Exhibit 99.1
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Contacts:
Sherman Miller, President and CEO
Max P. Bowman, Vice President and CFO
(601) 948-6813
CAL-MAINE FOODS REPORTS RESULTS
FOR THIRD QUARTER FISCAL 2024
RIDGELAND, Miss. (April 2, 2024) - Cal-Maine Foods, Inc. (NASDAQ: CALM) (“Cal-Maine Foods” or the
“Company”), the largest producer and distributor of fresh shell eggs in the United States, today reported
results for the third quarter of fiscal 2024 (thirteen weeks) ended March 2, 2024.
Third Quarter Fiscal Year 2024 Highlights
●
Quarterly net sales of $703.1 million
●
Quarterly net income of $146.4 million, or $3.01 per basic common share
●
Record quarterly sales volume of total dozens sold and specialty dozens sold
●
Cash dividend of $48.9 million, or $1.00 per share, pursuant to the Company’s established
dividend policy
Overview
Sherman Miller, president and chief executive officer of Cal-Maine Foods, stated, “We are very
pleased with Cal-Maine Foods’ strong financial and operating performance for the third quarter of fiscal
2024. Our sales reflect lower average selling prices compared to a year ago, when the shell egg industry
experienced record high market prices due primarily to the impact of highly pathogenic avian influenza
(“HPAI”) and other market factors resulting in a significant reduction in supply. While the more recent
outbreaks of HPAI have also affected supply and caused market prices to move higher, the overall market
impact has not been as severe. Fueled by strong demand, our total sales volumes (dozens sold) for the
quarter were higher than the third quarter of fiscal 2023 and reached a Company record. Consumer
demand for eggs has been strong, especially during the winter holiday season. We have worked hard to
meet this demand with a favorable product mix of conventional and specialty eggs, as well as enhanced egg
products offerings. Our managers and employees have continued to efficiently run our operations in a
challenging environment due to the impact of and ongoing threat of HPAI. Despite the distractions, we
have continued to meet the needs of our valued customers.
“In addition to our strong organic growth opportunities, we are pleased with the operational
performance and successful integration of our acquisition of assets of Fassio Egg Farms, Inc., located in
Erda, Utah outside of Salt Lake City, acquired in our second fiscal quarter. Following the end of the third
quarter, we completed the acquisition from Tyson Foods, Inc. (NYSE:TSN) of a recently closed broiler
processing plant, hatchery and feed mill located in Dexter, Missouri. We intend to repurpose the acquired
assets for use in egg and egg products production. We remain focused on identifying other acquisition
opportunities that complement our operating model and further extend our market reach.”
Cal-Maine Foods Reports Third Quarter Fiscal 2024 Results
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April 2, 2024
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Sales Performance & Operating Highlights
Max Bowman, vice president and chief financial officer of Cal-Maine Foods, added, “For the third
quarter of fiscal 2024, our net sales were $703.1 million compared with $997.5 million for the same period
last year, which was the Company’s highest quarterly sales period with record high average selling prices
for conventional and specialty eggs. The decline in sales revenue for the third quarter of fiscal 2024 was
primarily due to the significant decrease in egg prices compared to a year ago. However, market prices
moved higher sequentially in the third fiscal quarter due to both the recent impact of HPAI and normal
seasonal fluctuations.
“Our overall sales volumes improved 3.2% compared to the same period last year as we sold 300.8
million dozens compared with 291.4 million dozens for the third quarter of fiscal 2023. Conventional eggs
sold reached 192.2 million dozens, up 2.6%, while specialty eggs sold were 108.6 million dozens, a 4.4%
increase over the prior-year period. These results represent the highest total dozens sold and highest
specialty dozens sold in any quarter for Cal-Maine Foods.
“Net income attributable to Cal-Maine Foods for the third quarter of fiscal 2024 was $146.7 million,
or $3.00 per diluted share, compared with $323.2 million, or $6.62 per diluted share, for the third quarter
of fiscal 2023, which was another record for the Company.
“The net average selling price per dozen was $2.152 for conventional eggs in the third quarter of
fiscal 2024, down 41.5% compared with $3.678 for the prior-year quarter. Net average selling price for
specialty eggs was $2.415 per dozen, compared with $2.616 per dozen for the third quarter of fiscal 2023,
a decline of 7.7%. Specialty dozens sold were 36.1% of total dozens sold in the third quarter of fiscal 2024
compared with 35.7% in the prior-year period.
“We reported operating income of $162.8 million for the third quarter of fiscal 2024, compared with
operating income of $407.8 million for the prior-year quarter, primarily reflecting lower market prices.
However, we benefitted from lower feed ingredient prices compared with the same period a year ago. For
the third quarter of fiscal 2024, feed costs per dozen were down 19.9% compared with the third quarter of
fiscal 2023. Our other farm production costs were higher primarily due to higher flock amortization and
increased facility costs.
