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Contacts:
DolphBaker,ChairmanandCEO
MaxP.Bowman,VicePresidentandCFO
(601)948-6813
CAL-MAINE FOODS REPORTS RECORD SALES FOR FISCAL FIRST
QUARTER 2023, ANNOUNCES QUARTERLY CASH DIVIDEND
RIDGELAND,Miss.(September27,2022)-Cal-MaineFoods,Inc.(NASDAQ:CALM)("Cal-Maine
Foods",orthe"Company"),thelargestproduceranddistributoroffreshshelleggsintheUnited
States,todayreportedresultsforthefirstquarteroffiscal2023(thirteenweeks)endedAugust27,
2022.
First Quarter Fiscal 2023 Highlights
●
Recordquarterlynetsalesof$658.3million,a103%increasecomparedwiththesame
quarterlastyear,drivenbyrecordaverageconventionalsellingpriceandrecordspecialty
salesvolume
●
Firstquarternetincomeof$125.3million,or$2.58perbasicand$2.57perdiluted
commonshare
●
Firstquartergrossprofitmarginof33.0%
●
Announcesfirstquarterfiscal2023cashdividendof$0.85pershare
Overview
DolphBaker,chairmanandchiefexecutiveofficerofCal-MaineFoods,commented,"Weare
pleasedtobeginfiscal2023withrecordquarterlysalesforCal-MaineFoods.Webenefittedfrom
higheraveragesellingpricesandrecordspecialtyeggsalesvolumesleadingtohistoricCompany
recordrevenueforbothconventionalandspecialtyshelleggs.Wecontinuetofocusonoffering
consumersachoicewithafavorableproductmixinlinewithchangingdemandtrends.Webelieve
thisstrategyhascreatedmomentumacrossretailchannelsanddeliveredaperformancethathas
outpacedtheindustry.
"Ouroperationsranwellduringthequarter,andwearepleasedwithourabilitytomanage
thebusinessdespitesignificantinflationarypressurescontributingtorisingcostsforfeed,labor,
packaging,anddistribution,amongothercosts.Weremainfocusedontheaspectsofthebusiness
wecancontrolwithasharedcommitmentacrossCal-MaineFoods'operationstobethemost
efficientandsustainableproduceroffreshshelleggsandeggproductsintheUnitedStates."
MaxBowman,chieffinancialofficerofCal-MaineFoods,added,"Ourfinancialperformance
overthequarterreflectsourabilitytoexecuteouroperatingstrategyindynamicconditions,while
continuingtomeettheexpandingneedsofourcustomers.Thesignificantincreaseinpricingand
favorablevolumetrendsinspecialtyeggsales,alongwithefficientexpensemanagement,ledto
improvedprofitabilitywithagrossprofitmarginof33.0%forthefirstquarteroffiscal2023.
"Eggpricescontinuedtomovehigherduringthequarterassupplytightenedduetothe
impactofthehighlypathogenicavianinfluenza("HPAI")outbreakandgoodcustomerdemandfor
Cal-Maine Foods Announces Record Sales for First Quarter 2023
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September 27, 2022
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conventionaleggs.Conventionaleggnetaveragesellingpriceperdozenincreasedto$2.368
comparedwith$0.990ayearago,andbothconventionalandspecialtyeggrevenuereachedrecord
levelsforthefirstquarteroffiscal2023.Netaveragesellingpriceforspecialtyeggsrose12.2%to
$2.101perdozen,comparedwith$1.872perdozenforthefirstquarterof2022.Wesawourhighest
everquarterlysalesofspecialtyeggsof$200.8million,or31.8%oftotalshelleggrevenue.Specialty
dozenssoldwere34.7%oftotaldozenssoldcomparedwith27.8%intheprior-yearperiod."
13 Weeks Ended
August 27, 2022
August 28, 2021
DozenEggsSold(000)
275,317
254,622
ConventionalDozenEggsSold(000)
179,712
183,872
SpecialtyDozenEggsSold(000)
95,605
70,750
DozenEggsProduced(000)
257,654
236,458
%SpecialtySales(dozen)
34.7
%
27.8
%
%SpecialtySales(dollars)
31.8
%
42.0
%
NetAverageSellingPrice(perdozen)
$
2.275
$
1.235
NetAverageSellingPriceConventionalEggs(perdozen)
$
2.368
$
0.990
NetAverageSellingPriceSpecialtyEggs(perdozen)
$
2.101
$
1.872
FeedCost(perdozen)
$
0.667
$
0.545
Sales Performance & Operating Highlights
Netsalesinthefirstquarteroffiscal2023were$658.3million,comparedwith
$325.0millioninthefirstquarteroffiscal2022.TheCompanyreportednetincomeof$125.3
million,or$2.58perbasicand$2.57perdilutedcommonshare,comparedwithanetlossof$18.0
million,or$0.37perbasicanddilutedcommonshare,intheprior-yearperiod.
