CAL-MAINE FOODS INC

The following table sets

forth, for the periods

indicated, certain items from

our Condensed Consolidated Statements

of Income

expressed as a percentage of net sales.

Net sales

100.0

%

100.0

%

100.0

%

100.0

%

49.5

%

68.9

%

58.2

%

78.9

%

Gross profit

50.5

%

31.1

%

41.8

%

21.1

%

Selling, general and administrative

5.6

%

9.3

%

7.0

%

11.6

%

(Gain) loss on involuntary conversions

—

%

(1.4)

%

—

%

(0.6)

%

Operating income

44.9

%

23.2

%

34.8

%

10.1

%

Total other income, net

1.9

%

3.2

%

1.6

%

2.2

%

Income before income taxes

46.8

%

26.4

%

36.4

%

12.3

%

Income tax expense

10.9

%

5.5

%

8.7

%

2.6

%

35.9

%

20.9

%

27.7

%

9.7

%

Less: Loss attributable to noncontrolling

—

%

—

%

—

%

(0.1)

%

Net income attributable to Cal-Maine

35.9

%

20.9

%

27.7

%

9.8

%

NET SALES

Total

for the

2025 were

$1.4 billion

$703.1 million

for the

same period

represented 94.9% and 96.1%

of total net

sales for the

third quarters of fiscal

2025 and 2024,

The

shell

egg

offerings,

for

both

branded

and

private-label

products,

include

and

shell

eggs.

Specialty shell eggs include cage-free, organic, brown, free-range, pasture-raised and nutritionally enhanced eggs. Conventional

shell

eggs

sales

represent

all

other

shell

egg

sales

not

sold

as

shell

eggs.

The

egg

offerings

include liquid and frozen egg products and ready-to-eat products such as hard-cooked eggs, egg wraps, protein pancakes, crepes

and wrap-ups. Other sales represent feed sales, miscellaneous byproducts and resale products.

Total

for the

1, 2025

were $3.2

billion, compared

to $1.7

billion for

the comparable

period of fiscal 2024.

Shell egg

sales represented

94.7% and

95.4% of

total net

sales for

the thirty-nine

weeks ended

2025 and

March 2,

2024, respectively.

Index

The table below presents net sales in key categories (in thousands, except percentage data):

Shell Eggs

$

1,345,382

$

675,912

99.0

%

$

2,990,756

$

1,608,377

85.9

%

61,024

21,759

180.5

136,850

63,994

113.8

Other

11,279

5,405

108.7

30,621

13,283

130.5

Total net sales

$

$

703,076

101.6

%

$

$

87.4

%

The table below presents an analysis of our shell egg sales (in thousands, except percentage data):

$

1,016,438

75.6

%

$

413,619

61.2

%

$

2,118,065

70.8

%

$

919,498

57.2

%

328,944

24.4

262,293

38.8

%

872,691

29.2

688,879

42.8

Total shell egg sales

$

1,345,382

100.0

%

$

675,912

100.0

%

$

2,990,756

100.0

%

$

1,608,377

100.0

%

Dozens sold

213,247

64.3

%

192,182

63.9

%

622,833

64.1

%

566,174

65.7

%

118,148

35.7

108,597

36.1

348,385

35.9

295,904

34.3

Total dozens sold

331,395

100.0

%

300,779

100.0

%

971,218

100.0

%

862,078

100.0

%

Net average selling price per dozen

$

4.766

$

2.152

$

3.401

$

1.624

$

2.784

$

2.415

$

2.505

$

2.328

All shell eggs

$

4.060

$

2.247

$

3.079

$

1.866

In the

conventional egg sales

increased $602.8 million,

or 145.7%,

third

quarter

of

fiscal

2024,

due

to

a

121.5%

in

the

prices

for

eggs,

which

in

a

$557.4 million increase in net sales, and a 11.0%

increase in the volume of conventional eggs sold, which resulted in a

$45.3 million increase in net sales. Results for

the third quarter of 2025 were positively impacted

by our acquisition of

ISE during the

current fiscal year

as well as

the resumption of

full operations at

our facility in

Chase, KS, which

was

shut down in the prior year quarter due to an HPAI outbreak.

