Pilgrim’s Pride Corporation (NASDAQ: PPC) reports fourth quarter
and year-end 2018 financial results.
2018 Highlights
- Adjusted Operating Income margins of 4.2% in U.S., 8.8% in
Mexico and 4.3% in Europe operations, respectively.
- Adjusted EBITDA of $798 million, or a 7.3% margin.
- Portfolio strategy and geographic diversification reducing the
impact of challenging market conditions, specifically in U.S.
commodity chicken. We remain motivated to pursue additional growth
potential and product differentiation in 2019, aligning our
strategic priorities to continue providing stronger platforms for
the future.
- Prepared Foods grew 15% in the U.S. and 33% in Mexico, and is
increasing its momentum, realizing the results of investments made
over the past few years to further widen our product and brand
portfolio, strengthen key customer relationships, and improve
margin consistency.
- Moy Park integration is better than expected; operations and
profitability improving with synergies captured despite headwinds
from feed costs caused by regional drought.
Fourth Quarter Results
- Net Sales of $2.66 billion, -3.1% versus same quarter last
year.
- Adjusted Net Income of $21 million and adjusted EPS of
$0.09.
- Adjusted Operating Income margins of 0.3% in U.S., 5.3% in
Mexico and 3.8% in Europe operations, respectively, adjusted for
non-recurring items related to weather events, Moy Park acquisition
and Exchange Rate.
- Adjusted EBITDA of $111 million, or a 4.2% margin.
|
Unaudited (2), In Millions, Except Per Share and
Percentages |
|
ThirteenWeeksEnded |
|
FourteenWeeksEnded |
|
|
|
Fifty-TwoWeeksEnded |
|
Fifty-ThreeWeeksEnded |
|
|
|
Dec 30, 2018 |
|
Dec 31, 2017 |
|
Y/YChange |
|
Dec 30, 2018 |
|
Dec 31, 2017 |
|
Y/YChange |
Net
Sales |
$2,656.8 |
|
$2,742.4 |
|
-3.1% |
|
$10,937.8 |
|
$10,767.9 |
|
+1.6% |
GAAP
EPS |
$(0.03) |
|
$0.54 |
|
-105.6% |
|
$1.00 |
|
$2.79 |
|
-64.2% |
Operating
Income |
$23.6 |
|
$155.0 |
|
-84.8% |
|
$495.7 |
|
$1,072.3 |
|
-53.8% |
Adjusted
EBITDA (1) |
$111.0 |
|
$241.0 |
|
-53.9% |
|
$798.2 |
|
$1,388.0 |
|
-42.5% |
Adjusted
EBITDA Margin (1) |
4.2% |
|
8.8% |
|
-4.6pts |
|
7.3% |
|
12.9% |
|
-5.6pts |
(1) Reconciliations for non-GAAP measures are provided in
subsequent sections within this release. |
(2) Figures have been adjusted to include full-quarter and
year of Moy Park, in accordance to U.S. GAAP. |
|
“In the U.S. we endured a very challenging environment in
commodity chicken, slower than expected recovery from weather
disruptions at some complexes, partially offset by an improvement
in operating results from Prepared Foods. In Europe we improved the
performance through expected synergies but were impacted by higher
feed inputs as a result of a drought that will be passed to our
prices in coming quarters. Our Mexican operations produced a very
strong first half, a weaker than seasonal Q3, followed by a rebound
in Q4. The diversity of our portfolio of bird sizes, geographical
market exposure, our culture and our people, are what fundamentally
differentiate us from the competition, giving us the potential to
reduce volatility and generate higher margins over time, and the
results for 2018 represented the power of that strategy. As we
begin 2019, conditions in the U.S. commodity markets including
exports are already recovering, supporting OECD-FAO data that over
the longer term chicken as a protein will continue to outperform in
terms of growth potential globally,” stated Bill Lovette, Chief
Executive Officer of Pilgrim's.
“Results from Prepared Foods are accelerating in momentum with a
strong 15% increase in volume in the U.S. and 33% increase in
Mexico, reflecting the investments we made over the past few years
to grow capacities and capabilities to meet customer expectations.
The build out for innovation and marketing to drive future strong
growth continues. We believe the prospects for more growth remain
and the improvement in performance is sustainable. To further
support the growth initiatives, we are also transitioning to a more
innovative package design.”
“We are continuing to improve the performance of our European
(Moy Park) operations. Margins have increased since the acquisition
just a year and a half ago, and are moving in a positive
trajectory. The integration is better than expected and we have
extracted both operating and product synergies with our other
geographical facilities. The cost of feed inputs have increased due
to the drought in Europe and some of this impact will only be
mitigated in coming quarters. However, we have plans in place
which, combined with the success in improving the profitability of
our prior acquisitions, have reaffirmed our belief we have the
methodology and the experienced personnel required to continue
growing the operating and financial performance of the U.K. and
continental Europe business.”
