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Announces Quarterly Cash Dividend of
Second Quarter Fiscal 2023 Highlights
-
Record quarterly net sales of
$801.7 million , a 110% increase compared with the same quarter last year, driven by record average conventional egg selling price -
Record quarterly net income of
$198.6 million , or$4.08 per basic and$4.07 per diluted common share - Quarterly gross profit margin of 39.6%
-
Cash dividend of
$1.35 per share
Overview
“We commend our managers and employees across our production facilities who continued to efficiently manage our operations and keep pace with demand. Our results demonstrate the strength of our operating model and ability to execute our growth strategy in a dynamic environment. We believe we are uniquely positioned to leverage our scale to manage various market cycles and continue to extend our customer reach. Above all, we remain focused on our mission – to be the most sustainable producer and reliable supplier of fresh shell eggs and egg products in the United States.”
“Egg prices have continued to move higher in fiscal 2023 due to the effects of a further reduction in supply related to the impact of the HPAI outbreak, combined with good customer demand buoyed in the second quarter of fiscal 2023 by typical seasonal consumer demand. Conventional egg net average selling price per dozen increased to
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13 Weeks Ended |
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26 Weeks Ended |
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Dozen Eggs Sold (000) |
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284,086 |
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|
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269,555 |
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|
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559,403 |
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|
|
524,174 |
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Conventional Dozen Eggs Sold (000) |
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187,976 |
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192,135 |
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367,688 |
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376,003 |
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Specialty Dozen Eggs Sold (000) |
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96,110 |
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77,420 |
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|
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191,715 |
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148,171 |
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Dozen Eggs Produced (000) |
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261,358 |
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|
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256,786 |
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|
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519,012 |
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|
|
493,244 |
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% Specialty Sales (dozen) |
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33.8 |
% |
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28.7 |
% |
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34.3 |
% |
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28.3 |
% |
% Specialty Sales (dollars) |
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29.4 |
% |
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39.7 |
% |
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30.5 |
% |
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40.7 |
% |
Net Average Selling Price (per dozen) |
$ |
2.709 |
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$ |
1.365 |
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$ |
2.496 |
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$ |
1.302 |
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Net Average Selling Price Conventional Eggs (per dozen) |
$ |
2.883 |
|
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$ |
1.151 |
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$ |
2.631 |
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$ |
1.072 |
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Net Average Selling Price Specialty Eggs (per dozen) |
$ |
2.370 |
|
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$ |
1.898 |
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$ |
2.236 |
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$ |
1.885 |
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Feed Cost (per dozen) |
$ |
0.685 |
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$ |
0.529 |
|
|
$ |
0.676 |
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$ |
0.537 |
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Sales Performance & Operating Highlights
Net sales in the second quarter of fiscal 2023 were
For the second quarter of fiscal 2023, total dozens sold increased 5.4% to 284.1 million versus 269.6 million in the prior-year quarter, driven by strong sales volumes in the specialty eggs category. Conventional egg volumes sold decreased 2.2% compared with second quarter 2022, while specialty egg volumes sold increased by 24.1%. 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 three quarters but is atypical historically. Demand was further supported by California’s and Massachusetts’ cage-free mandates going into effect
The Company reported operating income of
Product Mix & Cage-Free Eggs
As market demand for specialty eggs, especially cage-free eggs, has increased,
The Company is also focused on additional ways to enhance its product mix and support new opportunities in the restaurant, institutional and industrial food products arena. On
Table Egg Supply Outlook
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
Cal-Maine Foods’ membership in ProEgg is expected to provide benefits for its customers, including supply chain stability and enhanced reliability. Initially, Cal-Maine Foods’ customer relationships and customer support are expected to remain the same. At some point in the future, it is anticipated that each producer member will sell through ProEgg the shell eggs it produces for sale in the western states covered by the cooperative. Customers would have a single point of contact for their shell egg purchases, as ProEgg would have a dedicated team to market and sell the members’ combined egg production in the region.
Miller commented, “Cal-Maine Foods’ top priority in joining as a member of ProEgg is serving our valued customers in this important market region. During this initial phase, we will continue our work to confirm that our participation in this new cooperative is in the best interest of our customers and aligns with our long-term interests. This consideration will take place before moving to the next phase of membership, and we expect this process to be completed on or before the end of our fiscal year 2023.”
