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) |
|
|
First Quarter |
|
|
|
|
2022 |
|
|
2021 |
Sales |
|
|
$ |
12,933 |
|
$ |
10,460 |
Operating Income |
|
|
|
1,455 |
|
|
705 |
|
|
|
|
|
|
Net Income |
|
|
|
1,126 |
|
|
472 |
Less: Net Income Attributable
to Noncontrolling Interests |
|
|
|
5 |
|
|
5 |
Net Income Attributable to
Tyson |
|
|
$ |
1,121 |
|
$ |
467 |
|
|
|
|
|
|
Net Income Per Share
Attributable to Tyson |
|
|
$ |
3.07 |
|
$ |
1.28 |
|
|
|
|
|
|
Adjusted1 Operating
Income |
|
|
$ |
1,432 |
|
$ |
1,025 |
|
|
|
|
|
|
Adjusted1 Net Income Per Share
Attributable to Tyson |
|
|
$ |
2.87 |
|
$ |
1.94 |
1 The Company reports its financial results in accordance with
U.S. generally accepted accounting principles (GAAP). 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.
First Quarter Highlights
- GAAP EPS of $3.07, up 140% from prior year; Adjusted
EPS of $2.87, up 48% from prior year
- GAAP operating income of $1,455 million, up 106% from
prior year; Adjusted operating income of $1,432 million, up 40%
from prior year
- Total Company GAAP operating margin of 11.3%; Adjusted
operating margin of 11.1%
- Liquidity of $5.2 billion at January 1,
2022
- Repurchased 4.2 million shares for $348
million
“We’re pleased with the results of the first quarter and of the
steps that we are taking to improve productivity,” said Donnie
King, President and CEO of Tyson Foods. “Our performance reflects
the resilience of our multi-protein portfolio even with continued
volatility in the marketplace. We remain committed to winning with
our team members, winning with our customers and consumers and
winning with excellence. We have the right team who are taking the
right actions and as a result, we believe our future is
bright.”
SEGMENT RESULTS (in millions)
Sales |
(for the first quarter ended January 1, 2022, and January 2,
2021) |
|
|
|
|
|
First Quarter |
|
|
|
|
|
|
|
Volume |
Avg. Price |
|
|
|
|
|
|
2022 |
|
|
2021 |
|
Change |
Change 2 |
Beef |
|
|
|
|
$ |
5,002 |
|
$ |
3,987 |
|
(6.2) |
% |
31.7 |
% |
Pork |
|
|
|
|
|
1,626 |
|
|
1,439 |
|
0.2 |
% |
12.8 |
% |
Chicken |
|
|
|
|
|
3,890 |
|
|
2,831 |
|
3.6 |
% |
19.9 |
% |
Prepared
Foods |
|
|
|
|
|
2,333 |
|
|
2,113 |
|
(2.6) |
% |
13.0 |
% |
International/Other |
|
|
|
|
|
550 |
|
|
469 |
|
9.0 |
% |
8.3 |
% |
Intersegment
Sales |
|
|
|
|
|
(468 |
) |
|
(379 |
) |
n/a |
|
n/a |
|
Total |
|
|
|
|
$ |
12,933 |
|
$ |
10,460 |
|
0.3 |
% |
19.6 |
% |
Operating Income (Loss) |
(for the first quarter ended January 1, 2022, and January 2,
2021) |
|
|
|
|
|
First Quarter |
|
|
|
|
|
|
|
Operating Margin |
|
|
|
|
|
|
2022 |
|
|
2021 |
|
2022 |
|
2021 |
|
Beef |
|
|
|
|
$ |
956 |
|
$ |
528 |
|
19.1 |
% |
13.2 |
% |
Pork |
|
|
|
|
|
164 |
|
|
116 |
|
10.1 |
% |
8.1 |
% |
Chicken |
|
|
|
|
|
140 |
|
|
(216 |
) |
3.6 |
% |
(7.6) |
% |
Prepared
Foods |
|
|
|
|
|
186 |
|
|
266 |
|
8.0 |
% |
12.6 |
% |
International/Other |
|
|
|
|
|
9 |
|
|
11 |
|
n/a |
|
n/a |
|
Total |
|
|
|
|
$ |
1,455 |
|
$ |
705 |
|
11.3 |
% |
6.7 |
% |
ADJUSTED SEGMENT RESULTS (in millions)
Adjusted Operating Income (Non-GAAP) |
(for the first quarter ended January 1, 2022, and January 2,
2021) |
|
|
|
|
|
First Quarter |
|
|
|
|
|
|
|
Adjusted Operating Margin (Non-GAAP) |
|
|
|
|
|
|
2022 |
