Drmicrocap
11 years ago
Sanderson Farms, Inc. Reports Results for First Quarter of Fiscal 2014
Company Extends Stock Repurchase Program
Business Wire Sanderson Farms, Inc.
1 hour ago
LAUREL, Miss.--(BUSINESS WIRE)--
Sanderson Farms, Inc. (SAFM) today reported results for the first quarter of fiscal 2014 ended January 31, 2014.
Net sales for the first quarter of fiscal 2014 were $584.9 million compared with $595.8 million for the same period a year ago. For the quarter, the Company reported net income of $28.9 million, or $1.25 per share, compared with a net loss of $6.9 million, or $0.31 per share, for the first quarter of fiscal 2013.
The Company also announced that its Board of Directors has extended to February 24, 2017, its stock repurchase program approved February 16, 2012, to repurchase up to 1.0 million shares from time to time at prevailing prices in open market transactions or in negotiated purchases, subject to market conditions, share price and other considerations.
"Our results for the first quarter of fiscal 2014 marked a solid start to the fiscal year,” said Joe F. Sanderson, Jr., chairman and chief executive officer of Sanderson Farms, Inc. “While poultry market prices were mixed compared to the same period a year ago, our grain costs were lower. Retail grocery store demand for chicken has remained steady. However, we continue to see weak food service demand, which remains under pressure as a result of macroeconomic conditions and was also affected by weather during our first fiscal quarter. Weather also affected our first quarter results as we were forced to close several of our plants during the last week of January due to ice and snow. While we expect lower grain prices for the fiscal year and we experienced lower feed costs during the first quarter, grain prices have moved higher during February as a result of USDA’s lower than expected corn carryout estimate reported earlier this month.”
According to Sanderson, market prices for poultry products were mixed during the first quarter of fiscal 2014 compared with the same period of fiscal 2013. A simple average of the Georgia dock price for whole chickens was approximately 6.5 percent higher in the Company's first fiscal quarter compared with the same period in 2013, and currently stands near a record $1.0450 per pound. Boneless breast meat prices during the quarter were approximately 4.3 percent lower than the prior-year period. The average market price for bulk leg quarters decreased approximately 15.6 percent for the quarter compared with the same period last year. Jumbo wing prices were lower by 40.7 percent compared with last year’s first fiscal quarter, down from the record high $1.92 per pound the week before the Super Bowl last year. The Company’s average feed cost per pound of poultry products processed decreased 25.1 percent compared with the first quarter of fiscal 2013, and prices paid for corn and soybean meal, the Company’s primary feed ingredients, decreased 38.8 percent and 12.8 percent, respectively, compared with the first quarter of fiscal 2013.
“We expect market conditions in the retail grocery store market to remain strong as chicken will compete once again during 2014 with high priced beef and pork,” Sanderson added. “While we benefited during the summer of 2013 from menu shifts toward chicken items, and away from relatively high priced beef at food service establishments, whether or not we get a similar benefit during 2014 is yet to be seen.”
“The record corn crop harvested in the United States last fall has taken pressure off the United States and world corn stocks to use ratio for 2014, but a lower than expected carryout of corn at the end of the 2014 crop year estimated by the USDA in February has caused market prices for both corn and soybean meal to move higher. Despite this increase in the grain market, had we priced all of our grain needs at current prices yesterday, our grain costs would be lower by $153 million during fiscal 2014 compared to fiscal 2013.
“While broiler egg sets have been higher than the previous year’s levels most every week since last August, the industry remains constrained by limited breeder stock supplies. As a result, we don’t expect a significant increase in domestic chicken production until the second half of calendar 2014 at the earliest. Healthy, fully employed and confident American consumers could easily absorb the additional chicken production indicated by higher broiler egg sets if we see further improvement in macroeconomic conditions.
“Construction continues on our new Palestine, Texas, complex, and we are looking forward to the opportunities the new facility will create. While weather has delayed construction to some extent, we remain on schedule to begin operations at the new facility during the first calendar quarter of 2015.”
Commenting on the stock repurchase program, Sanderson said, “As in the past, we plan to use our stock repurchase program in part to offset shares issued through our equity compensation plans. We believe this program represents a good use of corporate funds while minimizing potential dilution related to our equity compensation programs.”
Sanderson Farms will hold a conference call to discuss this press release today, February 25, 2014, at 10:00 a.m. Central, 11:00 a.m. Eastern. Investors will have the opportunity to listen to a live Internet broadcast of the conference call through the Company's Web site at www.sandersonfarms.com. To listen to the live call, please go to the Web site at least 15 minutes early to register, download, and install any necessary audio software. For those who cannot listen to the live broadcast, an Internet replay will be available shortly after the call and continue through March 10, 2014. Those who would like to participate in the call can do so by dialing 888-791-4321; confirmation code 1639505.
Sanderson Farms, Inc. is engaged in the production, processing, marketing and distribution of fresh and frozen chicken and further processed and partially cooked chicken products. Its shares trade on the NASDAQ Global Select Market under the symbol SAFM.
