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 |
|
2021 |
|
2020 |
|
2021 |
|
2020 |
Sales |
$ |
12,811 |
|
|
$ |
11,460 |
|
|
$ |
47,049 |
|
|
$ |
43,185 |
|
Operating Income |
1,909 |
|
|
962 |
|
|
4,396 |
|
|
3,008 |
|
|
|
|
|
|
|
|
|
Net Income |
1,358 |
|
|
657 |
|
|
3,060 |
|
|
2,071 |
|
Less: Net Income Attributable
to Noncontrolling Interests |
3 |
|
|
3 |
|
|
13 |
|
|
10 |
|
Net Income Attributable to
Tyson |
$ |
1,355 |
|
|
$ |
654 |
|
|
$ |
3,047 |
|
|
$ |
2,061 |
|
Net Income Per Share
Attributable to Tyson |
$ |
3.71 |
|
|
$ |
1.79 |
|
|
$ |
8.34 |
|
|
$ |
5.64 |
|
Adjusted1 Sales |
$ |
12,811 |
|
|
$ |
10,641 |
|
|
$ |
47,049 |
|
|
$ |
42,366 |
|
Adjusted1 Operating
Income |
$ |
1,152 |
|
|
$ |
911 |
|
|
$ |
4,288 |
|
|
$ |
3,010 |
|
Adjusted1 Net Income Per Share
Attributable to Tyson |
$ |
2.30 |
|
|
$ |
1.70 |
|
|
$ |
8.28 |
|
|
$ |
5.42 |
|
1 The Company reports its financial results in accordance with
U.S. generally accepted accounting principles (GAAP). Adjusted
sales, adjusted operating income and adjusted net income per share
attributable to Tyson (Adjusted EPS) are non-GAAP financial
measures. Refer to the end of this release for an explanation and
reconciliation of these and other non-GAAP financial measures used
in this release to comparable GAAP measures.
Fiscal 2021 Highlights
- GAAP EPS of $8.34, up 48% from prior year; Adjusted EPS
of $8.28, up 53% from prior year
- GAAP operating income of $4,396 million, up 46% from
prior year; Adjusted operating income of $4,288 million, up 42%
from prior year
- Total Company GAAP operating margin of 9.3%; Adjusted
operating margin of 9.0%
- Generated $3.8 billion of operating cash
flows
- Results impacted by approximately $335 million of
direct incremental expenses related to COVID-19
- Reduced total debt by approximately $2 billion; reduced
net debt by approximately $3 billion
Fourth Quarter Highlights
- GAAP EPS of $3.71, up 107% from prior year; Adjusted
EPS of $2.30, up 35% from prior year
- GAAP operating income of $1,909 million, up 98% from
prior year; Adjusted operating income of $1,152 million, up 26%
from prior year
- Total Company GAAP operating margin of 14.9%; Adjusted
operating margin of 9.0%
- Liquidity of $4.8 billion at October 2,
2021
- Closed the sale of our Pet Treats business for $1.2
billion
“We delivered double digit sales and earnings growth during the
fourth quarter and full year, and our performance was supported by
our diverse portfolio and continued strength in consumer demand for
protein,” said Donnie King, president and CEO of Tyson Foods. "We
delivered a record performance in our beef segment and experienced
share gains in our retail core business lines, which include our
Tyson, Jimmy Dean, Hillshire Farm and Ball Park iconic brands,
while supporting the continued recovery in foodservice.”
King added, “To foster continuous improvement and faster
decision making, we’re launching a new productivity program
designed to deliver more than $1 billion in annual savings by the
end of 2024. The focus of this plan includes operational and
functional excellence, digital solutions, and automation and
advanced technologies.
“We have tremendous opportunity ahead as we work to fulfill
growing global demand for safe and nutritious protein products.
We’re entering fiscal 2022 with great momentum and are committed to
delivering strong returns for shareholders into the future.”
SEGMENT RESULTS (in millions)
Sales |
(for the fourth quarter and twelve months ended October 2, 2021,
and October 3, 2020) |
|
Fourth Quarter |
Twelve Months Ended |
|
|
|
Volume |
Avg. Price |
|
|
Volume |
Avg. Price |
|
2021 |
2020 |
Change |
Change |
2021 |
2020 |
Change |
Change 2 |
Beef |
$ |
5,012 |
|
|
$ |
4,272 |
|
|
(15.4 |
) |
% |
32.7 |
% |
$ |
17,999 |
|
|
$ |
15,742 |
|
|
0.3 |
|
% |
14.0 |
% |
Pork |
