Cal-Maine Foods Inc 8-K, filed Mar 29, 2022
Cal-Maine Foods Inc (CALM)
8-K
2022-03-29
For: 2022-03-29
View Original
Added on
April 11, 2026
About this 8-K
Cal-Maine Foods Inc filed this 8-K on March 29, 2022.
Items reported
- Item 2.02: Financial results
- Item 9.01: Financial statements and exhibits
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FORM
CURRENT REPORT
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Item 2.02. Results of Operations
On March 29, 2022, Cal-Maine Foods, Inc. (the “Company”) issued a press release announcing its financial results for the third
quarter of fiscal 2022. A copy of the Company’s press release is attached hereto as Exhibit 99.1 to this Current Report.
In accordance with General Instruction B.2 of Form 8-K, the information in this Item 2.02 of this Current Report on Form 8-K,
including Exhibit 99.1 hereto, which are furnished herewith pursuant to and relate to this Item 2.02, shall not be deemed "filed"
for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or otherwise be subject
to the liabilities of Section 18 of the Exchange Act. The information in this Item 2.02 of this Current Report on Form 8-K and
Exhibit 99.1 hereto shall not be incorporated by reference into any filing or other document filed by the Company with the SEC
pursuant to the Securities Act of 1933, as amended, the rules and regulations of the SEC thereunder, the Exchange Act, or the
rules and regulations of the SEC thereunder except as shall be expressly set forth by specific reference to this Form 8-K in such
filing or document.
Item 9.01. Financial Statements and Exhibits
(d) Exhibits
Exhibit
Number
Description
104
Cover Page Interactive Data File, (embedded within the Inline XBRL document)
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.
CAL-MAINE FOODS, INC.
Date:
March 29, 2022
By:
/s/ Max P. Bowman
Max P. Bowman
Director, Vice President, and Chief Financial Officer
Exhibit 99.1
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Contacts:
Dolph Baker, Chairman and CEO
Max P. Bowman, Vice President and CFO
(601) 948-6813
CAL-MAINE FOODS REPORTS THIRD QUARTER FISCAL 2022 RESULTS
RIDGELAND, Miss. (March 29, 2022) - Cal-Maine Foods, Inc. (NASDAQ: CALM) today reported results
for the third quarter of fiscal 2022 (thirteen weeks) and 39-week period ended February 26, 2022.
Net sales in the third quarter of fiscal 2022 increased 33.0 percent to $477.5 million compared to
$359.1 million in the third quarter of fiscal 2021. The Company reported net income of $39.5 million, or
$0.81 per basic and diluted common share, for the third quarter of fiscal 2022, compared to net income
of $13.5 million, or $0.28 per basic and diluted common share, for the third quarter of fiscal 2021.
For the thirty-nine weeks ended February 26, 2022, net sales were $1,184.2 million compared to
$999.2 million in the prior-year period. The Company reported net income of $22.7 million, or $0.46 per
basic and diluted common share, for the thirty-nine weeks ended February 26, 2022, compared with net
income of $6.3 million, or $0.13 per basic and diluted common share, for the
prior-year period.
pleased to report a strong performance for the third quarter of fiscal 2022. Net sales of $477.5 million
represented a third quarter revenue record, driven by improved shell egg pricing. The net average selling
price for all eggs increased 29.4 percent to $1.612 per dozen compared with $1.246 per dozen in the
prior-year period. Cal-Maine Foods also delivered growth in shell egg volumes. Total dozens sold in the
third quarter increased 2.8 percent versus the prior-year quarter, led by an approximate 1.4 percent
improvement within the retail sales channel that outpaced the industry, which experienced shell egg
volume declines of 6.4 percent.
1
compared to the prior-year quarter. This increase reflects overall improved market conditions, strong
growth in our specialty egg sales, our continued focus on expense management and our ability to leverage
our owned production capabilities.
“In the third quarter of fiscal 2022, our total dozens sold increased to 287.7 million versus
279.7 million in the prior-year quarter, reflecting an increase in specialty egg dozens sold, partially offset
by a decrease in conventional egg dozens sold. In the third quarter, industry retail demand for shell eggs
decreased slightly as compared to the strong demand of the “stay-at-home” COVID-19 period. However,
with improving demand for food service breaking stock, overall demand is returning to a more consistent,
historical pattern. Year-to-date, our total dozens sold decreased modestly to 811.8 million, or 0.7 percent,
driven by a 5.2 percent decrease in conventional volumes, partially offset by an 11.7 percent increase in
specialty egg volumes. Our year-to-date shell egg sales volumes within the retail sales channel were down
2.5 percent as compared with a 7.6 percent volume decline in the retail shell egg market for the
comparable period.
2
investment in our specialty egg business, including cage-free capabilities, and strategic expansion of our
distribution network through our recent additional investment in Southwest Specialty Eggs
in the
southern California, Arizona and Nevada markets
.
