Cal-Maine nearly triples net income for second quarter

Cal-Maine Foods reported a net income of $109.2 million for the second quarter of fiscal year 2016, nearly tripling the income of $36.6 million for the second quarter of fiscal year 2016. Net income for the first six months of the fiscal year was also up dramatically, going from $64.3 million to $252.3 million.
The periods ended on November 28.
Net sales for the second quarter of fiscal 2016 were $546.0 million, a 44.2 percent increase compared with net sales of $378.6 million for the second quarter of fiscal 2015.  For the first six months of fiscal 2016, net sales were $1,155.9 million compared with net sales of $735.6 million for the prior-year period.
The net income per share numbers for the second quarter and year to date periods for fiscal 2016 and fiscal 2015 reflect the two-for-one stock split for shares of the company’s common stock and Class A common stock, effective October 31, 2014.
Dolph Baker, chairman, president and CEO of Cal-Maine Foods, stated, “Our financial and operating results for the second quarter of fiscal 2016 reflect another very strong performance for Cal-Maine Foods. For the second quarter, overall sales were up 44.2 percent over the same period last year, and were up 57.1 percent through the first half of this fiscal year. This impressive growth is primarily due to higher average selling prices and a modest increase in volumes compared with the same periods a year ago. While egg prices were still at much higher than normal levels at the beginning of our second quarter, they dropped considerably in October before moving back up due to higher demand related to the Thanksgiving holiday. Even with this volatile behavior during the second quarter, our average selling prices for shell eggs were up 42.9 percent compared with the same period a year ago, however, they were down 12.2 percent on a sequential basis compared with the first quarter of fiscal 2016. Egg prices have declined since the end of the second quarter.
“Our industry continues to deal with the significant reduction in the national laying hen flock that occurred this past spring related to the avian influenza (AI) outbreaks in the upper Midwestern United States. While the supply is gradually starting to move back up, the current national laying hen flock reported by the USDA yesterday is still approximately nine percent lower than it was a year ago. Egg prices have moved lower than expected in spite of the reduced supply, and we expect prices will remain volatile until the industry has more clarity on future supply levels.”
Baker notes that while there have been no further reported U.S. outbreaks of highly pathogenic AI, the company continues to closely monitor the situation, and is are working with egg industry associations and government officials to identify ways to mitigate the risk of future outbreaks.
To date, there have been no positive tests for AI at any of the Cal-Maine Foods locations; however, the company has strengthened our biosecurity measures at all of its facilities.

Cal-Maine Foods net income soars in 2016 first quarter

Cal-Maine Foods started its 2016 fiscal year on strong ground, achieving a net income in the first quarter more than five-times larger than what it was during the first quarter of fiscal year 2015.
The company reported net income of $143.0 million, or $2.97 per basic share and $2.95 per diluted share, for the first quarter of fiscal 2016, compared with $27.7 million, or $0.57 per basic and diluted share, for the first quarter of fiscal 2015. The first quarter ended August 29.
The company also experienced a substantial gain in net sales, as net sales for the first quarter were $609.9 million, up from the $356.9 million recorded a year earlier.
Dolph Baker, chairman, president and chief executive officer of Cal-Maine Foods, stated, “Our financial and operating results for the first quarter marked a very strong start to fiscal 2016 with record quarterly sales and net income. Overall sales were up 70.9 percent over the prior year period, as average selling prices for shell eggs spiked to record levels during the first quarter and were up 65.7 percent compared with the same period last year. Volumes were also up slightly in what is typically our slowest quarter, with total dozen shell eggs sold up 2.8 percent over the first quarter of fiscal 2015.”
Baker noted that the egg industry is still feeling the effects of the substantial reduction in the national laying hen flock that occurred this past spring related to the avian influenza (AI) outbreaks in the upper Midwestern United States.
He added that his company believes egg prices will remain very high until the supply situation returns to more normal levels.
“While there have been no further reported outbreaks of AI, we continue to closely monitor the situation and are working with egg industry associations and government officials to identify ways to mitigate the risk of future outbreaks. There have been no positive tests for AI at any of the Cal-Maine Foods locations, however, we have strengthened our biosecurity measures at all of our facilities,” said Baker.

Demand trends for eggs remain strong

While egg prices have gone up significantly since the avian influenza outbreak began, Baker reports that demand for eggs from the retail and egg products markets have been favorable.
“We continue to see strong consumer demand for specialty eggs, and we remain focused on providing our customers with a product mix that meets this demand. For the first quarter, specialty egg sales, including those sold through co-pack arrangements, accounted for 24.5 percent of our total number of shell eggs sold and 27.1 percent of our shell eggs revenue. With a full complement of conventional, nutritionally enhanced, cage-free and organic eggs, we are well positioned to capitalize on additional opportunities to market and sell specialty eggs in fiscal 2016,” said Baker.

Cal-Maine expansion efforts on track

Cal-Maine Foods’ expansion projects are moving forward, Baker reported. The company’s joint venture with Rose Acre Farms in Texas is on schedule for initial flocks to be placed in November 2015. The additional capacity gained from these initiatives will further support the company’s growth strategy in the year ahead, said Baker.

Cal-Maine achieves record sales, net income in FY 2015

Cal-Maine Foods achieved records in both sales and net income during its 2015 fiscal year. The company on July 20 released the results for the fourth quarter and fiscal year ending May 30.
Net sales for the fourth quarter of fiscal 2015 were $403 million, compared with net sales of $371.6 million for the fourth quarter of fiscal 2014. The company reported net income of $46.1 million, or $0.96 per basic share and $0.95 per diluted share, for the fourth quarter of fiscal 2015, compared with $31.5 million, or $0.66 per basic share and $0.65 per diluted share, for the fourth quarter of fiscal 2014.
For the fiscal year 2015, net sales were $1,576.1 million, compared with net sales of $1,440.9 million for the prior-year period. The company reported net income of $161.3 million, or $3.35 per basic share and $3.33 per diluted share, for fiscal 2015, compared with net income of $109.2 million, or $2.27 per basic share and $2.26 per diluted share, for the same period in fiscal 2014.
The net income per share numbers for the fourth quarter and year to date periods for fiscal 2015 and fiscal 2014 reflect the two-for-one stock split for shares of the company’s common stock and Class A common stock, effective October 31, 2014.
Dolph Baker, chairman, president and chief executive officer of Cal-Maine Foods, stated, “Our financial and operating performance for the fourth quarter of fiscal 2015 marked a strong finish to another record year for Cal-Maine Foods. Sales for the fourth quarter were up 8.5 percent over the prior year, reflecting a 6.2 percent increase in total dozen shell eggs sold and 2.6 percent higher average selling prices compared with the fourth quarter of fiscal 2014.
“Throughout fiscal 2015, we have demonstrated consistent execution of our growth strategy with favorable results. Our sales for the year surpassed the previous year’s record by 9.4 percent, supported by strong customer demand from three major market sectors - retail, egg products and exports. We sold 1,063 million dozen shell eggs in fiscal 2015, up 4.9 percent over the prior year and a new annual record for Cal-Maine Foods. We also reported the highest annual net income in the company’s history.
“Specialty egg sales were a key driver of our performance for the year as we continued to expand our market reach. For fiscal 2015, sales of specialty eggs accounted for 19.8 percent of our total number of shell eggs sold and 27.2 percent of our shell eggs revenue. With the growing consumer demand for specialty eggs, we have also pursued additional opportunities to further enhance our product mix and offer a wide variety of healthy choices.”


