Cal-Maine Foods(CALM)2024-04-02 20:21Company Overview - Cal-Maine Foods, Inc. is the largest producer and distributor of fresh shell eggs in the U.S., with a total flock of approximately 42.2 million layers and 10.9 million pullets and breeders[124]. Financial Performance - For the thirty-nine weeks ended February 25, 2023, net income attributable to Cal-Maine Foods, Inc. was 3.38[128]. - The company recorded a net income of 3.37[128]. - Net income for the thirteen weeks ended March 2, 2024, was 349 thousand[223]. - Net income attributable to Cal-Maine Foods, Inc. for the thirteen weeks ended March 2, 2024, was 323,219 thousand, a decline of approximately 54.5%[185]. - Comprehensive income attributable to Cal-Maine Foods, Inc. for the thirty-nine weeks ended March 2, 2024, was 645,622 thousand in the prior year, reflecting a decline of 74.3%[157]. - Net income attributable to Cal-Maine Foods, Inc. for the thirty-nine weeks ended March 2, 2024, was 647.1 million for the same period in fiscal 2023[250]. Revenue and Sales - The company recognizes revenue upon satisfaction of performance obligations, which typically occurs within days of order agreement, with sales predominantly based on independently quoted wholesale market prices[130]. - Total net sales for the thirty-nine weeks ended March 2, 2024, were 2,457.537 million for the same period in fiscal 2023[234]. - Net shell egg sales represented 96.2% of total net sales for the thirty-nine weeks ended March 2, 2024, compared to 96.4% for the same period in the prior year[233]. - Net shell egg sales accounted for 96.9% of total net sales in the third quarter of fiscal 2024, compared to 96.7% in the same quarter of fiscal 2023[257]. - Conventional egg sales decreased by 0.11) for the third quarter and 6.6% (462.998 million for the third quarter compared to 35.0 million reduction in cost of sales compared to the prior year[262]. Cash Flow and Investments - Net cash provided by operating activities for the thirty-nine weeks ended March 2, 2024, was 706,509 thousand for the same period in 2023, indicating a decrease of 66.5%[160]. - The company reported net cash used in investing activities of 397,620 thousand in the same period last year, a reduction of 70.3%[160]. - Cash and cash equivalents at the end of the period were 221,614 thousand at the end of the previous year[160]. - The company made an acquisition of business amounting to 273.9 million for the thirty-nine weeks ended March 2, 2024, compared to 1.720959 billion[125]. - Total assets increased to 1,954,525 thousand on June 3, 2023, representing a growth of approximately 9.2%[183]. - Total current liabilities increased to 182,731 thousand on June 3, 2023, representing an increase of approximately 18%[183]. - The company reported total liabilities of 344,942 thousand on June 3, 2023, reflecting an increase of about 19.6%[183]. Acquisitions and Growth - The company completed the acquisition of a closed broiler processing plant, hatchery, and feed mill from Tyson Foods, Inc. on March 14, 2024[135]. - The company acquired assets of Fassio Egg Farms, which included facilities for approximately 1.2 million laying hens, primarily cage-free[227]. - The company recognized goodwill of $1.8 million as a result of the acquisition of Fassio Egg Farms, Inc., which enhances its commercial shell egg production capacity[214]. Market Conditions and Risks - The company faces risks from factors such as inflation, interest rates, and the impact of HPAI on its business operations[123]. - Approximately 1.6 million laying hens and 337,000 pullets, or about 3.6% of the total flock, were affected by HPAI at a facility in Texas as of April 1, 2024[135]. - The company maintains robust biosecurity programs, but the risk of HPAI outbreaks remains unpredictable[229]. - Ten states have passed legislation mandating minimum space or cage-free requirements for egg production, affecting approximately 27% of the U.S. population[226]. Disclosure and Compliance - The company has effective disclosure controls and procedures as of March 2, 2024, ensuring timely and accurate reporting[104]. - The Chief Executive Officer and Chief Financial Officer conducted an evaluation of the disclosure controls, concluding their effectiveness at a reasonable assurance level[104]. - The company is committed to complying with the Securities and Exchange Commission's rules and forms regarding financial disclosures[104]. - The financial officers are responsible for ensuring that required information is communicated to management for timely decision-making[104]. - The company aims to provide reasonable assurance that all required information is recorded and reported within specified time periods[104]. - The disclosure controls include procedures to accumulate and communicate information to principal executive and financial officers[104]. - The company emphasizes the importance of timely decisions regarding required disclosures[104]. - The evaluation of disclosure controls involved collaboration among various financial officers[104]. - The company is focused on maintaining transparency and accountability in its financial reporting processes[104]. - The effectiveness of the disclosure controls is crucial for the company's compliance with the Exchange Act[104].