December 31, 2013

Cal-Maine Foods announces Q2 Fiscal 2014 results

Cal-Maine Foods, Inc. announced that its net sales for the second quarter of fiscal 2014 were US$354.3 million, an 8% increase compared with net sales of US$328.9 million for the second quarter of fiscal 2013.

The company reported net income of US$26.1 million, or US$1.09 per basic share and US$1.08 per diluted share, for the second quarter of fiscal 2014 compared with US$14.3 million, or US$0.60 per basic and diluted share, for the second quarter of fiscal 2013.

For the first six months of fiscal 2014, net sales were US$673.8 million compared with net sales of US$601.8 million for the prior-year period. The company reported net income of US$34.9 million, or US$1.45 per basic share and US$1.44 per diluted share, for the first half of fiscal 2014 compared with net income of US$23.7 million, or US$0.99 per basic and diluted 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 and improved operating performance for the second quarter of fiscal 2014. These results reflect the additional volumes related to the Maxim acquisition, completed in November 2012, which contributed to the 6.2% growth in dozens sold during the quarter. Average selling prices were up 1% compared with the second quarter of fiscal 2013.

He said that their specialty egg sales continued to trend higher and accounted for 16.4% of dozens sold and 23.7% of total shell egg sales revenue for the quarter. Specialty eggs are an important area of focus for Cal-Maine Food's growth strategy as they continue to gain popularity with consumers who are looking for alternatives and willing to pay for premium products. Specialty egg prices, which are typically higher and less cyclical than regular egg prices, were up 4.1% in the second quarter of fiscal 2014 compared with the same period last year.

Baker added, "We experienced favourable egg markets during the second quarter of fiscal 2014. Our feed costs, which remain at historically high levels, were 15% lower than a year ago. We are optimistic feed costs will remain near current levels, but believe that prices of corn and soymeal, our principal feed ingredients, will remain volatile for the balance of our fiscal year. Overall, our operations performed very well and our operating income for the second quarter of fiscal 2014 was US$40.9 million compared with US$20.4 million for the second quarter of fiscal 2013. These results reflect higher sales volumes and our continued efforts to be an efficient, low-cost producer."

On November 15, 2012, the company purchased the commercial egg assets of Maxim Production Co., Inc. Excluding the acquisition, net sales for the second quarter of fiscal 2014 were US$323.4 million, an increase of 1.6% compared with the prior-year period. Dozens sold, excluding the acquisition, were 227.0 million for the second quarter of fiscal 2014, a decrease of 1.3% compared with the second quarter of fiscal 2013. On a comparable basis, excluding the acquisition, net sales for the first half of fiscal 2014 were US$615.0 million, an increase of 4.0%, and dozens sold were 445.2 million, an increase of 1.2%, over the same period last year.

Cal-Maine Foods, Inc. is primarily engaged in the production, grading, packing and sale of fresh shell eggs, including conventional, cage-free, organic and nutritionally-enhanced eggs. The company, which is headquartered in Jackson, Mississippi, is the largest producer and distributor of fresh shell eggs in the US and sells the majority of its shell eggs in approximately 29 states across the south-western, south-eastern, mid-western and mid-Atlantic regions of the US.