Cal-Maine Foods(CALM)2025-04-08 20:16Financial Performance - Quarterly net sales reached $1.4 billion, with net income of $508.5 million, or $10.38 per diluted share, compared to $703.1 million and $146.7 million, respectively, in the same quarter last year[11] - Cal-Maine Foods reported net sales of $1,417,685,000 for the 13 weeks ended March 1, 2025, a significant increase from $703,076,000 in the same period last year, representing a growth of approximately 101%[37] - The gross profit for the same quarter was $716,115,000, compared to $218,572,000 in the prior year, indicating a gross profit margin increase from 31.1% to 50.5%[37] - The net income attributable to Cal-Maine Foods for the 39 weeks ended March 1, 2025, was $877,573,000, a substantial increase from $164,647,000 in the same period last year[37] Production and Sales - The average number of layer hens increased by 14% year-over-year, and the breeder flocks grew by 33% compared to the prior-year quarter[3] - A record 331.4 million dozen shell eggs were sold, representing a 10.2% increase from 300.8 million dozen in the third quarter of fiscal 2024[13] - The net average selling price per dozen eggs was $4.060, up from $2.247 a year ago, reflecting higher market prices due to reduced supply from HPAI[12] - Farm production costs per dozen were 5.7% lower than the prior-year period, primarily due to favorable commodity pricing for key feed ingredients[16] Acquisitions and Investments - The company announced a definitive agreement to acquire Echo Lake Foods for approximately $258 million, expected to close by the end of fiscal 2025[6] - Echo Lake Foods generated annual revenues of approximately $240 million in 2024, with a five-year CAGR of about 10%[6] - The acquisition of Echo Lake Foods is expected to be accretive to Cal-Maine Foods' earnings starting in fiscal 2026, with significant operational synergies anticipated[7] - The company announced a definitive agreement to acquire Echo Lake Foods, aiming to diversify its product mix and reduce financial volatility[29] Shareholder Returns - The company approved a $500 million share repurchase program and declared a cash dividend of approximately $170 million, or $3.46 per share[3] - Cal-Maine Foods has a new share repurchase program authorized for up to $500 million, although no shares were repurchased during the third quarter of 2025[25][24] Financial Position - Cash and short-term investments increased to $1,240,373,000 as of March 1, 2025, up from $812,377,000 on June 1, 2024[39] - The total assets of Cal-Maine Foods reached $3,081,569,000, compared to $2,184,761,000 in the previous year, reflecting a growth of approximately 41%[39] Regulatory and Compliance - The company is cooperating with a civil investigative demand related to an antitrust investigation into nationwide egg price increases[26] - The company expects support from the USDA, which announced up to $1 billion in investments to address issues affecting the domestic egg supply[27] Share Statistics - The weighted average shares outstanding for diluted earnings per share was 48,971,000 for the quarter, slightly up from 48,884,000 in the previous year[37] Biosecurity Measures - The company has invested over $70 million in biosecurity technology and measures since 2015 to combat ongoing HPAI threats[3]