Tyson Foods, Inc. (NYSE:TSN), one of the world’s largest food
companies and a recognized leader in protein with leading brands
including Tyson®, Jimmy Dean®, Hillshire Farm®, Ball Park®,
Wright®, Aidells®, ibp® and State Fair®, today reported the
following results:
(in millions, except
per share data) |
Fourth Quarter |
|
Twelve Months Ended |
|
2017 |
|
2016 |
|
2017 |
|
2016 |
Sales |
$ |
10,145 |
|
|
$ |
9,156 |
|
|
$ |
38,260 |
|
|
$ |
36,881 |
|
Operating Income |
681 |
|
|
586 |
|
|
2,931 |
|
|
2,833 |
|
|
|
|
|
|
|
|
|
Net Income |
395 |
|
|
392 |
|
|
1,778 |
|
|
1,772 |
|
Less: Net Income
Attributable to Noncontrolling Interests |
1 |
|
|
1 |
|
|
4 |
|
|
4 |
|
Net Income Attributable
to Tyson |
$ |
394 |
|
|
$ |
391 |
|
|
$ |
1,774 |
|
|
$ |
1,768 |
|
|
|
|
|
|
|
|
|
Net Income Per Share
Attributable to Tyson |
$ |
1.07 |
|
|
$ |
1.03 |
|
|
$ |
4.79 |
|
|
$ |
4.53 |
|
|
|
|
|
|
|
|
|
Adjusted¹ Operating
Income |
$ |
902 |
|
|
$ |
586 |
|
|
$ |
3,263 |
|
|
$ |
2,833 |
|
|
|
|
|
|
|
|
|
Adjusted¹ Net Income
Per Share Attributable to Tyson |
$ |
1.43 |
|
|
$ |
0.96 |
|
|
$ |
5.31 |
|
|
$ |
4.39 |
|
1 Adjusted operating income and adjusted net income per share
attributable to Tyson, or Adjusted EPS, are non-GAAP financial
measures and are explained and reconciled to a comparable GAAP
measure at the end of this release. Adjusted net income per share
attributable to Tyson guidance is provided on a non-GAAP basis
because certain information necessary to calculate such measure on
a GAAP basis is unavailable, dependent on future events outside of
our control and cannot be predicted without unreasonable efforts by
the Company. A further explanation of providing non-GAAP guidance
is included at the end of this release.
Fiscal 2017 Highlights
- Record GAAP EPS of $4.79, up 6% from last year; Record
Adjusted EPS of $5.31, up 21% from last year
- Record GAAP operating income of $2,931 million; Record
Adjusted operating income of $3,263 million
- Total company GAAP operating margin at 7.7%; Record
Adjusted operating margin at 8.5%
- Operating cash flow of $2.6 billion
Fourth Quarter Highlights
- GAAP EPS of $1.07, up 4% from last year; Adjusted EPS
of $1.43, up 49% from last year
- GAAP operating income of $681 million; Adjusted
operating income of $902 million
- Total company GAAP operating margin at 6.7%; Adjusted
operating margin at 8.9%
- Reduced debt over $600 million
Guidance
- Adjusted1 EPS guidance of $5.70-$5.85, representing an
approximate 7-10% increase from fiscal 2017 Adjusted
EPS
“The fourth quarter was a strong finish to another record year,”
Tom Hayes, Tyson Foods’ president and chief executive officer,
said. “We delivered well over our goals of at least 4 percent
operating income growth, EPS growth in the high single digits and 3
percent volume growth in value-added products, and expect to meet
or exceed these goals again in fiscal 2018.
“Our Beef and Pork segments delivered outstanding returns for
the quarter and for the year, again generating significant cash to
fuel investments in our Chicken and Prepared Foods segments. For
the 2017 fiscal year, our Core 9 product lines and our total retail
business continued to outpace total food and beverage growth in
both dollars and volume. At foodservice, our Focus 5 products are
growing at six times the rate of the broadline distribution
channel.
“Fiscal 2017 was a year of great change and, despite some
challenges, our team remained focused on the long term by keeping
consumer relevance, customer growth and shareholder value creation
at the forefront. Not only did we generate exceptional financial
results, we also strengthened the foundation needed to accelerate
growth through several initiatives. We refined our strategy and put
in place a new management team to implement it. With a renewed
focus on protein packed brands, we initiated the divestiture of
some non-protein businesses. We acquired and are successfully
integrating AdvancePierre Foods to expand our manufacturing
capabilities in sandwiches and other prepared foods and to increase
our presence in the convenience store channel. We repurchased
roughly $650 million in shares before the AdvancePierre acquisition
and then redirected cash flow and proceeded to pay down more than
$600 million of debt. We announced a restructuring and cost cutting
program to increase our agility as an organization. To cap off a
great year, the Board of Directors increased the dividend by $0.30
to $1.20 per share annually, an increase of 33%.
“Fiscal 2018 is off to a great start, and we’re currently
expecting adjusted earnings growth of 7-10 percent to $5.70-5.85
per share. We’re confident in our ability to realize in excess of
$200 million in net savings this fiscal year from our Financial
Fitness program, including AdvancePierre synergies. We’re planning
capital expenditures of $1.4 billion in fiscal 2018 while we
continue reducing debt to reach our net debt to EBITDA target of
around 2x, which we anticipate will happen by the third quarter.
When we reach that target, we intend to resume repurchasing our
shares.
“Our plan is to grow our business year after year through
differentiated capabilities, deliver ongoing financial fitness
through continuous improvement and sustain our company as we
sustainably feed the world with the fastest growing portfolio of
protein packed brands.”