Specialty egg sales increased

$66.7 million, or 25.4%,

in the third quarter

of fiscal 2025 compared

to the third quarter

of

fiscal

2024,

due

to

a

15.3%

in

prices

for

eggs,

which

in

a

$43.6

million

in

net

sales

and

a

8.8%

in

the

volume

of

eggs

sold,

which

in

a

$23.1

million

increase in net sales.

See “Executive Overview” above for additional discussion.

For the thirty-nine weeks ended March 1, 2025,

conventional egg sales increased $1.2 billion, or 130.4%, compared to

the

same

period

of

fiscal

2024,

due

to

the

in

the

prices

for

shell

eggs.

Prices

for

eggs increased

109.4%, which

resulted in

a $1.1

billion increase

in net

sales. A

10.0% increase

in the

volume of conventional eggs sold resulted in a $92.0 million increase in net sales.

Specialty egg

sales increased

$183.8 million,

or 26.7%,

for the

1, 2025

the same period in

fiscal 2024, primarily due

to a 17.7% increase

in the volume of

specialty eggs sold, which

in a

$122.2 million

and a

7.6% increase

in prices

for specialty

eggs, which

resulted in

a $61.7

million increase in net sales.

Index

Egg products sales

Egg

sales

$39.3

or

180.5%,

for

the

third

quarter

of

fiscal

to

the

same

fiscal 2024,

to a

200.5% increase

in sales

of liquid

eggs, which

had a

$22.0 million

impact on net

sales, and

a 46.1% increase

in liquid eggs

pounds sold, which

$6.6 million increase

in net

sales. Results for the third quarter of 2025 were positively impacted by our

recent acquisition of ISE, which included a

breaking facility.

Sales from

hard-cooked eggs

increased $6.6

million or

181.5% in

fiscal

2024 as more processing capabilities are coming online from our investments in MeadowCreek.

Egg

sales

$72.9

or

113.8%,

due

to

a

118.0%

in

sales

of

liquid

eggs,

which

had

a

$31.6

million

impact

on

net

sales,

and

a

42.0%

in

liquid

eggs

pounds

sold,

which

resulted in a $17.4 million increase in net sales.

Sales from hard-cooked eggs increased $18.7

million, or 188.6%, in the

first three quarters of fiscal 2025

the same period in fiscal 2024, primarily for the reasons described above.

Other

Other

sales

to

the

prior

year

periods

due

to

higher

feed

sales

related

to

our

ISE

acquisition.

COST OF SALES

Cost of

sales consists

of costs

directly related

to producing,

packing shell

eggs, purchases

of shell

eggs from

outside

sources,

and

packing

of

egg

and

other

non-egg

costs. Farm

costs

are

those

costs

incurred

at

the

egg

facility,

feed,

(including

labor),

hen

amortization

and

other

related

farm

production costs.

The following table presents the key variables affecting our cost of sales (in thousands, except cost per dozen data):

%

Change

%

Change

Farm production

$

266,056

$

248,650

7.0

%

$

766,003

$

760,525

0.7

%

Processing, packaging,

and warehouse

101,631

86,423

17.6

292,165

253,096

15.4

Egg purchases and other

cost of sales

291,703

127,925

128.0

658,182

260,375

152.8

42,180

21,506

96.1

122,502

56,523

116.7

Total cost of sales

$

701,570

$

484,504

44.8

%

$

1,838,852

$

1,330,519

38.2

%

Farm production costs (per

dozen produced)

Feed

$

0.492

$

0.544

(9.6)

%

$

0.489

$

0.564

(13.3)

%

Other

$

0.418

$

0.421

(0.7)

%

$

0.420

$

0.431

(2.6)

