SECURITIES AND EXCHANGE COMMISSION

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-K/A


X   ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934

For the fiscal year ended                   April 02, 2005                 or


___ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from _______________ to _________________

COMMISSION FILE NUMBER:       1-7138                                                 .


CAGLE'S, INC.

 (Exact Name Of Registrant As Specified In Its Charter)


GEORGIA                                            58-0625713

(State Of Incorporation)               (I.R.S Employer Identification No.)


2000 HILLS AVE., NW, ATLANTA, GA.                   30318

(Address Of Principal Executive Offices)               (Zip Code)


Registrant's telephone number, including area code:        (404) 355-2820               .


SECURITIES REGISTERED PURSUANT TO SECTION 12(B) OF THE ACT:

Title of each class                               Name of exchange on which registered

CLASS A COMMON STOCK                         AMERICAN STOCK EXCHANGE        .


SECURITIES REGISTERED PURSUANT TO SECTION 12(G) OF THE ACT:

                                                        None                                                          .


Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.    X   YES    ___ NO

 

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Exchange Act.           Yes        X   No

 

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of l934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.      X   YES    ___ NO


Indicate by check mark whether the registrant (1) has filed all reports required to be filed by section 13 or 15(d) of the securities exchange act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports) and (2) has been subject to such filing requirements for the past 90 days.      X   YES    ___ NO


Indicate by check mark if disclosure of delinquent filers pursuant to item 405 of regulation s-k (§ 229.405 of this chapter)  is not contained herein, and will not be contained, to the best of registrant’s knowledge, in definitive proxy or information statements incorporated by reference in part iii of this form 10-k or any amendment to this FORM 10-K.          .

 

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, or a non-accelerated filer. See definition of “accelerated filer and large accelerated filer” in Rule 12b-2 of the Exchange Act”.  

Large accelerated filer   _____                                       Accelerated filer   _____                                             Non-accelerated filer    X         .


Indicate by check mark if the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).         Yes        X   No

 

State the aggregate market value of the voting and non-voting common equity held by non-affiliates computed by reference to the price at which the common equity was last sold, or the average bid and asked prices of such common equity, as of the last business day of the registrant’s most recently completed second fiscal quarter.      $   22,757,661.63    (based on $12.99 per share closing price on October 01, 2004)    .


Indicate the number of shares outstanding of each of the registrant's classes of common stock, as of the latest practicable date.

   Class A Common Stock at $1.00 par value                   4,742,998 shares at $1.00 par value   .


DOCUMENTS INCORPORATED BY REFERENCE:  

  Parts of the following documents are incorporated by reference in Part III of this form 10-K report:

  1) proxy statements for registrant's 2005 annual meeting of shareholders-      Items 10, 11, 12, 13, and 14.



       Page 1  of 9



February 16, 2006


The purpose of the amended filing is to clarify the following areas of Form 10-K for the fiscal year ended April 2, 2005.


General

1.

Dates starting on page 22 have been expanded, no amounts have changed.



       Page 2  of 9



Consolidated Balance Sheets

   

April 2, 2005 and April 3, 2004

   

(In Thousands, Except Par Values)

   
 

April 2, 2005

 

April 3, 2004

ASSETS

   

Current assets

   

Cash and cash equivalents

 $                    877

 

 $                      11

Trade accounts receivable, less allowance for doubtful accounts

   

of $369 and $601  in 2005 and 2004, respectively

                  11,370

 

                  11,662

Inventories

                  19,042

 

                  19,329

Note receivable

                       250

 

                    1,000

Refundable income taxes, current portion

                       559

 

                    1,068

Other current assets

                       589

 

                       657

Total current assets

                  32,687

 

                  33,727

Investments in and receivables from unconsolidated affiliates

                    6,105

 

                    4,041

    

Property, plant and equipment, at cost

   

Land

                    1,976

 

                    1,976

Buildings and improvements

                  56,103

 

                  57,854

Machinery, furniture and equipment

                  35,400

 

                  43,612

Vehicles

                    4,480

 

                    4,639

Construction in progress

                    3,381

 

                            -

 

                101,340

 

                108,081

Less accumulated depreciation

                  56,840

 

                  63,857

Property, plant and equipment, net

                  44,500

 

                  44,224

    

Other assets

   

Long-term refundable income taxes

                    2,251

 

                    2,390

Deferred financing costs, net

                       687

 

                       169

Deferred income taxes

                    5,003

 

                  11,892

Other assets

                    3,059

 

                    3,576

Total other assets

                  11,000

 

                  18,027

Total assets

 $               94,292

 

 $             100,019

    

