Cal-Maine Foods posts Q1 2017 loss of $30.9 million
Staff Writer |
Cal-Maine Foods reported a net loss of $30.9 million, or $0.64 per share, for the first quarter of fiscal 2017, compared to net income of $143.0 million, or $2.95 per share for Q1 2016.
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Dolph Baker, chairman, president and CEO of Cal-Maine Foods, stated, "Our results for the first quarter of fiscal 2017 reflect a disappointing shell egg market with more challenging market conditions and significantly lower market prices than the first quarter of fiscal 2016.
"Based on this report, we expect the shell egg supply will continue to grow through calendar 2016, and then we may begin to see a correction early next year."
The company noted that its first quarter results were also affected by lower co-pack business and a small decline in specialty egg volume compared with the prior year period.
Sales of specialty eggs accounted for 22.9 percent of total number of shell eggs sold and 46.7 percent of our shell eggs revenue for the first quarter of fiscal 2017.
Net sales were $239.8 million, a 60.7 percent decrease compared to $609.9 million for the first quarter of fiscal 2016.
Following a quarter for which the company does not report net income, the company will not pay a dividend with respect to that quarter or for a subsequent profitable quarter until Cal-Maine Foods is profitable on a cumulative basis computed from the date of the last quarter for which a dividend was paid.
Therefore, Cal-Maine Foods did not pay a dividend with respect to the fourth quarter of fiscal 2016 and will not pay a dividend for the first quarter of fiscal 2017.
At August 27, 2016, cumulative losses that must be recovered prior to paying a dividend were $31.3 million. ■
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