Delaware
|
|
64-0500378
|
(State
or other Jurisdiction of
|
|
(I.R.S.
Employer Identification No.)
|
Incorporation
or Organization)
|
Title
of each Class:
|
Name
of exchange on
which
registered:
|
|
Common
Stock, $0.01 par
value
per share
|
The
NASDAQ Stock
Market
LLC
|
Page
|
||
Item
|
Number
|
|
1.
|
Business
|
4
|
1A.
|
Risk
Factors
|
12
|
1B.
|
Unresolved
Staff Comments
|
16
|
2.
|
Properties
|
16
|
3.
|
Legal
Proceedings
|
17
|
4.
|
Submission
of Matters to a Vote of Security Holders
|
17
|
Part
II
|
||
5.
|
Market
for the Registrant’s Common Equity, Related Stockholder Matters and Issuer
Purchases of
|
|
Equity
Securities
|
18
|
|
6.
|
Selected
Financial Data
|
20
|
7.
|
Management’s
Discussion and Analysis of Financial Condition and Results of
Operations
|
21
|
7A.
|
Quantitative
and Qualitative Disclosures About Market Risk
|
29
|
8.
|
Financial
Statements and Supplementary Data
|
29
|
9.
|
Changes
in and Disagreements with Accountants on Accounting and Financial
Disclosure
|
58
|
9A.
|
Controls
and Procedures
|
58
|
9B.
|
Other
Information
|
58
|
Part
III
|
||
10.
|
Directors
and Executive Officers of the Registrant
|
59
|
11.
|
Executive
Compensation
|
59
|
12.
|
Security
Ownership of Certain Beneficial Owners and Management and Related
Stockholder Matters
|
59
|
13.
|
Certain
Relationships and Related Transactions
|
59
|
14.
|
Principal
Accountant Fees and Services
|
59
|
Part
IV
|
||
15.
|
Exhibits
and Financial Statement Schedules
|
60
|
Signatures
|
64
|
-
|
industry
advertising campaigns successfully promoting the health benefits
of
eggs;
|
|
-
|
positive
announcements from the medical community highlighting eggs as a good
source of protein;
|
|
-
|
increased
consumption resulting from the factors noted above as well as the
reduced
level of cholesterol in
|
|
eggs;
and
|
||
-
|
increased
demand from the foodservice
channel.
|
-
|
living
space for newly hatched layers will have increased 20% by 2008 according
to guidelines put in place
|
|
in
2002 by the United Egg Producers, in conjunction with the Food Marketing
Institute, both industry
|
||
trade
associations; and
|
||
|
||
-
|
the
process to bring new shell egg production capacity online has become
more
complex than in the past,
|
|
increasing
the time it takes to bring new capacity to
market.
|
|
|
Sales
Price
|
Dividends | |
Fiscal
Year Ended
|
Fiscal
Quarter
|
High
|
Low
|
|
June
3, 2006
|
First
Quarter
|
$
6.90
|
$
5.55
|
$0.0125
|
Second
Quarter
|
7.01
|
5.75
|
$0.0125
|
|
Third
Quarter
|
7.44
|
6.08
|
$0.0125
|
|
Fourth
Quarter
|
7.90
|
6.03
|
$0.0125
|
|
June
2, 2007
|
First
Quarter
|
$
7.58
|
$
6.29
|
$0.0125
|
Second
Quarter
|
8.45
|
6.14
|
$0.0125
|
|
Third
Quarter
|
14.49
|
7.91
|
$0.0125
|
|
Fourth
Quarter
|
14.07
|
11.33
|
$0.0125
|
|
Number
of Shares of Common
|
||||||
|
Stock
Remaining Available for
|
||||||
Number
of Shares of Common
|
Weighted
Average
|
Future
Issuance
Under
|
|||||
Stock
To Be Issued upon Exercise of
|
Exercise
Price
of
|
Equity
Compensation Plans
|
|||||
Outstanding
Options
|
Outstanding
Options
|
(Excluding
Shares
|
|||||
|
Reflected
in
Column
(A))
|
||||||
Plan
Category
|
(A)
|
(B)
|
(C)
|
||||
|
|
|
|
||||
1993
and 1999 Stock Option Plan
|
47,600
|
$2.07
|
8,000
|
||||
2005
Incentive Stock Option Plan.
|
336,000
|
$5.93
|
140,000
|
||||
2005
Stock Appreciation Rights Plan
|
(1)
|
$5.95
|
385,000(2)
|
|
Fiscal
Years Ended
|
||||||||||||||||
June
2
|
June
3
|
May
28
|
May
29
|
May
31
|
||||||||||||
2007
|
2006
|
2005
|
2004
|
2003
|
||||||||||||
|
|
|
52
wks
|
|
|
53
wks
|
|
|
52
wks
|
|
|
52
wks
|
52
wks
|
|||
(Amounts
in thousands, except per share and operating data)
|
||||||||||||||||
Statement
of Operations Data:
|
||||||||||||||||
Net
sales
|
$
|
598,128
|
$
|
477,555
|
$
|
375,266
|
$
|
572,331
|
$
|
387,462
|
||||||
Cost
of sales
|
479,504
|
415,338
|
339,833
|
396,704
|
315,169
|
|||||||||||
Gross
profit
|
118,624
|
62,217
|
35,433
|
175,627
|
72,293
|
|||||||||||
Selling,
general and administrative
|
60,394
|
57,702
|
47,758
|
69,305
|
46,029
|
|||||||||||
Operating
income (loss)
|
58,230
|
4,515
|
(12,325
|
)
|
106,322
|
26,264
|
||||||||||
Other
income (expense):
|
||||||||||||||||
Interest
