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 |
|
2020 |
|
2019 |
|
2020 |
|
2019 |
Sales |
$ |
11,460 |
|
|
$ |
10,884 |
|
|
$ |
43,185 |
|
|
$ |
42,405 |
|
Operating Income |
1,012 |
|
|
604 |
|
|
3,114 |
|
|
2,827 |
|
|
|
|
|
|
|
|
|
Net Income |
695 |
|
|
372 |
|
|
2,150 |
|
|
2,035 |
|
Less: Net Income Attributable
to Noncontrolling Interests |
3 |
|
|
3 |
|
|
10 |
|
|
13 |
|
Net Income Attributable to
Tyson |
$ |
692 |
|
|
$ |
369 |
|
|
$ |
2,140 |
|
|
$ |
2,022 |
|
|
|
|
|
|
|
|
|
Net Income Per Share
Attributable to Tyson |
$ |
1.90 |
|
|
$ |
1.01 |
|
|
$ |
5.86 |
|
|
$ |
5.52 |
|
|
|
|
|
|
|
|
|
Adjusted¹ Sales |
$ |
10,641 |
|
|
$ |
10,884 |
|
|
$ |
42,366 |
|
|
$ |
42,405 |
|
|
|
|
|
|
|
|
|
Adjusted¹ Operating
Income |
$ |
961 |
|
|
$ |
686 |
|
|
$ |
3,116 |
|
|
$ |
2,977 |
|
|
|
|
|
|
|
|
|
Adjusted¹ Net Income Per Share
Attributable to Tyson |
$ |
1.81 |
|
|
$ |
1.21 |
|
|
$ |
5.64 |
|
|
$ |
5.46 |
|
1 Adjusted sales, adjusted operating income and adjusted net
income per share attributable to Tyson (Adjusted EPS) are non-GAAP
financial measures and are explained and reconciled to a comparable
GAAP measure at the end of this release. Adjusted sales, adjusted
operating income and adjusted EPS for the fourth quarter and twelve
months of fiscal 2020 are presented on a 13-week and 52-week basis,
respectively.
Fiscal 2020 Highlights
- GAAP EPS of $5.86, up 6% from prior year; Adjusted EPS
of $5.64 (52-week basis), up 3% from prior year
- GAAP operating income of $3,114 million, up 10% from
prior year; Adjusted operating income of $3,116 million (52-week
basis), up 5% from prior year
- Total Company GAAP operating margin of
7.2%; Adjusted operating margin of 7.4% (52-week
basis)
- Generated approximately $3.9 billion of operating cash
flows
- Results negatively impacted by approximately $540
million of direct incremental expenses related to
COVID-19
Fourth Quarter Highlights
- GAAP EPS of $1.90, up 88% from prior year; Adjusted EPS
of $1.81 (13-week basis), up 50% from prior year
- GAAP operating income of $1,012
million, up 68% from prior year; Adjusted operating income of $961
million (13-week basis), up 40% from prior year
- Total Company GAAP operating margin of 8.8%; Adjusted
operating margin of 9.0% (13-week basis)
- Liquidity of $3.2 billion at October
3, 2020
- Reduced total debt by $690 million
- Results negatively impacted by approximately $200
million of direct incremental expenses related to
COVID-19
“Our business performed well and
delivered strong fourth quarter and full-year
results,” said Dean Banks, President & CEO of Tyson
Foods. “Our team members, agricultural
partners, and customers have shown resilience.
This has enabled us to maintain and
accelerate our efforts to provide global
consumers with a safe
and accessible food supply.”
“While we will continue to face pandemic-related challenges in
fiscal 2021, we’re settling the business down to
be focused on executing our long-term strategy
while generating strong returns for shareholders. I’m
excited for the opportunities ahead for this great company,
and am certain we have the people, products,
and strategies in place to drive future
growth.”
SEGMENT RESULTS (in millions)
Sales |
(for the fourth quarter and twelve months ended October 3, 2020,
and September 28, 2019) |
|
Fourth Quarter |
Twelve Months Ended |
|
|
|
Volume |
Avg. Price |
|
|
Volume |
Avg. Price |
|
2020 |
2019 |
Change |
Change |
2020 |
2019 |
Change |
Change |
Beef |
$ |
4,272 |
|
$ |
3,861 |
|
11.8 |
% |
(1.2 |
)% |
$ |
15,742 |
|
$ |
15,828 |
|
(4.5 |
)% |
4.0 |
% |
Pork |
1,368 |
|
1,258 |
|
15.2 |
% |
(6.4 |
)% |
5,128 |
|
4,932 |
|
1.8 |
% |
2.2 |
% |
Chicken |
3,433 |
|
3,447 |
|
1.9 |
% |
(2.3 |
)% |
13,234 |
|
13,300 |
|
0.1 |
% |
(0.6 |
)% |
Prepared
Foods |
2,277 |
|
2,153 |
|
1.6 |
% |
4.2 |
% |
8,532 |
|
8,418 |
|
(1.9 |
)% |
3.3 |
% |
International/Other |
491 |
|
513 |
|
(3.5 |
)% |
(1.0 |
)% |
1,856 |
|
1,289 |
|
50.1 |
% |
(6.1 |
)% |
Intersegment
Sales |
(381 |
) |
(348 |
) |
n/a |
n/a |
(1,307 |
) |
(1,362 |
) |
n/a |
n/a |
Total |
$ |
11,460 |
|
$ |
10,884 |
|
5.9 |
% |
(0.6 |
)% |
$ |
43,185 |
|
$ |
42,405 |
|
0.7 |
% |
1.1 |
% |
Operating Income (Loss) |
(for the fourth quarter and twelve months ended October 3, 2020,
and September 28, 2019) |
|
Fourth Quarter |
Twelve Months Ended |
|
|
|
Operating Margin |
|
|
Operating Margin |
|
2020 |
2019 |
2020 |
2019 |
2020 |
2019 |
2020 |
2019 |
Beef |
$ |
516 |
|
$ |
376 |
|
12.1 |
% |
9.7 |
% |
$ |
1,686 |
|
$ |
1,107 |
|
10.7 |
% |
7.0 |
% |
Pork |
174 |
|
26 |
|
12.7 |
% |
2.1 |
% |
565 |
|
263 |
|
11.0 |
% |
5.3 |
% |
Chicken |
86 |
|
90 |
|
2.5 |
% |
2.6 |
% |
122 |
|
621 |
|
0.9 |
% |
4.7 |
% |
Prepared
Foods |
249 |
|
104 |
|
10.9 |
% |
4.8 |
% |
743 |
|
843 |
|
8.7 |
% |
10.0 |
% |
International/Other |
(13 |
) |
8 |
|
n/a |
n/a |
(2 |
) |
(7 |
) |
n/a |
n/a |
Total |
$ |
1,012 |
|
$ |
604 |
|
8.8 |
% |
5.5 |
% |
$ |
3,114 |
|
$ |
2,827 |
|
7.2 |
% |
6.7 |
% |
Note: On June 3, 2019, we acquired the Thai and European
operations of BRF S.A. The post-acquisition results from operations
of these businesses are included in International/Other for segment
presentation. On November 30, 2018, we acquired Keystone Foods. The
post-acquisition results from operations of this business are
included in our Chicken segment for Keystone's domestic operations
and results for operations of Keystone's International business are
included in International/Other for segment presentation.