1,646 |
|
|
1,368 |
|
|
(17.7 |
) |
% |
38.0 |
% |
6,277 |
|
|
5,128 |
|
|
(2.7 |
) |
% |
25.1 |
% |
Chicken |
3,873 |
|
|
3,433 |
|
|
(5.9 |
) |
% |
18.7 |
% |
13,733 |
|
|
13,234 |
|
|
(3.3 |
) |
% |
11.2 |
% |
Prepared
Foods |
2,253 |
|
|
2,277 |
|
|
(12.5 |
) |
% |
11.4 |
% |
8,853 |
|
|
8,532 |
|
|
(5.4 |
) |
% |
9.2 |
% |
International/Other |
546 |
|
|
491 |
|
|
3.2 |
|
% |
8.0 |
% |
1,990 |
|
|
1,856 |
|
|
(0.3 |
) |
% |
7.5 |
% |
Intersegment
Sales |
(519 |
) |
|
(381 |
) |
|
n/a |
n/a |
(1,803 |
) |
|
(1,307 |
) |
|
n/a |
n/a |
Total |
$ |
12,811 |
|
|
$ |
11,460 |
|
|
(10.7 |
) |
% |
22.5 |
% |
$ |
47,049 |
|
|
$ |
43,185 |
|
|
(2.8 |
) |
% |
13.0 |
% |
Operating Income (Loss) |
(for the fourth quarter and twelve months ended October 2, 2021,
and October 3, 2020) |
|
Fourth Quarter |
Twelve Months Ended |
|
|
|
Operating Margin |
|
|
Operating Margin |
|
2021 |
2020 |
2021 |
2020 |
2021 |
2020 |
2021 |
2020 |
Beef |
$ |
1,147 |
|
|
$ |
466 |
|
|
22.9 |
|
% |
10.9 |
% |
$ |
3,240 |
|
|
$ |
1,580 |
|
|
18.0 |
|
% |
10.0 |
% |
Pork |
78 |
|
|
174 |
|
|
4.7 |
|
% |
12.7 |
% |
328 |
|
|
565 |
|
|
5.2 |
|
% |
11.0 |
% |
Chicken |
(136 |
) |
|
86 |
|
|
(3.5 |
) |
% |
2.5 |
% |
(625 |
) |
|
122 |
|
|
(4.6 |
) |
% |
0.9 |
% |
Prepared
Foods |
823 |
|
|
249 |
|
|
36.5 |
|
% |
10.9 |
% |
1,456 |
|
|
743 |
|
|
16.4 |
|
% |
8.7 |
% |
International/Other |
(3 |
) |
|
(13 |
) |
|
n/a |
n/a |
(3 |
) |
|
(2 |
) |
|
n/a |
n/a |
Total |
$ |
1,909 |
|
|
$ |
962 |
|
|
14.9 |
|
% |
8.4 |
% |
$ |
4,396 |
|
|
$ |
3,008 |
|
|
9.3 |
|
% |
7.0 |
% |
ADJUSTED SEGMENT RESULTS (in millions)
Adjusted Sales (Non-GAAP) |
(for the fourth quarter and twelve months ended October 2, 2021,
and October 3, 2020) |
|
Fourth Quarter |
Twelve Months Ended |
|
|
|
Adjusted |
Adjusted |
|
|
Adjusted |
Adjusted |
|
|
|
Volume |
Avg. Price |
|
|
Volume |
Avg. Price |
|
2021 |
2020 |
Change |
Change |
2021 |
2020 |
Change |
Change 2 |
Beef |
$ |
5,012 |
|
|
$ |
3,966 |
|
|
(8.8 |
) |
% |
35.2 |
% |
$ |
17,999 |
|
|
$ |
15,436 |
|
|
2.4 |
|
% |
14.2 |
% |
Pork |
1,646 |
|
|
1,270 |
|
|
(11.3 |
) |
% |
40.9 |
% |
6,277 |
|
|
5,030 |
|
|
(0.8 |
) |
% |
25.6 |
% |
Chicken |
3,873 |
|
|
3,188 |
|
|
1.3 |
|
% |
20.2 |
% |
13,733 |
|
|
12,989 |
|
|
(1.5 |
) |
% |
11.4 |
% |
Prepared
Foods |
2,253 |
|
|
2,114 |
|
|
(5.7 |
) |
% |
12.3 |
% |
8,853 |
|
|
8,369 |
|
|
(3.7 |
) |
% |
9.5 |
% |
International/Other |
546 |
|
|
456 |
|
|
11.2 |
|
% |
8.7 |
% |
1,990 |
|
|
1,821 |
|
|
1.6 |
|
% |
7.7 |
% |
Intersegment
Sales |
(519 |
) |
|
(353 |
) |
|
n/a |
n/a |
(1,803 |
) |
|
(1,279 |
) |
|
n/a |
n/a |
Total |
$ |
12,811 |
|
|
$ |
10,641 |
|
|
(3.8 |
) |
% |
24.2 |
% |
$ |
47,049 |
|
|
$ |
42,366 |
|
|
(0.9 |
) |
% |
13.2 |
% |
Adjusted Operating Income (Loss) (Non-GAAP) |
(for the fourth quarter and twelve months ended October 2, 2021,
and October 3, 2020) |
|
Fourth Quarter |
Twelve Months Ended |
|
|
|
Adjusted Operating Margin (Non-GAAP) |
|
|
Adjusted Operating Margin (Non-GAAP) |
|
2021 |
2020 |
2021 |
2020 |
2021 |
2020 |
2021 2 |
2020 |
Beef |
$ |
1,147 |
|
|
$ |
433 |
|
|
22.9 |
|
% |
10.9 |
% |
$ |
3,240 |
|
$ |
1,553 |
|
18.0 |
% |
10.1 |
% |
Pork |
78 |
|
|
162 |
|
|
4.7 |
|
% |
12.8 |
% |
328 |
|
555 |
|
5.2 |
% |
11.0 |
% |
Chicken |
(113 |
) |
|
91 |
|
|
(2.9 |
) |
% |
2.9 |
% |
24 |
|
148 |
|
0.2 |
% |
1.1 |
% |
Prepared
Foods |
39 |
|
|
236 |
|
|
1.7 |
|
% |
11.2 |
% |
672 |
|
752 |
|
7.6 |
% |
9.0 |
% |
International/Other |
1 |
|
|
(11 |
) |
|
n/a |
n/a |
24 |
|
2 |
|
n/a |
n/a |
Total |
$ |
1,152 |
|
|
$ |
911 |
|
|
9.0 |
|
% |
8.6 |
% |
$ |
4,288 |
|
$ |
3,010 |
|
9.0 |
% |
7.1 |
% |
2 Average Price Change and Adjusted Operating Margin for the
Chicken Segment and Total Company excludes $545 million for the
twelve months ended October 2, 2021 of legal contingency accruals
recognized as a reduction to Sales.