expense (net of non cash interest
expense & interest income)
|
(4,993
|
)
|
(5,582
|
)
|
(4,222
|
)
|
(6,527
|
)
|
(8,096
|
)
|
||||||
Interest
expense - non cash
|
(882
|
)
|
(1,284
|
)
|
-
|
-
|
-
|
|||||||||
Equity
in income (loss) of affiliates
|
1,699
|
(757
|
)
|
(88
|
)
|
5,923
|
442
|
|||||||||
Non-controlling
interest
|
286
|
165
|
-
|
-
|
-
|
|||||||||||
Other
(net)
|
1,921
|
1,465
|
1,227
|
524
|
527
|
|||||||||||
|
(1,969
|
)
|
(5,993
|
)
|
(3,083
|
)
|
(80
|
)
|
(7,127
|
)
|
||||||
Income
(loss) before income tax
|
56,261
|
(1,478
|
)
|
(15,408
|
)
|
106,242
|
19,137
|
|||||||||
Income
tax expense (benefit)
|
19,605
|
(465
|
)
|
(5,050
|
)
|
39,800
|
6,925
|
|||||||||
Net
income (loss)
|
$
|
36,656
|
$
|
(1,013
|
)
|
$
|
(10,358
|
)
|
$
|
66,442
|
$
|
12,212
|
||||
Net
income (loss) per common share:
|
||||||||||||||||
Basic
|
$
|
1.56
|
$
|
(0.04
|
)
|
$
|
(0.43
|
)
|
$
|
2.78
|
$
|
0.52
|
||||
Diluted
|
$
|
1.55
|
$
|
(0.04
|
)
|
$
|
(0.43
|
)
|
$
|
2.73
|
$
|
0.52
|
||||
Cash
dividends declared per share *
|
$
|
0.05
|
$
|
0.05
|
$
|
0.05
|
$
|
0.05
|
$
|
0.05
|
||||||
Weighted
average shares outstanding:
|
||||||||||||||||
Basic
|
23,526
|
23,496
|
23,834
|
23,874
|
23,528
|
|||||||||||
Diluted
|
23,599
|
23,496
|
23,834
|
24,342
|
23,724
|
|||||||||||
Balance
Sheet Data:
|
||||||||||||||||
Working
capital
|
$
|
80,552
|
$
|
60,800
|
$
|
73,587
|
$
|
92,949
|
$
|
27,749
|
||||||
Total
assets
|
364,568
|
317,118
|
269,534
|
301,559
|
235,392
|
|||||||||||
Total
debt (including current maturities)
|
112,852
|
103,912
|
82,994
|
90,031
|
108,244
|
|||||||||||
Total
stockholders’ equity
|
155,739
|
119,775
|
121,855
|
140,165
|
66,085
|
|||||||||||
Operating
Data:
|
||||||||||||||||
Total
number of layers at period ended (thousands)
|
23,181
|
23,276
|
18,164
|
20,318
|
19,877
|
|||||||||||
Total
shell eggs sold (millions of dozens)
|
685.4
|
683.1
|
575.4
|
605.2
|
570.7
|
Percentage
of Net Sales Fiscal
Years
Ended
|
||||||||||
June
2, 2007
|
June
3, 2006
|
May
28, 2005
|
||||||||
Net
sales
|
100.00
|
%
|
100.00
|
%
|
100.00
|
%
|
||||
Cost
of sales
|
80.2
|
87.0
|
90.6
|
|||||||
Gross
profit
|
19.8
|
13.0
|
9.4
|
|||||||
Selling,
general & administrative expenses
|
10.1
|
12.1
|
12.7
|
|||||||
Operating
income (loss)
|
9.7
|
0
.9
|
(3.3
|
)
|
||||||
Other
income (expense)
|
(0.3
|
)
|
(1.2
|
)
|
(0.8
|
)
|
||||
Income
(loss) before taxes
|
9.4
|
(0.3
|
)
|
(4.1
|
)
|
|||||
Income
tax expense (benefit)
|
3.3
|
(0.1
|
)
|
(1.3
|
)
|
|||||
Net
income (loss)
|
6.1
|
%
|
(0.2
|
)%
|
(2.8
|
)%
|
Total
|
2008
|
2009
|
2010
|
2011
|
2012
|
Over
5 years
|
|
Long-term
debt
|
$112,852
|
$13,442
|
$11,770
|
$12,000
|
$9,817
|
$8,154
|
$57,669
|
Operating
leases
|
12,106
|
4,510
|
2,506
|
2,094
|
1,310
|
780
|
906
|
Total
|
$124,958
|
$17,952
|
$14,276
|
$14,094
|
$11,127
|
$8,934
|
$58,575
|
·
|
Pertain
to the maintenance of records that in reasonable detail accurately
and
fairly reflect the transactions and dispositions of our
assets;
|
·
|
Provide
reasonable assurance that transactions are recorded as necessary
to permit
preparation of financial statements in accordance with generally
accepted
accounting principles, and that our receipts and expenditures are
being
made only in accordance with authorizations of our management and
directors; and
|
·
|
Provide
reasonable assurance regarding prevention or timely detection of
unauthorized acquisition, use or disposition of our assets that could
have
a material effect on the financial
statements.
|
·
|
The
design of controls over all relevant assertions related to all significant
accounts and disclosures in the financial
statements;
|
·
|
Information
about how significant transactions are initiated, authorized, recorded,
processed and reported;
|
·
|
Sufficient
information about the flow of transactions to identify the points
at which
material misstatements due to error or fraud could
occur;
|
·
|
Controls
designed to prevent or detect fraud, including who performs the controls
and the related segregation of
duties;
|
·
|
Controls
over the period-end financial reporting
process;
|
·
|
Controls
over safeguarding of assets; and
|
·
|
The
results of management’s testing and
evaluation.