%

Total farm production cost

$

0.910

$

0.965

(5.7)

%

$

0.909

$

0.995

(8.6)

%

Outside egg purchases

(average cost per dozen)

$

5.10

$

2.44

109.0

%

$

3.69

$

2.09

76.6

%

Dozens produced

293,087

259,527

12.9

%

847,962

774,984

9.4

%

Percent produced to sold

88.4%

86.3%

2.4

%

87.3%

89.9%

(2.9)

%

Index

Farm Production

Feed

costs

per

dozen

produced

decreased

9.6%

in

the

third

quarter

of

fiscal

to

the

third

quarter

of

fiscal 2024.

This decrease

was primarily

due to

lower prices

for soybean

meal, one

of our

primary feed

ingredients.

The decrease in feed cost per dozen resulted in a decrease in cost of sales of $15.2 million for the third quarter of fiscal

2025 compared to the prior period quarter.

For the

the average Chicago

Board of Trade

(“CBOT”) daily

market price was

$4.68 per

bushel

of

corn

and

$298

per

ton

of

soybean

meal,

representing

an

of

3.8%

and

a

decrease

of

19.3%,

respectively, as compared to the average CBOT daily market prices for the third quarter of fiscal 2024.

Other farm production

costs decreased primarily due

to lower flock

amortization. Feed costs reached

their peak in the

second quarter of

fiscal 2023 and

have since trended

downward. Lower costs

result in lower

capitalized values of

the

flocks during the grow out phase, which reduced amortization cost over time.

Feed costs per

dozen produced decreased

13.3% in the

thirty-nine weeks ended

same

fiscal 2024, primarily

due to

lower feed

ingredient prices. The

decrease in

feed cost

per dozen

decrease in cost of sales of $63.6 million compared to the prior year period.

For the

year-to-date period,

CBOT daily

market price

was $4.29

per bushel

of corn

and $316

per ton

of

soybean meal, representing decreases of

11.8%

and 21.5%, respectively,

compared to the average CBOT

daily market

prices for the comparable period in the prior year.

Other farm production costs decreased due to lower flock amortization, for the reasons described above.

Current

indications

for

corn

and

soybean

project

a

favorable

stocks-to-use

ratio

near

the

levels

prevailing

today

for

the

remainder of

fiscal 2025;

however,

as long

as outside

factors remain

uncertain (including

weather patterns

and global

supply

chain disruptions), volatility could remain.

Processing, packaging, and warehouse

Processing,

and

warehouse

costs

17.6%

to

the

third

quarter

of

fiscal

due

to

a

13.5% increase in the volume of processed dozens as well as an increase in costs of packaging materials.

Processing,

and

warehouse

costs

15.4%

to

the

first

three

of

fiscal

2025,

due

a

10.3%

in

the

volume

of

processed

dozens

as

well

as

an

in

costs

of

packaging

materials.

Egg purchases and other cost of sales

Costs in

this category

increased primarily due

prices as

cost per

dozen of

outside egg

purchases increased 109.0%

compared to third

quarter of fiscal

2024, as well

as due to

an increase of

8.8% in dozens

purchased.

Dozens

due

to

purchasing

more

eggs

to

supply

our

during

the

higher

seasonal demand cycle while the nation experienced lower supply due to HPAI.

Costs in

this category

increased primarily due

prices as

cost per

dozen of

outside egg

purchases increased

76.6% compared

to fiscal

2024, as

well as

an increase

of 46.2%

in dozens

purchased, primarily

for the reasons described above.

GROSS PROFIT

Gross profit for the thirteen weeks ended

March 1, 2025 was $716.1 million compared

to $218.6 million for the same period

of

2024. Gross

profit for

the thirty-nine

weeks ended

2025 was

$1.3 billion

$355.1 million

for the

same

2024. The

increases were

net average

selling prices,

particularly for

conventional eggs,

and

Index

higher

volumes,

as

well

as

lower

feed

ingredient

prices,

offset

by

the

in

volume

and

price

of

outside

egg

purchases.

