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Cal-Maine Foods Reports on Q1 of FY 2021

09/28/2020

In a press release dated September 28th Cal-Maine Foods (CALM) announced results for the 1st quarter of Fiscal 2021 ending August 29th 2020.

 

The following table summarizes the results for the period compared with the values for the corresponding quarter of the previous fiscal year (Values expressed as US$ x 1,000 except EPS)

 

1st Quarter Ending

August 29th 2020

August 31st 2019

Difference (%)

Sales:

$292,782

$241,166

+8.9

Gross profit:

$16,765

$(21,125)

+179.4

Operating loss:

$(27,223)

$(63,470)

+57.1

Pre-tax loss

Net loss1

$(25,525)

$(19,399)

$(60,492)

$(45,760)

+57.8

+57.6

Diluted loss per share:

$(0.40)

$(0.94)

+57.4

Gross Margin (%)

5.7

(8.8)

+164.8

Operating Margin (%)

(9.3)

(26.3)

+64.6

Profit Margin (%)

(6.6)

(-19.0)

+65.3

Long-term Debt and lease obligations:

$2,145

$2,387

-10.1

12 Months Trailing:

Return on Assets (%)

0.3

Return on Equity (%)

1.8

Operating Margin (%)

0.5

Profit Margin (%)

1.4

Total Assets

$1,167,880

$1,206,694

-3.2

Market Capitalization

$1,960,000

Note 1. C-M received a tax benefit of $6.1 million in Q1 2020; $14.8 million in Q1 2019.

52-Week Range in Share Price: $30.74 to $46.66 50-day Moving average $40.91

Market Close Friday September 25th $38.90.

Market Open Monday September 28th post-release $40.04

Beta -0.2


Dolph Baker Chairman and CEO

In reviewing the CALM quarterly report the following calculated values* represent key data for the most recent Quarter. (Q1 Fiscal 2019 and difference in parentheses):-

  • Dozen shell eggs sold: 263,944,000 (254,424,000 +3.7)
  • Average selling price of all shell eggs: $1.08 per dozen; ($0.93 per dozen; +16.1%).
  • Average selling price of specialty eggs (excluding co-pack) calculated from data released: $1.89 cents per dozen; ($1.88 per dozen; +0.5%).
  • Average selling price of generic eggs calculated from data released: $0.70 cents per dozen; ($0.64 cents per dozen; +9.4%).
  • Differential between generic and specialty eggs: $1.19 cents per dozen; ($1.25 per dozen; -4.8%)
  • Specialty eggs as a proportion of volume sold: 26.0%; (23.4%; +11.1%)
  • Specialty eggs as a proportion of sales value: 45.2%; (47.5%; -4.8%)
  • Proportion of eggs sold actually produced by Cal-Maine flocks: Not disclosed (83.7%;).
  • Feed cost per dozen 38.8 cents (41.1 cents -5.6%)

*Assumes that 98 percent of sales value derived from shell eggs.


In commenting on results for the quarter and year Dolph Baker, Chairman and CEO of Cal-Maine Foods, Inc., stated “Our results for the first quarter of fiscal 2021 reflect continued challenging market conditions as we proactively monitor and manage our operations in the face of the COVID-19 pandemic. Our top priority is the health and safety of our employees, who continue to work hard every day to produce eggs for our customers, and we are proud of their dedicated efforts to contribute to a stable food supply. While demand from food service customers is improving as many restaurants have resumed limited service, food service demand is still well below pre-quarantine levels, which we believe has constrained the price of shell eggs in the retail market.

 

Baker continued “market prices for eggs remained volatile over the first quarter and decreased overall compared to prices at the end of fiscal 2020, which reflected increased consumer purchases due to the COVID-19 pandemic and seasonal demand due to Easter falling in the fourth quarter. The Southeast large market average price for conventional eggs for the first quarter of 2021 was $0.95 per dozen, up 13.1 percent compared to $0.84 for the first quarter of fiscal 2020. Our average sales price was up 17.8 percent compared with the prior year first quarter, which was a period of record low prices and an oversupply of eggs.

 

"An important competitive advantage for Cal-Maine Foods is our ability to offer our customers choice, by providing a favorable product mix in a sustainable manner, including conventional, cage-free, organic and other specialty eggs. In recent years, a significant number of large restaurant chains, food service companies and grocery chains, including our largest customers, announced goals to transition to an exclusively cage-free egg supply chain by specified future dates. Additionally, several states representing 23 percent of the U.S. total population, have passed legislation requiring cage-free eggs by specified future dates, and other states are considering such legislation. We are working with our customers to ensure a smooth transition in meeting their goals. Since 2008, we have invested over $389.9 million in facilities, equipment and related operations to expand our cage-free production.

 

 “We remain focused on managing our operations in an efficient and sustainable manner, despite the unprecedented challenges created by the COVID-19 pandemic. We understand the challenges and difficult economic environment facing the families in the communities where we live and work, and we are committed to helping where we can. One way we can do this is by providing food assistance to those in need, and Cal-Maine Foods has donated over 900,000 dozen eggs (30,000 cases) in the first quarter of 2021. We will continue to pursue our growth strategy and the further expansion of our specialty egg business as we work to safely meet the needs of our customers with outstanding products and service. We look forward to the opportunities ahead for Cal-Maine Foods in fiscal 2021,” added Baker.