|
June
2
|
June
3
|
||||||
2007
|
2006
|
||||||
Assets
|
|||||||
Current
assets:
|
|||||||
Cash
and cash equivalents
|
$
|
15,032
|
$
|
13,295
|
|||
Investments
|
39,500
|
25,000
|
|||||
Receivables:
|
|||||||
Trade
receivables, less allowance for doubtful
|
|||||||
accounts
of $150 in 2007 and $346 in 2006
|
37,096
|
23,804
|
|||||
Other
|
1,084
|
1,151
|
|||||
38,180
|
24,955
|
||||||
Recoverable
federal and state income taxes
|
0
|
1,177
|
|||||
Inventories
|
62,208
|
57,843
|
|||||
Prepaid
expenses and other current assets
|
1,390
|
3,408
|
|||||
Total
current assets
|
156,310
|
125,678
|
|||||
Other
assets:
|
|||||||
Notes
receivable and investments
|
7,913
|
8,316
|
|||||
Goodwill
|
4,195
|
4,016
|
|||||
Other
|
2,560
|
2,833
|
|||||
14,668
|
15,165
|
||||||
Property,
plant and equipment, less accumulated
|
|||||||
depreciation
|
193,590
|
176,275
|
|||||
Total
assets
|
$
|
364,568
|
$
|
317,118
|
|||
Liabilities
and stockholders' equity
|
|||||||
Current
liabilities:
|
|||||||
Trade
accounts payable
|
$
|
27,978
|
$
|
24,190
|
|||
Accrued
wages and benefits
|
7,273
|
6,262
|
|||||
Accrued
expenses and other liabilities
|
9,800
|
4,190
|
|||||
Current
maturities of purchase obligation
|
5,435
|
6,884
|
|||||
Current
maturities of long-term debt
|
13,442
|
11,902
|
|||||
Deferred
income taxes
|
11,830
|
11,450
|
|||||
Total
current liabilities
|
75,758
|
64,878
|
|||||
Long-term
debt, less current maturities
|
99,410
|
92,010
|
|||||
Non-controlling
interests in consolidated entities
|
1,894
|
919
|
|||||
Purchase
obligation, less current maturities
|
9,867
|
16,751
|
|||||
Other
noncurrent liabilities
|
2,150
|
3,860
|
|||||
Deferred
income taxes
|
19,750
|
18,925
|
|||||
Total
liabilities
|
208,829
|
197,343
|
|||||
Stockholders'
equity:
|
|||||||
Common
stock, $.01 par value
|
|||||||
Authorized
shares - 60,000 in 2007 and 2006
|
|||||||
Issued
35,130 shares and 21,193 shares outstanding in 2007
and
21,103 shares in 2006
|
351
|
351
|
|||||
Class
A common stock, $.01 par value
|
|||||||
Authorized
shares - 2,400 in 2007 and 2006
|
|||||||
Issued
and outstanding shares - 2,400 in 2007 and 2006
|
24
|
24
|
|||||
Paid-in
capital
|
29,043
|
28,700
|
|||||
Retained
earnings
|
147,667
|
112,183
|
|||||
Common
stock in treasury-13,937 shares in 2007
|
|||||||
and
14,039 in 2006
|
(21,346
|
)
|
(21,483
|
)
|
|||
Total
stockholders' equity
|
155,739
|
119,775
|
|||||
Total
liabilities and stockholders' equity
|
$
|
364,568
|
$
|
317,118
|
Fiscal
years ended
|
||||||||||
June
2
|
June
3
|
May
28
|
||||||||
2007
|
2006
|
2005
|
||||||||
Net
sales
|
$
|
598,128
|
$
|
477,555
|
$
|
375,266
|
||||
Cost
of sales
|
479,504
|
415,338
|
339,833
|
|||||||
Gross
profit
|
118,624
|
62,217
|
35,433
|
|||||||
Selling,
general and administrative
|
60,394
|
57,702
|
47,758
|
|||||||
Operating
income (loss)
|
58,230
|
4,515
|
(12,325
|
)
|
||||||
Other
income (expense):
|
||||||||||
Interest
expense
|
(6,987
|
)
|
(7,949
|
)
|
(5,906
|
)
|
||||
Interest
income
|
1,112
|
1,083
|
1,684
|
|||||||
Equity
in income (loss) of affiliates
|
1,699
|
(757
|
)
|
(88
|
)
|
|||||
Non-controlling
interest
|
286
|
165
|
-
|
|||||||
Other,
net
|
1,921
|
1,465
|
1,227
|
|||||||
(1,969
|
)
|
(5,993
|
)
|
(3,083
|
)
|
|||||
Income
(loss) before income taxes
|
56,261
|
(1,478
|
)
|
(15,408
|
)
|
|||||
Income
tax expense (benefit)
|
19,605
|
(465
|
)
|
(5,050
|
)
|
|||||
Net
income (loss)
|
$
|
36,656
|
$
|
(1,013
|
)
|
$
|
(10,358
|
)
|
||
Net
income (loss) per share:
|
||||||||||
Basic
|
$
|
1.56
|
$
|
(0.04
|
)
|
$
|
(0.43
|
)
|
||
Diluted
|
$
|
1.55
|
$
|
(0.04
|
)
|
$
|
(0.43
|
)
|
||
Weighted
average shares outstanding:
|
||||||||||
Basic
|
23,526
|
23,496
|
23,834
|
|||||||
Diluted
|
23,599
|
23,496
|
23,834
|
Common
Stock
|
||||||||||||||||||||||||||||
Class
A
|
|
Class
A
|
|
Treasury
|
|
Treasury
|
|
Paid-in
|
|
Retained
|
||||||||||||||||||
Shares
|
|
Amount
|
|
Shares
|
|
Amount
|
|
Shares
|
|
Amount
|
|
Capital
|
|
Earnings
|
|
Total
|
||||||||||||
Balance
at May 29, 2004
|
35,130
|
$
|
351
|
2,400
|
$
|
24
|
13,307
|
$
|
(12,426
|
)
|
$
|
26,308
|
$
|
125,908
|
$
|
140,165
|
||||||||||||
Purchase
of treasury stock
|
-
|
-
|
-
|
-
|
943
|
(9,344
|
)
|
-
|
-
|
(9,344
|
)
|
|||||||||||||||||
Cash
dividends paid ($.05
|
||||||||||||||||||||||||||||
per
common share) *
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
(1,184
|
)
|
(1,184
|
)
|
|||||||||||||||||
Issuance
of common
|
||||||||||||||||||||||||||||
stock
from treasury
|
