Cal-Maine Foods' fiscal Q2 net income up 53.3% year-over-year to US$23.3M driven by strong seasonal retail demand for eggs, higher selling prices; net sales up 25.7% to US$534.2M
Andrew Rogers
JACKSON, Mississippi
,
December 27, 2011
(press release)
–
Cal-Maine Foods, Inc.
today announced results for the second quarter and six months ended November 26, 2011.
Net sales for the second quarter of fiscal 2012 were $290.4 million compared with net sales of $234.5 million for the same quarter of fiscal 2011. The Company reported net income of $23.3 million, or $0.97 per basic share, for the second quarter of fiscal 2012 compared with net income of $15.2 million, or $0.64 per basic share, for the second quarter of fiscal 2011. For the first six months of fiscal 2012, net sales were $534.2 million compared with net sales of $424.9 million for the prior-year period. The Company reported net income of $26.4 million, or $1.11 per basic share, for the first half of fiscal 2012 compared with net income of $19.9 million, or $0.84 per basic share, for the year-earlier period. Dolph Baker, president and chief executive officer of Cal-Maine Foods, Inc., stated, "We are pleased with our results for the second quarter and the favorable trends in Cal-Maine's business through the first half of fiscal 2012. Our higher sales reflect strong seasonal retail demand for eggs as well as higher average selling prices. We typically sell more eggs around the holidays and demand has been very good this fall with total dozen eggs sold up six percent compared with the same period last year. Sales of specialty eggs, which have a higher selling price, accounted for approximately 23 percent of shell egg revenue for the quarter and over 16 percent of total dozens sold. Value-added specialty eggs include nutritionally-enhanced, organic and cage free eggs, and represent a rapidly growing segment of the shell egg market as these products offer alternative choices for consumers with special preferences. "Our production costs have been materially affected by our feed costs, which were up 20 percent compared with the second quarter of fiscal 2011. Prices for corn and soybean meal, our primary feed ingredients, have continued to escalate this fiscal year. However, we are pleased with the efficiency of our operations and our ability to absorb these higher costs and improve our profitability for the quarter. While we have recently seen some easing in grain prices, we still expect our feed costs to be high and volatile for the rest of the fiscal year," added Baker. For the second quarter of fiscal 2012, Cal-Maine will pay a cash dividend of approximately $0.325 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 February 9, 2012, to shareholders of record on January 25, 2012. Selected operating statistics for the second quarter of fiscal 2012 compared with the prior year period are shown below: 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.
13 Weeks Ended 26 Weeks Ended
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November 26, November 27, November 26, November 27,
2011 2010 2011 2010
------------- ------------- ------------- -------------
Dozen Eggs Sold (000) 218,132 206,038 426,228 400,024
Dozen Eggs Produced (000) 166,233 159,749 325,677 315,093
% Specialty Sales (dozen) 16.3% 15.5% 16.0% 15.2%
Net Average Selling Price (dozen) $ 1.272 $ 1.090 $ 1.196 $ 1.012
Feed Cost (Dozen) $ 0.465 $ 0.387 $ 0.474 $ 0.361
% Specialty Sales (dollars) 22.7% 23.0% 23.1% 24.1%
CAL-MAINE FOODS, INC. AND SUBSIDIARIES
FINANCIAL HIGHLIGHTS
SUMMARY STATEMENTS OF INCOME
(Unaudited)
(In thousands, except per share amounts)
13 Weeks Ended 26 Weeks Ended
---------------------------- ------------------------------
November 26, November 27, November 26, November 27,
2011 2010 2011 2010
------------- --------------- --------------- ---------------
Net sales $ 290,369 $ 234,523 $ 534,211 $ 424,926
Gross profit 61,492 45,215 95,278 77,951
Operating income 35,673 22,783 41,630 30,824
Other income (expense) 335 (385) (889) (1,341)
Income before income taxes 36,008 22,398 40,741 29,483
Net income $ 23,260 $ 15,186 $ 26,377 $ 19,949
Net income per common share:
Basic $ 0.97 $ 0.64 $ 1.11 $ 0.84
Diluted $ 0.97 $ 0.63 $ 1.10 $ 0.83
Weighted average shares outstanding:
Basic 23,871 23,853 23,869 23,848
Diluted 23,950 23,944 23,947 23,940
SUMMARY BALANCE SHEETS
November 26, May 28,
2011 2011
------------- ----------
ASSETS
Cash and short-term investments $ 200,144 $ 176,429
Receivables 88,109 62,790
Inventories 114,253 110,021
Prepaid expenses and other current assets 6,604 5,801
------- -------
Current assets 409,110 355,041
Property, plant and equipment (net) 222,600 224,887
Other noncurrent assets 57,013 60,915
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Total assets $ 688,723 $ 640,843
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LIABILITIES AND STOCKHOLDERS' EQUITY
Accounts payable and accrued expenses $ 104,493 $ 71,969
Current maturities of long-term debt 11,458 11,743
Deferred income taxes 25,228 23,770
------- -------
Current liabilities 141,179 107,482
Long-term debt, less current maturities 70,215 76,418
Deferred income taxes and other liabilities 40,483 38,066
Stockholders' equity 436,846 418,877
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Total liabilities and stockholders' equity $ 688,723 $ 640,843
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