Exhibit 99.1
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Contacts:
Sherman Miller, President and CEO
Max P. Bowman, Vice President and CFO
(601) 948-6813
CAL-MAINE FOODS REPORTS RESULTS
FOR THIRD QUARTER FISCAL 2023
ANNOUNCES QUARTERLY CASH DIVIDEND OF $2.20 PER SHARE
RIDGELAND, Miss. (March 28, 2023) - Cal-Maine Foods, Inc. (NASDAQ: CALM) (“Cal-Maine
Foods” or the “Company”), the largest producer and distributor of fresh shell eggs in the United
States, today reported results for the third quarter of fiscal 2023 (thirteen weeks) ended February
25, 2023.
Third Quarter Fiscal 2023 Highlights
●
Quarterly net sales of $997.5 million, driven by strong conventional egg prices
●
Quarterly net income of $323.2 million, or $6.64 per basic and $6.62 per diluted common
share
●
Cash dividend of $107.7 million, or $2.20 per share, pursuant to the Company’s
established dividend policy
Overview
Sherman Miller, president and chief executive officer of Cal-Maine Foods, Inc. stated, “Cal-
Maine Foods delivered a solid performance for the third quarter of fiscal 2023. Our results are
reflective of a dynamic market environment with higher average selling prices and favorable
demand. Elevated market pricing continues, primarily due to the impact of the ongoing epidemic
of highly pathogenic avian influenza (“HPAI”), which has significantly reduced the nation’s egg-
laying capacity. At the same time, consumer demand for shell eggs remained robust in the third
quarter, which included the peak winter holiday season. We are grateful that the Cal-Maine Foods’
team delivered more eggs to meet the needs of our customers during the quarter and continued to
successfully focus on our goal of expanding our specialty egg production capacity.
“The domestic egg market has always been intensely competitive and highly volatile even
under normal market circumstances. At Cal-Maine Foods, we sell our eggs to a diverse group of
retail customers, including national and regional grocery chains, club stores, companies that supply
to independent supermarkets, food service distributors and egg product customers. The majority
of our conventional eggs are sold based on market quotes published by Urner Barry, an
independent, third-party market reporter. We are a producer and distributor and do not sell eggs
directly to consumers.
“We have worked hard to respond to the challenging operating environment, targeting optimal
management of every aspect of our business within our control. As always, we are focused on the
long-term, working within the proven operating model that has served us well throughout the
various cycles that characterize our industry. In combination with the current inflationary
environment, the HPAI epidemic has created additional challenges for all producers, with
Cal-Maine Foods Reports Record Results for Third Quarter 2023
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March 28, 2023
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increasing costs and supply chain disruptions. We are grateful to our dedicated managers and
employees across our production facilities who have efficiently managed our operations during this
time. We have invested substantial capital and management resources in our biosecurity measures,
and these investments, along with our employees’ diligent adherence to our robust biosecurity
protocols, have allowed us to continue to produce and bring more quality eggs to the market. There
have been no positive tests for HPAI at any Cal-Maine Foods’ owned or contracted production
facility as of March 28, 2023. Together, we are committed to our mission – to be the most
sustainable producer and reliable supplier of fresh shell eggs and egg products in the United States,”
added Miller.
Sales Performance & Operating Highlights
Max Bowman, chief financial officer of Cal-Maine Foods, added, “Our financial results for
the quarter were led by net sales of $997.5 million compared with $477.5 million for the same period
last year. Net income for the third quarter of fiscal 2023 was $323.2 million, or $6.62 per diluted
share, compared with $39.5 million, or $0.81 per diluted share, for the third quarter of fiscal 2022.
These results reflect the significantly higher market prices and favorable demand boosted by the
busy holiday season. We remained focused on disciplined management of our costs during the
quarter despite continued inflationary pressures and a tight labor market.”
Conventional egg net average selling price per dozen increased to $3.678 for the third
quarter of fiscal 2023 compared with $1.458 the prior-year quarter. Net average selling price for
specialty eggs rose to $2.616 per dozen, compared with $1.923 per dozen for the third quarter of
fiscal 2022. Specialty dozens sold were 35.7% of total dozens sold compared with 33.1% in the prior-
year period.
For the third quarter of fiscal 2023, total dozens sold increased 1.3% to 291.4 million versus
287.7 million in the prior-year quarter, driven by higher sales volumes in the specialty eggs category.
Conventional egg volumes sold decreased 2.7% compared with third quarter fiscal 2022, while
specialty egg volumes sold increased by 9.4%.
This increase in demand for specialty eggs was positively affected by the higher conventional
egg prices as compared to the same period in the prior year. Conventional egg prices exceeding
specialty egg prices has occurred for the past four quarters but is atypical historically. Cal-Maine
Foods plans to continue to focus on the expansion of the Company’s specialty egg production
capacity in line with changing customer demand. At the same time, the Company understands the
importance of the continued ability to provide conventional eggs in order to offer customers a
variety of egg choices with a long-term goal to address hunger in more communities.
