CALM 8-K
Cal-Maine Foods Inc (CALM)
8-K
2023-10-03
For: 2023-10-03
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April 11, 2026
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM
CURRENT REPORT
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Item 2.02. Results of Operations
On October 3, 2023, Cal-Maine Foods, Inc. (the “Company”) issued a press release announcing its financial results for the first
quarter ended September 2, 2023. 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:
October 3, 2023
By:
/s/ Max P. Bowman
Max P. Bowman
Director, Vice President, and Chief Financial Officer
Exhibit 99.1
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Contacts:
Sherman Miller, President and CEO
Max P. Bowman, Vice President and CFO
(601) 948-6813
CAL-MAINE FOODS REPORTS RESULTS
FOR FIRST QUARTER FISCAL 2024
RIDGELAND, Miss. (October 3, 2023) - Cal-Maine Foods, Inc. (NASDAQ: CALM) (“Cal-Maine Foods” or
the “Company”), the largest producer and distributor of fresh shell eggs in the United States, today reported
results for the first quarter of fiscal 2024 (thirteen weeks) ended September 2, 2023.
First Quarter Fiscal Year 2024 Highlights
●
Quarterly net sales of $459.3 million
●
Quarterly net income of $926,000 or $0.02 per basic and diluted common share
●
Net average selling price for specialty eggs increased 8.4 percent quarter-over-quarter
●
Cash dividend of $294,000, or $0.006 per share, pursuant to the Company’s established
dividend policy
Overview
Sherman Miller, president and chief executive officer of Cal-Maine Foods, Inc., stated, “Our results
for the first quarter of fiscal 2024 reflect the current dynamic market conditions. After reaching record
high levels in fiscal 2023, average selling prices for shell eggs have since returned to more normalized levels
as the overall egg supply recovers from the most recent highly pathogenic avian influenza (“HPAI”)
outbreak, which depleted the national hen supply. Customer demand has been favorable with conventional
egg volumes higher than a year ago, offset by lower sales of specialty eggs. We continue to focus on offering
customers a wide range of quality choices in shell eggs, as well as egg products offerings, with a favorable
product mix in line with changing consumer demand trends.
“Our operations ran well during the quarter, and we benefitted from lower feed costs, although we
generally continued to incur higher input costs. Our team has continued to focus on managing our
operations in an efficient and sustainable manner. While there have been no recent outbreaks of HPAI in
commercial egg laying flocks, we remain diligent in following strict protocols and continue to invest in
additional resources to reduce future risk. We commend the work of our managers and employees who
responsibly managed our production and continued to bring more quality eggs to the market to support
our valued customers. We also have a number of expansion projects underway to increase our production
capacity, and we look forward to the opportunities to expand our market reach.
selective acquisitions. Following the end of the first quarter, we announced a definitive agreement to
acquire substantially all the assets of Fassio Egg Farms, Inc., related to its commercial shell egg production,
and processing business, located in Erda, Utah, outside of Salt Lake City. The assets to be acquired include
facilities with a current capacity of approximately 1.2 million laying hens, primarily cage-free, a feed mill,
pullets, a fertilizer production and composting operation and land. We expect to close this transaction
during the second fiscal quarter. We are excited about the opportunity to expand our market presence in
Utah and the western United States,” added Miller.
Cal-Maine Foods Reports First Quarter Fiscal 2024 Results
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October 3, 2023
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Sales Performance & Operating Highlights
Max Bowman, vice president and chief financial officer of Cal-Maine Foods, Inc., added, “For the
first quarter of fiscal 2024, our net sales were $459.3 million compared with $658.3 million for the same
period last year, which was an exceptionally strong first quarter performance driven by record average
conventional selling prices and record specialty sales volumes. The decline in revenue for the first quarter
of fiscal 2024 was primarily due to the decrease in the net average selling price for conventional eggs,
partially offset by the increase in the net average selling price for specialty eggs. Net income for the first
quarter of fiscal 2024 was $926,000, or $0.02 per diluted share, compared with $125.3 million, or $2.57
per diluted share, for the first quarter of fiscal 2023.
