x
|
ANNUAL REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
1934
|
o
|
TRANSITION
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
1934
|
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 Global
Market
|
Large
accelerated filer ¨
|
Accelerated
filer x
|
Non-accelerated
filer ¨
(Do
not check if a smaller reporting company)
|
Smaller
reporting company ¨
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Item
|
Page
Number
|
|
Part
I
|
||
1.
|
Business
|
3
|
1A.
|
Risk
Factors
|
9
|
1B.
|
Unresolved
Staff Comments
|
13
|
2.
|
Properties
|
13
|
3.
|
Legal
Proceedings
|
13
|
4.
|
Submission
of Matters to a Vote of Security Holders
|
15
|
Part
II
|
||
5.
|
Market
for the Registrant’s Common Equity, Related Stockholder Matters and Issuer
Purchases of Equity Securities
|
16
|
6.
|
Selected
Financial Data
|
17
|
7.
|
Management’s
Discussion and Analysis of Financial Condition and Results of
Operations
|
18
|
7A.
|
Quantitative
and Qualitative Disclosures About Market Risk
|
32
|
8.
|
Financial
Statements and Supplementary Data
|
33
|
9.
|
Changes
in and Disagreements with Accountants on Accounting and Financial
Disclosure
|
75
|
9A.
|
Controls
and Procedures
|
75
|
9B.
|
Other
Information
|
75
|
Part
III
|
||
10.
|
Directors
and Executive Officers of the Registrant
|
76
|
11.
|
Executive
Compensation
|
76
|
12.
|
Security
Ownership of Certain Beneficial Owners and Management and Related
Stockholder Matters.
|
76
|
13.
|
Certain
Relationships and Related Transactions
|
76
|
14.
|
Principal
Accountant Fees and Services
|
76
|
Part
IV
|
||
15.
|
Exhibits
and Financial Statement Schedules
|
77
|
Signatures
|
82
|
-
|
will
identify suitable acquisition
candidates;
|
-
|
can
consummate acquisitions on acceptable terms;
or
|
|
-
|
can
successfully integrate any acquired business into our operations or
successfully manage the operations of any acquired
business.
|
ITEM
5.
|
MARKET FOR
REGISTRANT’S COMMON EQUITY, RELATED SHAREHOLDER MATTERS
AND ISSUER
PURCHASES OF EQUITY SECURITIES
|
Sales Price
|
Dividends
|
||||||||||||||
Fiscal Year Ended
|
Fiscal Quarter
|
High
|
Low
|
||||||||||||
|
|||||||||||||||
May
31, 2008
|
First
Quarter
|
$ | 22.73 | $ | 13.04 | $ | 0.0125 | ||||||||
Second
Quarter
|
28.75 | 19.59 | 0.0125 | ||||||||||||
Third
Quarter
|
35.90 | 20.75 | 0.8038 | ||||||||||||
Fourth
Quarter
|
40.75 | 26.60 | 0.5138 | ||||||||||||
|
|||||||||||||||
May
30, 2009
|
First
Quarter
|
$ | 48.80 | $ | 27.72 | $ | 0.1570 | ||||||||
Second
Quarter
|
42.21 | 21.08 | 0.3817 | ||||||||||||
Third
Quarter
|
30.99 | 22.00 | 0.4322 | ||||||||||||
Fourth
Quarter
|
27.96 | 17.01 | 0.1438 |
Fiscal
Years Ended
|
||||||||||||||||||||
May
30
|
May
31
|
June
2
|
June
3
|
May
28
|
||||||||||||||||
2009**
|
2008
|
2007**
|
2006**
|
2005
|
||||||||||||||||
52
wks
|
52
wks
|
52
wks
|
53
wks
|
52
wks
|
||||||||||||||||
(Amounts
in thousands, except per share and operating data)
|
||||||||||||||||||||
Statement
of Operations Data:
|
||||||||||||||||||||
Net
sales
|
$ | 928,812 | $ | 915,939 | $ | 598,128 | $ | 477,555 | $ | 375,266 | ||||||||||
Cost
of sales
|
724,085 | 617,383 | 479,504 | 415,338 | 339,833 | |||||||||||||||
Gross
profit
|
204,727 | 298,556 | 118,624 | 62,217 | 35,433 | |||||||||||||||
Selling,
general and administrative
|
83,253 | 74,919 | 60,394 | 57,702 | 47,758 | |||||||||||||||
Operating
income (loss)
|
121,474 | 223,637 | 58,230 | 4,515 | (12,325 | ) | ||||||||||||||
Other
income (expense):
|
||||||||||||||||||||
Interest
expense (net of non cash interest expense & interest
income)
|
(4,565 | ) | (3,152 | ) | (4,993 | ) | (5,582 | ) | (4,222 | ) | ||||||||||
Interest
expense - non cash
|
(477 | ) | (942 | ) | (882 | ) | (1,284 | ) | - | |||||||||||
Equity
in income (loss) of affiliates
|
2,612 | 6,324 | 1,699 | (757 | ) | (88 | ) | |||||||||||||
Non-controlling
interest
|
(324 | ) | (175 | ) | 286 | 165 | - | |||||||||||||
Other
(net)
|
2,290 | 5,699 | 1,921 | 1,465 | 1,227 | |||||||||||||||
(464 | ) | 7,754 | (1,969 | ) | (5,993 | ) | (3,083 | ) | ||||||||||||
Income
(loss) before income tax
|
121,010 | 231,391 | 56,261 | (1,478 | ) | (15,408 | ) | |||||||||||||
Income
tax expense (benefit)
|
41,510 | 79,530 | 19,605 | (465 | ) | (5,050 | ) | |||||||||||||
Net
income (loss)
|
$ | 79,500 | $ | 151,861 | $ | 36,656 | $ | (1,013 | ) | $ | (10,358 | ) | ||||||||
Net
income (loss) per common share:
|
||||||||||||||||||||
Basic
|
$ | 3.34 | $ | 6.41 | $ | 1.56 | $ | (0.04 | ) | $ | (0.43 | ) | ||||||||
Diluted
|
$ | 3.34 | $ | 6.40 | $ | 1.55 | $ | (0.04 | ) | $ | (0.43 | ) | ||||||||
Cash
dividends declared per common share *
|
$ | 1.11 | $ | 1.34 | $ | 0.05 | $ | 0.05 | $ | 0.05 | ||||||||||
Weighted
average shares outstanding:
|
||||||||||||||||||||
Basic
|
23,769 | 23,677 | 23,526 | 23,496 | 23,834 | |||||||||||||||
Diluted
|
23,811 | 23,733 | 23,599 | 23,496 | 23,834 | |||||||||||||||
Balance
Sheet Data:
|
||||||||||||||||||||
Working
capital
|
$ | 137,999 | $ | 121,550 | $ | 80,552 | $ | 60,800 | $ | 73,587 | ||||||||||
Total
assets
|
582,845 | 501,236 | 364,568 | 317,118 | 269,534 | |||||||||||||||
Total
debt (including current maturities)
|
129,789 | 97,150 | 112,852 | 103,912 | 82,994 | |||||||||||||||
Total
stockholders’ equity
|
332,051 | 275,680 | 155,739 | 119,775 | 121,855 | |||||||||||||||
Operating
Data:
|
||||||||||||||||||||
Total
number of layers at period ended (thousands)
|
27,022 | 21,853 | 23,181 | 23,276 | 18,164 | |||||||||||||||
Total
shell eggs sold (millions of dozens)
|
777.9 | 678.5 | 685.5 | 683.1 | 575.4 |
*
|
Effective
October 2, 2008, our Class A Common Stock is paid a dividend rate equal to
the rate on our Common Stock. Prior to that date, Class A
shares were paid at 95% of the common stock dividend
rate.
