Pilgrim’s Pride Corporation (NASDAQ:PPC) reports second quarter
2017 financial results.
Second Quarter Highlights
- Net Sales of $2.25 billion.
- Net Income of $233.6 million, GAAP EPS of $0.94.
- Operating Income margins of 14.8% in U.S. and 22.1% in Mexico
operations, respectively.
- Adjusted EBITDA of $420.6 million (or an 18.7% margin).
- Cash Flow from Operations of $254.7 million.
- With our announced capital projects already completed, our
quarterly performance reflected our well-balanced portfolio
strategy, designed to capture the upside from strong markets while
reducing overall volatility.
- Integration of newly acquired assets in Mexico has been
completed with margins at the same level as legacy business. GNP
integration is on track and synergy capture is currently above
expectations.
|
Unaudited,
In Millions, Except Per Share and Percentages |
|
Thirteen Weeks Ended |
|
June 25, 2017 |
|
June 26, 2016 |
|
Change |
Net Sales |
$2,251.6 |
|
$2,028.3 |
|
+11.0% |
GAAP EPS |
$0.94 |
|
$0.60 |
|
+56.7% |
Operating Income |
$359.4 |
|
$236.6 |
|
+51.9% |
Adjusted EBITDA
(1) |
$420.6 |
|
$282.7 |
|
+48.8% |
Adjusted EBITDA Margin
(1) |
18.7% |
|
13.9% |
|
+4.8pts |
|
|
|
|
|
|
(1)
Reconciliations for non-GAAP measures are provided in subsequent
sections within this release. |
|
“Our Q2 results materially improved from last quarter as well as
from a year ago driven by much stronger results at our U.S.
operations while Mexico continued to perform very well.
Demonstrating the diversity of our portfolio of bird sizes; while
small bird and tray-pack remained robust during the period, our
team captured the strength in the large bird deboning environment,
which significantly rebounded after a slower than expected start
earlier in the year, driven by stronger exports and very good
domestic demand as the grilling season kicked off. This portfolio
approach is working well and is what fundamentally differentiates
us from the competition, giving us the potential to reduce
volatility and generate higher margins over time. This summer has
brought strong demand for grilling season and we see continuation
of chicken as a choice protein in domestic and international
markets,” stated Bill Lovette, Chief Executive Officer of
Pilgrim's.
“We continue to search for solutions in delivering more
differentiated customized products that are innovative to satisfy
our key customers’ needs. We currently have market leading
positions in USDA-certified organic and NAE, two segments that
resonate very well with new consumer trends for more natural
products while adding more value to our portfolio. We also have the
potential to expand into new segments with our broad channel
approach using the Gold’n Plump brand as well as the new premium
Just BARE chicken in the “better for you” category.”
Conference Call Information
A conference call to discuss Pilgrim’s quarterly results will be
held tomorrow, August 3, at 7:00 a.m. MT (9 a.m. ET).
Participants are encouraged to pre-register for the conference call
using the link below. Callers who pre-register will be given
a unique PIN to gain immediate access to the call and bypass the
live operator. Participants may pre-register at any time,
including up to and after the call start time.
To pre-register, go to:
http://services.choruscall.com/links/ppc170803.html
You may also reach the pre-registration link by logging in
through the investor section of our website at www.pilgrims.com and
clicking on the link under “Upcoming Events.”
For those who would like to join the call but have not
pre-registered, access is available by dialing +1 (844) 883-3889
within the US, or +1 (412) 317-9245 internationally, and requesting
the “Pilgrim’s Pride Conference.” Please note that to submit a
question to management during the call, you must be logged in via
telephone.
Replays of the conference call will be available on Pilgrim’s
website approximately two hours after the call concludes and can be
accessed through the “Investor” section of www.pilgrims.com. The
webcast will be available for replay through November 3, 2017.
About Pilgrim’s Pride
Pilgrim’s employs approximately 42,000 people and operates
chicken processing plants and prepared-foods facilities in 14
states, Puerto Rico and Mexico. The Company’s primary
distribution is through retailers and foodservice
distributors. For more information, please visit
www.pilgrims.com.