Adjusted Segment Results (in millions)
Adjusted Sales (Non-GAAP) |
(for the fourth quarter and twelve months ended October 3, 2020,
and September 28, 2019) |
|
Fourth Quarter |
Twelve Months Ended |
|
|
|
Adjusted Volume |
Adjusted Avg. Price |
|
|
Adjusted Volume |
Adjusted Avg. Price |
|
2020 |
2019 |
Change |
Change |
2020 |
2019 |
Change |
Change |
Beef |
$ |
3,966 |
|
$ |
3,861 |
|
3.8 |
% |
(1.1 |
)% |
$ |
15,436 |
|
$ |
15,828 |
|
(6.5 |
)% |
4.0 |
% |
Pork |
1,270 |
|
1,258 |
|
6.9 |
% |
(5.9 |
)% |
5,030 |
|
4,932 |
|
(0.2 |
)% |
2.2 |
% |
Chicken |
3,188 |
|
3,447 |
|
(5.4 |
)% |
(2.1 |
)% |
12,989 |
|
13,300 |
|
(1.7 |
)% |
(0.6 |
)% |
Prepared
Foods |
2,114 |
|
2,153 |
|
(5.6 |
)% |
3.8 |
% |
8,369 |
|
8,418 |
|
(3.7 |
)% |
3.1 |
% |
International/Other |
456 |
|
513 |
|
(10.4 |
)% |
(0.9 |
)% |
1,821 |
|
1,289 |
|
47.7 |
% |
(6.5 |
)% |
Intersegment
Sales |
(353 |
) |
(348 |
) |
n/a |
n/a |
(1,279 |
) |
(1,362 |
) |
n/a |
n/a |
Total |
$ |
10,641 |
|
$ |
10,884 |
|
(1.6 |
)% |
(0.6 |
)% |
$ |
42,366 |
|
$ |
42,405 |
|
(1.3 |
)% |
1.2 |
% |
Adjusted Operating Income (Loss) (Non-GAAP) |
(for the fourth quarter and twelve months ended October 3, 2020,
and September 28, 2019) |
|
Fourth Quarter |
Twelve Months Ended |
|
|
|
Adjusted Operating Margin (Non-GAAP) |
|
|
Adjusted Operating Margin (Non-GAAP) |
|
2020 |
2019 |
2020 |
2019 |
2020 |
2019 |
2020 |
2019 |
Beef |
$ |
483 |
|
$ |
407 |
|
12.2 |
% |
10.5 |
% |
$ |
1,659 |
|
$ |
1,139 |
|
10.7 |
% |
7.2 |
% |
Pork |
|
162 |
|
|
27 |
|
12.8 |
% |
2.1 |
% |
|
555 |
|
|
264 |
|
11.0 |
% |
5.4 |
% |
Chicken |
|
91 |
|
|
95 |
|
2.9 |
% |
2.8 |
% |
|
148 |
|
|
655 |
|
1.1 |
% |
4.9 |
% |
Prepared Foods |
|
236 |
|
|
149 |
|
11.2 |
% |
6.9 |
% |
|
752 |
|
|
902 |
|
9.0 |
% |
10.7 |
% |
International/Other |
|
(11 |
) |
|
8 |
|
n/a |
n/a |
|
2 |
|
|
17 |
|
n/a |
n/a |
Total |
$ |
961 |
|
$ |
686 |
|
9.0 |
% |
6.3 |
% |
$ |
3,116 |
|
$ |
2,977 |
|
7.4 |
% |
7.0 |
% |
Note: Adjusted sales, adjusted operating income and adjusted
operating margin are non-GAAP financial measures and are explained
and reconciled to comparable GAAP measures at the end of this
release. Adjusted sales, adjusted operating income, adjusted volume
change, adjusted average price change and adjusted operating margin
for the fourth quarter and twelve months of fiscal 2020 are
presented on a 13-week and 52-week basis, respectively.
Adjusted sales (due to the impact of the additional week in the
fourth quarter of fiscal 2020), 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 sales, adjusted
operating income and adjusted operating margin as internal
performance measurements and as criteria for evaluating our
performance relative to that of our peers. We believe adjusted
sales, 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 sales, adjusted operating income and adjusted operating
margin. Further, we believe that adjusted sales, adjusted operating
income and adjusted operating margin are useful measures because
they improve comparability of results of operations from period to
period. Adjusted sales, adjusted operating income and adjusted
operating margin should not be considered as substitutes for sales,
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 sales, adjusted operating
income and adjusted operating margin may not be comparable to
similarly titled measures reported by other companies.
