ATLANTA, Aug. 5 /PRNewswire-FirstCall/ -- Cagle's Inc. reported a loss of $3.0 million or $.64 per diluted share for the first quarter of fiscal year 2009 compared with a profit of $1.5 million or $.33 per diluted share for the first quarter of fiscal 2008.
Revenues for the first quarter were $76.9 million up 7.04% as a result of 13% additional pounds marketed compared to the first quarter of last year. Overall revenue per pound for poultry products for the first quarter of fiscal 2009 was $.73 as compared to $.78 for the same period of fiscal 2008. Quoted market prices for products for the first quarter of fiscal 2009 versus the same period last year fluctuated as boneless breast decreased 12%, breast tenders decreased 22%, wings decreased 26%, drums increased 9%, leg quarters were 2% higher and whole birds without giblets decreased 2%.
Cost of sales for the first quarter of fiscal 2009 increased 18.1% as compared with the same period last year, from $65.7 million to $77.6 million. Feed ingredient prices for broilers processed in the first quarter of 2009, which represented 39% of the total cost of sales, increased 43% as compared to the first quarter of 2008.
High grain costs are expected to continue to negatively impact operating margins for the third quarter as the company endeavors to increase pricing to enable a return to profitability.
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 Sheet (In Thousands) ASSETS June 28, 2008 March 29, 2008 Current Assets $ 49,061 $ 46,420 Other Assets 6,520 6,294 Property, Plant, and Equipment (net) 38,912 39,260 TOTAL ASSETS $ 94,493 $ 91,974 LIABILITIES & STOCKHOLDER'S EQUITY Current Maturities of Long-term Debt $ 2,346 $ 2,269 Trade Accounts Payable 18,924 16,025 Other Current Liabilities 7,112 7,929 Total Current Liabilities 28,382 26,223 Long-Term Debt 23,060 20,924 Total Stockholders Equity 43,051 44,827 TOTAL LIABILITIES & STOCKHOLDERS EQUITY $ 94,493 $ 91,974 Cagle's, Inc. & Subsidiary Consolidated Statements of Income (In Thousands, except per share data) Three Months Ended June 28, June 30, 2008 2007 Net Sales $ 76,921 $ 71,862 Costs and Expenses: Cost of Sales 77,577 65,660 Selling & Delivery and General & Administrative 2,332 3,486 General and Administrative 1,192 (28) Other General Expenses 0 0 Total Costs and Expenses 81,101 69,118 Operating Income (Loss) (4,180) 2,744 Other Income (Expense): Interest Expense (489) (368) Other Income, Net (12) 23 Total Other Income (Expense), net (501) (345) Income Before Income Taxes (4,681) 2,399 Income Taxes Provision (1,685) 863 Net Income $ (2,996) $ 1,536 Net Income Per Common Share $ (0.64) $ 0.33