Cal-Maine farms not hit by avian influenza
The recent outbreaks of avian influenza (AI) in the United States in 2015 have had a significant impact on the egg industry, reducing the national layer flock by over 40 million laying hens and pullets, or approximately 13 percent, Baker noted. That reduction of supply has driven egg prices significantly higher than they were several months ago.
But to date, there have been no positive tests for avian influenza at any of the Cal-Maine Foods locations.
“However, we have significantly increased our biosecurity measures at every location, and we continue to monitor the situation every day. We are also working closely with the egg industry associations and government health officials to identify ways to mitigate the risk of future outbreaks,” said Baker. “While AI has created uncertain market conditions for our industry, we remain focused on managing our operations as efficiently and safely as possible.”


Red River Valley Egg Farm progressing
Cal-Maine Foods in April announced a new production joint venture in Texas with Rose Acre Farms to build a state of the art shell egg production complex with capacity for approximately 1.8 million cage-free laying hens. Construction of the complex has started, and the initial flocks are now expected to be placed in November 2015. This joint venture, Red River Valley Egg Farm LLC, provides a unique opportunity to capitalize on the growing demand for specialty eggs and better serve customers who are looking for a trusted supplier of cage-free eggs, said Baker.

CEO: Cal-Maine in lockdown mode to shun avian influenza

Cal-Maine Foods is doing everything it can to protect its flocks from avian influenza, the CEO of the largest egg producing company in the United States told investors on April 24.
Speaking at the 19^th Annual Burkenroad Reports Investment Conference, Dolph Baker, chairman, president and CEO of Cal-Maine Foods, updated investors about the deadly virus that has been confirmed in 17 states in 2015.
While Baker noted that avian influenza (AI) has had a more devastating effect on the turkey industry in northern states, he added it has hit several  large commercial egg operations in the United States, impacting more than 5 million layers and pullets. However, none of those outbreaks have occurred in Cal-Maine Foods operations, nor have any layer operations in states where Cal-Maine operates experienced avian influenza outbreaks.
“Our company, along with the egg industry, has been very concerned about AI,” said Baker. “We’re pretty much on a lockdown mode, We’re inspecting all vehicles in and out of our locations.”
While the USDA’s mandatory policy calling for birds in infected flocks to be stamped out does help reduce the spread of the virus, Baker said the industry can probably expect continued outbreaks.
“We will not let our guard down,” he said.

Cal-Maine, EPA reach settlement in Clean Water Act case

Cal-Maine Foods has reached an agreement with the U.S. Environmental Protection Agency (EPA) and Justice Department’s Environment and Natural Resources Division that resolves alleged Clean Water Act violations at Cal-Maine’s egg production facility in Edwards, Mississippi.
Under the settlement, Cal-Maine will bring the facility into compliance with its state-issued water discharge permit, significantly reduce nutrient pollution discharges, and improve environmental data collection and reporting practices. The company will also pay a $475,000 penalty to be split evenly between the federal and Mississippi governments.
The settlement, announced by the EPA on April 13, resolves alleged violations of Cal-Maine’s Clean Water Act National Pollutant Discharge Elimination System (NPDES) permit at its Edwards facility, a concentrated animal feeding operation that houses more than 2 million chickens.
Cal-Maine Foods, according to the EPA announcement, discharged pollutants from the production area into a tributary of a nearby creek without permit authorization, and applied wastewater on fields at the facility during winter months when land application was prohibited. Cal-Maine was also accused of committing water sampling, record keeping and reporting violations.
Under the settlement, Cal-Maine is already developing and implementing: procedures for its egg production and land application areas to achieve compliance with its NPDES permit, an employee training policy, and improved record keeping and reporting practices. The procedures were submitted to, and reviewed and approved by EPA and Mississippi officials over the course of settlement negotiations. Cal-Maine has begun implementing these procedures and must comply with all the terms of the settlement by April 30, 2016.

Cal-Maine Foods net income, net sales up in Q3

Cal-Maine Foods on March 30 reported an increase in net income and net sales for the third quarter of fiscal year 2015. The quarter ended February 28.
The egg production company reported net income of $50.9 million, or $1.06 per basic share and $1.05 per diluted share, for the third quarter of fiscal 2015 compared with $42.9 million, or $0.89 per basic and diluted share, for the third quarter of fiscal 2014. The third quarter of fiscal 2014 included $4  million in other income and a $4.8 million tax reduction related to the company’s purchase of the remaining 50 percent interest in Delta Egg Farm.
Net sales for the third quarter of fiscal 2015 were $437.6 million, compared with net sales of $395.5 million for the third quarter of fiscal 2014.


Cal-Maine ahead of 2014 pace for first 9 months of FY 2015
For the first nine months of fiscal 2015, net sales were $1,173.1 million compared with net sales of $1,069.3 million for the prior-year period. The company reported net income of $115.1 million, or $2.39 per basic share and $2.38 per diluted share, for the first nine months of fiscal 2015 compared with net income of $77.7 million, or $1.61 per basic and diluted share, for the same period in fiscal 2014.
The net income per share numbers for the third quarter and nine month periods for fiscal 2015 and fiscal 2014 reflect the two-for-one stock split for shares of the company’s common stock and Class A common stock, effective October 31, 2014.


