Current Report Filing (8-k)
29 September 2014 - 9:33PM
Edgar (US Regulatory)
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
CURRENT REPORT
FORM 8-K
Pursuant to Section 13 or 15(d) of the Securities Exchange Act
Date of Report (Date of Earliest Event Reported): September 29, 2014
Cal-Maine Foods, Inc.
(Exact name of registrant as specified in its charter)
Delaware
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000-04892
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64-0500378
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(State or other jurisdiction
of incorporation)
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(Commission File Number)
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(IRS Employer
Identification No.)
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3320 Woodrow Wilson Avenue
Jackson, MS 39207
(Address of principal executive offices (zip code))
601-948-6813
(Registrant’s telephone number, including area code)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2 below):
☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Item 2.02. Results of Operations and Financial Condition
On September 29, 2014, Cal-Maine Foods, Inc. (the “Company”) issued a press release announcing its financial results for the fiscal 2015 first quarter ended August 30, 2014. A copy of the Company’s press release is attached hereto as Exhibit 99.1 to this Current Report.
Item 9.01. Financial Statements and Exhibits
(d) Exhibits
99.1 Press Release issued by the Company on September 29, 2014
SIGNATURES
Pursuant to the requirements for the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
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CAL-MAINE FOODS, INC.
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Date: September 29, 2014
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By:
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/s/ Timothy A. Dawson
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Timothy A. Dawson
Director, Vice President, and Chief Financial Officer
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Contact:
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Dolph Baker, Chairman, President and CEO
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Timothy A. Dawson, Vice President and CFO
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(601) 948-6813
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CAL-MAINE FOODS REPORTS FIRST QUARTER FISCAL 2015 RESULTS
JACKSON, Miss. (September 29, 2014) Cal-Maine Foods, Inc. (NASDAQ: CALM) today announced results for the first quarter of fiscal 2015 ended August 30, 2014.
For the first quarter of fiscal 2015, net sales were $356.9 million, an increase of 12 percent compared with net sales of $319.5 million for the first quarter of fiscal 2014. The Company reported net income of $27.7 million, or $1.15 per basic share and $1.14 per diluted share, for the first quarter of fiscal 2015 compared with net income of $8.8 million, or $0.36 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 financial and operating performance for the first quarter, marking a strong start to fiscal 2015. Our increased sales reflect higher volumes and higher average selling prices compared with the first quarter last year. Consumer demand for eggs has been very favorable and we experienced continued strong demand from all the major market segments including retail, egg product and exports. Sales of specialty eggs have continued to trend higher and accounted for 18.8 percent of our total number of shell eggs sold and 26.8 percent of our shell egg sales revenue for the first quarter of fiscal 2015.”
As previously announced on July 25, 2014, the Company entered into a new joint venture for specialty egg sales with Hickman’s Egg Ranch, Inc., based in Buckeye, Arizona. The new joint venture, known as Southwest Specialty Eggs, LLC, acquired the Egg-Land’s Best, Inc. franchise for the state of Arizona. On September 12, 2014, Southwest Specialty Eggs, LLC, announced the acquisition of the Egg-Land’s Best, Inc. franchise for the southern California market region that includes Clark County and Las Vegas, Nevada. As a result of these acquisitions, Southwest Specialty Eggs, LLC has licensing agreements for the sale of Egg-Land’s Best® and Land O’ Lakes® branded specialty eggs, as well as 4Grain®, Farmhouse Eggs® and other premium brands in these market regions.
Baker added, “These transactions are commensurate with our growth strategy to expand our market reach in specialty egg sales. Consumer demand for specialty eggs has continued to grow and Cal-Maine Foods is well positioned to meet this demand with a variety of healthy choices for our customers. 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 and we were able to benefit from lower feed costs in the first quarter of fiscal 2015 compared with the same period last year. Our average feed costs were 48.4 cents per dozen, down 11 percent from the first quarter of fiscal 2014. However, we continue to pay relatively high basis levels for our primary feed ingredients, particularly soybean meal, and we expect this trend to continue until the fall harvest is in and supplies are replenished. Operating income was $41.2 million for the first quarter compared with $11.1 million a year ago. These results reflect our lower feed costs and our management team’s focused efforts throughout our operations to be an efficient, low-cost producer.
-MORE-
CAL-MAINE FOODS, INC. POST OFFICE BOX 2960 ▪ JACKSON, MISSISSIPPI 39207
PHONE 601-948-6813 FAX 601-969-0905
Cal-Maine Foods Reports First Quarter Fiscal 2015 Results
Page 2
September 29, 2014
“Looking ahead to the remainder of the year, we are monitoring macroeconomic conditions that could have an impact on Cal-Maine Foods and the egg industry. The current USDA reports indicate the national laying flock is at a record high level, which could increase the future egg supply and put downward pressure on egg prices. Additionally, the pending implementation of Proposition 2 and Assembly Bill 1437 related to egg production standards and sales in California is expected to be effective January 1, 2015. While the final outcome is still uncertain, this legislation could have a significant impact on egg production throughout the country and is being closely watched by everyone in our industry.
