Cal-Maine Foods (CALM) closed at $56.66 in the latest trading session, marking a +1.54% move from the prior day. The stock's change was more than the S&P 500's daily loss of 0.12%. Meanwhile, the Dow lost 0.25%, and the Nasdaq, a tech-heavy index, lost 0.41%.The egg producer's shares have seen a decrease of 2% over the last month, not keeping up with the Basic Materials sector's gain of 0.72% and the S&P 500's gain of 4.83%.The upcoming earnings release of Cal-Maine Foods will be of great interest to invest ...

Cal-Maine Foods (CALM) closed at $58.32 in the latest trading session, marking a +1.74% move from the prior day. The stock outpaced the S&P 500's daily loss of 0.6%. Elsewhere, the Dow lost 0.17%, while the tech-heavy Nasdaq lost 0.92%.Heading into today, shares of the egg producer had gained 4.11% over the past month, outpacing the Basic Materials sector's gain of 1.35% and the S&P 500's gain of 3.56% in that time.The upcoming earnings release of Cal-Maine Foods will be of great interest to investors.Any r ...

Want $3750 in Passive Income? Invest $7500 in These 7 Stocks Andrey Maximenko / iStock via Getty Images Work smarter, not harder, says the adage. One way to do that is with passive income, which is derived from ownership rather than labor or active involvement in an enterprise. One of the best ways for investors to create a stream of passive income is by owning stocks with healthy and reliable dividends or distributions.We screened our 24/7 Wall St. dividend equity research database, looking for stocks th ...

The Zacks Agriculture - Products industry has been bearing the brunt of high input costs, labor shortage and supply-chain headwinds. The decline in commodity prices adds to the concerns. Nevertheless, increasing consumer awareness regarding food ingredients and the preference for healthier alternatives will support the industry. Alternative agricultural technologies like hydroponics and vertical farming are expected to be other key catalysts, given their inherent benefits.Players like West Fraser Timber Co. ...

Cal-Maine Foods (CALM) ended the recent trading session at $56.17, demonstrating a +0.52% swing from the preceding day's closing price. The stock outpaced the S&P 500's daily gain of 0.23%. Elsewhere, the Dow saw an upswing of 0.37%, while the tech-heavy Nasdaq appreciated by 0.07%.Shares of the egg producer have appreciated by 1.16% over the course of the past month, outperforming the Basic Materials sector's loss of 6.52% and lagging the S&P 500's gain of 5.3%.The investment community will be paying close ...

By the time the United States Federal Reserve convened for its Federal Open Markets Committee (FOMC) meeting in December, federal economic data had already pointed to a sustained cooling in consumer prices. The Consumer Price Index, for example, only rose 3.2%, from a year-over-year (Y/Y) perspective, in October, which was approximately 590 basis points lower than the peak price increase of 9.1% Y/Y in June 2022. That is to say, despite a slight, unexpected rise in CPI in August, consumer prices continued t ...

Cal-Maine Foods experienced HPAI outbreaks within our facilities in Kansas, resulting in depopulation of approximately 1.5 million layers and 240 thousand pullets, or approximately 3.3% of our total flock as of December 2, 2023, subsequent to period-end. Cal-Maine Foods believes that we can mitigate the loss of production through flock rotations. Cal-Maine Foods remains dedicated to robust biosecurity programs across our locations; however, no farm is immune from HPAI. HPAI is still present in the wild bird ...

