EX-99 2 pr3rd2009.htm EXHIBIT 99-PRESS RELEASE 01-03-09 Atlanta, Georgia

Atlanta, Georgia

February 10, 2009


PRESS RELEASE

FOR IMMEDIATE RELEASE

Cagle's Inc. Announces Results for Third Quarter Ended January 3, 2009

 


Cagle’s Inc. reported a net loss of $2.5 million or $.54 per diluted share for the third quarter of fiscal year 2009 compared with a loss of $1.8 million or $.38 per diluted share for the third quarter of fiscal 2008.  The first nine months of fiscal 2009 resulted in a net loss of $11.0 million or $2.36 per diluted share as compared with a net income of $1.1 million or $.24 per diluted share for the same period of fiscal 2008.


Revenues for the third quarter were $73.5 million reflecting a 9.9% increase when compared to the third quarter of fiscal 2008 with poultry pounds sold for the third quarter decreasing 1.4% and the price increasing $.096 per pound sold. For the nine month period revenues were $226 million up 5.2% with sales pounds up 5.1% and the price increasing $.023 per pound sold as compared to fiscal 2008. Quoted market prices for the third quarter versus the same period last year reflect a reduction in boneless breast (- 15.1%), breast tenders (-2.3%), and leg quarters (-12.3%) with wing prices holding steady. Quoted markets for the nine months ended versus the same period in 2008 show reductions in boneless breast (-16.1%), tenders (-15.6%) and wings (-18.1%) with leg quarters stable.

 

Cost of sales for the third quarter of fiscal 2009 increased 10.8% as compared with the same period last year, from $65.8 million to $72.9 million. For the first nine months of 2009 cost of sales was $230.1 million up 14.5% from fiscal 2008. Feed ingredient cost per ton for broilers processed in the third quarter of 2009 increased 22% as compared to the third quarter of 2008 and increased 39% per ton for the nine months when compared to the same period last year. Feed cost represented approximately 43% of total cost of sales.


While feed cost increased from prior year levels, Cagle’s third quarter 2009 feed cost decreased 18% as compared to the second quarter 2009. As we move into the fourth quarter the trend continues to reflect the decreasing cost of feed. Our industry and Cagle’s continue to attempt to balance the supply and demand for our products, reflected in reduced egg sets of 6.6% (Oct – Dec 2008 NASS Report), with the anticipated result of improved protein markets. Improved markets coupled with the aforementioned reduced feed cost are expected to return the company to profitability in 2009.



Cagle's Inc.


/s/ J. Douglas Cagle


J. Douglas Cagle

Chairman, CEO









Cagle's Inc.

Condensed Consolidated Balance Sheet

(In Thousands)

 

 

 

 

 

 

 

ASSETS                                                       

 

January 3, 2009

 

December 27, 2007

 

 

 

 

 

 

 

Current Assets

 

$

                              43,089

 

$

                            46,420

 

 

 

 

 

 

 

Other Assets

 

 

                                9,330

 

 

                              6,294

 

 

 

 

 

 

 

Property, Plant, and Equipment (net)

 

 

                              37,507

 

 

                            39,260

 

 

 

 

 

 

 

TOTAL ASSETS

 

$

                              89,926

 

$

                            91,974

 

 

 

 

 

 

 

 

 

 

 

 

 

 

LIABILITIES & STOCKHOLDER'S EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

 

Current Maturities of Long-term Debt

 

$

                                2,440

 

$

                              2,269

Trade Accounts Payable

 

 

                              20,259

 

 

                            16,025

Other Current Liabilities

 

 

                                5,359

 

 

                              7,929

Total Current Liabilities

 

 

                              28,058

 

 

                            26,223

 

 

 

 

 

 

 

Long-Term Debt

 

 

                              29,640

 

 

                            20,924

 

 

 

 

 

 

 

Total Stockholders Equity

 

 

                              32,228

 

 

                            44,827

 

 

 

 

 

 

 

TOTAL LIABILITIES & STOCKHOLDERS EQUITY

 

$

                              89,926

 

$

                            91,974



















Cagle's, Inc. & Subsidiary

Consolidated Statements of Operations

(In Thousands, except per share data)

 

 

 

 

 

 

 

 

 

 

 

 

 

14 weeks ended

 

13 weeks ended

 

40 weeks ended

 

39 weeks ended

 

January 3

 

December 27

 

January 3

 

December 27

 

2009

 

2007

 

2009

 

2007

Net Sales

$

73,526

 

$

66,920

 

$

226,078

 

$

214,849

Costs and Expenses:

 

 

 

 

 

 

 

 

 

 

 

Cost of Sales

 

72,905

 

 

65,774

 

 

230,184

 

 

200,961

Selling & Delivery and General & Administrative

 

2,138

 

 

2,169

 

 

6,825

 

 

6,574

General and Administrative

 

1,825

 

 

1,462

 

 

4,548

 

 

4,557

Total Costs and Expenses

 

76,868

 

 

69,405

 

 

241,557

 

 

212,092

 

 

 

 

 

 

 

 

 

 

 

 

Operating Income (Loss)

 

(3,342)

 

 

(2,485)

 

 

(15,479)

 

 

2,757

 

 

 

 

 

 

 

 

 

 

 

 

Other Income(Expense):

 

 

 

 

 

 

 

 

 

 

 

Interest Expense

 

(593)

 

 

(346)

 

 

(1,688)

 

 

(1,069)

Other Income, Net

 

(2)

 

 

41

 

 

(18)

 

 

122

Total Other Income (Expense),net

 

(595)

 

 

(305)

 

 

(1,706)

 

 

(947)

 

 

 

 

 

 

 

 

 

 

 

 

Income (Loss) Before Income Taxes

 

(3,937)

 

 

(2,790)

 

 

(17,185)

 

 

1,810

 

 

 

 

 

 

 

 

 

 

 

 

Income Tax Provision (Benefit)

 

(1,417)

 

 

(1,021)

 

 

(6,186)

 

 

668

Net Income (Loss)

$

(2,520)

 

$

(1,769)

 

$

(10,999)

 

$

1,142

Net Income (Loss) Per Common Share

$

(0.54)

 

$

(0.38)

 

$

(2.36)

 

$

0.24