SEGMENT RESULTS (in millions)
Sales |
(for the fourth quarter and twelve months ended
September 30, 2017 and October 1, 2016) |
|
Fourth Quarter |
Twelve Months Ended |
|
|
|
Volume |
Avg. Price |
|
|
Volume |
Avg. Price |
|
2017 |
2016 |
Change |
Change |
2017 |
2016 |
Change |
Change |
Beef |
$ |
3,808 |
|
$ |
3,477 |
|
3.3 |
% |
6.0 |
% |
$ |
14,823 |
|
$ |
14,513 |
|
1.8 |
% |
0.4 |
% |
Pork |
1,362 |
|
1,235 |
|
(1.2 |
)% |
11.7 |
% |
5,238 |
|
4,909 |
|
0.6 |
% |
6.1 |
% |
Chicken |
3,035 |
|
2,811 |
|
4.1 |
% |
3.7 |
% |
11,409 |
|
10,927 |
|
1.2 |
% |
3.1 |
% |
Prepared Foods |
2,263 |
|
1,837 |
|
9.5 |
% |
12.5 |
% |
7,853 |
|
7,346 |
|
3.2 |
% |
3.6 |
% |
Other |
92 |
|
96 |
|
(2.7 |
)% |
(1.7 |
)% |
349 |
|
380 |
|
(4.9 |
)% |
(3.4 |
)% |
Intersegment Sales |
(415 |
) |
(300 |
) |
n/a |
|
n/a |
|
(1,412 |
) |
(1,194 |
) |
n/a |
|
n/a |
|
Total |
$ |
10,145 |
|
$ |
9,156 |
|
3.2 |
% |
7.3 |
% |
$ |
38,260 |
|
$ |
36,881 |
|
1.0 |
% |
2.7 |
% |
Operating Income (Loss) |
(for the fourth quarter and twelve months ended
September 30, 2017 and October 1, 2016) |
|
Fourth Quarter |
Twelve Months Ended |
|
|
|
Operating Margin |
|
|
Operating Margin |
|
2017 |
2016 |
2017 |
2016 |
2017 |
2016 |
2017 |
2016 |
Beef |
$ |
305 |
|
$ |
139 |
|
8.0 |
% |
4.0 |
% |
$ |
877 |
|
$ |
347 |
|
5.9 |
% |
2.4 |
% |
Pork |
121 |
|
108 |
|
8.9 |
% |
8.7 |
% |
645 |
|
528 |
|
12.3 |
% |
10.8 |
% |
Chicken |
263 |
|
220 |
|
8.7 |
% |
7.8 |
% |
1,053 |
|
1,305 |
|
9.2 |
% |
11.9 |
% |
Prepared Foods |
11 |
|
133 |
|
0.5 |
% |
7.2 |
% |
462 |
|
734 |
|
5.9 |
% |
10.0 |
% |
Other |
(19 |
) |
(14 |
) |
n/a |
|
n/a |
|
(106 |
) |
(81 |
) |
n/a |
|
n/a |
|
Total |
$ |
681 |
|
$ |
586 |
|
6.7 |
% |
6.4 |
% |
$ |
2,931 |
|
$ |
2,833 |
|
7.7 |
% |
7.7 |
% |
Note: On June 7, 2017, we acquired and consolidated
AdvancePierre Foods Holdings, Inc. ("AdvancePierre"), a producer
and distributor of value-added, convenient, ready-to-eat
sandwiches, sandwich components and other entrées and snacks.
AdvancePierre's results from operations subsequent to the
acquisition closing are included in the Prepared Foods and Chicken
segments.
Adjusted Segment Results (in millions)
Adjusted Operating Income (Loss)
(Non-GAAP) |
(for the fourth quarter and twelve months ended
September 30, 2017 and October 1, 2016) |
|
Fourth Quarter |
Twelve Months Ended |
|
|
|
Adjusted Operating Margin
(Non-GAAP) |
|
|
Adjusted Operating Margin
(Non-GAAP) |
|
2017 |
2016 |
2017 |
2016 |
2017 |
2016 |
2017 |
2016 |
Beef |
$ |
313 |
|
$ |
139 |
|
8.2 |
% |
4.0 |
% |
$ |
885 |
|
$ |
347 |
|
6.0 |
% |
2.4 |
% |
Pork |
124 |
|
108 |
|
9.1 |
% |
8.7 |
% |
648 |
|
528 |
|
12.4 |
% |
10.8 |
% |
Chicken |
322 |
|
220 |
|
10.6 |
% |
7.8 |
% |
1,117 |
|
1,305 |
|
9.8 |
% |
11.9 |
% |
Prepared Foods |
152 |
|
133 |
|
6.7 |
% |
7.2 |
% |
675 |
|
734 |
|
8.6 |
% |
10.0 |
% |
Other |
(9 |
) |
(14 |
) |
n/a |
|
n/a |
|
(62 |
) |
(81 |
) |
n/a |
|
n/a |
|
Total |
$ |
902 |
|
$ |
586 |
|
8.9 |
% |
6.4 |
% |
$ |
3,263 |
|
$ |
2,833 |
|
8.5 |
% |
7.7 |
% |
Note: Adjusted operating income is a non-GAAP financial measure
and is explained and reconciled to a comparable GAAP measure at the
end of this release.
Adjusted operating income and adjusted operating margin are
presented as supplementary measures in the evaluation of our
business that are not required by, or presented in accordance with,
GAAP. We use adjusted operating income and adjusted operating
margin as internal performance measurements and as two criteria for
evaluating our performance relative to that of our peers. We
believe adjusted operating income and adjusted operating margin are
meaningful to our investors to enhance their understanding of our
financial performance and are frequently used by securities
analysts, investors and other interested parties to compare our
performance with the performance of other companies that report
adjusted operating income and adjusted operating margin. Further,
we believe that adjusted operating income and adjusted operating
margin are useful measures because they improve comparability of
results of operations from period to period. Adjusted operating
income and adjusted operating margin should not be considered as
substitutes for operating income, operating margin or any other
measure of operating performance reported in accordance with GAAP.
Investors should rely primarily on our GAAP results and use
non-GAAP financial measures only supplementally in making
investment decisions. Our calculation of adjusted operating income
and adjusted operating margin may not be comparable to similarly
titled measures reported by other companies.
Summary of Segment Results
- Beef - Sales volume increased due to improved availability of
cattle supply, stronger domestic demand for our beef products and
increased exports. Average sales price increased as demand for our
beef products and strong exports outpaced the increase in live
cattle supplies. Operating income increased due to more favorable
market conditions as we maximized our revenues relative to the
decline in live fed cattle costs, partially offset by higher
operating costs.
- Pork - Sales volume increased for fiscal 2017 due to strong
demand for our pork products and increased exports. Sales volume
decreased in the fourth quarter of fiscal 2017 as a result of
balancing our supply with customer demand. Average sales price
increased as demand for our pork products and strong exports
outpaced the increase in live hog supplies. Operating income
increased as we maximized our revenues relative to the live hog
markets, partially attributable to stronger export markets and
operational and mix performance, which were partially offset by
higher operating costs.