SELLING, GENERAL, AND ADMINISTRATIVE EXPENSES

Selling,

general,

and

administrative

(“SGA”)

include

costs

of

delivery,

marketing,

and

other

general

and

administrative expenses. Delivery expense

includes contract trucking expense

and all costs to

maintain and operate our

fleet of

trucks to

deliver products

to customers

including the

related payroll

expenses. Marketing

expense includes

franchise fees

that

are

submitted

to

Eggland’s

Best,

Inc.

(“EB”)

to

support

the

EB

brand,

brokerage

and

commission

fees,

and

other

general

marketing expenses

such as

payroll expenses

for our

in-house sales

team. Other

general and

administrative expenses

include

corporate payroll

related expenses

general corporate

overhead costs.

The following

table presents

an analysis

of our

SGA expenses (in thousands):

$ Change

$

23,476

$

18,832

$

4,644

24.7

%

11,240

14,149

(2,909)

(20.6)

%

Other general and administrative

45,251

33,039

12,212

37.0

%

Total

$

79,967

$

66,020

$

13,947

21.1

%

The increased delivery expense is primarily due to an increase

in our sales volumes of egg and egg products

to

the

prior

year

period.

Contract

trucking

in

with

our

of

ISE

and

our

facility in

Chase, KS

being

fully

operational in

the

current fiscal

We

also obtained

some new

business and

additional shipping routes in order to meet our customers’ needs at their locations.

The decrease in marketing

expense is primarily due to

a decrease in franchise fees.

The higher prices for conventional

eggs compared to specialty eggs diminished the need to promote specialty eggs; as a result EB temporarily reduced the

related franchise fees for certain specialty egg brands to encourage continued production of these branded

eggs.

Other general and administrative expense

The

in

other

general

and

administrative

expense

is

due

both

to

an

in

the

accrual

for

anticipated employee bonuses

and to the

increased adjustment to

the fair value

of contingent consideration

associated

Fassio acquisition.

See further

discussion in

Note 4 – Fair Value Measurements

of the

Consolidated Financial Statements included in this Quarterly Report.

$ Change

$

68,206

$

54,229

$

13,977

25.8

%

40,666

38,809

1,857

4.8

%

Litigation loss contingency accrual

—

19,648

(19,648)

(100.0)

%

Other general and administrative

110,660

82,158

28,502

34.7

%

Total

$

219,532

$

194,844

$

24,688

12.7

%

Thirty-six weeks – Fiscal 2025 vs. Fiscal 2024

The increased delivery expense is primarily due to the reasons described above

Index

The increase

in marketing

expense is

to an

franchise fees

in the

first half

2025 as

egg

sales

increased,

offset

by

the

reduction

in

fees

in

the

third

quarter

of

fiscal

described

above.

Litigation loss contingency accrual

In the second quarter of fiscal 2024, we accrued a $19.6 million loss contingency relating to a jury decision returned in

pending

anti-trust

litigation.

See

further

discussion

in

Note 10 - Commitments and Contingencies

of

the

Notes

to

Condensed Consolidated Financial Statements included in this Quarterly Report.

Other general and administrative expense

The increase in other

general and administrative expense

is primarily for the

reasons described above, as

well as costs

associated with the acquisition of ISE assets that occurred during the first quarter of fiscal 2025.

GAIN ON INVOLUNTARY

CONVERSION

In the third quarter of fiscal 2024, we recorded a gain of $9.9 million due to recoveries under indemnity and insurance programs

that exceeded the amortized book value of the covered assets and our direct

costs, primarily related to the HPAI

outbreak at our

Kansas facility.

OPERATING

INCOME

For the

we recorded

operating income of

$635.7 million

operating income of

$162.8

million for the same period of fiscal 2024.

For the thirty-nine weeks ended March 1,

2025, we recorded operating income of $1.1 billion

compared to operating income of

$170.3 million for the same period of fiscal 2024.

