ATLANTA, Nov. 10 /PRNewswire-FirstCall/ -- Cagle's Inc. reported net income of $ 0.7 million or $0.15 per share for the second quarter of fiscal year 2010 compared to a net loss of $5.5 million or $1.18 per share for the second quarter of fiscal 2009. For the first six months of fiscal 2010 net income was $2.0 million or $0.43 per share compared with a net loss of $8.5 million or $1.82 per share for the first six months of fiscal 2009.
Revenues for the second quarter were $ 87.6 million up 15.8 % and pounds sold increased 14.7% both influenced by a fourteen week period in 2010 versus a thirteen week period in 2009. For the six month period revenues were $165.6 million up 8.5% and sales pounds increased 4.9% again influenced by the additional week in the first two quarters of fiscal 2010 as compared to the same period in fiscal 2009. Quoted market prices for the second quarter of fiscal 2010 versus the same period last year fluctuated as boneless breast increased 6%, breast tenders increased 22%, wings increased 49%, drums decreased 14%, leg quarters were 24% lower and whole birds without giblets were 6% less.
Cost of sales for the second quarter of fiscal 2010 increased 2.7% as compared with the same period last year, from $79.7 million to $81.8 million reflecting the previously mentioned additional week in the period and a 14.7% increase in pounds sold coupled with an 8.6% reduction in the cost of feed. For the first six months of 2010 cost of sales was $153.5 million down 2.4% from fiscal 2009.
Wet weather across the mid-west has delayed and possibly damaged what appeared to be a record crop in both corn and soybean meal causing feed prices to increase as we enter our third quarter. Poultry producers continue to exhibit restraint with egg sets 3% less than the same quarter of 2008 and 7% below the July - September period in 2007. Producers of pork, beef and turkey have been slower to contract resulting in an excess of protein on the world market as demand remains problematic.
Cagle's Inc. /s/ J. Douglas Cagle J. Douglas Cagle Chairman, Chief Executive Officer and President 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 Sheets (In Thousands) October 3, 2009 ASSETS (Unaudited) March 28, 2009 ------ --------------- -------------- Current Assets $44,304 $42,798 Other Assets 9,898 11,571 Property, Plant, and Equipment (net) 35,415 36,783 --------------- -------------- TOTAL ASSETS $89,617 $91,152 --------------- -------------- LIABILITIES & STOCKHOLDERS' EQUITY ---------------------------------- Current Maturities of Long-term Debt $2,601 $2,488 Trade Accounts Payable 18,745 19,989 Other Current Liabilities 7,937 7,642 --------------- -------------- Total Current Liabilities 29,283 30,119 Long-Term Debt 25,850 29,049 Total Stockholders' Equity 34,484 31,984 --------------- -------------- TOTAL LIABILITIES & STOCKHOLDERS' EQUITY $89,617 $91,152 Cagle's, Inc. Condensed Consolidated Statements of Operations (Unaudited) (In Thousands, except net income per share) 14 wks ended 13 wks ended 27 wks ended 26 wks ended 10/03/2009 09/27/2008 10/03/2009 09/27/2008 Net Sales $87,570 $75,632 $165,585 $152,553 ------- ------- -------- -------- Costs and Expenses: Cost of Sales 81,819 79,702 153,527 157,279 Selling and Delivery 2,275 2,355 4,472 4,687 General and Administrative 1,985 1,532 3,650 2,724 ------- ------- -------- -------- Total Costs and Expenses 86,079 83,589 161,649 164,690 ------- ------- -------- -------- Operating Income (Loss) 1,491 (7,957) 3,936 (12,137) Other Income (Expense): Interest Expense (415) (606) (857) (1,095) Other Income (Expense), Net 3 (4) 5 (16) ------- ------- -------- -------- Total Other Income (Expense), Net (412) (610) (852) (1,111) ------- ------- -------- -------- Income (Loss) Before Income Taxes 1,079 (8,567) 3,084 (13,248) Income Tax Expense (Benefit) 388 (3,084) 1,110 (4,769) ------- ------- -------- -------- Net Income (Loss) $691 $(5,483) $1,974 $(8,479) ======= ======= ======== ======== Weighted-Average Common Shares Outstanding 4,615 4,662 4,617 4,662 ======= ======= ======= ======= Net Income (Loss) Per Common Share $0.15 $(1.18) $0.43 $(1.82)
Cagle's Inc.
CONTACT: Harry Woodring, +1-404-355-2820
Web Site: http://www.cagles.net/
