[GRAPHIC OMITTED]
CM Contact: Fred Adams, Jr.
Chairman and CEO
(601) 948-6813
CAL-MAINE FOODS, INC. REPORTS THIRD QUARTER FISCAL 2004 RESULTS
JACKSON, Miss. (March 29, 2004) - Cal-Maine Foods, Inc. (Nasdaq:CALM), today
reported results for the third quarter and nine months ended February 28, 2004.
Net sales for the third quarter of fiscal 2004 were $165.7 million compared with
net sales of $106.8 million for the same quarter of fiscal 2003. The Company
reported net income of $23.9 million, or $1.98 per basic share, for the third
quarter of fiscal 2004, compared with net income of $7.6 million, or $0.65 per
basic share, for the year-earlier period. During the third quarter, the Company
recorded an after-tax charge of $6.1 million, or $0.50 per basic share, against
third quarter earnings for stock compensation. This charge was in connection
with the Company's stock options and the related tandem stock appreciation
rights. The portion of the accrual for unexercised stock options, $4.6 million
pre-tax, is non-cash and the corresponding liability will be converted to equity
at the time of exercise.
For the first nine months of fiscal 2004, net sales were $430.0 million
compared with net sales of $284.0 million for the same period last year. The
Company reported net income of $49.2 million, or $4.15 per basic share, for the
first nine months of 2004, compared with net income of $7.9 million, or $0.67
per basic share, for the prior-year period. During the current nine-month
period, the Company recorded an after-tax charge of $15.3 million, or $1.29 per
basic share, for stock compensation relating to stock option and tandem stock
appreciation rights. At February 28, 2004, options for 303,000 shares and
related tandem stock appreciation rights remain unexercised, of which 258,000
are not available for exercise until December 13, 2004 or later. Future charges
to earnings for these options and rights will correlate to changes in the
Company's stock price as the options are marked to market value.
Fred Adams, Jr., chairman and chief executive officer of Cal-Maine
Foods, Inc., stated, "We are pleased to report another solid performance for
Cal-Maine Foods for the third fiscal quarter of 2004. Our strong revenue growth
and improved profitability over the prior-year period reflects a much more
favorable egg market and continued good performance in our operational
efficiencies. The demand for eggs continues to be very strong, and we believe
that Cal-Maine is well positioned to benefit from this trend for the remainder
of our fiscal year."
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 26 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. POST OFFICE BOX 2960 * JACKSON, MISSISSIPPI 39207
PHONE 601-948-6813 FAX 601-969-0905
CALM Reports Third Quarter Results
Page 2
March 29, 2004
CAL-MAINE FOODS, INC. AND SUBSIDIARIES
FINANCIAL HIGHLIGHTS
(Unaudited)
(In thousands, except per share amounts)
13 Weeks Ended 39 Weeks Ended
------------------------------- -------------------------------
Feb. 28, March 1, Feb. 28, March 1,
2004 2003 2004 2003
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Net sales $ 165,655 $ 106,822 $ 429,979 $ 284,024
Gross profit 57,784 24,808 135,237 50,234
Operating income 36,443 13,179 77,465 17,773
Income before income taxes 37,299 11,939 77,006 12,403
------------- -------------- ------------- --------------
Net income $ 23,872 $ 7,605 $ 49,248 $ 7,902
============= ============== ============= ==============
Net income per common share:
Basic $ 1.98 $ 0.65 $ 4.15 $ 0.67
============= ============== ============= ==============
Diluted $ 1.96 $ 0.64 $ 4.06 $ 0.67
============= ============== ============= ==============
Weighted average shares outstanding:
Basic 12,048 11,764 11,881 11,764
============= ============== ============= ==============
Diluted 12,209 11,840 12,140 11,837
============= ============== ============= ==============
Depreciation expense $ 4,060 $ 3,998 $ 12,190 $ 12,303
SUMMARY BALANCE SHEET
(Unaudited)
(In thousands, except per share amounts)
Feb. 28, May 31,
ASSETS 2004 2003
------------- --------------
Cash $ 55,140 $ 6,092
Receivables 33,126 26,353
Inventories 50,421 51,005
Other 937 1,729
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Current assets 139,624 85,179
Fixed assets (net) 133,449 138,192
Other assets 16,363 12,021
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Total assets $ 289,436 $ 235,392
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LIABILITIES AND SHAREHOLDERS' EQUITY
Current portion of long-term debt $ 10,319 $ 12,592
Accounts payable 27,910 21,386
Other current liabilities 18,668 11,646
Current deferred income taxes 11,806 11,806
------------- --------------
Current liabilities 68,703 57,430
Deferred taxes and liabilities 16,565 16,225
Long-term debt 81,169 95,652
Shareholders' equity 122,999 66,085
------------- --------------
Total liabilities and shareholders' equity $ 289,436 $ 235,392
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