Cal-Maine Foods, Inc. Files 10-Q for Period Ending March 2, 2024

TL;DR

<b>Cal-Maine Foods, Inc. filed its quarterly report (10-Q) for the period ending March 2, 2024, detailing its financial performance.</b>

AI Summary

CAL-MAINE FOODS INC (CALM) filed a Quarterly Report (10-Q) with the SEC on April 2, 2024. Cal-Maine Foods, Inc. reported its Q3 results for the fiscal year ending June 1, 2024. The filing covers the period ending March 2, 2024. The company's fiscal year ends on June 1st. The filing is a 10-Q, indicating a quarterly report. The company's IRS number is 640500378.

Why It Matters

For investors and stakeholders tracking CAL-MAINE FOODS INC, this filing contains several important signals. This 10-Q filing provides investors with an updated view of Cal-Maine Foods' financial health and operational performance during the third quarter of its fiscal year. Understanding the details within this report is crucial for assessing the company's current market position and future prospects in the egg production industry.

Risk Assessment

Risk Level: low — CAL-MAINE FOODS INC shows low risk based on this filing. The filing is a standard quarterly report (10-Q) and does not contain immediate red flags or significant deviations from typical reporting.

Analyst Insight

Review the detailed financial statements and management discussion within the 10-Q to understand revenue, expenses, and profitability trends for the quarter.

Key Numbers

• 2024-03-02 — Period End Date (10-Q Filing)
• 2024-04-02 — Filing Date (10-Q Filing)
• 0601 — Fiscal Year End (Company Information)
• 640500378 — IRS Number (Company Information)

Key Players & Entities

• CAL-MAINE FOODS INC (company) — Filer
• 0001562762-24-000077 (other) — Accession Number
• 20240302 (date) — Conformed Period of Report
• 20240402 (date) — Filed as of Date
• 0000016160 (company) — Central Index Key
• 640500378 (other) — IRS Number
• DE (other) — State of Incorporation
• 0601 (date) — Fiscal Year End

FAQ

Industry Context

Cal-Maine Foods is a major producer and distributor of shell eggs in the United States. The company operates within the highly competitive and price-sensitive agricultural sector.

Regulatory Implications

As a publicly traded company, Cal-Maine Foods is subject to the reporting requirements of the Securities and Exchange Commission (SEC), including the filing of quarterly (10-Q) and annual (10-K) reports.

What Investors Should Do

1. Analyze the financial statements (Balance Sheet, Income Statement, Cash Flow) for the quarter ending March 2, 2024.
2. Review the Management's Discussion and Analysis of Financial Condition and Results of Operations for insights into performance drivers.
3. Check for any new or updated risk factors disclosed in the filing.

Key Dates

• 2024-03-02: Period End Date — End of the reporting quarter for the 10-Q filing.
• 2024-04-02: Filing Date — Date the 10-Q report was officially submitted to the SEC.

Year-Over-Year Comparison

This is a 10-Q filing, which is a standard quarterly report. A comparison to the previous quarter's 10-Q or the prior year's 10-Q would be necessary for a detailed 'vs last filing' analysis.

Key Financial Figures

• $0.01 — ange on which registered Common Stock, $0.01 par value per share CALM The NASDAQ

Filing Documents

• calm-20240302.htm (10-Q) — 1367KB
• exhibit311.htm (EX-31.1) — 13KB
• exhibit312.htm (EX-31.2) — 13KB
• exhibit32.htm (EX-32) — 8KB
• 0001562762-24-000077.txt (&nbsp;) — 6246KB
• calm-20240302.xsd (EX-101.SCH) — 36KB
• calm-20240302_cal.xml (EX-101.CAL) — 55KB
• calm-20240302_def.xml (EX-101.DEF) — 151KB
• calm-20240302_lab.xml (EX-101.LAB) — 491KB
• calm-20240302_pre.xml (EX-101.PRE) — 267KB
• calm-20240302_htm.xml (XML) — 1130KB

Financial Statements

Financial Statements Condensed Consolidated Balance Sheets - March 2, 2024 and June 3, 2023 3 Condensed Consolidated Statements of Income - Thirteen and Thirty-nine Weeks Ended March 2, 2024 and February 25, 2023 4 Condensed Consolidated Statements of Comprehensive Income - Thirteen and Thirty-nine Weeks Ended March 2, 2024 and February 25, 2023 5 Condensed Consolidated Statements of Cash Flows - Thirty-nine Weeks Ended March 2, 2024 and February 25, 2023 6 Notes to Condensed Consolidated Financial Statements 7 Item 2.

Management's Discussion and Analysis of

Management's Discussion and Analysis of Financial Condition and Results of Operations 20 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 31 Item 4.

