Cal-Maine Foods, Inc. Reports Fourth Quarter and Fiscal 2013 Results

  Cal-Maine Foods, Inc. Reports Fourth Quarter and Fiscal 2013 Results

Business Wire

JACKSON, Miss. -- July 29, 2013

Cal-Maine Foods, Inc. (NASDAQ:CALM) today announced financial resultsfor the
fourth quarter and fiscal year ended June 1, 2013.

For the fourth quarter of fiscal 2013, net sales were $325.9 million compared
with net sales of $275.2million for the fourth quarter a year ago. The
Company reported a net loss of $3.8 million, or $0.16 per basic share, for the
fourth quarter of fiscal 2013 compared with net earnings of $37.3 million, or
$1.56 per basic share, for the same period last year. Results for the fourth
quarter of 2013 include a one-time charge of $17.0 million, or $0.71 per basic
share, after tax, related to the settlement of a direct purchaser class claim
against the Company. Results for the fourth quarter of fiscal 2012 included a
one-time gainof approximately $27.0 million, or $1.12 per share, after tax,
as a result of a distribution from Eggland’s Best, Inc. related to the joint
venture between Eggland’s Best, Inc. and Land O’Lakes, Inc., announced
onMay1, 2012. Excluding these one-time items, net earnings were $13.2
million, or $0.55 per basic share, for the fourth quarter of fiscal 2013
compared with $10.3 million, or $0.44 per basic share, for the fourth quarter
of fiscal 2012. The fourth quarter of fiscal 2013 had 13 weeks compared with
14 weeks in the prior year period.

For the fiscal year 2013, net sales were $1.3 billion compared with net sales
of $1.1 billion for fiscal2012. The Company reported net income of $50.4
million, or $2.10 per basic share, for fiscal 2013 compared withnet income of
$89.7 million, or $3.76 per basic share, in fiscal 2012. Excluding the
one-time items described above for the fourth quarter of each fiscal year, net
income for fiscal 2013 was $67.5 million, or $2.81 per basic share, compared
with $62.7 million, or $2.64 per basic share, in fiscal 2012. Fiscal 2013 had
52 weeks comparedwith 53 weeks in fiscal 2012.

As announced on July 23, 2013, the Company reached a settlement in an egg
antitrust class action claim, whereby the Company has agreed to make a single
payment of $28.0 million, which amounts to a charge of $17.0 million, or $0.71
per basic share, after tax. Dolph Baker, chairman, president and chief
executive officer of Cal-MaineFoods, Inc., stated, “We believe we have
negotiated a settlement for an amount that is in the best interest of our
Company and our shareholders. While the one-time charge related to the
settlement affected our fourth quarter and fiscal 2013 financial results, we
had a solid operating performance and we do not expect any material future
impact on our operations. With this distraction behind us, we will focus on
our business strategy and the opportunities ahead in fiscal 2014.”

Commenting on the results for the fourth quarter and fiscal 2013, Baker said,
“We were pleased with our results with our fourth quarter sales up 18 percent
over the same period a year ago. These results reflect higher volumes related
to acquisitions with a 6 percent increase in eggs produced and sold compared
with the same period a year ago. Notably, we achieved this growth even though
we had an extra week of sales in the previous year’s fourth quarter.

“For the year, we were pleased to exceed our previous year’s sales record with
$1.3 billion in sales,” Baker noted. “We experienced strong demand for shell
eggs throughout the year from our retail, egg product and export customers.
Sales of specialty eggs accounted for 16.4 percent of our total number of eggs
sold and 23.7 percent of our shell egg sales revenue for the year. Specialty
eggs have been an important area of strategic focus for Cal-Maine and, as a
result, we achieved a 7.8 percent increase in specialty egg volume for the
year and a 6.1 percent increase in specialty egg selling prices. Overall, our
average selling prices were up 7.9 percent in fiscal 2013. We expect specialty
eggs, which have a higher retail selling price, will continue to gain market
share over regular eggs as more consumers are willing to pay for these premium

“Our operations have continued to run well in fiscal 2013, in spite of
experiencing higher and more volatile feed costs primarily related to a tight
national corn supply. For the year, our feed costs per dozen were up 15
percent compared with fiscal 2012, and the higher input costs adversely
affected our gross profit margins. In spite of these cost pressures, our
management team has continued to focus on making Cal-Maine an efficient,
low-cost producer with consistent operating results. Looking ahead, we are
cautiously optimistic about the yield of this year’s corn and soybean crops
which could provide some relief to our feed costs in fiscal 2014.