|
|
2021 |
|
2022 |
|
2021 2 |
|
Beef |
|
|
|
|
$ |
956 |
|
$ |
528 |
|
19.1 |
% |
13.2 |
% |
Pork |
|
|
|
|
|
164 |
|
|
116 |
|
10.1 |
% |
8.1 |
% |
Chicken |
|
|
|
|
|
117 |
|
|
104 |
|
3.0 |
% |
3.3 |
% |
Prepared
Foods |
|
|
|
|
|
186 |
|
|
266 |
|
8.0 |
% |
12.6 |
% |
International/Other |
|
|
|
|
|
9 |
|
|
11 |
|
n/a |
|
n/a |
|
Total |
|
|
|
|
$ |
1,432 |
|
$ |
1,025 |
|
11.1 |
% |
9.5 |
% |
2 Average Price Change and Adjusted Operating Margin for the
Chicken Segment and Total Company exclude the impact of a $320
million legal contingency accrual recognized as a reduction to
Sales in the first quarter of fiscal 2021.
SUMMARY OF SEGMENT RESULTS
BeefSales volume decreased due to the impacts
associated with a challenging labor environment and increased
supply chain constraints, partially offset by strong global demand.
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 and a reduction in direct incremental expenses
related to COVID-19, partially offset by production inefficiencies
due to the impacts associated with a challenging labor environment.
Additionally, operating income in fiscal 2021 was impacted by a $55
million gain from the recovery of cattle inventory related to a
cattle supplier's misappropriation of Company funds.
PorkSales volume was up slightly as strong
global demand was offset by the impacts associated with a
challenging labor environment. Average sales price increased as
input costs such as live hogs, labor, freight and transportation
costs increased and demand for our pork products remained strong,
partially offset by unfavorable mix associated with labor
shortages. Operating income increased due to strong demand as we
optimized revenues relative to live hog supply and a reduction in
direct incremental expenses related to COVID-19, partially offset
by the impacts associated with a challenging labor environment.
ChickenSales volume increased primarily due to
increased live production and a strong demand environment. Average
sales price increased due to the effects of an inflationary cost
environment. Operating income increased due to increased sales
volume and higher average sales prices, partially offset by the
impacts of inflationary market conditions including $185 million of
higher feed ingredient costs, increased supply chain costs and a
challenging labor environment. Additionally, operating income in
the first quarter of fiscal 2022 was impacted by $23 million of
insurance proceeds, net of costs incurred related to a fire at a
production facility and was impacted in the first quarter of fiscal
2021 by a $320 million loss from the recognition of a legal
contingency accrual.
Prepared FoodsSales volume decreased due to the
divestiture of our pet treats business in the fourth quarter of
fiscal 2021 as well as lower production throughput primarily
associated with a challenging labor and supply environment. Average
sales price increased primarily due to the effects of revenue
management in an inflationary cost environment. Operating income
decreased due to the impacts of inflationary market conditions,
including $215 million of increased raw materials and other input
costs, increased supply chain costs and a challenging labor
environment, partially offset by favorable pricing.
