Cal-Maine's New Sales for Q3 for Fiscal 2012 Up27 March 2012
US - Cal-Maine yesterday reported that net sales for the third quarter of fiscal 2012 were $303.7 million compared with net sales of $274.7 million for the same quarter of fiscal 2011.
The Company reported net income of $26.1 million, or $1.09 per basic share, for the third quarter of fiscal 2012 compared with net income of $33.6 million, or $1.41 per basic share, for the third quarter of fiscal 2011. The results for the third quarter of fiscal 2011 include in other income a one-time cash distribution of approximately $4.8 million pre-tax ($3.2 million after tax) or $0.13 per basic share, received in exchange for the Company’s non-voting stock ownership in the Eggland’s Best, Inc. cooperative.
For the first nine months of fiscal 2012, net sales were $837.9 million compared with net sales of $699.6 million for the prior-year period. The Company reported net income of $52.5 million, or $2.20 per basic share, for the first nine months of fiscal 2012 compared with net income of $53.6 million, or $2.25 per basic share, for the prior-year period.
“We are pleased with Cal-Maine’s financial and operating performance for the third quarter of fiscal 2012,” said Dolph Baker, president and chief executive officer of Cal-Maine Foods, Inc. “Total sales for the quarter were up 10.6 per cent compared with the same period a year ago, reflecting higher average selling prices and good retail demand for shell eggs. We benefited from record high market prices for shell eggs during the strong holiday selling season. However, prices adjusted down approximately 35 per cent in the ten market days after their December peak level due to typically slower post-holiday demand trends and warmer weather across the country. Overall, average selling prices for shell eggs were up 3.3 per cent over the third quarter of fiscal 2011, and specialty egg prices were up 9.0 per cent compared with the same period last year.
“Our volumes also improved as dozen eggs produced by Cal-Maine Foods increased 3.0 per cent and dozen eggs sold were up 6.5 per cent. Sales of specialty eggs represented 23.8 per cent of shell egg revenue for the third quarter and accounted for 16.8 per cent of total dozen eggs sold. Specialty eggs, which include nutritionally enhanced, cage-free and organic eggs, have become an important focus of our growth strategy as we have been at the forefront of meeting the growing consumer demand for these products. Additionally, specialty eggs have higher and less cyclical retail selling prices.
“Our feed costs have continued to affect our production costs in fiscal 2012,” added Mr Baker. “For the third quarter, feed costs were up 4.5 cents per dozen, or 11.1 per cent, compared with the third quarter of fiscal 2011. We expect feed costs will remain very high and volatile throughout the summer of calendar 2012 due to tight supplies of corn and soybeans, our primary feed ingredients. However, all of Cal-Maine Foods’ operations have continued to run well and our management team is focused on managing the aspects of our business we can control and improving efficiencies where possible.
“We believe we are well positioned for another successful year for Cal-Maine Foods with a proven management team, efficient operations and a strong balance sheet to support our growth strategy,” Mr Baker concluded.
For the third quarter of fiscal 2012, Cal-Maine will pay a cash dividend of approximately $0.364 per share to holders of its common and Class A common stock. The amount paid could vary slightly based on the amount of outstanding shares on the record date. The dividend is payable 10 May 2012, to shareholders of record on 25 April 2012.