This press release includes forward-looking statements within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995, as amended. Forward-looking statements are based on a number of assumptions about future events and are subject to various risks, uncertainties and other factors that may cause actual results to differ materially from the views, beliefs, projections and estimates expressed in such statements. These risks, uncertainties and other factors include, but are not limited to those discussed under “Risk Factors” in the Company’s Annual Report on Form 10-K for the year ended October 31, 2013, and the following:
(1) Changes in the market price for the Company’s finished products and feed grains, both of which may fluctuate substantially and exhibit cyclical characteristics typically associated with commodity markets.
(2) Changes in economic and business conditions, monetary and fiscal policies or the amount of growth, stagnation or recession in the global or U.S. economies, either of which may affect the value of inventories, the collectability of accounts receivable or the financial integrity of customers, and the ability of the end user or consumer to afford protein.
(3) Changes in the political or economic climate, trade policies, laws and regulations or the domestic poultry industry of countries to which the Company or other companies in the poultry industry ship product, and other changes that might limit the Company’s or the industry’s access to foreign markets.
(4) Changes in laws, regulations, and other activities in government agencies and similar organizations applicable to the Company and the poultry industry and changes in laws, regulations and other activities in government agencies and similar organizations related to food safety.
(5) Various inventory risks due to changes in market conditions including, but not limited to, the risk that market values of live and processed poultry inventories might be lower than the cost of such inventories, requiring a downward adjustment to record the value of such inventories at the lower of cost or market as required by generally accepted accounting principles.
(6) Changes in and effects of competition, which is significant in all markets in which the Company competes, and the effectiveness of marketing and advertising programs. The Company competes with regional and national firms, some of which have greater financial and marketing resources than the Company.
(7) Changes in accounting policies and practices adopted voluntarily by the Company or required to be adopted by accounting principles generally accepted in the United States.
(8) Disease outbreaks affecting the production performance and/or marketability of the Company’s poultry products, or the contamination of its products.
(9) Changes in the availability and cost of labor and growers.
(10) The loss of any of the Company’s major customers.
(11) Inclement weather that could hurt Company flocks or otherwise adversely affect its operations, or changes in global weather patterns that could impact the supply of feed grains.
(12) Failure to respond to changing consumer preferences.
(13) Failure to successfully and efficiently start up and run a new plant or integrate any business the Company might acquire.
Readers are cautioned not to place undue reliance on forward-looking statements made by or on behalf of the Company. Each such statement speaks only as of the day it was made. The Company undertakes no obligation to update or to revise any forward-looking statements. The factors described above cannot be controlled by the Company. When used in this press release or in the related conference call, the words “believes”, “estimates”, “plans”, “expects”, “should”, “outlook”, and “anticipates” and similar expressions as they relate to the Company or its management are intended to identify forward-looking statements. Examples of forward-looking statements include statements of the Company’s belief about future earnings, grain prices, supply and demand factors, and other industry conditions.
SANDERSON FARMS, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Operations
(Unaudited)
(In thousands, except per share amounts)
Three Months Ended
January 31,
2014 2013
Net sales $ 584,883 $ 595,760
Cost and expenses:
Cost of sales 516,085 584,867
Selling, general and administrative 23,599 20,565
539,684 605,432
Operating income (loss) 45,199 (9,672 )
Other income (expense):
Interest income 12 3
Interest expense (911 ) (1,805 )
Other 16 171
(883 ) (1,631 )
Income (loss) before income taxes 44,316 (11,303 )
Income tax expense (benefit) 15,445 (4,360 )
Net income (loss) $ 28,871 $ (6,943 )
Earnings (loss) per share:
Basic $ 1.25 $ (0.31 )
Diluted $ 1.25 $ (0.31 )
Dividends per share $ 0.20 $ 0.17
SANDERSON FARMS, INC. AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
(In thousands)
January 31,
2014 October 31,
2013
(Unaudited)
Assets
Current assets:
Cash and cash equivalents $ 58,822 $ 85,563
Accounts receivable, net 94,114 108,980
Inventories 209,169 205,855
Deferred income taxes 0 478
Prepaid expenses and other current assets 34,549 29,867
Total current assets 396,654 430,743
Property, plant and equipment 1,061,853 1,035,044
Less accumulated depreciation (559,130 ) (546,578 )
502,723 488,466
Other assets 5,164 5,436
Total assets $ 904,541 $ 924,645
Liabilities and stockholders’ equity
Current liabilities:
Accounts payable $ 61,056 $ 81,418
Accrued expenses 31,960 58,271
Accrued income taxes 11,621 11,055
Deferred income taxes 197 0
Current maturities of long-term debt 10,799 10,799
Total current liabilities 115,633 161,543
Long-term debt, less current maturities 29,218 29,414
Claims payable 9,500 9,000
Deferred income taxes 53,365 53,089
Commitments and contingencies
Stockholders’ equity:
Common Stock 23,063 23,016
Paid-in capital 143,402 142,482
Retained earnings 530,360 506,101
Total stockholders’ equity 696,825 671,599
Total liabilities and stockholders’ equity $ 904,541 $ 924,645
SAFM-G
Contact:
Sanderson Farms, Inc.
