CAL-MAINE FOODS, INC. REPORTS SECOND QUARTER FISCAL 2012 RESULTS
JACKSON, Miss. (December 27, 2011) ¾ Cal-Maine Foods, Inc. (NASDAQ: CALM) today announced results for the second quarter and six months ended November 26, 2011.
Net sales for the second quarter of fiscal 2012 were $290.4 million compared with net sales of $234.5 million for the same quarter of fiscal 2011. The Company reported net income of $23.3 million, or $0.97 per basic share, for the second quarter of fiscal 2012 compared with net income of $15.2 million, or $0.64 per basic share, for the second quarter of fiscal 2011.
For the first six months of fiscal 2012, net sales were $534.2 million compared with net sales of $424.9 million for the prior-year period. The Company reported net income of $26.4 million, or $1.11 per basic share, for the first half of fiscal 2012 compared with net income of $19.9 million, or $0.84 per basic share, for the year-earlier period.
Dolph Baker, president and chief executive officer of Cal-Maine Foods, Inc., stated, “We are pleased with our results for the second quarter and the favorable trends in Cal-Maine’s business through the first half of fiscal 2012. Our higher sales reflect strong seasonal retail demand for eggs as well as higher average selling prices. We typically sell more eggs around the holidays and demand has been very good this fall with total dozen eggs sold up six percent compared with the same period last year. Sales of specialty eggs, which have a higher selling price, accounted for approximately 23 percent of shell egg revenue for the quarter and over 16 percent of total dozens sold. Value-added specialty eggs include nutritionally-enhanced, organic and cage free eggs, and represent a rapidly growing segment of the shell egg market as these products offer alternative choices for consumers with special preferences.
“Our production costs have been materially affected by our feed costs, which were up 20 percent compared with the second quarter of fiscal 2011. Prices for corn and soybean meal, our primary feed ingredients, have continued to escalate this fiscal year. However, we are pleased with the efficiency of our operations and our ability to absorb these higher costs and improve our profitability for the quarter. While we have recently seen some easing in grain prices, we still expect our feed costs to be high and volatile for the rest of the fiscal year,” added Baker.
For the second quarter of fiscal 2012, Cal-Maine will pay a cash dividend of approximately $0.325 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 9, 2012, to shareholders of record on January 25, 2012.
Selected operating statistics for the second quarter of fiscal 2012 compared with the prior year period are shown below:
| | | 13 Weeks Ended | | | 26 Weeks Ended | |
| | | November 26, 2011 | | | November 27, 2010 | | | November 26, 2011 | | | November 27, 2010 | |
| | | | | | | | | | | | | |
| Dozen Eggs Sold (000) | | | 218,132 | | | | 206,038 | | | | 426,228 | | | | 400,024 | |
| Dozen Eggs Produced (000) | | | 166,233 | | | | 159,749 | | | | 325,677 | | | | 315,093 | |
| | | | | | | | | | | | | | | | | |
| % Specialty Sales (dozen) | | | 16.3 | % | | | 15.5 | % | | | 16.0 | % | | | 15.2 | % |
| | | | | | | | | | | | | | | | | |
| Net Average Selling Price (dozen) | | $ | 1.272 | | | $ | 1.090 | | | $ | 1.196 | | | $ | 1.012 | |
| Feed Cost (Dozen) | | $ | 0.465 | | | $ | 0.387 | | | $ | 0.474 | | | $ | 0.361 | |
| | | | | | | | | | | | | | | | | |
| % Specialty Sales (dollars) | | | 22.7 | % | | | 23.0 | % | | | 23.1 | % | | | 24.1 | % |
| CAL-MAINE FOODS, INC. | POST OFFICE BOX 2960 ▪ | JACKSON, MISSISSIPPI 39207 |
| | PHONE 601-948-6813 | FAX 601-969-0905 |
CALM Reports Second Quarter Fiscal 2012 Results
Page 2
December 27, 2011
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 market prices of shell eggs and feed costs, (iv) 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.
CALM Reports Second Quarter Fiscal 2012 Results
Page 3
December 27, 2011
CAL-MAINE FOODS, INC. AND SUBSIDIARIES
FINANCIAL HIGHLIGHTS
SUMMARY STATEMENTS OF INCOME
(Unaudited)
(In thousands, except per share amounts)
| | | 13 Weeks Ended | | | 26 Weeks Ended | |
| | | November 26, | | | November 27, | | | November 26, | | | November 27, | |
| | | 2011 | | | 2010 | | | 2011 | | | 2010 | |
| | | | | | | | | | | | | |
| Net sales | | $ | 290,369 | | | $ | 234,523 | | | $ | 534,211 | | | $ | 424,926 | |
| Gross profit | | | 61,492 | | | | 45,215 | | | | 95,278 | | | | 77,951 | |
| Operating income | | | 35,673 | | | | 22,783 | | | | 41,630 | | | | 30,824 | |
| Other income (expense) | | | 335 | | | | (385 | ) | | | (889 | ) | | | (1,341 | ) |
| Income before income taxes | | | 36,008 | | | | 22,398 | | | | 40,741 | | | | 29,483 | |
| | | | | | | | | | | | | | | | | |
| Net income | | $ | 23,260 | | | $ | 15,186 | | | $ | 26,377 | | | $ | 19,949 | |
| | | | | | | | | | | | | | | | | |
| Net income per common share: | | | | | | | | | | | | | | | | |
| Basic | | $ | 0.97 | | | $ | 0.64 | | | $ | 1.11 | | | $ | 0.84 | |
| Diluted | | $ | 0.97 | | | $ | 0.63 | | | $ | 1.10 | | | $ | 0.83 | |
| | | | | | | | | | | | | | | | | |
| Weighted average shares outstanding: | | | | | | | | | | | | | | | | |
| Basic | | | 23,871 | | | | 23,853 | | | | 23,869 | | | | 23,848 | |
| Diluted | | | 23,950 | | | | 23,944 | | | | 23,947 | | | | 23,940 | |
SUMMARY BALANCE SHEETS
| | | November 26, 2011 | | | May 28, 2011 | |
| ASSETS | | | | | | |
| Cash and short-term investments | | $ | 200,144 | | | $ | 176,429 | |
| Receivables | | | 88,109 | | | | 62,790 | |
| Inventories | | | 114,253 | | | | 110,021 | |
| Prepaid expenses and other current assets | | | 6,604 | | | | 5,801 | |
| Current assets | | | 409,110 | | | | 355,041 | |
| | | | | | | | | |
| Property, plant and equipment (net) | | | 222,600 | | | | 224,887 | |
| Other noncurrent assets | | | 57,013 | | | | 60,915 | |
| Total assets | | $ | 688,723 | | | $ | 640,843 | |
| | | | | | | | | |
| LIABILITIES AND STOCKHOLDERS' EQUITY | | | | | | | | |
| Accounts payable and accrued expenses | | $ | 104,493 | | | $ | 71,969 | |
| Current maturities of long-term debt | | | 11,458 | | | | 11,743 | |
| Deferred income taxes | | | 25,228 | | | | 23,770 | |
| Current liabilities | | | 141,179 | | | | 107,482 | |
| | | | | | | | | |
| Long-term debt, less current maturities | | | 70,215 | | | | 76,418 | |
| Deferred income taxes and other liabilities | | | 40,483 | | | | 38,066 | |
| Stockholders' equity | | | 436,846 | | | | 418,877 | |
| Total liabilities and stockholders' equity | | $ | 688,723 | | | $ | 640,843 | |