Note: Adjusted sales, adjusted operating income (loss) 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 (loss),
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.
COVID-19 EXPENSES
We incurred direct incremental expenses associated with the
impact of COVID-19 totaling approximately $65 million and $335
million for the fourth quarter and twelve months of fiscal 2021,
respectively. These direct incremental expenses primarily included
team member costs associated with worker health and availability
including direct costs for personal protection equipment,
production facility sanitization, COVID-19 testing and
vaccinations, donations, product downgrades, rendered product and
certain professional fees, partially offset by CARES Act credits.
We anticipate some of these direct incremental expenses to become
permanent over time. Other indirect costs associated with COVID-19
are not reflected in these amounts, 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
BeefSales volume decreased 15.4% during the
fourth quarter of fiscal 2021, or decreased 8.8% after removing the
impact of an additional week in 2020, due to the impact associated
with a challenging labor environment, partially offset by strong
global demand. Sales volume increased 0.3% during fiscal 2021, or
increased 2.4% after removing the impact of an additional week in
fiscal 2020, due to strong global demand, partially offset by the
impacts associated with a challenging labor environment and severe
weather. Average sales price increased as input costs such as live
cattle, labor, freight and transportation costs increased and
demand for our beef products remained strong. Operating income
increased due to strong demand as we continued to optimize revenues
relative to live cattle supply, partially offset by production
inefficiencies due to labor challenges. Additionally, operating
income in fiscal 2021 was impacted by a cattle supplier's
misappropriation of Company funds, which resulted in a $55 million
gain related to the recovery of cattle inventory as compared to a
$106 million loss recognized in fiscal 2020.
PorkSales volume decreased 17.7% during the
fourth quarter of fiscal 2021, or decreased 11.3% after removing
the impact of an additional week in 2020, and decreased 2.7% in
fiscal 2021, or decreased 0.8% after removing the impact of an
additional week in 2020, due to the impacts associated with lower
hog supplies and a challenging labor environment, partially offset
by strong global demand. Average sales price increased as input
costs such as live hog, labor, freight and transportation costs
increased and demand for our pork products remained strong.
Operating income decreased primarily due to lower hog supplies
relative to industry capacity as well as production inefficiencies
related to COVID-19 and a challenging labor environment, partially
offset by a reduction in direct incremental expenses related to
COVID-19 in fiscal 2021 as compared to fiscal 2020. Additionally,
volatile market conditions resulted in net derivative losses of $90
million in fiscal 2021 and net derivative gains of $70 million in
fiscal 2020, which were offset by the impacts of related physical
purchase transactions.
ChickenSales volume decreased 5.9% during the
fourth quarter of fiscal 2021, or increased 1.3% after removing the
impact of an additional week in 2020, primarily due to increased
demand in the foodservice channel. Sales volume decreased 3.3% for
fiscal 2021, or decreased 1.5% after removing the impact of an
additional week in 2020. Despite a strong demand environment,
volume decreased due to the impacts associated with a decline in
hatch rate, a challenging labor environment and disruptions due to
severe weather in the second quarter of fiscal 2021. Average sales
price increased due to favorable sales mix and inflationary market
conditions. Operating income decreased during the fourth quarter of
fiscal 2021 primarily due to $325 million of higher feed ingredient
costs, $75 million of net derivative losses in the fourth quarter
of fiscal 2021 as compared to $45 million of net derivative gains
in the fourth quarter of fiscal 2020, increased supply chain costs
and a $23 million expense related to a fire at a production
facility, partially offset by favorable product mix. Operating
income decreased during fiscal 2021 primarily due to a $626 million
loss from the recognition of legal contingency accruals, $735
million of higher feed ingredient costs as compared to fiscal 2020,
increased supply chain costs, $23 million of expenses related to a
fire at a production facility, decline in hatch rate and
disruptions due to severe weather. This was partially offset by
favorable product mix, reduced direct incremental expense
associated with COVID-19 and $65 million of net derivative gains in
fiscal 2021 as compared to $50 million of net derivative losses in
fiscal 2020.
Prepared FoodsSales volume decreased 12.5%
during the fourth quarter of fiscal 2021, or decreased 5.7% after
removing the impact of an additional week in 2020, due to lower
production throughput primarily associated with a challenging labor
and supply environment. Sales volume decreased 5.4% for fiscal
2021, or decreased 3.7% after removing the impact of an additional
week in 2020, driven by lower production throughput primarily
associated with a challenging labor and supply environment and
reduced foodservice demand in the first half of fiscal 2021.
Average sales price increased due to favorable product mix and
inflation-justified pricing. Operating income increased in the
fourth quarter of fiscal 2021 due to the recognition of a $784
million gain from the sale of our pet treats business and favorable
pricing and product mix, which were offset by the impact of
inflationary market conditions including $255 million of increased
raw materials and other input costs, increased supply chain costs
and a challenging labor environment. Operating income increased
during fiscal 2021 due to the recognition of a $784 million gain
from the sale of our pet treats business, lower commercial spend as
well as favorable pricing and product mix, which were partially
offset by the impact of inflationary market conditions including a
$520 million increase in raw material costs during fiscal 2021,
increased supply chain costs and a challenging labor
environment.