Mike Cockrell, 601-649-4030
Treasurer & Chief Financial Officer
Drmicrocap
11 years ago
Sanderson Farms, Inc. Reports Results for Fourth Quarter and Fiscal 2013
Business Wire Sanderson Farms, Inc.
7 hours ago
LAUREL, Miss.--(BUSINESS WIRE)--
Sanderson Farms, Inc. (SAFM) today reported results for the fourth quarter and fiscal year ended October 31, 2013.
Net sales for the fourth quarter of fiscal 2013 were $727.1 million compared with $648.4 million for the same period a year ago. For the quarter, the Company reported net income of $45.3 million, or $1.97 per share, compared with net income of $9.3 million, or $0.41 per share, for the fourth quarter of fiscal 2012.
Net sales for fiscal 2013 were $2.683 billion compared with $2.386 billion for fiscal 2012. Net income for the year totaled $130.6 million, or $5.68 per share, compared with net income of $53.9 million, or $2.35 per share, for last year.
"The fourth quarter of fiscal 2013 marked a strong finish to a successful year for Sanderson Farms and the poultry industry,” said Joe F. Sanderson, Jr., chairman and chief executive officer of Sanderson Farms, Inc. "We reported record annual sales of $2.683 billion, a 12.4 percent increase over fiscal 2012. While poultry markets improved compared to fiscal 2012, grain prices remained near record high levels during much of fiscal 2013 before moderating during the fourth quarter on optimism surrounding the current year’s grain harvest. However, the improved poultry market prices more than offset the higher feed costs, and our margins improved significantly during fiscal 2013 compared to fiscal 2012. For the year, we sold 3.031 billion pounds of dressed poultry, another record, compared with 2.952 billion pounds in fiscal 2012.”
According to Sanderson, overall market prices for poultry products were higher in the fourth quarter of fiscal 2013 compared with prices a year ago, but came down significantly from peaks earlier during the year. As measured by a simple average of the Georgia dock price for whole chickens, prices were higher by approximately 10.9 percent in the Company's fourth fiscal quarter compared with the same period in fiscal 2012, and were higher by 10.4 percent for the fiscal year compared with the prior year. The Georgia Dock whole bird price remained in record territory through all of fiscal 2013 and reflected steady demand for the Company’s retail chill pack product during this fiscal year. Boneless breast meat prices averaged 8.4 percent higher in the fourth quarter than the prior-year period. For fiscal 2013, boneless prices were 15.3 percent higher when compared with fiscal 2012. Jumbo wing prices averaged $1.43 per pound during the fourth quarter of fiscal 2013, down 16.5 percent from the average of $1.71 per pound during the prior-year period. Jumbo wing prices averaged $1.50 per pound during the fiscal year, down 5.1 percent from the average of $1.58 per pound for fiscal 2012. The average market price for bulk leg quarters decreased approximately 1.4 percent for the quarter, and decreased approximately 0.5 percent for fiscal 2013. The steady dark meat prices reflect continued good export demand during the year. Cash prices for corn and soybean meal, the Company’s primary feed ingredients, increased during the year but were down 32.8 percent and 1.6 percent, respectively, during the fourth fiscal quarter when compared with the fourth quarter a year ago. For the year, total feed costs in broiler flocks processed were 5.7 percent higher than fiscal 2012.
“We are pleased that our profitability during fiscal 2013 allowed us to significantly reduce outstanding debt and strengthen our balance sheet,” Sanderson continued. “As a result, we are well positioned to continue our growth strategy, and we began construction of our new poultry complex in Palestine, Texas, in October. Operations at that new facility are scheduled to start in the first calendar quarter of 2015, and the pounds produced in Palestine, at full production, will represent a 16 percent increase in our capacity.
“As of October 31, 2013, our balance sheet reflected $924.6 million in assets, stockholders’ equity of $671.6 million and net working capital of $269.2 million. Our total long-term debt at year-end was $29.4 million. A strong balance sheet is an important advantage in our industry, especially given today’s economic environment, and provides us with the financial strength to not only support our growth strategy, but also to manage our operations through challenging market conditions. We deeply appreciate the hard work and dedication to excellence of our employees, growers and everyone associated with our Company,” Sanderson concluded.
Sanderson Farms will hold a conference call to discuss this press release today, December 17, 2013, at 10:00 a.m. Central, 11:00 a.m. Eastern. Investors will have the opportunity to listen to a live Internet broadcast of the conference call through the Company's Web site at www.sandersonfarms.com. To listen to the live call, please go to the Web site at least 15 minutes early to register, download, and install any necessary audio software. For those who cannot listen to the live broadcast, an Internet replay will be available shortly after the call and continue through December 27, 2013. Those without Internet access, or who prefer to participate via telephone, may call 1-888-244-2414, access code 6917097.
Sanderson Farms, Inc. is engaged in the production, processing, marketing and distribution of fresh and frozen chicken and other prepared food items. Its shares trade on the NASDAQ Global Select Market under the symbol SAFM.
