CalMaine Foods Inc. (CALM, Financial) filed Quarterly Report for the period ended 2010-08-28.
Calmaine Foods Inc. has a market cap of $679.7 million; its shares were traded at around $28.51 with a P/E ratio of 10.1 and P/S ratio of 0.8. The dividend yield of Calmaine Foods Inc. stocks is 4.1%.CALM is in the portfolios of John Buckingham of Al Frank Asset Management, Inc., Chuck Royce of Royce& Associates, Jim Simons of Renaissance Technologies LLC, John Keeley of Keeley Fund Management.
Cost of sales consists of costs directly related to production and processing of shell eggs, including feed costs, and purchases of shell eggs from outside egg producers. Cost of sales for the first quarter of fiscal 2011 was $157.7 million, a decrease of $11.7 million, or 6.9%, as compared to cost of sales of $169.4 million for the first quarter of fiscal 2010. The decrease is due to the recognition of business interruption proceeds received from our insurance carriers, decreases in feed costs and decreases in the cost of egg purchases from outside egg producers. Egg purchases from outside egg producers were lower due to lower average Urner Barry quoted prices for eggs during the quarter and a change in the mix of outside eggs purchased. Feed cost per dozen for the fiscal 2011 first quarter was $.334, compared to $.357 per dozen for the comparable fiscal 2010 first quarter, a decrease of 6.4%. The decreases in feed costs and decreases in costs for outside egg purchases in addition to the reduction of cost of sales for the business interruption proceeds received from our insurance carriers resulted in an increase in gross profit from 9.7% of net sales for the quarter ended August 29, 2009 to 17.2% of net sales for the current quarter ended August 28, 2010.
Selling, general and administrative expenses include costs of marketing, distribution, accounting and corporate overhead. Selling, general and administrative expense for the first quarter of fiscal 2010 was $24.7 million, an increase of $1.2 million, or 5.1%, as compared to the expense of $23.5 million for the first quarter of fiscal 2010. Stock based compensation plans expense decreased. The calculation of the stock based compensation plans expense is dependent on the closing stock price of the Company s stock. From the fiscal year ended May 29, 2010 to August 28, 2010, the stock price declined from $32.37 at May 29, 2010 to $31.50 at August 28, 2010, which is a 2.7% decrease. From the fiscal year ended May 30, 2009 to August 29, 2009, the stock price increased from $24.37 at May 30, 2009 to $28.95 at August 29, 2009, which is an 18.8% increase. The increase in specialty egg expense is attributable to the increase in the dozens of specialty eggs sold this year as compared to last fiscal year and additional promotional expenses. Payroll and overhead increased as compared to the same period the prior year due to higher performance based bonuses in the current period. Other expenses, which include expenses for supplies, repairs, professional fees, and other expenses, decreased from the same period of the prior year. Delivery expense increased slightly due to increased fuel costs and the increased costs paid for the use of outside trucking companies. As a percent of net sales, selling, general and administrative expense increased from 12.5% for the fiscal 2010 first quarter to 13.0% for the fiscal 2011 first quarter.
Other income (expense) consists of income (expenses) not directly charged to, or related to, operations such as interest expense and equity in income (loss) of affiliates for equity method investments. Other expense for the first quarter ended August 28, 2010 was $956,000, a decrease of $602,000, as compared to $1.6 million for the quarter ended August 29, 2009. For the first quarter of fiscal 2010, net interest expense decreased $124,000. For the first quarter of fiscal 2011, other income increased $478,000, as compared to the first quarter of fiscal 2010. This increase is attributable to increased equity in income of affiliates. In connection with our ongoing construction activities, for the thirteen weeks ended August 28, 2010, we capitalized $84,000 of interest expense, and we capitalized $57,000 of interest expense for the same period ended August 29, 2009. As a percent of net sales, other expense decreased from .8% for the fiscal 2010 first quarter to .5% for the fiscal 2011 first quarter.