Forthefirstquarteroffiscal2023,totaldozenssoldincreased8.1%to275.3millionversus
254.6millionintheprior-yearquarter,inpartdrivenbystrongsalesvolumesinthespecialtyeggs
category.Conventionaleggvolumessolddecreased2.3%comparedwithfirstquarter2022,while
specialtyeggvolumessoldincreasedby35.1%.Thisincreaseindemandforspecialtyeggswas
positivelyaffectedbythehigherconventionaleggpricesascomparedtothesameperiodintheprior
year.DemandwasfurtherpositivelyaffectedbyCalifornia'sandMassachusetts'cage-freemandate
goingintoeffectJanuary1,2022,aswellasmoreretailersshiftingtosellingmorecage-free
products.
TheCompanyreportedoperatingincomeof$163.9millionforthefirstquarteroffiscal2023
comparedwithanoperatinglossof$39.7millionintheprior-yearquarter.TheCompanycontinued
tonavigatethroughatightlabormarketwithhigherwagesandincurredhigherdistributioncosts
duetotheincreaseinfuelpricescomparedtothefirstquarteroffiscal2022.Overall,farm
productioncostsperdozenincreased16.5%,or$0.148,comparedwiththeprior-yearperiod,
primarilytiedtosignificantlyhigherfeedcosts.Forthefirstquarteroffiscal2023,feedcostsper
dozenwere$0.667,a22.4%increasecomparedwiththefirstquarteroffiscal2022.Suppliesof
cornandsoybeanremainedtightrelativetodemandinfirstquarteroffiscal2023asevidencedby
alowstock-to-useratioforcorn,asresultofweather-relatedshortfallsinproductionandyields,
ongoingdisruptionsrelatedtotheCOVID-19globalpandemicandtheRussia-Ukrainewarandits
impactontheexportmarkets.BasislevelsforcornransignificantlyhigherintheCompany'sarea
ofoperationscomparedtoprioryearfirstfiscalquarter.Forfiscal2023,theCompanyexpects
Cal-Maine Foods Announces Record Sales for First Quarter 2023
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September 27, 2022
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continuedcornandsoybeanupwardpricingpressuresandfurthermarketvolatilitytoaffectfeed
costs.
Product Mix & Cage-Free Eggs
ProvidingcustomerswithafavorableproductmixisanimportantdifferentiatorforCal-
MaineFoods.SpecialtyeggsareanintegralpartoftheCompany'sgrowthstrategyandremaina
primaryfocusforfiscal2023.Cal-MaineFoodscontinuestomakesignificantinvestmentsin
productioncapacitytomeetthedemandforspecialtyeggs,includingcage-freeeggs,ascustomer
demandhasevolvedinlinewithstaterequirements.
AsignificantnumberofCal-MaineFoods'customershavepreviouslyannouncedgoalsto
offercage-freeeggsexclusivelyonorbefore2026,subjectinmostcasestoavailabilityofsupply,
affordabilityandcustomerdemand,amongothercontingencies.Someofthesecustomershave
recentlychangedthosegoalstooffer70%cage-freeeggsbytheendof2030.TheCompany's
customerstypicallydonotcommittolong-termpurchasesofspecificquantitiesortypesofeggs,
andasaresult,itisdifficulttoaccuratelypredictcustomerrequirementsforcage-freeeggs.The
Companycontinuestoengagewithitscustomersineffortstoachieveasmoothtransitiontoward
meetingtheirannouncedgoalsandneeds.Salesofcage-freeeggsrepresentedapproximately19.4%
ofshelleggrevenuesforthefirstquarteroffiscal2023.Cage-freedozenssoldincreased58%inthe
firstquarteroffiscal2023ascomparedtothefirstquarteroffiscal2022.
Cal-MaineFoodshasinvestedsignificantcapitalinrecentyearstoacquireandconstruct
cage-freefacilitiesandremainsfocusedonfutureexpansionprojectsthatwillincludecage-free
facilities.Atthesametime,theCompanyunderstandstheimportanceofcontinuingtoprovidemore
affordableconventionaleggsinordertoprovideitscustomerswithavarietyofeggchoicesandto
addresshungerinmorecommunities.
