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Exhibit 99.1

 

Atlanta, Georgia

June 3, 2011

 

NYSE Amex:  CGL.A

 

PRESS RELEASE

FOR IMMEDIATE RELEASE

Cagle’s, Inc. Announces Results for the Fiscal Year Ended April 2, 2011

 

Cagle’s, Inc. (CGL.A) reported a net (loss) of $(0.6) million or $(0.12) per share for fiscal year 2011 compared to net income of $2.5 million or $0.55 per share for fiscal year 2010.

 

Net sales increased to $310.1 million, up 1% from fiscal 2010, reflecting an increase in sales pounds of 2.6% and a decrease in sales price of $.0217 per pound. Quoted markets were variable with boneless breast up 6.8%, tenders up 5.3%, wings down 21.7% and leg quarters down 4.0%. Cost of sales for the fiscal year increased $7.5 million or 2.6% from last year reflecting higher feed cost of $18 per ton or 7.2%. Fourth quarter feed cost rose $82 per ton or 34% above the same quarter of last year, increasing our cost of sales for the fourth quarter by $11.7 million. For fiscal 2011 our feed cost increased by $17.7 million or 18.5% versus fiscal 2010 driven by a 75% increase in our cost of corn.

 

The first six months of fiscal 2011 provided profitable returns for our company with net income of $6.6 million. However, in the last two quarters of the year, we experienced the aforementioned feed price increase without a corresponding increase in market prices producing losses in both our third and fourth quarters. Feed prices continue to present a difficult challenge to overcome. Our industry must lower supply in order to offset reduced demand and to support higher market prices. Cagle’s continues to process at 80% of capacity at its Pine Mountain Valley deboning facility and does not contemplate any increase in the foreseeable future.

 

Industry egg sets are beginning to reflect restraint with the latest USDA Broiler Hatchery statement reporting egg sets at 98%, or 3.2 million less eggs for the week ending May 14, 2011.  The reported reduction in egg sets would equate to a reduction in supply of approximately 14.4 million pounds of ready to cook poultry per week. Continued reductions of this magnitude or larger would be very supportive of industry prices and margins.

 

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 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 third quarter ended January 1, 2011.

 



 

Cagle’s, Inc.

Condensed Consolidated Statements of Operations

(In Thousands, except net income per share)

 

 

 

52 Weeks
Ended

 

53 Weeks
Ended

 

 

 

April 2, 2011

 

April 3, 2010

 

 

 

 

 

 

 

Net Sales

 

$

310,098

 

$

307,091

 

Costs and Expenses:

 

 

 

 

 

Cost of Sales

 

293,442

 

285,895

 

Selling and Delivery

 

9,886

 

8,535

 

General and Administrative

 

6,012

 

7,352

 

Total Costs and Expenses

 

309,340

 

301,782

 

 

 

 

 

 

 

Operating Income

 

758

 

5,309

 

 

 

 

 

 

 

Other Income (Expense):

 

 

 

 

 

Interest Expense

 

(1,267

)

(1,605

)

Other Income (Expense), Net

 

167

 

71

 

Total Other Income (Expense), Net

 

(1,100

)

(1,534

)

 

 

 

 

 

 

Income (Loss) Before Income Taxes

 

(342

)

3,775

 

 

 

 

 

 

 

Income Tax Expense

 

224

 

1,238

 

 

 

 

 

 

 

Net Income (Loss)

 

$

(566

)

$

2,537

 

 

 

 

 

 

 

Weighted-Average Common Shares Outstanding

 

4,616

 

4,617

 

Net Income (Loss) Per Common Share

 

$

(0.12

)

$

0.55

 

 



 

Cagle’s, Inc.

Condensed Consolidated Balance Sheets

(In Thousands)

 

 

 

April 2, 2011

 

April 3, 2010

 

ASSETS

 

 

 

 

 

 

 

 

 

 

 

Cash

 

$

1,370

 

$

1,872

 

Trade Accounts Receivable, net

 

15,882

 

15,769

 

Inventories

 

31,990

 

26,065

 

Other Current Assets

 

307

 

305

 

Total Current Assets

 

49,549

 

44,011

 

 

 

 

 

 

 

Property, Plant and Equipment (net)

 

33,245

 

34,869

 

 

 

 

 

 

 

Other Assets

 

7,519

 

8,739

 

 

 

 

 

 

 

TOTAL ASSETS

 

$

90,313

 

$

87,619

 

 

 

 

 

 

 

LIABILITIES & STOCKHOLDERS’ EQUITY

 

 

 

 

 

 

 

 

 

 

 

Current Maturities of Long-term Debt

 

$

9,127

 

$

2,685

 

Accounts Payable

 

22,346

 

16,142

 

Other Current Liabilities

 

7,791

 

8,424

 

Total Current Liabilities

 

39,264

 

27,251

 

 

 

 

 

 

 

Long-Term Debt

 

16,280

 

25,033

 

 

 

 

 

 

 

Total Stockholders’ Equity

 

34,769

 

35,335

 

 

 

 

 

 

 

TOTAL LIABILITIES & STOCKHOLDERS’ EQUITY

 

$

90,313

 

$

87,619