Financial Condition and Results of Operations in

the

Company's fiscal 2020 Annual Report on Form 10-K.

CAPITAL RESOURCES AND LIQUIDITY



Our

working

capital

at

May

29,

2021

was

$303.5 million,

compared

to

$429.1 million

at

May

30,

2020.

The

calculation

of

working capital is defined as current assets less current liabilities. Our current ratio



was 5.77 at May 29, 2021 compared to 5.60
at May 30, 2020. The

current ratio is calculated

by dividing current assets by

current liabilities. Due to seasonal

factors described


  Part I. Item I. Business - Seasonality
, we generally expect our need for working capital to be highest in

the fourth and first fiscal
quarters ending in May/June and August/September, respectively.

























  Table of Contents

28
We

had no

long-term debt outstanding

at the

end of

fiscal 2021

and 2020.

On July 10,

2018, we

entered into a

$100.0 million
Senior Secured

Revolving Credit

Facility (the

"Revolving Credit

Facility"). As

of May

29, 2021,

no amounts

were borrowed
under the Revolving Credit Facility.

We have

$4.1 million in outstanding standby letters of credit, which were



issued under our
Revolving

Credit

Facility

for

the

benefit

of

certain

insurance

companies.

Refer

to

Part

II.

Item

8.

Notes

to

the

Financial
Statements,
  Note 10 - Credit Facility

for further information regarding our long-term debt.




Net cash provided

by operating activities

was $26.1 million

for fiscal year

2021 compared with

$73.6 million for fiscal

year 2020. Decreased gross profit margins resulting primarily from lower selling prices for shell



eggs, and increased feed costs contributed
greatly to

our decrease

in cash

flow from

operations. The

increase in

accounts receivables

balance at

fiscal 2021

compared to
prior fiscal

2020 is

due to

the income

tax receivable

related to

the CARES

Act, which

is expected

to be

received in

our third
quarter of fiscal 2022.


For fiscal 2021,

approximately $129.1 million was provided

from the sale

and maturity of



investments securities available-for-
sale, $88.3 million

was used

to purchase

short-term investments

and net

payments of

$6.7 million were

received from

investments

in unconsolidated entities. Approximately $95.1 million was



used to purchase or

construct property, plant

and equipment, most
of

which

related

to

the

expansion

of

our

cage-free

shell

egg

production

capacity. Refer

to

the

table

of

material

construction
projects presented

below for

additional information

on purchases

and construction

of property,

plant and

equipment. The

net

result of these and other activities as of May 29, 2021 was a decrease in cash of $20.8 million from May 30, 2020.

For fiscal 2020, approximately

$204.3 million was provided

from the sale and

maturity of investments securities



available-for-
sale,

$107.2

million

was

used

to

purchase

short-term

investments

and

net

payments

of

$7.1

million

were

received

from
investments

i
n

unconsolidated

entities.

We

used

$44.7

million

to

acquire

Mahard

and

the

remaining

interest

in

TEP.

Approximately $124.2

million was

used to

purchase or

construct property,

plant and

equipment, most

of which

related to

the

expansion of our cage-free shell

egg production capacity. Refer to the table of material construction



projects presented below for
additional

information

on

purchases

and

construction

of

property,

plant

and

equipment.

We

used

$1.5

million

for

principal
payments on long-term

debt. The net

result of these

and other activities

as of May

30, 2020 was

an increase in

cash of $8.9

million
from June 1, 2019.

We

continue to

monitor the

increasing demand

for cage-free

eggs and

to engage

with our

customers in

an effort

to achieve

a
smooth

transition

to

meet

their

announced

commitment

timeline

for

cage-free

egg

sales.

We

have

invested

approximately

$476 million in facilities, equipment and

related operations to expand our

cage-free production starting with our



first facility in
2008, which includes

the $48.5 million

acquisition of the

remaining 50% interest

in Red River

discussed in
Note 20 -

Subsequent
Events

in

Part

II.

Item

8.

Notes

to

the

Consolidated

Financial

Statements.

The

following

table

presents

current

material

construction projects approved as of May 29, 2021 (in thousands):




Project(s) Type
Projected

Completion
Projected Cost
Spent as of

May 29, 2021
Remaining
Projected Cost
Cage-Free Layer & Pullet Houses/Processing
Facility
Fiscal 2022
$
140,876
$
93,612
$
47,264
$
140,876
$
93,612
$
47,264

We believe

our current cash balances, investments, cash flows from

operations, and Revolving Credit Facility will be sufficient to fund our current capital needs. As we monitor the demand for cage-free eggs and

our growth strategy described in

Part I. Item

I. Business - Growth Strategy,

there may be a need for long-term

debt financing. We



believe with our strong balance sheet that
we will have adequate access to capital markets if that need arises.











































  Table of Contents

29
CONTRACTUAL OBLIGATIONS


The

following

table

summarizes

by

fiscal

year

the

future

estimated

cash

payments,

in

thousands,

to

be

made

under

existing
contractual obligations as of

May 29, 2021. Further information



on debt obligations is

contained in
  Note 10 - Credit Facility
, and
on lease obligations in
  Note 15 - Leases

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