COVID-19 Expenses
- We incurred direct incremental expenses
associated with the impact of COVID-19 totaling approximately $200
million and $540 million for the fourth quarter and twelve months
of fiscal year 2020, respectively. These direct incremental
expenses primarily included team member costs associated with
worker health and availability and production facility downtime,
including direct costs for personal protection equipment,
production facility sanitization, COVID-19 testing, donations,
product downgrades and rendered product, partially offset by CARES
Act credits. Other indirect costs associated with COVID-19 are not
reflected in this amount, including costs associated with raw
materials, distribution and transportation, plant underutilization
and reconfiguration, premiums paid to cattle producers and pricing
discounts.
Summary of Segment Results
- Beef - Sales volume increased 11.8%, or
increased 3.8% after removing the impact of an additional week, for
the fourth quarter of fiscal 2020 primarily due to a fire that
caused the temporary closure of a production facility during the
fourth quarter of fiscal 2019. Sales volume decreased 4.5%, or
decreased 6.5% after removing the impact of an additional week, for
fiscal 2020 due to lower production throughput associated with the
impact of COVID-19 during portions of fiscal 2020 and a reduction
in live cattle harvest capacity as a result of a fire that caused
the temporary closure of a production facility for the majority of
the first quarter of fiscal 2020. Average sales price decreased in
the fourth quarter of fiscal 2020 associated with increased
availability of live cattle supply and lower livestock cost.
Average sales price increased in fiscal 2020 as beef demand
remained strong amid supply disruptions related to the impact of
COVID-19. Operating income increased primarily due to market
conditions, including COVID-19 disruptions, which increased the
spread between preexisting contractual agreements and the cost of
fed cattle, and the impact of an additional week in fiscal 2020,
partially offset by price reductions offered to customers, as well
as production inefficiencies and direct incremental expenses
related to COVID-19. Additionally, the fourth quarter of fiscal
2019 was impacted by $31 million of net incremental costs from the
production facility fire.
- Pork - Sales volume increased 15.2%, or
increased 6.9% after removing the impact of an additional week, for
the fourth quarter of fiscal 2020 due to strong demand for our pork
products and increased domestic availability of live hogs. Sales
volume increased 1.8%, or decreased slightly after removing the
impact of an additional week, for fiscal 2020, due to strong demand
for our pork products and increased domestic availability of live
hogs, offset by lower production throughput associated with
COVID-19 during portions of fiscal 2020. Average sales price in the
fourth quarter of fiscal 2020 decreased associated with lower
livestock costs. Average sales price in fiscal 2020 increased as
pork demand remained strong amid supply disruptions related to the
impact of COVID-19, partially offset by lower livestock costs.
Operating income increased primarily due to market conditions,
including COVID-19 disruptions, which increased the spread between
preexisting contractual agreements and the cost of live hogs, and
the impact of an additional week in fiscal 2020, partially offset
by production inefficiencies and direct incremental expenses
related to COVID-19.
- Chicken - Sales volume increased 1.9%,
or decreased 5.4% after removing the impact of an additional week,
for fourth quarter of fiscal 2020, and increased slightly, or
decreased 1.7% after removing the impact of an additional week, for
fiscal 2020 primarily due to lower production throughput associated
with the impact of COVID-19 during portions of fiscal 2020 and
lower foodservice demand, partially offset by increased retail
demand. Average sales price decreased primarily due to weaker
chicken pricing as a result of market conditions. Operating income
decreased primarily from market conditions, unfavorable product
mix, as well as production inefficiencies and direct incremental
expenses related to COVID-19. Operating income was also impacted by
approximately $45 million of net derivative gains in the fourth
quarter of fiscal 2020 and approximately $70 million of net losses
in the fourth quarter of 2019, in addition to approximately $50
million of decreased feed ingredient costs in the fourth quarter of
fiscal 2020 as compared to the fourth quarter of fiscal 2019. For
fiscal 2020, net derivative results and feed ingredient costs were
relatively flat as compared to fiscal 2019. Operating income was
further impacted by $34 million and $21 million in restructuring
costs incurred in fiscal 2020 and fiscal 2019, respectively.
- Prepared Foods - Sales volume increased
1.6%, or decreased 5.6% after removing the impact of an additional
week, for fourth quarter of fiscal 2020, and decreased 1.9%, or
decreased 3.7% after removing the impact of an additional week, for
fiscal 2020 as growth in volume across the retail channel was
offset by a reduction in the foodservice channel related to reduced
demand and lower production throughput due to the impact of
COVID-19 during portions of fiscal 2020. Average sales price
increased in the fourth quarter and for fiscal 2020 due to
favorable product mix associated with the surge in retail demand,
and for fiscal 2020, the pass through of increased raw material
costs. Operating income increased in the fourth quarter of fiscal
2020 due to favorable product mix associated with strong demand for
retail products and the impact of an additional week, partially
offset by the impacts of reduced foodservice sales. Operating
income decreased in fiscal 2020 primarily due to increased
operating costs, including a $105 million increase in net raw
material costs and derivative losses, as well as production
inefficiencies and direct incremental expenses related to COVID-19,
partially offset by reduced promotional spend. Operating income was
also impacted by $28 million and $18 million in restructuring costs
incurred in fiscal 2020 and fiscal 2019, respectively.
Additionally, operating income in the fourth quarter of fiscal 2019
was further impacted by a $41 million impairment from a planned
divestiture of a business.