|
**
|
Results
for fiscal 2006 include the results of operations of Hillandale, LLC,
which was consolidated with our operations as of July 29,
2005. Results for fiscal 2007 include the results of operations
of Green Forest Foods, LLC which was consolidated with our operations as
of January 24, 2007, and Benton County Foods, LLC, which was consolidated
with our operations as of April 20, 2007. Results for fiscal
2009 include the results of operations of Zephyr Egg, LLC, which was
consolidated with our operations as of June 27, 2008, and Tampa Farms,
LLC, which was consolidated with our operations as of December 11,
2008. See Note 2 to the Consolidated Financial Statements
included in this Annual Report for a description of these acquisitions in
fiscal 2006, 2007, and 2009.
|
ITEM
7.
|
MANAGEMENT’S
DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
OPERATIONS
|
Percentage of Net Sales
Fiscal Years Ended
|
||||||||||||
May 30, 2009
|
May 31, 2008
|
June 2, 2007
|
||||||||||
Net
sales
|
100.00 | % | 100.00 | % | 100.00 | % | ||||||
Cost
of sales
|
78.0 | 67.4 | 80.2 | |||||||||
Gross
profit
|
22.0 | 32.6 | 19.8 | |||||||||
Selling,
general & administrative expenses
|
8.9 | 8.2 | 10.1 | |||||||||
Operating
income
|
13.1 | 24.4 | 9.7 | |||||||||
Other
income (expense)
|
(0.1 | ) | 0.9 | (0.3 | ) | |||||||
Income
before taxes
|
13.0 | 25.3 | 9.4 | |||||||||
Income
tax expense
|
4.5 | 8.7 | 3.3 | |||||||||
Net
income
|
8.5 | % | 16.6 | % | 6.1 | % |
Fiscal
Year ended
|
May 30, 2009
|
May 31, 2008
|
June 2, 2007
|
|||||||||
Net
income (loss) - (in thousands)
|
$ | 79,500 | $ | 151,861 | $ | 36,656 | ||||||
Net
average shell egg selling price
|
$ | 1.14 | $ | 1.26 | $ | 0.83 | ||||||
Urner
Barry Spot Egg Market Quotations1
|
$ | 1.21 | $ | 1.38 | $ | 0.93 |
Fiscal
Years Ended
(52
weeks)
|
Quarter Ended
(13
weeks)
|
|||||||||||||||
May
30, 2009
|
May
31, 2008
|
May
30, 2009
|
May
31, 2008
|
|||||||||||||
(Amounts
in thousands)
|
(Amounts
in thousands)
|
|||||||||||||||
Total
net sales
|
$ | 928,812 | $ | 915,939 | $ | 213,601 | $ | 235,628 | ||||||||
Non-specialty
shell egg sales
|
$ | 718,677 | $ | 736,968 | $ | 162,614 | $ | 186,254 | ||||||||
Specialty
shell egg sales
|
168,785 | 121,229 | 43,124 | 34,706 | ||||||||||||
Net
shell egg sales
|
$ | 887,462 | $ | 858,197 | $ | 205,738 | $ | 220,960 | ||||||||
Net
shell egg sales as a percent
of total net sales
|
95 | % | 94 | % | 96 | % | 94 | % | ||||||||
Non-
specialty shell egg dozens sold
|
670,860 | 597,496 | 178,260 | 145,660 | ||||||||||||
Specialty
shell egg dozens sold
|
107,025 | 80,997 | 26,997 | 22,584 | ||||||||||||
Total
dozens sold
|
777,885 | 678,493 | 205,257 | 168,244 |
Fiscal
Years Ended
(52
weeks)
|
Quarter
Ended
(13
weeks)
|
|||||||||||||||
May
30, 2009
|
May
31, 2008
|
May
30, 2009
|
May
31, 2008
|
|||||||||||||
(Amounts
in thousands)
|
(Amounts
in thousands)
|
|||||||||||||||
Cost
of sales
|
$ | 724,085 | $ | 617,383 | $ | 175,694 | $ | 163,586 | ||||||||
Dozens
produced
|
598,042 | 535,216 | 161,082 | 128,950 | ||||||||||||
Dozens
purchased outside
|
179,843 | 143,277 | 44,175 | 39,294 | ||||||||||||
Dozens
sold
|
777,885 | 678,493 | 205,257 | 168,244 | ||||||||||||
Feed
cost (price per dozen produced )
|
$ | .391 | $ | .334 | $ | .376 | $ | .424 | ||||||||
Farm
production cost (price per dozen produced)
|
$ | .609 | $ | .524 | $ | .593 | $ | .596 | ||||||||
Outside
egg purchases (average price paid per dozen)
|
$ | 1.114 | $ | 1.273 | $ | .990 | $ | 1.323 |
Fiscal
Years Ended
(52
weeks)
|
||||||||||||||||||||
Actual
|
Less:
Acquisitions
|
Net
|
||||||||||||||||||
May
30, 2009
|
May
30, 2009
|
May
30, 2009
|
May
31, 2008
|
Change
|
||||||||||||||||
Category
|
(Amounts
in thousands)
|
|||||||||||||||||||
Stock
compensation expense
|
$ | 495 | $ | - | $ | 495 | $ | 7,071 | $ | (6,576 | ) | |||||||||
Specialty
egg expenses
|
18,879 | 2,663 | 16,216 | 12,639 | 3,577 | |||||||||||||||
Payroll
and overhead
|
19,220 | 2,132 | 17,088 | 16,758 | 330 | |||||||||||||||
Other
expenses
|
17,951 | 3,845 | 14,106 | 16,748 | (2,642 | ) | ||||||||||||||
Delivery
expense
|
26,708 | 4,608 | 22,100 | 21,703 | 397 | |||||||||||||||
Total
|
$ | 83,253 | $ | 13,248 | $ | 70,005 | $ | 74,919 | $ | (4,914 | ) |
Fiscal
Years Ended
(13
weeks)
|
||||||||||||||||||||
Actual
|
Less:
Acquisitions
|
Net
|
||||||||||||||||||
May
30, 2009
|
May
30, 2009
|
May
30, 2009
|
May
31, 2008
|
Change
|
||||||||||||||||
Category
|
(Amounts
in thousands)
|
|||||||||||||||||||
Stock
compensation expense
|
$ | 537 | $ | - | $ | 537 | $ | (368 | ) | $ | 905 | |||||||||
Specialty
egg expenses
|
5,179 | 692 | 4,487 | 3,541 | 946 | |||||||||||||||
Payroll
and overhead
|
5,501 | 967 | 4,534 | 5,178 | (644 | ) | ||||||||||||||
Other
expenses
|
4,658 | 2,231 | 2,427 | 5,939 | (3,512 | ) | ||||||||||||||
Delivery
expense
|
6,863 | 1,754 | 5,109 | 5,709 | (600 | ) | ||||||||||||||
Total
|
