Operating income for the quarter ended
Third quarter revenues increased 18.7% to
For our third quarter Cagle's cost of sales increased 14.5% to
Looking forward, cost of sales and earnings continue to be very unpredictable as poultry markets, feed ingredients, energy, packaging and freight costs react to global supply and demand pressures and uncertainty in world financial markets.
Cagle's Inc. /s/ J. Douglas Cagle J. Douglas Cagle Chairman, CEO
Forward-Looking Statements:
Statements contained in this press release that state the intentions, hopes, beliefs, anticipations, expectations or predictions of the future of Cagle's Inc. and its management are forward looking statements. It is important to note that the actual results could differ materially from those projected. Factors that could cause actual results to differ materially from those project in such forward-looking statements include: additional outbreaks of avian influenza or other diseases affecting the production performance and/or marketability of the Company's poultry products; matters affecting the poultry industry in general, including fluctuations in the commodity prices of feed ingredients and chicken; contamination of our products leading to product liability claims and recalls; exposures to risks related to property damage and injuries to persons for which insurance is limited and potentially inadequate; management of our cash resources, particularly in light of our substantial leverage; trade barriers; changes in laws or regulations affecting our operations as well as competitive factors and pricing pressures; and the impact of uncertainties of litigations as well as other risk factors.
Cagle's, Inc. & Subsidiary Consolidated Statements of Income (In Thousands, except per share data) Three Months Ended Nine Months Ended December 29, December 30, December 29, December 30, 2007 2006 2007 2006 Net Sales $66,920 $56,374 $214,849 $172,669 Costs and Expenses: Cost of Sales 65,774 57,454 200,961 173,560 Selling & Delivery and General & Administrative 3,650 3,595 11,172 10,522 Other General Expenses (19) (2) (41) (65) Total Costs and Expenses 69,405 61,047 212,092 184,017 Operating Income (Loss) (2,485) (4,673) 2,757 (11,348) Other Income(Expense): Interest Expense (345) (408) (1,069) (1,675) Gain On Sale Of Unconsolidated Affiliate - - - 18,323 Other Income, Net 40 148 122 311 Total Other Income (Expense), net (305) (260) (947) 16,959 Equity In Earnings Of Unconsolidated Affiliates - - - 1,317 Income Before Income Taxes (2,790) (4,933) 1,810 6,928 Income Taxes Provision (1,021) (1,776) 668 5,348 Net Income $(1,769) $(3,157) $1,142 $1,580 Net Income Per Common Share $(0.38) $(0.67) $0.24 $0.34 Cagle's Inc. Condensed Consolidated Balance Sheet (In Thousands) ASSETS December 29, 2007 March 31, 2007 Current Assets $42,625 $41,139 Investments in Affiliates - - Other Assets 3,905 3,607 Property, Plant, and Equipment (net) 39,155 39,273 TOTAL ASSETS $85,685 $84,019 LIABILITIES & STOCKHOLDER'S EQUITY Current Maturities of Long-term Debt $2,225 $2,098 Trade Accounts Payable 14,765 13,581 Other Current Liabilities 7,600 6,519 Total Current Liabilities 24,590 22,198 Long-Term Debt 14,783 16,467 Other Non-current Liabilities - - Total Stockholders Equity 46,312 45,354 TOTAL LIABILITIES & STOCKHOLDERS EQUITY $85,685 $84,019
SOURCE Cagle's Inc.