Share via Email


* Email To: (Separate multiple addresses with a semicolon)
* Your Name:
* Email From: (Your IP Address is 100.26.179.251)
* Email Subject: (personalize your message)


Email Content:

Cal-Maine Foods Reports on Q3 FY 2021

03/29/2021

In a press release dated March 29th Cal-Maine Foods (CALM) announced results for the 3rd Quarter of FY 2021 ending February 27th 2021.

 

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 $ x 1,000 except EPS)


Dolph Baker Chairman and CEO

3rd Quarter Ending

Feb. 27th 2021

Feb. 29th 2020

Difference (%)

Sales:

$359,080

$345,088

+3.9

Gross profit:

$47,517

$49,828

-4.6

Operating income (loss):

$(493)

$5,212

-109.5

Pre-tax income (loss)

Net income (loss)

$11,8321

$13,5483

$18,0492

$13,7714

-34.5

-1.6

Diluted earnings (loss) per share:

$0.28

$0.28

0

Gross Margin (%)

13.2

14.4

-8.3

Operating Margin (%)

(0.1)

1.5

-106.7

Profit (Loss) Margin (%)

3.8

(3.2)

+209.4

Lease obligations:

$1,672

$2,387

-30.0

12 Months Trailing:

Return on Assets (%)

3.8

Return on Equity (%)

6.9

Operating Margin (%)

4.9

Profit Margin (%)

4.7

Total Assets

$1,231,284

$1,206,694

-2.0

Market Capitalization

$1,918,000

Note 1. Additional Income $12.3 million 

  1. Additional Income $12.8 million
  2. Tax Benefit $1.7 million
  3. Tax payment 4.3 million

 

52-Week Range in Share Price: $35.97 to $46.66 50-day Moving average $40.37

Market Close Friday March 26th pre-release $40.51.

Monday March 29th post-release 11H00 $39.39

Trailing P/E 29.4 Beta 0.2

Shares short of float March 15th 20.5 percent.

 

In reviewing the CALM quarterly report the following calculated values* represent key data for the most recent Quarter. (Q3 Fiscal 2020 and percent difference in parentheses):-

  • Dozen shell eggs sold: 279,715,000 (271,277,000 +3.1)
  • Average selling price of all shell eggs: $1.26 per dozen; ($1.25 per dozen; +0.8%).
  • Average selling price of specialty eggs (excluding co-pack) calculated from data released: $1.91 cents per dozen; ($1.91 per dozen; 0%).
  • Average selling price of generic eggs calculated from data released: $1.01 cents per dozen; ($1.04 cents per dozen; -2.9%).
  • Differential between generic and specialty eggs: $0.87 cents per dozen; ($0.90 per dozen; -3.3%)
  • Specialty eggs as a proportion of volume sold: 27.4%; (24.3%; +12.8%)
  • Specialty eggs as a proportion of sales value: 41.5%; (37.2 %; +11.6%)
  • Proportion of eggs sold actually produced by Cal-Maine flocks: 88.7% (88.1% +0.7%;).
  • Feed cost per dozen 46.7 cents (40.6 cents +15.0%)

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

 

Dolph Baker, Chairman and CEO of Cal-Maine Foods, Inc., noted, “we continued to see favorable demand in specialty egg sales. Eggs remain a very popular and inexpensive source of protein, and we strive to provide a favorable product mix of both conventional and specialty eggs for today’s health-conscious consumer.

 

Baker commented on conversion to cage-free housing stating "our goal remains to match our production with the needs of our customers, especially as we prepare for the expected future demand for cage-free eggs. As additional states consider legislation for cage-free requirements, and assuming companies meet their previously stated goals to offer cage-free eggs, the USDA projects that over 70 percent of the U.S. laying flock will need to be in cage-free production by 2026. Since 2008, we have invested $418 million in facilities, equipment, and related operations to expand our cage-free production. We have a strong balance sheet with ample liquidity and access to capital to continue to make the necessary investments in our operations, and we remain focused on having sufficient capacity to meet the needs of our customers with the same exceptional service that is a hallmark of Cal-Maine Foods”.

 

 In commenting on future performance Baker observed, “we expect to see continued price volatility for the remainder of fiscal 2021 as increased export demand for both soybeans and corn is placing pressure on domestic supplies and carryover inventories are projected to be lower. Additionally, the ongoing uncertainties and supply chain disruptions related to the COVID-19 outbreak, weather fluctuations and geopolitical issues will continue to affect market prices for our primary feed ingredients.

 

While we are still facing an uncertain environment due to the ongoing COVID-19 pandemic, continued volatility in feed grain prices, and changes in customer and consumer demand, we look forward to the opportunities ahead for the remainder of fiscal 2021. We believe retail consumer demand for eggs will remain strong; however, it is difficult to predict when restaurants and food service operators will return to pre-pandemic business schedules, and how retail demand will be affected”.

 

Baker concluded “our operations performed well during the third quarter, despite the disruptions from the severe winter weather that affected operations across a significant portion of our footprint in mid-February. Our managers and employees in these locations did an outstanding job in preparing for the storm and managing through challenging conditions with sufficient feed and generator power to continue production with minimal disruptions. We experienced some short-term delays in distribution as many of our customers in these areas were temporarily closed, but we were able to quickly resume normal delivery schedules”.