“Conventional egg net average selling price per dozen was $1.241 for the first quarter of fiscal 2024
compared with $2.368 for the prior-year quarter. Conventional egg selling prices declined significantly in
the first quarter of fiscal 2024 compared to the first quarter of fiscal 2023 as the U.S. egg supply recovers
from the most recent HPAI outbreak. Net average selling price for specialty eggs rose to $2.278 per dozen,
compared with $2.101 per dozen for the first quarter of fiscal 2023. Specialty dozens sold were 33.5% of
total dozens sold in the first quarter of fiscal 2024 compared with 34.7% in the prior-year period.
“We reported an operating loss of $6.8 million for the first quarter of fiscal 2024, compared with
operating income of $163.9 million for the prior-year quarter, reflecting lower conventional shell egg prices
and increased labor costs, partially offset by lower farm production costs due to the decrease in feed
ingredient prices. We remained focused on disciplined cost management as we generally continued to incur
higher input costs at our production, processing and distribution centers, as well as costs incurred for
additional bio-security measures to mitigate the risk of HPAI. Overall, first quarter farm production costs
per dozen decreased 1.0% compared with the prior-year quarter. For the first quarter of fiscal 2024, feed
costs per dozen were $0.597, a 10.5% decrease compared with the first quarter of fiscal 2023.
“Current indications for corn project an overall better stocks-to-use ratio; however, until this year’s
harvest is complete and as long as outside factors remain uncertain [including weather patterns and the
Russia-Ukraine war and its effect on export markets], volatility could remain. Soybean meal supply has
remained tight relative to demand in the first quarter of fiscal 2024.
13 Weeks Ended
September 2, 2023
August 27, 2022
Dozen Eggs Sold (000)
273,126
275,317
Conventional Dozen Eggs Sold (000)
181,530
179,712
Specialty Dozen Eggs Sold (000)
91,596
95,605
Dozen Eggs Produced (000)
250,356
257,654
% Specialty Sales (dozen)
33.5
%
34.7
%
% Specialty Sales (dollars)
47.7
%
31.8
%
Net Average Selling Price (per dozen)
$
1.589
$
2.275
Net Average Selling Price Conventional Eggs (per dozen)
$
1.241
$
2.368
Net Average Selling Price Specialty Eggs (per dozen)
$
2.278
$
2.101
Feed Cost (per dozen)
$
0.597
$
0.667
Product Mix & Cage-Free Eggs
“Specialty eggs remain an important area of focus of Cal-Maine Food’s growth strategy. A top
priority of this strategy is to expand our cage-free production capacity with the goal of meeting future
customer needs in line with changing state requirements. We continue to work closely with our customers
regarding their expected timing and purchase decisions related to their previously announced plans to offer
cage-free eggs exclusively by specific future dates. We have invested significant capital to acquire and
construct cage-free facilities as our volume of cage-free egg sales has continued to increase and account for
Cal-Maine Foods Reports First Quarter Fiscal 2024 Results
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October 3, 2023
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a greater share of our product mix. Cage-free egg revenue comprised approximately 33.0% of total net shell
egg revenue for the first quarter of fiscal 2024,” added Bowman.
Table Egg Supply Outlook
The most recent outbreak of HPAI affected the Company’s business and financial results primarily
during the fourth quarter of fiscal 2022 and continuing into the first part of the fourth quarter of fiscal
2023. While the last occurrence in a commercial egg laying flock was in December 2022, there have been
occurrences in other avian populations in the U.S. since then. HPAI is still present in the wild bird
population and the extent of possible future outbreaks, particularly during the upcoming fall migration
season, cannot be predicted. There have been no positive tests for HPAI at any of Cal-Maine Foods’ owned
or contracted production facilities as of October 2, 2023. Based on USDA data, the Company believes that
the U.S. layer hen flock, which declined as a result of flock depletions due to HPAI, has largely recovered
but remains slightly lower than the five-year average.
Layer hen numbers reported by the USDA as of September 1, 2023, were 318.2 million, which
represents an increase of 3.1% compared with the layer hen inventory a year ago. The USDA also reported
that the hatch from April 2023 through August 2023 increased 2.0% as compared with the prior-year
period, indicating that layer flocks may continue to increase in the future.
Looking Ahead
Miller added, “We look forward to the opportunities ahead for Cal-Maine Foods in fiscal 2024.
