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Published: 2021-07-19 00:00:00 ET
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EX-99.1 2 exhibit991.htm EX-99.1 exhibit991
exhibit991p1i0.jpg
Exhibit 99.1
-MORE-
Contacts:
Dolph Baker, Chairman and CEO
Max P.
 
Bowman, Vice President and CFO
(601) 948-6813
 
CAL-MAINE FOODS REPORTS FOURTH QUARTER FISCAL 2021 RESULTS
 
RIDGELAND, Miss. (July 19, 2021) - Cal-Maine Foods, Inc.
 
(NASDAQ: CALM) today reported results for the
fourth quarter (thirteen weeks) and fiscal year ended May 29, 2021.
 
Net sales for the fourth quarter of
 
fiscal 2021 were $349.8 million, compared to
 
$453.3 million for the
fourth quarter of fiscal 2020. The Company reported
 
a net loss of $4.2 million, or
 
$0.09 per basic and diluted
share, for the
 
fourth quarter of
 
fiscal 2021, compared
 
to net income
 
of $60.5 million,
 
or $1.25 per
 
basic and
$1.24 per diluted share, for the fourth quarter of fiscal 2020.
 
For fiscal 2021,
 
net sales were
 
$1,349.0 million, compared with
 
$1,351.6 million for
 
the prior year. The
Company reported net income of $2.1 million, or $0.04
 
per basic and diluted share, for fiscal 2021,
 
compared
to $18.4 million, or $0.38 per basic and diluted share, for the prior-year period.
 
Dolph Baker,
 
chairman and
 
chief executive
 
officer of
 
Cal-Maine Foods,
 
Inc., stated,
 
“Our results
 
for
the
 
fourth
 
quarter
 
of
 
fiscal
 
2021
 
reflect
 
a
 
significant
 
drop
 
in
 
average
 
selling
 
prices
 
and
 
lower
 
volumes
 
for
conventional eggs compared with the same period
 
last year. The
 
fourth quarter of 2020 was a period of
 
very
high consumer
 
demand,
 
with
 
market
 
prices
 
reaching record
 
levels
 
as more
 
meals
 
were
 
being
 
prepared at
home during the
 
early restrictive
 
phase of the
 
COVID-19 pandemic.
 
Our average sales
 
price for shell
 
eggs
was $1.32 per dozen
 
for the fourth quarter
 
this fiscal year compared
 
with $1.58 per dozen
 
for the same period
last year.
 
For fiscal
 
2021, our
 
average sales
 
price for
 
shell eggs
 
was $1.22
 
per dozen,
 
down slightly
 
from
$1.23 per dozen for fiscal 2020.
 
 
“While retail
 
demand has
 
been strong
 
for most
 
of this
 
fiscal year,
 
that trend
 
began to
 
change in
 
the
fourth quarter as
 
consumers started dining
 
out again and
 
preparing fewer meals
 
at home.
 
As a result,
 
food
service
 
demand
 
has
 
improved
 
as
 
retail
 
demand
 
has
 
slowed
 
down,
 
with
 
overall
 
demand
 
for
 
shell
 
eggs
approaching a more
 
normalized balance that
 
is closer to
 
pre-pandemic levels.
 
Total dozens sold for the
 
fourth
quarter of fiscal 2021 were
 
down 9.4 percent over the
 
same period last year,
 
with 255.9 million dozens sold.
 
For fiscal 2021,
 
we sold 1,073.2
 
million dozens of
 
shell eggs, up
 
slightly compared with
 
1,069.2 million dozens
sold in fiscal 2020.
 
“Hen numbers
 
reported by
 
the USDA
 
as of
 
June 1,
 
2021, were
 
315.7 million,
 
which represents
 
5.3
million fewer hens than the adjusted number a year ago.
 
The egg industry has experienced several years of
unfavorable economics, resulting in
 
the lowest national supply
 
of laying hens since
 
October 2016.
 
The USDA
also reported that the hatch from January 2021 through May 2021 increased
 
4.4 percent as compared to the
prior-year period, and
 
as of June
 
1, 2021, eggs
 
in incubators were
 
up 2.5 percent
 
over the same
 
period last
year.
 