- Chicken - Sales volume was up due to better demand for our
chicken products along with the incremental volume from the
AdvancePierre acquisition. Average sales price increased due to
sales mix changes. Operating income for fiscal 2017 was below prior
year record results due to higher operating costs, which included
increased compensation and benefit integration expense of $41
million, $17 million of incremental net costs attributable to two
plant fires, in addition to restructuring and related charges of
$56 million in the fourth quarter of fiscal 2017. Operating income
increased in the fourth quarter of fiscal 2017, despite the $56
million of restructuring and related charges, due to improved
operational execution and lower feed ingredient costs. Feed costs
decreased $65 million and $80 million for the fourth quarter and
fiscal 2017, respectively.
- Prepared Foods - Sales volume increased for fiscal 2017 due to
improved demand for our retail products and incremental volumes
from the AdvancePierre acquisition, partially offset by declines in
foodservice. Sales volume increased in the fourth quarter of fiscal
2017 primarily as the result of incremental volumes from the
AdvancePierre acquisition, partially offset by declines in
foodservice. Average sales price increased due to better product
mix which was positively impacted by the acquisition of
AdvancePierre as well as higher input costs of $50 million for
fiscal 2017 and $105 million in the fourth quarter of fiscal
2017. Operating income for fiscal 2017 decreased due to
impairments of $52 million related to our San Diego operation and
of $45 million related to the expected sale of a non-protein
business, $30 million of compensation and benefit integration
expense, $34 million related to AdvancePierre purchase accounting
and acquisition related costs, $82 million of restructuring and
related charges, in addition to higher operating costs at some of
our facilities. Operating income for the fourth quarter of fiscal
2017 decreased due to an impairment of $45 million related to the
expected sale of a non-protein business, $82 million of
restructuring and related charges, $14 million related to
AdvancePierre purchase accounting and acquisition related costs and
higher operating costs at some of our facilities. Additionally,
Prepared Foods operating income was positively impacted by $137
million in synergies, of which $18 million was incremental
synergies in the fourth quarter of fiscal 2017. For the 12 months
of fiscal 2017, Prepared Foods operating income was positively
impacted by $538 million in synergies, of which $97 million was
incremental synergies in fiscal 2017 above the $156 million of
synergies realized in fiscal 2016 and $285 million realized in
fiscal 2015. The positive impact of these synergies to operating
income was partially offset with investments in innovation, new
product launches and supporting the growth of our brands.
OutlookIn fiscal 2018, USDA indicates domestic
protein production (beef, pork, chicken and turkey) should increase
approximately 3-4% from fiscal 2017 levels, but stronger export
markets should partially absorb the increase. As previously
announced, in the fourth quarter of fiscal 2017, our Board of
Directors approved a multi-year restructuring program (the
“Financial Fitness Program”), that is expected to contribute to the
Company’s overall strategy of financial fitness through increased
operational effectiveness and overhead reduction. Through a
combination of synergies from the integration of AdvancePierre and
additional elimination of non-value added costs, the program is
estimated to result in net savings of $200 million in fiscal 2018,
$400 million in fiscal 2019 including new savings of $200 million,
and $600 million in fiscal 2020 including additional savings of
$200 million. The majority of these savings, which are focused on
supply chain, procurement, and overhead improvements, are expected
to be realized in the Prepared Foods and Chicken segments. The
following is a summary of the outlook for each of our segments, as
well as an outlook for sales, capital expenditures, net interest
expense, liquidity, share repurchases and dividends for fiscal
2018. Adjusted operating margin guidance is provided below on a
non-GAAP basis. The Company is not able to reconcile its full-year
fiscal 2018 adjusted operating margin guidance to its full-year
fiscal 2018 projected GAAP operating margin guidance because
certain information necessary to calculate such measure on a GAAP
basis is unavailable or dependent on the timing of future events
outside of our control. Therefore, because of the uncertainty and
variability of the nature of the amount of future adjustments,
which could be significant, the Company is unable to provide a
reconciliation of this measure without unreasonable effort.
Adjusted operating margin should not be considered a substitute for
operating margin or any other measure of financial performance
reported in accordance with GAAP. Investors should rely primarily
on the Company’s GAAP results and use non-GAAP financial measures
only supplementally in making investment decisions.
- Sale of Non-Protein Businesses – On April 24, 2017, we
announced our intent to sell three non-protein businesses, Sara
Lee® Frozen Bakery, Kettle and Van’s®, which are all a part of our
Prepared Foods segment, as part of our strategic focus on
protein-packed brands. The revenues from these businesses totaled
approximately $650 million for fiscal 2017 and the businesses had a
net carrying value of $803 million at September 30, 2017. We
anticipate we will close the transactions by the end of calendar
2017, or early calendar 2018, and expect to record a net pretax
gain as a result of the sale of these businesses. We have excluded
these businesses' expected results from our fiscal 2018
outlook.
- Beef – We expect industry fed cattle supplies to increase
approximately 1-2% in fiscal 2018 as compared to fiscal 2017. We
expect ample supplies in regions where we operate our plants. We
believe our Beef segment's adjusted operating margin in fiscal 2018
should be above 5%.
- Pork – We expect industry hog supplies to increase
approximately 3% in fiscal 2018 as compared to fiscal 2017. For
fiscal 2018, our Pork segment's adjusted operating margin should be
above 9%.
- Chicken – AdvancePierre contributed approximately $100 million
of revenue in fiscal 2017, and we expect incremental revenue of
approximately $250 million in fiscal 2018 for a total of
approximately $350 million in the first full fiscal year as part of
our operation. We expect to capture Financial Fitness Program net
savings in excess of $90 million in fiscal 2018, which is a
combination of AdvancePierre net synergies and reduction of
non-value added costs. USDA projects an increase in chicken
production of approximately 2% in fiscal 2018 as compared to fiscal
2017. Based on current futures prices, we expect similar feed costs
in fiscal 2018 compared to fiscal 2017. For fiscal 2018, we believe
our Chicken segment sales will grow with around 3% volume growth,
and adjusted operating margins should improve to around 11%.
