[Part I. Financial Information](index=3&type=section&id=Part%20I.%20Financial%20Information) This section details the company's financial performance, operational analysis, market risk, and internal controls [Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) The company's financial statements for Q1 FY2025 reflect substantial growth in assets, sales, and net income, driven by favorable market conditions and operational efficiency [Condensed Consolidated Balance Sheets](index=3&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) The balance sheet shows total assets increased to $2.39 billion, with corresponding rises in liabilities and stockholders' equity Condensed Consolidated Balance Sheet Highlights (in thousands USD) | Account | August 31, 2024 | June 1, 2024 | | :--- | :--- | :--- | | **Total Current Assets** | $1,343,479 | $1,241,839 | | **Property, Plant & Equipment, net** | $960,070 | $857,234 | | **Total Assets** | **$2,390,008** | **$2,184,761** | | **Total Current Liabilities** | $325,415 | $227,743 | | **Total Liabilities** | $490,945 | $387,718 | | **Total Stockholders' Equity** | $1,899,063 | $1,797,043 | [Condensed Consolidated Statements of Income](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income) The income statement reveals a significant profitability turnaround with net sales surging to $785.9 million and net income reaching $150.0 million Income Statement Summary (in thousands USD, except per share data) | Metric | Thirteen Weeks Ended Aug 31, 2024 | Thirteen Weeks Ended Sep 2, 2023 | | :--- | :--- | :--- | | **Net Sales** | $785,871 | $459,344 | | **Gross Profit** | $247,218 | $45,433 | | **Operating Income (Loss)** | $186,957 | $(6,757) | | **Net Income Attributable to Cal-Maine** | $149,976 | $926 | | **Diluted EPS** | $3.06 | $0.02 | [Condensed Consolidated Statements of Cash Flows](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Operating cash flow significantly increased to $117.5 million, while investing activities, including an acquisition, led to a net decrease in cash Cash Flow Summary (in thousands USD) | Cash Flow Activity | Thirteen Weeks Ended Aug 31, 2024 | Thirteen Weeks Ended Sep 2, 2023 | | :--- | :--- | :--- | | **Net cash provided by operations** | $117,452 | $23,685 | | **Net cash provided by (used in) investing** | $(135,871) | $80,880 | | **Net cash used in financing** | $(37,792) | $(37,046) | | **Net change in cash** | $(56,211) | $67,519 | [Notes to Condensed Consolidated Financial Statements](index=7&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Notes detail a significant business acquisition, revenue segmentation by product, ongoing legal proceedings, and a subsequent strategic investment - Effective June 28, 2024, the company acquired substantially all commercial shell egg production and processing assets of ISE America, Inc. for cash consideration of **$111.5 million**, including facilities with a capacity of approximately **4.7 million laying hens**[23](index=23&type=chunk)[24](index=24&type=chunk) Revenue by Product Category (in thousands USD) | Product Category | Q1 FY2025 | Q1 FY2024 | | :--- | :--- | :--- | | Conventional shell egg sales | $484,736 | $225,280 | | Specialty shell egg sales | $256,777 | $208,681 | | Egg products | $35,175 | $22,223 | | Other | $9,183 | $3,160 | | **Total** | **$785,871** | **$459,344** | - Subsequent to the quarter end, on September 9, 2024, the company completed a strategic investment in Crepini LLC, capitalizing a new venture, Crepini Foods LLC, with **$6.75 million in cash** for a **51% interest**[48](index=48&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A)](index=17&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) MD&A highlights strong Q1 FY2025 performance driven by higher egg prices, increased sales volume, and reduced feed costs, maintaining robust liquidity [Executive Overview](index=19&type=section&id=Executive%20Overview) The executive overview highlights a significant increase in gross profit driven by higher egg prices, increased sales volume, and lower feed costs - Net average selling price per dozen increased to **$2.392** in Q1 FY2025 from **$1.589** in the prior-year period, primarily due to HPAI outbreaks decreasing the national layer hen flock and thus reducing