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 SECOND QUARTER FISCAL 2024
RIDGELAND, Miss. (January 3, 2024) - 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 second quarter of fiscal 2024 (thirteen weeks) ended December 2, 2023.
Second Quarter Fiscal Year 2024 Highlights
●
Quarterly net sales of $523.2 million
●
Quarterly net income of $17.0 million or $0.35 per basic and diluted common share
●
Cash dividend of $5.7 million, or $0.116 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 financial and operating performance for the second quarter of fiscal 2024 in the
face of dynamic market conditions. Our sales reflect a different market environment from a year ago, with
significantly lower average selling prices. However, our total volumes sold were up slightly over a year ago,
as consumer demand for shell eggs continued to be favorable in the quarter, especially leading up to the
Thanksgiving holiday. As always, we strive to offer consumers a wide range of quality choices in shell eggs
as well as enhanced egg products offerings. Our ability to meet changing demand trends with a favorable
product mix has been an important differentiator for Cal-Maine Foods. With solid execution, we continued
to meet the needs of our customers. We commend our managers and employees across our production
facilities who continued to efficiently manage our operations and keep pace with changing demand.
“During the second quarter, we completed the acquisition of the assets of Fassio Egg Farms, Inc. a
shell egg production and processing business located in Erda, Utah, outside of Salt Lake City. The
additional production capacity, especially for cage-free eggs, will enhance our ability to serve our valued
customers in this important market area. We welcome the Fassio team to Cal-Maine Foods as we apply our
proven operating model and further expand our cage-free production capabilities.
“Following the end of the second quarter, we announced a definitive agreement to acquire from
Tyson Foods, Inc. (NYSE:TSN) a recently closed broiler processing plant, hatchery and feed mill located in
Dexter, Missouri. We expect to complete the acquisition in our third fiscal quarter and to repurpose the
assets for use in egg and egg products production. We look forward to the opportunities to leverage the
added production and distribution capabilities and reach more customers in Missouri and surrounding
markets.”
Cal-Maine Foods Reports Second Quarter Fiscal 2024 Results
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January 3, 2024
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Sales Performance & Operating Highlights
Max Bowman, vice president and chief financial officer of Cal-Maine Foods, Inc., added, “For the
second quarter of fiscal 2024, our net sales were $523.2 million compared with $801.7 million for the same
period last year. The decline in sales revenue for the second quarter of fiscal 2024 was primarily due to the
significant decrease in the net average selling price for conventional eggs. However, our sales volumes
improved slightly with 288.2 million total dozens sold in the second quarter of fiscal 2024 compared with
284.1 million, an increase of 1.4%, over the same period last year.
“Net income attributable to Cal-Maine Foods, Inc. for the second quarter of fiscal 2024 was $17.0
million, or $0.35 per diluted share, compared with $198.6 million, or $4.07 per diluted share, for the
second quarter of fiscal 2023. These results include a $19.6 million loss contingency accrual, reflected in
SG&A expenses, for our estimated share of damages and fees awarded in a pending anti-trust legal
proceeding. We are still pursuing legal actions to reverse, and if necessary, appeal the decisions.
“While conventional egg prices improved sequentially, the net average selling price per dozen was
$1.458 for conventional eggs in the second quarter of fiscal 2024, down 49.4% compared with $2.883 for
the prior-year quarter. Net average selling price for specialty eggs was $2.277 per dozen, compared with
$2.370 per dozen for the second quarter of fiscal 2023, a decline of 3.9%. Specialty dozens sold were 33.2%
of total dozens sold in the second quarter of fiscal 2024 compared with 33.8% in the prior-year period.
Cage-free eggs accounted for approximately 30.4% of shell egg revenue for the second quarter of fiscal
2024.
