ATLANTA, Aug. 10 /PRNewswire-FirstCall/ -- Cagle's, Inc. reported net income of $3.5 million or $0.75 per share for the first quarter of fiscal year 2011 compared to net income of $1.3 million or $0.28 per share for the first quarter of fiscal year 2010.
Revenues for the first quarter were $78.6 million up 0.7% reflecting a decrease in pounds sold of 3.1% and an increase in sales price for poultry of $0.013 per pound as compared to the same period of fiscal 2010. Quoted market prices for products for the first quarter of fiscal 2011 versus the same period last year were mostly down with the exception of boneless breast which increased 9.1%, and breast tenders which increased 7.7%. Wing markets decreased 11%, drums decreased 17%, leg quarters were 19% lower, and whole birds without giblets were quoted 7.3% higher.
Cost of sales for the first quarter of fiscal 2011 decreased 4.9% as compared with the same period last year, from $71.7 million to $68.2 million. Feed ingredient prices for broilers processed in the first quarter of fiscal 2011, which represented 36% of the total cost of sales, decreased 8.5% as compared to the first quarter of fiscal 2010.
This quarter marked the successful completion of the company's transition of its Pine Mountain Valley plant to a deboning facility which has provided Cagle's with the opportunity to market products in the boneless institutional and further processing areas while we continue to exploit fast food and deli product markets at our Collinsville complex. This transition involved expenditures of approximately $5 million for fixed asset and working capital to support the new product lines and has increased pounds processed at Pine Mountain in excess of 20%.
Our shifting product mix and excellent margins on existing products have provided a good return for the company and it's stakeholders for our first quarter of fiscal 2011. We expect protein markets to continue to be strong for the remainder of this summer supported by low cattle and hog inventories and limited expansion of poultry supplies.
Cagle's, Inc. /s/ J. Douglas Cagle J. Douglas Cagle Chairman, Chief Executive Officer and President
This press release contains forward-looking statements based on management's current views and assumptions. Actual results and events may differ. For a discussion of these matters, please refer to the "Forward-Looking Statements" in Item 7 of the Company's 2010 Annual Report on Form 10-K and please refer to the cautionary statement found in Management's Discussion and Analysis of Financial Condition and Results of Operations in Part I, Item 2 of the Quarterly Report on Form 10-Q for the Company's third quarter ended January 2, 2010.
Cagle's, Inc. Condensed Consolidated Statements of Operations (Unaudited) (In Thousands, except net income per share) 13 Weeks Ended June 27, July 3, 2010 2009 ------------ --------- $78,571 $78,015 ------- ------- Net Sales Costs and Expenses: Cost of Sales 68,215 71,708 Selling and Delivery 2,447 2,197 General and Administrative 2,098 1,665 ----- ----- Total Costs and Expenses 72,760 75,570 ------ ------ Operating Income 5,811 2,445 Other Income (Expense): Interest Expense (381) (442) Other Income (Expense), Net 4 2 --- --- Total Other Income (Expense), Net (377) (440) ---- ---- Income Before Income Taxes 5,434 2,005 Income Tax Expense 1,956 722 ----- --- Net Income $3,478 $1,283 ====== ====== Weighted-Average Common Shares Outstanding 4,616 4,619 ===== ===== $0.75 $0.28 Net Income Per Common Share ===== ===== Cagle's, Inc. Condensed Consolidated Balance Sheets (In Thousands) April 3, ASSETS July 3, 2010 2010 ------ ------------ --------- (Unaudited) Current Assets $44,831 $44,011 Property, Plant, and Equipment (net) 35,985 34,869 Other Assets 6,768 8,739 TOTAL ASSETS $87,584 $87,619 ======= ======= LIABILITIES & STOCKHOLDERS' EQUITY ---------------------------------- Current Maturities of Long-term Debt $2,738 $2,685 Accounts Payable 17,068 16,142 Other Current Liabilities 8,963 8,424 ----- ----- Total Current Liabilities 28,769 27,251 Long-Term Debt 20,002 25,033 Total Stockholders' Equity 38,813 35,335 TOTAL LIABILITIES & STOCKHOLDERS' EQUITY $87,584 $87,619 ======= =======
Cagle's, Inc.
CONTACT: Harry Woodring, +1-404-355-2820
