Pilgrim’s Pride Corporation (NASDAQ: PPC) reports second quarter
2019 financial results.
Second Quarter Highlights
- Net Sales of $2.84 billion.
- Net Income of $170.1 million.
- Operating Income margins of 9.8% in U.S., 17.5% in Mexico and
4.5% in Europe operations, respectively.
- Adjusted EBITDA of $349.3 million (or a 12.3% margin), and
Adjusted EPS of $0.69.
- U.S. portfolio continues to deliver strong results in our
differentiated segments, while more market features and promotional
activity of chicken supported better demand in the commodity
segment. We continue to evolve our well-balanced portfolio to
further differentiate our products and brands, strengthen Key
Customer relationships, and improve margin consistency.
- Strong market recovery in Mexico as growing conditions of
chicken reverted back to normal and less competing proteins,
driving chicken demand and prices higher. Diversification into
premium Pilgrim’s brand is gaining momentum and producing strong
results while significant growth in Prepared Foods remains.
- European operations mitigating the impact of recent input cost
challenges. Along with continuous operational improvements, the
implementation of our Key Customer strategy has enhanced the
ability to reflect input cost changes through adjustments within
our pricing models.
Unaudited, In
Millions, Except Per Share and Percentages |
|
|
Thirteen Weeks Ended |
Thirteen Weeks Ended |
|
|
Twenty-Six Weeks Ended |
Twenty-Six Weeks Ended |
|
|
|
June 30, 2019 |
|
July 1, 2018 |
|
Y/Y Change |
|
June 30, 2019 |
|
July 1, 2018 |
|
Y/Y Change |
Net Sales |
$2,843.1 |
|
$2,836.7 |
|
+0.2% |
|
$5,567.8 |
|
$5,583.4 |
|
-0.3% |
GAAP EPS |
$0.68 |
|
$0.43 |
|
+58.1% |
|
$1.02 |
|
$0.91 |
|
+12.1% |
Operating Income |
$279.6 |
|
$185.1 |
|
+51.1% |
|
$416.6 |
|
$386.7 |
|
+7.7% |
Adjusted EBITDA (1) |
$349.3 |
|
$259.3 |
|
+34.7% |
|
$553.8 |
|
$531.1 |
|
+4.3% |
Adjusted EBITDA Margin
(1) |
12.3% |
|
9.2% |
|
+3.1pts |
|
10.0% |
|
9.5% |
|
+0.5pts |
(1)
Reconciliations for non-GAAP measures are provided in subsequent
sections within this release. |
“After a very challenging market in Q2 of last year, we
experienced a much better environment in the U.S. during Q2 2019,
particularly in commodity large bird deboning, while feature
activities at retailers and QSRs returned to seasonal levels.
Large-bird cutout tracked much closer to the five-year average,
driven by strengths in wings, leg quarters, and tenders. We remain
committed to our Key Customer strategy, which is relevant to our
growth. Revenues from Key Customers have more than doubled over the
last eight years, reducing our relative dependency on pure
commodity sales and reducing volatility. Opportunities for
additional growth remain available. We will continue to invest to
further differentiate our portfolio, and increase our capacities
and capabilities to meet customer expectations. We expect value
added, differentiated products to account for a significantly
larger portion of our total results over the next few years as we
continue to reduce the volatility of our commodity sales mix,”
stated Jayson Penn, Chief Executive Officer of Pilgrim's.
“Conditions in Mexico significantly rebounded from a
counter-seasonally weak Q1. A return to much more normal growing
conditions together with strong demand drove a very positive price
reaction throughout the quarter. The availability of imported pork
from the U.S. has also significantly diminished, and presented much
less competition to demand for chicken. Our Prepared Foods have
continued to grow at a double digit rate and are generating great
results under both premium Pilgrim’s and Del Dia brands to drive
the evolution of our Mexican portfolio towards more differentiated,
higher-value products and margin expansion.”
“Our European operations have started to overcome recent input
cost challenges and generated improving results throughout Q2.
