Atlanta, Georgia
November 3, 2005
PRESS RELEASE
FOR IMMEDIATE RELEASE
Cagle's Inc. Reports Second Quarter Earnings
Of $1.7 million, or $.35 Per Share
Cagle's Inc. today reported the following results for its second quarter ended October 01, 2005.
Net income for the second quarter of fiscal 2006 was $1.7 million or $.35 per diluted share as compared with a net income of $2.7 million or $.57 per diluted share for the second quarter of fiscal 2005. For the first six months of fiscal 2006 net income was $3.1 million or $.65 per diluted share as compared with a net income of $8.9 million or $1.87 per diluted share for the same period of fiscal 2005.
Revenues for the second quarter of our current fiscal year were4% lower than the second quarter of fiscal 2005 and 6% lower for the first six months of fiscal 2006. Pounds marketed were up 17% for both the three and six month periods this year versus last as our plants are now running at capacity. Quoted poultry markets continue to display weakness with average pricing down 21% for the first six months of this year. Cost of sales was down 8% for the second quarter and down 7% for the first six months of fiscal 2006 versus comparable periods of fiscal 2005. Feed prices for the first six months of fiscal 2006 were down by over 20% as compared to the same period last year and are expected to remain stable for the remainder of our current fiscal year.
Cagle's Inc.
/s/ J. Douglas Cagle
J. Douglas Cagle
Chairman, CEO
Forward-Looking Statements:
Statements contained in this press release that state the intentions, hopes, beliefs, anticipations, expectations or predictions of the future of Cagle's Inc. and its management are forward looking statements. It is important to note that the actual results could differ materially from those projected. Factors that could cause actual results to differ materially from those project in such forward-looking statements include: additional outbreaks of avian influenza or other diseases affecting the production performance and/or marketability of the Company’s poultry products; matters affecting the poultry industry in general, including fluctuations in the commodity prices of feed ingredients and chicken; contamination of our products leading to product liability claims and recalls; exposures to risks related to property damage and injuries to persons for which insurance is limited and pote ntially inadequate; management of our cash resources, particularly in light of our substantial leverage; trade barriers; changes in laws or regulations affecting our operations as well as competitive factors and pricing pressures; and the impact of uncertainties of litigations as well as other risk factors.
Cagle's Inc.
Consolidated Statements of Income (in thousands except per share amounts)
| | | | | | | | | |
| | | Three Months Ended | | Six Months Ended |
| | | October 1, 2005 | | October 2, 2004 | | October 1, 2005 | | October 2, 2004 |
Net Sales | $ 61,297 | | $ 64,021 | | $ 122,891 | | $ 131,173 |
Cost and Expenses: | | | | | | | |
| | Cost of Sales | 55,618 | | 57,642 | | 112,600 | | 112,697 |
| | Selling & Delivery, General & Admin. | 3,512 | | 3,256 | | 6,751 | | 6,177 |
Total Cost and Expenses | 59,130 | | 60,898 | | 119,351 | | 118,874 |
| | | | | | | | |
Operating Profit (Loss) | 2,167 | | 3,123 | | 3,540 | | 12,299 |
Other Income (Expense): | | | | | | | |
| | Interest Expense | (597) | | (649) | | (1,222) | | (1,350) |
| | Other Income (Expense), net | 94 | | 658 | | 619 | | 671 |
Total Other Income(Expense),net | (503) | | 9 | | (603) | | (679) |
| | | | | | | | | |
Equity in Earnings of Unconsolidated Affiliates | 926 | | 1,116 | | 1,901 | | 2,232 |
Profit (Loss) before Income Taxes | 2,590 | | 4,248 | | 4,838 | | 13,852 |
Income Tax Expense (Benefit) | 932 | | 1,529 | | 1,741 | | 4,971 |
Net Profit (Loss) | $ 1,658 | | $ 2,719 | | $ 3,097 | | $ 8,881 |
Net Profit (Loss) per Share | $ 0.35 | | $ .57 | | $ .65 | | $ 1.87 |
No
Cagle's Inc.
Condensed Consolidated Balance Sheet (in thousands)
ASSETS | | October 1, 2005 | | April 3, 2004 |
| | | | | |
Current Assets | | $ 34,819 | | $ 32,687 |
| | | | | |
Investments in Affiliates | | 7,364 | | 6,105 |
| | | | | |
Other Assets | | 8,244 | | 11,000 |
| | | | | |
Property, Plant, and Equipment (net) | | 45,233 | | 44,500 |
| | | | | |
TOTAL ASSETS | | $ 95,660 | | $ 94,292 |
| | | | | |
| | | | | |
LIABILITIES & STOCKHOLDER'S EQUITY | | | | |
| | | | | |
Current Maturities of Long-term Debt | | $ 3,476 | | $ 3,476 |
Trade Accounts Payable | | 12,504 | | 11,563 |
Other Current Liabilities | | 5,961 | | 6,438 |
Total Current Liabilities | | 21,941 | | 21,477 |
| | | | | |
Long-Term Debt | | 24,817 | | 26,534 |
| | | | | |
Other Non-current Liabilities | | 0 | | 475 |
| | | | | |
Total Stockholder's Equity | | 48,902 | | 45,806 |
| | | | | |
TOTAL LIABILITIES & STOCKHOLDER'S EQUITY | | $ 95,660 | | $ 94,292 |
| | | | | |
