LONDON, UK / ACCESSWIRE / October 16, 2017 / Pro-Trader Daily has just published a free post-earnings coverage on Cal-Maine Foods, Inc. (NASDAQ: CALM), which can be viewed by registering at http://protraderdaily.com/optin/?symbol=CALM, following the Company's announcement of its first quarter fiscal 2018 operating results on October 02, 2017. The egg producer reported lower than expected sales and earnings results. Our daily stock reports are accessible for free, and with those to look forward today you also will be signing up for a complimentary member's account at: http://protraderdaily.com/register/.
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For the first quarter of the fiscal year 2018 ended September 02, 2017, Cal-Maine's net sales were $262.8 million compared to $239.8 million for Q1 FY17. The Company's sales missed Wall Street's expectations of $264.1 million.
During Q1 FY18, Cal-Maine's cost of sales totaled $245.5 million, down 1.6% from $249.4 million for Q1 FY17. The drop was primarily driven by a decrease in the volume and cost of egg purchases during the period. Dozens of eggs produced increased 7.4% to 213,570, resulting in higher farm production, processing, and packaging costs, offset by a lower feed cost per dozen produced.
For Q1 FY18, Cal-Maine's feed cost per dozen was $0.375 compared to $0.431 per dozen for Q1 FY17; down 13.0%, resulting in a decrease in cost of sales of $12.0 million for the comparable period.
For Q1 FY18, Cal-Maine's gross profit increased to $17.3 million compared to a gross loss of $9.6 million for Q1 FY17, primarily due to the increased average customer selling prices and sales volumes. In the reported quarter, the Company's selling, general, and administrative expenses were $41.7 million, up 3.5% compared to $40.3 million for the prior year's corresponding quarter.
Cal-Maine reported a net loss of $16.0 million, or $0.33 per basic and diluted share, for Q1 FY18 compared to a net loss of $30.9 million, or $0.64 per basic and diluted share, for Q1 FY17. The Company's loss per share was wider than analysts' estimates of $0.18 per share.
For Q1 FY18, Cal-Maine's dozens of eggs sold increased to 249,464 from 242,325 in Q1 FY17 and the net average selling price per dozen increased to $1.017 from $0.952 in the year ago comparable period, and the net average price of specialty eggs decreased to $1.878 per dozen from $1.973 in Q1 FY17. Cal-Maine's specialty egg revenue was 39.6% of total shell egg revenues in Q1 FY18 compared to 46.7% for Q1 FY17.
During Q1 FY18, Cal-Maine's average customer selling prices for all eggs were up 6.8% on a y-o-y basis. During the reported quarter, specialty eggs excluding co-pack sales, accounted for 21.7% of its total sales volume versus 22.9% for the year ago comparable period.
Capital Resources and Liquidity
Cal-Maine's working capital as on September 02, 2017, was $357.5 million compared to $371.5 million as on June 03, 2017. The Company's current ratio was 6.67 at September 02, 2017, compared to 6.74 at June 03, 2017. The decrease was attributed to net losses in recent periods, along with the use of cash for capital expenditures.
At the end of the reported quarter, Cal-Maine had $4.2 million in outstanding standby letters of credit, which are collateralized by cash for the benefit of certain insurance companies. The Company's long-term debt at September 02, 2017, including current maturities, amounted to $9.7 million compared to $10.9 million at June 03, 2017.
For the thirteen weeks ended September 02, 2017, Cal-Maine utilized $21.5 million of net cash in operating activities, a decrease of $24.0 million compared to net cash used in operations of $45.4 million for Q1 FY17. The improvement in cash flow was attributed to growth in gross profit margins primarily resulting from higher sales volumes and egg selling prices.
On Friday, October 13, 2017, the stock closed the trading session at $41.30, marginally dropping 0.72% from its previous closing price of $41.60. A total volume of 248.98 thousand shares have exchanged hands. Cal-Maine Foods' stock price rallied 8.68% in the last one month, 16.17% in the past three months, and 6.99% in the previous six months. The stock currently has a market cap of $2.02 billion.
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