While pressure from wheat prices has been reduced, increased
implementation of our Key Customer strategy also enabled us to
better reflect input cost increases by adjusting our pricing models
compared to before. Along with additional improvements in
operational efficiencies, we exited Q2 with a stronger EBIT
performance than when we began, and we expect this momentum to
continue into the second half of the year.”
Conference Call Information
A conference call to discuss Pilgrim’s quarterly results will be
held tomorrow, August 1, 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/ppc190801.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 1, 2019.
About Pilgrim’s Pride
Pilgrim’s employs approximately 52,600 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 |
CONDENSED CONSOLIDATED BALANCE SHEETS |
|
|
|
June 30, 2019 |
|
December 30, 2018 |
|
|
(Unaudited) |
|
|
|
(In thousands) |
Cash and cash equivalents |
|
$ |
|
538,227 |
|
|
$ |
338,386 |
|
Restricted cash and
cash equivalents |
|
33,379 |
|
|
23,192 |
|
Trade accounts and
other receivables, less allowance for doubtful accounts |
|
582,296 |
|
|
561,549 |
|
Accounts receivable
from related parties |
|
957 |
|
|
1,331 |
|
Inventories |
|
1,186,655 |
|
|
1,159,519 |
|
Income taxes
receivable |
|
22,273 |
|
|
38,479 |
|
Prepaid expenses and
other current assets |
|
113,409 |
|
|
112,023 |
|
Assets held for
sale |
|
146 |
|
|
178 |
|
Total current assets |
|
2,477,342 |
|
|
2,234,657 |
|
Deferred tax
assets |
|
4,321 |
|
|
4,248 |
|
Other long-lived
assets |
|
15,289 |
|
|
16,717 |
|
Identified intangible
assets, net |
|
552,922 |
|
|
564,128 |
|
Goodwill |
|
949,869 |
|
|
949,750 |
|
Operating lease
assets, net |
|
317,963 |
|
|
— |
|
Property, plant and
equipment, net |
|
2,210,212 |
|
|
2,161,702 |
|
Total assets |
|
$ |
6,527,918 |
|
|
$ |
5,931,202 |
|
|
|
|
|
|
Accounts payable |
|
$ |
816,126 |
|
|
$ |
830,059 |
|
Accounts payable to
related parties |
|
5,938 |
|
|
7,269 |
|
Revenue contract
liability |
|
23,016 |
|
|
33,328 |
|
Accrued expenses and
other current liabilities |
|
508,337 |
|
|
386,941 |
|
Income taxes
payable |
|
8,930 |
|
|
8,221 |
|
Current maturities of
long-term debt |
|
30,282 |
|
|
30,405 |
|
Total current liabilities |
|
1,392,629 |
|
|
1,296,223 |
|
Noncurrent operating
lease liability, less current maturities |
|
243,661 |
|
|
— |
|
Long-term debt, less
current maturities |
|
2,283,847 |
|
|
2,295,190 |
|
Noncurrent income
taxes payable |
|
7,731 |
|
|
7,731 |
|
Deferred tax
liabilities |
|
235,487 |
|
|
237,422 |
|
Other long-term
liabilities |
|
91,299 |
|
|
75,051 |
|
Total liabilities |
|
4,254,654 |
|
|
3,911,617 |
|
Common stock |
|
2,609 |
|
|
2,604 |
|
Treasury stock |
|
(234,892 |
) |
|
(231,994 |
) |
Additional paid-in
capital |
|
1,950,348 |
|
|
1,945,136 |
|
Retained
earnings |
|
675,967 |
|
|
421,888 |
|
Accumulated other
comprehensive loss |
|
(130,679 |
) |
|
(127,834 |
) |
Total Pilgrim’s Pride Corporation stockholders’ equity |
|
2,263,353 |
|
|
2,009,800 |
|
Noncontrolling
interest |
|
9,911 |
|
|
9,785 |
|
Total stockholders’ equity |
|
2,273,264 |
|
|
2,019,585 |
|
Total liabilities and stockholders’ equity |
|
$ |
6,527,918 |
|
|
$ |
5,931,202 |
|
PILGRIM’S PRIDE CORPORATION |
CONDENSED CONSOLIDATED STATEMENTS OF INCOME |