supply[66](index=66&type=chunk) - Total dozens sold increased by **13.5%** compared to the prior year, boosted by the acquisitions of ISE and Fassio, which offset temporary production losses from HPAI outbreaks at Cal-Maine's Kansas and Texas facilities[67](index=67&type=chunk) - Farm production costs per dozen decreased by **11.7%** year-over-year, mainly due to a **17.3%** reduction in feed costs per dozen produced[68](index=68&type=chunk) [Results of Operations](index=20&type=section&id=Results%20of%20Operations) Results of operations show net sales surged to $785.9 million, driven by price and volume increases, leading to expanded gross profit margins Shell Egg Sales Analysis (Q1 FY2025 vs Q1 FY2024, per dozen) | Category | Net Average Selling Price per Dozen | Dozens Sold (thousands) | | :--- | :--- | :--- | | **Conventional** | $2.424 (up 95.3%) | 199,989 (up 10.2%) | | **Specialty** | $2.335 (up 2.5%) | 109,990 (up 20.1%) | | **All Shell Eggs** | **$2.392 (up 50.5%)** | **309,979 (up 13.5%)** | Farm Production Costs (per dozen produced, USD) | Cost Component | Q1 FY2025 | Q1 FY2024 | % Change | | :--- | :--- | :--- | :--- | | Feed | $0.494 | $0.597 | (17.3)% | | Other | $0.421 | $0.439 | (4.1)% | | **Total** | **$0.915** | **$1.036** | **(11.7)%** | - Costs for outside egg purchases increased significantly due to a **71.5%** rise in the average cost per dozen and a **67.5%** increase in the volume of dozens purchased, necessitated by HPAI-related production losses[83](index=83&type=chunk) [Liquidity and Capital Resources](index=24&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains strong liquidity with $1.0 billion in working capital, no long-term debt, and sufficient resources for future operations and capital projects - Working capital remained strong at **$1.0 billion** at the end of the quarter, with a current ratio of **4.1**[94](index=94&type=chunk) - A cash dividend of approximately **$50.0 million**, or **$1.019 per share**, will be paid for the first fiscal quarter of 2025[100](index=100&type=chunk) Material Construction Projects (as of Aug 31, 2024, in thousands USD) | Project Type | Projected Completion | Projected Cost | Remaining Cost | | :--- | :--- | :--- | :--- | | Cage-Free Layer & Pullet Houses | Fiscal 2025 | $81,429 | $7,484 | | Dexter, MO Renovations | Fiscal 2025 | $6,204 | $1,500 | | Feed Mills | Fiscal 2026 | $16,593 | $12,028 | | Cage-Free Layer & Pullet Houses | Fiscal 2026 | $135,905 | $20,485 | | **Total** | | **$240,131** | **$41,497** | [Quantitative and Qualitative Disclosures About Market Risk](index=26&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company reports no material changes in its exposure to market risk during the first quarter of fiscal 2025 from prior disclosures - There have been no material changes in the company's exposure to market risk during the thirteen weeks ended August 31, 2024[105](index=105&type=chunk) [Controls and Procedures](index=26&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded the company's disclosure controls and procedures were effective, with no material changes to internal control over financial reporting during the quarter - The company's CEO and CFO concluded that disclosure controls and procedures were effective as of August 31, 2024[106](index=106&type=chunk) - There were no material changes to the company's internal control over financial reporting during the quarter[107](index=107&type=chunk) [Part II. Other Information](index=27&type=section&id=Part%20II.%20Other%20Information) This section covers legal proceedings, risk factors, equity sales, and exhibits [Legal Proceedings](index=27&type=section&id=Item%201.%20Legal%20Proceedings) The company refers to the detailed discussion of its legal proceedings as disclosed in Note 10 of the Notes to Condensed Consolidated Financial Statements - For information on legal proceedings, the report refers to Note 10 in the financial statements section of the Form 10-Q[108](index=108&type=chunk) [Risk Factors](index=27&type=section&id=Item%201A.