LIABILITIES AND STOCKHOLDERS' EQUITY

   

Current liabilities

   

Current maturities of long-term debt   

 $                 3,476

 

 $                 2,921

Accounts payable  

                  11,563

 

                  18,367

Accrued expenses  

                    4,668

 

                    6,675

Deferred income taxes

                    1,770

 

                    2,237

Total current liabilities  

                 21,477

 

                 30,200

    

Long-term debt  

                 26,534

 

                 34,552

Other noncurrent liabilities  

                      475

 

                   1,000

    

Commitments and contingencies

   

STOCKHOLDERS' EQUITY

   

Preferred stock, $1 par value; 1,000 shares authorized, none issued

                         -    

 

                         -    

Common stock, $1 par value; 9,000 shares authorized, 4,744

   

shares issued and 4,743 shares outstanding in 2005 and 2004

                   4,744

 

                   4,744

Treasury stock, at cost

                       (80)

 

                       (80)

Additional paid-in capital

                   4,198

 

                   4,198

Retained earnings

                 36,944

 

                 25,405

Total stockholders' equity

                 45,806

 

                 34,267

Total liabilities and stockholders' equity

 $              94,292

 

 $            100,019

The accompanying notes are an integral part of these consolidated financial statements.

 



       Page 3  of 9






Consolidated Statements of Operations

   

April 2, 2005, April 3, 2004 and March 29, 2003

   

(In Thousands, Except Par Values)

   
 

April 2, 2005

April 3, 2004

March 29, 2003

    

Net sales

 $          246,343

 $          304,507

 $          313,800

    

Costs and expenses

   

Cost of sales

             217,024

             309,605

             326,352

Selling and delivery

                 6,451

                  8,107

                  9,745

General and administrative

                 6,891

                10,000

                  8,200

Total costs and expenses

             230,366

             327,712

             344,297

    

Operating income (loss)

               15,977

              (23,205)

              (30,497)

    

Other income (expense)

   

Gain on sale of unconsolidated affiliates

                        -    

                        -    

               12,914

Interest expense

                (2,649)

                (7,018)

                (8,156)

Other income (expense), net

                     549

                (3,915)

                (1,037)

Other income (expense), net

                (2,100)

              (10,933)

                  3,721

    

Income (loss) before equity in earnings of

   

unconsolidated affiliates and income taxes

               13,877

              (34,138)

              (26,776)

    

Equity in earnings of unconsolidated affiliates

                  4,129

                  3,371

                  4,446

    

Income (loss) before income taxes

               18,006

              (30,767)

              (22,330)

    

Income taxes provision (benefit)

                  6,467

              (13,042)

                (9,058)

    

Net income (loss)

 $            11,539

 $          (17,725)

 $          (13,272)

    

Weighted average common shares outstanding

   

Basic

                  4,743

                  4,743

                  4,743

    

Diluted

                  4,743

                  4,743

                  4,743

    

Per common share

   

Net income (loss)

   

Basic

 $                 2.43

 $               (3.74)

 $               (2.80)

    

Diluted

 $                 2.43

 $               (3.74)

 $               (2.80)

    

The accompanying notes are an integral part of these consolidated financial statements.

 



j.     Earnings per share –

 

April 2, 2005

April 3, 2004

March 29, 2003

    

Weighted average common shares

4,743

4,743

4,743

Incremental shares from assumed

   

conversions of options

-

-

-

    

Weighted average common shares and

   

dilutive potential common shares

4,743

4,743

4,743




       Page 4  of 9



2.

Deferred Financing Costs


   
   

Deferred financing costs

 $                  896

 $                  245

Accumulated amortization

                   (209)

                      (76)

 

   

   

Net deferred financing costs

 $                  687

 $                  169




3.

Long-Term Debt


 

April 2, 2005

April 3, 2004

Term note payable; fixed interest rate of 7.86%,

  

principal and interest payable monthly of $290,

 

 

through maturity on April 1, 2011; secured by the

  

Collinsville plant and Rockmart feedmill.    

 $            23,477

 $            25,396

   

Term note payable; interest rate of LIBOR plus 4.50%,

  

(7.62% at April 2, 2005) principal and interest payable

  

monthly of $117, through maturity on Dec. 20, 2006;

  

secured by accounts receivable, inventory, property

  

and equipment.

 $              6,533

 $                    -    

   

Revolving credit agreement with a bank, maturing

  

January 30, 2007, interest payable monthly, variable

  

interest rate (4.25% at April 3, 2004); secured by

  

accounts receivable, inventories and property, plant

  

and equipment, excluding the Collinsville plant and

  

Rockmart feedmill.  Repaid in 2005.

