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.



RELATED LINKS

http://www.cagles.net