“Overall, we are very pleased with Cal-Maine’s performance in fiscal 2013 and
our ability to execute our strategy in the marketplace. We have worked hard
this year to integrate the operations of both the Pilgrim’s Pride and Maxim
egg operations and we are pleased with the operating synergies we have
achieved from these acquisitions. In addition, we have the opportunity to
leverage the additional capacity from these facilities and expand our market

“We have many reasons to be optimistic for continued growth in the year ahead.
Our strong balance sheet provides us with the flexibilityto pursue our growth
strategy. We will look for additional strategic acquisition opportunities that
meet our criteria and add value to our operations. And, we will continue to
manage our operations efficiently and identify ways to improve our product mix
and expand our sales of specialty eggs. Together, we believe these efforts
will reward both our customers and shareholders in fiscal 2014 and beyond,”
Baker concluded.

Pursuant to Cal-Maine’s variable dividend policy, in each quarter for which
the Company reports net income, the Company pays a cash dividend to
shareholders in an amount equal to one-third of such quarterly income. No
dividends are paid in a quarter for which the Company does not report net
income. Therefore, the Company will not pay a dividend for the fourth quarter
of fiscal 2013. Cal-Maine paid a total of $18.1million in dividends, or $0.75
per share, in fiscal 2013.

Selected operating statistics for the fourth quarter and fiscal 2013 compared
with the prior-year periods are shown below:

                   13 & 14 Weeks Ended          52 & 53 Weeks Ended
                     June 1, 2013  June 2, 2012   June 1, 2013  June 2, 2012
Dozens eggs sold        243,280        228,811        948,456        884,274
Dozens egg              181,004        171,190        704,388        662,975
produced (000)
% Specialty sales       16.4    %      16.5    %      16.4    %      16.3    %
Net average
selling price        $  1.280       $  1.152       $  1.301       $  1.205
Feed cost (dozen)    $  0.527       $  0.480       $  0.540       $  0.469
% Specialty sales       24.5    %      25.8    %      23.7    %      24.0    %

As previously disclosed, on August 10, 2012, and November 15, 2012, the
Company purchased the commercial egg assets of Pilgrim’s Pride Corporation and
Maxim Production Co., Inc., respectively. On a comparable basis, excluding the
acquisitions, for the thirteen-week period ended June 1, 2013, net sales were
$288.0 million and dozens sold were 210.5 million, and for the fifty-two week
period ended June 1, 2013, net sales were $1,187.1 million and dozens sold
were 866.0 million.

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, whichis 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 Item 1A of our Annual Report on Form 10-K for the
fiscal year ended June 2, 2012, as updated by our subsequent 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, 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.





(In thousands, except per share amounts)
                           13 and 14 Weeks Ended     52 and 53 Weeks Ended
                           June 1,       June 2,     June 1,       June 2,
                           2013          2012        2013          2012
Net sales                  $ 325,933     $ 275,245   $ 1,288,104   $ 1,113,116
Gross profit                 51,489        41,356      214,549       201,783
Operating income (loss)      (7,281  )     12,083      59,593        88,652
Other income (expense)       (131    )     45,678      15,975        50,425
Income before income
taxes and noncontrolling     (7,412  )     57,761      75,568        139,077
Income before income
taxes attributable to        (7,609  )     57,620      75,230        138,845
Cal-Maine Foods, Inc.
Net income                 $ (3,833  )   $ 37,256    $ 50,423      $ 89,735
Net income per share:
Basic                      $ (0.16   )   $ 1.56      $ 2.10        $ 3.76
Diluted                    $ (0.16   )   $ 1.56      $ 2.10        $ 3.75
Weighted average shares
Basic                       24,035      23,888     23,983       23,875
Diluted                     24,035      23,925     24,044       23,942

                                              June 1,     June 2,

                                              2013        2012
Cash and short-term investments               $ 182,888   $ 260,751
Receivables                                     82,586      62,768
Inventories                                     147,993     117,158
Prepaid expenses and other current assets      1,414      1,525
Current assets                                  414,881     442,202
Property, plant and equipment (net)             266,008     222,615
Other noncurrent assets                        64,738     61,499
Total assets                                  $ 745,627   $ 726,316
Accounts payable and accrued expenses         $ 99,827    $ 91,633
Current maturities of long-term debt            10,373      11,458
Deferred income taxes                          19,995     25,474
Current liabilities                             130,195     115,183
Long-term debt, less current maturities         54,647      64,762
Deferred income taxes and other liabilities     42,741      41,570
Stockholders' equity                           518,044    479,328
Total liabilities and stockholders' equity    $ 745,627   $ 726,316


Cal-Maine Foods, Inc.
Dolph Baker, 601-948-6813
Chairman, President and CEO
Timothy A. Dawson, 601-948-6813
Vice President and CFO
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