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
Thirteen Weeks ended |
|
Twenty-Six Weeks Ended |
|
|
June 30, 2019 |
|
July 1, 2018 |
|
June 30, 2019 |
|
July 1, 2018 |
|
|
(In thousands, except per share data) |
Net sales |
|
$ |
2,843,085 |
|
|
$ |
2,836,713 |
|
|
$ |
5,567,760 |
|
|
$ |
5,583,391 |
|
Cost of sales |
|
2,475,221 |
|
|
2,562,491 |
|
|
4,980,957 |
|
|
5,021,504 |
|
Gross profit |
|
367,864 |
|
|
274,222 |
|
|
586,803 |
|
|
561,887 |
|
Selling, general and
administrative expense |
|
88,357 |
|
|
87,975 |
|
|
170,281 |
|
|
173,258 |
|
Administrative
restructuring activities |
|
(43 |
) |
|
1,135 |
|
|
(70 |
) |
|
1,924 |
|
Operating income |
|
279,550 |
|
|
185,112 |
|
|
416,592 |
|
|
386,705 |
|
Interest expense,
net of capitalized interest |
|
33,594 |
|
|
40,267 |
|
|
67,156 |
|
|
90,567 |
|
Interest income |
|
(3,444 |
) |
|
(4,834 |
) |
|
(6,784 |
) |
|
(6,424 |
) |
Foreign currency
transaction loss |
|
2,260 |
|
|
5,630 |
|
|
4,896 |
|
|
3,909 |
|
Miscellaneous,
net |
|
1,513 |
|
|
(817 |
) |
|
1,156 |
|
|
(2,434 |
) |
Income before income taxes |
|
245,627 |
|
|
144,866 |
|
|
350,168 |
|
|
301,087 |
|
Income tax
expense |
|
75,547 |
|
|
38,522 |
|
|
95,963 |
|
|
75,519 |
|
Net income |
|
170,080 |
|
|
106,344 |
|
|
254,205 |
|
|
225,568 |
|
Less: Net income
(loss) attributable to noncontrolling interests |
|
12 |
|
|
(197 |
) |
|
126 |
|
|
(391 |
) |
Net income attributable to Pilgrim’s Pride Corporation |
|
$ |
170,068 |
|
|
$ |
106,541 |
|
|
$ |
254,079 |
|
|
$ |
225,959 |
|
|
|
|
|
|
|
|
|
|
Weighted
average shares of common stock outstanding: |
|
|
|
|
|
|
|
|
Basic |
|
249,400 |
|
|
248,981 |
|
|
249,283 |
|
|
248,909 |
|
Effect of dilutive common stock equivalents |
|
236 |
|
|
76 |
|
|
320 |
|
|
116 |
|
Diluted |
|
249,636 |
|
|
249,057 |
|
|
249,603 |
|
|
249,025 |
|
|
|
|
|
|
|
|
|
|
Net income
attributable to Pilgrim's Pride Corporation per share of common
stock outstanding: |
|
|
|
|
|
|
|
|
Basic |
|
$ |
0.68 |
|
|
$ |
0.43 |
|
|
$ |
1.02 |
|
|
$ |
0.91 |
|
Diluted |
|
$ |
0.68 |
|
|
$ |
0.43 |
|
|
$ |
1.02 |
|
|
$ |
0.91 |
|
PILGRIM’S PRIDE CORPORATION AND SUBSIDIARIES |
CONDENSED CONSOLIDATED STATEMENTS OF CASH
FLOWS |
(Unaudited) |
|
|
|
Twenty-Six Weeks Ended |
|
|
June 30, 2019 |
|
July 1, 2018 |
|
|
(In thousands) |
Cash flows from operating activities: |
|
|
|
|
|
|
|
|
Net income |
|
$ |
254,205 |
|
|
$ |
225,568 |
|
Adjustments to reconcile net income to cash provided by operating
activities: |
|
|
|
|
Depreciation and amortization |
|
138,530 |
|
|
136,087 |
|
Share-based compensation |
|
5,217 |
|
|
5,633 |
|
Deferred income tax expense (benefit) |
|
(3,354 |
) |
|
(11,927 |
) |
Loan cost amortization |
|
2,401 |
|
|
3,392 |
|
Accretion of discount related to Senior Notes |
|
491 |
|
|
321 |
|
Amortization of premium related to Senior Notes |
|
(334 |
) |
|
(334 |
) |
Loss on property disposals |
|
230 |
|
|
239 |
|
Foreign currency transaction loss related to borrowing
arrangements |
|
37 |
|
|
4,221 |
|
Gain on equity-method investments |
|
(32 |
) |
|
(32 |
) |
Noncash loss on early extinguishment of debt |
|
— |
|
|
4,918 |
|
Asset impairment |
|
— |
|
|
573 |
|
Changes in operating assets and liabilities: |
|
|
|
|
Trade accounts and other receivables |
|
(20,385 |
) |
|
(31,913 |
) |
Inventories |
|
(27,212 |
