ATLANTA, Aug. 16, 2011 /PRNewswire/ -- Cagle's, Inc. (NYSE Amex: [ CGL.A ]) reported a net (loss) of $(5.7) million or $(1.24) per share for the quarter ended July 2, 2011 compared to net income of $3.5 million or $0.75 per share for the quarter ended July 3, 2010.

Net sales for the first quarter were $81.9 million, up 4.2% from $78.6 million, reflecting an increase in pounds sold of 14.9% and a decrease in sales price for poultry of $0.059 per pound as compared to the same period of fiscal 2011. Quoted market price changes for products for the first quarter of fiscal 2012 versus the same period last year were: leg quarters increased 27.4%, boneless breast decreased 17.6%, breast tenders decreased 11.8%, wing markets decreased 40.3%, and whole birds without giblets were unchanged.

Cost of sales for the first quarter of fiscal 2012 increased 27.1% as compared with the same period last year, from $68.2 million to $86.7 million. Feed ingredient prices for broilers processed in the first quarter of fiscal 2012, which represented 46% of the total cost of sales, increased 68.3% or $16.3 million as compared to the first quarter of fiscal 2011.

Cagle's and the industry's profitability continue to be challenged by high feed cost accentuated by broiler markets pressured by over production. Effective the end of August Cagle's will have executed a further cut back in production at its Pine Mountain Valley plant that will result in the company processing 22% less head than capacity. Towards the end of July our industry had begun to react in similar fashion with egg sets 6% less than the same period in 2010. These industry cut backs should have a positive effect on markets and final margins in the coming months.

Cagle's, Inc.

/s/ J. Douglas Cagle
J. Douglas Cagle
Chairman, Chief Executive Officer
and President

This press release contains forward-looking statements based on management's current views and assumptions. Actual results and events may differ. For a discussion of these matters, please refer to the "Forward-Looking Statements" in Item 7 of the Company's 2011 SEC Form 10-K Annual Report and please refer to the cautionary statement found in Management's Discussion and Analysis of Financial Condition and Results of Operations in Part I, Item 2 of the Quarterly Report on SEC Form 10-Q for the Company's first quarter ended July 2, 2011.


Cagle's, Inc.
Condensed Consolidated Statements of Operations
(In Thousands, except net income per share)


	13 Weeks Ended	13 Weeks Ended
	July 2, 2011	July 3, 2010
Net Sales	$ 81,873	$ 78,571
Costs and Expenses:
Cost of Sales	86,683	68,215
Selling and Delivery	2,220	2,447
General and Administrative	1,507	2,098
Total Costs and Expenses	90,410	72,760

Operating Income (Loss)	(8,537)	5,811

Other Income (Expense):
Interest Expense	(420)	(381)
Other Income (Expense), Net	(4)	4
Total Other Expense, Net	(424)	(377)

Income (Loss) Before Income Taxes	(8,961)	5,434

Income Tax Expense (Benefit)	(3,226)	1,956

Net Income (Loss)	$ (5,735)	$ 3,478


Weighted-Average Common Shares Outstanding	4,616	4,616
Net Income (Loss) Per Common Share	$ (1.24)	$ 0.75


Cagle's, Inc.
Condensed Consolidated Balance Sheets
(In Thousands)

	July 2, 2011		April 2, 2011
ASSETS

Cash	$	950	$	1,370
Trade Accounts Receivable, net		15,100		15,882
Inventories		33,996		31,990
Other Current Assets		562		307
Total Current Assets		50,608		49,549

Property, Plant and Equipment (net)		32,245		33,245

Other Assets		9,172		7,519

TOTAL ASSETS	$	92,025	$	90,313



LIABILITIES & STOCKHOLDERS' EQUITY

Current Maturities of Long-term Debt	$	10,401	$	9,127
Accounts Payable		26,917		22,346
Other Current Liabilities		5,672		7,791
Total Current Liabilities		42,990		39,264

Long-Term Debt		20,001		16,280

Total Stockholders' Equity		29,034		34,769

TOTAL LIABILITIES & STOCKHOLDERS' EQUITY	$	92,025	$	90,313

SOURCE Cagle's, Inc.

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Cagle's, Inc. Announces Results for the Quarter Ended July 2, 2011

Cagle's, Inc. Announces Results for the Quarter Ended July 2, 2011