Cal-Maine Foods, Inc. Reports Second Quarter Fiscal 2013 Results Business Wire JACKSON, Miss. -- December 31, 2012 Cal-Maine Foods, Inc. (NASDAQ: CALM) today announced resultsfor the second quarter and six months ended December 1, 2012. Net sales for the second quarter of fiscal 2013 were $328.9 million compared with net sales of $290.4million for the same quarter of fiscal 2012. The Company reported net income of $14.3million, or$0.60 per basic share, for the second quarter of fiscal 2013 compared with net income of $23.3million, or $0.97 per basic share, for the second quarter of fiscal 2012. For the first six months of fiscal 2013, net sales were $601.8 million compared with net salesof $534.2 million for the prior-year period. The Company reported net income of $23.7 million, or $0.99per basicshare, for the first half of fiscal 2013 compared with net income of $26.4 million, or $1.11per basic share, for the year-earlier period. Dolph Baker, chairman, president and chief executive officer of Cal-Maine Foods, Inc., stated, “We are pleased with the continued growth in sales for the second quarter of fiscal 2013; however, our operating results also reflect challenging market conditions and increased input costs.The higher sales reflect a 9.1 percent growth in dozens sold and a 4.0 percent increase in average selling prices compared with the second quarter of fiscal 2012. Our specialty egg sales accounted for 16.4 percent of dozens sold and 22.9percent of total shell egg sales revenue for thequarter. Specialty eggs are an important area of focus for Cal-Maine Food’s growth strategy as they continue to gain popularity with consumers looking for healthy choices, and have higher and less cyclical retail selling prices. Specialty egg prices were up 4.8 percent in the second quarter of fiscal 2013 compared with the same period last year. “Our profitability for the second quarter of fiscal 2013 was adversely affected by higher costs for corn and soybean meal, our primary feed ingredients, and additional expenses related to recent acquisitions. The severe drought over the summer months pushed corn prices to record high levels at the end of the summer. While these costs have come off their peak levels, our feed costs per dozen were 23.4 percent higher in the second quarter than the same period a year ago. We expect our feed costs to remain high and volatile for the remainder of fiscal 2013. In addition, according to the most recent USDA report, the number of laying hens on December 1, 2012, was 2.5 percent higher compared with a year ago, affecting the current market supply of eggs. However, the hatch for egg- type chicks has declined over the past two consecutive years and was down 2.9 percent for the first 11 months of calendar 2012 compared with the same period in calendar 2011. While we note these market dynamics for Cal-Maine Foods and our industry, we remain focused on executing our strategy to be an efficient low-cost producer. “We continued to expand our operations in fiscal 2013 as we completed another acquisitionduring the second quarter,” added Baker. “As previously announced, we acquired the commercial egg production and related assets of Texas-based Maxim Production Co., Inc., including a feed mill and two production complexes with capacity for approximately 3.5 million layinghens with related pullet capacity. In addition, we added related contract capacity for approximately 500,000 laying hens. This transaction, along with our previous acquisition of the Pilgrim’s Pride egg production assets, further advances our strategy to grow our business throughselective acquisitions. Our management team is focused on making the right investments to ensure a successful integration of these additional facilities. We are pleased with our progress to date and look forward to the new opportunities ahead for Cal-Maine Foods.” For the second quarter of fiscal 2013, Cal-Maine Foods will pay a cash dividend of approximately $0.199pershare to holders of its common and Class A common stock. The amount paid could varyslightlybased on the amount of outstanding shares on the record date. The