) |
|
60,303 |
|
Prepaid expenses and other current assets |
|
(1,339 |
) |
|
(31,099 |
) |
Accounts payable, accrued expenses and other current
liabilities |
|
20,664 |
|
|
103,991 |
|
Income taxes |
|
34,013 |
|
|
(161,571 |
) |
Long-term pension and other postretirement obligations |
|
(1,121 |
) |
|
(5,323 |
) |
Other operating assets and liabilities |
|
1,353 |
|
|
942 |
|
Cash provided by
operating activities |
|
403,364 |
|
|
303,989 |
|
Cash flows from
investing activities: |
|
|
|
|
Acquisitions of property, plant and equipment |
|
(177,609 |
) |
|
(155,188 |
) |
Proceeds from property disposals |
|
1,740 |
|
|
1,205 |
|
Cash used in
investing activities |
|
(175,869 |
) |
|
(153,983 |
) |
Cash flows from
financing activities: |
|
|
|
|
Payments on revolving line of credit, long-term borrowings and
capital lease obligations |
|
(113,079 |
) |
|
(673,452 |
) |
Proceeds from revolving line of credit and long-term
borrowings |
|
99,636 |
|
|
604,062 |
|
Purchase of common stock under share repurchase program |
|
(2,898 |
) |
|
— |
|
Payment of capitalized loan costs |
|
(596 |
) |
|
(5,708 |
) |
Proceeds (payment) from equity contribution (distribution) under
Tax Sharing Agreement between JBS USA Food Company Holdings and
Pilgrim's Pride Corporation |
|
(525 |
) |
|
5,558 |
|
Cash used in
financing activities |
|
(17,462 |
) |
|
(69,540 |
) |
Effect of exchange
rate changes on cash and cash equivalents |
|
(5 |
) |
|
4,030 |
|
Increase in cash,
cash equivalents and restricted cash |
|
210,028 |
|
|
84,496 |
|
Cash, cash
equivalents and restricted cash, beginning of period |
|
361,578 |
|
|
589,531 |
|
Cash, cash
equivalents and restricted cash, end of period |
|
$ |
571,606 |
|
|
$ |
674,027 |
|
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 30, 2019 |
|
July 1, 2018 |
|
June 30, 2019 |
|
July 1, 2018 |
|
(In thousands) |
Net income |
$ |
170,080 |
|
|
$ |
106,344 |
|
|
$ |
254,205 |
|
|
$ |
225,568 |
|
Add: |
|
|
|
|
|
|
|
Interest expense, net |
33,594 |
|
|
35,433 |
|
|
67,156 |
|
|
84,143 |
|
Income tax expense |
75,547 |
|
|
38,522 |
|
|
95,963 |
|
|
75,519 |
|
Depreciation and amortization |
71,348 |
|
|
68,643 |
|
|
138,530 |
|
|
136,087 |
|
EBITDA |
347,125 |
|
|
248,942 |
|
|
549,070 |
|
|
521,317 |
|
Add: |
|
|
|
|
|
|
|
Foreign currency transaction losses |
2,260 |
|
|
5,630 |
|
|
4,896 |
|
|
3,909 |
|
Acquisition charges |
— |
|
|
125 |
|
|
— |
|
|
304 |
|
Derivative loss |
— |
|
|
— |
|
|
— |
|
|
— |
|
Restructuring activity |
(43 |
) |
|
1,135 |
|
|
(70 |
) |
|
1,924 |
|
Other nonrecurring losses and expenses |
— |
|
|
3,298 |
|
|
— |
|
|
3,298 |
|
Minus: |
|
|
|
|
|
|
|
Net income (loss) attributable to noncontrolling interest |
12 |
|
|
(197 |
) |
|
126 |
|
|
(391 |
) |
Adjusted EBITDA |
$ |
349,330 |
|
|
$ |
259,327 |
|
|
$ |
553,770 |
|
|
$ |
531,143 |
|
The summary unaudited consolidated income statement data for the
twelve months ended June 30, 2019 (the LTM Period) have been
calculated by subtracting the applicable unaudited consolidated
income statement data for the six months ended July 1, 2018 from
the sum of (1) the applicable audited consolidated income statement
data for the year ended December 30, 2018 and (2) the applicable
audited consolidated income statement data for the six months ended
June 30, 2019.