-
|
-
|
-
|
-
|
(207
|
)
|
263
|
2,313
|
-
|
2,576
|
||||||||||||||||||
Net
loss for fiscal 2005
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
(10,358
|
)
|
(10,358
|
)
|
|||||||||||||||||
Balance
at May 28, 2005
|
35,130
|
351
|
2,400
|
24
|
14,043
|
(21,507
|
)
|
28,621
|
114,366
|
121,855
|
||||||||||||||||||
Cash
dividends paid ($.05
|
||||||||||||||||||||||||||||
per
common share) *
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
(1,170
|
)
|
(1,170
|
)
|
|||||||||||||||||
Issuance
of common
|
||||||||||||||||||||||||||||
stock
from treasury
|
-
|
-
|
-
|
-
|
(4
|
)
|
24
|
79
|
-
|
103
|
||||||||||||||||||
Net
loss for fiscal 2006
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
(1,013
|
)
|
(1,013
|
)
|
|||||||||||||||||
Balance
at June 3, 2006
|
35,130
|
351
|
2,400
|
24
|
14,039
|
(21,483
|
)
|
28,700
|
112,183
|
119,775
|
||||||||||||||||||
Cash
dividends paid ($.05
|
||||||||||||||||||||||||||||
per
common share) *
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
(1,172
|
)
|
(1,172
|
)
|
|||||||||||||||||
Issuance
of common
|
||||||||||||||||||||||||||||
stock
from treasury
|
-
|
-
|
-
|
-
|
(102
|
)
|
137
|
125
|
-
|
262
|
||||||||||||||||||
Vesting
of stock based
compensation
|
-
|
-
|
-
|
-
|
-
|
-
|
218
|
-
|
218
|
|||||||||||||||||||
Net
income for fiscal 2007
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
36,656
|
36,656
|
|||||||||||||||||||
Balance
at June 2, 2007
|
35,130
|
$
|
351
|
2,400
|
$
|
24
|
13,937
|
$
|
(21,346
|
)
|
$
|
29,043
|
$
|
147,667
|
$
|
155,739
|
Fiscal
year ended
|
||||||||||
June
2
|
June
3
|
May
28
|
||||||||
2007
|
2006
|
2005
|
||||||||
Cash
flows from operating activities
|
||||||||||
Net
income (loss)
|
$
|
36,656
|
$
|
(1,013
|
)
|
$
|
(10,358
|
)
|
||
Adjustments
to reconcile net income (loss)
|
||||||||||
to
net cash provided by operating activities:
|
||||||||||
Depreciation
and amortization
|
21,476
|
20,569
|
16,441
|
|||||||
Deferred
income taxes
|
1,205
|
985
|
(710
|
)
|
||||||
Equity
in (income) loss of affiliates
|
(1,699
|
)
|
757
|
88
|
||||||
Gain
(loss) on disposal of property, plant and
|
||||||||||
equipment
|
38
|
(1,108
|
)
|
(599
|
)
|
|||||
Interest
on purchase obligation
|
882
|
1,284
|
-
|
|||||||
Net
change in Non-controlling interest in consolidated
entities
|
975
|
(165
|
)
|
-
|
||||||
Change
in operating assets and liabilities, net
|
||||||||||
of
effects from acquisitions
|
||||||||||
Receivables
and other assets
|
(8,097
|
)
|
3,244
|
4,835
|
||||||
Inventories
|
47
|
2,136
|
3,624
|
|||||||
Accounts
payable, accrued expenses
|
||||||||||
and
other liabilities
|
8,241
|
(5,758
|
)
|
(3,707
|
)
|
|||||
Net
cash provided by operating activities
|
59,724
|
20,931
|
9,614
|
|||||||
Cash
flows from investing activities
|
||||||||||
Purchases
of investments
|
(43,250
|
)
|
(60,823
|
)
|
(89,499
|
)
|
||||
Sales
of investments
|
28,750
|
71,207
|
75,581
|
|||||||
Acquisition
of businesses, net of cash acquired
|
(12,053
|
)
|
(23,756
|
)
|
-
|
|||||
Payments
received on notes receivable and
|
||||||||||
from
investments
|
1,453
|
2,288
|
2,170
|
|||||||
Purchases
of property, plant and equipment
|
(23,472
|
)
|
(12,372
|
)
|
(11,977
|
)
|
||||
Increase
in notes receivable and investments
|
(1,202
|
)
|
(2,048
|
)
|
(811
|
)
|
||||
Net
proceeds from disposal of property,
|
||||||||||
plant
and equipment
|
503
|
2,638
|
879
|
|||||||
Net
cash used in investing activities
|
(49,271
|
)
|
(22,866
|
)
|
(23,657
|
)
|
||||
Cash
flows from financing activities
|
||||||||||
Long-term
borrowings
|
29,500
|
28,000
|
2,500
|
|||||||
Principal
payments on long-term debt
|
(31,204
|
)
|
(31,924
|
)
|
(9,537
|
)
|
||||
Payment
of purchase obligation
|
(6,102
|
)
|
-
|
-
|
||||||
Proceeds
from issuance of common stock from
|
||||||||||
treasury
|
262
|
103
|
314
|
|||||||
Purchases
of common stock for treasury
|
-
|
-
|
(9,344
|
)
|
||||||
Payments
of dividends
|
(1,172
|
)
|
(1,170
|
)
|
(1,184
|
)
|
||||
Net
cash used in financing activities
|
(8,716
|
)
|
(4,991
|
)
|
(17,251
|
)
|
||||
Increase
(decrease) in cash and cash equivalents
|
1,737
|
(6,926
|
)
|
(31,294
|
)
|
|||||
Cash
and cash equivalents at beginning of year
|
13,295
|
20,221
|
51,515
|
|||||||
Cash
and cash equivalents at end of year
|
$
|
15,032
|
$
|
13,295
|
$
|
20,221
|
||||
·
|
Persuasive
evidence of an arrangement exists;
|
·
|
Delivery
has occurred;
|
·
|
The
fee for the arrangement is determinable;
and
|
·
|
Collectibility
is reasonably assured.