- Prepared Foods – AdvancePierre contributed approximately $425
million of revenue in fiscal 2017, and we expect incremental
revenue of approximately $950 million in fiscal 2018 for a total of
approximately $1.4 billion in the first full fiscal year as part of
our operation. We expect to capture Financial Fitness Program net
savings in excess of $100 million in fiscal 2018, which is a
combination of AdvancePierre net synergies and reduction of
non-value added costs. We currently expect input costs to be flat
for fiscal 2018 as compared to fiscal 2017. For fiscal 2018, we
expect our Prepared Foods segment sales to grow and adjusted
operating margin should be between 11-12%. We will continue to
evaluate the range as we close the sale of the three non-protein
businesses and further integrate AdvancePierre.
- Other – Other includes our foreign operations related to
raising and processing live chickens in China and India,
third-party merger and integration costs and corporate overhead
related to Tyson New Ventures, LLC. We expect Other operating loss
should be approximately $40 million in fiscal 2018, excluding the
impact of merger and integration expense from the acquisition of
AdvancePierre and restructuring and related costs.
- Sales – We expect fiscal 2018 sales to grow approximately 7% to
approximately $41 billion which excludes the revenue of the three
non-protein businesses held for sale referenced above. The expected
increase in fiscal 2018 sales is attributed to incremental
AdvancePierre sales of $1.2 billion, an increase in sales volume in
our legacy businesses excluding the impact of sales from the three
non-protein businesses, and an increase in pricing predominantly in
our Chicken segment.
- Capital Expenditures – We expect capital expenditures to
approximate $1.4 billion for fiscal 2018. Capital expenditures will
include spending for production growth, safety, animal well-being,
infrastructure replacements and upgrades, and operational
improvements that will result in production and labor efficiencies,
yield improvements and sales channel flexibility.
- Net Interest Expense – We expect net interest expense to
approximate $325 million for fiscal 2018, which includes estimates
regarding the timing and net proceeds from the divestiture of our
Sara Lee® Frozen Bakery, Kettle and Van’s® businesses as we intend
to use the net sales proceeds to pay down debt.
- Liquidity – We expect total liquidity, which was approximately
$1.0 billion at September 30, 2017, to remain in line with our
minimum liquidity target of $1.0 billion.
- Share Repurchases – We currently do not plan to repurchase
shares, other than to fund obligations under equity compensation
programs, until we reach our net debt to EBITDA target of around
2x. We anticipate reaching this goal by the third quarter of fiscal
2018.
- Dividends– On November 10, 2017, the Board of Directors
increased the quarterly dividend previously declared on August 10,
2017, to $0.30 per share on our Class A common stock and $0.27 per
share on our Class B common stock. The increased quarterly dividend
is payable on December 15, 2017, to shareholders of record at the
close of business on December 1, 2017. The Board also declared a
quarterly dividend of $0.30 per share on our Class A common stock
and $0.27 per share on our Class B common stock, payable on March
15, 2018, to shareholders of record at the close of business on
March 1, 2018. We anticipate the remaining quarterly dividends in
fiscal 2018 will be $0.30 and $0.27 per share of our Class A and
Class B stock, respectively. This results in an annual dividend
rate in fiscal 2018 of $1.20 for Class A shares and $1.08 for Class
B shares, or a 33% increase compared to the fiscal 2017 annual
dividend rate.
TYSON FOODS, INC. |
CONSOLIDATED CONDENSED STATEMENTS OF
INCOME |
(In millions, except per share
data) |
(Unaudited) |
|
|
Three Months Ended |
|
Twelve Months Ended |
|
September 30, 2017 |
|
October 1, 2016 |
|
September 30, 2017 |
|
October 1, 2016 |
Sales |
$ |
10,145 |
|
|
$ |
9,156 |
|
|
$ |
38,260 |
|
|
$ |
36,881 |
|
Cost of Sales |
8,794 |
|
|
8,067 |
|
|
33,177 |
|
|
32,184 |
|
Gross Profit |
1,351 |
|
|
1,089 |
|
|
5,083 |
|
|
4,697 |
|
|
|
|
|
|
|
|
|
Selling, General and
Administrative |
670 |
|
|
503 |
|
|
2,152 |
|
|
1,864 |
|
Operating Income |
681 |
|
|
586 |
|
|
2,931 |
|
|
2,833 |
|
Other (Income)
Expense: |
|
|
|
|
|
|
|
Interest
income |
(2 |
) |
|
(1 |
) |
|
(7 |
) |
|
(6 |
) |
Interest
expense |
94 |
|
|
58 |
|
|
279 |
|
|
249 |
|
Other,
net |
9 |
|
|
(2 |
) |
|
31 |
|
|
(8 |
) |
Total Other (Income)
Expense |
101 |
|
|
55 |
|
|
303 |
|
|
235 |
|
Income before Income
Taxes |
580 |
|
|
531 |
|
|
2,628 |
|
|
2,598 |
|
Income Tax Expense |
185 |
|
|
139 |
|
|
850 |
|
|
826 |
|
Net Income |
395 |
|
|
392 |
|
|
1,778 |
|
|
1,772 |
|
Less: Net Income
Attributable to Noncontrolling Interests |
1 |
|
|
1 |
|
|
4 |
|
|
4 |
|
Net Income Attributable
to Tyson |
$ |
394 |
|
|
$ |
391 |
|
|
$ |
1,774 |
|
|
$ |
1,768 |
|
Weighted Average Shares
Outstanding: |
|
|
|
|
|
|
|
Class A
Basic |
296 |
|
|
305 |
|
|
296 |
|
|
315 |
|
Class B
Basic |
70 |
|
|
70 |
|
|
70 |
|
|
70 |
|