OUTLOOKFor fiscal 2022, the United States
Department of Agriculture (“USDA”) indicates domestic protein
production (beef, pork, chicken and turkey) should be relatively
flat 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 and
tax rate for fiscal 2022.3
Beginning in fiscal 2022, we launched 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. We are currently on track to achieve our planned
productivity savings for fiscal 2022.
BeefUSDA projects domestic production will
decrease approximately 1% in fiscal 2022 as compared to fiscal
2021. We anticipate another strong year with adjusted operating
margin at the upper end of 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 approximately 2% in fiscal 2022 as compared to fiscal
2021. We anticipate an adjusted operating margin of 5% to 7% for
fiscal 2022 as our adjusted operating margin is expected to 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 at the upper end of 7% to 9% in fiscal 2022. We will
remain disciplined in our pricing initiatives to ensure that
additional inflationary pressures are mitigated by sales price
increases, 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 be at the upper end
of $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 $360 million for fiscal 2022.
LiquidityWe expect total liquidity, which was
approximately $5.2 billion at January 1, 2022, 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.
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 |
|
|
January 1, 2022 |
|
January 2, 2021 |
Sales |
|
$ |
12,933 |
|
|
$ |
10,460 |
|
Cost of Sales |
|
|
10,918 |
|
|
|
9,283 |
|
Gross Profit |
|
|
2,015 |
|
|
|
1,177 |
|
|
|
|
|
|
Selling, General and
Administrative |
|
|
560 |
|
|
|
472 |
|
Operating Income |
|
|
1,455 |
|
|
|
705 |
|
Other (Income) Expense: |
|
|
|
|
Interest income |
|
|
(3 |
) |
|
|
(2 |
) |
Interest expense |
|
|
100 |
|
|
|
110 |
|
Other, net |
|
|
(52 |
) |
|
|
(19 |
) |
Total Other (Income)
Expense |
|
|
45 |
|
|
|
89 |
|
Income before Income
Taxes |
|
|
1,410 |
|
|
|
616 |
|
Income Tax Expense |
|
|
284 |
|
|
|
144 |
|
Net Income |
|
|
1,126 |
|
|
|
472 |
|
Less: Net Income Attributable
to Noncontrolling Interests |
|
|
5 |
|
|
|
5 |
|
Net Income Attributable to
Tyson |
|
$ |
1,121 |
|
|
$ |
467 |
|
Weighted Average Shares
Outstanding: |
|
|
|
|
Class A Basic |
|
|
292 |
|
|
|
293 |
|
Class B Basic |
|
|
70 |
|
|
|
70 |
|
Diluted |
|
|
365 |
|
|
|
365 |
|
Net Income Per Share
Attributable to Tyson: |
|
|
|
|
Class A Basic |
|
$ |
3.16 |
|
|
$ |
1.31 |
|
Class B Basic |
|
$ |
2.84 |
|
|
$ |
1.18 |
|
Diluted |
|
$ |
3.07 |
|
|
$ |
1.28 |
|
Dividends Declared Per
Share: |
|
|
|
|
Class A |
|
$ |
0.475 |
|
|
$ |
0.470 |
|
Class B |
|
$ |
0.428 |
|
|
$ |
0.423 |
|
|
|
|
|
|
Sales Growth |
|
|
23.6 |
% |
|
|
Margins: (Percent of
Sales) |
|
|
|
|
Gross Profit |
|
|
15.6 |
% |