%20Risk%20Factors) There have been no material changes to the risk factors previously disclosed in the company's Annual Report on Form 10-K - No material changes in risk factors were reported compared to the company's 2024 Annual Report[109](index=109&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=27&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) During Q1 FY2025, the company repurchased 502 shares of common stock at an average price of $66.86 per share to satisfy tax withholding obligations Q1 FY2025 Share Repurchases (USD) | Period | Total Shares Purchased | Average Price Paid per Share | | :--- | :--- | :--- | | 06/30/24 to 07/27/24 | 502 | $66.86 | | **Total** | **502** | **$66.86** | [Exhibits](index=27&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the quarterly report, including corporate documents and officer certifications - The report includes standard exhibits such as officer certifications and Inline XBRL data files[112](index=112&type=chunk)

Financial Performance - Quarterly net sales reached $785.9 million, a significant increase from $459.3 million in the same period last year[5] - Net income for the first quarter was $150.0 million, or $3.06 per diluted share, compared to $926,000, or $0.02 per diluted share, for the first quarter of fiscal 2024[6] - The net average selling price per dozen of shell eggs was $2.392, compared to $1.589 in the prior year, reflecting a year-over-year increase of 50.5%[6] Sales and Production - Total dozens of shell eggs sold increased to 310.0 million, up from 273.1 million dozens sold in the first quarter of fiscal 2024, representing a growth of 13.5%[5] - Specialty egg volumes increased by 20.1%, with 110.0 million dozens sold compared to 91.6 million dozens in the first quarter of fiscal 2024[5] - Farm production costs per dozen were 11.7% lower compared to the prior-year period, primarily due to favorable commodity pricing for key feed ingredients[6] Strategic Investments - Cal-Maine Foods has made strategic investments in Meadowcreek Foods and Crepini Foods to enhance its product portfolio with value-added egg products[2] - The company plans to expand capacity for cage-free and specialty egg production through investments in innovative products and facilities[10] Dividends and Shareholder Returns - The company declared a cash dividend of approximately $50.0 million, or $1.02 per share, reflecting its established dividend policy[1] Asset and Liability Changes - Total assets increased to $2,390,008 thousand, up from $2,184,761 thousand year-over-year, representing a growth of approximately 9.4%[16] - Cash and short-term investments decreased to $753,590 thousand from $812,377 thousand, a decline of about 7.2%[16] - Accounts payable and accrued expenses rose to $275,444 thousand, compared to $189,983 thousand, reflecting an increase of approximately 45%[16] - Stockholders' equity increased to $1,899,063 thousand from $1,797,043 thousand, showing a growth of about 5.7%[16] - Current liabilities increased to $325,415 thousand from $227,743 thousand, marking an increase of approximately 43%[16] - Dividends payable rose to $49,971 thousand from $37,760 thousand, an increase of about 32%[16] - Receivables, net increased significantly to $282,551 thousand from $162,442 thousand, representing a growth of approximately 74%[16] - Inventories, net increased to $293,182 thousand from $261,782 thousand, reflecting an increase of about 11.9%[16] - Deferred income taxes and other liabilities increased slightly to $165,530 thousand from $159,975 thousand, a growth of about 3.5%[16] - Prepaid expenses and other current assets increased to $14,156 thousand from $5,238 thousand, a significant increase of approximately 169%[16] Impact of Hurricane Helene - The impact of Hurricane Helene is being evaluated, but initial assessments indicate minimal loss of production assets[3]