Forward-Looking Statements
Statements contained in this press release that state the
intentions, plans, hopes, beliefs, anticipations, expectations or
predictions of the future of Pilgrim’s Pride Corporation and its
management are considered forward-looking statements. It is
important to note that actual results could differ materially from
those projected in such forward-looking statements. Factors that
could cause actual results to differ materially from those
projected in such forward-looking statements include: matters
affecting the poultry industry generally; the ability to execute
the Company’s business plan to achieve desired cost savings and
profitability; future pricing for feed ingredients and the
Company’s products; outbreaks of avian influenza or other diseases,
either in Pilgrim’s Pride’s flocks or elsewhere, affecting its
ability to conduct its operations and/or demand for its poultry
products; contamination of Pilgrim’s Pride’s products, which has
previously and can in the future lead to product liability claims
and product recalls; exposure to risks related to product
liability, product recalls, property damage and injuries to
persons, for which insurance coverage is expensive, limited and
potentially inadequate; management of cash resources; restrictions
imposed by, and as a result of, Pilgrim’s Pride’s leverage; changes
in laws or regulations affecting Pilgrim’s Pride’s operations or
the application thereof; new immigration legislation or increased
enforcement efforts in connection with existing immigration
legislation that cause the costs of doing business to increase,
cause Pilgrim’s Pride to change the way in which it does business,
or otherwise disrupt its operations; competitive factors and
pricing pressures or the loss of one or more of Pilgrim’s Pride’s
largest customers; currency exchange rate fluctuations, trade
barriers, exchange controls, expropriation and other risks
associated with foreign operations; disruptions in international
markets and distribution channel, including anti-dumping
proceedings and countervailing duty proceedings; and the impact of
uncertainties of litigation as well as other risks described under
“Risk Factors” in the Company’s Annual Report on Form 10-K and
subsequent filings with the Securities and Exchange Commission.
Pilgrim’s Pride Corporation undertakes no obligation to update or
revise publicly any forward-looking statements, whether as a result
of new information, future events or otherwise.
PILGRIM’S PRIDE CORPORATION |
CONDENSED CONSOLIDATED BALANCE SHEETS |
|
|
|
June 25, 2017 |
|
December 25, 2016 |
|
|
(Unaudited) |
|
|
|
|
(In thousands) |
Cash and cash
equivalents |
|
$ |
303,937 |
|
|
$ |
120,328 |
|
Restricted cash |
|
20,348 |
|
|
4,979 |
|
Trade accounts and
other receivables, less allowance for doubtful accounts |
|
406,586 |
|
|
317,170 |
|
Accounts receivable
from related parties |
|
4,050 |
|
|
3,913 |
|
Inventories |
|
967,577 |
|
|
813,262 |
|
Income taxes
receivable |
|
13,659 |
|
|
— |
|
Prepaid expenses and
other current assets |
|
66,572 |
|
|
57,457 |
|
Assets held for
sale |
|
5,542 |
|
|
5,259 |
|
Total
current assets |
|
1,788,271 |
|
|
1,322,368 |
|
Other long-lived
assets |
|
17,484 |
|
|
15,710 |
|
Identified intangible
assets, net |
|
153,855 |
|
|
38,593 |
|
Goodwill |
|