Cal-Maine delivered ‘a very solid performance,’ CEO says
Dolph Baker, chairman, president and chief executive officer of Cal-Maine Foods, Inc., stated: “Cal-Maine Foods delivered a very solid performance for the third quarter of fiscal 2015 with our net sales up 10.6 percent over the same period last year. The higher sales reflect improved volumes through the holiday season with total dozen shell eggs sold up 5.2 percent over the same period last year. While the national hen flock has reached record levels, the strong demand for shell eggs from the three major market sectors - retail, egg products and exports - was enough to absorb the market’s increased supply. We also benefited from 6.1 percent higher average selling prices compared with the third quarter of fiscal 2014.
“Specialty egg volumes have increased throughout this fiscal year and were up 22.6 percent for the third quarter compared with the prior year,” added Baker. “Specialty egg sales accounted for 20.3 percent of dozen shell eggs sold and 26.9 percent of total shell egg sales revenue for the third quarter of fiscal 2015, compared with 17.4 percent of dozen shell eggs sold and 23.7 percent of total shell egg sales revenue for the third quarter of fiscal 2014. We believe the strong performance of specialty eggs will continue to be a key driver of our growth as we capitalize on favorable consumer demand trends. We provide a wide variety of healthy choices that meet this demand. We will continue to make the appropriate investments to expand our production capabilities for specialty eggs and identify ways to further enhance our product mix.
“Overall, our operations have continued to perform very well in the third quarter with more favorable market conditions than we experienced a year ago. Our feed costs per dozen produced were 5.0 percent lower than the third quarter of fiscal 2014 and 9.1 percent lower through the first nine months of this fiscal year. These lower costs reflect the record corn and soybean crops harvested in the United States last fall, which sufficiently restocked grain supplies ahead of this year’s planting season. Operating income for the third quarter of fiscal 2015 was $72.0 million compared with $46.6 million for the third quarter of fiscal 2014. These results reflect our lower feed and production costs and consistent execution of our strategy to be an efficient, low-cost producer across all of the Company’s operations. We continue to move forward with our expansion projects in Florida, Kansas, Kentucky and Texas, and we look forward to the growth opportunities the enhanced production and improved efficiencies will provide the company. The additional capacity for specialty eggs at both the Kansas and Kentucky facilities will further support our ability to meet the growing demands of our customers.”


Proposition 2 impact on egg markets
Commenting on the impact of California’s Proposition 2 on Cal-Maine Foods and the egg industry in general, Baker said: “Everyone in the egg industry has been focused on the January 1, 2015, effective date for the implementation of Proposition 2 and Assembly Bill 1437 related to egg production standards and sales in California. As expected, this event created an initial disruption in market supply in January, with a higher than normal spike in market prices for the California market. Prices have since moderated, and the shell egg market in California seems to be striking a more favorable balance of supply and demand as producers adjust to the new standards.”


Dividend to be paid to Cal-Maine shareholders
For the third quarter of fiscal 2015, Cal-Maine Foods will pay a cash dividend of approximately $0.35 per share to holders of its common and Class A common stock. Pursuant to Cal-Maine Foods’ variable dividend policy, in each quarter for which the company reports net income, the company pays a cash dividend to shareholders in an amount equal to one-third of such quarterly income. No dividends are paid in a quarter for which the company does not report net income. The amount paid could vary slightly based on the amount of outstanding shares on the record date. The dividend is payable May 14, to shareholders of record on April 29.

Cal-Maine Foods’ net income, sales up in second quarter

Cal-Maine Foods reported a jump in net income and sales for the second quarter of fiscal year 2015. The quarter ended November 29, 2014.
The company reported net income of $36.6 million, or $0.76 per basic share and $0.76 per diluted share, for the second quarter of fiscal 2015 compared with $26.1 million, or $0.54 per basic and $0.54 diluted share, for the second quarter of fiscal 2014. Net sales for the second quarter of fiscal 2015 were $378.6 million, a 6.9 percent increase compared with net sales of $354.3 million for the second quarter of fiscal 2014.
Cal-Maine Foods reported net income of $64.3 million, or $1.34 per basic share and $1.33 per diluted share, for the first half of fiscal 2015 compared with net income of $34.9 million, or $0.73 per basic share and $0.72 per diluted share, for the year-earlier period. For the first six months of fiscal 2015, net sales were $735.6 million compared with net sales of $673.8 million for the prior-year period.
The net income per share numbers for the second quarter and six month periods for fiscal 2015 and fiscal 2014 reflect the two-for-one stock split for shares of the company’s common stock and Class A common stock, effective October 31.
Dolph Baker, chairman, president and chief executive officer of Cal-Maine Foods, stated: “We are pleased with the continued growth in sales and improved operating performance for the second quarter of fiscal 2015. These results reflect both a 4.2 percent increase in total dozens of shell eggs sold and 2.9 percent higher average selling prices compared with the second quarter of fiscal 2014.
“Our specialty egg sales continued to trend higher and accounted for 19.0 percent of dozens sold and 26.8 percent of total shell egg sales revenue for the second quarter. Specialty eggs continue to be an important area of focus for Cal-Maine Food’s growth strategy. We have recently expanded our market reach through our latest joint venture, Southwest Specialty Eggs LLC, with licensing agreements for the sale of Eggland’s Best and Land O’ Lakes branded specialty eggs, as well as 4Grain, Farmhouse Eggs and other premium brands in Arizona, southern California and Nevada. We will continue to identify ways to enhance our product mix and provide a variety of healthy choices for our customers.”
Baker added, “We experienced strong demand and favorable market conditions during the second quarter of fiscal 2015. Our feed costs were 11.0 percent lower than the same period a year ago, and 10.6 percent lower through the first half of this fiscal year. While corn and soybean meal basis prices are still at relatively high levels, we expect to benefit from more stable feed costs in fiscal 2015 compared to our last fiscal year.
“Overall, our operations have continued to perform very well this quarter and through the first half of this fiscal year. Operating income for the second quarter of fiscal 2015 was $55.6 million compared with $40.9 million for the second quarter of fiscal 2014. These results reflect our lower costs and our focused efforts to be an efficient, low-cost producer across all of the company’s operations. We are pleased with our progress at our latest expansion projects in Florida, Kansas, Kentucky and Texas, and we believe the additional capacity and improved efficiencies will result in less dependence on outside egg purchases. We are also expanding our capacity for specialty eggs at both  the Kansas and Kentucky facilities, which will enhance our ability to meet the needs of our customers.”


