Cal-Maine’s bottom line impacted by antitrust settlement
by MBJ Staff
Published: July 29,2013
JACKSON — Cal-Maine Foods Inc., for the fourth quarter of fiscal 2013, saw net sales of $325.9 million compared with net sales of $275.2 million for the fourth quarter a year ago.
The egg company reported a net loss of $3.8 million, or $0.16 per basic share, for the fourth quarter of fiscal 2013 compared with net earnings of $37.3 million, or $1.56 per basic share, for the same period last year.
Results for the fourth quarter of 2013 include a one-time charge of $17.0 million, or $0.71 per basic share, after tax, related to the settlement of a direct purchaser class claim against Cal-Maine. Results for the fourth quarter of fiscal 2012 included a one-time gain of approximately $27.0 million, or $1.12 per share, after tax, as a result of a distribution from Eggland’s Best Inc. related to the joint venture between Eggland’s Best Inc. and Land O’Lakes Inc., announced on May 1, 2012. Excluding these one-time items, net earnings were $13.2 million, or $0.55 per basic share, 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. The company reported net income of $50.4 million, or $2.10 per basic share, for fiscal 2013 compared with net income of $89.7 million, or $3.76 per basic share, in fiscal 2012. Excluding the one-time items described above for the fourth quarter of each fiscal year, net income for fiscal 2013 was $67.5 million, or $2.81 per basic share, compared with $62.7 million, or $2.64 per basic share, in fiscal 2012. Fiscal 2013 had 52 weeks compared with 53 weeks in fiscal 2012.
As announced on July 23, 2013, the company reached a settlement in an egg antitrust class action claim, whereby the company has agreed to make a single payment of $28.0 million, which amounts to a charge of $17.0 million, or $0.71 per basic share, after tax.
Dolph Baker, chairman, president and CEO of Cal-Maine, said, “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.”
To sign up for Mississippi Business Daily Updates, click here.
FOLLOW THE MBJ ON TWITTERMy Tweets
Top Posts & Pages
- Drew Brees settles lawsuit alleging investment fraud
- Doctor convicted of using phony church for tax shelter
- Ex-Delta mayor indicted, accused of stealing city property
- Cochran's legal counsel asks Court to toss McDaniel's lawsuit
- Williams-Sonoma expanding, adding nearly 1,000 jobs
- More than half-dozen groups file charter school applications
- State Rep. Patterson switches from Democrats to GOP
- Ex-baliff wants pay or her job back after termination
- Biloxi baseball project still alive but may be held for 2015