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 atMay 29, 2021 was$303.5 million , compared to$429.1 million atMay 30, 2020 . The calculation of
working capital is defined as current assets less current liabilities. Our current ratio
was 5.77 atMay 29, 2021 compared to 5.60 atMay 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. OnJuly 10, 2018 , we entered into a$100.0 million Senior Secured Revolving Credit Facility (the "Revolving Credit Facility"). As ofMay 29, 2021 , no amounts were borrowed under the Revolving Credit Facility.
We have
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
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
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
For fiscal 2020, approximately
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 ofMay 30, 2020 was an increase in cash of$8.9 million fromJune 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
related operations to expand our
cage-free production starting with our
first facility in 2008, which includes the$48.5 million acquisition of the remaining 50% interest inRed River discussed in Note 20 - Subsequent Events in Part II. Item 8. Notes to the Consolidated Financial Statements. The following table presents current material
construction projects approved as of
Project(s) Type Projected Completion Projected Cost Spent as ofMay 29, 2021 Remaining Projected Cost Cage-Free Layer & Pullet Houses/Processing Facility Fiscal 2022$ 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
on debt obligations is contained in Note 10 - Credit Facility , and on lease obligations in Note 15 - Leases
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