Cal-Maine Foods keeping eye on industry changes in California
While Baker said the company is pleased with its performance during the first half of the fiscal year and is looking forward to opportunities in the second half, he did express some caution as the industry undergoes changes because of new laws in California.
“Along with the rest of the egg industry, we will be closely monitoring the pending implementation of Proposition 2 and Assembly Bill 1437 related to egg production standards and sales in California,” said Baker. “This legislation, scheduled to be effective January 1, 2015, could have a significant impact on egg production throughout the country. While it is too early to determine the outcome for our operations, we will continue to manage the aspects of our business we can control. As such, we remain focused on the key elements of our growth strategy: identify value-added acquisition opportunities, provide the right product mix for our customers with expanded sales of specialty eggs, and maximize our operating efficiencies. We believe these efforts will continue to produce favorable results for our customers and shareholders in fiscal 2015.”

Cal-Maine Foods announces two-for-one stock split

Cal-Maine Foods’ board of directors has approved a two-for-one stock split for shares of the company’s common stock and Class A common stock, to be effected via a stock dividend. Shareholders will receive one share of stock for each share they hold. The new shares will be distributed on October 31 to shareholders of record at the close of business on October 17.
On July 25, the board recommended to the shareholders of the company that its Amended Certificate of Incorporation be amended to provide for sufficient authorized shares to facilitate a two-for-one split. At the company’s annual meeting of shareholders held October 3 in Jackson, Mississippi, shareholders approved the amendment to increase the number of authorized shares of $0.01 par value common stock to 120,000,000 from 60,000,000 and increase the number of authorized shares of $0.01 par value Class A common stock to 4,800,000 from 2,400,000. The company will continue to pay dividends on all common shares and Class A common shares pursuant to Cal-Maine Foods’ variable dividend policy.
Dolph Baker, chairman, president and chief executive officer of Cal-Maine Foods, stated: “We believe the board’s action to implement a stock split reflects its confidence in Cal-Maine Foods’ prospects for further growth. We expect the stock split will expand the distribution and enhance the market liquidity of the company’s shares and serve to benefit both our current and future shareholders.”

Analysts: Cal-Maine Foods may not be a good investment now

• Cal-Maine Foods saw its net income increase more than threefold and its sales increase 12 percent during the first quarter of fiscal year 2015, but some analysts are skeptical that the largest egg producer in the United States can retain that kind of financial strength.
  “While the valuation looks appealing based on the current metrics and long-term reported growth, the current operating conditions appear not sustainable as high egg prices and lower feed costs will undoubtedly result in a built-up capacity, thereby hurting future prices,” a Seeking Alpha analyst wrote.
  Cal-Maine Foods on September 29 released the financial results of its first quarter ending August 30, citing its net income jumped from $8.8 million for the first quarter of 2014 to $27.7 million. The net income per share was $1.14 per diluted share, three cents below analysts’ expectations.
  Dolph Baker, the company’s president and CEO, noted that Cal-Maine Foods is optimistic about its outlook for the remainder of the fiscal year, but also provided words of caution, citing that USDA reports indicate the national layer flock is at a record high level, possibly increasing the future egg supply and putting downward pressure on egg prices.
  California’s Proposition 2, which will take effect January 1, 2015, makes it unlawful to house layer hens in battery cages, potentially impacting the U.S. egg industry as a whole.

Cal-Maine Foods triples net income in 1Q 2015

Cal-Maine Foods, the largest egg producer in the United States, on September 29 reported a net income of$27.7 million, or $1.15 per basic share and $1.14 per diluted share, for the first quarter of fiscal 2015 compared with net income of $8.8 million, or $0.36 per basic and diluted share, for the year-earlier period. The quarter ended August 30.
For the first quarter of fiscal 2015, Cal-Maine’s net sales were $356.9 million, an increase of 12 percent compared with net sales of $319.5 million for the first quarter of fiscal 2014.
Dolph Baker, chairman, president and chief executive officer of Cal-Maine Foods, stated: “We are pleased with our financial and operating performance for the first quarter, marking a strong start to fiscal 2015. Our increased sales reflect higher volumes and higher average selling prices compared with the first quarter last year. Consumer demand for eggs has been very favorable and we experienced continued strong demand from all the major market segments including retail, egg product and exports. Sales of specialty eggs have continued to trend higher and accounted for 18.8 percent of our total number of shell eggs sold and 26.8 percent of our shell egg sales revenue for the first quarter of fiscal 2015.”
Company grows with Southwest Specialty Eggs venture
As previously announced on July 25, the company entered into a new joint venture for specialty egg sales with Hickman’s Egg Ranch, Inc., based in Buckeye, Arizona. The new joint venture, known as Southwest Specialty Eggs LLC, acquired the Eggland’s Best Inc. franchise for the state of Arizona. On September 12, Southwest Specialty Eggs, LLC, announced the acquisition of the Egg-Land’s Best Inc. franchise for the southern California market region that includes Clark County and Las Vegas, Nevada. As a result of these acquisitions, Southwest Specialty Eggs LLC has licensing agreements for the sale of Eggland’s Best and Land O’ Lakes branded specialty eggs, as well as 4Grain, Farmhouse Eggs and other premium brands in these market regions.
Baker added, “These transactions are commensurate with our growth strategy to expand our market reach in specialty egg sales. Consumer demand for specialty eggs has continued to grow and Cal-Maine Foods is well positioned to meet this demand with a variety of healthy choices for our customers. We will continue to focus on enhancing our product mix with a full complement of conventional, cage-free, organic and nutritionally enhanced eggs.
“Our operations have run well this summer and we were able to benefit from lower feed costs in the first quarter of fiscal 2015 compared with the same period last year. Our average feed costs were 48.4 cents per dozen, down 11 percent from the first quarter of fiscal 2014. However, we continue to pay relatively high basis levels for our primary feed ingredients, particularly soybean meal, and we expect this trend to continue until the fall harvest is in and supplies are replenished. Operating income was $41.2 million for the first quarter compared with $11.1 million a year ago. These results reflect our lower feed costs and our management team’s focused efforts throughout our operations to be an efficient, low-cost producer.
Cal-Maine looks forward to remainder of FY 2015
While Baker expects there to be a number of uncertainties in the egg industry for the rest of its fiscal year, he is delivering an optimistic outlook.
“Looking ahead to the remainder of the year, we are monitoring macroeconomic conditions that could have an impact on Cal-Maine Foods and the egg industry. The current USDA reports indicate the national laying flock is at a record high level, which could increase the future egg supply and put downward pressure on egg prices. Additionally, the pending implementation of Proposition 2 and Assembly Bill 1437 related to egg production standards and sales in California is expected to be effective January 1, 2015. While the final outcome is still uncertain, this legislation could have a significant impact on egg production throughout the country and is being closely watched by everyone in our industry.
“We are pleased with Cal-Maine Food’s performance to date, and we believe the fundamentals of our business support continued growth and profitability for fiscal 2015,” added Baker. “The expansion projects for our operations in Florida, Kansas, Kentucky and Texas are moving forward, and the additional capacity and improved efficiencies will result in less dependence on outside egg purchases. In addition, we will significantly expand our capacity for specialty eggs at both the Kansas and Kentucky facilities. The more favorable growing conditions this summer should improve the yield of this year’s corn and soybean crops and support lower feed costs for the remainder of this fiscal year once the harvest season is over. Additionally, we believe our focused marketing efforts to expand specialty egg sales will enhance our ability to meet the changing demands of our customers. Overall, we believe we have the right growth strategy in place and look forward to the opportunities ahead for Cal-Maine Foods in fiscal 2015.”
For the first quarter of fiscal 2015, Cal-Maine Foods will pay a cash dividend of approximately $0.381per share to holders of its common and Class A common stock.