“We reported operating income of $14.2 million for the second quarter of fiscal 2024, compared
with operating income of $259.9 million for the prior-year quarter, primarily reflecting lower market
prices. However, we benefitted from lower feed ingredient prices compared with the same period a year
ago. We continued to focus on the aspects of our business we can control and managed our operations
efficiently despite higher input costs at our production, processing and distribution centers, as well as
ongoing investments in enhanced biosecurity measures to mitigate the risk of highly pathogenic avian
influenza (“HPAI”).
“Current indications for corn project an overall better stocks-to-use ratio implying potentially lower
prices in the near term; however, as we continue to face uncertain external forces including weather
patterns and global supply chain disruptions, volatility could remain. Soybean meal supply has remained
tight relative to demand in the second quarter of fiscal 2024.”
13 Weeks Ended
26 Weeks Ended
December 2, 2023
November 26, 2022
December 2, 2023
November 26, 2022
Dozen Eggs Sold (000)
288,173
284,086
561,299
559,403
Conventional Dozen Eggs Sold (000)
192,462
187,976
373,992
367,688
Specialty Dozen Eggs Sold (000)
95,711
96,110
187,307
191,715
Dozen Eggs Produced (000)
265,101
261,358
515,457
519,012
% Specialty Sales (dozen)
33.2
%
33.8
%
33.4
%
34.3
%
% Specialty Sales (dollars)
43.3
%
29.4
%
45.4
%
30.5
%
Net Average Selling Price (per dozen)
$
1.730
$
2.709
$
1.661
$
2.496
Net Average Selling Price Conventional
Eggs (per dozen)
$
1.458
$
2.883
$
1.353
$
2.631
Net Average Selling Price Specialty Eggs
(per dozen)
$
2.277
$
2.370
$
2.277
$
2.236
Feed Cost (per dozen)
$
0.554
$
0.685
$
0.575
$
Cal-Maine Foods Reports Second Quarter Fiscal 2024 Results
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January 3, 2024
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HPAI & Table Egg Supply Outlook
Outbreaks of HPAI have continued to occur in U.S. poultry flocks. Prior to November 2023, there
were no reported significant outbreaks of HPAI in commercial table egg layer flocks since December 2022.
On January 3, 2024, the USDA division of Animal and Plant Health Inspection Service (“APHIS”) reported
that approximately 12.9 million commercial table egg layers and 1.5 million commercial table egg pullets
have been depopulated as a result of HPAI outbreaks since the beginning of November 2023.
Cal-Maine Foods experienced an HPAI outbreak within its facilities in Kansas, resulting in
depopulation of approximately 1.5 million laying hens and 240 thousand pullets, or approximately 3.3% of
its total flock, subsequent to quarter end. Cal-Maine Foods believes that it can mitigate the loss of
production through flock rotations. The Company remains dedicated to robust biosecurity programs across
its locations; however, no farm is immune from HPAI. HPAI is still present in the wild bird population and
the extent of possible future outbreaks, with heightened risk during the migration seasons, cannot be
predicted. According to the U.S. Centers for Disease Control and Prevention, these detections do not
present an immediate public health concern.
The Company believes the HPAI outbreak will continue to affect the overall supply of eggs until the
layer hen flock is fully replenished. The layer hen flock five-year monthly average for the month of
December from 2018 through 2022 was 330.1 million hens. According to the USDA, the U.S. flock consisted
of 321.6 million layers producing table or market type eggs as of December 1, 2023, which is 2.6 % below
the five-year average.
Looking Ahead
Miller added, “We are pleased with our ability to effectively manage our business through the first
half of fiscal 2024, as we have continued to deal with the impact of HPAI. We are proud of our team’s
resilience and ability to quickly respond to the challenges we have faced. Our proven operating model
supports our ability to manage our operations through the various cycles that characterize our business.
Cal-Maine Foods is uniquely positioned to leverage our scale and continue to meet growing customer
demand. We are also mindful of our important role as a contributor to the nation’s food supply with an
affordable and nutritious protein portfolio. We remain focused on our strategy to invest in our operations
to expand capacity; pursue synergistic acquisition opportunities; and support long-term growth through
investment in innovative, scale-driven products and facilities. We are fortunate to have a strong balance
sheet and a disciplined capital allocation strategy that supports our growth objectives. We look forward to
the opportunities ahead for Cal-Maine Foods.”