Partnership and Collaboration - Revitalist Lifestyle and Wellness Ltd partners with Sama Therapeutics to expand access to mental health care through novel technology, including the release of a proprietary Digital Human Artificial Intelligence Agent [1] - The collaboration aims to enhance mental health assessments globally by integrating advanced AI technology [1][4] Technology and Innovation - The AI Agent, modeled after Revitalist CEO Kathryn Walker, engages patients in conversational dialogue and implements the proprietary Federal Unit Scale (FUS) for mental health screening [2] - The FUS was rigorously validated through an analysis of 11,798 participants, demonstrating strong psychometric properties [2] - Sama's AI Agent platform can create lifelike digital human avatars of healthcare providers, capable of communicating in over 100 languages and capturing audiovisual biomarkers for precise data collection [3] Impact and Vision - The partnership is expected to redefine mental health care accessibility and engagement on a global scale by integrating medically and ethically sound AI in neuropsychiatry [3][4] - The collaboration aims to deliver the highest standard of patient care and clinical research with exceptional efficiency [4] Company Overview - Revitalist Lifestyle and Wellness Ltd is a mental health and wellness company focused on comprehensive care in the ketamine wellness space, operating through physical locations and virtual offices across 35 states [5] - Sama Therapeutics is a leading innovator in AI-powered precision medicine, utilizing its proprietary iMAGiNE™ platform to deliver personalized brain health assessments [6] - Sama integrates generative AI with computational life sciences to redefine "software as a medical device" across various disorders [7] - Sama's mission is to unlock brain health through integrative neurotechnology, transforming psychiatric and neurological medicine [8]

Group 1 - Revitalist Lifestyle and Wellness Ltd. is sponsoring The American Legion's 105th National Convention, which will take place from August 23-29, 2024, and is focused on addressing veteran suicides [1][2] - The company will provide two psychedelic retreats, free consultations for ketamine and psychedelic therapies, and donate 100% of sales during the event to support veterans in need [1][4] - Revitalist's CEO, Kathryn A. Walker, will be present at the convention offering wellness services and educational materials, with all proceeds directed towards veteran treatment [4][8] Group 2 - The convention gathers delegates from all 55 departments across the U.S. and aims to amend the Legion's constitution, enact programs, and elect national leaders [2] - A key initiative at the convention is the "Be the One" campaign, which aims to reduce the rate of veteran suicides, currently at 22 per day, by promoting mental health awareness [3] Group 3 - Veterans can sign up for a chance to win a psychedelic retreat and schedule free consultations through Revitalist's website [6][5] - For those unable to attend, Revitalist will extend support online, with all supplement and book purchases made during the convention period contributing to veteran treatment [7] Group 4 - The American Legion, established in 1919, is the largest wartime veterans service organization with over 1.6 million members, dedicated to supporting veterans and advocating for their well-being [9] - Revitalist is positioned as a mental health and wellness company specializing in ketamine therapies, operating both physical locations and virtual offices across the USA [10][11]

Core Insights - Revitalist Lifestyle and Wellness Ltd. is actively participating in the AANA Annual Congress, focusing on the integration of psychedelics in anesthesia practices [2][5]. Group 1: Event Details - Kathryn A. Walker, CEO of Revitalist, will present at the AANA Annual Congress from August 2-6, 2024, in San Diego [2]. - Walker's session titled "Entering the World of Psychedelics as an Anesthesia Professional" is scheduled for August 5, 2024, from 3:30 PM to 4:30 PM PT [3]. Group 2: Session Content - The session will explore the emerging field of psychedelic medicines and their applications in anesthesia, including medication delivery techniques and therapeutic communication styles [4]. - Key learning objectives include identifying psychedelic medicines and their legal approval dates, understanding their pharmacologic nature, and discussing outpatient community practices [4]. Group 3: Company Overview - Revitalist Lifestyle and Wellness Ltd. specializes in mental health and wellness, particularly in the ketamine wellness space, offering innovative and evidence-based services [7]. - The company operates through physical locations and virtual offices across the United States and the British Virgin Islands, positioning itself at the forefront of the psychedelic space [7][8].