Cal-Maine net income improves 40 percent during 3rd quarter

Cal-Maine Foods has reported a 40 percent increase in net income for the third quarter of fiscal year 2014, recording a net income of $42.9 million. The Cal-Maine Foods third quarter ended March 1.
Cal-Maine Foods also reported improved net income for the first nine months of the fiscal year, with the Cal-Maine Foods net income jumping to $77.7 million, compared to the net income of $54.3 million recorded during the first nine months of fiscal year 2013.
Net sales for the third quarter of fiscal 2014 were $395.5 million, compared with net sales of $360.4 million for the third quarter of fiscal 2013. For the first nine months of fiscal 2014, net sales were $1,069.3 million compared with net sales of $962.2 million for the prior-year period.
Dolph Baker, chairman, president and chief executive officer of Cal-Maine Foods, stated, "Cal-Maine Foods delivered a solid performance for the third quarter of fiscal 2014 with our net sales up 10 percent over the same period last year. The higher sales reflect both improved volumes through the holiday season and higher average selling prices compared with the third quarter of fiscal 2013. Consumer demand for shell eggs has been strong at the retail level for both generic and specialty eggs, supported by below average temperatures across the country. In addition, the egg products segment of the industry has continued to experience strong demand due to the introduction of breakfast items at many quick serve restaurants, as well as increased exports.
"Sales of specialty eggs have increased throughout this fiscal year and were up 9.0 percent for the third quarter," added Baker. "Specialty egg sales accounted for 17.4 percent of dozen eggs sold and 23.7 percent of total shell egg sales revenue for the third quarter of fiscal 2014, compared with 16.7 percent of dozen eggs sold and 23.6 percent of total shell egg sales revenue for the third quarter of fiscal 2013. We believe the performance of specialty eggs will continue to be a key driver of our growth as we capitalize on favorable consumer demand trends. We remain focused on identifying additional opportunities to market and sell specialty eggs and enhance our product mix."
Baker added that Cal-Maine Foods was able to benefit from lower feed costs compared with the same period in 2013, and that operations have continued to run well. The Cal-Maine Foods board recently approved production expansion projects for our existing operations in Florida, Texas and Kentucky, which will further enhance operating efficiencies and allow Cal-Maine Foods to purchase fewer eggs in the spot egg market where prices may be more expensive, added Baker.
As previously announced, Cal-Maine Foods on March 1 completed the acquisition of 50 percent of the membership interests of Delta Egg Farm from Sunbest Foods of Iowa, Inc., a Moark affiliate. Delta Egg Farm was previously an unconsolidated joint venture of the company. As a result of this transaction, Delta Egg Farm is now a wholly owned subsidiary of Cal-Maine Foods. For the third quarter of fiscal 2014, the company recorded a non-recurring, non-cash gain of $4.0 million in other income for the excess of the purchase price over the carrying value of the company's 50 percent investment in the joint venture. This gain is non-taxable, and therefore resulted in a $1.5 million reduction to the company's income tax expense for the third quarter of fiscal 2014. Additionally, the company recorded a $3.7 million decrease to deferred income tax liabilities related to the tax basis of the equity investment in the joint venture. Delta Egg's assets include a feed mill and egg production complex with capacity for approximately 1.2 million laying hens, located near Delta, Utah, and an organic egg production complex with capacity for approximately 400,000 laying hens located near Chase, Kan.
Baker added, "We are pleased to assume the full ownership and management of Delta Egg Farm, LLC as we integrate these additional facilities into our operations. This transaction further advances our strategy to expand our capacity and grow our business through selective acquisitions. We look forward to the additional market opportunities ahead for Cal-Maine Foods in fiscal 2014."

Cal-Maine Foods completes acquisition of egg farm

Cal-Maine Foods has completed the acquisition of 50 percent of the membership interests of Delta Egg Farm LLC from Sunbest Foods of Iowa, a Moark LLC affiliate, according to a company press release. With the completion of this transaction, Delta Egg Farm is now a wholly-owned subsidiary of the company.
Cal-Maine Foods purchased the membership interests for a total of $17 million.
Delta Egg Farm includes a feed mill and egg production complex with capacity for approximately 1.2 million laying hens, located near Delta, Utah, and an organic egg production complex with capacity for approximately 400,000 laying hens located near Chase, Kan.
Based in Jackson, Miss., Cal-Maine Foods is the largest producer and distributor of fresh shell eggs in the U.S., selling its eggs in 29 states.

Cal-Maine Foods announces passing of Jack B. Self

Cal-Maine Foods on February 18 announced the passing of Jack B. Self, who served as the company's vice president of operations - production. Self, age 84, had been an employee of Cal-Maine Foods since 1968.
Commenting on the announcement, Dolph Baker, chairman, president and chief executive officer, said, "All of us at Cal-Maine Foods are deeply saddened by the death of our good friend and colleague, Jack Self. He has been a valued member of the Cal-Maine Foods family for over 46 years and played an important role in the company's growth and development. More importantly, Jack served as a great mentor and teacher to many of us throughout the company. He was also well respected in our industry and has built a legacy that will survive him in the years to come. During the coming days, our prayers and support will be with Jack's family."