Conference Call Information
A conference call to discuss Pilgrim’s quarterly results will be
held tomorrow, February 14, 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:
https://services.choruscall.com/links/ppc190214.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 May 14, 2019.
About Pilgrim’s Pride
Pilgrim’s employs approximately 52,100 people and operates
chicken processing plants and prepared-foods facilities in 14
states, Puerto Rico, Mexico, the U.K, Ireland and continental
Europe. 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.
|
|
Contact: |
Dunham Winoto |
|
Director, Investor
Relations |
|
IRPPC@pilgrims.com |
|
(970) 506-8192 |
|
www.pilgrims.com |
PILGRIM’S PRIDE CORPORATION |
CONSOLIDATED BALANCE SHEETS |
|
|
|
|
|
|
|
|
|
|
December 30, 2018 |
|
December 31, 2017 |
|
|
|
|
|
|
|
|
|
(In thousands, except share and par value
data) |
Cash and cash
equivalents |
|
$ |
338,386 |
|
|
$ |
581,510 |
|
Restricted
cash and cash equivalents |
|
23,192 |
|
|
8,021 |
|
Trade
accounts and other receivables, less allowance for doubtful
accounts |
|
561,549 |
|
|
565,478 |
|
Accounts
receivable from related parties |
|
1,331 |
|
|
2,951 |
|
Inventories |
|
1,159,519 |
|
|
1,255,070 |
|
Income
taxes receivable |
|
38,479 |
|
|
— |
|
Prepaid
expenses and other current assets |
|
112,023 |
|
|
102,550 |
|
Assets held
for sale |
|
178 |
|
|
708 |
|
Total current assets |
|
2,234,657 |
|
|
2,516,288 |
|
Noncurrent
income taxes receivable |
|
— |
|
|
— |
|
Deferred
tax assets |
|
4,248 |
|
|
— |
|
Other
long-lived assets |
|
16,717 |
|
|
18,165 |
|
Identified
intangible assets, net |
|
564,128 |
|
|
617,163 |
|
Goodwill |
|
949,750 |
|
|
1,001,889 |
|
Property,
plant and equipment, net |
|
2,161,702 |
|
|
2,095,147 |
|
Total assets |
|
$ |
5,931,202 |
|
|
$ |
6,248,652 |
|
|
|
|
|
|
Accounts
payable |
|
$ |
830,059 |
|
|
$ |
733,027 |
|
Accounts
payable to related parties |
|
7,269 |
|
|
2,889 |
|
Revenue
contract liability |
|
33,328 |
|
|
36,607 |
|
Accrued
expenses and other current liabilities |
|
386,941 |
|
|
410,152 |
|
Income
taxes payable |
|
8,221 |
|
|
222,073 |
|
Current
maturities of long-term debt |
|
30,405 |
|
|
47,775 |
|
Total current liabilities |
|
1,296,223 |
|
|
1,452,523 |
|
Long-term
debt, less current maturities |
|
2,295,190 |
|
|
2,635,617 |
|
Noncurrent
income taxes payable |
|
7,731 |
|
|
— |
|
Deferred
tax liabilities |
|
237,422 |
|
|
208,492 |
|
Other
long-term liabilities |
|
75,051 |
|
|
96,359 |
|
Total liabilities |
|
3,911,617 |
|
|
4,392,991 |
|
Commitments
and contingencies |
|
|
|
|
Preferred
stock, $.01 par value, 50,000,000 shares authorized; no shares
issued |
|
— |
|
|
— |
|
Common
stock, $.01 par value, 800,000,000 shares authorized; 260,396,032
and 260,167,881 shares issued at year-end 2018 and year-end
2017, respectively; 248,965,081 and 248,752,508 shares outstanding
at year-end 2018 and year-end 2017, respectively |
|
2,604 |
|
|
2,602 |
|
Treasury
stock, at cost, 11,430,951 shares and 11,415,373 shares at year-end
2018 and year-end 2017, respectively |
|
(231,994 |
) |
|
(231,758 |
) |
Additional
paid-in capital |
|
1,945,136 |
|
|
1,932,509 |
|
Retained
earnings |
|
421,888 |
|
|
173,943 |
|
Accumulated
other comprehensive loss |
|
(127,834 |
) |
|
(31,140 |
) |
Total Pilgrim’s Pride Corporation stockholders’ equity |
|
2,009,800 |
|
|
1,846,156 |
|
Noncontrolling interest |
|
9,785 |
|
|
9,505 |
|
Total stockholders’ equity |
|
2,019,585 |
|
|
1,855,661 |
|
Total liabilities and stockholders' equity |
|
$ |
5,931,202 |
|
|
$ |
6,248,652 |
|
PILGRIM’S PRIDE CORPORATION |
CONSOLIDATED AND COMBINED STATEMENTS OF
INCOME |
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Thirteen Weeks Ended |
