Cal-Maine Foods posts loss for first quarter 2010
Despite loss, CEO says results are satisfactory.
Cal-Maine Foods, the nation's largest egg producer, posted a net loss of $3.8 million on sales of $187.7 million for the first quarter of fiscal 2010, ending August 28, 2009. The loss compares to a profit of $11.1 million on sales of $206.9 in the corresponding period of FY 2009.
Net average selling price on 193 million dozen eggs sold was $0.92 compared to 170 million dozen which generated $1.14 in Q1 2009. The 19% decline in unit revenue was responsible for a decrease in gross margin from 19.6% compared to 9.7% in Q1 of 2010. During the quarter, Cal-Maine produced 80.9% (78.3% in Q1 2009) of eggs sold and increased sales of specialty eggs to 22.5% (17.2%) of sales. Feed cost per dozen declined by 22% to 35.7 cents from 45.8 cents in Q1 2009.
Fred Adams, Jr., chairman and CEO, in commenting on results stated, "All factors considered, our results for the first quarter of fiscal 2010 were satisfactory." He added, "All of our operations are running smoothly and efficiently."
The company carries long term debt of $88 million with a LTD:equity ratio of 0.26 (0.34) and a current ratio of 2.2 (2.3) which indicates prudent management of risk.