Cal-Maine Foods announces agreement to acquire remaining interests in Delta Egg Farm

Cal-Maine Foods announced on February 17 that it has reached an agreement to acquire 50 percent of the membership interests of Delta Egg Farm from Sunbest Foods of Iowa, Inc., a Moark affiliate. Cal-Maine Foods currently owns the remaining 50 percent of Delta Egg Farm, so Delta Egg Farm will become a wholly owned subsidiary of Cal-Maine Foods.
Pursuant to this agreement, Cal-Maine Foods will purchase the membership interests for a total of $17 million. Delta Egg Farm owns and operates a feed mill and egg production complex with capacity for approximately 1.2 million laying hens, located near Delta, Utah, and an organic egg production complex with a capacity for approximately 400,000 laying hens located near Chase, Kan. The transaction is expected to close on March 1.
Commenting on the announcement, Dolph Baker, chairman, president and chief executive officer of Cal-Maine Foods, Inc., said, "While we have enjoyed a long-term working relationship with Moark and Sunbest Foods of Iowa, we are excited about the opportunity to take over the ownership and management of Delta Egg Farm, LLC. We look forward to the opportunity to continue to expand our business and provide greater value for our shareholders."

Cal-Maine Foods sees earnings jump 83 percent for second quarter of FY 2014

Earnings for Cal-Maine Foods during the second quarter of the 2014 fiscal year surged 83 percent when compared to the second quarter of 2013. Cal-Maine Foods, the largest producer and distributor of fresh shell eggs in the United States, released its financial results for the quarter ending November 30 on December 30.
Net sales for the second quarter of fiscal 2014 were $354.3 million, an eight percent increase compared with net sales of $328.9 million for the second quarter of fiscal 2013. Cal-Maine Foods reported net income of $26.1 million, or $1.09 per basic share and $1.08 per diluted share, for the second quarter of fiscal 2014 compared with $14.3 million, or $0.60 per basic and diluted share, for the second quarter of fiscal 2013.
For the first six months of fiscal 2014, net sales were $673.8 million compared with net sales of $601.8 million for the prior-year period. The company reported net income of $34.9 million, or $1.45 per basic share and$1.44 per diluted share, for the first half of fiscal 2014 compared with net income of $23.7 million, or $0.99 per basic and diluted share, for the year-earlier period.
Lower feed prices and higher average selling prices helped Cal-Maine Foods second-quarter earnings, as well as the Cal-Maine Foods acquisition of Maxim Production completed in November 2012.
"We are pleased with the continued growth in sales and improved operating performance for the second quarter of fiscal 2014. These results reflect the additional volumes related to the Maxim acquisition, completed in November 2012, which contributed to the 6.2 percent growth in dozens sold during the quarter. Average selling prices were up one percent compared with the second quarter of fiscal 2013," said Dolph Baker, chairman, president and chief executive officer of Cal-Maine Foods.
"Our specialty egg sales continued to trend higher and accounted for 16.4 percent of dozens sold and 23.7 percent of total shell egg sales revenue for the quarter. Specialty eggs are an important area of focus for Cal-Maine Food's growth strategy as they continue to gain popularity with consumers who are looking for alternatives and willing to pay for premium products. Specialty egg prices, which are typically higher and less cyclical than regular egg prices, were up 4.1 percent in the second quarter of fiscal 2014 compared with the same period last year. We will continue to identify ways to enhance our product mix in line with changing customer demand trends."
Baker added, "We experienced favorable egg markets during the second quarter of fiscal 2014. Our feed costs, which remain at historically high levels, were 15 percent lower than a year ago. We are optimistic feed costs will remain near current levels, but believe that prices of corn and soybean meal, our principal feed ingredients, will remain volatile for the balance of our fiscal year. Overall, our operations performed very well and our operating income for the second quarter of fiscal 2014 was $40.9 million compared with $20.4 million for the second quarter of fiscal 2013. These results reflect higher sales volumes and our continued efforts to be an efficient, low-cost producer. We are very pleased with our performance through the first half of fiscal 2014 and look forward to the new opportunities ahead for Cal-Maine Foods."

Cal-Maine Foods reports increase in net sales, loss in earnings

Cal-Maine Foods reported an increase in net sales for the fourth quarter of 2013, but a settlement of a direct purchaser class claim against the company hurt profits, as Cal-Maine Foods experienced a net loss for the quarter ending June 1.
For the fourth quarter of fiscal 2013, net sales were $325.9 million compared with net sales of $275.2 million for the fourth quarter a year ago, the company announced on July 29. The company reported a net loss of $3.8 million for the fourth quarter of fiscal 2013 compared with net earnings of $37.3 million, for the same period in 2012.
Results for the fourth quarter of 2013 include a one-time charge of $17.0 million after tax, related to the settlement of a direct purchaser class claim against Cal-Maine Foods. Results for the fourth quarter of fiscal 2012 included a one-time gain of approximately $27 million after tax, as a result of a distribution from Eggland's Best Inc. related to the joint venture between Eggland's Best and Land O'Lakes, announced on May 1, 2012. Excluding these one-time items, net earnings were $13.2 million  for the fourth quarter of fiscal 2013 compared with $10.3 million, or $0.44 per basic share, for the fourth quarter of fiscal 2012. The fourth quarter of fiscal 2013 had 13 weeks compared with 14 weeks in the prior year period.
For the fiscal year 2013, net sales were $1.3 billion compared with net sales of $1.1 billion for fiscal 2012. Cal-Maine Foods reported a net income of $50.4 million for fiscal 2013 compared with net income of $89.7 million in fiscal year 2012. Excluding the one-time items described above for the fourth quarter of each fiscal year, the net income for fiscal year 2013 was $67.5 million, with $62.7 million in fiscal year 2012. Fiscal year 2013 had 52 weeks compared with 53 weeks in fiscal year 2012.
As announced on July 23, Cal-Maine Foods reached a settlement in an egg antitrust class action claim, whereby the company has agreed to make a single payment of $28 million, which amounts to a charge of $17.0 million after tax.
Dolph Baker, chairman, president and CEO of Cal-Maine Foods, stated: "We believe we have negotiated a settlement for an amount that is in the best interest of our company and our shareholders. While the one-time charge related to the settlement affected our fourth quarter and fiscal 2013 financial results, we had a solid operating performance and we do not expect any material future impact on our operations. With this distraction behind us, we will focus on our business strategy and the opportunities ahead in fiscal 2014."
Commenting on the results for the fourth quarter and fiscal 2013, Baker said: "We were pleased with our results with our fourth quarter sales up 18 percent over the same period a year ago. These results reflect higher volumes related to acquisitions with a 6 percent increase in eggs produced and sold compared with the same period a year ago. Notably, we achieved this growth even though we had an extra week of sales in the previous year's fourth quarter.
"For the year, we were pleased to exceed our previous year's sales record with $1.3 billion in sales. We experienced strong demand for shell eggs throughout the year from our retail, egg product and export customers. Sales of specialty eggs accounted for 16.4 percent of our total number of eggs sold and 23.7 percent of our shell egg sales revenue for the year. Specialty eggs have been an important area of strategic focus for Cal-Maine and, as a result, we achieved a 7.8 percent increase in specialty egg volume for the year and a 6.1 percent increase in specialty egg selling prices. Overall, our average selling prices were up 7.9 percent in fiscal 2013. We expect specialty eggs, which have a higher retail selling price, will continue to gain market share over regular eggs as more consumers are willing to pay for these premium products," Baker said.
Operations have continued to run well in fiscal 2013, Baker said, in spite of experiencing higher and more volatile feed costs primarily related to a tight national corn supply. For the year, feed costs per dozen were up 15 percent compared with fiscal 2012, and the higher input costs adversely affected gross profit margins for Cal-Maine Foods. Looking ahead, Baker is cautiously optimistic about the yield of this year's corn and soybean crops which could provide some relief to feed costs in fiscal 2014.
"Overall, we are very pleased with Cal-Maine's performance in fiscal 2013 and our ability to execute our strategy in the marketplace. We have worked hard this year to integrate the operations of both the Pilgrim's Pride and Maxim egg operations and we are pleased with the operating synergies we have achieved from these acquisitions. In addition, we have the opportunity to leverage the additional capacity from these facilities and expand our market reach," said Baker.