|
Fiscal
year ended
|
|||||||
June
3
|
May
28
|
||||||
2006
|
2005
|
||||||
Net
loss
|
$
|
(1,013
|
)
|
$
|
(10,358
|
)
|
|
Add:
Stock-based employee compensation
|
|||||||
expense
income included in reported
|
|||||||
net
loss
|
256
|
(798
|
)
|
||||
Deduct:
Total stock-based employee
|
|||||||
compensation
(expense) income determined
|
|||||||
under
fair value based method for all awards
|
(201
|
)
|
400
|
||||
Pro
forma net loss
|
$
|
(958
|
)
|
$
|
(10,756
|
)
|
|
Net
loss per share:
|
|||||||
Basic
— as reported
|
$
|
(0.04
|
)
|
$
|
(0.43
|
)
|
|
Basic
— pro forma
|
$
|
(0.04
|
)
|
$
|
(0.45
|
)
|
|
Diluted
— as reported
|
$
|
(0.04
|
)
|
$
|
(0.43
|
)
|
|
Diluted
— pro forma
|
$
|
(0.04
|
)
|
$
|
(0.45
|
)
|
Cash
consideration paid to seller for 51% of Hillandale, LLC's membership
units
|
$
|
27,006
|
||
Obligation
to acquire 49% of Hillandale, LLC's membership units
|
25,947
|
|||
52,953
|
||||
Less
discount of preliminary purchase price to the present value as of
July 28,
2005
|
(3,556
|
)
|
||
Total
preliminary purchase price
|
$
|
49,397
|
Assets
acquired:
|
||||
Cash
and cash equivalents
|
$
|
3,918
|
||
Receivables
|
7,181
|
|||
Inventories
|
11,330
|
|||
Prepaid
and other assets
|
2,798
|
|||
Property,
plant and equipment
|
49,531
|
|||
Total
assets acquired
|
74,758
|
|||
Liabilities
assumed:
|
||||
Accounts
payable and accrued expenses
|
3,567
|
|||
Notes
payable and long-term debt
|
21,794
|
|||
Total
liabilities assumed
|
25,361
|
|||
Net
assets acquired
|
$
|
49,397
|
Fiscal
Year Ended
|
|||||||
June
3 2006
|
May
28 2005
|
||||||
Net
sales
|
$
|
490,529
|
$
|
456,018
|
|||
Net
loss
|
$
|
(5,169
|
)
|
$
|
(29,326
|
)
|
|
Basic
net loss per share
|
$
|
(0.22
|
)
|
$
|
(1.25
|
)
|
|
Diluted
net loss per share
|
$
|
(0.22
|
)
|
$
|
(1.25
|
)
|
June
2
|
June
3
|
||||||
2007
|
2006
|
||||||
Flocks
|
$
|
40,773
|
$
|
39,092
|
|||
Eggs
|
4,704
|
3,820
|
|||||
Feed
and supplies
|
16,731
|
14,931
|
|||||
$
|
62,208
|
$
|
57,843
|
June
2
|
June
3
|
||||||
2007
|
2006
|
||||||
Land
and improvements
|
$
|
43,222
|
$
|
40,741
|
|||
Buildings
and improvements
|
163,946
|
133,884
|
|||||
Machinery
and equipment
|
168,422
|
158,791
|
|||||
Construction-in-progress
|
726
|
6,415
|
|||||
376,316
|
339,831
|
||||||
Less
accumulated depreciation
|
182,726
|
163,556
|
|||||
$
|
193,590
|
$
|
176,275
|
2008
|
$
|
4,510
|
||
2009
|
2,506
|
|||
2010
|
2,094
|
|||
2011
|
1,310
|
|||
2012
|
780
|
|||
Thereafter
|
906
|
|||
Total
minimum lease payments
|
$
|
12,106
|
June
2
|
June
3
|
||||||
2007
|
2006
|
||||||
Note
payable at 5.99%; due in monthly
|
|||||||
installments
of $150, plus interest, beginning in
|
|||||||
January
2007 through 2020
|
$
|
27,100
|
$
|
28,000
|
|||
Note
payable at 6.35%, due in monthly principal
|
|||||||
installments
of $100, plus interest, maturing in 2017
|
19,900
|
-
|
|||||
Note
payable at 8.26%; due in monthly installments
|
|||||||
of
$155, including interest, maturing in 2015
|
13,808
|
14,500
|
|||||
Note
payable at 6.80%; due in monthly installments
|
|||||||
of
$165, plus interest, maturing in 2013
|
13,070
|
15,050
|
|||||
Note
payable at 6.40%, due in monthly principal
|
|||||||
installments
of $35, plus interest, maturing in 2017
|
6,500
|
-
|
|||||
Series
B Senior Secured Notes at 7.18%; due in
|
|||||||
annual
principal installments of $2,143 beginning in
|
|||||||
December
2003 through 2009 with interest due
|
|||||||
semi-annually
|
6,429
|
8,571
|
|||||
Industrial
revenue bonds at 6.10%; due in
|
|||||||
monthly
installments of $146, including interest,
|
|||||||
maturing
in 2011
|
5,961
|
7,301
|
|||||
Note
payable at 7.06%; due in monthly installments
|
|||||||
of
$53, including interest, maturing in 2015
|
4,936
|
5,211
|
|||||
Note
payable at 6.87%; due in monthly installments
|
|||||||
of
$45, including interest, maturing in 2015
|
4,204
|
4,441
|
|||||
Note
payable at 6.07%, due in monthly principal
|
|||||||
installments
of $33, plus interest, maturing in 2017
|
2,966
|
-
|
|||||
Note
payable at 6.75%;due in monthly principal
|
|||||||
installments
of $25, plus interest, maturing in 2009
|
2,525
|
2,825
