ATLANTA, June 6 /PRNewswire-FirstCall/ -- Cagle's Inc. today reported financial results for the fiscal year ended March 29, 2008.
For fiscal 2008, the company reported a loss of ($0.77) million or ($0.17) per diluted share compared to a profit of $.56 million or $0.12 per diluted share for fiscal 2007. Earnings for fiscal 2007 results included a pretax profit of $18 million from the sale of the Company's minority interest in a joint venture. Operating income for fiscal 2008 was $.14 million compared to a loss of ($12.6) million for fiscal 2007.
Revenues for fiscal 2008 increased 21.2% to $283.6 million reflecting additional pounds marketed coupled with an average price per pound increase of 11.2%. Fiscal year cost of sales increased 15.6% largely due to the continued increase in our feed ingredient prices which rose 31.5% or $23.5 million over the same period last year.
On April 10, 2008 Cagle's announced a 4% cutback in production. Recent industry cutbacks are now being reflected in declining egg sets and chick placements which we expect to result in improved chicken prices that will outpace feed cost and return the company to positive margins.
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. & Subsidiary Consolidated Statements of Income (In Thousands, except per share data) Twelve Months Ended March 29 March 31 2008 2007 Net Sales $283,649 $233,936 Costs and Expenses: Cost of Sales 268,477 232,290 Selling & Delivery and General & Administrative 8,579 8,667 General and Administrative 6,458 5,654 Other General Expenses 0 (63) Total Costs and Expenses 283,514 246,548 Operating Income (Loss) 135 (12,612) Other Income (Expense): Interest Expense (1,483) (2,054) Gain On Sale Of Unconsolidated Affiliate 0 18,323 Other Income, Net 190 358 Total Other Income (Expense), net (1,293) 16,627 Equity In Earnings Of Unconsolidated Affiliates 0 1,317 Income Before Income Taxes (1,158) 5,332 Income Taxes Provision (385) 4,773 Net Income $(773) $559 Net Income Per Common Share $(0.17) $0.12 Cagle's Inc. Condensed Consolidated Balance Sheet (In Thousands) ASSETS March 29, 2008 March 31, 2007 Current Assets $46,420 $41,139 Other Assets 6,294 3,607 Property, Plant, and Equipment (net) 39,260 39,273 TOTAL ASSETS $91,974 $84,019 LIABILITIES & STOCKHOLDER'S EQUITY Current Maturities of Long-term Debt $2,269 $2,098 Trade Accounts Payable 16,025 13,581 Other Current Liabilities 7,929 6,519 Total Current Liabilities 26,223 22,198 Long-Term Debt 20,924 16,467 Total Stockholders Equity 44,827 45,354 TOTAL LIABILITIES & STOCKHOLDERS EQUITY $91,974 $84,019
