Cal-Maine Foods sees earnings jump 83 percent for second quarter of FY 2014
Company’s net sales also increase during second quarter
Earnings for Cal-Maine Foods during the second quarter of the 2014 fiscal year surged 83 percent when compared to the second quarter of 2013. Cal-Maine Foods, the largest producer and distributor of fresh shell eggs in the United States, released its financial results for the quarter ending November 30 on December 30.
Net sales for the second quarter of fiscal 2014 were $354.3 million, an eight percent increase compared with net sales of $328.9 million for the second quarter of fiscal 2013. Cal-Maine Foods reported net income of $26.1 million, or $1.09 per basic share and $1.08 per diluted share, for the second quarter of fiscal 2014 compared with $14.3 million, or $0.60 per basic and diluted share, for the second quarter of fiscal 2013.
For the first six months of fiscal 2014, net sales were $673.8 million compared with net sales of $601.8 million for the prior-year period. The company reported net income of $34.9 million, or $1.45 per basic share and$1.44 per diluted share, for the first half of fiscal 2014 compared with net income of $23.7 million, or $0.99 per basic and diluted share, for the year-earlier period.
Lower feed prices and higher average selling prices helped Cal-Maine Foods second-quarter earnings, as well as the Cal-Maine Foods acquisition of Maxim Production completed in November 2012.
"We are pleased with the continued growth in sales and improved operating performance for the second quarter of fiscal 2014. These results reflect the additional volumes related to the Maxim acquisition, completed in November 2012, which contributed to the 6.2 percent growth in dozens sold during the quarter. Average selling prices were up one percent compared with the second quarter of fiscal 2013," said Dolph Baker, chairman, president and chief executive officer of Cal-Maine Foods.
"Our specialty egg sales continued to trend higher and accounted for 16.4 percent of dozens sold and 23.7 percent of total shell egg sales revenue for the quarter. Specialty eggs are an important area of focus for Cal-Maine Food's growth strategy as they continue to gain popularity with consumers who are looking for alternatives and willing to pay for premium products. Specialty egg prices, which are typically higher and less cyclical than regular egg prices, were up 4.1 percent in the second quarter of fiscal 2014 compared with the same period last year. We will continue to identify ways to enhance our product mix in line with changing customer demand trends."
Baker added, "We experienced favorable egg markets during the second quarter of fiscal 2014. Our feed costs, which remain at historically high levels, were 15 percent lower than a year ago. We are optimistic feed costs will remain near current levels, but believe that prices of corn and soybean meal, our principal feed ingredients, will remain volatile for the balance of our fiscal year. Overall, our operations performed very well and our operating income for the second quarter of fiscal 2014 was $40.9 million compared with $20.4 million for the second quarter of fiscal 2013. These results reflect higher sales volumes and our continued efforts to be an efficient, low-cost producer. We are very pleased with our performance through the first half of fiscal 2014 and look forward to the new opportunities ahead for Cal-Maine Foods."