OutlookFor fiscal 2021, USDA indicates domestic
protein production (beef, pork, chicken and turkey) should increase
approximately 1% from fiscal 2020 levels. The following is a
summary of the outlook for each of our segments, as well as an
outlook for revenues, capital expenditures, net interest expense,
liquidity, tax rate and dividends for fiscal 2021. On an adjusted
basis, we anticipate the Beef and Pork segments will remain strong,
although not at fiscal 2020 levels, and we believe the Chicken and
Prepared Foods segments will likely strengthen in fiscal 2021 as
compared to fiscal 2020.2
- COVID-19 – We continue to
proactively manage the company and its operations through this
global pandemic. Given the nature of our business, demand for food
and protein may shift amongst sales channels and experience
disruptions, but over time we expect worldwide demand to continue
to increase. We are experiencing multiple challenges
related to the pandemic. These challenges are anticipated to
increase our operating costs and negatively impact our volumes into
fiscal 2021. We cannot currently predict the ultimate impact that
COVID-19 will have on our short- and long-term demand, as it will
depend on, among other things, the severity and duration of the
COVID-19 crisis. Our liquidity is expected to be adequate to
continue to run our operations and meet our obligations as they
become due.
- Beef – USDA projects domestic
production will increase approximately 2% in fiscal 2021 as
compared to a COVID-19 impacted fiscal 2020. For fiscal 2021, we
also expect sufficient supplies in regions where we operate our
plants.
- Pork – USDA projects relatively flat to
slightly increased domestic production in fiscal 2021 as compared
to a COVID-19 impacted fiscal 2020.
- Chicken – USDA projects a relatively
flat to slightly increased outlook for chicken production in fiscal
2021 as compared to fiscal 2020.
- Prepared Foods – We will continue to be
responsive to changes in consumer behavior as a result of the
impacts of COVID-19 as we move into fiscal 2021.
- International/Other – We expect
improved results from our foreign operations in fiscal 2021.
- Revenue – We expect sales to be $42
billion to $44 billion for fiscal 2021.
- Capital Expenditures – For fiscal 2021,
we expect capital expenditures to be approximately $1.2 billion to
$1.4 billion. Capital expenditures include spending for capacity
expansion, growth, safety, animal well-being, infrastructure
replacements and upgrades, and operational improvements that are
expected to result in production and labor efficiencies, yield
improvements and sales channel flexibility.
- Net Interest Expense – We expect net
interest expense to approximate $440 million for fiscal 2021.
- Liquidity – We expect total liquidity,
which was approximately $3.2 billion at October 3, 2020, to
remain above our minimum liquidity target of $1.0 billion.
- Tax Rate – We currently expect our
adjusted effective tax rate to be around 23% in fiscal 2021.
- Dividends – Effective November 13,
2020, the Board of Directors increased the quarterly dividend
previously declared on August 6, 2020, to $0.445 per share on our
Class A common stock and $0.4005 per share on our Class B common
stock. The increased quarterly dividend is payable on December 15,
2020, to shareholders of record at the close of business on
December 1, 2020. The Board also declared a quarterly dividend of
$0.445 per share on our Class A common stock and $0.4005 per share
on our Class B common stock, payable on March 15, 2021, to
shareholders of record at the close of business on March 1, 2021.
We anticipate the remaining quarterly dividends in fiscal 2021 will
be $0.445 and $0.4005 per share of our Class A and Class B stock,
respectively. This results in an annual dividend rate in fiscal
2021 of $1.78 for Class A shares and $1.602 for Class B shares, or
a 6% increase compared to the fiscal 2020 annual dividend
rate.
2 The Company is not able to reconcile its full-year fiscal 2021
adjusted results to its fiscal 2021 projected GAAP results 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 measures should not be considered a substitute for
operating margin or any other measures 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.
TYSON FOODS,
INC.CONSOLIDATED CONDENSED STATEMENTS OF
INCOME(In millions, except per share
data)(Unaudited)
|
Three Months Ended |
|
Twelve Months Ended |
|
October 3, 2020 |
|
September 28, 2019 |
|
October 3, 2020 |
|
September 28, 2019 |
Sales |
$ |
11,460 |
|
|
$ |
10,884 |
|
|
$ |
43,185 |
|
|
$ |
42,405 |
|
Cost of Sales |
9,850 |
|
|
9,745 |
|
|
37,801 |
|
|
37,383 |
|
Gross Profit |
1,610 |
|
|
1,139 |
|
|
5,384 |
|
|
5,022 |
|
|
|
|
|
|
|
|
|
Selling, General and
Administrative |
598 |
|
|
535 |
|
|
2,270 |
|
|
2,195 |
|
Operating Income |
1,012 |
|
|
604 |
|
|
3,114 |
|
|
2,827 |
|
Other (Income) Expense: |
|
|
|
|
|
|
|
Interest income |
(1 |
) |
|
(2 |
) |
|
(10 |
) |
|
(11 |
) |
Interest expense |
124 |
|
|
123 |
|
|
485 |
|
|
462 |
|
Other, net |
2 |
|
|
17 |
|
|
(131 |
) |
|
(55 |
) |
Total Other (Income)
Expense |
125 |
|
|
138 |
|
|
344 |
|
|
396 |
|
Income before Income
Taxes |
887 |
|
|
466 |
|
|
2,770 |
|
|
2,431 |
|
Income Tax Expense |