$ | 22,738 | $ | 5,644 | $ | 17,094 | $ | 19,999 | $ | (2,905 | ) |
Fiscal
Years Ended
(52
weeks)
|
||||||||
May
31, 2008
|
June
2, 2007
|
|||||||
(Amounts
in thousands)
|
||||||||
Total
net sales
|
$ | 915,939 | $ | 598,128 | ||||
Non-specialty
shell egg sales
|
$ | 736,968 | $ | 485,058 | ||||
Specialty
shell egg sales
|
121,229 | 86,619 | ||||||
Net
shell egg sales
|
$ | 858,197 | $ | 571,677 | ||||
Net
shell egg sales as a percent of total net
sales
|
94 | % | 96 | % | ||||
Non-
specialty shell egg dozens sold
|
597,496 | 626,052 | ||||||
Specialty
shell egg dozens sold
|
80,997 | 59,486 | ||||||
Total
dozens sold
|
678,493 | 685,538 |
Fiscal
Years Ended
(52
Weeks)
|
||||||||
May
31, 2008
|
June
2, 2007
|
|||||||
(Amounts
in thousands)
|
||||||||
Cost
of sales
|
$ | 617,383 | $ | 479,504 | ||||
Dozens
produced
|
535,216 | 535,502 | ||||||
Dozens
purchased outside
|
143,277 | 150,036 | ||||||
Dozens
sold
|
678,493 | 685,538 | ||||||
Feed
cost (price per dozen produced )
|
$ | .334 | $ | .252 | ||||
Farm
production cost (price per dozen produced)
|
$ | .524 | $ | .435 | ||||
Outside
egg purchases (average price paid per dozen)
|
$ | 1.273 | $ | .842 |
Fiscal
Years Ended
(52
weeks)
|
||||||||||||
May
31, 2008
|
June
2, 2007
|
Change
|
||||||||||
Category
|
(Amounts
in thousands)
|
|||||||||||
Stock
compensation expense
|
$ | 7,071 | $ | 2,309 | $ | 4,762 | ||||||
Specialty
egg expenses
|
12,639 | 10,129 | 2,510 | |||||||||
Payroll
and overhead
|
16,758 | 14,519 | 2,239 | |||||||||
Other
sga expenses
|
16,748 | 12,332 | 4,416 | |||||||||
Delivery
expense
|
21,703 | 21,105 | 598 | |||||||||
Total
|
$ | 74,919 | $ | 60,394 | $ | 14,525 |
Total
|
2010
|
2011
|
2012
|
2013
|
2014
|
Over 5 years
|
||||||||||||||||||||||
Long-term
debt
|
$ | 129,789 | $ | 13,806 | $ | 36,784 | $ | 9,960 | $ | 10,066 | $ | 9,430 | $ | 49,743 | ||||||||||||||
Purchase
obligation
|
8,400 | 8,400 | - | - | - | - | - | |||||||||||||||||||||
Operating
leases
|
7,990 | 2,659 | 1,718 | 1,165 | 977 | 449 | 1,022 | |||||||||||||||||||||
Total
|
$ | 146,179 | $ | 24,865 | $ | 38,502 | $ | 11,125 | $ | 11,043 | $ | 9,879 | $ | 50,765 |
•
|
Level
1 - Quoted prices in active markets for identical assets or
liabilities.
|
•
|
Level
2 - Quoted prices in active markets for similar assets or liabilities,
quoted prices in markets that are not active, or inputs other than quoted
prices that are observable for the asset or
liability.
|
•
|
Level
3 - Unobservable inputs for the asset or
liability.
|
Fiscal Period
|
Description
|
Amount
|
||||
1999
|
Acquisition
of Hudson Brothers, Inc.
|
$ | 3,147 | |||
2006
|
Acquisition
of Hillandale Farms, LLC
|
869 | ||||
2007
|
Acquisition
of Green Forest Foods, LLC
|
179 | ||||
2008
|
Revision
to purchase price for incremental purchase of Hillandale
|
9,257 | ||||
2009
|
Revision
to purchase price for incremental purchase of Hillandale
|
2,527 | ||||
2009
|
Acquisition
of Zephyr Egg, LLC
|
1,876 | ||||
2009
|
Acquisition
of Tampa Farms, LLC
|
4,600 | ||||
Total
Goodwill
|
$ | 22,455 |
·
|
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.
|
FROST,
PLLC /s/
|
|
FROST,
PLLC /s/
|
|
May 30
|
May 31
|
|||||||
2009
|
2008
|
|||||||
Assets
|
||||||||
Current
assets:
|
||||||||
Cash
and cash equivalents
|
$ | 66,883 | $ | 94,858 | ||||
Investments
securities available-for-sale
|
15,165 | - | ||||||
Receivables:
|
||||||||
Trade
receivables, less allowance for doubtful
|
||||||||
accounts
of $394 in 2009 and $313 in 2008
|
43,682 | 44,793 | ||||||
Other
|
946 | 3,137 | ||||||
44,628 | 47,930 | |||||||
Inventories
|
97,535 | 76,766 | ||||||
Prepaid
expenses and other current assets
|
17,474 | 4,711 | ||||||
Total
current assets
|
241,685 | 224,265 | ||||||
Other
assets:
|
||||||||
Investments
securities trading
|
33,150 | - | ||||||
Investments
securities available-for-sale
|
- | 40,754 | ||||||
Other
investments
|
18,069 | 13,421 | ||||||
Goodwill
|
22,455 | 13,452 | ||||||
Other
intangible assets
|
15,056 | 302 | ||||||
Other
long-lived assets
|
2,472 | 2,549 | ||||||
91,202 | 70,478 | |||||||
Property,
plant and equipment, less accumulated
|
||||||||
depreciation
|
249,958 | 206,493 | ||||||
Total
assets
|
$ | 582,845 | $ | 501,236 | ||||
Liabilities
and stockholders' equity
|
||||||||
Current
liabilities:
|
||||||||
Trade
accounts payable
|
$ | 40,327 | $ | 35,691 | ||||
Accrued
dividends payable
|
3,422 | 12,186 | ||||||
Accrued
wages and benefits
|
9,559 | 9,111 | ||||||
Accrued
expenses and other liabilities
|
8,537 | 10,964 | ||||||
Current
maturities of purchase obligation
|
8,400 | 10,358 | ||||||
Current
maturities of long-term debt
|
13,806 | 11,470 | ||||||
Deferred
income taxes
|
19,635 | 12,935 | ||||||
Total
current liabilities
|
103,686 | 102,715 | ||||||
Long-term
debt, less current maturities
|
115,983 | 85,680 | ||||||
Non-controlling
interests in consolidated entities
|
958 | 1,687 | ||||||
Purchase
