ATLANTA, Aug. 4 - Cagle's Inc. (Amex: CGL.A) today reported the following results for its first quarter ended July 02, 2005.
Net income for the first quarter of fiscal 2006 was $1.4 million or $.30 per diluted share as compared with a net income of $6.2 million or $1.30 per diluted share for the first quarter of fiscal 2005.
In general, quoted poultry markets for the first three months of our current fiscal year were approximately 28% lower than the first quarter of fiscal 2005. In large part the decrease in market price can be attributed to the commodity boneless breast market, a product segment that Cagle's is transitioning from as we continue to realign our operations to serve the Deli and Fast Food markets which require a smaller, more tender bird. This shift in Cagle's product mix allowed us to offset a portion of the decrease in quoted markets as our average price per pound reflected a reduction of only 17% for the first quarter of 2006 versus the same period in fiscal 2005. In support of margins, feed prices for the first three months of fiscal 2006 were 23% less than the same period last year.
Cagle's Inc.
J. Douglas Cagle
Chairman, CEO
Forward-Looking Statements:
Statements contained in this press release that state the intentions, hopes, beliefs, anticipations, expectations or predictions of the future of Cagle's Inc. and its management are forward looking statements. It is important to note that the actual results could differ materially from those projected. Factors that could cause actual results to differ materially from those project in such forward-looking statements include: additional outbreaks of avian influenza or other diseases affecting the production performance and/or marketability of the Company's poultry products; matters affecting the poultry industry in general, including fluctuations in the commodity prices of feed ingredients and chicken; contamination of our products leading to product liability claims and recalls; exposures to risks related to property damage and injuries to persons for which insurance is limited and potentially inadequate; management of our cash resources, particularly in light of our substantial leverage; trade barriers; changes in laws or regulations affecting our operations as well as competitive factors and pricing pressures; and the impact of uncertainties of litigations as well as other risk factors.
Cagle's Inc.
Consolidated Statements of Income (in thousands except per share amounts)
(Unaudited)
Three Months Ended July 02, 2005 July 03, 2004
Net Sales $61,593 $67,152
Cost and Expenses:
Cost of Sales 56,981 55,055
Selling, general, and administrative 3,240 2,921
Total Cost and Expenses 60,221 57,976
Operating Income (Loss) 1,372 9,176
Other Income (Expense):
Interest (624) (701)
Miscellaneous 525 13
Total Other Income (Expense) Net (99) (688)
Earnings from unconsolidated affiliates 975 1,116
Income (loss) before income taxes 2,248 9,604
Income tax expense (benefit) 809 3,442
Net Income (Loss) $1,439 $6,162
Net Income (Loss) per share $.30 $ 1.30
Cagle's Inc.
Condensed Consolidated Balance Sheet (in thousands)
(Unaudited)
ASSETS July 02, 2005 July 03, 2004
Current assets $33,581 $36,124
Investments in affiliates 6,781 5,092
Other assets 9,945 14,347
Property, plant, and equipment, net 45,007 44,496
Total Assets $95,314 $99,059
LIABILITIES AND STOCKHOLDER'S EQUITY
Current maturities of long-term debt $ 3,488 $2,920
Trade accounts payable 11,060 13,819
Other current liabilities 6,293 8,423
Total current liabilities 20,841 25,162
Long-term debt less current maturities 27,228 32,043
Other non-current Liabilities - 1,423
Total Stockholders Equity 47,245 40,428
LIABILITIES AND STOCKHOLDER'S EQUITY $95,314 $99,059
