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Cal-Maine Foods Reports First Quarter Fiscal 2011 Results

^{Published on 2010-09-27 04:15:37 - Market Wire}
 

JACKSON, Miss.--([ BUSINESS WIRE ])--Cal-Maine Foods, Inc. (NASDAQ: CALM) today announced resultsfor the first quarter of fiscal 2011 ended August 28, 2010.

"However, corn prices have risenrecently and will likely remain volatile in the year ahead."

For the first quarter of fiscal 2011, net sales were $190.4 million, compared with net sales of $187.7million for the first quarter of fiscal 2010. The Company reported net income of $4.8million, or $0.20per basic and diluted share, for the first quarter of fiscal 2011 compared witha net loss of $3.8million, or$0.16 per basic and diluted share, for the year-earlier period. The financial results for the first quarter of fiscal 2011 include a business interruption insurance gain recognition of approximately $2.6million, net of income taxes, relatedto fire damage sustained at the Companya™s Farwell, Texas, facility on July9,2009.

Fred Adams, Jr., chairman and chief executive officer of Cal-Maine Foods, Inc., stated, aWe are pleased with our financial and operating results for the first quarter, marking a solid start to fiscal 2011 forCal-Maine Foods. Our improved sales were primarily driven by increased consumer demand for our value-added specialty eggs, which carry higher retail sales prices. Overall, we experienced a modest improvement in both volume and average selling prices compared with the first quarter of fiscal 2010. Our retail business has remained very steady, while our food service sales have been affected by reduced restaurant traffic, as consumers are not dining out as frequently.

aThe recent nationwide egg recall had minimal effect on Cal-Mainea™s results this quarter. While egg prices initially moved higher in late August, prices have since dropped back below levels prior to the recall. Consumer demand for eggs has also dropped off since the recall; however, it is still too soon to predict thelong-term effect on demand trends.

aCal-Mainea™s operations have continued to run efficiently and we benefitted from lower feed costs inthe first quarter of fiscal 2011 compared with a year ago,a added Adams. aHowever, corn prices have risenrecently and will likely remain volatile in the year ahead.a

For the first quarter of fiscal 2011, Cal-Maine will pay a cash dividend of approximately $0.067 pershare to holders of its common and Class A common stock. The amount paid could vary slightly based ontheamount of outstanding shares on the record date. The dividend is payable November11,2010, to shareholdersof record on October 27, 2010.

Selected operating statistics for the first quarter of fiscal 2011 compared with the prior year period areshown below:

Cal-Maine Foods, Inc. is primarily engaged in the production, grading, packing and sale of fresh shelleggs. The Company, which is headquartered in Jackson, Mississippi, currently is thelargest producerand distributor of fresh shell eggs in the United States and sells the majority of itsshell eggs in approximately 29states across the southwestern, southeastern, mid-western and mid-Atlantic regions of theUnited States.

Statements contained in this press release that are not historical facts are forward-looking statementsas that term is defined in the Private Securities Litigation Reform Act of 1995.Such forward-looking statements are subject to risks and uncertainties (including those contained in the Companya™sSECfilings as well as other unknown or unpredictable factors) that could cause actual resultstodiffer materially from those projected.SEC filings may be obtained from the SEC or the Companya™swebsite, [ www.calmainefoods.com ].You are cautioned not to place undue reliance on the forward-looking statements.Further, the forward-lookingstatements included herein are only made as of therespective datesthereof, or ifno date is stated, as of thedate hereof.Except as otherwise required by law, we undertakeno obligation toupdate publicly any forward-looking statement for any reason, even if newinformation becomes available orother events occur in the future that make it clear that any expected resultsexpressed or implied by the forward-looking statementswill not be realized.