Cal-Maine Foods, Inc. (NASDAQ: CALM) today reported
results for the first quarter of fiscal 2016 ended August
29, 2015.
Net sales for the first quarter of fiscal 2016 were $609.9
million, compared with net sales of $356.9 million for the first
quarter of fiscal 2015. The Company reported net income of
$143.0 million, or $2.97 per basic share and $2.95 per diluted
share, for the first quarter of fiscal 2016, compared with
$27.7 million, or $0.57 per basic and diluted share, for the
first quarter of fiscal 2015.
The net income per share numbers for the first quarter of fiscal
2016 and fiscal 2015 reflect the two-for-one stock split for shares
of the Company’s common stock and Class A common stock, effective
October 31, 2014.
Dolph Baker, chairman, president and chief executive officer of
Cal-Maine Foods, Inc., stated, “Our financial and operating results
for the first quarter marked a very strong start to fiscal 2016
with record quarterly sales and net income. Overall sales were up
70.9 percent over the prior year period, as average selling prices
for shell eggs spiked to record levels during the first quarter and
were up 65.7 percent compared with the same period last year.
Volumes were also up slightly in what is typically our slowest
quarter, with total dozen shell eggs sold up 2.8 percent over the
first quarter of fiscal 2015.”
Baker added, “Our industry is still feeling the effects of the
substantial reduction in the national laying hen flock that
occurred this past spring related to the Avian Influenza (AI)
outbreaks in the upper Midwestern United States. We believe that
egg prices will remain very high until the supply situation returns
to more normal levels. While there have been no further reported
outbreaks of AI, we continue to closely monitor the situation and
are working with egg industry associations and government officials
to identify ways to mitigate the risk of future outbreaks. There
have been no positive tests for AI at any of the Cal-Maine Foods
locations, however, we have strengthened our biosecurity measures
at all of our facilities.
“In spite of the market disruptions, demand trends for eggs from
the retail and egg products markets have been favorable throughout
the first quarter. We continue to see strong consumer demand for
specialty eggs, and we remain focused on providing our customers
with a product mix that meets this demand. For the first quarter,
specialty egg sales, including those sold through co-pack
arrangements, accounted for 24.5 percent of our total number of
shell eggs sold and 27.1 percent of our shell eggs revenue. With a
full complement of conventional, nutritionally enhanced, cage-free
and organic eggs, we are well positioned to capitalize on
additional opportunities to market and sell specialty eggs in
fiscal 2016.”
Baker continued, “Our operations have run well through the
summer months, and we are pleased with our consistent execution as
an efficient, low-cost producer. Our operating performance was
supported by a 13.4 percent drop in our average feed costs per
dozen compared with a year ago, and our overall farm production
costs per dozen were 8.0 percent lower than the first quarter of
fiscal 2015. However, these lower costs were offset by the
significantly higher prices paid for purchased eggs, increased
processing costs, and higher costs for cartons and packaging. In
addition, the Company had higher expenditures related to enhanced
biosecurity measures at all locations. For the first quarter of
fiscal 2016, operating income improved to $220.1 million, compared
with $41.2 million for the first quarter of fiscal 2015.
“Our expansion projects are moving forward, and our joint
venture with Rose Acre Farms in Texas is on schedule for initial
flocks to be placed in November 2015. The additional capacity
gained from these initiatives will further support our growth
strategy in the year ahead,” said Baker.
For the first quarter of fiscal 2016, Cal-Maine Foods will pay a
cash dividend of approximately $0.983 per share to holders of its
common and Class A common stock. Pursuant to Cal-Maine Foods’
variable dividend policy, in 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. No dividends are paid in a quarter for which the Company
does not report net income. The amount paid could
vary slightly based on the amount of outstanding
shares on the record date. The dividend is payable November
12, 2015, to shareholders of record on October 28, 2015.
Selected operating statistics for the first quarter of fiscal
2016 compared with the prior year periods are shown below:
13 Weeks Ended August 29, 2015
August 30, 2014 Dozen Eggs Sold (000) 258,774 251,684 Dozen
Eggs Produced (000) 202,648 192,216
% Specialty Sales
(dozens including co-pack)
24.5 % 20.8 %
% Specialty Sales
(dollars including co-pack)
27.1 % 29.8 %
Net Average Selling Price (dozen)
$ 2.243 $ 1.354 Feed Cost (dozen) $ 0.419 $ 0.484
Cal-Maine Foods, Inc. is primarily engaged in the production,
grading, packing and sale of fresh shell eggs, including
conventional, cage-free, organic and nutritionally-enhanced eggs.
The Company, which is headquartered in Jackson,
Mississippi, is the largest producer and distributor of fresh shell
eggs in the United States and sells the majority of
its shell eggs in approximately 29 states across the
southwestern, southeastern, mid-western and mid-Atlantic regions of
the United States.
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) risks, changes or obligations that could
result from our future acquisition of new flocks or
businesses, and (v) adverse results in pending litigation
matters. SEC filings may be obtained from the SEC or the
Company’s website, www.calmainefoods.com. Readers are
cautioned not to place undue reliance on forward-looking
statements because, while we believe the assumptions
on which the forward-looking statements are based are
reasonable, there can be no assurance that these
forward-looking statements will prove to be accurate.
Further, the forward-looking statements included herein
are only made as of the respective dates thereof, or if
no date is stated, as of the date hereof. Except as
otherwise required by law, we disclaim any intent or
obligation to update publicly these forward-looking
statements, whether as a result of new information, future
events or otherwise.
CAL-MAINE FOODS, INC. AND
SUBSIDIARIES
FINANCIAL HIGHLIGHTS
SUMMARY STATEMENTS OF INCOME
(Unaudited)
(In thousands, except per share
amounts)
13 Weeks Ended
August 29,2015
August 30,2014
Net sales $ 609,895 $ 356,944 Gross profit 263,071 81,101 Operating
income 220,108 41,163 Other income 549 1,623 Income before income
taxes and noncontrolling interest 220,657 42,786 Income before
income taxes attributable to Cal-Maine Foods, Inc. 219,590 42,256
Net income $ 143,023 $ 27,655 Net income per
share:
Basic
$ 2.97 $ 0.57
Diluted
$ 2.95 $ 0.57 Weighted average shares outstanding:
Basic
48,163 48,130 Diluted 48,498 48,399
SUMMARY BALANCE SHEETS
August 29,2015
May 30,2015
ASSETS Cash and short-term investments $ 355,853 $ 258,628
Receivables 184,925 101,977 Inventories 148,591 146,260 Prepaid
expenses and other current assets 4,347 2,099 Current
assets 693,716 508,964 Property, plant and equipment (net)
363,705 358,790 Other noncurrent assets 78,745 60,899
Total assets $ 1,136,166 $ 928,653 LIABILITIES AND
STOCKHOLDERS' EQUITY Accounts payable and accrued expenses $
134,548 $ 86,193 Current maturities of long-term debt 7,959 10,065
Income taxes payable 76,735 5,288 Deferred income taxes
30,376 30,391 Current liabilities 249,618 131,937
Long-term debt, less current maturities 34,591 40,795 Deferred
income taxes and other liabilities 50,425 51,359 Stockholders'
equity 801,532 704,562 Total liabilities and
stockholders' equity $ 1,136,166 $ 928,653
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version on businesswire.com: http://www.businesswire.com/news/home/20150928005190/en/
Cal-Maine Foods, Inc.Dolph Baker, 601-948-6813Chairman,
President and CEOorTimothy A. Dawson, 601-948-6813Vice President
and CFO
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