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 30, 2018 |
|
December 30, 2018 |
|
March 31, 2019 |
|
June 30, 2019 |
|
June 30, 2019 |
|
(In thousands) |
Net income |
|
$ |
29,463 |
|
|
$ |
(8,227 |
) |
|
$ |
84,125 |
|
|
$ |
170,080 |
|
|
$ |
275,441 |
|
Add: |
|
|
|
|
|
|
|
|
|
|
Interest expense, net |
|
31,093 |
|
|
33,765 |
|
|
30,222 |
|
|
30,150 |
|
|
125,230 |
|
Income tax expense |
|
30,848 |
|
|
(20,944 |
) |
|
20,416 |
|
|
75,547 |
|
|
105,867 |
|
Depreciation and amortization |
|
71,027 |
|
|
66,975 |
|
|
67,182 |
|
|
71,348 |
|
|
276,532 |
|
EBITDA |
|
162,431 |
|
|
71,569 |
|
|
201,945 |
|
|
347,125 |
|
|
783,070 |
|
Add: |
|
|
|
|
|
|
|
|
|
|
Foreign currency transaction losses (gains) |
|
(6,711 |
) |
|
19,962 |
|
|
2,636 |
|
|
2,260 |
|
|
18,147 |
|
Acquisition charges |
|
16 |
|
|
— |
|
|
— |
|
|
— |
|
|
16 |
|
Restructuring activities |
|
257 |
|
|
2,584 |
|
|
(27 |
) |
|
(43 |
) |
|
2,771 |
|
Other nonrecurring losses and expenses |
|
164 |
|
|
16,023 |
|
|
— |
|
|
— |
|
|
16,187 |
|
Minus: |
|
|
|
|
|
|
|
|
|
|
Net income (loss) attributable to noncontrolling interest |
|
153 |
|
|
(903 |
) |
|
114 |
|
|
12 |
|
|
(624 |
) |
Adjusted EBITDA |
|
$ |
156,004 |
|
|
$ |
111,041 |
|
|
$ |
204,440 |
|
|
$ |
349,330 |
|
|
$ |
820,815 |
|
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 30, 2019 |
|
July 1, 2018 |
|
June 30, 2019 |
|
July 1, 2018 |
|
June 30, 2019 |
|
July 1, 2018 |
|
June 30, 2019 |
|
July 1, 2018 |
(In thousands) |
|
Net income |
$ |
170,080 |
|
|
$ |
106,344 |
|
|
$ |
254,205 |
|
|
$ |
225,568 |
|
|
$ |
5.98 |
% |
|
$ |
3.75 |
% |
|
$ |
4.57 |
% |
|
$ |
4.04 |
% |
Add: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense, net |
30,150 |
|
|
35,433 |
|
|
60,372 |
|
|
84,143 |
|
|
1.06 |
% |
|
1.25 |
% |
|
1.08 |
% |
|
1.51 |
% |
Income tax expense |
75,547 |
|
|
38,522 |
|
|
95,963 |
|
|
75,519 |
|
|
2.66 |
% |
|
1.36 |
% |
|
1.72 |
% |
|
1.35 |
% |
Depreciation and amortization |
71,348 |
|
|
68,643 |
|
|
138,530 |
|
|
136,087 |
|
|
2.51 |
% |
|
2.42 |
% |
|
2.49 |
% |
|
2.44 |
% |
EBITDA |
347,125 |
|
|
248,942 |
|
|
549,070 |
|
|
521,317 |
|
|
12.21 |
% |
|
8.79 |
% |
|
9.86 |
% |
|
9.34 |
% |
Add: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign currency transaction losses |
2,260 |
|
|
5,630 |
|
|
4,896 |
|
|
3,909 |
|
|
0.08 |
% |
|
0.20 |
% |
