CALM 8-K
Cal-Maine Foods Inc (CALM)
8-K
2024-10-01
For: 2024-10-01
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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 1, 2024, Cal-Maine Foods, Inc. (the “Company”) issued a press release announcing its financial results for the first
quarter ended August 31, 2024. 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 1, 2024
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 2025
RIDGELAND, Miss. (October 1, 2024) - 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 2025 (thirteen weeks) ended August 31, 2024.
First Quarter Fiscal 2025 Highlights
●
Quarterly net sales of $785.9 million
●
Quarterly net income of $150.0 million, or $3.06 per diluted share
●
Quarterly record for total dozens sold and specialty dozens sold
●
Cash dividend of approximately $50.0 million, or $1.02 per share, pursuant to the Company’s
established dividend policy
Overview
Sherman Miller, president and chief executive officer of Cal-Maine Foods, stated, “Our financial
and operating results for the first quarter mark a strong start to fiscal 2025 for Cal-Maine Foods. These
results reflect favorable demand for shell eggs during most of the quarter and significantly higher market
prices compared with the first quarter last year. At the same time, the national egg supply has declined due
to the recent outbreaks of highly pathogenic avian influenza (“HPAI”). As of September 1, 2024, the total
U.S. hen population fell approximately 4.5% below the five-year average to 307.6 million layers. We have
worked hard to increase our production and purchase more eggs from outside suppliers, and our team did
an outstanding job bringing more eggs to the market despite this low-supply environment. Our higher
volumes and sales were supported by the additional production capacity from recent acquisitions as well
as consistent organic growth. Our operations ran well as we continued to extend our market reach and
supply the demands of our valued customers.
“We believe that today’s consumers are looking for affordable and nutritious protein options and
that our shell eggs and egg products meet that need. In addition, our ability to offer a diverse product mix
has been a distinct competitive advantage for Cal-Maine Foods. We strive to meet evolving consumer
demand and provide choices that include conventional, cage-free, organic, brown, free-range, pasture-
raised and nutritionally enhanced eggs. We have also expanded our product portfolio to include value-
added egg products through our previous investment in Meadowcreek Foods, LLC for hard-cooked eggs
and our recent strategic investment in Crepini Foods LLC (“Crepini”), a new venture offering egg products
and prepared foods. We have a unique opportunity to leverage the established Crepini brand of quality
products, including egg wraps, protein pancakes, crepes and wrap-ups, and extend our market reach to
major retailers across the country. We believe there are significant opportunities to use our scale and offer
additional choices through value-added egg products to our established customer base.
“Subsequent to the end of the first quarter of fiscal 2025, Hurricane Helene made landfall in the
southeastern United States, including areas where Cal-Maine Foods has operations and contract
farmers. We are still evaluating the impact of the storm on our people, birds, facilities and operations;
however, at this time, we believe that all of our employees and contractors are safe and that any loss of
company-owned production assets is minimal and not likely to be material. We are extremely proud of our
Cal-Maine Foods Reports First Quarter Fiscal 2025 Results
Page 2
October 1, 2024
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operating teams in the affected areas as they executed our contingency plans for these severe weather
events. As always, our top priority is the safety of our employees and the welfare of the birds under our
care. We continue to do all we can to serve our valued customers and expect any service disruption to be
minimal. We are deeply saddened by the destruction in the affected communities and are grateful for the
heroic work of first responders who are dealing with the aftermath of the storm as conditions allow,” added
Miller.
Sales Performance & Operating Highlights
Max Bowman, vice president and chief financial officer of Cal-Maine Foods, added, “For the first
quarter of fiscal 2025, our net sales were $785.9 million compared with $459.3 million for the same period
last year. The higher sales were primarily driven by an increase in the net average selling price of shell eggs
as well as an increase in total dozens sold.
“For the first fiscal quarter, we sold 310.0 million dozens shell eggs compared with 273.1 million
dozens for the first quarter of fiscal 2024. Sales of conventional eggs totaled 200.0 million dozens,
compared with 181.5 million dozens for the prior-year period, an increase of 10.2%. Specialty egg volumes
were 20.1% higher with 110.0 million dozens sold for the first quarter of fiscal 2025 compared with 91.6
million dozens sold for the first quarter of fiscal 2024.
“Net income attributable to Cal-Maine Foods for the first quarter of fiscal 2025 was $150.0 million,
or $3.06 per diluted share, compared with $926,000, or $0.02 per diluted share, for the first quarter of
fiscal 2024.
“Overall, our first quarter farm production costs per dozen were 11.7% lower compared to the prior-
year period, primarily due to more favorable commodity pricing for key feed ingredients. For the first
quarter of fiscal 2025, feed costs per dozen were down 17.3% compared with the first quarter of fiscal 2024.
Our egg purchases and other (including change in inventory) costs increased significantly quarter-over-
quarter, primarily due to higher shell egg prices as well as an increase in dozens purchased due to the loss
of production caused by the HPAI outbreaks at our facilities, described below.
“Current indications for corn supply project an overall better stocks-to-use ratio, implying more
favorable prices in the near term. However, as we continue to face uncertain external forces including
weather patterns and global supply chain disruptions, price volatility could remain,” said Bowman.
