Accrued Dividends Payable And Dividends per Common Share

6 Months Ended

Nov. 27, 2021

Accrued Dividends Payable And Dividends Per Common Share [Abstract]

Accrued Dividends Payable And Dividends Per Common Share

Note 6 - Accrued Dividends Payable and Dividends per Common Share

We accrue dividends at the end of each quarter according to the Company’s dividend policy adopted by its Board of Directors.

The Company pays a dividend to shareholders of its Common Stock and Class A Common Stock on a quarterly basis for each

quarter for which the Company reports net income attributable to Cal-Maine Foods, Inc. computed in accordance with GAAP

in an amount equal to one-third (1/3) of such quarterly income. Dividends are paid to shareholders of record as of the 60th day

following the last day of such quarter, except for the fourth fiscal quarter. For the fourth quarter, the Company pays dividends

to shareholders of record on the 65th day after the quarter end. Dividends are payable on the 15th day following the record date.

Following a quarter for which the Company does not report net income attributable to Cal-Maine Foods, Inc., the Company will

not pay a dividend for a subsequent profitable quarter until the Company is profitable on a cumulative basis computed from the

date of the most recent quarter for which a dividend was paid. At the end of the second quarter of fiscal 2022, the amount of

cumulative losses to be recovered before payment of a dividend was $

21.1

 million.

On our condensed consolidated statement of operations, we determine dividends per common share in accordance with the

computation in the following table (in thousands, except per share data):

Thirteen Weeks Ended

Twenty-six Weeks Ended

November 27,

November 28,

November 27,

November 28,

Net income (loss)

$

1,173

$

12,155

$

(16,853)

$

(7,244)

Cumulative losses to be recovered prior to

payment of divided at beginning of period

(22,270)

(20,769)

(4,244)

(1,370)

Net income available for dividend

$

—

$

—

$

—

$

—

1/3 of net income attributable to Cal-Maine

Foods, Inc. available for dividend

—

Common stock outstanding (shares)

44,057

Class A common stock outstanding (shares)

4,800

Total common stock outstanding (shares)

48,857

*Dividends per common share = 1/3 of Net income (loss) attributable to Cal-Maine Foods, Inc. available for dividend ÷ Total common stock

outstanding (shares).