Core Insights - Kathryn A. Walker's new book "Inflamed: Theory" explores the relationship between mental health and neurological/inflammatory processes in the brain, challenging traditional mental health theories and proposing innovative treatment approaches [1][2][5] - The book emphasizes the integration of psychedelic medicine into mainstream mental health practices, reflecting a shift towards advanced mental health interventions [2][5] Company Overview - Revitalist Lifestyle and Wellness Ltd. is led by Kathryn A. Walker, who has a strong background in anesthesia and psychiatric care, positioning the company as a proponent of innovative mental health therapies [2][5] - The company is actively promoting the presale of "Inflamed: Theory," indicating a strategic move to enhance its presence in the mental health sector [5] Industry Implications - The book discusses the disruptive potential of psychedelics in mental health, suggesting a transformative impact on treatment methodologies [2][5] - Walker's insights aim to provide a comprehensive understanding of the evolving landscape of mental health care, highlighting the importance of cutting-edge therapies [5]

Core Viewpoint - Cal-Maine Foods (NASDAQ: CALM) is positioned as an undervalued company with significant cash reserves, recent acquisitions, and potential for organic growth in value-added products, suggesting a target price of approximately $144 per share based on financial modeling [1][11][31]. Financial Performance - The company reported free cash flow (FCF) growth from $60 million in 2014 to approximately $549 million in 2023, indicating strong financial health and growth potential [29][30]. - Cal-Maine Foods trades at a low valuation of about 6x TTM EBITDA, compared to industry peers that trade at around 11x TTM EBITDA, highlighting substantial room for valuation improvement [12][14]. Growth Strategy - The company plans to pursue selective acquisitions to enhance its market reach and expand its cage-free shell egg production capabilities, with recent acquisitions including assets from Fassio Egg Farms and ISE America, Inc. [29][10]. - There is a focus on organic growth through value-added products such as hard-cooked eggs, which are expected to leverage existing distribution channels and expand into new markets [31][1]. Market Position - Cal-Maine Foods is the largest producer and distributor of shell eggs in the United States, with total assets increasing from $1.1 billion in 2014 to $2.1 billion in 2024, reflecting a strong asset growth trajectory [18][25]. - The company has maintained a negative net debt position, indicating a strong balance sheet and financial flexibility for future growth initiatives [27][11]. Valuation Insights - A discounted cash flow model suggests an implied equity valuation of approximately $7 billion, supporting the target price of $144 per share based on future growth assumptions [11][31]. - The tangible book value per share has increased significantly from $11 in 2014 to $35 in 2024, indicating a solid foundation for future stock price growth [28].

Financial Performance - For the fiscal year ending June 1, 2024, net income attributable to Cal-Maine Foods, Inc. was $277.888 million, a decrease from $758.024 million in the previous fiscal year, representing a decline of approximately 63.4%[12]. - Basic net income per common share for fiscal 2024 was $5.70, down from $15.58 in fiscal 2023, indicating a decrease of about 63.4%[12]. - Total net revenue for fiscal 2024 was $2.326 billion, a decrease from $3.146 billion in fiscal 2023, representing a decline of approximately 26.0%[65]. - The company reported a gross profit margin of 23.3% for fiscal 2024, down from 38.0% in fiscal 2023[145]. - Operating income fell to $312.5 million in fiscal 2024, down from $967.7 million in fiscal 2023, indicating a decline of approximately 67.7%[152]. - The company reported a basic net income per share of $5.70 for the fiscal year ending June 1, 2024, down from $15.58 in the previous year[199]. - Comprehensive income attributable to Cal-Maine Foods, Inc. was $279,001 for the fiscal year ending June 1, 2024, compared to $756,734 in the prior year, indicating a substantial decline[202]. Sales and Revenue Composition - Cage-free egg revenue represented approximately 29.5% of total net shell egg sales for fiscal year 2024[31]. - Specialty eggs, including cage-free, organic, and free-range, are a significant and growing segment, with total specialty egg sales accounting for 39.8% of revenue in 2024[33]. - Egg product sales constituted approximately 3.8% of total revenue in fiscal 2024[32]. - Specialty shell egg sales accounted for 41.4% of total net sales in fiscal 2024, compared to 31.6% in fiscal 2023, indicating a shift towards higher-margin products[147]. - The average net selling price of shell eggs decreased by 34% in fiscal 2024 compared to fiscal 2023, with the average UB southeastern large index price at $1.932[143]. Production and Capacity - The total flock as of June 1, 2024, consisted of approximately 39.9 million layers and 11.8 million pullets and breeders[25]. - The company has a production capacity of up to 48.0 million layers across 43 shell egg production facilities[123]. - The