obligation, less current maturities
|
- | 9,598 | ||||||
Other
noncurrent liabilities
|
3,532 | 4,120 | ||||||
Deferred
income taxes
|
26,635 | 21,756 | ||||||
Total
liabilities
|
250,794 | 225,556 | ||||||
Commitments
and contingencies – See Notes 7,8,9, and 11
|
||||||||
Stockholders'
equity:
|
||||||||
Common
stock, $.01 par value
|
||||||||
Authorized
shares - 60,000 in 2009 and 2008
|
||||||||
Issued
35,130 shares in 2009 and 2008 with
|
||||||||
21,389
and 21,317 shares outstanding respectively
|
351 | 351 | ||||||
Class
A common stock, $.01 par value
|
||||||||
Authorized
shares - 2,400 in 2009 and 2008
|
||||||||
Issued
and outstanding shares - 2,400 in 2009 and 2008
|
24 | 24 | ||||||
Paid-in
capital
|
32,098 | 29,697 | ||||||
Retained
earnings
|
320,623 | 267,616 | ||||||
Common
stock in treasury, at cost, –13,741 shares in 2009
|
||||||||
and
13,813 in 2008
|
(21,045 | ) | (21,156 | ) | ||||
Accumulated
other comprehensive loss
|
- | (852 | ) | |||||
Total
stockholders' equity
|
332,051 | 275,680 | ||||||
Total
liabilities and stockholders' equity
|
$ | 582,845 | $ | 501,236 |
Fiscal years ended
|
||||||||||||
May 30
|
May 31
|
June 2
|
||||||||||
2009
|
2008
|
2007
|
||||||||||
Net
sales
|
$ | 928,812 | $ | 915,939 | $ | 598,128 | ||||||
Cost
of sales
|
724,085 | 617,383 | 479,504 | |||||||||
Gross
profit
|
204,727 | 298,556 | 118,624 | |||||||||
Selling,
general and administrative
|
83,253 | 74,919 | 60,394 | |||||||||
Operating
income
|
121,474 | 223,637 | 58,230 | |||||||||
Other
income (expense):
|
||||||||||||
Interest
expense
|
(7,096 | ) | (7,712 | ) | (6,987 | ) | ||||||
Interest
income
|
2,054 | 3,618 | 1,112 | |||||||||
Equity
in income of affiliates
|
2,612 | 6,324 | 1,699 | |||||||||
Non-controlling
interest
|
(324 | ) | (175 | ) | 286 | |||||||
Other,
net
|
2,290 | 5,699 | 1,921 | |||||||||
(464 | ) | 7,754 | (1,969 | ) | ||||||||
Income
before income taxes
|
121,010 | 231,391 | 56,261 | |||||||||
Income
tax expense
|
41,510 | 79,530 | 19,605 | |||||||||
Net
income
|
$ | 79,500 | $ | 151,861 | $ | 36,656 | ||||||
Net
income per share:
|
||||||||||||
Basic
|
$ | 3.34 | $ | 6.41 | $ | 1.56 | ||||||
Diluted
|
$ | 3.34 | $ | 6.40 | $ | 1.55 | ||||||
Weighted
average shares outstanding:
|
||||||||||||
Basic
|
23,769 | 23,677 | 23,526 | |||||||||
Diluted
|
23,811 | 23,733 | 23,599 |
Common Stock
|
||||||||||||||||||||||||||||||||||||||||
Class A
|
Class A
|
Treasury
|
Treasury
|
Paid In
|
Retained
|
Accum. Other
|
||||||||||||||||||||||||||||||||||
Shares
|
Amount
|
Shares
|
Amount
|
Shares
|
Amount
|
Capital
|
Earnings
|
Comp. Loss
|
Total
|
|||||||||||||||||||||||||||||||
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 | |||||||||||||||||||||||||||||
Dividends
*
|
- | - | - | - | - | - | - | (31,912 | ) | - | (31,912 | ) | ||||||||||||||||||||||||||||
Issuance
of common stock from treasury
|
- | - | - | - | (124 | ) | 190 | 436 | - | - | 626 | |||||||||||||||||||||||||||||
Vesting
of stock based compensation
|
|
- | - | - | - | - | - | 218 | - | - | 218 | |||||||||||||||||||||||||||||
Net
income for fiscal 2008
|
- | - | - | - | - | - | - | 151,861 | - | 151,861 | ||||||||||||||||||||||||||||||
Other
comprehensive loss (net of tax
$544)
|
- | - | - | - | - | - | - | - | (852 | ) | (852 | ) | ||||||||||||||||||||||||||||
Total
comprehensive income
|
151,009 | |||||||||||||||||||||||||||||||||||||||
Balance
at May 31, 2008
|
35,130 | $ | 351 | 2,400 | $ | 24 | 13,813 | $ | (21,156 | ) | $ | 29,697 | $ | 267,616 | $ | (852 | ) | $ | 275,680 | |||||||||||||||||||||
Dividends
*
|
- | - | - | - | - | - | - | (26,493 | ) | - | (26,493 | ) | ||||||||||||||||||||||||||||
Issuance
of common
|
- | |||||||||||||||||||||||||||||||||||||||
stock
from treasury
|
- | - | - | - | (72 | ) | 111 | 2,183 | - | - | 2,294 | |||||||||||||||||||||||||||||
Vesting
of stock based compensation
|
- | - | - | - | - | - | 218 | - | - | 218 | ||||||||||||||||||||||||||||||
Net
income for fiscal 2009
|
- | - | - | - | - | - | - | 79,500 | - | 79,500 | ||||||||||||||||||||||||||||||
Other
comprehensive gain (net of tax
$544)
|
- | - | - | - | - | - | - | - | 852 | 852 | ||||||||||||||||||||||||||||||
Total
comprehensive income
|
80,352 | |||||||||||||||||||||||||||||||||||||||
Balance
at May 30, 2009
|
35,130 | $ | 351 | 2,400 | $ | 24 | 13,741 | $ | (21,045 | ) | $ | 32,098 | $ | 320,623 | $ | - | $ | 332,051 |
*
|
For
Fiscal 2007, dividends paid at $.05 per common share. For Fiscal 2008,
dividends paid at $.05 per common share for the 1st
and 2nd
quarters, and for the 3rd
and subsequent quarter the dividend was determined from one third of net
income. For Fiscal 2009, dividends for the entire fiscal year were
determined from one third of net income. Class A shares were paid at 95%
of the common stock dividend rate. Effective October 2, 2008, the Class A
shares were paid at the same rate as the common
shares.
