Sanderson Farms, Inc. Holds Annual Meeting of Stockholders
LAUREL, Miss. -- February 14, 2013
Sanderson Farms, Inc. (NASDAQ: SAFM) announced todaythat it held itsannual
meeting of stockholders this morning at its home office in
Laurel,Mississippi. In the formal business conducted at the meeting,
stockholders re-elected five directors to three-year terms expiring at the
2016 annual meeting. Management also reported on the Company’s performance
during fiscal 2012. Re-elected to three-year terms were Fred Banks, Jr.,
Partner, Phelps Dunbar LLP; Toni D. Cooley, President of Systems Electro
Coating, LLC; Robert C. Khayat, Retired Chancellor of the University of
Mississippi; Diane Mooney, Retired Senior Vice President, Southern Living at
Home and Gail Jones Pittman, President, Gail Pittman, Inc.
Other directors, whose terms continue to future years, are: John H. Baker,
John Bierbusse, Lampkin Butts, Mike Cockrell, Beverly Wade Hogan, Phil
Livingston, Charles W. Ritter, Jr. and Joe F. Sanderson, Jr.
In other action at the annual meeting, stockholders ratified the selection of
Ernst&Young LLP as the Company’s independent auditors for the fiscal year
ending October31,2013. Ernst&Young has served as the independent auditors
for Sanderson Farms since the Company went public in1987.
In his remarks to stockholders concerning the Company’s operations, Joe F.
Sanderson, Jr., chairman and chief executive officer of Sanderson Farms, Inc.,
said, “Fiscal 2012 marked another challenging year for Sanderson Farms and the
poultry industry. While our financial and operating results reflect record
production and sales, a significant reduction of outstanding debt, and a
return to profitability, the prevailing economic environment and rising feed
costs continue to present challenges for our Company and our industry. That
said, we are proud of the way our Company responded to the challenges we faced
in fiscal 2012.
“Over the past fiscal year, our revenues reached a new record of $2.4 billion,
a 20.6 percent increase compared with the previous record set in fiscal 2011
of just under $2.0 billion,” added Sanderson. “This revenue growth was driven
by improved market prices for our poultry products, higher volumes due to our
new Kinston, North Carolina, plant reaching near full production, and steady
consumer demand for our products at the retail grocery store level. We
processed a record 2.9 billion pounds of dressed poultry in fiscal 2012
compared with 2.8 billion pounds during fiscal 2011.”
The Company also announced the selection of a new location for the
construction of its next poultry complex. The new big bird deboning complex
will consist of a feed mill, hatchery, poultry processing plant and waste
water facility, all located in and near Palestine, Texas. This facility will
complement the Company’s existing operations located in Bryan and Waco, Texas.
Sanderson noted, “The state of Texas has been an outstanding place for
Sanderson Farms to do business. We look forward to the new marketing
opportunities the new facility will create for us in this important region.
However, construction of the new facility remains on hold until we have better
visibility on future prices and availability of grain, and is subject to other
contingencies including obtaining necessary permits, negotiating construction
contracts, completing construction and obtaining board approval to move
forward with the project.”
“As we look to the year ahead, we are cautiously optimistic that the national
economic recovery is beginning to gain traction. At the same time, we see
challenges ahead for our industry with expected higher grain costs. We also do
not expect to see a meaningful improvement in demand from our food service
customers until the national employment situation improves and consumers begin
to dine out again on a consistent basis. While we acknowledge these more
immediate challenges, we will continue to manage Sanderson Farms for the long
term. This strategy has historically served us well throughout the cycles that
characterize our industry. With a strong financial position, we will execute
this same strategy in fiscal 2013,” Sanderson concluded.
Sanderson Farms, Inc. is engaged in the production, processing, marketing and
distributionof fresh and frozen chicken and further processed and partially
cooked chicken. Its shares trade on the NASDAQ Global Select Market under
This press release includes forward-looking statements within the meaning of
the “safe harbor” provisions of the Private Securities Litigation Reform Act
of 1995, as amended. Forward-looking statements are based on a number of
assumptions about future events and are subject to various risks,
uncertainties and other factors that may cause actual results to differ
materially fromthe views, beliefs, projections and estimatesexpressed in
such statements. Theserisks, uncertainties and other factors include, but are
not limited to those discussed under“Risk Factors” inthe Company’s Annual
Report on Form 10-K for the year ended October 31,2012, and the following:
(1) Changes in the market price for the Company’s finished products and feed
grains, both of whichmay fluctuate substantially and exhibit cyclical
characteristics typically associated with commodity markets.
(2) Changes in economic and business conditions, monetary and fiscal policies
or the amount of growth, stagnation or recession in the global or U.S.
economies, either of which may affect the value of inventories, the
collectability of accounts receivable or the financial integrity of customers,
and theability of the end user or consumer to afford protein.
(3) Changes in the political or economic climate, trade policies, laws and
regulations or the domesticpoultry industry of countries to which the Company
or other companies in the poultry industry ship product, and other changes
that might limit the Company’s or the industry’s access to foreign markets.
(4) Changes in laws, regulations, and other activities in government agencies
and similar organizations applicable to the Company and the poultry industry
and changes in laws, regulations and other activities in government agencies
and similar organizations related to food safety.
(5) Various inventory risks due to changes in market conditions including, but
not limited to, the risk that market values of live and processed poultry
inventories might be lower than the cost of such inventories, requiring a
downward adjustment to record the value of such inventories at the lower of
cost or market as required by generally accepted accounting principles.
(6) Changes in and effects of competition, which is significant in all markets
in which the Company competes, and the effectiveness of marketing and
advertising programs. The Company competes with regional and national firms,
some of which have greater financial and marketing resources thanthe Company.
(7) Changes in accounting policies and practices adopted voluntarily by the
Company or required tobe adopted by accounting principles generally accepted
in the United States.
(8) Disease outbreaks affecting the production performance and/or
marketability of the Company’s poultry products, or the contamination of its
(9) Changes in the availability and cost of labor and growers.
(10) The loss of any of the Company’s major customers.
(11) Inclement weather that could hurt Company flocks or otherwise adversely
affect its operations, or changes in global weather patterns that could impact
the supply and price of feed grains.
(12) Failure to respond to changing consumer preferences.
(13) Failure to successfully and efficiently start up and run a new plant or
integrate any business theCompany might acquire.
Readers are cautioned not to place undue reliance on forward-looking
statements made byoron behalf of Sanderson Farms. Each such statement speaks
only as of the day it was made. The Company undertakes no obligation to update
or to revise any forward-looking statements. Thefactors described above
cannot be controlled by the Company. When used in this press release or in the
related conference call,thewords “believes”, “estimates”, “plans”,
“expects”, “should”, “outlook”, and “anticipates” and similarexpressions as
they relate to the Company or its management are intended to
identifyforward-looking statements. Examples of forward-looking statements
include statements ofthe Company’s belief about future demand for its
products, future prices for feed grains and future production levels.
Sanderson Farms, Inc.
Mike Cockrell, 601-649-4030
Treasurer & Chief Financial Officer
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