175,444 |
|
|
125,607 |
|
Property, plant and
equipment, net |
|
1,721,948 |
|
|
1,505,940 |
|
Total
assets |
|
$ |
3,857,002 |
|
|
$ |
3,008,218 |
|
|
|
|
|
|
Accounts payable |
|
$ |
519,820 |
|
|
$ |
555,097 |
|
Accounts payable to
related parties |
|
3,622 |
|
|
1,421 |
|
Accrued expenses and
other current liabilities |
|
324,727 |
|
|
290,699 |
|
Income taxes
payable |
|
93,910 |
|
|
20,990 |
|
Current maturities of
long-term debt |
|
40,098 |
|
|
94 |
|
Total
current liabilities |
|
982,177 |
|
|
868,301 |
|
Long-term debt, less
current maturities |
|
1,404,264 |
|
|
1,011,858 |
|
Deferred tax
liabilities |
|
171,042 |
|
|
142,651 |
|
Other long-term
liabilities |
|
89,422 |
|
|
88,661 |
|
Total
liabilities |
|
2,646,905 |
|
|
2,111,471 |
|
Common stock |
|
2,602 |
|
|
2,597 |
|
Treasury stock |
|
(231,758 |
) |
|
(217,117 |
) |
Additional paid-in
capital |
|
1,688,684 |
|
|
1,686,742 |
|
Accumulated
deficit |
|
(193,073 |
) |
|
(520,635 |
) |
Accumulated other
comprehensive loss |
|
(66,735 |
) |
|
(64,243 |
) |
Total
Pilgrim’s Pride Corporation stockholders’ equity |
|
1,199,720 |
|
|
887,344 |
|
Noncontrolling
interest |
|
10,377 |
|
|
9,403 |
|
Total
stockholders’ equity |
|
1,210,097 |
|
|
896,747 |
|
Total
liabilities and stockholders’ equity |
|
$ |
3,857,002 |
|
|
$ |
3,008,218 |
|
|
|
|
|
|
|
|
|
|
PILGRIM’S PRIDE CORPORATION |
CONDENSED CONSOLIDATED STATEMENTS OF
INCOME |
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
Thirteen Weeks Ended |
|
Twenty-Six Weeks Ended |
|
|
June 25, 2017 |
|
June 26, 2016 |
|
June 25, 2017 |
|
June 26, 2016 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In thousands, except per share
data) |
Net sales |
|
$ |
2,251,604 |
|
|
$ |
2,028,315 |
|
|
$ |
4,272,096 |
|
|
$ |
3,991,252 |
|
Cost of sales |
|
1,826,217 |
|
|
1,742,184 |
|
|
3,631,504 |
|
|
3,467,559 |
|
Gross
profit |
|
425,387 |
|
|
286,131 |
|
|
640,592 |
|
|
523,693 |
|
Selling, general and
administrative expense |
|
61,636 |
|
|
49,520 |
|
|
124,489 |
|
|
98,308 |
|
Administrative
restructuring charges |
|
4,349 |
|
|
— |
|
|
4,349 |
|
|
— |
|
Operating
income |
|
359,402 |
|
|
236,611 |
|
|
511,754 |
|
|
425,385 |
|
Interest expense, net
of capitalized interest |
|
15,935 |
|
|
11,548 |
|
|
28,321 |
|
|
23,581 |
|
Interest income |
|
(1,044 |
) |
|
(683 |
) |
|
(1,346 |
) |
|
(1,376 |
) |
Foreign currency
transaction gain |
|
(1,810 |
) |
|
(4,744 |
) |
|
(1,191 |
) |
|
(4,979 |
) |
Miscellaneous, net |
|
(970 |
) |
|
(950 |
) |
|
(3,685 |
) |
|
(3,896 |
) |
Income
before income taxes |
|
347,291 |
|
|
231,440 |
|
|
489,655 |
|
|
412,055 |
|
Income tax expense |
|
113,218 |
|
|
78,398 |
|
|
161,119 |
|
|
141,002 |
|
Net
income |
|
234,073 |
|
|
153,042 |
|
|
328,536 |
|
|
271,053 |
|
Less: Net income (loss)
attributable to noncontrolling interests |
|
432 |
|
|
156 |
|
|
974 |
|
|
(204 |
) |
Net
income attributable to Pilgrim’s Pride Corporation |
|
$ |
233,641 |
|
|
$ |
152,886 |
|
|
$ |
327,562 |
|
|
$ |
271,257 |
|
|
|
|
|
|
|
|
|
|
Weighted
average shares of common stock outstanding: |
|
|
|
|
|
|
|
|
Basic |
|
248,753 |
|
|
254,554 |
|
|
248,722 |
|
|
254,681 |
|
Effect of
dilutive common stock equivalents |
|
220 |
|
|
390 |
|
|
228 |
|
|
364 |
|
Diluted |
|
248,973 |
|
|
254,944 |
|
|
248,950 |
|
|
255,045 |
|
|
|
|
|
|
|
|
|
|
Net income