|
Fiscal year ended
|
||||||||||||
May 31
|
May 31
|
June 2
|
||||||||||
2009
|
2008
|
2007
|
||||||||||
Cash
flows from operating activities
|
||||||||||||
Net
income
|
$ | 79,500 | $ | 151,861 | $ | 36,656 | ||||||
Adjustments
to reconcile net income
|
||||||||||||
to
net cash provided by operating activities:
|
||||||||||||
Depreciation
and amortization
|
28,076 | 25,320 | 21,476 | |||||||||
Deferred
income taxes
|
11,035 | 3,659 | 1,205 | |||||||||
Equity
in income of affiliates
|
(2,612 | ) | (6,324 | ) | (1,699 | ) | ||||||
Gain
(loss) on disposal of property, plant and
|
||||||||||||
equipment
|
(10 | ) | (1,657 | ) | 38 | |||||||
Stock
compensation expense (benefit), net of amounts paid
|
(2,722 | ) | 4,531 | 1,650 | ||||||||
Interest
on purchase obligation
|
477 | 942 | 882 | |||||||||
Net
change in non-controlling interest in consolidated
entities
|
(728 | ) | (207 | ) | 975 | |||||||
Change
in operating assets and liabilities, net
|
||||||||||||
of
effects from acquisitions
|
||||||||||||
Receivables
and other assets
|
(3,580 | ) | (13,305 | ) | (8,097 | ) | ||||||
Inventories
|
(2,911 | ) | (14,558 | ) | 47 | |||||||
Accounts
payable, accrued expenses
|
||||||||||||
and
other liabilities
|
4,757 | 8,154 | 6,591 | |||||||||
Net
cash provided by operating activities
|
111,282 | 158,416 | 59,724 | |||||||||
Cash
flows from investing activities
|
||||||||||||
Purchases
of investments
|
(21,453 | ) | (122,825 | ) | (43,250 | ) | ||||||
Sales
of investments
|
15,388 | 120,175 | 28,750 | |||||||||
Acquisition
of businesses, net of cash acquired
|
(91,223 | ) | - | (12,053 | ) | |||||||
Payments
received on notes receivable and
|
||||||||||||
from
investments
|
1,674 | 1,199 | 1,453 | |||||||||
Purchases
of property, plant and equipment
|
(26,112 | ) | (31,686 | ) | (23,472 | ) | ||||||
Increase
in notes receivable and investments
|
(896 | ) | (668 | ) | (1,202 | ) | ||||||
Net
proceeds from disposal of property,
|
||||||||||||
plant
and equipment
|
128 | 2,470 | 503 | |||||||||
Net
cash used in investing activities
|
(122,494 | ) | (31,335 | ) | (49,271 | ) | ||||||
Cash
flows from financing activities
|
||||||||||||
Long-term
borrowings
|
55,661 | - | 29,500 | |||||||||
Principal
payments on long-term debt
|
(23,022 | ) | (15,702 | ) | (31,204 | ) | ||||||
Payment
of purchase obligation
|
(14,561 | ) | (12,529 | ) | (6,102 | ) | ||||||
Proceeds
from issuance of common stock from
|
||||||||||||
treasury
|
427 | 626 | 262 | |||||||||
Payments
of dividends
|
(35,268 | ) | (19,650 | ) | (1,172 | ) | ||||||
Net
cash used in financing activities
|
(16,763 | ) | (47,255 | ) | (8,716 | ) | ||||||
Increase
(decrease) in cash and cash equivalents
|
(27,975 | ) | 79,826 | 1,737 | ||||||||
Cash
and cash equivalents at beginning of year
|
94,858 | 15,032 | 13,295 | |||||||||
Cash
and cash equivalents at end of year
|
$ | 66,883 | $ | 94,858 | $ | 15,032 | ||||||
Supplemental
cash flow information:
|
||||||||||||
Cash
paid during the year for:
|
||||||||||||
Income
taxes
|
$ | 44,327 | $ | 82,223 | $ | 15,679 | ||||||
Interest
(net of amount capitalized)
|
6,164 | 7,302 | 6,426 |
May 30, 2009
|
May 31, 2008
|
|||||||
Current
assets
|
||||||||
Cash
|
$ | 763 | $ | 406 | ||||
Receivables
|
||||||||
Trade
receivables, less allowance for doubtful accounts of $18 and $24,
respectively
|
892 | 1,532 | ||||||
Inventories
|
347 | 269 | ||||||
Prepaid
expenses and other current assets
|
107 | 154 | ||||||
Total
current assets
|
2,109 | 2,361 | ||||||
Other
long-lived assets
|
489 | 236 | ||||||
Property,
plant and equipment, less accumulated depreciation
|
174 | 254 | ||||||
Total
assets
|
$ | 2,772 | $ | 2,851 | ||||
Current
liabilities
|
||||||||
Accounts
payable
|
$ | 786 | $ | 1,004 | ||||
Accrued
expenses
|
34 | 57 | ||||||
Total
current liabilities
|
820 | 1,061 | ||||||
Total
liabilities
|
820 | 1061 | ||||||
Net
assets
|
$ | 1,952 | $ | 1,791 |
·
|
Persuasive
evidence of an arrangement exists;
|
|
·
|
Delivery
has occurred;
|
·
|
The
fee for the arrangement is determinable; and
|
|
·
|
Collectability
is reasonably assured.
|
May 30, 2009
|
May 31, 2008
|
June 2, 2007
|
||||||||||
Net
income
|
$ | 79,500 | $ | 151,861 | $ | 36,656 | ||||||
Basic
weighted-average common shares
|
23,769 | 23,677 | 23,526 | |||||||||
Effect
of dilutive securities:
|
||||||||||||
Common
stock options
|
42 | 56 | 73 | |||||||||
Dilutive
potential common shares
|
23,811 | 23,733 | 23,599 | |||||||||
Net
income per common share:
|
||||||||||||
Basic
|
$ | 3.34 | $ | 6.41 | $ | 1.56 | ||||||
Diluted
|
$ | 3.34 | $ | 6.40 | $ | 1.55 |
•
|
Level
1 - Quoted prices in active markets for identical assets or
liabilities.
|
•
|
Level
2 - Quoted prices in active markets for similar assets or liabilities,
quoted prices in markets that are not active, or inputs other than quoted
prices that are observable for the asset or
liability.
|
•
|
Level
3 - Unobservable inputs for the asset or
liability.
