Net sales for the first quarter of fiscal 2017 were
"Our results for the first quarter reflect improved market prices for
dark meat products sold from our big bird deboning plants compared with
last year's first quarter," said
According to Sanderson, overall market prices for poultry products were
higher during the first quarter compared with the same period last year.
Compared with the first fiscal quarter of 2016, the average whole bird
price used as the base of a portion of the Company's retail tray pack
pricing formulas was approximately 2.7 percent lower, boneless breast
meat prices were approximately 4.6 percent lower, the average market
price for bulk leg quarters increased by approximately 33.1 percent, and
jumbo wing prices were higher by 14.3 percent. The Company's average
feed cost per pound of poultry products processed decreased
"Record corn and soybean crops harvested in
"Operations at our new
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 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.
(14) Unfavorable results from currently pending litigation and proceedings, or litigation and proceedings that could arise in the future.
Readers are cautioned not to place undue reliance on forward-looking statements made by or on behalf of the Company. Each such statement speaks only as of the day it was made. The Company undertakes no obligation to update or to revise any forward-looking statements. The factors described above cannot be controlled by the Company. When used in this press release or in the related conference call, the words "believes," "estimates," "plans," "expects," "should," "could," "outlook," and "anticipates" and similar expressions as they relate to the Company or its management are intended to identify forward-looking statements. Examples of forward-looking statements include statements of the Company's belief about future earnings, grain prices, supply and demand factors, growth plans and other industry conditions.
|Condensed Consolidated Statements of Operations|
(In thousands, except per share amounts)
|Three Months Ended|
|Cost and expenses:|
|Cost of sales||606,391||555,061|
|Selling, general and administrative||46,070||30,294|
|Other income (expense):|
|Income before income taxes||35,650||19,383|
|Income tax expense||12,477||8,702|
|Earnings per share:|
|Dividends per share||$||0.24||$||0.22|
Condensed Consolidated Balance Sheets
|Cash and cash equivalents||$||225,821||$||234,111|
|Accounts receivable, net||115,633||124,348|
|Refundable income taxes||4,066||---|
|Prepaid expenses and other current assets||37,906||34,559|
|Total current assets||619,779||613,324|
|Property, plant and equipment||1,548,434||1,505,596|
|Less accumulated depreciation||(721,664||)||(701,605||)|
|Liabilities and stockholders' equity|
|Accrued income taxes||---||17,497|
|Total current liabilities||141,565||148,189|
|Claims payable and other liabilities||8,663||8,501|
|Deferred income taxes||87,675||75,748|
|Commitments and contingencies|
|Total stockholders' equity||1,213,635||1,190,262|
|Total liabilities and stockholders' equity||$||1,451,538||$||1,422,700|
(1) The Condensed Consolidated Balance Sheet at
Treasurer & Chief Financial Officer
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