Cal-Maine Foods posted sales of $217 million ($278 million in 2008), generating profits of $30.8 million ($57.2 million), for third quarter fiscal 2009 in its Form 10-Q submitted to the U.S. Securities and Exchange Commission. For the nine months ending February 28, 2009, total sales amounted to $715 million ($680 million) with a net income of $69.2 million ($115 million).
Gross margin for the current period declined from 33% in fiscal 2008 to 23% in fiscal 2009. Chairman Fred Adams noted the higher price of feed during fiscal 2009 together with correspondingly lower unit egg revenue in reviewing the performance of the company.
Cal-Maine produces 76% of eggs they sell; 6% is derived from contractors. The remaining 24% is purchased on an as-required basis. Cal-Maine markets 95% of its eggs in shell form. Disclosures in the company 10-Q confirm that 18% of sales value is derived from specialty eggs which represent 14% of volume of production indicating the relative profitability of specialty eggs over generics.
The company has total assets of $587 million and a favorable ratio of current assets of $246 million to current liabilities of $114 million. The company has incurred debt to the value of $119 million.
During the nine-month reporting period, Cal-Maine Foods acquired Tampa Farms ($61.6) with 4 million hens and Zephyr Eggs ($29.6 million) with 2 million hens. The company continues to exercise a recurring option to purchase the equity of Hillandale Foods of Florida and now owns 88% of the company with the remaining equity to be acquired in July 2009.