dividend is payable February14,2013, to shareholders of record on January 30, 2013. Selected operating statistics for the second quarter and year to date periods of fiscal 2013 compared with the prior year periods are shown below: 13 Weeks Ended 26 Weeks Ended December 1, November 26, December 1, November 26, 2012 2011 2012 2011 Dozen Eggs 238,064 218,132 448,125 426,228 Sold (000) Dozen Eggs Produced 179,849 166,233 337,751 325,677 (000) % Specialty Sales 16.4 % 16.3 % 16.2 % 16.0 % (dozen) Net Average Selling $ 1.323 $ 1.272 $ 1.283 $ 1.196 Price (dozen) Feed Cost $ 0.574 $ 0.465 $ 0.547 $ 0.474 (dozen) % Specialty Sales 22.9 % 22.7 % 23.2 % 23.1 % Dollars Cal-Maine Foods, Inc. is primarily engaged in the production, grading, packing and saleof fresh shelleggs, including conventional, cage-free, organic and nutritionally-enhanced eggs. TheCompany, which is headquartered inJackson, Mississippi, is the largest producer and distributor of fresh shell eggs in the UnitedStates and sellsthemajority of its shell eggs in approximately 29states 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 statementsas 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 factorsthat 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 SECfilings (including its Annual Reportson Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K), (ii)therisks and hazards inherent in the shell egg business (including disease, pests, weather conditionsand potential for recall), (iii)changes in the demand for and market prices of shell eggs and feed costs, (iv) risks, changes or obligations that could result from our future acquisition of newflocks or businesses, and (v) adverse resultsin pending litigation matters. SEC filings may beobtained fromthe SEC or the Company’s website, www.calmainefoods.com. Readers are cautionednot to place undue reliance on forward-looking statementsbecause, while we believetheassumptions on whichthe forward-looking statements are based are reasonable, therecan be no assurance that these forward-looking statements will prove to be accurate. Further,the forward-looking statementsincluded herein are only made as of the respective dates thereof, or if nodate is stated, as of thedate hereof. Except as otherwise required by law, we disclaim any intentor obligation to updatepublicly these forward-looking statements, whether as aresult of new information, future events or otherwise. SUMMARY STATEMENTS OF INCOME (Unaudited) (In thousands, except per share amounts) 13 Weeks Ended 26 Weeks Ended December 1, November December November 2012 26, 1, 26, 2011 2012 2011 Net sales $ 328,870 $ 290,369 $ 601,798 $ 534,211 Gross profit 51,298 61,492 96,013 95,278 Operating 20,366 35,673 35,963 41,630 income Other income 2,031 335 1,135 (889 ) (expense) Income before 22,397 36,008 37,098 40,741 income taxes Net income $ 14,290 $ 23,260 $ 23,705 $ 26,377 Net income per common share: Basic $ 0.60 $ 0.97 $ 0.99 $ 1.11 Diluted $ 0.60 $ 0.97 $ 0.99 $ 1.10 Weighted average shares outstanding: Basic 23,941 23,871 23,931 23,869 Diluted 23,978 23,950 23,968 23,947 SUMMARY BALANCE SHEETS December 1, June 2, 2012 2012 ASSETS Cash and short-term investments $ 163,083 $ 260,751 Receivables 99,964 62,768 Inventories 143,671 117,158 Prepaid expenses and other current assets 2,113 1,525 Current assets 408,831 442,202 Property, plant and equipment (net) 271,199 222,615 Other noncurrent assets 63,959 61,499 Total assets $ 743,989 $ 726,316 LIABILITIES AND STOCKHOLDERS' EQUITY Accounts payable and accrued expenses $ 101,158 $ 103,724 Current maturities of long-term debt 11,163 11,458 Deferred income taxes 28,883 25,474 Current liabilities 141,204 140,656 Long-term debt, less current maturities 59,309 64,762 Deferred income taxes and other liabilities 43,079 41,570 Stockholders' equity 500,397 479,328 Total liabilities and stockholders' equity $ 743,989 $ 726,316 Contact: Cal-Maine Foods, Inc. Dolph Baker, 601-948-6813 Chairman, President and CEO or Timothy A. Dawson, 601-948-6813 Vice President and CFO
Cal-Maine Foods, Inc. Reports Second Quarter Fiscal 2013 Results
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