EX-99.1 2 a10-3320_1ex99d1.htm EX-99.1

Exhibit 99.1

 

Atlanta, Georgia

February 9, 2010

 

Symbol:  CGL-A

 

PRESS RELEASE

FOR IMMEDIATE RELEASE

Cagle’s, Inc. Announces Results for Third Quarter Ended January 2, 2010

 

Cagle’s, Inc. (CGL-A) reported a net loss of $0.3 million or $0.08 per share for the third quarter of fiscal year 2010 compared to a net loss of $2.5 million or $0.54 per share for the third quarter of fiscal 2009.  For the first nine months of fiscal 2010 net income was $1.6 million or $0.35 per share compared with a net loss of $11.0 million or $2.36 per share for the first nine months of fiscal 2009.

 

Revenues for the third quarter were $70.4 million down 4.2 % and pounds sold decreased 2.0% both due to a thirteen week period in 2010 versus a fourteen week period in 2009.  For the nine month period revenues were $236.0 million up 4.4% and sales pounds increased 2.7% when compared to the same period in the prior year. Quoted market prices for the third quarter of fiscal 2010 versus the same period last year fluctuated as boneless breast increased 9%, breast tenders increased 15%, wings increased 36%, drums decreased 2%, leg quarters were 6% lower and whole birds without giblets were 12% less.

 

Cost of sales for the third quarter of fiscal 2010 decreased 8.2% as compared with the same period last year, from $72.9 million to $66.9 million due to the thirteen week period versus the prior year fourteen week period and a 2.0% decrease in pounds sold coupled with a 7.1% reduction in the cost of feed. For the first nine months of 2010 cost of sales was $220.5 million down 4.2% from fiscal 2009.

 

Protein suppliers continue to exercise restraint evidenced by poultry egg sets at 2003 levels, cattle herds at 1959 levels and pork breeding inventory down from 2008 levels by three percent. Farmers in this country have provided our industry with record corn production of 13.151 billion bushels and record soybean production of 3.361 billion bushels in addition to what appears to be record South American soybean crops. The protein restraints coupled with excellent feed stock production should be supportive of margins for the remainder of fiscal year 2010.

 

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)

 

 

 

January 2, 2010

 

 

 

 

 

(Unaudited)

 

March 28, 2009

 

 

 

 

 

 

 

ASSETS

 

 

 

 

 

 

 

 

 

 

 

Current Assets

 

$

39,818

 

$

42,798

 

 

 

 

 

 

 

Other Assets

 

9,959

 

11,571

 

 

 

 

 

 

 

Property, Plant, and Equipment (net)

 

35,041

 

36,783

 

 

 

 

 

 

 

TOTAL ASSETS

 

$

84,818

 

$

91,152

 

 

 

 

 

 

 

LIABILITIES & STOCKHOLDERS’ EQUITY

 

 

 

 

 

 

 

 

 

 

 

Current Maturities of Long-term Debt

 

$

2,643

 

$

2,488

 

Trade Accounts Payable

 

15,735

 

19,989

 

Other Current Liabilities

 

7,466

 

7,642

 

Total Current Liabilities

 

25,844

 

30,119

 

 

 

 

 

 

 

Long-Term Debt

 

24,547

 

29,049

 

 

 

 

 

 

 

Total Stockholders’ Equity

 

34,427

 

31,984

 

 

 

 

 

 

 

TOTAL LIABILITIES & STOCKHOLDERS’ EQUITY

 

$

84,818

 

$

91,152

 

 



 

Cagle’s, Inc.

Condensed Consolidated Statements of Operations

(Unaudited)

(In Thousands, except net income per share)

 

 

 

13 wks ended

 

14 wks ended

 

40 wks ended

 

40 wks ended

 

 

 

01/02/2010

 

01/03/2009

 

01/02/2010

 

01/03/2009

 

 

 

 

 

 

 

 

 

 

 

Net Sales

 

$

70,411

 

$

73,526

 

$

235,996

 

$

226,078

 

Costs and Expenses:

 

 

 

 

 

 

 

 

 

Cost of Sales

 

66,943

 

72,905

 

220,470

 

230,184

 

Selling and Delivery

 

2,124

 

2,138

 

6,596

 

6,825

 

General and Administrative

 

1,498

 

1,737

 

5,148

 

4,460

 

Total Costs and Expenses

 

70,565

 

76,780

 

232,214

 

241,469

 

 

 

 

 

 

 

 

 

 

 

Operating Income (Loss)

 

(154

)

(3,254

)

3,782

 

(15,391

)

 

 

 

 

 

 

 

 

 

 

Other Income (Expense):

 

 

 

 

 

 

 

 

 

Interest Expense

 

(393

)

(593

)

(1,250

)

(1,688

)

Other Income (Expense), Net

 

9

 

(2

)

14

 

(18

)

Total Other Income (Expense), Net

 

(384

)

(595

)

(1,236

)

(1,706

)

 

 

 

 

 

 

 

 

 

 

Income (Loss) Before Income Taxes

 

(538

)

(3,849

)

2,546

 

(17,097

)

 

 

 

 

 

 

 

 

 

 

Income Tax Expense (Benefit)

 

(193

)

(1,329

)

917

 

(6,098

)

 

 

 

 

 

 

 

 

 

 

Net Income (Loss)

 

$

(345

)

$

(2,520

)

$

1,629

 

$

(10,999

)

 

 

 

 

 

 

 

 

 

 

Weighted-Average Common Shares Outstanding

 

4,615

 

4,658

 

4,616

 

4,658

 

 

 

 

 

 

 

 

 

 

 

Net Income (Loss) Per Common Share

 

$

(0.08

)

$

(0.54

)

$

0.35

 

$

(2.36

)