View printer-friendly version |
<< Back |
Net sales for the first quarter of fiscal 2019 were
“While we experienced some volatility in market prices during the quarter, our average customer selling price for shell eggs was up 28.5 percent compared with the first quarter of fiscal 2018. According to recent reports from IRI, a consumer market research firm, demand trends have been favorable for retail customers. Food service demand remained steady and year-to-date shell egg exports were slightly higher than the same period last year. Together, these trends have supported market prices with a manageable level of egg supply. Although overall egg production growth has been modest, according to recent USDA reports, the number of chicks hatched has increased 11 percent since the beginning of calendar 2018, indicating future increases in laying hen numbers. Given these trends, the potential increase in the shell egg supply could create additional pricing pressure.
“Total dozens sold of specialty eggs, excluding co-pack sales, were up 9.7 percent over the same period last year, as consumer demand for specialty eggs has continued to support this segment of the egg market. Specialty egg prices were steady for the first quarter of fiscal 2019, with the average customer selling price at approximately the same level as a year ago. Specialty egg revenue was 34.2 percent of our total shell egg revenue, compared with 39.6 percent for the first quarter of fiscal 2018, due to higher market prices for non-specialty eggs in the current period. We remain focused on providing our customers with a favorable product mix of healthy and affordable options including conventional, cage-free, nutritionally enhanced and organic eggs.
“With the expected increase in demand for cage-free eggs, we are prepared to meet the needs of national retail grocery stores and restaurant chains who have pledged to move away from conventional eggs. We currently have additional capital projects underway to convert Cal-Maine Foods’ facilities to convertible/cage-free capacity and replace less efficient production. These projects are designed to offer the flexibility to produce conventional eggs or cage-free eggs, allowing us to more effectively manage our future product mix.
“Our operations ran well through the summer, and we reported operating
income of
“In spite of changing market conditions, we remain focused on the
aspects of our business that we can control. As always, we will manage
our operations as efficiently as possible, strive to provide a favorable
product mix, including cage-free and other specialty eggs, and continue
to meet the needs of our valued customers with exceptional service. We
look forward to the opportunities ahead for
For the first quarter of fiscal 2019,
Selected operating statistics for the first quarter of fiscal 2019 compared with the prior-year period are shown below:
13 Weeks Ended | ||||||||||
September 1, |
September 2, |
|||||||||
Dozen Eggs Sold (000) | 250,060 | 249,464 | ||||||||
Dozen Eggs Produced (000) | 209,212 | 213,570 | ||||||||
% Specialty Sales (dozen)* | 23.8 | % | 21.7 | % | ||||||
% Specialty Sales (dollars)* | 34.2 | % | 39.6 | % | ||||||
Net Average Selling Price (per dozen) | $ | 1.307 | $ | 1.017 | ||||||
Net Average Selling Price Specialty Eggs (per dozen)* | $ | 1.890 | $ | 1.878 | ||||||
Feed Cost (per dozen) | $ | 0.413 | $ | 0.375 | ||||||
*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 | ||||||||||
September 1, |
September 2, |
|||||||||
Net sales | $ | 340,583 | $ | 262,845 | ||||||
Cost of sales | 283,455 | 245,509 | ||||||||
Gross profit | 57,128 | 17,336 | ||||||||
Selling, general, and administrative expense | 44,510 | 41,710 | ||||||||
(Gain) loss on disposal of fixed assets | (59 | ) | 4 | |||||||
Operating income (loss) | 12,677 | (24,378 | ) | |||||||
Other income (expense), net | 3,816 | (139 | ) | |||||||
Income (loss) before income taxes and noncontrolling interest | 16,493 | (24,517 | ) | |||||||
Income tax (benefit) expense | 3,750 | (8,340 | ) | |||||||
Net income (loss) before noncontrolling interest | 12,743 | (16,177 | ) | |||||||
Less: Net income (loss) attributable to noncontrolling interest | 338 | (184 | ) | |||||||
Net income (loss) attributable to Cal-Maine Foods, Inc. | $ | 12,405 | $ | (15,993 | ) | |||||
Net income (loss) per share: | ||||||||||
Basic | $ | 0.26 | $ | (0.33 | ) | |||||
Diluted | $ | 0.26 | $ | (0.33 | ) | |||||
Weighted average shares outstanding | ||||||||||
Basic | 48,390 | 48,330 | ||||||||
Diluted | 48,516 | 48,330 | ||||||||
CAL-MAINE FOODS, INC. AND SUBSIDIARIES | |||||||||
FINANCIAL HIGHLIGHTS | |||||||||
(Unaudited) |
|||||||||
(In thousands) |
|||||||||
SUMMARY BALANCE SHEETS | |||||||||
September 1, 2018 | June 2, 2018 | ||||||||
ASSETS | |||||||||
Cash and short-term investments | $ | 321,412 | $ | 331,017 | |||||
Receivables, net | 94,548 | 85,839 | |||||||
Inventories | 171,144 | 168,644 | |||||||
Prepaid expenses and other current assets | 4,116 | 2,020 | |||||||
Current assets | 591,220 | 587,520 | |||||||
Property, plant and equipment (net) | 421,717 | 425,384 | |||||||
Other noncurrent assets | 139,158 | 137,543 | |||||||
Total assets | $ | 1,152,095 | $ | 1,150,447 | |||||
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||||
Accounts payable and accrued expenses | $ | 93,208 | $ | 87,209 | |||||
Accrued dividends payable | 4,135 | 17,093 | |||||||
Current maturities of long-term debt and capital lease obligations | 3,271 | 3,536 | |||||||
Current liabilities | 100,614 | 107,838 | |||||||
Long-term debt and capital lease obligations, less current maturities | 1,496 | 2,554 | |||||||
Deferred income taxes and other liabilities | 84,421 | 84,373 | |||||||
Stockholders' equity | 965,564 | 955,682 | |||||||
Total liabilities and stockholders' equity | $ | 1,152,095 | $ | 1,150,447 |
View source version on businesswire.com: https://www.businesswire.com/news/home/20181001005113/en/
Source:
Cal-Maine Foods, Inc.
Dolph Baker, 601-948-6813
Chairman and
CEO
or
Timothy A. Dawson, 601-948-6813
Vice President and
CFO