Cagle's, Inc. Announces Results for the Quarter Ended July 2, 2011

Aug 16, 2011, 16:47 ET from Cagle's, Inc.

ATLANTA, Aug. 16, 2011 /PRNewswire/ -- Cagle's, Inc. (NYSE Amex: CGL.A) reported a net (loss) of $(5.7) million or $(1.24) per share for the quarter ended July 2, 2011 compared to net income of $3.5 million or $0.75 per share for the quarter ended July 3, 2010.

Net sales for the first quarter were $81.9 million, up 4.2% from $78.6 million, reflecting an increase in pounds sold of 14.9% and a decrease in sales price for poultry of $0.059 per pound as compared to the same period of fiscal 2011. Quoted market price changes for products for the first quarter of fiscal 2012 versus the same period last year were:  leg quarters increased 27.4%, boneless breast decreased 17.6%, breast tenders decreased 11.8%, wing markets decreased 40.3%, and whole birds without giblets were unchanged.

Cost of sales for the first quarter of fiscal 2012 increased 27.1% as compared with the same period last year, from $68.2 million to $86.7 million. Feed ingredient prices for broilers processed in the first quarter of fiscal 2012, which represented 46% of the total cost of sales, increased 68.3% or $16.3 million as compared to the first quarter of fiscal 2011.

Cagle's and the industry's profitability continue to be challenged by high feed cost accentuated by broiler markets pressured by over production. Effective the end of August Cagle's will have executed a further cut back in production at its Pine Mountain Valley plant that will result in the company processing 22% less head than capacity. Towards the end of July our industry had begun to react in similar fashion with egg sets 6% less than the same period in 2010. These industry cut backs should have a positive effect on markets and final margins in the coming months.    

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 2011 SEC Form 10-K Annual Report 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 SEC Form 10-Q for the Company's first quarter ended July 2, 2011.


Cagle's, Inc.

Condensed Consolidated Statements of Operations

(In Thousands, except net income per share)














 13 Weeks Ended  

 13 Weeks Ended  




July 2, 2011

July 3, 2010



Net Sales



$         81,873

$        78,571

Costs and Expenses:





   Cost of Sales



86,683

68,215

   Selling and Delivery



2,220

2,447

   General and Administrative



1,507

2,098

Total Costs and Expenses



90,410

72,760






Operating Income (Loss)



(8,537)

5,811






Other Income (Expense):





   Interest Expense



(420)

(381)

   Other Income (Expense), Net



(4)

4

Total Other Expense, Net



(424)

(377)






Income (Loss) Before Income Taxes



(8,961)

5,434






Income Tax Expense (Benefit)



(3,226)

1,956






Net Income (Loss)



$          (5,735)

$          3,478











Weighted-Average Common Shares Outstanding



4,616

4,616


Net Income (Loss) Per Common Share



$            (1.24)

$            0.75





Cagle's, Inc.

Condensed Consolidated Balance Sheets

(In Thousands)












          July 2, 2011


       April 2, 2011

ASSETS                                                      














Cash


$

950


$

1,370

Trade Accounts Receivable, net



15,100



15,882

Inventories



33,996



31,990

Other Current Assets



562



307

Total Current Assets



50,608



49,549








Property, Plant and Equipment (net)



32,245



33,245








Other Assets



9,172



7,519








TOTAL ASSETS


$

92,025


$

90,313






















LIABILITIES & STOCKHOLDERS' EQUITY














Current Maturities of Long-term Debt


$

10,401


$

9,127

Accounts Payable



26,917



22,346

Other Current Liabilities



5,672



7,791

Total Current Liabilities



42,990



39,264








Long-Term Debt



20,001



16,280








Total Stockholders' Equity



29,034



34,769








TOTAL LIABILITIES & STOCKHOLDERS' EQUITY


$

92,025


$

90,313




SOURCE Cagle's, Inc.



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