“The table egg layer hen inventory reported by the USDA as of March 1, 2022, was 322.7 million,
a decrease of 1.6 percent versus the prior year and trending below the five-year average. The USDA also
reported that the egg-type chick hatch from October, 2021 through February, 2022 decreased 5.5 percent
1) IRI Unify. U.S. multi-outlet sales, 13 weeks ended February 27, 2022. Egg category less non-egg products.
2) IRI Unify. U.S. multi-outlet sales, May 31, 2021 through February 27, 2022. Egg category less non-egg products.
CALM Reports Third Quarter Fiscal 2022 Results
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March 29, 2022
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compared to the prior years’ comparable periods. As of March 1, 2022, table-type eggs in incubators
totaled 55.4 million, a decrease of 7.6 percent year over year.
39.4 percent of total shell egg revenue, compared with $145.2 million, or 41.5 percent of revenue, for the
prior-year quarter. Specialty egg dozens sold increased to 95.1 million, or 24.1 percent, versus the prior
year and represented 33.1 percent of total dozens sold in the third quarter of fiscal 2022 compared with
27.4 percent in the prior-year quarter. The specialty egg net average selling price per dozen increased to
$1.923, or 1.5 percent, versus the third quarter of fiscal 2021. Specialty egg sales remain an integral part
of our growth strategy. Consumer preference for specialty eggs, including cage-free eggs, continues to
expand with more consumers willing to pay premium prices for these products. Cage-free egg sales
comprised 24.1 percent of total net shell egg sales in the third quarter of fiscal 2022 and 23.0 percent of
total net shell egg sales fiscal year-to-date. We continue to focus on offering a favorable product mix that
meets the needs of our customers, including conventional, cage-free, organic and other specialty eggs and
egg products.
“We are closely monitoring the recently reported outbreaks of highly pathogenic avian influenza
(“HPAI”). As of Monday, March 28, 2022, the U.S. Department of Agriculture’s Animal and Plant Health
Inspection Service, (“APHIS”), reported that approximately 11.5 million commercial table egg layer hens,
or about 3.6 percent of the table egg layer flock based on February 2022 reported layer numbers, have
been depopulated given the impacts of HPAI. Pullets impacted comprise approximately 830,000, or
about 0.7 percent of the pullet inventory. According to the U.S. Centers for Disease Control and
Prevention, these detections do not present an immediate public health concern. There have been no
positive tests for HPAI at any Cal-Maine Foods’ owned or contracted production facility to date. We
continue to maintain robust biosecurity programs across our locations in accordance with APHIS
guidelines. We are also working closely with egg industry associations and government officials
to
mitigate the risk of future outbreaks and effectively manage our response, if needed.
“For the third quarter of fiscal 2022, we reported operating income of $39.6 million compared
with an operating loss of $493,000 for the prior-year quarter. Our results reflect the current inflationary
environment with higher costs for feed, labor, packaging and delivery. Farm production costs per dozen
for the third quarter of fiscal 2022 increased 16.9 percent compared to the third quarter of fiscal 2021,
primarily tied to higher feed costs per dozen produced, which increased 20.3 percent compared with the
prior-year period. For the third quarter of fiscal 2022, the average Chicago Board of Trade (“CBOT”) daily
market price was $6.13 per bushel for corn and $412 per ton for soybean meal, representing an increase
of 23.5 percent and decrease of 2.5 percent, respectively, compared to the average daily CBOT prices for
the third quarter of fiscal 2021. While we experienced these production cost headwinds, we managed our
selling, general and administrative expense well, which reflects our continued focus on achieving
enterprise efficiencies.
“Supplies of corn and soybean remained tight relative to demand in our fiscal third quarter as
evidenced by the near-record-low stock-to-use ratio for corn, as well as weather-related shortfalls in
production and yields, and the ongoing disruptions related to the COVID-19 global pandemic. Going
forward: market indications point to corn and soybean pricing pressures and higher volatility tied to the
Russia-Ukraine war and export demand, which will result in continued pressure on the stock-to-use ratio
for corn.
“Despite input cost pressures and other market uncertainties, we remain focused on managing
our operations as efficiently and safely as possible. We have continued to deliver against our key
performance metrics, and we commend the work of our managers and employees across our operations
for consistent execution in challenging conditions. Our commitment to be the most reliable and
sustainable producer of fresh shell eggs and egg products remains unwavering. Cal-Maine Foods’
CALM Reports Third Quarter Fiscal 2022 Results
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March 29, 2022
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differentiated product mix and proven operating model continue to support our ability to meet changing
customer demand and extend our market reach. Importantly, we have the financial strength to support
our organic growth and expansion opportunities and consider potential acquisitions that are accretive to
our business,” added Baker.
For the third quarter of fiscal 2022, Cal-Maine Foods will pay a cash dividend of approximately
$o.125 cents per share to holders of its common and Class A common stock. Pursuant to Cal-Maine Foods’
variable dividend policy, for each quarter in 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. Following a
quarter for which the Company does not report net income, the Company will not pay a dividend with
respect to that quarter or for a subsequent profitable quarter until the Company is profitable on a
cumulative basis computed from the date of the most recent quarter for which a dividend was paid. The
amount paid per share will vary based on the number of outstanding shares on the record date. The
dividend is payable on May 12, 2022, to holders of record on April 27, 2022.