Controls and Procedures

Controls and Procedures 31 Part II. Other Information Item 1.

Legal Proceedings

Legal Proceedings 32 Item 1A.

Risk Factors

Risk Factors 32 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 32 Item 6. Exhibits 32

Signatures

Signatures 33 Index 3 PART I. FINANCIAL INFORMATION ITEM 1.

FINANCIAL STATEMENTS

FINANCIAL STATEMENTS Cal-Maine Foods, Inc. and Subsidiaries Condensed Consolidated Balance Sheets (In thousands, except for par value amounts) (Unaudited) March 2, 2024 June 3, 2023 Assets Current assets: Cash and cash equivalents $ 367,123 $ 292,824 Investment securities available-for-sale 327,720 355,090 Trade and other receivables, net 212,851 120,247 Income tax receivable 33,771 66,966 Inventories 269,244 284,418 Prepaid expenses and other current assets 6,883 5,380 Total current assets 1,217,592 1,124,925 Property, plant & equipment, net 826,573 744,540 Investments in unconsolidated entities 16,388 14,449 Goodwill 45,776 44,006 Intangible assets, net 16,534 15,897 Other long-term assets 10,666 10,708 Total Assets $ 2,133,529 $ 1,954,525 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $ 95,610 $ 82,590 Accrued wages and benefits 25,721 38,733 Accrued income taxes payable 30,113 8,288 Dividends payable 48,891 37,130 Accrued expenses and other liabilities 15,354 15,990 Total current liabilities 215,689 182,731 Other noncurrent liabilities 30,740 9,999 Deferred income taxes, net 166,141 152,212 Total liabilities 412,570 344,942 Commitments and contingencies - see Note 10 — — Stockholders' equity: Common stock ($ 0.01 par value): Common stock - authorized 120,000 shares, issued 70,261 shares 703 703 Class A convertible common stock - authorized and issued 4,800 shares 48 48 Paid-in capital 75,226 72,112 Retained earnings 1,680,886 1,571,112 Accumulated other comprehensive loss, net of tax ( 1,514 ) ( 2,886 ) Common stock in treasury at cost – 26,022 shares at March 2, 2024 and 26,077 shares at June 3, 2023 ( 31,597 ) ( 30,008 ) Total Cal-Maine Foods, Inc. stockholders' equity 1,723,752 1,611,081 Noncontrolling interest in consolidated entity ( 2,793 ) ( 1,498 ) Total stockholders' equity 1,720,959 1,609,583 Tota

financial statements

financial statements and accompanying notes. Actual results could differ from those estimates. Investment Securities The Company has determined that its debt securities are available-for-sale investments. We classify these securities as current because the amounts invested are available for current operations. Available -for-sale securities are carried at fair value, based on quoted market prices as of the balance sheet date, with unrealized gains and losses recorded in other comprehensive income. The amortized cost of debt securities is adjusted for amortization of premiums and accretion of discounts to maturity and is recorded in interest income. The Company regularly evaluates changes to the rating of its debt securities by credit agencies and economic conditions to assess and record any expected credit losses through allowance for credit losses, limited to the amount that fair value was less than the amortized cost basis. Investments in mutual funds are recorded at fair value and are classified as "Other long-term assets" in the Company's Condensed Consolidated Balance Sheets. Unrealized gains and losses for equity securities are recorded in other income (expenses) as Other, net in the Company's Condensed Consolidated Statements of Income. The cost basis for realized gains and losses on available-for-sale securities is determined by the specific identification method. Gains and losses are recognized in other income (expenses) as Other, net in the Company's Condensed Consolidated are recorded in interest income. Trade Receivables Trade receivables are stated at their carrying values, which include a reserve for credit losses. As of March 2, 2024 and June 3, 2023, reserves for credit losses were $ 605 thousand and $ 579 thousand,

business

business acquisitions, which include franchise rights, customer relationships, non-compete agreements, trademark and right of use intangibles. They are amortized over their estimated useful lives of 5 to 15 years. The gross cost and accumulated amortization of intangible assets are removed when the recorded amounts are fully amortized and the asset is no longer in use or the contract has expired. When certain events or changes in operating conditions occur, asset lives may be adjusted and an impairment assessment may be performed on the recoverability of the carrying amounts. Indefinite life assets are recorded at fair value in business acquisitions and represents water rights. They are not amortized, but are reviewed for impairment at least annually or more frequently if impairment indicators arise. Dividends Payable We accrue dividends at the end of each quarter according to the Company's dividend policy adopted by its Board of Directors. The Company pays a dividend to shareholders of its Common Stock and Class A Common Stock on a quarterly basis for each quarter for which the Company reports net income attributable to Cal-Maine Foods, Inc. computed in accordance with GAAP in an amount equal to one-third (1/3) of such quarterly income. Dividends are paid to shareholders of record as of the 60th day following the last day of such quarter, except for the fourth fiscal quarter. For the fourth quarter, the Company pays dividends to shareholders of record on the 65th day after the quarter end. Dividends are payable on the 15th day following the record date. Following a quarter for which the Company does not report net income attributable to Cal-Maine Foods, Inc., the Company will not pay a dividend for a subsequent profitable quarter until the Company is profitable on a cumulative basis computed from the date of the most recent quarter for which a div