OTHER INCOME (EXPENSE)

Total

other

income

(expense)

consists

of

items

not

charged

or

related

to

operations,

such

as

income

and

expense, equity in

income or loss of

unconsolidated entities, and patronage

dividends, among other

items. Patronage dividends

are paid to us from our membership in the EB cooperative.

For the third quarter of fiscal 2025, we

earned $12.8 million of interest income compared to $7.8 million for

the same period of

fiscal 2024, primarily due to higher average cash and cash

equivalents and investment securities available-for-sale balances and

yields. The Company recorded interest expense of $146 thousand and $247 thousand for the third quarters ended March 1, 2025

and March 2, 2024, respectively.

For the

thirty-nine weeks ended

March 1, 2025,

we earned $32.6

million of

interest income compared

to $22.4 million

for the

same period

2024, primarily due

average cash

and cash

equivalents and

investment securities

available-for-

sale balances and yields. The Company recorded interest expense of $457 thousand and $523 thousand for the thirty-nine weeks

ended March 1, 2025 and March 2, 2024, respectively.

INCOME TAXES

For the third quarter

of fiscal 2025, our

pre-tax income was $663.0

million, compared to $185.2 million

for the third quarter

of

fiscal 2024. Income tax expense of $154.9 million

was recorded for third quarter 2025 with

an effective tax rate of 23.4%.

This

includes the

benefit of

$5.7 million

the fiscal

2024 provision-to-return

adjustments. Excluding the

benefit, income

tax expense

was $160.8

million for

with an

adjusted effective

tax

rate

of

24.2%.

For

the

third

quarter

2024,

income

tax

expense

was

$38.8

million

with

an

tax

rate

of

21.0%.

This

includes the

benefit of

$6.4 million

the fiscal

2023 provision-to-return

adjustments. Excluding the

discrete tax benefit, income tax expense was $45.2 million with an adjusted effective tax rate of 24.4%.

For

the

weeks

ended

March

1,

2025,

pre-tax

income

was

$1.1

billion,

to

$208.0

million

for

the

same

period of fiscal

2024. Income tax

expense of $273.8

million was recorded

for the thirty-nine

weeks ended March

1, 2025 with

an effective tax rate of 23.8%. This includes the discrete tax benefit of $5.7 million associated with the fiscal 2024 provision-to-

return adjustments.

Excluding the

benefit, income

tax expense

was $279.5

million with

an adjusted

tax

rate of

24.3%. For

fiscal 2024,

expense was

$44.7 million

with an

effective tax

rate of

21.5%.

Index

This includes the discrete tax benefit

of $6.4 million associated with the

fiscal 2023 provision-to-return adjustments. Excluding

the discrete tax benefit, income tax expense was $51.0 million with an adjusted effective tax rate of 24.5%.

Items causing

our effective

tax rate

to differ

federal statutory

rate of

21% are

state income

taxes, certain

federal tax credits

and certain items included

in income or

loss for financial reporting

purposes that are

not included in taxable

income or loss

for income tax

purposes, including tax exempt

interest income, certain nondeductible

expenses, and net

income

or loss attributable to noncontrolling interest.

NET INCOME ATTRIBUTABLE

TO CAL-MAINE FOODS, INC.

Net income attributable

to Cal-Maine Foods,

Inc. for the

third quarter ended

was $508.5 million,

or $10.42 per

basic and $10.38 per diluted common share, compared to net income attributable to Cal-Maine Foods, Inc. of $146.7 million, or

$3.01 per basic and $3.00 per diluted common share, for the same period of fiscal 2024.

Net income attributable to Cal-Maine Foods, Inc. for the thirty-nine weeks ended March 1, 2025, was $877.6 million, or

$17.99

per

basic

and

$17.92

per

diluted

common

share,

to

net

income

attributable

to

Foods,

Inc.

of

$164.6

million or $3.38 per basic and $3.37 per diluted common share, for the same period of fiscal 2024.