attributable to Pilgrim's Pride Corporation per share
of common stock outstanding: |
|
|
|
|
|
|
|
|
Basic |
|
$ |
0.94 |
|
|
$ |
0.60 |
|
|
$ |
1.32 |
|
|
$ |
1.07 |
|
Diluted |
|
$ |
0.94 |
|
|
$ |
0.60 |
|
|
$ |
1.32 |
|
|
$ |
1.06 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PILGRIM’S PRIDE CORPORATION AND
SUBSIDIARIES |
CONDENSED CONSOLIDATED STATEMENTS OF CASH
FLOWS |
(Unaudited) |
|
|
|
Twenty-Six Weeks Ended |
|
|
June 25, 2017 |
|
June 26, 2016 |
|
|
|
|
|
|
|
|
|
|
|
(In thousands) |
Cash flows from
operating activities: |
|
|
|
|
Net
income |
|
$ |
328,536 |
|
|
$ |
271,053 |
|
Adjustments to reconcile net income to cash provided by operating
activities: |
|
|
|
|
Depreciation and amortization |
|
107,671 |
|
|
88,683 |
|
Foreign
currency transaction loss related to borrowing arrangements |
|
5,634 |
|
|
— |
|
Impairment expense |
|
3,534 |
|
|
— |
|
Gain on
property disposals |
|
(768 |
) |
|
(6,755 |
) |
Gain on
equity method investments |
|
(30 |
) |
|
— |
|
Share-based compensation |
|
1,947 |
|
|
1,869 |
|
Deferred
income tax expense (benefit) |
|
26,904 |
|
|
(700 |
) |
Changes
in operating assets and liabilities: |
|
|
|
|
Trade
accounts and other receivables |
|
(73,684 |
) |
|
6,610 |
|
Inventories |
|
(97,857 |
) |
|
(31,208 |
) |
Prepaid
expenses and other current assets |
|
(5,702 |
) |
|
(19,817 |
) |
Accounts
payable, accrued expenses and other current liabilities |
|
(34,565 |
) |
|
(23,028 |
) |
Income
taxes |
|
60,695 |
|
|
6,967 |
|
Long-term
pension and other postretirement obligations |
|
(3,916 |
) |
|
(3,952 |
) |
Other
operating assets and liabilities |
|
(2,265 |
) |
|
(738 |
) |
Cash provided by
operating activities |
|
316,134 |
|
|
288,984 |
|
Cash flows from
investing activities: |
|
|
|
|
Acquisitions of property, plant and equipment |
|
(174,150 |
) |
|
(93,978 |
) |
Business
acquisition |
|
(359,698 |
) |
|
— |
|
Proceeds
from property disposals |
|
1,466 |
|
|
8,097 |
|
Cash used in investing
activities |
|
(532,382 |
) |
|
(85,881 |
) |
Cash flows from
financing activities: |
|
|
|
|
Proceeds
from note payable to bank |
|
— |
|
|
36,838 |
|
Payments
on note payable to bank |
|
— |
|
|
(65,564 |
) |
Proceeds
from revolving line of credit and long-term borrowings |
|
1,013,662 |
|
|
351,089 |
|
Payments
on revolving line of credit, long-term borrowings and capital lease
obligations |
|
(586,056 |
) |
|
(219,812 |
) |
Proceeds
from equity contribution under Tax Sharing Agreement between JBS
USA Food Company Holdings and Pilgrim's Pride Corporation |
|
5,038 |
|
|
3,691 |
|
Payment
of capitalized loan costs |
|
(2,777 |
) |
|
(693 |
) |
Purchase
of common stock under share repurchase program |
|
(14,641 |
) |
|
(7,328 |
) |
Cash
dividends |
|
— |
|
|
(699,915 |
) |
Cash provided by (used
in) financing activities |
|
415,226 |
|
|
(601,694 |
) |
Increase (decrease) in
cash, cash equivalents and restricted cash |
|
198,978 |
|
|
(398,591 |
) |
Cash, cash equivalents
and restricted cash, beginning of period |
|
125,307 |
|
|
439,638 |
|
Cash, cash equivalents
and restricted cash, end of period |
|
$ |
324,285 |
|
|
$ |
41,047 |
|
|
|
|
|
|
|
|
|
|
PILGRIM’S PRIDE CORPORATION
Selected Financial
Information
(Unaudited)
“EBITDA” is defined as the sum of net income
(loss) plus interest, taxes, depreciation and amortization.
