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Cal-Maine Foods Q1 Net income Rises Sharply (CALM)

Mississippi-based, one of the largest Egg producer in the US that is primarily engaged in the production, grading, packing and sale of fresh shell eggs, including conventional, cage-free, organic and nutritionally-enhanced eggs, Cal-Mine Foods Inc. (NASDAQ: CALM) reported results for the first quarter of 2013 ended September 1, 2012.

CALM’s sales increased 12% to $272.93 million. Operating Income increased substantially by 162% to $15.6 million from that of $5.96 million. Net income rose 202% to $9.42 million from $3.12 million.

Though the average volume of eggs sold was approximately the same, the increase in average market price of eggs per dozen from $1.12 to $1.24 contributed to the increase in revenues. CALM’s specialty egg sales also increased to over 16.1% of dozens sold.

In spite of the increase in feeding costs by 5% from $0.484 per dozen to $0.510 per dozen, operating income increased drastically by 162%; this is mainly due to the decrease in the operating costs including administrative and selling costs.

CALM recently acquired the egg production assets of Pilgrim’s Pride Corporation (NYSE: PPC) at Pittsburg, Texas. This facility has a capacity to produce 1.4 million laying hens. It has yet to start with the production plan for this unit.

Chairman and CEO of CALM, Dolph Baker forecasts that the feeding costs will remain high for the next quarter, mainly due to the damage happened to the national corn and grain crops caused by the extreme summer drought conditions. Baker also believes that there will be a strong demand for eggs as it is a busy holiday season in the States.

As on Sep 1, 2012, CALM had total assets of $712.95 million, including cash and its equivalents worth $209.27 million. Total liabilities were $227 million, among which 54% were current and the remaining was long term. Total Stockholders’ equity was $485.95 million.

CALM will pay a cash dividend of approximately $0.13 per share to holders of its common and Class A common stock. The dividend is payable November 15, 2012, to shareholders of record on October 31, 2012.

At last check, CALM shares were trading 0.91% higher at $45.35 on above average volume of 232,038.


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