192 |
|
|
94 |
|
|
620 |
|
|
396 |
|
Net Income |
695 |
|
|
372 |
|
|
2,150 |
|
|
2,035 |
|
Less: Net Income Attributable
to Noncontrolling Interests |
3 |
|
|
3 |
|
|
10 |
|
|
13 |
|
Net Income Attributable to
Tyson |
$ |
692 |
|
|
$ |
369 |
|
|
$ |
2,140 |
|
|
$ |
2,022 |
|
Weighted Average Shares
Outstanding: |
|
|
|
|
|
|
|
Class A Basic |
292 |
|
|
293 |
|
|
293 |
|
|
293 |
|
Class B Basic |
70 |
|
|
70 |
|
|
70 |
|
|
70 |
|
Diluted |
364 |
|
|
367 |
|
|
365 |
|
|
366 |
|
Net Income Per Share
Attributable to Tyson: |
|
|
|
|
|
|
|
Class A Basic |
$ |
1.95 |
|
|
$ |
1.03 |
|
|
$ |
6.02 |
|
|
$ |
5.67 |
|
Class B Basic |
$ |
1.76 |
|
|
$ |
0.93 |
|
|
$ |
5.41 |
|
|
$ |
5.10 |
|
Diluted |
$ |
1.90 |
|
|
$ |
1.01 |
|
|
$ |
5.86 |
|
|
$ |
5.52 |
|
Dividends Declared Per
Share: |
|
|
|
|
|
|
|
Class A |
$ |
0.420 |
|
|
$ |
0.375 |
|
|
$ |
1.725 |
|
|
$ |
1.575 |
|
Class B |
$ |
0.378 |
|
|
$ |
0.338 |
|
|
$ |
1.553 |
|
|
$ |
1.418 |
|
|
|
|
|
|
|
|
|
Sales Growth |
5.3 |
% |
|
|
|
1.8 |
% |
|
|
Margins: (Percent of
Sales) |
|
|
|
|
|
|
|
Gross Profit |
14.0 |
% |
|
10.5 |
% |
|
12.5 |
% |
|
11.8 |
% |
Operating Income |
8.8 |
% |
|
5.5 |
% |
|
7.2 |
% |
|
6.7 |
% |
Net Income Attributable to Tyson |
6.0 |
% |
|
3.4 |
% |
|
5.0 |
% |
|
4.8 |
% |
Effective Tax Rate |
21.6 |
% |
|
20.2 |
% |
|
22.4 |
% |
|
16.3 |
% |
TYSON FOODS,
INC.CONSOLIDATED CONDENSED BALANCE
SHEETS(In
millions)(Unaudited)
|
October 3, 2020 |
|
September 28, 2019 |
Assets |
|
|
|
Current Assets: |
|
|
|
Cash and cash equivalents |
$ |
1,420 |
|
|
$ |
484 |
|
Accounts receivable, net |
1,952 |
|
|
2,173 |
|
Inventories |
4,144 |
|
|
4,108 |
|
Other current assets |
367 |
|
|
404 |
|
Total Current Assets |
7,883 |
|
|
7,169 |
|
Net Property, Plant and
Equipment |
7,596 |
|
|
7,282 |
|
Goodwill |
10,899 |
|
|
10,844 |
|
Intangible Assets, net |
6,774 |
|
|
7,037 |
|
Other Assets |
1,589 |
|
|
765 |
|
Total Assets |
$ |
34,741 |
|
|
$ |
33,097 |
|
|
|
|
|
Liabilities and
Shareholders’ Equity |
|
|
|
Current Liabilities: |
|
|
|
Current debt |
$ |
548 |
|
|
$ |
2,102 |
|
Accounts payable |
1,876 |
|
|
1,926 |
|
Other current liabilities |
1,810 |
|
|
1,485 |
|
Total Current Liabilities |
4,234 |
|
|
5,513 |
|
Long-Term Debt |
10,791 |
|
|
9,830 |
|
Deferred Income Taxes |
2,391 |
|
|
2,356 |
|
Other Liabilities |
1,728 |
|
|
1,172 |
|
|
|
|
|
Total Tyson Shareholders’
Equity |
15,465 |
|
|
14,082 |
|
Noncontrolling Interests |
132 |
|
|
144 |
|
Total Shareholders’
Equity |
15,597 |
|
|
14,226 |
|
|
|
|
|
Total Liabilities and
Shareholders’ Equity |
$ |
34,741 |
|
|
$ |
33,097 |
|
TYSON FOODS,
INC.CONSOLIDATED CONDENSED STATEMENTS OF CASH
FLOWS(In
millions)(Unaudited)
|
Twelve Months Ended |
|
October 3, 2020 |
|
September 28, 2019 |
Cash Flows From Operating
Activities: |
|
|
|
Net income |
$ |
2,150 |
|
|
$ |
2,035 |
|
Depreciation and amortization |
1,192 |
|
|
1,098 |
|
Deferred income taxes |
45 |
|
|
92 |
|
Gain on dispositions of businesses |
— |
|
|
(17 |
) |
Impairment of assets |
48 |
|
|
94 |
|
Stock-based compensation expense |
89 |
|
|
77 |
|
Other, net |
(124 |
) |
|
(20 |
) |
Net changes in operating assets and liabilities |
474 |
|
|
(846 |
) |
Cash Provided by Operating
Activities |
3,874 |
|
|
2,513 |
|
|
|
|
|
Cash Flows From Investing
Activities: |
|
|
|
Additions to property, plant and equipment |
(1,199 |
) |
|
(1,259 |
) |
Purchases of marketable securities |
(105 |
) |
|
(64 |
) |
Proceeds from sale of marketable securities |
87 |
|
|
63 |
|
Acquisitions, net of cash acquired |
— |
|
|
(2,462 |
) |
Proceeds from sale of business |
29 |
|
|
170 |
|
Acquisition of equity investments |
(183 |
) |
|
— |
|
Other, net |
(52 |
) |
|
88 |
|
Cash Used for Investing
Activities |
(1,423 |
) |
|
(3,464 |
) |
|
|
|
|
Cash Flows From Financing
Activities: |
|
|
|
Proceeds from issuance of debt |
1,609 |
|
|
4,634 |
|
Payments on debt |
(1,212 |
) |
|
(3,208 |
) |
Borrowings on revolving credit facility |
1,210 |
|
|
1,135 |
|
Payments on revolving credit facility |
(1,280 |
) |
|
(1,065 |
) |
Proceeds from issuance of commercial paper |
14,272 |
|
|
17,722 |
|
Repayments of commercial paper |
(15,271 |
) |
|
(17,327 |
) |
Purchases of Tyson Class A common stock |
(207 |
) |
|
(252 |
) |
Dividends |
(601 |
) |
|
(537 |
) |
Stock options exercised |
30 |
|
|
99 |
|
Other, net |
(18 |
) |
|
(30 |
) |
Cash (Used for) Provided by
Financing Activities |
(1,468 |
) |
|
1,171 |
|
Effect of Exchange Rate
Changes on Cash |
(1 |
) |
|
(6 |
) |
Increase in Cash and Cash
Equivalents and Restricted Cash |
982 |
|
|
214 |
|
Cash and Cash Equivalents and
Restricted Cash at Beginning of Year |
484 |
|
|
270 |
|
Cash and Cash Equivalents and
Restricted Cash at End of Period |
1,466 |
|
|
484 |
|
Less: Restricted Cash at End
of Period |
46 |
|
|
— |
|
Cash and Cash Equivalents at
End of Period |
$ |
1,420 |
|
|
$ |
484 |
|
TYSON FOODS, INC.EBITDA
Reconciliations(In
millions)(Unaudited)
|
Twelve Months Ended |
|
October 3, 2020 |
|
September 28, 2019 |
|
|
|
Net income |
$ |
2,150 |
|
|
$ |
2,035 |
|
Less: Interest income |
(10 |
) |
|
(11 |
) |
Add: Interest expense |
485 |
|
|
462 |
|
Add: Income tax expense |
620 |
|
|
396 |
|
Add: Depreciation |
900 |
|
|
819 |
|
