Cal-Maine Foods Q1 2024 Update

TL;DR

Cal-Maine Foods Q1 2024 results are in. Check the 10-Q for details.

AI Summary

Cal-Maine Foods Inc. reported its first quarter results for the period ending August 31, 2024. The company's financial performance for this quarter is detailed in the 10-Q filing. Specific financial figures and operational highlights for the period are available within the document.

Why It Matters

This filing provides insight into the financial health and operational performance of a major egg producer, impacting consumers and the broader food supply chain.

Risk Assessment

Risk Level: low — This is a routine quarterly filing providing standard financial disclosures.

Key Numbers

• 0.01 — EPS (Earnings per share for the quarter)
• 120000 — Shares Outstanding (Total common shares outstanding)
• 70261 — Net Income (Net income for the quarter)

Key Players & Entities

• CAL-MAINE FOODS INC (company) — Filer
• 20240831 (date) — Reporting period end date
• 20241001 (date) — Filing date

FAQ

Key Financial Figures

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

Filing Documents

• calm-20240831.htm (10-Q) — 1042KB
• exhibit311.htm (EX-31.1) — 13KB
• exhibit312.htm (EX-31.2) — 13KB
• exhibit32.htm (EX-32) — 7KB
• 0001562762-24-000230.txt ( ) — 5348KB
• calm-20240831.xsd (EX-101.SCH) — 37KB
• calm-20240831_cal.xml (EX-101.CAL) — 55KB
• calm-20240831_def.xml (EX-101.DEF) — 160KB
• calm-20240831_lab.xml (EX-101.LAB) — 504KB
• calm-20240831_pre.xml (EX-101.PRE) — 274KB
• calm-20240831_htm.xml (XML) — 828KB

Financial Statements

Financial Statements Condensed Consolidated Balance Sheets - August 31, 2024 and June 1, 2024 3 Condensed Consolidated Statements of Income - Thirteen Weeks Ended August 31, 2024 and September 2, 2023 4 Condensed Consolidated Statements of Comprehensive Income - Thirteen Weeks Ended August 31, 2024 and September 2, 2023 5 Condensed Consolidated Statements of Cash Flows - Thirteen Weeks Ended August 31, 2024 and September 2, 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 17 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 26 Item 4.

Controls and Procedures

Controls and Procedures 26 Part II. Other Information Item 1.

Legal Proceedings

Legal Proceedings 27 Item 1A.

Risk Factors

Risk Factors 27 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 27 Item 6. Exhibits 27

Signatures

Signatures 28 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) August 31, 2024 June 1, 2024 Assets Current assets: Cash and cash equivalents $ 181,667 $ 237,878 Investment securities available-for-sale 571,923 574,499 Trade and other receivables, net 272,092 151,983 Income tax receivable 10,459 10,459 Inventories 293,182 261,782 Prepaid expenses and other current assets 14,156 5,238 Total current assets 1,343,479 1,241,839 Property, plant & equipment, net 960,070 857,234 Investments in unconsolidated entities 11,753 11,195 Goodwill 45,776 45,776 Intangible assets, net 16,175 15,996 Other long-term assets 12,755 12,721 Total Assets $ 2,390,008 $ 2,184,761 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $ 128,600 $ 75,862 Accrued wages and benefits 18,961 32,971 Accrued income taxes payable 106,288 43,348 Dividends payable 49,971 37,760 Accrued expenses and other liabilities 21,595 37,802 Total current liabilities 325,415 227,743 Other noncurrent liabilities 36,854 17,109 Deferred income taxes, net 128,676 142,866 Total liabilities 490,945 387,718 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 77,503 76,371 Retained earnings 1,856,405 1,756,395 Accumulated other comprehensive loss, net of tax ( 474 ) ( 1,773 ) Common stock in treasury at cost – 26,024 shares at August 31, 2024 and 26,022 shares at June 1, 2024 ( 31,632 ) ( 31,597 ) Total Cal-Maine Foods, Inc. stockholders' equity 1,902,553 1,800,147 Noncontrolling interest in consolidated entity ( 3,490 ) ( 3,104 ) Total stockholders' equity 1,899,063 1,797,043

financial statements

financial statements and accompanying notes. Actual results could differ from those estimates. Investment Securities Available-for-Sale 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. 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 August 31, 2024 and June 1, 2024, reserves for credit losses were $ 716 thousand and $ 490 thousand, respectively. The Company extends credit to customers based on an evaluation of each customer's financial condition and credit history. Collateral is generally not required. The Company minimizes exposure to counter party credit risk through credit analysis and approvals, credit limits, and monitor

legal proceedings

legal proceedings that are pending against the Company or unasserted claims that may result in such proceedings, the Company's legal counsel evaluates the perceived merits of any

legal proceedings

legal proceedings or unasserted claims as well as the perceived merits of the amount of relief sought or expected to be sought therein. If the assessment of a contingency indicates it is probable that a material loss has been incurred and the amount of the liability can be estimated, the estimated liability would be accrued in the Company's consolidated financial 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. Index 9 Note 2 - Acquisition Effective June 28, 2024 , the Company acquired substantially all of the commercial shell egg production, processing and egg products breaking facilities of ISE America, Inc. and certain of its affiliates ("ISE"). The assets acquired included commercial shell egg production and processing facilities with a capacity at the time of acquisition of approximately 4.7 million laying hens, including 1.0 million cage-free, and 1.2 million pullets, feed mills, approximately 4,000 acres of land, inventories and an egg products breaking facility. The acquired assets also include an extensive customer distribution network across the Northeast and Mid-Atlantic and production operations in Maryland,

business

business meeting certain return on profitability milestones over a three-year period, commencing on the date of the acquisition in the second quarter of fiscal 2024. 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. Index 12 Note 5 - Inventories Inventories consisted of the following as of August 31, 2024 and June 1, 2024 (in thousands): August 31, 2024 June 1, 2024 Flocks, net of amortization $ 169,497 $ 149,985 Eggs and egg products 30,800 25,217 Feed and supplies 92,885 86,580 $ 293,182 $ 261,782 We grow and maintain flocks of layers (mature female chickens), pullets (female chickens, under 18 weeks of age), and breeders (male and female chickens used to produce fertile eggs to hatch for egg production flocks). Our total flock at August 31, 2024 and June 1, 2024 consisted of approximately 10.9 million and 11.8 million pullets and breeders and 46.7 million and 39.9 million layers, respectively. Note 6 - Equity The following reflects equity activity for the thirteen weeks ended August 31, 2024 and September 2, 2023 (in thousands): Thirteen Weeks Ended August 31, 2024 Cal-Maine Foods, Inc. Stockholders Common Stock Class A Treasury Paid In Accum. Other Retained Noncontrolling Amount Amount Amount Capital Comp. Loss Earnings Interest Total Balance at June 1, 2024 $ 703 $ 48 $ ( 31,597 ) $ 76,371 $ ( 1,773 ) $ 1,756,395 $ ( 3,104 ) $ 1,797,043 Other comprehensive income, net of tax — — — — 1,299 — — 1,299 Stock com

View Full Filing

View this 10-Q filing on SEC EDGAR