“Current indications for corn supply project an overall better stocks-to-use ratio, implying
potentially lower prices in the near term. However, as we continue to face uncertain external forces
including weather patterns and global supply chain disruptions, price volatility could remain. Soybean meal
supply has remained tight relative to demand in the third quarter of fiscal 2024.”
13 Weeks Ended
39 Weeks Ended
March 2, 2024
February 25, 2023
March 2, 2024
February 25, 2023
Dozen Eggs Sold (000)
300,779
291,416
862,078
850,819
Conventional Dozen Eggs Sold (000)
192,182
187,357
566,174
555,045
Specialty Dozen Eggs Sold (000)
108,597
104,059
295,904
295,774
Dozen Eggs Produced (000)
259,527
263,174
774,984
782,186
% Specialty Sales (dozen)
36.1
%
35.7
%
34.3
%
34.8
%
% Specialty Sales (dollars)
38.5
%
28.2
%
42.5
%
29.6
%
Net Average Selling Price (per dozen)
$
2.247
$
3.298
$
1.866
$
2.771
Net Average Selling Price Conventional
Eggs (per dozen)
$
2.152
$
3.678
$
1.624
$
2.984
Net Average Selling Price Specialty Eggs
(per dozen)
$
2.415
$
2.616
$
2.328
$
2.369
Feed Cost (per dozen)
$
0.544
$
0.679
$
0.564
$
0.677
Cal-Maine Foods Reports Third Quarter Fiscal 2024 Results
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April 2, 2024
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HPAI & Table Egg Supply Outlook
Outbreaks of HPAI have continued to occur in U.S. poultry flocks. From November 2023 through
January of 2024, the USDA division of Animal and Plant Health Inspection Service reported that
approximately 15.7 million commercial layer hens and pullets have been depopulated as a result of HPAI
outbreaks.
During the third quarter of fiscal 2024, Cal-Maine Foods experienced an HPAI outbreak within its
facilities in Kansas, resulting in depopulation of approximately 1.5 million laying hens and 240,000 pullets.
Following the end of the third quarter, on April 1, 2024, one of the Company’s facilities located in Parmer
County, Texas, tested positive for HPAI, resulting in depopulation of approximately 1.6 million laying hens
and 337,000 pullets, or approximately 3.6% of the Company’s total flock as of March 2, 2024.
Production
at the facility has temporarily ceased as the Company follows the protocols prescribed by the USDA. Cal-
Maine Foods is working to secure production from other facilities to minimize disruption to its customers.
The Company remains dedicated to robust biosecurity programs across its locations; however, no
farm is immune from HPAI. HPAI is still present in the wild bird population and the extent of possible
future outbreaks, with heightened risk during the migration seasons, cannot be predicted. According to
the U.S. Centers for Disease Control and Prevention, the human health risk to the U.S. public from HPAI
viruses is considered to be low. Also, according to the USDA, HPAI cannot be transmitted through safely
handled and properly cooked eggs. There is no known risk related to HPAI associated with eggs that are
currently in the market and no eggs have been recalled.
Looking Ahead
Miller added, “We are proud of our ability to manage our operations effectively and deliver favorable
results to date for fiscal 2024. Like other producers, we have navigated significant challenges related to
HPAI, and we remain diligent in our efforts to mitigate any future risks. We commend our team of
managers and employees who have worked through these challenges with minimal disruption to our overall
production and distribution. Importantly, we remain committed to meeting the needs of our valued
customers with a diverse offering of quality products. Demand for shell eggs has remained strong as
consumers look for an affordable and nutritious protein option. Across our operations, we are focused on
meeting this demand, as we continue to identify opportunities to extend our market reach. We are also
making significant investments in our operations to drive innovation and more efficient production and
support our ability to add capacity, including cage-free opportunities. We have a strong balance sheet that
provides us with the flexibility to fund our growth initiatives, including potential acquisitions. We believe
fiscal 2024 will be another successful year for the Company, and we look forward to the opportunities ahead
for Cal-Maine Foods.”
Dividend Payment
For the third quarter of fiscal 2024, Cal-Maine Foods will pay a cash dividend of approximately
$1.00 per share to holders of its common and Class A common stock. Pursuant to Cal-Maine Foods’ variable
dividend policy, for each quarter in which the Company reports net income, the Company pays a cash
dividend to shareholders in an amount equal to one-third of such quarterly income. Following a quarter
for which the Company does not report net income, the Company will not pay a dividend with respect to
that quarter or for a subsequent profitable quarter until the Company is profitable on a cumulative basis
computed from the date of the most recent quarter for which a dividend was paid. The amount paid per
share will vary based on the number of outstanding shares on the record date. The dividend is payable on
May 16, 2024, to holders of record on May 1, 2024.
About Cal-Maine Foods
Cal-Maine Foods, Inc. is primarily engaged in the production, grading, packaging, marketing and
distribution of fresh shell eggs, including conventional, cage-free, organic, brown, free-range, pasture-
raised and nutritionally enhanced eggs. The Company, which is headquartered in Ridgeland, Mississippi,
Cal-Maine Foods Reports Third Quarter Fiscal 2024 Results
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April 2, 2024
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is the largest producer and distributor of fresh shell eggs in the United States and sells the majority of its
shell eggs in states across the southwestern, southeastern, mid-western and mid-Atlantic regions of the
United States.