LIQUIDITY AND CAPITAL RESOURCES

Working Capital and Current Ratio

Our working

capital was

$1.5 billion

at March

1, 2025

$1.0 billion

at June

1, 2024.

The calculation

of working

capital is defined as current

assets less current liabilities. Our current ratio

was 3.9 at March 1,

2025 compared to 5.5 at June

1,

2024. The

decrease in

our current

ratio is

to the

both income

taxes and

trade payables.

The current

ratio is calculated by dividing current assets by current liabilities.

Cash Flows from Operating Activities

For the

1, 2025,

$811.7 million

in net

cash was

provided by

operating activities,

$237.6

million

by

activities

for

the

comparable

period

in

fiscal

The

in

cash

flow

from

activities

from

higher

net

average

selling

prices

per

dozen,

particularly

for

eggs,

volume

of

sales

and

a

decrease

in

feed

ingredient

costs

to

the

prior-year

period,

offset

by

the

increase in volume and price of outside egg purchases.

Cash Flows from Investing Activities

For the thirty-nine weeks ended March 1, 2025,

$385.1 million was used in investing activities, primarily due

to the acquisition

of assets of

ISE, and purchases of

property, plant

and equipment compared

to $118.4

million used in

investing activities in the

same period of fiscal 2024, primarily

due to purchases of investment securities.

Purchases of investment securities were $813.1

million during the thirty-nine weeks ended March 1, 2025 and sales and maturities of investment securities were $654.4

million

during the period. Sales

and maturities of investment securities

were $273.9 million in the

prior year period while

purchases of

securities were

$243.5

million

during

the

period.

The

in

sales

and

maturities

of

securities

is

to the

short-term investments

during the

first three

quarters of

fiscal 2025.

Cash paid

for business

acquisitions

was

$116.2

million

in

the

weeks

ended

March

1,

2025,

related

to

the

ISE

and

$53.7 million in the prior year period, related to the Fassio acquisition. Purchases of property,

plant and equipment were $115.4

$96.0 million

in the

first three

quarters of

and 2024,

respectively,

primarily reflecting

progress on

our

construction projects.

Cash Flows from Financing Activities

We

paid

dividends of

$160.8 million

for the

1,

$43.0 million

in the

same

prior-year period.

As of

2025, cash

increased $259.4

million since

June 1,

2024, compared

to $74.3

million during

fiscal 2024. The increase is primarily due to the increase in net sales during fiscal 2025.

Index

Credit Facility

On

15,

2021,

we

entered

into

a

credit

that

for

a

senior

secured

revolving

credit

(the

“Credit Facility”), in an initial aggregate principal amount of up to

$250 million with a five-year term. As of March 1, 2025,

no

amounts were borrowed under

the Credit Facility and

we had $4.7

million in outstanding

standby letters of

credit issued under

our Credit Facility for the

benefit of certain insurance companies. On

March 25, 2025, we entered

into the Second Amendment

to

the

Credit

Facility.

Refer

to

Part

I.

Item

I,

Notes

to

Note 11 – Subsequent Events

,

in

this

report,

Exhibit

10.2

to

this

report

and

Part

II

Item

8,

Notes

to

Statements

and

Supplementary Data, Note 10

• Credit Facility included

in our 2024

Annual Report for further

information regarding our long-

term debt.

Share Repurchase Program

On February

25, 2025,

the Board

of Directors

approved a

new $500

million share

repurchase program.

program authorizes the Company, in management’s discretion, to repurchase Common Stock from time to time for an aggregate

purchase price

up to

$500 million

(exclusive of

any fees,

taxes, commissions

or other

expenses related

to such

repurchases),

subject to

market conditions

factors. The

actual timing,

number and

value of

shares repurchased

under the

program

will be

determined by

management in

its discretion

and will

depend on

a number

of factors,

including, but

not limited

to, the

market price of the Common Stock and general market and economic conditions.