|
|||||
Note
payable at 5.8%; due in annual principal
|
|||||||
installments
of $250 beginning in April 2006 through
|
|||||||
2015
with interest due quarterly
|
2,000
|
2,250
|
|||||
Series
A Senior Secured Notes at 6.87%; due in
|
|||||||
annual
principal installments of $1,917 beginning in
|
|||||||
December
2002 through 2008 with interest due
|
|||||||
semi-annually
|
1,917
|
3,833
|
|||||
Note
payable at 7.5%; due in monthly installments
|
|||||||
of
$36, including interest, maturing in 2011
|
1,516
|
1,822
|
|||||
Other
|
20
|
508
|
|||||
Note
payable at 6.7%; due in monthly installments
|
|||||||
of
$100, plus interest, maturing in 2009
|
-
|
9,600
|
|||||
112,852
|
103,912
|
||||||
Less
current maturities
|
13,442
|
11,902
|
|||||
$
|
99,410
|
$
|
92,010
|
2008
|
$
|
13,442
|
||
2009
|
11,770
|
|||
2010
|
12,000
|
|||
2011
|
9,817
|
|||
2012
|
8,154
|
|||
Thereafter
|
57,669
|
|||
$
|
112,852
|
Weighted
|
||||||||||||
Weighted
|
Average
|
|||||||||||
Number
|
Exercise
|
Remaining
|
Aggregate
|
|||||||||
of
|
Price
|
Contractual
|
Intrinsic
|
|||||||||
Options
|
Per
Share
|
Life
(in Years)
|
Value
|
|||||||||
Outstanding
at May 28, 2005
|
128,800
|
|
$
|
1.91
|
||||||||
Granted
|
360,000
|
5.93
|
||||||||||
Exercised
|
15,400
|
|
1.82
|
|||||||||
Outstanding,
June 3, 2006
|
473,400
|
4.97
|
||||||||||
Granted
|
-
|
-
|
||||||||||
Exercised
|
89,800
|
2.92
|
||||||||||
Forfeited
|
|
-
|
|
-
|
|
|
||||||
Outstanding,
June 2, 2007
|
|
383,600
|
$
|
5.45
|
|
7.34
|
$
|
4,019
|
||||
Exercisable,
June 2, 2007
|
|
99,520
|
$
|
4.67
|
|
7.29
|
$
|
875
|
|
|
Weighted
|
|||||
|
Average
|
||||||
|
|
Grant-Date
|
|||||
|
Number
|
Fair
|
|||||
|
of
|
Value
|
|||||
|
Shares
|
Per
Share
|
|||||
Nonvested,
June 3, 2006
|
395,760
|
$
|
2.56
|
||||
Granted
|
-
|
-
|
|||||
Vested
|
(89,880
|
)
|
2.43
|
||||
Forfeited
|
-
|
-
|
|||||
Nonvested,
June 2, 2007
|
305,880
|
$
|
2.61
|
|
|
|
Weighted
|
|
|||||||||
|
|
Weighted
|
Average
|
|
|||||||||
|
Number
|
Average
|
Remaining
|
Aggregate
|
|||||||||
|
Of
|
Strike
Price
|
Contractual
|
Intrinsic
|
|||||||||
|
Rights
|
Per
Right
|
Life
(in Years)
|
Value
|
|||||||||
Outstanding,
June 3, 2006
|
652,000
|
$
|
5.71
|
||||||||||
Granted
|
15,000
|
6.93
|
|||||||||||
Exercised
|
105,550
|
4.66
|
|||||||||||
Forfeited
|
69,000
|
5.93
|
|||||||||||
Outstanding,
June 2, 2007
|
492,450
|
$
|
5.95
|
8.21
|
$
|
3,700
|
|||||||
Exercisable,
June 2, 2007
|
98,610
|
$
|
4.66
|
8.08
|
$
|
756
|
Fiscal
year ended
|
||||||||||
June
2
|
June
3
|
May
28
|
||||||||
2007
|
2006
|
2005
|
||||||||
Current:
|
||||||||||
Federal
|
$
|
16,730
|
$
|
(1,450
|
)
|
$
|
(3,899
|
)
|
||
State
|
1,670
|
-
|
(387
|
)
|
||||||
18,400
|
(1,450
|
)
|
(4,286
|
)
|
||||||
Deferred:
|
||||||||||
Federal
|
675
|
1,245
|
(672
|
)
|
||||||
State
|
530
|
(260
|
)
|
(92
|
)
|
|||||
1,205
|
985
|
(764
|
)
|
|||||||
$
|
19,605
|
$
|
(465
|
)
|
$
|
(5,050
|
)
|
June
2
|
June
3
|
||||||
2007
|
2006
|
||||||
Deferred
tax liabilities:
|
|||||||
Property,
plant and equipment
|
$
|
16,163
|
$
|
16,217
|
|||
Cash
basis temporary differences
|
1,752
|
1,911
|
|||||
Inventories
|
14,001
|
12,636
|
|||||
Investment
in affiliates
|
2,135
|
1,686
|
|||||
Other
|
1,012
|
1,553
|
|||||
Total
deferred tax liabilities
|
35,063
|
34,003
|
|||||
Deferred
tax assets:
|
|||||||
Accrued
expenses
|
2,777
|
2,384
|
|||||
Discount
on acquisition purchase price
|
471
|
372
|
|||||
Amortization
of non-compete contracts
|
184
|
209
|
|||||
Job
tax credit carry forward
|
-
|
250
|
|||||
Other
|
51
|
413
|
|||||
Total
deferred tax assets
|
3,483
|
3,628
|
|||||
Net
deferred tax liabilities
|
$
|
31,580
|
$
|
30,375
|
Fiscal
year end
|
||||||||||
June
2
|
June
3
|
May
28
|
||||||||
2007
|
2006
|
2005
|
||||||||
Statutory
federal income tax (benefit)
|
$
|
19,598
|
$
|
(518
|
)
|
$
|
(5,393
|
)
|
||
State
income taxes (benefit), net
|
1,430
|
(169
|
)
|
(311
|
)
|
|||||
Non-taxable
(deductible) Hillandale, LLC
income (loss)
|
(449
|
)
|
750
|
-
|
||||||
Tax
exempt interest income
|
(278
|
)
|
(634
|
)
|
-
|
|||||
Other,
net
|
(696
|
)
|
106
|
654
|
||||||
$
|
19,605
|
$
|
(465
|
)
|
$
|