Part I [Item 1. Financial Statements](index=3&type=section&id=ITEM%201.%20FINANCIAL%20STATEMENTS) Unaudited Q1 FY2024 financial statements show significant declines in net income and operating cash flow, driven by lower egg prices [Condensed Consolidated Balance Sheets](index=3&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of September 2, 2023, total assets slightly decreased to $1.90 billion, liabilities fell to $289.0 million, and equity remained stable Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | September 2, 2023 | June 3, 2023 | | :--- | :--- | :--- | | **Total Current Assets** | $1,064,058 | $1,124,925 | | **Total Assets** | **$1,900,367** | **$1,954,525** | | **Total Current Liabilities** | $126,382 | $182,731 | | **Total Liabilities** | $289,037 | $344,942 | | **Total Stockholders' Equity** | $1,611,330 | $1,609,583 | [Condensed Consolidated Statements of Income](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income) Q1 FY2024 net sales declined to $459.3 million, resulting in an operating loss of $6.8 million and net income plummeting to $0.9 million Income Statement Summary (in thousands, except per share data) | Metric | Thirteen Weeks Ended Sep 2, 2023 | Thirteen Weeks Ended Aug 27, 2022 | | :--- | :--- | :--- | | Net Sales | $459,344 | $658,344 | | Gross Profit | $45,433 | $217,490 | | Operating Income (Loss) | $(6,757) | $163,850 | | Net Income Attributable to Cal-Maine | $926 | $125,287 | | Diluted EPS | $0.02 | $2.57 | [Condensed Consolidated Statements of Comprehensive Income](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income) Q1 FY2024 comprehensive income significantly decreased to $1.5 million, primarily due to the substantial drop in net income Comprehensive Income (in thousands) | Metric | Thirteen Weeks Ended Sep 2, 2023 | Thirteen Weeks Ended Aug 27, 2022 | | :--- | :--- | :--- | | Net Income | $411 | $125,134 | | Other Comprehensive Income (Loss), net of tax | $595 | $(754) | | Comprehensive Income | $1,006 | $124,380 | | Comprehensive Income Attributable to Cal-Maine | $1,521 | $124,533 | [Condensed Consolidated Statements of Cash Flows](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash from operations significantly decreased to $23.7 million, while investing activities provided $80.9 million and financing activities used $37.0 million Cash Flow Summary (in thousands) | Cash Flow Activity | Thirteen Weeks Ended Sep 2, 2023 | Thirteen Weeks Ended Aug 27, 2022 | | :--- | :--- | :--- | | Net cash provided by operations | $23,685 | $172,812 | | Net cash provided by (used in) investing | $80,880 | $(59,122) | | Net cash used in financing | $(37,046) | $(36,753) | | **Net change in cash** | **$67,519** | **$76,937** | [Notes to Condensed Consolidated Financial Statements](index=7&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Notes detail accounting policies, key financial items, legal proceedings, and a significant subsequent asset acquisition - The financial statements were prepared in accordance with U.S. GAAP for interim reporting and reflect all necessary adjustments of a normal recurring nature[15](index=15&type=chunk) - No new accounting pronouncements issued or effective during the fiscal year had or are expected to have a material impact on the company's Consolidated Financial Statements[30](index=30&type=chunk) Investment Securities by Type (in thousands) | Security Type | Estimated Fair Value (Sep 2, 2023) | Estimated Fair Value (June 3, 2023) | | :--- | :--- | :--- | | Corporate bonds | $126,941 | $138,577 | | US government and agency obligations | $94,264 | $100,769 | | Commercial paper | $8,898 | $56,409 | | Other | $19,516 | $49,329 | | **Total Current Investments** | **$249,619** | **$355,090** | Revenue by Product Category (in thousands) | Product Category | Q1 FY2024 | Q1 FY2023 | | :--- | :--- | :--- | | Conventional shell egg sales | $225,280 | $425,589 | | Specialty shell egg sales | $208,681 | $200,820 | | Egg products | $22,223 | $27,640 | | Other | $3,160 | $4,295 | | **Total** | **$459,344** | **$658,344** | - Subsequent to the quarter end, on September 28, 2023, the company entered into a definitive agreement to acquire substantially all the assets of Fassio Egg Farms, Inc., which has a capacity of approximately **1.2 million laying hens**, primarily cage-free[92](index=92&type=chunk) - The company is involved in several legal proceedings, including antitrust litigation with Egg Products Plaintiffs (trial set for October 17, 2023) and watershed pollution litigation in Oklahoma, with management believing a material adverse outcome is reasonably possible but unable to estimate monetary exposure[5](index=5&type=chunk)[86](index=86&type=chunk)[90](index=90&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=16&type=section&id=ITEM%202.%20MANAGEMENT%27S%20DISCUSSION%20AND%20ANALYSIS%20OF%20FINANCIAL%20CONDITION%20AND%20RESULTS%20OF%20OPERATIONS) Management discusses Q1 FY2024's significant financial downturn, driven by a 48.7% drop in conventional egg prices, impacting gross profit despite lower feed costs, as the company pursues cage-free investments [Executive Overview](index=16&type=section&id=Executive%20Overview) Q1 FY2024 results were impacted by volatile egg prices, with a significant drop in conventional egg prices reducing gross profit, as the company expands cage-free capacity - Cal-Maine Foods is the largest producer and distributor of fresh shell eggs in the U.S., with a flock of approximately **41.9 million layers** and **10.0 million pullets and breeders**[97](index=97&type=chunk) - The U.S. layer hen flock has largely recovered from the HPAI outbreak but remains slightly below the five-year average, with numbers at **318.2 million** as of September 1, 2023, up **3.1%** from a year ago[69](index=69&type=chunk)[70](index=70&type=chunk) - The company is expanding its cage-free production to meet evolving state requirements and customer goals, with cage-free egg revenue representing approximately **33.0% of total net shell egg revenue** for Q1 FY2024[66](index=66&type=chunk) Q1 FY2024 vs. Q1 FY2023 Key Metrics | Metric | Q1 FY2024 | Q1 FY2023 | | :--- | :--- | :--- | | Net Average Selling Price / Dozen | $1.589 | $2.275 | | Conventional Egg Price / Dozen | $1.241 | $2.368 | | Specialty Egg Price / Dozen | $2.278 | $2.101 | | Gross Profit (in millions) | $45.4 | $217.5 | [Results of Operations](index=19&type=section&id=Results%20of%20Operations) Q1 FY2024 net sales decreased 30.2% to $459.3 million, driven by a 47.1% drop in conventional egg prices, resulting in a 9.9% gross margin and an operating loss Shell Egg Sales Analysis (Q1 FY2024 vs Q1 FY2023) | Category | Net Sales Change | Price Change | Volume Change | | :--- | :--- | :--- | :--- | | Conventional Eggs | -47.1% | -47.6% | +1.0% | | Specialty Eggs | +3.9% | +8.4% | -4.2% | Cost of Sales Analysis (per dozen produced) | Cost Component | Q1 FY2024 | Q1 FY2023 | % Change | | :--- | :--- | :--- | :--- | | Feed | $0.597 | $0.667 | -10.5% | | Other Farm Production | $0.439 | $0.379 | +15.8% | | **Total Farm Production** | **$1.036** | **$1.046** | **-1.0%** | - Other farm production costs increased primarily due to higher flock amortization from increased cage-free production and a **16.5% increase in labor costs**[163](index=163&type=chunk)[164](index=164&type=chunk) - Selling, general, and administrative (SGA) expenses decreased **2.5% to $52.2 million**, primarily due to lower delivery expenses and franchise fees[200](index=200&type=chunk) [Liquidity and Capital Resources](index=23&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains strong liquidity with $937.7 million in working capital and no long-term debt, despite lower net cash from operations - Working capital was **$937.7 million** at September 2, 2023, compared to **$942.2 million** at June 3, 2023[172](index=172&type=chunk) - The company has no long-term debt outstanding and access to a **$250 million** senior secured revolving credit facility, under which no amounts were borrowed as of September 2, 2023[174](index=174&type=chunk) Approved Material Construction Projects (in thousands) | Project Type | Projected Completion | Total Projected Cost | Remaining Cost | | :--- | :--- | :--- | :--- | | Cage-Free Layer & Pullet Houses | Fiscal 2024-2027 | $190,607 | $88,981 | | Feed Mill | Fiscal 2025 | $10,800 | $10,764 | | **Total** | | **$201,407** | **$99,745** | [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=24&type=section&id=ITEM%203.