“Adjusted EBITDA” is calculated by adding to EBITDA certain items
of expense and deducting from EBITDA certain items of income that
we believe are not indicative of our ongoing operating performance
consisting of: (i) income (loss) attributable to non-controlling
interests, (ii) restructuring charges, (iii) reorganization items,
(iv) losses on early extinguishment of debt and (v) foreign
currency transaction losses (gains). EBITDA is presented because it
is used by management and we believe it is frequently used by
securities analysts, investors and other interested parties, in
addition to and not in lieu of results prepared in conformity with
accounting principles generally accepted in the US (“GAAP”), to
compare the performance of companies. We believe investors
would be interested in our Adjusted EBITDA because this is how our
management analyzes EBITDA. The Company also believes that
Adjusted EBITDA, in combination with the Company’s financial
results calculated in accordance with GAAP, provides investors with
additional perspective regarding the impact of certain significant
items on EBITDA and facilitates a more direct comparison of its
performance with its competitors. EBITDA and Adjusted EBITDA
are not measurements of financial performance under GAAP.
They should not be considered as an alternative to cash flow from
operating activities or as a measure of liquidity or an alternative
to net income as indicators of our operating performance or any
other measures of performance derived in accordance with GAAP.
PILGRIM'S PRIDE CORPORATION |
Reconciliation of Adjusted EBITDA |
|
|
|
|
|
|
|
|
|
(Unaudited) |
|
Thirteen Weeks Ended |
|
Twenty-Six Weeks Ended |
|
|
June 25, 2017 |
|
June 26, 2016 |
|
June 25, 2017 |
|
June 26, 2016 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In thousands) |
Net income |
|
$ |
234,073 |
|
|
$ |
153,042 |
|
|
$ |
328,536 |
|
|
$ |
271,053 |
|
Add: |
|
|
|
|
|
|
|
|
Interest expense,
net |
|
14,891 |
|
|
10,865 |
|
|
26,975 |
|
|
22,205 |
|
Income tax expense |
|
113,218 |
|
|
78,398 |
|
|
161,119 |
|
|
141,002 |
|
Depreciation and
amortization |
|
57,281 |
|
|
46,293 |
|
|
107,671 |
|
|
88,683 |
|
Minus: |
|
|
|
|
|
|
|
|
Amortization of
capitalized financing costs |
|
997 |
|
|
962 |
|
|
1,947 |
|
|
1,889 |
|
EBITDA |
|
418,466 |
|
|
287,636 |
|
|
622,354 |
|
|
521,054 |
|
Add: |
|
|
|
|
|
|
|
|
Foreign currency
transaction gains |
|
(1,810 |
) |
|
(4,744 |
) |
|
(1,191 |
) |
|
(4,979 |
) |
Restructuring
charges |
|
4,349 |
|
|
— |
|
|
4,349 |
|
|
— |
|
Minus: |
|
|
|
|
|
|
|
|
Net
income (loss) attributable to noncontrolling interest |
|
432 |
|
|
156 |
|
|
974 |
|
|
(204 |
) |
Adjusted EBITDA |
|
$ |
420,573 |
|
|
$ |
282,736 |
|
|
$ |
624,538 |
|
|
$ |
516,279 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The summary unaudited consolidated income statement data for the
twelve months ended June 25, 2017 (the LTM Period) have been
calculated by subtracting the applicable unaudited consolidated
income statement data for the six months ended June 26, 2016 from
the sum of (1) the applicable audited consolidated income statement
data for the year ended December 25, 2016 and (2) the applicable
audited consolidated income statement data for the six months ended
June 25, 2017.