financial statements

financial statements. If the assessment indicates a potentially material loss contingency is not probable, but is reasonably possible, or is probable but cannot be estimated, then the nature of the contingent liability, together with an estimate of the range of possible loss if determinable and material, would be disclosed. Loss contingencies considered remote are generally not disclosed unless they involve guarantees, in which case the nature of the guarantee would be disclosed. The Company expenses the costs of litigation as they are incurred. New Accounting Pronouncements and Policies No new accounting pronouncement issued or effective during the fiscal year had or is expected to have a material impact on our Consolidated Financial Statements. Note 2 - Acquisition Effective September 30, 2023 , the Company acquired the assets of Fassio Egg Farms, Inc. ("Fassio"), related to its commercial shell egg production and processing business. Fassio owns and operates commercial shell egg production and processing facilities with a capacity at the time of acquisition of approximately 1.2 million laying hens, primarily cage-free, a feed mill, pullets, a fertilizer production and composting operation and land located in Erda, Utah, outside Salt Lake City. The Company accounted for the acquisition as a business combination. The following table summarizes the consideration paid for the Fassio assets and the amounts of assets acquired and liabilities assumed recognized at the acquisition date (in thousands): Cash consideration paid $ 53,746 Fair value of contingent consideration 1,000 Total estimated purchase consideration 54,746 Recognized amounts of identifiable assets acquired and liabilities assumed Inventory $ 6,164 Property, plant and equipment 44,540 Intangible assets 2,272 Other long-term assets 143 Liabilities assumed ( 143 ) Total identifiable net assets

business

business meeting certain return on profitability milestones over a three-year period, commencing on the date of the acquisition. The fair value of the contingent consideration is estimated using a discounted cash flow model. Key assumptions and unobservable inputs that require significant judgement used in the estimate include weighted average cost of capital, egg prices, projected revenue and expenses over which the contingent considered is measured, and the probability assessments with respect to the likelihood of achieving the forecasted projections. A range of potential outcomes cannot be reasonably estimated due to market volatility of egg prices. Goodwill represents the excess of the purchase price of the acquired

business

business over the acquisition date fair value of the net assets acquired. Goodwill recorded in connection with the Fassio acquisition is primarily attributable to improved efficiencies from integrating the assets of Fassio with the operations of the Company. The Company recognized goodwill of $ 1.8 million as a result of the acquisition. Note 3 - Investment Securities The following represents the Company's investment securities as of March 2, 2024 and June 3, 2023 (in thousands): March 2, 2024 Amortized Cost Unrealized Gains Unrealized Losses Estimated Fair Value Municipal bonds $ 6,147 $ — $ 63 $ 6,084 Commercial paper 42,864 — 39 42,825 Corporate bonds 121,430 — 367 121,063 Certificates of deposits 1,830 — 2 1,828 US government and agency obligations 115,165 — 199 114,966 Asset backed securities 9,418 85 — 9,503 Treasury bills 31,455 — 4 31,451 Total current investment securities $ 328,309 $ 85 $ 674 $ 327,720 Mutual funds $ 1,108 $ 16 $ — $ 1,124 Total noncurrent investment securities $ 1,108 $ 16 $ — $ 1,124 June 3, 2023 Amortized Cost Unrealized Gains Unrealized Losses Estimated Fair Value Municipal bonds $ 16,571 $ — $ 275 $ 16,296 Commercial paper 56,486 — 77 56,409 Corporate bonds 139,979 — 1,402 138,577 Certificates of deposits 675 — — 675 US government and agency obligations 101,240 — 471 100,769 Asset backed securities 13,459 — 151 13,308 Treasury bills 29,069 — 13 29,056 Total current investment securities $ 357,479 $ — $ 2,389 $ 355,090 Mutual funds $ 2,172 $ — $ 91 $ 2,081 Total noncurrent investment securities $ 2,172 $ — $ 91 $ 2,081 Available-for-sale Proceeds from sales and maturities of investment securities available-for-sale were $ 273.9 million and $ 132.7 million during the thirty-nine weeks ended March 2, 2024 and February 25, 2023, resp

View Full Filing

View this 10-Q filing on SEC EDGAR