|
0.09 |
% |
|
0.07 |
% |
Acquisition charges |
— |
|
|
125 |
|
|
— |
|
|
304 |
|
|
— |
% |
|
— |
% |
|
— |
% |
|
0.01 |
% |
Restructuring activity |
(43 |
) |
|
1,135 |
|
|
(70 |
) |
|
1,924 |
|
|
— |
% |
|
0.04 |
% |
|
— |
% |
|
0.03 |
% |
Other nonrecurring losses and expenses |
— |
|
|
3,298 |
|
|
— |
|
|
3,298 |
|
|
— |
% |
|
0.12 |
% |
|
— |
% |
|
0.06 |
% |
Minus: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) attributable to noncontrolling interest |
12 |
|
|
(197 |
) |
|
126 |
|
|
(391 |
) |
|
— |
% |
|
(0.01 |
)% |
|
— |
% |
|
(0.01 |
)% |
Adjusted EBITDA |
$ |
349,330 |
|
|
$ |
259,327 |
|
|
$ |
553,770 |
|
|
$ |
531,143 |
|
|
12.29 |
% |
|
9.15 |
% |
|
9.95 |
% |
|
9.51 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales |
$ |
2,843,085 |
|
|
$ |
2,836,713 |
|
|
$ |
5,567,760 |
|
|
$ |
5,583,391 |
|
|
$ |
2,843,085 |
|
|
$ |
2,836,713 |
|
|
$ |
5,567,760 |
|
|
$ |
5,583,391 |
|
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 30, 2019 |
|
July 1, 2018 |
|
June 30, 2019 |
|
July 1, 2018 |
|
(In thousands, except per share data) |
Net income attributable to Pilgrim's Pride Corporation |
$ |
170,068 |
|
|
$ |
106,541 |
|
|
$ |
254,079 |
|
|
$ |
225,959 |
|
Adjustments, net of tax: |
|
|
|
|
|
|
|
Loss on early extinguishment of debt |
— |
|
|
1,513 |
|
|
— |
|
|
8,823 |
|
Acquisition charges and restructuring activities |
(33 |
) |
|
954 |
|
|
(53 |
) |
|
1,686 |
|
Foreign currency transaction losses |
1,710 |
|
|
4,260 |
|
|
3,704 |
|
|
2,957 |
|
Income before loss on early
extinguishment of debt, acquisition charges and restructuring
activities, and foreign currency transaction losses |
$ |
171,745 |
|
|
$ |
113,268 |
|
|
$ |
257,730 |
|
|
$ |
239,425 |
|
Weighted average diluted
shares of common stock outstanding |
249,636 |
|
|
249,057 |
|
|
249,603 |
|
|
249,025 |
|
Income before loss on early
extinguishment of debt, acquisition and restructuring activities
and foreign currency transaction losses per common diluted
share |
$ |
0.69 |
|
|
$ |
0.45 |
|
|
$ |
1.03 |
|
|
$ |
0.96 |
|
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 30, 2019 |
|
July 1, 2018 |
|
June 30, 2019 |
|
July 1, 2018 |
|
(In thousands, except per share data) |
GAAP EPS |
$ |
0.68 |
|
|
$ |
0.43 |
|
|
$ |
1.02 |
|
|
$ |
0.91 |
|
Adjustments, net of tax: |
|
|
|
|
|
|
|
Loss on early extinguishment of debt |