(5,050
|
)
|
Fiscal
Year 2007
|
|||||||||||||
First
|
Second
|
Third
|
Fourth
|
||||||||||
Quarter
|
Quarter
|
Quarter
|
Quarter
|
||||||||||
Net
sales
|
$
|
115,308
|
$
|
137,737
|
$
|
175,211
|
$
|
169,872
|
|||||
Gross
profit
|
8,407
|
24,955
|
44,182
|
41,080
|
|||||||||
Net
income (loss)
|
(5,431
|
)
|
6,401
|
17,403
|
18,283
|
||||||||
Net
income (loss) per share:
|
|||||||||||||
Basic
|
$
|
(0.23
|
)
|
$
|
0.27
|
$
|
0.74
|
$
|
0.78
|
||||
Diluted
|
$
|
(0.23
|
)
|
$
|
0.27
|
$
|
0.74
|
$
|
0.77
|
||||
Fiscal
Year 2006
|
|||||||||||||
First
|
Second
|
Third
|
Fourth
|
||||||||||
Quarter
|
Quarter
|
Quarter
|
Quarter
|
||||||||||
Net
sales
|
$
|
79,756
|
$
|
138,288
|
$
|
130,107
|
$
|
129,404
|
|||||
Gross
profit
|
960
|
17,809
|
25,973
|
17,475
|
|||||||||
Net
income (loss)
|
(8,108
|
)
|
(685
|
)
|
7,990
|
(210
|
)
|
||||||
Net
income (loss) per share:
|
|||||||||||||
Basic
|
$
|
(0.35
|
)
|
$
|
(0.03
|
)
|
$
|
0.34
|
$
|
(0.01
|
)
|
||
Diluted
|
$
|
(0.35
|
)
|
$
|
(0.03
|
)
|
$
|
0.34
|
$
|
(0.01
|
)
|
Balance
at
|
Charged
to
|
Write-off
|
Balance
at
|
||||||||||
Beginning
of
|
Cost
and Expense
|
of
Accounts
|
End
of
|
||||||||||
Description
|
Period
|
|
|
Period
|
|||||||||
Year
ended June 2, 2007:
|
|||||||||||||
Allowance
for doubtful accounts
|
$
|
346
|
$
|
612
|
$
|
808
|
$
|
150
|
|||||
Year
ended June 3, 2006:
|
|||||||||||||
Allowance
for doubtful accounts
|
$
|
92
|
$
|
892
|
$
|
638
|
$
|
346
|
|||||
Year
ended May 28, 2005:
|
|||||||||||||
Allowance
for doubtful accounts
|
$
|
90
|
$
|
253
|
$
|
251
|
$
|
92
|
Exhibit
Number
|
Exhibit
|
2.1
|
Agreement
to Form a Limited Liability Company, Transfer Assets Thereto, and
Purchase
Units of Membership
Therein,
dated July 28, 2005, by and among Hillandale Farms of Florida,
Inc.,
Hillandale Farms, Inc., Cal-Maine
Foods,
Inc. and Jack E. Hazen, Jack E. Hazen, Jr., Homer E. Honeycutt,
Jr.,
Orland R. Bethel and Dorman W.
Mizell.
(9)
|
|
|
3.1
|
Amended
and Restated Certificate of Incorporation of the Registrant.
(1)
|
3.1(a)
|
Amendment
to Article 4 of the Certificate of Incorporation of the Registrant.
(7)
|
3.2
|
By-Laws
of the Registrant, as amended. (1)
|
4.1
|
See
Exhibits 3.1 and 3.2 as to the rights of holders of the Registrant’s
common stock.
|
10.1
|
Amended
and Restated Term Loan Agreement, dated as of May 29, 1990, between
Cal-Maine Foods, Inc. and Cooperative Centrale Raiffeisen - Boerenleenbank
B.A., “Rabobank Nederland,” New York Branch, and Amended and Restated
Revolving Credit Agreement among Cal-Maine Foods, Inc., and Barclays
Banks
PLD (New York) and Cooperatieve Centrale Raiffeisen-Borenleenbank
B.A.,
dated as of 29 May 1990, and amendments thereto (without exhibits).
(1)
|
10.1(a)
|
Amendment
to Term Loan Agreement (see Exhibit 10.1) dated as of June 3, 1997
(without exhibits). (2)
|
10.1(b)
|
Amendment
to Term Loan Agreement (see Exhibit 10.1) dated as of March 31,
2004
(without exhibits). (7)
|
10.1(c)
|
Amendment
to Term Loan Agreement (see Exhibit 10.1) dated as of April 14,
2004
(without exhibits). (7)
|
|
|
10.1(d)
|
Amendment
to Term Loan Agreement (see Exhibit 10.1) dated as of August 6,
2004
(without exhibits). (8)
|
|
|
10.1(e)
|
Amendment
to Term Loan Agreement (see Exhibit 10.1) dated as of March 15,
2005
(without exhibits). (8)
|
|
|
10.1(f)
|
Amendment
to Term Loan Agreement (see Exhibit 10.1) dated as of October 13,
2006
(without exhibits). (12)
|
10.1(g)
|
Second
Amendment and Restated [through Ninth Amendment] Revolving Credit
Agreement dated as of February 6, 2002, among Cal-Maine Foods,
Inc. and
(as defined herein) First South, Rabobank and Harris (without exhibits,
schedules or annex). (15)
|
10.1(h)
|
Tenth
Amendment to Second Amendment and Restated Revolving Credit Agreement,
dated as of March 15, 2007, among Cal-Maine Foods, Inc. and (as
defined
herein) First South, Rabobank and Harris (without exhibits, schedules
or
annex). (15)
|
|
|
10.15
|
Deferred
Compensation Plan, dated December 28, 2006. (13)
|
10.16
|
Loan
Agreement, dated as of November 13, 2006, between Metropolitan
Life
Insurance Company and Cal-Maine Foods Inc. (without exhibits.)