Our working capital at August 28, 2010 was $223.7 million compared to $220.2 million at May 29, 2010. The calculation of working capital is defined as current assets less current liabilities. Our current ratio was 3.35 at August 28, 2010 as compared with 2.87 at May 29, 2010. The current ratio is calculated by dividing current assets by current liabilities. Our need for working capital generally is highest in the last and first fiscal quarters ending in May and August, respectively, when egg prices are normally at seasonal lows. Seasonal borrowing needs frequently are higher during these quarters than during other fiscal quarters. We have $5.1 million in standby letters of credit outstanding, which are collateralized with cash. Our long-term debt at August 28, 2010, including current maturities, amounted to $116.2 million, as compared to $134.7 million at May 29, 2010.
For the thirteen weeks ended August 28, 2010, $1.7 million in net cash was provided by operating activities. This compares to net cash used in operations of $5.4 million for the thirteen weeks ended August 29, 2009. In the first 2011 fiscal quarter, approximately $51.3 million was provided from the sale of short-term investments, $39.2 million was used for the purchase of short-term investments and net $1.1 million was provided by notes receivable and investments in nonconsolidated subsidiaries. Approximately $9,000 was provided from disposal of property, plant and equipment and $6.5 million was used for purchases of property, plant and equipment. Approximately $7.0 million was used for payment of dividends on common stock and $18.4 million was used for principal payments on long-term debt. Approximately $71,000 was received from the issuance of common stock from treasury after the exercise of 12,000 stock options having a strike price of $5.93 per share. The net result of these activities was a decrease in cash of approximately $17.0 million since May 29, 2010.
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Calmaine Foods Inc. has a market cap of $679.7 million; its shares were traded at around $28.51 with a P/E ratio of 10.1 and P/S ratio of 0.8. The dividend yield of Calmaine Foods Inc. stocks is 4.1%.CALM is in the portfolios of John Buckingham of Al Frank Asset Management, Inc., Chuck Royce of Royce& Associates, Jim Simons of Renaissance Technologies LLC, John Keeley of Keeley Fund Management.
Highlight of Business Operations:
Approximately 95% of our net sales consisted of shell egg sales and approximately 3% was for sales of egg products, with the 2% balance consisting of sales of incidental feed and feed ingredients. Net sales for the first quarter of fiscal 2011 were $190.4 million, an increase of $2.7 million, or 1.4 %, as compared to net sales of $187.7 million for the first quarter of fiscal 2010. Total dozen eggs sold and egg selling prices increased in the current fiscal 2011 quarter as compared to the same fiscal 2010 quarter. Dozens sold for the 2011 current quarter were 194.0 million dozen, an increase of 1.0 million dozen, or 0.5%, as compared to 193.0 million dozen sold for the first quarter of fiscal 2010. Our net average selling price per dozen for the fiscal 2011 first quarter was $.930, compared to $.922 for the first quarter of fiscal 2010, an increase of 0.9%. Our net average selling price is the blended price for all sizes and grades of shell eggs, including non-graded egg sales, breaking stock and undergrades.Cost of sales consists of costs directly related to production and processing of shell eggs, including feed costs, and purchases of shell eggs from outside egg producers. Cost of sales for the first quarter of fiscal 2011 was $157.7 million, a decrease of $11.7 million, or 6.9%, as compared to cost of sales of $169.4 million for the first quarter of fiscal 2010. The decrease is due to the recognition of business interruption proceeds received from our insurance carriers, decreases in feed costs and decreases in the cost of egg purchases from outside egg producers. Egg purchases from outside egg producers were lower due to lower average Urner Barry quoted prices for eggs during the quarter and a change in the mix of outside eggs purchased. Feed cost per dozen for the fiscal 2011 first quarter was $.334, compared to $.357 per dozen for the comparable fiscal 2010 first quarter, a decrease of 6.4%. The decreases in feed costs and decreases in costs for outside egg purchases in addition to the reduction of cost of sales for the business interruption proceeds received from our insurance carriers resulted in an increase in gross profit from 9.7% of net sales for the quarter ended August 29, 2009 to 17.2% of net sales for the current quarter ended August 28, 2010.