While we face ongoing challenges related to the threat of HPAI and inflationary headwinds, we will
continue to manage the aspects of our business we can control. We are uniquely positioned to support the
nation’s food supply with nutritious and affordable protein, and we believe demand for our products will
continue to grow. We are confident we have the right strategy in place to meet this demand, with a proven
operating model that will drive long-term growth. Across our operations, we have a shared commitment
to our mission to be the most reliable and sustainable producer of fresh shell eggs and egg products.
Importantly, we have a dedicated workforce, and sufficient capital to fund internal expansion projects and
consider additional potential acquisitions to support our strategy. Above all, we will strive to meet the
demands of our valued customers and deliver greater value to our shareholders.
”
Dividend Payment
For the first quarter of fiscal 2024, Cal-Maine Foods will pay a cash dividend of approximately
$0.006 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 November 16, 2023, to holders of record on November 1, 2023.
About Cal-Maine Foods
Cal-Maine Foods, Inc. is primarily engaged in the production, grading, packaging, marketing and
distribution of fresh shell eggs, including conventional, cage-free, organic, brown, 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.
Cal-Maine Foods Reports First Quarter Fiscal 2024 Results
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October 3, 2023
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Forward Looking Statements
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), including but not limited to the most recent
outbreak of highly pathogenic avian influenza affecting poultry in the U.S., Canada and other countries
that was first detected in commercial flocks in the U.S. in February 2023, (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 increased costs, and higher and potentially further
increases in inflation and interest rates, which began in response to market conditions caused in part by
the COVID-19 pandemic and which generally have been exacerbated by the Russia-Ukraine war that
began in February 2023, (vii) our ability to retain existing customers, acquire new customers and grow
our product mix, and (viii) adverse results in pending litigation matters. SEC filings may be obtained
from the SEC or the Company’s website
,
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 publicly update these forward-looking
statements, whether as a result of new information, future events or otherwise.
Cal-Maine Foods Reports First Quarter Fiscal 2024 Results
Page 5
October 3, 2023
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CAL-MAINE FOODS, INC. AND SUBSIDIARIES
FINANCIAL HIGHLIGHTS
(Unaudited)
(In thousands, except per share amounts)
SUMMARY STATEMENTS OF INCOME
13 Weeks Ended
September 2, 2023
August 27, 2022
Net sales
$
459,344
$
658,344
Cost of sales
413,911
440,854
Gross profit
45,433
217,490
Selling, general and administrative
52,246
53,607
(Gain) loss on disposal of fixed assets
(56)
33
Operating income (loss)
(6,757)
163,850
Other income, net
7,490
1,630
Income before income taxes
733
165,480
Income tax expense
322
40,346
Net income
411
125,134
Less: Loss attributable to noncontrolling interest
(515)
(153)
Net income attributable to Cal-Maine Foods, Inc.
$
926
$
125,287
Net income per common share:
Basic
$
0.02
$
2.58
Diluted
$
0.02
$
2.57
Weighted average shares outstanding:
Basic
48,690
48,623
Diluted
48,840
48,811
Cal-Maine Foods Reports First Quarter Fiscal 2024 Results
Page 6
October 3, 2023
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CAL-MAINE FOODS, INC. AND SUBSIDIARIES
FINANCIAL HIGHLIGHTS
(Unaudited)
(In thousands)
SUMMARY BALANCE SHEETS
September 2, 2023
June 3, 2023
ASSETS
Cash and short-term investments
$
609,962
$
647,914
Receivables, net
159,150
187,213
Inventories, net
280,801
284,418
Prepaid expenses and other current assets
14,145
5,380
Current assets
1,064,058
1,124,925
Property, plant and equipment, net
752,580
744,540
Other noncurrent assets
83,729
85,060
Total assets
$
1,900,367
$
1,954,525
LIABILITIES AND STOCKHOLDERS' EQUITY
Accounts payable and accrued expenses
$
126,088
$
145,601
Dividends payable
294
37,130
Current liabilities
126,382
182,731
Deferred income taxes and other liabilities
162,655
162,211
Stockholders' equity
1,611,330
1,609,583
Total liabilities and stockholders' equity
$
1,900,367
$
1,954,525