Exhibit 99.1
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Contacts:
Dolph Baker, Chairman and CEO
Max P. Bowman, Vice President and CFO
(601) 948-6813
CAL-MAINE FOODS REPORTS SECOND QUARTER FISCAL 2022 RESULTS
RIDGELAND, Miss. (December 28, 2021) - Cal-Maine Foods, Inc. (NASDAQ: CALM) today reported
results for the second quarter of fiscal 2022 (thirteen weeks) and 26-week period ended November
27, 2021.
Net sales in the second quarter of fiscal 2022 increased 12.5 percent to $390.9 million
compared to $347.3 million in the second quarter of fiscal 2021. The Company reported net income
of $1.2 million, or $0.02 per basic and diluted common share, for the second quarter of fiscal 2022,
compared to net income of $12.2 million, or $0.25 per basic and diluted common share, for the
second quarter of fiscal 2021.
For the twenty-six weeks ended November 27, 2021, net sales were $722.6 million compared
to $640.1 million for the prior-year period. The Company reported a net loss of $16.9 million, or
$0.34 per basic and diluted common share, for the twenty-six weeks ended November 27, 2021,
compared with a net loss of $7.2 million, or $0.15 per basic and diluted common share, for the
prior-year period.
pleased to report higher sales for the second quarter of fiscal 2022 compared with the prior year,
driven by improved shell egg pricing. For the second quarter of fiscal 2022, the net average selling
price for all eggs increased 11.9 percent to $1.373 per dozen compared with $1.227 per dozen in
the prior-year period. Our sales volumes also improved compared to the previous record sales
volumes in the second quarter of fiscal 2021. We are pleased that our operating results helped drive
a return to modest profitability in the second quarter despite the impacts of higher costs for feed
ingredients, processing, packaging, transportation and labor.
“In the second quarter of fiscal 2022, our total dozens sold increased to 276.1 million versus
273.7 million in the prior-year period. Food service demand has continued to improve steadily,
resulting in better overall egg supply and demand balance as restaurant traffic increased. In addition,
a stronger export market supported demand for shell eggs and egg products.
“The table egg layer hen inventory reported by the USDA as of December 1, 2021, was 327.8
million, an increase versus the prior year and trending below the five -year-average. The USDA also
reported that the egg-type chick hatch from July 2021 through November 2021 decreased 2.0
percent compared to the prior-year period. As of December 1, 2021, eggs in incubators totaled
48.4 million, down 9.1 percent year over year.
for 41.1 percent of total shell egg revenue, compared with $134.1 million, or 39.7 percent, for the
prior-year quarter. Specialty egg dozens sold were 30.3 percent of total dozens sold in the second
quarter of fiscal 2022 compared with 26.4 percent in the second quarter of fiscal 2021. Higher
specialty egg revenue reflects a 15.7 percent increase in specialty dozens sold in the second quarter
of fiscal 2022 compared to the prior-year period, while specialty egg prices were relatively flat, up
0.4 percent versus the second quarter of fiscal 2021. We continue to focus on offering a favorable
product mix that meets the needs of our customers, including conventional, cage-free, organic and
other specialty eggs and egg products. Consumer preference for specialty eggs, including cage-free
eggs, continues to expand. Cage-free egg sales comprised 24.0 percent of total sales in second
quarter fiscal 2022 and 23.8 percent of total sales fiscal year-to-date.
“We are focusing on opportunities to enhance our product portfolio. During the second quarter
of fiscal 2022, we announced a strategic investment in a new business, MeadowCreek Foods, an egg
products operation located in Neosho, Missouri, with an initial focus on offering hard-cooked eggs.
Cal-Maine Foods will serve as the preferred provider to supply specialty and conventional eggs that
MeadowCreek needs to manufacture egg products. This is an exciting opportunity to expand our
presence in the egg products sector. We believe we have the right team in place to execute this
strategy and look forward to extending our market reach to provide egg products for institutional,
food service and retail needs. Our focus on hard-cooked offerings allows us to harness more value
from medium grade eggs typically produced in the pre-peak phase of lay and augment our expansion
into this nutritious and portable protein category.
CALM Reports Second Quarter Fiscal 2022 Results
Page 2
December 28, 2021
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“We have also worked hard to identify further growth opportunities in line with expanding
consumer demand and state requirements for cage-free eggs. In October, we announced that our Board of
Directors approved a $23.0 million capital project to expand the Company’s cage-free egg production at
our Okeechobee, Florida, facility, which will add capacity for approximately 400,000 cage-free hens and
210,000 pullets. This most recent expansion project in Florida supports our strategy to position Cal-Maine
Foods as an industry leader in meeting the growing demand for specialty egg offerings, including cage-
free eggs.