                        -    

                  7,231

   

Term note payable to a bank; variable interest rate (6.00% at April 3, 2004);

  

principal and interest payable monthly of $83, with balance due at

  

maturity on January 30, 2007; secured by accounts receivable,

  

inventories and property, plant and equipment, excluding the Collinsville

  

plant and Rockmart feedmill.

  

Repaid in 2005.

                        -    

                  4,833

   

Other notes payable at varying interest rates

  

and maturities.  Repaid in 2005.

                        -    

                       13

 

               30,010

               37,473

Less current maturities

                (3,476)

                (2,921)

Long-term debt, less current maturities

 $            26,534

 $            34,552





       Page 5  of 9



4.

Income Taxes


Income tax benefits are reflected in the consolidated statements of operations as follows:

 

April 2, 2005

April 3, 2004

March 29, 2003

Current tax provision (benefit)

 $                    45

 $              2,563

 $                (563)

Change in valuation allowance

                        -    

                (2,614)

                        -    

 

                       45

                      (51)

                   (563)

    

Deferred tax expense (benefit)

                  6,422

              (12,991)

                (8,495)

 

 $              6,467

 $          (13,042)

 $             (9,058)


 


A reconciliation between income taxes computed at the federal statutory rate and the Company’s income tax rate is as follows:


 

April 2, 2005

April 3, 2004

March 29, 2003

 

   

Federal income taxes at statutory rate

 $              6,122

 $          (10,396)

 $             (7,593)

State income taxes

                     777

                   (624)

                   (456)

Change in valuation allowance

                        -    

                (2,614)

                        -    

Jobs and investment tax credits

                   (690)

                   (680)

                   (680)

Other

                     258

                  1,272

                   (329)

    
 

 $              6,467

 $          (13,042)

 $             (9,058)






Components of the net deferred income tax asset (liability) at  and  relate to the following:


 

April 2, 2005

April 3, 2004

Deferred income tax assets

  

Tax credit carryforwards

 $              9,702

 $              7,663

Net operating loss carryforwards

                  9,438

               17,456

Accrued expenses

                     522

                     705

Other

                     216

                     389

 

               19,878

               26,213

Less valuation allowance

                (4,150)

                (4,150)

 

               15,728

               22,063

Deferred income tax liabilities

  

Family farm cash-basis deferral

                (2,288)

                (2,439)

Inventories

                (1,806)

                (2,732)

Property and depreciation

                (5,860)

                (4,430)

Income from joint ventures

                (1,956)

                (2,260)

Other

                   (585)

                   (547)

 

              (12,495)

              (12,408)

 

   

   

Net deferred income tax asset

 $              3,233

 $              9,655





       Page 6  of 9



8.

Investments in Unconsolidated Affiliates


 

April 2, 2005

April 3, 2004

March 29, 2003

 

   

Sales

 $              6,425

 $            23,140

 $                  426

Purchases

                        -    

                        -    

                       27

Accounts receivable

                        -    

                     413

                        -    

Accounts payable

                        -    

                        -    

                        -    

Administrative service fees

                     756

                     746

                     746




 

April 2, 2005

April 3, 2004

 

  

Current assets

 $            24,729

 $            37,217

Noncurrent assets

               53,459

               58,238

   

Total assets

 $            78,188

 $            95,455

   
   

Current liabilities

 $              6,702

 $            18,885

Noncurrent liabilities

               51,157

               63,174

Owners' equity

               20,329

               13,396

   

Total liabilities and owners' equity

 $            78,188

 $            95,455















       Page 7  of 9


General

1.       On the Consolidated Statement of Cash Flows unnecessary zeros have been deleted.


Consolidated Statements of Cash Flows

     

For the Years Ended April 2, 2005, April 3, 2004, and March 29, 2003

    

(In Thousands)

     
  

April 2, 2005

 

April 3, 2004

 

March 29, 2003

CASH FLOWS FROM OPERATING ACTIVITIES

     

  Net income (loss)

 $       11,539

 

 $     (17,725)

 

 $          (13,272)

  Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities

 
 

    Depreciation

            3,841

 

          10,457

 

              14,109

 

    Impairment loss

                   -

 

          18,528

 

                       -

 

    Amortization

               133

 

              253

 

                  365

  Gain on sale of property, plant and equipment

              (572)

 

                 (2)

 

                 (286)

  Gain on sale of unconsolidated affiliates

                   -

 

                  -

 

             (12,914)

  Income from unconsolidated affiliates, net of distributions

           (2,064)

 

              138

 

               (1,620)

