SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 10-Q
(x) Quarterly Report Pursuant to Section 13 or 15(d) of the Security
Exchange Act of 1934
For the Quarterly period ended July 1, 1995
or
( ) Transition Report Pursuant to Section 13 or 15(d) of the Securities
Exchange Act of 1934
For the Transition period from ________________to___________________
Commission File Number 1-7138
CAGLE'S, INC.
GEORGIA 58-0625713
(State or other Jurisdiction of (I.R.S. Employer Identification No.)
Incorporation or Organization)
2000 Hills Avenue, N.W. Atlanta, Georgia 30318
(Address of Principal Executive Offices and Zip Code)
(404) 355-2820
(Registrant's Telephone Number, Including Area Code)
Indicate by check mark whether the Registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
Registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days.
Yes___X___ No________
Indicate the number of shares outstanding of each of the issuer's classes of
common stock, as of the latest practicable date
Class Outstanding July 1, 1995
------------------------------------- ---------------------------------
Class A Common Stock, $1.00 Par Value 5,034,182
PART 1. FINANCIAL INFORMATION
Cagle's, Inc. And Subsidary
Consolidated Balance Sheets
July 1, 1995 and April 1, 1995
(In Thousands, Except Par Value)
(Unaudited)
July 1,1995 July 2, 1994
------------ -------------
Assets
-----------------------------------------
CURRENT ASSETS
Cash $1,345 $462
Accounts receivable, net of allowance for
doubtful accounts of $257 and $141 at
July 1, 1995 and April 1, 1995,
respectively 13,581 15,013
Inventories 26,828 25,282
Other current assets 1,279 1,538
------------ ------------
Total current assets 43,033 42,295
------------ ------------
INVESTMENTS IN AND RECEIVABLES FROM
UNCONSOLIDATED AFFILIATES 11,962 11,697
OTHER ASSETS 846 550
PROPERTY, PLANT, AND EQUIPMENT 68,779 66,897
Less accumulated depreciation (33,759) (32,668)
------------ ------------
Property, plant, and equipment, net 35,020 34,229
------------ ------------
TOTAL ASSETS $90,861 $88,771
============ ============
LIABILITIES & STOCKHOLDERS' EQUITY
-----------------------------------------
CURRENT LIABILITIES
Current Maturities $ 1,572 $ 1,572
Accounts payable 11,469 13,550
Accrued expenses 7,946 7,900
Current income taxes payable 1,420 967
Current deferred income taxes 714 714
------------ ------------
Total Current Liabilities 23,121 24,703
------------ ------------
LONG TERM DEBT (net of current maturities) 17,460 15,233
NONCURRENT DEFERRED INCOME TAXES 4,464 4,464
------------ ------------
STOCKHOLDERS' EQUITY:
Common stock, $1 par value; authorized 9,000
shares and 5034 shares issued 5,034 5,034
Capital in excess of par value 8,366 8,366
Retained earnings 32,416 30,971
------------ ------------
Total stockholders' equity 45,816 44,371
------------ ------------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $90,861 $88,771
============ ============
<FN>
The accompanying notes are an integral part of these consolidated financial
statements.
Cagle's, Inc., & Subsidiary
Consolidated Statements of Income
For the 13 weeks ended July 1, 1995 and July 2, 1994
(Amounts in thousands, except per share data)
(unaudited)
13 wks ended 13 wks ended
July 1, 1995 July 2, 1994
----------- ------------
Net Sales $89,421 $87,972
Costs and Expenses:
Cost of Sales 83,623 78,630
Selling and Delivery 2,599 2,100
General and Administrative 1,607 1,925
------- --------
Total costs and expenses 87,829 82,655
-------- --------
Income From Operations 1,592 5,317
Other Income(Expense):
Interest expense (293) (287)
Income from unconsolidated
affiliates and other
income, net 1,275 510
-------- --------
Income Before Income Taxes 2,574 5,540
Provision For Income Taxes 978 2,102
-------- --------
Net Income $1,596 $3,438
======== ========
Weighted Average Number Of
Common Shares Outstanding 5,034 5,204
======== ========
Net Income Per Common Share $.32 $.66
======== ========
DIVIDENDS PER COMMON SHARE $.0300 $.0250
<FN>
The accompanying notes are an inteegral part of these consolidated
financial statements.