“We are also pleased to announce that effective December 5, 2021, we made an additional
investment in Southwest Specialty Eggs, LLC, to acquire warehouse and distribution capability to expand
Southwest Specialty Egg’s total customer base in the southern California, Arizona and Nevada markets.
Given the cage-free egg requirement in California will take effect on January 1, 2022, we believe this
investment will be immediately accretive given our enhanced ability to better utilize our cage-free egg
offerings and support the sales and distribution of other specialty eggs into these important retail markets.
“For second quarter fiscal year 2022, we reported an operating loss of $2.1 million compared with
operating income of $14.5 million for the prior-year period. Our results reflect the current inflationary
environment with higher costs for feed, labor, packaging and delivery. Farm production costs per dozen
for the second quarter of fiscal 2022 were up 21.6 percent compared to the second quarter of fiscal 2021,
an increase primarily tied to higher feed costs per dozen produced, which were up 29.0 percent compared
with the prior-year period. For the second quarter of fiscal 2022, the average Chicago Board of Trade
(“CBOT”) daily market price was $5.43 per bushel for corn and $338 per ton for soybean meal,
representing an increase of 38.4 percent and decrease of 5.9 percent, respectively, compared to the average
daily CBOT prices for the second quarter of fiscal 2021. Corn and soybean supplies remained tight relative
to demand, primarily related to higher export demand, as well as weather-related shortfalls in production
and yields. We expect market prices for our primary feed ingredients to remain volatile this fiscal year,
given the ongoing disruptions related to the COVID-19 global pandemic, weather fluctuations,
geopolitical issues and overall reduced carryout levels for primary feed ingredients.
“In spite of current and expected inflationary headwinds, we remain focused on what we can
control by managing our costs and running efficient operations. We are extremely proud of our teams
across our operations who have demonstrated resilience throughout the challenges of the COVID-19
global pandemic and have continued to meet the needs of our customers. Due to their efforts, our
operations have run very well with strong key performance metrics. While we continue to face a
challenging environment, our mission is still the same – to be the most efficient and sustainable producer
of fresh shell eggs and egg products. We are mindful of our essential role to support the nation’s food
supply with nutritious and affordable protein. We are confident we have the right strategy in place to meet
this objective, with a proven operating model that will drive long-term growth. Importantly, we have
sufficient capital to fund internal expansion projects and consider potential acquisitions to support our
strategy. Above all, we will strive to meet the demands of our valued customers and deliver greater value
to our shareholders,” added Baker.
Pursuant to Cal-Maine Foods’ variable dividend policy, for each quarter in which the Company
reports net income, the Company pays a cash dividend to shareholders in an amount equal to
one-third of such quarterly income. Following a quarter for which the Company does not report net
income, the Company will not pay a dividend with respect to that quarter or for a subsequent profitable
quarter until the Company is profitable on a cumulative basis computed from the date of the most recent
quarter for which a dividend was paid. Therefore, the Company will not pay a dividend with respect to
the second quarter of fiscal 2022. As of November 27, 2021, the total cumulative loss to be recovered
before payment of a dividend was $21.1
million.
CALM Reports Second Quarter Fiscal 2022 Results
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December 28, 2021
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Select operating statistics for the second quarter of fiscal 2022 compared with the prior-year period are
shown below:
13 Weeks Ended
26 Weeks Ended
November 27,
2021
November 28,
2020
November 27,
2021
November 28,
2020
Dozen Eggs Sold (000)
276,108
273,651
535,493
537,645
Dozen Eggs Produced (000)
256,786
251,914
493,244
483,075
% Specialty Sales (dozen)
30.3
%
26.4
%
29.6
%
26.2
%
% Specialty Sales (dollars)
41.1
%
39.7
%
42.0
%
42.2
%
Net Average Selling Price (per
dozen)
$
1.373
$
1.227
$
1.308
$
1.154
Net Average Selling Price Specialty
Eggs (per dozen)
$
1.862
$
1.854
$
1.857
$
1.866
Feed Cost (per dozen)
$
0.529
$
0.410
$
0.537
$
0.399
Cal-Maine Foods, Inc. is primarily engaged in the production, grading, packing, marketing and distribution of fresh shell
eggs, including conventional, cage-free, organic, free-range, pasture-raised and nutritionally enhanced eggs. The Company, which is
headquartered in Ridgeland, Mississippi, is the largest producer and distributor of fresh shell eggs in the United States and sells the
majority of its shell eggs in states across the southwestern, southeastern, mid-western and mid-Atlantic regions of the United States.