“We are pleased with Cal-Maine Food’s performance to date, and we believe the fundamentals of our business support continued growth and profitability for fiscal 2015,” added Baker. “The expansion projects for our operations in Florida, Kansas, Kentucky and Texas are moving forward, and the additional capacity and improved efficiencies will result in less dependence on outside egg purchases. In addition, we will significantly expand our capacity for specialty eggs at both the Kansas and Kentucky facilities. The more favorable growing conditions this summer should improve the yield of this year’s corn and soybean crops and support lower feed costs for the remainder of this fiscal year once the harvest season is over. Additionally, we believe our focused marketing efforts to expand specialty egg sales will enhance our ability to meet the changing demands of our customers. Overall, we believe we have the right growth strategy in place and look forward to the opportunities ahead for Cal-Maine Foods in fiscal 2015.”
For the first quarter of fiscal 2015, Cal-Maine Foods will pay a cash dividend of approximately $0.381 per share to holders of its common and Class A common stock. Pursuant to Cal-Maine Foods’ variable dividend policy, in each quarter for which the Company reports net income, the Company pays a cash dividend to shareholders in an amount equal to one-third of such quarterly income. No dividends are paid in a quarter for which the Company does not report net income. The amount paid could vary slightly based on the amount of outstanding shares on the record date. The dividend is payable November 13, 2014, to shareholders of record on October 29, 2014.
Selected operating statistics for the first quarter of fiscal 2015 compared with the prior year period are shown below:
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13 Weeks Ended
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August 30, 2014
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August 31, 2013
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Dozen Eggs Sold (000)
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251,684
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242,549
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Dozen Eggs Produced (000)
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192,216
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179,727
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% Specialty Sales (dozen)
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18.8%
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16.2%
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Net Average Selling Price (dozen)
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$ 1.354
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$ 1.253
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Feed Cost (dozen)
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$ 0.484
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$ 0.544
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% Specialty Sales Dollars
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26.8%
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24.6%
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Cal-Maine Foods, Inc. is primarily engaged in the production, grading, packing and sale of fresh shell eggs, including conventional, cage-free, organic and nutritionally-enhanced eggs. The Company, which is headquartered in Jackson, Mississippi, is the largest producer and distributor of fresh shell eggs in the United States and sells the majority of its shell eggs in approximately 29 states across the southwestern, southeastern, mid-western and mid-Atlantic regions of the United States.
CALM Reports First Quarter Fiscal 2015 Results
Page 3
September 29, 2014
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 Item 1A of our Annual Report on Form 10-K for the fiscal year ended May 31, 2014, as updated by our subsequent 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) risks, changes or obligations that could result from our future acquisition of new flocks or businesses, and (v) 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 update publicly these forward-looking statements, whether as a result of new information, future events or otherwise.
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CALM Reports First Quarter Fiscal 2015 Results
Page 4
September 29, 2014
CAL-MAINE FOODS, INC. AND SUBSIDIARIES
FINANCIAL HIGHLIGHTS
SUMMARY STATEMENTS OF INCOME
(Unaudited)
(In thousands, except per share amounts)
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13 Weeks Ended
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August 30, 2014
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August 31, 2013
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Net sales
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$ 356,944
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$ 319,528
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Gross profit
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81,101
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44,911
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Operating income
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41,163
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11,070
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Other income
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1,623
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2,711
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Income before income taxes and noncontrolling interest
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42,786
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13,781
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Income before income taxes attributable to Cal-Maine Foods, Inc.
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42,256
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13,640
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Net income
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$ 27,655
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$ 8,756
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Net income per share:
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Basic
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$ 1.15
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$ 0.36
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Diluted
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$ 1.14
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$ 0.36
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Weighted average shares outstanding
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Basic
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24,065
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24,039
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Diluted
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24,199
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24,131
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SUMMARY BALANCE SHEETS
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4
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August 30,
2014
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May 31,
2014
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ASSETS
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Cash and short-term investments
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$ 210,979
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$ 209,259
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Receivables
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89,762
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87,516
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Inventories
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144,626
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146,117
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Prepaid expenses and other current assets
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4,240
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2,501
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Current assets
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449,607
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445,393
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Property, plant and equipment (net)
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326,390
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314,935
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Other noncurrent assets
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53,361
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51,333
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Total assets
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$ 829,358
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$ 811,661
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LIABILITIES AND STOCKHOLDERS' EQUITY
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Accounts payable and accrued expenses
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$ 82,462
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$ 80,434
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Current maturities of long-term debt
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10,116
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10,216
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Deferred income taxes
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30,297
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30,451
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Current liabilities
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122,875
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121,101
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Long-term debt, less current maturities
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48,352
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50,877
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Deferred income taxes and other liabilities
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44,335
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44,938
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Stockholders' equity
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613,796
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594,745
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Total liabilities and stockholders' equity
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$ 829,358
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$ 811,661
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