Cal-Maine Foods, Inc. (MM) (NASDAQ:CALM)
Historical Stock Chart
2 Years : From May 2011 to May 2013
Cal-Maine Foods, Inc. (NASDAQ: CALM) today reported results for
the third quarter and nine months ended February 25, 2012.
Net sales for the third quarter of fiscal 2012 were $303.7 million
compared with net sales of $274.7 million for the same quarter of fiscal
2011. The Company reported net income of $26.1 million, or $1.09 per
basic share, for the third quarter of fiscal 2012 compared with net
income of $33.6 million, or $1.41 per basic share, for the third quarter
of fiscal 2011. The results for the third quarter of fiscal 2011 include
in other income a one-time cash distribution of approximately $4.8
million pre-tax ($3.2 million after tax) or $0.13 per basic share,
received in exchange for the Company’s non-voting stock ownership in the
Eggland’s Best, Inc. cooperative.
For the first nine months of fiscal 2012, net sales were $837.9 million
compared with net sales of $699.6 million for the prior-year period. The
Company reported net income of $52.5 million, or $2.20 per basic share,
for the first nine months of fiscal 2012 compared with net income of
$53.6 million, or $2.25 per basic share, for the prior-year period.
“We are pleased with Cal-Maine’s financial and operating performance for
the third quarter of fiscal 2012,” said Dolph Baker, president and chief
executive officer of Cal-Maine Foods, Inc. “Total sales for the quarter
were up 10.6 percent compared with the same period a year ago,
reflecting higher average selling prices and good retail demand for
shell eggs. We benefited from record high market prices for shell eggs
during the strong holiday selling season. However, prices adjusted down
approximately 35 percent in the ten market days after their December
peak level due to typically slower post-holiday demand trends and warmer
weather across the country. Overall, average selling prices for shell
eggs were up 3.3 percent over the third quarter of fiscal 2011, and
specialty egg prices were up 9.0 percent compared with the same period
last year.
“Our volumes also improved as dozen eggs produced by Cal-Maine Foods
increased 3.0 percent and dozen eggs sold were up 6.5 percent. Sales of
specialty eggs represented 23.8 percent of shell egg revenue for the
third quarter and accounted for 16.8 percent of total dozen eggs sold.
Specialty eggs, which include nutritionally enhanced, cage-free and
organic eggs, have become an important focus of our growth strategy
as we have been at the forefront of meeting the growing consumer demand
for these products. Additionally, specialty eggs have higher and less
cyclical retail selling prices.
“Our feed costs have continued to affect our production costs in fiscal
2012,” added Baker. “For the third quarter, feed costs were up 4.5 cents
per dozen, or 11.1 percent, compared with the third quarter of
fiscal 2011. We expect feed costs will remain very high and volatile
throughout the summer of calendar 2012 due to tight supplies of corn and
soybeans, our primary feed ingredients. However, all of Cal-Maine Foods’
operations have continued to run well and our management team is focused
on managing the aspects of our business we can control and improving
efficiencies where possible.
“We believe we are well positioned for another successful year for
Cal-Maine Foods with a proven management team, efficient operations and
a strong balance sheet to support our growth strategy,” Baker concluded.
For the third quarter of fiscal 2012, Cal-Maine will pay a cash dividend
of approximately $0.364 per share to holders of its common and Class A
common stock. The amount paid could vary slightly based on the amount of
outstanding shares on the record date. The dividend is payable
May 10, 2012, to shareholders of record on April 25, 2012.
Selected operating statistics for the third quarter and first nine
months of fiscal 2012 compared with the prior-year periods are shown
below:
13 Weeks Ended
39 Weeks Ended
February 25,
2012
February 26,
2011
February 25,
2012
February 26,
2011
Dozen Eggs Sold (000)
229,235
215,233
655,463
615,257
Dozen Eggs Produced (000)
166,109
161,295
491,785
476,388
% Specialty Sales (dozen)
16.8
%
17.5
%
16.3
%
16.0
%
Net Average Selling Price (dozen)
$
1.275
$
1.234
$
1.224
$
1.090
Feed Cost (dozen)
$
0.449
$
0.404
$
0.466
$
0.376
% Specialty Sales (dollars)
23.8
%
23.5
%
23.4
%
23.9
%
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 market prices of shell eggs and feed
costs, (iv) 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
39 Weeks Ended
February 25,
February 26,
February 25,
February 26,
2012
2011
2012
2011
Net sales
$
303,660
$
274,674
$
837,871
$
699,600
Gross profit
65,149
65,580
160,427
143,531
Operating income
34,939
38,961
76,569
69,785
Other income
5,636
11,573
4,747
10,232
Income before income taxes
40,575
50,534
81,316
80,017
Net income
$
26,102
$
33,619
$
52,479
$
53,568
Net income per common share:
Basic
$
1.09
$
1.41
$
2.20
$
2.25
Diluted
$
1.09
$
1.40
$
2.19
$
2.24
Weighted average shares outstanding:
Basic
23,874
23,861
23,871
23,852
Diluted
23,949
23,943
23,948
23,941
SUMMARY BALANCE SHEETS
February 25,
2012
May 28,
2011
ASSETS
Cash and short-term investments
$
225,701
$
176,429
Receivables
66,339
62,790
Inventories
118,925
110,021
Prepaid expenses and other current assets
6,094
5,801
Current assets
417,059
355,041
Property, plant and equipment (net)
222,176
224,887
Other noncurrent assets
56,162
60,915
Total assets
$
695,397
$
640,843
LIABILITIES AND STOCKHOLDERS' EQUITY
Accounts payable and accrued expenses
$
98,516
$
71,969
Current maturities of long-term debt
11,458
11,743
Deferred income taxes
24,093
23,770
Current liabilities
134,067
107,482
Long-term debt, less current maturities
67,488
76,418
Deferred income taxes and other liabilities
40,209
38,066
Stockholders' equity
453,633
418,877
Total liabilities and stockholders' equity
$
695,397
$
640,843
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