Table Egg Supply Outlook
LayerhennumbersreportedbytheUSDAasofSeptember21,2022,were305.3million,
whichrepresentsadecreaseof4.6%comparedwiththelayerheninventoryayearago.TheUSDA
alsoreportedthatthehatchfromApril2022throughAugust2022decreased0.5%ascompared
withtheprior-yearperiod.AsofSeptember1,2022,however,eggsinincubatorswereup9.0%year-
over-year,indicatingthatlayerflocksmayincreaseinthefuture.
Cal-MaineFoodscontinuestomonitorthecurrentoutbreakofhighlypathogenicavian
influenza("HPAI"),thatwasfirstdetectedincommercialflocksintheU.S.inFebruary2022and,
whichwasmostrecentlydetectedincommercialflocksintheU.S.inSeptember2022.According
totheU.S.CentersforDiseaseControlandPrevention,thesedetectionsdonotpresentan
immediatepublichealthconcern.TherehavebeennopositivetestsforHPAIatanyCal-Maine
Foods'ownedorcontractedproductionfacilityasofSeptember27,2022.TheUSDAdivisionof
AnimalandPlantHealthInspectionService("APHIS")reportedthatapproximately35.6million
commerciallayerhensand1.0millionpulletshavebeendepopulatedduetoHPAI.Accordingto
APHIS,themostrecentlyreportedoutbreaksofHPAIaffectingcommerciallayerhensandpullets
occurredSeptember21,2022,andJune9,2022,respectively.TheCompanybelievesthatHPAI
outbreakwillcontinuetohaveanimpactontheoverallsupplyofeggsthroughthebalanceofthis
Cal-Maine Foods Announces Record Sales for First Quarter 2023
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September 27, 2022
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calendaryearandpossiblybeyond.AccordingtoLEAPMarketAnalytics,layerheninventoryisnot
projectedtoexceedthe320millionmarkuntilOctoberof2023.
WhilenofarmisimmunefromHPAI,Cal-MaineFoodsbelievesithasimplementedand
continuestomaintainrobustbiosecurityprogramsacrossallitslocations.TheCompanyisalso
workingcloselywithfederal,stateandlocalgovernmentofficialsandfocusedindustrygroupsto
mitigatetheriskofthisandfutureoutbreaksandeffectivelymanagearesponse,ifneeded.
Dividend Payment
Forfirstquarter2023,Cal-MaineFoodswillpayacashdividendofapproximately$o.85per
sharetoholdersofitscommonandClassAcommonstock.PursuanttoCal-MaineFoods'variable
dividendpolicy,foreachquarterinwhichtheCompanyreportsnetincome,theCompanypaysa
cashdividendtoshareholdersinanamountequaltoone-thirdofsuchquarterlyincome.Following
aquarterforwhichtheCompanydoesnotreportnetincome,theCompanywillnotpayadividend
withrespecttothatquarterorforasubsequentprofitablequarteruntiltheCompanyisprofitable
onacumulativebasiscomputedfromthedateofthemostrecentquarterforwhichadividendwas
paid.Theamountpaidpersharewillvarybasedonthenumberofoutstandingsharesontherecord
date.ThedividendispayableonNovember10,2022,toholdersofrecordonOctober26,2022.
About Cal-Maine Foods
Cal-MaineFoods,Inc.isprimarilyengagedintheproduction,grading,packing,marketing
anddistributionoffreshshelleggs,includingconventional,cage-free,organic,brown,free-range,
pasture-raisedandnutritionallyenhancedeggs.TheCompany,whichisheadquarteredin
Ridgeland,Mississippi,isthelargestproduceranddistributoroffreshshelleggsintheUnited
Statesandsellsthemajorityofitsshelleggsinstatesacrossthesouthwestern,southeastern,mid-
westernandmid-AtlanticregionsoftheUnitedStates.
