Cal-Maine Foods, Inc. (NASDAQ: CALM) today reported
results for the fourth quarter and fiscal year ended May
30, 2015.
Net sales for the fourth quarter of fiscal 2015 were $403.0
million, compared with net sales of $371.6 million for the fourth
quarter of fiscal 2014. The Company reported net income of
$46.1 million, or $0.96 per basic share and $0.95 per diluted
share, for the fourth quarter of fiscal 2015, compared with
$31.5 million, or $0.66 per basic share and $0.65 per diluted
share, for the fourth quarter of fiscal 2014.
For the fiscal year 2015, net sales were $1,576.1 million,
compared with net sales of $1,440.9 million for the prior-year
period. The Company reported net income of $161.3 million, or
$3.35 per basic share and $3.33 per diluted share, for
fiscal 2015, compared with net income of $109.2 million, or
$2.27 per basic share and $2.26 per diluted share, for
the same period in fiscal 2014.
The net income per share numbers for the fourth quarter and year
to date periods for fiscal 2015 and fiscal 2014 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
performance for the fourth quarter of fiscal 2015 marked a strong
finish to another record year for Cal-Maine Foods. Sales for the
fourth quarter were up 8.5 percent over the prior year, reflecting
a 6.2 percent increase in total dozen shell eggs sold and 2.6
percent higher average selling prices compared with the fourth
quarter of fiscal 2014.
“Throughout fiscal 2015, we have demonstrated consistent
execution of our growth strategy with favorable results. Our sales
for the year surpassed the previous year’s record by 9.4 percent,
supported by strong customer demand from three major market sectors
- retail, egg products and exports. We sold 1,063 million dozen
shell eggs in fiscal 2015, up 4.9 percent over the prior year and a
new annual record for Cal-Maine Foods. We also reported the highest
annual net income in the Company’s history.
“Specialty egg sales were a key driver of our performance for
the year as we continued to expand our market reach. For fiscal
2015, sales of specialty eggs accounted for 19.8 percent of our
total number of shell eggs sold and 27.2 percent of our shell eggs
revenue. With the growing consumer demand for specialty eggs, we
have also pursued additional opportunities to further enhance our
product mix and offer a wide variety of healthy choices. In April,
we announced a new production joint venture in Texas with Rose Acre
Farms to build a state of the art shell egg production complex with
capacity for approximately 1.8 million cage-free laying hens.
Construction of the complex has commenced, and the initial flocks
are now expected to be placed in November 2015. This joint venture,
Red River Valley Egg Farm, LLC, provides a unique opportunity to
capitalize on the growing demand for specialty eggs and better
serve customers who are looking for a trusted supplier of cage-free
eggs.”
Baker added, “Overall, our operations ran very well in fiscal
2015 as we were able to benefit from more favorable market
conditions for most of the year. We reported operating income of
$235.3 million, compared with $146.1 million for the prior year.
Our management team did an exceptional job in managing the critical
areas of our operations that make Cal-Maine Foods an efficient,
low-cost producer. Additionally, our average feed costs for the
year declined 10.9 percent due to an abundant supply of grain from
the record harvest of corn and soybean crops last fall. Looking
ahead, we should have an adequate supply of our primary feed
ingredients, but expect that prices will be volatile in the year
ahead.
“The recent outbreaks of Avian Influenza (AI) in the upper
Midwestern United States this spring have had a significant impact
on our industry. Due to the outbreaks, it is estimated that the
national flock has been reduced by over 40 million laying hens and
pullets, or approximately 13 percent. As a result of the reduced
supply, egg prices have moved significantly higher in recent
months. While the warmer summer months seem to have reduced further
transmission of AI, egg prices are expected to remain high until
the national laying hen flock can be replenished.
“There have been no positive tests for AI at any of the
Cal-Maine Foods locations. However, we have significantly increased
our biosecurity measures at every location, and we continue to
monitor the situation every day. We are also working closely with
the egg industry associations and government health officials to
identify ways to mitigate the risk of future outbreaks.”