|
Fourteen Weeks Ended |
|
Fifty-Two Weeks Ended |
|
Fifty-Three Weeks Ended |
|
|
December 30, 2018 |
|
December 31, 2017 |
|
December 30, 2018 |
|
December 31, 2017 |
|
|
|
|
|
|
|
|
|
|
|
(In thousands, except per share
data) |
Net sales |
|
$ |
2,656,789 |
|
|
$ |
2,742,352 |
|
|
$ |
10,937,784 |
|
|
$ |
10,767,863 |
|
Cost of
sales |
|
2,544,941 |
|
|
2,480,548 |
|
|
10,094,308 |
|
|
9,296,249 |
|
Gross profit |
|
111,848 |
|
|
261,804 |
|
|
843,476 |
|
|
1,471,614 |
|
Selling,
general and administrative expense |
|
85,629 |
|
|
105,508 |
|
|
343,025 |
|
|
389,517 |
|
Administrative restructuring charges |
|
2,584 |
|
|
1,279 |
|
|
4,765 |
|
|
9,775 |
|
Operating income |
|
23,635 |
|
|
155,017 |
|
|
495,686 |
|
|
1,072,322 |
|
Interest
expense, net of capitalized interest |
|
36,911 |
|
|
40,868 |
|
|
162,812 |
|
|
107,183 |
|
Interest
income |
|
(3,146 |
) |
|
(4,130 |
) |
|
(13,811 |
) |
|
(7,730 |
) |
Foreign
currency transaction losses (gains) |
|
19,962 |
|
|
(159 |
) |
|
17,160 |
|
|
(2,659 |
) |
Miscellaneous, net |
|
(921 |
) |
|
(1,340 |
) |
|
(2,702 |
) |
|
(6,538 |
) |
Income before income taxes |
|
(29,171 |
) |
|
119,778 |
|
|
332,227 |
|
|
982,066 |
|
Income tax
expense |
|
(20,944 |
) |
|
(14,147 |
) |
|
85,423 |
|
|
263,899 |
|
Net income |
|
(8,227 |
) |
|
133,925 |
|
|
246,804 |
|
|
718,167 |
|
Less: Net
income from Granite Holdings Sarl prior to acquisition by Pilgrim's
Pride Corporation |
|
— |
|
|
— |
|
|
— |
|
|
23,486 |
|
Less: Net
income (loss) attributable to noncontrolling interests |
|
(903 |
) |
|
(412 |
) |
|
(1,141 |
) |
|
102 |
|
Net income (loss) attributable to Pilgrim’s Pride
Corporation |
|
$ |
(7,324 |
) |
|
$ |
134,337 |
|
|
$ |
247,945 |
|
|
$ |
694,579 |
|
|
|
|
|
|
|
|
|
|
Weighted average shares of common stock
outstanding: |
|
|
|
|
|
|
|
|
Basic |
|
248,980 |
|
|
248,753 |
|
|
248,945 |
|
|
248,738 |
|
Effect of dilutive common stock equivalents |
|
386 |
|
|
241 |
|
|
204 |
|
|
233 |
|
Diluted |
|
249,366 |
|
|
248,994 |
|
|
249,149 |
|
|
248,971 |
|
|
|
|
|
|
|
|
|
|
Net income attributable to Pilgrim's Pride Corporation per
share of common stock outstanding: |
|
|
|
|
|
|
|
|
Basic |
|
$ |
(0.03 |
) |
|
$ |
0.54 |
|
|
$ |
1.00 |
|
|
$ |
2.79 |
|
Diluted |
|
$ |
(0.03 |
) |
|
$ |
0.54 |
|
|
$ |
1.00 |
|
|
$ |
2.79 |
|
PILGRIM’S PRIDE CORPORATION |
CONSOLIDATED AND COMBINED STATEMENTS OF CASH
FLOWS |
|
|
|
Fifty-Two Weeks Ended |
|
Fifty-Three Weeks Ended |
|
|
December 30, 2018 |
|
December 31, 2017 |
|
|
|
|
|
|
|
(In thousands) |
Cash flows from
operating activities: |
|
|
|
|
|
|
|
|
Net
income |
|
$ |
246,804 |
|
|
$ |
718,167 |
|
Adjustments
to reconcile net income to cash provided by operating
activities: |
|
|
|
|
Depreciation and amortization |
|
279,657 |
|
|
277,792 |
|
Asset impairment |
|
3,504 |
|
|
5,156 |
|
Foreign currency transaction losses (gains) related to
borrowing arrangements |
|
5,267 |
|
|
(1,387 |
) |
Loss on early extinguishment of debt recognized as a component
of interest expense |
|
15,818 |
|
|
— |
|
Amortization of bond premium |
|
(668 |
) |
|
(180 |
) |
Accretion of bond discount |
|
812 |
|
|
— |
|
Gain on property disposals |
|
(1,889 |
) |
|
(506 |
) |
Gain on equity method investments |
|
(63 |
) |
|
(59 |
) |
Share-based compensation |
|
13,153 |
|
|
3,020 |
|
Deferred income tax expense (benefit) |
|
32,540 |
|
|
(49,963 |
) |
Changes in operating assets and liabilities: |
|
|
|
|
Trade accounts and other receivables |
|
(10,918 |
) |
|
(82,169 |
) |
Inventories |
|
83,174 |
|
|
(207,399 |
) |
Prepaid expenses and other current assets |
|
(11,612 |
) |
|
(14,827 |
) |
Accounts payable and accrued expenses |
|
86,834 |
|
|
(22,827 |
) |
Income taxes |
|
(248,470 |
