Atlanta, Georgia
November 4, 2008
PRESS RELEASE
FOR IMMEDIATE RELEASE
Cagle's Inc. Announces Results for Second Quarter Ended September 27, 2008
Cagle’s Inc. reported a net loss of $5.5 million or $1.18 per diluted share for the second quarter of fiscal year 2009 compared with a profit of $1.4 million or $.29 per diluted share for the second quarter of fiscal 2008. For the first six months of fiscal 2009 net income was a loss of $8.5 million or $1.82 per diluted share as compared with a net income of $2.9 million or $.62 per diluted share for the same period of fiscal 2008.
Revenues for the second quarter were $75.6 million reflecting little change when compared to the second quarter of fiscal 2008 and poultry pounds sold for the second quarter increased 4.05%. For the six month period revenues were $152.5 million up 3.1% and sales pounds were up 8.5% as compared to fiscal 2008. Quoted market prices for the second quarter and six month period of fiscal 2009 versus the same periods last year reflect a continued reduction in boneless breast, breast tenders, and wings, all decreasing over 10%.
Cost of sales for the second quarter of fiscal 2009 increased 14.6% as compared with the same period last year, from $69.5 million to $79.7 million. For the first six months of 2009 cost of sales was $157.3 million up 16.3% from fiscal 2008. Feed ingredient prices for broilers processed in the second quarter of 2009 represented 43% of the total cost of sales increasing 53.7% as compared to the second quarter of 2008 continuing the trend from the previous quarter.
Grain cost is being moderated by the current worldwide economic environment with ethanol, export and feed demand all being reduced. It appears that the corn crop will be the second largest in history supportive of reasonable cost to grow our broilers. Egg sets are the lowest in the last five years which should help better balance our industry’s supply with today’s reduced protein demand resulting in improved prices for our product. We believe that Cagle’s margins will improve as grain and poultry markets adjust to the changes currently in place and expect a move to profitability in early 2009.
Cagle's Inc.
/s/ J. Douglas Cagle
J. Douglas Cagle
Chairman, CEO
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Cagle's Inc. |
Condensed Consolidated Balance Sheet |
(In Thousands) (Unaudied) |
| | | | | | |
ASSETS | | September 27, 2008 | | September 29, 2007 |
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Current Assets | | $ | 47,235 | | $ | 48,137 |
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Other Assets | | | 9,177 | | | 3,688 |
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Property, Plant, and Equipment (net) | | | 38,252 | | | 39,641 |
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TOTAL ASSETS | | $ | 94,664 | | $ | 91,466 |
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LIABILITIES & STOCKHOLDER'S EQUITY | | | | | | |
| | | | | | |
Current Maturities of Long-term Debt | | $ | 2,393 | | $ | 2,181 |
Trade Accounts Payable | | | 21,015 | | | 16,524 |
Other Current Liabilities | | | 5,185 | | | 9,325 |
Total Current Liabilities | | | 28,593 | | | 28,030 |
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Long-Term Debt | | | 31,568 | | | 15,355 |
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Total Stockholders Equity | | | 34,503 | | | 48,081 |
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TOTAL LIABILITIES & STOCKHOLDERS EQUITY | | $ | 94,664 | | $ | 91,466 |
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Cagle's, Inc. & Subsidiary |
Consolidated Statements of Income |
(In Thousands, except per share data) (Unaudied) |
| | | | | | | | | | | |
| Three Months Ended | | Six Months Ended |
| Sept. 27, | | Sept. 29 | | Sept. 27, | | Sept. 29 |
| 2008 | | 2007 | | 2008 | | 2007 |
Net Sales | $ | 75,632 | | $ | 76,067 | | $ | 152,553 | | $ | 147,929 |
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Costs and Expenses: | | | | | | | | | | | |
Cost of Sales | | 79,702 | | | 69,527 | | | 157,279 | | | 135,187 |
Selling & Delivery and General & Administrative | | 2,355 | | | 2,276 | | | 4,687 | | | 4,405 |
General and Administrative | | 1,532 | | | 1,759 | | | 2,724 | | | 3,117 |
Other General Expenses | | 0 | | | 6 | | | 0 | | | (22) |
Total Costs and Expenses | | 83,589 | | | 73,568 | | | 164,690 | | | 142,687 |
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Operating Income (Loss) | | (7,957) | | | 2,499 | | | (12,137) | | | 5,242 |
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Other Income(Expense): | | | | | | | | | | | |
Interest Expense | | (606) | | | (356) | | | (1,095) | | | (724) |
Other Income, Net | | (4) | | | 58 | | | (16) | | | 82 |
Total Other Income (Expense),net | | (610) | | | (298) | | | (1,111) | | | (642) |
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Income Before Income Taxes | | (8,567) | | | 2,201 | | | (13,248) | | | 4,600 |
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Income Taxes Provision | | (3,084) | | | 826 | | | (4,769) | | | 1,690 |
Net Income | $ | (5,483) | | $ | 1,375 | | $ | (8,479) | | $ | 2,910 |
Net Income Per Common Share | $ | (1.18) | | $ | 0.29 | | $ | (1.82) | | $ | 0.62 |