This press release includes forward-looking statements within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995, as amended. Forward-looking statements are based on a number of assumptions about future events and are subject to various risks, uncertainties and other factors that may cause actual results to differ materially from the views, beliefs, projections and estimates expressed in such statements. These risks, uncertainties and other factors include, but are not limited to those discussed under “Risk Factors” in the Company’s Annual Report on Form 10-K for the year ended October 31, 2013, and the following:
(1) Changes in the market price for the Company’s finished products and feed grains, both of which may fluctuate substantially and exhibit cyclical characteristics typically associated with commodity markets.
(2) Changes in economic and business conditions, monetary and fiscal policies or the amount of growth, stagnation or recession in the global or U.S. economies, either of which may affect the value of inventories, the collectability of accounts receivable or the financial integrity of customers, and the ability of the end user or consumer to afford protein.
(3) Changes in the political or economic climate, trade policies, laws and regulations or the domestic poultry industry of countries to which the Company or other companies in the poultry industry ship product, and other changes that might limit the Company’s or the industry’s access to foreign markets.
(4) Changes in laws, regulations, and other activities in government agencies and similar organizations applicable to the Company and the poultry industry and changes in laws, regulations and other activities in government agencies and similar organizations related to food safety.
(5) Various inventory risks due to changes in market conditions including, but not limited to, the risk that market values of live and processed poultry inventories might be lower than the cost of such inventories, requiring a downward adjustment to record the value of such inventories at the lower of cost or market as required by generally accepted accounting principles.
(6) Changes in and effects of competition, which is significant in all markets in which the Company competes, and the effectiveness of marketing and advertising programs. The Company competes with regional and national firms, some of which have greater financial and marketing resources than the Company.
(7) Changes in accounting policies and practices adopted voluntarily by the Company or required to be adopted by accounting principles generally accepted in the United States.
(8) Disease outbreaks affecting the production performance and/or marketability of the Company’s poultry products, or the contamination of its products.
(9) Changes in the availability and cost of labor and growers.
(10) The loss of any of the Company’s major customers.
(11) Inclement weather that could hurt Company flocks or otherwise adversely affect its operations, or changes in global weather patterns that could impact the supply and price of feed grains.
(12) Failure to respond to changing consumer preferences.
(13) Failure to successfully and efficiently start up and run a new plant or integrate any business the Company might acquire.
Readers are cautioned not to place undue reliance on forward-looking statements made by or on behalf of Sanderson Farms. Each such statement speaks only as of the day it was made. The Company undertakes no obligation to update or to revise any forward-looking statements. The factors described above cannot be controlled by the Company. When used in this press release or in the related conference call, the words “believes”, “estimates”, “plans”, “expects”, “should”, “outlook”, and “anticipates” and similar expressions as they relate to the Company or its management are intended to identify forward-looking statements. Examples of forward-looking statements include statements of the Company’s belief about future demand for its products, future prices for feed grains and future production levels.
SANDERSON FARMS, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Operations
(In thousands, except per share amounts)
Three Months Ended
Twelve Months Ended
October 31,
October 31,
2013
2012
2013
2012
(Unaudited) (Unaudited)
Net sales
$
727,061 $ 648,379 $ 2,682,980 $ 2,386,105
Costs and expenses:
Cost of sales 624,937 612,547 2,377,055 2,212,692
Selling, general and administrative 30,345 20,325 100,247 77,097
655,282 632,872 2,477,302 2,289,789
Operating income 71,779 15,507 205,678 96,316
Other income (expense):
Interest income 15 8 27 17
Interest expense (1,159 ) (1,814 ) (6,136 ) (9,201 )
Other 510 0 544 (560 )
(634 ) (1,806 ) (5,565 ) (9,744 )
Income before income taxes 71,145 13,701 200,113 86,572
Income tax expense 25,875 4,354 69,496 32,628
Net income $ 45,270 $ 9,347 $ 130,617 $ 53,944
Basic earnings per share $ 1.97 $ 0.41 $ 5.68 $ 2.35
Diluted earnings per share $ 1.97 $ 0.41 $ 5.68 $ 2.35
Dividends per share $ 0.20 $ 0.17 $ 0.71 $ 0.68
SANDERSON FARMS, INC. AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
(In thousands)
October 31,
October 31,
2013
2012
ASSETS
Current assets:
Cash and cash equivalents $ 85,563 $ 27,802
Accounts receivable, net 108,980 98,022
Inventories 205,855 235,912
Refundable income taxes 0 4,467
Deferred income taxes 478 3,945
Prepaid expenses 29,867 27,639
Total current assets 430,743 397,787
Property, plant and equipment 1,035,044 985,198
Less accumulated depreciation (546,578 ) (489,885 )
488,466 495,313
Other assets 5,436 3,353
Total assets $ 924,645 $ 896,453
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable $ 81,418 $ 82,755
Accrued expenses 58,271 42,082
Accrued income taxes 11,055 0
Current maturities of long-term debt 10,799 10,757
Total current liabilities 161,543 135,594
Long-term debt, less current maturities 29,414 150,212
Claims payable 9,000 4,000
Deferred income taxes 53,089 56,572
Stockholders' equity:
Common stock 23,016 22,969
Paid-in capital 142,482 135,283
Retained earnings 506,101 391,823
Total stockholders’ equity 671,599 550,075
Total liability and stockholders’ equity $ 924,645 $ 896,453
SAFM-G
Contact:
Sanderson Farms, Inc.