 
"We
 
continue
 
to
 
see
 
favorable
 
trends
 
for
 
our
 
specialty
 
egg
 
business,
 
and
 
we
 
remain
 
focused
 
on
offering the
 
right product
 
mix of
 
both conventional
 
and specialty
 
eggs to
 
meet customer
 
demand. For
 
the fourth
quarter of
 
fiscal 2021,
 
sales of
 
specialty eggs
 
totaled $131.2 million,
 
accounting for
 
38.7 percent
 
of our
 
egg
sales revenue,
 
compared with
 
$133.3 million,
 
or 29.9
 
percent of
 
egg sales
 
revenue, in
 
the fourth
 
quarter of
fiscal 2020. The
 
higher specialty egg
 
revenue reflects a
 
1.6 percent increase
 
in specialty dozens
 
sold in the
fourth quarter of fiscal 2021 compared to the same period last year.
 
 
"An
 
important
 
growth
 
initiative
 
for
 
fiscal
 
2021
 
has
 
been
 
the
 
continued
 
expansion
 
of
 
our
 
production
capacity
 
in
 
line
 
with
 
the
 
growing
 
customer
 
demand
 
for
 
cage-free
 
and
 
specialty
 
eggs.
 
We
 
are
 
focused
 
on
adjusting
 
our
 
production
 
capacity
 
to
 
balance
 
the
 
changing
 
state
 
requirements
 
with
 
future
 
customer
commitments.
 
As always,
 
we strive
 
to offer a
 
product mix
 
that aligns with
 
current and
 
anticipated customer
purchase decisions.
 
CALM Reports Fourth Quarter Fiscal 2021 Results
Page 2
July 19, 2021
 
-MORE-
“Following
 
the
 
end
 
of
 
fiscal
 
2021,
 
Cal-Maine
 
Foods
 
completed
 
the
 
purchase
 
of
 
the
 
remaining
 
50
percent membership
 
interest in
 
Red River
 
Valley
 
Egg Farm,
 
LLC.
 
With approximately
 
1.7 million
 
cage-free
laying
 
hens and
 
cage-free
 
pullet
 
capacity,
 
Red River
 
Valley
 
Egg Farm
 
offers
 
us additional
 
opportunities
 
to
expand our cage-free production
 
capacity and further enhance
 
our ability to provide
 
exceptional service and
distribution
 
capabilities
 
to
 
our
 
customers.
 
Including
 
this
 
purchase,
 
we
 
have
 
invested
 
over
 
$476
 
million
 
in
facilities, equipment, and related
 
operations to expand
 
our cage-free production
 
since 2008. Importantly,
 
we
have
 
a
 
strong
 
balance sheet
 
with
 
ample
 
liquidity
 
and access
 
to capital
 
to continue
 
to
 
make
 
the necessary
investments in our operations.
 
“For
 
the
 
fourth
 
quarter,
 
operating
 
loss
 
was
 
$13.0
 
million
 
compared with
 
operating
 
income
 
of
 
$76.1
million for
 
the same
 
period a
 
year ago.
 
Farm production
 
costs per
 
dozen produced
 
for the
 
fourth quarter
 
of
fiscal 2021
 
were up
 
15.3 percent,
 
or $0.112
 
per dozen,
 
compared to
 
the fourth
 
quarter of
 
fiscal 2020.
 
This
increase was
 
primarily due
 
to higher
 
feed costs,
 
which were
 
up 27.7
 
percent compared
 
with the
 
prior-year
period.
 
For the
 
fourth quarter,
 
the average
 
Chicago Board
 
of Trade
 
(“CBOT”) daily
 
market price
 
was $6.10
per bushel for corn and $411.37 per ton for soybean meal, representing an increase of
 
82.7 percent and 37.6
percent,
 
respectively,
 
compared
 
to
 
the
 
daily
 
average
 
CBOT
 
prices
 
for
 
the
 
fourth
 
quarter
 
of
 
fiscal
 
2020.
Increased export demand for both soybeans and corn, as well as
 
weather-related shortfalls in production and
yields, have placed additional
 
pressure on domestic supplies,
 
resulting in higher and
 
more volatile prices.
 
For
the full
 
year, our feed
 
costs were
 
up 9.0
 
percent over
 
fiscal 2020.
 
With the
 
ongoing uncertainties
 
and continued
supply chain disruptions
 
related to the
 
COVID-19 outbreak, weather
 
fluctuations and geopolitical
 
issues, we
expect to see further volatility in market prices for our primary feed ingredients.
 
 
“Fiscal
 
2021
 
has
 
been
 
a
 
challenging
 
year
 
for
 
Cal-Maine
 
Foods,
 
but
 
we
 
are
 
proud
 
of
 
our
 
ability
 
to
navigate an uncertain environment as well as respond to new market opportunities.
 
