Cal-Maine Foods Inc.
07/23/2024 | Press release | Distributed by Public on 07/23/2024 14:08
Results of Operations and Financial Condition Form 8 K
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Contacts:
Sherman Miller, President and CEO
Max P. Bowman, Vice President and CFO
(601) 948-6813
CAL-MAINE FOODS REPORTS RESULTS
FOR FOURTH QUARTER AND FISCAL 2024
RIDGELAND, Miss. (July 23,2024) - Cal-Maine Foods,Inc. (NASDAQ: CALM) ("Cal-MaineFoods" or the
"Company"), thelargest producer anddistributor offresh shelleggs inthe UnitedStates, today reported
results for thefourth quarter of fiscal2024 (thirteen weeks) andfiscal year 2024 (fifty-twoweeks) ended
June 1, 2024.
Fourth Quarter and Fiscal Year 2024 Highlights
●
Quarterly net sales of $640.8 million
●
Quarterly net income of $113.2 million, or $2.32 per diluted share
●
Fiscal year net sales of $2.3 billion and net income of $277.9 million, or $5.69per diluted share
●
Cash dividend of $37.8 million, or $0.77 per share, pursuant to the Company'sestablished
dividend policy
Overview
Sherman Miller, president and chief executive officerof Cal-Maine Foods, stated, "Weare pleased
to report a solid performance forthe fourth quarter amidst a challenging periodfor Cal-Maine Foods and
ourindustry.Weareextremelyproudofourmanagersandemployeeswhocontinuedtomanageour
operations inadynamic environmentaffected byrecent outbreaksof highlypathogenic avianinfluenza
("HPAI").Despite the interruptions, we continued to meet the demands ofour valued customers.
"Throughout the year, we continued to executeour growth strategy and deliver afavorable product
mix inline withcustomer demand.Our operationsran wellas weremained focusedon ourobjective of
operationalexcellence.Wealsocompletedtwoassetacquisitionsinfiscal2024andcompletedone
subsequent to the endof the fiscal year,each of which complementsour organic growthinitiatives.We are
excited about theadditions of theassets of FassioEgg Farms, Inc.,located in Erda, Utah,and the former
broiler processing plant, hatchery and feedmill in Dexter, Missouri, previously operatedby Tyson Foods.
Wehavecommenced workontheacquired Dexterfacilities torepurpose theassetsforuseinshellegg
productionandprocessing.Wearepartneringwithlocalfarmers,workingwithlocalcontractorsand
businesses andmaking significantinvestments inthe Dexterarea torenovate andimprove thefacilities,
with future plans for expanded shell egg and value-addedegg product opportunities.Following the end of
thefiscalyear,weacquiredsubstantiallyalltheassetsofISEAmerica,Inc.andcertainofitsaffiliates
("ISE").We expect that the acquisition ofthese assets from ISE will enableus to significantly enhance our
market reach in the Northeast and Mid-Atlantic states."
Sales Performance & Operating Highlights
Max Bowman, vice president and chief financialofficer of Cal-Maine Foods, added, "For the fourth
quarter of fiscal2024, our netsales were $640.8million compared with$688.7 millionfor the sameperiod
last year. The decline in salesrevenue for the fourth quarterof fiscal 2024 was primarily dueto lower sales
volumes due directlyto having 13weeks in thefourth quarter offiscal 2024 comparedto 14 weeksin the
prior-year period.
"Net sales for fiscal2024 were $2.3 billion comparedwith $3.1 billion for fiscal2023. Fiscal 2024
was a 52-week-period and fiscal 2023was a 53-week-period. The decrease in salesrevenue was primarily
due to a decreasein the net averageselling prices for conventionaleggs, and to alesser extent, thedecrease
Cal-Maine Foods Reports Fourth Quarter and Fiscal 2024 Results
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July 23,2024
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in the net averageselling prices for specialty eggs,compared to fiscal 2023, whichsaw record-high prices
primarily due to egg supply constraints resulting from HPAI.