|
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 |
Accounts
receivable
|
$ | 2,610 | ||
Inventories
|
5,886 | |||
Other
investments
|
1,532 | |||
Property,
plant, and equipment
|
12,375 | |||
Intangible
assets
|
5,300 | |||
Goodwill
|
1,876 | |||
Total
asset acquired
|
29,579 | |||
Total
liabilities assumed
|
- | |||
Net
assets acquired
|
$ | 29,579 |
Inventories
|
$ | 11,971 | ||
Prepaid
expenses
|
350 | |||
Other
investments
|
901 | |||
Property,
plant, and equipment
|
33,222 | |||
Intangible
assets
|
10,600 | |||
Goodwill
|
4,600 | |||
Total
asset acquired
|
61,644 | |||
Total
liabilities assumed
|
- | |||
Net
assets acquired
|
$ | 61,644 |
May
30, 2009
|
May
31, 2008
|
|||||||
Net
sales
|
$ | 992,054 | $ | 1,157,285 | ||||
Net
income
|
81,301 | 175,298 | ||||||
Net
income per share – basic
|
3.42 | 7.40 | ||||||
Net
income per share - diluted
|
3.41 | 7.39 |
May
30 2009
|
May
31 2008
|
|||||||
Flocks
|
$ | 64,040 | $ | 49,176 | ||||
Eggs
|
6,880 | 5,095 | ||||||
Feed
and supplies
|
26,615 | 22,495 | ||||||
$ | 97,535 | $ | 76,766 |
May
30, 2009
|
May
31, 2008
|
|||||||
Refundable
income taxes
|
$ | 16,065 | $ | 2,292 | ||||
Prepaid
insurance
|
660 | 1,843 | ||||||
Other
prepaid expenses
|
459 | 404 | ||||||
Other
current assets
|
290 | 172 | ||||||
$ | 17,474 | $ | 4,711 |
Other Intangibles
|
||||||||||||||||||||
Goodwill
|
Franchise
rights
|
Customer
relationships
|
Non-compete
agreements
|
Total
|
||||||||||||||||
Balance
June 2, 2007
|
$ | 4,195 | $ | 354 | $ | - | $ | - | $ | 4,549 | ||||||||||
Additions
|
9,257 | - | - | - | 9,257 | |||||||||||||||
Amortization
|
- | (52 | ) | - | - | (52 | ) | |||||||||||||
Balance
May 31, 2008
|
13,452 | 302 | - | - | 13,754 | |||||||||||||||
Additions
|
9,003 | 3,979 | 10,900 | 1,500 | 25,382 | |||||||||||||||
Amortization
|
- | (367 | ) | (796 | ) | (462 | ) | (1,625 | ) | |||||||||||
Balance
May 30, 2009
|
$ | 22,455 | $ | 3,914 | $ | 10,104 | $ | 1,038 | $ | 37,511 |
May 30, 2009
|
May 31, 2008
|
|||||||||||||||
Gross carrying
amount
|
Accumulated
amortization
|
Gross carrying
amount
|
Accumulated
amortization
|
|||||||||||||
Amortized
intangible assets:
|
||||||||||||||||
Franchise
rights
|
$ | 5,284 | $ | (1,370 | ) | $ | 1,305 | $ | (1,003 | ) | ||||||
Customer
relationships
|
10,900 | (796 | ) | - | - | |||||||||||
Non-compete
agreements
|
1,500 | (462 | ) | - | - | |||||||||||
Total
|
$ | 17,684 | $ | (2,628 | ) | $ | 1,305 | $ | (1,003 | ) |
For
fiscal period
|
Estimated
amortization expense
|
|||
2010
|
$ | 2,383 | ||
2011
|
2,383 | |||
2012
|
1,922 | |||
2013
|
1,883 | |||
2014
|
1,883 | |||
Thereafter
|
4,602 | |||
Total
|
$ | 15,056 |
May
30
|
May
31
|
|||||||
2009
|
2008
|
|||||||
Land
and improvements
|
$ | 57,277 | $ | 44,923 | ||||
Buildings
and improvements
|
196,339 | 167,312 | ||||||
Machinery
and equipment
|
220,170 | 183,155 | ||||||
Construction-in-progress
|
5,541 | 14,936 | ||||||
479,327 | 410,326 | |||||||
Less:
accumulated depreciation
|
229,369 | 203,833 | ||||||
$ | 249,958 | $ | 206,493 |
2010
|
$ | 2,659 | ||
2011
|
1,718 | |||
2012
|
1,165 | |||
2013
|
977 | |||
2014
|
449 | |||
Thereafter
|
1,022 | |||
Total
minimum lease payments
|
$ | 7,990 |
May
30
|
May
31
|
|||||||
2009
|
2008
|
|||||||
Line
of credit at no net cost, due in its entirety in 2011
|
$ | 25,161 | $ | - | ||||
Note
payable at 5.99%, due in monthly principal installments of $150, plus
interest, maturing in 2021
|
23,500 | 25,300 | ||||||
Series
A Senior Secured Notes at 5.45%, due in monthly installments of $176, plus
interest, beginning in January 2009 through 2018
|
18,947 | - | ||||||
Note
payable at 6.35%, due in monthly principal installments of $100, plus
interest, maturing in 2017
|
17,500 | 18,700 | ||||||
Note
payable at 8.26%, due in monthly installments of $155, including interest,
maturing in 2015
|
12,242 | 13,057 | ||||||
Note
payable at 6.80%, due in monthly principal installments of $165, plus
interest, maturing in 2014
|
9,110 | 11,090 | ||||||
Note
payable at 6.40%, due in monthly principal installments of $35, plus
interest, maturing in 2018
|
5,660 | 6,080 | ||||||
Note
payable at 7.06%, due in monthly installments of $53, including interest,
maturing in 2015
|
4,325 | 4,641 | ||||||
Note
payable at 6.87%, due in monthly installments of $45, including interest,
maturing in 2015
|
3,678 | 3,950 | ||||||
Industrial
revenue bonds at 6.10%, due in monthly installments of $146, including
interest, maturing in 2011
|
3,024 | 4,537 | ||||||
Note
payable at 6.07%, due in monthly principal installments of $33, plus
interest, maturing in 2015
|
2,168 | 2,567 | ||||||
Series
B Senior Secured Notes at 7.18%, due in annual principal installments of
$2,143 through 2009 with interest due semi-annually
|
2,143 | 4,286 | ||||||
Note
payable at 5.80%, due in annual principal installments of $250 through
2015 with interest due quarterly
|
1,500 | 1,750 | ||||||
Note
payable at 7.5%, due in monthly installments of $36, including interest,
maturing in 2012
|
831 | 1,187 | ||||||
Other
|
- | 5 | ||||||
129,789 | 97,150 | |||||||
Less
current maturities
|
13,806 | 11,470 | ||||||
$ | 115,983 | $ | 85,680 |
2010
|
$ | 13,806 | ||
2011