The Company expects to strategically and opportunistically repurchase shares from time to time through solicited or unsolicited

transactions in the

open market, in

privately negotiated transactions

or by other

means in accordance

with securities laws.

It is

also

possible

that

the

Company could

use

a

portion of

its share

program to

some of

the

shares

of

the

Common

Stock

held

by

the

family

of

our

late

founder,

Fred

R.

Adams

Jr.,

as

part

of

their

portfolio

diversification.

Any

repurchases

from

the

family

would

require

special

approval

from

a

Special

Committee

of

the

Board

of

Directors.

The

Company

expects

that

share

repurchases

under

the

program

will

be

funded

from

one

or

a

combination

of

existing cash

balances and

future free

cash flow.

repurchase program

does not

obligate the

Company to

any specific

amount of

shares, does

not have

an expiration

date, and

may be

suspended, modified

or discontinued

at any

time

without prior notice.

Dividends

In

with

our

variable

dividend

policy,

we

will

pay

a

cash

dividend

totaling

$169.5

or

approximately $3.456 per share, to holders

of our Common Stock and Class

A Common Stock with respect to

our third quarter

of fiscal 2025. The amount paid per share will vary based on

the number of outstanding shares on the record date. The dividend

is payable on May 15, 2025 to holders of record on April 30, 2025.

Material Cash Requirements

Material cash

requirements for operating

activities primarily consist

of feed

ingredients, processing, packaging

and warehouse

costs, employee related costs, and

other general operating expenses, which

we expect to be paid

from our cash from operations

and cash and investment

securities on hand for

at least the next

12 months. While volatile

egg prices and feed

ingredient costs,

among

other

things, make

long-term predictions

difficult,

we

have

substantial liquid

assets and

availability under

our

Credit

Facility to fund future operating requirements.

Our material cash

requirements for capital expenditures

consist primarily of our

construction projects to

increase our cage-free

capacity.

We

continue to

monitor the

increasing demand

eggs and

to

engage with

our

in

efforts

to achieve

a smooth

transition toward

their announced

timelines for

sales. The

following table

presents

material construction projects approved as of March 1, 2025 (in thousands):

Project(s) Type

Projected

Completion

Projected Cost

Spent as of March 1,

Remaining

Projected Cost

Cage-Free Layer & Pullet Houses

Fiscal 2025

$

4,396

$

3,796

$

Feed Mills

16,593

8,055

8,538

Egg Products Expansion

20,213

7,093

13,120

Cage-Free Layer & Pullet Houses

199,667

155,444

44,223

$

240,869

$

174,388

$

66,481

Index

These projects

include the

addition of

five new

cage-free layer

houses and

two pullet

houses across

our locations

in Florida,

Georgia,

Utah

and

Texas.

We

expect

the

projects

to

be

completed

in

calendar

with

for

1.1

million

layer

hens

and

thousand

pullets.

We

are

also

investing

$15

million

to

expand our egg products processing facility in Blackshear, Georgia to add extended shelf-life liquid eggs products.

We

believe our

current cash

balances, investments,

projected cash

flows from

operations, and

available borrowings

under our

Credit

Facility

will

be

sufficient

to

fund

our

capital

expenditure

cash

needs

for

at

least

the

next

months

and

to

fund

our

capital commitments currently in place thereafter.

IMPACT OF RECENTLY

ISSUED/ADOPTED ACCOUNTING STANDARDS

For

on

changes

in

principles

and

new

policies,

see

Note 1 - Summary of Significant

Accounting Policies

of the Notes to Condensed Consolidated Financial Statements included in this Quarterly Report.

CRITICAL ACCOUNTING ESTIMATES

Critical accounting

estimates are

those estimates

made in

U.S. generally

accepted accounting

principles that

involve

a

significant

level

of

estimation

uncertainty

and

have

had

or

are

likely

to

have

a

impact

on

our

financial condition

or results

of operations.

There have

been no

changes to

our critical

accounting estimates

identified in

our

2024 Annual Report.