Add: Amortization (a) |
278 |
|
|
267 |
|
EBITDA |
$ |
4,423 |
|
|
$ |
3,968 |
|
|
|
|
Adjustments to EBITDA: |
|
|
Add: Restructuring and related
charges |
75 |
|
|
41 |
|
Add: Beef production facility
fire costs, net of insurance proceeds |
1 |
|
|
31 |
|
Add/(Less): Loss/(Gain) from
pension plan terminations |
(116 |
) |
|
15 |
|
Add: Keystone purchase
accounting and acquisition related costs (b) |
— |
|
|
37 |
|
Add: Impairment associated
with the divestiture of a business |
— |
|
|
41 |
|
Less: Gain on sale of
investment |
— |
|
|
(55 |
) |
Less: Impact of additional
week (c) |
(96 |
) |
|
— |
|
Total Adjusted EBITDA (52-week
basis) |
$ |
4,287 |
|
|
$ |
4,078 |
|
|
|
|
Total gross debt |
$ |
11,339 |
|
|
$ |
11,932 |
|
Less: Cash and cash
equivalents |
(1,420 |
) |
|
(484 |
) |
Less: Short-term
investments |
— |
|
|
(1 |
) |
Total net debt |
$ |
9,919 |
|
|
$ |
11,447 |
|
|
|
|
Ratio Calculations: |
|
|
Gross debt/EBITDA |
2.6x |
|
3.0x |
Net debt/EBITDA |
2.2x |
|
2.9x |
|
|
|
|
|
|
Gross debt/Adjusted
EBITDA |
2.6x |
|
2.9x |
Net debt/Adjusted EBITDA |
2.3x |
|
2.8x |
- Excludes the amortization of debt issuance and debt discount
expense of $14 million and $12 million for the twelve months ended
October 3, 2020 and September 28, 2019, respectively, as
it is included in interest expense.
- Keystone acquisition and integration costs for fiscal year 2019
included $11 million of purchase accounting adjustments and $26
million of acquisition related costs.
- The estimated impact to adjusted EBITDA of the additional week
in fiscal 2020 was calculated as fourth quarter EBITDA (14-week
basis) of $1,322 (which is comprised of fourth quarter 14-week
basis net income of $695 million, less interest income of $1
million, plus interest expense of $124 million, plus income tax
expense of $192 million, plus depreciation and amortization of $312
million which excludes the amortization of debt issuance and debt
discount expense of $4 million for the three months ended October
3, 2020, as it is included in interest expense) plus fourth quarter
restructuring and related charges of $23 million, divided by 14
weeks.
EBITDA is defined as net income before interest, income taxes,
depreciation and amortization. Net debt to EBITDA (Adjusted EBITDA)
represents the ratio of our debt, net of cash, cash equivalents and
short-term investments, to EBITDA (and to Adjusted EBITDA). EBITDA,
Adjusted EBITDA, net debt to EBITDA and net debt to 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 net debt to EBITDA (and to Adjusted EBITDA) may not be
comparable to those of other companies, which may limit their
usefulness as comparative measures. EBITDA (and Adjusted EBITDA)
and net debt to EBITDA (and to 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) 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) involve outlays of cash. As a result, actual cash
available to service our debt obligations will be different from
EBITDA (and 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 |
|
2020 |
|
2019 |
|
2020 |
|
2019 |
|
2020 |
|
2019 |
|
2020 |
|
2019 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reported net income per share
attributable to Tyson |
|
|
|
|
$ |
1.90 |
|
|
$ |
1.01 |
|
|
|
|
|
|
$ |
5.86 |
|
|
$ |
5.52 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Add: Restructuring and related charges |
$ |
23 |
|
|
$ |
10 |
|
|
0.05 |
|
|
0.02 |
|
|
$ |
75 |
|
|
$ |
41 |
|
|
0.16 |
|
|
0.08 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Add: Beef production facility
fire costs, net of insurance proceeds |
$ |
— |
|
|
$ |
31 |
|
|
— |
|
|
0.06 |
|
|
$ |
1 |
|
|
$ |
31 |
|
|
— |
|
|
0.06 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less: Gain on sale of
investment |
$ |
— |
|
|
$ |
— |
|
|
— |
|
|
— |
|
|
$ |
— |
|
|
$ |
(55 |
) |
|
— |
|
|
(0.11 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less: Recognition of
previously unrecognized tax benefit |
$ |
— |
|
|
$ |
— |
|
|
— |
|
|
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
— |
|
|
(0.29 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Add: Keystone purchase
accounting and acquisition related costs (a) |
$ |
— |
|
|
$ |
— |
|
|
— |
|
|
— |
|
|
$ |
— |
|
|
$ |
37 |
|
|
— |
|
|
0.08 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Add/(Less): Loss/(Gain) from
pension plan terminations |
$ |
— |
|
|
$ |
15 |
|
|
— |
|
|
0.03 |
|
|
$ |
(116 |
) |
|
$ |
15 |
|
|
(0.24 |
) |
|
0.03 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Add: Impairment associated
with the divestiture of a business |
$ |
— |
|
|
$ |
41 |
|
|
— |
|
|
0.09 |
|
|
$ |
— |
|
|
$ |
41 |
|
|
— |
|
|
0.09 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less: Impact of additional
week (b) |
$ |
(65 |
) |
|
$ |
— |
|
|
(0.14 |
) |
|
— |
|
|
$ |
(65 |
) |
|
$ |
— |
|
|
(0.14 |
) |
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted net income per share
attributable to Tyson |
|
|
|
|
$ |
1.81 |
|
|
$ |
1.21 |
|
|
|
|
|
|
$ |
5.64 |
|
|
$ |
5.46 |
|
- Keystone purchase accounting and acquisition related costs for
the twelve months of fiscal 2019 included an $11 million purchase
accounting adjustment for the fair value step-up of inventory and
$26 million of acquisition related costs.