%20QUANTITATIVE%20AND%20QUALITATIVE%20DISCLOSURES%20ABOUT%20MARKET%20RISK) No material changes in market risk exposure occurred during Q1 FY2024 compared to prior Annual Report disclosures - There have been no material changes in the company's exposure to market risk during the thirteen weeks ended September 2, 2023[176](index=176&type=chunk) [Item 4. Controls and Procedures](index=25&type=section&id=ITEM%204.%20CONTROLS%20AND%20PROCEDURES) Management concluded disclosure controls and procedures were effective as of September 2, 2023, with no material changes to internal controls - Based on an evaluation, the Chief Executive Officer and Chief Financial Officer concluded that the company's disclosure controls and procedures were effective as of September 2, 2023[215](index=215&type=chunk) - There were no changes in internal control over financial reporting during the quarter that have materially affected, or are reasonably likely to materially affect, the company's internal controls[192](index=192&type=chunk) Part II [Item 1. Legal Proceedings](index=26&type=section&id=ITEM%201.%20LEGAL%20PROCEEDINGS) Legal proceedings information is incorporated by reference from Note 9 of the Condensed Consolidated Financial Statements and the 2023 Annual Report - Information regarding legal proceedings is incorporated by reference from Note 9 of the Notes to Condensed Consolidated Financial Statements in this report and from the company's 2023 Annual Report[211](index=211&type=chunk) [Item 1A. Risk Factors](index=26&type=section&id=ITEM%201A.%20RISK%20FACTORS) No material changes occurred in risk factors previously disclosed in the company's 2023 Annual Report on Form 10-K - There have been no material changes in the risk factors previously disclosed in the Company's 2023 Annual Report[180](index=180&type=chunk) [Item 2. Unregistered Sales of Equity Securities, Use of Proceeds, and Issuer Purchases of Equity Securities](index=26&type=section&id=ITEM%202.%20UNREGISTERED%20SALES%20OF%20EQUITY%20SECURITIES%2C%20USE%20OF%20PROCEEDS%2C%20AND%20ISSUER%20PURCHASES%20OF%20EQUITY%20SECURITIES) During Q1 FY2024, the company repurchased shares primarily to satisfy employee tax withholding obligations related to restricted stock vesting Q1 2024 Share Repurchases | Period | Total Shares Purchased | Average Price Paid per Share | | :--- | :--- | :--- | | 06/04/23 to 07/01/23 | — | — | | 07/02/23 to 07/29/23 | 106 | $44.75 | | 07/30/23 to 09/02/23 | — | — | | **Total** | **106** | **$44.75** | - The repurchased shares were withheld by the company to satisfy employee tax withholding obligations related to the vesting of restricted common stock[194](index=194&type=chunk) [Item 6. Exhibits](index=26&type=section&id=ITEM%206.%20EXHIBITS) This section lists exhibits filed, including corporate documents, officer certifications, and Inline XBRL documents - Exhibits filed with this report include officer certifications required by the Sarbanes-Oxley Act and various Inline XBRL taxonomy documents[181](index=181&type=chunk) [Signatures](index=27&type=section&id=Signatures) The report was duly signed on October 3, 2023, by the Vice President and Chief Financial Officer and Vice President – Accounting - The report was duly signed on October 3, 2023, by Max P. Bowman, Vice President and Chief Financial Officer, and Matthew S. Glover, Vice President – Accounting[183](index=183&type=chunk)[197](index=197&type=chunk)