) |
|
188,120 |
|
Long-term pension and other postretirement obligations |
|
(6,751 |
) |
|
(10,864 |
) |
Other |
|
4,458 |
|
|
(753 |
) |
Cash provided by operating activities |
|
491,650 |
|
|
801,321 |
|
Cash flows from investing activities: |
|
|
|
|
Acquisitions of property, plant and equipment |
|
(348,666 |
) |
|
(339,872 |
) |
Purchase of
acquired business, net of cash acquired |
|
— |
|
|
(658,520 |
) |
Proceeds
from property disposals |
|
9,775 |
|
|
4,475 |
|
Proceeds
from settlement of life insurance contract |
|
— |
|
|
1,845 |
|
Cash used in investing activities |
|
(338,891 |
) |
|
(992,072 |
) |
Cash flows from financing activities: |
|
|
|
|
Payment of
note payable to affiliate |
|
— |
|
|
(753,512 |
) |
Proceeds
from revolving line of credit and long-term borrowings |
|
748,382 |
|
|
1,871,818 |
|
Payments on
revolving line of credit, long-term borrowings and capital lease
obligations |
|
(1,117,009 |
) |
|
(628,677 |
) |
Proceeds
from equity contribution under Tax Sharing Agreement between JBS
USA Food Company Holdings and Pilgrim's Pride Corporation |
|
5,558 |
|
|
5,038 |
|
Payment on
early extinguishment of debt |
|
(9,781 |
) |
|
— |
|
Capital
contributions to subsidiary by noncontrolling stockholders |
|
1,421 |
|
|
— |
|
Payment of
capitalized loan costs |
|
(12,581 |
) |
|
(13,631 |
) |
Purchase of
common stock under share repurchase program |
|
(236 |
) |
|
(14,641 |
) |
Cash provided by (used in) financing activities |
|
(384,246 |
) |
|
466,395 |
|
Effect of
exchange rate changes on cash and cash equivalents |
|
3,534 |
|
|
16,364 |
|
Increase in
cash and cash equivalents |
|
(227,953 |
) |
|
292,008 |
|
Cash and
cash equivalents, beginning of period |
|
589,531 |
|
|
297,523 |
|
Cash and
cash equivalents, end of period |
|
$ |
361,578 |
|
|
$ |
589,531 |
|
Supplemental Disclosure Information: |
|
|
|
|
Interest paid (net of amount capitalized) |
|
$ |
154,627 |
|
|
$ |
81,260 |
|
Income taxes paid |
|
253,932 |
|
|
122,956 |
|
|
|
|
|
|
|
|
PILGRIM’S PRIDE
CORPORATIONSelected 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 |
|
Fourteen Weeks Ended |
|
Fifty-Two Weeks Ended |
|
Fifty-Three Weeks Ended |
|
|
December 30, 2018 |
|
December 31, 2017 |
|
December 30, 2018 |
|
December 31, 2017 |
|
|
|
|
|
|
|
|
|
|
|
(In thousands) |
Net income |
|
$ |
(8,227 |
) |
|
$ |
133,925 |
|
|
$ |
246,804 |
|
|
$ |
718,167 |
|
Add: |
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense, net |
|
33,765 |
|
|
36,738 |
|
|
149,001 |
|
|
99,453 |
|
Income tax expense (benefit) |
|
(20,944 |
) |
|
(14,147 |
) |
|
85,423 |
|
|
263,899 |
|
Depreciation and amortization |
|
68,207 |
|
|
73,167 |
|
|
279,657 |
|
|
277,792 |
|
Minus: |
|
|
|
|
|
|
|
|
Amortization of capitalized financing costs |
|
1,232 |
|
|
2,839 |
|
|
5,569 |
|
|
5,968 |
|
EBITDA |
|
71,569 |
|
|
226,844 |
|
|
755,316 |
|
|
1,353,343 |
|
Add: |
|
|
|
|
|
|
|
|
Foreign currency transaction losses (gains) |
|
19,962 |
|
|
(159 |
) |
|
17,160 |
|
|
(2,659 |
) |
Acquisition charges |
|
— |
|
|
4,567 |
|
|
320 |
|
|
19,606 |
|
Restructuring charges |
|
2,584 |
|
|
1,279 |
|
|
4,765 |
|
|
9,775 |
|
Other non-recurring losses and expenses |
|
16,023 |
|
|
8,066 |
|
|
19,485 |
|
|
8,066 |
|
Minus: |
|
|
|
|
|
|
|
|
Net income (loss) attributable to noncontrolling interest |
|
(903 |
) |
|
(412 |
) |
|
(1,141 |
) |
|
102 |
|
Adjusted
EBITDA |
|
$ |
111,041 |
|
|
$ |
241,009 |
|
|
$ |
798,187 |
|
|
$ |
1,388,029 |
|
|
The summary unaudited consolidated income statement
data for the twelve months ended December 30, 2018 (the LTM Period)
have been calculated by summing each of the unaudited thirteen week
periods within the audited fifty-two week period ended December 30,
2018.