Mike Cockrell, 601-426-1454
Treasurer & Chief Financial Officer
Drmicrocap
11 years ago
Sanderson Farms, Inc. Reports Results for Third Quarter of Fiscal 2013
Business WirePress Release: Sanderson Farms, Inc. – 5 hours ago..
Sanderson Farms, Inc. (SAFM) today reported results for the third fiscal quarter and nine months ended July 31, 2013.
Net sales for the third quarter of fiscal 2013 were $739.0 million compared with $624.9 million for the same period a year ago. For the quarter, the Company reported net income of $67.9 million, or $2.95 per share, compared with net income of $28.7 million, or $1.25 per share, for the third quarter of fiscal 2012.
Net sales for the first nine months of fiscal 2013 were $1,955.9 million compared with $1,737.7 million for the first nine months of fiscal 2012. Net income for the first nine months of fiscal 2013 totaled $85.3 million, or $3.71 per share, compared with net income of $44.6 million, or $1.94 per share, for the first nine months of last year.
“Sanderson Farms’ financial results for the third quarter of fiscal 2013 reflect improved market conditions when compared to last year’s third quarter,” said Joe F. Sanderson, Jr., chairman and chief executive officer of Sanderson Farms, Inc. “Market prices for poultry products were higher than the third quarter of fiscal 2012, as the Georgia Dock whole bird price remained historically high during the quarter. The Georgia Dock price reflects steady retail grocery store demand. In addition, market prices for wings, while below last year’s third quarter levels, improved during the quarter. Boneless breast meat prices remained well above last year’s prices and peaked in May as several quick serve restaurants and other food service establishments featured chicken on their menus.”
Overall market prices for poultry products were higher in the third quarter of fiscal 2013 compared with prices in the third quarter of fiscal 2012. As measured by a simple average of the Georgia dock price for whole chickens, prices increased 11.6 percent compared with the third quarter of fiscal 2012. Boneless breast prices improved when compared to last year’s third fiscal quarter, averaging 32.3 percent higher than the prior-year period. Jumbo wing prices averaged $1.28 per pound for the third quarter of fiscal 2013, down 19.3 percent from the average of $1.59 per pound for the third quarter of fiscal 2012. The average quoted market price for bulk leg quarters was essentially flat during the quarter, averaging $0.51 per pound during the third fiscal quarter of 2013 compared to $0.50 during the third fiscal quarter of 2012. Cash prices for corn delivered to the Company increased 8.1 percent compared with the third quarter a year ago, while the price for soybean meal delivered to the Company increased 10.3 percent. For the nine months ended July 31, 2013, the Company’s cash prices for corn increased 13.2 percent and soybean meal increased 29.3 percent when compared to the nine months ended July 31, 2012.
“While poultry market prices improved during our third fiscal quarter, the Company continued to experience higher grain prices compared with the same period last year,” added Sanderson. “Market prices for grain have remained high through most of August, but favorable growing conditions this summer have fueled considerable optimism about this year’s corn and soybean crops. While the available grain quantity and prices during the coming months will ultimately depend on this year’s final crop performance, prices have recently moved lower. If we priced all of our needs for the remainder of the fiscal year at yesterday’s market prices, cash paid for feed grains would be approximately $79 million higher during fiscal 2013 compared to fiscal 2012. However, fourth quarter cash market prices would be $65 million lower than last year’s fourth quarter. We have priced our grain needs through August but will be on the market for our needs starting in September.”
“We are also pleased to report that our due diligence and related permitting processes are substantially complete for our previously announced Palestine, Texas facility,” said Sanderson. “Most conditions precedent to breaking ground on the new poultry complex have been met, and we hope to finalize a date to begin construction of the new feed mill, hatchery, processing plant and wastewater treatment facilities in September, subject to final approval by our board of directors. We greatly appreciate the support, encouragement and welcome we have received from the public officials and communities in Palestine, Anderson County, Freestone County and Austin, and we are anxious to begin this next phase of growth for our shareholders, employees and other stakeholders.”
Sanderson Farms will hold a conference call to discuss this press release today, August 27, 2013, at 10:00 a.m. Central, 11:00 a.m. Eastern. Investors will have the opportunity to listen to a live Internet broadcast of the conference call through the Company's Web site at www.sandersonfarms.com. To listen to the live call, please go to the Web site at least 15 minutes early to register, download, and install any necessary audio software. For those who cannot listen to the live broadcast, an Internet replay will be available shortly after the call and continue through September 6, 2013. Those without internet access or who prefer to participate via telephone may call 888-228-5307, access code 8155309.
Sanderson Farms, Inc. is engaged in the production, processing, marketing and distribution of fresh and frozen chicken and other prepared food items. Its shares trade on the NASDAQ Global Select Market under the symbol SAFM.