Cal-Maine Foods pursuing more acquisitions

The largest egg producer in the United States has visions of getting even bigger, with potential acquisitions at the top of its growth strategy.
Cal-Maine Foods, with 33.5 million laying hens in production,  tops the list of the nation's biggest egg producers. It is also one of few publicly traded producers. However, some of the larger family-owned companies may soon fit into Cal-Maine's business plan.
 "We're excited about the future. We think we have a lot of opportunities to grow our business, and we look forward to that," Cal-Maine President and CEO Dolph Baker said while participating in the 17^th annual Burkenroad Reports Investment Conference, held April 26 in New Orleans.
Acquisition opportunities are plentiful
When it comes to the purchase of a competing egg company, Cal-Maine believes no company is too big or too small. Showing a list of the country's 60 biggest producers published in the February issue of Egg Industry magazine, Baker said "We consider all of these potential targets."
Baker specifically identified six of the companies among the top 10 - Rose Acre Farm, Daybreak Foods, Rembrandt Enterprises, Hillandale Farms, Trillium Farm Holdings and Midwest Poultry Services - as being family owned.
"This is a family business," said Baker. "With all the regulatory and compliance issues everyone's facing in this current environment, these families are getting tired and frustrated.
"We know all the companies, they know us, and they know our track record of getting the deal done. There will continue to be a generational turnover in the family business, and we think that's a great opportunity for Cal-Maine Foods."
Previous acquisitions helped hatch success
Since 1989, Cal-Maine Foods has completed 18 acquisitions that have helped it become the industry leader.  Through that growth, Baker said the company has been able to expand capabilities in its existing markets, broaden its geographic reach and strengthen its customer relationships.
Two of the company's most recent acquisitions - the egg division of Pilgrim's and Maxim Production Co. - took place in the latter half of 2012.
Pilgrim's egg division, which was only a small portion of its former parent company, gave Cal-Maine an additional 1.4 million hen production capacity. Maxim provided them with an additional 3.5 million hen production capacity and .5 million more contract hens.
Specialty egg production growing with demand
The demand for nutritionally-enhanced eggs, cage-free eggs and organic eggs keeps increasing, so Cal-Maine views its specialty egg markets as another way to expand the company.
Because specialty eggs do not follow commodity prices, Baker said, Cal-Maine has more pricing power. That flexibility helps the company offset increased feed and production costs, and has contributed to improving Cal-Maine's bottom line. Baker reported that in 2012, 16.4 percent of its eggs sold were specialty eggs, though they accounted for 23.4 percent of the company's sales revenues.
Wal-Mart and Publix, Cal-Maine's two biggest customers, reported an increase of 3.9 percent in specialty egg sales, and the company's sales team has been working with the two grocery giants on their strategies to improve the product mix and enhance shelf positioning.
Cal-Maine also expects to benefit from a joint venture between Eggland's Best and Land O' Lakes to produce and sell branded specialty eggs. That agreement, announced last May, gave Cal-Maine an additional license to market the Land O' Lakes brands, Baker said, because Cal-Maine is the largest franchisee for Eggland's Best.
"Proven brand recognition of two leaders in the egg business enhances Cal-Maine's market reach in specialty eggs," Baker said.
Also in an effort to increase sales of specialty eggs, Cal-Maine is adding to its cage-free capacities in Bremen, Kentucky, and Flatonia, Texas, said chief financial officer Tim Dawson, who also participated in the conference.

