Cal-Maine Foods, Inc. (NASDAQ:CALM) dove on reporting quarterly earnings.
The food merchant, based in Jackson, Miss., revealed Monday that net sales for the first quarter of fiscal 2020 were $241.2 million, a 29.2% decrease, compared to $340.6 million for the first quarter of fiscal 2018.
The company reported net loss of $45.8 million, or ($0.94) per basic and diluted share, for the first quarter of fiscal 2020, compared to net income of $12.4 million, or $0.26 per basic and diluted share, for the first quarter of fiscal 2019.
Monday’s news release also told investors that results for the first quarter of fiscal 2020 include a non-cash impairment charge of $2.9 million related to decommissioning some older, less efficient production facilities as CALM continues to invest in new facilities to meet the increasing demand for specialty eggs and reduce its production costs.
CEO Dolph Baker said, "Our financial and operating results for the first quarter reflect the very challenging market conditions that prevailed throughout the summer. While our sales volumes were up 1.7% over the first quarter last year, the extreme drop in market prices adversely affected our results.
“The Southeast large market average price for conventional eggs dropped 40.7% for the first quarter of fiscal 2020 compared to the first quarter of fiscal 2019."
Cal-Maine is the largest producer and distributor of fresh shell eggs in the United States and sells the majority of its shell eggs in states across the southwestern, southeastern, mid-western and mid-Atlantic regions of the United States.
Shares slumped $5.07, or 11.2%, to $40.35