This press release includes forward-looking statements within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995, as amended. Forward-looking statements are based on a number of assumptions about future events and are subject to various risks, uncertainties and other factors that may cause actual results to differ materially from the views, beliefs, projections and estimates expressed in such statements. These risks, uncertainties and other factors include, but are not limited to, those discussed under “Risk Factors” in the Company’s Annual Report on Form 10-K for the year ended October 31,2012 and its subsequent Quarterly Reports on Form 10-Q filed with the SEC, and the following:
(1) Changes in the market price for the Company’s finished products and feed grains, both of which may fluctuate substantially and exhibit cyclical characteristics typically associated with commodity markets.
(2) Changes in economic and business conditions, monetary and fiscal policies or the amount of growth, stagnation or recession in the global or U.S. economies, either of which may affect the value of inventories, the collectability of accounts receivable or the financial integrity of customers, and the ability of the end user or consumer to afford protein.
(3) Changes in the political or economic climate, trade policies, laws and regulations or the domestic poultry industry of countries to which the Company or other companies in the poultry industry ship product, and other changes that might limit the Company’s or the industry’s access to foreign markets.
(4) Changes in laws, regulations, and other activities in government agencies and similar organizations applicable to the Company and the poultry industry and changes in laws, regulations and other activities in government agencies and similar organizations related to food safety.
(5) Various inventory risks due to changes in market conditions, including, but not limited to, the risk that market values of live and processed poultry inventories might be lower than the cost of such inventories requiring a downward adjustment to record the value of such inventories at the lower of cost or market as required by generally accepted accounting principles.
(6) Changes in and effects of competition, which is significant in all markets in which the Company competes, and the effectiveness of marketing and advertising programs. The Company competes with regional and national firms, some of which have greater financial and marketing resources than the Company.
(7) Changes in accounting policies and practices adopted voluntarily by the Company or required to be adopted by accounting principles generally accepted in the United States.
(8) Disease outbreaks affecting the production performance and/or marketability of the Company’s poultry products, or the contamination of its products.
(9) Changes in the availability and cost of labor and growers.
(10) The loss of any of the Company’s major customers.
(11) Inclement weather that could hurt Company flocks or otherwise adversely affect the Company’s operations, or changes in global weather patterns that could impact the supply of feed grains.
(12) Failure to respond to changing consumer preferences.
(13) Failure to successfully and efficiently start up and run a new plant or integrate any business the Company might acquire.
Readers are cautioned not to place undue reliance on forward-looking statements made by or on behalf of Sanderson Farms. Each such statement speaks only as of the day it was made. The Company undertakes no obligation to update or to revise any forward-looking statements. Most of the factors described above cannot be controlled by the Company. When used in this press release, the words “believes”, “estimates”, “plans”, “expects”, “should”, “outlook”, and “anticipates” and similar expressions as they relate to the Company or its management are intended to identify forward-looking statements. Examples of forward-looking statements include (but are not limited to) statements of the Company’s belief about future earnings, expansion plans, sales, production, and expenses, including feed grain costs.
SANDERSON FARMS, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Operations
(Unaudited)
(In thousands, except per share amounts)
Three Months Ended
Nine Months Ended
July 31,
July 31,
2013
2012
2013
2012
Net sales $ 738,964 $ 624,854 $ 1,955,919 $ 1,737,726
Costs and expenses:
Cost of sales
605,018
555,240
1,752,118 1,600,145
Selling, general and administrative 29,505 20,704 69,902 56,772
634,523 575,944 1,822,020 1,656,917
Operating income 104,441 48,910 133,899 80,809
Other income (expense):
Interest income 5 3 12 9
Interest expense (1,365 ) (1,999 ) (4,977 ) (7,387 )
Other (17 ) 5 34 (560 )
(1,377 ) (1,991 ) (4,931 ) (7,938 )
Income before income taxes 103,064 46,919 128,968 72,871
Income tax expense 35,145 18,198 43,621 28,274
Net income $ 67,919 $ 28,721 $ 85,347 $ 44,597
Basic earnings per share $ 2.95 $ 1.25 $ 3.71 $ 1.94
Diluted earnings per share $ 2.95 $ 1.25 $ 3.71 $ 1.94
Dividends per share $ 0.17 $ 0.17 $ 0.51 $ 0.51
SANDERSON FARMS, INC. AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
(In thousands)
July 31,
October 31,
2013
2012
(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents $ 62,878 $ 27,802
Accounts receivable, net 118,744 98,022
Inventories 241,343 235,912
Refundable income taxes 0 4,467
Deferred income taxes 0 3,945
Prepaid expenses and other current assets 32,665 27,639
Total current assets 455,630 397,787
Property, plant and equipment 1,020,243 985,198
Less accumulated depreciation
(531,006
)
(489,885
)
489,237 495,313
Other assets 2,958 3,353
Total assets $ 947,825 $ 896,453
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable $ 86,743 $ 82,755
Accrued expenses 51,519 42,082
Accrued income taxes 28,898 0
Current maturities of long-term debt 10,757 10,757
Deferred income taxes 125 0
Total current liabilities 178,042 135,594
Long-term debt, less current maturities 77,149 150,212
Claims payable 10,300 4,000
Deferred income taxes 53,926 56,572
Stockholders' equity:
Common stock 23,014 22,969
Paid-in capital 139,960 135,283
Retained earnings 465,434 391,823
Total stockholders’ equity 628,408 550,075
Total liabilities and stockholder’s equity $ 947,825 $ 896,453
SAFM-G
.
