attributable to Cal-Maine Foods, Inc. | 93,561 | (33,011 | ) | 117,073 | (114,145 | ) | |||||||||||||||
Net income (loss) | $ | 71,767 | $ | (24,471 | ) | $ | 125,932 | $ | (74,278 | ) | |||||||||||
Net income (loss) per share: | |||||||||||||||||||||
Basic | $ | 1.48 | $ | (0.51 | ) | $ | 2.60 | $ | (1.54 | ) | |||||||||||
Diluted | $ | 1.48 | $ | (0.51 | ) | $ | 2.60 | $ | (1.54 | ) | |||||||||||
Weighted average shares outstanding | |||||||||||||||||||||
Basic | 48,289 | 48,329 | 48,353 | 48,362 | |||||||||||||||||
Diluted | 48,495 | 48,329 | 48,468 | 48,362 |
CAL-MAINE FOODS, INC. AND SUBSIDIARIES |
|||||||||||||
SUMMARY BALANCE SHEETS | |||||||||||||
June 2, 2018 | June 3, 2017 | ||||||||||||
ASSETS | |||||||||||||
Cash and short-term investments | $ | 331,017 | $ | 156,026 | |||||||||
Receivables | 85,839 | 64,509 | |||||||||||
Income tax receivable | — | 52,691 | |||||||||||
Inventories | 168,644 | 160,692 | |||||||||||
Prepaid expenses and other current assets | 2,020 | 2,288 | |||||||||||
Current assets | 587,520 | 436,206 | |||||||||||
Property, plant and equipment (net) | 425,384 | 458,184 | |||||||||||
Other noncurrent assets | 137,543 | 138,704 | |||||||||||
Total assets | $ | 1,150,447 | $ | 1,033,094 | |||||||||
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||||||||
Accounts payable and accrued expenses | $ | 86,856 | $ | 59,853 | |||||||||
Income taxes payable | 17,446 | — | |||||||||||
Current maturities of long-term debt | 3,536 | 4,826 | |||||||||||
Current liabilities | 107,838 | 64,679 | |||||||||||
Long-term debt, less current maturities | 2,554 | 6,113 | |||||||||||
Deferred income taxes and other liabilities | 84,373 | 117,809 | |||||||||||
Stockholders' equity | 955,682 | 844,493 | |||||||||||
Total liabilities and stockholders' equity | $ | 1,150,447 | $ | 1,033,094 | |||||||||
View source version on businesswire.com: https://www.businesswire.com/news/home/20180723005123/en/
Source:
Cal-Maine Foods, Inc.
Timothy A. Dawson, 601-948-6813
Vice President and CFO
or
Dolph Baker, 601-948-6813
Chairman and CEO