— |
|
|
0.01 |
|
|
— |
|
|
0.04 |
|
Foreign currency transaction losses |
0.01 |
|
|
0.01 |
|
|
0.01 |
|
|
0.01 |
|
Adjusted EPS |
$ |
0.69 |
|
|
$ |
0.45 |
|
|
$ |
1.03 |
|
|
$ |
0.96 |
|
|
|
|
|
|
|
|
|
Weighted average diluted
shares of common stock outstanding |
249,636 |
|
|
249,057 |
|
|
249,603 |
|
|
249,025 |
|
PILGRIM'S PRIDE CORPORATION |
Supplementary Selected Segment and Geographic
Data |
(Unaudited) |
|
|
|
|
|
|
|
|
|
Thirteen Weeks Ended |
|
Twenty-Six Weeks Ended |
|
June 30, 2019 |
|
July 1, 2018 |
|
June 30, 2019 |
|
July 1, 2018 |
|
(In thousands) |
Sources of net sales by
country of origin: |
|
|
|
|
|
|
|
US |
$ |
1,916,954 |
|
|
$ |
1,899,435 |
|
|
$ |
3,800,544 |
|
|
$ |
3,740,540 |
|
Europe |
535,902 |
|
|
563,102 |
|
|
1,050,865 |
|
|
1,107,402 |
|
Mexico |
390,229 |
|
|
374,176 |
|
|
716,351 |
|
|
735,449 |
|
Total net sales |
$ |
2,843,085 |
|
|
$ |
2,836,713 |
|
|
$ |
5,567,760 |
|
|
$ |
5,583,391 |
|
|
|
|
|
|
|
|
|
Sources of cost of sales by
country of origin: |
|
|
|
|
|
|
|
US |
$ |
1,670,384 |
|
|
$ |
1,745,511 |
|
|
$ |
3,383,803 |
|
|
$ |
3,404,245 |
|
Europe |
492,386 |
|
|
513,991 |
|
|
977,764 |
|
|
1,015,559 |
|
Mexico |
312,475 |
|
|
302,973 |
|
|
619,438 |
|
|
601,708 |
|
Intersegment transactions, net |
(24 |
) |
|
16 |
|
|
(48 |
) |
|
(8 |
) |
Total cost of sales |
$ |
2,475,221 |
|
|
$ |
2,562,491 |
|
|
$ |
4,980,957 |
|
|
$ |
5,021,504 |
|
|
|
|
|
|
|
|
|
Sources of gross profit by
country of origin: |
|
|
|
|
|
|
|
US |
$ |
246,570 |
|
|
$ |
153,924 |
|
|
$ |
416,741 |
|
|
$ |
336,295 |
|
Europe |
43,516 |
|
|
49,111 |
|
|
73,101 |
|
|
91,843 |
|
Mexico |
77,754 |
|
|
71,203 |
|
|
96,913 |
|
|
133,741 |
|
Intersegment transactions, net |
24 |
|
|
(16 |
) |
|
48 |
|
|
8 |
|
Total gross profit |
$ |
367,864 |
|
|
$ |
274,222 |
|
|
$ |
586,803 |
|
|
$ |
561,887 |
|
|
|
|
|
|
|
|
|
Sources of operating income by
country of origin: |
|
|
|
|
|
|
|
US |
$ |
186,960 |
|
|
$ |
99,469 |
|
|
$ |
301,800 |
|
|
$ |
226,755 |
|
Europe |
24,194 |
|
|
23,662 |
|
|
36,908 |
|
|
45,075 |
|
Mexico |
68,372 |
|
|
61,997 |
|
|
77,836 |
|
|
114,867 |
|
Intersegment transactions, net |
24 |
|
|
(16 |
) |
|
48 |
|
|
8 |
|
Total operating income |
$ |
279,550 |
|
|
$ |
185,112 |
|
|
$ |
416,592 |
|
|
$ |
386,705 |
|
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