ATLANTA, Feb. 2 /PRNewswire-FirstCall/ -- Cagle's Inc. today reported the following results for its third quarter ended December 31, 2005.
Net income for the third quarter of fiscal 2006 was a loss of $.5 million, or ($.11), per diluted share as compared with a net income of $.1 million, or $.02, per diluted share for the third quarter of fiscal 2005. For the first 39 weeks of fiscal 2006 net income was $2.6 million or $.54 per diluted share as compared with a net income of $9 million or $1.90 per diluted share for the first 40 weeks of fiscal 2005.
Revenues for the third quarter of our current fiscal year were 8.98% higher than the third quarter of fiscal 2005 reflecting an increase in pounds marketed of 15.18% offset by sales prices which were 5.95% lower per pound. Revenues for the first 39 weeks of fiscal 2006 were 1.82% lower comprised of 16.36% more pounds sold at a price 15.62% lower than the first 40 weeks in fiscal 2005. Cost of sales rose 12.04% for the third quarter and 3.73% for the first 39 weeks of fiscal 2006 versus the comparable periods of fiscal 2005, indicative of the increased volumes processed at our facilities. Energy cost increased for the third quarter and first 39 weeks of fiscal 2006 by 35.5% and 26.3% respectively.
Avian Influenza has severely impacted our industry, both domestically and internationally. The influenza has affected demand in our industry's overseas markets resulting in lower pricing and dramatically increased cold storage inventory domestically. Cagle's has taken exhaustive precautions to prevent an influenza occurrence within our Company's flocks and continues to participate in the National Poultry Improvement Plan (NPIP) which includes monitoring and testing of our birds for Avian Influenza. We expect to see a recovery in demand and pricing as education throughout our markets continues assuring our customers of the value and safety of our Country's product.
J. Douglas Cagle
Chairman, CEO
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.
Consolidated Statements of Income (in thousands except per share amounts)
13 Weeks 13 Weeks 39 Weeks 40 Weeks
Ended Ended Ended Ended
December 31, January 1, December 31, January 1,
2005 2005 2005 2005
Net Sales $59,495 $54,594 $182,386 $185,767
Cost and Expenses:
Cost of Sales 57,942 51,715 170,542 164,412
Selling & Delivery,
and General & Admin 3,344 3,053 10,096 9,229
Total Cost and Expenses 61,286 54,768 180,638 173,641
Operating Profit (Loss) -1,791 -174 1,748 12,126
Other Income (Expense):
Interest Expense -562 -653 -1,784 -2,004
Other Income (Expense),
net 503 65 1,122 736
Total Other Income
(Expense),net -59 -588 -662 -1,268
Equity in Earnings of
Unconsolidated Affiliates 1,015 941 2,917 3,173
Profit (Loss) before
Income Taxes -835 179 4,003 14,031
Income Tax Expense
(Benefit) -301 64 1,441 5,036
Net Profit (Loss) $ (534) $115 $ 2,562 $8,995
Net Profit (Loss)
per Share $(0.11) $0.02 $0.54 $1.90
Cagle's Inc.
Condensed Consolidated Balance Sheet (in thousands)
ASSETS December 31, 2005 April 2, 2005
Current Assets $35,338 $32,687
Investments in Affiliates 8,064 6,105
Other Assets 8,277 11,000
Property, Plant, and Equipment (net) 44,486 44,500
TOTAL ASSETS $96,165 $94,292
LIABILITIES & STOCKHOLDER'S EQUITY
Current Maturities of Long-term Debt $3,476 $3,476
Trade Accounts Payable 12,863 11,563
Other Current Liabilities 5,714 6,438
Total Current Liabilities 22,053 21,477
Long-Term Debt 25,743 26,534
Other Non-current Liabilities - 475
Total Stockholders Equity 48,369 45,806
TOTAL LIABILITIES & STOCKHOLDERS EQUITY $96,165 $94,292
First Call Analyst:
FCMN Contact: mham@caglesinc.com
