EXHIBIT 99.1
| | Contact: | Fred Adams, Jr.
Chairman and CEO
(601) 948-6813 |
CAL-MAINE FOODS REPORTS SECOND QUARTER 2006 RESULTS
JACKSON, Miss. (December 28, 2005) — Cal-Maine Foods, Inc. (NASDAQ/NM:CALM) today reported results for the second quarter and six months ended November 26, 2005.
Net sales for the second quarter of fiscal 2006 were $138.3 million compared with net sales of $90.7 million for the same quarter of fiscal 2005. The Company reported a net loss of $685,000, or $0.03 per basic share, for the second quarter of fiscal 2006 compared with a net loss of $5.3 million, or $0.23 per basic share, for the second quarter of fiscal 2005.
For the first six months of fiscal 2006, net sales were $218.0 million compared with net sales of $192.7 million for the prior-year period. The Company reported a net loss of $8.8 million, or $0.37 per basic share, for the first half of fiscal 2006 compared with a net loss of $6.2 million, or $0.26 per basic share, for the year-earlier period.
Fred Adams, Jr., chairman and chief executive officer of Cal-Maine Foods, Inc., stated, “All of the Cal-Maine operations ran smoothly during the second quarter. This was the first quarter to consolidate the operations of Hillandale LLC with Cal-Maine’s. The assimilation has gone well, and we are confident that we will generate more savings and synergies in the months ahead.
“Egg demand, sales volume, and egg prices started slow in the second quarter but finished on a very strong note, with robust sales and improved egg prices during the three weeks leading up to Thanksgiving. Following Thanksgiving and continuing until Christmas, egg demand has been excellent, resulting in higher egg prices. Cold, snowy weather in much of the country added to strong seasonal holiday demand.
“Corn and soybean crops were both large, and our feed costs are projected to be favorable in the months ahead,” Adams added.
Cal-Maine Foods, Inc. is primarily engaged in the production, grading, packing and sale of fresh shell eggs. The Company, which is headquartered in Jackson, Mississippi, currently is the largest producer and distributor of fresh shell eggs in the United States and sells the majority of its shell eggs in approximately 28 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. Such forward-looking statements are subject to risks and uncertainties (contained in the Company’s SEC filings) that could cause actual results to differ materially from those projected. SEC filings may be obtained from the SEC or by contacting the Company.
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CAL-MAINE FOODS, INC. AND SUBSIDIARIES
FINANCIAL HIGHLIGHTS
(Unaudited)
(In thousands, except per share amounts)
| 13 Weeks Ended
| 26 Weeks Ended
|
|---|
| Nov. 26,
2005
| Nov. 27,
2004
| Nov. 26,
2005
| Nov. 27,
2004
|
|---|
| Net sales | | | $ | 138,288 | | $ | 90,730 | | $ | 218,043 | | $ | 192,747 | |
| Gross profit | | | | 17,809 | | | 4,986 | | | 18,769 | | | 15,667 | |
| Operating income (loss) | | | | 1,080 | | | (7,444 | ) | | (8,878 | ) | | (8,424 | ) |
| Other income (expense) | | | | (2,101 | ) | | (968 | ) | | (4,245 | ) | | (1,385 | ) |
| Income (loss) before income taxes | | | | (1,022 | ) | | (8,412 | ) | | (13,123 | ) | | (9,809 | ) |
Net income (loss) | | | $ | (685 | ) | $ | (5,342 | ) | $ | (8,793 | ) | $ | (6,229 | ) |
Net income (loss) per common share: | | |
| Basic | | | $ | (0.03 | ) | $ | (0.23 | ) | $ | (0.37 | ) | $ | (0.26 | ) |
| Diluted | | | $ | (0.03 | ) | $ | (0.23 | ) | $ | (0.37 | ) | $ | (0.26 | ) |
Weighted average shares outstanding: | | |
| Basic | | | | 23,495 | | | 23,737 | | | 23,495 | | | 23,951 | |
| Diluted | | | | 23,495 | | | 23,737 | | | 23,495 | | | 23,951 | |
SUMMARY BALANCE SHEET
(Unaudited)
(In thousands, except per share amounts)
| Nov. 26,
2005
| May 28,
2005
|
|---|
| ASSETS | | | | | | | | |
| Cash and cash equivalents | | | $ | 21,956 | | $ | 55,605 | |
| Receivables | | | | 51,603 | | | 23,415 | |
| Inventories | | | | 57,866 | | | 45,628 | |
| Other | | | | 1,679 | | | 1,308 | |
|
| |
| |
| Current assets | | | | 133,104 | | | 125,956 | |
Fixed assets (net) | | | | 177,946 | | | 127,388 | |
| Other assets | | | | 14,892 | | | 16,190 | |
|
| |
| |
Total Assets | | | $ | 325,942 | | $ | 269,534 | |
|
| |
| |
LIABILITIES AND SHAREHOLDERS’ EQUITY | | |
| Current portion of long-term debt | | | $ | 10,610 | | $ | 10,149 | |
| Accounts payable | | | | 32,849 | | | 20,034 | |
| Other current liabilities | | | | 18,985 | | | 13,086 | |
| Current deferred income taxes | | | | 10,450 | | | 9,100 | |
|
| |
| |
| Current liabilities | | | | 72,894 | | | 52,369 | |
Deferred taxes and liabilities | | | | 39,606 | | | 22,465 | |
| Long-term debt | | | | 100,918 | | | 72,845 | |
| Shareholders’ equity | | | | 112,524 | | | 121,855 | |
|
| |
| |
Total liabilities and shareholders’ equity | | | $ | 325,942 | | $ | 269,534 | |
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| |
| |