OUTLOOKFor fiscal 2022, the United States
Department of Agriculture (“USDA”) indicates domestic protein
production (beef, pork, chicken and turkey) should increase
slightly as compared to fiscal 2021 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 2022.3
Beginning in fiscal 2022, we are launching a new productivity
program, which is designed to drive a better, faster and more agile
organization that is supported by a culture of continuous
improvement and faster decision making. We are targeting $1 billion
in productivity savings by the end of fiscal 2024 and $300 million
to $400 million in fiscal 2022, relative to a fiscal 2021 cost
baseline.
BeefUSDA projects domestic production will
decrease approximately 2% in fiscal 2022 as compared to fiscal
2021. We anticipate another strong year with adjusted operating
margin between 9% to 11% in fiscal 2022. We expect the first half
of the fiscal year will be stronger than the second half as a
combination of higher utilization and demand for cattle may result
in a narrowing spread.
PorkUSDA projects domestic production will
decrease approximately 2% in fiscal 2022 as compared to fiscal
2021. We believe our Pork segment's adjusted operating margin will
be 5% to 7% in fiscal 2022.
ChickenUSDA projects chicken production will
increase slightly in fiscal 2022 as compared to fiscal 2021. We
anticipate an adjusted operating margin at the lower end of 5% to
7% for fiscal 2022 as our adjusted operating margin should achieve
this on a run rate basis by the middle of the year resulting in
overall stronger performance in the second half of the fiscal
year.
Prepared FoodsWe believe our adjusted operating
margin will be around 7% to 9% in fiscal 2022. We will remain
disciplined in our pricing initiatives to ensure additional
inflationary pressures are passed through to customers, while also
working diligently to deliver productivity savings to reduce
costs.
International/OtherWe anticipate improved
results from our foreign operations in fiscal 2022.
RevenueWe expect sales to approximate $49
billion to $51 billion in fiscal 2022.
Capital ExpendituresWe expect capital
expenditures of approximately $2 billion for fiscal 2022. Capital
expenditures include spending for capacity expansion and
utilization, automation to alleviate labor challenges and brand and
product innovation.
Net Interest ExpenseWe expect net interest
expense to approximate $380 million for fiscal 2022.
LiquidityWe expect total liquidity, which was
approximately $4.8 billion at October 2, 2021, to remain above
our minimum liquidity target of $1.0 billion.
Tax RateWe currently expect our adjusted
effective tax rate to be around 23% in fiscal 2022.
DividendsEffective November 12, 2021, the Board
of Directors increased the quarterly dividend previously declared
on August 12, 2021, to $0.46 per share on our Class A common stock
and $0.414 per share on our Class B common stock. The increased
quarterly dividend is payable on December 15, 2021, to shareholders
of record at the close of business on December 1, 2021. The Board
also declared a quarterly dividend of $0.46 per share on our Class
A common stock and $0.414 per share on our Class B common stock,
payable on March 15, 2022, to shareholders of record at the close
of business on March 1, 2022. We anticipate the remaining quarterly
dividends in fiscal 2022 will be $0.46 and $0.414 per share of our
Class A and Class B stock, respectively. This results in an annual
dividend rate in fiscal 2022 of $1.84 for Class A shares and $1.656
for Class B shares, or a 3% increase compared to the fiscal 2021
annual dividend rate.
3 The Company is not able to reconcile its full-year fiscal 2022
projected adjusted results to its fiscal 2022 projected GAAP
results because certain information necessary to calculate such
measures 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, such as legal contingency accruals and other
significant items which could be significant, the Company is unable
to provide a reconciliation for these forward-looking non-GAAP
measures without unreasonable effort. Adjusted operating margin
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 2, 2021 |
