Cagle's Inc. Announces Results for First Quarter Ended June 28, 2008

ATLANTA, Aug. 5 /PRNewswire-FirstCall/ -- Cagle's Inc. (Amex: CGL.A)
reported a loss of $3.0 million or $.64 per diluted share for the first
quarter of fiscal year 2009 compared with a profit of $1.5 million or $.33 per
diluted share for the first quarter of fiscal 2008.
Revenues for the first quarter were $76.9 million up 7.04% as a result of
13% additional pounds marketed compared to the first quarter of last year.
Overall revenue per pound for poultry products for the first quarter of fiscal
2009 was $.73 as compared to $.78 for the same period of fiscal 2008. Quoted
market prices for products for the first quarter of fiscal 2009 versus the
same period last year fluctuated as boneless breast decreased 12%, breast
tenders decreased 22%, wings decreased 26%, drums increased 9%, leg quarters
were 2% higher and whole birds without giblets decreased 2%.
Cost of sales for the first quarter of fiscal 2009 increased 18.1% as
compared with the same period last year, from $65.7 million to $77.6 million.
Feed ingredient prices for broilers processed in the first quarter of 2009,
which represented 39% of the total cost of sales, increased 43% as compared to
the first quarter of 2008.
High grain costs are expected to continue to negatively impact operating
margins for the third quarter as the company endeavors to increase pricing to
enable a return to profitability.
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 28, 2008 March 29, 2008

Current Assets $ 49,061 $ 46,420

Other Assets 6,520 6,294

Property, Plant, and Equipment (net) 38,912 39,260

TOTAL ASSETS $ 94,493 $ 91,974

LIABILITIES & STOCKHOLDER'S EQUITY

Current Maturities of Long-term Debt $ 2,346 $ 2,269

Trade Accounts Payable 18,924 16,025

Other Current Liabilities 7,112 7,929

Total Current Liabilities 28,382 26,223

Long-Term Debt 23,060 20,924

Total Stockholders Equity 43,051 44,827

TOTAL LIABILITIES & STOCKHOLDERS EQUITY $ 94,493 $ 91,974

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

Three Months Ended
June 28, June 30,
2008 2007

Net Sales $ 76,921 $ 71,862
Costs and Expenses:
Cost of Sales 77,577 65,660
Selling & Delivery and General & Administrative 2,332 3,486
General and Administrative 1,192 (28)
Other General Expenses 0 0
Total Costs and Expenses 81,101 69,118

Operating Income (Loss) (4,180) 2,744

Other Income (Expense):
Interest Expense (489) (368)
Other Income, Net (12) 23
Total Other Income (Expense), net (501) (345)

Income Before Income Taxes (4,681) 2,399

Income Taxes Provision (1,685) 863
Net Income $ (2,996) $ 1,536
Net Income Per Common Share $ (0.64) $ 0.33

SOURCE Cagle's Inc.

George Pitts, Cagle's Inc., +1-404-355-2820, Ext. 1200