.
Contact:.
.
Sanderson Farms, Inc.
Mike Cockrell, 601-649-4030
Treasurer & Chief Financial Officer
Drmicrocap
12 years ago
Sanderson Farms, Inc. Reports Results for Second Quarter of Fiscal 2013
Sanderson Farms, Inc. (SAFM) today reported results for its second fiscal quarter and six months ended April 30, 2013.
Net sales for the second quarter of fiscal 2013 were $621.2 million compared with $595.0 million for the same period a year ago. For the quarter, net income was $24.4 million, or $1.06 per share, compared with net income of $23.9 million, or $1.04 per share, for the second quarter of fiscal 2012.
Net sales for the first six months of fiscal 2013 were $1,217.0 million compared with $1,112.9 million for the same period of fiscal 2012. Net income for the first half of the year totaled $17.4 million, or $0.76 per share, compared with net income of $15.9 million, or $0.69 per share, for the first six months of last year.
“The results for our second quarter of fiscal 2013 reflect improved market conditions driven primarily by an overall increase in demand for poultry products," said Joe F. Sanderson, Jr., chairman and chief executive officer of Sanderson Farms, Inc. “Our net sales were 4.4 percent higher compared with the second quarter of fiscal 2012, reflecting higher average sales prices of chicken. While our volumes reflect the production cuts we put in place last fall, demand for chicken remains strong from our retail grocery store and export customers. In addition, while customer traffic through food service establishments remains challenged by macroeconomic factors, several new chicken items on quick serve menus and chicken promotions in casual dining restaurants, coupled with relatively high priced beef, contributed to better market prices during the quarter for products produced at our food service plants.
“Our profitability for the second quarter continued to be adversely affected by relatively high feed costs,” added Sanderson. “Feed costs in flocks processed increased 14.3 percent compared with last year’s second fiscal quarter, and remain high relative to historical costs. Because of the tight supply of both corn and soybeans, we expect grain prices to remain high and volatile at least until markets get some visibility on the quantity and quality of this year’s corn and soybean crops. The late planting season caused by cold and wet weather across much of the corn belt is contributing to price volatility. That said, we have priced most all of our grain needs through July at levels that will allow us to slightly reduce our feed costs per pound each successive month through July.”
According to Sanderson, overall market prices for poultry products were higher during the second quarter of fiscal 2013 compared with the same quarter a year ago. As measured by a simple average of the Georgia dock price for whole chickens, prices increased approximately 9.9 percent in the Company's second fiscal quarter compared with the same period in 2012 and remain at record levels. Bulk leg quarter market prices were flat with last year's second quarter, and continue to reflect strong export demand. Boneless breast meat prices during the second quarter were 14.2 percent higher than the prior year period, and have continued to move higher in May. Jumbo wing prices were down 4.4 percent for the second quarter of 2013 compared with the same period last year. Prices paid for corn and soybean meal, the Company’s primary feed ingredients, increased 15.9 percent and 37.2 percent, respectively, compared with the second quarter of fiscal 2012.
“Looking ahead, we are reasonably optimistic as we head into the summer months and what is typically a period of better demand for chicken. While grain costs remain above historical levels, demand for chicken products is strong. Weekly broiler egg sets continue to run slightly above last year’s numbers, but breeder placements remain lower and it appears the reduced size of the breeder flock will constrain production over the short term despite higher industry returns. While macroeconomic conditions have continued to affect consumer behavior, market prices for boneless breast meat sold to our food service customers improved through April and May, and market prices for retail grocery store products have also moved higher. Regardless of market conditions, however, we will maintain our focus on our operating performance and sales execution,” Sanderson concluded.
Sanderson Farms will hold a conference call to discuss this press release today, May 30, 2013, at 10:00 a.m. Central, 11:00 a.m. Eastern. Investors will have the opportunity to listen to a live Internet broadcast of the conference call through the Company's Web site at www.sandersonfarms.com or through www.earnings.com. To listen to the live call, please go to the Web site at least 15 minutes early to register and download and install any necessary audio software. For those who cannot listen to the live broadcast, an Internet replay will be available shortly after the call and continue through June 30, 2013. Those without Internet access may listen and participate in the call by dialing 888-596-2572, confirmation code 6119362.
Sanderson Farms, Inc. is engaged in the production, processing, marketing and distribution of fresh and frozen chicken and other prepared chicken items. Its shares trade on the NASDAQ Global Select Market under the symbol SAFM.
This press release includes forward-looking statements within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995, as amended. Forward-looking statements are based on a number of assumptions about future events and are subject to various risks, uncertainties and other factors that may cause actual results to differ materially from the views, beliefs, projections and estimates expressed in such statements. These risks, uncertainties and other factors include, but are not limited to, those discussed under “Risk Factors” in the Company’s Quarterly Report on Form 10-Q for the quarter ended April 30, 2013, and the following:
(1) Changes in the market price for the Company’s finished products and feed grains, both of which may fluctuate substantially and exhibit cyclical characteristics typically associated with commodity markets.