|
October 3, 2020 |
|
October 2, 2021 |
|
October 3, 2020 |
Sales |
$ |
12,811 |
|
|
|
$ |
11,460 |
|
|
|
$ |
47,049 |
|
|
|
$ |
43,185 |
|
|
Cost of Sales |
10,335 |
|
|
|
9,850 |
|
|
|
40,523 |
|
|
|
37,801 |
|
|
Gross Profit |
2,476 |
|
|
|
1,610 |
|
|
|
6,526 |
|
|
|
5,384 |
|
|
|
|
|
|
|
|
|
|
Selling, General and
Administrative |
567 |
|
|
|
648 |
|
|
|
2,130 |
|
|
|
2,376 |
|
|
Operating Income |
1,909 |
|
|
|
962 |
|
|
|
4,396 |
|
|
|
3,008 |
|
|
Other (Income) Expense: |
|
|
|
|
|
|
|
Interest income |
(2 |
) |
|
|
(1 |
) |
|
|
(8 |
) |
|
|
(10 |
) |
|
Interest expense |
103 |
|
|
|
124 |
|
|
|
428 |
|
|
|
485 |
|
|
Other, net |
(27 |
) |
|
|
2 |
|
|
|
(65 |
) |
|
|
(131 |
) |
|
Total Other (Income)
Expense |
74 |
|
|
|
125 |
|
|
|
355 |
|
|
|
344 |
|
|
Income before Income Taxes |
1,835 |
|
|
|
837 |
|
|
|
4,041 |
|
|
|
2,664 |
|
|
Income Tax Expense |
477 |
|
|
|
180 |
|
|
|
981 |
|
|
|
593 |
|
|
Net Income |
1,358 |
|
|
|
657 |
|
|
|
3,060 |
|
|
|
2,071 |
|
|
Less: Net Income Attributable
to Noncontrolling Interests |
3 |
|
|
|
3 |
|
|
|
13 |
|
|
|
10 |
|
|
Net Income Attributable to
Tyson |
$ |
1,355 |
|
|
|
$ |
654 |
|
|
|
$ |
3,047 |
|
|
|
$ |
2,061 |
|
|
Weighted Average Shares
Outstanding: |
|
|
|
|
|
|
|
Class A Basic |
293 |
|
|
|
292 |
|
|
|
293 |
|
|
|
293 |
|
|
Class B Basic |
70 |
|
|
|
70 |
|
|
|
70 |
|
|
|
70 |
|
|
Diluted |
366 |
|
|
|
364 |
|
|
|
365 |
|
|
|
365 |
|
|
Net Income Per Share
Attributable to Tyson: |
|
|
|
|
|
|
|
Class A Basic |
$ |
3.81 |
|
|
|
$ |
1.83 |
|
|
|
$ |
8.57 |
|
|
|
$ |
5.79 |
|
|
Class B Basic |
$ |
3.43 |
|
|
|
$ |
1.66 |
|
|
|
$ |
7.70 |
|
|
|
$ |
5.21 |
|
|
Diluted |
$ |
3.71 |
|
|
|
$ |
1.79 |
|
|
|
$ |
8.34 |
|
|
|
$ |
5.64 |
|
|
Dividends Declared Per
Share: |
|
|
|
|
|
|
|
Class A |
$ |
0.445 |
|
|
|
$ |
0.420 |
|
|
|
$ |
1.805 |
|
|
|
$ |
1.725 |
|
|
Class B |
$ |
0.401 |
|
|
|
$ |
0.378 |
|
|
|
$ |
1.625 |
|
|
|
$ |
1.553 |
|
|
|
|
|
|
|
|
|
|
Sales Growth |
11.8 |
|
% |
|
|
|
8.9 |
|
% |
|
|
Margins: (Percent of
Sales) |
|
|
|
|
|
|
|
Gross Profit |
19.3 |
|
% |
|
14.0 |
|
% |
|
13.9 |
|
% |
|
12.5 |
|
% |
Operating Income |
14.9 |
|
% |
|
8.4 |
|
% |
|
9.3 |
|
% |
|
7.0 |
|
% |
Net Income Attributable to Tyson |
10.6 |
|
% |
|
5.7 |
|
% |
|
6.5 |
|
% |
|
4.8 |
|
% |
Effective Tax Rate |
25.9 |
|
% |
|
21.5 |
|
% |
|
24.3 |
|
% |
|
22.3 |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TYSON FOODS,
INC.CONSOLIDATED CONDENSED BALANCE
SHEETS(In
millions)(Unaudited)
|
October 2, 2021 |
|
October 3, 2020 |
Assets |
|
|
|
Current Assets: |
|
|
|
Cash and cash equivalents |
$ |
2,507 |
|
|
$ |
1,420 |
|
Accounts receivable, net |
2,400 |
|
|
1,952 |
|
Inventories |
4,382 |
|
|
3,859 |
|
Other current assets |
533 |
|
|
367 |
|
Total Current Assets |
9,822 |
|
|
7,598 |
|
Net Property, Plant and
Equipment |
7,837 |
|
|
7,596 |
|
Goodwill |
10,549 |
|
|
10,899 |
|
Intangible Assets, net |
6,519 |
|
|
6,774 |
|
Other Assets |
1,582 |
|
|
1,589 |
|
Total Assets |
$ |
36,309 |
|
|
$ |
34,456 |
|
|
|
|
|
Liabilities and
Shareholders’ Equity |
|
|
|
Current Liabilities: |
|
|
|
Current debt |
$ |
1,067 |
|
|
$ |
548 |
|
Accounts payable |
2,225 |
|
|
1,876 |
|
Other current liabilities |
3,033 |
|
|
1,810 |
|
Total Current Liabilities |
6,325 |
|
|
4,234 |
|
Long-Term Debt |
8,281 |
|
|
10,791 |
|
Deferred Income Taxes |
2,195 |
|
|
2,317 |
|
Other Liabilities |
1,654 |
|
|
1,728 |
|
|
|
|
|
Total Tyson Shareholders’
Equity |
17,723 |
|
|
15,254 |
|
Noncontrolling Interests |
131 |
|
|
132 |
|
Total Shareholders’
Equity |
17,854 |
|
|
15,386 |
|
|
|
|
|
Total Liabilities and
Shareholders’ Equity |
$ |
36,309 |
|
|
$ |
34,456 |
|
|
|
|
|
|
|
|
|
TYSON FOODS,
INC.CONSOLIDATED CONDENSED STATEMENTS OF CASH
FLOWS(In
millions)(Unaudited)
|
Twelve Months Ended |
|
October 2, 2021 |
|
October 3, 2020 |
Cash Flows From Operating
Activities: |
|
|
|
Net income |
$ |
3,060 |
|
|
|
$ |
2,071 |
|
|
Depreciation and
amortization |
1,214 |
|
|
|
1,192 |
|
|
Deferred income taxes |
(125 |
) |
|
|
18 |
|
|
Gain on disposition of
business |
(784 |
) |
|
|
— |
|
|
Other, net |
94 |
|
|
|
13 |
|
|
Net changes in operating