Dividend Payment
For second quarter 2023,
About
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
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FINANCIAL HIGHLIGHTS |
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(Unaudited) |
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(In thousands, except per share amounts) |
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SUMMARY STATEMENTS OF OPERATIONS |
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13 Weeks Ended |
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26 Weeks Ended |
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Net sales |
|
$ |
801,700 |
|
$ |
381,723 |
|
$ |
1,460,044 |
|
$ |
706,709 |
Cost of sales |
|
|
483,851 |
|
|
337,976 |
|
|
924,705 |
|
|
656,317 |
Gross profit |
|
|
317,849 |
|
|
43,747 |
|
|
535,339 |
|
|
50,392 |
Selling, general and administrative |
|
|
57,952 |
|
|
47,780 |
|
|
111,559 |
|
|
94,305 |
(Gain) loss on disposal of fixed assets |
|
|
29 |
|
|
(1,968) |
|
|
62 |
|
|
(2,181) |
Operating income (loss) |
|
|
259,868 |
|
|
(2,065) |
|
|
423,718 |
|
|
(41,732) |
Other income, net |
|
|
2,400 |
|
|
2,533 |
|
|
4,030 |
|
|
8,336 |
Income (loss) before income taxes |
|
|
262,268 |
|
|
468 |
|
|
427,748 |
|
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(33,396) |
Income tax expense (benefit) |
|
|
63,974 |
|
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(677) |
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|
104,320 |
|
|
(16,515) |
Net income (loss) |
|
|
198,294 |
|
|
1,145 |
|
|
323,428 |
|
|
(16,881) |
Less: Loss attributable to noncontrolling interest |
|
|
(293) |
|
|
(28) |
|
|
(446) |
|
|
(28) |
Net income (loss) attributable to |
|
$ |
198,587 |
|
$ |
1,173 |
|
$ |
323,874 |
|
$ |
(16,853) |
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Net income (loss) per common share: |
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Basic |
|
$ |
4.08 |
|
$ |
0.02 |
|
$ |
6.66 |
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$ |
(0.34) |
Diluted |
|
$ |
4.07 |
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$ |
0.02 |
|
$ |
6.63 |
|
$ |
(0.34) |
Weighted average shares outstanding: |
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Basic |
|
|
48,624 |
|
|
48,857 |
|
|
48,624 |
|
|
48,859 |
Diluted |
|
|
48,840 |
|
|
49,016 |
|
|
48,827 |
|
|
48,859 |
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FINANCIAL HIGHLIGHTS |
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(Unaudited) |
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(In thousands) |
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SUMMARY BALANCE SHEETS |
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ASSETS |
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|
|
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|
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Cash and short-term investments |
|
$ |
379,349 |
|
$ |
174,513 |
Receivables, net |
|
|
305,111 |
|
|
219,404 |
Inventories, net |
|
|
280,582 |
|
|
263,316 |
Prepaid expenses and other current assets |
|
|
8,968 |
|
|
4,286 |
Current assets |
|
|
974,010 |
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|
661,519 |
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|
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Property, plant and equipment, net |
|
|
703,882 |
|
|
677,796 |
Other noncurrent assets |
|
|
85,548 |
|
|
88,174 |
Total assets |
|
$ |
1,763,440 |
|
$ |
1,427,489 |
|
|
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LIABILITIES AND STOCKHOLDERS' EQUITY |
|
|
|
|
|
|
Accounts payable and accrued expenses |
|
$ |
240,347 |
|
$ |
148,018 |
Dividends payable |
|
|
66,202 |
|
|
36,656 |
Current liabilities |
|
|
306,549 |
|
|
184,674 |
|
|
|
|
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|
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Deferred income taxes and other liabilities |
|
|
136,586 |
|
|
138,470 |
Stockholders' equity |
|
|
1,320,305 |
|
|
1,104,345 |
Total liabilities and stockholders' equity |
|
$ |
1,763,440 |
|
$ |
1,427,489 |
View source version on businesswire.com: https://www.businesswire.com/news/home/20221228005357/en/
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