company operates 26 feed mills with a production capacity of 949 tons of feed per hour[123]. - The company has 44 processing and packaging facilities with a capacity of approximately 605,700 dozen shell eggs per hour[123]. - The company has ongoing construction projects aimed at expanding its cage-free egg production capabilities, expected to phase into production through fiscal 2026[124]. Market and Competitive Landscape - The company sold shell eggs and egg products in 39 states and Puerto Rico, utilizing an extensive distribution network[46]. - The ten largest producers owned approximately 54% of industry table egg layer hens at the end of 2023[48]. - Fresh shell eggs accounted for 96.1% to 96.6% of the company's net sales over the last three fiscal years, indicating a highly competitive market[103]. - Increased competition in the shell egg market could lead to price reductions and loss of market share, negatively impacting financial results[103]. Legal and Regulatory Matters - The company is involved in ongoing legal proceedings related to alleged violations of the Texas Deceptive Trade Practices Act, with a trial date tentatively set for August 11, 2025[16]. - The jury awarded the Egg Products Plaintiffs $17.8 million in damages, which could lead to a total liability of $53.3 million if treble damages are applied[72]. - The Company recorded an accrued expense of $19.6 million in selling, general and administrative expenses related to the Egg Products litigation[72]. - The court found the defendants liable for state law nuisance and federal common law nuisance in the Oklahoma Watershed Pollution Litigation, but no penalties were assessed[73]. - The Company has a reasonable possibility of a material loss from the Oklahoma litigation, but the monetary exposure cannot be estimated at this time[73]. Employee and Labor Matters - As of June 1, 2024, the company employed 3,067 individuals, with 2,370 in egg production, processing, and marketing[52]. - Approximately 76% of employees are paid at hourly rates above the federal minimum wage, with the company covering about 82% of health plan costs[55]. - Approximately 76% of the company's employees are paid at hourly rates, often in entry-level positions, which could lead to increased labor costs due to rising minimum wage requirements[105]. - Labor costs increased primarily due to the pandemic, with continued wage rises expected in fiscal 2023 and 2024 due to inflation and low unemployment[105]. Financial Position and Capital Management - The company aims to maintain a strong balance sheet and liquidity to support growth opportunities and stockholder returns, focusing on dividends, acquisitions, and capital expenditures[153]. - Working capital increased to $1.0 billion as of June 1, 2024, compared to $942.2 million at June 3, 2023, while the current ratio decreased to 5.5 from 6.2[160]. - The company has a Credit Facility with an initial aggregate principal amount of up to $250 million, with no amounts borrowed as of June 1, 2024[90]. - The company has a maximum Total Funded Debt to Capitalization Ratio of no greater than 50% as per the Credit Agreement[90]. Risks and Challenges - Consumer demand for shell eggs may decline due to adverse publicity and changing dietary trends, which could materially affect future financial results[94]. - Feed costs represent 55% to 63% of total farm production costs over the last five fiscal years, and volatility in these costs can adversely impact operations and cash flow[94]. - The company experienced HPAI outbreaks leading to the depopulation of 3.1 million laying hens and 577,000 pullets, which could negatively impact financial results if such outbreaks continue[96]. - Global health crises, such as pandemics, could disrupt operations and adversely affect financial results due to increased costs and supply chain disruptions[101]. - Legal proceedings may expose the company to significant liabilities, adversely affecting business reputation and financial condition[110]. Corporate Governance and Management - The company is controlled by the family of the late founder, holding approximately 52.0% of the total voting power, which may affect corporate governance and decision-making[105]. - The company has a crisis management plan in place to respond to cybersecurity incidents, ensuring minimal disruption to operations[114]. - The company is governed by a Board responsible for overseeing management's risk mitigation processes related to cybersecurity threats[120]. Acquisitions and Growth Strategy - The growth strategy focuses on strategic acquisitions, organic growth, and expansion of value-added products, including hard-cooked eggs[50]. - The Company acquired assets of ISE America, Inc. for approximately $110 million, which includes facilities for 4.7 million laying hens and a customer distribution network across the Northeast and Mid-Atlantic states[76]. - The company completed the acquisition of Fassio Egg Farms, Inc. in September 2023, enhancing its market presence in Utah and the western U.S.[138]. - The company plans to pursue selective acquisitions to expand cage-free shell egg production capabilities, which may involve risks related to demand estimation and integration[101].