"For the fourth fiscal quarter, wesold 285.6 million dozens shelleggs compared with 296.6 million
dozensforthefourthquarteroffiscal2023.Salesofconventionaleggstotaled180.5milliondozens,
compared with 194.0 million dozens for the prior-year period, a decline of 7.0%, reflecting 13 weeksin the
fourthquarteroffiscal2024comparedto14weeksintheprior-yearperiod.However,specialtyegg
volumes were2.5% higher with105.0 million dozenssold forthe fourth quarterof fiscal 2024compared
with 102.5 million dozens sold for the fourth quarter of fiscal 2023.
"NetincomeattributabletoCal-MaineFoodsforthefourthquarteroffiscal2024was$113.2
million, or $2.32per diluted share,compared with$110.9 million, or$2.27 per dilutedshare, for thefourth
quarter of fiscal 2023.For fiscal 2024, net income attributable to Cal-Maine Foods was $277.9 million, or
$5.69 per diluted share, compared with $758.0 million, or $15.52per diluted share, for fiscal 2023.
"Overall, ourfourth quarterfarm productioncosts perdozen were14.3% lowercompared tothe
prior-year period, primarilydue to morefavorable commodity pricingfor key feedingredients. For fiscal
2024, farm production costs per dozen were down 8.3%,primarily tied to lower feed costs. Forthe fourth
quarter offiscal 2024,feed costsper dozenwere down24.9% compared withthe fourthquarter offiscal
2023, and feed costs per dozen for fiscal 2024 were 18.6% lower comparedwith fiscal 2023.
"Current indicationsforcornsupply projectan overallbetterstocks-to-use ratio,implyingmore
favorablepricesinthenearterm.However,aswecontinuetofaceuncertainexternalforcesincluding
weather patterns and global supply chain disruptions, price volatility couldremain," said Bowman.
13 Weeks Ended
June 1, 2024
14 Weeks Ended
June 3, 2023
52 Weeks Ended
June 1, 2024
53 Weeks Ended
June 3, 2023
Dozen Eggs Sold (000)
285,555
296,554
1,147,633
1,147,373
Conventional Dozen Eggs Sold (000)
180,513
194,031
746,687
749,076
Specialty Dozen Eggs Sold (000)
105,042
102,523
400,946
398,297
Dozen Eggs Produced (000)
243,851
276,354
1,018,835
1,058,540
% Specialty Sales (dozen)
36.8
%
34.6
%
34.9
%
34.7
%
% Specialty Sales (dollars)
38.5
%
39.1
%
41.4
%
31.6
%
Net Average SellingPrice (per dozen)
$
2.133
$
2.197
$
1.932
$
2.622
Net Average SellingPrice of Conventional
Eggs (per dozen)
$
2.062
$
2.038
$
1.730
$
2.739
Net Average SellingPrice of Specialty Eggs
(per dozen)
$
2.254
$
2.499
$
2.309
$
2.403
Feed Cost (per dozen)
$
0.504
$
0.671
$
0.550
$
0.676
HPAI & Table Egg Supply Outlook
Outbreaks of HPAI have continued to occurin U.S. poultry flocks. From the resurgence beginning
in November 2023 until the last reported case in commercial layer hens in July 2024, approximately 32.8
million commercial laying hens and pullets have been depopulated.
During the third and fourth quarters of fiscal 2024, Cal-Maine Foods experienced HPAI outbreaks
within Company facilitieslocated in Kansasand Texas, resultingin total depopulationof approximately 3.1
millionlayinghensand577,000pullets.BothlocationshavebeenclearedbytheUSDAtoresume
operations, and repopulation is expected to be completed before calendaryear end.
The Company remainsdedicated to robustbiosecurity programs across itslocations; however, no
farmisimmune fromHPAI.HPAI iscurrently widespreadinthe wildbirdpopulation worldwide.The
extent ofpossible futureoutbreaks, withheightened riskduring themigration seasons,and morerecent
Cal-Maine Foods Reports Fourth Quarter and Fiscal 2024 Results
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July 23,2024
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HPAI events, which have been directly linked to dairy cattle operations, cannot be predicted. According to
theU.S. Centersfor DiseaseControl andPrevention, thehumanhealth risktothe U.S.publicfrom the
HPAI virusis consideredto below.Also, accordingto theUSDA, HPAIcannot betransmitted through
safely handled and properlycooked eggs.There is no knownrisk related toHPAI associated with eggsthat
are currently in the market and no eggs have been recalled.
