ATLANTA, Aug. 16, 2011 /PRNewswire/ -- Cagle's, Inc. (NYSE
Amex: CGL.A) reported a net (loss) of $(5.7)
million or $(1.24) per share
for the quarter ended July 2, 2011
compared to net income of $3.5
million or $0.75 per share for
the quarter ended July 3, 2010.
Net sales for the first quarter were $81.9 million, up 4.2% from $78.6 million, reflecting an increase in pounds
sold of 14.9% and a decrease in sales price for poultry of
$0.059 per pound as compared to the
same period of fiscal 2011. Quoted market price changes for
products for the first quarter of fiscal 2012 versus the same
period last year were: leg quarters increased 27.4%, boneless
breast decreased 17.6%, breast tenders decreased 11.8%, wing
markets decreased 40.3%, and whole birds without giblets were
unchanged.
Cost of sales for the first quarter of fiscal 2012 increased
27.1% as compared with the same period last year, from $68.2 million to $86.7
million. Feed ingredient prices for broilers processed in
the first quarter of fiscal 2012, which represented 46% of the
total cost of sales, increased 68.3% or $16.3 million as compared to the first quarter of
fiscal 2011.
Cagle's and the industry's profitability continue to be
challenged by high feed cost accentuated by broiler markets
pressured by over production. Effective the end of August Cagle's will have executed a further cut
back in production at its Pine Mountain
Valley plant that will result in the company processing 22%
less head than capacity. Towards the end of July our industry had
begun to react in similar fashion with egg sets 6% less than the
same period in 2010. These industry cut backs should have a
positive effect on markets and final margins in the coming months.
Cagle's, Inc.
/s/ J. Douglas Cagle
J. Douglas Cagle
Chairman, Chief Executive Officer
and President
This press release contains forward-looking statements based
on management's current views and assumptions. Actual results and
events may differ. For a discussion of these matters, please refer
to the "Forward-Looking Statements" in Item 7 of the Company's
2011 SEC Form 10-K Annual Report and please refer to the cautionary
statement found in Management's Discussion and Analysis of
Financial Condition and Results of Operations in Part I,
Item 2 of the Quarterly Report on SEC Form 10-Q for the
Company's first quarter ended July 2,
2011.
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Cagle's,
Inc.
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Condensed
Consolidated Statements of Operations
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(In
Thousands, except net income per share)
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13
Weeks Ended
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13
Weeks Ended
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July 2,
2011
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July 3,
2010
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Net Sales
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$
81,873
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$
78,571
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Costs and
Expenses:
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Cost of Sales
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86,683
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68,215
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Selling and
Delivery
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2,220
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2,447
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General and
Administrative
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1,507
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2,098
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Total Costs and
Expenses
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90,410
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72,760
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Operating Income
(Loss)
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(8,537)
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5,811
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Other Income
(Expense):
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Interest
Expense
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(420)
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(381)
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Other Income
(Expense), Net
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(4)
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4
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Total Other Expense,
Net
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(424)
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(377)
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Income (Loss) Before Income
Taxes
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(8,961)
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5,434
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Income Tax Expense
(Benefit)
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(3,226)
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1,956
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Net Income (Loss)
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$
(5,735)
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$
3,478
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Weighted-Average Common Shares
Outstanding
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4,616
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4,616
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Net Income (Loss) Per Common
Share
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$
(1.24)
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$
0.75
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Cagle's,
Inc.
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Condensed
Consolidated Balance Sheets
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(In
Thousands)
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July 2, 2011
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April
2, 2011
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ASSETS
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Cash
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$
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950
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$
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1,370
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Trade Accounts Receivable,
net
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15,100
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15,882
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Inventories
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33,996
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31,990
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Other Current
Assets
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562
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307
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Total Current
Assets
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50,608
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49,549
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Property, Plant and Equipment
(net)
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32,245
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33,245
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Other Assets
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9,172
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7,519
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TOTAL ASSETS
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$
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92,025
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$
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90,313
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LIABILITIES & STOCKHOLDERS'
EQUITY
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Current Maturities of Long-term
Debt
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$
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10,401
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$
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9,127
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Accounts Payable
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26,917
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22,346
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Other Current
Liabilities
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5,672
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7,791
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Total Current
Liabilities
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42,990
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39,264
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Long-Term Debt
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20,001
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16,280
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Total Stockholders'
Equity
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29,034
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34,769
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TOTAL LIABILITIES &
STOCKHOLDERS' EQUITY
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$
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92,025
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$
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90,313
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SOURCE Cagle's, Inc.