assets and liabilities |
381 |
|
|
|
580 |
|
|
Cash Provided by Operating
Activities |
3,840 |
|
|
|
3,874 |
|
|
|
|
|
|
Cash Flows From Investing
Activities: |
|
|
|
Additions to property, plant
and equipment |
(1,209 |
) |
|
|
(1,199 |
) |
|
Purchases of marketable
securities |
(72 |
) |
|
|
(105 |
) |
|
Proceeds from sale of
marketable securities |
70 |
|
|
|
87 |
|
|
Proceeds from sale of
business |
1,188 |
|
|
|
29 |
|
|
Acquisition of equity
investments |
(44 |
) |
|
|
(183 |
) |
|
Other, net |
125 |
|
|
|
(52 |
) |
|
Cash Provided by (Used for)
Investing Activities |
58 |
|
|
|
(1,423 |
) |
|
|
|
|
|
Cash Flows From Financing
Activities: |
|
|
|
Proceeds from issuance of
debt |
585 |
|
|
|
1,609 |
|
|
Payments on debt |
(2,632 |
) |
|
|
(1,212 |
) |
|
Borrowings on revolving credit
facility |
— |
|
|
|
1,210 |
|
|
Payments on revolving credit
facility |
— |
|
|
|
(1,280 |
) |
|
Proceeds from issuance of
commercial paper |
— |
|
|
|
14,272 |
|
|
Repayments of commercial
paper |
— |
|
|
|
(15,271 |
) |
|
Purchases of Tyson
Class A common stock |
(67 |
) |
|
|
(207 |
) |
|
Dividends |
(636 |
) |
|
|
(601 |
) |
|
Stock options exercised |
41 |
|
|
|
30 |
|
|
Other, net |
(22 |
) |
|
|
(18 |
) |
|
Cash (Used for) Financing
Activities |
(2,731 |
) |
|
|
(1,468 |
) |
|
Effect of Exchange Rate
Changes on Cash |
4 |
|
|
|
(1 |
) |
|
Increase in Cash and Cash
Equivalents and Restricted Cash |
1,171 |
|
|
|
982 |
|
|
Cash and Cash Equivalents and
Restricted Cash at Beginning of Year |
1,466 |
|
|
|
484 |
|
|
Cash and Cash Equivalents and
Restricted Cash at End of Period |
2,637 |
|
|
|
1,466 |
|
|
Less: Restricted Cash at End
of Period |
130 |
|
|
|
46 |
|
|
Cash and Cash Equivalents at
End of Period |
$ |
2,507 |
|
|
|
$ |
1,420 |
|
|
|
|
|
|
TYSON FOODS, INC.EBITDA
Reconciliations(In
millions)(Unaudited)
|
|
Twelve Months Ended |
|
|
October 2, 2021 |
|
October 3, 2020 |
|
|
|
|
|
Net income |
|
$ |
3,060 |
|
|
|
$ |
2,071 |
|
|
Less: Interest income |
|
(8 |
) |
|
|
(10 |
) |
|
Add: Interest expense |
|
428 |
|
|
|
485 |
|
|
Add: Income tax expense |
|
981 |
|
|
|
593 |
|
|
Add: Depreciation |
|
934 |
|
|
|
900 |
|
|
Add: Amortization 4 |
|
261 |
|
|
|
278 |
|
|
EBITDA |
|
$ |
5,656 |
|
|
|
$ |
4,317 |
|
|
|
|
|
|
|
Adjustments to EBITDA: |
|
|
|
|
Add: Gain on sale of
business |
|
$ |
(784 |
) |
|
|
$ |
— |
|
|
Add: China plant relocation
charge 5 |
|
27 |
|
|
|
— |
|
|
Add: Legal contingency
accruals 6 |
|
626 |
|
|
|
— |
|
|
Add: Production facilities
fire costs, net of insurance proceeds7 |
|
17 |
|
|
|
1 |
|
|
Less: Defined benefit plan
gains |
|
(34 |
) |
|
|
(116 |
) |
|
Add: Restructuring and related
charges |
|
— |
|
|
|
75 |
|
|
Less: Impact of additional
week in fiscal 2020 |
|
— |
|
|
|
(96 |
) |
|
Total Adjusted EBITDA |
|
$ |
5,508 |
|
|
|
$ |
4,181 |
|
|
|
|
|
|
|
Total gross debt |
|
$ |
9,348 |
|
|
|
$ |
11,339 |
|
|
Less: Cash and cash
equivalents |
|
(2,507 |
) |
|
|
(1,420 |
) |
|
Less: Short-term investments |
|
— |
|
|
|
— |
|
|
Total net debt |
|
$ |
6,841 |
|
|
|
$ |
9,919 |
|
|
|
|
|
|
|
Ratio Calculations: |
|
|
|
|
Gross debt/EBITDA |
|
1.7x |
|
2.6x |
Net debt/EBITDA |
|
1.2x |
|
2.3x |
|
|
|
|
|
Gross debt/Adjusted
EBITDA |
|
1.7x |
|
2.7x |
Net debt/Adjusted EBITDA |
|
1.2x |
|
2.4x |
4 Excludes the amortization of debt issuance and debt discount
expense of $19 million and $14 million for the twelve months ended
October 2, 2021 and October 3, 2020, respectively, as it
is included in Interest expense.
5 Relates to a plant relocation from a government land
expropriation and includes accelerated depreciation and team member
related charges recognized as an increase of Cost of Sales.
6 Legal contingency accruals included $545 million recognized as
a reduction of Sales and $81 million recognized as an increase of
Cost of Sales.
7 Relates to fires at production facilities in Chicken in the
fourth quarter of fiscal 2021 and Beef in the fourth quarter of
fiscal 2019. Amount includes direct incremental costs, net of
insurance proceeds, of $23 million net expense recognized in Cost
of Sales and $6 million net proceeds recognized in Other, net for
fiscal 2021.