PILGRIM'S PRIDE CORPORATION |
Reconciliation of LTM Adjusted EBITDA |
|
|
|
|
|
|
|
|
|
|
|
(Unaudited) |
|
Thirteen Weeks Ended |
|
Thirteen Weeks Ended |
|
Thirteen Weeks Ended |
|
Thirteen Weeks Ended |
|
LTM Ended |
|
|
September 25, 2016 |
|
December 25, 2016 |
|
March 26, 2017 |
|
June 25, 2017 |
|
June 25, 2017 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In thousands) |
Net income |
|
$ |
98,527 |
|
|
$ |
70,149 |
|
|
$ |
94,463 |
|
|
$ |
234,073 |
|
|
$ |
497,212 |
|
Add: |
|
|
|
|
|
|
|
|
|
|
Interest expense,
net |
|
11,834 |
|
|
10,158 |
|
|
12,084 |
|
|
14,891 |
|
|
48,967 |
|
Income tax expense |
|
51,060 |
|
|
40,844 |
|
|
47,901 |
|
|
113,218 |
|
|
253,023 |
|
Depreciation and
amortization |
|
45,772 |
|
|
46,059 |
|
|
50,390 |
|
|
57,281 |
|
|
199,502 |
|
Minus: |
|
|
|
|
|
|
|
|
|
|
Amortization of
capitalized financing costs |
|
970 |
|
|
972 |
|
|
951 |
|
|
997 |
|
|
3,890 |
|
EBITDA |
|
206,223 |
|
|
166,238 |
|
|
203,887 |
|
|
418,466 |
|
|
994,814 |
|
Add: |
|
|
|
|
|
|
|
|
|
|
Foreign currency
transaction losses (gains) |
|
4,142 |
|
|
4,734 |
|
|
619 |
|
|
(1,810 |
) |
|
7,685 |
|
Restructuring
charges |
|
279 |
|
|
790 |
|
|
— |
|
|
4,349 |
|
|
5,418 |
|
Minus: |
|
|
|
|
|
|
|
|
|
|
Net income (loss)
attributable to noncontrolling interest |
|
(130 |
) |
|
(469 |
) |
|
542 |
|
|
432 |
|
|
375 |
|
Adjusted EBITDA |
|
$ |
210,774 |
|
|
$ |
172,231 |
|
|
$ |
203,964 |
|
|
$ |
420,573 |
|
|
$ |
1,007,542 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA margins have been calculated by taking the relevant
unaudited EBITDA figures, then dividing by Net Revenue for the
applicable period.
PILGRIM'S PRIDE CORPORATION |
Reconciliation of EBITDA Margin |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Unaudited) |
|
Thirteen Weeks Ended |
|
Twenty-Six Weeks Ended |
|
Thirteen Weeks Ended |
|
Twenty-Six Weeks Ended |
|
|
June 25, 2017 |
|
June 26, 2016 |
|
June 25, 2017 |
|
June 26, 2016 |
|
June 25, 2017 |
|
June 26, 2016 |
|
June 25, 2017 |
|
June 26, 2016 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In thousands) |
Net income from
continuing operations |
|
$ |
234,073 |
|
|
$ |
153,042 |
|
|
$ |
328,536 |
|
|
$ |
271,053 |
|
|
10.40 |
% |
|
7.55 |
% |
|
7.69 |
% |
|
6.79 |
% |
Add: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense,
net |
|
14,891 |
|
|
10,865 |
|
|
26,975 |
|
|
22,205 |
|
|
0.66 |
% |
|
0.54 |
% |
|
0.63 |
% |
|
0.56 |
% |
Income tax expense |
|
113,218 |
|
|
78,398 |
|
|
161,119 |
|
|
141,002 |
|
|
5.03 |
% |
|
3.87 |
% |
|
3.77 |
% |
|
3.53 |
% |
Depreciation and
amortization |
|
57,281 |
|
|
46,293 |
|
|
107,671 |
|
|
88,683 |
|
|
2.54 |
% |
|
2.28 |
% |
|
2.52 |
% |
|
2.22 |
% |
Minus: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of
capitalized financing costs |
|
997 |
|
|
962 |
|
|
1,947 |
|
|
1,889 |
|
|
0.04 |
% |
|
0.05 |
% |
|
0.05 |
% |
|
0.05 |
% |
EBITDA |
|
418,466 |
|
|
287,636 |
|
|
622,354 |
|
|
521,054 |
|
|
18.59 |
% |
|
14.19 |
% |
|
14.56 |
% |
|
13.05 |
% |
Add: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign currency
transaction gains |
|
(1,810 |
) |
|
(4,744 |
) |
|
(1,191 |
) |
|
(4,979 |
) |
|
(0.08 |
)% |
|
(0.23 |