Diluted |
369 |
|
|
381 |
|
|
370 |
|
|
390 |
|
Net Income Per Share
Attributable to Tyson: |
|
|
|
|
|
|
|
Class A
Basic |
$ |
1.10 |
|
|
$ |
1.06 |
|
|
$ |
4.94 |
|
|
$ |
4.67 |
|
Class B
Basic |
$ |
0.98 |
|
|
$ |
0.96 |
|
|
$ |
4.45 |
|
|
$ |
4.24 |
|
Diluted |
$ |
1.07 |
|
|
$ |
1.03 |
|
|
$ |
4.79 |
|
|
$ |
4.53 |
|
Dividends Declared Per
Share: |
|
|
|
|
|
|
|
Class
A |
$ |
0.225 |
|
|
$ |
0.150 |
|
|
$ |
0.975 |
|
|
$ |
0.650 |
|
Class
B |
$ |
0.203 |
|
|
$ |
0.135 |
|
|
$ |
0.878 |
|
|
$ |
0.585 |
|
|
|
|
|
|
|
|
|
Sales Growth |
10.8 |
% |
|
|
|
3.7 |
% |
|
|
Margins: (Percent of
Sales) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
Profit |
13.3 |
% |
|
11.9 |
% |
|
13.3 |
% |
|
12.7 |
% |
Operating
Income |
6.7 |
% |
|
6.4 |
% |
|
7.7 |
% |
|
7.7 |
% |
Net
Income Attributable to Tyson |
3.9 |
% |
|
4.3 |
% |
|
4.6 |
% |
|
4.8 |
% |
Effective Tax Rate |
31.9 |
% |
|
26.1 |
% |
|
32.3 |
% |
|
31.8 |
% |
TYSON FOODS, INC. |
CONSOLIDATED CONDENSED BALANCE
SHEETS |
(In millions) |
(Unaudited) |
|
|
September 30, 2017 |
|
October 1, 2016 |
Assets |
|
|
|
Current Assets: |
|
|
|
Cash and
cash equivalents |
$ |
318 |
|
|
$ |
349 |
|
Accounts
receivable, net |
1,675 |
|
|
1,542 |
|
Inventories |
3,239 |
|
|
2,732 |
|
Other
current assets |
219 |
|
|
265 |
|
Assets
held for sale |
807 |
|
|
— |
|
Total Current
Assets |
6,258 |
|
|
4,888 |
|
Net Property, Plant and
Equipment |
5,568 |
|
|
5,170 |
|
Goodwill |
9,324 |
|
|
6,669 |
|
Intangible Assets,
net |
6,243 |
|
|
5,084 |
|
Other Assets |
673 |
|
|
562 |
|
Total Assets |
$ |
28,066 |
|
|
$ |
22,373 |
|
|
|
|
|
Liabilities and
Shareholders’ Equity |
|
|
|
Current
Liabilities: |
|
|
|
Current
debt |
$ |
906 |
|
|
$ |
79 |
|
Accounts
payable |
1,698 |
|
|
1,511 |
|
Other
current liabilities |
1,424 |
|
|
1,172 |
|
Liabilities held for sale |
4 |
|
|
— |
|
Total Current
Liabilities |
4,032 |
|
|
2,762 |
|
Long-Term Debt |
9,297 |
|
|
6,200 |
|
Deferred Income
Taxes |
2,979 |
|
|
2,545 |
|
Other Liabilities |
1,199 |
|
|
1,242 |
|
|
|
|
|
Total Tyson
Shareholders’ Equity |
10,541 |
|
|
9,608 |
|
Noncontrolling
Interests |
18 |
|
|
16 |
|
Total Shareholders’
Equity |
10,559 |
|
|
9,624 |
|
|
|
|
|
Total Liabilities and
Shareholders’ Equity |
$ |
28,066 |
|
|
$ |
22,373 |
|
|
|
|
|
|
|
|
|
TYSON FOODS, INC. |
CONSOLIDATED CONDENSED STATEMENTS OF CASH
FLOWS |
(In millions) |
(Unaudited) |
|
|
Twelve Months Ended |
|
September 30, 2017 |
|
October 1, 2016 |
Cash Flows From
Operating Activities: |
|
|
|
Net
income |
$ |
1,778 |
|
|
$ |
1,772 |
|
Depreciation and amortization |
761 |
|
|
705 |
|
Deferred
income taxes |
(39 |
) |
|
84 |
|
Impairment of assets |
214 |
|
|
45 |
|
Share-based compensation expense |
92 |
|
|
81 |
|
Other,
net |
(57 |
) |
|
(34 |
) |
Net
changes in operating assets and liabilities |
(150 |
) |
|
63 |
|
Cash Provided by
Operating Activities |
2,599 |
|
|
2,716 |
|
|
|
|
|
Cash Flows From
Investing Activities: |
|
|
|
Additions
to property, plant and equipment |
(1,069 |
) |
|
(695 |
) |
Purchases
of marketable securities |
(79 |
) |
|
(46 |
) |
Proceeds
from sale of marketable securities |
61 |
|
|
37 |
|
Acquisition, net of cash acquired |
(3,081 |
) |
|
— |
|
Other,
net |
4 |
|
|
20 |
|
Cash Used for Investing
Activities |
(4,164 |
) |
|
(684 |
) |
|
|
|
|
Cash Flows From
Financing Activities: |
|
|
|
Payments
on debt |
(3,159 |
) |
|
(714 |
) |
Proceeds
from issuance of long-term debt |
5,444 |
|
|
1 |
|
Borrowings on revolving credit facility |
1,810 |
|
|
1,065 |
|
Payments
on revolving credit facility |
(2,110 |
) |
|
(765 |
) |
Proceeds
from issuance of commercial paper |
8,138 |
|
|
— |
|
Repayments of commercial paper |
(7,360 |
) |
|
— |
|
Payment
of AdvancePierre TRA liability |
(223 |
) |
|
— |
|
Purchases
of Tyson Class A common stock |
(860 |
) |
|
(1,944 |
) |
Dividends |
(319 |
) |
|
(216 |
) |
Stock
options exercised |
154 |
|
|
128 |
|
Other,
net |
15 |
|
|
68 |
|
Cash Provided by (Used
for) Financing Activities |
1,530 |
|
|
(2,377 |
) |
Effect of Exchange Rate
Changes on Cash |
4 |
|
|
6 |
|
Decrease in Cash and
Cash Equivalents |
(31 |
) |
|
(339 |
) |
Cash and Cash
Equivalents at Beginning of Year |
349 |
|
|
688 |
|
Cash and Cash
Equivalents at End of Period |
$ |
318 |
|
|
$ |
349 |
|
|
|
|
|
|
|
|
|
TYSON FOODS, INC. |
EBITDA Reconciliations |
(In millions) |
(Unaudited) |
|
|
|
Twelve Months Ended |
|
|
September 30, 2017 |
October 1, 2016 |
|
|
|
|
Net income |
|
$ |
1,778 |
|
$ |
1,772 |
|
Less: Interest
income |
|
(7 |
) |
(6 |
) |
Add: Interest
expense |
|
279 |
|
249 |
|
Add: Income tax
expense |
|
850 |
|
826 |
|
Add: Depreciation |
|
642 |
|
617 |
|
Add: Amortization
(a) |
|
106 |
|
80 |
|
EBITDA |
|
$ |
3,648 |
|
$ |
3,538 |
|
|
|
|
|
Adjustments to
EBITDA: |
|
|
|
Add: AdvancePierre
purchase accounting and acquisition related costs (b) |
|
$ |
103 |
|
$ |
— |
|
Add: Impairment related
to the expected sale of a non-protein business |
|
45 |
|
— |
|
Add: Restructuring and
related charges |
|
150 |
|
— |
|
Add: San Diego Prepared
Foods operation impairment |
|
52 |
|
— |
|
Total Adjusted
EBITDA |
|
$ |
3,998 |
|
$ |
3,538 |
|
|
|
|
|
Pro forma Adjustments
to EBITDA: |
|