|
PILGRIM'S PRIDE CORPORATION |
Reconciliation of LTM Adjusted
EBITDA |
|
(Unaudited) |
|
Thirteen Weeks Ended |
|
Thirteen Weeks Ended |
|
Thirteen Weeks Ended |
|
Thirteen Weeks Ended |
|
LTM Ended |
|
|
April 1, 2018 |
|
July 1, 2018 |
|
September 30, 2018 |
|
December 30, 2018 |
|
December 30, 2018 |
|
|
|
|
|
|
|
|
|
|
|
|
|
(In thousands) |
Net income |
|
$ |
119,224 |
|
|
$ |
106,344 |
|
|
$ |
29,463 |
|
|
$ |
(8,227 |
) |
|
$ |
246,804 |
|
Add: |
|
|
|
|
|
|
|
|
|
|
Interest
expense, net |
|
48,710 |
|
|
35,433 |
|
|
31,093 |
|
|
33,765 |
|
|
149,001 |
|
Income
tax expense (benefit) |
|
36,997 |
|
|
38,522 |
|
|
30,848 |
|
|
(20,944 |
) |
|
85,423 |
|
Depreciation and amortization |
|
69,201 |
|
|
70,278 |
|
|
71,971 |
|
|
68,207 |
|
|
279,657 |
|
Minus: |
|
|
|
|
|
|
|
|
|
|
Amortization of capitalized financing costs |
|
940 |
|
|
2,453 |
|
|
944 |
|
|
1,232 |
|
|
5,569 |
|
EBITDA |
|
273,192 |
|
|
248,124 |
|
|
162,431 |
|
|
71,569 |
|
|
755,316 |
|
Add: |
|
|
|
|
|
|
|
|
|
|
Foreign
currency transaction losses (gains) |
|
(1,721 |
) |
|
5,630 |
|
|
(6,711 |
) |
|
19,962 |
|
|
17,160 |
|
Acquisition charges |
|
179 |
|
|
125 |
|
|
16 |
|
|
— |
|
|
320 |
|
Restructuring charges |
|
789 |
|
|
1,135 |
|
|
257 |
|
|
2,584 |
|
|
4,765 |
|
Other
non-recurring losses and expenses |
|
— |
|
|
3,298 |
|
|
164 |
|
|
16,023 |
|
|
19,485 |
|
Minus: |
|
|
|
|
|
|
|
|
|
|
Net
income (loss) attributable to noncontrolling interest |
|
(194 |
) |
|
(197 |
) |
|
153 |
|
|
(903 |
) |
|
(1,141 |
) |
Adjusted EBITDA |
|
$ |
272,633 |
|
|
$ |
258,509 |
|
|
$ |
156,004 |
|
|
$ |
111,041 |
|
|
$ |
798,187 |
|
PILGRIM'S PRIDE CORPORATION |
Reconciliation of EBITDA Margin |
|
(Unaudited) |
|
Thirteen Weeks Ended |
|
Fourteen Weeks Ended |
|
Fifty-Two Weeks Ended |
|
Fifty-Three Weeks Ended |
|
Thirteen Weeks Ended |
|
Fourteen Weeks Ended |
|
Fifty-Two Weeks Ended |
|
Fifty-Three Weeks Ended |
|
|
December 30, 2018 |
|
December 31, 2017 |
|
December 30, 2018 |
|
December 31, 2017 |
|
December 30, 2018 |
|
December 31, 2017 |
|
December 30, 2018 |
|
December 31, 2017 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In thousands) |
Net income |
|
$ |
(8,227 |
) |
|
$ |
133,925 |
|
|
$ |
246,804 |
|
|
$ |
718,167 |
|
|
(0.31 |
)% |
|
4.88 |
% |
|
2.26 |
% |
|
6.67 |
% |
Add: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
expense, net |
|
33,765 |
|
|
36,738 |
|
|
149,001 |
|
|
99,453 |
|
|
1.27 |
% |
|
1.34 |
% |
|
1.36 |
% |
|
0.92 |
% |
Income
tax expense (benefit) |
|
(20,944 |
) |
|
(14,147 |
) |
|
85,423 |
|
|
263,899 |
|
|
(0.79 |
)% |
|
(0.52 |
)% |
|
0.78 |
% |
|
2.45 |