)% |
|
(0.03 |
)% |
|
(0.12 |
)% |
Restructuring
charges |
|
4,349 |
|
|
— |
|
|
4,349 |
|
|
— |
|
|
0.19 |
% |
|
— |
% |
|
0.10 |
% |
|
— |
% |
Minus: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
income (loss) attributable to noncontrolling interest |
|
432 |
|
|
156 |
|
|
974 |
|
|
(204 |
) |
|
0.02 |
% |
|
0.01 |
% |
|
0.02 |
% |
|
(0.01 |
)% |
Adjusted EBITDA |
|
$ |
420,573 |
|
|
$ |
282,736 |
|
|
$ |
624,538 |
|
|
$ |
516,279 |
|
|
18.68 |
% |
|
13.95 |
% |
|
14.61 |
% |
|
12.94 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Revenue: |
|
$ |
2,251,604 |
|
|
$ |
2,028,315 |
|
|
$ |
4,272,096 |
|
|
$ |
3,991,252 |
|
|
$ |
2,251,604 |
|
|
$ |
2,028,315 |
|
|
$ |
4,272,096 |
|
|
$ |
3,991,252 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
A reconciliation of net income (loss) attributable to Pilgrim's
Pride Corporation per common diluted share to adjusted net income
(loss) attributable to Pilgrim's Pride Corporation per common
diluted share is as follows:
PILGRIM'S PRIDE CORPORATION |
Reconciliation of Adjusted
Earnings |
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
Thirteen Weeks Ended |
|
Twenty-Six Weeks Ended |
|
|
June 25, 2017 |
|
June 26, 2016 |
|
June 25, 2017 |
|
June 26, 2016 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In thousands, except per share
data) |
Net income attributable
to Pilgrim's Pride Corporation |
|
$ |
233,641 |
|
|
$ |
152,886 |
|
|
$ |
327,562 |
|
|
$ |
271,257 |
|
Loss on early
extinguishment of debt |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
Foreign currency
transaction gains |
|
(1,810 |
) |
|
(4,744 |
) |
|
(1,191 |
) |
|
(4,979 |
) |
Income before loss on
early extinguishment of debt and foreign currency transaction
gains |
|
231,831 |
|
|
148,142 |
|
|
326,371 |
|
|
266,278 |
|
Weighted average
diluted shares of common stock outstanding |
|
248,973 |
|
|
254,944 |
|
|
248,950 |
|
|
255,045 |
|
Income before loss on
early extinguishment of debt and foreign currency transaction
gains per common diluted share |
|
$ |
0.93 |
|
|
$ |
0.58 |
|
|
$ |
1.31 |
|
|
$ |
1.04 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
A reconciliation of GAAP earnings per share (EPS) to adjusted
earnings per share (EPS) is as follows:
PILGRIM'S PRIDE CORPORATION |
Reconciliation of GAAP EPS to Adjusted
EPS |
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
Thirteen Weeks Ended |
|
Twenty-Six Weeks Ended |
|
|
June 25, 2017 |
|
June 26, 2016 |
|
June 25, 2017 |
|
June 26, 2016 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In thousands, except per share
data) |
GAAP EPS |
|
$ |
0.94 |
|
|
$ |
0.60 |
|
|
$ |
1.32 |
|
|
$ |
1.06 |
|
Loss on early
extinguishment of debt |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
Foreign currency
transaction gains |
|
(0.01 |
) |
|
(0.02 |
) |
|
(0.01 |
) |
|
(0.02 |
) |
Adjusted EPS |
|
$ |
0.93 |
|
|
$ |
0.58 |
|
|
$ |
1.31 |
|
|
$ |
1.04 |
|
|
|
|
|
|
|
|
|
|
Weighted average
diluted shares of common stock outstanding |
|
248,973 |
|
|
254,944 |
|
|
248,950 |
|
|
255,045 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net debt is defined as total long term debt less current
