EX-99 2 pr092006.htm PRESS RELEASE 11/103/05 <I>Atlanta, Georgia

Atlanta, Georgia

November 3, 2005


PRESS RELEASE

FOR IMMEDIATE RELEASE


Cagle's Inc. Reports Second Quarter Earnings

Of $1.7 million, or $.35 Per Share


Cagle's Inc. today reported the following results for its second quarter ended October 01, 2005.



Net income for the second quarter of fiscal 2006 was $1.7 million or $.35 per diluted share as compared with a net income of $2.7 million or $.57 per diluted share for the second quarter of fiscal 2005. For the first six months of fiscal 2006 net income was $3.1 million or $.65 per diluted share as compared with a net income of $8.9 million or $1.87 per diluted share for the same period of fiscal 2005.


Revenues for the second quarter of our current fiscal year were 4% lower than the second quarter of fiscal 2005 and 6% lower for the first six months of fiscal 2006. Pounds marketed were up 17% for both the three and six month periods this year versus last as our plants are now running at capacity. Quoted poultry markets continue to display weakness with average pricing down 21% for the first six months of this year. Cost of sales was down 8% for the second quarter and down 7% for the first six months of fiscal 2006 versus comparable periods of fiscal 2005.  Feed prices for the first six months of fiscal 2006 were down by over 20% as compared to the same period last year and are expected to remain stable for the remainder of our current fiscal year.   


Cagle's Inc.


/s/ J. Douglas Cagle


J. Douglas Cagle

Chairman, CEO







Forward-Looking Statements:

Statements contained in this press release that state the intentions, hopes, beliefs, anticipations, expectations or predictions of the future of Cagle's Inc. and its management are forward looking statements. It is important to note that the actual results could differ materially from those projected. Factors that could cause actual results to differ materially from those project in such forward-looking statements include: additional outbreaks of avian influenza or other diseases affecting the production performance and/or marketability of the Company’s poultry products; matters affecting the poultry industry in general, including fluctuations in the commodity prices of feed ingredients and chicken; contamination of our products leading to product liability claims and recalls; exposures to risks related to property damage and injuries to persons for which insurance is limited and potentially inadequate; management of our cash resources, particularly in light of our substantial leverage; trade barriers; changes in laws or regulations affecting our operations as well as competitive factors and pricing pressures; and the impact of uncertainties of litigations as well as other risk factors.





Cagle's Inc.

Consolidated Statements of Income (in thousands except per share amounts)





         
  

Three Months Ended

 

Six Months Ended

  

October 1, 2005

 

October 2, 2004

 

October 1, 2005

 

October 2, 2004

Net Sales

   $    61,297

 

$    64,021

 

$     122,891

 

$   131,173

Cost and Expenses:

       
 

Cost of Sales

        55,618

 

57,642

 

           112,600

 

112,697

 

Selling & Delivery, General & Admin.

3,512

 

3,256

 

6,751

 

6,177

Total Cost and Expenses

        59,130

 

60,898

 

119,351

 

118,874

        

Operating Profit (Loss)

          2,167

 

3,123

 

            3,540

 

12,299

Other Income (Expense):

       
 

Interest Expense

           (597)

 

   (649)

 

   (1,222)

 

(1,350)

 

Other Income (Expense), net

  94

 

658

 

    619

 

671

Total Other Income(Expense),net

           (503)

 

9

 

(603)

 

(679)

         

Equity in Earnings of Unconsolidated Affiliates

   926

 

1,116

 

1,901

 

2,232

Profit (Loss) before Income Taxes

           2,590

 

4,248

 

4,838

 

13,852

Income Tax Expense (Benefit)

    932

 

1,529

 

1,741

 

4,971

Net Profit (Loss)

$     1,658

 

$    2,719

 

$     3,097

 

$      8,881

Net Profit (Loss) per Share

$      0.35

 

$      .57

 

$       .65

 

$       1.87



No        






















Cagle's Inc.

Condensed Consolidated Balance Sheet (in thousands)



ASSETS

 

October 1, 2005

 

April 3, 2004

     

Current Assets

 

 $           34,819

 

 $          32,687

     

Investments in Affiliates

 

              7,364

 

             6,105

     

Other Assets

 

              8,244

 

            11,000

     

Property, Plant, and Equipment (net)

 

             45,233

 

            44,500

     

TOTAL ASSETS

 

 $           95,660

 

 $          94,292

     
     

LIABILITIES & STOCKHOLDER'S EQUITY

    
     

Current Maturities of Long-term Debt

 

 $            3,476

 

 $           3,476

Trade Accounts Payable

 

             12,504

 

            11,563

Other Current Liabilities

 

              5,961

 

             6,438

Total Current Liabilities

 

             21,941

 

            21,477

     

Long-Term Debt

 

             24,817

 

            26,534

     

Other Non-current Liabilities

 

                0

 

               475

     

Total Stockholder's Equity

 

             48,902

 

            45,806

     

TOTAL LIABILITIES & STOCKHOLDER'S EQUITY

 

 $           95,660

 

 $          94,292