ATLANTA, Feb. 9 /PRNewswire-FirstCall/ -- Cagle's, Inc. (Amex: CGL.A) reported a net loss of $0.3 million or $0.08 per share for the third quarter of fiscal year 2010 compared to a net loss of $2.5 million or $0.54 per share for the third quarter of fiscal 2009.  For the first nine months of fiscal 2010 net income was $1.6 million or $0.35 per share compared with a net loss of $11.0 million or $2.36 per share for the first nine months of fiscal 2009.

Revenues for the third quarter were $70.4 million down 4.2% and pounds sold decreased 2.0% both due to a thirteen week period in 2010 versus a fourteen week period in 2009.  For the nine month period revenues were $236.0 million up 4.4% and sales pounds increased 2.7% when compared to the same period in the prior year. Quoted market prices for the third quarter of fiscal 2010 versus the same period last year fluctuated as boneless breast increased 9%, breast tenders increased 15%, wings increased 36%, drums decreased 2%, leg quarters were 6% lower and whole birds without giblets were 12% less.

Cost of sales for the third quarter of fiscal 2010 decreased 8.2% as compared with the same period last year, from $72.9 million to $66.9 million due to the thirteen week period versus the prior year fourteen week period and a 2.0% decrease in pounds sold coupled with a 7.1% reduction in the cost of feed. For the first nine months of 2010 cost of sales was $220.5 million down 4.2% from fiscal 2009.

Protein suppliers continue to exercise restraint evidenced by poultry egg sets at 2003 levels, cattle herds at 1959 levels and pork breeding inventory down from 2008 levels by three percent. Farmers in this country have provided our industry with record corn production of 13.151 billion bushels and record soybean production of 3.361 billion bushels in addition to what appears to be record South American soybean crops. The protein restraints coupled with excellent feed stock production should be supportive of margins for the remainder of fiscal year 2010.

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)
    
    
                                    January 2, 2010
    ASSETS                            (Unaudited)               March 28, 2009
    ------                          ----------------            --------------
    
    Current Assets                       $39,818                     $42,798
    
    Other Assets                           9,959                      11,571
    
    Property, Plant, and Equipment
     (net)                                35,041                      36,783
    
    TOTAL ASSETS                         $84,818                     $91,152
                                         =======                     =======
    
    
    
    LIABILITIES & STOCKHOLDERS' EQUITY
    ----------------------------------
    
    Current Maturities of Long-term
     Debt                                 $2,643                      $2,488
    Trade Accounts Payable                15,735                      19,989
    Other Current Liabilities              7,466                       7,642
                                           -----                       -----
    Total Current Liabilities             25,844                      30,119
    
    Long-Term Debt                        24,547                      29,049
    
    Total Stockholders' Equity            34,427                      31,984
    
    
    TOTAL LIABILITIES & STOCKHOLDERS'
     EQUITY                              $84,818                     $91,152
                                         =======                     =======

    
    
                                             Cagle's, Inc.
                            Condensed Consolidated Statements of Operations
                                              (Unaudited)
                              (In Thousands, except net income per share)
    
    
                     13 wks ended   14 wks ended   40 wks ended   40 wks ended
                      01/02/2010     01/03/2009     01/02/2010     01/03/2009
                     ------------   ------------   ------------   ------------
    Net Sales           $70,411        $73,526       $235,996       $226,078
                        -------        -------       --------       --------
    
    Costs and Expenses:
    
    Cost of Sales        66,943         72,905        220,470        230,184
    Selling and Delivery  2,124          2,138          6,596          6,825
    General and
     Administrative       1,498          1,737          5,148          4,460
                          -----          -----          -----          -----
    Total Costs and
     Expenses            70,565         76,780        232,214        241,469
                         ------         ------        -------        -------
    
    Operating Income
     (Loss)                (154)        (3,254)         3,782        (15,391)
    
    Other Income (Expense):
    
    Interest Expense       (393)          (593)        (1,250)        (1,688)
    Other Income
     (Expense), Net           9             (2)            14            (18)
                            ---            ---            ---            ---
    Total Other Income
     (Expense), Net        (384)          (595)        (1,236)        (1,706)
                           ----           ----         ------         ------
    
    Income (Loss) Before
     Income Taxes          (538)        (3,849)         2,546        (17,097)
    
    Income Tax Expense
     (Benefit)             (193)        (1,329)           917         (6,098)
                           ----         ------            ---         ------
    
    Net Income (Loss)     $(345)       $(2,520)        $1,629       $(10,999)
                          =====        =======         ======       ========
    
    
    Weighted-Average
     Common Shares
     Outstanding          4,615          4,658          4,616          4,658
                          =====          =====          =====          =====
    Net Income (Loss) 
     Per Common Share    $(0.08)        $(0.54)         $0.35         $(2.36)
                         ======         ======          =====         ======

SOURCE Cagle's, Inc.

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