Cal Maine Foods (CALM), a marketer and distributer of shell eggs, has posted a 3.16 times surge in profit for the quarter ended Aug. 30, 2014. The company earned $27.66 million or $1.14 a share in the first-quarter compared with $8.76 million or $0.36 a share a year ago. Analysts on average had predicted net income of $1.17 a share.
Revenue during the first-quarter grew 11.71 percent to $356.94 million from $319.53 million in the last year period.
Gross margin expanded by 867 basis points over the previous year period to 22.72 percent. Total expenses as a percentage of revenues decreased to 88.47 percent from 96.54 percent in the same period last year. That has resulted in improvement of 807 basis points in operating margins to 11.53 percent.
The company disclosed operating income of $41.16 million, compared with $11.07 million in the last year period.
Dolph Baker, chairman, president and chief executive officer of Cal-Maine Foods stated, ''We are pleased with our financial and operating performance for the first quarter, marking a strong start to fiscal 2015. Our increased sales reflect higher volumes and higher average selling prices compared with the first quarter last year. Consumer demand for eggs has been very favorable and we experienced continued strong demand from all the major market segments including retail, egg product and exports. Sales of specialty eggs have continued to trend higher and accounted for 18.8 percent of our total number of shell eggs sold and 26.8 percent of our shell egg sales revenue for the first quarter of fiscal 2015.''
Cash Flow
Cal Maine Foods has generated cash of $37.96 million from operating activities during the quarter, as against cash outgo of $8.37 million in the last year period.
The company has spent $24.49 million cash to meet investing activities during the quarter, as against cash inflow of $8.31 million in the last year period. It has made net capital expenditure of $20.44 million during the quarter, which was higher by 78.76 percent or $9 million, from a year ago.
The company has spent $13.44 million cash to meet financing activities during the quarter, as against cash outgo of $2.51 million in the last year period. It has made net repayment of $2.62 million debt during the quarter. It has raised net of $0.06 million by selling common stocks.
As on Aug. 30, 2014, the company's cash balance stood at $14.55 million, down 35.10 percent or $7.87 million from Aug. 31, 2013.
Working Capital
Cal Maine Foods has witnessed an increase in the working capital over the last one year. The company's working capital stood at $326.73 million as at Aug. 30, 2014, up $33.30 million or 11.35 percent from $293.43 million on Aug. 31, 2013. It registered a decrease in current ratio to 3.66 as at Aug. 30, 2014 from 3.78 on Aug. 31, 2013.
Days' sales outstanding moved down to 23 days for first quarter compared with 24 days for the last year period. This indicates the company has shortened credit period to clients for making payment.
The company's days' inventory outstanding almost stable at 48 days for first quarter when compared with the last year period. This suggests the company took less time to convert the inventory into sales.
The company's days' payable outstanding went down to 6 days for first quarter from 8 days for the last year period. This reflects that the company has made early payment to vendors compared to prior year period.
Debt Position
Cal Maine Foods has witnessed a decline in the total debt over the last one year. As on Aug. 30, 2014, total debt stood at $58.47 million, down 6.14 percent or $3.82 million, from Aug. 31, 2013. Total debt was 7.05 percent of total assets as on Aug. 30, 2014, compared with 8.58 percent on Aug. 31, 2013.
Shares of the company gained $0.91 or 1.06 percent to settle at $86.38 on Monday.