Selling, general and administrative expenses include costs of marketing, distribution, accounting and corporate overhead. Selling, general and administrative expense for the first quarter of fiscal 2010 was $24.7 million, an increase of $1.2 million, or 5.1%, as compared to the expense of $23.5 million for the first quarter of fiscal 2010. Stock based compensation plans expense decreased. The calculation of the stock based compensation plans expense is dependent on the closing stock price of the Company s stock. From the fiscal year ended May 29, 2010 to August 28, 2010, the stock price declined from $32.37 at May 29, 2010 to $31.50 at August 28, 2010, which is a 2.7% decrease. From the fiscal year ended May 30, 2009 to August 29, 2009, the stock price increased from $24.37 at May 30, 2009 to $28.95 at August 29, 2009, which is an 18.8% increase. The increase in specialty egg expense is attributable to the increase in the dozens of specialty eggs sold this year as compared to last fiscal year and additional promotional expenses. Payroll and overhead increased as compared to the same period the prior year due to higher performance based bonuses in the current period. Other expenses, which include expenses for supplies, repairs, professional fees, and other expenses, decreased from the same period of the prior year. Delivery expense increased slightly due to increased fuel costs and the increased costs paid for the use of outside trucking companies. As a percent of net sales, selling, general and administrative expense increased from 12.5% for the fiscal 2010 first quarter to 13.0% for the fiscal 2011 first quarter.
Other income (expense) consists of income (expenses) not directly charged to, or related to, operations such as interest expense and equity in income (loss) of affiliates for equity method investments. Other expense for the first quarter ended August 28, 2010 was $956,000, a decrease of $602,000, as compared to $1.6 million for the quarter ended August 29, 2009. For the first quarter of fiscal 2010, net interest expense decreased $124,000. For the first quarter of fiscal 2011, other income increased $478,000, as compared to the first quarter of fiscal 2010. This increase is attributable to increased equity in income of affiliates. In connection with our ongoing construction activities, for the thirteen weeks ended August 28, 2010, we capitalized $84,000 of interest expense, and we capitalized $57,000 of interest expense for the same period ended August 29, 2009. As a percent of net sales, other expense decreased from .8% for the fiscal 2010 first quarter to .5% for the fiscal 2011 first quarter.
Our working capital at August 28, 2010 was $223.7 million compared to $220.2 million at May 29, 2010. The calculation of working capital is defined as current assets less current liabilities. Our current ratio was 3.35 at August 28, 2010 as compared with 2.87 at May 29, 2010. The current ratio is calculated by dividing current assets by current liabilities. Our need for working capital generally is highest in the last and first fiscal quarters ending in May and August, respectively, when egg prices are normally at seasonal lows. Seasonal borrowing needs frequently are higher during these quarters than during other fiscal quarters. We have $5.1 million in standby letters of credit outstanding, which are collateralized with cash. Our long-term debt at August 28, 2010, including current maturities, amounted to $116.2 million, as compared to $134.7 million at May 29, 2010.
For the thirteen weeks ended August 28, 2010, $1.7 million in net cash was provided by operating activities. This compares to net cash used in operations of $5.4 million for the thirteen weeks ended August 29, 2009. In the first 2011 fiscal quarter, approximately $51.3 million was provided from the sale of short-term investments, $39.2 million was used for the purchase of short-term investments and net $1.1 million was provided by notes receivable and investments in nonconsolidated subsidiaries. Approximately $9,000 was provided from disposal of property, plant and equipment and $6.5 million was used for purchases of property, plant and equipment. Approximately $7.0 million was used for payment of dividends on common stock and $18.4 million was used for principal payments on long-term debt. Approximately $71,000 was received from the issuance of common stock from treasury after the exercise of 12,000 stock options having a strike price of $5.93 per share. The net result of these activities was a decrease in cash of approximately $17.0 million since May 29, 2010.
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