% |
Depreciation and amortization |
|
68,207 |
|
|
73,167 |
|
|
279,657 |
|
|
277,792 |
|
|
2.57 |
% |
|
2.67 |
% |
|
2.56 |
% |
|
2.58 |
% |
Minus: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of capitalized financing costs |
|
1,232 |
|
|
2,839 |
|
|
5,569 |
|
|
5,968 |
|
|
0.05 |
% |
|
0.10 |
% |
|
0.05 |
% |
|
0.06 |
% |
EBITDA |
|
71,569 |
|
|
226,844 |
|
|
755,316 |
|
|
1,353,343 |
|
|
2.69 |
% |
|
8.27 |
% |
|
6.91 |
% |
|
12.57 |
% |
Add: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign
currency transaction losses (gains) |
|
19,962 |
|
|
(159 |
) |
|
17,160 |
|
|
(2,659 |
) |
|
0.75 |
% |
|
(0.01 |
)% |
|
0.16 |
% |
|
(0.02 |
)% |
Acquisition charges |
|
— |
|
|
4,567 |
|
|
320 |
|
|
19,606 |
|
|
— |
% |
|
0.17 |
% |
|
— |
% |
|
0.18 |
% |
Restructuring charges |
|
2,584 |
|
|
1,279 |
|
|
4,765 |
|
|
9,775 |
|
|
0.10 |
% |
|
0.05 |
% |
|
0.04 |
% |
|
0.09 |
% |
Other
non-recurring losses and expenses |
|
16,023 |
|
|
8,066 |
|
|
19,485 |
|
|
8,066 |
|
|
0.60 |
% |
|
0.29 |
% |
|
0.18 |
% |
|
0.07 |
% |
Minus: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
income (loss) attributable to noncontrolling interest |
|
(903 |
) |
|
(412 |
) |
|
(1,141 |
) |
|
102 |
|
|
(0.03 |
)% |
|
(0.02 |
)% |
|
(0.01 |
)% |
|
— |
% |
Adjusted EBITDA |
|
$ |
111,041 |
|
|
$ |
241,009 |
|
|
$ |
798,187 |
|
|
$ |
1,388,029 |
|
|
4.18 |
% |
|
8.79 |
% |
|
7.30 |
% |
|
12.89 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Revenue: |
|
$ |
2,656,789 |
|
|
$ |
2,742,352 |
|
|
$ |
10,937,784 |
|
|
$ |
10,767,863 |
|
|
$ |
2,656,789 |
|
|
$ |
2,742,352 |
|
|
$ |
10,937,784 |
|
|
$ |
10,767,863 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
A reconciliation of GAAP operating income to adjusted operating
income is as follows:
|
PILGRIM'S PRIDE CORPORATION |
Reconciliation of Adjusted Operating
Income |
(Unaudited) |
|
|
Thirteen Weeks Ended |
|
Fourteen Weeks Ended |
|
Fifty-Two Weeks Ended |
|
Fifty-Three Weeks Ended |
|
December 30, 2018 |
|
December 31, 2017 |
|
December 30, 2018 |
|
December 31, 2017 |
|
|
|
|
|
|
|
|
|
(In thousands) |
GAAP operating income
(U.S. operations) |
$ |
(9,579 |
) |
|
$ |
122,370 |
|
|
$ |
291,381 |
|
|
$ |
841,491 |
|
Administrative restructuring charges |
(41 |
) |
|
529 |
|
|
2,140 |
|
|
9,025 |
|
Acquisition charges |
— |
|
|
4,567 |
|
|
320 |
|
|
19,606 |
|
Other
non-recurring losses and expenses |
14,867 |
|
|
8,066 |
|
|
14,867 |
|
|
8,066 |
|
Adjusted
operating income (U.S. operations) |
$ |
5,247 |
|
|
$ |
135,532 |
|
|
$ |
308,708 |
|
|
$ |
878,188 |
|
|
|
|
|
|
|
|
|
Adjusted
operating income margin (U.S. operations) |