13 Weeks Ended
August 31, 2024
September 2, 2023
Dozen Eggs Sold (000)
309,979
273,126
Conventional Dozen Eggs Sold (000)
199,989
181,530
Specialty Dozen Eggs Sold (000)
109,990
91,596
Dozen Eggs Produced (000)
266,839
250,365
% Specialty Sales (dozen)
35.5
%
33.5
%
% Specialty Sales (dollars)
34.2
%
47.7
%
Net Average Selling Price (per dozen)
$
2.392
$
1.589
Net Average Selling Price Conventional Eggs (per dozen)
$
2.424
$
1.241
Net Average Selling Price Specialty Eggs (per dozen)
$
2.335
$
2.278
Feed Cost (per dozen)
$
0.494
$
0.597
Cal-Maine Foods Reports First Quarter Fiscal 2025 Results
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October 1, 2024
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HPAI & Table Egg Supply Outlook
Outbreaks of HPAI have continued to occur in U.S. poultry flocks. From the resurgence beginning
in November 2023 until the last reported case in commercial layer hens in July 2024, approximately 33.1
million commercial laying hens and pullets have been depopulated.
During the third and fourth quarters of fiscal 2024, Cal-Maine Foods experienced HPAI outbreaks
within Company facilities located in Kansas and Texas, resulting in total depopulation of approximately 3.1
million laying hens and 577,000 pullets. Both locations have been cleared by the USDA to resume
operations. Repopulation began during first fiscal quarter 2025 and is expected to be completed before
calendar year end.
The Company remains dedicated to robust biosecurity programs across its locations; however, no
farm is immune from HPAI. HPAI is currently widespread in the wild bird population worldwide. The
extent of possible future outbreaks, with heightened risk during the migration seasons, and more recent
HPAI events, which have been directly linked to dairy cattle operations, cannot be predicted. According to
the U.S. Centers for Disease Control and Prevention, the human health risk to the U.S. public from the
HPAI virus is considered to be low. Also, according to the USDA, HPAI cannot be transmitted through
safely handled and properly cooked eggs. There is no known risk related to HPAI associated with eggs that
are currently in the market and no eggs have been recalled.
Looking Ahead
Miller added, “We are proud of our ability to consistently execute our growth strategy in a dynamic
environment with favorable results. We commend our dedicated managers and employees whose shared
commitment to operational excellence and responsible and sustainable production have distinguished Cal-
Maine Foods in the marketplace. As the largest producer and distributor of fresh shell eggs in the U.S., we
are mindful of our critical role in supporting the nation’s food supply with a differentiated product mix. As
such, we continue to expand our capacity, including cage-free and other specialty egg production, through
investments in innovative, scale-driven products and facilities. We have also identified opportunities to
enhance our product portfolio through strategic acquisitions and joint ventures. We are fortunate to have
a strong balance sheet and a disciplined capital allocation strategy that supports our growth objectives.
Above all, we are focused on meeting the needs of our valued customers with quality products and
outstanding support and service. We look forward to the opportunities ahead for Cal-Maine Foods.”
Dividend Payment
For the fourth quarter of fiscal 2024, Cal-Maine Foods will pay a cash dividend of approximately
$1.02 per share to holders of its Common Stock 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 14, 2024, to holders of record on October 30, 2024.
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,
Cal-Maine Foods Reports First Quarter Fiscal 2025 Results
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October 1, 2024
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is the largest producer and distributor of fresh shell eggs in the nation and sells most of its shell eggs
throughout the majority of the United States.
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 current
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 2022 and that first impacted our
flocks in December 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 recent or future acquisitions 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 changes in inflation and interest rates, (vii) our ability to retain existing customers, acquire new
customers and grow our product mix, (viii) adverse results in pending litigation matters, and (ix) global
instability, including as a result of the war in Ukraine, the conflicts in Israel and surrounding areas and
attacks on shipping in the Red Sea. 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 publicly update these forward-looking statements, whether as a
result of new information, future events or otherwise.
Cal-Maine Foods Reports First Quarter Fiscal 2025 Results
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October 1, 2024
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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
August 31, 2024
September 2, 2023
Net sales
$
785,871
$
459,344
Cost of sales
538,653
413,911
Gross profit
247,218
45,433
Selling, general and administrative
61,932
52,246
Loss on involuntary conversions
146
-
Gain on disposal of fixed assets
(1,817)
(56)
Operating income (loss)
186,957
(6,757)
Other income, net
10,996
7,490
Income before income taxes
197,953
733
Income tax expense
48,363
322
Net income
149,590
411
Less: Loss attributable to noncontrolling interest
(386)
(515)
Net income attributable to Cal-Maine Foods, Inc.
$
149,976
$
926
Net income per common share:
Basic
$
3.08
$
0.02
Diluted
$
3.06
$
0.02
Weighted average shares outstanding:
Basic
48,761
48,690
Diluted
48,932
48,840
Cal-Maine Foods Reports First Quarter Fiscal 2025 Results
Page 6
October 1, 2024
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CAL-MAINE FOODS, INC. AND SUBSIDIARIES
FINANCIAL HIGHLIGHTS
(Unaudited)
(In thousands)
SUMMARY BALANCE SHEETS
August 31, 2024
June 3, 2023
ASSETS
Cash and short-term investments
$
753,590
$
812,377
Receivables, net
282,551
162,442
Inventories, net
293,182
261,782
Prepaid expenses and other current assets
14,156
5,238
Current assets
1,343,479
1,241,839
Property, plant and equipment, net
960,070
857,234
Other noncurrent assets
86,459
85,688
Total assets
$
2,390,008
$
2,184,761
LIABILITIES AND STOCKHOLDERS' EQUITY
Accounts payable and accrued expenses
$
275,444
$
189,983
Dividends payable
49,971
37,760
Current liabilities
325,415
227,743
Deferred income taxes and other liabilities
165,530
159,975
Stockholders' equity
1,899,063
1,797,043
Total liabilities and stockholders' equity
$
2,390,008
$
2,184,761