The Company reported operating income of $407.8 million for the third quarter of fiscal
2023 amidst a challenging environment with higher costs across various inputs including feed,
labor, packaging, and distribution. Overall, farm production costs per dozen increased 18.2%, or
$0.166, compared with the prior-year period, primarily tied to significantly higher feed costs. For
the third quarter of fiscal 2023, feed costs per dozen were $0.679, a 20.8% increase compared with
the third quarter of fiscal 2022.
Supplies of corn and soybean remained tight relative to demand in
the third quarter of fiscal 2023, as evidenced by a low stock-to-use ratio for corn, due to weather-
related shortfalls in production and yields, ongoing supply-chain disruptions and the Russia-Ukraine
war and its impact on the export markets. For fiscal 2023, the Company expects continued corn and
soybean upward pricing pressures and further market volatility to affect feed costs.
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March 28, 2023
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13 Weeks Ended
39 Weeks Ended
February 25, 2023
February 26, 2022
February 25, 2023
February 26, 2022
Dozen Eggs Sold (000)
291,416
287,651
850,819
811,821
Conventional Dozen Eggs Sold (000)
187,357
192,511
555,045
568,511
Specialty Dozen Eggs Sold (000)
104,059
95,140
295,774
243,310
Dozen Eggs Produced (000)
263,174
264,433
782,186
757,677
% Specialty Sales (dozen)
35.7
%
33.1
%
34.8
%
30.0
%
% Specialty Sales (dollars)
28.2
%
39.4
%
29.6
%
40.2
%
Net Average Selling Price (per dozen)
$
3.298
$
1.612
$
2.771
$
1.412
Net Average Selling Price Conventional
Eggs (per dozen)
$
3.678
$
1.458
$
2.984
$
1.203
Net Average Selling Price Specialty
Eggs (per dozen)
$
2.616
$
1.923
$
2.369
$
1.900
Feed Cost (per dozen)
$
0.679
$
0.562
$
0.677
$
0.546
Product Mix & Cage-Free Eggs
As demand for specialty eggs, particularly cage-free eggs, has evolved, the Company has
focused on meeting current and expected customer demand. A significant number of Cal-Maine
Foods’ customers previously announced goals to offer cage-free eggs exclusively on or before 2026.
While some of these customers have extended those timelines to the end of 2030, the Company’s
priority is to work with its customers to facilitate a smooth transition to their announced timelines
for cage-free egg sales. Cal-Maine Foods has made significant investments in its production and
distribution capabilities as cage-free eggs are expected to comprise a larger share of the Company’s
product mix. Cage-free dozens sold increased 14.9% in the third quarter of fiscal 2023 as compared
to the third quarter of fiscal 2022.
Table Egg Supply Outlook
The current HPAI epidemic has surpassed the prior 2014-2015 outbreak in terms of its
duration and the number of affected hens in the U.S., and HPAI continues to circulate throughout
the wild bird population in the U.S. and abroad. Cal-Maine Foods has followed strict biosecurity
protocols across all locations and facilities since the previous outbreak and continues to closely
monitor the current outbreak. The USDA division of Animal and Plant Health Inspection Service
(“APHIS”) reported on March 27, 2023, that approximately 43.3 million commercial layer hens and
1.0 million pullets have been depopulated due to HPAI since February 2022. According to the U.S.
Centers for Disease Control and Prevention, these detections do not present an immediate public
health concern. Outbreaks in commercial poultry flocks in the U.S. have most recently occurred
during March 2023. There have been no positive tests for HPAI at any Cal-Maine Foods’ owned or
contracted production facility as of March 28, 2023. The Company is working closely with federal,
state and local government officials, and focused industry groups to mitigate the risk of future
outbreaks, and effectively manage a response, if needed.
The Company believes the HPAI outbreak will continue to exert downward pressure on the
overall supply of eggs, and the duration of these effects will depend in part on the timing of
replenishment of the U.S. layer hen flock. Prior to the outbreak of HPAI in February 2022, the layer
hen flock five-year average from 2017 through 2021 was comprised of approximately 328 million
hens. According to a LEAP Market Analytics report dated March 21, 2023, the layer hen inventory
is not projected to exceed 328 million again until January of 2024. Layer hen numbers reported by
Cal-Maine Foods Reports Record Results for Third Quarter 2023
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March 28, 2023
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the USDA as of March 1, 2023, were 312.9 million, which represents a decrease of 3.8% compared
with the layer hen inventory a year ago. However, the USDA also reported that the hatch from
October 2022 through February 2023 increased 4.5% as compared with the prior-year period,
indicating that layer flocks may increase in the future.
