Cal-Maine Foods Reports First Quarter Fiscal 2010 Results

Cal-Maine Foods, Inc. (NASDAQ: CALM) today announced results for its first quarter of fiscal 2010 ended August 28, 2009.

For the first quarter of fiscal 2010, net sales were $187.7 million, compared with net sales of $206.9 million for the first quarter of fiscal 2009. The Company reported net loss of $3.8 million, or $0.16 per basic and diluted share, for the first quarter of fiscal 2010 compared with net income of $11.1 million, or $0.47 per basic and diluted share, for the year-earlier period.

Fred Adams, Jr., chairman and chief executive officer of Cal-Maine Foods, Inc., stated, “All factors considered, our results for the first quarter of fiscal 2010 were satisfactory. Both the number of eggs sold and eggs produced by Cal-Maine were up over the prior year, however, selling prices were lower. Our feed costs were down considerably from the same period last year, but not enough to offset the price decline. Demand for eggs at the retail level remained strong; however, institutional sales to restaurants and food service customers have been weaker, reflecting the current economy.

“USDA reports indicate that the egg supply for the year ahead should be balanced with demand. Corn and soybean production are also projected to be adequate for usage. We are projecting lower feed costs for the year ahead. All of our operations are running smoothly and efficiently,” added Adams.

Under Cal-Maine’s dividend policy, no dividends are paid if there is a loss for the quarter.

Selected operating statistics for the first quarter of fiscal 2010 compared with the prior year period are shown below:


	13 Weeks Ended
	August 28,			August 30,
	2009			2008
Dozen Eggs Sold (000)		193,047			170,651
Dozen Eggs Produced (000)		156,143			133,642

% Specialty Sales (dozen)		13.2	%		12.7	%

Net Average Selling Price (dozen)	$	0.922		$	1.135
Feed Cost (dozen)	$	0.357		$	0.458

% Specialty Sales ($)		22.5	%		17.2	%

Cal-Maine Foods, Inc. is primarily engaged in the production, grading, packing and sale of fresh shell eggs. The Company, which is headquartered in Jackson, Mississippi, currently is the largest producer and distributor of fresh shell eggs in the United States and sells the majority of its shell eggs in approximately 29 states across the southwestern, southeastern, mid-western and mid-Atlantic regions of the United States.

Statements contained in this press release that are not historical facts are forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are subject to risks and uncertainties (contained in the Company’s SEC filings) that could cause actual results to differ materially from those projected. SEC filings may be obtained from the SEC or by contacting the Company.


CAL-MAINE FOODS, INC. AND SUBSIDIARIES FINANCIAL HIGHLIGHTS (Unaudited) (In thousands, except per share amounts)

	13 Weeks Ended
	August 28,			August 30,
	2009			2008
Net sales	$	187,666		$	206,888
Gross profit		18,217			40,647
Operating income (loss)		(5,301	)		17,981
Income (loss) before income taxes		(5,858	)		17,389

Net income (loss)	$	(3,832	)	$	11,147

Net income (loss) per common share:
Basic	$	(0.16	)	$	0.47
Diluted	$	(0.16	)	$	0.47

Weighted average shares outstanding:
Basic		23,791			23,730
Diluted		23,791			23,769


SUMMARY BALANCE SHEET (Unaudited) (In thousands)

	August 28, 2009		May 30, 2009
ASSETS
Cash and short-term investments	$	90,739	$	82,048
Receivables		61,979		44,628
Inventories		96,291		97,535
Other		23,340		17,474
Current assets		272,349		241,685

Property, plant and equipment (net)		240,426		249,958
Other assets		56,411		91,202
Total assets	$	569,186	$	582,845

LIABILITIES AND SHAREHOLDERS' EQUITY
Accounts payable and accrued expenses	$	63,082	$	61,845
Other current liabilities		--		8,400
Current maturities of long-term debt		38,952		13,806
Deferred income taxes		20,835		19,635
Current liabilities		122,869		103,686

Deferred income taxes and other liabilities		31,080		30,167
Long-term debt, less current maturities		87,930		115,983
Shareholders' equity		327,307		333,009
Total liabilities and shareholders' equity	$	569,186	$	582,845

Cal-Maine Foods (CALM)