ATLANTA, Nov. 9, 2010 /PRNewswire-FirstCall/ -- Cagle's,
Inc. (Amex: CGL.A) today reported net income of $3.1 million or $0.67 per share, on net sales of $83.2 million for the second quarter ended
October 2, 2010. For the comparable
quarter a year ago, which was a fourteen week period, the company
reported net income of $0.7 million,
or $0.15 per share, on net sales of
$87.6 million.
Net sales for the second quarter were up 2.3% or $.035 per pound, versus the fourteen week prior
year second quarter adjusted to reflect a thirteen week period, as
we experienced a 19% increase in boneless breast and tenders
production reflecting the successful transition of our Pine Mountain Valley plant to a deboning
facility. Quoted market prices of products for the second quarter
of fiscal 2011 versus the same period last year were mixed as
boneless breast and tenders increased 23.9%, wings decreased 13.0%,
drums decreased 21.0%, leg quarters were 7.5% lower, and whole
birds without giblets were quoted 30.7% higher.
Cost of sales for the second quarter of fiscal 2011 of
$73.5 decreased 3.2% as compared to
the fourteen week prior year second quarter adjusted to reflect a
thirteen week period. Operational efficiencies improved supported
by larger bird size at our Pine
Mountain facility with a second quarter production volume
increase of 5.5% and a year to date increase of 7.5% both as
compared to adjusted 13 week and 26 week periods of fiscal 2010.
Feed ingredient prices for broilers processed in the second quarter
of fiscal 2011, which represented 38% of the total cost of sales,
decreased 6.0% as compared to the second quarter of fiscal
2010.
As we continue the ongoing transformation of our Pine Mountain Valley operation we are focusing
on yield improvements and cost control to maximize our margins as
well as providing higher utilization of assets already in place.
Over the next two years we expect to more than double our
Pine Mountain production, when
compared to volumes reflected in fiscal 2010 results, providing
operational efficiencies throughout all phases of our company.
Our Collinsville facility continues to expand its value added
customer base in the fast food and grocery deli business and is
running at better than 100% capacity.
With reduced availability of competing protein we are cautiously
optimistic for the remainder of this fiscal year. Recent increases
of grain cost will stress margins for all protein producers but
chicken remains an excellent cost effective choice for
consumers.
For the first two quarters of fiscal 2011, the company reported
net income of $6.6 million or
$1.42 per share, on net sales of
$161.7 million. For the comparable
period of fiscal 2010, which was a twenty seven week period, the
company reported net income of $2.0
million, or $0.43 per share,
on net sales of $165.6 million.
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Cagle's, Inc.
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/s/ J. Douglas Cagle
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J. Douglas Cagle
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Chairman, Chief Executive
Officer
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and President
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This press release contains forward-looking statements based
on management's current views and assumptions. Actual results and
events may differ. For a discussion of these matters, please refer
to the "Forward-Looking Statements" in Item 7 of the Company's
2010 Annual Report on Form 10-K and please refer to the cautionary
statement found in Management's Discussion and Analysis of
Financial Condition and Results of Operations in Part I,
Item 2 of the Quarterly Report on Form 10-Q for the Company's
first quarter ended July 3,
2010.
Cagle's,
Inc.
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Condensed
Consolidated Statements of Operations
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(Unaudited)
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(In
Thousands, except net income per share)
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13 wks
ended
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14 wks
ended
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26 wks
ended
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27 wks
ended
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10/02/2010
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10/03/2009
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10/02/2010
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10/03/2009
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Net Sales
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$
83,177
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$
87,570
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$
161,748
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$
165,585
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Costs and
Expenses:
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Cost of Sales
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73,533
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81,819
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141,748
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153,527
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Selling and
Delivery
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2,655
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2,275
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5,102
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4,472
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General and
Administrative
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1,856
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1,985
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3,954
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3,650
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Total Costs and
Expenses
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78,044
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86,079
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150,804
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161,649
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Operating Income
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5,133
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1,491
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10,944
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3,936
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Other Income
(Expense):
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Interest Expense
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(338)
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(415)
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(719)
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(857)
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Other Income (Expense),
Net
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34
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3
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38
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5
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Total Other Income (Expense),
Net
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(304)
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(412)
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(681)
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(852)
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Income Before Income
Taxes
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4,829
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1,079
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10,263
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3,084
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Income Tax
Expense
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1,739
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388
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3,695
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1,110
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Net Income
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$
3,090
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$
691
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$
6,568
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$
1,974
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Weighted-Average Common Shares
Outstanding
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4,616
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4,616
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4,616
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4,617
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Net Income Per Common
Share
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$
0.67
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$
0.15
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$
1.42
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$
0.43
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Cagle's,
Inc.
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Condensed
Consolidated Balance Sheets
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(In
Thousands)
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October 2,
2010
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April
3, 2010
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ASSETS
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(Unaudited)
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Cash
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$
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1,833
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$
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1,872
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Trade Accounts Receivable,
net
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16,615
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15,769
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Inventories
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30,314
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26,065
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Other Current
Assets
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655
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305
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Total Current
Assets
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49,417
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44,011
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Property, Plant, and Equipment,
net
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35,366
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34,869
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Other Assets
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4,927
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8,739
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TOTAL ASSETS
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$
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89,710
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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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2,793
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$
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2,685
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Accounts Payable
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18,293
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16,142
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Other Current
Liabilities
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8,888
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8,424
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Total Current
Liabilities
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29,974
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27,251
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Long-Term Debt
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17,833
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25,033
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Total Stockholders'
Equity
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41,903
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35,335
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TOTAL LIABILITIES &
STOCKHOLDERS' EQUITY
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$
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89,710
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$
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87,619
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SOURCE Cagle's, Inc.