Cagle's, Inc & Subsidary
Consolidated Statements of Cash Flows
For the 13 weeks ended July 1, 1995 and July 2, 1994
(In Thousands)
(unaudited)
July 1, 1995 July 2, 1994
------------ ------------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net Income $1,596 $3,438
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation and amortization 1,100 1,101
(gain)loss on disposal of property, plant and
equipment 0 (17)
Changes in investment in and receivables from
unconsolidated affiliates (265) 191
Changes in assets and liabilities:
Accounts receivables, net 1,432 (2,664)
Inventories (1,546) (424)
Other current assets 259 299
Accounts payable (2,081) 881
Accrued expenses 46 1,065
Income taxes payable 453 (337)
Deferred income taxes 0 1,255
------- -------
Total Adjustments (602) 1,350
------- -------
Net cash provided by operating activities 994 4,788
------- -------
CASH FLOWS FROM INVESTING ACTIVITIES:
Additions to property, plant, and equipment (1,882) (2,532)
(Increase)decrease in other assets (305) (3,487)
Proceeds from the sale of property, plant, and equip. 0 4
------- -------
Net cash used in investing activities (2,187) (6,015)
------- -------
Cash Flows from financing activities:
Payments of long-term debt and capital
lease obligations (773) (307)
Proceeds from issuance of long-term debt 3,000 5,000
Dividends Paid (151) (130)
------- -------
Net cash provided by (used in)financing activities 2,076 4,563
------- -------
NET INCREASE(DECREASE) IN CASH 883 3,336
CASH AT BEGINNING OF PERIOD 462 875
------- -------
CASH AT END OF PERIOD $1,345 $4,211
======= =======
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:
Cash paid during the period for:
Interest $311 $287
======= =======
Income Taxes paid $505 $1,133
======= =======
<FN>
The accompanying notes are an integral part of these consolidated financial
statements.
Cagle's, Inc. and Subsidiary
Notes to Consolidated Condensed Financial Statements
July 1, 1995
(Unaudited)
1. In the opinion of Management the accompanying unaudited consolidated
financial statements contain all adjustments which are of a normal and recuring
nature, necessary to present fairly the consolidated financial position of
Cagle's, Inc. and Subsidiary (the "Company") as of July 1, 1995 and April 1,
1995 and the results of their operations and their cash flows for the 13 weeks
ended July 1, 1995 and July 2, 1994.
2. The results of operations for the 13 weeks ended July 1, 1995 and July 2,
1994 are not necessarily indicative of the results expected for the full year.
3. Inventories consisted of the following (in thousands):
July 1, 1995 April 1, 1995
Finished Products 7,949 7,813
Field Inventory and Breeders 14,830 13,742
Feed Eggs and Medication 2,676 2,243
Supplies 1,373 1,484
-------- ---------
26,828 25,282
4. The weighted average number of shares outstanding, cash dividends per
common share and the Net Income per common share have been restated to reflect
the 2 for 1 stock split to Stockholders of record in January 1995.
5. On June 24, 1995, the Company's plant in Pine Mountain Valley, Georgia was
destroyed by fire. The Company believes that there is sufficient insurance
coverage in place to cover all losses and costs expected to arise from the
fire. However, the exact amount of recovery has not been determined as of the
date. The Company plans to rebuild the facility on the original site.
6. As of May 31, 1995 the Company secured a $40 Million unsecured loan to
finance the construction of its planned broiler complex in Kentucky. This
facility is provided by two banks. As of July 1, 1995 no funds have been
borrowed under this facility.
Cagle's, Inc. and Subsidiary
Management's Discussion and Analysis of Financial Condition and
Results of Operations
July 1, 1995
Financial Condition:
Reduced earnings from operations and continued spending for capital projects
caused the Company to draw down $3 Million of its $20 Million revolver during
the quarter. Working capital, however, increased from the April 1, 1995,
level by $2.3 Million.
During the quarter the Company secured a $40 Million unsecured loan to
provide construction financing for a planned facility in Kentucky. This
project is currently delayed due to the fire at the Pine Mountain facility and
will be reevaluated at a future date. Meanwhile, the financing is available
when required.
Results of Operations:
Sales for the 13 weeks ended July 1, 1995 increased by 1.6% as compared to the
same period of a year ago and cost of sales increased by 6.3% resulting in a
reduced gross margin reduction from 10.6% for the quarter ended July 2, 1994
to 6.5% for the quarter ended July 1, 1995. This change in margin is mainly
the result of $.057 per pound lower market price for broilers during the
quarter as compared to the same period last year and also, additional plant
costs associated with production changes in the Collinsville and Atlanta
plants.
The Company is proceeding to rebuild the Pine Mountain Valley Plant that was
destroyed by fire on June 25, 1995 on the old site. This facility will be
operated as a cost plus plant.
Selling, Delivery and General and Administrative Expenses:
Selling, delivery and general and administrative expenses for the 13 weeks
ended July 1, 1995 increased by 4.5% over the same period of a year ago with
storage and brokerage expenses primarily contibuting to this increase due to
higher inventory levels to support the additional sales.
Interest Expense:
Interest expense for the quarter ended July 1, 1995 is essentially unchanged
from the comparable quarter of a year ago. While short term rates have
increased, overall debt levels were slightly lower prior to borrowing under
the unsecured line of credit in June of 1995.
Income Taxes:
The provision for income taxes for the 13 week periods ended July 1, 1995 and
April 1, 1994 reflects taxes computed at statutory rates.
Part II Other Information
Item 9. Exhibits and Reports on Form 8-K
a. not applicative
b. A report on Form 8-K was filed in April 1995 to disclose the Company's
new unsecured revolving credit agreement.
Signatures
Pursuant to the requirements of the Security Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
Date___August 10, 1995___ _/s/ J. Douglas Cagle________________
J. Douglas Cagle
Chairman and Chief Executive Officer
Date___August 10, 1995___ _/S/ Kenneth_R. Barkley______________
Kenneth R. Barkley
Senior Vice President Finance/Treasurer/CFO