Dividend Payment
For the second quarter of fiscal 2024, Cal-Maine Foods will pay a cash dividend of approximately
$0.116 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 February 15, 2024, to holders of record on January 31, 2024.
About Cal-Maine Foods
Cal-Maine Foods, Inc. is primarily engaged in the production, grading, packaging, 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
Cal-Maine Foods Reports Second Quarter Fiscal 2024 Results
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January 3, 2024
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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 and that first impacted our
flocks in December 2023, (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, and higher and potentially further increases in inflation and interest rates, (vii) our
ability to retain existing customers, acquire new customers and grow our product mix, (viii) adverse
results in pending litigation matters, (ix) global instability, including as a result of the wars in Ukraine
and Israel and attacks on shipping in the Red Sea, and (x) any potential resurgence of COVID-19. SEC
filings may be obtained from the SEC or the Company’s website
,
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 publicly
update these forward-looking statements, whether as a result of new information, future events or
otherwise.
Cal-Maine Foods Reports Second Quarter Fiscal 2024 Results
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January 3, 2024
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CAL-MAINE FOODS, INC. AND SUBSIDIARIES
FINANCIAL HIGHLIGHTS
(Unaudited)
(In thousands, except per share amounts)
SUMMARY STATEMENTS OF INCOME
13 Weeks Ended
26 Weeks Ended
December 2, 2023
November 26, 2022
December 2, 2023
November 26, 2022
Net sales
$
523,234
$
801,700
$
982,578
$
1,460,044
Cost of sales
432,104
483,851
846,015
924,705
Gross profit
91,130
317,849
136,563
535,339
Selling, general and administrative
76,578
57,952
128,824
111,559
(Gain) loss on disposal of fixed assets
318
29
262
62
Operating income (loss)
14,234
259,868
7,477
423,718
Other income, net
7,884
2,400
15,374
4,030
Income before income taxes
22,118
262,268
22,851
427,748
Income tax expense
5,540
63,974
5,862
104,320
Net income
16,578
198,294
16,989
323,428
Less: Loss attributable to noncontrolling interest
(431)
(293)
(946)
(446)
Net income attributable to Cal-Maine Foods, Inc.
$
17,009
$
198,587
$
17,935
$
323,874
Net income per common share:
Basic
$
0.35
$
4.08
$
0.37
$
6.66
Diluted
$
0.35
$
4.07
$
0.37
$
6.63
Weighted average shares outstanding:
Basic
48,690
48,624
48,691
48,624
Diluted
48,866
48,840
48,854
48,827
Cal-Maine Foods Reports Second Quarter Fiscal 2024 Results
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January 3, 2024
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CAL-MAINE FOODS, INC. AND SUBSIDIARIES
FINANCIAL HIGHLIGHTS
(Unaudited)
(In thousands)
SUMMARY BALANCE SHEETS
December 2, 2023
June 3, 2023
ASSETS
Cash and short-term investments
$
567,828
$
647,914
Receivables, net
199,162
187,213
Inventories, net
287,270
284,418
Prepaid expenses and other current assets
9,673
5,380
Current assets
1,063,933
1,124,925
Property, plant and equipment, net
815,468
744,540
Other noncurrent assets
87,404
85,060
Total assets
$
1,966,805
$
1,954,525
LIABILITIES AND STOCKHOLDERS' EQUITY
Accounts payable and accrued expenses
$
148,105
$
145,601
Dividends payable
5,682
37,130
Current liabilities
153,787
182,731
Deferred income taxes and other liabilities
189,054
162,211
Stockholders' equity
1,623,964
1,609,583
Total liabilities and stockholders' equity
$
1,966,805
$
1,954,525