EX-99.1 2 a09-33167_1ex99d1.htm EX-99.1

Exhibit 99.1

 

Atlanta, Georgia

November 10, 2009

 

Symbol:  CGL-A

 

PRESS RELEASE

FOR IMMEDIATE RELEASE

Cagle’s Inc. Announces Results for Second Quarter Ended October 3, 2009

 

Cagle’s Inc. reported net income of $ 0.7 million or $0.15 per share for the second quarter of fiscal year 2010 compared to a net loss of $5.5 million or $1.18 per share for the second quarter of fiscal 2009. For the first six months of fiscal 2010 net income was $2.0 million or $0.43 per share compared with a net loss of $8.5 million or $1.82 per share for the first six months of fiscal 2009.

 

Revenues for the second quarter were $ 87.6 million up 15.8 % and pounds sold increased 14.7% both influenced by a fourteen week period in 2010 versus a thirteen week period in 2009. For the six month period revenues were $165.6 million up 8.5%  and sales pounds increased 4.9% again influenced by the additional week in the first two quarters of fiscal 2010 as compared to the same period in fiscal 2009. Quoted market prices for the second quarter of fiscal 2010 versus the same period last year fluctuated as boneless breast increased 6%, breast tenders increased 22%, wings increased 49%, drums decreased 14%, leg quarters were 24% lower and whole birds without giblets were 6% less.

 

Cost of sales for the second quarter of fiscal 2010 increased 2.7% as compared with the same period last year, from $79.7 million to $81.8 million reflecting the previously mentioned additional week in the period and a 14.7% increase in pounds sold coupled with an 8.6% reduction in the cost of feed. For the first six months of 2010 cost of sales was $153.5 million down 2.4% from fiscal 2009.

 

Wet weather across the mid-west has delayed and possibly damaged what appeared to be a record crop in both corn and soybean meal causing feed prices to increase as we enter our third quarter. Poultry producers continue to exhibit restraint with egg sets 3% less than the same quarter of 2008 and 7% below the July - September period in 2007. Producers of pork, beef and turkey have been slower to contract resulting in an excess of protein on the world market as demand remains problematic.

 

Cagle’s Inc.

 

/s/ J. Douglas Cagle

 

 

 

J. Douglas Cagle

 

Chairman, Chief Executive Officer and President

 

 

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.

Condensed Consolidated Balance Sheets

(In Thousands)

 

 

 

October 3, 2009
(Unaudited)

 

March 28, 2009

 

ASSETS

 

 

 

 

 

 

 

 

 

 

 

Current Assets

 

$

44,304

 

$

42,798

 

 

 

 

 

 

 

Other Assets

 

9,898

 

11,571

 

 

 

 

 

 

 

Property, Plant, and Equipment (net)

 

35,415

 

36,783

 

 

 

 

 

 

 

TOTAL ASSETS

 

$

89,617

 

$

91,152

 

 

 

 

 

 

 

 

 

 

 

 

 

LIABILITIES & STOCKHOLDERS’ EQUITY

 

 

 

 

 

 

 

 

 

 

 

Current Maturities of Long-term Debt

 

$

2,601

 

$

2,488

 

Trade Accounts Payable

 

18,745

 

19,989

 

Other Current Liabilities

 

7,937

 

7,642

 

Total Current Liabilities

 

29,283

 

30,119

 

 

 

 

 

 

 

Long-Term Debt

 

25,850

 

29,049

 

 

 

 

 

 

 

Total Stockholders’ Equity

 

34,484

 

31,984

 

 

 

 

 

 

 

TOTAL LIABILITIES & STOCKHOLDERS’ EQUITY

 

$

89,617

 

$

91,152

 

 



 

Cagle’s, Inc.

Condensed Consolidated Statements of Operations

(Unaudited)

(In Thousands, except net income per share)

 

 

 

14 wks ended

 

13 wks ended

 

27 wks ended

 

26 wks ended

 

 

 

10/03/2009

 

09/27/2008

 

10/03/2009

 

09/27/2008

 

Net Sales

 

$

87,570

 

$

75,632

 

$

165,585

 

$

152,553

 

Costs and Expenses:

 

 

 

 

 

 

 

 

 

Cost of Sales

 

81,819

 

79,702

 

153,527

 

157,279

 

Selling and Delivery

 

2,275

 

2,355

 

4,472

 

4,687

 

General and Administrative

 

1,985

 

1,532

 

3,650

 

2,724

 

Total Costs and Expenses

 

86,079

 

83,589

 

161,649

 

164,690

 

 

 

 

 

 

 

 

 

 

 

Operating Income (Loss)

 

1,491

 

(7,957

)

3,936

 

(12,137

)

 

 

 

 

 

 

 

 

 

 

Other Income (Expense):

 

 

 

 

 

 

 

 

 

Interest Expense

 

(415

)

(606

)

(857

)

(1,095

)

Other Income (Expense), Net

 

3

 

(4

)

5

 

(16

)

Total Other Income (Expense), Net

 

(412

)

(610

)

(852

)

(1,111

)

 

 

 

 

 

 

 

 

 

 

Income (Loss) Before Income Taxes

 

1,079

 

(8,567

)

3,084

 

(13,248

)

 

 

 

 

 

 

 

 

 

 

Income Tax Expense (Benefit)

 

388

 

(3,084

)

1,110

 

(4,769

)

 

 

 

 

 

 

 

 

 

 

Net Income (Loss)

 

$

691

 

$

(5,483

)

$

1,974

 

$

(8,479

)

 

 

 

 

 

 

 

 

 

 

Weighted-Average Common Shares Outstanding

 

4,615

 

4,662

 

4,617

 

4,662

 

 

 

 

 

 

 

 

 

 

 

Net Income (Loss) Per Common Share

 

$

0.15

 

$

(1.18

)

$

0.43

 

$

(1.82

)