Statements contained in this press release that are not historical facts are forward-looking statements as that term is defined
in the Private Securities Litigation Reform Act of 1995. The forward-looking statements are based on management’s current intent,
belief, expectations, estimates and projections regarding our company and our industry. These statements are not guarantees of future
performance and involve risks, uncertainties, assumptions and other factors that are difficult to predict and may be beyond our
control. The factors that could cause actual results to differ materially from those projected in the forward-looking statements include,
among others, (i) the risk factors set forth in the Company’s SEC filings (including its Annual Reports on Form 10-K, Quarterly
Reports on Form 10-Q and Current Reports on Form 8-K), (ii) the risks and hazards inherent in the shell egg business (including
disease, pests, weather conditions and potential for recall), (iii) changes in the demand for and market prices of shell eggs and feed
costs, (iv) our ability to predict and meet demand for cage-free and other specialty eggs, (v) risks, changes or obligations that could
result from our future acquisition of new flocks or businesses and risks or changes that may cause conditions to completing a pending
acquisition not to be met, (vi) risks relating to the evolving COVID-19 pandemic, including without limitation increased costs and
growing inflationary rates and (vii) adverse results in pending litigation matters. SEC filings may be obtained from the SEC or the
Company’s website
,
www.calmainefoods.com
. Readers are cautioned not to place undue reliance on forward-looking statements
because, while we believe the assumptions on which the forward-looking statements are based are reasonable, there can be no
assurance that these forward -looking statements will prove to be accurate. Further, the forward-looking statements included herein
are only made as of the respective dates thereof, or if no date is stated, as of the date hereof. Except as otherwise required by law, we
disclaim any intent or obligation to publicly update these forward-looking statements, whether as a result of new information, future
events or otherwise.
CALM Reports Second Quarter Fiscal 2022 Results
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December 28, 2021
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CAL-MAINE FOODS, INC. AND SUBSIDIARIES
FINANCIAL HIGHLIGHTS
(Unaudited)
(In thousands, except per share amounts)
SUMMARY STATEMENTS OF OPERATIONS
13 Weeks Ended
26 Weeks Ended
November 27,
2021
November 28,
2020
November 27,
2021
November 28,
2020
Net sales
$
390,903
$
347,328
$
722,607
$
640,110
Cost of sales
347,156
288,877
672,215
564,894
Gross profit
43,747
58,451
50,392
75,216
Selling, general and administrative
47,780
43,873
94,305
87,838
(Gain) loss on disposal of fixed assets
(1,968)
99
(2,181)
122
Operating income (loss)
(2,065)
14,479
(41,732)
(12,744)
Other income, net
2,533
1,438
8,336
3,136
Income (loss) before income taxes
468
15,917
(33,396)
(9,608)
Income tax (expense) benefit
(677)
3,762
(16,515)
(2,364)
Net loss (loss)
1,145
12,155
(16,881)
(7,244)
Less: Loss attributable to noncontrolling interest
(28)
—
(28)
—
Net income (loss) attributable to Cal-Maine
Foods, Inc.
$
1,173
$
12,155
$
(16,853)
$
(7,244)
Net income (loss) per common share:
Basic
$
0.02
$
0.25
$
(0.34)
$
(0.15)
Diluted
$
0.02
$
0.25
$
(0.34)
$
(0.15)
Weighted average shares outstanding:
Basic
48,857
48,501
48,859
48,501
Diluted
49,016
48,645
48,859
48,501
CALM Reports Second Quarter Fiscal 2022 Results
Page 5
December 28, 2021
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CAL-MAINE FOODS, INC. AND SUBSIDIARIES
FINANCIAL HIGHLIGHTS
(Unaudited)
(In thousands)
SUMMARY BALANCE SHEETS
November 28, 2021
May 29, 2021
ASSETS
Cash and short-term investments
$
85,156
$
169,510
Receivables, net
152,958
126,639
Inventories
236,201
218,375
Prepaid expenses and other current assets
6,814
5,407
Current assets
481,129
519,931
Property, plant and equipment, net
667,250
589,417
Other noncurrent assets
83,615
119,826
Total assets
$
1,231,994
$
1,229,174
LIABILITIES AND STOCKHOLDERS' EQUITY
Accounts payable and accrued expenses
$
115,619
$
89,191
Current portion of lease obligations
769
906
Current liabilities
116,388
90,097
Lease obligations, less current maturities
1,124
1,472
Deferred income taxes and other liabilities
117,059
124,824
Stockholders' equity
997,423
1,012,781
Total liabilities and stockholders' equity
$
1,231,994
$
1,229,174