|
|
11.3 |
% |
Operating Income |
|
|
11.3 |
% |
|
|
6.7 |
% |
Net Income Attributable to Tyson |
|
|
8.7 |
% |
|
|
4.5 |
% |
Effective Tax Rate |
|
|
20.2 |
% |
|
|
23.4 |
% |
TYSON FOODS,
INC.CONSOLIDATED CONDENSED BALANCE
SHEETS(In
millions)(Unaudited)
|
January 1, 2022 |
|
October 2, 2021 |
Assets |
|
|
|
Current Assets: |
|
|
|
Cash and cash equivalents |
$ |
2,956 |
|
|
$ |
2,507 |
|
Accounts receivable, net |
|
2,091 |
|
|
|
2,400 |
|
Inventories |
|
4,454 |
|
|
|
4,382 |
|
Other current assets |
|
635 |
|
|
|
533 |
|
Total Current Assets |
|
10,136 |
|
|
|
9,822 |
|
Net Property, Plant and
Equipment |
|
8,012 |
|
|
|
7,837 |
|
Goodwill |
|
10,550 |
|
|
|
10,549 |
|
Intangible Assets, net |
|
6,459 |
|
|
|
6,519 |
|
Other Assets |
|
1,667 |
|
|
|
1,582 |
|
Total Assets |
$ |
36,824 |
|
|
$ |
36,309 |
|
|
|
|
|
Liabilities and
Shareholders’ Equity |
|
|
|
Current Liabilities: |
|
|
|
Current debt |
$ |
1,090 |
|
|
$ |
1,067 |
|
Accounts payable |
|
2,115 |
|
|
|
2,225 |
|
Other current liabilities |
|
2,829 |
|
|
|
3,033 |
|
Total Current Liabilities |
|
6,034 |
|
|
|
6,325 |
|
Long-Term Debt |
|
8,274 |
|
|
|
8,281 |
|
Deferred Income Taxes |
|
2,274 |
|
|
|
2,195 |
|
Other Liabilities |
|
1,700 |
|
|
|
1,654 |
|
|
|
|
|
Total Tyson Shareholders’
Equity |
|
18,403 |
|
|
|
17,723 |
|
Noncontrolling Interests |
|
139 |
|
|
|
131 |
|
Total Shareholders’
Equity |
|
18,542 |
|
|
|
17,854 |
|
|
|
|
|
Total Liabilities and
Shareholders’ Equity |
$ |
36,824 |
|
|
$ |
36,309 |
|
TYSON FOODS,
INC.CONSOLIDATED CONDENSED STATEMENTS OF CASH
FLOWS(In
millions)(Unaudited)
|
Three Months Ended |
|
January 1, 2022 |
|
January 2, 2021 |
Cash Flows From Operating
Activities: |
|
|
|
Net income |
$ |
1,126 |
|
|
$ |
472 |
|
Depreciation and
amortization |
|
300 |
|
|
|
298 |
|
Deferred income taxes |
|
77 |
|
|
|
17 |
|
Other, net |
|
11 |
|
|
|
18 |
|
Net changes in operating
assets and liabilities |
|
(82 |
) |
|
|
580 |
|
Cash Provided by Operating
Activities |
|
1,432 |
|
|
|
1,385 |
|
|
|
|
|
Cash Flows From Investing
Activities: |
|
|
|
Additions to property, plant
and equipment |
|
(408 |
) |
|
|
(289 |
) |
Purchases of marketable
securities |
|
(7 |
) |
|
|
(14 |
) |
Proceeds from sale of
marketable securities |
|
7 |
|
|
|
15 |
|
Other, net |
|
(51 |
) |
|
|
29 |
|
Cash Used for Investing
Activities |
|
(459 |
) |
|
|
(259 |
) |
|
|
|
|
Cash Flows From Financing
Activities: |
|
|
|
Proceeds from issuance of
debt |
|
26 |
|
|
|
29 |
|
Payments on debt |
|
(43 |
) |
|
|
(29 |
) |
Purchases of Tyson
Class A common stock |
|
(348 |
) |
|
|
(17 |
) |
Dividends |
|
(164 |
) |
|
|
(159 |
) |
Stock options exercised |
|
46 |
|
|
|
4 |
|
Other, net |
|
(1 |
) |
|
|
(1 |
) |
Cash Used for Financing
Activities |
|
(484 |
) |
|
|
(173 |
) |
Effect of Exchange Rate
Changes on Cash |
|
2 |
|
|
|
16 |
|
