ATLANTA, Aug. 10 /PRNewswire-FirstCall/ -- Cagle's, Inc.
(AMEX: CGL.A) reported net income of $3.5
million or $0.75 per share for
the first quarter of fiscal year 2011 compared to net income of
$1.3 million or $0.28 per share for the first quarter of fiscal
year 2010.
Revenues for the first quarter were $78.6
million up 0.7% reflecting a decrease in pounds sold of 3.1%
and an increase in sales price for poultry of $0.013 per pound as compared to the same period
of fiscal 2010. Quoted market prices for products for the first
quarter of fiscal 2011 versus the same period last year were
mostly down with the exception of boneless breast which increased
9.1%, and breast tenders which increased 7.7%. Wing markets
decreased 11%, drums decreased 17%, leg quarters were 19% lower,
and whole birds without giblets were quoted 7.3% higher.
Cost of sales for the first quarter of fiscal 2011 decreased
4.9% as compared with the same period last year, from $71.7 million to $68.2 million. Feed ingredient
prices for broilers processed in the first quarter of fiscal 2011,
which represented 36% of the total cost of sales, decreased 8.5% as
compared to the first quarter of fiscal 2010.
This quarter marked the successful completion of the company's
transition of its Pine Mountain
Valley plant to a deboning facility which has provided
Cagle's with the opportunity to market products in the boneless
institutional and further processing areas while we continue to
exploit fast food and deli product markets at our Collinsville
complex. This transition involved expenditures of approximately
$5 million for fixed asset and
working capital to support the new product lines and has increased
pounds processed at Pine Mountain
in excess of 20%.
Our shifting product mix and excellent margins on existing
products have provided a good return for the company and it's
stakeholders for our first quarter of fiscal 2011. We expect
protein markets to continue to be strong for the remainder of this
summer supported by low cattle and hog inventories and limited
expansion of poultry supplies.
Cagle's, Inc.
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/s/ J. Douglas Cagle
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J. Douglas Cagle
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Chairman, Chief Executive
Officer
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and President
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This press release contains forward-looking statements based
on management's current views and assumptions. Actual results and
events may differ. For a discussion of these matters, please refer
to the "Forward-Looking Statements" in Item 7 of the Company's
2010 Annual Report on Form 10-K and please refer to the cautionary
statement found in Management's Discussion and Analysis of
Financial Condition and Results of Operations in Part I,
Item 2 of the Quarterly Report on Form 10-Q for the Company's
third quarter ended January 2,
2010.
Cagle's, Inc.
Condensed Consolidated
Statements of Operations
(Unaudited)
(In Thousands, except net income
per share)
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13 Weeks Ended
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July 3, 2010
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June 27, 2009
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Net Sales
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$
78,571
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$
78,015
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Costs and
Expenses:
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Cost of Sales
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68,215
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71,708
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Selling and
Delivery
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2,447
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2,197
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General and
Administrative
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2,098
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1,665
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Total Costs and
Expenses
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72,760
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75,570
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Operating Income
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5,811
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2,445
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Other Income
(Expense):
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Interest Expense
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(381)
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(442)
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Other Income (Expense),
Net
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4
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2
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Total Other Income (Expense),
Net
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(377)
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(440)
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Income Before Income
Taxes
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5,434
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2,005
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Income Tax
Expense
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1,956
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722
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Net Income
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$
3,478
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$
1,283
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Weighted-Average Common Shares
Outstanding
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4,616
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4,619
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Net Income Per Common
Share
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$
0.75
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$
0.28
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Cagle's, Inc.
Condensed Consolidated Balance
Sheets
(In Thousands)
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ASSETS
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July 3, 2010
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April 3, 2010
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(Unaudited)
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Current Assets
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$
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44,831
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$
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44,011
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Property, Plant, and Equipment
(net)
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35,985
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34,869
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Other Assets
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6,768
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8,739
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TOTAL ASSETS
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$
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87,584
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$
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87,619
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LIABILITIES & STOCKHOLDERS'
EQUITY
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Current Maturities of Long-term
Debt
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$
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2,738
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$
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2,685
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Accounts Payable
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17,068
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16,142
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Other Current
Liabilities
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8,963
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8,424
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Total Current
Liabilities
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28,769
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27,251
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Long-Term Debt
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20,002
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25,033
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Total Stockholders'
Equity
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38,813
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35,335
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TOTAL LIABILITIES &
STOCKHOLDERS' EQUITY
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$
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87,584
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$
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87,619
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SOURCE Cagle's, Inc.
Copyright . 10 PR Newswire