Our operations ran well,
and
 
we
 
demonstrated
 
improvement
 
in
 
most
 
of
 
our
 
key
 
production
 
metrics
 
despite
 
the
 
more
 
difficult
environment.
 
We commend
 
our dedicated
 
employees who
 
have continued
 
to work
 
under the
 
extraordinary
conditions
 
created
 
by
 
the
 
COVID-19
 
pandemic.
 
Due
 
to
 
their
 
efforts,
 
we
 
were
 
able
 
to
 
meet
 
our
 
primary
objective to
 
support the
 
nation’s food
 
supply at
 
a critical
 
time.
 
Across our
 
operations, our
 
managers came
together to
 
service our
 
customers, while
 
remaining diligent
 
in their
 
efforts to
 
provide a
 
safe environment
 
for
our employees, business partners, and the communities we serve.
 
 
“Looking ahead, we will
 
continue to execute our
 
growth strategy in fiscal
 
2022 and focus on
 
managing
the aspects of our operations under our control, regardless of market conditions.
 
We believe retail consumer
demand
 
for
 
eggs
 
will
 
be
 
more
 
consistent
 
with
 
typical
 
seasonal
 
trends,
 
and
 
we
 
are
 
optimistic
 
that
 
more
restaurants and food service
 
operators are getting back to
 
pre-pandemic business schedules.
 
Our specialty
egg business is a key driver of our growth, and
 
we will continue to make the strategic investments to expand
our capacity,
 
especially for
 
cage-free egg
 
production.
 
We are
 
well positioned
 
with sufficient
 
capital to
 
fund
internal
 
expansion
 
projects
 
or
 
consider
 
potential
 
acquisitions.
 
Across
 
our
 
operations,
 
we
 
are
 
focused
 
on
efficient and sustainable
 
management.
 
Above all, we
 
will strive to
 
meet the demands
 
of our valued
 
customers
and deliver greater value to our shareholders,” added Baker.
 
Pursuant to Cal-Maine Foods’ variable dividend policy, for 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. Following a quarter for which the Company does not report net income, the
Company will not pay a dividend with respect to that quarter or for a subsequent profitable quarter until the
Company is profitable on a cumulative basis computed from the date of the last quarter for which a dividend
was paid. Therefore, the Company will not pay a dividend with respect to the fourth quarter of f
iscal 2021.
 
 
 
 
 
 
 
 
CALM Reports Fourth Quarter Fiscal 2021 Results
Page 3
July 19, 2021
 
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Selected operating statistics for
 
the fourth quarter and
 
fiscal 2021 compared with
 
the prior-year period
are shown below:
 
 
13 Weeks Ended
52 Weeks Ended
May 29, 2021
May 30, 2020
May 29, 2021
May 30, 2020
Dozen Eggs Sold (000)
255,851
282,422
1,073,211
1,069,150
Dozen Eggs Produced (000)
239,632
242,962
970,837
927,799
% Specialty Sales (dozen)
27.4
%
24.4
%
26.8
%
23.9
%
% Specialty Sales (dollars)
38.7
%
29.9
%
41.1
%
36.8
%
Net Average Selling Price (per
dozen)
$
1.324
$
1.575
$
1.217
$
1.231
Net Average Selling Price Specialty
Eggs (per dozen)
$
1.885
$
1.934
$
1.876
$
1.897
Feed Cost (per dozen)
$
0.517
$
0.405
$
0.446
$
0.409
 
Cal-Maine
 
Foods,
 
Inc.
 
is
 
primarily
 
engaged
 
in
 
the
 
production,
 
grading,
 
packing,
 
marketing
 
and
distribution of
 
fresh
 
shell eggs,
 
including
 
conventional,
 
cage-free,
 
organic
 
and
 
nutritionally
 
enhanced
 
eggs.
The Company,
 
which
 
is
 
headquartered
 
in Ridgeland,
 
Mississippi,
 
is
 
the
 
largest
 
producer
 
and
 
distributor
 
of
fresh shell eggs in the United States and
 
sells the majority of its shell eggs in
 
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.
 
