Cal-Maine Foods, Inc. (NASDAQ: CALM) today announced results for the first quarter of fiscal 2013 ended September 1, 2012.
For the first quarter of fiscal 2013, net sales were $272.9 million, compared with net sales of $243.8 million for the first quarter of fiscal 2012. The Company reported net income of $9.4 million, or $0.39 per basic and diluted share, for the first quarter of fiscal 2013 compared with net income of $3.1 million, or $0.13 per basic and diluted share, for the year-earlier period.
Dolph Baker, chairman, president and chief executive officer of Cal-Maine Foods, Inc., stated, “We are pleased with our financial and operating performance for the first quarter of fiscal 2013. These results reflect a strong start to our fiscal year in what is typically our most challenging quarter. Revenues were up 12.0 percent over the same period last year, while volumes were at about the same level, reflecting higher average market prices for shell eggs. Our specialty egg sales have continued to trend higher and represented over 16.1 percent of dozens sold and 23.5 percent of total shell egg sales revenue for the quarter. We will continue to identify new market opportunities to expand our specialty egg business and meet growing customer demand.
“We have remained focused on running efficient operations in spite of higher feed costs than we experienced a year ago,” Baker noted. “The damage to the national corn and grain crops caused by the extreme summer drought conditions will likely keep our feed costs near record high levels in fiscal 2013.
“As previously announced on July 18, 2012, we acquired the egg production assets of Pilgrim’s Pride Corporation, adding two additional production complexes with capacity for approximately 1.4 million laying hens located near Pittsburg, Texas. We are pleased with the progress we have made in integrating these facilities into our operations and we are excited about the expansion of our business, particularly with our Texas customers.
“We look forward to the opportunities ahead for Cal-Maine Foods in fiscal 2013. Current market conditions are favorable with strong retail demand for eggs, especially as we head into the busy holiday season. We believe we are well positioned to succeed in this environment. We have a proven management team focused on executing our strategy to be an efficient low cost producer, expand our specialty egg business, provide exceptional customer service and identify suitable acquisitions to enhance our growth and build shareholder value,” added Baker.
For the first quarter of fiscal 2013, Cal-Maine Foods will pay a cash dividend of approximately $0.13 per share to holders of its common and Class A common stock. The amount paid could vary slightly based on the amount of outstanding shares on the record date. The dividend is payable November 15, 2012, to shareholders of record on October 31, 2012.
Selected operating statistics for the first quarter of fiscal 2013 compared with the prior year period are shown below:
|13 Weeks Ended|
|Dozen Eggs Sold (000)||210,061||208,096|
|Dozen Eggs Produced (000)||157,902||159,443|
|% Specialty Sales (dozen)|
|Net Average Selling Price (dozen)||$||1.238||$||1.117|
|Feed Cost (dozen)||$||0.510||$||0.484|
|% Specialty Sales (dollars)||23.5||%||23.6||%|
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
SUMMARY STATEMENTS OF INCOME
(In thousands, except per share amounts)
13 Weeks Ended
|Income before income taxes||14,701||4,733|
|Net income per share:|
|Weighted average shares outstanding|
SUMMARY BALANCE SHEETS
|Cash and short-term investments||$||209,274||$||260,751|
|Prepaid expenses and other current assets||3,049||1,525|
|Property, plant and equipment (net)||237,973||222,615|
|Other noncurrent assets|
|LIABILITIES AND STOCKHOLDERS' EQUITY|
|Accounts payable and accrued expenses||$||83,675||$||103,724|
|Current maturities of long-term debt||11,458||11,458|
|Deferred income taxes||27,376||25,474|
|Long-term debt, less current maturities||62,036||64,762|
|Deferred income taxes and other liabilities||42,457||41,570|
|Total liabilities and stockholders' equity||$||712,953||$||726,316|