Looking Ahead
Milleradded,"Weareproudofourperformance infiscal2024,aswecontinuedtoexecuteour
growth strategy in a challengingenvironment as well as respond tonew market opportunities.Across Cal-
MaineFoods,ourdedicatedmanagersandemployeeshaveremainedsteadfastintheircommitment to
manage ouroperations efficientlyand meetthe needsof our customers.We have aproven operatingmodel
that hasserved uswell throughoutthe businesscycles andexternal forcesthat affectour industry,including
HPAI.We remain diligent in our efforts to mitigatefuture risks and minimize potential disruption to our
overall production and distribution.
"Looking aheadto fiscal 2025,we believedemand forshell eggs willremain strongas consumers
continue to look for more affordable protein options. As the largest producer and distributor of fresh shell
eggs, weplay animportant rolein meetingthis demandand supportingthe nation'sfood supplywith a
differentiated product mix.We will continue to focus on expandingour production capacity for additional
specialtyandcage-freeeggsthatmeetcurrentconsumerdemandtrends.Importantly,wehavethe
financial strengthto fundour internalexpansion projectsand toconsider acquisitionsthat complement
our operationsand supportour growthinitiatives. Aboveall, weare committedto ourmission tobe the
mostreliableandsustainableproduceroffreshshelleggsandeggproducts.Welookforwardtothe
opportunities ahead for Cal-Maine Foods in fiscal 2025."
Dividend Payment
For thefourth quarterof fiscal2024, Cal-Maine Foodswill paya cashdividend ofapproximately
$0.77 pershare toholders ofits commonand ClassA commonstock. Pursuantto Cal-MaineFoods' variable
dividendpolicy,foreachquarterinwhichtheCompanyreportsnetincome,theCompanypaysacash
dividend toshareholders in anamount equalto one-thirdof suchquarterly income.Following aquarter
for which theCompany does notreport net income,the Company willnot pay adividend withrespect to
that quarter orfor a subsequentprofitable quarter untilthe Company isprofitable ona cumulative basis
computed fromthe dateof themost recentquarter forwhich adividend waspaid. Theamount paidper
share will vary based on the numberof outstanding shares on the record date. Thedividend is payable on
August 20, 2024, to holders of record on August 5, 2024.
About Cal-Maine Foods
Cal-Maine Foods, Inc.is primarily engagedin the production,grading, packaging, marketingand
distributionoffreshshelleggs,includingconventional,cage-free,organic,brown,free-range,pasture-
raised and nutritionally enhanced eggs.The Company, which isheadquartered in Ridgeland, Mississippi,
is the largestproducer anddistributor of freshshell eggs inthe United Statesand sells mostof its shelleggs
throughout the majority of the United States.
Forward Looking Statements
Statementscontainedinthispressreleasethatarenothistoricalfactsareforward-looking
statements as that termis defined in thePrivate Securities Litigation ReformAct of 1995.The forward-
lookingstatementsarebasedonmanagement'scurrentintent,belief,expectations,estimatesand
projectionsregardingourcompanyandourindustry.Thesestatementsarenotguaranteesoffuture
performance and involve risks, uncertainties, assumptions and other factors thatare difficult to predict
and may bebeyond ourcontrol. Thefactors that couldcause actual resultsto differ materiallyfrom those
projected intheforward-looking statementsinclude, amongothers, (i)therisk factorsset forthin the
Cal-Maine Foods Reports Fourth Quarter and Fiscal 2024 Results
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July 23,2024
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Company's SECfilings (includingits AnnualReports onForm 10-K, QuarterlyReports onForm 10-Qand
Current Reportson Form8-K),(ii) therisks andhazards inherentin theshell eggbusiness (including
disease,pests,weatherconditionsandpotentialforrecall),includingbutnotlimitedtothecurrent
