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Net sales for the third quarter of fiscal 2019 were
For the thirty-nine weeks ended
“Market prices for shell eggs have been volatile, with the Southeast
large market average price down 19.5 percent in the third quarter
compared with the prior-year quarter. At the same time, our average
customer selling price for the quarter, due to the strength of our
specialty egg business, was down 11.1 percent. While demand trends have
been strong throughout fiscal 2019, with near record per capita U.S. egg
consumption, we believe future supply concerns are affecting market
prices. Actual hen numbers from the
“Specialty eggs, excluding co-pack sales, accounted for 24.7 percent of
our sales volumes for the third quarter, compared with 24.3 percent a
year ago. Specialty egg revenue was 35.0 percent of total shell egg
revenue, compared with 30.2 percent for the third quarter of fiscal
2018, reflecting slightly higher volumes and a
In
Baker added, “We have continued to focus on responsible and efficient
management across all of our operations in fiscal 2019. For the third
quarter, our farm production costs per dozen were up 6.9 percent over
the third quarter last year, primarily due to higher feed costs. Our
feed costs per dozen were up 6.3 percent, reflecting higher prices paid
for feed ingredients primarily related to less favorable crop conditions
in the south central
“We are pleased with the trends in our business and our ability to execute our growth strategy and respond to both the challenges and opportunities in a dynamic market. We continue to invest in our operations, and we are well positioned to expand our own capacity or consider potential acquisitions to support our future growth. Above all, we are focused on meeting the demands of our valued customers with a favorable product mix, including cage-free and other specialty eggs,” said Baker.
For the third quarter of fiscal 2019,
Selected operating statistics for the third quarter and year to date period of fiscal 2019 compared with the prior-year period are shown below:
13 Weeks Ended | 39 Weeks Ended | |||||||||||||||||||
March 2, |
March 3, |
March 2, |
March 3, |
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Dozen Eggs Sold (000) | 271,805 | 273,209 | 784,128 | 785,758 | ||||||||||||||||
Dozen Eggs Produced (000) | 222,213 | 221,119 | 654,380 | 657,578 | ||||||||||||||||
% Specialty Sales (dozen)* | 24.7 | % | 24.3 | % | 24.0 | % | 22.9 | % | ||||||||||||
% Specialty Sales (dollars)* | 35.0 | % | 30.2 | % | 34.8 | % | 33.3 | % | ||||||||||||
Net Average Selling Price (per dozen) | $ | 1.373 | $ | 1.545 | $ | 1.331 | $ | 1.303 | ||||||||||||
Net Average Selling Price Specialty Eggs (per dozen)* | $ | 1.954 | $ | 1.933 | $ | 1.935 | $ | 1.907 | ||||||||||||
Feed Cost (per dozen) | $ | 0.421 | $ | 0.396 | $ | 0.416 | $ | 0.387 | ||||||||||||
*Excludes co-pack specialty eggs |
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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), (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, and (vi) adverse
results in pending litigation matters.
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 | |||||||||||||||||||
March 2, 2019 |
March 3, 2018 |
March 2, 2019 |
March 3, 2018 |
|||||||||||||||||
Net sales | $ | 383,992 | $ | 435,820 | $ | 1,080,616 | $ | 1,059,837 | ||||||||||||
Cost of sales | 301,551 | 315,722 | 870,511 | 840,007 | ||||||||||||||||
Gross profit | 82,441 | 120,098 | 210,105 | 219,830 | ||||||||||||||||
Selling, general, and administrative expense | 45,009 | 44,175 | 132,500 | 128,045 | ||||||||||||||||
Legal settlement expense | — | — | 2,250 | 80,750 | ||||||||||||||||
Gain on disposal of fixed assets | (758 | ) | (279 | ) | (847 | ) | (325 | ) | ||||||||||||
Operating income | 38,190 | 76,202 | 76,202 | 11,360 | ||||||||||||||||
Other income, net | 15,291 | 11,855 | 22,546 | 12,087 | ||||||||||||||||
Income before income taxes and noncontrolling interest | 53,481 | 88,057 | 98,748 | 23,447 | ||||||||||||||||
Income tax (benefit) expense | 13,616 | (8,301 | ) | 24,134 | (30,653 | ) | ||||||||||||||
Net income before noncontrolling interest | 39,865 | 96,358 | 74,614 | 54,100 | ||||||||||||||||
Less: Net income (loss) attributable to noncontrolling interest | 88 | 64 | 625 | (65 | ) | |||||||||||||||
Net income attributable to Cal-Maine Foods, Inc. | $ | 39,777 | $ | 96,294 | $ | 73,989 | $ | 54,165 | ||||||||||||
Net income per share: | ||||||||||||||||||||
Basic | $ | 0.82 | $ | 1.99 | $ | 1.53 | $ | 1.12 | ||||||||||||
Diluted | $ | 0.82 | $ | 1.99 | $ | 1.52 | $ | 1.12 | ||||||||||||
Weighted average shares outstanding | ||||||||||||||||||||
Basic | 48,417 | 48,361 | 48,416 | 48,340 | ||||||||||||||||
Diluted | 48,533 | 48,476 | 48,545 | 48,460 | ||||||||||||||||
CAL-MAINE FOODS, INC. AND SUBSIDIARIES | |||||||||
FINANCIAL HIGHLIGHTS | |||||||||
(Unaudited) |
|||||||||
(In thousands) |
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SUMMARY BALANCE SHEETS | |||||||||
March 2, 2019 | June 2, 2018 | ||||||||
ASSETS | |||||||||
Cash and short-term investments | $ | 341,852 | $ | 331,017 | |||||
Receivables, net | 93,222 | 85,839 | |||||||
Inventories | 178,418 | 168,644 | |||||||
Prepaid expenses and other current assets | 3,912 | 2,020 | |||||||
Current assets | 617,404 | 587,520 | |||||||
Property, plant and equipment (net) | 439,300 | 425,384 | |||||||
Other noncurrent assets | 137,751 | 137,543 | |||||||
Total assets | $ | 1,194,455 | $ | 1,150,447 | |||||
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||||
Accounts payable and accrued expenses | $ | 84,116 | $ | 87,209 | |||||
Accrued dividends payable | 13,245 | 17,093 | |||||||
Current maturities of long-term debt and capital lease obligations | 2,444 | 3,536 | |||||||
Current liabilities | 99,805 | 107,838 | |||||||
Long-term debt and capital lease obligations, less current maturities | 677 | 2,554 | |||||||
Deferred income taxes and other liabilities | 85,930 | 84,373 | |||||||
Stockholders' equity | 1,008,043 | 955,682 | |||||||
Total liabilities and stockholders' equity | $ | 1,194,455 | $ | 1,150,447 |
View source version on businesswire.com: https://www.businesswire.com/news/home/20190401005119/en/
Source:
Dolph Baker, Chairman and CEO
Max P. Bowman, Vice President and CFO
(601)
948-6813