[Cal-Maine Foods Fourth Quarter and Fiscal 2024 Earnings Release](index=1&type=section&id=Cal-Maine%20Foods%20Fourth%20Quarter%20and%20Fiscal%202024%20Earnings%20Release) [Financial & Operational Highlights](index=1&type=section&id=Financial%20%26%20Operational%20Highlights) Cal-Maine Foods reported solid Q4 results with increased net income and lower production costs, despite a fiscal year sales decline driven by lower egg prices, while strategically expanding through acquisitions [Q4 & Fiscal Year 2024 Performance Summary](index=1&type=section&id=Q4%20%26%20Fiscal%20Year%202024%20Performance%20Summary) Cal-Maine Foods reported Q4 net sales of $640.8 million and net income of $113.2 million, with fiscal year net sales of $2.3 billion and net income of $277.9 million, alongside a $0.77 per share dividend Q4 & Fiscal Year 2024 Key Financial Metrics | Metric | Fourth Quarter 2024 | Fiscal Year 2024 | | :--- | :--- | :--- | | **Net Sales** | $640.8 million | $2.3 billion | | **Net Income** | $113.2 million | $277.9 million | | **Diluted EPS** | $2.32 | $5.69 | | **Cash Dividend** | $0.77 per share | N/A | [Sales and Operating Performance](index=1&type=section&id=Sales%20and%20Operating%20Performance) Q4 net sales declined due to a shorter quarter, while full-year sales dropped due to lower conventional egg prices, though specialty egg volumes grew and profitability improved significantly from lower feed costs - Q4 sales revenue declined due to a shorter quarter, while the fiscal year sales decrease was primarily driven by lower net average selling prices for conventional eggs compared to fiscal 2023 record highs[5](index=5&type=chunk)[7](index=7&type=chunk) - Farm production costs per dozen decreased by **14.3% in Q4** and **8.3% in fiscal 2024**, primarily due to more favorable feed ingredient costs, with feed costs per dozen down **24.9% in Q4** and **18.6% for the full year**[7](index=7&type=chunk) Operating Metrics Per Dozen | Operating Metric (per dozen) | Q4 FY2024 | Q4 FY2023 | Change | | :--- | :--- | :--- | :--- | | **Net Average Selling Price** | $2.133 | $2.197 | -2.9% | | **Conventional Egg Price** | $2.062 | $2.038 | +1.2% | | **Specialty Egg Price** | $2.254 | $2.499 | -9.8% | | **Feed Cost** | $0.504 | $0.671 | -24.9% | Sales Volume (Million Dozens) | Sales Volume (million dozens) | Q4 FY2024 | Q4 FY2023 | Change | | :--- | :--- | :--- | :--- | | **Total Dozens Sold** | 285.6 | 296.6 | -3.7% | | **Conventional Dozens Sold** | 180.5 | 194.0 | -7.0% | | **Specialty Dozens Sold** | 105.0 | 102.5 | +2.5% | [Strategic Initiatives and Acquisitions](index=1&type=section&id=Strategic%20Initiatives%20and%20Acquisitions) Cal-Maine Foods pursued its growth strategy by completing three key acquisitions, including Fassio Egg Farms and ISE America, Inc., to enhance market presence and expand shell egg production - The company completed three key acquisitions to complement organic growth, including Fassio Egg Farms, a former Tyson Foods facility for repurposing, and ISE America, Inc. post-fiscal year-end[4](index=4&type=chunk) - The acquisition of ISE America's assets is a strategic move to significantly enhance market reach in the Northeast and Mid-Atlantic states[4](index=4&type=chunk) [Business Environment and Outlook](index=2&type=section&id=Business%20Environment%20and%20Outlook) The company navigates HPAI outbreaks by repopulating affected farms, anticipates strong shell egg demand in fiscal 2025, and plans to expand specialty and cage-free production while maintaining financial strength for growth [HPAI Impact and Supply Outlook](index=2&type=section&id=HPAI%20Impact%20and%20Supply%20Outlook) HPAI remains a significant industry challenge, impacting Cal-Maine Foods' Kansas and Texas facilities with depopulation of approximately **3.1 million laying hens** and **577,000 pullets**, though repopulation is underway with USDA clearance - Since November 2023, HPAI outbreaks have led to the depopulation of approximately **32.8 million commercial laying hens and pullets** in the U.S[9](index=9&type=chunk) - Cal-Maine