- The estimated Pretax Impact of the additional week in the
fourth quarter and twelve months of fiscal 2020 was calculated by
dividing the sum of the fourth quarter's Adjusted operating income
(loss) prior to adjustment for additional week (refer to Operating
Income Reconciliation) net of Total Other (Income) Expense by 14
weeks.
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.
TYSON FOODS,
INC.Operating Income
Reconciliation(In
millions)(Unaudited)
Adjusted Operating Income (Loss) |
(for the fourth quarter ended October 3, 2020) |
|
Beef |
Pork |
Chicken |
PreparedFoods |
International/Other |
Total |
Reported operating income (loss) |
$ |
516 |
|
$ |
174 |
|
$ |
86 |
|
$ |
249 |
|
$ |
(13 |
) |
$ |
1,012 |
|
Add: Restructuring and related
charges |
4 |
|
1 |
|
12 |
|
5 |
|
1 |
|
23 |
|
Adjusted operating income
(loss) prior to adjustment for additional week |
$ |
520 |
|
$ |
175 |
|
$ |
98 |
|
$ |
254 |
|
$ |
(12 |
) |
$ |
1,035 |
|
Less: Estimated impact of
additional week (a) |
(37 |
) |
(13 |
) |
(7 |
) |
(18 |
) |
1 |
|
(74 |
) |
Adjusted operating income
(loss) |
$ |
483 |
|
$ |
162 |
|
$ |
91 |
|
$ |
236 |
|
$ |
(11 |
) |
$ |
961 |
|
Adjusted Operating Income |
(for fourth quarter ended September 28, 2019) |
|
Beef |
Pork |
Chicken |
PreparedFoods |
International/Other |
Total |
Reported operating income |
$ |
376 |
|
$ |
26 |
|
$ |
90 |
|
$ |
104 |
|
$ |
8 |
|
$ |
604 |
|
Add: Restructuring and related
charges |
— |
|
1 |
|
5 |
|
4 |
|
— |
|
10 |
|
Add: Beef production facility
fire costs |
31 |
|
— |
|
— |
|
— |
|
— |
|
31 |
|
Add: Impairment associated
with the planned divestiture of a business |
— |
|
— |
|
— |
|
41 |
|
— |
|
41 |
|
Adjusted operating income |
$ |
407 |
|
$ |
27 |
|
$ |
95 |
|
$ |
149 |
|
$ |
8 |
|
$ |
686 |
|
Adjusted Operating Income (Loss) |
(for the twelve months ended October 3, 2020) |
|
Beef |
Pork |
Chicken |
PreparedFoods |
International/Other |
Total |
Reported operating income (loss) |
$ |
1,686 |
|
$ |
565 |
|
$ |
122 |
|
$ |
743 |
|
$ |
(2 |
) |
$ |
3,114 |
|
Add: Restructuring and related
charges |
9 |
|
3 |
|
33 |
|
27 |
|
3 |
|
75 |
|
Add: Beef production facility
fire costs, net of insurance proceeds |
1 |
|
— |
|
— |
|
— |
|
— |
|
1 |
|
Adjusted operating income
prior to adjustment for additional week |
$ |
1,696 |
|
$ |
568 |
|
$ |
155 |
|
$ |
770 |
|
$ |
1 |
|
$ |
3,190 |
|
Less: Estimated impact of
additional week (a) |
(37 |
) |
(13 |
) |
(7 |
) |
(18 |
) |
1 |
|
(74 |
) |
Adjusted operating income |
$ |
1,659 |
|
$ |
555 |
|
$ |
148 |
|
$ |
752 |
|
$ |
2 |
|
$ |
3,116 |
|
(a)The estimated impact of the additional week in the fourth
quarter and twelve months of fiscal 2020 was calculated by dividing
the fourth quarter's Adjusted operating income (loss) prior to
adjustment for additional week by 14 weeks.
