Cal-Maine Foods Q1 Profit More Than Triples On Higher Volumes, Prices - Update

(RTTNews) - Cal-Maine Foods Inc. (CALM), a producer and marketer of shell eggs, reported Monday that its first-quarter profit more than tripled from last year, as net sales were boosted by higher volumes and average selling prices.

Dolph Baker, chairman, president and chief executive officer, said, "We are pleased with our financial and operating performance for the first quarter, marking a strong start to fiscal 2015. …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."

Overall, the company believes it has the right growth strategy in place and look forward to the opportunities ahead for the company in fiscal 2015.

The company further said that 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, the company added.

For the first quarter, net income increased significantly to $27.66 million or $1.14 per share, from $8.76 million or $0.36 per share in the same period last year.

On average, two analysts polled by Thomson Reuters expected the company to report earnings of $1.17 per share for the quarter. Analysts' estimates typically exclude special items.

Operating income soared to $41.16 million from last year's $11.07 million, reflecting lower feed costs and the firm's focused efforts throughout operations to be an efficient, low-cost producer.

Quarterly net sales were $356.94 million, an increase of 12 percent from net sales of $319.53 million last year.

The company attributed the growth in sales to higher volumes and higher average selling prices. Consumer demand for eggs has been very favorable and it experienced continued strong demand from all the major market segments including retail, egg product and exports.

Dozen Eggs Sold grew to 251.68 million from last year's 242.55 million. Dozen Eggs Produced increased to 192.22 million from 179.73 million a year ago. Net average selling price was $1.354 per dozen, compared to $1.253 per dozen a year earlier.

Sales of specialty eggs have continued to trend higher and accounted for 18.8 percent of total number of shell eggs sold and 26.8 percent of our shell egg sales revenue.

For the first quarter, Cal-Maine Foods will pay a cash dividend of approximately $0.381 per share to holders of its common and Class A common stock. The dividend is payable November 13, to shareholders of record on October 29.

Cal-Maine shares closed Friday's trading at $85.47, down 1.48 percent.