Cal-Maine Foods, Inc. (NASDAQ: CALM) today reported
results for the third quarter and nine months ended
February 28, 2015.
Net sales for the third quarter of fiscal 2015 were $437.6
million compared with net sales of $395.5 million for the third
quarter of fiscal 2014. The Company reported net income of
$50.9 million, or $1.06 per basic share and $1.05 per diluted
share, for the third quarter of fiscal 2015 compared with
$42.9 million, or $0.89 per basic and diluted share, for the
third quarter of fiscal 2014. The third quarter of fiscal 2014
included $4.0 million in other income and a $4.8 million tax
reduction related to the Company’s purchase of the remaining 50
percent interest in Delta Egg Farm, LLC.
For the first nine months of fiscal 2015, net sales were
$1,173.1 million compared with net sales of $1,069.3 million for
the prior-year period. The Company reported net income of $115.1
million, or $2.39 per basic share and $2.38 per diluted
share, for the first nine months of fiscal 2015 compared with net
income of $77.7 million, or $1.61 per basic and diluted
share, for the same period in fiscal 2014.
The net income per share numbers for the third quarter and nine
month 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, “Cal-Maine Foods delivered a very
solid performance for the third quarter of fiscal 2015 with our net
sales up 10.6 percent over the same period last year. The higher
sales reflect improved volumes through the holiday season with
total dozen shell eggs sold up 5.2 percent over the same period
last year. While the national hen flock has reached record levels,
the strong demand for shell eggs from the three major market
sectors - retail, egg products and exports - was enough to absorb
the market’s increased supply. We also benefited from 6.1 percent
higher average selling prices compared with the third quarter of
fiscal 2014.
“Specialty egg volumes have increased throughout this fiscal
year and were up 22.6 percent for the third quarter compared with
the prior year,” added Baker. “Specialty egg sales accounted for
20.3 percent of dozen shell eggs sold and 26.9 percent of total
shell egg sales revenue for the third quarter of fiscal 2015,
compared with 17.4 percent of dozen shell eggs sold and 23.7
percent of total shell egg sales revenue for the third quarter of
fiscal 2014. We believe the strong performance of specialty eggs
will continue to be a key driver of our growth as we capitalize on
favorable consumer demand trends. We provide a wide variety of
healthy choices that meet this demand. We will continue to make the
appropriate investments to expand our production capabilities for
specialty eggs and identify ways to further enhance our product
mix.
“Overall, our operations have continued to perform very well in
the third quarter with more favorable market conditions than we
experienced a year ago. Our feed costs per dozen produced were 5.0
percent lower than the third quarter of fiscal 2014 and 9.1 percent
lower through the first nine months of this fiscal year. These
lower costs reflect the record corn and soybean crops harvested in
the United States last fall, which sufficiently restocked grain
supplies ahead of this year’s planting season. Operating income for
the third quarter of fiscal 2015 was $72.0 million compared with
$46.6 million for the third quarter of fiscal 2014. These results
reflect our lower feed and production costs and consistent
execution of our strategy to be an efficient, low-cost producer
across all of the Company’s operations. We continue to move forward
with our expansion projects in Florida, Kansas, Kentucky and Texas,
and we look forward to the growth opportunities the enhanced
production and improved efficiencies will provide the Company. The
additional capacity for specialty eggs at both the Kansas and
Kentucky facilities will further support our ability to meet the
growing demands of our customers.”
Baker added, “Everyone in the egg industry has been focused on
the January 1, 2015, effective date for the implementation of
Proposition 2 and Assembly Bill 1437 related to egg production
standards and sales in California. As expected, this event created
an initial disruption in market supply in January, with a higher
than normal spike in market prices for the California market.
Prices have since moderated, and the shell egg market in California
seems to be striking a more favorable balance of supply and demand
as producers adjust to the new standards.
“We are very pleased with our performance to date in fiscal
2015. Looking ahead, we will continue to monitor market conditions
that could influence our business, including the changing situation
in California as well as the national hen supply. And, as always,
we continue to closely watch the grain markets. Regardless of
market conditions, we will manage our operations with efficiency
and work hard to meet the demands of our customers. We look forward
to the completion of another successful year for Cal-Maine Foods,”
Baker concluded.
For the third quarter of fiscal 2015, Cal-Maine Foods will pay a
cash dividend of approximately $0.350 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 May
14, 2015, to shareholders of record on April 29, 2015.
Selected operating statistics for the third quarter and year to
date periods of fiscal 2015 compared with the prior year periods
are shown below:
13 Weeks Ended
39 Weeks Ended
February 28,
2015
March 1,
2014
February 28,
2015
March 1,
2014
Dozen Eggs Sold (000)
283,032
268,942
798,203 764,257 Dozen Eggs Produced (000) 203,581 189,407 597,080
554,672 % Specialty Sales (dozen) 20.3 % 17.4 % 19.4 % 16.7 % %
Specialty Sales (dollars) 26.9 % 23.7 % 26.8 % 24.0 %
Net Average Selling Price (dozen)
$ 1.503 $ 1.416 $ 1.415 $ 1.338 Feed Cost (dozen) $ 0.436 $ 0.459 $
0.450 $ 0.495
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
SUBSIDIARIESFINANCIAL HIGHLIGHTS
SUMMARY STATEMENTS OF
INCOME(Unaudited)(In thousands, except per share amounts)
13 Weeks Ended
39 Weeks Ended
February 28,
2015
March 1,
2014
February 28,
2015
March 1,
2014
Net sales $ 437,556 $ 395,522 $ 1,173,117 $ 1,069,325 Gross profit
112,517 91,895 286,327 211,473 Operating income 72,025 46,596
168,785 98,524 Other income 5,049 12,003 7,585 14,772 Income before
income taxes and noncontrolling interest 77,074 58,599 176,370
113,296 Income before income taxes attributable to Cal-Maine Foods,
Inc. 76,997 58,496 175,505 112,910 Net income $ 50,882 $
42,853 $ 115,140 $ 77,715 Net income per share: Basic $ 1.06
$ 0.89 $ 2.39 $ 1.61 Diluted $ 1.05 $ 0.89 $ 2.38 $ 1.61 Weighted
average shares outstanding Basic 48,137 48,095
48,134 48,122 Diluted 48,447 48,324
48,416 48,309
SUMMARY BALANCE SHEETS
February 28,
2015
May 31,
2014
ASSETS Cash and short-term investments $ 237,838 $ 209,259
Receivables 106,368 87,516 Inventories 146,230 146,117 Prepaid
expenses and other current assets 3,380 2,501 Current
assets 493,816 445,393 Property, plant and equipment (net)
348,782 314,935 Other noncurrent assets 58,151 51,333
Total assets $ 900,749 $ 811,661 LIABILITIES AND
STOCKHOLDERS' EQUITY Accounts payable and accrued expenses $ 93,877
$ 80,434 Current maturities of long-term debt 10,047 10,216
Deferred income taxes 31,963 30,451 Current
liabilities 135,887 121,101 Long-term debt, less current
maturities 43,320 50,877 Deferred income taxes and other
liabilities 48,616 44,938 Stockholders' equity 672,926
594,745 Total liabilities and stockholders' equity $ 900,749
$ 811,661
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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