Increase in Cash and Cash
Equivalents and Restricted Cash |
|
491 |
|
|
|
969 |
|
Cash and Cash Equivalents and
Restricted Cash at Beginning of Year |
|
2,637 |
|
|
|
1,466 |
|
Cash and Cash Equivalents and
Restricted Cash at End of Period |
|
3,128 |
|
|
|
2,435 |
|
Less: Restricted Cash at End
of Period |
|
172 |
|
|
|
29 |
|
Cash and Cash Equivalents at
End of Period |
$ |
2,956 |
|
|
$ |
2,406 |
|
|
|
|
|
TYSON FOODS, INC.EBITDA
Reconciliations(In
millions)(Unaudited)
|
Three Months Ended |
|
Fiscal Year Ended |
|
Twelve Months Ended |
|
January 1, 2022 |
|
January 2, 2021 |
|
October 2, 2021 |
|
January 1, 2022 |
|
|
|
|
|
|
|
|
Net income |
$ |
1,126 |
|
|
$ |
472 |
|
|
$ |
3,060 |
|
|
$ |
3,714 |
|
Less: Interest income |
|
(3 |
) |
|
|
(2 |
) |
|
|
(8 |
) |
|
|
(9 |
) |
Add: Interest expense |
|
100 |
|
|
|
110 |
|
|
|
428 |
|
|
|
418 |
|
Add: Income tax expense |
|
284 |
|
|
|
144 |
|
|
|
981 |
|
|
|
1,121 |
|
Add: Depreciation |
|
236 |
|
|
|
229 |
|
|
|
934 |
|
|
|
941 |
|
Add: Amortization 4 |
|
62 |
|
|
|
66 |
|
|
|
261 |
|
|
|
257 |
|
EBITDA |
$ |
1,805 |
|
|
$ |
1,019 |
|
|
$ |
5,656 |
|
|
$ |
6,442 |
|
|
|
|
|
|
|
|
|
Adjustments to EBITDA: |
|
|
|
|
|
|
|
Less: Gain on sale of
business |
$ |
— |
|
|
$ |
— |
|
|
$ |
(784 |
) |
|
|
(784 |
) |
Add: China plant relocation
charge 5 |
|
— |
|
|
|
— |
|
|
|
27 |
|
|
|
27 |
|
Add: Legal contingency
accruals 6 |
|
— |
|
|
|
320 |
|
|
|
626 |
|
|
|
306 |
|
(Less)/Add: Production
facilities fire insurance proceeds, net of costs7 |
|
(45 |
) |
|
|
(6 |
) |
|
|
17 |
|
|
|
(22 |
) |
Less: Defined benefit plan
gains |
|
— |
|
|
|
— |
|
|
|
(34 |
) |
|
|
(34 |
) |
Total Adjusted EBITDA |
$ |
1,760 |
|
|
$ |
1,333 |
|
|
$ |
5,508 |
|
|
$ |
5,935 |
|
|
|
|
|
|
|
|
|
Total gross debt |
|
|
|
|
$ |
9,348 |
|
|
$ |
9,364 |
|
Less: Cash and cash
equivalents |
|
|
|
|
|
(2,507 |
) |
|
|
(2,956 |
) |
Less: Short-term
investments |
|
|
|
|
|
— |
|
|
|
— |
|
Total net debt |
|
|
|
|
$ |
6,841 |
|
|
$ |
6,408 |
|
|
|
|
|
|
|
|
|
|
|
Ratio Calculations: |
|
|
|
|
|
|
|
|
|
Gross debt/EBITDA |
|
|
|
|
|
1.7x |
|
|
|
1.5x |
|
Net debt/EBITDA |
|
|
|
|
|
1.2x |
|
|
|
1.0x |
|
|
|
|
|
|
|
|
|
|
|
Gross debt/Adjusted
EBITDA |
|
|
|
|
|
1.7x |
|
|
|
1.6x |
|
Net debt/Adjusted EBITDA |
|
|
|
|
|
1.2x |
|
|
|
1.1x |
|
4 Excludes the amortization of debt issuance and debt discount
expense of $2 million for the three months ended January 1,
2022, $3 million for the three months ended January 2, 2021,
$19 million for the fiscal year ended October 2, 2021, and $18
million for the twelve months ended January 1, 2022 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 $320 million recognized as
a reduction of Sales in the first quarter of fiscal 2021 and $545
million recognized as a reduction of Sales and $81 million
recognized as an increase of Cost of Sales in fiscal 2021.
