Cal-Maine Foods Reports First Quarter Fiscal 2010 Results

September 28, 2009 6:30 AM EDT

JACKSON, Miss.--(BUSINESS WIRE)-- Cal-Maine Foods, Inc. (NASDAQ: CALM) today announced results for its first quarter of fiscal 2010 ended August 28, 2009.

For the first quarter of fiscal 2010, net sales were $187.7 million, compared with net sales of $206.9 million for the first quarter of fiscal 2009. The Company reported net loss of $3.8 million, or $0.16 per basic and diluted share, for the first quarter of fiscal 2010 compared with net income of $11.1 million, or $0.47 per basic and diluted share, for the year-earlier period.

Fred Adams, Jr., chairman and chief executive officer of Cal-Maine Foods, Inc., stated, "All factors considered, our results for the first quarter of fiscal 2010 were satisfactory. Both the number of eggs sold and eggs produced by Cal-Maine were up over the prior year, however, selling prices were lower. Our feed costs were down considerably from the same period last year, but not enough to offset the price decline. Demand for eggs at the retail level remained strong; however, institutional sales to restaurants and food service customers have been weaker, reflecting the current economy.

"USDA reports indicate that the egg supply for the year ahead should be balanced with demand. Corn and soybean production are also projected to be adequate for usage. We are projecting lower feed costs for the year ahead. All of our operations are running smoothly and efficiently," added Adams.

Under Cal-Maine's dividend policy, no dividends are paid if there is a loss for the quarter.

Selected operating statistics for the first quarter of fiscal 2010 compared with the prior year period are shown below:

                                   13 Weeks Ended

                                   August 28,   August 30,

                                   2009         2008

Dozen Eggs Sold (000)                193,047      170,651

Dozen Eggs Produced (000)            156,143      133,642

% Specialty Sales (dozen)            13.2    %    12.7    %

Net Average Selling Price (dozen)  $ 0.922      $ 1.135

Feed Cost (dozen)                  $ 0.357      $ 0.458

% Specialty Sales ($)                22.5    %    17.2    %

Cal-Maine Foods, Inc. is primarily engaged in the production, grading, packing and sale of fresh shell eggs. The Company, which is headquartered in Jackson, Mississippi, currently is the largest producer and distributor of fresh shell eggs in the United States and sells the majority of its shell eggs in approximately 29 states 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 statements as that term is defined in the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are subject to risks and uncertainties (contained in the Company's SEC filings) that could cause actual results to differ materially from those projected. SEC filings may be obtained from the SEC or by contacting the Company.

CAL-MAINE FOODS, INC. AND SUBSIDIARIES
FINANCIAL HIGHLIGHTS
(Unaudited)
(In thousands, except per share amounts)

                                      13 Weeks Ended

                                      August 28,   August 30,

                                      2009         2008

Net sales                             $ 187,666    $ 206,888

Gross profit                            18,217       40,647

Operating income (loss)                 (5,301  )    17,981

Income (loss) before income taxes       (5,858  )    17,389

Net income (loss)                     $ (3,832  )  $ 11,147

Net income (loss) per common share:

Basic                                 $ (0.16   )  $ 0.47

Diluted                               $ (0.16   )  $ 0.47

Weighted average shares outstanding:

Basic                                   23,791       23,730

Diluted                                 23,791       23,769

SUMMARY BALANCE SHEET
(Unaudited)
(In thousands)

                                             August 28,  May 30,

                                             2009        2009

ASSETS

Cash and short-term investments              $ 90,739    $ 82,048

Receivables                                    61,979      44,628

Inventories                                    96,291      97,535

Other                                          23,340      17,474

Current assets                                 272,349     241,685

Property, plant and equipment (net)            240,426     249,958

Other assets                                   56,411      91,202

Total assets                                 $ 569,186   $ 582,845

LIABILITIES AND SHAREHOLDERS' EQUITY

Accounts payable and accrued expenses        $ 63,082    $ 61,845

Other current liabilities                      --          8,400

Current maturities of long-term debt           38,952      13,806

Deferred income taxes                          20,835      19,635

Current liabilities                            122,869     103,686

Deferred income taxes and other liabilities    31,080      30,167

Long-term debt, less current maturities        87,930      115,983

Shareholders' equity                           327,307     333,009

Total liabilities and shareholders' equity   $ 569,186   $ 582,845

    Source: Cal-Maine Foods, Inc.

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