|
|
Add: AdvancePierre
adjusted EBITDA (prior to acquisition) (c) |
|
$ |
193 |
|
|
n/a |
|
Total Pro forma
adjusted EBITDA |
|
$ |
4,191 |
|
$ |
3,538 |
|
|
|
|
|
Total gross debt |
|
$ |
10,203 |
|
$ |
6,279 |
|
Less: Cash and cash
equivalents |
|
(318 |
) |
(349 |
) |
Less: Short-term
investments |
|
(3 |
) |
(4 |
) |
Total net debt |
|
$ |
9,882 |
|
$ |
5,926 |
|
|
|
|
|
Ratio
Calculations: |
|
|
|
Gross debt/EBITDA |
|
|
2.8x |
|
|
1.8x |
|
Net debt/EBITDA |
|
|
2.7x |
|
|
1.7x |
|
|
|
|
|
|
|
|
|
Gross debt/Adjusted
EBITDA |
|
|
2.6x |
|
|
1.8x |
|
Net debt/Adjusted
EBITDA |
|
|
2.5x |
|
|
1.7x |
|
|
|
|
|
|
|
|
|
Gross debt/Pro forma
Adjusted EBITDA |
|
|
2.4x |
|
|
n/a |
|
Net debt/Pro forma
Adjusted EBITDA |
|
|
2.4x |
|
|
n/a |
|
(a) Excludes the amortization of debt issuance and debt discount
expense of $13 million and $8 million for the twelve months ended
September 30, 2017, and October 1, 2016, respectively, as it
is included in interest expense.
(b) AdvancePierre acquisition and integration costs
includes $36 million of purchase accounting adjustments, $49
million acquisition related costs and $18 million of acquisition
bridge financing fees.
(c) Represents AdvancePierre's pre-acquisition Adjusted
EBITDA, for the approximate eight months ended prior to the June 7,
2017, closing of the acquisition. These amounts are added to our
Adjusted EBITDA for the twelve months ended September 30, 2017, in
order for Net debt to Adjusted EBITDA to include a full twelve
months of AdvancePierre results on a pro forma basis for the twelve
months ended September 30, 2017. The pro forma adjusted EBITDA was
derived from AdvancePierre’s EBITDA from its historical unaudited
financial statements for the three months ended December 31, 2016,
and April 1, 2017, as filed with the Securities and Exchange
Commission, as well as AdvancePierre management unaudited financial
information for the period from April 2, 2017, through the June 7,
2017, closing of the acquisition. These amounts were adjusted to
remove the impact of its merger, acquisition and public filing
expenses as well as related expenses including consultant fees,
accelerated stock-based compensation and other deal costs. We
believe this pro forma presentation is useful and helps management,
investors, and rating agencies enhance their understanding of our
financial performance and to better highlight future financial
trends on a comparable basis with AdvancePierre results included
for the twelve months ended September 30, 2017, given the
significance of the acquisition to our overall results.
EBITDA is defined as net income before interest, income taxes,
depreciation and amortization. Net debt to EBITDA (Adjusted EBITDA
and Pro forma Adjusted EBITDA) represents the ratio of our debt,
net of cash and short-term investments, to EBITDA (and to Adjusted
EBITDA and Pro forma Adjusted EBITDA). EBITDA, Adjusted EBITDA, net
debt to EBITDA and net debt to Adjusted EBITDA (and to Pro forma
Adjusted EBITDA) are presented as supplemental financial
measurements in the evaluation of our business. Adjusted EBITDA is
a tool intended to assist our management and investors in comparing
our performance on a consistent basis for purposes of business
decision-making by removing the impact of certain items that
management believes do not directly reflect our core operations on
an ongoing basis.
We believe the presentation of these financial measures helps
management and investors to assess our operating performance from
period to period, including our ability to generate earnings
sufficient to service our debt, enhances understanding of our
financial performance and highlights operational trends. These
measures are widely used by investors and rating agencies in the
valuation, comparison, rating and investment recommendations of
companies; however, the measurements of EBITDA (and Adjusted EBITDA
and Pro forma Adjusted EBITDA) and net debt to EBITDA (and to
Adjusted EBITDA and Pro forma Adjusted EBITDA) may not be
comparable to those of other companies, which limits their
usefulness as comparative measures. EBITDA (and Adjusted EBITDA and
Pro forma Adjusted EBITDA) and net debt to EBITDA (and to Adjusted
EBITDA and Pro forma Adjusted EBITDA) are not measures required by
or calculated in accordance with generally accepted accounting
principles (GAAP) and should not be considered as substitutes for
net income or any other measure of financial performance reported
in accordance with GAAP or as a measure of operating cash flow or
liquidity. EBITDA (and Adjusted EBITDA and Pro forma Adjusted
EBITDA) is a useful tool for assessing, but is not a reliable
indicator of, our ability to generate cash to service our debt
obligations because certain of the items added to net income to
determine EBITDA (and Adjusted EBITDA and Pro forma Adjusted
EBITDA) involve outlays of cash. As a result, actual cash available
to service our debt obligations will be different from EBITDA (and
Adjusted EBITDA and Pro forma Adjusted EBITDA). Investors should
rely primarily on our GAAP results and use non-GAAP financial
measures only supplementally in making investment decisions.