Select operating statistics for the third quarter of fiscal 2022 compared with the prior-year period
are shown below:
13 Weeks Ended
39 Weeks Ended
February 26,
2022
February 27,
2021
February 26,
2022
February 27,
2021
Dozen Eggs Sold (000)
287,651
279,715
811,821
817,360
Dozen Eggs Produced (000)
264,433
248,130
757,677
731,205
% Specialty Sales (dozen)
33.1
%
27.4
%
30.0
%
26.6
%
% Specialty Sales (dollars)
39.4
%
41.5
%
40.2
%
42.0
%
Net Average Selling Price (per dozen)
$
1.612
$
1.246
$
1.414
$
1.185
Net Average Selling Price Specialty Eggs (per dozen)
$
1.923
$
1.895
$
1.900
$
1.876
Feed Cost (per dozen)
$
0.562
$
0.467
$
0.546
$
0.422
Cal-Maine Foods, Inc. is primarily engaged in the production, grading, packing, marketing and
distribution of fresh shell eggs, including conventional, cage-free, organic, free-range, pasture-raised and
nutritionally enhanced eggs. The Company, which is headquartered in Ridgeland, Mississippi, is the
largest producer and distributor of fresh shell eggs in the United States and sells the majority of its shell
eggs in states across the southwestern, southeastern, mid-western and mid-Atlantic regions of the United
States.
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
the Company’s SEC filings (including its Annual Reports on Form 10-K, 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) our ability to predict and meet demand for cage-free
and other specialty eggs, (v) risks, changes or obligations that could result from our future acquisition
of new flocks or businesses and risks or changes that may cause conditions to completing a pending
acquisition not to be met, (vi) risks relating to the evolving COVID-19 pandemic, including without
limitation increased costs, rising inflation and interest rates and (vii) 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
CALM Reports Third Quarter Fiscal 2022 Results
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March 29, 2022
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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 publicly update these forward-looking statements, whether as a
result of new information, future events or otherwise.
CALM Reports Third Quarter Fiscal 2022 Results
Page 5
March 29, 2022
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CAL-MAINE FOODS, INC. AND SUBSIDIARIES
FINANCIAL HIGHLIGHTS
(Unaudited)
(In thousands, except per share amounts)
SUMMARY STATEMENTS OF OPERATIONS
13 Weeks Ended
39 Weeks Ended
February 26,
2022
February 27,
2021
February 26,
2022
February 27,
2021
Net sales
$
477,485
$
359,080
$
1,184,195
$
999,189
Cost of sales
385,903
311,563
1,042,221
876,457
Gross profit
91,582
47,517
141,974
122,732
Selling, general and administrative
52,686
47,656
146,991
135,494
(Gain) loss on disposal of fixed assets
(674)
354
(2,855)
476
Operating income (loss)
39,570
(493)
(2,162)
(13,238)
Other income, net
13,478
12,325
21,814
15,462
Income before income taxes
53,048
11,832
19,652
2,224
Income tax expense (benefit)
13,594
(1,716)
(2,921)
(4,080)
Net income
39,454
13,548
22,573
6,304
Less: Loss attributable to noncontrolling interest
(63)
—
(91)
—
Net income attributable to Cal-Maine Foods, Inc.
$
39,517
$
13,548
$
22,664
$
6,304
Net income per common share:
Basic
$
0.81
$
0.28
$
0.46
$
0.13
Diluted
$
0.81
$
0.28
$
0.46
$
0.13
Weighted average shares outstanding:
Basic
48,886
48,530
48,888
48,511
Diluted
49,036
48,659
49,035
48,649
CALM Reports Third Quarter Fiscal 2022 Results
Page 6
March 29, 2022
-END-
CAL-MAINE FOODS, INC. AND SUBSIDIARIES
FINANCIAL HIGHLIGHTS
(Unaudited)
(In thousands)
SUMMARY BALANCE SHEETS
February 26, 2022
May 29, 2021
ASSETS
Cash and short-term investments
$
96,714
$
169,510
Receivables, net
180,037
126,639
Inventories
240,087
218,375
Prepaid expenses and other current assets
5,872
5,407
Current assets
522,710
519,931
Property, plant and equipment, net
671,373
589,417
Other noncurrent assets
87,912
119,826
Total assets
$
1,281,995
$
1,229,174
LIABILITIES AND STOCKHOLDERS' EQUITY
Accounts payable and accrued expenses
$
120,665
$
89,191
Current portion of lease obligations
708
906
Current liabilities
121,373
90,097
Lease obligations, less current maturities
953
1,472
Deferred income taxes and other liabilities
129,426
124,824
Stockholders' equity
1,030,243
1,012,781
Total liabilities and stockholders' equity
$
1,281,995
$
1,229,174