|
36,784 | |||
2012
|
9,960 | |||
2013
|
10,066 | |||
2014
|
9,430 | |||
Thereafter
|
49,743 | |||
$ | 129,789 |
Weighted
|
||||||||||||
Weighted
|
Average
|
|||||||||||
Number
|
Exercise
|
Remaining
|
Aggregate
|
|||||||||
of
|
Price
|
Contractual
|
Intrinsic
|
|||||||||
Options
|
Per Share
|
Life (in Years)
|
Value
|
|||||||||
Outstanding,
June 3, 2006
|
473,400 | $ | 4.97 | |||||||||
Granted
|
- | - | ||||||||||
Exercised
|
89,800 | 2.92 | ||||||||||
Forfeited
|
- | - | ||||||||||
Outstanding,
June 2, 2007
|
383,600 | 5.45 | ||||||||||
Granted
|
- | - | ||||||||||
Exercised
|
124,400 | 5.04 | ||||||||||
Forfeited
|
- | - | ||||||||||
Outstanding,
May 31, 2008
|
259,200 | 5.65 | ||||||||||
Granted
|
- | - | ||||||||||
Exercised
|
72,000 | 5.93 | ||||||||||
Forfeited
|
- | - | ||||||||||
Outstanding,
May 30, 2009
|
187,200 | $ | 5.54 |
5.98
|
$ |
3,525
|
||||||
Exercisable,
May 30, 2009
|
43,200 | $ | 4.24 |
5.19
|
$ |
870
|
Weighted
|
||||||||||
Weighted
|
Average
|
|||||||||
Number
|
Average
|
Remaining
|
Aggregate
|
|||||||
of
|
Strike Price
|
Contractual
|
Intrinsic
|
|||||||
Rights
|
Per
Share
|
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
|
||||||||
Granted
|
-
|
-
|
||||||||
Exercised
|
135,100
|
5.83
|
||||||||
Forfeited
|
6,000
|
5.83
|
||||||||
Outstanding,
May 31, 2008
|
351,350
|
5.99
|
||||||||
Granted
|
-
|
-
|
||||||||
Exercised
|
87,100
|
5.97
|
||||||||
Forfeited
|
-
|
-
|
||||||||
Outstanding,
May 30, 2009
|
264,250
|
$
|
6.00
|
6.26
|
$
|
4,854
|
||||
Exercisable,
May 30, 2009
|
48,250
|
$
|
5.99
|
6.28
|
$
|
887
|
May
30, 2009
|
May
31, 2008
|
June
2, 2007
|
||||||||||
Risk-free
interest rate
|
0.9 | % | 2.9 | % | 4.9 | % | ||||||
Dividend
yield
|
1.0 | % | 1.0 | % | 1.0 | % | ||||||
Volatility
factor of the expected market price of our stock
|
56.6 | % | 35.8 | % | 34.9 | % | ||||||
Weighted-average
expected life of the rights
|
2.5
years
|
3.5
years
|
4.5
years
|
Fiscal
year ended
|
||||||||||||
May
30
|
May
31
|
June
2
|
||||||||||
2009
|
2008
|
2007
|
||||||||||
Current:
|
||||||||||||
Federal
|
$ | 28,335 | $ | 63,406 | $ | 16,730 | ||||||
State
|
2,140 | 12,465 | 1,670 | |||||||||
30,475 | 75,871 | 18,400 | ||||||||||
Deferred:
|
||||||||||||
Federal
|
9,295 | 2,779 | 675 | |||||||||
State
|
1,740 | 880 | 530 | |||||||||
11,035 | 3,659 | 1,205 | ||||||||||
$ | 41,510 | $ | 79,530 | $ | 19,605 |
May
30
|
May
31
|
|||||||
2009
|
2008
|
|||||||
Deferred
tax liabilities:
|
||||||||
Property,
plant and equipment
|
$ | 25,060 | $ | 19,082 | ||||
Cash
basis temporary differences
|
1,471 | 1,634 | ||||||
Inventories
|
23,425 | 17,403 | ||||||
Investment
in affiliates
|
2,405 | 2,787 | ||||||
Other
|
1,160 | 1,142 | ||||||
Total
deferred tax liabilities
|
53,521 | 42,048 | ||||||
Deferred
tax assets:
|
||||||||
Accrued
expenses
|
4,316 | 5,254 | ||||||
Discount
on acquisition purchase price
|
1,398 | 1,212 | ||||||
Other
|
1,537 | 891 | ||||||
Total
deferred tax assets
|
7,251 | 7,357 | ||||||
Net
deferred tax liabilities
|
$ | 46,270 | $ | 34,691 |
Fiscal
year end
|
||||||||||||
May
30
|
May
31
|
June
2
|
||||||||||
2009
|
2008
|
2007
|
||||||||||
Statutory
federal income tax
|
$ | 42,353 | $ | 80,287 | $ | 19,598 | ||||||
State
income taxes net
|
2,522 | 8,675 | 1,430 | |||||||||
Domestic
manufacturers deduction
|
(1,819 | ) | (4,115 | ) | (526 | ) | ||||||
Non-taxable Hillandale,
LLC income
|
(1,152 | ) | (5,022 | ) | (449 | ) | ||||||
Tax
exempt interest income
|
(557 | ) | (872 | ) | (278 | ) | ||||||
Other,
net
|
163 | 577 | (170 | ) | ||||||||
$ | 41,510 | $ | 79,530 | $ | 19,605 |
Fiscal
Year 2009
|
||||||||||||||||
First
|
Second
|
Third
|
Fourth
|
|||||||||||||
Quarter
|
Quarter
|
Quarter
|
Quarter
|
|||||||||||||
Net
sales
|
$ | 206,888 | $ | 238,314 | $ | 270,009 | $ | 213,601 | ||||||||
Gross
profit
|
40,647 | 58,016 | 68,157 | 37,907 | ||||||||||||
Net
income
|
11,147 | 27,244 | 30,843 | 10,266 | ||||||||||||
Net
income per share:
|
||||||||||||||||
Basic
|
$ | 0.47 | $ | 1.15 | $ | 1.30 | $ | 0.43 | ||||||||
Diluted
|
$ | 0.47 | $ | 1.14 | $ | 1.29 | $ | 0.43 | ||||||||
Fiscal
Year 2008
|
||||||||||||||||
First
|
Second
|
Third
|
Fourth
|
|||||||||||||
Quarter
|
Quarter
|
Quarter
|
Quarter
|
|||||||||||||
Net
sales
|
$ | 178,598 | $ | 223,696 | $ | 278,017 | $ | 235,628 | ||||||||
Gross
profit
|
45,580 | 76,032 | 104,902 | 72,042 | ||||||||||||
Net
income
|
17,966 | 40,154 | 57,183 | 36,558 | ||||||||||||
Net
income per share:
|
||||||||||||||||
Basic
|
$ | .76 | $ | 1.70 | $ | 2.41 | $ | 1.54 | ||||||||
Diluted
|
$ | .76 | $ | 1.69 | $ | 2.41 | $ | 1.54 |
15.
|
Description
of Rights and Privileges of Capital Stock—Capital Structure Consists of
Common Stock
|
|
•
|
Level
1 - Quoted prices in active markets for identical assets or
liabilities.
|
|
•
|
Level
2 - Quoted prices in active markets for similar assets or liabilities,
quoted prices in markets that are not active, or inputs other than quoted
prices that are observable for the asset or
liability.
|
|
•
|
Level
3 - Unobservable inputs for the asset or liability that are supported by
little or no market activity and that are significant to the fair value of
the assets or liabilities.