0.29 |
% |
|
7.19 |
% |
|
4.16 |
% |
|
11.80 |
% |
|
|
|
|
|
|
|
|
GAAP
operating income (Mexico operations) |
$ |
17,137 |
|
|
$ |
7,390 |
|
|
$ |
119,649 |
|
|
$ |
153,631 |
|
Foreign
exchange |
— |
|
|
6,100 |
|
|
— |
|
|
(13,000 |
) |
Adjusted
operating income (Mexico operations) |
$ |
17,137 |
|
|
$ |
13,490 |
|
|
$ |
119,649 |
|
|
$ |
140,631 |
|
|
|
|
|
|
|
|
|
Adjusted
operating income margin (Mexico operations) |
5.33 |
% |
|
4.04 |
% |
|
8.78 |
% |
|
10.59 |
% |
|
|
|
|
|
|
|
|
GAAP
operating income (Europe operations) |
$ |
15,979 |
|
|
$ |
25,231 |
|
|
$ |
84,524 |
|
|
$ |
77,105 |
|
Administrative restructuring charges |
2,625 |
|
|
750 |
|
|
2,625 |
|
|
750 |
|
Other
non-recurring losses and expenses |
1,156 |
|
|
— |
|
|
4,618 |
|
|
— |
|
Adjusted
operating income (Europe operations) |
$ |
19,760 |
|
|
$ |
25,981 |
|
|
$ |
91,767 |
|
|
$ |
77,855 |
|
|
|
|
|
|
|
|
|
Adjusted
operating income margin (Europe operations) |
3.84 |
% |
|
4.97 |
% |
|
4.27 |
% |
|
3.90 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
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 Net
Income |
(Unaudited) |
|
|
Thirteen Weeks Ended |
|
Fourteen Weeks Ended |
|
Fifty-Two Weeks Ended |
|
Fifty-Three Weeks Ended |
|
December 30, 2018 |
|
December 31, 2017 |
|
December 30, 2018 |
|
December 31, 2017 |
|
|
|
|
|
|
|
|
|
(In thousands, except per share
data) |
Net income (loss)
attributable to Pilgrim's Pride Corporation |
$ |
(7,324 |
) |
|
$ |
134,337 |
|
|
$ |
247,945 |
|
|
$ |
694,579 |
|
Adjustments, net of tax: |
|
|
|
|
|
|
|
|
|
|
|
Loss on early extinguishment of debt |
— |
|
|
— |
|
|
12,449 |
|
|
113 |
|
Acquisition and restructuring charges |
1,919 |
|
|
— |
|
|
3,778 |
|
|
14,282 |
|
Other non-recurring losses and expenses |
11,903 |
|
|
— |
|
|
14,475 |
|
|
— |
|
Foreign currency transaction losses (gains) |
14,829 |
|
|
(107 |
) |
|
12,748 |
|
|
(1,802 |
) |
|
$ |
21,327 |
|
|
$ |
134,230 |
|
|
$ |
291,395 |
|
|
$ |
707,172 |
|
U.S. Tax
Cuts & Jobs Act transition tax |
— |
|
|
— |
|
|
26,400 |
|
|
— |
|
Adjusted
net income (loss) |
$ |
21,327 |
|
|
$ |
134,230 |
|
|
$ |
317,795 |
|
|
$ |
707,172 |
|
Weighted
average diluted shares of common stock outstanding |
249,366 |
|
|
248,994 |
|
|
249,149 |
|
|
248,971 |
|
Adjusted
net income (loss) per common diluted share |
$ |
0.09 |
|
|
$ |
0.54 |
|
|
$ |
1.28 |
|
|
$ |
2.84 |
|
|
A reconciliation of GAAP to non-GAAP financial measures. Net
income (loss) per share is calculated by dividing the net income
(loss) attributable to Pilgrim's Pride Corporation stockholders by
the weighted average number of diluted shares.