  Deferred income taxes expense (benefit)

            6,422

 

         (12,991)

 

               (8,495)

  Changes in operating assets and liabilities

  

     

 

     

 

    Trade accounts receivable, net

               292

 

           1,614

 

                2,397

 

     Inventories

               287

 

           8,158

 

                6,689

 

    Refundable income taxes

               648

 

           1,068

 

                5,490

 

    Other current assets  

                68

 

               (81)

 

                   (17)

 

    Accounts payable   

           (6,804)

 

          (1,913)

 

               (3,863)

 

    Accrued expenses   

           (2,007)

 

          (2,862)

 

                  690

Net cash provided by (used in) operating activities

          11,783

 

           4,642

 

             (10,727)

CASH FLOWS FROM INVESTING ACTIVITIES

     

  Purchases of property, plant and equipment

           (4,277)

 

             (411)

 

               (1,176)

  Proceeds from sale of property, plant and equipment

               377

 

          43,920

 

                  459

  Proceeds from sale of unconsolidated affiliates

                   -

 

                  -

 

              56,737

  Payments received on notes receivable

            1,105

 

                  -

 

                       -

  Increase in other assets  

                 (8)

 

               (29)

 

               (1,836)

  Decrease in other liabilities  

                   -

 

             (159)

 

               (3,911)

Net cash provided by (used in) investing activities  

           (2,803)

 

          43,321

 

              50,273

CASH FLOWS FROM FINANCING ACTIVITIES

     

  Net proceeds on revolving line of credit

 $                -

 

 $         6,231

 

 $                    -

  Proceeds from issuance of long-term debt

          11,816

 

           6,099

 

                  378

  Payments of long-term debt

         (19,279)

 

         (60,330)

 

             (39,711)

  Payments of deferred financing costs

              (651)

 

               (52)

 

                 (214)

  Proceeds from exercise of stock options

                   -

 

                  -

 

                    10

Net cash used in financing activities  

           (8,114)

 

         (48,052)

 

             (39,537)

Net increase (decrease) in cash and cash equivalents

866

 

-89

 

9

Cash and cash equivalents at beginning of year

11

 

100

 

91

Cash and cash equivalents at end of year

               877

 

                11

 

                  100

Supplementary disclosures of cash flow information

     

  Cash paid during the year for interest

            2,664

 

           9,132

 

                6,572

  Income taxes paid (refunded), net

                66

 

          (1,119)

 

               (6,151)

Supplementary disclosures of non-cash transactions

     

  Note receivable received from sale of property, plant and equipment

 $                -

 

 $         1,000

 

 $                    -

  Write-off of note receivable

               170

 

                  -

 

                       -




       Page 8  of 9


Revenue Recognition, page 20  


2.

We have restated our comment on revenue recognition to specifically address standard and cost plus customers.


c.

Revenue recognition – The Company recognizes revenue from standard and cost plus customers when the following criteria are met: persuasive evidence of an agreement exists, delivery occurred and product accepted, the Company’s price to the buyer is fixed and determinable, and collection is reasonably assured.



Controls and Procedures, page 31


3.

We have restated our comment on controls and procedures to properly reflect paragraph (c) of Item 308 of the Regulation S-K.



As of April 2, 2005, the Company carried out an evaluation, under the supervision and with the participation of the Company’s management, including the Company’s Chief Executive Officer and Chief Financial Officer, of the effectiveness of the design and operation of the Company’s disclosure controls and procedures.  Based upon that evaluation, the Company’s management, including the Chief Executive Officer and Chief Financial Officer, concluded the Company’s disclosure controls and procedures were effective as of April 2, 2005, and they have concluded that there was no change to the Company’s internal control over financial reporting that has materially affected, or is reasonably likely to materially affect, the Company’s internal control over financial reporting.






Signatures


Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.


Cagle's, Inc.


BY:   /s/  J. Douglas Cagle

               Chairman and Chief Executive Officer & President

               February 21, 2006




Pursuant to the requirements of the Securities Exchange Act of 1934, this report is signed below by the following persons on behalf of the registrant and in the capacities indicated and on February 21, 2006:


/s/ J. Douglas Cagle    

Director and Chairman and Chief Executive Officer & President

/s/ G. Bland Byrne         

Director

/s/ Candace Chapman                      Director

/s/ Panos J. Kanes         

Director

/s/ Edward J Rutkowski     

Director

/s/ Mark M. Ham IV         

Director and Executive Vice President & CFO

/s/ James David Cagle      

Director and Vice President

/s/ George Douglas Cagle                

Director and Vice President




       Page 9  of 9