Cal-Maine Marks Strong Start to Year01 October 2013
US - US-based egg processing company Cal-Maine Foods, Inc. has announced results for the first quarter of fiscal 2014 ended 31 August 2013, wherein the first quarter of fiscal 2014 saw a 17 per cent increase compared to the same period in the previous fiscal year.
For the first quarter of fiscal 2014, net sales were $319.5 million, an increase of 17 per cent compared with net sales of $272.9 million for the first quarter of fiscal 2013. The Company reported net income of $8.8 million, or $0.36 per basic and diluted share, for the first quarter of fiscal 2014 compared with net income of $9.4 million, or $0.39 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 our sales performance for the first quarter of fiscal 2014, marking a strong start to fiscal 2014. These results reflect higher volumes and higher average selling prices compared with the first quarter last year.
"Specialty eggs have continued to gain in popularity with consumers and accounted for 16.2 per cent of dozens sold and 24.6 per cent of total shell egg sales for the first quarter. The average selling price of specialty eggs also increased 5.5 per cent over the first quarter last year. Cal-Maine Foods is well positioned to capitalize on the growing demand for specialty eggs and we will continue to focus on enhancing our product mix with a full complement of conventional, cage-free, organic and nutritionally enhanced eggs.
"Our operations have run well this summer, however, our overall production costs were higher during the first quarter than a year ago," added Mr Baker. "Market prices for grain have remained high through the first quarter and our feed costs were up 3.4 cents per dozen, or 6.7 per cent, compared with the same period last year. However, we are encouraged by the favorable growing conditions this summer, which have improved the yield of this year’s corn and soybean crops.
"As a result, prices have already come down from the previous high levels and we expect to incur lower feed costs for the remainder of fiscal 2014. Regardless of market conditions, we remain focused on managing our operations efficiently and meeting the needs of our customers. We believe we have the right growth strategy in place and look forward to the opportunities ahead for Cal-Maine Foods in fiscal 2014."
For the first quarter of fiscal 2014, Cal-Maine Foods will pay a cash dividend of approximately $0.068 per share to holders of its common and Class A common stock. Pursuant to Cal-Maine Foods’ variable dividend policy, in 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. No dividends are paid in a quarter for which the Company does not report net income.
The Company experienced a loss of $3.8 million, or $0.16 per share, in the fourth quarter of fiscal 2013, due to the previously disclosed settlement of a direct purchaser class claim against the Company, resulting in a one-time charge of $17.0 million, or $0.71 per basic share, after tax. Therefore, the Company did not pay a dividend for the fourth quarter of fiscal 2013.
The dividend for the first quarter of fiscal 2014 is calculated on a cumulative basis from the date of the last quarter for which a dividend was paid. The amount of net income available for the dividend calculation is therefore reduced by the previous quarter’s loss. The amount paid could vary slightly based on the amount of outstanding shares on the record date. The dividend is payable November 14, 2013, to shareholders of record on October 30, 2013.
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