Forward Looking Statements
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. The forward-
looking statements are based on management’s current intent, belief, expectations, estimates and
projections regarding our company and our industry. These statements are not guarantees of future
performance and involve risks, uncertainties, assumptions and other factors that are difficult to predict
and may be beyond our control. The factors that could cause actual results to differ materially from those
projected in the forward-looking statements include, among others, (i) the risk factors set forth in the
Company’s SEC filings (including its Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q and
Current Reports on Form 8-K), (ii) the risks and hazards inherent in the shell egg business (including
disease, pests, weather conditions and potential for recall), including but not limited to the most recent
outbreak of highly pathogenic avian influenza affecting poultry in the U.S., Canada and other countries
that was first detected in commercial flocks in the U.S. in February 2022 and that first impacted our
flocks in December 2023, (iii) changes in the demand for and market prices of shell eggs and feed costs,
(iv) our ability to predict and meet demand for cage-free and other specialty eggs, (v) risks, changes or
obligations that could result from our future acquisition of new flocks or businesses and risks or changes
that may cause conditions to completing a pending acquisition not to be met, (vi) risks relating to
increased costs, and higher and potentially further increases in inflation and interest rates, (vii) our
ability to retain existing customers, acquire new customers and grow our product mix, (viii) adverse
results in pending litigation matters, and (ix) global instability, including as a result of the war in
Ukraine, the Israel-Hamas conflict and attacks on shipping in the Red Sea. SEC filings may be obtained
from the SEC or the Company’s website
,
undue reliance on forward-looking statements because, while we believe the assumptions on which the
forward-looking statements are based are reasonable, there can be no assurance that these forward-
looking statements will prove to be accurate. Further, the forward-looking statements included herein
are only made as of the respective dates thereof, or if no date is stated, as of the date hereof. Except as
otherwise required by law, we disclaim any intent or obligation to publicly update these forward-looking
statements, whether as a result of new information, future events or otherwise.
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April 2, 2024
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CAL-MAINE FOODS, INC. AND SUBSIDIARIES
FINANCIAL HIGHLIGHTS
(Unaudited)
(In thousands, except per share amounts)
SUMMARY STATEMENTS OF INCOME
13 Weeks Ended
39 Weeks Ended
March 2, 2024
February 25, 2023
March 2, 2024
February 25, 2023
Net sales
$
703,076
$
997,493
$
1,685,654
$
2,457,537
Cost of sales
484,504
534,467
1,330,519
1,459,172
Gross profit
218,572
463,026
355,135
998,365
Selling, general and administrative
66,020
58,489
194,844
170,048
Gain on involuntary conversions
(9,929)
(3,220)
(9,929)
(3,220)
(Gain) loss on disposal of fixed assets
(306)
(26)
(44)
36
Operating income
162,787
407,783
170,264
831,501
Other income, net
22,372
17,104
37,746
21,134
Income before income taxes
185,159
424,887
208,010
852,635
Income tax expense
38,796
102,118
44,658
206,438
Net income
146,363
322,769
163,352
646,197
Less: Loss attributable to noncontrolling interest
(349)
(450)
(1,295)
(896)
Net income attributable to Cal-Maine Foods, Inc.
$
146,712
$
323,219
$
164,647
$
647,093
Net income per common share:
Basic
$
3.01
$
6.64
$
3.38
$
13.31
Diluted
$
3.00
$
6.62
$
3.37
$
13.25
Weighted average shares outstanding:
Basic
48,727
48,653
48,702
48,634
Diluted
48,884
48,842
48,865
48,832
Cal-Maine Foods Reports Third Quarter Fiscal 2024 Results
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April 2, 2024
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CAL-MAINE FOODS, INC. AND SUBSIDIARIES
FINANCIAL HIGHLIGHTS
(Unaudited)
(In thousands)
SUMMARY BALANCE SHEETS
March 2, 2024
June 3, 2023
ASSETS
Cash and short-term investments
$
694,843
$
647,914
Receivables, net
246,622
187,213
Inventories, net
269,244
284,418
Prepaid expenses and other current assets
6,883
5,380
Current assets
1,217,592
1,124,925
Property, plant and equipment, net
826,573
744,540
Other noncurrent assets
89,364
85,060
Total assets
$
2,133,529
$
1,954,525
LIABILITIES AND STOCKHOLDERS' EQUITY
Accounts payable and accrued expenses
$
166,798
$
145,601
Dividends payable
48,891
37,130
Current liabilities
215,689
182,731
Deferred income taxes and other liabilities
196,881
162,211
Stockholders' equity
1,720,959
1,609,583
Total liabilities and stockholders' equity
$
2,133,529
$
1,954,525