Baker concluded, “While AI has created uncertain market
conditions for our industry, we remain focused on managing our
operations as efficiently and safely as possible. We are pleased
with our execution to date, and believe we have a proven strategy
for continued success in the year ahead. We are well positioned to
leverage the additional capacity from our recent joint ventures and
other expansion projects underway in Florida, Kansas, Kentucky and
Texas. Our strong balance sheet also provides the flexibility to
pursue new growth opportunities that will improve our operations.
And, we will continue to execute our growth strategy to enhance our
product mix, including additional opportunities to market and sell
specialty eggs. Above all, we will work hard to meet the changing
demands of our customers with outstanding service. We look forward
to the opportunities ahead for Cal-Maine Foods in fiscal 2016.”
For the fourth quarter of fiscal 2015, Cal-Maine Foods will pay
a cash dividend of approximately $0.317 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 August
18, 2015, to shareholders of record on August 3, 2015.
Selected operating statistics for the fourth quarter and year to
date periods of fiscal 2015 compared with the prior year periods
are shown below:
13 Weeks
Ended 52 Weeks Ended May 30, 2015 May 31,
2014 May 30, 2015 May 31, 2014 Dozen Eggs Sold
(000) 264,883 249,439 1,063,086 1,013,696 Dozen Eggs Produced (000)
201,763 195,630 798,842 750,302 % Specialty Sales (dozen)
21.0% 18.7% 19.8% 17.2% % Specialty Sales (dollars) 28.2% 25.2%
27.2% 24.3%
Net Average Selling Price (dozen)
$ 1.471 $ 1.433 $ 1.429 $ 1.362 Feed Cost (dozen) $ 0.406 $ 0.485 $
0.439 $ 0.493
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 52 Weeks Ended
May 30,2015
May 31,2014
May 30,2015
May 31,2014
Net sales $ 403,011 $ 371,582 $ 1,576,128 $ 1,440,907 Gross profit
109,394 91,291 395,721 302,764 Operating income 66,550 47,528
235,335 146,052 Other income 3,629 1,018 11,214 15,790 Income
before income taxes and noncontrolling interest 70,179 48,546
246,549 161,842 Income before income taxes attributable to
Cal-Maine Foods, Inc. 70,017 48,332 245,522 161,242 Net
income $ 46,114 $ 31,492 $ 161,254 $ 109,207 Net income per
share: Basic $ 0.96 $ 0.66 $ 3.35 $ 2.27 Diluted $ 0.95 $ 0.65 $
3.33 $ 2.26 Weighted average shares outstanding Basic 48,142
48,116 48,136 48,095 Diluted 48,495
48,403 48,437 48,297
SUMMARY BALANCE SHEETS
May 30,2015
May 31,2014
ASSETS Cash and short-term investments $ 258,628 $ 209,259
Receivables 101,977 87,516 Inventories 146,260 146,117 Prepaid
expenses and other current assets 2,099 2,501 Current
assets 508,964 445,393 Property, plant and equipment (net)
358,790 314,935 Other noncurrent assets 60,899 51,333
Total assets $ 928,653 $ 811,661 LIABILITIES AND
STOCKHOLDERS' EQUITY Accounts payable and accrued expenses $ 91,481
$ 80,434 Current maturities of long-term debt 10,047 10,216
Deferred income taxes 30,391 30,451 Current
liabilities 131,919 121,101 Long-term debt, less current
maturities 40,813 50,877 Deferred income taxes and other
liabilities 51,359 44,938 Stockholders' equity 704,562
594,745 Total liabilities and stockholders' equity $ 928,653
$ 811,661
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version on businesswire.com: http://www.businesswire.com/news/home/20150720005284/en/
Cal-Maine Foods, Inc.Dolph Baker, Chairman, President and CEO,
601-948-6813orTimothy A. Dawson, Vice President and CFO,
601-948-6813
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