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 factors that
 
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
 
the
 
Company’s
 
SEC filings
 
(including
 
its
 
Annual
 
Reports on
 
Form
 
10-K,
Quarterly Reports on Form 10-Q and Current Reports on Form 8-K), (ii) the risks and hazards inherent in the shell
egg business (including disease, pests, weather conditions and potential
 
for recall), (iii) changes in the demand for
and market prices of shell eggs and feed costs, (iv) our ability to predict and meet demand for cage-free and other
specialty
 
eggs,
 
(v)
 
risks,
 
changes
 
or
 
obligations
 
that
 
could
 
result
 
from
 
our
 
future
 
acquisition
 
of
 
new flocks
 
or
businesses and risks or changes that
 
may cause conditions to completing a pending
 
acquisition not to be met,(vi)
risks relating to
 
the evolving COVID-19
 
pandemic, and (vii)
 
adverse results in pending
 
litigation matters. SEC
 
filings
may be obtained from the SEC or the Company’s website,
 
www.calmainefoods.com. Readers are cautioned not to
place
 
undue
 
reliance
 
on
 
forward-looking
 
statements because,
 
while
 
we
 
believe the assumptions
 
on
 
which the
forward-looking
 
statements
 
are
 
based
 
are
 
reasonable,
 
there can
 
be
 
no
 
assurance
 
that
 
these
 
forward-looking
statements will prove to be accurate.
 
Further, the forward-looking statements included herein are only made as of
the respective dates thereof, or if no date is stated, as of the date hereof. Except as otherwise required by law, we
disclaim any
 
intent or obligation
 
to publicly
 
update these
 
forward-looking statements,
 
whether as
 
a result of
 
new
information, future events or otherwise.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
CALM Reports Fourth Quarter Fiscal 2021 Results
Page 4
July 19, 2021
 
-MORE-
CAL-MAINE FOODS, INC. AND SUBSIDIARIES
FINANCIAL HIGHLIGHTS
(Unaudited)
(In thousands, except per share amounts)
 
SUMMARY STATEMENTS
 
OF OPERATIONS
 
13 Weeks Ended
52 Weeks Ended
May 29, 2021
May 30, 2020
May 29, 2021
May 30, 2020
Net sales
$
349,798
$
453,333
$
1,348,987
$
1,351,609
Cost of sales
311,869
331,823
1,188,326
1,172,021
Gross profit
37,929
121,510
160,661
179,588
Selling, general and administrative
48,449
45,803
183,943
178,237
(Gain) Loss on disposal of fixed assets
2,506
(385)
2,982
82
Operating income (loss)
(13,026)
76,092
(26,264)
1,269
Other income, net
853
1,459
16,315
18,790
Income (loss) before income taxes
(12,173)
77,551
(9,949)
20,059
Income tax (benefit) expense
(7,929)
17,087
(12,009)
1,731
Net income (loss)
(4,244)
60,464
2,060
18,328
Less: Loss attributable to noncontrolling interest
-
1
—
(63)
Net income (loss) attributable to Cal-Maine Foods,
Inc.
$
(4,244)
$
60,463
$
2,060
$
18,391
Net income (loss) per common share attributable to
Cal-Maine Foods, Inc.:
Basic
$
(0.09)
$
1.25
$
0.04
$
0.38
Diluted
$
(0.09)
$
1.24
$
0.04
$
0.38
Weighted average shares outstanding:
Basic
48,636
48,501
48,522
48,467
Diluted
48,636
48,608
48,656
48,544
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
CALM Reports Fourth Quarter Fiscal 2021 Results
Page 5
July 19, 2021
 
-END-
CAL-MAINE FOODS, INC. AND SUBSIDIARIES
FINANCIAL HIGHLIGHTS
(Unaudited)
(In thousands)
 
SUMMARY BALANCE SHEETS
 
May 29, 2021
May 30, 2020
ASSETS
Cash and short-term investments
$
169,510
$
232,293
Receivables, net
126,639
98,375
Inventories
218,375
187,216
Prepaid expenses and other current assets
5,407
4,367
Current assets
519,931
522,251
Property, plant and equipment (net)
589,417
557,375
Other noncurrent assets
119,826
127,068
Total
 
assets
$
1,229,174
$
1,206,694
LIABILITIES AND STOCKHOLDERS' EQUITY
Accounts payable and accrued expenses
$
89,191
$
92,182
Current portion of lease obligations
906
1,001
Current liabilities
90,097
93,183
Lease obligations, less current maturities
1,472
2,387
Deferred income taxes and other liabilities
124,824
101,449
Stockholders' equity
1,012,781
1,009,675
Total
 
liabilities and stockholders' equity
$
1,229,174
$
1,206,694