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 insurance proceeds, net of costs
incurred, of $23 million recognized in Cost of Sales and $22
million net proceeds recognized in Other, net in the first quarter
of fiscal 2022 and $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)
|
|
|
|
|
First Quarter |
|
|
|
|
|
Pretax Impact |
|
EPS Impact |
|
|
|
|
|
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
|
|
2021 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Reported net income per share
attributable to Tyson (GAAP EPS) |
|
|
|
|
|
|
|
|
$ |
3.07 |
|
|
$ |
1.28 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Add: Legal contingency accrual
6 |
|
|
|
|
$ |
— |
|
|
$ |
320 |
|
|
|
— |
|
|
|
0.67 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Less: Production facilities
fire insurance proceeds, net of costs7 |
|
|
|
|
$ |
(45 |
) |
|
$ |
(6 |
) |
|
|
(0.10 |
) |
|
|
(0.01 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Less: Remeasurement of net
deferred tax liabilities at lower enacted state tax rates |
|
|
|
|
$ |
— |
|
|
$ |
— |
|
|
|
(0.10 |
) |
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted net income per share
attributable to Tyson (Adjusted EPS) |
|
|
|
|
|
|
|
|
$ |
2.87 |
|
|
$ |
1.94 |
|
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 |
(for the first quarter ended January 1, 2022) |
|
Beef |
Pork |
Chicken |
Prepared Foods |
International/Other |
Total |
Reported operating income |
$ |
956 |
$ |
164 |
$ |
140 |
|
$ |
186 |
$ |
9 |
$ |
1,455 |
|
Less: Production facilities fire
insurance proceeds, net of costs7 |
|
— |
|
— |
|
(23 |
) |
|
— |
|
— |
|
(23 |
) |
Adjusted operating income |
$ |
956 |
$ |
164 |
$ |
117 |
|
$ |
186 |
$ |
9 |
$ |
1,432 |
|
Adjusted Operating Income |
(for the first quarter ended January 2, 2021) |
|
Beef |
Pork |
Chicken |
Prepared Foods |
International/Other |
Total |
Reported operating income (loss) |
$ |
528 |
$ |
116 |
$ |
(216 |
) |
$ |
266 |
$ |
11 |
$ |
705 |
|
Add: Legal contingency
accrual6 |
|
— |
|
— |
|
320 |
|
|
— |
|
— |
|
320 |
|
Adjusted operating income |
$ |
528 |
$ |
116 |
$ |
104 |
|
$ |
266 |
$ |
11 |
$ |
1,025 |
|
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 (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
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, February 7, 2022. A
link for the webcast of the conference call is available on the
Tyson Investor Relations website at http://ir.tyson.com. The
webcast also can be accessed by the following direct
link: https://event.on24.com/wcc/r/3578688/776A66724A330AB0D97CEC70248EB449.
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 Monday, March 7, 2022. A telephone
replay will also be available until Monday, March 7, 2022, 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 3166566.
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 2022,
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 emerging variants of COVID-19, including the Delta and
Omicron variants, and the speed and effectiveness of new vaccine
and treatment developments and their deployment; (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 |
Tyson Foods (NYSE:TSN)
Historical Stock Chart
From May 2024 to Jun 2024
Tyson Foods (NYSE:TSN)
Historical Stock Chart
From Jun 2023 to Jun 2024