Foods' facilities in Kansas and Texas were directly impacted, resulting in the total depopulation of approximately **3.1 million laying hens** and **577,000 pullets**[9](index=9&type=chunk) - The affected company locations have been cleared by the USDA to resume operations, with repopulation anticipated to be finished before the end of the calendar year[9](index=9&type=chunk) [Fiscal 2025 Outlook](index=3&type=section&id=Fiscal%202025%20Outlook) For fiscal 2025, Cal-Maine Foods anticipates continued strong shell egg demand, focusing on expanding specialty and cage-free production, and leveraging its financial strength for internal growth and strategic acquisitions - Management believes shell egg demand will remain strong in fiscal 2025, with consumers favoring them as an affordable protein source[12](index=12&type=chunk) - The company will continue to focus on expanding production of specialty and cage-free eggs to meet consumer demand trends[12](index=12&type=chunk) - Cal-Maine Foods has the financial strength to fund internal expansion projects and consider strategic acquisitions to support growth[12](index=12&type=chunk) [Shareholder Returns](index=3&type=section&id=Shareholder%20Returns) In line with its variable dividend policy, Cal-Maine Foods declared a cash dividend for Q4 fiscal 2024, paying out one-third of quarterly net income to shareholders [Dividend Declaration](index=3&type=section&id=Dividend%20Declaration) The company will pay a cash dividend of approximately **$0.77 per share** for Q4 fiscal 2024, payable on August 20, 2024, to shareholders of record as of August 5, 2024 Dividend Declaration Details | Dividend Information | Detail | | :--- | :--- | | **Dividend per Share** | ~$0.77 | | **Record Date** | August 5, 2024 | | **Payable Date** | August 20, 2024 | [Financial Statements](index=5&type=section&id=Financial%20Statements) Unaudited financial statements show decreased annual net sales and net income for fiscal 2024, with a slight Q4 net income increase, and a stronger balance sheet reflecting increased cash, total assets, and stockholders' equity [Summary Statements of Income](index=5&type=section&id=Summary%20Statements%20of%20Income) For fiscal year 2024, net sales were **$2.33 billion** and net income **$277.9 million**, both down from fiscal 2023, while Q4 net sales were **$640.8 million** with net income slightly increasing to **$113.2 million** Summary Statements of Income (In thousands) | (In thousands) | Q4 FY2024 | Q4 FY2023 | FY 2024 | FY 2023 | | :--- | :--- | :--- | :--- | :--- | | **Net sales** | $640,789 | $688,680 | $2,326,443 | $3,146,217 | | **Gross profit** | $186,436 | $198,092 | $541,571 | $1,196,457 | | **Operating income** | $142,188 | $136,225 | $312,452 | $967,726 | | **Net income attributable to CALM** | $113,241 | $110,931 | $277,888 | $758,024 | [Summary Balance Sheets](index=6&type=section&id=Summary%20Balance%20Sheets) As of June 1, 2024, Cal-Maine Foods reported a strengthened balance sheet with total assets increasing to **$2.18 billion**, cash and short-term investments rising to **$812.4 million**, and stockholders' equity growing to **$1.80 billion** Summary Balance Sheets (In thousands) | (In thousands) | June 1, 2024 | June 3, 2023 | | :--- | :--- | :--- | | **Cash and short-term investments** | $812,377 | $647,914 | | **Total current assets** | $1,241,839 | $1,124,925 | | **Total assets** | $2,184,761 | $1,954,525 | | **Total current liabilities** | $227,743 | $182,731 | | **Stockholders' equity** | $1,797,043 | $1,609,583 |

Keep reading if you want a detailed review of the performance of these three stocks this year and the factors that have contributed to making them stocks sell immediately. Cal-Maine Foods (NASDAQ:CALM) is the largest producer and supplier of fresh shell eggs in the U.S. The company almost monopolizes the egg-supplying and producing business, evident from its domination across midwestern, southeastern, and southwestern states in America. Unsurprisingly, these regions account for nearly a quarter of the entir ...