outbreak of highly pathogenic avian influenza affecting poultry in theU.S., Canada and other countries
thatwasfirstdetected incommercialflocksintheU.S.inFebruary2022 andthatfirstimpacted our
flocks in December 2023, (iii)changes in the demand forand market prices of shelleggs and feed costs,
(iv) our ability topredict and meet demandfor cage-free and other specialtyeggs, (v) risks, changes or
obligations that could result from our recent or futureacquisitions of new flocks or businesses and risks
or changesthat maycause conditionsto completinga pendingacquisition notto bemet, (vi)risks relating
tochangesininflationandinterestrates,(vii)ourabilitytoretainexistingcustomers,acquirenew
customers and grow our product mix, (viii) adverseresults in pending litigation matters, and (ix) global
instability, including asa result of thewar in Ukraine,the Israel-Hamas conflictand attacks on shipping
intheRedSea.SECfilingsmaybeobtainedfromtheSECortheCompany'swebsite
,
www.calmainefoods.com.Readersarecautionednottoplaceunduerelianceonforward-looking
statements because,while webelieve theassumptions onwhich theforward-lookingstatements arebased
arereasonable,therecanbenoassurancethattheseforward-lookingstatementswillprovetobe
accurate.Further, theforward-looking statementsincluded hereinareonlymadeasoftherespective
datesthereof,orifnodateisstated,asofthedatehereof.Exceptasotherwiserequiredbylaw,we
disclaimanyintentorobligationtopubliclyupdatetheseforward-lookingstatements,whetherasa
result of new information, future events or otherwise.
Cal-Maine Foods Reports Fourth Quarter and Fiscal 2024 Results
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July 23,2024
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CAL-MAINE FOODS, INC. AND SUBSIDIARIES
FINANCIAL HIGHLIGHTS
(Unaudited)
(In thousands, except per share amounts)
SUMMARY STATEMENTS OF INCOME
13 Weeks Ended
June 1, 2024
14 Weeks Ended
June 3, 2023
52 Weeks Ended
June 1, 2024
53 Weeks Ended
June 3, 2023
Net sales
$
640,789
$
688,680
$
2,326,443
$
3,146,217
Cost of sales
454,353
490,588
1,784,872
1,949,760
Gross profit
186,436
198,092
541,571
1,196,457
Selling, general and administrative
57,781
62,159
252,625
232,207
Insurance recoveries
(13,603)
(125)
(23,532)
(3,345)
(Gain) loss on disposal of fixed assets
70
(167)
26
(131)
Operating income
142,188
136,225
312,452
967,726
Other income, net
9,773
9,690
47,519
30,824
Income before income taxes
151,961
145,915
359,971
998,550
Income tax expense
39,031
35,380
83,689
241,818
Net income
112,930
110,535
276,282
756,732
Less: Loss attributable to noncontrolling
interest
(311)
(396)
(1,606)
(1,292)
Net income attributable to Cal-Maine Foods,
Inc.
$
113,241
$
110,931
$
277,888
$
758,024
Net income per common share:
Basic
$
2.32
$
2.28
$
5.70
$
15.58
Diluted
$
2.32
$
2.27
$
5.69
$
15.52
Weighted averageshares outstanding:
Basic
48,761
48,689
48,717
48,648
Diluted
48,902
48,838
48,873
48,834
Cal-Maine Foods Reports Fourth Quarter and Fiscal 2024 Results
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July 23,2024
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CAL-MAINE FOODS, INC. AND SUBSIDIARIES
FINANCIAL HIGHLIGHTS
(Unaudited)
(In thousands)
SUMMARY BALANCE SHEETS
June 1, 2024
June 3, 2023
ASSETS
Cash and short-term investments
$
812,377
$
647,914
Receivables, net
162,442
187,213
Inventories, net
261,782
284,418
Prepaid expenses and other current assets
5,238
5,380
Current assets
1,241,839
1,124,925
Property, plant and equipment,net
857,234
744,540
Other noncurrent assets
85,688
85,060
Total assets
$
2,184,761
$
1,954,525
LIABILITIES AND STOCKHOLDERS' EQUITY
Accounts payable and accrued expenses
$
189,983
$
145,601
Dividends payable
37,760
37,130
Current liabilities
227,743
182,731
Deferred income taxes and other liabilities
159,975
162,211
Stockholders' equity
1,797,043
1,609,583
Total liabilities and stockholders'equity
$
2,184,761
$
1,954,525