Cal-Maine Foods Inc. announced net sales of $190.4 million for the first quarter of 2010 ($187.7 million for Q1, FY2010). Net income was $4.8 million (-$3.8 million in Q1, FY2010). The first quarter results include a non-recurring insurance settlement of $2.6 million to cover damage resulting from a fire at the Farwell, Texas, complex in July of 2009. Highlights from the report included a statement that specialty sales represented 14.9% of volume but 25.5% of dollar revenue. Feed costs per dozen for the quarter amounted to 33.4 cents/dozen slightly below the 35.7 cents/dozen recorded for the corresponding quarter in 2009, reflecting prevailing commodity prices.

In reviewing the annual report for 2010 reflecting the year ending May 29, 2010, net sales for the year were $910.1 million, approximately 2.1% less than the $9.8 million for fiscal 2009. Net income was $67.8 million, 14.6% less than the $79.5 million in FY2009. Gross margin was 21.3% based on a cost of sales of $715.5 million. During FY2010 Cal-Maine marketed 805.4 million dozen eggs and housed 26.3 million hens.

Based on the data provided, it was calculated that 70% of total production is obtained from company-owned flocks, 21% purchased as nest-run and 9% supplied by contractors. The company paid an average of $1.17 per dozen for outside purchases compared to the average Urner Barry spot egg quotation of $1.12 per dozen. Figures derived from the annual report suggest that average revenue over the 805.4 million dozen was $1.12 given the relative proportions of specialty eggs (14.4% by volume or 21% by value). Specialty eggs generated $1.64 per dozen compared to generics at $1.04 per dozen. Given a feed cost of 0.35 cents per dozen and applying industry parameters for production and downgrades, average Cal-Maine feed cost was $202 per ton.

Cal-Maine is essentially a producer of generic eggs with a narrow market base. Wal-Mart stores and Sam’s Clubs represented 36% of net sales value and Publix Supermarkets accounted for 10% of net sales dollars. The top ten customers accounted for 71% of net dollar sales. Cal-Maine owns a 29.1% equity interest in the Eggland’s Best cooperative and products under the Eggland’s Best Brand accounted for 9.2% of dozens sold in fiscal 2010. Cal-Maine brands, including Farm House and Four-Grain brands, amounted to 7.5% of dollar sales.


Cal-Maine owns almost 20,000 acres of land in 43 locations including plants, integrated complexes and distribution facilities. The company can hatch 21 million pullet chicks annually and grow 17 million pullets. Total housing capacity is 31 million hens. Cumulative capacity of all company feed mills is equivalent to 700 tons per hour and graders can pack close to 12,000 cases of eggs per hour.

In FY 2010, egg products accounted for $27.4 million in sales from the two Cal-Maine facilities in Georgia and Texas, respectively.

Cal-Maine recorded total current assets of $338.2 million at the end of FY 2010 compared to current liabilities of $118.0 million. The company carries long-term debt amounting to $104.7 million. Although Cal-Maine did not make any acquisitions in 2010, purchases of property, plant and equipment amounted to $20.8 million.

Cal-Maine Foods is the only publicly traded company dedicated to egg production in the U.S. Statutory quarterly and annual reports and 10-Ks provide an insight into the financial state of the U.S. egg industry before the advent of the shell egg recall.