Adjusted Operating Income (Loss) |
(for the twelve months ended September 28, 2019) |
|
Beef |
Pork |
Chicken |
PreparedFoods |
International/Other |
Total |
Reported operating income (loss) |
$ |
1,107 |
|
$ |
263 |
|
$ |
621 |
|
$ |
843 |
|
$ |
(7 |
) |
$ |
2,827 |
|
Add: Restructuring and related
charges |
1 |
|
1 |
|
21 |
|
18 |
|
— |
|
41 |
|
Add: Keystone purchase
accounting and acquisition related costs |
— |
|
— |
|
13 |
|
— |
|
24 |
|
37 |
|
Add: Beef production plant
fire costs |
31 |
|
— |
|
— |
|
— |
|
— |
|
31 |
|
Add: Impairment associated
with the planned divestiture of a business |
— |
|
— |
|
— |
|
41 |
|
— |
|
41 |
|
Adjusted operating income |
$ |
1,139 |
|
$ |
264 |
|
$ |
655 |
|
$ |
902 |
|
$ |
17 |
|
$ |
2,977 |
|
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.Sales Reconciliations(In
millions)(Unaudited)
Adjusted Sales (Non-GAAP) Reconciliation |
(for the fourth quarter and twelve months ended October 3,
2020) |
|
Fourth Quarter |
Twelve Months Ended |
|
ReportedSales |
Impact ofadditionalweek (a) |
AdjustedSales |
ReportedSales |
Impact ofadditionalweek (a) |
AdjustedSales |
Beef |
$ |
4,272 |
|
$ |
(306 |
) |
$ |
3,966 |
|
$ |
15,742 |
|
$ |
(306 |
) |
$ |
15,436 |
|
Pork |
1,368 |
|
(98 |
) |
1,270 |
|
5,128 |
|
(98 |
) |
5,030 |
|
Chicken |
3,433 |
|
(245 |
) |
3,188 |
|
13,234 |
|
(245 |
) |
12,989 |
|
Prepared
Foods |
2,277 |
|
(163 |
) |
2,114 |
|
8,532 |
|
(163 |
) |
8,369 |
|
International/Other |
491 |
|
(35 |
) |
456 |
|
1,856 |
|
(35 |
) |
1,821 |
|
Intersegment
Sales |
(381 |
) |
28 |
|
(353 |
) |
(1,307 |
) |
28 |
|
(1,279 |
) |
Total |
$ |
11,460 |
|
$ |
(819 |
) |
$ |
10,641 |
|
$ |
43,185 |
|
$ |
(819 |
) |
$ |
42,366 |
|
(a) The estimated impact of the additional week in the fourth
quarter and twelve months of fiscal 2020 was calculated by dividing
the fourth quarter's reported sales by 14 weeks.
Adjusted sales is presented as a supplementary measure of our
financial performance that is not required by, or presented in
accordance with, GAAP. We use adjusted sales as an internal
performance measurement and as one criterion for evaluating our
performance relative to that of our peers. We believe adjusted
sales 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 sales. Further, we believe that adjusted sales is a useful
measure because it improves comparability of results of operations
from period to period when a fiscal year results in a 53-week
accounting cycle. Adjusted sales should not be considered as a
substitute for sales 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 sales 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 139,000 team members at October 3, 2020.
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 16, 2020. We
encourage participants to pre-register for the conference call
using the following link:
https://dpregister.com/sreg/10149135/db42c360cc. 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 has started. 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.
To listen to the live webcast, an archived replay or to view the
accompanying slides, go to the company’s investor website at
http://ir.tyson.com. The webcast also can be accessed by using the
direct link
https://event.on24.com/wcc/r/2625854/02A14D145C84899874277F9AD1565916.
A telephone replay of the call will be available until December 16,
2020, 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 10149135. 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 Tyson
Foods’ free investor relations app, which offers access to SEC
filings, news releases, transcripts, webcasts and presentations,
please visit the App Store for iPhone and iPad or Google Play for
Android mobile devices.
Forward-Looking StatementsCertain information
in this report constitutes forward-looking statements. Such
forward-looking statements include, but are not limited to, current
views and estimates of our outlook for fiscal 2021, other future
economic circumstances, industry conditions in domestic and
international markets, our performance and financial results (e.g.,
debt levels, return on invested capital, value-added product
growth, capital expenditures, tax rates, access to foreign markets
and dividend policy). These forward-looking statements are subject
to a number of factors and uncertainties that could cause our
actual results and experiences to differ materially from
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. We undertake no obligation to update any
forward-looking statements, whether as a result of new information,
future events or otherwise. 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) the outbreak of the COVID-19 global
pandemic and associated responses has had, and is expected to
continue to have, an adverse impact on our business and operations;
(ii) our ability to make effective acquisitions or joint ventures
and successfully integrate newly acquired businesses into existing
operations; (iii) the effectiveness of our financial fitness
program; (iv) the implementation of an enterprise resource planning
system; (v) access to foreign markets together with foreign
economic conditions, including currency fluctuations, import/export
restrictions and foreign politics; (vi) cyber incidents, security
breaches or other disruptions of our information technology
systems; (vii) risks associated with our failure to consummate
favorable acquisition transactions or integrate certain
acquisitions' operations; (viii) the Tyson Limited Partnership’s
ability to exercise significant control over the Company; (ix)
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; (x) 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; (xi)
outbreak of a livestock disease (such as African swine fever (ASF),
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; (xii) changes in consumer preference and diets
and our ability to identify and react to consumer trends; (xiii)
effectiveness of advertising and marketing programs; (xiv)
significant marketing plan changes by large customers or loss of
one or more large customers; (xv) our ability to leverage brand
value propositions; (xvi) changes in availability and relative
costs of labor and contract farmers and our ability to maintain
good relationships with team members, labor unions, contract
farmers and independent producers providing us livestock; (xvii)
issues related to food safety, including costs resulting from
product recalls, regulatory compliance and any related claims or
litigation; (xviii) 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; (xix) adverse results from
litigation; (xx) risks associated with leverage, including cost
increases due to rising interest rates or changes in debt ratings
or outlook; (xxi) impairment in the carrying value of our goodwill
or indefinite life intangible assets; (xxii) our participation in
multiemployer pension plans; (xxiii) volatility in capital markets
or interest rates; (xxiv) risks associated with our commodity
purchasing activities; (xxv) the effect of, or changes in, general
economic conditions; (xxvi) impacts on our operations caused by
factors and forces beyond our control, such as natural disasters,
fire, bioterrorism, pandemics or extreme weather; (xxvii) failure
to maximize or assert our intellectual property rights; (xxviii)
effects related to changes in tax rates, valuation of deferred tax
assets and liabilities, or tax laws and their interpretation; and
(xxix) those factors listed under Item 1A. “Risk Factors” in this
report and Part I, Item 1A. “Risk Factors” included in our
Annual Report filed on Form 10-K for the year ended October 3,
2020.
Media Contact: Gary Mickelson, 479-290-6111Investor
Contact: Jon Kathol, 479-290-4235 |
Source: Tyson Foods, Inc.Category: IR, Newsroom |
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