EX-99.1 5 cmw1757d.htm PRESS RELEASE

Exhibit 99.1

  Contact: Fred Adams, Jr.
Chairman and CEO
(601) 948-6813

CAL-MAINE FOODS ANNOUNCES
FIRST QUARTER FISCAL 2006 RESULTS

JACKSON, Miss. (October 6, 2005) — Cal-Maine Foods, Inc. (Nasdaq/NM:CALM) today announced results for its first quarter of fiscal 2006 ended August 27, 2005.

        For the first quarter of fiscal 2006, net sales were $79.8 million, compared with net sales of $102.0 million for the first quarter of fiscal 2005. The Company reported a net loss of $8.1 million, or $0.35 per basic share, for the first quarter of fiscal 2006 compared with a net loss of $887,000, or $0.04 per basic share, for the year-earlier period.

        Commenting on the results, Fred Adams, Jr., chairman and chief executive officer of Cal-Maine Foods, Inc., stated, “Results for the first quarter of fiscal 2006 reflected lower market prices for eggs as supply outweighed demand industry-wide during this period. However, as we began our second fiscal quarter, egg prices have improved considerably with the reduction in the nation’s laying flock, which has created a more favorable balance of supply and demand. The next few months are typically a seasonably strong period of demand and we expect further improvement in egg prices. Additionally, the most recent U.S.D.A. forecast indicates a large corn and soybean crop, so we also expect to see favorable feed prices in the months ahead. Finally, our recently announced acquisition of the Hillandale egg operations in Florida is going smoothly, and we are confident that it will be a good addition to Cal-Maine’s overall operations.”

        Cal-Maine Foods, Inc. is primarily engaged in the production, grading, packing and sale of fresh shell eggs. The Company, which is headquartered in Jackson, Mississippi, currently is the largest producer and distributor of fresh shell eggs in the United States and sells the majority of its shell eggs in approximately 28 states across the southwestern, southeastern, mid-western and mid-Atlantic regions of the United States.

        Statements contained in this press release that are not historical facts are forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are subject to risks and uncertainties (contained in the Company’s SEC filings) that could cause actual results to differ materially from those projected. SEC filings may be obtained from the SEC or by contacting the Company.

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CAL-MAINE FOODS, INC. POST OFFICE BOX 2960 * JACKSON, MISSISSIPPI 39207
PHONE 601-948-6813 * FAX 601-969-0905

CALM Reports First Quarter Fiscal 2006 Results
Page 2
October 6, 2005

CAL-MAINE FOODS, INC. AND SUBSIDIARIES
FINANCIAL HIGHLIGHTS
(Unaudited)
(In thousands, except per share amounts)

13 Weeks Ended
August 27,
2005
 August 28,
2004
Net sales     $ 79,756   $ 102,017  
Gross profit    960    10,681  
Operating income (loss)    (9,957 )  (981 )
Income (loss) before income taxes    (12,101 )  (1,397 )

Net income (loss)		   $ (8,108 ) $ (887 )

Net income (loss) per common share:		  
      Basic   $ (0.35 ) $ (0.04 )
      Diluted   $ (0.35 ) $ (0.04 )

Weighted average shares outstanding:		  
      Basic    23,490    24,166  
      Diluted    23,490    24,166  

During the quarter ended August 27, 2005, the Company did not repurchase any shares of its Common Stock pursuant to a stock repurchase plan that expired on July 31, 2005.

SUMMARY BALANCE SHEET
(Unaudited)
(In thousands, except per share amounts)

August 27,
2005
 May 28,
2005
ASSETS            
Cash and cash equivalents   $ 46,181   $ 55,605  
Receivables    28,798    23,415  
Inventories    43,766    45,628  
Other    1,117    1,308  
      Current assets    119,862    125,956  

Fixed assets (net)		    123,955    127,388  
Other assets    14,084    16,190  
      Total Assets   $ 257,901   $ 269,534  
LIABILITIES AND SHAREHOLDERS' EQUITY  
Current portion of long-term debt   $ 10,195   $ 10,149  
Accounts payable    21,467    20,034  
Other current liabilities    10,126    13,086  
Current deferred income taxes    9,240    9,100  
      Current liabilities    51,028    52,369  

Deferred taxes and liabilities		    22,281    22,465  
Long-term debt    71,091    72,845  
Shareholders' equity    113,501    121,855  
      Total liabilities and shareholders' equity   $ 257,901   $ 269,534  

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