Cal-Maine reports increase in net income

Cal-Maine Foods reported higher net sales and a higher net income for the third quarter 2013 and nine months ending March 2. The results were released on April 1.
Net sales for the third quarter of fiscal 2013 were $360.4 million compared with net sales of $303.7 million for the same quarter of fiscal 2012. The company reported net income of $30.6 million, or $1.27 per basic share, for the third quarter of fiscal 2013 compared with net income of $26.1 million, or $1.09 per basic share, for the third quarter of fiscal 2012.
For the first nine months of fiscal 2013, net sales were $962.2 million compared with net sales of $837.9 million for the prior-year period. The company reported net income of $54.3 million, or $2.26 per basic share, for the first nine months of fiscal 2013 compared with net income of $52.5 million, or $2.20 per basic share, for the prior-year period.
Dolph Baker, chairman, president and chief executive officer of Cal-Maine Foods, Inc., stated, "Cal-Maine Foods delivered a solid performance for the third quarter of fiscal 2013 with our net sales up 19 percent over the same period last year. The higher sales reflect both improved volumes from our recent acquisitions and higher average selling prices compared with the third quarter of fiscal 2012. Specialty egg sales have been steadily increasing throughout this fiscal year and accounted for 16.7 percent of dozen eggs sold and 23.6 percent of total shell egg sales revenue for the third quarter of fiscal 2013, compared to 16.4 percent of dozen eggs sold and 23.4 percent of total shell egg sales revenue for the third quarter of fiscal 2012. We remain focused on identifying additional opportunities to market and sell specialty eggs and meet the increasing demand from our customers. We believe the performance of specialty eggs will be a key driver of our future growth.
"Our feed costs have experienced significant price increases during fiscal 2013 and the higher input costs have continued to adversely affect our gross profit margins," added Baker. "For the third quarter, our feed costs were up 22 percent over the same period in fiscal 2012. However, our management team has continued to focus on running efficient operations and we are pleased with our profitable performance in a challenging environment. Looking ahead, we expect the extremely tight national corn supply will continue to be a concern through the summer months and keep pressure on our feed costs."
"We believe Cal-Maine Foods is on track for another successful year in fiscal 2013. In spite of higher feed costs, our operations continue to run well. We have worked hard to integrate the two acquisitions completed this fiscal year and to leverage our capabilities in these additional locations. We expect to realize further operating synergies with the expanded capacity and we look forward to new market opportunities for Cal-Maine Foods," Baker concluded.
As previously disclosed, on August 10, 2012, and November 15, 2012, the company purchased the commercial egg assets of Pilgrim's Pride Corporation and Maxim Production Co., Inc., respectively. On a comparable basis, excluding the acquisitions, for the thirteen-week period ended March 2, 2013, net sales were $318.1 million and dozens sold were 223.5 million, and for the thirty-nine week period ended March 2, 2013, net sales were $897.9 million and dozens sold were 653.8 million.
Cal-Maine Foods, Inc. is primarily engaged in the production, grading, packing and sale of fresh shell eggs, including conventional, cage-free, organic and nutritionally-enhanced eggs. The company, which is headquartered in Jackson, Miss., is the largest producer and distributor of fresh shell eggs in the United States.

Cal-Maine Foods reports drop in profits

Cal-Maine Foods Inc. has announced the results for the company's fiscal year 2013 second quarter and six months ended December 1, 2012, showing a decrease in net profits from 2012.
Despite an increase of sales, the company reported net income of $14.3 million for the second quarter compared with a net income of $23.3 million for the second quarter of fiscal 2012. The company also reported a net income of $23.7 million for the first half of fiscal 2013 compared with net income of $26.4 million for the year-earlier period.
"We are pleased with the continued growth in sales for the second quarter of fiscal 2013; however, our operating results also reflect challenging market conditions and increased input costs," said Dolph Baker, chairman, president and CEO of Cal-Maine Foods. "The higher sales reflect a 9.1 percent growth in dozens sold and a 4 percent increase in average selling prices compared with the second quarter of fiscal 2012. Our specialty egg sales accounted for 16.4 percent of dozens sold and 22.9 percent of total shell egg sales revenue for the quarter. Specialty eggs are an important area of focus for Cal-Maine Food's growth strategy as they continue to gain popularity with consumers looking for healthy choices, and have higher and less cyclical retail selling prices. Specialty egg prices were up 4.8 percent in the second quarter of fiscal 2013 compared with the same period last year."
Baker said profits for the second quarter of fiscal 2013 were hurt by higher costs for corn and soybean meal and additional expenses related to recent acquisitions.
"In addition, according to the most recent [U.S. Department of Agriculture] report, the number of laying hens on December 1, 2012, was 2.5 percent higher compared with a year ago, affecting the current market supply of eggs. However, the hatch for egg-type chicks has declined over the past two consecutive years and was down 2.9 percent for the first 11 months of calendar 2012 compared with the same period in calendar 2011. While we note these market dynamics for Cal-Maine Foods and our industry, we remain focused on executing our strategy to be an efficient low-cost producer," said Baker.
Cal-Maine expanded operations in fiscal 2013, acquiring the commercial egg production and related assets of Texas-based Maxim Production Co. Inc., including a feed mill and two production complexes with capacity for approximately 3.5 million laying hens with related pullet capacity. The company also added related contract capacity for approximately 500,000 laying hens.
"This transaction, along with our previous acquisition of the Pilgrim's Corp. egg production assets, further advances our strategy to grow our business through selective acquisitions," said Baker. "Our management team is focused on making the right investments to ensure a successful integration of these additional facilities. We are pleased with our progress to date and look forward to the new opportunities ahead for Cal-Maine Foods."

Cal-Maine Foods posts Q4 and FY 2010 results

For the 52 weeks ended May 29, Cal-Maine Foods Inc. posted a net income of $67.8 million compared with $79.5 million, a 14.6% decline compared with FY 2009. Earnings per share declined 14.9% from $3.34 to $2.85 for FY 2010.
Net sales attained $910.1 million, 22% less than the $928.8 million achieved in FY 2009. During FY 2010 Cal-Maine Foods sold 805,399 million dozen (777,885 million dozen FY 2009), of which 79% was derived from Company flocks compared to 77% in the previous year. Net average unit revenue was $108/dozen compared to a 5% decline from $1.14 in 2009. Specialty egg sales increased by 4.3% to represent 14.4% of sales compared to 13.8% in 2009 and generated 21.4% of revenue. From the data presented, generic eggs were sold at an average of $1.03/dozen compared to $1.68/dozen for specialty eggs including Eggland’s Best, Farmhouse and 4-Grain Brands.
The company generated a gross margin of 21.4% which was fractionally lower than the 22% margin in 2009. This was despite a 10% decline in feed cost from 2009 to 34.9 cents/dozen in the current year.
In reviewing the Cal-Maine balance sheet, it is noted that the current ratio improved from a ratio of 2.3 to 3.2 denoting a stronger asset base relative to current liabilities. Long-term debt was reduced by 9.7% to $104.7 million and shareholder’s equity increased by 13% to $377 million from the previous fiscal year.
“Looking ahead, we project that fiscal 2011 will be a good year for Cal-Maine Foods,” said Chairman Fred Adams Jr. “However, we expect feed costs will be relatively high and volatile.”
The market responded favorably to the Q4 figures and the annual report rising 11.6% from the opening price of $33.13 as of July 26.