maturities, plus current maturities of long term debt and notes
payable, minus cash, cash equivalents and investments in
available-for-sale securities. Net debt is presented because
it is used by management, and we believe it is frequently used by
securities analysts, investors and other parties, in addition to
and not in lieu of debt as presented under GAAP, to compare the
indebtedness of companies. A reconciliation of net debt is as
follows:
PILGRIM'S PRIDE CORPORATION |
Reconciliation of Net Debt |
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
June 25, 2017 |
|
June 26, 2016 |
|
December 25, 2016 |
|
December 27, 2015 |
|
December 28, 2014 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In thousands) |
Long term debt, less
current maturities |
|
$ |
1,404,264 |
|
|
$ |
1,117,979 |
|
|
$ |
1,011,858 |
|
|
$ |
985,509 |
|
|
$ |
3,980 |
|
Add: Current
maturities of long term debt and notes payable |
|
40,098 |
|
|
90 |
|
|
94 |
|
|
28,812 |
|
|
262 |
|
Minus: Cash and
cash equivalents |
|
303,937 |
|
|
41,047 |
|
|
120,328 |
|
|
439,638 |
|
|
576,143 |
|
Net debt (cash
position) |
|
$ |
1,140,425 |
|
|
$ |
1,077,022 |
|
|
$ |
891,624 |
|
|
$ |
574,683 |
|
|
$ |
(571,901 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PILGRIM'S PRIDE CORPORATION |
Supplementary Selected Segment and Geographic
Data |
|
|
|
|
|
|
|
|
|
|
|
Thirteen Weeks Ended |
|
Twenty-Six Weeks Ended |
|
|
June 25, 2017 |
|
June 26, 2016 |
|
June 25, 2017 |
|
June 26, 2016 |
|
|
(Unaudited) |
|
|
|
|
|
|
|
|
(In thousands) |
Sources of net sales by
country of origin: |
|
|
|
|
|
|
|
|
US: |
|
$ |
1,882,142 |
|
|
$ |
1,677,445 |
|
|
$ |
3,618,547 |
|
|
$ |
3,347,726 |
|
Mexico: |
|
369,462 |
|
|
350,870 |
|
|
653,549 |
|
|
643,526 |
|
Total net sales: |
|
$ |
2,251,604 |
|
|
$ |
2,028,315 |
|
|
$ |
4,272,096 |
|
|
$ |
3,991,252 |
|
|
|
|
|
|
|
|
|
|
Sources of cost of
sales by country of origin: |
|
|
|
|
|
|
|
|
US: |
|
$ |
1,547,247 |
|
|
$ |
1,471,269 |
|
|
$ |
3,095,346 |
|
|
$ |
2,925,224 |
|
Mexico: |
|
278,993 |
|
|
270,939 |
|
|
536,205 |
|
|
542,383 |
|
Elimination: |
|
(23 |
) |
|
(24 |
) |
|
(47 |
) |
|
(48 |
) |
Total cost of
sales: |
|
$ |
1,826,217 |
|
|
$ |
1,742,184 |
|
|
$ |
3,631,504 |
|
|
$ |
3,467,559 |
|
|
|
|
|
|
|
|
|
|
Sources of gross profit
by country of origin: |
|
|
|
|
|
|
|
|
US: |
|
$ |
334,894 |
|
|
$ |
206,176 |
|
|
$ |
523,200 |
|
|
$ |
422,502 |
|
Mexico: |
|
90,470 |
|
|
79,931 |
|
|
117,345 |
|
|
101,143 |
|
Elimination: |
|
23 |
|
|
24 |
|
|
47 |
|
|
48 |
|
Total gross
profit: |
|
$ |
425,387 |
|
|
$ |
286,131 |
|
|
$ |
640,592 |
|
|
$ |
523,693 |
|
|
|
|
|
|
|
|
|
|
Sources of operating
income by country of origin: |
|
|
|
|
|
|
|
|
US: |
|
$ |
277,602 |
|
|
$ |
164,494 |
|
|
$ |
411,158 |
|
|
$ |
339,084 |
|
Mexico: |
|
81,777 |
|
|
72,093 |
|
|
100,549 |
|
|
86,253 |
|
Elimination: |
|
23 |
|
|
24 |
|
|
47 |
|
|
48 |
|
Total operating
income: |
|
$ |
359,402 |
|
|
$ |
236,611 |
|
|
$ |
511,754 |
|
|
$ |
425,385 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Contact:
Dunham Winoto
Director, Investor Relations
IRPPC@pilgrims.com
(970) 506-8192
www.pilgrims.com
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