Sanderson Farms, Inc. Reports Results for Fourth Quarter and Fiscal 2016
Net sales for the fourth quarter of fiscal 2016 were
Net sales for fiscal 2016 were
"The fourth quarter marked the end of another successful year for
According to Sanderson, despite lower prices for the full fiscal year,
overall market prices for poultry products were higher in the fourth
quarter of fiscal 2016 compared with prices a year ago, primarily as a
result of improved export demand. As measured by an average of the
"We are pleased that our profitability during fiscal 2016 allowed us
to fund our planned expansion in
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
(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
(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
(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
Condensed Consolidated Statements of Operations
|(In thousands, except per share amounts)|
Three Months Ended
Twelve Months Ended
|Costs and expenses:|
|Cost of sales||630,156||595,839||2,362,056||2,312,368|
|Selling, general and administrative||44,992||40,167||159,890||155,114|
|Other income (expense):|
|Income before income taxes||115,412||43,231||292,677||334,091|
|Income tax expense||39,450||15,860||103,716||118,090|
|Basic earnings per share||$||3.36||$||1.22||$||8.37||$||9.52|
|Diluted earnings per share||$||3.36||$||1.22||$||8.37||$||9.52|
|Dividends per share||$||1.24||$||0.72||$||1.90||$||1.38|
(1)The Condensed Consolidated Statements of Operations for
the twelve months ended
Condensed Consolidated Balance Sheets
|Cash and cash equivalents||$||234,111||$||196,659|
|Accounts receivable, net||124,348||112,924|
|Refundable income taxes||---||16,414|
|Total current assets||613,324||558,081|
|Property, plant and equipment||1,505,596||1,318,530|
|Less accumulated depreciation||(701,605||)||(636,196||)|
|LIABILITIES AND STOCKHOLDERS' EQUITY|
|Accrued income taxes||17,497||---|
|Current maturities of long-term debt||---||10,000|
|Total current liabilities||148,189||161,247|
|Claims payable and other liabilities||8,501||8,119|
|Deferred income taxes||75,748||47,525|
|Total stockholders' equity||1,190,262||1,029,861|
|Total liability and stockholders' equity||$||1,422,700||$||1,246,752|
(1)The Condensed Consolidated Balance Sheets at
Treasurer & Chief Financial Officer
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