(2) Changes in economic and business conditions, monetary and fiscal policies or the amount of growth, stagnation or recession in the global or U.S. economies, either of which may affect the value of inventories, the collectability of accounts receivable or the financial integrity of customers, and the ability of the end user or consumer to afford protein.
(3) Changes in the political or economic climate, trade policies, laws and regulations or the domestic poultry industry of countries to which the Company or other companies in the poultry industry ship product, and other changes that might limit the Company’s or the industry’s access to foreign markets.
(4) Changes in laws, regulations, and other activities in government agencies and similar organizations applicable to the Company and the poultry industry and changes in laws, regulations and other activities in government agencies and similar organizations related to food safety.
(5) Various inventory risks due to changes in market conditions, including, but not limited to, the risk that market values of live and processed poultry inventories might be lower than the cost of such inventories, requiring a downward adjustment to record the value of such inventories at the lower of cost or market as required by generally accepted accounting principles.
(6) Changes in and effects of competition, which is significant in all markets in which the Company competes, and the effectiveness of marketing and advertising programs. The Company competes with regional and national firms, some of which have greater financial and marketing resources than the Company.
(7) Changes in accounting policies and practices adopted voluntarily by the Company or required to be adopted by accounting principles generally accepted in the United States.
(8) Disease outbreaks affecting the production performance and/or marketability of the Company’s poultry products, or the contamination of its products.
(9) Changes in the availability and cost of labor and growers.
(10) The loss of any of the Company’s major customers.
(11) Inclement weather that could hurt Company flocks or otherwise adversely affect its operations, or changes in global weather patterns that could impact the supply of feed grains.
(12) Failure to respond to changing consumer preferences.
(13) Failure to successfully and efficiently start up and run a new plant or integrate any business the Company might acquire.
Readers are cautioned not to place undue reliance on forward-looking statements made by or on behalf of Sanderson Farms. Each such statement speaks only as of the day it was made. The Company undertakes no obligation to update or to revise any forward-looking statements. The factors described above cannot be controlled by the Company. When used in this press release or in the related conference call, the words “believes”, “estimates”, “plans”, “expects”, “should”, “outlook”, and “anticipates” and similar expressions as they relate to the Company or its management are intended to identify forward-looking statements. Examples of forward-looking statements include statements of the Company’s belief about future earnings, production levels, grain prices, supply and demand factors, and other industry conditions.
SANDERSON FARMS, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Income
(Unaudited)
(In thousands, except per share amounts)
Three Months Ended
Six Months Ended
April 30,
April 30,
2013
2012
2013
2012
Net sales $ 621,195 $ 595,046 $ 1,216,955 $ 1,112,872
Costs and expenses:
Cost of sales 562,233 535,901 1,147,100 1,044,905
Selling, general and administrative 19,832 18,165 40,397 36,068
582,065 554,066 1,187,497 1,080,973
Operating income 39,130 40,980 29,458 31,899
Other income (expense):
Interest income 4 4 7 6
Interest expense (1,807 ) (2,426 ) (3,612 ) (5,388 )
Other (120 ) (1 ) 51 (565 )
(1,923 ) (2,423 ) (3,554 ) (5,947 )
Income before income taxes 37,207 38,557 25,904 25,952
Income tax expense 12,836 14,692 8,476 10,076
Net income $ 24,371 $ 23,865 $ 17,428 $ 15,876
Basic earnings per share $ 1.06 $ 1.04 $ 0.76 $ 0.69
Diluted earnings per share $ 1.06 $ 1.04 $ 0.76 $ 0.69
Dividends per share $ 0.17 $ 0.17 $ 0.34 $ 0.34
SANDERSON FARMS, INC. AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
(In thousands)
April 30,
October 31,
2013
2012
(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents $ 24,087 $ 27,802
Accounts receivable, net 113,092 98,022
Inventories 226,590 235,912
Refundable income taxes 0 4,467
Deferred income taxes 1,895 3,945
Prepaid expenses and other current assets 27,466 27,639
Total current assets 393,130 397,787
Property, plant and equipment 1,009,432 985,198
Less accumulated depreciation (515,475 ) (489,885 )
493,957 495,313
Other assets 3,142 3,353
Total assets $ 890,229 $ 896,453
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable and accrued expenses $ 114,418 $ 124,837
Current maturities of long-term debt 10,757 10,757
Total current liabilities 125,175 135,594
Long-term debt, less current maturities 139,840 150,212
Claims payable 9,900 4,000
Deferred income taxes 54,378 56,572
Stockholders' equity:
Common stock 23,015 22,969
Paid-in capital 136,495 135,283
Retained earnings 401,426 391,823
Total stockholders’ equity 560,936 550,075
$ 890,229 $ 896,453
SAFM-G
.
.
Contact:.
.
Sanderson Farms, Inc.
Mike Cockrell, 601-649-4030
Treasurer & Chief Financial Officer
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