Dividend Payment
For third quarter of fiscal 2023, Cal-Maine Foods will pay a cash dividend of approximately
$2.20 per share to holders of its common and Class A common stock. Pursuant to Cal-Maine Foods’
variable dividend policy, for each quarter in which the Company reports net income, the Company
pays a cash dividend to shareholders in an amount equal to one-third of such quarterly income.
Following a quarter for which the Company does not report net income, the Company will not pay
a dividend with respect to that quarter or for a subsequent profitable quarter until the Company is
profitable on a cumulative basis computed from the date of the most recent quarter for which a
dividend was paid. The amount paid per share will vary based on the number of outstanding shares
on the record date. The dividend is payable on May 11, 2023, to holders of record on April 26, 2023.
About Cal-Maine Foods
Cal-Maine Foods, Inc. is primarily engaged in the production, grading, packing, marketing
and distribution of fresh shell eggs, including conventional, cage-free, organic, brown, free-range,
pasture-raised and nutritionally enhanced eggs. The Company, which is headquartered in
Ridgeland, Mississippi, is the largest producer and distributor of fresh shell eggs in the United
States and sells the majority of its shell eggs in states across the southwestern, southeastern, mid-
western and mid-Atlantic regions of the United States.
Forward Looking Statements
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), including but not limited to the most recent outbreak of highly pathogenic
avian influenza affecting poultry in the U.S., Canada and other countries that was first detected
in commercial flocks in the U.S. in February 2022, (iii) changes in the demand for and market
prices of shell eggs and feed costs, (iv) our ability to predict and meet demand for cage-free and
other specialty eggs, (v) risks, changes or obligations that could result from our future acquisition
of new flocks or businesses and risks or changes that may cause conditions to completing a
pending acquisition not to be met, (vi) risks relating to increased costs, rising inflation and interest
rates, which generally have been exacerbated by Russia’s invasion of Ukraine starting in
February 2022, (vii) our ability to retain existing customers, acquire new customers and grow
our product mix and (viii) adverse results in pending litigation matters and (ix) the evolving
COVID-19 pandemic. 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
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March 28, 2023
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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 publicly update these forward-looking
statements, whether as a result of new information, future events or otherwise.
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March 28, 2023
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CAL-MAINE FOODS, INC. AND SUBSIDIARIES
FINANCIAL HIGHLIGHTS
(Unaudited)
(In thousands, except per share amounts)
SUMMARY STATEMENTS OF OPERATIONS
13 Weeks Ended
39 Weeks Ended
February 25, 2023
February 26, 2022
February 25, 2023
February 26, 2022
Net sales
$
997,493
$
477,485
$
2,457,537
$
1,184,195
Cost of sales
534,467
385,903
1,459,172
1,042,221
Gross profit
463,026
91,582
998,365
141,974
Selling, general and administrative
58,489
52,686
170,048
146,991
Insurance recoveries
(3,220)
(1,095)
(3,220)
(3,225)
(Gain) loss on disposal of fixed assets
(26)
421
36
370
Operating income (loss)
407,783
39,570
831,501
(2,162)
Other income, net
17,104
13,478
21,134
21,814
Income before income taxes
424,887
53,048
852,635
19,652
Income tax expense (benefit)
102,118
13,594
206,438
(2,921)
Net income
322,769
39,454
646,197
22,573
Less: Loss attributable to noncontrolling
interest
(450)
(63)
(896)
(91)
Net income attributable to Cal-Maine
Foods, Inc.
$
323,219
$
39,517
$
647,093
$
22,664
Net income per common share:
Basic
$
6.64
$
0.81
$
13.31
$
0.46
Diluted
$
6.62
$
0.81
$
13.25
$
0.46
Weighted average shares outstanding:
Basic
48,653
48,886
48,634
48,888
Diluted
48,842
49,036
48,832
49,035
Cal-Maine Foods Reports Record Results for Third Quarter 2023
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March 28, 2023
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CAL-MAINE FOODS, INC. AND SUBSIDIARIES
FINANCIAL HIGHLIGHTS
(Unaudited)
(In thousands)
SUMMARY BALANCE SHEETS
February 25, 2023
May 28, 2022
ASSETS
Cash and short-term investments
$
645,032
$
174,513
Receivables, net
249,867
219,404
Inventories, net
290,869
263,316
Prepaid expenses and other current assets
7,599
4,286
Current assets
1,193,367
661,519
Property, plant and equipment, net
712,512
677,796
Other noncurrent assets
86,604
88,174
Total assets
$
1,992,483
$
1,427,489
LIABILITIES AND STOCKHOLDERS' EQUITY
Accounts payable and accrued expenses
$
205,340
$
148,018
Dividends payable
107,720
36,656
Current liabilities
313,060
184,674
Deferred income taxes and other liabilities
144,535
138,470
Stockholders' equity
1,534,888
1,104,345
Total liabilities and stockholders' equity
$
1,992,483
$
1,427,489