Cagle's Inc. Announces Results for First Quarter Ended June 27, 2009

ATLANTA, Aug. 4  /PRNewswire-FirstCall/ -- Cagle's Inc. (AMEX:CGL.A) reported net income of $1.3 million or $0.28 per share for the first quarter of fiscal year 2010 compared to a net loss of $3.0 million or $0.64 per share for the first quarter of fiscal 2009.

Revenues for the first quarter were $78.0 million up 1.4% reflecting a decrease in pounds sold of 4.4% and an increase in revenue per pound of poultry sold of $0.049 as compared for the same period of fiscal 2009. Quoted market prices for products for the first quarter of fiscal 2010 versus the same period last year fluctuated as boneless breast increased 1%, breast tenders increased 11%, wings increased 39%, drums decreased 8%, leg quarters were 4% lower and whole birds without giblets were the same.

Cost of sales for the first quarter of fiscal 2010 decreased 7.6% as compared with the same period last year, from $77.6 million to $71.7 million. Feed ingredient prices for broilers processed in the first quarter of 2010, which represented 30% of the total cost of sales, decreased 28% as compared to the first quarter of 2009.

USDA reported corn acres planted as the second largest since 1946 and soybean acres planted as a record high. Good crop weather patterns as well as reductions in live poultry, cattle and hog inventories, which have traditionally accounted for 33%, 26% and 26% of total feed use, respectively, have resulted in declines in feed ingredient prices.

While markets for our poultry products are impacted by the overall economy chicken continues to offer an excellent value to the consumer and as a result we are optimistic that, with the continued reduction in the cost of feed, we will maintain positive margins for the remainder of this calendar year.

  Cagle's Inc.

  /s/ J. Douglas Cagle

  J. Douglas Cagle
  Chairman, CEO


  Forward-Looking Statements:


Statements contained in this press release that state the intentions, hopes, beliefs, anticipations, expectations or predictions of the future of Cagle's Inc. and its management are forward looking statements. It is important to note that the actual results could differ materially from those projected. Factors that could cause actual results to differ materially from those project in such forward-looking statements include: additional outbreaks of avian influenza or other diseases affecting the production performance and/or marketability of the Company's poultry products; matters affecting the poultry industry in general, including fluctuations in the commodity prices of feed ingredients and chicken; contamination of our products leading to product liability claims and recalls; exposures to risks related to property damage and injuries to persons for which insurance is limited and potentially inadequate; management of our cash resources, particularly in light of our substantial leverage; trade barriers; changes in laws or regulations affecting our operations as well as competitive factors and pricing pressures; and the impact of uncertainties of litigations as well as other risk factors.

                                  Cagle's Inc.
                       Condensed Consolidated Balance Sheet
                                 (In Thousands)

  ASSETS                            June 27, 2009            March 28, 2009
  ------                            -------------            --------------

  Current Assets                          $45,468                   $42,798

  Other Assets                             10,470                    11,571

  Property, Plant, and
   Equipment (net)                         36,058                    36,783

  TOTAL ASSETS                            $91,996                   $91,152
                                          -------                   -------


  LIABILITIES &
   STOCKHOLDERS' EQUITY
  ---------------------

  Current Maturities of
   Long-term Debt                          $2,531                    $2,488
  Trade Accounts Payable                   20,782                    19,989
  Other Current Liabilities                 7,876                     7,642
                                            -----                     -----
  Total Current Liabilities                31,189                    30,119

  Long-Term Debt                           27,301                    29,049

  Total Stockholders'
   Equity                                  33,506                    31,984

  TOTAL LIABILITIES &
   STOCKHOLDERS' EQUITY                   $91,996                   $91,152
                                          -------                   -------



                          Cagle's, Inc. & Subsidiary
                       Consolidated Statements of Income
                     (In Thousands, except per share data)

                                       Three Months Ended
                                   June 27,          June 28,
                                     2009              2008
                                   -------           -------

  Net Sales                        $78,015           $76,921
  Costs and Expenses:              -------           -------
  Cost of Sales                     71,708            77,577
  Selling and Delivery               2,197             2,332
  General and
   Administrative                    1,665             1,192
                                   -------           -------
  Total Costs and Expenses          75,570            81,101

  Operating Income (Loss)            2,445            (4,180)

  Other Income (Expense):
  Interest Expense                    (442)             (489)
  Other Income (Expense),
   Net                                   2               (12)
                                   -------           -------
  Total Other Income
   (Expense), Net                     (440)             (501)


  Income (Loss) Before
   Income Taxes                      2,005            (4,681)

  Income Tax Expense
   (Benefit)                           722            (1,685)
                                   -------           -------

  Net Income (Loss)                 $1,283           $(2,996)
                                   =======           =======

  Net Income (Loss) Per
   Common Share                      $0.28            $(0.64)
                                   =======           =======


DATASOURCE: Cagle's Inc.



CONTACT:  Harry Woodring, [phone]



Web Site:  http://www.cagles.net/ 

Copyright