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8-K - FORM 8-K - CAL-MAINE FOODS INCv331175_8k.htm

 

 

 

Exhibit 99.1

 

Contacts:

Dolph Baker, Chairman, President and CEO

Timothy A. Dawson, Vice President and CFO

(601) 948-6813

 

CAL-MAINE FOODS, INC. REPORTS SECOND QUARTER FISCAL 2013 RESULTS

 

JACKSON, Miss. (December 31, 2012) ¾ Cal-Maine Foods, Inc. (NASDAQ: CALM) today announced results for the second quarter and six months ended December 1, 2012.

 

Net sales for the second quarter of fiscal 2013 were $328.9 million compared with net sales of $290.4 million for the same quarter of fiscal 2012. The Company reported net income of $14.3 million, or $0.60 per basic share, for the second quarter of fiscal 2013 compared with net income of $23.3 million, or $0.97 per basic share, for the second quarter of fiscal 2012.

 

For the first six months of fiscal 2013, net sales were $601.8 million compared with net sales of $534.2 million for the prior-year period. The Company reported net income of $23.7 million, or $0.99 per basic share, for the first half of fiscal 2013 compared with net income of $26.4 million, or $1.11 per basic share, for the year-earlier period.

 

Dolph Baker, chairman, president and chief executive officer of Cal-Maine Foods, Inc., stated, “We are pleased with the continued growth in sales for the second quarter of fiscal 2013; however, our operating results also reflect challenging market conditions and increased input costs. The higher sales reflect a 9.1 percent growth in dozens sold and a 4.0 percent increase in average selling prices compared with the second quarter of fiscal 2012. Our specialty egg sales accounted for 16.4 percent of dozens sold and 22.9 percent of total shell egg sales revenue for the quarter. Specialty eggs are an important area of focus for Cal-Maine Food’s growth strategy as they continue to gain popularity with consumers looking for healthy choices, and have higher and less cyclical retail selling prices. Specialty egg prices were up 4.8 percent in the second quarter of fiscal 2013 compared with the same period last year.

 

“Our profitability for the second quarter of fiscal 2013 was adversely affected by higher costs for corn and soybean meal, our primary feed ingredients, and additional expenses related to recent acquisitions. The severe drought over the summer months pushed corn prices to record high levels at the end of the summer. While these costs have come off their peak levels, our feed costs per dozen were 23.4 percent higher in the second quarter than the same period a year ago. We expect our feed costs to remain high and volatile for the remainder of fiscal 2013. In addition, according to the most recent USDA report, the number of laying hens on December 1, 2012, was 2.5 percent higher compared with a year ago, affecting the current market supply of eggs. However, the hatch for egg- type chicks has declined over the past two consecutive years and was down 2.9 percent for the first 11 months of calendar 2012 compared with the same period in calendar 2011. While we note these market dynamics for Cal-Maine Foods and our industry, we remain focused on executing our strategy to be an efficient low-cost producer.

 

“We continued to expand our operations in fiscal 2013 as we completed another acquisition during the second quarter,” added Baker. “As previously announced, we acquired the commercial egg production and related assets of Texas-based Maxim Production Co., Inc., including a feed mill and two production complexes with capacity for approximately 3.5 million laying hens with related pullet capacity. In addition, we added related contract capacity for approximately 500,000 laying hens. This transaction, along with our previous acquisition of the Pilgrim’s Pride egg production assets, further advances our strategy to grow our business through selective acquisitions. Our management team is focused on making the right investments to ensure a successful integration of these additional facilities. We are pleased with our progress to date and look forward to the new opportunities ahead for Cal-Maine Foods.”

 

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CAL-MAINE FOODS, INC. POST OFFICE BOX 2960 ▪         JACKSON, MISSISSIPPI 39207
  PHONE  601-948-6813 FAX  601-969-0905

 

 
 

 

CALM Reports Second Quarter Fiscal 2013 Results

Page 2

December 31, 2012

 

 

For the second quarter of fiscal 2013, Cal-Maine Foods will pay a cash dividend of approximately $0.199 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 14, 2013, to shareholders of record on January 30, 2013.

 

Selected operating statistics for the second quarter and year to date periods of fiscal 2013 compared with the prior year periods are shown below:

 

   13 Weeks Ended   26 Weeks Ended 
   December 1, 2012   November 26, 2011   December 1, 2012   November 26, 2011 
Dozen Eggs Sold (000)   238,064    218,132    448,125    426,228 
Dozen Eggs Produced (000)   179,849    166,233    337,751    325,677 
                     
% Specialty Sales (dozen)   16.4%   16.3%   16.2%   16.0%
                     
Net Average Selling Price (dozen)  $1.323   $1.272   $1.283   $1.196 
Feed Cost (dozen)  $0.574   $0.465   $0.547   $0.474 
                     
% Specialty Sales Dollars   22.9%   22.7%   23.2%   23.1%

 

 

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. 

 

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CALM Reports Second Quarter Fiscal 2013 Results

Page 3

December 31, 2012

 

 

SUMMARY STATEMENTS OF INCOME

(Unaudited)

(In thousands, except per share amounts)

 

   13 Weeks Ended   26 Weeks Ended 
   December 1,   November 26,   December 1,   November 26, 
   2012   2011   2012   2011 
Net sales  $328,870   $290,369   $601,798   $534,211 
Gross profit   51,298    61,492    96,013    95,278 
Operating income   20,366    35,673    35,963    41,630 
Other income (expense)   2,031    335    1,135    (889)
Income before income taxes   22,397    36,008    37,098    40,741 
                     
Net income  $14,290   $23,260   $23,705   $26,377 
                     
Net income per common share:                    
Basic  $0.60   $0.97   $0.99   $1.11 
Diluted  $0.60   $0.97   $0.99   $1.10 
                     
Weighted average shares outstanding:                    
Basic   23,941    23,871    23,931    23,869 
Diluted   23,978    23,950    23,968    23,947 

 

 

SUMMARY BALANCE SHEETS

 

   December 1,
2012
   June 2,
2012
 
ASSETS          
Cash and short-term investments  $163,083   $260,751 
Receivables   99,964    62,768 
Inventories   143,671    117,158 
Prepaid expenses and other current assets   2,113    1,525 
  Current assets   408,831    442,202 
           
Property, plant and equipment (net)   271,199    222,615 
Other noncurrent assets   63,959    61,499 
  Total assets  $743,989   $726,316 
           
LIABILITIES AND STOCKHOLDERS' EQUITY          
Accounts payable and accrued expenses  $101,158   $103,724 
Current maturities of long-term debt   11,163    11,458 
Deferred income taxes   28,883    25,474 
  Current liabilities   141,204    140,656 
           
Long-term debt, less current maturities   59,309    64,762 
Deferred income taxes and other liabilities   43,079    41,570 
Stockholders' equity   500,397    479,328 
  Total liabilities and stockholders' equity  $743,989   $726,316 

 

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