(14)
|
10.2
|
Note
Purchase Agreement, dated as of November 10, 1993, between John
Hancock
Mutual Life Insurance Company and Cal-Maine Foods, Inc., and amendments
thereto (without exhibits). (1)
|
10.3
|
Loan
Agreement, dated as of May 1, 1991, between Metropolitan Life Insurance
Corporation and Cal-Maine Foods, Inc., and amendments thereto (without
exhibits). (1)
|
10.4
|
Employee
Stock Ownership Plan, as Amended and Restated. (1) +
|
10.5
|
1993
Stock Option Plan, as Amended. (1) +
|
10.6
|
Wage
Continuation Plan, dated as of July 1, 1986, between Jack Self
and the
Registrant, as amended on September 2, 1994. (1) +
|
10.7
|
Wage
Continuation Plan, dated as of April 15, 1988, between Joe Wyatt
and the
Registrant. (1) +
|
10.8
|
Redemption
Agreement, dated March 7, 1994, between the Registrant and Fred
R. Adams,
Jr. (1)
|
10.9
|
Note
Purchase Agreement, dated December 18, 1997, among the Registrant,
Cal-Maine Farms, Inc., Cal-Maine Egg Products, Inc., Cal-Maine
Partnership, LTD, CMF of Kansas LLC and First South Production
Credit
Association and Metropolitan Life Insurance Company (without exhibits,
except names of guarantors and forms of notes)
(3)
|
10.10
|
Wage
Continuation Plan, dated as of January 14, 1999, among Stephen
Storm,
Charles F. Collins, Bob Scott and the Registrant (4)+
|
10.11
|
Secured
note purchase agreement dated September 28, 1999 among the Registrant,
Cal-Maine Partnership, LTD, and John Hancock Mutual Life Insurance
Company, and John Hancock Variable Life Insurance Company (without
exhibits, annexes and disclosure schedules) (5)
|
10.11(a)
|
Amended
and Restated Second Note Purchase Agreement, dated as of September
30,
2003, conformed copy reflecting First, Second, and Third Amendments,
among
Cal-Maine Foods, Inc., Cal-Maine Partnership, Ltd., and John Hancock
Life
Insurance Company and John Hancock Variable Life Insurance Company
(without exhibits, schedules or annex). (15)
|
10.11(b)
|
Fourth
Amendment and Waiver Agreement dated as of March 1, 2007, among
Cal-Maine
Foods, Inc. and Cal-Maine Partnership, LTD, and John Hancock Life
Insurance Company and John Hancock Variable Life Insurance Company
(without exhibits, schedules or annex). (15)
|
10.12
|
1999
Stock Option Plan (6)+
|
10.13
|
2005
Stock Option Plan (10)+
|
10.14
|
2005
Stock Appreciation Rights Plan (11)+
|
21
|
Subsidiaries
of the Registrant
|
23.1
|
Consent
of Moore Stephens Frost
|
23.2
|
Consent
of Ernst & Young LLP
|
31.1
|
Certification
of Chief Executive Officer
|
31.2
|
Certification
of Chief Financial Officer
|
32
|
Written
Statement of the Chief Executive Officer and the Chief Financial
Officer
|
+
|
Management
contract or compensatory plan.
|
(1)
|
Incorporated
by reference to the same exhibit in Registrant’s Form S-1 Registration
Statement No. 333-14809.
|
(2)
|
Incorporated
by reference to the same exhibit in Registrant’s Form 10-K for fiscal year
ended May 31, 1997.
|
(3)
|
Incorporated
by reference to the same exhibit in Registrant’s Form 10-Q for the quarter
ended November 29, 1997.
|
(4)
|
Incorporated
by reference to the same exhibit in Registrant’s Form 10-K for fiscal year
ended May 29, 1999.
|
(5)
|
Incorporated
by reference to the same exhibit in Registrant’s Form 10-Q for the quarter
ended November 27, 1999.
|
(6)
|
Incorporated
by reference to Registrant’s Form S-8 Registration Statement No.
333-39940, dated June 23, 2000.
|
(7)
|
Incorporated
by reference to the same exhibit in Registrant’s Form 10-K for fiscal year
ended May 29, 2004.
|
(8)
|
Incorporated
by reference to the same exhibit in Registrant’s Form 10-K for fiscal year
ended May 28, 2005.
|
(9)
|
Incorporated
by reference to the same exhibit in Registrant’s Form 8-K, dated July 28,
2005.
|
(10)
|
Incorporated
by reference to Appendix B to Registrant’s Proxy Statement for Annual
Meeting held October 13, 2005.
|
(11)
|
Incorporated
by reference to Appendix C to Registrant’s Proxy Statement for Annual
Meeting held October 13, 2005.
|
(12)
|
Incorporated
by reference to the same exhibit in Registrant’s Form 10-K for fiscal year
ended
|
June
3, 2006
|
|
(13)
|
Incorporated
by reference to the same exhibit in Registrant's Form 8-K, dated
December
28, 2006.
|
(14)
|
Incorporated
by reference to the same exhibit in Registrant’s Form 10-Q for the quarter
ended December 2, 2006
|
(15)
|
Incorporated
by reference to the same exhibit in Registrant's Form 8-K, dated
March 9,
2007.
|
The
Company agrees to file with the Securities and Exchange Commission,
upon
request, copies of any instrument defining the rights of the holders
of
its consolidated long-term debt.
|
|
(c)
|
Financial
Statement Schedules Required by Regulation
S-X
|
Signature
|
Title
|
Date
|
||
/s/
Fred R. Adams, Jr.
|
Chairman
of the Board and
|
08/13/2007
|
||
Fred
R. Adams, Jr.
|
Chief
Executive Officer
|
|||
(Principal
Executive Officer)
|
||||
/s/
Richard K. Looper
|
Vice
Chairman of the Board
|
08/13/2007
|
||
Richard
K. Looper
|
and
Director
|
|||
/s/
Adolphus B. Baker
|
President
and Director
|
08/13/2007
|
||
Adolphus
B. Baker
|
||||
/s/
Timothy A. Dawson
|
Vice
President, Chief Financial
|
08/13/2007
|
||
Timothy
A. Dawson
|
Officer
and Director
|
|||
(Principal
Financial Officer)
|
||||
/s/
Charles F. Collins
|
Vice
President, Controller
|
08/13/2007
|
||
Charles
F. Collins
|
(Principal
Accounting Officer)
|
|||
/s/
Letitia C. Hughes
|
Director
|
08/13/2007
|
||
Letitia
C. Hughes
|
||||
Director
|
||||
R.
Faser Triplett
|
||||
/s/
James E. Poole
|
Director
|
08/13/2007
|
||
James
E. Poole
|
Exhibit
|
|
Number
|
Exhibit
|
21
|
Subsidiaries
of Cal-Maine Foods, Inc
|
23.1
|
Consent
of Moore Stephens Frost
|
23.2
|
Consent
of Ernst & Young LLP
|
31.1
|
Certification
of The Chief Executive Officer
|
31.2
|
Certification
of The Chief Financial Officer
|
32
|
Written
Statement of The Chief Executive Officer and Chief Financial
Officer
|