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 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 |
|
2021 |
|
2020 |
|
2021 |
|
2020 |
|
2021 |
|
2020 |
|
2021 |
|
2020 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reported net income per share
attributable to Tyson (GAAP EPS) |
|
|
|
|
$ |
3.71 |
|
|
|
$ |
1.79 |
|
|
|
|
|
|
|
$ |
8.34 |
|
|
|
$ |
5.64 |
|
|
Less: Defined benefit plan gains |
$ |
(34 |
) |
|
|
$ |
— |
|
|
|
(0.07 |
) |
|
|
— |
|
|
|
$ |
(34 |
) |
|
|
$ |
(116 |
) |
|
|
(0.07 |
) |
|
|
(0.24 |
) |
|
Less: Gain on sale of
business |
$ |
(784 |
) |
|
|
$ |
— |
|
|
|
(1.40 |
) |
|
|
— |
|
|
|
$ |
(784 |
) |
|
|
$ |
— |
|
|
|
(1.40 |
) |
|
|
— |
|
|
Add: China plant relocation
charge 5 |
$ |
4 |
|
|
|
$ |
— |
|
|
|
0.01 |
|
|
|
— |
|
|
|
$ |
27 |
|
|
|
$ |
— |
|
|
|
0.06 |
|
|
|
— |
|
|
Add: Legal contingency
accruals 6 |
$ |
— |
|
|
|
$ |
— |
|
|
|
— |
|
|
|
— |
|
|
|
$ |
626 |
|
|
|
$ |
— |
|
|
|
1.31 |
|
|
|
— |
|
|
Add: Production facilities
fire costs, net of insurance proceeds7 |
$ |
23 |
|
|
|
$ |
— |
|
|
|
0.05 |
|
|
|
— |
|
|
|
$ |
17 |
|
|
|
$ |
1 |
|
|
|
0.04 |
|
|
|
— |
|
|
Add: Restructuring and related
charges |
$ |
— |
|
|
|
$ |
23 |
|
|
|
— |
|
|
|
0.05 |
|
|
|
$ |
— |
|
|
|
$ |
75 |
|
|
|
— |
|
|
|
0.16 |
|
|
Less: Impact from Additional
Week |
$ |
— |
|
|
|
$ |
(65 |
) |
|
|
— |
|
|
|
(0.14 |
) |
|
|
$ |
— |
|
|
|
$ |
(65 |
) |
|
|
— |
|
|
|
(0.14 |
) |
|
Adjusted net income per share
attributable to Tyson (Adjusted EPS) |
|
|
|
|
$ |
2.30 |
|
|
|
$ |
1.70 |
|
|
|
|
|
|
|
$ |
8.28 |
|
|
|
$ |
5.42 |
|
|
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 (Loss)
Reconciliation(In
millions)(Unaudited)
Adjusted Operating Income (Loss) |
(for the fourth quarter ended October 2, 2021) |
|
Beef |
Pork |
Chicken |
Prepared Foods |
International/Other |
Total |
Reported operating income (loss) |
$ |
1,147 |
|
$ |
78 |
|
$ |
(136 |
) |
|
$ |
823 |
|
|
$ |
(3 |
) |
|
$ |
1,909 |
|
|
Less: Gain on sale of
business |
— |
|
— |
|
— |
|
|
(784 |
) |
|
— |
|
|
(784 |
) |
|
Add: Production facilities
fire costs, net of insurance proceeds7 |
— |
|
— |
|
23 |
|
|
— |
|
|
— |
|
|
23 |
|
|
Add: China plant relocation
charge 5 |
— |
|
— |
|
— |
|
|
— |
|
|
4 |
|
|
4 |
|
|
Adjusted operating income
(loss) |
$ |
1,147 |
|
$ |
78 |
|
$ |
(113 |
) |
|
$ |
39 |
|
|
$ |
1 |
|
|
$ |
1,152 |
|
|
Adjusted Operating Income (Loss) |
(for the fourth quarter ended October 3, 2020) |
|
Beef |
Pork |
Chicken |
Prepared Foods |
International/Other |
Total |
Reported operating income (loss) |
$ |
466 |
|
|
$ |
174 |
|
|
$ |
86 |
|
|
$ |
249 |
|
|
$ |
(13 |
) |
|
$ |
962 |
|
|
Add: Restructuring and Related
Charges |
4 |
|
|
1 |
|
|
12 |
|
|
5 |
|
|
1 |
|
|
23 |
|
|
Adjusted operating income
(loss) prior to adjustment for additional week |
470 |
|
|
175 |
|
|
98 |
|
|
254 |
|
|
(12 |
) |
|
985 |
|
|
Add/Less: Estimated impact of
additional week |
(37 |
) |
|
(13 |
) |
|
(7 |
) |
|
(18 |
) |
|
1 |
|
|
(74 |
) |
|
Adjusted operating income
(loss) |
$ |
433 |
|
|
$ |
162 |
|
|
$ |
91 |
|
|
$ |
236 |
|
|
$ |
(11 |
) |
|
$ |
911 |
|
|
Adjusted Operating Income (Loss) |
(for the twelve months ended October 2, 2021) |
|
Beef |
Pork |
Chicken |
Prepared Foods |
International/Other |
Total |
Reported operating income (loss) |
$ |
3,240 |
|
$ |
328 |
|
$ |
(625 |
) |
|
$ |
1,456 |
|
|
$ |
(3 |
) |
|
$ |
4,396 |
|
|
Less: Gain on sale of
business |
— |
|
— |
|
— |
|
|
(784 |
) |
|
— |
|
|
(784 |
) |
|
Add: Production facilities
fire costs, net of insurance proceeds7 |
— |
|
— |
|
23 |
|
|
— |
|
|
— |
|
|
23 |
|
|
Add: Legal contingency
accruals 6 |
— |
|
— |
|
626 |
|
|
— |
|
|
— |
|
|
626 |
|
|
Add: China plant relocation
charge 5 |
— |
|
— |
|
— |
|
|
— |
|
|
27 |
|
|
27 |
|
|
Adjusted operating income |
$ |
3,240 |
|
$ |
328 |
|
$ |
24 |
|
|
$ |
672 |
|
|
$ |
24 |
|
|
$ |
4,288 |
|
|
Adjusted Operating Income (Loss) |
(for the twelve months ended October 3, 2020) |
|
Beef |
Pork |
Chicken |
Prepared Foods |
International/Other |
Total |
Reported operating income (loss) |
$ |
1,580 |
|
|
$ |
565 |
|
|
$ |
122 |
|
|
$ |
743 |
|
|
$ |
(2 |
) |
|
$ |
3,008 |
|
|
Add: Restructuring and related
charges |
9 |
|
|
3 |
|
|
33 |
|
|
27 |
|
|
3 |
|
|
75 |
|
|
Add: Production facilities
fire costs, net of insurance proceeds7 |
1 |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
1 |
|
|
Adjusted operating income
prior to adjustment for additional week |
1,590 |
|
|
568 |
|
|
155 |
|
|
770 |
|
|
1 |
|
|
3,084 |
|
|
Add/Less: Estimated impact of
additional week |
(37 |
) |
|
(13 |
) |
|
(7 |
) |
|
(18 |
) |
|
1 |
|
|
(74 |
) |
|
Adjusted operating income |
$ |
1,553 |
|
|
$ |
555 |
|
|
$ |
148 |
|
|
$ |
752 |
|
|
$ |
2 |
|
|
$ |
3,010 |
|
|
Adjusted operating income (loss) 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 (loss) as an internal performance measurement and as one
criterion for evaluating our performance relative to that of our
peers. We believe adjusted operating income (loss) 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 (loss). Further, we believe that adjusted