53 and entities that are permitted to receive and hold shares of Class A Common Stock, with ten votes per share, without such shares converting into shares of Common Stock, with one vote per share ("Permitted Transferees"). The Permitted Transferees include arrangements and entities such as revocable trusts and limited liability companies that could hold Class A Common Stock for the benefit of Immediate Family Members. Each Permitted Transferee must have a relationship, specifically defined in the Restated ...

Financial Performance - For Q3 fiscal 2023, the company recorded a gross profit of $463.0 million, a significant increase from $91.6 million in the same period of fiscal 2022, primarily due to higher shell egg prices [122]. - Total net sales for the third quarter of fiscal 2023 were $997.5 million, a 109.0% increase from $477.5 million in the same period of fiscal 2022 [144]. - For the thirty-nine weeks ended February 25, 2023, total net sales reached $2.46 billion, compared to $1.18 billion for the same period in fiscal 2022, marking a 108.5% increase [145]. - Net income for the third quarter of fiscal 2023 was 32.3% of total net sales, compared to 8.3% in the same period of fiscal 2022 [144]. - Operating income for Q3 FY2023 was $407.8 million, compared to $39.6 million for the same period in FY2022 [224]. - Net income attributable to Cal-Maine Foods, Inc. for the thirty-nine weeks ended February 25, 2023, was $647.1 million, or $13.31 per basic share, compared to $22.6 million or $0.46 per basic share for the same period of fiscal 2022 [229]. - The company recorded a pre-tax income of $852.6 million for the thirty-nine weeks ended February 25, 2023, compared to $19.7 million for the same period of fiscal 2022 [227]. Sales and Pricing - Conventional egg sales increased by $408.4 million, or 145.5%, in the third quarter of fiscal 2023, primarily due to a $415.9 million increase in prices [149]. - Specialty egg sales rose by $89.3 million, or 48.8%, in the third quarter of fiscal 2023, driven by a 36.0% increase in prices and a 9.4% increase in volume sold [149]. - Egg products net sales increased by $19.8 million, or 155.6%, for the third quarter of fiscal 2023, primarily due to a 142.8% increase in selling prices [152]. - The average net selling price per dozen for Q3 fiscal 2023 was $3.298, compared to $1.612 in the prior-year period, with conventional egg prices at $3.678 and specialty egg prices at $2.616 [3]. - Total dozens sold increased by 1.3% to 291.4 million dozen in Q3 fiscal 2023, with specialty dozens sold rising by 9.4% [4]. Production and Costs - Farm production costs per dozen produced increased by 18.2%, or $0.166, in the third quarter of fiscal 2023, mainly due to higher feed ingredient costs [143]. - Cost of sales for the third quarter of fiscal 2023 was $534.5 million, up from $385.9 million in the same period of fiscal 2022 [154]. - The increase in payroll, taxes, and benefits expense was primarily due to an increase in the accrual for anticipated performance-based bonuses and increased wages due to inflation [195]. - Labor costs increased by 36% due to higher use of contract labor and wage increases in Q3 fiscal 2023 [6]. - Packaging material costs increased by 15.5% and labor costs rose by 13.7% due to inflation and labor shortages [215]. Market Conditions - The outbreak of highly pathogenic avian influenza (HPAI) has led to the depopulation of approximately 43.3 million commercial layer hens since February 2022, impacting overall egg supply [138]. - The USDA reported a decrease of 3.8% in layer hen inventory compared to the previous year, with current numbers at 312.9 million [139]. - The company expects to continue facing volatility in market prices for eggs and feed grains, which significantly impacts financial results [133]. - The company expects continued upward pricing pressures on corn and soybean due to tight supplies and market volatility [214]. - Corn and soybean supplies remained tight in Q3 FY2023, leading to upward pricing pressures and market volatility affecting feed costs [214]. Strategic Initiatives - The company announced a strategic investment of $18.5 million in Meadow Creek Foods, LLC, to support the growing demand for hard-cooked eggs [117]. - The company is focused on expanding cage-free facilities to meet customer demand, with some customers aiming for 70% cage-free eggs by the end of 2030 [121]. - The company is enhancing its product mix to include free-range and pasture-raised eggs, catering to evolving consumer preferences [136]. - The company formed a new egg farmer cooperative, ProEgg, to enhance market presence in the western United States [7]. - The company is participating in the ProEgg cooperative to improve supply chain stability and customer support in the western states [137]. Interest and Dividends - The company earned $9.4 million of interest income for the thirty-nine weeks ended February 25, 2023, compared to $702 thousand for the same period of fiscal 2022, driven by higher investment balances and interest rates [198]. - The company recorded $6.3 million in interest income for Q3 FY2023, a significant increase from $205 thousand in the same period of FY2022 [225]. - The company paid dividends of $144.6 million for the thirty-nine weeks ended February 25, 2023 [207].