Forward Looking Statements
Statements contained inthis press releasethat are nothistorical facts areforward-looking
statementsasthattermisdefinedinthePrivateSecuritiesLitigationReformActof1995.The
forward-lookingstatementsarebasedonmanagement'scurrentintent,belief,expectations,
estimatesandprojectionsregardingourcompanyandourindustry.Thesestatementsarenot
guarantees of future performance andinvolve risks, uncertainties, assumptions andother factors
that aredifficult topredict andmay bebeyond ourcontrol. Thefactors thatcould causeactual
results todiffer materiallyfrom thoseprojected inthe forward-lookingstatements include,among
others, (i) the risk factors set forth inthe Company's SEC filings (including its AnnualReports on
Form 10-K, Quarterly Reports onForm 10-Q and Current Reportson Form 8-K), (ii)the risks and
hazardsinherentintheshelleggbusiness(includingdisease,pests,weatherconditionsand
potential forrecall), includingbutnot limitedto themost recentoutbreak ofhighly pathogenic
avian influenza affectingpoultry in theU.S., Canada andother countriesthat was firstdetected
in commercialflocksin theU.S. inFebruary 2022,(iii) changesin thedemand forand market
prices of shelleggs and feedcosts, (iv) ourability to predictand meet demandfor cage-free and
other specialty eggs, (v)risks, changes or obligationsthat could result fromour future acquisition
ofnewflocksorbusinessesandrisksorchangesthatmaycauseconditionstocompletinga
Cal-Maine Foods Announces Record Sales for First Quarter 2023
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September 27, 2022
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pendingacquisitionnottobemet,(vi)risksrelatingtotheevolvingCOVID-19pandemic,
including withoutlimitation increasedcosts, risinginflation andinterest rates,which generally
have been exacerbatedby Russia's invasionof Ukraine startingin February 2022,(vii) our ability
to retain existing customers, acquire new customers and grow ourproduct mix and (viii) adverse
results in pending litigation matters. SEC filings may be obtained from theSEC or the Company's
website
,
www.calmainefoods.com. Readers arecautioned notto placeundue relianceon forward-
lookingstatementsbecause,whilewebelievetheassumptionsonwhichtheforward-looking
statementsarebasedarereasonable,therecanbenoassurancethattheseforward-looking
statements will proveto be accurate.Further, the forward-lookingstatements included hereinare
only made as of the respective dates thereof,or if no date is stated, asof the date hereof. Except as
otherwise required by law,we disclaim any intentor obligation to publiclyupdate these forward-
looking statements, whether as a result of new information, future events or otherwise.
Cal-Maine Foods Announces Record Sales for First Quarter 2023
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September 27, 2022
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CAL-MAINE FOODS, INC. AND SUBSIDIARIES
FINANCIAL HIGHLIGHTS
(Unaudited)
(Inthousands,exceptpershareamounts)
SUMMARY STATEMENTS OF OPERATIONS
13 Weeks Ended
August 27, 2022
August 28, 2021
Netsales
$
658,344
$
324,986
Costofsales
440,854
318,341
Grossprofit
217,490
6,645
Selling,generalandadministrative
53,607
46,525
(Gain)lossondisposaloffixedassets
33
(213)
Operatingincome(loss)
163,850
(39,667)
Otherincome,net
1,630
5,803
Income(loss)beforeincometaxes
165,480
(33,864)
Incometaxexpense(benefit)
40,346
(15,838)
Netincome(loss)
125,134
(18,026)
Less:Lossattributabletononcontrollinginterest
(153)
-
Netincome(loss)attributabletoCal-MaineFoods,Inc.
$
125,287
$
(18,026)
Netincome(loss)percommonshare:
Basic
$
2.58
$
(0.37)
Diluted
$
2.57
$
(0.37)
Weightedaveragesharesoutstanding:
Basic
48,623
48,858
Diluted
48,811
48,858
Cal-Maine Foods Announces Record Sales for First Quarter 2023
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September 27, 2022
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CAL-MAINE FOODS, INC. AND SUBSIDIARIES
FINANCIAL HIGHLIGHTS
(Unaudited)
(In thousands)
SUMMARY BALANCE SHEETS
August 27, 2022
May 28, 2022
ASSETS
Cashandshort-terminvestments
$
281,805
$
174,513
Receivables,net
220,364
219,404
Inventories,net
265,754
263,316
Prepaidexpensesandothercurrentassets
10,965
4,286
Currentassets
778,888
661,519
Property,plantandequipment,net
688,656
677,796
Othernoncurrentassets
87,185
88,174
Totalassets
$
1,554,729
$
1,427,489
LIABILITIESANDSTOCKHOLDERS'EQUITY
Accountspayableandaccruedexpenses
$
188,689
$
148,018
Dividendspayable
41,742
36,656
Currentliabilities
230,431
184,674
Deferredincometaxesandotherliabilities
136,335
138,470
Stockholders'equity
1,187,963
1,104,345
Totalliabilitiesandstockholders'equity
$
1,554,729
$
1,427,489

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Cal-Maine Foods Inc. published this content on 27 September 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 27 September 2022 21:35:11 UTC.