EX-99.1 4 sks172b.htm PRESS RELEASE
Contact: Fred Adams, Jr.
Chairman and CEO
(601) 948-6813

CAL-MAINE FOODS, INC. REPORTS FOURTH QUARTER AND FISCAL 2005 RESULTS

JACKSON, Miss. (August 1, 2005) – Cal-Maine Foods, Inc. (Nasdaq/NM:CALM) today announced financial results for the fourth quarter and fiscal year ended May 28, 2005. For the fourth quarter of fiscal 2005, net sales were $81.5 million compared with net sales of $142.4 million for the fourth quarter a year ago. The Company reported a net loss of $6.6 million, or $0.28 per diluted share, compared with net income of $17.2 million, or $0.70 per diluted share, for the fourth quarter of fiscal 2004.

        For the fiscal year 2005, net sales were $375.3 million compared with net sales of $572.3 million for fiscal 2004. The Company reported a net loss of $10.4 million, or $0.43 per diluted share, compared with net income of $66.4 million, or $2.73 per diluted share, in fiscal 2004.

        Fred Adams, Jr., chairman and chief executive officer of Cal-Maine Foods, Inc., stated, “Beginning in the summer of 2003, the egg industry experienced very strong demand. This demand was related to the high-protein, low-carb diets that were very popular at the time. This strong demand, combined with moderate supply, resulted in record high egg prices for approximately 15 months. However, In the early fall of 2004, this demand trend related to the popular diets faded dramatically. In the meantime, the egg industry had geared up to produce more eggs to meet the strong demand. As a result, during the past nine to 12 months, our industry has experienced an oversupply of eggs resulting in lower prices and losses for the egg industry.

        “Beginning in March 2005, the egg industry has taken action to reduce the size of the laying flocks and the supply of eggs,” added Adams. “At midsummer, U.S.D.A. statistics indicated a reduced flock size that is now more in line with the current demand for eggs. As a result, egg prices have recovered nicely over the last six or seven weeks. We believe the egg industry will continue to adjust supply to be more in line with demand, which should allow the industry to return to profitability.

        “Feed prices in general have been favorable this year compared with the prior year. However, we have witnessed wide swings in corn and soybean prices because of dry conditions in the Midwest and widely varying forecasts. Overall, Cal-Maine is operating efficiently, and we hope to return to profitability in the year ahead,” Adams concluded.

        Cal-Maine Foods, Inc. is primarily engaged in the production, grading, packing and sale of fresh shell eggs. The Company, which is headquartered in Jackson, Mississippi, currently is the largest producer and distributor of fresh shell eggs in the United States and sells the majority of its shell eggs in approximately 28 states across the southwestern, southeastern, mid-western and mid-Atlantic regions of the United States.

        Statements contained in this press release that are not historical facts are forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are subject to risks and uncertainties (contained in the Company’s SEC filings) that could cause actual results to differ materially from those projected. SEC filings may be obtained from the SEC or by contacting the Company.

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CAL-MAINE FOODS, INC POST OFFICE BOX 2960             • JACKSON, MISSISSIPPI 39207 
  PHONE 601-948-6813 FAX 601-969-0905 

CALM Reports Fiscal 2005 Results
Page 2
August 1, 2005

CAL-MAINE FOODS, INC. AND SUBSIDIARIES
FINANCIAL HIGHLIGHTS
(Unaudited)
In thousands, except per share amounts)

13 Weeks Ended
52 Weeks Ended
May 28,
2005

May 29,
2004

May 28,
2005

May 29,
2004

Net sales     $ 81,477   $ 142,352   $ 375,266   $ 572,331  
Gross profit    2,651    40,389    35,433    175,627  
Operating income (loss)    (8,575 )  28,857    (12,325 )  106,322  
Income (loss) before income taxes    (9,730 )  29,236    (15,408 )  106,242  
                      
Net income (loss)   $ (6,550 ) $ 17,194   $ (10,358 ) $ 66,442  
                      
Net income (loss) per common share:                  
      Basic   $ (0.28 ) $ 0.71   $ (0.43 ) $ 2.78  
      Diluted   $ (0.28 ) $ 0.70   $ (0.43 ) $ 2.73  
                      
Weighted average shares outstanding:                  
      Basic    23,636    24,214    23,834    23,874  
      Diluted    23,636    24,527    23,834    24,342  

Since August 5, 2004, the Company has repurchased 942,503 shares of its common stock pursuant to a stock repurchase plan authorizing the repurchase of up to 2,000,000 shares.

SUMMARY BALANCE SHEET
(Unaudited)
(In thousands, except per share amounts)

May 28,
2005

May 29,
2004

ASSETS      
Cash and cash equivalents  $  55,605   $  72,981  
Receivables  16,739   22,360  
Inventories  45,628   49,896  
Other  7,984   6,702  
   
 
      Current assets  125,956   151,939  
         
Fixed assets (net)  127,388   132,058  
Other assets  16,190   17,562  
   
 
      Total assets  $269,534   $301,559  
   
 
         
LIABILITIES AND SHAREHOLDERS' EQUITY     
Current portion of long-term debt  $  10,149   $    9,597  
Accounts payable  20,034   21,507  
Other current liabilities  13,086   17,856  
Current deferred income taxes  9,100   10,030  
   
 
      Current liabilities  52,369   58,990  
         
Deferred taxes and liabilities  22,465   21,970  
Long-term debt  72,845   80,434  
Shareholders' equity  121,855   140,165  
   
 
      Total liabilities and shareholders' equity  $269,534   $301,559