operating income (loss) is a useful measure because it improves
comparability of results of operations from period to period.
Adjusted operating income (loss) should not be considered as a
substitute for operating income (loss) 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 (loss) 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 (due to the impact of the additional week in the
fourth quarter of fiscal 2020) 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.
About Tyson Foods, Inc.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
approximately 137,000 team members at October 2, 2021. 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.
Conference Call Information and Other Selected
DataA conference call to discuss the Company's financial
results will be held at 9 a.m. Eastern Monday, November 15, 2021.
We encourage participants to pre-register for the conference call
using the following link:
https://dpregister.com/sreg/10160190/ed495e7d1a. 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 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/3404985/4CF2B9F967075ABCA2D308573042867C.
For those who cannot participate at the scheduled time, a replay of
the live webcast and the accompanying slides will be available at
http://ir.tyson.com until Wednesday, December 15, 2021. A
telephone replay will also be available until Wednesday, December
15, 2021, 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 10160190. 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.
Forward-Looking StatementsCertain information
in this report constitutes forward-looking statements as
contemplated by the Private Securities Litigation Reform Act of
1995. 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 are
expressly qualified in their entirety by this cautionary statement
and 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 COVID-19 global pandemic and
associated responses thereto have had an adverse impact on our
business and operations, and the extent that the COVID-19 pandemic
continues to impact us will depend on future developments, which
are highly uncertain and cannot be predicted with confidence,
including the scope, severity and duration of the pandemic, and
public adoption rates of COVID-19 vaccines and their effectiveness
against variants of COVID-19, including the Delta variant; (ii) the
effectiveness of our financial excellence programs; (iii) access to
foreign markets together with foreign economic conditions,
including currency fluctuations, import/export restrictions and
foreign politics; (iv) cyber incidents, security breaches or other
disruptions of our information technology systems; (v) risks
associated with our failure to consummate favorable acquisition
transactions or integrate certain acquisitions' operations; (vi)
the Tyson Limited Partnership’s ability to exercise significant
control over the Company; (vii) 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;
(viii) 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; (ix) 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; (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) significant marketing plan changes by
large customers or loss of one or more large customers; (xiii) our
ability to leverage brand value propositions; (xiv) 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; (xv) issues related to food safety, including costs
resulting from product recalls, regulatory compliance and any
related claims or litigation; (xvi) 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; (xvii) adverse
results from litigation; (xviii) risks associated with leverage,
including cost increases due to rising interest rates or changes in
debt ratings or outlook; (xix) impairment in the carrying value of
our goodwill or indefinite life intangible assets; (xx) our
participation in a multiemployer pension plan; (xxi) volatility in
capital markets or interest rates; (xxii) risks associated with our
commodity purchasing activities; (xxiii) the effect of, or changes
in, general economic conditions; (xxiv) impacts on our operations
caused by factors and forces beyond our control, such as natural
disasters, fire, bioterrorism, pandemics or extreme weather; (xxv)
failure to maximize or assert our intellectual property rights;
(xxvi) effects related to changes in tax rates, valuation of
deferred tax assets and liabilities, or tax laws and their
interpretation; (xxvii) the effectiveness of our internal control
over financial reporting, including identification of material
weaknesses; and (xxviii) the other risks and uncertainties detailed
from time to time in our filings with the Securities and Exchange
Commission, including those included under the captions "Risk
Factors" and "Management's Discussion and Analysis of Financial
Condition and Results of Operations" in our most recent Annual
Report on Form 10-K and Quarterly reports on Form 10-Q.
|
|
Media Contact: Gary Mickelson, 479-290-6111Investor Contact: Megan
Britt, 479-236-4927 |
Source: Tyson Foods, Inc.Category: IR, Newsroom |
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