|
PILGRIM'S PRIDE CORPORATION |
Reconciliation of GAAP EPS to Adjusted
EPS |
(Unaudited) |
|
|
Thirteen Weeks Ended |
|
Fourteen Weeks Ended |
|
Fifty-Two Weeks Ended |
|
Fifty-Three Weeks Ended |
|
December 30, 2018 |
|
December 31, 2017 |
|
December 30, 2018 |
|
December 31, 2017 |
|
|
|
|
|
|
|
|
|
(In thousands, except per share
data) |
GAAP EPS |
$ |
(0.03 |
) |
|
$ |
0.54 |
|
|
$ |
1.00 |
|
|
$ |
2.79 |
|
Adjustments, net of tax: |
|
|
|
|
|
|
|
|
|
|
|
Loss on early extinguishment of debt |
— |
|
|
— |
|
|
0.05 |
|
|
— |
|
Acquisition and restructuring charges |
0.01 |
|
|
— |
|
|
0.02 |
|
|
0.06 |
|
Other non-recurring losses and expenses |
0.05 |
|
|
— |
|
|
0.05 |
|
|
— |
|
Foreign currency transaction losses (gains) |
0.06 |
|
|
— |
|
|
0.05 |
|
|
(0.01 |
) |
|
$ |
0.09 |
|
|
$ |
0.54 |
|
|
$ |
1.17 |
|
|
$ |
2.84 |
|
U.S. Tax
Cuts & Jobs Act transition tax |
— |
|
|
— |
|
|
0.11 |
|
|
— |
|
Adjusted
EPS |
$ |
0.09 |
|
|
$ |
0.54 |
|
|
$ |
1.28 |
|
|
$ |
2.84 |
|
|
|
|
|
|
|
|
|
Weighted
average diluted shares of common stock outstanding |
249,366 |
|
|
248,994 |
|
|
249,149 |
|
|
248,971 |
|
PILGRIM'S PRIDE CORPORATION |
Supplementary Selected Segment and Geographic
Data |
(Unaudited) |
|
|
|
Thirteen Weeks Ended |
|
Fourteen Weeks Ended |
|
Fifty-Two Weeks Ended |
|
Fifty-Three Weeks Ended |
|
|
December 30, 2018 |
|
December 31, 2017 |
|
December 30, 2018 |
|
December 31, 2017 |
|
|
|
|
|
|
|
|
|
|
|
(In thousands) |
Sources of net sales by
country of origin: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. |
|
$ |
1,820,952 |
|
|
$ |
1,886,133 |
|
|
$ |
7,425,661 |
|
|
$ |
7,443,222 |
|
Europe |
|
514,541 |
|
|
522,465 |
|
|
2,148,666 |
|
|
1,996,319 |
|
Mexico |
|
321,296 |
|
|
333,754 |
|
|
1,363,457 |
|
|
1,328,322 |
|
Total net
sales |
|
$ |
2,656,789 |
|
|
$ |
2,742,352 |
|
|
$ |
10,937,784 |
|
|
$ |
10,767,863 |
|
|
|
|
|
|
|
|
|
|
Sources of
cost of sales by country of origin: |
|
|
|
|
|
|
|
|
U.S. |
|
$ |
1,772,730 |
|
|
$ |
1,691,586 |
|
|
$ |
6,909,779 |
|
|
$ |
6,348,411 |
|
Europe |
|
476,844 |
|
|
472,016 |
|
|
1,977,838 |
|
|
1,808,139 |
|
Mexico |
|
295,465 |
|
|
316,972 |
|
|
1,206,823 |
|
|
1,139,794 |
|
Elimination |
|
(98 |
) |
|
(26 |
) |
|
(132 |
) |
|
(95 |
) |
Total cost
of sales |
|
$ |
2,544,941 |
|
|
$ |
2,480,548 |
|
|
$ |
10,094,308 |
|
|
$ |
9,296,249 |
|
|
|
|
|
|
|
|
|
|
Sources of
gross profit by country of origin: |
|
|
|
|
|
|
|
|
U.S. |
|
$ |
48,222 |
|
|
$ |
194,549 |
|
|
$ |
515,882 |
|
|
$ |
1,094,811 |
|
Europe |
|
37,697 |
|
|
50,446 |
|
|
170,828 |
|
|
188,180 |
|
Mexico |
|
25,831 |
|
|
16,783 |
|
|
156,634 |
|
|
188,528 |
|
Elimination |
|
98 |
|
|
26 |
|
|
132 |
|
|
95 |
|
Total
gross profit |
|
$ |
111,848 |
|
|
$ |
261,804 |
|
|
$ |
843,476 |
|
|
$ |
1,471,614 |
|
|
|
|
|
|
|
|
|
|
Sources of
operating income by country of origin: |
|
|
|
|
|
|
|
|
U.S. |
|
$ |
(9,579 |
) |
|
$ |
122,370 |
|
|
$ |
291,381 |
|
|
$ |
841,491 |
|
Europe |
|
15,979 |
|
|
25,231 |
|
|
84,524 |
|
|
77,105 |
|
Mexico |
|
17,137 |
|
|
7,390 |
|
|
119,649 |
|
|
153,631 |
|
Elimination |
|
98 |
|
|
26 |
|
|
132 |
|
|
95 |
|
Total
operating income |
|
$ |
23,635 |
|
|
$ |
155,017 |
|
|
$ |
495,686 |
|
|
$ |
1,072,322 |
|
|
Pilgrims Pride (NASDAQ:PPC)
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From Mar 2024 to Apr 2024
Pilgrims Pride (NASDAQ:PPC)
Historical Stock Chart
From Apr 2023 to Apr 2024