|
Fair Value Measurements at Reporting Date Using
|
||||||||||||||||
Quoted Prices
|
||||||||||||||||
in Active
|
Significant
|
|||||||||||||||
Markets for
|
Other
|
Significant
|
||||||||||||||
Identical
|
Observable
|
Unobservable
|
||||||||||||||
Instruments
|
Inputs
|
Inputs
|
Total
|
|||||||||||||
(In thousands)
|
(Level 1)
|
(Level 2)
|
(Level 3)
|
Balance
|
||||||||||||
Investment
securities available-for-sale
(Current)
|
$ | - | $ | 15,165 | $ | - | $ | 15,165 | ||||||||
Investment
securities trading
(Non -Current)
|
- | - | 33,150 | 33,150 | ||||||||||||
Total
assets measured at fair value
|
$ | - | $ | 15,165 | $ | 33,150 | $ | 48,315 |
Investment securities
(Non-Current)
|
||||||||
(Auction Rate Securities)
|
Total
|
|||||||
Beginning
balance
|
$ | 40,754 | $ | 40,754 | ||||
Total
gains – (realized/unrealized)
|
||||||||
Included
in earnings (or changes in net assets), net
|
544 | 544 | ||||||
Included
in other comprehensive income, net
|
852 | 852 | ||||||
Purchases,
issuances, and settlements
|
(9,000 | ) | (9,000 | ) | ||||
Transfers
in and/or out of Level 3
|
- | - | ||||||
-
|
||||||||
Ending
balance
|
$ | 33,150 | $ | 33,150 |
Other Income
|
||||
Total
gains included in earnings (or changes in net assets) for
the period ended May 30, 2009
|
$ | 544 | ||
Change
in unrealized gains relating to
assets still held at May 30, 2009
|
$ | 852 |
Balance at
|
Balance at
|
||||||||||||||||
Beginning of
|
Charged to
|
Write-off
|
End of
|
||||||||||||||
Description
|
Period
|
Cost and Expense
|
of Accounts
|
Period
|
|||||||||||||
Year ended May 30,
2009:
|
|||||||||||||||||
Allowance for doubtful
accounts
|
$ | 313 | $ | 563 | $ | 482 | $ | 394 | |||||||||
Year ended May 31,
2008:
|
|||||||||||||||||
Allowance for doubtful
accounts
|
$ | 150 | $ | 394 | $ | 231 | $ | 313 | |||||||||
Year ended June 2,
2007:
|
|||||||||||||||||
Allowance for doubtful
accounts
|
$ | 346 | $ | 612 | $ | 808 | $ | 150 |
ITEM 12.
|
SECURITY OWNERSHIP OF
CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED
STOCKHOLDER MATTERS
|
(a)(1)
|
Financial
Statements
|
Reports
of Independent Registered Public Accounting Firms.
|
36
|
|
Consolidated
Balance Sheets – May 30, 2009 and May 31, 2008.
|
37
|
|
Consolidated
Statements of Income – Fiscal Years Ended May 30, 2009, May 31, 2008 and
June 2, 2007.
|
38
|
|
Consolidated
Statements of Changes in Shareholders' Equity for the Fiscal Years Ended
May 30, 2009, May 31, 2008 and June 2, 2007.
|
39
|
|
Consolidated
Statements of Cash Flows for the Fiscal Years Ended May 30, 2009, May 31,
2008 and June 2, 2007.
|
40
|
|
Notes
to Consolidated Financial Statements.
|
41
|
(a)(2)
|
Financial Statement
Schedule
|
Schedule
II – Valuation and Qualifying Accounts
|
74
|
(a)(3)
|
Exhibits Required by
Item 601 of Regulation S-K
|
(b)
|
Exhibits Required by
Item 601 of Regulation S-K
|
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. (16)
|
|
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)
|
10.1(i)
|
Eleventh
Amendment to Second Amendment and Restated Revolving Credit Agreement,
dated as of November 30, 2007, among Cal-Maine Foods, Inc. and (as defined
herein) First South, Rabobank and Harris (without exhibits, schedules, or
annex). (17)
|
10.1(j)
|
Twelfth
Amendment to Second Amendment and Restated Revolving Credit Agreement,
dated as of January 30, 2008, among Cal-Maine Foods, Inc. and (as defined
herein) First South, Rabobank and Harris (without exhibits, schedules, or
annex).
|
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)
|
10.11(c)
|
Fifth
Amendment and Waiver Agreement dated as of May 30, 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).
|
10.11(d)
|
Sixth
Amendment Agreement, dated as of January 30, 2008, among Cal-Maine Foods,
Inc. and John Hancock Life Insurance Company and John Hancock Variable
Life Insurance Company (without exhibits, schedules or annex).
(18)
|
10.11(e)
|
Seventh
Amendment Agreement, dated as of May 15, 2008, among Cal-Maine Foods, Inc.
and John Hancock Life Insurance Company and John Hancock Variable Life
Insurance Company (without exhibits, schedules or
annex).
|
10.12
|
1999
Stock Option Plan (6)+
|
10.13
|
2005
Stock Option Plan (10)+
|
10.14
|
2005
Stock Appreciation Rights Plan (11)+
|
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)
|
21
|
Subsidiaries
of the Registrant
|
23
|
Consent
of FROST, PLLC
|
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.
|
|
(16)
|
Incorporated
by reference to the same exhibit in Registrant’s Form 8-K, dated August
13, 2007.
|
|
(17)
|
Incorporated
by reference to the same exhibit in Registrant’s Form 10-Q for the quarter
ended December 1, 2007
|
|
(18)
|
Incorporated
by reference to the same exhibit in Registrant’s Form 10-Q for the quarter
ended March 1,
2008
|
|
(c)
|
Financial Statement
Schedules Required by Regulation
S-X
|
/s/ Fred R. Adams, Jr.
|
|
Fred
R. Adams, Jr.
|
|
Chairman
of the Board and
|
|
Chief
Executive Officer
|
Signature
|
Title
|
Date
|
||
/s/ Fred R. Adams, Jr.
|
Chairman
of the Board and
|
August
11, 2009
|
||
Fred
R. Adams, Jr.
|
Chief
Executive Officer
|
|||
(Principal
Executive Officer)
|
||||
/s/ Richard K.
Looper
|
Vice
Chairman of the Board
|
August
11, 2009
|
||
Richard
K. Looper
|
and
Director
|
|||
/s/ Adolphus B.
Baker
|
President
and Director
|
August
11, 2009
|
||
Adolphus
B. Baker
|
||||
/s/ Timothy A.
Dawson
|
Vice
President, Chief Financial
|
August
11, 2009
|
||
Timothy
A. Dawson
|
Officer
and Director
|
|||
(Principal
Financial Officer)
|
||||
/s/ Charles F.
Collins
|
Vice
President, Controller
|
August
11, 2009
|
||
Charles
F. Collins
|
(Principal
Accounting Officer)
|
|||
/s/ Letitia C.
Hughes
|
Director
|
August
11, 2009
|
||
Letitia
C. Hughes
|
||||
Director
|
___________
|
|||
R.
Faser Triplett
|
||||
/s/ James E.
Poole
|
Director
|
August
11, 2009
|
||
James
E. Poole
|
||||
/s/ Steve W.
Sanders
|
Director
|
August
11, 2009
|
||
Steve
W. Sanders
|
|
|
Exhibit
|
||
Number
|
Exhibit
|
|
21
|
Subsidiaries
of Cal-Maine Foods, Inc
|
|
23
|
Consent
of FROST, PLLC
|
|
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
|