TYSON FOODS, INC. |
EPS Reconciliations |
(In millions, except per share
data) |
(Unaudited) |
|
|
Fourth Quarter |
|
Twelve Months Ended |
|
Pretax Impact |
|
EPS Impact |
|
Pretax Impact |
|
EPS Impact |
|
2017 |
|
2016 |
|
2017 |
|
2016 |
|
2017 |
|
2016 |
|
2017 |
|
2016 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reported net income per
share attributable to Tyson |
|
|
|
|
$ |
1.07 |
|
|
$ |
1.03 |
|
|
|
|
|
|
$ |
4.79 |
|
|
$ |
4.53 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Add: AdvancePierre
purchase accounting and acquisition related costs (a) |
$ |
26 |
|
|
$ |
— |
|
|
0.04 |
|
|
— |
|
|
$ |
103 |
|
|
$ |
— |
|
|
0.18 |
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Add: Restructuring and
related charges |
$ |
150 |
|
|
$ |
— |
|
|
0.26 |
|
|
— |
|
|
$ |
150 |
|
|
$ |
— |
|
|
0.26 |
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Add: San Diego Prepared
Foods operation impairment |
$ |
— |
|
|
$ |
— |
|
|
— |
|
|
— |
|
|
$ |
52 |
|
|
$ |
— |
|
|
0.09 |
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Add/Less: Impairment
net of tax benefit related to the expected sale of a non-protein
business (b) |
$ |
45 |
|
|
$ |
— |
|
|
0.06 |
|
|
— |
|
|
$ |
45 |
|
|
$ |
— |
|
|
(0.01 |
) |
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less: Recognition of
previously unrecognized tax benefit and audit settlement |
$ |
— |
|
|
$ |
— |
|
|
— |
|
|
(0.07 |
) |
|
$ |
— |
|
|
$ |
— |
|
|
— |
|
|
(0.14 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted net income per
share attributable to Tyson |
|
|
|
|
$ |
1.43 |
|
|
$ |
0.96 |
|
|
|
|
|
|
$ |
5.31 |
|
|
$ |
4.39 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) AdvancePierre purchase accounting and acquisition related
costs for the twelve months ended September 30, 2017, includes a
$36 million purchase accounting adjustment for the fair value
step-up of inventory, $49 million of acquisition related costs and
$18 million of acquisition bridge financing fees.
(b) EPS impact of twelve months ended 2017 includes a tax
benefit related to the expected sale of a non-protein business of
($0.07) recognized in the third quarter of fiscal 2017.
Adjusted net income per share attributable to Tyson (Adjusted
EPS) is presented as a supplementary measure of our financial
performance that is not required by, or presented in accordance
with, GAAP. We use Adjusted EPS as an internal performance
measurement and as one criterion for evaluating our performance
relative to that of our peers. We believe Adjusted EPS is
meaningful to our investors to enhance their understanding of our
financial performance and is frequently used by securities
analysts, investors and other interested parties to compare our
performance with the performance of other companies that report
Adjusted EPS. Further, we believe that Adjusted EPS is a useful
measure because it improves comparability of results of operations
from period to period. Adjusted EPS should not be considered a
substitute for net income per share attributable to Tyson or any
other measure of financial performance reported in accordance with
GAAP. Investors should rely primarily on our GAAP results and use
non-GAAP financial measures only supplementally in making
investment decisions. Our calculation of Adjusted EPS may not be
comparable to similarly titled measures reported by other
companies.
Adjusted net income per share attributable to Tyson guidance is
provided on a non-GAAP basis. The Company is not able to reconcile
its full-year fiscal 2018 Adjusted EPS guidance to its full-year
fiscal 2018 projected GAAP EPS guidance because certain information
necessary to calculate such measure on a GAAP basis is unavailable
or dependent on the timing of future events outside of our control.
Therefore, because of the uncertainty and variability of the nature
of the amount of future adjustments, which could be significant,
the Company is unable to provide a reconciliation of this measure
without unreasonable effort.
TYSON FOODS,
INC. |
|
Operating Income Reconciliation |
|
(In millions) |
|
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Operating Income (Loss) |
(for the fourth quarter ended September 30, 2017) |
|
Beef |
Pork |
Chicken |
Prepared Foods |
Other |
Total |
Reported operating
income (loss) |
$ |
305 |
|
$ |
121 |
|
$ |
263 |
|
$ |
11 |
|
$ |
(19 |
) |
$ |
681 |
|
Add: AdvancePierre purchase accounting and acquisition related
costs (a) |
— |
|
— |
|
3 |
|
14 |
|
9 |
|
26 |
|
Add: Impairment related to the expected sale of a non-protein
business |
— |
|
— |
|
— |
|
45 |
|
— |
|
45 |
|
Add: Restructuring and related charges |
8 |
|
3 |
|
56 |
|
82 |
|
1 |
|
150 |
|
Adjusted operating
income (loss) |
$ |
313 |
|
$ |
124 |
|
$ |
322 |
|
$ |
152 |
|
$ |
(9 |
) |
$ |
902 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Operating Income (Loss) |
(for the twelve months ended September 30, 2017) |
|
Beef |
Pork |
Chicken |
Prepared Foods |
Other |
Total |
Reported operating
income (loss) |
$ |
877 |
|
$ |
645 |
|
$ |
1,053 |
|
$ |
462 |
|
$ |
(106 |
) |
$ |
2,931 |
|
Add: AdvancePierre purchase accounting and acquisition related
costs (b) |
— |
|
— |
|
8 |
|
34 |
|
43 |
|
85 |
|
Add: Impairment related to the expected sale of a non-protein
business |
— |
|
— |
|
— |
|
45 |
|
— |
|
45 |
|
Add: Restructuring and
related charges |
8 |
|
3 |
|
56 |
|
82 |
|
1 |
|
150 |
|
Add: San Diego Prepared
Foods operation impairment |
— |
|
— |
|
— |
|
52 |
|
— |
|
52 |
|
Adjusted operating
income (loss) |
$ |
885 |
|
$ |
648 |
|
$ |
1,117 |
|
$ |
675 |
|
$ |
(62 |
) |
$ |
3,263 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) AdvancePierre purchase accounting and acquisition related
costs impacting operating income for the fourth quarter ended
September 30, 2017, included a $12 million purchase accounting
adjustment for the fair value step-up of inventory and $14 million
of acquisition related costs.
(b) AdvancePierre purchase accounting and acquisition related
costs impacting operating income for the twelve months ended
September 30, 2017, included a $36 million purchase accounting
adjustment for the fair value step-up of inventory and $49 million
of acquisition related costs.
Adjusted operating income is presented as a supplementary
measure of our operating performance that is not required by, or
presented in accordance with, GAAP. We use adjusted operating
income as an internal performance measurement and as one criterion
for evaluating our performance relative to that of our peers. We
believe adjusted operating income is meaningful to our investors to
enhance their understanding of our operating performance and is
frequently used by securities analysts, investors and other
interested parties to compare our performance with the performance
of other companies that report adjusted operating income. Further,
we believe that adjusted operating income is a useful measure
because it improves comparability of results of operations from
period to period. Adjusted operating income should not be
considered as a substitute for operating income or any other
measure of operating performance reported in accordance with GAAP.
Investors should rely primarily on our GAAP results and use
non-GAAP financial measures only supplementally in making
investment decisions. Our calculation of adjusted operating income
may not be comparable to similarly titled measures reported by
other companies.
Tyson Foods Inc. (NYSE:TSN) is one of the world’s largest food
companies and a recognized leader in protein. Founded in 1935 by
John W. Tyson and grown under three generations of family
leadership, the company has a broad portfolio of products and
brands like Tyson®, Jimmy Dean®, Hillshire Farm®, Ball Park®,
Wright®, Aidells®, ibp® and State Fair®. Tyson Foods innovates
continually to make protein more sustainable, tailor food for
everywhere it’s available and raise the world’s expectations for
how much good food can do. Headquartered in Springdale, Arkansas,
the company had 122,000 team members at September 30, 2017. Through
its Core Values, Tyson Foods strives to operate with integrity,
create value for its shareholders, customers, communities and team
members and serve as a steward of the animals, land and environment
entrusted to it. Visit www.tysonfoods.com.
A conference call to discuss the Company's financial results
will be held at 9 a.m. Eastern Monday, November 13, 2017.
Participants may pre-register for the call at
http://dpregister.com/10113796. Callers who pre-register will be
given a conference passcode and 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. Those without internet access or who are unable to
pre-register may dial-in by calling toll free 1-844-890-1795 or
international toll 1-412-717-9589.
A live webcast, including slides, will be available on the Tyson
Foods Investor Relations website at http://ir.tyson.com. The
webcast also can be accessed by using the direct
link https://event.on24.com/wcc/r/1471926/F47744250AC5C660BD04A206148A7410.
A replay of the call will be available until December 13, 2017,
toll free at 1-877-344-7529, international toll 1-412-317-0088 or
Canada toll free 855-669-9658. The replay access code
is 10113796. Financial information, such as
this news release, as well as other supplemental data, can be
accessed from the Company's web site at http://ir.tyson.com.
To download TSN’s free investor relations app, which offers
access to SEC filings, news releases, transcripts, webcasts and
presentations, please visit the App Store
or https://itunes.apple.com/us/app/tyson-foods-investor-relations/id924277754?ls=1&mt=8 for
iPhone, and iPad or Google Play for Android mobile devices at
https://play.google.com/store/apps/details?id=com.theirapp.tyson.
Forward-Looking StatementsCertain information
contained in the press release may constitute forward-looking
statements, including but not limited to statements relating to
expected performance, statements appearing in the “Outlook” section
and statements relating to adjusted EPS guidance and synergies
estimates. These forward-looking statements are subject to a number
of factors and uncertainties which could cause our actual results
and experiences to differ materially from the anticipated results
and expectations expressed in such forward-looking statements. We
wish to caution readers not to place undue reliance on any
forward-looking statements, which speak only as of the date made.
Among the factors that may cause actual results and experiences to
differ from anticipated results and expectations expressed in such
forward-looking statements are the following: (i) fluctuations in
the cost and availability of inputs and raw materials, such as live
cattle, live swine, feed grains (including corn and soybean meal)
and energy; (ii) market conditions for finished products,
including competition from other global and domestic food
processors, supply and pricing of competing products and
alternative proteins and demand for alternative proteins; (iii)
outbreak of a livestock disease (such as avian influenza (AI) or
bovine spongiform encephalopathy (BSE)), which could have an
adverse effect on livestock we own, the availability of livestock
we purchase, consumer perception of certain protein products or our
ability to access certain domestic and foreign markets; (iv) the
integration of AdvancePierre Foods Holdings, Inc.; (v) the
effectiveness of our financial fitness program; (vi) the
implementation of an enterprise resource planning system; (vii)
access to foreign markets together with foreign economic
conditions, including currency fluctuations, import/export
restrictions and foreign politics; (viii) changes in availability
and relative costs of labor and contract growers and our ability to
maintain good relationships with employees, labor unions, contract
growers and independent producers providing us livestock; (ix)
issues related to food safety, including costs resulting from
product recalls, regulatory compliance and any related claims or
litigation; (x) changes in consumer preference and diets and our
ability to identify and react to consumer trends; (xi)
effectiveness of advertising and marketing programs; (xii) our
ability to leverage brand value propositions; (xiii) risks
associated with leverage, including cost increases due to rising
interest rates or changes in debt ratings or outlook; (xiv)
impairment in the carrying value of our goodwill or indefinite life
intangible assets; (xv) compliance with and changes to regulations
and laws (both domestic and foreign), including changes in
accounting standards, tax laws, environmental laws, agricultural
laws and occupational, health and safety laws; (xvi) adverse
results from litigation; (xvii) cyber incidents, security breaches
or other disruptions of our information technology systems; (xviii)
our ability to make effective acquisitions or joint ventures and
successfully integrate newly acquired businesses into existing
operations; (xix) risks associated with our commodity purchasing
activities; (xx) the effect of, or changes in, general economic
conditions; (xxi) significant marketing plan changes by large
customers or loss of one or more large customers; (xxii) impacts on
our operations caused by factors and forces beyond our control,
such as natural disasters, fire, bioterrorism, pandemics or extreme
weather; (xxiii) failure to maximize or assert our intellectual
property rights; (xxiv) our participation in a multiemployer
pension plan; (xxv) the Tyson Limited Partnership’s ability to
exercise significant control over the Company; (xxvi) effects
related to changes in tax rates, valuation of deferred tax assets
and liabilities, or tax laws and their interpretation; (xxvii)
volatility in capital markets or interest rates; and (xxviii) those
factors listed under Item 1A. “Risk Factors” included in our Annual
Report filed on Form 10-K for the period ended September 30,
2017.
Media Contact: Gary Mickelson, 479-290-6111Investor
Contact: Jon Kathol, 479-290-4235
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